Home » Archives by category » News » World News (Page 1618)
US economic growth slows to 1.8%

Higher petrol prices and severe weather curb US GDP growth to an annualised 1.8% in the first three months of the year The US economy slowed during the first three months of the year to an annualised rate of 1.8%, as higher petrol prices and severe weather curbed growth. Previous consensus forecasts had pitched growth at between 2% and 2.5% for the first quarter. A slower pace of growth was signalled by Federal Reserve chairman Ben Bernanke who predicted a sub-2% rate at his first press conference on Wednesday evening, but the commerce department figures were still greeted with dismay by many traders concerned at the outlook for the US economy. Figures showing jobless claims also unexpectedly rose added to the dismal picture. The S&P index of leading shares dipped 3 points, putting a temporary brake on an otherwise surging stock market. Gold climbed to a new high of more than $1,532 an ounce, while the dollar continued its long decline, made worse the previous day by widespread interpretation of Bernanke’s remarks as meaning interest rates would stay low for a prolonged period. Inflation surged to 3.8%, its fastest pace since the third quarter of 2008, after increasing 1.7% in the fourth quarter. The core index, which excludes food and energy costs, accelerated to a 1.5% rate, the fastest since the fourth quarter of 2009, from 0.4% in the fourth quarter. US job figures weak In another report, new weekly claims for jobless benefits jumped to 429,000 in the week to April 23, from 404,000 the prior week. William Larkin of Cabot Money Management said the injection of capital by the Federal Reserve under its quantitative easing programme had proved disappointing because it was expected to reap a higher growth rate. He said: “Jobless claims popped back above 400,000 again, and that’s been a psychological barrier. We had been on a nice trend with claims, but now we’re finding resistance, which calls into questions the jobs recovery.” He added: “GDP was a little on the light side, though there were positives and negatives in the report. But with the amount of injection of capital into the economy, you’d hope that we would be able to get above 2% growth. In the short-term this is bad for stocks and good for bonds.” Richard Bryant, head of treasury trading at MF Global Securities, argued that bond prices were spooked by the jobless figures more than the slight decline in GDP. He said: “The big surprise was that jobless claims were a little bit higher than people were looking for, a little bit higher than expectations, so the Treasury market is retaining the bid that it has demonstrated since yesterday afternoon. This data certainly supports the bid. GDP had no major surprises, the headline was a little bit weaker than expectations.” The downbeat US figures confirm a general slowdown in growth across the developed economies as the effects of fiscal stimulus policies wane and austerity measures take their place. In the US Treasury secretary Tim Geithner has maintained much of the federal stimulus put in place during the banking crisis, but has presided over large cuts by individual states, which must balance their budgets. Only Germany has maintained its robust growth, mainly on the back of exports to Asia, while France and Britain are unlikely to breach the 2% barrier. The UK government has estimated annualised growth at 1.5% to 2%, with a consensus hovering on or below 1.5%. US economy Economics United States Phillip Inman guardian.co.uk

Continue reading …
US economic growth slows to 1.8%

Higher petrol prices and severe weather curb US GDP growth to an annualised 1.8% in the first three months of the year The US economy slowed during the first three months of the year to an annualised rate of 1.8%, as higher petrol prices and severe weather curbed growth. Previous consensus forecasts had pitched growth at between 2% and 2.5% for the first quarter. A slower pace of growth was signalled by Federal Reserve chairman Ben Bernanke who predicted a sub-2% rate at his first press conference on Wednesday evening, but the commerce department figures were still greeted with dismay by many traders concerned at the outlook for the US economy. Figures showing jobless claims also unexpectedly rose added to the dismal picture. The S&P index of leading shares dipped 3 points, putting a temporary brake on an otherwise surging stock market. Gold climbed to a new high of more than $1,532 an ounce, while the dollar continued its long decline, made worse the previous day by widespread interpretation of Bernanke’s remarks as meaning interest rates would stay low for a prolonged period. Inflation surged to 3.8%, its fastest pace since the third quarter of 2008, after increasing 1.7% in the fourth quarter. The core index, which excludes food and energy costs, accelerated to a 1.5% rate, the fastest since the fourth quarter of 2009, from 0.4% in the fourth quarter. US job figures weak In another report, new weekly claims for jobless benefits jumped to 429,000 in the week to April 23, from 404,000 the prior week. William Larkin of Cabot Money Management said the injection of capital by the Federal Reserve under its quantitative easing programme had proved disappointing because it was expected to reap a higher growth rate. He said: “Jobless claims popped back above 400,000 again, and that’s been a psychological barrier. We had been on a nice trend with claims, but now we’re finding resistance, which calls into questions the jobs recovery.” He added: “GDP was a little on the light side, though there were positives and negatives in the report. But with the amount of injection of capital into the economy, you’d hope that we would be able to get above 2% growth. In the short-term this is bad for stocks and good for bonds.” Richard Bryant, head of treasury trading at MF Global Securities, argued that bond prices were spooked by the jobless figures more than the slight decline in GDP. He said: “The big surprise was that jobless claims were a little bit higher than people were looking for, a little bit higher than expectations, so the Treasury market is retaining the bid that it has demonstrated since yesterday afternoon. This data certainly supports the bid. GDP had no major surprises, the headline was a little bit weaker than expectations.” The downbeat US figures confirm a general slowdown in growth across the developed economies as the effects of fiscal stimulus policies wane and austerity measures take their place. In the US Treasury secretary Tim Geithner has maintained much of the federal stimulus put in place during the banking crisis, but has presided over large cuts by individual states, which must balance their budgets. Only Germany has maintained its robust growth, mainly on the back of exports to Asia, while France and Britain are unlikely to breach the 2% barrier. The UK government has estimated annualised growth at 1.5% to 2%, with a consensus hovering on or below 1.5%. US economy Economics United States Phillip Inman guardian.co.uk

Continue reading …
Morocco cafe explosion kills 14

Explosion tears apart Argana cafe in Marrakech’s Jamaa el-Fna square, which is popular with foreign tourists An explosion in the Moroccan city of Marrakech has killed at least 14 people and injured 20 at a market square cafe popular with foreign tourists. Several foreigners were among the victims. The blast just before noon tore the facade off the two-storey Argana cafe, leaving awnings dangling. Bystanders dragged away bodies and tried to put out flames with fire extinguishers, witnesses said. The interior ministry said there was evidence the blast was a “criminal act”. A Moroccan government spokesman, Khalid Naciri, said that the dead came from different countries but did not say which ones. “We worked for more than an hour, maybe less, on the hypothesis that this could eventually be accidental. But initial results of the investigation confirm that we are confronted with a true criminal act,” Naciri said in an interview with France-24 television. British man Andy Birnie told Associated Press: “There was a huge bang and lots of smoke went up. There was debris raining down from the sky. Hundreds of people were running in panic, some towards the cafe, some away from the square. The whole front of the cafe is blown away.” Birnie, from north London, is on his honeymoon. “It was lunchtime so the square was very busy. We had just walked into the square but were shielded by some stalls.” A photographer said he saw rescue workers pulling dismembered bodies from the cafe. The Jamaa el-Fna square is a Unesco world heritage site known for its snake charmers and fire breathers. Marrakech’s old town is usually crowded with tourists. The state news agency, MAP, said an investigation was under way. An official source had earlier told Reuters it appeared the blast was caused by gas canisters in the cafe catching fire. Islamist militants staged a series of suicide bombings in Morocco’s commercial capital, Casablanca, in 2003. More than 45 people were killed. Morocco Mark Tran guardian.co.uk

Continue reading …
Morocco cafe explosion kills 14

Explosion tears apart Argana cafe in Marrakech’s Jamaa el-Fna square, which is popular with foreign tourists An explosion in the Moroccan city of Marrakech has killed at least 14 people and injured 20 at a market square cafe popular with foreign tourists. Several foreigners were among the victims. The blast just before noon tore the facade off the two-storey Argana cafe, leaving awnings dangling. Bystanders dragged away bodies and tried to put out flames with fire extinguishers, witnesses said. The interior ministry said there was evidence the blast was a “criminal act”. A Moroccan government spokesman, Khalid Naciri, said that the dead came from different countries but did not say which ones. “We worked for more than an hour, maybe less, on the hypothesis that this could eventually be accidental. But initial results of the investigation confirm that we are confronted with a true criminal act,” Naciri said in an interview with France-24 television. British man Andy Birnie told Associated Press: “There was a huge bang and lots of smoke went up. There was debris raining down from the sky. Hundreds of people were running in panic, some towards the cafe, some away from the square. The whole front of the cafe is blown away.” Birnie, from north London, is on his honeymoon. “It was lunchtime so the square was very busy. We had just walked into the square but were shielded by some stalls.” A photographer said he saw rescue workers pulling dismembered bodies from the cafe. The Jamaa el-Fna square is a Unesco world heritage site known for its snake charmers and fire breathers. Marrakech’s old town is usually crowded with tourists. The state news agency, MAP, said an investigation was under way. An official source had earlier told Reuters it appeared the blast was caused by gas canisters in the cafe catching fire. Islamist militants staged a series of suicide bombings in Morocco’s commercial capital, Casablanca, in 2003. More than 45 people were killed. Morocco Mark Tran guardian.co.uk

Continue reading …

A Michigan teenager faces up to 4 years in prison after witnesses said he deliberately ran down a family of ducklings with his Hummer, killing four of them. The massacre occurred outside an Ann Arbor MacDonald’s after workers told one of Dillon Pearce’s passengers to stop trying to pick up…

Continue reading …

Looks like “birther queen” Orly Taitz isn’t ready to give up that title just yet. The release of President Obama’s long-form birth certificate is “a step in the right direction,” she tells TMZ , but she has spotted a big problem with the document: The race of Obama’s father—a Kenyan—…

Continue reading …

An 18-month-old Dutch toddler has won a pro contract after a video of him expertly kicking soccer balls into his toy box scored almost a million hits on YouTube. Baerke van der Meij was offered the symbolic contract by Venlose Voetbal Vereniging, the team his grandfather once played for, the…

Continue reading …
AV’s not perfect, but we need it

The first-past-the-post system has led to the slow death of a critical political culture. AV would at least give oxygen to debate Parliament’s numbness to the million-strong march against the Iraq war has left a legacy of profound scepticism about parliamentary politics as we know it. As widespread protest grows against the coalition’s erosion of public services, could AV make our political institutions any more sensitive to outside the political class? My starting point is Thomas Rainsborough ‘s powerful argument for extending the franchise, irrespective of wealth and property: “The poorest he that is in England hath a life to live, as the greatest he … every man that is to live under a government ought first by his own consent to put himself under the government … the poorest man in England is not at all bound in a strict sense to that government that he hath not had a voice to put himself under”. Four centuries from Rainsborough’s declaration, eight decades from the suffragettes winning the universal franchise, UK prime ministers govern without a mandate of the majority, and governments regularly implement policies that benefit the rich or the corporations and over which the poorest effectively have no say – the dismantling of the NHS being the latest such demonstration of contempt for the voters. In other words, what was a democratic victory – the winning of the universal right to vote, opening a dynamic towards more radical democratic reforms – has been turned into an opaque system of elite rule. The “winner takes all” electoral system has been a vital accomplice in this establishment hijack, giving spurious appeal to the mythologies of democratic rule that have veiled the nature of the UK’s unwritten, monarchical constitution. These mystified arrangements in turn have protected the financial interests of the City that have shaped what are and aren’t allowed as policy options in public debate. No wonder the financial and political establishment is now closing ranks to ensure that this guard against genuine public accountability stays in place. Evidence of the mass disenfranchisement that is part of this electoral system is overwhelming and has been well publicised. But another, less publicised, consequence of first-past-the-post voting has been the slow death of a critical political culture. It underpins the pull of electoral competition towards the political centre. Instead of enabling representative democracy to, in the words of cultural theorist Raymond Williams , “re-present” the plurality of views held by the population, it effectively excludes or politically kettles the wide range of alternatives to the mainstream. This has got worse under corporate globalisation, which has transformed the hidden rules of political debate. The power of the global market has meant that policies in its favour are presented as unavoidable, turning politics into a process of technical economic management. A challenge to this process requires a concerted expansion of the argument and debate that is necessary for political creativity. Instead, the New Labour leadership – whose legacy is proving difficult to dismantle – treated open debate as beyond the bounds of legitimate politics. Now, sucked into the quicksand of the centre ground, the Lib Dem leadership does the same. So I’m viewing the referendum as an opportunity to open up a process of structural political change, an opportunity that is a result of us, the voters refusing to place our trust in existing political options. This is far more important than punishing Nick Clegg. Clegg’s clinging to the coat tails of Cameron is a product of the present system and he and the Lib Dems will not be able to control the dynamic of change that even the minimal opening of AV represents. AV is not proportional and it’s not the solution. But it will force an opening up of political debate. Alternative views, previously marginalised or excluded, would become a legitimate part of the political process – perhaps in a minimal way at first, but with an angry, alienated and determined electorate there would be a real possibility of it opening up an uncertain dynamic. AV will enable voters to demonstrate their true first preferences, which currently are masked by the absence of alternatives and because many people have to vote tactically or abstain. For example, the growing resistance to the idea that “there is no alternative” to the cuts could, through AV, make itself directly part of the political process. The kind of electoral challenge made by Richard Taylor in Worcester could become a powerful political force since such campaigns can attract support from broad stretches of the community. AV would challenge the main parties to relate to forces outside of Westminster, like the hundreds of thousands who marched through London on 26 March insisting that cutting public services is not the way to sustainable economic recovery. It could also strengthen the ability of parties such as the Greens to better identify their support at local level, and lay the foundations for new progressive electoral alliances in the future. A no vote to electoral reform would send out all the wrong messages, and be trumpeted as evidence that the British public is broadly content with our politics. Worse still, it might derail existing commitments to see PR introduced for the second chamber. It wouldn’t so much weaken the coalition as confirm our own powerlessness in the face of the interests that guide its agenda. It’s not for nothing that the head of the Taxpayers Alliance has given up his time to lead the no campaign. I will grasp the opportunity of the referendum to vote for AV as a vote for change. My hope is that it will initiate a dynamic of change driven from below, not just for genuine proportional representation at Westminster, but for a participatory constituent assembly to produce a democratic written constitution, the objectives of which could well incorporate the egalitarian spirit of Rainsborough. Alternative vote Electoral reform AV referendum Nick Clegg Hilary Wainwright guardian.co.uk

Continue reading …
Wary praise for Hamas-Fatah truce

Celebration in Gaza City is dispersed by police wielding batons, while Ramallah seems more concerned with Champions League In Ramallah’s Manara Square there was not a Palestinian flag to be seen following the news of a reconciliation agreement between Hamas and Fatah on Wednesday night – but there were hundreds of Real Madrid and Barcelona flags carried by fans watching the Champions League semi-finals. In Gaza City around 100 people went to the Square of the Unknown Soldier to celebrate, but were quickly dispersed by Hamas police wielding batons. Sama, 30, a journalist and activist with the Gaza Youth Break Out group, said: “We went to the square to celebrate the hope of unity. We were around 100 people but there were more policemen. We waved Palestinian flags and we sang, ‘Palestine is all that matters.’ Within minutes they just started hitting us with batons.” The Gaza Youth group organised protests on 15 March this year to demand unity between the Hamas and Fatah factions . Thousands joined those demonstrations, until they were violently dispersed by the police. Abu Yazan, 24, another activist, said that he had been arrested five times since 15 March but added that he was happy that the group’s protests appeared to have an effect. “We demanded unity between Fatah and Hamas because the divisions have screwed us for a very long time,” he said. “We are so happy but so cautious. They have signed agreements before but then fall out on the details.” Hamas and Fatah have come to two agreements since Hamas won legislative elections in 2006. The first was signed in March 2007 in Mecca and lasted for three months until the outbreak of a five-day war in Gaza, which ended with Hamas taking complete control of the territory. The second agreement was signed in Yemen in 2008 by the same signatories as Wednesday’s agreement but lasted just two days. Wednesday’s agreement took many commentators by surprise. Many believe that while Hamas and Fatah may in theory support a unity government, each is unwilling to give up its hold on power in Gaza and the West Bank respectively. The Gaza Strip has been blockaded by Israel since Hamas took power in 2007. Some can leave via the Rafah border with Egypt but most are unable to. Young people have been particularly harmed by economic sanctions which have caused unemployment of up to 70% among the young. Ramallah, where Fatah and the Palestinian Authority are based, is in the midst of a boom funded by international aid and investment. Gaza may be poorer but Hamas has complete control within its borders. In the West Bank, most of which does not share the prosperity of Ramallah, the Palestinian Authority’s control is limited by Israel’s occupation. In Ramallah Feidi Abdulsamad, 30, an officer in the Palestinian security forces, welcomed the agreement. “If we change this government this year we have a good chance at peace. If we have a better contact with Hamas then I am happy. If we are together we are stronger and if we are stronger, we have a better chance of peace with Israel,” he said. Razan, 22, a graphic designer, also welcomed the agreement but said she thought it would not make much difference to her life. “But I think for Gazans it offers them some hope,” she said. In Gaza City, Abu Ghassan, 24, a student and activist with Gaza Youth Break Out said that most Palestinians were exhausted by the Israeli occupation and Palestinian divisions and were sceptical of progress. “We need actions. We need to feel that both sides are ready to make sacrifices for unity but we have not seen anything yet. My fear is that once they have to give something up, they will freeze,” he said. Palestinian territories Hamas Fatah Gaza Middle East Conal Urquhart guardian.co.uk

Continue reading …

The royal wedding is a “legitimate target” for terrorists and Muslims should stay out of central London tomorrow, warns a radical Muslim group in Britain. The leader of Muslims Against Crusades—whose application to protest outside the wedding was rejected—says he doesn’t have any inside knowledge of an attack…

Continue reading …