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Sunday, 20 November 2011

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."

Monday, 14 November 2011

I'm A Celebrity Get Me Out Of Here! contestant Freddie Starr has been taken to hospital after suffering a severe allergic reaction in the jungle

I'm A Celebrity... Get Me Out Of Here! contestant Freddie Starr has been taken to hospital after suffering a severe allergic reaction in the jungle. According to the Daily Mail, Starr started feeling sick after completing the Greasy Spoon Bushtucker trial with The Only Way Is Essex star Mark Wright and doctors were called to assess the 68-year old's condition. An ITV spokesman has since confirmed the comedian's illness, stating: "Freddie Starr was taken unwell in the jungle. He was immediately attended to by on-site medics and taken to hospital where he was assessed by doctors." They added: "He will remain in hospital overnight as a precaution, and further tests continue. However, Freddie is in great spirits and keeping nursing staff entertained." A show-insider Down Under also explained to the newspaper that Starr's bout of ill-health has nothing to do with his well-documented heart problems, explaining: "Doctors have told us that it’s highly unlikely that what’s happened is related to any pre-existing condition, cardiac or otherwise." "They think he’s had a severe allergic reaction, but they may not be able to pinpoint the cause. The reaction could be due to a spider bite, he might have reacted badly to a leech or a tic, or even a snake he hadn’t noticed." They continued: "He might have reacted badly to the bark of a tree he leant on, or a leaf he touched in passing. Doctors are testing all of these things. The jungle is an alien environment for most of us, but the show is always prepared for all eventualities and this is no exception." "The unpredictability of the jungle is what sets this programme apart from other shows. The element of jeopardy is always there. However, the  celebs are watched 24-hours a day by a huge team of people." The Mail's source added: "There are dozens of cameras on the celebs, as well as 24-hour security in the camp and a huge crew around them. There are also on-site medics around the clock." As for weather the gruesome bug eating task was to blame, the mole claimed: "The foods are all tested on people before they reach the celebrities." "Extreme precautions are taken and bush tucker like the cockroaches are all bred hygienically. It’s unlikely that this is the cause of his reaction, but tests are continuing and we can't rule out anything."

I'm A Celebrity... Get Me Out Of Here! contestant Freddie Starr has been taken to hospital after suffering a severe allergic reaction in the jungle. According to the Daily Mail, Starr started feeling sick after completing the Greasy Spoon Bushtucker trial with The Only Way Is Essex star Mark Wright and doctors were called to assess the 68-year old's condition. An ITV spokesman has since confirmed the comedian's illness, stating: "Freddie Starr was taken unwell in the jungle. He was immediately attended to by on-site medics and taken to hospital where he was assessed by doctors." They added: "He will remain in hospital overnight as a precaution, and further tests continue. However, Freddie is in great spirits and keeping nursing staff entertained." A show-insider Down Under also explained to the newspaper that Starr's bout of ill-health has nothing to do with his well-documented heart problems, explaining: "Doctors have told us that it’s highly unlikely that what’s happened is related to any pre-existing condition, cardiac or otherwise." "They think he’s had a severe allergic reaction, but they may not be able to pinpoint the cause. The reaction could be due to a spider bite, he might have reacted badly to a leech or a tic, or even a snake he hadn’t noticed." They continued: "He might have reacted badly to the bark of a tree he leant on, or a leaf he touched in passing. Doctors are testing all of these things. The jungle is an alien environment for most of us, but the show is always prepared for all eventualities and this is no exception." "The unpredictability of the jungle is what sets this programme apart from other shows. The element of jeopardy is always there. However, the  celebs are watched 24-hours a day by a huge team of people." The Mail's source added: "There are dozens of cameras on the celebs, as well as 24-hour security in the camp and a huge crew around them. There are also on-site medics around the clock." As for weather the gruesome bug eating task was to blame, the mole claimed: "The foods are all tested on people before they reach the celebrities." "Extreme precautions are taken and bush tucker like the cockroaches are all bred hygienically. It’s unlikely that this is the cause of his reaction, but tests are continuing and we can't rule out anything."

Phone hacking: the names of nearly 30 News International staff appear in Glenn Mulcaire's notebooks

Glen Mulcaire
Phone hacking: the names of nearly 30 News International staff appear in Glenn Mulcaire's notebooks, the Leveson inquiry has heard. Photograph: Peter Macdiarmid/Getty Images

The names of 28 News International employees appear in notebooks belonging to Glenn Mulcaire, the private investigator who worked for theNews of the World, the Leveson inquiry into press standards heard on its first day at London's high court.

 

Lord Justice Leveson's inquiry also heard that Mulcaire wrote the words "Daily Mirror" in his notepad, which suggests he may have carried out work for the paper.

 

Robert Jay QC, counsel for the inquiry, told the high court that "at least 27 other News International employees" are named in Mulcaire's paperwork, as well as former News of the World royal editor Clive Goodman, who was jailed for phone hacking along with the private investigator in January 2007.

 

Jay also told the inquiry, which began formal hearings at the high court on Monday: "The inquiry is beginning to receive evidence to indicate that phone hacking was not limited to that organisation [News International]."

 

He said the number of News International names and the scale of the activity indicated there was a culture of phone hacking at the company. "Either management knew what was going on at the time and therefore, at the very least, condoned this illegal activity," he said, or there was "a failure of supervision and oversight".

 

Mulcaire received a total of 2,266 requests from News International journalists, Jay said, 2,142 of which were made by four unnamed reporters. The most prolific of them made 1,453 of those requests.

 

A total of 690 audio tapes were also recovered from Mulcaire's office, Jay revealed, and there was a record of 586 recordings of voicemail messages intended for 64 individuals. The evidence was seized by Metropolitan police officers during a raid in 2006.

 

Mulcaire's 11,000 pages of notes mentioned 5,795 names, he confirmed, who could be potential phone-hacking victims.

 

Jay also said the inquiry had seen documents that suggest Mulcaire was hacking into phone messages ago as early as May 2001.

 

It had been thought until today that the earliest phone hacking by Mulcaire occurred in 2002. The new date is potentially significant because it falls before the 9/11 terrorist attacks.

 

It has been alleged that News International instructed private investigators in the US to target relatives of the victims of the 9/11 attacks, although no proof has so far emerged that this took place.

 

The Sun is also named in Mulcaire's notes, Jay said. Jude Law had cited the Sun along with its former sister paper the News of the World in his civil case against News International, although the Sun has since been dropped from his claim.

 

Several public figures are believed to be preparing civil cases against the Daily Mirror, but none have so far come to court.

 

The paper's publisher, Trinity Mirror, continues to insist that its journalists operate within the law and follow the Press Complaints Commission's code of conduct.

 

A Trinity Mirror spokesman said the company has "no knowledge of ever using Glenn Mulcaire".

 

Jay said the Mulcaire notes showed a "thriving cottage industry" and the "scale of activity gives rise to the powerful inference that it must have occupied Mulcaire full time".

 

Outlining the vast remit of the inquiry, Jay described a "root and branch" investigation of the press that would not be cowed by the powerful range of institutions in the media.

 

He said the inquiry would consider granting "protected measures" to whistleblowers who were afraid of criticising their employer or speaking truthfully about press ethics.

 

The inquiry will not be limited to phone hacking, Jay said, adding that Leveson was keen to learn about all "unlawful and unethical" newsgathering methods, including subterfuge and blagging.

 

The former News of the World undercover reporter, Mazher Mahmood, has submitted written evidence and will give oral evidence to the inquiry at a later date, Jay said.

 

Opening the hearing, Leveson said he had "absolutely no wish" to stifle freedom of speech and expression, and that the inquiry would monitor media coverage to see if it appears that anyone who speaks out is being "targeted adversely".

Gaga may once again have offended the pious as she emerged as a decapitated corpse from a confession box

GagaGaga may once again have offended the pious as she emerged as a decapitated corpse from a confession box, and that too with a crucifix in the background. No doubt the elaborate attire came off as she began to perform and came to a more natural avatar of fishnet stockings and a black lace bodice.

The Grammy-winner was clearly excited about performance when she tweeted earlier, "So excited to perform Marry The Night on X Factor UK tonight! Will sing my head off for England!! Almost time X-FACTOR! Also get ready monsters cuz #MarryTheNight officially impacts radio next week! Thanku to stations that added it early!"

Now we realise she meant it quite literally!

 

 

THE mother of missing Madeleine McCann said yesterday she still wished she could “stop time”.



03:44 | 

 

Kate McCann (pic: Jeremy Durkin)

Poignant: Kate McCann

 

Kate McCann, who marked the fourth anniversary of Maddy’s disappearance in May, said she and husband Gerry would not give up on finding their little girl.

In a poignant message on the Maddy search website, she wrote: “My grandparents always said the years pass more quickly the older you get. It certainly feels that way. I still dream of being able to stop time.

“Our only alternative however is to continue doing as much as we can to the best of our ability to enhance the search for Madeleine. So that is what we’ll do.”

She added: “It is a big relief that our Government finally agreed to a review. It will be lengthy and difficult but definitely a major step.”

Maddy was nearly four when she vanished from her family’s holiday flat in Praia da Luz, Portugal, in 2007.

Sunday, 13 November 2011

UK border checks are 'a bad joke', whistleblower claims

 

Under-pressure staff are said to be relying on false data and "massaging" official figures to mask the full extent of the immigration chaos at Britain's borders. The whistleblower, a middle manager who does not want to be identified, said UKBA staff lack the resources to track down asylum seekers. As a result, it is claimed, complicated immigration cases are being abandoned to save time, while detention centres employ a "one in, one out" policy that sees low-risk detainees released to allow more dangerous foreigners to be locked up. The whistleblower said British border checks had become "haphazard" and "a bad joke". "The whole place is a basket case," he told The Sunday Times (£). "Asylum seekers run rings around us and we are virtually powerless to do anything about it. It is depressing."

Ex-policeman jailed over VAT fraud

 

former police officer who admitted his part in a £365 million VAT fraud has been jailed for 10 years and three months. The conspiracy that Nigel Cranswick directed has taken the equivalent of 25 years of work to investigate, Judge Brian Forster said. The 47-year-old ex-South Yorkshire Police officer was a director of Ideas 2 Go, and, despite its modest base in a Sheffield business park, he claimed it bought and sold £2 billion worth of goods in just eight months. He has since admitted that the firm's trading, largely in mobile phones and computer software, was fictitious, and the aim was to generate paperwork from fake sales in order to claim back a fortune in VAT from HM Revenue and Customs. Judge Forster, sitting at Newcastle Crown Court, said: "This case concerned planned dishonesty resulting in the loss to the Revenue in the region of £365 million. "There were purported sales of billions of pounds. "The prosecution rightly described the case as an unprecedented attack on the Revenue. "The case has taken 25 man-years to investigate." Cranswick was recruited to play his role in the MTIC (missing Trader intra-community) fraud by others. Also known as carousel fraud, it involves importing goods from other EU states which are then sold through contrived business-to-business transactions. Cranswick, of Danby Road, Kiveton, Sheffield, admitted conspiracy to cheat HMRC at a hearing last month. After the sentencing, Exchequer Secretary David Gauke said: "This Government will not tolerate dishonest people stealing public money. "This sentence shows that those who try to commit fraud need to think again - HMRC will find you and the courts will punish you. "The additional £917m we have invested in HMRC will see more cases like this successfully prosecuted, sending a clear and powerful message." The judge said the sentencing exercise was to punish the offending and deter others. "The figures in this case are astonishing, they reveal the blatant nature of the fraud," he said. Between June 2005 and February 2006, I2G supposedly carried out almost 6,000 deals, with a turnover of £2.4 billion. Sentencing Cranswick, the judge said: "You were immediately before this fraud a serving police officer. Almost unbelievably you retired from the police force and became the organiser of this fraudulent operation. "You set up the company, you clearly accepted the direction of others - the organisers who are not before this court." Outside court, HMRC said Cranswick went "from rags to riches" soon after retiring, having been heavily in debt as a police officer. A spokeswoman said: "He made lavish improvements to his home, rented a luxury apartment in the Spanish town of Marbella and paid for private schooling and tennis lessons for his children. "Cranswick claimed that in the first six weeks of trading Ideas 2 Go had turned over more than £527 million. "The company had traded over £47 million before they even got round to opening a bank account for the business." HMRC assistant director for criminal investigation Paul Rooney said: "As a police officer Cranswick knew full well that he was breaking the law, yet, motivated by greed, he chose to overlook it for the opportunity of making what he wrongly assumed would be easy money. "He now has to pay a very high price for his poor judgment and lack of integrity. "This was a sophisticated fraud designed to steal hundreds of millions of pounds of tax, but it started to unravel when our investigations identified sales for more than 50,000 mobile phones, which the manufacturers hadn't even begun producing in their factories." Cranswick nodded as the judge passed sentence, and gestured to members of his family in the public gallery as he was led away. Also sentenced after admitting conspiracy to cheat the Revenue were Thomas Murphy, 27, of Dinnington, who was jailed for four and a half years; Cranswick's brother-in-law, Darren Smyth, 42, from Beech Road, Maltby, and Brian Olive, 56, from Buttermere Close, Doncaster, who were sentenced to three years and four months each; and former housing officer Andrew Marsh, 28, from Sheffield, who was jailed for two years and eight months. Cranswick's 44-year-old sister, Clare Reid, married to Smyth, was handed a nine-month sentence, suspended for 18 months, and ordered to carry out 150 hours of unpaid work after admitting two counts of false accounting. Cranswick styled himself as a singer-songwriter and can be seen on his website strumming a guitar to a song called Hit And Miss with the opening lines: "I'm in trouble, falling down a hole. How I got here, I won't ever know." He was lead singer with an indie band called Not The Police.

How a Financial Pro Lost His House

 

ONE night a few years ago, when the value of our home had collapsed, our debt was out of control and my financial planning business was shaky, I went to take out the trash. He wrote a book based in part on lessons learned by losing his Las Vegas home in the housing crisis. There was this enormous window that looked right in on the kitchen table, and through it I could see my wife, Cori, and our four children eating dinner. It was dark outside, so they couldn’t see me, and I just stood there looking at them. After a while, I pulled up a bucket and I sat on it, just watching my children eat. I found myself wishing that I could get back there, connected to the simple ordinary stuff of my family’s life. And as I sat and watched, filled with longing and guilt, two questions kept arising: How did I get here? And how am I going to get out of this? There are many stories these days of people who lost their financial bearings during the housing boom and the crisis that followed, but my story is a bit different from most. I’m a financial adviser. I get paid to help people make smart financial choices, and I speak and write about personal finance issues for this publication and others. My first book comes out in January, “The Behavior Gap: Simple Ways to Stop Doing Dumb Things With Money” (Portfolio, a Penguin imprint). The thing that few people know, though, is that I learned a lot of this from experience. I made a bunch of mistakes, the very same ones that I now go around warning people to avoid. So this is the story of how I lost my home, the profound ethical questions that arose along the way, and what my wife and I learned from the mistakes that led us to that point. It made me better at what I do, but it wasn’t much fun getting there. Like most financial stories, this one is personal. It starts with me getting into the financial services industry more or less by accident. I answered an ad in 1995 that I thought was for a job related to “security” (as in security guard) but was in fact related to “securities.” That’s how little I knew about the stock market. A few months later I found myself working a phone at a Fidelity Investments call center. Things went well, and by 1999 I was a Merrill Lynch financial adviser and a certified financial planner. By then, we also owned a house in Salt Lake City. We’d bought it two years earlier, with a $25,000 down payment. A few years later, an opportunity arose to form a partnership with a successful Merrill adviser in Las Vegas. The place was on our top 10 list of never-move-to cities because we had always associated it with the Strip. But Cori and I were looking for an opportunity to have an experience somewhere else, and we met some great people when we visited the city. I took the job, and we moved down there. That was May 2003. Housing prices were already crazy, so we rented. But our neighborhood had zero character and lots of cookie-cutter houses. Within a few weeks, we were looking for a place to buy. I felt we could afford around $350,000. We called a real estate agent named Mitch, who had signs on all the bus stops: Talk to Mitch! He picked us up in a gold Jaguar, and suddenly we were looking at houses that listed at $500,000 or more. It felt a little crazy to be shopping for houses that cost half a million dollars, but my income was growing rapidly. Everywhere I looked, people were being rewarded for buying as much house as they could possibly afford, and then some. There was this excitement in the air, almost like static. I started to think that if I didn’t buy a house right then, I would never be able to afford one. At moments during our house hunt, I felt in my gut that something wasn’t right. We’d go to open houses for $400,000 homes and see lines of couples in their late 20s — younger than we were — waiting to get inside. I kept wondering where all the money was coming from. How did all these people make so much?

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