The US Congress has passed a $167bn (£86bn) economic stimulus plan aimed at helping to bolster the world's largest economy and avoid a recession.
The package includes one-off rebates of up to $600 for individuals and $1,200 for couples plus $300 for each child.
The Senate voted to approve measures after a week of manoeuvring that saw agreements to provide extra money to retired people and the elderly.
The House of Representatives followed suit a few hours later.
Fast action was needed, politicians said, to limit the damaging effect on the economy that the credit crunch and housing market woes were having.
President George W Bush welcomed the passing of the bill and said it would help stimulate consumer spending.
Treasury Secretary Henry Paulson also welcomed the approval, saying: "This package of payments to individuals and incentives for businesses to invest will support our economy as we weather the housing downturn."
'Direction change'
As well as the tax rebates, those on low incomes, who do not pay income tax, would receive a $300 payout, Congress agreed.
This is not a victory for Republicans or Democrats. This is a victory for the American people
Senator Mitch McConnell
The new measures were passed in a vote by 81-16 in the Senate, but only after Democrats dropped calls for more unemployment benefits, assistance with fuel bills and plans to offer certain industries tax breaks.
The package passed in the House by 380 to 34.
The approved package would "change the economic direction of this country", said Senate Majority Leader Harry Reid, a Nevada Democrat.
Republican Senator Mitch McConnell said: "This is not a victory for Republicans or Democrats. This is a victory for the American people."
However, some politicians are worried about the damage the plan will do to government finances - potentially doubling last year's budget deficit.
"We have to remember that every dollar being spent on the stimulus package is being borrowed from our children and our children's children," said Republican Senator Judd Gregg, who voted against the bill.
Thursday, February 7, 2008
US shoppers tighten their belts
American retailers have revealed further evidence that US shoppers cut back their spending in shops and malls in January.
From department store Macy's to supermarket Wal-Mart, retailers revealed flat or falling sales.
The US Federal Reserve has cut interest rates to stimulate spending, which accounts for two thirds of the economy.
Higher fuel and food prices, the credit crisis and the housing slowdown are all depressing consumer sentiment.
In a further sign that US shoppers are spending less, Federal Reserve figures show that US consumer borrowing - which includes credit cards - grew at the slowest rate in eight months during December.
It rose at an annual rate of 2.1% in December, sharply down from November's 8.2% jump.
Luxury hit hardest
Wal-Mart, the world's largest retailer, said sales had risen 0.5% but said people were spending on staples, not treats after the Christmas holiday period.
"Customers appear to be holding gift cards longer and using them more often for food and consumables rather than discretionary purchases," it said in a statement.
The more upmarket names saw the biggest declines.
Department store owner Macy's said it was cutting 2300 management posts in a bid to cut costs after January sales fell more than 7%.
Sales at designer retailer Nordstrum fell 6.6% and Macy's saw a 7.1% fall.
Fellow department store chain Saks posted a better than expected 4.4% rise but warned of tough times ahead.
Discounter Costco was one of the few to see better than expected sales figures, up 7%.
The government hopes its proposed economic stimulus package will encourage spending, but some fear the effect will only be temporary, especially if the job market continues to deteriorate.
Last week, the latest jobs figures showed the first decline in employment since August 2003, providing further evidence that the US economy could be entering a recession.
From department store Macy's to supermarket Wal-Mart, retailers revealed flat or falling sales.
The US Federal Reserve has cut interest rates to stimulate spending, which accounts for two thirds of the economy.
Higher fuel and food prices, the credit crisis and the housing slowdown are all depressing consumer sentiment.
In a further sign that US shoppers are spending less, Federal Reserve figures show that US consumer borrowing - which includes credit cards - grew at the slowest rate in eight months during December.
It rose at an annual rate of 2.1% in December, sharply down from November's 8.2% jump.
Luxury hit hardest
Wal-Mart, the world's largest retailer, said sales had risen 0.5% but said people were spending on staples, not treats after the Christmas holiday period.
"Customers appear to be holding gift cards longer and using them more often for food and consumables rather than discretionary purchases," it said in a statement.
The more upmarket names saw the biggest declines.
Department store owner Macy's said it was cutting 2300 management posts in a bid to cut costs after January sales fell more than 7%.
Sales at designer retailer Nordstrum fell 6.6% and Macy's saw a 7.1% fall.
Fellow department store chain Saks posted a better than expected 4.4% rise but warned of tough times ahead.
Discounter Costco was one of the few to see better than expected sales figures, up 7%.
The government hopes its proposed economic stimulus package will encourage spending, but some fear the effect will only be temporary, especially if the job market continues to deteriorate.
Last week, the latest jobs figures showed the first decline in employment since August 2003, providing further evidence that the US economy could be entering a recession.
Wednesday, February 6, 2008
Tattoos may help deliver vaccine
Scientists in Germany say that tattoos could be the ideal way of delivering vaccines into the body.
The researchers say that in tests undertaken with mice, tattoos were much more effective in provoking a response from the immune system.
Tattoos could be a useful way of delivering therapeutic vaccines in humans, including for some cancers.
Such vaccines have often failed to produce the expected immune response when delivered using an injection.
Vibrating needle
Tattoos have played a part in human culture for thousands of years.
Just over 100 years ago, the practice became more widely available with the invention of the electric tattoo machine in the United States. The same basic instrument is still in use to create tattoos today.
Now researchers in Germany say that the rapidly vibrating tattoo needle could be a useful way of delivering vaccines under the skin instead of insoluble ink.
In studies with mice, tattooing a vaccine produced 16 times more antibodies than a simple injection into muscle tissue.
The level of antibodies indicates the strength of the immune system's response.
Dr Martin Mueller, one of the researchers behind this work, says that the greater damage to the body caused by the tattoo needle may explain the better immune response.
The scientists say that the tattoo needles would never be suitable for preventative vaccines, such as measles, in children as the pain would be too great.
But there may well be a role for the technique in the routine vaccination of animals.
The researchers say that in tests undertaken with mice, tattoos were much more effective in provoking a response from the immune system.
Tattoos could be a useful way of delivering therapeutic vaccines in humans, including for some cancers.
Such vaccines have often failed to produce the expected immune response when delivered using an injection.
Vibrating needle
Tattoos have played a part in human culture for thousands of years.
Just over 100 years ago, the practice became more widely available with the invention of the electric tattoo machine in the United States. The same basic instrument is still in use to create tattoos today.
Now researchers in Germany say that the rapidly vibrating tattoo needle could be a useful way of delivering vaccines under the skin instead of insoluble ink.
In studies with mice, tattooing a vaccine produced 16 times more antibodies than a simple injection into muscle tissue.
The level of antibodies indicates the strength of the immune system's response.
Dr Martin Mueller, one of the researchers behind this work, says that the greater damage to the body caused by the tattoo needle may explain the better immune response.
The scientists say that the tattoo needles would never be suitable for preventative vaccines, such as measles, in children as the pain would be too great.
But there may well be a role for the technique in the routine vaccination of animals.
'Al-Qaeda boys' in training video
US and Iraqi forces have issued video footage which they say shows children under the age of 11 being armed and trained by al-Qaeda.
The US military said five tapes had been found when coalition forces raided suspected al-Qaeda hideouts north of Baghdad in December.
The videos showed boys brandishing guns and grenades during training exercises.
The Americans hope the images might persuade Iraqis to turn against the Islamic militants, correspondents say.
The footage compiled from the tapes features around 20 young boys running around with pistols, machine guns and rocket-propelled grenades.
In one scene, the boys take part in a mock kidnapping, where they force the volunteer to kneel in the dust with a pistol at his head.
Ransoms
The BBC's Jim Muir in Baghdad says the children are also shown posing in sinister black facemasks to announce the slaughter of their hostages.
The US military believes the footage was shot as raw material for propaganda films aimed at attracting new, young recruits.
US military spokesman Rear Admiral Gregory Smith said it did not appear that the boys had been kidnapped or press-ganged into taking part.
"Clearly there are families in which the adult males are part of al-Qaeda and you would assume that those children are growing up in that environment that would, unfortunately, produce the next generation of al-Qaeda," he said.
Iraqi defence ministry spokesman Mohammed al-Askari said the tapes were a "sign of desperation" by al-Qaeda and claimed that children were trained to kidnap to raise funds from ransoms.
The US military said five tapes had been found when coalition forces raided suspected al-Qaeda hideouts north of Baghdad in December.
The videos showed boys brandishing guns and grenades during training exercises.
The Americans hope the images might persuade Iraqis to turn against the Islamic militants, correspondents say.
The footage compiled from the tapes features around 20 young boys running around with pistols, machine guns and rocket-propelled grenades.
In one scene, the boys take part in a mock kidnapping, where they force the volunteer to kneel in the dust with a pistol at his head.
Ransoms
The BBC's Jim Muir in Baghdad says the children are also shown posing in sinister black facemasks to announce the slaughter of their hostages.
The US military believes the footage was shot as raw material for propaganda films aimed at attracting new, young recruits.
US military spokesman Rear Admiral Gregory Smith said it did not appear that the boys had been kidnapped or press-ganged into taking part.
"Clearly there are families in which the adult males are part of al-Qaeda and you would assume that those children are growing up in that environment that would, unfortunately, produce the next generation of al-Qaeda," he said.
Iraqi defence ministry spokesman Mohammed al-Askari said the tapes were a "sign of desperation" by al-Qaeda and claimed that children were trained to kidnap to raise funds from ransoms.
UK consumers see interest rates cuts reversed with a year - Lloyds TSB
UK consumers expect any cut in borrowing costs to be short-lived, with more than half believing that interest rates will be higher within a year, according to a survey by a leading bank.
The Lloyds TSB Consumer Barometer found 52 pct of consumers expect interest rates will be above current levels in 12 months time, with 25 pct expecting them to be lower and 19 pct unchanged. The resulting balance of +27 pct is up by 2 percentage points on last month -- the first time the balance has grown after six months of successive falls.
This comes in spite of the fact the majority of economists are forecasting the Bank of England to cut interest rates tomorrow by a quarter point to 5.25 pct and take rates even lower over the coming months.
Trevor Williams, chief economist at Lloyds TSB, said consumers' expectation that any fall in borrowing costs will be short-lived probably reflects their outlook of rising inflation.
"Consumers are clearly increasingly feeling the strain of higher prices -- energy and food in particular -- and this is starting to convince them that the Bank of England will be forced to keep interest rates high in order to keep inflation under control," Williams said.
This is reflected in the fact that a balance of +84 pct of respondents expect prices in general to be higher in 12 months time.
The survey of 2000 people also found consumers are increasingly nervous about job security. A balance of 6 pct said they felt their job was less secure than a year ago, while a balance of 30 pct said they thought employment prospects in the UK in general are worse then they were 12 months earlier.
The Lloyds TSB Consumer Barometer found 52 pct of consumers expect interest rates will be above current levels in 12 months time, with 25 pct expecting them to be lower and 19 pct unchanged. The resulting balance of +27 pct is up by 2 percentage points on last month -- the first time the balance has grown after six months of successive falls.
This comes in spite of the fact the majority of economists are forecasting the Bank of England to cut interest rates tomorrow by a quarter point to 5.25 pct and take rates even lower over the coming months.
Trevor Williams, chief economist at Lloyds TSB, said consumers' expectation that any fall in borrowing costs will be short-lived probably reflects their outlook of rising inflation.
"Consumers are clearly increasingly feeling the strain of higher prices -- energy and food in particular -- and this is starting to convince them that the Bank of England will be forced to keep interest rates high in order to keep inflation under control," Williams said.
This is reflected in the fact that a balance of +84 pct of respondents expect prices in general to be higher in 12 months time.
The survey of 2000 people also found consumers are increasingly nervous about job security. A balance of 6 pct said they felt their job was less secure than a year ago, while a balance of 30 pct said they thought employment prospects in the UK in general are worse then they were 12 months earlier.
Foreigners Sold Net Y448.7B Japan Stocks Last Week
The foreign flight from Japan's stock market continued last week, Ministry of Finance data showed Thursday. Foreign investors sold Y448.7 billion of Japanese shares on a net basis during the week of Jan. 27-Feb. 2, MOF's weekly portfolio flow data showed. It marked the fifth straight week of net stock sales, and the 11th such week out of the last 13. The scale of net selling was smaller than the previous week's Y559.0 billion, but larger than any other week since mid-December, as the Nikkei 225 Stock Average continued to fall sharply. Foreigners also sold a net Y12.1 billion of Japanese bonds last week. They were net buyers in the Japanese money markets for the first time since New Year's week, taking a net Y273.0 billion of short-term money-market instruments. Japanese investors, meanwhile, were net buyers of foreign securities, purchasing a net Y113.2 billion of foreign shares and a net Y487.3 billion of foreign bonds.
Japan's January forex reserves hit record 996.04 billion dollars -
Japan's foreign exchange reserves rose to a record 996.04 billion US dollars at the end of January, supported by a stronger euro and rises in evaluation gains on US Treasurys, the Ministry of Finance said Thursday.
The previous record of 973.36 billion dollars was reached in December.
The yield on the 10-year Treasury fell to 3.597 percent from 4.027 percent, pushing up prices, while the strengthening of the euro increased the dollar value of euro-denominated assets.
The single European currency rose to 1.4861 dollars at the end of January from 1.4591 dollars in December, the ministry said.
The rise in gold price also inflated forex reserves, as the price of gold rose to 923.25 US dollars an ounce in December from 836.50 US dollars in December, it said.
Japan's forex reserves remain the second largest in the world next to China, whose holdings reached 1.53 trillion dollars at the end of December, according to the latest available figures from the Chinese government.
Foreign exchange reserves consist of securities and deposits denominated in foreign currencies, plus International Monetary Fund (IMF) reserves, IMF special drawing rights (SDRs) and gold.
At the end of January, Japan had foreign currency reserves of 968.48 billion dollars, IMF reserves of 1.41 billion dollars, SDRs of 3.06 billion dollars, gold reserves of 22.71 billion dollars and other foreign currency assets worth 376 million dollars.
Japan's reserves are closely watched for evidence of how the country is managing its foreign currency holdings. They are seen as having a significant impact on exchange rates and bond markets around the world, particularly the US government bond market.
The biggest changes in Japan's forex reserves usually occur when authorities intervene in the currency market to prevent the yen from appreciating rapidly. Monetary authorities have not intervened since mid-March 2004.
(1 US dollar = 106.40 yen)
The previous record of 973.36 billion dollars was reached in December.
The yield on the 10-year Treasury fell to 3.597 percent from 4.027 percent, pushing up prices, while the strengthening of the euro increased the dollar value of euro-denominated assets.
The single European currency rose to 1.4861 dollars at the end of January from 1.4591 dollars in December, the ministry said.
The rise in gold price also inflated forex reserves, as the price of gold rose to 923.25 US dollars an ounce in December from 836.50 US dollars in December, it said.
Japan's forex reserves remain the second largest in the world next to China, whose holdings reached 1.53 trillion dollars at the end of December, according to the latest available figures from the Chinese government.
Foreign exchange reserves consist of securities and deposits denominated in foreign currencies, plus International Monetary Fund (IMF) reserves, IMF special drawing rights (SDRs) and gold.
At the end of January, Japan had foreign currency reserves of 968.48 billion dollars, IMF reserves of 1.41 billion dollars, SDRs of 3.06 billion dollars, gold reserves of 22.71 billion dollars and other foreign currency assets worth 376 million dollars.
Japan's reserves are closely watched for evidence of how the country is managing its foreign currency holdings. They are seen as having a significant impact on exchange rates and bond markets around the world, particularly the US government bond market.
The biggest changes in Japan's forex reserves usually occur when authorities intervene in the currency market to prevent the yen from appreciating rapidly. Monetary authorities have not intervened since mid-March 2004.
(1 US dollar = 106.40 yen)
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