081015-UK Unemployment Soars

UK Unemployment Soars

UK unemployment rose at its fastest pace since the early 1990s recession and experts expect even bigger rises ahead.

The jobless figure in Britain now stands at 5.7 percent, some analysts say it could peak around eight percent in early 2010.

Banking and construction firms have been toughest hit by the financial turmoil and housing slump but jobs are being cut across the economy.

Tough work ahead for British Prime Minister, Gordon Brown, (who) got a boost after his plan to recapitalise financial institutions was taken up around the world.

World governments have pledged USD 3.2 trillion to shore up banks and try to make them lend to each other again.

But although the banking crisis may have been averted, recession has not - a fact market seized upon.

Indices across Europe were well in the red with the FTSEurofirst 300 index was down over six percent.

Although only a handful of economies are officially in recession, the world's three biggest - the USA, Japan and Germany, are on the brink.

But MF Global analyst Ian Jenkins thinks some may remain relatively unscathed.

SOUNDBITE: MF Global Head of Spread Betting, Ian Jenkins saying (English):

"Maybe the ones that are going to fare slightly better than the rest are the South Americans and the emerging economies because once they've dusted themselves down they still do have a voracious consumptive base - we don't. Our consumption is going to go down. For the last year or so, or for the last ten years, has all been built on our consumption and the use of credit. They haven't gone down that road and I think they'll probably fare better."

And case in point, European new vehicle registrations fell 8.2 percent year on year in September, despite two extra working days.

The auto manufacturer's association said carmakers are finding it increasingly hard to finance their daily operations and invest in new technologies for greener vehicles - as consumers become unwilling to make large purchases or just can't find lenders willing to finance them.

rise

Verb

[rising, rose, risen]

to move from a lower to a higher position or place
pace - the rate of moving (especially walking or running)
tough strong; not easily broken, worn out etc Plastic is a tough material. hart
turmoil - a violent disturbance; "the convulsions of the stock market"
slump a severe decline in commercial activity or prices; depression
shore up - support by placing against something solid or rigid; "shore and buttress an old building"

avert
1. To turn away: avert one's eyes.

2. To ward off (something about to happen); prevent: averted an accident by turning sharply. See Synonyms at prevent.

seize (sometimes foll. by on, upon)to understand quickly: she immediately seized his idea
on the brink of very near, on the point of: on the brink of disaster

unscathed - not injured
fare To go or happen: How does it fare with you?
dust To remove dust from by wiping, brushing, or beating: dust the furniture.

081015-usa-retailsalesdrop

US Retail Sales Drop

A day after the U.S. government outlined a plan to invest (billions) ($250 billion) in the country's banks U.S. stocks stumbled in early Wednesday as bleak retail sales numbers took center stage. Retail stores saw a 1.2% decline last month--the biggest pullback in more than three years as consumers, fearing a recession, kept a tight grip on spending. The headline number, as well as sales excluding autos, was far worse than economists expected. Some said the report pointed to a strong chance of negative GDP growth in the third quarter and possibly another interest rate cut up to 50 basis points in the next few months.

Added to the ugly retail sales report--a regional manufacturing gauge from New York state hit its lowest level since its inception in 2001.

Both overshadowed a dip in wholesale inflation for September as well as a strong earnings report from Coca-Cola.

Also turning in quarterly numbers, JP Morgan and Wells Fargo. The two posted better than expected earnings despite higher credit losses. Meantime Delta's third quarter loss was wider than forecast in the face of record high oil costs over the summer. Executives said looking ahead that the recent slide in oil prices could save Delta money but that the outlook for next year is still murky.

Jeanne Yurman reports from New York.

stumble 

1. to trip and almost fall while walking or running

2. to walk in an unsteady or unsure way

3. to make mistakes or hesitate in speech

bleak Providing no encouragement; depressing: a bleak prospect.
grip

1. a very tight hold: he felt a grip at his throat

2. the style or manner of holding something, such as a golf club or tennis racket

3. power or control over a situation, person, or activity: rebel forces tighten their grip around the capital
GDP gross domestic product
gauge - a measuring instrument for measuring and indicating a quantity such as the thickness of wire or the amount of rain etc.

inception The beginning of something, such as an undertaking; a commencement. See Synonyms at origin.
overshadow To make insignificant by comparison; dominate.
wholesale To sell in large quantities for resale.
outlook Expectation for the future: the long-term outlook for economic growth.
murky Dark, dim, or gloomy: a murky dungeon. See Synonyms at dark.

081013-japan

Asian markets surge

A bit of a bounce for battered stock markets.

Asian shares were cautiously higher on Monday after G-7 officials took steps to repair the world's broken financial system.

Many nations agreed to buy stakes in troubled banks over the weekend.

French President Nicolas Sarkozy:

(SOUNDBITE) (French with English translation) FRENCH PRESIDENT NICOLAS SARKOZY SAYING:

"We need to ensure that healthy banks can find the financing conditions which gives them the support needed to lend to firms and to household. To that end eurozone governments will give public guarantees to banking re-financing operations.

Australian markets jumped at the open - the first major world market to react to statements over the weekend.

Hong Kong stocks opened higher, but pared gains as investors again became worried about the outlook for the global economy.

Resource stocks were among the biggest gainers - with Australian gold firms like BHP Billiton up sharply.

China stocks fell in early trade -- Shanghai investors remained mired in worries about the global economy. Many businesses are braced for a sharp slowdown in exports to the U.S. and Europe.

Tara Joseph-Hui reporting for Reuters.

081010-Pressure On G7 Nations

Pressure On G7 Nations

Behind the sturdy columns of the Treasury Department in Washington, finance ministers and central bankers of the world's seven richest democracies are in crisis mode - what else can they do to calm world markets running on fear and panic.

Asian and European stocks are again, day seven, in free fall, tracking the Dow's extraordinary plunge.

Citing a lack of buyers, Paris shut itself down right after it opened.

Group of Seven economies have thrown everything at the system to try to stem the slide - rescuing banks, slashing interest rates - but nothing's worked; investors are still spooked.

Why from Reuters Treasury Editor Nick Edwards.

(SOUNDBITE) (English) NICK EDWARDS, REUTERS TREASURY EDITOR, SAYING:

"It's because markets still don't have what they are looking for, which is a global security blanket. That's what investors need. It's what policymakers keep talking about but as yet there has been no single global policy response. Lots of ad hoc, lots of individual measures but really it's a single, unified self-reinforcing response that investors are looking for."

On the front page of a British broadsheet, an appeal for such action written by Prime Minister Gordon Brown.

"Ground-breaking" is how he describes his move to take a government stake in stricken banks - an 880 billion dollar package that aims to restore trust between banks and get them lending again, to each other and their customers.

Economist David Kern of the British Chambers of Commerce says that and more government intervention is needed.

(SOUNDBITE)(English) DAVID KERN, ECONOMIC ADVISER, BRITISH CHAMBERS OF COMMERCE, SAYING:

"What is important is for the authorities to demonstrate that if that's not enough now more will be forthcoming. At the end of the day, the governments are more powerful than the markets which are testing them."

For now, the balance of power is tipping the way of the free-falling markets.

If the G7 doesn't manage to come up with some impressive, united moves, speculation may move on to how long and deep a global recession will be.

Susan Flory, Reuters

sturdy strongly built or made
plunge - a steep and rapid fall
stem to stop or hinder the spread of (something): to stem the flow of firearms
slashing cut with a sharp quick stroke, gash, wound; reduce, lower; make sharp quick strokes; strongly criticize; create a way by cutting
spook - frighten or scare, and often provoke into a violent action; "The noise spooked the horse"
blanket - anything that covers; "there was a blanket of snow"
broadsheet a newspaper in a large format
stake a strong stick or post, especially a pointed one used as a support or as part of a fence.
stricken - grievously affected especially by disease

081010-China Confident Over Crisis

China Confident Over Crisis

China is "fully confident and capable" it can overcome current economic difficulties, a top official said on Friday.

Vice Premier Wang Qishan was quoted by state media saying that China will work closely with other countries to guard the stability of the global financial system.

Wang did not elaborate on steps Beijing might take to help calm the worldwide financial storm, but his comments underline that China may yet play an important part in confronting a crisis from it has been largely sheltered because of its capital controls.

China's central bank cut interest rates earlier this week, and speculation is swirling Beijing could pledge to hold onto its vast dollar assets and even buy more to help fund the massive bailout of the U.S. financial system now under way.

U.S. bonds make up the lion's share of China's over 1.8 trillion dollars in foreign exchange reserves.

But as Wang made the comments, Chinese stocks fell sharply at the opening Friday amid a plummeting of global share prices.

A government fund bought stocks in September as part of a market rescue plan, but the key Shanghai index was nearing levels seen before the package was announced.

Kitty Bu, reporting for Reuters.

swirl - the shape of something rotating rapidly
bailout A rescue from financial difficulties
amid in the middle of; among
plummet - drop sharply; "The stock market plummeted"

081007-Penguins begin journey home

Penguins begin journey home

These Magellan penguins are being prepared to head back into the wild after they were washed up on the beaches of north-eastern Brazil.

Hundreds of the birds have been stranded since June.

Many died despite the best efforts of animal experts to save them.

Only 50 have recovered fully enough to be released after rehabilitation at Rio de Janeiro zoo.

SOUNDBITE: Andre Sena, vet, saying (Portuguese):

"They undergo rehabilitation here at the zoo to gain weight and have their injuries treated. Later they are taken south to be released into the Malvinas current which should take them to the Straits of Magellan where they originally came from."

It's not clear why so many penguins have been washed up in Brazil.
Biologists believe unusually strong ocean currents may have pulled the birds off course.
Others suggest overfishing near Patagonia and Antarctica may be forcing them to swim further afield in search of food.
Paul Chapman, Reuters
afield - far away from home or one's usual surroundings; "looking afield for new lands to conquer"- R.A.Hall

081003-Palin, Biden square off

Palin, Biden square off

In the only vice presidential debate ahead of the November election, Republican Sarah Palin exceeded expectations and held her own while Democrat Joe Biden turned in a solid performance of his own.

The two vice presidential hopefuls clashed on the economy and Iraq but focused most of the criticism on their rivals at the top of the ticket.
 
SOUNDBITE: Sarah Palin, Republican vice presidential candidate, saying (English):

"Barack Obama, of course, he's pretty much only voted along his party lines. In fact, 96 percent of his votes have been solely along party line, (not having that proof for the American people to know that his commitment, too, is, you know, put the partisanship, put the special interests aside, and get down to getting business done for the people of America.)"

SOUNDBITE: Joe Biden, Democratic vice presidential candidate, saying (English):
 
"Two years ago Barack Obama warned about the sub prime mortgage crisis. John McCain said shortly after that in December he was surprised there was a sub prime mortgage problem. (John McCain while Barack Obama was warning about what we had to do was literally giving an interview to The Wall Street Journal saying that I'm always for cutting regulations.)"

With all eyes on Palin in her national debut in an unscripted format, the Alaska governor turned in a steady and aggressive performance that featured repeated attacks on Barack Obama and his position on the Iraq war.

SOUNDBITE: Sarah Palin, Republican vice presidential candidate, saying (English):

"I know that the other ticket opposed this surge, in fact, even opposed funding for our troops in Iraq and Afghanistan. Barack Obama voted against funding troops there after promising that he would not do so. And Sen. Biden, I respected you when you called him out on that."

Biden, who voted to authorize the war in Iraq, was in the unusual position of defending Obama's opposition to the war and his strategy for ending it.

SOUNDBITE: Joe Biden, Democratic vice presidential candidate, saying (English):

"Barack Obama and I agree fully and completely on one thing. You've got to have a time line to draw down the troops and shift responsibility to the Iraqis. We're spending $10 billion a month while Iraqis have an $80 billion surplus."

Both candidates sought to connect with voters -- with Palin emphasizing her middle-class roots and maverick record as the Governor of Alaska.

SOUNDBITE: Sarah Palin, Republican vice presidential candidate, saying (English): "I want to assure you that John McCain and I, we're going to fight for America. We're going to fight for the middle-class, average, everyday American family like mine. I've been there. I know what the hurts are. I know what the challenges are. And, thank God, I know what the joys are, too, of living in America."

Joe Biden, meanwhile, had an emotional moment-- choking up when recalling having to raise his two young sons alone after their mother died in a car crash.

SOUNDBITE: Joe Biden, Democratic vice presidential candidate, saying (English):

"I am much better off now. But the notion that somehow, because I'm a man, I don't know what it's like to raise two kids alone, I don't know what it's like to have a child you're not sure is going to -- is going to make it -- I understand. I understand, as well as, with all due respect, the governor or anybody else, what it's like for those people sitting around that kitchen table."

Vice presidential debates are rarely game changers. But in a week in which Barack Obama has solidified his lead in national opinion polls, John McCain is hoping that the solid debate performance from his running mate could help slow Obama's momentum.
Jon Decker, Reuters.

square off

To assume a fighting stance; prepare to fight.

steady firm
maverick - someone who exhibits great independence in thought and action
seek To try to locate or discover; search for

Fossett mystery clues found

Steve Fossett's flying adventures are world renown and for the past year his disappearance has looked equally legendary.
The 63-year-old, who holds more than 100 world records, vanished after taking off from a private airstrip in California.
He was declared legally dead in February but no wreckage was found - until now.
Preston Morrow was hiking in Mammoth Lakes, 90 miles south of Fossett's take-off site, when he found some of the millionaire pilot's personal possessions, including several 100 dollars bills.
(SOUNDBITE) (English) PRESTON MORROW, THE HIKER WHO FOUND FOSSETT'S ID CARDS, SAYING:
"It wasn't just the money -- those ID cards. Those three cards were kind of sticking up out of the ... it was kind of brown and black. And the ID was black or blue. But the other cards are white, that really stands out. And the money in the dirt didn't stand out, but the other one or two hundred dollar bills that were kind of bleached white, they stood out."
Local officials have confirmed the items are authentic.
(SOUNDBITE) (English) JOHN ANDERSON, MADERA COUNTY SHERIFF, SAYING:
"It's the National Aeronautics Association membership and also his pilot's license issued by the FAA. And it has been confirmed that it belongs to Stephen Fossett."
A sweat shirt has also been found in the area and what appears to be plane wreckage has now been spotted from the air close to where the cards were found.
Foot searchers are now on their way to the site.
Fossett's widow say she hopes they'll locate his remains and bring an end to speculation by some that his disappearance was more than a tragic accident.
Sonia Legg, Reuters.
clue something that guides through an intricate procedure or maze of difficulties ; specifically : a piece of evidence that leads one toward the solution of a problem
wreckage 

Noun

the remains of something that has been destroyed or badly damaged, such as a crashed car or aircraft
hiking - a long walk usually for exercise or pleasure; "she enjoys a hike in her spare time"
stand out to be noticeable