Bank hands QE income to Treasury

















The Bank of England has said it will give the Treasury the interest it earns on certain government debts it holds.













The Bank owns £375bn in gilts due to its quantitative easing (QE) policy of buying up debt to boost the economy.


The transfer will cut the government’s borrowing needs and the net debt it reports in its financial accounts.


As of last March, the Bank held £24bn in cash received from government interest payments, a figure expected to rise to £35bn by next March.


The Bank has been purchasing government debt from the market with newly printed money as part of its QE policy since March 2009.


The interest income ultimately belongs to the government under the terms of an indemnity provided to the Bank, but until now, the cash has been sitting unused in a dedicated account – the Asset Purchase Facility (APF) – at Threadneedle Street.


“Holding large amounts of cash in the APF is economically inefficient as it requires the government to borrow money to fund these coupon payments,” said the Treasury upon announcing the agreement.


In future, any additional interest payments received by the Bank will be handed back to the Treasury at the end of each quarter, after deducting the Bank’s own cost of borrowing.


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George Osborne has decided that it is bonkers for the Treasury to borrow £11bn a year to generate spare cash that sits at the APF doing nothing”



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This is likely to reduce the government’s budget deficit by about £11bn a year, based on the Bank’s current cost of borrowing, according to the BBC’s business editor, Robert Peston.


That compares with the £116bn public sector net borrowing for the current tax year that was forecast in March by the Office for Budget Responsibility.


In a letter to Chancellor George Osborne, the Bank’s governor, Mervyn King, pointed out that, because of the way that the APF functions, the Treasury may well end up having to repay the cash, and more, in future.


This would occur if the Bank of England raised its own interest rate – which it uses to set monetary policy – to a level where it was paying more interest on its own borrowings than the AFP was earning on the government debt it holds.


The move comes a day after the Bank decided at a monthly policy-setting meeting not to extend its QE programme.


The Treasury said that the agreement was in line with the practice in the US and Japan, where central banks have been buying up their respective governments’ debts as part of a QE programme.


BBC News – Business



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Assad says will live and die in Syria
















DOHA (Reuters) – President Bashar al-Assad said he would “live and die” in Syria and warned that any Western invasion to topple him would have catastrophic consequences for the Middle East and beyond.


Assad’s defiant remarks coincided with a landmark meeting in Qatar on Thursday of Syria’s fractious opposition to hammer out an agreement on a new umbrella body uniting rebel groups inside and outside Syria, amid growing international pressure to put their house in order and prepare for a post-Assad transition.













The Syrian leader, battling a 19-month old uprising against his rule, appeared to reject an idea floated by British Prime Minister David Cameron on Tuesday that a safe exit and foreign exile for the London-educated Assad could end the civil war.


“I am not a puppet. I was not made by the West to go to the West or to any other country,” he told Russia Today television in an interview to be broadcast on Friday. “I am Syrian; I was made in Syria. I have to live in Syria and die in Syria.”


Russia Today’s web site, which published a transcript of the interview conducted in English, showed footage of Assad speaking to journalists and walking down stairs outside a white villa. It was not clear when he had made his comments.


The United States and its allies want the Syrian leader out, but have held back from arming his opponents or enforcing a no-fly zone, let alone invading. Russia has stood by Assad.


The president said he doubted the West would risk the global cost of intervening in Syria, whose conflict has already added to instability in the Middle East and killed some 38,000 people.


“I think that the price of this invasion, if it happened, is going to be bigger than the whole world can afford … It will have a domino effect that will affect the world from the Atlantic to the Pacific,” the 47-year-old president said.


“I do not think the West is going in this direction, but if they do so, nobody can tell what is next.”


QATAR, TURKEY CHIDE OPPOSITION


Backed by Washington, the Doha talks underline Qatar’s central role in the effort to end Assad‘s rule as the Gulf state, which funded the Libyan revolt to oust Muammar Gaddafi, tries to position itself as a player in a post-Assad Syria.


Qatari Prime Minister Hamad bin Jassim Al Thani urged the Syrian opposition to set its personal disputes aside and unite, according to a source inside the closed-door session.


“Come on, get a move on in order to win recognition from the international community,” the source quoted him as saying.


Turkish Foreign Minister Ahmed Davutoglu delivered a similar message, saying, according to the source: “We want one spokesman not many. We need efficient counterparts, it is time to unite.”


An official text of a speech by Qatari Foreign Minister Khalid Mohamed al-Attiyah showed he told the gathering: “The Syrian people awaits unity from you, not divisions … Your agreement today will prove to the international community that there is a unity … and this will reflect positively in the international community’s stance towards your fair cause.”


Across Syria, more than 90 people were killed in fighting on Thursday, the Syrian Observatory for Human Rights said.


In Turkey’s Hatay border province, two civilians, a woman and a young man, were wounded by stray bullets fired from Syria, according to a Turkish official. Turkish forces increased their presence along the frontier, where officials have said they might seek NATO deployment of ground to air missiles.


Syria poses one of the toughest foreign policy challenges for U.S. President Barack Obama as he starts his second term.


International rivalries have complicated mediation efforts. Russia and China have vetoed three Western-backed U.N. Security Council resolutions that would have put Assad under pressure.


Syria’s conflict, pitting mostly Sunni Muslim rebels against forces dominated by Assad’s Alawite minority, whose origins lie in Shi’ite Islam, has fuelled sectarian tensions across the Middle East. Sunni Arab countries and Turkey favor the rebels, while Shi’ite Iran backs Assad, its main Arab ally.


“VICIOUS CIRCLE”


The main opposition body, the Syrian National Council (SNC), has been heavily criticized by Western and Arab backers of the revolt as ineffective, run by exiles out of touch with events in Syria, and under the sway of the Islamist Muslim Brotherhood.


British Foreign Minister William Hague said London would now talk to rebel groups inside Syria, after U.S. Secretary of State Hillary Clinton last week criticized the SNC and called for a new opposition body to include those “fighting and dying”.


But the plan for a body that could eventually be considered a government-in-waiting capable of winning foreign recognition and therefore more military backing ran into trouble almost as soon as it was proposed by SNC member Riyad Seif.


The meeting has so far been bogged down by arguments over the SNC representation and the number of seats the rival groups – which include Islamists, leftists and secularists – will have in a proposed assembly. Seif said he hoped for agreement on that on Thursday night, although the talks may continue into Friday.


Senior SNC member Burhan Ghalioun said the participants were moving towards consensus: “The atmosphere was positive. We all agree that we don’t want to walk away from this meeting in failure,” he told reporters.


Seif’s proposal is the first concerted attempt to merge opposition forces to help end the devastating conflict.


The initiative would also create a Supreme Military Council, a Judicial Committee and a transitional government-in-waiting of technocrats – along the lines of Libya’s Transitional National Council, which managed to galvanize international support for its successful battle to topple Gaddafi.


Michael Doran of the Brookings Institute in Washington told a forum in Doha it would not work for Syria. “It’s not a ridiculous idea, but it’s not going to succeed,” he said.


A diplomat on the sidelines of the talks said international divisions in the U.N. Security council did not help.


“It’s a vicious circle. They are asking the opposition to unite when they admit they are not themselves united,” he said.


(Writing by Tom Perry and Samia Nakhoul; Editing by Alistair Lyon, Alastair Macdonald and Philippa Fletcher)


World News Headlines – Yahoo! News



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SEAL Team Six Members Reprimanded in Video Game Consulting Deal
















Seven members of the Navy’s now-famous SEAL Team Six have been issued letters of reprimand and docked pay after divulging classified information to video-game maker Electronic Arts, CBS News reports.


The SEAL’s revealed the secret information in the course of their work as consultants for EA’s “Medal of Honor: Warfighter” game, which boasts of its high level of realism thanks to input from current and former soldiers, according to CBS.













One of the disciplined SEALs participated in the raid that killed Osama Bin Laden, though that mission is not portrayed in the game, according to CBS. Four former members of the team who remain in the armed services are also under investigation, CBS reported.


The letters of reprimand can make it difficult to get promoted.


Gaming News Headlines – Yahoo! News



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Mark Wahlberg to star in next ‘Transformers’ movie
















LOS ANGELES (AP) — Mark Wahlberg, roll out.


Transformersdirector Michael Bay says the 41-year-old actor will star in the franchise’s fourth film.













Bay called Wahlberg the “perfect guy to re-invigorate the franchise and carry on the Transformers‘ legacy” in a post on his blog Thursday. He previously squashed rumors that Wahlberg was joining the film franchise about warring robots.


Bay worked with Wahlberg on his upcoming film, “Pain and Gain.”


“Transformers 4″ is scheduled to be released by Paramount Pictures on June 27, 2014.


Bay has said the next film will take a new direction in the series. The first three movies starred Shia LaBeouf and featured Peter Cullen as the voice of Autobot general Optimus Prime.


The third “Transformers” film, “Dark of the Moon,” was the second highest-grossing film of 2011.


Entertainment News Headlines – Yahoo! News



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Canada top court rules against Pfizer in Viagra patent case


















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Bank refrains from new stimulus

















The Bank of England has decided not to extend its quantitative easing (QE) stimulus programme, which has injected £375bn into the UK financial system.













Under QE, the Bank creates money and uses it to buy government bonds to try to stimulate the economy.


The Bank’s Monetary Policy Committee (MPC) also decided to keep interest rates at 0.5%, the record low they have been held at since March 2009.


The UK came out of recession recently, growing 1% between July and September.


But a succession of poor economic indicators and corporate results has led many observers to believe that the economy is still weak, leading to speculation that more QE would be needed.


Indeed, the minutes from the last MPC meeting in October showed that some members thought more QE would be required at some point in the future.


“We are pretty sure that the economy will need more stimulus in the months ahead,” said Vicky Redwood of Capital Economics.


“And we do not think that the committee is out of firepower yet.”


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AAA-rating


The best credit rating that can be given to a borrower’s debts, indicating that the risk of borrowing defaulting is minuscule.




On Wednesday, the European Commission cut its 2013 eurozone growth forecast from 1% to just 0.1% and said it expected unemployment to continue rising next year.


As about half of Britain’s trade is with Europe, the commission’s forecast, if accurate, could have a significant knock-on effect for the UK.


But the jury is out on whether QE is effective enough at stimulating consumer spending and business investment.


In July, the Bank launched its Funding for Lending Scheme (FLS), aimed at encouraging banks and building societies to increase the size and frequency of loans they make to consumers and small businesses.


Under FLS, the Bank lends money to the financial institutions at below market rates, and offers a better deal to those who make the most loans.


As yet there is no published data showing how well the scheme is going.


However, on Friday the Bank is due to release statistics showing the lending rates being offered by financial institutions, and a general lowering of rates could indicate that FLS is beginning to work.


BBC News – Business



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Ghana building collapse traps dozens, kills 1
















ACCRA, Ghana (AP) — A five-story shopping center built earlier this year in a bustling suburb of Ghana‘s capital collapsed Wednesday, killing at least one person and leaving several dozen people trapped in the rubble, authorities and eyewitnesses said.


Rescue crews used cranes to try and remove debris from the top of the building amid fears that machinery sifting through the wreckage could injure trapped survivors. Crowds of bystanders gathered as rescuers sifted through cement and glass.













The fatality at the Melcom Shopping Center at Achimota, a suburb of Accra, was confirmed by Public Affairs Officer of the Ghana Fire Service Billy Anaglate. “We are still working to find out the fate of others who may be trapped under,” he said.


Other officials told The Associated Press that the death toll was likely to rise.


An AP reporter at the scene saw at least one man pulled from the debris, covered in dust and who was then whisked into an ambulance.


A Greater Accra Regional Public Affairs officer, deputy superintendent Freeman Tettey, confirmed that one person died and told the AP that 51 have been rescued and sent to hospitals around the capital.


“I was on my way to the shop when l saw it crumpling down,” Kojo Boadi, an eyewitness, said.


President John Mahama declared the scene a disaster zone and cut short his election campaign in the north of the country to be able to visit the site. The presidential election is scheduled for December.


The five-story store opened in February is part of the Melcom chain owned by Indian immigrant magnate, Bhagwan Khubchandani. His late father arrived in Ghana in 1929 as a 14-year-old to work as a store boy in the-then Gold Coast.


The store sells a variety of cheap, imported household goods and appliances that are popular with working-class Ghanaians.


Africa News Headlines – Yahoo! News



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Harvard Students Send First Burger Into Space
















One burger has gone where no burger has gone before: the edge of space.


Five Harvard students, sponsored by a local burger restaurant, spent about 30 hours total over two weekends sending the first burger toward the upper reaches of the atmosphere.













The students, juniors Renzo Lucioni, Nuseir Yassin, Daniel Broudy, Jamie Law-Smith and Matt Moellman, spent a weekend brainstorming ideas.


The five, mostly science majors, decided they wanted to send a hamburger into space and contacted Jon Olinto, co-founder of B.good burger.


e4c45  ht harvard burger space 2 mi 121107 wblog jpg 204224 Harvard Students Send First Burger Into Space


Yassin told ABC News, “School just got a bit repetitive.” He said they came up with the idea as a “purely fun project.”


Olinto was immediately interested and asked his secretary to send over a check to the students. She thought Olinto was joking at first and didn’t send the check until after he told her the students were serious about the project.


“This is the most incredible thing that could happen to us ,” said co-founder Jon Olinto to ABC News.


Two weekends, a GoPro Hero camera, a HTC Rezound phone and a 600-gram weather balloon later, the students were ready to launch the project. They had gotten the burger two days before, varnished it, super-glued the layers together and screwed it to the pedestal.


SLIDESHOW: 9 Over-the-Top Cheeseburgers


Launched in Sturbridge, Mass. on October 27 at 12:22 P.M., the B.good burger took about two hours to ascend to an altitude of 30,000 meters (19 miles), and an hour to descend.


“There were so many things that could go wrong,” said Yassin. He listed issues with the camera or where the burger landed as some of their concerns.


Once it landed, it was recovered about 130 miles north of Boston. The phone transmitted GPS data to the students every 30 minutes, but they also used wind data to predict where it would land. The burger landed high up in a tree and B.good had to hire a tree climber to get it down.


e4c45  ht harvard burger space mi 121107 wmain Harvard Students Send First Burger Into Space 


They checked their video. “We were nervous that all of it was blurry and we couldn’t see space,” said Yassin. Luckily, he said, they “actually found 2 to 3 minutes of clear footage.”


The students already have the funds for another mission and hope to involve a local high school.


“All of us have aspirations in doing something in the private sector of space,” said Yassin.


The restaurant, which offered a special buy one burger, get one free promotion in conjunction with the launch, spent about $ 1,000 on the project.


“Definitely the best 1,000 bucks we ever spent,” Olinto said.


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Rihanna a rock star on Victoria’s Secret catwalk
















NEW YORK (AP) — Rihanna rocked lingerie at Wednesday night’s Victoria’s Secret fashion show in New York, providing the highlight of the live-music soundtrack and holding her own on the catwalk with some of the world’s top models.


And those models even had props, including Adriana Lima‘s ringmaster wand, Doutzen Kroes‘ body cage and several pairs of the oversized wings that the retailer has made its signature. It would be a close contest who got the biggest wings: Toni Garrn’s giant poppy pair or Miranda Kerr’s swan-style feathered pouf. Only Lily Aldridge could boast star-spangled wings that shot out silver sparkles.













Alessandra Ambrosio’s orchid-petal wings might have lacked a little grandeur, but she made up for it with a $ 2.5 million jeweled “floral fantasy bra.”


Still, wearing a sheer pink mini that gave glimpses of her bra, Rihanna sang “Fresh Out the Runway” at the end of the corset-and-garter parade and she was the one to grab the audience’s biggest applause.


The fashion show has become a pre-holiday season tradition for the retailer. CBS will turn it into a one-hour special, which also had performances from Justin Bieber and Bruno Mars, to be shown on Dec. 4.


Lima said she loved opening the show in the ringmaster costume. “The atmosphere of the Victoria’s Secret fashion show is electric,” she said. “It’s so much fun to be able to interact with the audience! What other show will you see Rihanna, Justin Beiber and Bruno Mars on the runway with angels?”


This year’s event had a slight twist. It started with an announcer noting that Victoria’s Secret and CBS had each made a donation to relief efforts for Superstorm Sandy, and a thank you to the National Guard members who are based out of the Lexington Avenue Armory that has for years been home to the show.


Mostly, though, models are encouraged to smile, ham it up and show off the extra time at the gym that most admit to in the weeks beforehand. “It’s highly televised, and you take that into consideration,” said model Joan Smalls ahead of the show. “This is kind of not the same as other runways. You have to prepare your body: No. 1 is the wings are heavy, and No. 2 is you have to be comfortable with your body because the camera will pick up on it if you’re not comfortable and confident.”


There’s an emphasis on glitz, skin and dramatic production here, not wearable undergarment trends for typical Victoria’s Secret shoppers. It was divided into six sections: Circus, complete with acrobats, contortionists and a sword eater; Dangerous Liaisons; Pink Is Us; Silver Screen Angels; Angels in Bloom; and Calendar Girls, which allowed Bruno Mars to serenade a model for each month of the year.


For his first song, “Beauty and the Beat,” Bieber, wearing low-slung white pants and a white leather studded vest, sat alone with his guitarist in the mellowest part of the show. For “As Long As You Love Me,” however, he brought in backup dancers and interacted with the models while moving around a giant makeshift pinball machine.


“It’s like a dream come true,” said Bieber on the pink carpet before the show. “I would rather be here than anywhere in the world.”


___


AP reporter John Carucci contributed to this report.


___


Samantha Critchell tweets fashion at http://www.twitter.com/AP_Fashion


Entertainment News Headlines – Yahoo! News



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Pfizer returns EU selling rights on Auxilium hand-disorder drug
















(Reuters) – Auxilium Inc ended a marketing deal for its hand-disorder drug with Pfizer Inc, regaining the rights to sell the drug in Europe, and pushed up its 2012 revenue forecast to reflect deferred revenue from the termination of the deal.


Pfizer, which had the right to negotiate marketing other Xiaflex indications in the European Union, will return the rights to the Dupuytren’s contracture treatment by April 24, 2013.













Auxilium, which is also testing Xiaflex to treat penile curvature, will record $ 94 million in deferred revenue. The drugmaker said it now expects between $ 153 million and $ 163 million in Xiaflex sales for 2012.


The company earlier expected Xiaflex sales of between $ 65 million and $ 77 million for the year. Sales of Xiaflex, called Xiapex in Europe, accounted for 22 percent of the company’s total sales in its third quarter.


Auxilium, which filed a marketing application with U.S. health regulators to sell Xiaflex to treat penile curvature on Wednesday, said it still expects 2012 to be its first profitable year.


(Reporting by Vidya P L Nathan; Editing by Joyjeet Das)


Health News Headlines – Yahoo! News



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