News & Current Affairs

July 19, 2009

Fugitive linked to Jakarta blasts

Fugitive linked to Jakarta blasts

Ritz-Carlton in Jakarta

Tributes are left for those killed in the hotel attacks

Indonesian officials say there are “strong indications” a key wanted fugitive was behind Friday’s deadly attacks on two hotels in Jakarta.

Noordin Mohamed Top is wanted for plotting the Bali bombings of 2002 and 2005 and other Indonesian attacks.

Nine people, including two suicide bombers, died in the attacks on the Ritz-Carlton and JW Marriott.

At least four of Friday’s victims are said to be foreigners but have not all been formally identified.

Police in the Indonesian capital are studying DNA and other evidence to try to identify those behind the attacks.

The anti-terror chief, Ansyaad Mbai, has told the News he believes there are strong indications that Noordin was the mastermind behind the blasts.

NOORDIN MOHAMED TOP
Noordin Top (archive image)
Born in Malaysia, fled to Indonesia after 9/11
Wanted for planning bombings on Bali in 2002 and 2005 and other attacks
Said to have split from Jemaah Islamiah over strategy disagreements and set up new group
Main accomplice Azahari Husin killed by police in 2005
Escaped police raid in 2006 and continues to evade capture

Noordin was said to be a key financier for the Jemaah Islamiah militant group but is now thought to have set up his own splinter group.

Jemaah Islamiah has links to al-Qaeda and has a long track record of bomb attacks in Indonesia including the 2002 Bali bombings, which killed more than 200 people.

Friday’s bombs contained nails, ball bearings and bolts, identical to ones used by Jemaah Islamiah, police said.

Mr Mbai said he believed the aim of the attacks was to embarrass Indonesia’s government at a time when the country was enjoying a greater degree of stability than it had in the past.

The Indonesian people have been truly shocked by these attacks as they thought they had put events like this behind them.

Investigators on Friday recovered an unexploded bomb and other explosives material from what they said was the “control centre” for the attacks – room 1808 in the Marriott.

The attackers paid to stay at the hotel and smuggled in the explosives before detonating them in two restaurants on Friday.

CCTV footage showed one attacker wearing a cap pulling a bag on wheels into the Marriott restaurant, followed by a flash and smoke.

Security has been tightened across Indonesia in the wake of the attacks, with 500 troops put on standby to support police in the capital.

‘Shoulder to shoulder’

A New Zealander, businessman Tim Mackay, has been confirmed killed.

I strongly condemn the attacks that occurred… in Jakarta and extend my deepest condolences to all of the victims and their loved ones
Barack Obama

Indonesian police say Australians Nathan Verity and Garth McEvoy also died.

Their countryman, diplomat Craig Senger, was at the same breakfast meeting. He is missing and feared dead.

A health ministry report said a Singaporean and an Indonesian were also confirmed dead.

At least 17 foreigners were among the wounded, including eight Americans.

Other foreign nationals wounded included visitors from Australia, Canada, Hong Kong, India, Italy, the Netherlands, Norway, South Korea and the UK.

President Susilo Bambang Yudhoyono condemned the attacks as “cruel and inhuman”.

US President Barack Obama said: “I strongly condemn the attacks that occurred… in Jakarta and extend my deepest condolences to all of the victims and their loved ones.”

Australian Foreign Minister Stephen Smith is due to arrive in Jakarta on Saturday.

He said he wanted to stand “shoulder to shoulder with Indonesia at this terrible time”.

The Manchester United football team had been booked to stay in the Ritz-Carlton next week ahead of a game in Jakarta.

The team has cancelled the Indonesian leg of their tour.

The attacks come just weeks after the peaceful presidential elections.

The country of 240 million people has been praised in recent years for maintaining a pluralist democracy while finding and punishing radical Islamists responsible for the series of bombings more than five years ago.

Jakarta map

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July 7, 2009

Fans and family remember Jackson

Fans and family remember Jackson

Michael Jackson’s family and fans have said farewell to the pop superstar at an emotional memorial service.

Jackson’s daughter Paris, 11, fought back tears to describe him as as “the best father you can ever imagine”.

The singer’s coffin was placed in front of the stage during the event at the Staples Center in Los Angeles after an earlier private funeral.

Lionel Richie, Stevie Wonder and Mariah Carey paid tribute before the family joined a sombre finale on stage.

Stevie Wonder said: “This is a moment I wished I didn’t live to see come. Michael I love you.”

The crowd cheered as the golden flower-draped coffin entered the arena to the strains of a choir singing “Hallelujah, hallelujah, we’re going to see the King” from the song Soon And Very Soon.

Michael Jackson's family

Michael Jackson’s brothers wore his trademark single gloves

Mariah Carey opened the show, performing I’ll Be There, ending with the words: “We miss you.”

Jackson’s brother Jermaine took to the stage to perform the song Smile. It was said to be the King of Pop’s favourite song, featuring the lyric: “Smile though your hearts are aching.”

Others paying tribute included Lionel Richie, Jennifer Hudson, Queen Latifah and Brooke Shields.

Some sang, while others spoke about their memories of the King of Pop and his influence on music and society. Many embraced family members as they left the stage.

The BBC’s Matthew Price, who was in the arena, said: “It’s had to clearly see the family but the glimpses I’m getting show a family both in mourning, and in celebration of his life.

“There are moments of the intensely personal in this very public event.”

Civil rights leader Reverend Al Sharpton gave a fiery speech, telling Jackson’s children: “There weren’t nothing strange about your daddy.”

“It was strange what your daddy had to deal with but he dealt with it.”

Michael was a personal love of mine, a treasured part of my world, part of the fabric of my life in a way that I can’t seem to find words to express
Diana Ross

Motown boss Berry Gordy, who signed the Jackson Five, ended his tribute with the words: “Michael, thank you for the joy, thank you for the love. you will live in my heart forever.”

Actress Brooke Shields, who first met Jackson when she was 13, broke down in tears as she took to the stage.

Describing Jackson as “pure”, she said: “He was often referred to as the King but the Michael that I knew was always the little prince. Michael saw everything with his heart.”

The 17,500 people in the arena cheered as clips of Jackson’s life and music were played on big screens.

Messages were read from absent guests including former South African President Nelson Mandela, poet Maya Angelou and singer Diana Ross.

Stevie Wonder performing
The stage was adorned with flowers and a tribute to Jackson

The message from Ross was read by Smokey Robinson. “I’m trying to find closure,” it said.

“I want you to know that even though I am not there at the Staples Center I am there in my heart.

“Michael was a personal love of mine, a treasured part of my world, part of the fabric of my life in a way that I can’t seem to find words to express.

“Michael wanted me to be there for his children and I will be there if they ever need me. I hope today brings closure for all those who loved him.”

Other people taking part include Usher and Britain’s Got Talent finalist Shaheen Jafargholi, who has played the young Michael Jackson in the musical Thriller – Live.

The stage is adorned with the star’s image, alongside a mural carrying the words: “In Loving Memory. Michael Jackson King of Pop – 1958-2009.”

Millions of fans around the world are watching on TV.

Roads were closed off and concrete barriers erected outside the Staples Center, where Jackson had been rehearsing a comeback show before his sudden death aged 50 on 25 June.

More than 1.6 million fans applied to attend the memorial event, with 8,750 people chosen at random to receive a pair of tickets.

One person not attending is Jackson’s former wife and the mother of two of his children, Debbie Rowe.

“The onslaught of media attention has made it clear her attendance would be an unnecessary distraction to an event that should focus exclusively on Michael’s legacy,” her lawyer Marta Almli said in a statement.

About 50 cinemas across the US are showing the memorial live. It is also being relayed to big screens across the UK, Australia and Hong Kong.

Family members earlier attended a short funeral service at the Forest Lawn cemetery.

November 20, 2008

Asia markets follow US share drop

Asia markets follow US share drop

Man walking past share board

Concerns are increasing over the scale of the slowdown

Asian markets have plummeted after the Dow Jones share index in New York fell to its lowest level in five years, amid fears of a protracted global recession.

Japan’s Nikkei index ended 6.8% down and Hong Kong’s main index fell 5.5%.

Data showing Japan’s exports to Asia dropped in October for the first time since 2002 added to fears over the scale of the economic downturn.

On Wednesday, Wall Street shares fell 5% after the US central bank slashed its economic growth forecasts for 2009.

‘No positives’

Japan and other Asian nations are heavily reliant on exports.

Sales to other Asia nations have helped to limit the impact for Japanese exporting firms suffering from lower demand from the US and Europe.

But exports to Asia fell 4% last month from a year earlier, showing the extent of the global slowdown.

Several East Asian countries – including Japan, Singapore and Hong Kong – are already in recession and the thought that the US may be about to join them has been enough to send shares tumbling across the region.

Man walks past an electronic share price board in Toyko, Japan, 20 November 2008

Share prices in Tokyo and elsewhere slumped

Bad news from the US worries Japanese firms like Toyota and Nintendo which usually depend on American consumers to make a lot of their profit, our correspondent adds.

“We’ve gone past the poor sentiment stage,” Miles Remington, head of Asian sales trading at BNP Paribas Securities in Hong Kong, told the Associated Press news agency.

“People are looking for any kind of positive and there are just no positives out there. Everyone seems to be united in the depressed global outlook. Whether it’s commodities or equities, everything seems to be on a downturn.”

US slowdown

On Wednesday, the US Federal Reserve said the country’s gross domestic product – the value of all goods and services – could be flat or grow only marginally this year, and might shrink in 2009.

It said positive economic growth was only likely to return in 2010 and predicted further interest rate cuts might be necessary.

Month-on-month US consumer prices fell by 1% in October – the biggest drop in 60 years – which has reinforced fears of rapid slowdown.

Car problems

Carmakers were among the biggest fallers as the Dow Jones average closed down 427 points at 7,997 on Wednesday – dropping below the 8,000-level for the first time since 2003.

GM shares were down 15% at a 66-year low, while rival Ford slumped to a 26-year low.

Prospects for an industry bail-out remain uncertain and politicians have been arguing over a compromise deal.

Chief executives from General Motors, Ford and Chrysler say the firms could collapse unless they receive aid fast – which could lead to millions of job losses across the US.

But the automakers have faced fierce questions on Capitol Hill about their request for a $25bn (£16.6bn) bail-out deal.

Investors are concerned about how a possible bankruptcy among US carmakers could further hurt an already fragile economy.


What is your reaction to the stock market losses? Have you been affected by the downturn? You can send us your experiences

October 2, 2008

US markets wary over rescue deal

US markets wary over rescue deal

Wall Street trader

The markets remain nervous

US shares have fallen sharply with investors cautious over whether the House of Representatives will back the revised bank rescue plan.

The House is due to discuss the scheme later, with a vote expected on Friday. The bill successfully passed through the US Senate on Wednesday.

On Wall Street, the Dow Jones index was down 263 points or 2.4% at 10,571, a slide dragging European shares lower.

The falls came as France said it would host a summit on the financial crisis.

The UK’s FTSE 100 closed was down 1.8% to 4,870.3 points while Germany’s Dax index shed 2.5% and France’s Cac 40 lost 2.3%.

Sentiment was further hit by glum economic data – showing that the number of people filing for new unemployment benefit claims rose to a seven-year high, while factory orders had seen a steeper-than-expected drop in August.

European talks

The office of French President Nicolas Sarkozy said the special meeting on Saturday would discuss a co-ordinated response to the financial turmoil amongst European members of the G8 ahead of a meeting of world finance leaders in Washington next week.

UK Prime Minister Gordon Brown is due to attend, together with German Chancellor Angela Merkel, Italian Prime Minister Silvio Berlusconi and European Central Bank President Jean-Claude Trichet.

Investors are still concerned about the efficiency of this rescue plan and how it can help the global economy
Aric Au, Phillip Securities

But with just two days to go before the talks start, EU members are deeply divided, correspondent said.

France and Holland favor a European response to help banks hit by the credit crisis while Germany and Luxembourg believe a joint rescue plan is not necessary.

European leaders have denied speculation that they wanted to establish a unified 300bn euro ($418.4bn; £236bn) banking rescue deal along the same lines as the US plan.

The rescue idea was said to be being proposed by France, but Mr Sarkozy insisted that there were no such plans.

“I deny both the amount and the principle [of such a plan],” he said.

‘Essential’

In the US, a number of changes had to be made to the $700bn (£380bn) bail-out plan in order to help win approval in the Senate.

These include raising the government’s guarantee on savings from $100,000 to $250,000, tax breaks to help small businesses, expansion of child tax credit, and help for victims of recent hurricanes.

President George W Bush said that the package was “essential to the financial security of every American”.

However, economists said doubts remained about how effective the package would be.

“Investors are still concerned about the efficiency of this rescue plan and how it can help the global economy,” said Aric Au of Phillip Securities in Hong Kong.

McCain and Obama

US presidential hopefuls John McCain and Barack Obama, who both returned from the campaign trail for last night’s Senate debate, voted in favor of the rescue plan.

Senate majority leader Harry Reid, a Democrat, said he was happy with the result and praised both presidential candidates for voting.

“I think it shows that when we work together we can accomplish good things,” he said.

Mitch McConnell, leader of Republican senators, was also in jubilant mood.

“This was a measure that was much needed, to unfreeze the credit markets and get America’s economy working again,” he said.

September 22, 2008

‘Thousands ill’ due to China milk

‘Thousands ill’ due to China milk

Nearly 13,000 children in China have been hospitalized due to tainted Chinese milk powder, officials say.

China’s health ministry said 104 out of 12,892 babies showed serious symptoms.

Four infants have died after drinking the milk of the Sanlu Group containing the industrial chemical melamine, which could cause urinary problems.

Meanwhile, in Hong Kong, a toddler has been diagnosed with a kidney stone after drinking the powder – the first such case outside mainland China.

A number of Asian and African countries have now banned Chinese dairy imports following the scandal.

Chinese police have arrested 18 people in connection with the scandal.

Premier’s pledge

At a regular news briefing in Beijing, officials from the Chinese health ministry said 12,892 infants were currently being treated in hospitals around the country.

Chinese customers queue to return suspect milk powder brands purchased at a supermarket in Hefei, Anhui province on 19/09/08

Chinese and Hong Kong authorities have recalled tainted products

They said that 1,579 babies had been treated and discharged, adding that hospitals had checked nearly 40,000 baby patients.

Meanwhile, Chinese Prime Minister Wen Jiabao said that the authorities were doing everything possible to “prevent this happening again, not just with milk products, but with all foods”.

In Hong Kong, a three-year-old girl was diagnosed with a kidney stone after drinking Chinese milk powder, the government said.

It said the toddler, who had drunk China’s Yili milk every day for 15 months, had not developed kidney disease and had been discharged from hospital.

Melamine was first found in baby milk powder made by the Sanlu Group. In total, melamine has been found in products made by 22 companies, including Yili.

Suppliers are believed to have added melamine, a banned chemical normally used in plastics, to diluted milk to make it appear higher in protein.

The additive is blamed for causing severe renal problems and kidney stones.


Are you in China? Have you used the tainted milk powder? Are you affected by the issues in this story? Send us your comments

September 19, 2008

China tainted milk scandal widens

China tainted milk scandal widens

Baby treated in Hefei, in eastern China's Anhui province

Four infants have died and more than 6,000 are sick

The scandal of tainted dairy products in China has widened, with liquid milk now found to be contaminated.

Inspectors found that 10% of liquid milk taken from three dairies was tainted with melamine.

The scandal first came to light in milk powder that killed four infants and sickened more than 6,000 others.

Suppliers are believed to have added melamine, a banned chemical normally used in plastics, to diluted milk to make it appear higher in protein.

Public trust

China’s quality watchdog, the General Administration of Quality Supervision, Inspection and Quarantine, tested liquid milk from three dairies.

Baby treated in China

Its website said 10% of the milk from the country’s two largest – Mengniu Dairy Group and Yili Industrial Group – contained up to 8.4 milligrams of melamine per kg.

Products from Shanghai-based Bright Dairy were also contaminated, it said.

The watchdog said it would “strictly find out the reason for adding the melamine and severely punish those who are responsible”.

All the batches that tested positive were being recalled, it said.

However, officials insisted most milk was safe to drink – in an attempt to rebuild public trust in dairy products.

It is not being suggested that anyone has fallen ill from drinking liquid milk contaminated with melamine.

But he says people are extremely angry to learn that more and more products have been found to be unsafe.

One 31-year-old man queuing at Sanlu offices in Shijiazhuang to get a reimbursement for medical exam payments for his baby told Associated Press news agency: “If such a big company is having problems, then I really don’t know who to trust.”

Arrests

The scandal broke last week after the Sanlu Group said it had sold melamine-laced milk powder.

Of those children made sick, more than 150 are said to have acute kidney failure.

Chinese police have arrested 18 people in connection with the scandal.

Sanlu plant in Shijiazhuang, Hebei

The scandal broke at the Sanlu Group

Twelve were arrested in the province of Hebei on Thursday on suspicion of being involved in the supply of tainted milk.

Hebei is home to the headquarters of Sanlu.

The State Council – China’s cabinet – has held a meeting to discuss the issue.

China’s official news agency Xinhua says that the council has decided to reform the dairy industry.

It says that the tainted milk powder incident “reflected chaotic industry conditions, as well as loopholes in the supervision and management of the industry”.

On Thursday, Hong Kong recalled dairy products made by the Yili group after tests found milk, ice-cream and yogurt contaminated with melamine.

China’s ability to police its food production industries has long been under question.

Health scares and fatalities in recent years have ranged from the contamination of seafood to toothpaste and, last year, to pet food exported to the US.


Are you in China? What is your reaction to the news that liquid milk has also been contaminated? Tell us your concerns

September 18, 2008

China arrests 12 in milk scandal

China arrests 12 in milk scandal

A child receiving treatment for developing kidney stones after consuming tainted milk formula sleeps in hospital in Wuhan, Hubei province, on Wednesday

Parents are queuing up for health checks on their babies

Police in China have arrested 12 more people in the scandal over contaminated milk powder, which has killed three babies and sickened thousands.

The new arrests bring the total number of people detained to 18, police in the north-eastern province of Hebei said.

Nationwide checks on milk powder are continuing, and police have confiscated more than 200kg (440lb) of melamine.

The additive is blamed for causing severe renal problems and kidney stones in babies across the country.

Of those arrested, six allegedly sold melamine, while the rest are accused of selling contaminated milk.

Suppliers to the dairy companies are believed to have added the banned chemical, normally used in plastics, to watered-down milk to make it appear higher in protein.

Widening crisis

Premier Wen Jiabao held a special cabinet meeting on Wednesday to address the baby milk crisis.

The State Council, or cabinet, admitted that regulations had failed to improve food standards.

“The Sanlu infant milk powder incident reflects chaos in the dairy products market and loopholes in supervision and administration which has not been vigorous,” it said.

Chinese parents who can afford it have been buying imported milk powder, with some in southern China crossing into Hong Kong to stock up on foreign brands.

Anger spreads

The milk scandal has sparked widespread anger among Chinese mothers, many of whom are reliant on cheap baby formula to feed their infants.

Hospital in Shenyang, northeast China

It has also raised questions about China’s ability to police its food production industries after a series of health scares – and fatalities – in recent years.

These have ranged from the contamination of seafood to toothpaste and, last year, to pet food exported to the United States.

Thousands of inspectors are checking milk production plants and selling stations across the country.

Parents are lining up for health checks on their babies.

They are also expressing anger at why Sanlu, the company first found to have sold contaminated milk, took so long to make the problem public.

At least 6,244 babies have been made ill by the milk powder, and three have died, but those numbers are predicted to rise.

Tests have shown that 69 batches of formula from 22 companies contained the banned substance.

Two of the companies involved have exported their products to Bangladesh, Yemen, Gabon, Burundi, and Burma, although it is not clear if contaminated batches are involved.

One mother told him that she was angry with both the milk producers and with what she called the “useless” quality inspection departments.

September 17, 2008

Chinese to tighten dairy testing

Chinese to tighten dairy testing

Baby treated at hospital in Xian

Babies affected developed urinary problems, including kidney stones

China says it will launch nationwide testing of all dairy products following the deaths of three babies from contaminated milk formula.

More than 6,200 babies have fallen ill after drinking milk tainted with the toxic chemical melamine, officials say.

Tests have shown that 69 batches of formula from 22 companies contained the banned substance.

The Chinese government has described the dairy market as “chaotic” and said its supervision is flawed.

Two of the companies involved have exported their products to Bangladesh, Yemen, Gabon, Burundi, and Burma, although it is not clear if contaminated batches are involved.

Kidney failure

The third fatality occurred in the eastern province of Zhejiang, Health Minister Chen Zhu said. The two earlier deaths had been reported in Gansu province.

More than 1,000 children were still in hospital, Mr Chen said, of whom more than 150 were suffering acute kidney failure.

He said all affected infants would receive free medical care.

In response, Li Changjiang, head of China’s quality control watchdog, said 5,000 inspectors would be dispatched nationwide to monitor companies and begin testing for melamine in all dairy products, he said.

It is believed that the melamine, which is used in the production of plastics, was added to the fresh milk to make it appear to have a higher protein content.

In a statement, the Chinese cabinet said the incident reflected “chaotic industry conditions and loopholes in the supervision and management of the industry”, state-run Xinhua news agency reported.

“It is necessary to learn lessons, properly deal with the incident, improve the inspection and supervision system and strengthen the management of the dairy industry,” it said.

Companies caught up in the scandal include the giant milk company Mengniu Dairy.

It says it is recalling three batches of formula made in January, after government tests found melamine in its product.

The dairy has also suspended trading of its shares on the Hong Kong stock exchange.

Bosses fired

The company at the heart of the scandal, the Sanlu Group, has fired its chairwoman and its general manager, the Xinhua agency said.

Chinese Health Minister Chen Zhu said all the seriously ill children had become ill after drinking Sanlu powered milk.

Correspondents say that melamine appears to have been added at milk collection stations, before being passed on to Sanlu.

Four officials linked to agriculture and quality control in Hebei province, where the Sanlu group is based, have been sacked, Xinhua reported.

Hospital in Shenyang, northeast China

Parent’s anger over milk scandal

The agency also said six people had been arrested in connection with the scandal and 22 were still being questioned.

Those arrested include two villagers charged with selling melamine and adding it to milk sold to the Sanlu Group.

An owner of a private food additive shop who allegedly sold the chemical to milk dealers was also arrested, as well as two milk sellers who admitted selling the tainted product, Xinhua said. Details of the sixth arrest were not given.

Sanlu made the information about the contamination of its products public last week after its New Zealand stakeholder, Fonterra – a global supplier of dairy ingredients – informed the New Zealand government, which then told the Chinese government.

Mr Li, head of the quality control watchdog, said two companies – Yashili and Suncare – exported milk powder and they were recalling their products.

On Wednesday, Bangladesh said food and commerce officials would meet this weekend to determine whether tainted products had entered the country.

Mr Li also said that melamine had also been found in a yogurt ice bar made by Yili, one of China’s biggest dairy producers, and sold in Hong Kong.

The brand has now been recalled by the Hong Kong supermarket chain Wellcome.

Confidence undermined

Mr Li said tests for melamine had not been made before, because it was banned from food products.

China is keen to try to reassure parents that it is in control of what is happening.

This scandal has undermined confidence in food safety in China and many parents are worried about what they will feed their babies, he adds.

Analysts say the incident is an embarrassing failure for China’s product safety system, which was revamped after a spate of international recalls and warnings last year over a range of goods.


Are you in China? Have you been affected by this story? send us your comments

Investors edgy as US stocks fall

Investors edgy as US stocks fall

A trader reacts to news in the Philippines

Investors are concerned that financial markets will remain volatile.

US stock markets sank in early trade on fears the bailout of insurance giant AIG would not be enough to dispel the gloom engulfing the financial world.

AIG’s rescue and a potential takeover of UK lender HBOS had earlier boosted confidence in Asia and Europe.

But markets were volatile as nervous investors tried to make sense of the dramatic events that have unfolded in recent days.

The widely watched Dow Jones industrial average was down 1.9% at 10,849.

Top UK mortgage lender HBOS, which has faced heavy selling this week, fell as much as 50% before recovering after it emerged that it was in advanced talks to be taken over by Lloyds TSB.

HBOS shares were down 13% at 160 pence in London, the biggest faller in the FTSE 100, after being the top gainer at one point.

It has been a tumultuous week on financial markets, with significant changes in the financial landscape.

Key events on Wednesday included:

  • Beleaguered HBOS in merger talks with Lloyds TSB after a steep fall in its share price
  • US insurance giant AIG being bailed out by the US government
  • Volatile stock markets as global investors remain nervous
  • Trading on the Russian stock exchange being suspended
  • Barclays snapping up key assets from Lehman Brothers after its bankruptcy

I don’t think anyone has got any or much confidence in market direction for more than a few days
Darren Winder, Cazenove

The FTSE 100 index of top UK shares was down 0.48% at 5,001.4, reversing earlier gains, with some banking shares hard hit.

Shares in Barclays were up 9.8%, Lloyds TSB climbed 7.9% while Royal Bank of Scotland was down 2.6%.

Topsy-turvy trade

Trade is likely to remain rocky amid concern that financial system instability will continue after the dramatic events of the past few days.

“I don’t think anyone has got any or much confidence in market direction for more than a few days,” said Darren Winder, a strategist at Cazenove.

AIG’s bail-out follows the collapse of US investment bank Lehman Brothers, which caused share prices to plummet across the world’s financial markets.

Another investment bank, Merrill Lynch, has been sold off to Bank of America.

France’s Cac 40 share index was down 0.24%, while Germany’s Dax index was 0.64% lower, reversing earlier gains as Wall Street opened.

Russia’s stock exchange suspended trade following steep falls in shares.

Asian shares had a mixed session. Stocks in Tokyo, Taipei, and Seoul all rose, although prices in Hong Kong, Shanghai and Australia lost ground.

Japan’s Nikkei 225 index ended up 1.2% at 11,749.79, having risen by as much as 2.3% earlier in the day. The index had hit a three-year low on Tuesday.

Hong Kong’s Hang Seng index ended down 3.6% at 17,637.19 points.

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