Stocks gained again after the Federal Reserve made the decision to buy $300bn of US Treasuries, providing a cause of optimism for the ending of the global recession. In New York The Standard & Poor’s 500 Index rose 2.1 per cent, to bring the 10-day rally to 17 per cent. In Asia stocks moved higher for the fifth day in a row, with the MSCI Asia Pacific Index gaining 2.3 per cent. China’s Shanghai Composite Index rose 1.9 per cent but Japan’s Nikkei 225 Stock Average lost 0.7 per cent. In London the FTSE 100 Index opened over one per cent higher. Federal Reserve Chairman Ben Bernanke “signalled his determination” to avoid a replay of the Great Depression by making a commitment to buy Treasuries and mortgage debt, reported Bloomberg.com. With the promise to “more than double” the purchases of mortgage debt to $1.45tr and buy up to $300bn of long-term Treasuries, Bernanke hs created a “Rambo Fed”, according to one economist. The move sparked the biggest drop in 10-Year Treasury yields since 1962 as investors recognised the Fed’s commitment to low interest rates. Total unemployment soared above 2m for the first time since Labour came to power 12 years ago, reported the Financial Times. The total number of unemployed rose 165,000 to 2.03m in the three months to the end of January and is expected to “top 3m” by this time next year. It is private sector workers who have “borne the brunt” of the downturn, with the number of employees falling 105,000 to 23.6m last year, according to the Office for National Statistics. Public sector employment rose 30,000 to 5.78m in the same period. UK banks should be in a position to resume their lending “fairly soon”, according to Lord Mandelson. He signalled yesterday that “at least some” of the flow of credit to the economy would be restored, reported theIndependent. The business secretary’s remarks came as the Bank of England raised concerns that some businesses have become “frightened” to approach their bank managers. Mandelson said that there would be a change in lending behaviour with a “stronger pattern of lending emerging”. The UK’s airports are set for a “radical shake-up” with the aim of improving service levels for passengers, reported the Daily Telegraph. The Competition Commission confirmed its earlier suggestion that Gatwick, Stansted and either Glasgow or Edinburgh airports will need to be sold byBAA, ending its more than “20-year stranglehold” on Britain’s airports. The regulator has been looking at evidence surrounding BAA’s ownership of seven UK airports for nearly two years and concluded that there were severe “competition problems”. The World Bank cut its forecast for China’s growth yesterday, reported theGuardian. It downgraded its estimate from 7.5 per cent to 6.5 per cent, amid “deepening gloom” about exports, but warned over “hasty moves” to increase its fiscal stimulus package. The bank’s senior China economist, Louis Kuijs, said there was “little prospect” of a significant recovery until any improvement in the global economy. Exports “plunged” 25.7 per cent in February, but the country’s 4tr yuan stimulus package should "see it through the worst”. Andy Hornby, the former chief executive of HBOS, has agreed to give up “about £700,000” in discretionary cash payments from the bank, said theTimes. The move is an effort to “defuse a potential row” over rewards for failure. He had already waived compensation for loss of office………… China’s rejection of Coca-Cola’s $2.3bn bid for China Huiyan Juice Group may “bode ill” for Pfizer and Merck’s planned purchases, reportedBloomberg.com. China now has “deal-blocking power” on acquisitions in which more than 400m yuan is derived from Chinese operations………… IBM is in “advanced talks” to acquire Sun Microsystems for about $6.5bn in cash, reported the Financial Times. The purchase of its rival could be the beginning of “wider consolidation” in the technology industry as the recession takes its toll on weaker companies………… Prudential said that chief executive Mark Tucker has decided to “stand down” as of the end of September, reported the Financial Times. He was appointed in May 2005 and in a statement said he had “achieved what he had set out to do” in his time in the position………… French Connection demonstrated the “crisis” which has enveloped the British and American fashion markets yesterday, as it “scrapped” its dividend and posted its first loss in more then 10 years, reported theIndependent. It is to take an “axe” to its cost base and review stores………… BMW is “slashing” its boardroom pay by 40 per cent, executive pay by 33 per cent and employee wages by 10 per cent in an effort to “retain its independence”, reported the Guardian. The move comes as commentators have speculated over a merger with Mercedes or Peugeot Citroen……… Why does the NHS seem to hate the old so much? A recent survey of 201 doctors by the British Geriatrics Society found that seven out of ten specialists believe the elderly are less likely to receive a proper diagnosis and essential treatment than younger patients. Almost half believe the health service is 'institutionally ageist' and more than half admitted they were worried themselves about how the NHS would treat them in old age. "Look," said David Lammy, understandably irritated himself now at being expected, as minister for higher education, to have an opinion about higher education, "it's a bit like asking a farmer whether he needs more land." Answers on the traditional postcard, please, you cryptographers out there. In the absence of the Enigma machine, Mr Lammy's Agrarian Code remains uncrackable to me. My favourite piece of jargon? I heard an arts administrator refer, recently, to a "literature delivery system". I think she meant a library, a bookshop, or perhaps just a book. But I didn't understand, and I don't think I was meant to. Fashion has always celebrated extremes and, creatively speaking, yes the unexpected and the avant garde sing. But telling one fat rocker she shall go to the ball is not the same as giving the green light to women who like a side of food with their champagne. I wonder if Beth Ditto was handed a clutch of invites to bring a gaggle of fat friends along to the shows and parties. I imagine not, as her rotundity serves the fash pack best when not diluted by anyone else with a supersized muffin top. Sophie Morris The Independent..the main headlines..........
Markets continue winning streak
Fed pledges huge Treasuries purchases
Alexander Cockburn: Is Obama heading for disaster 
Unemployment breaks 2m mark
Meet the smugs: the recession is good news for some people Mandelson says banks will soon lend
The Mole: Downing Street plays down Mandelson's share portfolio UK airports set for radical shake-up
The Mole: Tories break ranks over Heathrow expansion World Bank sees China slow-down
How developing countries can save the bankrupt West ...in brief..................
Hornby agrees to give up payments and BMW slashes worker pay
Pros and Cons: bonuses for bankers n Brief
The NHS hates the old
Harriet Sergeant Daily Mail
Full article: Why does the NHS hate the elderly so much? Mystical David Lammy
Matthew Norman The Independent
Full article: Bottom of the class, Mr Lammy Jargon
Philip Hensher The Independent
Full article: On a fast track to joined-up thinking Beth Ditto: obesity’s cheerleader
Full article: Forget Beth Ditto. Fat is still a fashion issue
Thursday, 19 March 2009
Posts
