• First quarter economic growth revised down to 0.4% • Consumer spending grew 0.1% in second quarter • Shares fall sharply The US economy ground to a virtual halt in the first half of the year, with consumer spending at its weakest level in two years. The shock figures sent shares tumbling in London. The FTSE 100 index extended losses to fall 84 points to 5789, a decline of 1.4%. Wall Street futures indicate that the Dow Jones will fall 116 points at the open. The data comes at a time when the White House and Congress are locked in a battle over how to raise the debt ceiling to allow the government to borrow more money . If they cannot agree, the government will soon run out of money, leaving it unable to pay its bills, such as social security payments, military pay and interest payments. The world’s largest economy grew at an annualised rate of 1.3% between April and June, the US Commerce Department said. Wall Street economists had expected 1.8%. Moreover, the first quarter growth rate was revised sharply lower to 0.4% from 1.9%, which means the economy barely grew over the first six months of the year. Growth in the fourth quarter of last year was also revised down, to 2.3% from 3.1%. Consumer spending grew by just 0.1% in the second quarter, the weakest since the recession ended two years ago. Car production was severely disrupted by the earthquake in Japan. Economists said the data could prompt the Federal Reserve to restart its quantitative easing (QE) programme to pump money into the economy. “While this is somewhat disappointing, the big surprise is in the revisions, which show growth being downgraded sharply in the first and fourth quarters,” said James Knightley, senior economist at ING. “Furthermore, the recession was deeper and started earlier than previously thought. his further reduces the prospect of any Fed policy tightening and offers some support to those arguing the case for QE3.” This means the US economy contracted by 0.3% in 2008, rather than posting zero growth, while in 2009 the economy shrank by 3.5% rather than 2.6%. The economy needs to grow by at least 2.5% to bring down the country’s 9.2% unemployment rate. US economy Economics United States Julia Kollewe guardian.co.uk
Continue reading …• First quarter economic growth revised down to 0.4% • Consumer spending grew 0.1% in second quarter • Shares fall sharply The US economy ground to a virtual halt in the first half of the year, with consumer spending at its weakest level in two years. The shock figures sent shares tumbling in London. The FTSE 100 index extended losses to fall 84 points to 5789, a decline of 1.4%. Wall Street futures indicate that the Dow Jones will fall 116 points at the open. The data comes at a time when the White House and Congress are locked in a battle over how to raise the debt ceiling to allow the government to borrow more money . If they cannot agree, the government will soon run out of money, leaving it unable to pay its bills, such as social security payments, military pay and interest payments. The world’s largest economy grew at an annualised rate of 1.3% between April and June, the US Commerce Department said. Wall Street economists had expected 1.8%. Moreover, the first quarter growth rate was revised sharply lower to 0.4% from 1.9%, which means the economy barely grew over the first six months of the year. Growth in the fourth quarter of last year was also revised down, to 2.3% from 3.1%. Consumer spending grew by just 0.1% in the second quarter, the weakest since the recession ended two years ago. Car production was severely disrupted by the earthquake in Japan. Economists said the data could prompt the Federal Reserve to restart its quantitative easing (QE) programme to pump money into the economy. “While this is somewhat disappointing, the big surprise is in the revisions, which show growth being downgraded sharply in the first and fourth quarters,” said James Knightley, senior economist at ING. “Furthermore, the recession was deeper and started earlier than previously thought. his further reduces the prospect of any Fed policy tightening and offers some support to those arguing the case for QE3.” This means the US economy contracted by 0.3% in 2008, rather than posting zero growth, while in 2009 the economy shrank by 3.5% rather than 2.6%. The economy needs to grow by at least 2.5% to bring down the country’s 9.2% unemployment rate. US economy Economics United States Julia Kollewe guardian.co.uk
Continue reading …A judge has snipped a proposal to ban male circumcision from San Francisco’s November ballot. The judge said the proposal—which would have made it a crime to circumcise males under the age of 18 unless there was “a clear, compelling and immediate medical need”—violated religious freedoms. She struck…
Continue reading …Soccer coach Bob Bradley has been fired after more than four years at the helm of Team USA. Bradley was rehired until 2014 after the US reached the second round of the 2010 World Cup finals, but few people are surprised by the move now to replace him, the Washington…
Continue reading …Emergency services at scene after light aircraft hits properties in Peel Green area A light aircraft has crashed into two properties in Salford, Greater Manchester. Police were called to Newlands Avenue in Peel Green, Salford, just after 12.20pm following reports that a plane had come down on to houses. No injuries could be confirmed at this stage, police said. A police spokesman said: “Officers attended and discovered a light aircraft had come down and collided with two properties. A cordon is in place and the other emergency services are also working at the scene.” A spokesman for Greater Manchester fire and rescue service said: “Just after 12.20pm we received reports of an incident involving a light aircraft. “Fire crews were mobilised to Newlands Avenue in the Peel Green area of Eccles, Salford, who on their arrival discovered that a light aircraft had crashed into a house. “At 1.20pm six fire engines were in attendance at the incident.” Plane crashes Manchester guardian.co.uk
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Exclusive : Party believes it can broaden support within armed services it feels the Tories have lost touch with over cuts Millions of armed forces veterans are to be targeted by a Labour recruitment drive that will see former soldiers, sailors and air staff being offered membership of the party for 1p. Labour believes that the Tories have lost touch with the military and wants to challenge the notion that members of the services are more likely to vote Conservative. It has also frustrated party chiefs that many traditional recruiting grounds – for the army in particular – are in poorer areas of the country, where Labour is strong. Yet this has not translated into broad support for the party within the services, or among veterans. The idea for 1p membership emerged during the review set up after last year’s election defeat. It is supposed to provide new ways of invigorating the party under the leadership of Ed Miliband. Called Refounding Labour, the consultation is being conducted by the former cabinet minister Peter Hain, who is understood to be strongly in favour of the veterans’ initiative. The Labour party’s standard membership rate is £41 a year or £3.42 a month; the reduced rate for the unwaged and pensioners is £20.50 or £1.71 a month. The veterans’ initiative will be among a number of recommendations to be put before this September’s party conference, when members will be urged to vote for a change to the existing membership rules. No other party has ever offered a concession to veterans, and if it goes ahead, Labour will begin an aggressive marketing campaign – with posters, email and mailshots. The potential political dividend is obvious: in 2007, it was estimated that there were 3.8 million armed forces veterans in the UK. Labour has chosen to use the Ministry of Defence’s own broad definition of veteran – anyone who has served in the armed forces at any time, irrespective of length of service, including reservists and those who went through national service. The 1p offer will last for a year, but those who sign up will probably have to pay the full annual rate in the second year. Labour officials argue that “changing our party rules … would signal how seriously we intend to be a party of the armed forces”. “We want all those with frontline experience to be involved in shaping our party’s culture, policy and campaigns,” said one. “Veterans’ unique experience and insight will bring wisdom and expertise to the Labour party. No other political party has a membership scheme which offers concessions for veterans so this move would set us apart from others.” Jim Murphy, the shadow defence secretary, said: “Veterans have made our country safer and now I want to invite them to help make our party stronger. The Tories have totally lost touch with our armed forces because of their rushed defence cuts. “This would be an excellent and exciting move which would strengthen not just Labour’s defence policy but also Labour’s links with the whole defence community.” However, the Equality for Veterans Association, which campaigns for ex- armed forces personnel on issues such as pensions, took a dim view of the idea. “Personally, I wouldn’t pay 1p to join any political party,” said Sid West, the group’s deputy campaign manager. “I don’t think that offering a bribe to vote for a party is a good thing. Veterans have real hardships caused by things like the lack of parity for pensions. I wish the parties would concentrate on serious things like that.” The Royal British Legion declined to comment. Labour Military Conservatives Public sector cuts Public services policy Public finance Public sector pensions Nick Hopkins guardian.co.uk
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Two services for those killed in Oslo and on Utøya island take place as Anders Behring Breivik faces more questioning Two memorial services for the victims of last week’s terror attacks in Norway are being held as the Norwegian man who confessed to the killings faces a second round of questioning by police. The Norwegian prime minister, Jens Stoltenberg, has urged his country to show unity at the services in the face of the attacks – a bombing in Oslo and a shooting rampage at a youth camp on Utøya island – in which 76 people died. Norway’s police chief of staff, Johan Fredriksen, said that all the dead had now been identified and that those who had been reported missing were accounted for. One of the memorial services is being hosted by Stolenberg’s governing Labour party, while the other is taking place at a mosque in Oslo. The first funerals are also being held. The Norwegian news agency NTB said suspect Anders Behring Breivik was transported to police headquarters in Oslo for a second session of questioning. Investigators believe the 32-year-old acted alone, after years of meticulous planning, and have not found anything to support his claims of being part of an anti-Muslim militant network plotting a series of attacks across Europe. Breivik was questioned for seven hours on Saturday, the day after the twin attacks, which targeted the government district of Oslo and a Labor party youth camp. He admitted carrying out the attacks but has pleaded not guilty to terror charges, saying he is in a “state of war”, according to his lawyer and police. Police have charged Breivik with terrorism, which carries a maximum sentence of 21 years in prison. However, it is possible the charge will change during the investigation to crimes against humanity, which carries a 30-year sentence, Norway’s leading prosecutor, Tor-Aksel Busch, told the Associated Press. “Such charges will be considered when the entire police investigation has been finalised,” he said. “It is an extensive investigation. We will charge Breivik for each individual killing.” A formal indictment is not expected until next year, he added. Norway Anders Behring Breivik Global terrorism The far right Europe guardian.co.uk
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Writer warns of increasingly repressive political regime after he is stopped from entering Chinese mainland from Hong Kong One of China’s most acclaimed authors, who is now a British citizen, has warned that its “increasingly harsh” political climate has echoes of the Cultural Revolution after authorities barred him from entering the mainland. Ma Jian, author of Red Dust and Beijing Coma , was prevented from crossing the border from Hong Kong on Saturday. He had previously returned hundreds of times since leaving China in 1986. Officials have given him no reason for the ban or any indication of how long it will last. “The fact that I have been denied entry is an indication of how repressive the regime has become,” said Ma. “It is vitally important for me, both personally and for my writing, to be able to return to China freely, so being barred entry has caused me deep concern and distress. “I suspected that my trip to Beijing this summer might be problematic because of the increasingly harsh political climate in China. And sure enough, for the first time in my life, I have been denied entry.” The 58-year-old said this clampdown felt different to others he had witnessed over the last three decades, and suggested that a lack of international reaction was partially responsible. Citing the imprisonment of Nobel peace prize winner Liu Xiaobo and the two-month detention of Ai Weiwei , he warned: “There are echoes of the Cultural Revolution, when no sounds could be heard other than the deafening voice of the Communist party. This current clampdown began with the Beijing Olympics. The government discovered that they could suppress all forms of dissent, and still receive the approbation of the international community.” Ma is a permanent resident of Hong Kong, having moved there shortly before his first book was denounced by the Chinese authorities in 1987. He left for the UK when Hong Kong was handed back to China in 1997 and lives in London with his partner and translator Flora Drew and their children. Although his works are banned on the mainland he has been able to return regularly, but said his movements are closely monitored. Ma added: “When I travelled through the Chinese countryside while researching the book I’ve just finished, almost every friend I stayed with along my route was later questioned by the police.” He was also summoned to see state security officers while visiting Beijing in 2008. They said they were watching him closely but that as long as he stayed away from politically sensitive people such as Liu Xiaobo, and did not contact the media while on the mainland, he could return whenever he wished. Ma said he had been in Hong Kong for a book fair last week and wanted to buy books in Shenzhen before flying back to London. He now fears he will be unable to make a long planned trip to Beijing next week with his family. His 88-year-old mother is in frail health and has yet to meet his youngest children. “Many people have suggested that the clampdown is connected with an internal jostling for power ahead of the change in government leadership next year, but I think something more fundamental is going on, something relating to the nature of the Communist party itself and the totalitarian regime’s inability to adapt to modernity and to respond to natural yearnings for free expression,” he said. “My hope is that the Chinese government will come to realise that it is futile to repress free speech, and that contrary to what they believe a regime’s strength rests not its suppression of a plurality of opinions and ideas, but in its capacity and willingness to encourage them.” China Communism Tania Branigan guardian.co.uk
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José Luis Rodríguez Zapatero brings election forward from March as Spain struggles with high unemployment Spanish prime minister José Luis Rodríguez Zapatero has called an early election for 20 November as the country struggles to cope with soaring bond rates and high unemployment. Zapatero announced on Friday that he had decided to bring forward the elections from March in order to bring greater “political and economic stability” to a country that many see as a key to the future of the single currency eurozone. Zapatero imposed austerity and reforms last year as sovereign debt markets threatened to push his country into a situation similar to Portugal, Greece and Ireland – all of which have needed bailouts. He said key reforms would be completed before November. Unemployment is currently running at 21%. The elections will come six months after Zapatero’s socialist party was roundly defeated at regional and municipal elections in May . A poll by the state-owned Centre for Sociological Investigation this week gave the opposition rightwing People’s Party (PP) of Mariano Rajoy, which won the May vote, a seven-point lead over the socialists. That would be enough for the reformist PP to govern, though it would not win an absolute majority and may have to rely on parliamentary support from conservative nationalist parties in Catalonia or the Basque country. Zapatero, who has served two terms since 2004, is not standing at these elections. He is being replaced as the party’s candidate for prime minister by Alfredo Pérez Rubalcaba, a former deputy prime minister. Rubalcaba has suggested that he would like to take the party further to the left. Spain Europe José Luis Zapatero Giles Tremlett guardian.co.uk
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Helmand explosions come a day after 12 children were killed in neighbouring Uruzgan province Roadside mines have killed 23 civilians in southern Afghanistan, with a minibus and a tractor struck separately by explosives in Helmand province, according to officials. The minibus was travelling from Nahr-e-Saraj district to the provincial capital, Lashkar Gah, when it hit a mine and all 19 people inside were killed, said Kamaluddin Shirzai, deputy police chief for Helmand. When security forces arrived at the scene they were attacked by Taliban insurgents, said Hekmatullah Akmal, a police commander. He said it appeared at least 17 people had been killed but the damage from the blast made it difficult to determine how many people had been on the bus. In Garmsir district, south of Lashkar Gah, a tractor hit a roadside bomb, killing four civilians, officials said. It has been the deadliest six months for civilians in Afghanistan since the war began nearly a decade ago, according to the UN mission in the country. Civilian deaths between January and June were up 15% compared with the first half of 2010 owing to roadside and suicide bombings, increased ground fighting and more deaths from air strikes. The minibus and tractor deaths in Helmand came a day after at least 17 civilians were killed, including 12 children aged between four and 13, when suicide bombers targeted government buildings in neighbouring Uruzgan province. Two policemen were also killed. Helmand has been the site of some of the most vicious fighting of the war. Far more foreign troops have died there than in any other province. There are still several Helmand districts dominated by the Taliban. Afghan security forces took over security control this month for Lashkar Gah, the most contentious of the first seven areas for which foreign troops handed over responsibility. The gradual transition of security control to Afghan forces is due to be completed by the end of 2014. Afghanistan Global terrorism guardian.co.uk
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