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Friday, 14 October 2011

FINANCIAL TIMES - World business, finance and political news, Oct 14, 2011


Investor threat to second Greek bail-out

A demonstrator waves flag in front of the parliament building

Bondholders unwilling to accept greater losses

From WORLD 6:19pm

Fox bows to pressure and resigns

Hammond replaces UK defence secretary after controversy

From WORLD 1:47pm

Berlusconi survives confidence vote

Italy’s prime minister receives boost after narrow victory

From WORLD 3:59pm

US retail sales strongest in seven months

Biggest gains in motor vehicle and petrol sales

From COMPANIES 7:15pm

Bill Gross’s big bet on Operation Twist

US fund manager gambles that interest rates will fall

From GLOBAL ECONOMY 6:07pm

Wall St protests spread to global stage

Demonstrations planned from London to Hong Kong

From WORLD 12:03pm

Asia braces for economic downturn

Central banks switch focus from inflation to growth

vw logoReutersFrom COMPANIES 4:17am

Suzuki serves VW with legal notice

Japanese group demands right to buy back stake

CNBC News - Consumer Sentiment Falls, Expectations at 30-Year Low, Oct 14, 2011

U.S. consumer sentiment unexpectedly slumped in early October as worries about declining incomes drove consumer expectations back down to the lowest level in more than 30 years, a survey released Friday showed.

The Thomson Reuters/University of Michigan's preliminary reading on the overall index on consumer sentiment sagged to 57.5 from 59.4 the month before. It fell short of the median forecast of 60.2 among economists polled by Reuters.

Consumers' outlook also deteriorated with the gauge of consumer expectations falling to its lowest level since May 1980 at 47.0 from 49.4. The index had fallen to this level in early September before being revised up at the end of the month.

The component has shed more than 20 points since the beginning of the year.

"Overall, the data indicate that a recessionary downturn is likely to occur," survey director Richard Curtin said in a statement.

"Even if the economy manages to avoid the formal recession designation by (The National Bureau of Economic Research), real consumer expenditures will not be strong enough to enable the more robust job growth that is needed to offset the negative grip of economic stagnation on consumer behavior."

Thirty-nine percent of consumers cited income declines as the reason why their finances have recently worsened, while 65 percent of all households expected no income increase during the year ahead. Both levels were the highest ever recorded by the survey.

The survey's barometer of current economic conditions dipped to 73.8 from 74.9.

Improvement in inflation expectations was a silver lining, with the one-year inflation expectation easing to 3.2 percent from 3.3 percent. The survey's five-to-10-year inflation outlook fell to 2.7 percent from 2.9 percent.

Correction: An earlier headline on this story mischaracterized the drop in consumer sentiment.

CBC World News - Gun battle reported in Tripoli,

A gun battle erupted Friday between hundreds of revolutionary forces and Moammar Gadhafi supporters in the capital for the first time in more than two months after a group tried to raise the green flag that symbolizes the ousted leader's regime.

The fighting began when a group of loyalists carrying the green flag appeared on the streets of Tripoli's Abu Salim neighbourhood, which houses the notorious prison of the same name.

Shouting "God is Great," anti-Gadhafi fighters converged on the area, which has long been a loyalist stronghold, in pickups mounted with weapons, setting up checkpoints as heavy gunfire echoed through the streets.

A Libyan revolutionary fighter patrols in downtown Sirte, Libya, on Friday. A gun battle was reported in the capital, Tripoli.A Libyan revolutionary fighter patrols in downtown Sirte, Libya, on Friday. A gun battle was reported in the capital, Tripoli. Manu Brabo/Associated Press

The violence in the capital, which has been relatively calm since then rebelsseized control in late August, underscored the difficulty Libya's new rulers face in restoring order as Gadhafi remains on the run. He has issued several audio recordings from hiding trying to rally supporters against the North African nation's transitional leadership.

Witnesses said the shooting began after a group of dozens of men and women tried to raise the green flag at the end of a street in the Hay Nasr district.

"I looked out of my window and I saw men and women in a group of 50 to 80 people, carrying the green flag," said Abadi Omar, a resident in one of the buildings in the area. "They put one of these flags at the end of our street. This is when the rebels came out and these people disappeared."

CBS - U.S.: Terrorists after missing Libyan missiles , Oct 14, 2011

Throughout Libya, the hunt is on for the missiles and rockets that Qaddafi's fleeing forces left behind.

Throughout Libya, the hunt is on for the missiles and rockets that Qaddafi's fleeing forces left behind.

(AP)

BRUSSELS - Terrorist groups have expressed interest in obtaining some of the thousands of shoulder-launched missiles that have gone missing in Libya and the issue has become a priority for the Obama administration, a senior U.S.official said Friday.

Andrew J. Shapiro, Assistant Secretary of State for Political-Military Affairs, said Friday the missiles "could pose a threat to civil aviation."

"We know that terrorist groups have expressed interest in obtaining these weapons," he said, adding that the issue issue of securing the weapons was a priority for President Barack Obama and Secretary of State Hillary Clinton.

Libya was believed to have about 20,000 such missiles in its arsenals before civil war began in March, Shapiro said. Although many were destroyed by NATO air strikes, thousands are missing.

SFGate World News, Oct 14, 2011

Italy's Berlusconi wins confidence vote

Italy's Berlusconi wins confidence vote
Italian Premier Silvio Berlusconi survived a confidence vote in Parliament Friday, but his narrow majority raises doubts over his ability to govern effectively when the country needs a steady hand during its economic crisis.

Palestinians condemn Jerusalem housing plan

Palestinian negotiator Saeb Erekat is condemning a plan to build more than 2,000 housing units in an east Jerusalem neighborhood. 

Symbol of Argentine repression claims persecution

(10-14) 12:04 PDT BUENOS AIRES, Argentina (AP) -- The Argentine navy spy once nicknamed "the Angel of Death" says he's a victim of...
AP 10.14.11 12:04 PM

Lisbon court places US fugitive under house arrest

(10-14) 11:25 PDT LISBON, Portugal (AP) -- A court has allowed captured American fugitive George Wright to leave jail and stay at his...
AP 10.14.11 11:25 AM

UK defense minister quits after scandal

(10-14) 11:11 PDT LONDON, United Kingdom (AP) -- Britain's defense minister Liam Fox quit his post Friday after days of allegations...
AP 10.14.11 11:11 AM

Key steps to conference on nuke-free Mideast

(10-14) 10:56 PDT UNITED NATIONS, (AP) -- The U.N., U.S., Russia and Britain are announcing that Finland will host a conference in...
AP 10.14.11 10:56 AM

UK medical group rejects new skin cancer treatment

(10-14) 10:39 PDT LONDON, United Kingdom (AP) -- An independent British medical watchdog says the first treatment proven to help...
AP 10.14.11 10:39 AM

IMF official ducks eggs during protest in Turkey

(10-14) 10:28 PDT ANKARA, Turkey (AP) -- The IMF's senior representative to Turkey has quick reflexes _ successfully ducking eggs...
AP 10.14.11 10:28 AM
(10-14) 10:28 PDT MADRID, Spain (AP) -- The head of the Spanish office of an international aid group says they have had no contact...
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LA TIMES - Libya revolutionaries have Surt in stranglehold, Oct 14, 2011


Surt, Libya, under siege
Libyan revolutionaries fire on remnants of resistance in Moammar Kadafi's hometown of Surt.(Mohamed Messara / European Pressphoto Agency / October 13, 2011)
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Fighters loyal to Moammar Kadafi engaged in a last-ditch battle Thursday from a single pocket of resistance in the former Libyan leader's besieged hometown.

Tanks manned by fighters allied with the transitional government fired relentlessly at pro-Kadafi forces pinned in a compact residential district of Surt close to the Mediterranean coast, sending dust and concrete into the air. Anti-Kadafi fighters with rifles moved into firing position, crunching over spent ammunition cartridges that littered the central garden plaza.

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THE GUARDIAN - Libya war reaches endgame with 100 loyalists left fighting, Oct 14, 2011

Anti-Gaddafi fighters celebrate Sirte
Rebel fighters celebrate after their forces capture a Gaddafi fighter during fighting in the centre of Sirte. Photograph: Thaier Al-Sudani/Reuters

The two men are singing in the back of a pick-up truck, sitting on the rails, their legs resting on a blanket that seems oddly lumpy. Sticking out from beneath it are two pairs of feet, one bare, one wearing socks. They are the feet of two pro-Gaddafi fighters killed in the fighting in the coastal city of Sirte.

Thursday was a day of deaths on both sides. Government forces trying to enter the last pocket of Sirte held by pro-Gaddafi fighters were bogged down in a narrow street flooded with sewage and water.

Sirte is an unremarkable town, its importance inflated by the fact that the deposed Libyan leader was born nearby and counts its main tribe among his staunchest supporters.

But its fate is now being keenly watched around the world. The rebel government in Tripoli has declared – as UK foreign secretary William Hague told MPs in London – that its fall will mean the liberation of the entire country and trigger the start of a political process to build a new democracy.