Market nerves over euro strategy

 

World stock markets have fallen on fears that eurozone leaders are divided over how to tackle the debt crisis.

After a meeting with German Chancellor Angela Merkel in Frankfurt, French President Nicolas Sarkozy was reported to have said that the two countries were at odds over a rescue plan.
London's FTSE 100 index fell 1.4% while German and French markets also fell.
European Commission President Jose Manuel Barroso called on leaders to reach a deal.
Mr Barroso said there would be "a positive result if all maintained a sense of compromise".
Earlier, Asian markets had fallen, with Hong Kong's Hang Seng index down 1.8% and South Korea's Kospi ending 2.7% lower.
President Sarkozy had travelled to Germany for talks with Mrs Merkel, IMF director Christine Lagarde, outgoing European Central Bank chief Jean-Claude Trichet and other key officials.
He later returned to Paris, where his wife Carla Bruni had given birth to a baby girl.
Delayed summit 

The German government has been busy hosing down expectations that this weekend's eurozone summit will deliver anything more than progress, presumably so that investors don't defenestrate themselves on Monday morning at the blinding realisation that many of the currency union's structural flaws are not amenable to overnight remedies” 

The emergency talks were aiming to break the stalemate between Germany and France over how to increase the firepower of the eurozone's bailout fund, the European Financial Stability Facility (EFSF).

Earlier this month, the two countries said they had a plan to address the debt problem and would give further details by the end of October.
But doubts have set in as reports emerged that proposals for the EFSF was still being discussed.
EU leaders will hold a summit on Sunday.
The meeting had been scheduled for 17-18 October, but was delayed because more time was needed to finalise a plan to give money to Greece and bolster debt-laden banks.

Muammar Gaddafi killed in Libya

BBC's Gabriel Gatehouse in Sirte: "I have spoken to the man who says that he captured him... he was brandishing a golden pistol" 

Libya's ex-leader Col Muammar Gaddafi has been killed after an assault on his home town of Sirte, the transitional authority's acting prime minister says.

Mahmoud Jibril told a news conference in Tripoli it was time to launch a new, united Libya.
Video footage has been broadcast around the world showing a battered body claimed to be that of Col Gaddafi.
He was toppled in August after 42 years in power. The International Criminal Court has been seeking his arrest.
Golden gun After a day of conflicting reports and rumours, Mr Jibril told the news conference: "We have been waiting for this moment for a long time. Muammar Gaddafi has been killed.

Al-Jazeera TV broadcast footage it says showed Col Gaddafi's body

"I think it's for the Libyans to realise that it's time to start a new Libya, a united Libya, one people, one future."
Grainy video footage had earlier been circulating among NTC fighters appearing to show Col Gaddafi's corpse.
The video shows a large number of NTC fighters yelling in chaotic scenes around a khaki-clad body, which has blood oozing from the face and neck.
Another video broadcast by al-Jazeera TV showed a body being dragged through the streets which the channel said was that of Col Gaddafi.
Nato, which has been running a bombing campaign in Libya for months, said it had carried out an air strike earlier on Thursday that hit two pro-Gaddafi vehicles near Sirte.
It was unclear whether the strikes were connected with Col Gaddafi's death.

Driving into the centre of Tripoli, there are throngs of people out on the streets - men, women and children - many hugging each other and chanting. Gunshots can be heard firing into the air - despite a religious edict banning the practice. Car horns are blaring and many vehicles have their emergency lights blinking.
At some checkpoints, security officials are handing out what have been dubbed "revolutionary mints" and biscuits.
All the flags are out. People are genuinely convinced this is the end of Col Gaddafi. They felt that even in hiding he posed a threat to the revolution - but for them this news means the authorities can now start to rebuild the country.

Earlier, NTC official Abdel Hafez Ghoga told AFP: "We announce to the world that Gaddafi has been killed at the hands of the revolution.

"It is an historic moment. It is the end of tyranny and dictatorship. Gaddafi has met his fate."
An NTC fighter told the BBC he found Col Gaddafi hiding in a hole in Sirte, and the former leader begged him not to shoot.
The fighter showed reporters a golden pistol he said he had taken from Col Gaddafi.
Arabic TV channels showed images of troops surrounding two large drainage pipes where the reporters said Col Gaddafi was found.
NTC supporters gathered in towns and cities to celebrate the reports of the colonel's death.
Groups of young men fired guns in the air, and drivers honked horns in celebration.
His death came after weeks of fierce fighting for Sirte, one of the last remaining pockets of resistance.

Raw vegetables and fruit 'counteract heart risk genes'

 

Experts already recommend eating at least five portions of fruit and veg a day for good health 

People who are genetically susceptible to heart disease can lower their risk by eating plenty of fruit and raw vegetables, a study suggests.

It says five or more daily portions should be enough to counteract culprit versions of a gene on chromosome 9, thought to be possessed by a fifth of people of European ancestry.
Healthy diets appeared to weaken its effect.
The US researchers investigated more than 27,000 people for their work.
The findings were published in Plos Medicine journal.
These participants came from from around the globe, including Europe, China and Latin America.
The results suggest that individuals with high risk 9p21 gene versions who consumed a diet packed with raw vegetables, fruits and berries had a similar risk of heart attack as those with a low-risk variant of the same gene. Five a day

Foods that count:

• Fresh fruit and vegetables
• Frozen fruit and vegetables
• Dried fruit, such as currants, dates, sultanas and figs
• Tinned or canned fruit and vegetables
• Fruit and vegetables cooked in dishes such as soups, stews or pasta dishes
• A glass (150ml) of unsweetened 100% fruit or vegetable juice
• Smoothies
• Beans and pulses; these only count as one portion a day, no matter how many you eat

Researcher Prof Sonia Anand, of McMaster University, said: "Our results support the public health recommendation to consume more than five servings of fruits or vegetables as a way to promote good health."

The scientists, who also included staff from McGill University, say they now need to do more work to establish how diet might have this effect on genes.
Judy O'Sullivan of the British Heart Foundation said the findings should serve as a reminder that while lifestyle and genes could increase heart risk, the way the two interacted with each other was also very important.
"The relationship between the two is often very complicated and we don't yet have all the answers, but the message appears to be very simple - eating lots of fruit and vegetables is great news for our heart health."

India encephalitis outbreak kills 400, mainly children

 By Soutik Biswas BBC News, Delhi

Viral encephalitis has killed hundreds of children in Uttar Pradesh over the last decade 

More than 400 people, mainly children, have died in an outbreak of viral encephalitis in northern India, health officials say.

So far 2,300 patients have been admitted to a hospital in the affected Gorakhpur area of Uttar Pradesh state.
A doctor told the BBC that it was a "tragedy beyond imagination" with children dying every day.
Nearly 6,000 children have died of encephalitis in the hospital since the first case was detected in 1978.
Most of the deaths this year have happened since July, doctors say.
The disease occurs regularly during the monsoon in the Gorakhpur region bordering Nepal in the foothills of the Himalayas.
The low-lying areas are prone to floods and water-logging. Lack of sanitation provides a breeding ground for mosquitoes and leads to contamination of water supplies.
This happens because most people defecate in the open in villages of the area, while water is consumed mainly using shallow hand pumps.
'Tragedy' Doctors say affected patients come from 10-12 districts in the region, and are mostly poor.
Until 2005, the majority of deaths were caused by Japanese encephalitis, caused by a mosquito-borne virus, doctors say.
But in the past six years, children have been dying of viral encephalitis, a water-borne disease caused by contaminated water.

It is an unbelievable tragedy. Children are dying every day.”

Dr KP Kushwaha Pediatrician

Both the diseases cause head aches and vomiting and can lead to comas, brain dysfunctions, seizures and inflammations of the heart and kidney.

Doctors say children between the age of six months to 15 years are worst affected and most of the victims are poor people from rural areas.
"It is unbelievable tragedy. There are five to 10 children dying every day," Dr KP Kushwaha, head of paediatrics at the BRD Medical College, the only hospital treating patients, told the BBC.
Most of the 370 beds in the paediatrics and medicine departments at the hospital are overflowing with more than one patient occupying a bed, he said.
A fifth of the children who survive have to live with neurological weaknesses and retardation, doctors say.
"Children are most affected because they have lower immunity and they end up consuming a lot of contaminated water at home," Dr Kushwaha said.
'Shambles' Though the incubation period of viral encephalitis is between three and 30 days, patients are brought to the hospital from far-flung areas because of the lack of adequate healthcare in their villages.
"The public health care system is in a shambles. And the tragedy repeats every year," said Kumar Harsh, a local journalist.
The government says it has tried to check the regular outbreak of the encephalitis in the region.
Two massive vaccination drives against Japanese encephalitis were carried out in Gorakhpur in 2006 and 2010, leading to a drastic decline of the disease in the area.

The disease is caused by contaminated water

Also, people took precautions by using mosquito nets and repellents.
But tackling viral encephalitis has proved to be tougher challenge, and controlling it will require a vast improvement in sanitation and drinking water supply in rural areas, health officials say.
The state government disbursed over millions of rupees from a federal health programme for treatment of patients at the state-run BRD Medical College in 2009.
Part of this money was spent in hiring 135 researchers, doctors and paramedical staff to beef up treatment.
Most of the money ran out by August, leaving only 36 of them receiving regular salaries, say authorities.
The encephalitis outbreak in Gorakhpur has attracted national and international attention - scientists from US-based Centers for Disease Control visited the area in 2009, and took away medical samples to examine the virus.
In 2005, a virulent outbreak of Japanese encephalitis in Gorakhpur killed 1000 people, mostly children. This was the worst outbreak since 1978.

Blackberry problems spread to US

 

BBC Radio 1 Newsbeat listeners described how the crash affected them 

Problems with the Blackberry smartphone system appear have to spread to the United States.

Users began to report loss of services on Wednesday, with many turning to Twitter to complain about their lack of email.
The latest development follows two days of sporadic blackouts across Europe, the Middle East and Africa.
Blackberry's owner, RIM, said that the earlier problem was caused by core and back-up switch failures.
As news of the failure in the US spread, one user tweeted: "What is the status here in the USA? I am in New York and there seems to be no email service."
Another, who lives in Texas, wrote: "My #blackberry is not working! I can dial out that's it. What's up?".
'Data backlog' Blackberry had earlier declared services to be "operating normally", only to be contradicted by frustrated users.
Many called on the phone firm to "sort out" the problems and get the network running again.
RIM acknowledged that it was still experiencing problems and apologised for the inconvenience.
"The messaging and browsing delays... in Europe, the Middle East, Africa, India, Brazil, Chile and Argentina were caused by a core switch failure within RIM's infrastructure," a company statement said.

"Although the system is designed to failover to a back-up switch, the failover did not function as previously tested.
"As a result, a large backlog of data was generated and we are now working to clear that backlog and restore normal service as quickly as possible."
The blackouts have left millions of users without email, web browsing and Blackberry Messaging (BBM) services.
The cause is believed to be due to server problems at RIM's Slough data centre.
Blackberry users around the world began reporting problems with their handsets mid-morning on 10 October and at 14:42 BST, Blackberry UK sent out a tweet which said: "Some users in EMEA are experiencing issues."
The "issues" left many Blackberry owners only able to text and make calls.
'Harsh criticism' Many corporate customers said they had not lost service, suggesting that the problem was with Blackberry's BIS consumer systems, rather than its BES enterprise systems.

BBC's Rory Cellan-Jones: "Blackberry has so many high profile users who are complaining about the crash"

"Blackberry runs two infrastructures," explained Simon Butler, a Microsoft Exchange consultant at Sembee.
"The understanding I have is that the BIS service has crashed.
"The business side runs on a different set of servers, although enterprise Blackberrys can still use messenger and the consumer services, so they are also affected," said Mr Butler.
Such a major failure will still come as unwelcome news to Blackberry's owner RIM, which has been losing market share to smartphone rivals - in particular Apple's iPhone.
Many corporate clients have switched to the device after Apple made a concerted effort to improve its support for secure business email systems.
Malik Saadi, principal analyst at Informa Telecoms & Media, said RIM would have to resolve the problem quickly.
"The current situation with the Blackberry outages couldn't come at a worse time for RIM, following some harsh criticism in recent months," he said.
Such crashes may lead RIM and others to "re-evaluate their reliance on centralised servers and instead look to investing in more corporately controlled servers", he added.
But he thinks customers will stick with the firm despite current frustrations.
"It will take more than just a couple of collapses to persuade loyal consumers of Blackberry services to look for alternatives," he said.
Many of those complaining about the crash said on Twitter that they could not live without access to BBM.

Eurozone industrial production sees surprise rise

 

German output is now up by 7.8% on a year ago 

Industrial production in the 17 countries that use the euro rose unexpectedly by 1.2% in August.

The EU's statistics office, Eurostat, said it meant industrial production had risen by 5.3% on an annual basis.
The increase may ease concerns that the eurozone is heading back into recession in the third quarter.
Economists had forecast a rise of 2.2% on an annual basis, and fall of 0.7% on the month. August's increase follows a rise of 1.1% in July.
Meanwhile the Irish Republic, which is implementing an austerity programme, saw its production increase 4.4% in August and jump by 10.1% year-on-year.
'Overly flattering' "August's rise in eurozone industrial production suggests that, for now at least, the sector is continuing to prop up the wider recovery," said Ben May of Capital Economics.
"But this is unlikely to last. The 1.2% monthly rise in output was much stronger than expected, and was a touch better than July's healthy 1.1% gain."
He added: "Nonetheless, the headline figures paint an overly flattering picture of the state of the sector."
Mr May said there was evidence temporary factors, such as the timing of school holidays, had been an important factor behind the recent rise in output.

Barroso outlines plan to resolve eurozone debt crisis

 

Jose Manuel Barroso says there needs to be "more discipline" in Europe

The president of the European Commission, Jose Manuel Barroso, has set out a plan designed to bring an end to the eurozone debt crisis.

In a speech, Mr Barroso said banks must set aside more assets to help guard against future losses.
Banks supported by the eurozone bailout fund - the European Financial Stability Facility - should be stopped from paying dividends or bonuses, he said.
The commission called it a "comprehensive response" to the crisis.
It outlined five areas of action "designed to break the vicious circle between doubts over the sustainability of sovereign debt, the stability of the banking system and the European Union's growth prospects".
Mr Barroso said the plan "charts Europe's way out of the economic crisis".
"Reactive and piecemeal responses to different aspects of the crisis are no longer sufficient," he said.
The plan calls for five policy actions:

• Decisive action on Greece so that "all doubt is removed" about the country's economic sustainability. This includes freeing up the latest tranche of bailout funds
• Implementing measures agreed in July, which include increasing the size of the EFSF to 440bn euros ($607bn; £385bn) and accelerating the launch of its permanent successor, the European Stability Mechanism
• Co-ordinated action on strengthening Europe's banks. Banks should set aside more assets to cover losses through private funding or national governments if necessary. If this is still not adequate, they can tap into the EFSF, but if they do they will not be allowed to pay dividends of bonuses
• Speeding up policies to enhance growth and stability, such as free trade agreements
• Building greater integration for economic governance across the eurozone.

Greek losses Late on Tuesday, Slovakia voted against increasing the powers of the EFSF - the only one of the 17 members of the eurozone to do so.
However, internal political wrangling was behind the no vote, and observers expect a fresh vote before the end of this week.
In addition to expanding the EFSF's powers, the measures agreed in July by eurozone leaders also included private lenders taking a 21% hit on loans to the Greek government.
However, investors now believe both these measures are inadequate. They are calling for the bailout fund to be increased towards 2 trillion euros, and believe private investors will be forced to take a much bigger hit than the 21% suggested.
The leaders also agreed in July to a second bailout package for Greece worth 109bn euros.
The commission, along with the International Monetary Fund and the European Central Bank, has been in Athens deciding whether to release the latest tranche of funds from the first bailout agreed in 2010.
On Tuesday, the three bodies agreed measures that Greece needs to take to bring down its debt levels and said they were likely to release the 8bn euros that country needs to pay its bills.
Leaders have been heavily criticised, particularly by investors, for not taking decisive action to end the crisis.
However, there is feeling now that such action will be forthcoming, analysts say, with all eyes on a summit of EU leaders on 23 October and a G20 meeting in Cannes at the beginning of November.

Slovak parties in talks after bailout fund rejection

  Prime Minister Radicova lost the support of former coalition partner Richard Sulik 

Political parties in Slovakia are in talks on their next step a day after parliament dramatically rejected plans to expand the EU bailout fund.

It is unclear whether a new coalition will be formed or early elections will be called after the existing government collapsed over the vote.
The Slovak president is cutting short a visit to Asia to supervise efforts to form a new government.
Correspondents say a new vote on the fund is likely by the end of this week.
Slovakia is the last eurozone state to vote on ratifying the expansion of the European Financial Stability Facility (EFSF).
It is proposed to expand the EFSF's effective lending capacity to 440bn euros ($600bn; £383bn), as well as empowering it to buy eurozone government debt and offer credit lines to member states and to banks.
Slovak Prime Minister Iveta Radicova failed to pass the bill on Tuesday when a junior partner in her coalition, Richard Sulik's free-market Freedom and Solidarity party, refused to back it.
Top EU officials urged the country on Wednesday to ratify the bill swiftly.
"We call upon all parties in the Slovak parliament to rise above the positioning of short-term politics and seize the next occasion to ensure a swift adoption of the new agreement," European Council President Herman Van Rompuy and European Commission President Jose Manuel Barroso said in a joint statement.
Ratification expected

Continue reading the main story

“Start Quote

The feet of many Europeans stamp impatiently but these changes - however desirable - cannot be just nodded through”

Gavin Hewitt BBC Europe editor

• Sovereignty and the European project

Freedom and Solidarity asked why Slovakia's taxpayers should be asked to help cover the debts of richer countries.

Many Slovaks feel their country - the second poorest in the eurozone - should not have to bail out countries like Greece, correspondents say.
However, the EFSF stands a good chance of being ratified at a new vote because the main social democrat opposition (Smer), which abstained on Tuesday in order to bring down the government, actually backs the fund.
"We're saying 'no' to a rightist government, but we're saying 'yes' to the rescue fund," Smer leader Robert Fico said during the debate.
Michal Lukac, spokesman for Ms Radicova's Slovak Democratic and Christian Union, said the party wanted to vote again on the EFSF "as soon as possible, ideally on Thursday".
"Everything depends on whether an agreement with Smer is reached," he added.
Slovak President Ivan Gasparovic is expected to return from his Asian trip on Thursday, the next day when parliament is due to meet.
He will dismiss Prime Minister Radicova and her government as they lost a confidence vote on Tuesday, tied to the EFSF vote.
Mr Gasparovic may also name a new prime minister, while early elections are an option if approved by parliament.

'Underpants bomber' Abdulmutallab pleads guilty

  Umar Farouk Abdulmutallab faces eight charges, including terrorism 

A Nigerian accused of trying to bomb a US-bound flight on Christmas Day 2009 has told his trial in Detroit that he is pleading guilty to all charges.

Umar Farouk Abdulmutallab, 24, told a judge he was admitting all eight counts against him, including terrorism and attempted murder.
Abdulmutallab was badly burned when a bomb sewn into his underwear failed to detonate fully, prosecutors say.
Almost 300 people were on the flight with him from Amsterdam to Detroit.
Abdulmutallab will be sentenced on 12 January 2012 but the BBC's Jonny Dymond, in Washington, says this is now a formality - Abdulmutallab will spend the rest of his life in prison.
Al-Qaeda links US Federal Judge Nancy Edmunds verified that Abdulmutallab understood his right to silence before asking him if he wished to make a plea.
"Do I understand correctly that you wish to waive that right [in order] to plead guilty to all the charges in the indictment?" she asked.
"Yes," the defendant replied.
He told the court the bomb was a "blessed weapon to save the lives of innocent Muslims".
"The US should be warned that if they continue to kill and support those who kill innocent Muslims, then the US should await a great calamity... or God will strike them directly," he said.
Al-Qaeda in the Arabian Peninsula (AQAP), which is based in Yemen, said it was behind the attack on 25 December 2009.
US investigators have said Abdulmutallab told them he was working for AQAP and had received the bomb from them, as well as training.
US and Yemeni officials have linked Abdulmutallab to radical cleric Anwar al-Awlaki, whom he is said to have met while in Yemen before the attack.
Abdulmutallab flew from Nigeria to Amsterdam, where he boarded Northwest Airlines Flight 253 to Detroit.
He was already on a US watch list, but not a no-fly list.
Passengers had to put out the fire after the bomb failed to detonate fully, the court heard on Monday.
Abdulmutallab's father, Alhaji Umaru Mutallab, an influential banker who is well connected in Nigerian politics, said he had approached the US embassy officials and Nigerian authorities in 2009 to warn them about his son.
Abdulmutallab was denied a request to ban statements he made while being treated for burns at a hospital, as well as other material, from appearing at trial.
During the first day of his trial, on Monday, prosecutor Jonathan Tukel showed the court a picture of the remains of the burnt underwear which contained the explosive device.
The court also saw video of Abdulmutallab explaining his suicide mission.

Blackberry users complain on Twitter of fresh crash

 

BBC Radio 1 Newsbeat listeners described how the crash affected them 

A few hours after Blackberry maker RIM said all services were "operating normally" users have complained of a new crash.

Twitter is full of angry users reporting renewed issues with their handsets and an inability to send messages and email.
The initial blackout saw Blackberry services across Europe, the Middle East and Africa disrupted.
The problems now seem to have spread to Latin America as well.
One tweeter summed up the mood of many: "Blackberry server down AGAIN?!!! you have got to be kidding me!!!!!"
Many called on the phone firm to "sort out" the problems and get the network running again.
RIM acknowledged that it was still experiencing problems.
"Some users in Europe, the Middle East and Africa, India, Brazil, Chile, and Argentina are experiencing messaging and browsing delays," the firm said in a statement.
"We are working to restore normal service as quickly as possible. We apologise for any inconvenience this has caused."
Server crash The crash comes only a few hours after RIM had issued a statement which said all services were now "operating normally".
That blackout left millions of users without email, web browsing and Blackberry Messaging (BBM) services following the crash around 11:00 BST on 10 October.
The cause is believed to be due to server problems at RIM's Slough data centre.
Details about what caused the stoppage are scant. In its statement RIM apologised for the inconvenience but gave no further information about the genesis of the problems.
Blackberry users around the world began reporting problems with their handsets mid-morning on 10 October and at 14:42 BST, Blackberry UK sent out a tweet which said: "Some users in EMEA are experiencing issues."
The "issues" left many Blackberry owners only able to text and make calls.
Serious outrage Many corporate customers said they had not lost service, suggesting that the problem was with Blackberry's BIS consumer systems, rather than its BES enterprise systems.
"Blackberry runs two infrastructures," explained Simon Butler, a Microsoft Exchange consultant at Sembee.
"The understanding I have is that the BIS service has crashed.

"The business side runs on a different set of servers, although enterprise Blackberrys can still use messenger and the consumer services, so they are also affected," said Mr Butler.
Such a major failure will still come as unwelcome news to Blackberry's owner RIM, which has been losing market share to smartphone rivals - in particular Apple's iPhone.
Many corporate clients have switched to the device after Apple made a concerted effort to improve its support for secure business email systems.
Malik Saadi, principal analyst at Informa Telecoms & Media said RIM would have to resolve the problem quickly : "The current situation with the BlackBerry outages couldn't come at a worse time for RIM, following some harsh criticism in recent months," he said.
Such crashes may lead RIM and others to "re-evaluate their reliance on centralised servers and instead look to investing in more corporately controlled servers", he added.
But he thinks customers will stick with the firm despite current frustrations.
"It will take more than just a couple of collapses to persuade loyal consumers of BlackBerry services to look for alternatives," he said.
Many of those complaining about the crash said on Twitter that they couldn't live without access to BBM.

Spain banks downgraded by S&P and Fitch

  Santander is one of 10 banks downgraded by S&P 

Two leading credit rating agencies have downgraded some of Spain's largest banks, citing a deteriorating outlook for the Spanish economy.

Standard & Poor's (S&P) said it was downgrading the ratings of 10 financial institutions, including the country's two biggest banks, Santander and BBVA.
Fitch said it was cutting the ratings of six banks, after downgrading Spain last week.
Ratings agencies have been downgrading European banks during the debt crisis.
S&P said its latest action resulted from the "tougher-than-previously-anticipated macroeconomic and financial environment in Spain".
"In our view, Spain's economy faces dimming growth prospects in the near term, real estate market activity remains depressed, and turbulence in the capital markets has heightened."
It said banks would continue to be affected by imbalances in the Spanish economy for the next 15-18 months.
Last Friday, Fitch said Spain's high underlying budget deficit and its fragile economic recovery made the country "especially vulnerable" to external shocks.
S&P downgraded Banco Santander and Banco Bilbao Vizcaya Argentaria by one notch, to AA- from AA.
Fitch also downgraded Santander one notch to AA-, and BBVA by one notch to A+.
Greek hit European banks, particularly those in France, have been downgraded due to concerns about exposure to highly-indebted countries.
For example, the markets already expect banks to take a hit on Greek government bonds.
European leaders are currently working on proposals to solve the debt crisis once and for all, and central to these plans is recapitalising the banks to ensure they can withstand any defaults on government debts.
The third of the big three credit rating agencies, Moody's, downgraded 12 UK financial firms last week.
However, it said the move reflected the fact it believed the UK government was less likely to bail out banks that got into trouble, and not a deterioration in the financial strength of the banking system.

Slovakia votes down eurozone bailout expansion plans

  Slovakian Prime Minister Iveta Radicova urged MPs to support the expansion measures 

Slovakia's parliament has voted against measures to bolster the powers of the eurozone bailout fund, seen as vital in combating the bloc's debt crisis.

The governing coalition had linked the vote to a confidence motion and as a result has effectively been toppled.
Slovakia is the last of the eurozone's 17 member states to vote on expanding the European Financial Stability Fund.
However, the BBC's Rob Cameron says a second vote could be held soon and is likely to succeed.
The measure failed to pass by 21 votes, but that result had been anticipated after a junior party in the centre-right coalition said it would abstain.
Many Slovaks feel their country - the second poorest in the eurozone - should not have to bail out countries like Greece.
Government officials said they would try to pass the EFSF expansion package in a second vote with support from the opposition, but no date has been fixed for that vote yet.
The socialist opposition is expected to support the move but may make stringent demands including fresh elections.

It's been a difficult sell from the outset. Many in Iveta Radicova's four-party centre-right coalition expressed deep misgivings when the eurozone agreed in July to increase the EFSF to 440bn euros and give it new powers.
As one by one the rest of the eurozone ratified the proposals and the debt crisis deepened, most of the coalition came around. Except Richard Sulik, leader of the neo-liberal Freedom and Solidarity party, and his 21 MPs.
Some placed their hopes in Robert Fico, former prime minister and leader of the leftist opposition. But Mr Fico sensed an opportunity to wound and perhaps bring down the government, hastening early elections he is likely to win.
What will happen next? A second vote will probably be held within days. With Mr Ficos's support that vote is likely to succeed. 

Slovakian Prime Minister Iveta Radicova had urged MPs to vote in favour.

"It is the entire eurozone system which is under threat at the moment, not just a few small countries," she said during the debate.
"Our euro is under threat. The changing situation needs quick and immediate reaction."
To expand the powers of the EFSF bailout fund, all member states must agree on the measures proposed in July.
These include expanding the size of the fund to an effective lending capacity of 440bn euros ($600bn; £383bn).
They also include giving it the power to buy eurozone government debt and offer credit lines to member states and to banks.
The irony is that these plans, agreed in July, are now seen as inadequate, says the BBC's Matthew Price in Brussels.
Market analysts suggest the fund needs to be nearer 2 trillion euros to be effective.
Other plans agreed in July, to make private investors take a hit on any default by Greece on its debts, are also now seen as insufficient. Reports suggest leaders are contemplating a 50% cut rather than the 21% cut originally proposed.

Bill Gates India scheme 'spared 100,000 from HIV'

The Avahan project was launched in 2003 in six states

 

About 100,000 people in India may have escaped HIV infection over five years because of a scheme funded by the Bill and Melinda Gates Foundation, a study by the Lancet suggests.

The Avahan project was launched in 2003 in six states which had the highest rate of HIV in India at the time.
The aim was to invest in HIV prevention by targeting high-risk groups such as sex workers and truck drivers.
The initial findings of the study had some data limitations, AFP reports, but the study's authors make it clear that investing in prevention can have a positive impact.
"The results of our analysis suggest that Avahan had a beneficial effect in reducing HIV prevalence at the population level over five years of programme implementation in some of the states," the assessment said.
It said that the findings supported investment in well-managed HIV prevention programmes in low and middle-income countries.
The $258m (£164m) Avahan project was based in the states of Andhra Pradesh, Karnataka, Maharashtra, Tamil Nadu, Manipur and Nagaland.
It targeted high-risk groups such as sex workers, injecting drug users and truck drivers with tactics such as safe-sex counselling, free condoms, exchanging used needles for sterilised ones and through campaigning and advocacy.
It found that the campaign was most effective in the districts that got the most resources but it also had a greater impact in the highly-populated southern Indian states.
Indian authorities say the number of annual new HIV infections has declined by more than 50% during the past decade.
India also runs government Aids control schemes, many done in partnership with international donors.
There was some criticism of the Avahan project when it was launched for being poor value for money, AFP reports, but the study disputes this assertion.
The authors of the study were funded by the Gates Foundation, but as a peer-reviewed journal material for publication is examined by outside experts.

'First ever' fall in global TB

 

 

The number of people falling ill with tuberculosis has declined for the first time, according to the World Health Organization.

New figures show the global death toll has also fallen, to its lowest level in a decade, with major headway made in China, Brazil, Kenya and Tanzania.
But the WHO warns that a lack of funds threatens progress, especially in relation to multi-drug resistant TB.
UN Secretary-General Ban Ki-moon said there was no cause for complacency.
According to the WHO, the figures represent a significant milestone in the battle against a disease that infects one third of the world's population, although only a small proportion become sick as a result. Ban Ki-moon UN Secretary-General Ban Ki-moon

The number of people who died from tuberculosis peaked at 1.8 million people in 2003; by 2010 this had declined to 1.4 million.

Challenges ahead Spectacular progress was made in China, said the WHO, where the death rate fell by almost 80% between 1990 and 2010. In Kenya and Tanzania there has also been a substantial decline in the last decade after a peak linked to the HIV epidemic.
"This is major progress. But it is no cause for complacency," the UN Secretary-General said in a statement.
"Too many millions still develop TB each year, and too many die. I urge serious and sustained support for TB prevention and care, especially for the world's poorest and most vulnerable people."

• Tuberculosis is an infectious disease that usually affects the lungs
• It is transmitted via droplets from the lungs of people with the active form of the disease
• Symptoms of TB include coughing, chest pains, weakness, weight loss, fever and night sweats
• Tuberculosis is treatable with a course of antibiotics

Money is the key to the current progress, said the WHO, particularly domestic funding in larger countries like Brazil.

But the organisation warned that substantial challenges lie ahead, with a projected gap in funding of $1bn for 2012.
Another problem is the multi-drug resistant form of the disease.
A new rapid test is revolutionising diagnosis but there is a concern that only a small percentage of the people diagnosed with multi-drug resistant TB are receiving treatment.

Gilad Shalit: Israel and Hamas agree prisoner swap deal

Gilad Shalit has been held by Palestinian militants for the past five years 

Israel and Hamas have agreed a deal for the release of Sgt Gilad Shalit, an Israeli soldier held hostage by Palestinian militants for five years.

Prime Minister Benjamin Netanyahu said the deal had been reached after arduous talks, and that Sgt Shalit would be back with his family "within days".
Israel is likely to release hundreds of Palestinian prisoners in exchange.
Sgt Shalit was captured in a cross-border raid in 2006, and repeated attempts to free him have failed.
But Mr Netanyahu said in a national TV address: "We have concluded arduous negotiations with Hamas to release Gilad Shalit. He will be coming home in the next few days."
'Window of opportunity' The militant group Hamas, which runs Gaza, said in a statement that there were tens of thousands of people on the streets celebrating the deal.

It is hard to overstate how important the fate of Gilad Shalit is to Israel.
Almost every family in the country has a son or daughter serving in the military. Shalit's capture resonates with them all. He is probably the most recognisable figure in the country.
It is for that reason that the government is ready to swap him for - according to Hamas officials -1,000 Palestinians held in Israeli jails.
But after so many false dawns why now? The timing is important because Hamas has been on the back foot in recent months after Palestinian leader Mahmoud Abbas's attempt to get Palestinian membership at the UN gained huge support in the occupied territories.
This is their way of showing their more violent approach can also win results. What will be key politically for both sides is how many high-profile prisoners Israel has been ready to give up.

The group's leader Khaled Meshaal appeared on TV to hail the swap deal as a victory for the Palestinian people.

He promised to carry on working to free every Palestinian prisoner held in Israeli jails.
The BBC's Jon Donnison in Jerusalem says Sgt Shalit's family and the families of hundreds of Palestinian prisoners held in Israeli jails will not believe a deal has been done until their relatives are home.
The Israeli newspaper Haaretz quoted an unnamed official in Mr Netanyahu's office as saying that "a brief window of opportunity has been opened" that could lead to Gilad Shalit's release.
The official added: "The window appeared following fears that collapsing Mid-East regimes and the rise of extremist forces would make Gilad Shalit's return impossible."
An Israeli source involved in the talks was quoted by Reuters news agency as saying that the deal called for 1,000 Palestinians prisoners to be freed in two stages.
The first involves the release of 450 for the soldier, with the remaining 550 to be freed later.
Some of the 5,000 Palestinian prisoners held by Israel have been convicted of serious crimes, but others are being held without charge.
Israel's Channel 2 TV reported that both sides had shown greater flexibility in recent talks.
Indirect talks over 25-year-old Sgt Shalit's release - being mediated by Egypt and Germany - had focused on prisoner exchanges.
In October 2009, Hamas released a video of the soldier calling on Mr Netanyahu to do everything to free him.

Steve Jobs' Estranged Father Never Got Phone Call He Waited For

 

• View GalleryFILE - This 1977 file photo shows Apple co-founder Steve Jobs as he introduces the …
• View GalleryA man uses his iPhone to photograph flowers and a photocopy image of Steve Jobs that …estranged father, who had given up his infant son for adoption, had been hoping that his grown son would call him. That hope died today.

Abdulfattah John Jandali had emailed his son a few times in a tentative effort to make contact. The father never called the son because he feared Jobs would think the dad who had given him up was now after his fortune.

And Jobs never responded to his father's emails.

"I really don't have anything to say," Jandali, vice president at Boomtown Hotel Casino in Reno, Nev., told the International Business Times.

Jandali, a Syrian immigrant, had been quoted by the New York Post recently saying he didn't know until just a few years ago that the baby he and his ex-wife, Joanne Simpson, gave up grew to be Apple's CEO.

Jandali told the Post that had it been his choice, he would have kept the baby. But Simpson's father did not approve of her marrying a Syrian, so she moved to San Francisco to have the baby alone and give him up for adoption.

Steve Jobs Secretive Private Life

Jandali, who is 80, said at the time that he would have been happy to just have a cup of coffee with the son he never knew before it was too late. Stories of Jobs' battle with a form of pancreatic cancer and his liver transplant were public and Jobs' health had deteriorated to the point where he was forced to resign as CEO of Apple.
He was quoted as saying, "This might sound strange, though, but I am not prepared, even if either of us was on our deathbeds, to pick up the phone to call him."
Though he was one of the world's most famous CEOs, Steve Jobs has remained stubbornly private about his personal life, ignoring the media and the public's thirst for knowledge about him ever since he co-founded Apple Computer in 1976.
He was so successful at keeping the details of his life out of the celebrity pages that a Pew poll in June 2010 found that only 41 percent of Americans correctly identified Jobs as head of Apple. A CBS poll that year concluded that 69 percent of Americans didn't know enough about Jobs to have an opinion about him.
Jobs personal life was a story of extremes. Given up for adoption, he created a worldwide giant of a company in his garage, dated movie stars, and had a child out of wedlock who he denied for many years.
Many fans know that Jobs and his wife, Laurene Powell, have been married for more than 20 years; the two were married in a small ceremony in Yosemite National Park in 1991, live in Woodside, Calif., and have three children: Reed Paul, Erin Sienna, and Eve.

Tributes for Apple 'visionary' Steve Jobs

 

 

World and business leaders have been paying tribute to Apple co-founder Steve Jobs, who has died at the age of 56 from pancreatic cancer.

US President Barack Obama and Russian counterpart Dmitry Medvedev said Mr Jobs had changed the world.
Microsoft's Bill Gates said it had been "an insanely great honour" to work with him. Facebook founder Mark Zuckerberg remembered his "mentor and friend".
The Twitter microblog site struggled to cope with the traffic of tributes.
Apple itself said Mr Jobs had been "the source of countless innovations that enrich and improve all of our lives" and had made the world "immeasurably better".
Thousands of celebrities and ordinary people went on Facebook, Twitter and YouTube to record their tributes and memories of the man behind products such as the iPod, the iPhone, the iPad.

Continue reading the main story

The death of Mr Jobs could create a record for Twitter traffic.

Thousands of people all over the world have also been attending Apple stores to leave flowers, notes, and apples with a bite taken from them to mimic the company's logo.
Apple's leading rivals such as Microsoft, Google, Sony and Samsung all chipped in with glowing tributes.
GS Choi, chief executive of Samsung, which is embroiled in a major court battle with Apple on patents, said Mr Jobs was an "innovative spirit" who "introduced numerous revolutionary changes to the information technology industry".
In his statement, Bill Gates said: "The world rarely sees someone who has had the profound impact Steve has had, the effects of which will be felt for many generations to come. For those of us lucky enough to get to work with him, it's been an insanely great honour."

Peter Jackson BBC News, London

A single bunch of flowers - still in their plastic wrapper - were the only outward sign of the passing of Steve Jobs outside Apple's flagship London store in Covent Garden.
Ginnie Leatham, a brand director in the media industry, from West Sussex, hand delivered a single red Gerbera to staff inside the store.
She said: "I was really sad when I woke up this morning. I had a real lump in my throat and felt quite tearful.

"I was thinking about it on my commute into work. I always walk past the Apple store and I just thought 'I'm going to stop'.Mr Zuckerberg wrote on Facebook: "Steve, thank you for being a mentor and a friend. Thanks for showing that what you build can change the world. I will miss you."

His comments were "liked" by more than 200,000 people within hours.
In his own tweet, Barack Obama wrote: "There may be no greater tribute to Steve's success than the fact that much of the world learned of his passing on a device he invented."
Web users in China have reportedly posted almost 35 million online tributes.
Tim Cook, who was made Apple's CEO after Mr Jobs stood down in August, said his predecessor had left behind "a company that only he could have built, and his spirit will forever be the foundation of Apple".
UK Prime Minister David Cameron said: "Steve Jobs transformed the way we work and play; a creative genius who will be sorely missed."
New York mayor Michael Bloomberg said the US had "lost a genius who will be remembered with Edison and Einstein".
News Corp's Rupert Murdoch said: "Steve Jobs was simply the greatest CEO of his generation."

Apple co-founder Steve Wozniak will remember Mr Jobs for "knowing what made sense in a product"

People also gathered outside Mr Jobs's home in California's Silicon Valley to lay floral wreaths, while flags were flown at half mast outside the Apple headquarters in Cupertino, California.
A statement from Mr Jobs's family said they were with him when he died peacefully on Wednesday.
"In his public life, Steve was known as a visionary; in his private life, he cherished his family," they said, requesting privacy and thanking those who had "shared their wishes and prayers" during his final year.
Face of Apple Mr Jobs built a reputation as a forthright and demanding leader who could take niche technologies - such as the mouse and graphical user interface, using onscreen icons rather than text - and make them popular with the general public.

Continue reading the main story

Life of Steve Jobs

• Born in San Francisco in Feb 1955 to students Joanne Schieble and Syrian-born Abdulfattah Jandali - adopted by a Californian working class couple
• Had a summer job at Hewlett-Packard while at school - later worked at Atari
• Dropped out of college after six months and went travelling in India, where he became a Buddhist
• Launched Apple with school friend Steve Wozniak in 1976 - first Apple computer sold the same year
• Left Apple amid disputes in 1985 but returned in 1996 and became CEO in 1997
• Bought Pixar animation company in 1986 for $10m
• Married in a Buddhist ceremony in 1991 - has three children with his wife and a daughter from a previous relationship
• Had a personal wealth estimated at $8.3bn (£5.4bn) in 2010
• Diagnosed with pancreatic cancer in 2003, and after three periods of sickness leave, resigns as Apple CEO in August 2011 

He introduced the colourful iMac computer, the iPod, the iPhone and the iPad to the world. His death came just a day after Apple unveiled its latest iPhone 4S model.

With a market value estimated at $351bn (£227bn), Apple became the world's most valuable technology company.
More than almost any other business leader, Mr Jobs was indistinguishable from his company, which he co-founded in the 1970s.
As the face of Apple, he represented its dedication to high-end technology and fashionable design.
And inside the company he exerted a level of influence unheard of in most businesses.
Mr Jobs also provided major funding to set up Pixar Animation Studios.
In 2004, Mr Jobs announced that he was suffering from pancreatic cancer. He had a liver transplant five years later.
In January, he took medical leave, before resigning as CEO in August and handing over his duties to Mr Cook.
In his resignation letter, Mr Jobs said: "I believe Apple's brightest and most innovative days are ahead of it. And I look forward to watching and contributing to its success in a new role."
However, Mr Jobs stayed on as Apple's chairman.
Despite his high profile, he remained fiercely protective of his private life.
He married his wife Laurene in 1991, and the couple had three children.
Mr Jobs also leaves a daughter from a previous relationship, and as an adult he discovered that he had a biological sister, US novelist Mona Simpson.

BT turns up broadband speed dial

  Fibre optics that run all the way to homes offer speeds of up to 1Gbps 

BT is to launch a fibre optic service that will deliver speeds of up to 300Mbps (megabits per second) to some UK homes by spring next year.

The service is only likely to be made available to a minority of people with others promised speed boosts of up to 80Mbps.
The UK government welcomed the news.
But broadband figures reveal the UK still has a long way to go to achieve its goal of being the fastest in Europe by 2015.
BT said it will begin trialing the super-fast technology known as Fibre-to-the-Premises (FTTP) this month.
It is investing £2.5 billion to make fibre broadband available to two thirds of UK premises by the end of 2015 but only around a quarter of these will benefit from FTTP.
The majority of its money is going into Fibre-to-the-Cabinet technology (FTTC), which is slower because it uses copper wire to connect the street cabinet to users' homes.
Full fibre FTTC currently has a top speed of 40Mbps although BT promised to double that to around 80Mbps next year.
Currently BT's fibre services serve around 5 million homes but take-up has been sluggish. Its super-fast service BT Infinity service has just 200,000 users so far.
Seb Lahtinen, co-founder of broadband news site ThinkBroadband, said there is pent-up demand for faster broadband.
"It is likely to be driven by high definition video-on-demand content as well as households where many different family members are using the internet at the same time," he said.
He welcomed BT's decision to roll out faster fibre.
"Wider availability of 'full fibre' FTTP services is clearly an important milestone as it represents a move to leading edge technology capable of delivering services beyond speeds which one could imagine requiring in the next decade," he said.
Trials of FTTP will be small-scale at first, with the service going live this month in just six areas - Ashford in Middlesex, Bradwell Abbey, Chester South, Highams Park, St Austell and York.
BT Openreach chief executive Liv Garfield said the announcement was "a significant step in the UK's broadband journey."
"These developments will transform broadband speeds across the country and propel the UK up the broadband league tables," she added.
Eastern Europe It has some way to go though, according to figures released last week by the Fibre-to-the-Home Council for Europe.
Penetration rates of FTTP technology in the UK are too low for it to feature in the league table.
Lithuania leads the European FTTP ranking with 26.6% of households subscribing to the technology, followed by Norway, Sweden, Slovenia, Russia, Slovakia, Latvia, Bulgaria, Estonia and Denmark, in that order. Each of the top ten FTTP nations has a penetration rate of at least 6%.
A handful of rival companies already offer FTTP technologies in the UK, but they tend to be limited to new housing developments.
The government is keen that rural areas should not fall behind when it comes to super-fast broadband and has made £530m available to boost investment in these areas.
To encourage alternatives to BT, it forced the telco to open up its ducts and overhead poles to rivals.
Fujitsu pledged it would offer a rural FTTP network run on BT's infrastructure but the sticking point appears to be what BT will charge for access to its ducts and poles.
Communications minister Jeremy Hunt recently urged the company to hurry up and sort the issue out.
For its part, BT told the BBC that it was in talks with regulator Ofcom regarding the prices and "hoped those discussions will be concluded shortly".

Samsung wants iPhone 4S banned in France and Italy

Samsung claims Apple failed to license patented technology in the iPhone 4S 

Samsung is seeking an injunction to get the new iPhone 4S banned from sale in France and Italy.

It claims that Apple has used 3G wireless technology, which Samsung invented, without paying for it.
A patent war between the companies has been rumbling on for months in courts around the world.
Apple has obtained temporary embargoes on its rivals' products in Australia and Germany and is seeking similar rulings in several other countries.
In a statement, Samsung said: "Apple has continued to flagrantly violate our intellectual property rights and free ride on our technology, and we will steadfastly protect our intellectual property."
Patent law blogger Florian Mueller warned that Samsung was putting the cart before the horse by seeking an injunction before negotiating terms.
"Imagine what would happen if every participant in a standard-setting process could later shut down entire telecommunications networks even if the alleged infringers are willing to pay a royalty to be determined, in the event of a commercial disagreement between the parties, by a court of law," wrote Mr Mueller on his
Sales bans Samsung's claim centres around two patents covering Wideband Code Division Multiple Access (WCDMA), part of the iPhone's 3G wireless connectivity.

Samsung's Galaxy Tab 10.1 has also been the subject of patent cases

Because the technology is essential to the functioning of modern phones, Samsung is obliged to license it to other manufacturers under Fair, Reasonable and Non-Discriminatory (FRAND) terms.
Conversely, the patents being enforced by Apple against Samsung in Germany, the Netherlands and Australia relate to specific innovations which it is not obliged to license - primarily around its touchscreen user interface.
It has also successfully argued before the courts that the look and feel of Samsung's Galaxy Tab gave a "clear impression of similarity.
As a consequence of the actions:

• The Galaxy Tab 10.1 is currently banned from sale in Germany.

• A ban on sales of Samsung smartphones is due to come into effect in the Netherlands in October.

• Samsung has postponed its tablet launch plans in Australia while its legal battle there is ongoing.

Many observers believe that Samsung is walking a fine line between standing-up to Apple and avoiding jeopardising valuable contracts with its occasional foe.
Samsung supplies parts for many of Apple's devices, including screens for some of its smartphones and tablets. The two companies are said to have agreed a components deal in February worth $7.8bn (£5bn).

UBS prepares 'disciplinary action' as more heads roll

 

UBS is considering shrinking down its investment bank, where the alleged incident took place 

UBS has said it is preparing to take "disciplinary action" against individuals deemed responsible for an alleged rogue trading incident.

It comes as the joint heads of the Swiss bank's equities division, in which the incident took place, quit.
Francois Gouws and Yassine Bouhara took
Equities trader Kweku Adoboli was last month arrested for allegedly losing $2.3bn (£1.5bn) in unauthorised trades.
The two UBS executives to fall on their swords over the incident only took up their posts last year, with Mr Bouhara having been poached from rival Deutsche Bank.
Their exit follows the departure of UBS chief executive, Oswald Gruebel, last week.
They will be replaced by Mike Stewart, who was recruited from another rival firm, Bank of America Merrill Lynch, in July.
"In addition, appropriate disciplinary action will be taken against other individuals in the equities business as a result of the incident," said the bank.
"UBS also expects to take disciplinary action against responsible staff in other functions."
UBS is also considering shrinking down its investment banking business - of which equities trading is a key part - in order to refocus it on purely serving the needs of its enormous network of wealthy individual clients.

IMF warns that countries may need to reverse cuts

Changing economic times will mean a change in economic policy, the IMF said 

Europe's stronger economies should avoid imposing drastic budget cuts at the expense of growth, a report by the International Monetary Fund has said.

If things worsen in the UK, Germany or France, they should "consider delaying" cuts, because they can borrow "at historically low" interest rates.
The IMF also warned that a recession in Europe in 2012 could not be ruled out.
Separately, a Markit PMI study said the eurozone's service sector shrank for the first time in two years last month.
The IMF's warning came in its latest 100-page report on the economic outlook for Europe.
"Finding a durable solution to the euro area sovereign crisis has become more than overdue, 
"(This) will require some difficult decisions to improve crisis management and a demonstration of unity behind the project of economic and monetary union that will convince markets.
"The pursuit of nominal deficit targets should not come at the expense of risking a widespread contraction in economic activity," the IMF said.
"If (economic) activity were to undershoot current expectations and risk a period of stagnation or contraction, countries that face historically low yields (for example, Germany and the UK) should also consider delaying some of their planned consolidation."
The IMF's Europe director, Antonio Borges, said that Europe had edged closer to recession. "We still predict growth in 2012, but very modest," he said.
But if economies go into reverse "all those countries with fiscal leeway might want to consider" changes in fiscal policy, he said.
'Spreading malaise' The weakness of the eurozone's economic recovery was underlined in data from the latest Markit/CIPS Services Purchasing Managers' Index.
For September, the index fell to 48.8, from 51.5 in August, its lowest reading since July 2009. A reading below 50 indicates contraction.
Markit said that a service sector downturn that began in smaller members of the 17-nation eurozone had spread throughout the bloc.
"The malaise is spreading to the core, where surging rates of expansion earlier in the year have turned rapidly into contraction in Germany and only very modest growth in France," said Chris Williamson, chief economist at Markit.

Which Classic Character Is Robert Downey Jr. Ditching Iron Man For?

Robert Downey Jr. has it all figured out.

Or, he will, once he slips into the guise of defense attorney extraordinaire, Perry Mason.

The Iron Man star is looking to suit up—in a regular suit this time—as the brilliant lawyer in a Warner Bros. film based on the character created by novelist Erle Stanley Gardner and first played on TV by Raymond Burr, according to trade reports. Los Angeles—the birthplace of noir—and feature classic Perry Mason characters like his loyal secretary, Della Street; district attorney and frequent Mason nemesis Hamilton Burger; and private investigator Paul Drake.

A dozen actors have played Mason over the last 80 years on both the big and small screens, but, do you think it's safe to say that Downey will be the most sardonic, singular presence of the bunch?

Before he gets a chance to draw out confessions on the stand, though, Downey has to wrap production on The Avengers, his third outing as Tony "Iron Man" Stark (Iron Man 3, meanwhile, is penciled in for a May 2013 release). And before we get to see the fruits of that labor, Downey will be kicking arse and figuring things out the old old-fashioned way in what's becoming his other hit franchise, Sherlock Holmes: A Game of Shadows, in theaters Dec, 16.

In kinda related Iron Man news, former franchise helmer Jon Favreau is eyeing a proposed sitcom called Tweaked—about single parents navigating life and love—as his next directing venture.

What's Going On With Ashton Kutcher and Demi Moore's Marriage?

 

If you've picked up a magazine lately, you've probably heard the rumors. Heck, if you've picked up a magazine, surfed the 'net, watched an entertainment news show or just stood in line at the supermarket, you've probably heard the rumors: trouble seems to be brewing in Ashton Kutcher and Demi Moore's marriage.

Actually, to hear the tabloids tell it—it's finished brewing. Now it's just steeped. Now, this isn't the first time their marriage has been hit with rumors of infidelity, but the sheer force of this round of ammunition brought by the tabloids is certainly stronger than anything they've come under fire for before.

As it happens, the usual suspects have all devoted covers to the saga: Star, In Touch Weekly, Life and Style, Us Weekly and even People have delved into the seemingly indefatigable rumor that the couple is, at the very least, temporarily separated in the wake of Kutcher allegedly straying while in San Diego the night of Sept. 23—incidentally, the couple's sixth wedding anniversary.

So why does this particular batch of rumors seem to be sticking?

Well, let's just say Demi and Ashton's relative silence on the matter hasn't exactly proven golden. While they certainly may be attempting to take the high road in this private matter, it's a slightly atypical response given their usual aptitude to tweet out reactions to any and everything in their daily life. (Demi, after all, has shown no qualms about tweeting out topless shots of herself on a somewhat regular basis—not exactly the moves of someone eschewing the spotlight or hiding their private life.) That they're doing so now has struck some as noteworthy.
Then there's the photos. Whether or not anything untoward happened, they do at least serve as proof that Ashton spent his wedding anniversary away from his wife Demi.

Star magazine published the photos in its current issue of Ashton with Sara Leal, the girl he allegedly hooked up with last month, and several other blondes at Fluxx nightclub. However, none of the shots show anything remotely close to indecent behavior.

Though Leal hasn't come forward with a story—she has, however, reportedly lawyered up—her friends haven't shown the same discretion, with one of her so-called pals Brooke Yancy tweeting just a week after the alleged incident, "Can't believe my friend Sara leal slept with Ashton kutcher and is now selling the story for $250,000." (The tweet, posted under the name Bkyancy, has since been removed.)

Meanwhile, Life and Style has taken a different tactic, claiming via an anonymous family friend that the duo's allegedly strained relationship had fallen apart weeks before the supposed cheating incident, and that Ashton has since moved out of their shared pad.

Possibly backing those rumors—or, conversely, proving that Leal is simply a longtime pal, photos have even surfaced of Ashton and Sara leaving the Roosevelt Hotel in Hollywood back in June.

Meanwhile, People has sources claiming that the duo's marriage—which they describe as "flexible"—is indeed strained, but notes that while the couple has separated for now, there has been no talk of divorce or plans for a formal split.

One thing that can't be denied: since the rumors have surfaced, Ashton and Demi have still been spotted together, albeit not overly frequently: Moore attended a Two and a Half Men party at Chuck Lorre's house in support of her husband on Sept. 19, and just last week the couple entered the Kabbalah Centre together to celebrate Rosh Hashanah.

Otherwise, though, the couple has been doing their best to stay under the radar, with Ashton simply tweeting last month two not-so-cryptic messages:

"When you ASSUME to know that which you know nothing of you make an ASS out of U and ME," he wrote Sept. 29, the same day he posted a link to Public Enemy's "Don't Believe the Hype."

Unfortunately, the tabloids don't appear to have heeded those words.

Michael Jackson Drug-Induced Rambling: "I Had No Childhood"

Michael Jackson wanted to dedicate his "This Is It" concerts to his children -- and in a heartbreaking conversation Dr. Conrad Murray recorded weeks before the singer died, MJ claims, "I love them because I didn't have a childhood."

You can hear MJ's voice in the recording -- slurred, incoherent -- explaining how he wanted to outdo The Beatles and Elvis with his final concerts, and go down in history as the greatest entertainer who ever lived.

Michael becomes extremely emotional while speaking about his children -- claiming, "I had no childhood. I feel their pain. I feel their hurt."

Murray recorded the conversation on his iPhone on Sunday May 10th, 2009 at 9:05 AM. It's unclear why -- but according to prosecutors, it documents MJ under the influence of "unknown agents." It also shows Murray was familiar with Michael in altered states of mind.

At one point in the clip, Murray asks Michael if he's okay -- and Michael responds, "I am asleep."

The recording -- a clip of which Prosecutor David Walgren played during his opening statement -- was uncovered by investigators after they seized Murray's device.

Michael Jackson Estate Floats Katherine $6 Million To Pay Off S. Korean Concert Suit

Call Katherine Jackson the Six Million Dollar Mama -- because the Michael Jackson Estate just loaned her that amount to pay off her settlement with a South Korean newspaper.

According to an order entered by the court -- the Estate is giving Katherine the $6 mill to help her wrap up a 17-year old lawsuit filed against her by the Segye Times.

The paper originally won a $4 million judgment against Katherine and others for failing to deliver on a promised Jackson family concert -- but with interest she would owe more than $14 million.

Katherine's attorneys and the paper agreed on a settlement of $6 million -- which clearly she couldn't pay without help from the Estate.

There are strings attached -- according to court docs, Katherine must repay the full amount to the Estate, plus interest, within one year. But check this out -- she got a hell of a deal -- the interest rate is only .16%. 

King of Infomercials' Don Lapre Slit Own Throat with Razor

King of Infomercials" Don Lapre died from a self-inflicted razor blade wound to the neck, law enforcement sources tell TMZ.

We're told jail guards found piles of blood-soaked clothing lining Don's bed in his Arizona jail cell. Sources say ... officials believe Don used the clothing to conceal the bleeding in order to thwart efforts to save his life.

Lapre was found dead in his cell Sunday morning. The autopsy was completed yesterday.

As we previously reported, Don's mother claims her son had been treated for severe depression after the TV pitchman was jailed in a vitamin fraud case. She also claims jail officials took away his meds, which may have played a role in his apparent suicide.

Chris Christie rules himself out of White House race

  The New Jersey governor won his election in November 2009 

New Jersey Governor Chris Christie has announced that he is not running for the White House, after weeks of calls for him to enter the race.

Mr Christie held a news conference at the governor's office, where he told reporters: "Now is not my time."
The Republican has spent the past week reconsidering calls from the party to run for president.
He would not be drawn on endorsing any of the Republican pack, currently led by Mitt Romney and Rick Perry.
"In the end what I've always felt was the right decision remains the right decision today," he said.
"Now is not my time. I have a commitment to New Jersey that I simply will not abandon."
He added: "You're stuck with me".
'Too late' Encouragement from Republicans like Henry Kissinger, Nancy Reagan and Barbara Bush had led him to reconsider a bid.
But correspondents said that jumping into the race a few weeks before the filing deadline would have left Mr Christie far behind his rivals in fundraising and organising.
The Associated Press news agency reports that advisers to Mr Christie had said his decision was in part because it would have been too late to set up the needed infrastructure.

Although time has ticked away, leaving virtually no chance of another candidate coming in, Republicans still cast around for a saviour ”

Mark Mardell BBC North America editor 

Elected governor in 2009, Mr Christie has a reputation as a tough-talking, fiscally conservative governor.

Mr Christie did not rule out a future presidential bid and used his moment in the national spotlight to criticise President Barack Obama.
"This is an example of someone who has failed the leadership test," Mr Christie said. "You can't be taught how to lead and make decisions."
His announcement will swing focus back to the two leaders of the race for the Republican nomination to challenge Mr Obama in the November 2012 presidential elections.
But Texas Governor Perry's lead has proved fragile after he was criticised for controversial remarks on the campaign trail and over his TV debating performance.
And former Massachusetts Governor Romney has struggled to win over Tea Party supporters and conservative Republicans.
Meanwhile, businessman Herman Cain's profile has risen after his strong debating performances.

Ben Bernanke says US economy 'close to faltering'

  The Fed chairman also lent support to critics of China's exchange rate policies 

US Federal Reserve Chairman Ben Bernanke has told Congress that the US economy is "close to faltering" and more action may be needed.

Giving testimony to the US legislature, he said the Fed was "prepared to take further action as appropriate" to bolster the recovery.
His comments come after the Fed already decided to shift $400bn of investments into longer-term government debt.
Stock markets responded positively, with the Dow Jones rallying over 1%.
China 'blocking' He said the switch into longer-term government debt announced last month - dubbed Operation Twist - was the equivalent of a half-percentage-point cut in interest rates, and gave a "meaningful, but not an enormous support to the economy".
But he warned that the eurozone debt crisis, as well as overly hasty spending cuts by the federal government, risked undermining the US recovery.
He did not elaborate what further action the Fed might take if the economy continued to weaken, but he said that the US central bank's monetary policies were "no panacea". Last Updated at 04 Oct 2011, 18:43 GMT *Chart shows local time

value	change	%
10491.41	- -163.89	- -1.54
Top winner and loser
E.I. du Pont de Nemours and Co.
38.86	+ +0.37	+ +0.96
Bank of America Corp.
5.30	- -0.23	- -4.16

The Fed chairman also appeared to lend support to those seeking to take action against China's policy of buying up US debts - which has the effect of holding down the value of the yuan at a more competitive exchange rate.

"Chinese policy is blocking what might be a more normal recovery process in the global economy," said Mr Bernanke, who said China was shifting demand away from the struggling US and European economies.
The US Senate has just begun a week-long debate on a bill that would threaten China, and other countries accused of keeping their currencies unfairly cheap, with trade sanctions.
On the subject of the eurozone debt crisis, Mr Bernanke said there was little help the US could offer.
"The problems are not really economic, they're political," he said. "Because what they are trying to do is find solutions that are acceptable to 17 different countries, which you can imagine is very difficult."
He said that the US was an "innocent bystander" to the crisis, and while the country's direct exposure to any debt default by Greece was limited, the real risk was that a disorderly default could trigger a run on other eurozone governments and a banking crisis, which would hit the US badly.

Eurozone delays decision on next Greece payout

 

Last Updated at 18:57 GMT

Dow Jones	10499.78	Down	-155.52	-1.46%
Nasdaq	2322.47	Down	-13.36	-0.57%
FTSE 100	4944.44	Down	-131.06	-2.58%
Dax	5216.71	Down	-159.99	-2.98%
Cac 40	2850.55	Down	-76.28	-2.61%
BBC Global 30	5134.94	Down	-77.13	-1.48%

Marketwatch ticker

Data delayed by 15 mins

Continue reading the main story

Eurozone finance ministers have delayed making a decision on giving Greece its next instalment of bailout cash, sending European shares down sharply.

It came after Greece said it would not meet this year's deficit cutting plan.
A meeting set for 13 October, when finance ministers had been expected to sign off the next Greek loan, has now been cancelled, said BBC Europe correspondent Chris Morris.
French shares fell 2.6%, German stocks 3%, and the UK's FTSE 100 2.6%.
US markets also opened sharply lower, but had recouped most of their losses by lunchtime in New York.
'No default' As a result of the decision by finance ministers, Greece may not get its next loan tranche until November.
Its Finance Minister, Evangelos Venizelos, said that should not cause any difficulties as the Greek government had no funding problem until November.
Greece had previously said it needed the money by mid-October to avoid defaulting on its loans.
But Eurogroup chairman Jean-Claude Juncker said at a meeting of finance ministers in Luxembourg that the country would be able to meet its financial obligations as long as it received the next 8bn-euro (£6.9bn; $10.9bn) tranche in November.
Mr Juncker also ruled out the possibility of a debt default by Greece - denying rumours that some countries, including Germany, had been pushing for this.

Jane Foley, strategist at Rabobank, said: "The market is increasingly worried about the potential of the Greek crisis and the calamity that could be created if there was a messy default." ”

Jane Foley Strategist at Rabobank 

But he warned that Greece's private sector creditors could expect greater losses on their Greek sovereign debt holdings than the 21% "haircut" agreed in July.

The private sector agreed to participate in a second bailout of Greece, with the eurozone and IMF providing 109bn euros in new funds.
Mr Juncker said: "As far as PSI [private sector involvement] is concerned, we have to take into account that we have experienced changes since the decision we have taken on 21 July."
The meeting also appeared to reach a deal to let Finland receive collateral as security for its contribution towards the eurozone bailout fund - the European Financial Stability Facility.
Mr Venizelos said Greece would offer Finland 880m euros of bonds as loan collateral.
Finland's Prime Minister, Jyrki Katainen, said the collateral model it would use to take part in Greece's bailout package would be useful in other possible aid packages in the future.
Mr Katainen told reporters: "This model is a good one... I think it could be used in future as well."
The Finns had threatened to block further bailouts to Greece unless it received this special arrangement.
Banking falls Banking stocks were again among the biggest fallers, due to concerns about their exposure to Greek government bonds.
In France, Natixis ended Tuesday 9.4% lower, while BNP Paribas fell 5.2% and Credit Agricole 6.5%.
In the UK, Barclays dropped 7.6%.
Meanwhile, the Franco-Belgian bank Dexia, the bank the market judges most vulnerable to Greece, saw its shares tumble another 22%, to just over 1 euro.
Dexia is holding an emergency board meeting amid serious concerns, while the governments of France and Belgium, which are joint shareholders in Dexia, moved to guarantee its debts.
Jane Foley, strategist at Rabobank, said: "The market is increasingly worried about the potential of the Greek crisis and the calamity that could be created if there was a messy default.
"Dexia's problems stress the point that for eurozone leaders the Greek crisis is less about Greece and more about the potential for it to spark a much more widespread banking and economic disaster."
Falling sales On Monday, Athens announced that the 2011 deficit was projected to be 8.5% of GDP, down from 10.5% in 2010 but short of the 7.6% target set by the EU and IMF.
The government, which on Sunday adopted its 2012 draft austerity budget, blamed the shortfall on a worsening economy, which is expected to contract by 5.5% rather than the 3.8% forecast in May.

Use the dropdown for easy-to-understand explanations of key financial terms:

Debt restructuring GO

Debt restructuring

A situation in which a borrower renegotiates the terms of its debts, usually in order to reduce short-term debt repayments and to increase the amount of time it has to repay them. If lenders do not agree to the change in repayment terms, or if the restructuring results in an obvious loss to lenders, then it is generally considered a default by the borrower. However, restructurings can also occur through a voluntary debt swap, in which case it can be very hard to determine whether it counts as a default. 

Data released on Tuesday showed the effects of the austerity programme on household spending.

Greek retail sales fell 4.3% in the year to July, although the figure was far worse in June when sales were 11.4% lower year on year.
Inspectors from the International Monetary Fund (IMF), European Union (EU) and European Central Bank are currently in Athens to examine Greece's financial position.
'Unanimously approved' The Greek finance ministry said on Sunday that its unpopular austerity measures would have to be adhered to.
It said: "Three critical months remain to finish 2011, and the final estimate of 8.5% of GDP deficit can be achieved if the state mechanism and citizens respond accordingly."
It released figures for 2012's projected deficit, putting it at 6.8% of GDP, also short of the 6.5% target.
The data came as the government met to approve Greece's draft budget for next year.

Crisis Countdown

• 3 Oct: Original deadline for Greece to receive next 8bn-euro tranche of bailout funds;
• Next few days: Troika decides whether to recommend that Greece gets the next tranche;
• 9 Oct: Leaders of Germany and France to hold talks;
• 14-15 Oct: G20 finance ministers meet in Paris;
• 17 Oct: Slovakia votes on whether to expand the European Financial Stability Facility. Members of the coalition government have vowed to block expansion;
• 17-18 Oct: European Union summit in Brussels;
• End of Oct: Greece to get next bailout money - assuming no more hurdles;
• 3-4 Nov: G20 summit in Cannes, France. World leaders, including Barack Obama, want evidence that Europe have got control of debt crisis

The cabinet meeting also approved a measure to put 30,000 civil service staff on "labour reserve" by the end of the year.

This places them on partial pay with possible dismissal after a year.
This measure, along with other wage cuts and tax rises, have been part of a package intended to persuade the so called "troika" of the EU, IMF and ECB to continue with the bailouts.
The Greek austerity measures are hugely unpopular at home and have led to a wave of strikes and protests.
Protesters again blocked the entrance to several ministries on Tuesday, including the Finance and Transport ministries.
Many Greeks believe the austerity measures are strangling any chance of growth.