U.K. Moves Closer to Recession as GDP Falls


The U.K. economy shrank more than economists forecast in the fourth quarter as manufacturers cut output and services stagnated, leaving Britain on the brink of another recession.

Gross domestic product fell 0.2 percent from the third quarter, when it increased 0.6 percent, the Office for National Statistics said in London today. The median forecast of 33 forecasts in a Bloomberg survey was for a drop of 0.1 percent. Public-sector strikes over pensions on Nov. 30 had “some impact” on GDP in the quarter, the statistics office said.

Bank of England Governor Mervyn King said yesterday that policy makers can increase stimulus again if needed to aid the economy and guard against a “renewed severe downturn.” The International Monetary Fund cut its U.K. growth forecasts as the euro-region debt crisis dims prospects for global growth.

http://www.bloomberg.com/news/2012-01-2 ... falls.html

FDA clears more orange juice imports

Health regulators cleared more orange juice imports from five countries after testing for the fungicide carbendazim, but made no mention of samples from top grower Brazil, which accounts for half of U.S. juice imports.

The Food and Drug Administration said 19 of the 45 samples it had taken since testing began on January 4 were safe, but the remainder were "pending analysis and/or are under compliance review." A spokeswoman declined to specify where those samples originated, but traders said they feared many may be from Brazil, where carbendazim is widely used.

"It's quite possible that they are from Brazil, and investors are concerned about the idea that the samples will continue to be looked at and not released," said Sterling Smith, senior market analyst at Country Hedging Inc in St. Paul, Minnesota.


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The £100 fill-up looms for motorists as one of the UK's biggest refineries goes bankrupt

Motorists are facing the threat of fuel shortages and £100 fill-ups after one of Britain’s biggest refineries went bust yesterday.
As well as posing a serious risk to forecourt supplies, retailers say it could see petrol prices soaring to record highs as speculators and profiteers capitalise on the disruption.
Diesel prices in particular are set to rise by up to 3p to a record £1.45 a litre, they warn. That would mean more than £100 to fill up a typical family saloon with a 70-litre tank.
MPs and unions joined the chorus warning of shortages while forecourt bosses said there was a risk of parts of the South East ‘grinding to a halt’ after supplies from the giant Coryton refinery in Essex were suspended.


Read more: http://www.dailymail.co.uk/news/article ... z1kSmyaT7Y

'There will be riots on streets of America': George Soros predicts class war in U.S. as euro triggers collapse of global economy

Billionaire investor George Soros has warned the global economic system could collapse and riots on the streets of America are on the way.
The 81-year-old said he’d rather survive than stay rich as the world faces an ‘evil’ period and Europe fights a ‘descent into chaos and conflict’.
He has backed the euro, bought $2billion in European bonds and insisted the economic climate is similar to the 1930s Great Depression.


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One in five councillors in dash for gold-plated town hall pensions


More than one in five local councillors has claimed the right to a gold-plated town hall pension, it was revealed yesterday.
The number of elected representatives who have climbed aboard the local government pensions gravy train has soared by more than a quarter in just three years.
More than 4,500 now qualify for guaranteed pensions based on the allowances they are paid as councillors, which can exceed £50,000 a year.
The pensions come with life insurance for their spouse or partner, a lump sum at retirement age and the prospect of an 'early retirement' deal if they are voted out.


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