Four new cases of SARS-like virus found in Saudi, Qatar

LONDON (Reuters) – A new virus from the same family as SARS which sparked a global alert in September has now killed two people in Saudi Arabia, and total cases there and in Qatar have reached six, the World Health Organisation said.

The U.N. health agency issued an international alert in late September saying a virus previously unknown in humans had infected a Qatari man who had recently been in Saudi Arabia, where another man with the same virus had died.

On Friday it said in an outbreak update that it had registered four more cases and one of the new patients had died.

“The additional cases have been identified as part of the enhanced surveillance in Saudi Arabia (3 cases, including 1 death) and Qatar (1 case),” the WHO said.

The new virus is known as a coronavirus and shares some of the symptoms of SARS, or Severe Acute Respiratory Syndrome, which emerged in China in 2002 and killed around a 10th of the 8,000 people it infected worldwide.

Among the symptoms in the confirmed cases are fever, coughing and breathing difficulties.

Of the six laboratory-confirmed cases reported to WHO, four cases, including the two deaths, are from Saudi Arabia and two cases are from Qatar.

Britain’s Health Protection Agency, which helped to identify the new virus in September, said the newly reported case from Qatar was initially treated in October in Qatar but then transferred to Germany, and has now been discharged.

Coronaviruses are typically spread like other respiratory infections, such as flu, travelling in airborne droplets when an infected person coughs or sneezes.

The WHO said investigations were being conducted into the likely source of the infection, the method of exposure, and the possibility of human-to-human transmission of the virus.

“Close contacts of the recently confirmed cases are being identified and followed-up,” it said.

It added that so far, only the two most recently confirmed cases in Saudi Arabia were epidemiologically linked – they were from the same family, living in the same household.

“Preliminary investigations indicate that these two cases presented with similar symptoms of illness. One died and the other recovered,” the WHO’s statement said.

Two other members of the same family also suffered similar symptoms of illness, and one died and the other is recovering. But the WHO said laboratory test results on the fatality were still pending, and the person who is recovering had tested negative for the new coronavirus.

The virus has no formal name, but scientists at the British and Dutch laboratories where it was identified refer to it as “London1_novel CoV 2012″.

The WHO urged all its member states to continue surveillance for severe acute respiratory infections.

“Until more information is available, it is prudent to consider that the virus is likely more widely distributed than just the two countries which have identified cases,” it said.

(Editing by Alison Williams)

Health News Headlines – Yahoo! News

Read More..

Japanese Stocks? Yes, They Really Think So

Less than a quarter-century ago, Japan was the economic envy of the world. In 1989, Tokyo-listed shares represented nearly half the planet’s equity value, while the land beneath the city’s royal palace was worth more than all of California. American nightly news anchors practically misted up when they had to report that Rockefeller Center was turning Japanese.

Two lost decades and massive property- and stock-bubble explosions later, Japan is a one-word cautionary tale. Caught in economic and demographic atrophy—and stewarded by countless false-start prime ministers—the country has become a hub for zombie banks, a generation of disenchanted youth, and fading brands such as Sony (SNE), Sharp (6753:JP), and Panasonic (PC).

Last year, for the first time, sales of adult diapers in Japan exceeded those for babies. Factor in how the strong yen has been making the country’s critical exports more expensive, and you can see why the world’s No. 3 economy (recently pushed into third place by China) has been quicksand for investors; when international markets hit bottom in early 2009, Japan’s Nikkei slumped to levels it hadn’t seen since 1983. A Merrill Lynch survey of global fund managers discovered that their net exposure to Japan is at its lowest in a decade (subscription necessary).

Accordingly, in his Nov. 14 note, “The Sun Also Rises?”, James Hunt, portfolio manager of Tocqueville’s International Value Fund and a rare Japan bull, concedes: “One of the questions we are asked most often by investors is why we would invest in Japan. Normally, there is a slight tone of derision in the question, as if to say: ‘Everyone knows that Japan has poor demographics, a huge public debt and weak growth prospects.’ And of course, all of these things are true.”

Hunt says his case for Japan boils down to its deeply contrarian pull: “Everyone thinks Japan is sinking into obscurity,” he writes, “and this negative sentiment provides us with the opportunity to buy what we consider to be excellent global franchise businesses at attractive valuations.”

Noting that Japanese equities have lagged their U.S. counterparts by 25 percent over the last two years, Hunt writes, “The storm of negative factors affecting Japan combined with the poor market performance is just of the sort of situation that piques our interest.”

Over the last 12 years of economic stagnation, Japan’s Nikkei 225 Index has, in dollar terms, posted zero total return. Meanwhile, aggregate earnings for its profitable companies have gone from ¥438 billion ($ 5.3 billion) to ¥608 billion, while their return on equity has swelled from around 6 percent to nearly 10 percent. At the same time, notes Hunt, the price-to-earnings ratio for these profitable listings has collapsed from 24 to 15, while their dividend yield has tripled to 2.3 percent.

Of course, Japan—Nikkei, Discman, and all—could just be in the middle stages of terminal decline. Zero interest rates be damned: Jobs are scarce, deflation constantly threatens, and China and Korea are not getting any easier to compete with. Japan’s debt-to-gross domestic product ratio, now well over 200 percent, is tops in the world.

Not likely, says Hunt. “There will,” he writes, “be a moment when the broad process of [equity] de-rating has run its course. With valuation multiples having compressed to quite reasonable absolute levels, we may be approaching that moment.”

“Our discipline generally is to buy good business franchises at a discount to their intrinsic value,” he adds, “and we are not as focused as many investors on catalysts and timing for the realization of value. That being said, with expectations so low and the market having underperformed, we would not be surprised to see the sun also rise in Japan.”

Hunt isn’t alone in declaring contrarian ardor for Japan. David Herro, Morningstar’s (MORN) international stock fund manager of the decade, also thinks its risk-reward profile is increasingly attractive.

Indeed, the Nikkei has recently sprinted higher on broadening sentiment that the country’s policy makers will act forcefully to lower the yen—a development that would provide a huge boost to Japanese multinationals such as Toyota (TM), Canon (CAJ), and Fuji Heavy Industries (7270:JP). The “yen rout play” is what market bloggers are already calling the trade.

Shinzo Abe, widely viewed as frontrunner to become the next prime minister, has been calling for unlimited monetary easing to incite inflation. The current governor of the (independent) Bank of Japan, who has been criticized for not being loose enough with his monetary purse strings, is expected to step down in April.

“(Shinzo) Abe’s focus is on two things—aggressive monetary and fiscal stimulus,” wrote CLSA Japan strategist Nicholas Smith in a report. “He made clear that the Bank of Japan will bend to his will or he will rewrite the BOJ Law to let him fire them.” The replacement governor, he added, will be selected for his “willingness to print money.”

“It has been a fool’s game to guess when the yen would finally weaken,” writes Hunt, “but economic healing in the West and eventually inflation and rising interest rates here could certainly be a catalyst, as could money printing in Japan.”

It should be remembered, however, that the Bank of Japan has already shattered what is widely regarded as the ultimate monetary taboo: printing money to buy equities to boost the chronically moribund economy. To little apparent avail, so far.

Businessweek.com — Top News

Read More..

Cricket-Australia v South Africa – second test scoreboard

ADELAIDE, Nov 24 (Reuters) – Scoreboard at the close of the

third day of the second test between Australia and South Africa

at Adelaide Oval on Saturday:

Australia won the toss and chose to bat

Australia first innings 550

South Africa first innings

G. Smith c Wade b Siddle 122

A. Petersen run out 54

H. Amla st Wade b Warner 11

J. Rudolph c Quiney b Lyon 29

AB de Villiers lbw b Siddle 1

F. du Plessis c Clarke b Hilfenhaus 78

D. Steyn c Ponting b Hilfenhaus 1

R. Kleinveldt b Hilfenhaus 0

J. Kallis c Wade b Clarke 58

M. Morkel b Lyon 6

I. Tahir not out 10

Extras (b-7, lb-2, w-3, nb-6) 18

Total: (all out, 124.3 overs) 388

Fall of wickets: 1-138 2-169 3-233 4-233 5-240 6-246 7-250

8-343 9-352 10-388

Bowling: B. Hilfenhaus 19.3-6-49-3, J. Pattinson 9.1-0-41-0

(nb-4, w-1) N. Lyon 44-7-91-2, P. Siddle 30.5-6-130-2 (nb-2), M.

Clarke 7-1-22-1, M. Hussey 1-0-7-0 (w-2), D. Warner 5-0-27-1, R.

Quiney 8-3-12-0

Australia second innings

D. Warner c Du Plessis b Kleinveldt 41

E. Cowan b Kleinveldt 29

R. Quiney c De Villiers b Kleinveldt 0

R. Ponting b Steyn 16

M. Clarke not out 9

P. Siddle c De Villiers b Morkel 1

M. Hussey 5

Extras (lb-7, nb-3) 10

Total (for five wickets, 32 overs) 111

Fall of wickets: 1-77 2-77 3-91 4-98 5-103

Still to bat: M. Wade, B. Hilfenhaus, J. Pattinson, N. Lyon.

Bowling: Steyn 10-4-28-1, Morkel 9-2-24-1, Kleinveldt

6-1-14-3 (nb-2), Tahir 7-1-38-0 (nb-1)

- -

Third test: WACA, Perth Nov. 30-Dec. 4

(Compiled by Ian Ransom; Editing by Alastair Himmer)

Australia / Antarctica News Headlines – Yahoo! News

Read More..

TSX hits one-week high as RIM surges

TORONTO (Reuters) – Canada‘s main stock index hit a one-week high on Thursday as higher commodity prices boosted mining stocks and as Research In Motion Ltd shares jumped 11 percent on growing hopes for its new devices.

The market was also supported by data that showed China’s manufacturing sector was picking up steam, a signal of increased demand for Canadian resources.

Research In Motion was up 11.1 percent at C$ 11.36 after National Bank Financial raised its price target on the stock to $ 15, citing “positive sentiment building in the industry” ahead of the launch of its BlackBerry 10 devices.

The stock played the second-biggest role of any single company in leading the market higher.

“The dominant news today is the performance of RIM,” said John Ing, president of Maison Placements Canada.

“The company has had nothing but bad news over the past year, and the stock has been oversold,” he said.

At midmorning, the Toronto Stock Exchange‘s S&P/TSX composite index <.GSPTSE> was up 63.94 points, or 0.53 percent, at 12,164. Earlier in the session, the index hit 12,171.20, its highest level since November 13.

The index’s materials sector, which includes mining stocks, rose 0.7 percent, extending gains made in the previous session on higher prices for gold and other commodities.

Miner Barrick Gold Corp was up 1.2 percent at C$ 35.04. Fertilizer producer Potash Corp gained 1.4 percent to C$ 38.77, while Silver Wheaton Corp was up 1.18 percent at C$ 36.74.

The financial sector rallied for the fifth day, with investors optimistic about quarterly results from Canadian banks, which start reporting next week. The group was up 0.4 percent. Royal Bank of Canada , the country’s biggest bank, was up 0.5 percent at C$ 59.90.

In China, data showed expansion in the manufacturing sector accelerated in November for the first time in 13 months, a sign that the pace of economic growth has revived after seven consecutive quarters of slowdown.

(Reporting by John Tilak; Editing by Peter Galloway)

Wireless News Headlines – Yahoo! News

Read More..

Roche, under fire, offers compromise in flu drug row

LONDON (Reuters) – Roche has offered an olive branch to scientific critics in a bid to end a bitter row over blockbuster flu drug Tamiflu that has led to calls for a boycott of the Swiss drugmaker’s products.

Tamiflu has been approved by regulators worldwide and stockpiled by many governments in case of a global outbreak – but some researchers claim there is little evidence it works and have lobbied since 2009 for Roche to hand over all its data from clinical trials.

Sales of the drug hit close to $ 3 billion in 2009, due to the H1N1 swine flu pandemic, although they have since declined.

Roche’s pharmaceuticals head said on Thursday he had written to the Cochrane Collaboration, a non-profit group that reviews trial data to assess the value of drugs, offering to set up a multi-party advisory board to review all the Tamiflu data.

The board of experts from academia and private institutions, including Cochrane critics, would then agree on what analyses were useful in assessing Tamiflu’s public health role.

“We think that would be an appropriate, fair and transparent way of handling this debate,” Daniel O’Day said in an interview.

O’Day said complete transparency had to be balanced against the need to protect patient privacy, respect commercial sensitivity and ensure the scientific merit of any statistical analysis.

He stopped short of matching a promise from rival GlaxoSmithKline to make patient-level data from all company-sponsored clinical trials available on a routine basis.

Roche said it had not handed over the full collection of data requested by Cochrane because the group refused to sign a confidentiality agreement.

Cochrane, meanwhile, has accused Roche of stonewalling and urged a boycott of the company’s products until it publishes the missing data. Its campaign to force Roche’s hand has been backed by the respected British Medical Journal.

EU AGENCY PROMISES OPENNESS

The new attempt by Roche to break the deadlock comes as regulators and healthcare experts meet in London to discuss ways to increase transparency over clinical trials.

As Reuters reported in July, the European Medicines Agency (EMA) aims to open its data vaults to systematic scrutiny, after a ruling by the European Ombudsman that keeping data secret is not compatible with the public interest.

Guido Rasi, executive director of the EMA, told the London meeting on Thursday that the question now was “how” to publish clinical trials data not “if” it should be released.

The move puts the EMA ahead of the U.S. Food and Drug Administration (FDA) in terms of data transparency.

The EMA stance is also forcing drug companies to review how far they can keep information they hold on medicines under wraps.

Most companies have committed in recent years to publishing results of clinical trials, either in journals or online, but that openness has not so far extended to the raw data that lies behind those trials.

Britain’s GlaxoSmithKline, however, broke ranks last month when it announced that patient-level data from its clinical trials of approved and failed drugs would be made available to other researchers.

Roche’s O’Day said his company responded to requests for such data on a case-by-case basis, provided scientists were prepared to sign confidentiality agreements if needed, but this did not mean all data should be released as a matter of course.

“To what level data will be shared proactively and constantly is something we need to discuss,” he said.

A Roche spokesman said Cochrane had acknowledged receipt of its proposal for a Tamiflu advisory board but had not given any immediate response.

(Reporting by Ben Hirschler; Editing by Erica Billingham)

Medications/Drugs News Headlines – Yahoo! News

Read More..

EU leaders begin budget battle

22 November 2012 Last updated at 09:39 ET

David Cameron, UK PM: “These are very important negotiations”

European Union leaders have begun talks on the bloc’s seven-year budget, with many urging cuts in line with the savings they are making nationally.

The UK said the latest EU proposals were “a step in the right direction” but “did not go far enough” and more must be done to cut spending.

Poland and its ex-communist neighbours want current spending maintained or raised. They rely heavily on EU cash.

The bargaining in Brussels will continue on Friday, or even longer.

UK Prime Minister David Cameron spent about half an hour talking to the President of the European Council, Herman Van Rompuy, and President of the European Commission Jose Manuel Barroso.

A Downing Street statement after the meeting said Mr Cameron had stressed the importance of the UK keeping its budget rebate, worth 3.56bn euros (£2.8bn; $ 1.3bn) in 2011. The statement called the rebate “fully justified”. The Commission and some EU governments want the rebate scrapped.

The UK statement said “it was clear that there was a long way to go before we had a deal that reflected the difficult decisions being taken by member states”.

Contrasting visions

The EU Commission, which drafts EU laws, has called for an increase of 4.8% compared with the 2007-2013 budget.

Continue reading the main story

The French have threatened to use their veto if farming subsidies are reduced. Some other countries like Denmark are fighting for a rebate of their own. So every step towards the British position creates problems elsewhere.

The Germans are not far from the Van Rompuy proposal and are prepared to compromise. They are protective of their neighbour Poland and do not want to see an important ally losing out.

But, like the British, they want to see a cut in administrative costs and want to see the budget re-balanced towards projects that enhance growth and innovation with less money for farm subsidies.

If a deal is done by Friday, when the summit is due to end, it will be a major achievement. The expectation is for the meeting to run into Saturday or to collapse.

But the UK and some other net contributors to the budget say cuts have to be made.

Negotiations are focusing on a draft budget – officially called the 2014-2020 Multi-Annual Financial Framework (MFF) – presented by Mr Van Rompuy.

He has made cuts to the Commission’s original plan, and proposed a budget worth 973bn euros (£782.5bn; $ 1,245bn).

France objects to the proposed cuts in agriculture, while countries in Central and Eastern Europe oppose cuts to cohesion spending – that is, EU money that helps to improve infrastructure in poorer regions.

They are the biggest budget items. The Van Rompuy plan envisages 309.5bn euros for cohesion (32% of total spending) and 364.5bn euros for agriculture (37.5%).

The EU budget is a small fraction of what the 27 member states’ governments spend in total.

‘Quite wrong’

German Chancellor Angela Merkel – who wants to restrain spending – says another summit may be necessary early next year if no deal can be reached in Brussels now.

In a speech to the European Parliament on Wednesday, EU Commission President Barroso complained, “No one is discussing the quality of investments, it’s all cut, cut, cut.”

Thursday’s business was beginning with short, individual meetings between national leaders and Mr Van Rompuy and Mr Barroso.

Only in the evening will they assemble for talks as a group.

Arriving in Brussels, Mr Cameron said: “These are very important negotiations.

Continue reading the main story

• A deal after intense negotiations which may continue into the weekend


• Failure to agree and a follow-up budget summit


• If no agreement is reached by the end of 2013, the 2013 budget ceilings will be rolled over into 2014 with a 2% inflation adjustment, amid uncertainty over long-term EU projects

“Clearly at a time when we are making difficult decisions at home over public spending it would be quite wrong, it is quite wrong, for there to be proposals for this increased extra spending in the EU.”

However, Belgian Prime Minister Elio di Rupo argued the EU needed greater spending, not less.

“We can’t have a European Union which demands, which imposes, and a European Union which doesn’t have the means to implement its policies,” he said on Thursday.

“For me, for Belgium, Europe is more solidarity and prosperity for all Europeans… I hope that other countries such as Italy and France will support us for the ambitious budget.”

Hurdles

Mr Cameron has warned he may use his veto if other EU countries call for any rise in EU spending. The Netherlands and Sweden back his call for a freeze in spending, allowing for inflation.

Any of the 27 countries can veto a deal, and the European Parliament will also have to vote on the MFF even if a deal is reached.

Failure to agree on the budget would mean rolling over the 2013 budget into 2014 on a month-by-month basis, putting some long-term projects at risk.

If that were to happen it could leave Mr Cameron in a worse position, because the 2013 budget is bigger than the preceding years of the 2007-2013 MFF.

So the UK government could end up with an EU budget higher than what it will accept now.

The Commission says the EU budget accounts for less than 2% of public spending EU-wide and that for every euro spent by the EU the national governments collectively spend 50 euros.

BBC News – Business

Read More..

Bank of Canada keeps “over time” condition on rate hike

OTTAWA (Reuters) – Bank of Canada Deputy Governor Tim Lane repeated on Wednesday the central bank‘s message that interest rate increases will likely be needed, but only over time.

The “over time” phrase was introduced in the bank’s key guidance in its rate statement on October 23 as a way of signaling that while the next rate move is likely to be up, such a move was less imminent than it had been.

“Over time, some gradual withdrawal of monetary policy stimulus will likely be required, consistent with achieving the inflation-control target,” Lane said, according to a prepared presentation he was giving on Wednesday in Moncton, New Brunswick.

Another part of the presentation, which was posted on the central bank’s website, noted: “The Canadian economy continues to operate with a small amount of excess supply.”

The Bank of Canada is alone in the Group of Seven leading industrialized countries in signaling an intention to raise rates despite expectations of modest and unbalanced global growth.

Lane forecast “very robust growth” in emerging markets, stagnation in Europe and significant dampening of U.S. growth due to fiscal consolidation. He said Canada‘s real gross domestic product was still expected to grow at a moderate pace.

(Reporting by Randall Palmer; Editing by Jeffrey Hodgson; and Peter Galloway)

Canada News Headlines – Yahoo! News

Read More..

Facebook proposes to end voting on privacy issues

NEW YORK (AP) — Facebook is proposing to end its practice of letting users vote on changes to its privacy policies. The company says it will continue to let users comment on proposed updates.

The world’s biggest social media company plans to announce Wednesday that its voting mechanism, which is triggered only if enough people comment on proposed changes, has become a system that emphasizes the quantity of responses over the quality of discussion.

Facebook began letting users vote on privacy changes in 2009. Since then, it has gone public and its user base has ballooned from around 200 million to more than 1 billion. As part of the 2009 policy, users’ votes only count if more than 30 percent of all Facebook’s active users partake.

Social Media News Headlines – Yahoo! News

Read More..

Positive Outlook Helps Seniors Heal

Older patients with positive attitudes on aging may be more likely to fully recover from severe disability compared with those who can’t see the bright side of life, a new study found.

A positive stereotype about aging was associated with a 44 percent greater likelihood of recovery from severe disability versus negative stereotypes, according to study author Becca Levy from the Yale School of Public Health and colleagues.

Holding positive stereotypes in older age was also significantly associated with a slower rate of decline in activities of daily living, the researchers wrote in a letter published in the Journal of the American Medical Association online.

“Further research is needed to determine whether interventions to promote positive age stereotypes could extend independent living in later life,” the authors noted.

Read this story on www.medpagetoday.com.

The researchers sampled patients through the Precipitating Events Project study and included 598 mostly female patients with an average age of 79, who belonged to a Connecticut health plan. All participants lived in a community, were nondisabled, and experienced at least 1 month of disability from active daily life during the follow-up period.

Can A Positive Outlook Keep Your Heart Healthy? Watch Video

The participants were interviewed monthly for up to 129 months and filled out home-based assessments every 18 months over 10 years.

The researchers established age stereotypes by asking participants for five terms or phrases they associated with older individuals and coding those descriptors on a five-point scale, with 1 being most negative (such as decrepit) and 5 being most positive (such as spry). The participants scored a mean 2.12 on this scale.

Participants’ severity of disability was based on the number of activities of daily living compromised by disability, including bathing, dressing, transferring, and walking. Three or four compromised activities were considered severely disabled; mild to severe disability required assistance with one to two activities, and mild to no disability required no assistance with activities of daily life.

The researchers grouped patients on whether they held positive or negative age stereotypes and compared rates of recovery from severe or mild injury to no or mild disability. Patients between groups were well-matched for age, sex, nonwhite ethnicity, frailty, education, chronic conditions, mental status, depression, and whether or not they lived alone. The nature of the disabling events was not described.

Patients were significantly more likely to recover from any state of injury to either no or mild disability if they fit positive age stereotypes, including from severe disability to no disability, severe disability to mild disabilit and mild disability to no disability.

The researchers also noted that the positive age-stereotyped patients “showed an advantage in the absolute risk increase percentages” in likelihood of recovery, in addition to “a significantly slower rate of [activities of daily life] decline.”

Study limitations included recruitment from a single community and an undersampling of black patients.

Health News Headlines – Yahoo! News

Read More..

UK public sector borrowing rises

21 November 2012 Last updated at 06:39 ET

The government borrowed much more than expected in October, reducing the chances that the UK will hit its deficit reduction target in 2012-13.

UK public sector net borrowing, excluding financial interventions, hit £8.6bn in October, the Office for National Statistics (ONS) said.

That marked a sharp rise from the £5.9bn borrowed in October 2011.

This is the last set of borrowing figures before the chancellor’s Autumn Statement on 5 December.

The headline figure was worse than expected – analysts had forecast borrowing of £6bn.

Corporation tax receipts fell nearly 10% in October, a month when there is usually a heavy inflow to boost the public coffers.

A rise in day-to-day departmental spending also contributed to the higher borrowing.

For the seven months of the financial year so far, borrowing has reached £73.3bn, excluding the one-off effects from the transfer of Royal Mail pension assets.

That is £5bn higher than the same time last year.

A spokesperson for the Treasury said: “The economy is healing, but it still faces many challenges.

“These numbers illustrate that, but also show the government’s plans to bring spending under control are on track for the year.”

But Labour’s shadow chief secretary to the Treasury, Rachel Reeves, said the chancellor was borrowing billions more to pay for the cost of his economic failure.

“Having failed on jobs and growth, the government is now failing on the deficit too,” she said.

‘Wrong direction’ Continue reading the main story

AAA-rating

The best credit rating that can be given to a borrower’s debts, indicating that the risk of borrowing defaulting is minuscule.

Chris Williamson, chief economist at Markit, said the low tax receipts reflected the disappointing performance of the economy, which is experiencing weak growth and weak consumer spending.

He told the BBC that he could see no chance of the government now hitting its deficit target of £120bn for 2012-13. Current projections suggest this year’s deficit would come in closer to £130bn.

“So it’s moving totally in the wrong direction,” he said.

“The longer-term prospects are looking much more disappointing than the Office for Budget Responsibility and the government were hoping when they first set these targets out back in March.”

He added that Chancellor George Osborne was likely to announce increases in taxes, further cuts in spending, or a combination of the two, when he delivers his Autumn Statement.

Chris Williamson, Chief Economist at Markit

However, analysts at Credit Suisse said the figures were disappointing but not disastrous.

“To some extent, this poor reading was mitigated by improvements in last month’s figure, which was around £0.8bn lower (less borrowing) than previously thought.

“In addition, the good news is that the poor figure appears to have been driven by expenditure rather than receipts data. This suggests that the weakness in the numbers may not be due to weaker GDP performance feeding into weaker tax receipts.”

They also pointed out that, overall, central government receipts were up 1.8% on the year to October, while expenditure was up 7.4%.

BBC News – Business

Read More..