Former City minister believes market volatility down to computer-based black box trading not short-selling Former City minister Lord Myners, an investment industry veteran, has redoubled his attack on high-frequency “black box” share trading, which he believes has exacerbated the record levels of volatility in share prices seen over recent weeks. While regulators in continental Europe have sought to crackdown on the activities of short-sellers – those who bet on the decline in the price of shares – Myners argues that there is a “greater need to address” what he sees as the corrosive impact of high-frequency trading practices. “High-frequency trading appears so detached from the true function of capital markets, but is potentially fraught with hazard. It definitely deserves more attention than either the Financial Services Authority (FSA) or the Treasury has given it,” he told the Sunday Telegraph. Amid mounting doubts over the health of the eurozone, the FTSE 100 index shed 3% of its value on Wednesday, only to gain a total of 6% on Thursday and Friday . Black box trading is a term used when investment strategies are determined by powerful computer algorithms rather than more traditional stock-picking techniques. The capacity of computers to digest large volumes of data in an instant, identifying trends in a market, means that some hedge funds have effectively devolved trading decisions to the black boxes they have created. Programming computers to pounce on fleeting trading patterns, rather than analyse underlying companies, makes for a more-volatile market, critics argue. Two years ago it was estimated that high-frequency trading accounted for up to 70% of all share transactions in New York. In response to a question from Myners last week, the government said a review of computer trading had been established under Treasury minister Mark Hoban last November, though his review committee had only met for the first time last month. Its report is not due to be published until the autumn of 2012. Myners has in recent years campaigned on a raft of issues all of them broadly calling for shareholders to exert more ownership rights over companies. Earlier this year he was appointed UK chairman of Cevian Capital, Europe’s largest activist fund manager. As well as formerly chairing Guardian Media Group, the publisher of the Guardian, his past roles have included that of chairman at investment group Gartmore. He has also been a director of the hedge fund GLG Partners. Financial sector Short-selling Stock markets European debt crisis Banking Financial crisis Global recession Simon Bowers guardian.co.uk
Continue reading …Michele Bachmann vanquished Tim Pawlenty and the other Republican also-rans in yesterday’s Iowa straw poll , so let the real battle royale for the right begin—Bachmann vs. Texas Gov. Rick Perry, writes Steve Kornacki at Salon . “She crushed her biggest mainstream competitor,” he writes, and Ron Paul, despite finishing a…
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At least five people, including two children, have died and another critically injured after a knife attack at a flat in St Helier At least five people, including two children, have died and another is in a critical condition after a knife attack at a flat in St Helier, Jersey. A 30-year-old man was in police custody at Jersey general hospital where he is also recovering from surgery following the incident at around 3pm in a residential area close to the town centre. A sixth person was in a critical condition and undergoing surgery at Jersey hospital, which was closed for a period of time, with visitors being turned away from the wards. States of Jersey Police said that officers were called to a flat at Victoria Crescent, Upper Midvale Road, St Helier, just after 3pm following reports of a multiple stabbing. The immediate area around where the incident occurred was sealed off while a major incident room was set up at police headquarters in St Helier. An eyewitness, Andre Thorpe, said he believed all the victims were members of the same family, and that two ambulances arrived at the scene, which was within a mile of the ambulance station. “Then four or five police vehicles came” he said. “They were trying to access a private house in the crescent. It was an old Victorian terrace, a lot of them are split into flats.” “I saw police come running out with a child, it was a small child, I just saw the legs. They went off in an ambulance. When the paramedic came back her shirt was covered in blood.” He added that the area where the incident happened was quite secluded and not on a main road. The head of crime services, Stewart Gull, who is leading the police investigation, said: “Clearly this complex investigation is in its very early stages as we try to establish exactly what happened. “We are appealing to anyone who may have any information to contact us. “We are mindful, too, of the impact of any such serious and tragic incident on the local community, and we have police officers in the area to support the investigation and local people.” Police urged anyone with information to contact them on 01534 612612. Jersey Channel Islands Ben Quinn guardian.co.uk
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At least five people, including two children, have died and another critically injured after a knife attack at a flat in St Helier At least five people, including two children, have died and another is in a critical condition after a knife attack at a flat in St Helier, Jersey. A 30-year-old man was in police custody at Jersey general hospital where he is also recovering from surgery following the incident at around 3pm in a residential area close to the town centre. A sixth person was in a critical condition and undergoing surgery at Jersey hospital, which was closed for a period of time, with visitors being turned away from the wards. States of Jersey Police said that officers were called to a flat at Victoria Crescent, Upper Midvale Road, St Helier, just after 3pm following reports of a multiple stabbing. The immediate area around where the incident occurred was sealed off while a major incident room was set up at police headquarters in St Helier. An eyewitness, Andre Thorpe, said he believed all the victims were members of the same family, and that two ambulances arrived at the scene, which was within a mile of the ambulance station. “Then four or five police vehicles came” he said. “They were trying to access a private house in the crescent. It was an old Victorian terrace, a lot of them are split into flats.” “I saw police come running out with a child, it was a small child, I just saw the legs. They went off in an ambulance. When the paramedic came back her shirt was covered in blood.” He added that the area where the incident happened was quite secluded and not on a main road. The head of crime services, Stewart Gull, who is leading the police investigation, said: “Clearly this complex investigation is in its very early stages as we try to establish exactly what happened. “We are appealing to anyone who may have any information to contact us. “We are mindful, too, of the impact of any such serious and tragic incident on the local community, and we have police officers in the area to support the investigation and local people.” Police urged anyone with information to contact them on 01534 612612. Jersey Channel Islands Ben Quinn guardian.co.uk
Continue reading …At least five people, including two children, have died and another critically injured after a knife attack at a flat in St Helier At least five people, including two children, have died and another is in a critical condition after a knife attack at a flat in St Helier, Jersey. A 30-year-old man was in police custody at Jersey general hospital where he is also recovering from surgery following the incident at around 3pm in a residential area close to the town centre. A sixth person was in a critical condition and undergoing surgery at Jersey hospital, which was closed for a period of time, with visitors being turned away from the wards. States of Jersey Police said that officers were called to a flat at Victoria Crescent, Upper Midvale Road, St Helier, just after 3pm following reports of a multiple stabbing. The immediate area around where the incident occurred was sealed off while a major incident room was set up at police headquarters in St Helier. An eyewitness, Andre Thorpe, said he believed all the victims were members of the same family, and that two ambulances arrived at the scene, which was within a mile of the ambulance station. “Then four or five police vehicles came” he said. “They were trying to access a private house in the crescent. It was an old Victorian terrace, a lot of them are split into flats.” “I saw police come running out with a child, it was a small child, I just saw the legs. They went off in an ambulance. When the paramedic came back her shirt was covered in blood.” He added that the area where the incident happened was quite secluded and not on a main road. The head of crime services, Stewart Gull, who is leading the police investigation, said: “Clearly this complex investigation is in its very early stages as we try to establish exactly what happened. “We are appealing to anyone who may have any information to contact us. “We are mindful, too, of the impact of any such serious and tragic incident on the local community, and we have police officers in the area to support the investigation and local people.” Police urged anyone with information to contact them on 01534 612612. Jersey Channel Islands Ben Quinn guardian.co.uk
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Estimated 2,000 people at Summerfield Park vigil for three men who died protecting shops from looters Two men remained in custody after appearing in court charged with the murders of three men struck by a car during the riots in Birmingham. Joshua Donald, 26, from Ladywood, appeared before magistrates charged with three counts of murder at a brief hearing at Birmingham magistrates court. Donald and a 17-year-old male from Winson Green, Birmingham, who cannot be named due to his age, were arrested on Thursday and charged after police were given extra time to question them. Haroon Jahan, 21, and brothers Shazad Ali, 30, and Abdul Musavir, 31, died after they were hit by the car in the
Continue reading …Estimated 2,000 people at Summerfield Park vigil for three men who died protecting shops from looters Two men remained in custody after appearing in court charged with the murders of three men struck by a car during the riots in Birmingham. Joshua Donald, 26, from Ladywood, appeared before magistrates charged with three counts of murder at a brief hearing at Birmingham magistrates court. Donald and a 17-year-old male from Winson Green, Birmingham, who cannot be named due to his age, were arrested on Thursday and charged after police were given extra time to question them. Haroon Jahan, 21, and brothers Shazad Ali, 30, and Abdul Musavir, 31, died after they were hit by the car in the
Continue reading …Estimated 2,000 people at Summerfield Park vigil for three men who died protecting shops from looters Two men remained in custody after appearing in court charged with the murders of three men struck by a car during the riots in Birmingham. Joshua Donald, 26, from Ladywood, appeared before magistrates charged with three counts of murder at a brief hearing at Birmingham magistrates court. Donald and a 17-year-old male from Winson Green, Birmingham, who cannot be named due to his age, were arrested on Thursday and charged after police were given extra time to question them. Haroon Jahan, 21, and brothers Shazad Ali, 30, and Abdul Musavir, 31, died after they were hit by the car in the
Continue reading …After years of using chimpanzees for scientific research—shooting them into space, testing hepatitis vaccines on them, using them for HIV studies—man’s closest relative could be nearing retirement, reports the Washington Post . The European Union banned using chimps for scientific research last year, and now the Institute of Medicine…
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Palestinians to push ahead with bid next month despite US opposition and warnings move will endanger future peace talks Palestinian leaders have said that they will formally request recognition of their state and full membership of the UN next month, despite strong US opposition amid warnings that such a move would jeopardise future peace talks. Mahmoud Abbas, the Palestinian president, will personally present the application to the UN secretary-general, Ban Ki-moon, before the UN general assembly opens on 20 September. The UN has the moral, legal, political and historical responsibility to recognise Palestine and “to put an end to the Israeli occupation”, said Ryad Malki, the Palestinian foreign minister. Abbas is to travel to Lebanon on Tuesday to discuss the plan. Lebanon will hold the rotating presidency of the UN security council next month and is expected to be sympathetic to the Palestinian campaign. The Israeli prime minister’s office said the Palestinian move was “expected and regrettable”. “Binyamin Netanyahu [the Israeli prime minister] still believes that only through direct and honest negotiations – not through unilateral decisions – will it be possible to advance the peace process,” the statement said. The Palestinian decision to adopt the UN approach is borne of frustration over stalled negotiations. Direct talks broke down last September when Israel refused to extend a temporary freeze on settlement expansion. The Palestinians also hope that UN recognition of their state will increase international pressure on Israel to end its 44-year occupation. Full membership of the UN requires the backing of the 15-member security council before approval by the general assembly. The US has already stated its intention to veto such a move. The UK, also a permanent member of the security council, has not declared its position. If the bid for full membership fails, the Palestinians are expected to request “non-member state” status – a step short of full recognition – at the general assembly, which requires a two-thirds majority of the 193 countries. At the moment, the Palestinians believe they have the support of about 120. Both the Palestinians and the Israelis have launched global diplomatic offensives in recent weeks to win support for their respective positions. According to Malki, the Palestinians’ “weakest point” was Latin America and the Caribbean, whose countries are meeting on Friday to try to establish a common position. The Israeli diplomatic campaign has focused on Europe. The 27 EU countries are presently split on whether to back the Palestinian bid, with Germany and Italy opposed, Ireland and Portugal in favour, and France and the UK undeclared. EU officials have pushed for a compromise in an attempt to keep the EU bloc together. The US has also sought to avoid a vote at the UN by attempting to reopen direct talks between the Israelis and the Palestinians on the basis of the pre-1967 borders with agreed land swaps to allow the big settlement blocs to remain in Israeli hands. Despite Netanyahu’s oft-repeated statements that there is no alternative to negotiations, many in the international community are sceptical about his willingness to make concessions to allow the establishment of a Palestinian state. Last week, the Israeli authorities confirmed plans for 1,600 homes in settlements in East Jerusalem, with another 2,700 expected to be approved in the coming days. The Palestinians want East Jerusalem, which was annexed by Israel after the 1967 war, to be their capital. “The settlements are the real obstacle to the resumption of negotiations,” Abbas was quoted as telling the US consul general in Jerusalem on Saturday. Israeli media reported this month that President Shimon Peres at the last minute cancelled a meeting with Abbas,that had been scheduled to try to revive negotiations, after Netanyahu failed to provide him with anything new to put on the table. Israel has repeatedly raised the spectre of renewed violence in the autumn, regardless of the outcome of the UN bid. The Palestinian Authority has called for peaceful demonstrations to coincide with the expected vote in New York. Avigdor Lieberman, Israel’s rightwing foreign minister, has said the Palestinians are preparing for “bloodshed the likes of which we’ve never seen before”. “The more they talk about nonviolent activity, the more preparations there are for bloodshed. When you prepare a march of tens of thousands of people who will storm checkpoints and pass through without being checked, everyone can imagine what would happen … the Palestinians are planning this in great detail,” he said. The Israeli security forces are preparing for a number of scenarios, according to reports in the local media. Special training of thousands of police officers is under way, and 200,000 litres of foul-smelling water canon has been stockpiled. The defence minister, Ehud Barak, told Army Radio on Sunday that millions of dollars had been spent on riot gear. However, he added, he expected and hoped September would pass quietly. Palestinian spokesman Ghassan Khatib denied this. “These Israeli predictions of violence aren’t true,” he told Associated Press. “Israel is trying to fuel a fake picture of what will happen in September.” Road to statehood? 1918-48 The British governed Palestine after the end of the first world war and the defeat of the Ottoman Empire, which had ruled the region. The British promised self-rule to the Arabs but also backed the creation of a Jewish homeland in the region. 1948-67 After the war that followed Israel’s declaration of its state in May 1948, the West Bank and East Jerusalem was governed by Jordan, and Gaza was governed by Egypt. 1967-93 During the Six-Day War, Israel occupied the West Bank and Gaza, and captured and later annexed East Jerusalem. It imposed military rule over the Palestinian territories. 1993 The Oslo accords were signed between Israel and Palestine, leading to the creation of the Palestinian Authority. The PA was given control over some West Bank cities, but Israel military control was maintained over 60% of the West Bank. Palestinian territories Middle East Israel US foreign policy United Nations Harriet Sherwood guardian.co.uk
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