Housing data sinks Wall Street

Stock markets in the United States fell yesterday as signs of weakness in housing and investors' worries that authorities might be curbing stimulus efforts too soon sparked caution.

World central banks said they would scale back infusions of U.S. dollars, fueling unease triggered a day earlier when stocks sold off following the U.S. Federal Reserve's decision to slow purchases of mortgage debt. That program has been one of the key pillars of the Fed's efforts to support mortgage lending.

Yesterday's losses drove the benchmark S&P 500, which has rallied nearly 60% in six months from 12-year lows, to its worst two-day drop in three weeks.

The Dow Jones industrial averagedropped 41.11 points, or 0.4%, to 9707.44. The S&P 500 fell 10.09 points, or 1%, to 1050.78. The Nasdaq slid 23.81 points, or 1.1%, to 2107.61.

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G20 Leaders Tout Progress on Bank Regulation, But Big Issues Remain

"What would have been considered as a provocation until only recently is now seriously looked at by the G-20," Sarkozy said. He was referring in particular to the G-20's request that the International Monetary Fund look at possible ways in which the financial sector could "make a fair and substantial contribution toward paying for any burdens associated with government interventions to repair the banking system."

Several unresolved issues remain, however. U.S. officials have argued that the world's largest banks should hold much more capital than other financial companies because of the risk they pose to financial markets, but European officials have resisted and appear to be holding their ground.


There is broad agreement among leaders that banks should hold more capital, but the split hinges on whether the largest banks should hold even more than everyone else, a position the U.S. holds.

"The largest, most interconnected firms should face significantly higher capital and liquidity requirements," U.S. Treasury deputy secretary Neal Wolin told a group of financial executives Thursday.

The Financial Stability Board, an group of regulators asked by the G-20 to develop recommendations, issued a list on Friday that appeared to side with European concerns, saying it would "assess" whether to make such a move for large, systemically important banks.

The communiqué appeared to side with the FSB's view, saying "standards for large global financial firms should be commensurate with the cost of their failure." It did not say that large banks should hold even more capital than others, or even that they were considering such a position.

In other areas, the FSB was more direct. It said bank regulators "should limit" bonuses paid to employees "as a percentage of total net revenues when it is inconsistent with the maintenance of a sound capital base." This reflects an aggressive push by France and Germany to limit the amount of money banks pay executives or employees who influence the company's risk.

The FSB also said more than 50% of bonuses "should be awarded in shares or share-linked instruments" to ensure that the incentives are aligned with the "long-term value creation and the time horizons of risk." The communiqué said it "fully endorsed" the FSB's position on "aligning compensation" in this area, though it did not mention these specific percentage limits.

U.S. officials, led by the Federal Reserve, are looking to crack down on compensation as well, but they aren't expected to be as proscriptive. If European regulators decide that bonus pools should be limited to a certain percentage of revenue, this could become a major issue for U.S. officials.

Domestic regulators have always supervised their own banks differently, but there has been a push in recent years to more closely coordinate bank supervision because many large institutions operate globally. The FSB report stressed the importance of global standards on capital, compensation and derivatives.

Another area that could potentially become an issue is the regulation of over-the-counter derivatives. The FSB recommendations and communiqué said these products should be traded on exchanges "where appropriate." The White House has also held this view, but Senate Democrats, have suggested they are more inclined to require banks to process these contracts through a central clearinghouse. This is a position endorsed by the banking industry.

Congressional Democrats are pushing to overhaul financial market regulation by the end of the year, but they have run into resistance from Republicans, business leaders, and conservative Democrats worried about constraints on growth.

Some of the initiatives, such as higher capital requirements and tougher compensation rules, can be done without Capitol Hill's involvement.

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Is anyone listening?

YOU are not really listening’, Mohammad Nasheed of the Maldives told a hundred fellow heads of state and government at the ‘UN Summit on Climate Change’ at New York this week. ‘If things go as usual, we will not live. We will die. Our country will not exist.

‘We cannot come out from Copenhagen as failures. We cannot make Copenhagen a pact for suicide. We have to succeed and we have to make a deal in Copenhagen.’ He was referring to the UN Climate Change Conference to be held in December 2009 in that city (COP 15).

President Nasheed leads a predominantly Muslim nation of some 300,000 people on 26 atolls in the Indian Ocean (1,192 islets – 200 inhabited) where ecologically sustainable fisheries, and more recently tourism, have sustained the islanders’ life for thousands of years. The average ground height in the islands is a mere 1.5 metres above sea level, and now, in the 21st century, is being threatened with complete inundation by melting ice and rising ocean levels.


UN Secretary General Ban Ki-moon agreed: ‘Failure to reach broad agreement in Copenhagen would be morally inexcusable, economically short-sighted and politically unwise’.

Over the last 250 years, human activities have added further quantities of greenhouse gases (GHG) to the atmosphere, including carbon dioxide (from burning fossil fuels; coal, oil and gas in homes, factories, power stations and vehicles; deforestation), methane (from decaying natural fertiliser; domesticated cattle; termites), nitrous oxide (from fertilisers, vehicle exhausts) and chlorofluorocarbons (from refrigerants, fire-extinguishers, aerosols). The increased levels of GHG reduce the amount of solar heat reflected back into space, raising temperatures. This is already leading to radical weather changes, dissolving ice caps and glaciers, sea-level rise, increasing pollution, water shortages, reduced agricultural outputs, food scarcity, escalating health problems, migrations in search of food, etc.

Mankind’s greatest contribution to GHG, accounting for two-thirds of the climate-change effect, is carbon dioxide (CO2.). Concentrations have risen from about 270ppm (parts per million) in 1750 at the start of the industrial revolution to 280ppm by 1850, 295ppm by 1900 and to 310ppm by 1950. The rise thereafter was more rapid: 345ppm by 1985, 360ppm by 1995, 381ppm by 2005, and today it stands at around 390ppm, the natural range being 180-300ppm. We are adding approximately 2ppm annually.

As highlighted in my column printed earlier this month, human beings have been steadily but surely ramping up two critical factors in their existence: population and per-capita impact on the planet, leading to unsustainable exploitation of the earth’s resources and an overloading of its capacity to absorb human wastes. The greatest transition in human history – the exploitation of fossil fuels and the emergence of societies dependent on high energy use – now spells a form of ecological suicide.

For those who are concerned and wish to act, the internet is replete with websites that give details of the problems and recommend steps to be taken to tackle the issues, one site being 350.org.

Based on the concept that 350ppm is a scientifically defined safe upper limit for CO2 in the atmosphere, the movement is trying to immediately mobilise citizens of the planet to compel their leaders to take drastic measures for swift and bold climate action at the December UN COP15 in Copenhagen. Technical and political action must be put in place on an emergency basis to reduce and permanently maintain CO2 emissions in the atmosphere at below the 350ppm level. Registering at the site enables one to join the action as a concerned individual or as a part of an involved activists’ group this Oct 24, the ‘International Day of Climate Action’.

350.org promises that ‘There will be big rallies in big cities, and creative actions across the globe: mountain climbers on highest peaks with banners, underwater demonstrations in island nations (including the Maldives) threatened by sea level rise, churches and mosques and synagogues and ashrams engaged in symbolic action, star athletes organising mass bike rides – and hundreds of community events to raise awareness of the need for urgent action… Copenhagen may well be the pivotal moment that determines whether or not we get the planet out of the climate crisis, and your actions on Oct 24 will help our leaders realise we need a real solution that pays attention to science.’

Experts feel that there are six scenarios that could develop in Copenhagen: (1) ‘A real deal’: the US and China provide the driver for a new, ambitious and comprehensive agreement. (2) ‘Business as usual’: countries follow current national targets. (3) A limited deal: headed by, say, the G8, outside the UN Framework Convention on Climate Change. (4) A mere prolonging of the Kyoto Protocol. (5) A stretching of the Copenhagen conference into 2010. (6) ‘Window dressing’: a grand declaration but no real deal. What actually emerges will depend in no small measure on the kind of pressure citizens all over the world, including Pakistan, can exert on their leaders and governments.

Shehri, the environmental advocacy group, last week wrote a letter to Prime Minister Syed Yousuf Raza Gilani requesting him to issue a directive banning the use of suits, ties and jackets in the air-conditioned summer months in all government offices and ministries, as recently done in Bangladesh. The directive must ensure that air-conditioning temperatures are kept above 26 centigrade and heating temperatures below 18 centigrade. In the next phase, this campaign to combat climate change (plus electricity and gas loadshedding) can be extended to the private sector.

Is anyone in Pakistan really listening? Certainly not its President, who due to a ‘more important engagement of his own’ opted out of the UN Climate Change summit in New York, which was also addressed by US President Barack Obama.

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RBS to sell fund manager for £300m

Royal Bank of Scotland is selling the majority part of its £50bn asset management arm as part of a series of fund-raising moves.
RBS is engaged in the final stages of negotiating the cost of its entry into the Government?s insurance scheme for toxic assets Photo: GETTY

The disposal will break up RBS Asset Management (RBSAM), with RBS retaining the upmarket private bank Coutts, while putting the other half up for sale with a £300m price tag.

Morgan Stanley, which is advising RBS on the sale, has sent out information memorandums on the company to a series of private equity and trade buyers ahead of next month’s bid deadline.


It comes as RBS is engaged in the final stages of negotiating the cost of its entry into the Government’s insurance scheme for toxic assets, which is expected to be concluded within weeks. The bank is keen to minimise the expected increase in the state’s shareholding.

RBSAM manages money on behalf of institutions and high net worth individuals and specialises in investing in alternative asset classes, such as private equity, credit and hedge funds.

Although RBS has received several expressions of interest in Coutts, it is not believed to be up for sale. Consequently the Coutts’ assets within RBSAM are being held by the bank.

A sale of the operation is one of several actions, including a rights issue, being pursued by RBS to raise cash towards the cost of taking part in the Government’s Asset Protection Scheme (APS).

RBS is expected to have to pay up to £19.5bn to join the APS and insure £325bn of its most troubled loans against losses under an agreement made with the Government in February. That plan involves RBS issuing £19.5bn worth of non-voting 'B’ shares to the Government as a fee. Such a move will lift the Government’s stake in the business from 70pc to about 85pc.

While the bank recognises that the taxpayers’ shareholding will inevitably increase, its new chief executive, Stephen Hester, is keen to cede as little as possible.

The more cash Mr Hester can raise through disposals such as RBSAM, the less shares he will have to issue to the Government.

The bank has already sounded out major investors about backing a rights issue or share placing to raise up to £5bn and other disposals may also be considered.

This week RBS said: “As part of our overall assessment of the APS, ahead of the board making a recommendation to shareholders, the group is considering whether there are any partial alternatives to the issuance of 'B’ shares to the Government.”

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Shoppers' anger as M&S ditches famous 90-day returns policy Read more: http://www.dailymail.co.uk/news/article-1216439/Shoppers-anger-M-amp-S-ditches

Generations of shoppers remained loyal to Marks & Spencer, comforted by the knowledge it had the most generous refund policy on the High Street.

For decades there was no time limit on returning a skirt or pair of shoes, providing they were unused, there was a receipt and it could be put back on the racks.

However in 2005, the store triggered some anxiety by imposing a maximum return date of 90 days.

And now it has now emerged that the deadline has been reduced again, without any fanfare, to just 35 days.

Internet forums reveal that a number of shoppers are unhappy about the change, which appears to have been prompted by cost-cutting at the store which is celebrating its 125th birthday.


It seems to be part of a rolling policy of money-saving measures that have previously seen M&S abandon its commitment to British manufacturers in favour of cheaper foreign factories.

Shirley Read, aged 53, was caught out by the changes when she was told she could not return a £45 dress to the M&S store in High Wycombe.

Mrs Read, from Beaconsfield said 35 days was too short a time.

She said: 'I had lost a lot of weight and needed to buy a whole new wardrobe. I bought two dresses of similar design, but different colours at the end of June.

'I decided to return one, but thought it would be fine to leave it until I came back from my summer holiday because I have never had any problem taking things back to M&S.

'However, when I returned to the store in August I was told that I had missed the deadline for a return. I couldn't believe it, I had no idea items had to be taken back within 35 days and other people don't seem to know about it either.

'I felt like I was treated very badly. I was told the receipt was no longer valid, but that I could have a refund of £15 which was the price the dress had been reduced to in the sale.

'It was very stressful. I had a terrible headache and felt quite ill. I nearly collapsed in the store and they had to call a First Aid helper for me.'

Mrs Read said: 'Essentially they were trying to fob me off with £15 for a dress that I had paid £45 for. It was in pristine condition, it had never been worn and all the labels were in tact.'

She said the change would make her think twice about buying Christmas and birthday presents from M&S.

'In the past I have bought gifts earlier in the year because I don't like the crowds around Christmas. But if I do that now, I am worried that people will no longer be able to return them,' she said.

The change in policy came into effect in April, however it arrived without fanfare and many people are unaware of it.

'I think M&S should have done far more to alert customers to the change in their policy,' said Mrs Read.

Following the change, M&S now prints a date on the bottom of the receipt as the final 35 day deadline for getting a full refund.

A spokesman for the store said: 'The M&S returns policy is the best on the high street.

'We offer our customers a full refund or exchange on goods returned within 35 days, which compares favourably to our competitors, many of which offer just 28 days.

'The last date for return is clearly printed on the till receipt and the overwhelming majority of our customers return unwanted items well within this period - in fact, two thirds of them return within two weeks.'

Read more: http://www.dailymail.co.uk/news/article-1216439/Shoppers-anger-M-amp-S-ditches-famous-90-day-returns-policy.html#ixzz0SJajOESM

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UK car production falls 31.5pc as fears grow over car scrappage scheme

A pick-up in new car production driven by the launch of the scrappage scheme ended in August, sparking concerns for the health of the industry when the Government's £300m programme ends.
One industry analyst claimed the incentive plan, which encourages consumers to scrap an old car for a new model, could run out of funding as early as next week and called on the Government to extend the scheme.

UK car production fell 31.5pc in August, ending a run of three consecutive months when the decline caused by the financial crisis eased.

The scrappage scheme had helped to turn a 56.5pc year-on-year drop into a 23.7pc decline by July by boosting consumer demand for new cars. However, production fell back again in August, which is a traditionally quiet month, as scrappage schemes across Europe began to end.

Nonetheless, the success of the UK scheme means that the proportion of cars being built in the UK for the domestic market has risen to a four-and-a-half-year high of 33.8pc.

However, Paul Everitt, the Society of Motor Manufacturers and Traders chief executive, said the recovery in the market is "extremely fragile".

Car makers have cut jobs and shifts as sales have slumped and further jobs are under threat at Vauxhall after a deal between General Motors and Magna. Jaguar Land Rover, which employs 14,500 people in the UK, yesterday announced plants to close one of its sites in the Midlands.

Lord Mandelson, the Business Secretary, yesterday warned the UK manufacturing could be a "loser" from foreign ownership in light of the Vauxhall situation and Kraft's approach to Cadbury. "I am keeping a weather eye on this area," he added.

Mr Everitt, who also called for the scrappage scheme to be extended, said: "Underlying demand remains weak and the recovery is still extremely fragile."

The Government's plan runs until 300,000 cars have been registered or the end of February. As of September 13, some 215,740 vehicles had been registered under the scheme and, with September being the busiest month of the year as new registrations are launched, David Raistrick, the UK manufacturing leader at Deloitte, warned it could end imminently and at the "wrong time" for the industry.

Meanwhile, Renault shares slid 2pc in France yesterday as the company continued to suffer the fallout from the "fake crash" saga in Formula One.

ING, the Dutch financial group, was the main sponsor for Renault's F1 team but it has demanded that its emblem be taken off the car.

Spanish insurer Mutua Madrileña has done the same, claiming that its "good name" could be threatened by association with the Renault team.

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New Look ponders market listing

New Look ponders market listing
Fashion chain New Look is considering a £1.7 billion stock market flotation, it has been reported.
The group, which is owned by private equity firms Permira and Apax, as well as its founder Tom Singh, could list on the stock market during the first quarter of next year, according to the Sunday Telegraph.
Investment banks are said to be lining up to handle the flotation, with Merrill Lynch, Goldman Sachs, Citigroup and Credit Suisse all thought to be interested.
It is understood that the company is also looking for a new chairman with City experience to handle the listing, with current chairman Phil Wrigley expected to leave the group.



The possible flotation comes just over two years after the group abandoned plans to list on the stock market after a lukewarm response from investors, while a £2 billion sale of the business also failed when the company was unable to agree a price with potential suitors.
Weymouth-based New Look was founded in 1969 by Tom Singh, and was taken private in 2004 by Apax and Permira for £700 million, with Mr Singh retaining a 22% stake.
Since then its new owners have invested more than £400 million in the business, although it currently has a £1.1 billion debt.
New Look is one of the few retailers to be benefiting from the economic downturn, as cash-strapped consumers look for value for money.
Earlier this year the group reported a 10% rise in annual earnings, claiming more than a third of British women and girls had bought an item from its womenswear ranges during the year to March 28.
Underlying earnings for the year grew to £217.6 million, while like-for-like sales in the UK and Republic of Ireland were up 1.4%, compared to a 3.4% fall the previous year.
Copyright (c) Press Association Ltd. 2009, All Rights Reserved.

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New Look 'seeks stock flotation

Fashion chain New Look is poised to return to the stock market with a flotation as early as next year, according to reports.

The company was bought by private equity firms Permira and Apax in 2004, although founder Tom Singh still retains a 22% stake.

New Look is one of the few High Street retailers to have benefitted from the downturn as consumers look for value.

Reports also suggest that the company will look for a new chairman.

The owners tried to float the business unsuccessfully in 2007. They then tried to sell it, but did not receive an offer to meet their price.

But with sales improving during the downturn - they rose by 15% in the year to the end of March - the owners have been encouraged to try to float once again, the reports say.

A number of investment banks are said to be interested in handling the flotation, including Merrill Lynch and Goldman Sachs.

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Fame': Where are they now?

Another Optimistic Bunch, Determined to Live Forever
Of course. After three “High School Musical” installments, “Bandslam” and the Fox series “Glee,” “Fame” — the 1980 film that spawned a stage show and a television series or two — was due for a makeover. The new version, like the first, covers four years at a New York performing-arts high school. And while the movie, the feature debut of the choreographer and video director Kevin Tancharoen, suffers from a surfeit of flash, it nonetheless offers the undeniable power of young performers pursuing art at peak dexterity.

“Fame” revisits some of the original’s sequences, including a spontaneous lunchroom dance jam and an attempted subway suicide. But primarily it offers new predicaments for its students, among them Marco (Asher Book), an easygoing John Mayer look- and sound-alike; Jenny (Kay Panabaker), Marco’s girlfriend and a repressed actress; Neil (Paul Iacono), a goofy film director trying to finance a short; and Alice (Kherington Payne), an upper-crust dancer. Ahead of the pack are Naturi Naughton, as a classical pianist whose father disapproves of her pop-singing aspirations, and Collins Pennie, as an intense rapper-actor from the projects.

Codgers can savor the glimpses of the teachers, played self-effacingly by Charles S. Dutton, Kelsey Grammer, Megan Mullally and Bebe Neuwirth, few of whom are flattered by the camera (though Ms. Neuwirth looks great). From the original, only the actress-choreographer Debbie Allen returns, as the principal.

The 1980 “Fame,” directed by Alan Parker, melded fantastical sequences with quasi-vérité visuals, brisk editing and urban grime. It also addressed issues like stage mothers, coming out of the closet, racial competition, teenage pregnancy and demands for screen nudity.

For grit, the 2009 “Fame” offers a desaturated palette. Alice’s affair with a working-class composer merely glances at class tensions; the most daunting peril is the casting couch. Rebellion? A first-time drinker is inebriated, vomits and vows never to touch alcohol again.

A closing multidisciplinary extravaganza lets Mr. Tancharoen and his cast flaunt their chops, and viewers, as with “Hair” 42 years ago, can celebrate the glorious image of youth in full creative flower. Yet when Ms. Mullally gives a speech about why her character left show business, you’re compelled to ask: Whatever became of Irene Cara and the other stars of the first “Fame”?

“Fame” is rated PG (Parental guidance suggested). It has skeptical, repressive parents.

FAME

Opens on Friday nationwide.

Directed by Kenny Tancharoen; written by Allison Burnett, based on the motion picture “Fame” written by Christopher Gore; director of photography, Scott Kevan; edited by Myron Kerstein; music by Mark Isham; choreography by Marguerite Derricks; production designer, Paul Eads; produced by Tom Rosenberg, Gary Lucchesi, Richard Wright and Mark Canton; released by Metro-Goldwyn-Mayer Pictures. Running time: 1 hour 47 minutes.

WITH: Asher Book (Marco), Kristy Flores (Rosie), Paul Iacono (Neil), Paul McGill (Kevin), Naturi Naughton (Denise), Kay Panabaker (Jenny), Kherington Payne (Alice), Collins Pennie (Malik), Walter Perez (Victor), Anna Maria Perez de Tagle (Joy), Debbie Allen (Angela Simms), Charles S. Dutton (James Dowd), Kelsey Grammer (Martin Cranston), Megan Mullally (Fran Rowan) and Bebe Neuwirth (Lynn Kraft).

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Iran test-fires missiles amid nuclear tension

By Fredrik Dahl and Hossein Jaseb

TEHRAN (Reuters) - Iran test-fired missiles on Sunday to show it was prepared to head off any military threat, four days before the Islamic Republic is due to hold rare talks with world powers worried about its nuclear ambitions.

The missile manoeuvres coincide with escalating tension in Iran's nuclear row with the West, after last week's disclosure by Tehran that it is building a second uranium enrichment plant.


News of the nuclear facility south of Iran added a sense of urgency to a crucial meeting in Geneva on Thursday between Iranian officials and representatives of six major powers, including the United States.

An Iranian official warned "fabricated Western clamour" over the new plant would negatively affect the talks at which the six powers want Iran to agree to open its facilities to inspection to prove its programme is for power and not nuclear weapons.

Ali Asghar Soltanieh, Iran's IAEA envoy, said, referring to the six powers' concern over the new plant: "This Western approach will have a negative impact on Iran's negotiations with the 5+1 countries."

U.S. President Barack Obama said on Saturday the discovery of the secret nuclear plant in Iran showed a "disturbing pattern" of evasion by Tehran that added urgency to its talks on Thursday with world powers.

Obama warned Iran on Friday it would face "sanctions that bite" if it did not come clean.

Earlier this month, Obama dropped a Bush-era plan to deploy missiles in Poland that had been proposed as a shield amid concerns Iran was trying to develop nuclear warheads it could mount on long-range missiles.
ran's missile firepower "gives us the possibility to confront every kind of threat with a long-lasting defence deterrence," Iranian General Hossein Salami said on Sunday.

"The message of this manoeuvre is for some domineering countries whose intention is to create fear, to say that we are able to come up with an appropriate response to their enmity with high speed and precision," Salami, head of the Guards' air force, said on the Guards' website.

Iran conducts war games or tests weapons to show its determination to counter attack by foes such as Israel or the United States.

The Revolutionary Guards launched at least two different types of short-range missiles on the exercise's first day and also tested a multiple missile launcher, Iranian media said.

State radio said the Guards on Monday would test-fire the Shahab 3 missile, which Iranian officials say has a range of around 2,000 km, potentially putting Israel and U.S. bases in the Gulf within reach. It was last tested in mid-2008.

VAPOUR TRAILS

State television showed footage of missiles soaring into the sky in desert-like terrain, leaving vapour trails.

English-language Press TV said the weapons tested on Sunday included a ground-to-ground missile and a naval missile, naming them as Fateh
The United States, which suspects Iran is seeking to build nuclear bombs, has previously expressed concern about Tehran's missile programme. Iran says its nuclear work is solely for peaceful power generation purposes.

Neither the United States nor its ally Israel have ruled out military action if diplomacy fails to resolve the nuclear row.

Iran has said it would respond to any attack by targeting U.S. interests in the region and Israel, as well as closing the Strait of Hormuz, a vital route for world oil supplies.

Iran acknowledged the existence of the enrichment plant near the holy city of Qom for the first time on Monday to the International Atomic Energy Agency, the U.N. nuclear watchdog.

U.S. officials said the disclosure was designed to pre-empt an announcement by Western governments, which were aware of the site, but Iranian President Mahmoud Ahmadinejad said the plant was legal and open for inspection by the IAEA.

A senior U.S. administration official said the six powers were preparing "a set of transparency demands" focussed on the uranium enrichment plant near Qom.

"Those demands include unfettered access for the IAEA to the Qom facility, the people working there, and timelines related to its development," the official said.

Turkish Prime Minister Tayyip Erdogan said on Saturday he would discuss Iran's nuclear plans with Ahmadinejad in Tehran next month, but urged caution over new sanctions.

He said any attempt to impose sanctions on Tehran's gas industry, Iran has the world's second largest natural gas reserves, would be problematic for its neighbour Turkey.

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IMF raises 2010 global growth forecast to 3%

Pakistani stockbrokers watch the latest share prices on a monitor at the Karachi Stock Exchange, September 24. The International Monetary Fund foresees a stronger than anticipated recovery from the economic crisis, with global growth approaching three percent in 2010, world leaders have said.

The International Monetary Fund foresees a stronger than anticipated recovery from the economic crisis, with global growth approaching three percent in 2010, world leaders said.

The IMF had estimated in July a global contraction of 1.4 percent in 2009, followed by sluggish growth of 2.5 percent in 2010, but was more upbeat as Group of 20 leaders met in the US city of Pittsburgh.

"The IMF estimates that world growth will resume this year and rise by nearly 3.0 percent by the end of 2010," the Group of 20 developed and emerging economies said in a final statement to conclude a two-day summit.

Leaders of 19 rich and emerging nations plus the European Union pledged they would work together to help the world economy reach robust growth. Points: Key G20 agreements

"Our objective is to return the world to high, sustainable, and balanced growth, while maintaining our commitment to fiscal responsibility and sustainability," the group said.

"We commit to put in place the necessary policy measures to achieve these outcomes."

Asia-led growth has lifted the world out of the doldrums and France, Germany and Japan have all now officially climbed out of recession with the United States, the world's biggest economy, expected to follow later this year.

But G20 leaders were still cautious and agreed not to roll back massive stimulus measures that helped them contain a severe global recession following last year's financial meltdown.

"We will avoid any premature withdrawal of stimulus," the leaders' statement said after a summit that endorsed a shift in voting rights at the IMF to give emerging nations, such as India and China, a greater voice.

"At the same time, we will prepare our exit strategies and, when the time is right, withdraw our extraordinary policy support in a cooperative and coordinated way, maintaining our commitment to fiscal responsibility," it said.

China, which fears US deficits will destabilize the dollar, has been cheering on those calling for cuts in Washington's massive stimulus measures that have been propping up key sectors of the global economy.

G20 leaders announced Friday a grand overhaul of economic governance centered on giving the IMF a greater monitoring role and addressing imbalances in global trade and budgets that are blamed for fueling the crisis.

"We agreed to launch a framework that lays out the policies and the way we act together to generate strong, sustainable and balanced global growth," the joint Pittsburgh G20 statement said.

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Change in Subscription Accounting Rules to Benefit Apple, iPhone Profit Statements

The Financial Accounting Standards Board has approved a change in the way revenue can be recognized from products sold under the subscription accounting model, like Apple’s iPhone.

Apple uses a subscription accounting model for the iPhone (and Apple TV) to justify — under their interpretation of Sarbanes Oxley — adding new features for 2 year after the sale of the device proper. So, if they get $600 for an iPhone from AT&T, rather than putting that on the books immediately and in full, they spread it out over 24 months, recognizing a portion of the revenue each month. This also means that their earnings look smaller in the actual quarter of sale, which has led them to release two sets of numbers in recent quarters, GAAP and non-GAAP (generally accepted accounting practices).

Now, however, Apple and others, like Palm, will be able to book a large portion of that revenue up-front, in the actual quarter of sale, allowing a closer representation of actual earnings numbers.

iPod touch, of course, is not currently accounted for using the subscription method, which is why Apple believes they much charge a nominal fee for major OS updates. Whether or not that will change given the new rules is uncertain (though we hold to hope!)

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Crawford says Time Warner will sell magazine unit

CHICAGO (Reuters) - Time Warner Inc will eventually sell the Time Inc magazine unit and could buy holdings in its core entertainment category, Gordon Crawford, managing director of its largest shareholder, said during a presentation this week.

"Time Warner just spun off their cable division, they are going to sell their print division, they are going to spin off AOL and they're just going to be Warner Brothers, HBO and the Turner Networks," said Crawford, managing director of The Capital Group.

"Now, they will make acquisitions ... but they're probably going to buy just stuff in their wheel house of those businesses. They're not going to, I don't think, go very far afield from their core competency."

Crawford made the comments during a September 24 discussion at University of Southern California's Annenberg School for Communication entitled "The Art of the Long View: The Media Company of 2020."

Time Warner declined to comment on Saturday.

Time Inc's magazines include popular titles such as People and Sports Illustrated. In the second quarter, revenue at Time Inc publishing, the largest U.S. magazine publisher, fell 22 percent to $915 million due to a 26 percent decline in advertising revenue.

While Crawford did not name specific acquisition targets, he did say there would be a "winnowing process" during which weaker companies in the sector would be gobbled up.

Capital Research Global Investors held 98.6 million shares of Time Warner, or 8.32 percent of the company's total shares outstanding, as of June 30.

The presentation, which was available online, was discussed in a BusinessWeek blog posted on Friday.

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No injuries, evacuations from refinery fire in LA

LOS ANGELES (AP) — Los Angeles fire officials say they've choked off a fire burning at a Wilmington refinery, but nearby schools are being urged to keep students indoors until the smoke clears.

The fire at the 300-acre Tesoro refinery south of downtown was reported shortly after 5 a.m. and was confined to a coker unit. The cause of the fire is under investigation.

A refinery spokeswoman says the fire will have minimal effect on operations.

The fire sent a huge plume of black smoke hundreds of feet into the air. Deputy Fire Chief Mario Rueda says fuel oil to the burning machinery was shut down and more than 100 firefighters helped extinguish the blaze in less than four hours. There were no injuries.

Officials say people within a mile have been asked to stay indoors as a precaution.

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A Fifth UBS Client Pleads Guilty in Tax Case

Enter the dates in mm/dd/yyyy format.
By CARRICK MOLLENKAMP and LAURA SAUNDERS

A New Jersey businessman became the fifth UBS AG client since April to agree to plead guilty to concealing money from U.S. tax and finance authorities by using offshore accounts and companies.

In a federal court appearance Friday, Juergen Homann admitted to concealing more than $5 million in accounts at Swiss banks, including UBS. The Saddle River, N.J., man, who will be sentenced in January, faces a maximum sentence of five years in prison.


In addition to a maximum fine of $250,000, Mr. Homann agreed to pay a civil penalty of 50% of the highest balance in the account, which comes to about $3 million. The penalty is for failing to file a Foreign Bank Account Report form notifying the IRS of the account's existence. U.S. taxpayers with offshore accounts are required to file the form every year.

Neither Mr. Homann nor his lawyer were available for comment.

The plea agreement stated that "Juergen Homann has clearly demonstrated a recognition and affirmative acceptance of personal responsibility for the offense charged."

The efforts Mr. Homann undertook to conceal assets mirror those of other UBS clients who have agreed to plead guilty in the U.S. investigation of accounts held at Swiss banks. So far, two businessmen from Florida, one from New York, and one from California have agreed to plead guilty.

Hong Kong has featured as a key link to the UBS investigation. At least three UBS clients, including Mr. Homann, used enterprises set up in Hong Kong as conduits for assets or loans.

Another link to other cases: Mr. Homann was advised by Matthias Rickenbach, a Swiss lawyer who also advised businessmen who have agreed to plead guilty in the UBS inquiry. Last month, Mr. Rickenbach was indicted for conspiring to defraud the U.S.

According to a Justice Department statement Friday, Mr. Rickenbach and an unnamed Swiss banker helped Mr. Homann with the use of two Hong Kong enterprises that were featured in the scheme. Mr. Homann, for example, held millions of dollars in a Hong Kong entity called ELM Finance Ltd. that had a UBS account. In 2005, Mr. Homann moved $5 million from the ELM account to a second Hong Kong entity. The goal, the Justice Department said, was to obtain financing for Mr. Homann's U.S. business without tipping off U.S. authorities to the assets held in the ELM account.

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U.S. steps up prosecution of tax evaders

By Kim Dixon

CHICAGO (Reuters) - The U.S. government is stepping up prosecutions of wealthy individuals dodging taxes through off-shore accounts, with new cases expected to be made public "every couple of weeks," a top government attorney said on Saturday.

U.S. officials have been sifting through about 250 client names obtained through a February settlement of a criminal probe against Swiss banking giant UBS AG , alleging the bank illegally helped U.S. taxpayers hide funds offshore.

That effort, along with an amnesty program encouraging tax evaders to turn themselves in, is speeding prosecutions, one of the top U.S. lawyers working on the cases at the U.S. Justice Department said."You can expect a few every couple of weeks," Kevin Downing, a senior attorney in the tax division of the Department of Justice told an American Bar Association tax conference.

On the sidelines of the conference, Downing also told Reuters that U.S. banks that helped U.S. clients hide money off-shore are a target.

"The folks in the United States that we get information on on are obviously the easiest ones for us to pursue," he said.

"So anybody in the U.S. ... the U.S. banks helping U.S. clients set these offshore accounts up, we are doing the same thing," in going after them, he said.

In August, UBS AG agreed to disclose the names of 4,450 American holders of secret accounts at the bank, ending a related lawsuit that has begun to show cracks in Switzerland's prized banking secrecy.

"The UBS case has been a great success for the government," Downing said. "It is not an anomaly. It is the beginning of what is now a resource-intensive," process of going after other banks and countries.

The government has secured six guilty pleas so far in its effort, including one on Friday, where a New Jersey man pleaded guilty for failing to report about $6.1 million he had held in a UBS AG Swiss bank account.

On a parallel track to the UBS case, the government last Monday extended a temporary amnesty program by three weeks to October 15, to encourage wealthy Americans with undeclared assets abroad to come forward.

Those taking part in the amnesty program pay reduced penalties and generally avoid criminal prosecution.

Downing also said the government has "made a lot of headway" in dealing with foreign banks, Downing said. "Let your clients know if they think it's just UBS they are mistaken," he told the group of tax lawyers.

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Stock futures steady ahead of jobs, housing data

By SARA LEPRO
AP Business Writer

NEW YORK -- Stock futures are little changed as investors wait for more clues on how the economy is faring.

The quiet trading Thursday follows declines in markets overseas that came after the Federal Reserve left interest rates unchanged and said the pace of economic activity has improved.

The Fed's latest assessment, while slightly more upbeat, did not come as a surprise, and a brief rally in U.S. stocks that followed the statement Wednesday quickly faded.

Investors are looking toward impending reports on jobs and housing. Investors will also be keeping an eye on the Group of 20 meeting in Pittsburgh.

Dow Jones industrial average futures are up 1 at 9,718. Standard & Poor's 500 index futures are up 0.60 at 1,059, while Nasdaq 100 index futures are up 2 at 1,728.

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G20 to police new world economic order

The Group of 20 rich and developing countries is to take on a new role as caretaker of the global economy, giving rising stars such as China and India more say in world affairs. The move means the G20 supplants the G7 and G8 - institutions dominated by rich Western economies, which will now remain forums for discussing geopolitical issues, diplomats said.

In another boost for countries such as China, the G20 unexpectedly reached a deal on reshaping the International Monetary Fund to shift more voting power to some developing countries. The deal recognized their growing economic clout and the vital role they must play in helping the world economy climb out of the the worst recession in generations.

Currently, China wields 3.7pc of IMF votes compared with France's 4.9pc, although the Chinese economy is now 50pc larger than that of France.

G20 leaders pledged in a draft statement to keep some stimulus supports in place until a recovery is clearer.

They also agreed to rein in financial industry excesses that led to the credit crisis, which first erupted in 2007, and to work together to tighten rules on how much capital banks must keep on hand to absorb losses.

The final version of the communique will be issued when the leaders wind up their meeting on Friday evening.

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Man charged with conspiracy in US terrorism investigation

Najibullah Zazi targeted New York City subway system for attack, according to investigators
A young Afghan immigrant, Najibullah Zazi, has been charged with conspiracy to use weapons of mass destruction in what investigators suspect was a plot to bomb New York's transport system.

According to the indictment against Zazi issued today, the 24-year-old airport bus driver spent the past year plotting the attacks but in the past fortnight began "urgently" looking for help to manufacture explosives and had recently bought bomb-making supplies from beauty stores. He is also alleged to have obtained instructions on how to make explosives and made notes on them that included the specifications for the bombs used in the 2005 attacks on the London Underground and the attempt by the alleged "shoe bomber", Richard Reid, to blow up a transatlantic flight.

Zazi, who had lived in the US for 10 years, has denied the accusations. He faces up to life in prison if convicted.

According to court papers, Zazi "and others" travelled to Pakistan a year ago.

"Zazi received detailed bomb-making instructions in Pakistan, purchased components of improvised explosive devices, and travelled to New York on 10 September 2009 in furtherance of his criminal plans," court papers say.

On returning from Pakistan earlier this year, Zazi moved to Colorado where he is alleged to have rented a hotel suite this month and used the kitchen to attempt to mix explosives. FBI tests found residue of bomb-making ingredients in the vent above the stove but searches of several properties have not turned up any explosives.

Zazi and unnamed associates are alleged to have bought unusually large amounts of hydrogen peroxide and acetone products from beauty supply stores around Denver over several weeks. The papers also say that Zazi searched the internet for home improvement stores in Queens, a New York borough, and then looked to see if the store stocked another explosive component, muriatic acid.

Shortly afterwards, Zazi rented a car and drove to the city. Bomb-making notes were also found on the accused man's laptop in the car, according to the court document, including information about heating bomb components to make them highly concentrated. The court papers say that on 6 and 7 September, Zazi attempted to communicate with another person "seeking to correct mixtures of ingredients to make explosives".

"Each communication," the papers say, was "more urgent than the last."

The court papers do not specify the targets Zazi is alleged to have planned to attack but the US press has reported FBI agents as saying they believe that the New York subway train system was a likely target. They say the discovery of backpacks and mobile phones suggest that Zazi was planning an attack similar to the bombings of the London Underground and trains in Madrid.

Zazi was originally arrested in Denver with his father, Mohammed, 53, and a New York City imam, Ahmad Wais Afzali, on charges of lying to federal anti-terrorism investigators about bomb-making literature.

The New York Times reported today that investigators were forced to move against Zazi earlier than they had wished after a second anti-terrorist force indirectly tipped him off that he was being monitored by approaching the imam for assistance.

The arrests were followed by warnings of possible attacks on transit, sports and entertainment complexes.

In a memorandum prosecutors filed in court seeking to deny Zazi bail they say that he was intent to the last on carrying out an attack.

"The evidence at trial will show that Zazi remained committed to detonating an explosive device up until the date of his arrest," the prosecutors say.

The US attorney general, Eric Holder, said today that "any imminent threat" from the plot has "been disrupted".

"We are investigating a wide range of leads related to this alleged conspiracy, and we will continue to work around the clock to ensure that anyone involved is brought to justice," Holder said.

"We believe any imminent threat arising from this case has been disrupted, but as always, we remind the American public to be vigilant and to report any suspicious activity to law enforcement."

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Obama Says 'Iran on Notice' in Nuclear Standoff

President Barack Obama says Iran is on notice following the disclosure of an underground plant to make nuclear fuel that could be used to build an atomic bomb.
President Obama said the international community has put Iran on notice with its response to the revelation that the Islamic regime has been secretly building a nuclear facility.

"You had an unprecedented show of unity on the part of the world community saying that Iran's actions raised grave doubts in terms of their presentation that their nuclear program was for peaceful purposes," Obama told reporters in Pittsburgh at a G-20 summit.


"So I think that Iran is on notice that when we meet with them on Oct. 1, they're going to have to come clean," Obama said, adding that Iran can choose to give up what the U.S. says is the desire for nuclear weapons and abide by international standards, or it can continue down a path toward confrontation.

The president would not rule out military options. But he added his preferred course of action is to resolve the standoff diplomatically.

Earlier, Iranian President Mahmoud Ahmadinejad said Obama, along with the leaders of Britain and France, will "regret" accusing Tehran of hiding a nuclear facility.

"It's not a secret site," Ahmadinejad said at a news conference in New York. "If it was, why would we have informed the IAEA about it a year ahead of time. "They will regret this announcement."

Ahmadinejad said the new facility won't be operational for 18 months, so Iran did not violate any requirements of the International Atomic Energy Agency by not revealing its construction before this week.

The International Atomic Energy Agency, however, has rejected Iran's contention it must notify the agency of new facilities only six months before operations. The agency says Iran is obliged to make such a notification when it begins design of such facilities.

The Iranians said in March 2007 they were "suspending" the modification to their IAEA safeguards agreement requiring that early notification. But the IAEA countered that a government cannot unilaterally abandon such an agreement.

Obama earlier in the day demanded that Iran immediately allow international weapons monitors to inspect the nuclear facility the Islamic Republic now acknowledges it has been building for years.

Obama, joined by British Prime Minister Gordon Brown and French President Nicolas Sarkozy at the opening of the G-20 economic summit in Pittsburgh, warned Iran that it will be "held accountable" to an impatient world community if it does not fully disclose its nuclear ambitions.

"Iran has the right for peaceful power, but the size of the facility is inconsistent with a peaceful program," Obama said. "Iran is breaking rules that all nations must follow, endangering the world non-nuclear proliferation regime ... and the security of the world."

Obama's demand was echoed by Russian President Dmitry Medvedev, who called on Iran to "demonstrate readiness for full-scale cooperation" with inspectors.

Sarkozy said Iran has until December to comply or face sanctions. "This is for peace and stability," the French leader said. Brown accused Iran of "serial deception."

Secretary of State Hillary Clinton also called for an immediate probe of the site by the International Atomic Energy Agency.

Before the public condemnation, Ahmadinejad warned Obama to back off.

"If I were Obama's adviser, I would definitely advise him to refrain making this statement because it is definitely a mistake," Ahmadinejad told TIME magazine in an interview about an hour before Obama spoke.

Ahmadinejad told the magazine that Iran was not keeping anything from the International Atomic Energy Agency.

"We have no secrecy, we work within the framework of the IAEA," he said.

Click here to read the TIME article.

Iran revealed the existence of its covert uranium enrichment facility to the IAEA this week after it discovered the project's secrecy had been breached by Western intelligence agencies.

An official told FOX News that Iran revealed the existence of the second plant in a letter sent Monday to IAEA chief Mohamed ElBaradei.

Iran is under three sets of U.N. Security Council sanctions for refusing to freeze enrichment at what had been its single known enrichment plant, which is being monitored by the IAEA.

A senior administration official told FOX News that the U.S. has been tracking the secret project for years.

U.S. intelligence believes that the secret Iranian nuclear facility is in an underground tunnel complex on a military base controlled by the elite Revolutionary Guards.

The details were included in a document that Obama administration sent to U.S. lawmakers. Excerpts were provided to The Association Press by an official on condition of anonymity because the document, though unclassified, was confidential.

The document says the facility is "too small to be viable for the production of fuel for a nuclear power reactor, but may be well suited for a military purpose."

The location at the military base would also undermine Iran's claim that the program is for civilian purposes.

Iran's letter to the IAEA contained no details about the location of the second facility, when -- or if -- it had started operations, or the type and number of centrifuges it was running.

"They [Iran] have cheated three times, and they have now been caught three times," an unnamed official with access to the intelligence told The New York Times.

But one of the officials, who had access to a review of Western intelligence on the issue, said it was about 100 miles southwest of Tehran and was the site of 3,000 centrifuges that could be operational by next year.

Iranian officials had previously acknowledged having only one plant, which the IAEA has been monitoring, and had denied allegations of undeclared nuclear activities.

The last IAEA report on Iran in August said Iran had set up more than 8,000 centrifuges to churn out enriched uranium at the cavernous underground Natanz facility, although the report said that only about 4,600 of those were fully active.

The Islamic Republic insists that it has the right to generate fuel for what it says will be a nationwide chain of nuclear reactors. But because uranium enrichment can make both fuel and weapons-grade uranium, the international community fears Tehran will use the technology to generate the fissile material used on the tip of nuclear warheads.

The revelation of a secret plant further hinders the chances of progress in scheduled Oct. 1 talks between Iran and six world powers.

At that meeting -- the first in more than a year -- the five permanent U.N. Security Council members and Germany plan to press Iran to scale back on its enrichment activities. Tehran has declared that it will not bargain on enrichment.

While Iran's mainstay P-1 centrifuge is a decades-old model based on Chinese technology, it has begun experimenting with state-of-the art prototypes that enrich uranium more quickly and efficiently.

U.N. officials familiar with the IAEA's attempts to monitor and probe Iran's nuclear activities have previously told the AP that they suspected Iran might be running undeclared enrichment plants.

The existence of a secret Iranian enrichment program built on black-market technology was revealed seven years ago. Since then, the country has continued to expand the program with only a few interruptions as it works toward its aspirations of a 50,000-centrifuge enrichment facility at the southern city of Natanz.

The Associated Press contributed to this report

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Gold Stabilises Following Thursday’s Sharp Fall

The Comex Gold futures have began to stabilise and regain some strength after traded as low as $992 per ounce this morning. Gold investors have been digesting Thursday’s events which saw a volatile gold market fall more than $20 within the space of an hour.

Gold future reached $1,021 on Thursday morning in London, before a slew of economic data and comment sent equity and gold markets scrambling late in the afternoon. The US Dollar Index gained 1% and gold fell $20 to trade below $1,000.

Comments from the Federal Reserve and the European Central Bank prompted a period of volatility in the forex markets, which saw sterling come under pressure and the dollar experienced a relatively broad based rebound.
Among other factors, US Initial Jobless data supported the US Dollar, as claims were reduced exceeding analyst expectations who expected a slight increase in claimants.

The most immediate evaluation of any market volatility usually prompts debate among analysts and investors alike. For Gold investors the key details arguably surround the Federal Reserves apparent confidence in the Dollar, with Timothy Geithner stating that ‘the US backs a strong dollar to ensure it stays the world’s reserve currency’.
On Thursday, the Fed stated that it would reduce the size of its Troubled Asset Fund (TAF) following signs that the economic recovery was beginning to take hold. In its comments the Fed also reiterated that it “remains prepared to expand” liquidity if needed.

The implied message taken by some economists was that the tone of Fed’s comments indicates that inflation may not become the significant issue that many have feared.

Similarly comment from today’s G20 meeting is expected to emphasise the view that now that financial markets have stabilised. And going forward global leaders and regulators will tighten capital requirements.
Other commentators merely viewed yesterday’s events as a natural trading led correction rather than a fundamental shift in economic perspective.

Some reports suggest that the intraday spike in the Dollar triggered profit taking among bullish gold investors. Many of whom had been sitting on substantial gains following gold rise over the recent weeks and months.
Subsequently some analysts indentified that automated ‘stoploss’ orders may have been activated to add further pressure the declines through electronic trading.

Analyst views are mixed ahead of another day in which the debate will be lead by global finance ministers and central bankers, as the world focuses on the G20 meeting in Pittsburgh. Discerning investors will remain poised as market reaction unfolds further.

Gold Equities in London were generally flat this morning as investors asses their options following yesterdays steep declines.

Major international gold producer Randgold Resources (LSE: RRS) and the newly renamed mid-tier precious metal operator Petropavlovsk Plc (LSE: POG) were both unchanged on the day, while Canada based Yamana Gold (LSE: YAU) slipped 1%.

In London’s AIM market several junior gold equities made positive starts to the session although generally the trend was neutral across the sector.

Pan African Resources (AIM: PAF) lead the sector rising almost 10%, fellow African based junior GoldPlat (AIM: GDP) was also relatively strong on the AIM market today, rising over 5%.

Frontier Mining (AIM: FML) and Mariana Resources (AIM: MARL) both gained 2%.

Fiji focused gold producer Vatukoula Gold Mines (AIM: VGM) rose 1% today as it reported higher than expected gold production in the fourth quarter.

A few other gold stocks fared less well today. This morning, Western Australia operating miner Norseman Gold (AIM: NGL; ASX: NGX) maintained its full year production guidance and announced a positive pre-feasibility study of the ‘OK Decline’ project. However the stock eased 4 pence because first-quarter production was below the company forecast.

Uzbekistan focused gold miner Oxus Gold (AIM: OXS) dropped 4% this morning, while Philippines focused Medusa Mining (AIM & ASX: MML) traded lower, losing 4p per share.

Elsewhere gold equities continue to trade sideways, pending further developments.

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Review: Surrogates Returns Bruce Willis to Smart-Guy Sci-Fi

Review in a Hurry: If you're thinking that Bruce Willis + guns + robots + based on comic book = big action movie, you may be disappointed. What we have here is more like T3 director Jonathan Mostow's most outlandish, rejected Terminator sequel concepts, superimposed onto a Fahrenheit 451-style cautionary sci-fi satire (same screenwriters as T3, too). And it's fun for what it is.

The Bigger Picture: Willis still takes a beating better than any action star in the business. But there are really only two significant action sequences in what's otherwise a murder mystery set in a future world. Oh, and pretty much everyone now owns a surrogate robot body—usually a blandly prettier version of themselves—through which they can live vicariously, feeling everything good that the surrogate experiences, but insulated from any damage it might sustain.

Those who don't choose to live this way are confined to a ghetto and dubbed "dreads," possibly because they are led by a dreadlocked leader named The Prophet (Ving Rhames) whose optimism for change is portrayed in some eerily familiar iconic posters.

Against this backdrop, society gets shaken up when a couple of dead bodies appear, who seem to have died at the exact moment their surrogates were killed—a Nightmare on Sim Street, if you will. Willis is on the case, in CG-face-lifted, artificially bewigged form (he wouldn't look out of place in Robert Zemeckis' animated Beowulf).

Though the movie appears, at first glance, to be using the same modern-futuristic, all-digital-displays template of I, Robot; Minority Report; and The Sixth Day (from which it also borrows a distinctive face clamp), the strongest aspect of Surrogates is how much more well-thought-out the world of the movie is than usual. From the Japanese electronics store that sells cut-rate models to the addictive, bong-shaped devices that deliver orgasmic charges when applied to surrogate bodies.

One gets the sense that there are plenty of other interesting stories going on, apart from the one we're watching.

Perhaps most subversive, though, is the way the film tries to push home the point that wrinkles are sexy. The perfected bodies of the surrogates become slightly unsettling after a while, even as Willis, James Cromwell and (in some scenes) a relatively makeup-free Radha Mitchell are shot to make every line in their faces look like a work of art. Not exactly what you're used to from Hollywood. And when surrogate flesh is peeled back to reveal grinning robot skulls, well, it's only mildly less subtle than the face-stretching in Terry Gilliam's Brazil.

Fans of actual sci-fi literature will probably enjoy this more than fans of slam-bang action. But at less than 90 minutes, it's not long enough to bore the haters too badly.

The 180—a Second Opinion: "Technology is bad and scary" is really an overly obvious moral at this point. And if everyone uses surrogates all the time for just about everything, wouldn't most of the users get morbidly obese and die young, as the recent Gamer implied?

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Actor Randy Quaid freed on bail

Actor Randy Quaid and his wife Evi have been freed on bail after being arrested for allegedly failing to pay a hotel bill of more than $10,000 (£6,245).

The couple are accused of using a credit card they knew to be invalid at a hotel in Santa Barbara, California.

They were arrested in Marfa, Texas on Thursday following the issue of a warrant in California.

While in custody, a local sheriff drove 58-year-old Quaid to a bank so he could withdraw the bail money.

"I like to help everybody out," said Presidio County Sheriff Danny Dominguez. "It's a small town."

The Brokeback Mountain star remained in his custody during the trip but was not handcuffed. The sheriff said the actor received no special treatment.

The Quaids face charges of burglary, defrauding an innkeeper and conspiracy in June, according to the arrest warrant.

Josh Lynn, the chief trial deputy for the Santa Barbara District Attorney's office, told the Associated Press news agency that prosecutors were waiting to learn what court date would be assigned to the Quaids by Texas authorities.

"To the extent that they've tried to complete any restitution payment to the business in question, I'm sure that will help to resolve the case," Mr Lynn said.

He did not provide any further details.

Quaid, the elder brother of fellow actor Dennis, is best known for his roles in National Lampoon's Vacation, Independence Day and The Last Detail.

He won a Golden Globe and was nominated for an Emmy for his portrayal of President Lyndon Johnson in 1980s TV movie LBJ: The Early Years.

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Record-breaking baby

A three-day-old baby boy weighing 8.7 kilograms (left) lies next to an average size newborn baby at a hospital in Kisaran, North Sumatra, on Thursday. A woman gave birth to the 62-centimeter-long unnamed baby boy by Caesarean section on Sept. 21. He is the heaviest newborn ever recorded in the country, a doctor said. AP/Andi Anshari

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Massive police presence in Pittsburgh takes fight out of protesters Read more: http://www.nydailynews.com/news/national/2009/09/26/2009-09-26_massive

Police in riot gear lined the streets of the Group of 20 host city in an overwhelming show of force Friday as thousands of protesters chanted, waved signs and blew bubbles.

Unlike Thursday, when police tossed tear gas and fired rubber bullets to rout protesters who threw rocks and smashed store windows, Friday's "People's March" through the hilly streets of Pittsburgh produced no serious clashes.

The presence of hundreds of police sparked outrage among the demonstrators, who never got closer than half a mile to the G20 meeting site.

"We don't need the United Police States of America," said Cindy Sheehan, the antiwar advocate who famously protested outside former President George W. Bush's ranch in Texas. "I was telling the cops, 'You're facing the wrong way. Face the banks.'"


The patchwork group of demonstrators voiced their opinions on a myriad of issues, from the wars in Iraq and Afghanistan to workers' rights to the national debate on health care.

They chanted, "We all live in a fascist bully state" to the tune of the Beatles' "Yellow Submarine."

On Thursday, when demonstrators hit the streets without a permit, sparks flew. About 70 people were arrested and a slew of businesses were damaged.

Mike Nance, 28, a graduate student from Philadelphia, said he had no problem with so-called anarchists vandalizing businesses.

"I don't think property violence is particularly immoral," he said.

Read more: http://www.nydailynews.com/news/national/2009/09/26/2009-09-26_massive_police_presence_in_pittsburgh_takes_fight_out_of_protesters.html#ixzz0SEA6lpP0

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Water On Moon: NASA Hails ISRO

In a landmark discovery, scientists have discovered water molecules in the polar regions of the moon, courtesy ISRO and India's maiden moon mission Chandrayaan-I, NASA said today.

Instruments aboard three separate spacecrafts, one of them the Moon Mineralogy Mapper, a NASA instrument onboard Chandrayaan-I revealed water molecules in amounts that are greater than predicted, but still relatively small, it added.

"Water ice on the moon has been something of a holy grail for lunar scientists for a very long time," said Jim Green, director of the Planetary Science Division at NASA Headquarters in Washington.

"This surprising finding has come about through the ingenuity, perseverance and international cooperation between NASA and the India Space Research Organisation," he said.

From its perch in lunar orbit, NASA said M3's state-of-the-art spectrometer measured light reflecting off the moon's surface at infrared wavelengths, splitting the spectral colours of the lunar surface into small enough bits to reveal a new level of detail in surface composition.

When the M3 science team analysed data from the instrument, they found the wavelengths of light being absorbed were consistent with the absorption patterns for water molecules and hydroxyl.

"For silicate bodies, such features are typically attributed to water and hydroxyl-bearing materials," Carle Pieters, M3's principal investigator from Brown University said.

She added that by 'water on the moon,' they did not mean lakes, oceans or even puddles. Water on the moon means molecules of water and hydroxyl that interact with molecules of rock and dust specifically in the top millimetres of the moon's surface.

NASA said the M3 team found water molecules and hydroxyl at diverse areas of the sunlit region of the moon's surface, but the water signature appeared stronger at the moon's higher latitudes.

Data from the Visual and Infrared Mapping Spectrometer, or VIMS, on NASA's Cassini spacecraft and the High-Resolution Infrared Imaging Spectrometer on NASA's EPOXI spacecraft contributed to confirmation of the finding.

"The data from Cassini's VIMS instrument and M3 closely agree," said Roger Clark, a US Geological Survey scientist in Denver and member of both the VIMS and M3 teams.

"We see both water and hydroxyl. While the abundances are not precisely known, as much as 1,000 water molecule parts-per-million could be in the lunar soil. To put that into perspective, if you harvested one ton of the top layer of the moon's surface, you could get as much as 32 ounces of water," Clark said.

For more, see NASA

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