But the Circle and
Hammersmith and City lines would remain closed. Parts of the District
line, Metropolitan line and Piccadilly line are suspended.
station was due to re-open for suburban rail services only.
expected operate normally, except around the immediate areas where the
explosions took place.
officials urged passengers to remain vigilant and keep hold of their
baggage at all times.
Mr Clarke said the
failure to predict Thursday's bombs should not obscure past successes.
But he admitted:
"It certainly was a failure of intelligence in the sense that we
didn't know this was coming."
"But by definition
when you're looking for needles in haystacks you can miss the needles
and the tragedy is that we did miss the needles."
Mr Clarke said a
claim on the website of a previously unknown group, the Secret
Organisation Group of al-Qaeda of Jihad Organisation in Europe, saying
it was behind the blast, was being taken seriously.
LONDON BLASTS RATTLE GLOBAL MARKETS
markets were badly shaken by deadly bomb attacks on London underground
trains and a bus. However, in Frankfurt the president of the European
Central Bank reassured people that financial markets in Europe were
markets plunged while sterling slid as London's transport network was
hit by fatal blasts that also sent oil prices plummeting from the
dayís record peaks.
deteriorating news flow on the situation in London is creating the
expected and justifiable response in markets," Calyon analyst Daragh
Maher was quoted as saying.
London's FTSE 100
index of leading shares tumbled 1.74 per cent to 5,138.80 points after
falling more than 3.0 per cent following initial news of the
The Dow Jones
Industrial Average dropped 0.64 per cent to 10,204.62 points in
morning deals and the tech-heavy Nasdaq composite lost 0.62 per cent
Back in Europe,
the Frankfurt DAX 30 dived 1.85 per cent to 4,530.15 points in late
trading and in Paris the CAC 40 dropped 1.42 per cent to 4,219.06.
The DJ Euro Stoxx
50 index of leading eurozone shares tumbled 2.01 per cent to 3,159.24
sharply on news of the blasts, remaining under pressure after a
decision from the Bank of England to keep British interest rates on
hold at 4.75 per cent for the 11th month in a row.
The pound stood at
$1.7424 at about 1515 GMT after falling to as low as $1.7404 in late
European trading, from $1.7532 late on Wednesday in New York.
The euro had
climbed to $1.1941 in late afternoon European trading from $1.1930
late on Wednesday last.
BOMBINGS 'CANNOT STOP G8 DEALS'
The London terror
attacks will not damage the chances of leaders reaching agreements at
the G8 summit, Foreign Secretary Jack Straw was quoted as saying.
The G8 heads of
state are due to spend the final day of their Gleneagles meeting
discussing trade, aid and debt.
They will be
joined later by the leaders of seven African countries, as well as the
heads of international lending agencies and the UN.
Security has been
stepped up across Scotland after Thursday's blasts.
The G8 leaders
were expected to announce a joint position on climate change -
originally scheduled for Thursday - later in the day.
Mr Straw said the
attacks had created a united front at the summit.
We were moving
towards agreement on all these key issues of Africa and climate change
and many other issues as well," he said in an interview .
"What it has
emphasised however is that the disagreements which sometimes take
place around the room, of course they do, between leaders and
countries and infinitesimal compared with what it is that unites all
the world leaders who are here assembled in Gleneagles."
The G8 leaders
insisted much had been achieved.
on climate change have gone very well," said Canadian Prime Minister
Paul Martin, referring to talks held in the absence of UK Prime
Minister Tony Blair who had temporarily travelled to London for police
"We have noticed a
shift in the American position," French President Jacques Chirac said
late on Thursday.
KOIZUMI WINS POSTAL REFORM VOTE
house of parliament has narrowly approved plans to privatise the
country's huge postal system.
The move is set to
create the world's largest bank, as Japan Post controls 350 trillion
yen ($3.2 trillion) in savings and insurance funds.
The 233-228 vote
was a victory for Prime Minister Junichiro Koizumi, who had pledged to
push the reforms through before leaving office in 2006.
But it was a tight
call, with members of his own party voting against him.
Under the proposed
reforms, Japan Post would be split into four entities in 2007 in the
hope of stimulating competition. Its savings and insurance arms would
have to be sold by 2017.
Advocates of the
reforms claim that privatisation will make more efficient use of the
service's huge funds for investment.
But the country's
300,000 postal employees - a powerful lobbying group who are also
instrumental in mobilising rural voters - opposed the bill, fearing
for their jobs.
Many ministers in
Mr Koizumi's own party, the Liberal Democratic Party (LDP), were also
against the move, fearing it would threaten their support base.
The legislation is
expected to be sent to the upper house later on Tuesday.
But even rejection
by the upper house would not block the bill, since the lower house can
override it with a second vote.
Mr Koizumi made
privatisation one of his earliest priorities when he came into office
He had said that
if the lower house failed to pass the reform, it would be tantamount
to a vote of no confidence, raising the threat of new elections.
ARABIA TO BUILD NEW INDUSTRIAL CITY
Saudi Arabia is
setting up a new industrial city that could attract investments of up
to $30.6 billion and could herald a new era of industrial development
in the oil rich kingdom.
Abdullah bin Abdul Aziz laid the cornerstone last week for this new
industrial city on the Red Sea coast and launched a series of
multi-billion-dollar ventures, it was reported.
The new city, to
be called "Yanbu 2," is the twin of the existing Yanbu industrial city
and will cover an area of 66 sq km.
Prince Saud bin
Abdullah bin Thanayan, chairman of the government's Royal Commission
of Jubail and Yanbu, earlier said the commission would spend 12
billion riyals on infrastructure for Yanbu 2, "which is expected to
attract investments worth 115 billion riyals". Yanbu 2, which will
host basic, secondary and light industries, is scheduled to be
completed by 2019, he told the state SPA news agency. Saudi Arabia
announced a series of mega-projects in May worth tens of billions of
CARMAKERS REVERSE SALES SLIDE
Motors (GM) and Ford have ended a run of bad news with both firms
revealing a rise in US sales.
GM said sales had
surged 41% to a total of 558,092 sales compared to the same time 2004
when it sold 380,267, boosted by an aggressive discounting programme.
Ford said sales
had risen a mere 0.7% to 289,449 vehicles from 287,381 sales last year
- ending 12 months of falls.
But, the news was
not so good for Ford once foreign brands were excluded - without these
vehicle sales fell 2.5%.
Asian rivals have
been eating into the US car market recently forcing US firms to cut
production, prices and jobs.
The US arm of
DaimlerChrysler - Chrysler, the last of the big three US automakers -
also revealed a small 1% rise in June sales.
EQUITY RELEASE SHOWS SHARP FALL
The amount of
money Britons are unlocking from their property has fallen to its
lowest level for nearly four years, official figures show.
During the first
three months of 2005, Britons withdrew £6.42bn of equity from their
homes, the Bank of England said.
This compares with
£8.28bn for the final quarter of 2004 and £15.93bn for the same period
The fall in
withdrawals, also called equity release, adds to signs that mortgage
borrowing is slowing.
allows homeowners to unlock capital from their home's value.
The money is
commonly used to consolidate debts or borrow money to finance home
improvements, or even to provide a retirement income.
MOVES TO CURB COTTON SUBSIDIES
subsidies which have fuelled a long-running trade dispute with other
countries are to be scrapped, the Bush administration has revealed.
The US government
will ask Congress to pass legislation to repeal subsidy programmes
after the World Trade Organization ruled they were illegal.
The move came on
the same day that Brazil threatened to raise tariffs on US imports in
say US subsidies distort prices and harm competition.
The WTO ruled in
March that US support for cotton farmers - which critics claim
totalled $2.7bn between 1999 and 2003 - was unfair and gave it until
June 30 to take action.
central bank said it expected the capital flight from Russia to get
worse in the second half of 2005, with $5.5 billion (4.6 billion
euros) set to leave the country, according to preliminary statistics.
The figure is a
sharp increase on the first half, when $900 million were transferred
out by international investors.
$5.5 billion projected figure represents an improvement compared with
the $6.2 billion lost in the second half of 2004.
transfers out of Russia increased five-fold during 2004 as the Yukos
affair and a banking crisis made international investors wary of the
risks to business in the former Soviet Republic.
Supachai Panitchpakdi has warned there was "no agreement in sight" for
removing the Western farm subsidies that present trade barriers to
African and developing countries.
director general of the World Trade Organization who was speaking
ahead of the Group of Eight summit in Gleneagles, Scotland, said a
"serious formula" for reducing agricultural subsidies ìis still far
ahead of us.
EUROPEAN STEEL MAKERS CUT OUTPUT
manufacturers have reduced their production levels in 2005 in response
to a global slowdown in demand and an increase of production capacity
in China, the main export market during the record year of 2004. One
by one last week, Europe's largest manufacturers announced cuts in
production for the third quarter of 2005, following on from reductions
in the second quarter.
largest producer Mittal Steel said it would reduce production by a
million tonnes in the third quarter in order to 're-establish a
balance between global offer and demand' and 'help reduce stocks'.
THAI RICE FUTURES TRADE HITS RECORD LOW
Not a single Thai
rice futures contract was traded on Monday last as investors waited
for the government to decide what to do with its huge stocks, brokers
said. There was no factor to move the market and no one wanted to take
any positions until they know what the government will do with its
stocks, said one broker
Most supplies were
drained into government stocks and the rest kept by millers and
neither has said what they would do with it, said another broker.
The government is
sitting on 5 million tons of paddy, equivalent to 3 million tons of
milled rice, bought from farmers since November to keep domestic
prices up in the worldís largest exporter of rice.
KUWAIT BANK HIKES KEY RATE TO 5.5PC
The Central Bank
of Kuwait said it is hiking the key dinar discount rate by a quarter
of a percentage point to 5.50 per cent effective Sunday last, the
eighth hike since last summer in lockstep with the US Federal Reserve.
The Bank raised
its discount rate by 25 basis points so it becomes 5.50 pc instead of
5.25 pc, as of Sunday, July 3, 2005, Bank Governor Sheikh Salem
Abdulaziz al-Sabah told state news agency KUNA in a statement.
WORLD BANK LOOKS AT NEW CHINA LENDING
The World Bank is
set to begin talks with China on a new five-year loan programme that
will encourage the Asian powerhouse to focus on economic inequality
and environmental problems, a top official was quoted as saying.
In a interview,
the World Bank's chief of mission to China, David Dollar, said the new
programme should see lending to Beijing of between $1 billion to $1.5
billion a year.
BIRD FLU REACHES THE PHILIPPINES
has discovered its first case of bird flu with infected ducks being
found in a town north of the capital, Manila.
The trading of
poultry has been banned for a week around the town of Calumpit in
It is not yet
clear if it is the H5N1 strain which has killed more than 50 people
across Asia since 2003.
He said samples
had been sent to Australia to see whether the Philippine bird flu
strain was the same as that which caused human fatalities elsewhere in
IRANIANS TO TRAIN IRAQ'S MILITARY
Iran and Iraq say they will launch broad military co-operation
including training Iraqi armed forces.
"It's a new
chapter in our relations with Iraq," said Iranian Defence Minister
Admiral Ali Shamkhani.
He was speaking at
a joint news conference in Tehran with his Iraqi counterpart Saadoun
the neighbours - who fought a bitter war from 1980 to 1988 - have
improved greatly since the overthrow of Saddam Hussein in 2003.
This is the first
visit to Iran by an Iraqi military delegation since the war, in which
a million people died, started.
OIL PRICES BOUNCE BACK FROM LOWS
Oil prices have
bounced back from the early heavy falls triggered by the series of
bomb attacks in London.
US light sweet
crude recovered from a low of $57.20 a barrel, rising to $60.73, down
55 cents on the day.
In London, Brent
crude fell to a session low of $55.55, before recovering to $59.28,
down 57 cents.
HEATWAVE BOOSTS US RETAIL SALES
US consumers, the
main drivers of the world's largest economy, have returned to the
shopping malls after a heatwave generated better-than-expected sales.
The arrival of
summer gave US retailers their best showing in months in June, with
retailers such as Target Corp and JC Penney raising earnings
up summer clothing and air conditioners as retailers kept discounts to
Wal-Mart reported its biggest sales leap in 13 months.
sales at stores open at least a year were up 4.5%, ahead of forecasts
for a gain of between 2% and 4%.
EUROZONE BASE RATES ON HOLD AT 2%
Central Bank (ECB) has kept the cost of borrowing within the 12-nation
eurozone on hold at 2%.
Frankfurt-based bank's decision comes despite growing pressure in some
quarters for a cut in interest rates.
Analysts said the
weaker euro and signs of improved business confidence in some eurozone
countries had dented the case for a cut in rates from current lows.
officials in Germany, Italy and Austria had been pushing for a cut to
boost their flagging economies.
UK RATES LEFT UNCHANGED AT 4.75%
UK interest rates
have been kept on hold at 4.75% following the latest meeting of the
Bank of England's monetary policy committee (MPC).
Pressure for a cut
had been rising, and analysts said it was unclear whether the decision
had been influenced by explosions in London.
expectations have now grown that rates will be cut in August.
GM SEES RECORD CAR SALES IN CHINA
General Motors has
reported record sales in China, moving the US giant closer to German
rival Volkswagen in the world's third-biggest car market.
GM said it sold
308,722 vehicles in the first six months of 2005, up 18.9% on the
expanded its share of the Chinese market - GM's second biggest after
the US - to 10.9% in June.
seen its dominance in China slip from about a quarter of the market to
an estimated 13% to 20%.
The company made
profits of $417m in China last year, just $3m higher than in 2003.
CHINA CALLS FOR UNOCAL BID REVIEW
Chinese oil giant
CNOOC has asked a key US panel to review its proposed $18.5bn (£10bn)
merger with oil and gas producer Unocal.
The bid is
politically controversial and the firm hopes a review by the Committee
on Foreign Investments in the US (CFIUS) will advance its cause.
CNOOC, which has
always said it wanted a review, said its voluntary request was aimed
at clearing up doubts.
politicians oppose CNOOC's bid on national security grounds.
EMIRATES TIGHTENS CAMEL RACE LAWS
The United Arab
Emirates has passed a law tightening a ban on children taking part in
Under-18s are not
to take part in camel racing "in any form", says a decree signed by
Gulf states have
been under fire over the sport, in which young children, many of them
trafficked from South Asia, have been trained as jockeys.
SERVICES GROWTH MAY 'BOOST' US
performance from the US services sector last month has raised hopes
that the economy may be strengthening.
businesses, which account for two thirds of US economic activity,
showed increased growth in June, the Institute of Supply Management
The figures, which
were stronger than expected, raised hopes of a strong increase in new
jobs during the month.
BANK OF ITALY DEFENDS BID ACTION
The Bank of Italy
has defended its actions in the cross-border battle for Banca
Antonveneta amid criticism that it is biased against foreign
Dutch bank ABN
Amro has been locked in a bid tussle with Italian suitor Banca
Popolare Italiana to buy Antonveneta.
The Bank of Italy
has come under fire for allowing Pop Italiana to raise its stake in
Antonveneta to nearly 30%, while delaying similar attempts by ABN.
This has led to an
inquiry into Bank of Italy chief inspector Franceso Frasca.
Mr Frasca is being
investigated by prosecutors in Rome over possible abuses of office.
ABRAMOVICH FIRM IN $2.3BN PAYOUT
Russian oil firm in which Chelsea football club owner Roman Abramovich
owns a majority stake, is to pay a $2.29bn (£1.3bn) dividend.
The payout has
triggered speculation that Sibneft could be sold.
Kommersant said two state-owned firms - gas giant Gazprom and oil firm
Rosneft - were interested in buying the company.
US INDUSTRY AND SHOPPERS UPBEAT
Faster-than-expected growth in the manufacturing sector and a surge in
consumer confidence in June are boosting hopes of US economic
The Institute for
Supply Management's (ISM) manufacturing index surged to 53.8% in June,
thanks to rising orders.
forecast 51.5% - a figure above 50% indicates growth.
UK'S NEW CAR SALES STALL IN JUNE
New car sales in
the UK fell in June as high interest rates and more expensive petrol
According to the
Society of Motor Manufacturers and Traders (SMMT), 227,623 new cars
were sold in June, 4.8% less than a year earlier.
that may have deterred buyers and hit supplies was the collapse of MG
Rover, the SMMT said.
remained the best-selling car in June, with Vauxhall's Astra in second
place and its Corsa in third.
Total sales in the
first six months of 2005 were 1.23m, down almost 6% from a year ago.
UK MANUFACTURING STAGNANT IN MAY
output was flat in May, official figures have shown, despite
expectations of a small fall.
The Office for
National Statistics (ONS) said factory production was unchanged in
May, compared with forecasts for a 0.2% decline.
manufacturing output in the three months to May was down 1.9% against
the previous three months, the weakest performance since August 2002.
Analysts said the
data may put pressure on the Bank of England to cut rates.
SRI LANKA'S GROWTH TURNS UPWARDS
economic growth has started to recover from the tsunami which hit the
island state in December.
Expansion for the
year to March was 4.8%, up from the 4.4% recorded three months
But the central
bank warned that the after-effects of the tsunami which killed
thousands and devastated tourism and fishing could still depress
It also said
instability within the government could pose a threat to continued
It is predicting
growth of 5.3% for 2005, down from 5.4% in 2004 and 5.9% the year
MICROSOFT PAYS OUT $775M TO IBM
Microsoft is to
pay $775m (£438.4m) to computer giant IBM to settle an anti-trust
settlement, the software maker will also give IBM a $75m credit for
its computer programs.
Microsoft said the
settlement resolves discriminatory pricing and overcharging
allegations made by IBM.
TRADE 'VITAL' TO AFRICAN PROGRESS
Paul Wolfowitz has
said action is urgently needed on boosting trade and cutting subsidies
if Africa is to meet the UN's Millennium Development Goals.
The World Bank
director told a conference in London that the achievement of key
targets on poverty reduction required action on trade in addition to
increased aid and reduced debt.
He pointed out
that Africa's share of global trade has dropped from 3.5% in 1970 to
around 1.4% in 2005.
FIRMS JOIN GLOBAL POVERTY FIGHT
Companies need to
work alongside governments to fight poverty in Africa, Prime Minister
Tony Blair has told business leaders.
sector is the the engine for growth," Mr Blair said in a videolink to
the G8 business summit on Africa in London.
Sir Mark Moody-Stuart said business is committed to promote a
"successful and prosperous Africa".
community stands ready to play its full part," Sir Mark said.
Mr Blair used his
opening address at the summit, which is held ahead of the main
Gleneagles G8 summit, to encourage improved public private
for Africa is already fostering vigorously the private sector
engagement needed to create wealth, jobs and the momentum for growth,"
Mr Blair said.