• Almost £50bn wiped off leading FTSE shares on Thursday • Huge sell-off on Wall Street hits Dow Jones • Turmoil sweeps through Asian stock exchanges My colleague Jill Treanor reports that Stephen Hester, chief executive of Royal Bank of Scotland, urged markets to stay “calm” in the face of market turbulence as the bailed out bank slumped to a £794m first half loss. Results were impacted by a £733m hit on Greek bonds and a £850m provision for payment protection insurance. RBS shares slumped nearly 14% to 26.05p this morning. 8.12am: In Italy, shares in the country’s biggest bank Unicredit have been suspended for excessive losses after falling nearly 6%. Shares in Intesa Sanpaolo, which is due to report first-half figures later today, were also suspended after falling 7.7%. Europe’s banking stock index tumbled 3.6%. Bond markets are going crazy too with yields hitting new record highs. The interest rate, or yield, on 10-year Italian government bonds has spiked 15 basis points to 6.38% while the Spanish yield is up 10 points at 6.42% and the Portuguese yield is 16 points higher at 13.1%. 8.04am: The FTSE 100 tumbled more than 170 points in early trading, a drop of 3.3%, to 5217. The interest rate on UK ten-year government bonds, known as gilts, fell to a record low of 2.59%. France’s CAC lost 3.1%, Spain’s Ibex 2.2% and Italy’s FTSE MIB 3.3%. 7.55am: Richard Hunter, head of UK equities at Hargreaves Lansdown stockbrokers, said markets could fall further today, especially if key jobs data from the US reveals a further slowdown in the economy. Hunter said: Investors are pessimistic at the moment, the general market mood is to try to prepare for the worst. It’s difficult to see anything positive coming from the data today unless they reveal absolutely barnstorming figures. Non-farm payrolls for July, released at 1.30pm London time, are expected to show weak job growth in the US (a rise of 85,000 jobs after June’s dire 18,000 increase) while the unemployment rate is expected to stay at 9.2%. On this side of the pond, French President Nicolas Sarkozy will hold crisis talks discussing financial markets with German Chancellor Angela Merkel and Spanish Prime Minister Jose Luis Rodriguez Zapatero. 7.35am: Good morning. We will bring you the latest news and commentary today as stock markets are braced for further falls amid fears that the world economy could slide back into recession. Thursday was a day of global stock market mayhem, which saw the FTSE 100 index suffering its worst daily fall since March 2009 as the eurozone and US debt crises took their toll. Nearly £50bn was wiped off the value of Britain’s 100 biggest companies and traders said the atmosphere was ominously reminiscent of the banking crisis of autumn 2008. In Asia, Japan’s Nikkei lost 3.7% to 9299.88 overnight while Hong Kong’s Hang Seng tumbled 5.1% to 20,761.98 and the Taiwanese stock market was down 5.6% at 7853.13. To recap: The FTSE 100 in London lost 191.37 points , or 3.4%, to 5393.14 yesterday. On Wall Street, the Dow Jones closed more than 500 points , or 4.3% lower at 11,383 – the biggest single-day loss since 2008. Comments from the president of the European commission, José Manuel Barroso, did little to calm markets. “We are no longer managing a crisis just in the euro area periphery,” he said yesterday. “Euro area financial stability must be safeguarded.” He urged European leaders to review “all elements” of the €440bn (£382bn) European financial stability facility and its €500bn replacement, the European stability mechanism. Stock markets United States US economy Economics European debt crisis Julia Kollewe guardian.co.uk
Continue reading …A Texas jury made quick work of the Warren Jeffs case today, deliberating for less than four hours before finding him guilty of sexually assaulting two underage girls in his polygamist sect, reports CNN . He faces life in prison when the sentencing phase of the trial wraps up. Jeffs acted…
Continue reading …They were showered with gifts and money, but a year after the collapse, many of ‘Los 33′ are facing poverty When the San Jose copper mine collapsed on 5 August last year, the 33 men trapped underground were convinced that they would slowly starve to death. But two months later, a drill broke through to their refuge 700 metres below ground, and, after a painstaking rescue operation, they were eventually hauled to the surface before television cameras from around the world. For a brief, glorious, moment, “Los 33″ became a symbol of unity and faith, their rescue an almost unbelievable parable of survival against the odds. The men became superstars: they were cheered by 75,000 football fans at Wembley and invited on all-expenses-paid trips to Disneyland, Israel and Greece. One year after the cave-in, however, most have been returned to poverty, and some are even worse off than before the disaster. Several are struggling with the psychological and physical trauma of their ordeal, and all are struggling with the mixed blessings brought by instant – and unsought – fame. “We were like rock stars. People climbed trees to see us,” said Samuel Avalos, who had only been working at the mine for a few months before the collapse, and has now returned to selling pirate CDs on the street. After the rescue, all 33 received free motorbikes from the Kawasaki corporation, and around $15,000 (£9,000) from Chilean businessman Leonardo Farkas, but the money has long since run out. Avalos’s only regular income is a $500 monthly medical leave cheque, less than half his salary at the mine. “Will you buy my motorbike?” he asks, mid-interview. “Or I have a flag signed by all 33 miners. How much is that worth?” Another miner, Osman Araya used part of his $15,000 to buy a van and now sells vegetables in Copiapo market. Dario Segovia, a former drill operator, sells fruit in the same market. Araya was recently critical of his fellow miners and launched a deliberate call for help when he told Chilean newspaper La Tercera, that “all is not well with the 33″. Many have psychological and medical problems, said Dr Jean Romagnoli, a lead doctor in the rescue operation. “They are taking uppers, downers, stabilisers, I think they are over prescribed … They don’t understand why they are taking them but they are fed up with pills,” he said. “It is not pills they need, but the tools to deal with fame and the tools to renovate themselves.” Psychological treatment has been co-ordinated by the government and a private health insurance company, but many miners find the treatment insufficient, and family members say they ought to be included in the sessions. A handful of the miners – including the gregarious Mario Sepulveda, who acted as the miners’ spokesmen in videos they recorded underground – have built careers giving speeches and public appearances, but most are suffering from financial and psychological problems. “They are about to hit very, very hard times,” said Romagnoli, who is in close contact with many of them. “They do not know how they are going to get through the next month.” Yonni Barrios, the miner who served as a doctor to his companions – and gained notoriety when both his wife and lover showed up at the rescue – now has silicosis, an irreversible lung disease. Last month, producer Mike Medavoy announced that he had bought the rights to their story. The deal’s details have not been released, but filming is expected to begin in 2012. Medavoy has said he will focus on just a few of the 33 men, but a contract that the miners signed with their lawyers last December stipulates that they will all share certain revenues – including any authorised book, movie or collective testimony. Meanwhile, the men are hoping to receive settlements from two lawsuits: one against the government for allowing the unsafe mine to remain open after years of warnings, and one against the mine owners. They are seeking $541,000 each from the government and an undetermined amount from the company. When the news broke last month that the miners planned to sue the same government that had organised the estimated $11m rescue operation, they were denounced as money grabbers. They shot back that they only had to be rescued because the mine was so outdated, with unsafe working conditions long recognised by the government. That argument has been echoed by local politicians such as Brunilda Gonzalez, mayor of Caldera, who said the government was still not paying enough attention to safety regulations. She has promised to boycott a commemorative ceremony organised by President Sebastian Piñera on Friday in Copiapo. “We as a municipality are not going to participate because this is all a media and political show,” she said. Araya has also said he will not attend official ceremonies, because the other survivors have failed to honour a pact to share revenue from speaking engagements and motivational talks. “I want to separate myself from all this. I am not participating in anything because it pains me to see how [the other survivors] have behaved. They’re just looking for the TV cameras,” he said. Romagnoli lamented that the men had not been converted into ambassadors for workers’ safety. “In any other country they would have been national heroes … building up the country’s image around the world. Why have they been abandoned?” Living proof fame is a double-edged sword Mario Sepulveda The charismatic leader who acted as a spokesman for the 33 in their underground video has taken his show above ground. “Super Mario” now lectures around the world. In Chile, he volunteers at schools in poor areas, giving motivational lectures. Criticised by other miners for taking the lion’s share of the cash, he seems a natural in his new role as showman. Omar Reygadas The calm mining veteran led one of the three shifts underground, has been nominated official spokesman for the 33 men, and has travelled widely to deliver speeches. A former union leader, Reygadas has been key in organising the miners’ financial affairs. Franklin Lobos A former professional footballer, Lobos was the only one of the 33 to have an inkling of the double-edged sword that is fame. Wisely limiting his exposure to the media, he has chosen to rebuild his life with his first love – football. Today Lobos travels abroad as invited guest of Fifa and works full time at a Chilean football club. Edison Pena The jogger who ran the New York marathon and briefly appeared on the Letterman show is torn between his high-voltage renditions of Elvis songs and the trauma of the ordeal. Volatile in interviews, Pena has suffered deeply from the psychological effects of his entrapment. Mario Gomez At 63, Gomez was the oldest of the miners and had difficulty breathing even before a massive rock collapse trapped him in the bottom of the San Jose mine. Today he is diagnosed with more advanced silicosis and will probably be placed on full medical pension shortly. Despite more than 50 years working as a miner, Gomez can no longer avoid the flashbacks from the collapse. His family stays close, allowing Gomez the support he needs. Yonni Barrios Ridiculed by the press for having a lover and a wife waiting for him topside, Barrios has been besieged by bizarre offers to capitalise on his infidelity, including a $100,000 offer if he would dump his lover and return to his wife. As well as the paparazzi, Barrios is stalked by encroaching lung problems. Diagnosed with silicosis, he is now banned from working in the mines and runs a business from his home in Copiapo, the city near the collapsed mine. Chilean miners rescue Chile Jonathan Franklin guardian.co.uk
Continue reading …KFC has closed all three of its stores in Fiji after a fight over ingredients it needs for its secret coating, reports the BBC . The chicken chain says the military government hasn’t let it import milk, herbs, and eggs since late last year. “The missing ingredients led to a decline…
Continue reading …• Asian markets plunge on back of Dow and FTSE falls • Worst sell-off for two years • Analysts predict more losses on back of US jobless data Financial markets were in turmoil after a collapse in share prices around the world. Fears that the the world economy could slip back into recession led London’s benchmark FTSE 100 Index to lose 50bn billion of its value – its biggest fall of the year. Asian stock markets also plummeted as investors sold riskier assets amid fears the US is heading back into recession and Europe’s debt crisis is worsening. Japan’s Nikkei 225 stock average slid 3.4% to 9,328.74 and Hong Kong’s Hang Seng dropped 4.4 % to 20,912.60. South Korea’s Kospi index shed 3.6 % to 1,945 and Taiwan’s benchmark slumped 4.4 % to 7,952.98. Australia’s benchmark dropped 4% to 4,103.10. The slump in the far east came after the US stock market suffered one of its worst days ever on Thursday, with the Dow Jones Index plummeting 4.3%. The plunge in share prices came amid rising fears that Italy and Spain, the eurozone’s third and fourth largest economies, may need bailouts and widespread worries over the US’ economic recovery. Richard Hunter, head of UK equities at Hargreaves Lansdown stockbrokers, said markets could continue to fall on Friday, particularly if closely-watched jobs data from the US reveals a further slowdown in the economy. He said: “Investors are pessimistic at the moment, the general market mood is to try to prepare for the worst. “It’s difficult to see anything positive coming from the data today unless they reveal absolutely barnstorming figures.” Worried traders are waiting for today’s release of US unemployment figures for July, which is expected to show weak job growth and a rise in the unemployment rate. The plunge in global markets is further bad news for Chancellor George Osborne, who has faced increasing pressure over the pace of Britain’s economic recovery. Robert Chote, chairman of the Office for Budget Responsibility, on Thursday said the watchdog’s growth forecast of 1.7% – made in March – was likely to be missed. GDP increased by a lacklustre 0.2% in the second quarter of 2011 after consumers reined in spending. The growth fears led the Bank of England to hold interest rates at their record low of 0.5%. It is understood that the government is monitoring the global markets closely and the chancellor is receiving regular updates. A Treasury spokesman said: “This is a time of uncertainty in the international economy. Because of our difficult decisions to reduce the deficit and tackle our debts, Britain has been stable during this time. “The economy is growing and creating jobs.” The collapse of shares in Europe was sparked after the cost of borrowing for the Spanish government rose sharply in a debt auction – indicating lenders have lost confidence in the country’s ability to handle its debts and avoid a bailout. European Commission president Jose Manuel Barroso urged European leaders to rapidly reassess “all elements” of the eurozone’s bailout fund, known as the European Financial Stability Facility (EFSF), including its size. The EFSF was equipped with new pre-emptive powers last month, including the ability to buy up distressed government bonds to support their prices or extending credit lines to countries before they are in full-blown crisis mode. That was a recognition that rescue packages like the ones given to Greece, Ireland and Portugal would be far too expensive for big economies like Italy and Spain. But analysts have said the fund will not be able to properly use these new powers at its current size of €440bn(£383bn). The FTSE 100 Index closed down 3.4%, or 191.4 points, at 5393.1 – its biggest daily drop since March 2009. It follows a fall of 2.3% yesterday, which means that �85 million has been wiped off its value in the past two days. It is now at its lowest point for nearly a year. The Dow Jones lost 512.76 points which was the steepest points fall since December 2008. It was the ninth worst fall by points for the Dow. Stock markets European debt crisis European banks US economy Economics guardian.co.uk
Continue reading …It is an epic defense: A New Mexico mayor says his city does not owe $1 million to a California architectural company because he was blotto drunk when he signed the (nine!) contracts, reports the Albuquerque Journal . “The day I signed … I had way too much to drink,…
Continue reading …A few months ago, Facebook sued adult dating site Shagbook over trademark infringement; now, the makers of Shagbook are hitting back, arguing that “facebook” is a “generic term.” Facebook says Shagbook is too close to its own name and suggests “the intent to call to mind and create a likelihood…
Continue reading …A former student is suing her high school for allegedly letting fellow students celebrate “Wigger Day,” the Huffington Post reports. “Wigger is a pejorative slang term for a white person who emulates the mannerisms, language and fashions associated with African-American culture,” the lawsuit says. Though the school had chosen a…
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