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Thursday, 24 November 2011

550 kilos of cocaine hidden in bananas intercepted in Algeciras

 

National Police have found more than 550 kilos of cocaine hidden in boxes of ‘top quality bananas’ which were being introduced into Spain via the port in Algeciras. The drugs were hidden in the plastic linings inside the cardboard boxes containing the bananas, found in containers which had come from Ecuador. The drug runners benefitted by the quicker customs procedures for fruit. 11 people have been arrested in Madrid, including the alleged head of the gang. The police investigation started in the middle of last year as a group of Ecuadorian and Colombian men who were planning to send a large amount of cocaine from South America to Spain were uncovered. The members of this gang had top security measures to avoid detection by the Police. Thanks to the methods discovered in that organisation, with the drug hidden in the plastic, it has been possible to make these latest arrests.

Five injured in Canary Island Hotel gas explosion

 

Five people have been injured, four of them seriously in a gas explosion in a hotel in Gran Canaria. The propane gas escaped during transfer of the gas from a tanker to the Hotel Cordial on the Playa de Mogán and caused an explosion which led to a fire. Five people were affected by burns, four of them are reported to be in a very serious condition, according to the emergency services coordination centre. Four of the injured are workers from the hotel and the fifth is a foreign tourist. The driver of the gas tanker escaped unhurt as he was on the other side of the tanker when the explosion happened. 1,000 tourists were evacuated from the hotel after the blast. They will be allowed back after fire experts have inspected the building. The emergency services were alerted just after 9am on Wednesday, and they immediately sent a medical helicopter, five ambulances and a rapid intervention vehicle to the scene.

Wednesday, 23 November 2011

Mexico army seizes Joaquin "Shorty" Guzman drug lord's $15 million

 

Mexico's army seized nearly $15.4 million from the organization of the country's most powerful drug lord, Joaquin "Shorty" Guzman, officials said Tuesday, marking a rare financial blow to cartels. The seizure was revealed the same day U.S. border police revealed the third discovery in a week of drug-smuggling tunnel under the border with Mexico. In Mexico, the military said it found the cash was found in a vehicle on Nov. 18 in the northern border city of Tijuana and that it was linked to Guzman's operations. The haul marked the second-largest cash seizure by the military since President Felipe Calderon sent the country's armed forces out to battle drug cartels in 2006, the statement said. Some $26 million was captured in September 2008 in Culiacan, the capital of Guzman's home state of Sinaloa. Only on msnbc.com 'Grateful to be alive': Teen rescues woman from fire Mexicans cross US border to sell their plasma Chinese consumers say: Fix this fridge or sledgehammers coming Black Friday 'flash mobs,' sit-ins urged Look out kids, here comes the 'Wolf Daddy' Move to ban alleged insider trading faces pitfalls Will Gingrich's comments haunt him? About 45,000 people have died in the conflict in the last five years and the government has captured or killed dozens of top level drug smugglers.

Inquest told how householder stabbed intruder as he waved knife

 

householder, who stabbed to death a burglar trying to break into his cannabis factory, told an inquest he did not mean to harm anybody. Barry Day said he remembered grabbing a kitchen knife as the door to his house, in Beckside Road, Lidget Green, Bradford, was being kicked in, sticking the knife through a hole in the door and waving it. Shazad Habib-Ur Rehman, 32, suffered a stab wound to the chest and died in Bradford Royal Infirmary five days after the incident, in October last year. Mr Day, giving evidence yesterday at the inquest into Mr Rehman’s death, said he was not aware he had stabbed someone and did not intend to harm anyone. He said he was in fear. Detective Chief Inspector Simon Atkinson, of West Yorkshire Police’s Homicide and Major Enquiry Team, told the Bradford hearing consideration was given to prosecuting Mr Day, 62, for murder and a file was submitted to the Crown Prosecution Service, but the CPS decided there was insufficient evidence. He was prosecuted for cultivating cannabis, after 75 plants and a hydroponic cannabis factory were found upstairs at his house, and given a suspended prison sentence. The dead man’s three accomplices, who have all served prison sentences for attempted burglary in connection with the incident, told the inquest they had decided to burgle the house after hearing about the cannabis factory. Gareth Dobson, 23, of Windhill, said he kicked in the bottom panel of the door. He said Mr Rehman said to Mr Day: “We don’t want no trouble, we just want the weed. That’s when Mr Day lashed out and stabbed him with a knife.” The friends drove Mr Rehman to hospital. Mohammed Waqas Khan told the inquest: “We just wanted to take what there was and go. There was no intention to go in there to endanger anyone’s life.”

Gaddafi spymaster ‘must face trial over IRA crimes

 

VICTIMS of Libyan-sponsored IRA terrorism in the UK have called for Colonel Muammar Gaddafi’s former spy chief to be tried in the International Criminal Court for his part in republican atrocities. Libya’s interim government reported on Sunday that Abdullah al-Senoussi had been captured. The interim government is keen to try him in Libya but international concerns have been raised about the possibility that he may not receive a fair trial. Representatives from the International Criminal Court are visiting Libya in order to make representations. Former intelligence minister Senoussi was seen as the right-hand man of dictator Gaddafi, who was killed shortly after his capture by rebel forces last month. IRA victims campaigners Willie Frazer and London-based Jonathan Ganesh believe Senoussi was the key link between the Libyan regime and the Provisional IRA in Northern Ireland. Libya sent numerous shipments of arms and Semtex to the IRA throughout the Troubles, several of which were intercepted. In a joint statement, they said: “Colonel Abdullah al-Senoussi has been involved in the murder of countless people within Libya and has also been involved in the murder of Irish and UK citizens due to his unprecedented work with the IRA and other international terrorist organisations. “We are now drafting a detailed petition to the International Criminal Court to ensure that Colonel Senoussi will be held accountable for all his crimes against humanity. “Senoussi must be held accountable due to his involvement in the murder of all the innocent people who lost their lives due to the Semtex he supplied to the IRA.” Senoussi was one of the last senior figures from the Gaddafi regime still on the run. Gaddafi’s son, Saif al-Islam, was seized on Saturday and both he and Senoussi are wanted for alleged war crimes by the International Criminal Court (ICC). Senoussi, a brother-in-law of Col Gaddafi, is said to have been arrested at his sister’s home in the southern town of Sabha on Sunday. He has been accused of human rights abuses, including his implication in the 1996 massacre of more than 1,000 inmates at the Abu Salim prison in Tripoli. Mr Frazer and Mr Ganesh added: “We are now calling on the international community to ensure that he must stand trial for his international crimes against humanity within the ICC. “Due to his involvement with IRA terrorism he became a defendant within our civil legal action within the USA judiciary during April 2006 as we desperately tried to bring him to justice. “This is an evil man who we will not allow to escape international justice. He must be immediately handed to the ICC for all his international crimes against humanity.”

Tuesday, 22 November 2011

Don't just book it, Thomas Cook it. So runs the slogan. Would you

 

Don't just book it, Thomas Cook it. So runs the slogan. Would you? Here's interim (that's reassuring) chief executive Sam Weihagen doing his safe-as-houses routine: "It's business as usual. We are trading within all our covenants. We have all the protection in place like any other travel company, and customers should not worry at all." Well, not quite like any other travel company. Thomas Cook of course holds an Air Travel Organisers' Licence from the Civil Aviation Authority which means customers should get their money back in the event of calamity. But the simple fear of being stranded a week after passengers of Austria's Comtel Air had to bribe pilots with £20,000 just to return to Birmingham is bound to unsettle would-be customers. There's a circle at work here and it is vicious. Given the choice between a similarly priced holiday with Thomas Cook or, say, Thomson, why would you risk the former? To counteract this, Thomas Cook might have to slash prices. That will eat into margins, cut profits and put banking covenants at risk. It might very quickly find it needs to borrow even more money. The company insists: "This is a robust business that has a strong future". We'll see.

Police were in dark over foreign axe killer living in UK

 

COPS did not know an East European axe murderer was living in the UK until he caused a killer car crash, a court heard yesterday. Intars Pless, 34, hacked through a friend's throat in his native Latvia, then moved to Britain after he got out of jail. But Lincoln Crown Court heard police can only check a foreign national's record if they break the law here. So Pless's horrific crime came to light only after he drove into moped rider Valentina Planciunene, 37, while over twice the limit. Stuart Lody, prosecuting, told the court: "On the night of Valentine's Day he decided it would be a perfectly good idea to drink a very large quantity of whisky. Surprised "He and a friend spent a considerable period of time drinking whisky and driving around. "During the driving he was possibly drinking whisky as well. An empty whisky bottle was found in the boot of the car. "At the time of the collision he was heavily under the influence of alcohol. His ability to drive would have been severely impaired." Pless was convicted of causing death by dangerous driving after the jury heard he left her dead in the road in Wyberton Fen, Lincs. He was told he faces a long jail term. The judge also called for his deportation.

Thomas Cook is running low on cash and has begun talks with its banks

Thomas Cook
Thomas Cook planes parked at Munich airport last year. Photograph: Alexander Hassenstein/Getty Images

Thomas Cook is running low on cash and has begun talks with its banks, in an effort to increase its borrowings to tide it over the slow Christmas season.

Shares in the tour operator fell by more than three quarters on Tuesday morning after it admitted that trading has "deteriorated" in recent months. It is now seeking to borrow more in the short term, and has postponed the publication of its financial results until the talks are concluded.

Shares in the company, which abruptly lost its chief executive three months ago, tumbled by more than 75% to 9.3p at one stage.

Tour operators tend to run low on cash in the slower winter months, but even so, the news stunned the City. Only last month, Thomas Cook said it had agreed a further £100m in short-term funding from its banks explicitly for the winter lull.

A spokeswoman said that discussions with banks were merely a "prudent" and "pro-active" move. Thomas Cook still has cash in the bank, she said, but wants to be prepared for any unexpected shocks over Christmas. All customer orders are protected by the ATOL protection scheme and equivalent programmes, she added. "Thomas Cook still has cash on the balance sheet, but because conditions have deteriorated further [since October], particularly around trading, some of that extra funding has been used up. Thomas Cook feels it needs more headroom to be prudent," she said.

Interim CEO Sam Weihagen added: "It's business as usual. We are trading within all out business, and financial, covenants, we have all the protection in place like any other travel company, and customers should not worry at all."

The company is seeking roughly £100m more in its latest talks. It made the decision to renew talks with banks on financing after realising the scale of the recent downturn in an internal trading update meeting yesterday.

Monday, 21 November 2011

Chicago cops accused of working for Latin Kings held without bond

 

Two Chicago police officers accused of committing armed robberies at the will of alleged Latin King members were ordered held without bond Monday. Alex Guerrero, 41, and Antonio C. Martinez Jr., 40, were the ones in handcuffs Monday afternoon, appearing before a federal judge in orange Porter County jumpsuits. The duo were named in a 46-page indictment unsealed Friday that alleges a racketeering conspiracy among fifteen Latin King gang members or associates. Guerrero's attorney, Kevin Milner, fought for his client to be on home detention. He said his clients' parents offered to put up their $175,000 Chicago home for their son's pretrial release. "For Mr. Guerrero to violate his bond, his parents would be on the street homeless," Milner said. "I've known Mr. Guerrero for 15 years. He would rather slit his wrists than do that to his parents." Milner claimed there was no evidence against Guerrero, and that the father of six had no criminal record. According to the indictment, Guerrero and Martinez Jr., committed armed robberies of drug dealers in Illinois and Indiana while in uniform and under the guise of performing legitimate police operations. They allegedly turned over the drugs and money to the Latin Kings in exchange for about $10,000 in kickbacks. Assistant U.S. Attorney David Nozick argued that Guerrero and Martinez were dangers to the community after using Chicago police vehicles, service weapons and uniforms to rob people at gunpoint. Nozick also said Guerrero was a flight risk, as his wife has family in Mexico and he faces up to life in prison.  Magistrate Judge Andrew Rodovich ordered Guerrero held without bond. Milner said they were disappointed with the decision, and that his client would be sitting in jail for at least a year pending trial for a crime he did not commit.  "I don't know who will give him that year back," Milner said. Martinez Jr., did not contest being held pending trial.

Police on the Costa del Sol were yesterday hunting a gang who stole £1million of cocaine from a warehouse where authorities held seized drugs before destroying them.

Police on the Costa del Sol were yesterday hunting a gang who stole £1million of cocaine from a warehouse where authorities held seized drugs before destroying them.

The thieves used laser equipment to cut through the metal doors of the store in the docks at Malaga, the capital of the southern Spanish holiday coast. 

They struck when there were no security guards on duty and  it had been left to the paramilitary Civil Guard to watch the building.

The drugs were being stored in a warehouse in Malaga when the thieves struck

The drugs were being stored in a warehouse in Malaga when the thieves struck

 

Drugs seized by police and customs are stored there for tests to be carried-out before the courts issue orders to destroy them.


Prison for man who left €5,000 bill at Marbella hotel



 

A MAN has been sentenced to a year in prison for failing to pay a bill of more than €5,438 at a luxury Marbella hotel. He had been staying at the Marbella Club on the Golden Mile for a week in September 2003 and during the stay, used different services which amounted to €5,438, which he left without paying. The hotel made a formal complaint but the trial wasn’t held until this year mainly due to difficulties locating the man. He admitted that he has stayed at the hotel but had refused to pay the bill because he thought it excessive for the services he had received. His lawyer maintained that he attempted to reach an agreement with the hotel, which the manager claims that he had shown no intention of paying, and that until the day of the trial, when he handed in €3,349, he hadn’t received any money from him. The judge considered that the man had intended to commit fraud and he was sentenced to two years in prison and the payment of the bill plus interests. He appealed, and Malaga Provincial Court, although maintaining that he intended to commit fraud, reduced the sentence by one year because he had attempted to repair some of the damage by bringing a large part of the money he owed to the trial to give to the hotel.

Gang targets wealthy diners

 

Diners at some of the city's most popular restaurants had their credit card details stolen by waiters working for gangs, who targeted customers with American Express black cards, then spent millions of dollars on expensive clothes and vintage wine, it is alleged. The cards of wealthy customers at Smith & Wollensky, the Capital Grille and Wolfgang's Steakhouse restaurants were allegedly "skimmed" and used to buy Rolex watches, Jimmy Choo shoes and Chanel handbags. Almost 30 people have been charged with crimes, including racketeering, conspiracy and grand larceny, after the alleged fraud ring was broken by police in Manhattan. Seven waiters at the restaurants are alleged by prosecutors to have been recruited by Luis Damian "D.J." Jacas, the 41-year-old alleged ringleader, and equipped with card-copying devices. They were instructed to focus on customers with premium credit cards, including the American Express black card, so that expensive purchases would not trigger alerts to customers. "The thieves were very selective, waiting until they were handed cards with extremely high or unlimited credit," said Manhattan district attorney Cyrus Vance.

Alice Walton, heiress to the Walmart supermarket fortune and the the 10th richest woman in the United States, opened a spectacular fine art museum in her home town

Moshe Safdie
Architect Moshe Safdie looks out of a window next to a large red untitled magnifying disk sculpture by artist Fred Eversley at Crystal Bridges Museum of American Art in Bentonville, Arkansas. Photograph: Danny Johnston/AP

When Alice Walton, heiress to the Walmart supermarket fortune and the the 10th richest woman in the United States, opened a spectacular fine art museum in her home town, she might have expected plaudits and gratitude. It hasn't quite worked out that way.

The long-awaited opening of the Crystal Bridges Museum for American Art in Walton's home town of Bentonville, Arkansas, has provoked mixed reactions. Some have celebrated the unveiling of a significant new private art institution, but many have criticised the decision to spend $1.4bn of company and family foundation money as the retail colossus cuts back its workers' benefits.

Protesters at the museum have informally joined forces with the Occupy Wall Street camps across the US and point to growing ties between the Occupy movement and established trade unions.

The museum, which opened last weekend and features a survey of American art from Benjamin West to Georgia O'Keefe, from Norman Rockwell to Andy Warhol, and from Joan Mitchell to Walton Ford, has also come under criticism from within the art establishment for both inflating values and buying masterpieces from impoverished art institutions without giving local institutions a chance to match Walton's offer.

While historians point out that this is little different from 19th-century robber barons such as Henry Clay Frick and Andrew Carnegie amassing vast collections of European art and bringing it to America, the prospect of hundreds of masterpieces in rural Bentonville, two hours' drive from Tulsa, is still controversial.

Walton, at 62 the youngest of Walmart founder Sam Walton's four children, started buying specifically for the project in 2005. The Moshe Safdie-designed institution, which sits in 120 acres of dogwood trees and trails minutes from downtown Bentonville, already has 440 works on display and 800 in storage.

"We set market records for very few pieces that we purchased," says curator, David Houston. "But there is latent criticism from an east coast elite that bringing a famous painting like Thomas Eakins's [$68m] Gross Clinic to Arkansas is itself an act of cultural vandalism. We're bringing art to the public, but it's a different kind of public, and there are social and political connotations to that."

In the week since Crystal Bridges opened, it has already seen 5,000 registered visitors. "Sheer curiosity and hunger for an institution like this bears out Alice Walton's vision," Houston says.

Ben Waxman, spokesman for the union-affiliated Making Change@Walmart, said: "Opening a huge, opulent museum in the middle of nowhere while the company is cutting health insurance for its employees is troubling. It sends the message Wal-Mart doesn't care about them."

The issues of wealth distribution that have brought art into conflict with the labour movement at Crystal Bridges have also been on display at Sotheby's during the billion-dollar modern, impressionist and contemporary sales earlier this month in New York.

Since August, when Sotheby's dismissed 43 unionised art handlers, its salesrooms have been besieged by Teamsters union members, bearing an inflatable rat and a fat cat banker with a cigar in one hand and throttled worker in the other. "The company is having its most profitable year in 267 years and they locked us out in the middle of our contract," said Teamsters member Phil Cortero. "Sotheby's represents the richest people in the world. When you lose your shirt down on Wall Street you come and hock your stuff here."

Increasingly, the Teamsters are joined by Occupy Museum activists, chanting "We are the 99%!" They protest that the multimillion dollar art handled by auction houses is used to maintain and transfer the wealth of the 1%.

Outside Christie's, which is not involved in the dispute, Los Angeles property developer Eli Broad, one of America's wealthiest men, confirmed as much to the New York Times. "People would rather have art than gold or paper," he said.

OWS Labor Outreach member Mike Friedman said that Occupy had no problem with the art itself. "But at a time when we're seeing cutbacks in health and education spending, we're seeing the transfer of wealth by way of tax cuts and subsidies to an elite who use excesses of that transfer to buy these magnificent works of art."

With the end of the Zuccotti Park sit-in, Occupy says it plans to initiate focused protests against cultural institutions associated with big Wall Street donors. It has singled out Lincoln Center, home to the New York Philharmonic, the Metropolitan Opera and New York fashion week, which is financially supported by Tea Party funder David Koch.

Back at Crystal Bridges, Houston argues that it will take years to see the full effect of how the Walton family has used its wealth. The family foundation is active in a whole variety of charitable activities, many of them educational, he says. "Their intent is not to create a shrine to an individual or even a family. Their goal is to create a tremendous cultural resource in this part of the world."

Sunday, 20 November 2011

Bee Gee Robin Gibb Fighting Liver Cancer

 

Bee Gee Robin Gibb, who has been increasingly frail in recent months, has been diagnosed as suffering from liver cancer. The 61-year-old learned he had the disease several months ago, but the news only emerged this week when he was rushed to hospital. He is reported to have spent five hours in hospital in Oxford on Tuesday before being allowed home, and his brother and bandmate Barry is reported to have flown to see him - along with his 91-year-old mother Barbara. A source told The Mirror: "Robin is not good and there is a lot of concern for him. You can use your wealth to call in the best experts but sometimes no amount of fame, prestige and money can change things when it comes to cancer. "But Robin is a strong character, he is a fighter and has been encouraged by all the online messages from his fans. Dwina is doing everything ­possible and hasn’t left his side. "There will be difficult times ahead but Robin will never give up and his loving family will make sure he has everything he needs. There is ­frustration because Robin has always looked after himself. He doesn’t drink, eats well and exercises daily."

Former Royal Marine Carl Davies was raped before being stabbed and his body hurled into a roadside ravine

Brutal: Ex-Marine Carl Davies was raped before being killed and dumped in a ravine, a new post mortem has revealed

Brutal: Ex-Marine Carl Davies was raped before being killed and dumped in a ravine, a new post mortem has revealed

Former Royal Marine Carl Davies was raped before being stabbed and his body hurled into a roadside ravine close to a military barracks on the paradise island of Reunion, a new post-mortem has confirmed.

A second examination of the body of the Kent man revealed he had been sexually assaulted prior to being beaten about the head and knifed in the stomach. 

The first bungled autopsy put his death down to an accident. 

As revealed by MailOnline yesterday, his family believe his murder was covered up to protect tourism there, which accounts for 70per cent of GDP.

A team of British detectives is due to arrive on the island to assist investigations, sources indicated at the weekend. 

On the night of his death on November 9, Mr Davies had been out drinking in St Denis, the capital of Reunion, with two sailors who were serving on board the Cyprus-registered MV Atlantic Trader.

Mr Davies, 33, was employed on the container ship as a guard against Somali pirates who regularly prey on ships in the Indian ocean.


shiny Audis and BMWs that still line the narrow streets of Benalup are a reminder that this Andalucían country town once boasted the greatest number of luxury cars per head in the south-western province of Cádiz.

Benalup Street Andalucia Spain
 Photograph: Tracey Fahy /Alamy

The shiny Audis and BMWs that still line the narrow streets of Benalup are a reminder that this Andalucían country town once boasted the greatest number of luxury cars per head in the south-western province of Cádiz.

These days this charming place, set bull-rearing countryside inland from Gibraltar, holds a different kind of record: not only the worst unemployment rate in the country, but the worst in Europe.

"I don't know whether they can fix this," said 19-year-old Juan Carlos Gutiérrez, one of hundreds of young people who dropped out of school and now drift between part-time work, training courses and the dole queue. "I've picked asparagus and worked in a packing factory, but the jobs never last. The future is screwed."

"Everyone our age is out of work," agreed Nora Pérez, 22, as she waited for the hearse bringing her grandmother to her funeral in the picturesque square of Our Lady of Perpetual Help. "My father went to Germany when he was young. Our generation may emigrate as well. Some of my friends have already left."

A grey-bearded, bespectacled man grins from a campaign poster overlooking the tiny ornamental gardens and bandstand on San Juan Street and calls on the people of Benalup to "sign up to change". He is Mariano Rajoy, the conservative People's party (PP) leader set to become Spain's prime minister at the general election on Sunday.

Rajoy will inherit a country in crisis. Growth is zero and unemployment has hit 23%. In Cádiz province, one in three is jobless. In Benalup 1,500 adults are without work. In a country where 46% of the under-25s cannot find employment, Benalup's unqualified youngsters are getting desperate.

"Many got into debt when times were good, buying houses and cars and starting families," says Ricardo Jiménez, who runs the local branch of the Catholic charity Caritas. "Families are very close and help one another out, but we already help 80 families and more come every month. Some are asking for help to feed their babies," he said. That means almost 5% of the town needs church handouts.

Others are handed money by the town hall or given whatever jobs local politicians can invent. "If we have to dig a ditch we do it by hand, rather than with a digger, because that way we employ more people," said councillor Manuel Moguel.

When Luis Moreno, 23, left school five years ago there was no need to worry about finding a job. All you had to do was walk on to a building site. "It was very simple," he says.

Now he receives €526 (£450) a month to attend a training course designed to turn a dozen locals into graphic designers, though design jobs are not plentiful in Benalup. "We have to learn new skills," he says. He is one of the lucky ones. Courses like this are heavily oversubscribed.

As markets demand ever higher interest payments for lending Spain money, and the European Union instructs its politicians to slash its deficit, public money is drying up. Yields on Spanish debt have now overtaken Italy's and soared to the same levels at which Greece and Portugal needed to be bailed out. And if Spain – a much larger economy – fails, then it may bring down the euro.

Spain's biggest problem remains the money owed to banks for property or land bought during a decade-long boom fuelled by cheap credit. The rows of unsold new homes in Benalup are evidence of Spain's housing bubble, which burst in 2008, leaving 700,000 unsold new houses on the market.

By 2004, more than 80% of Benalup's labour force worked in construction, building homes or holiday apartments along the nearby Mediterranean coast.

"Kids left school at 16 because they could earn €3,000 a month working a three-and-a-half-day week," says Moguel. "I had university-trained engineers working in my company who were earning less than that."

As money poured into people's pockets, the number of banks in town doubled. La Caixa, a newly arrived savings bank, started a local lending war – its manager winning awards. "Kids were buying houses and cars with the loans. And those who already had a house bought another one," says Moguel.

Now the town is plastered with "For Sale" signs from Servihabitat, the real estate branch of La Caixa, which is repossessing properties – though owners must still pay off their full debt after homes have been taken away. "That's unfair. You can't have a bank saying your home is worth €180,000, lending you the money and then repossessing it at half that price," says Moguel, a Socialist. He is uncomfortably aware that Spain's torrid affair with speculative capitalism happened largely on the watch of the Socialist government led by outgoing prime minister José Luis Rodríguez Zapatero.

Even in Benalup, where the Socialists once won 90% of the vote and which still remembers the bloody suppression of an uprising by local anarchists in the 1930s, the vote is now sliding to the right. "It used to be tough in this town to be from the People's party, but we won 43% of the vote at municipal elections in May," says Vicente Peña, a 40-year-old veterinarian who heads the party's local branch.

Peña delivers the same diagnosis of Benalup's ills as his Socialist opponents. "Too many people dropped out of school to become bricklayers. They can't even write a sentence properly."

Vicente Ruiz, owner of the El Buyí bar, will vote for Rajoy. "When Caritas is the biggest employer in town, things are really bad," he says. "It is shameful to have to ask for charity. What we need is a Mrs Thatcher."

Public money is being spent on silly projects, clients in his bar agree. "I've had 60-year-old women coming to bricklaying courses," says one, Nicolás. "It is ridiculous, but they each get their own overalls and hammer."

Peña says that, among other things, people will have to go back to the land. But even there things are going badly. Local horses, bred at stud farms set up as a trophy hobby by nouveau riche local builders, are now being sacrificed for meat and exported to dinner tables in northern Spain.

Pura Raza Española ponies are going for €150. Even fighting bulls are on the decline. "Town halls subsidised many bullfights," says rancher Salvador Gaviria. "But now they have no money, so the market is sinking." The number of bullfights across Spain has fallen by a third as a result.

Benalup is too far inland from the beach to attract tourists. A golf resort set up by a Belgian company, Fairplay, is said to be struggling. The Hotel Utopia, a boutique-style establishment that opened recently, was almost empty this week.

Spaniards hope Rajoy, who has been deliberately ambiguous about his austerity programme and liberal reform plans, can fix their problems. "If changing to Rajoy is going to solve everything, then why haven't the markets – which know he is going to win — shown they trust him?" asks Moguel.

Rajoy will come under immediate pressure to reveal how he plans to square a budget that needs some €41bn of savings next year. Those must come on top of austerity measures already imposed by Zapatero, who cut civil service pay and froze pensions.

Alberto Ruíz Gallardón, PP mayor of Madrid and a probable minister, has called on the socialists to hand over power quickly. "It could be dangerous to prolong the caretaker period," he says.

But parliament does not meet again until 13 December and it may take another fortnight to appoint Rajoy formally. Even if he takes over immediately, jobs are unlikely to reappear in Benalup.

Fortunately it retains the Cádiz tradition of laughing at adversity. Benalup's carnival musical groups are already practising the typicalchirigota songs that parody the powerful. Rajoy, Angela Merkel and the European Central Bank can all expect to feature in them by the time carnival comes around in February.

Watchdog warns over shooting probe

 

An investigation into the death of Mark Duggan, whose fatal shooting by police triggered riots across the country, has still to establish the sequence of events concerning a handgun found at the scene, the police watchdog said. The Independent Police Complaints Commission (IPCC) said that was a key element in its probe. But it said that the sequence of events was not yet known, despite a report in Saturday's Guardian that the investigation had found no forensic evidence that he was carrying a non-police-issue gun. The newspaper, in a story headlined "Revealed: man whose shooting triggered riots was not armed", said a gun collected by Mr Duggan earlier in the day was recovered 10ft-14ft (3m-4.25m) away, on the other side of a low fence from his body, and that he was killed outside the vehicle he was travelling in, after a police marksman fired twice. On the day Mr Duggan was shot, there is overwhelming evidence that he had obtained a firearm, but the investigation is considering whether he had the weapon in his possession when he was shot, the Guardian said. The IPCC said in a statement on Saturday night that the investigation was examining a range of issues. "This is a complex investigation that involves gathering information including witness statements, pathology, forensics and ballistics analysis and we have stated to the coroner that it will be completed within four to six months," the statement said. "One of the key elements we will seek to establish is the sequence of events concerning the non-police issue firearm found at the scene. That has not been established yet, contrary to what has been written in the Guardian article today. "We would urge people not to rush to judgment until our investigation is complete and they have the opportunity to see and hear the full evidence themselves." The statement said the IPCC believes the headline on the Guardian's article was "misleading, speculative and wholly irresponsible".

British bonds win 'safe haven' tag in eurozone debt storm

 

British government bonds are attracting strong support, in sharp contrast to their troubled eurozone peers as investors seek a safehaven from a debt crisis now spreading to Italy, Spain and even France. British government bonds, or gilts as they are known, are in huge demand largely because the Bank of England is buying them up with newly-created money that it hopes can in turn be used to stimulate an anaemic economic recovery, analysts say. But investors are also reassured by the British coalition government's determined efforts to slash state debt and avoid the severe troubles that have snared the crisis-hit eurozone trio of Greece, Ireland and Portugal.

TWO MILLION EUROS CLAIMED AFTER CANCELLED STONES CONCERT

The council are seeking to claim a total of 2,251,000€

The PP mayor of El Ejido in Almería, Francisco Góngora, has criticized the "negligence" of the former government team and announced that the city council are to begin legal proceedings against the promotions company who were to stage a concert by the Rolling Stones in 2006.

Following the findings of "many irregularities" in the case, the council are now seeking to claim a total of 2,251,000€, which they feel they are owed, in view of the cancellation.

The announcement was made at a press conference in which Francisco Góngora claimed that there was a “contractual obligation” by the promoter to ensure that the concert went ahead and that even if the company were insolvent, then they would seek recompense from the individuals responsible for the incomplete commitment made to the previous government team.

Information indicates that there was a contractual clause that stipulated that insurance must be provided that should the concert be cancelled, then the promoter would be able to repay any money owed, in full, through an insurance claim. It is believed that this insurance was never provided.

Although some money is said to have been returned, it was only about half of the 4.176 million euro that the city had paid for the organisation of the concert.

There also appears to be a lack of information as to where the money actually went and who might be accountable for the cash given to the company by the council. There have also been allegations made that this whole case could be part of a much wider campaign of both political and corporate corruption.

Now, reviewing the clauses of the original contract, it has been found that the rights to claim the money back would expire after 15 years.

Góngora, also stated that there were economic losses of 2.6 million euro recorded after the second concert by the Rolling Stones in El Ejido held in 2007, which were due to "mismanagement" whereas the projected ticket sales were calculated at 60,000 attendees, but only 20,000 tickets were actually sold.

Referring to the award of the second contract by the previous council, Góngora  stated that "despite the failed previous contract they rehired the same company for four million euro of which they did not deduct anything owed," continuing that he considered the failings to be down to the complacency of the previous PSOE government.

The Ministry of Interior for Andalusia had already imposed a 60,150 euro fine on the organisers for breaching the rules on show cancellations in failing to return ticket money within the maximum four days which is set out by the governing body. In actual fact, it took several weeks for the organisers to return the money raised on the 50,500 tickets sold for the cancelled concert.

Hunted down: Saif al-Islam Gaddafi looks dejected and withdrawn following his capture

Looking haggard and fearful, Saif Al Islam Gaddafi cowers in terror after his capture by Libyan fighters yesterday.

His old swagger gone, the British-educated son of Colonel Gaddafi was clearly terrified that he might encounter the same fate as his father, who was killed a month ago.

Saif could yet face the death penalty for his crimes, but Libyan officials promised he would, at least, receive a fair trial. That trial could prove highly embarrassing for influential British figures – including Prince Andrew and Tony Blair – if Saif reveals details of the close links he enjoyed with them.


Hunted down: Saif al-Islam Gaddafi looks dejected and withdrawn following his capture

 

The 39-year-old former playboy and womaniser was captured trying to flee across the border into Niger. A mob of angry protesters tried to storm the plane but were beaten back by soldiers under orders to keep their prisoner alive so he could face justice.

Only three weeks ago Saif had vowed to avenge his father’s death, declaring defiantly: ‘I am alive and free and willing to fight to the end.’

 

 

But last night he was facing the likelihood of trial in his own country –  or extradition to the International Criminal Court in The Hague on charges of crimes against humanity. 

Thousands of Libyans celebrated in the streets after hearing that the fugitive, who remained loyal to his father’s murderous regime to the end, had been captured without a struggle.

The dictator’s heir was intercepted near the oil town of Obari as he tried to reach the frontier in a 4x4 vehicle, accompanied by three bodyguards. 

Desert fighters acting on a tip-off fired into the air and ground to bring the car to a halt.
As they checked the identity of those inside, Saif told them his name was Abdelsalam – which means ‘servant of peace’ – but he was immediately recognised and taken away by the fighters.



Saturday, 19 November 2011

Four police officers were stabbed as they dealt with a disturbance today in Kingsbury, north London.


The incident is believed to have happened at the Kingsbury Halal Butchers just 100 yards from Kingsbury Tube station and in a busy shopping street.

A Scotland Yard spokesman said: ‘Police were called at approximately 8.40am to a disturbance in Kingsbury Road, Kingsbury.

Crime scene: The multiple stabbing is believed to have taken place at Kingsbury Halal Butchers

Crime scene: The multiple stabbing is believed to have taken place at Kingsbury Halal Butchers

Cordoned off: Metropolitan Police officers at the scene of the attack, with a paramedic's kit visible in the foreground

Cordoned off: Metropolitan Police officers at the scene of the attack, with a paramedic's kit visible in the foreground

 

‘Officers attended and attempted to speak with a man, who subsequently attacked them.

 

 

 

‘Four officers were injured during the incident and have been taken to hospital.

‘A man has been arrested on suspicion of attempted murder and remains in custody at a north London police station.’

A Metropolitan Police spokesman confirmed to MailOnline that all four officers are in a stable condition.

One sustained a stab wound to the stomach, another sustained head injuries and a stab wound to the arm, a third was wounded in the leg while a fourth suffered a broken hand.

Further down from Kingsbury Halal Butchers on the other side of the roundabout Ketan Vyas, the manager of the VB and Sons cash-and-carry store, described how a man aged 30 to 40 had burst into his shop chased by police.

Shock: The attack happened in broad daylight on a busy shopping street

Shock: The attack happened in broad daylight on a busy shopping street

Stabbing: The area has been sealed off by police, with one man arrested on suspicion of attempted murder

Stabbing: The area has been sealed off by police, with one man arrested on suspicion of attempted murder

He went on: 'He picked up some cans of beans and threw them at the police and then carried on running out of the store and down the road.

'There were a lot of police after him. He was only in here for a few seconds. Fortunately no staff were harmed.'

Shopkeeper Girish Modha said: 'A man was shouting at police in a small alleyway next to a hairdresser's shop which neighbours mine.

'He grabbed a piece of fluorescent tubing and brandished it at police. He then ran down Kingsbury Road, going into a cash-and-carry shop. At one point I think he threw a brick and smashed a police car window.

'He then ran round the roundabout and carried on towards the Tube station. He went into a butcher's, got a knife and that's when the stabbing took place.'

A worker at a Carphone Warehouse store opposite the butcher's said: 'After the incident I saw about eight police officers on top of a man. Ambulances arrived to take away the injured policemen and the man was also taken away.'

Sky's Martin Brunt tweeted that one of the officers was stabbed in the stomach and that the attacker went 'berserk'. 

Eyewitnesses told Bottr that police were called after a man began to attack people 'randomly' .

Brunt added that the suspect had been shouting in the street in 'quite a disturbed way', which led to 999 calls being made.

The Kingsbury Roundabout in north London where the incident happened

The Kingsbury Roundabout in north London where the incident happened

Injured: Four police officers have been taken to hospital to be treated for knife wounds, according to Scotland Yard, after being attacked at Kingsbury roundabout

Injured: Four police officers have been taken to hospital to be treated for knife wounds, according to Scotland Yard, after being attacked at Kingsbury roundabout

Olympia Logofagul, 24, who works at the Kings Coffee shop on Kingsbury Road, said: 'I was working and I saw some police officers standing outside.

'There were a lot of officers, more than five but no more than 10.'

A spokeswoman for London Ambulance Service said they took five patients to hospital, all conscious and breathing.

She said: 'We were called at 8.50 this morning to an incident in Kingsbury Road.

'We sent two single responders in cars, four ambulance crews and a duty officer.

'We treated five patients, they were all conscious and breathing, and they were taken to hospital.'

Kingsbury Road - a busy thoroughfare in north-west London and normally jammed with shoppers on a Saturday morning - was deserted either side of the roundabout, with police having blocked off the road in both directions.

 

The hairdressers, Mr Modha's sweet shop and a chemist were cordoned off.

There are 30 police cars and 15 ambulances attended




Saif al-Islam Gaddafi after his capture, his fingers wrapped in bandages and his legs covered with a blanket

Saif al-Islam gaddafi captured
. Photograph: Reuters Tv/Reuters

Saif al-Islam Gaddafi, the fugitive son of Libya's deceased former dictator, has been arrested in southern Libya, according to officials from the country's new government.

Libyan state TV reported that Saif has arrived in captivity and unhurt at an army base in the town of Zintan, 90 miles south-west of Tripoli.

Muammar Gaddafi's second and highest-profile son was captured along with several bodyguards by fighters near the town of Obari in Libya's southern desert, said the interim justice minister and other officials.

Saif was said to be in good health, according to the justice minister Mohammed al-Alagi.

"We have arrested Saif al-Islam Gaddafi in [the] Obari area," the minister told Reuters.

Saif was captured near the southern city of Sabha with two aides trying to smuggle him out to neighbouring Niger, militia commander Bashir al-Tayeleb said.

Zintan, a base for forces in the Nafusa Mountains which played a key part in the storming of Tripoli in the summer, is reported to have crowds dancing in the streets and waving the Libyan flag.

There are reports that an angry mob tried to storm the plane on which Saif was taken to the western mountain town of Zintan, the home of one of the largest revolutionary brigades in Libya.

Gunfire is echoing across the capital, Tripoli, where large crowds have gathered in Martyrs' Square firing volleys of automatic fire in the air. "A great day, a great day," said Abdullah, a taxi driver, stuck in one of the traffic jams that built up around the square.

A Reuters reporter said a man who appeared to be Saif, but who refused to confirm his identity, was on a plane flown by militiamen to the town.

The man wore traditional robes with a scarf pulled over his face, but his features, visible despite a heavy black beard, as well as his rimless spectacles, conformed to pictures of the 39-year-old younger Gaddafi.

The man's thumb, index finger and another finger were heavily bandaged.

Libyan TV also showed him He is sitting by a bed and holding up three bandaged fingers as a guard looks on.

Friday, 18 November 2011

An anti-British backlash gathered pace in Germany yesterday as David Cameron and Angela Merkel struggled to disguise the gulf between them on how to tackle the eurozone crisis.

 

An anti-British backlash gathered pace in Germany yesterday as David Cameron and Angela Merkel struggled to disguise the gulf between them on how to tackle the eurozone crisis. The Prime Minister returned from talks in Berlin with the German leader having made little progress in agreeing emergency action to stop the financial contagion spreading. Tensions were inflamed after a close ally of Ms Merkel predicted Britain would eventually adopt the euro. The German media joined the clamour, with the mass-circulation newspaper Bild questioning whether it might be better for Britain to leave the European Union altogether. Behind the leaders' smiles at a joint press conference yesterday, they acknowledged fundamental differences remained on three key issues: * New eurozone rules. Ms Merkel called for "limited" changes to European treaties to impose fiscal discipline on the single currency but stressed negotiations should only be for eurozone members. Mr Cameron wants Britain involved in the talks because of the potential impact of the decisions on the UK; * Whether the European Central Bank should intervene to support the eurozone. Ms Merkel – backed by the German public – is fiercely resisting the move, which she fears would fuel inflation. But Mr Cameron insisted that all the eurozone's institutions had to "do what is necessary to defend it"; * Taxing financial transactions within the EU. Ms Merkel supports the step but Mr Cameron fears it would disproportionately hit the City and said it would work only if applied globally. The Prime Minister said: "It is obvious we don't agree on every aspect of European policy, but I am clear we can address and accommodate and deal with those differences." He also stressed the two leaders were "very good friends" and "absolutely" in agreement on the importance of completing the single market, budget discipline and stopping EU spending from rising by more than inflation. But shortly before Ms Merkel also paid tribute to the "strong bonds of friendship" between the countries, her veteran Finance Minister used less diplomatic language in which he seemed to predict the end of sterling. Wolfgang Schäuble told the news agency DPA it was Britain's right to remain outside the eurozone "for the time being". But he said it was a matter of time before non-eurozone states became convinced of the euro's advantages. "One day the whole of Europe will have a single currency and perhaps it will happen more quickly than many people on the British island think," he said. Meanwhile, in an article headlined 'The Sick Empire', Der Spiegel magazine described Britain's plans to eradicate its budget deficit by 2015 as "utopian". It added: "The situation on the island is more dramatic than in parts of the continent. It's bad news nearly every day. "But the British government gets away with it by proclaiming carry-on-as-usual policies and by blaming its economic stagnation on the eurozone." The war of words between Berlin and London erupted on Tuesday after Volker Kauder, Ms Merkel's parliamentary party leader, lambasted Britain for being too self-centred on Europe. "Just looking for their own advantage and not being prepared to contribute – that cannot be the message we accept from the British," he told a congress of his ruling conservatives. The former Prime Minister, Sir John Major, weighed in behind Mr Cameron last night as he condemned the financial transaction tax as "a heat-seeking missile...aimed at the City of London". He also warned of an "undemocratic" move towards eurozone fiscal union. In an interview with Al Jazeera, he also predicted "one or two countries" would be forced to quit the euro.

Thursday, 17 November 2011

Virgin buys Northern Rock for £747m

 

Northern Rock has been sold to Virgin Money, for £747m, marking the first return to the private sector of a UK government-backed bank since the financial crisis. Virgin, the retail banking arm of Sir Richard Branson, will pay £747m in cash upfront – roughly half of the £1.4bn of government equity that was injected into Northern Rock following its collapse in 2007. The taxpayer could receive up to an additional £250m if the business is sold or floated in future. The sale of the “good” part of the bank marks a £400m loss for the government. The bulk of the funding for Virgin’s bid was provided by Wilbur Ross, the US billionaire investor, who owns a 20 per cent stake in the group. More ON THIS STORY Q&A How the deal affects you Lombard Branson risks Northern exposure Metro Bank has issued just 100 mortgages Good news for Lloyds as Co-op bids for branches On London UK domestic banks ON THIS TOPIC N Rock expects to make profit in 2012 Northern Rock to set off privatisation wave Hedge fund says Northern Rock call is wrong Virgin’s success follows an unsuccessful first attempt to acquire Northern Rock before its nationalisation almost four years ago. This time Virgin faced very little competition for the business, which includes 75 high-street branches, 1m customers and £14bn of mortgages. The sale signals the end for one of the most notorious brands in British high-street banking.

Wednesday, 16 November 2011

UK press in dock over phone-hacking, lawyer says

 

Britain's entire press stands in the dock at an inquiry into media standards, said a lawyer representing victims of press intrusion and phone-hacking by Rupert Murdoch's News of the World. David Sherborne, who is representing 51 "core participants" at an inquiry set up as the hacking scandal engulfed News Corp's British arm, said Wednesday that "tawdry" tabloids were guilty of blackmail, bribery and vilification. He said his clients had endured lies, harassment and other "despicable" actions from the press and that phone-hacking might only be the tip of the iceberg. "It is the whole of the press, and in particular the tabloid section of it, which we say stands in the dock," he said. "It is time we had change and by that I mean real change." The Leveson inquiry, due to last a year, will make recommendations which could have a huge impact on the industry and lead to tighter regulation and, at the least, an overhaul of the current system of self-regulation. Lawyers for Britain's major newspaper groups have already pleaded for the essence of that system to remain and said that if anything, the press needed more freedoms. But in a scathing and detailed attack on newspapers, particularly the notoriously aggressive tabloid press, Sherborne said: "We are here not just because of the shameful revelations which have come out of the hacking scandal, but also because there has been a serious breakdown of trust in the important relationship between the press and the public." "The press is a powerful body. They have a common interest and a self-serving agenda," he told the inquiry. Sherborne said revelations that a private detective, jailed for phone-hacking in 2007 along with the News of the World's former royal reporter, had carried out more than 2,000 tasks for the paper suggested that there were about 10 stories in the tabloid every week from the illegal practice. He listed details of some of those who had been targeted, starting with the parents of Milly Dowler, a missing schoolgirl who was later found murdered. It was the revelation that her phone had been hacked while she was missing that changed attitudes to the issue. Within days, News Corp withdrew its bid to buy the 61 percent of broadcaster BSkyB it did not already own and its British newspaper arm News International closed down the 168-year-old News of the World. It also prompted Prime Minister David Cameron to order the inquiry.

UK economy forecast: Eurozone crisis dampens Bank’s growth estimate

 

THE Bank of England warned today that the eurozone debt crisis is the “single biggest risk” to the UK recovery as it forecast a dramatically increased threat of a double-dip recession next year. Its quarterly inflation report revealed a greater chance of the economy contracting in the first three quarters of 2012, compared with its August forecasts, as eurozone and banking concerns and squeezed household budgets continue to weigh on growth. The Bank slashed its central - or most likely - growth estimate to no more than 1 per cent in both 2011 and 2012 from previous forecasts of around 1.5 per cent and 2.2 per cent respectively. The worsened prospects for the UK economy mean inflation is likely to fall far quicker than previously estimated, hitting the Government’s 2 per cent target in the second half of next year before falling to as low as around 1.3 per cent in 2013. Bank governor Sir Mervyn King warned the “journey to a more balanced world economy will be long and arduous”. He said UK economic activity will be broadly flat until the middle of next year and added that the country faces a “difficult economic environment”. Today’s report backs the City’s view that the Bank will keep interest rates on hold for the foreseeable future and add another £75 billion to its quantitative easing programme by February. Vicky Redwood, chief UK economist at Capital Economics, said: “Even the Bank’s downgraded growth forecasts still look optimistic to us - we expect zero growth next year.”

Euro zone crisis is tough going -- for traders

 

Life is not easy for the financial market traders who are making things so hard for euro zone policymakers. There are no pumped-up traders cheering from their screens as Italy's bond yields rise or as France gets sucked into a debt crisis which has already forced Greece, Ireland, and Portugal to seek international bailouts. The mood is weary and fraught. Bond traders see their own business throttled off by the same market forces that squeeze Italy's public finances and stir speculation about France's triple-A credit rating. "Things have felt almost as bad as it was back during the Lehman days in terms of liquidity - it is increasingly hard to get any business done and, to be honest, we think it is going to get worse," a London-based bond trader said. "Two-way markets have gone, the size of business you can get done at these bid/offer rates is minimal, bonuses and jobs are being cut. It's depressing and what is worse, there is no guarantee that anything is going to be better next year." Talk to fund managers and it is easy to see why a debt crisis which has mutated into an existential crisis for the euro is not translated into a bonanza for traders. "What if the currency union falls apart? Our premise is that it doesn't happen. (But) if you think that is going to happen, don't buy equities. Don't buy anything. Just go and hide," a London fund manager running money for institutional investors said. UNRELENTING STRESS As investors stampede to exit some euro zone bond markets, price swings have become bigger and the business of trading -- which relies on finding buyers or sellers before the market moves against you -- has become harder. "People are just exhausted because of the intensity of what is going on," said a bond salesman in London who has been working in the financial market for decades. "It is unbelievable stress and it is unrelenting. People are just hunkered down and working their socks off as everything is just more difficult -- hedging your risk, avoiding losses, everything." There is somewhat less gloom in equity markets, where investors are still trying to spot pockets of value. But the extent to which stock markets have been moving in lockstep with the price of Italian, Spanish, or French bonds in recent days means that trading behavior is far from normal even in equities. "Over the past few days there have very quiet periods punctuated by mad dealing frenzies," said Yusuf Heusen, sales trader at IG Index in London. "The quiet periods have been really very quiet as traders have not been taking on much risk other than to short the euro markets. The busy periods are absolutely manic as everybody wants to get on at the same time and generally same direction and sell offs are extreme as a consequence."

Bank governor Sir Mervyn King sent a stark message to political leaders as he flagged an unresolved eurozone debt crisis

 

Bank governor Sir Mervyn King sent a stark message to political leaders as he flagged an unresolved eurozone debt crisis as the "single biggest risk" to the economy. But despite cutting forecasts, some experts accused the bank of being too optimistic and have predicted another multibillion-pound injection into the economy as early as next month. In its quarterly inflation report, the bank slashed its central, or most likely, growth estimate to around 1% in both 2011 and 2012 - but compared to previous forecasts the Bank's projections reveal a greater chance of the economy shrinking in the first three quarters in 2012. The forecasts assume the problems in the eurozone do not deepen, quantitative easing is maintained at current levels and interest rates stay at record lows. The worsened prospects for the UK economy mean inflation is likely to fall far quicker than previously estimated, hitting the Government's 2% target in the second half of next year before falling to as low as around 1.3% in 2013. Sir Mervyn, who was formally knighted at Buckingham Palace on Tuesday, said UK economic activity will be broadly flat until the middle of next year and added that the country faces a "difficult economic environment". The bank's report backs the City's view that interest rates will be kept on hold for the foreseeable future and another round of quantitative easing (QE) will be rolled out before February. But some economists were still not convinced. Vicky Redwood, chief UK economist at Capital Economics, said: "Even the bank's downgraded growth forecasts still look optimistic to us - we expect zero growth next year."

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