last time the UK experienced such anaemic growth was in the second quarter
of 1992, when the economy was struggling to pull itself out of recession.
main cause for the revisions was fresh data on the construction industry
from the Department of Trade and Industry.
is the slowest growth in household spending since the third quarter of
researchers described June as "a month of cautious optimism"
after their key index saw an increase of one point, from minus three in
May to minus two in June.
BOOST FOR JAPAN
in Japan are betting on a brighter future according to new figures,
reinforcing hopes that the Japanese economy may finally be turning the
than a week after Japanese factories showed their best rise in output in a
year, the closely-watched Tankan quarterly survey of business confidence
has showed optimism at its strongest in two years.
markets' response was immediate, pushing the benchmark Nikkei 225 index to
a close of 9,278.49 points — up 2.15% on the day for a nine-month
high.The yen, meanwhile, climbed slightly, offsetting recent falls against
despite the healthy Tankan reading for the April-June quarter, buried in
the Bank of Japan's survey of thousands of businesses across the country
were less encouraging signs.
sentiment among large corporations for the quarter just finished rose from
minus 10 to minus 5, the quarter still marked the tenth in a row during
which the headline Tankan figure has remained negative.
the confidence was much weaker among small companies, which have been
squeezed by cost-cutting at the bigger firms to which they supply goods
the forward-looking element of the survey, measuring expectations for the
next three months, was flat.
sentiment went down at the start of the second quarter reflecting the
slowdown in exports but in May and June, exports started to pick up on the
back of early signs of a recovery in the US economy," said Masaaki
Kanno, chief economist at JP Morgan.
POWER CUTS 'IN 20 YEARS'
could face power cuts within the next 20 years as the country imports the
bulk of its energy needs, a report says.
Institution of Civil Engineers (ICE) says 80% of the gas needed to fuel
power stations will come from what it calls "politically
unstable" countries thousands of miles away.
institution said emission constraints mean that the UK's coal-powered
generating plants will close shortly after 2016 and only one nuclear power
station will remain operational beyond 2020.
present, renewable energy sources such as solar, wind and wave can only
provide a fraction of the total requirement.
Britain will be forced to import fuel by 2020, initially from Norway, but
as demand across
BILLIONAIRE ARREST HITS MARKET
Prosecutor General has arrested one of the country's richest men, the
billionaire Platon Lebedev — a move being interpreted as a sign that the
Kremlin is warning so-called 'oligarchs' to stay out of politics.
Lebedev was detained by prosecution service officers at the hospital where
he was receiving treatment.
forms part of a the country's super-rich elite - the oligarchs who made
their fortunes in the early days of Russia's wild privatisation — and is
suspected of embezzling more than $280m worth of stock in a state-owned
maker of fertilisers back in 1994.
'HEADING FOR RECESSION'
may be slipping into recession despite government intervention to
stimulate growth, according to a German think tank, DIW.
is in an economic crisis," the research institute said in its summer
report which cut its forecast for German growth to -0.1% from a previous
warning comes after Chancellor Gerhard Schroeder announced tax cuts in an
attempt to boost consumer spending.
parliament has approved a budget which aims to aid economic development,
combat poverty and reduce the country's dependence on foreign assistance.
it only did so after the government agreed to ditch controversial
proposals for substantially higher tariffs on sugar and salt imports.
the year to June 2004, "the duty on salt now will be 60% instead of
75% and on sugar [it] will be 30% instead of 40%", Finance Minister
M. Saifur Rahman told parliament.
the previous budget year, a 20% import duty had been levied on sugar,
while the duty on salt had been 60%.
BAE TIES UP £2.6BN ITALIAN DEAL
Systems has signed a joint venture agreement with Italian defence group
US UNEMPLOYMENT RATE LEAPS
in the US rose much faster last month than economists had predicted,
sending the official jobless rate to 6.4%.
Airlines (SIA) staff have agreed to pay cuts of 11% after the company
confirmed record losses due to the Severe Acute Respiratory Syndrome (Sars)
cuts come after the airline's 1,600-member pilot union accepted a 16.5%
pay cut and 24 days of compulsory unpaid leave per year.
CRISIS FOR WEST AFRICAN FARMERS
communities on the Mauritanian and Senegalese sides of the Senegal river
valley are under threat because of drought, the US-based famine early
warning agency Fews Net has said.
Mauritania farmers have been reduced to collecting wild plants and almost
all are eating only once a day, the agency said.
Senegal, peanut and millet production has dropped, leaving farmers
increasingly reliant on money sent to them by family members living in
towns, Fews Net's local representatives have said.
WALL STREET POSTS SPRING RALLY
Street is enjoying its biggest and most sustained rally since the end of
the dot.com boom, according to the broadest measure of US shares.
BOOM IS OVER, SAYS NEW BANK CHIEF
new governor of the Bank of England has warned the consumer spending boom
is over — and sterling's rising value on currency exchanges could hit
King, on his first day as successor to Sir Edward George, has also pledged
to change the Bank's management style.
told the Times newspaper he would spend less time making speeches to the
City and more time meeting people and businesses around Britain.
SCHROEDER DEMANDS BERLUSCONI APOLOGY
Chancellor Gerhard Schroeder has demanded a public apology from Italian
Prime Minister Silvio Berlusconi over remarks comparing a German
politician to a Nazi guard.
applause from the German parliament in Berlin, Mr Schroeder said he
expected Mr Berlusconi to "apologise fully for this unacceptable
NEW EU LAW OVER AIR MISERY
EU law guaranteeing big payouts for passengers left stranded by airlines
is to be voted in despite opposition from budget airlines.
sick of being bumped off flights because of over-booking or cancellation
will be given greatly enhanced rights to cash compensation.
WORLDCOM: SHARES TO FRAUD VICTIMS
bankrupt telecoms firm, due to be renamed MCI, has offered investors who
lost money from the $11bn (£6.6bn) WorldCom fraud scandal an additional
$250m in common stock.
proposed settlement, which has been agreed with the US stock market
regulator, would come in addition to an already agreed record $500m
payment to investors.
AUSSIE POWER DEAL AT RISK
Australian power station and coal mine, Loy Yang A, has accepted a 3.5bn
Australian dollars (£1.4bn; US$2.4bn) takeover bid from an international
consortium despite opposition from the country's competition watchdog.
Great Energy Alliance Corporation (GEAC) consortium is led by Australian
Gas Light (AGL) and Tokyo Electric Power Company which have agreed to
acquire a 35% stake each.
BOEING LANDS $6BN JET ORDER
has beaten off competition from its European rival Airbus to win an order
for up to 110 jets from US low-cost carrier AirTran.
FORD FINANCE DEAL UNLOCKS CHINA
of China's top four state-owned commercial banks has agreed to provide
finance to Ford car buyers.
makers are forced to enter into agreements with local banks to enable
Chinese customers to buy their products because only commercial banks are
allowed to offer auto financing.
GUCCI PROFITS CRASH TO EARTH
group Gucci has suffered a 97% fall in net profit during the first three
months of the year.
AUSTRALIA CALLS FOR RATE CUT
central bankers are facing calls to cut interest rates after new numbers
showed industry stagnating.
say that a rising Australian dollar and the stubbornly
sluggish world economy are threatening the solid growth the country
has experienced, and that markets have already factored in a quarter-point
JAPAN FIGHTS FOR RUSSIAN PIPELINE
has offered to help Russia develop Siberian oil fields in return for the
building of a pipeline to the Pacific port of Nakhodka.
Japan is keen to provide incentives for Russia to build the pipeline in preference to a rival project to pump oil to north eastern China.