September 2008 Archives

US President George W Bush has defended a rescue package to tackle the worst financial markets crisis for decades.

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The cost to taxpayers from shoring up markets was better than the alternative of job losses and blighted retirement accounts, he said in a radio address. The US Treasury is proposing a fund worth up to $800bn (£440bn) to buy back a large proportion of the bad debt in the US mortgage market.

Full Story: Bush defends US debt rescue plan

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]  after a suicide bomber rammed his explosive-laden truck into the hotel gate engulfing the building in flames.

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A spokesman for the Indian High Commission told PTI that no Indians were present in the hotel at the time of one of the worst terror attacks in the country in which about 1,000 kg of explosives were reported to have been used. ARY TV reported that 60 people had died and 200 injured in the explosion in which the popular American hotel chain was targetted for the second time in 20 months. The blasts were the most intense explosion ever in the country at one particular spot,according to officials.

Full Story: 60 killed in Islamabad suicide blast

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Wall Street shares have rebounded sharply after a proposed US government plan to buy billions of dollars of US banks' bad mortgage-related loans.

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The Dow Jones index jumped 3.8% in early trading, while London's FTSE 100 index was up 8.6%. In Paris, the Cac 40 was 7.6% higher. "To restore confidence in our markets and our financial institutions, so they can fuel continued growth and prosperity, we must address the underlying problem," Mr Paulson said.

Full Story: Shares surge on US bail-out plan

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The party core group headed by Sonia met at a time when attacks on churches in parts of Karnataka continued unabated and the Centre issued two advisories to the Bharatiya Janata Party government in the state to rein in the elements responsible.

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A special meeting of the Union Cabinet had discussed threadbare the issue of internal security a few days back. Friday's meeting took place ahead of next week's visit of the PM to Washington where the US Congress is likely to approve 123 agreement to help operationalise the Indo-US nuclear deal.

Full Story: Congress top brass discusses terror

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The future of thousands of jobs is in the balance in the wake of Lloyds TSB's £12.2bn takeover of Halifax Bank of Scotland (HBOS).

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While Lloyds dismissed claims that up to 40,000 jobs faced the axe as "ridiculous", it refused to rule out compulsory redundancies. The UK government also said it is "determined" to ensure the stability of the financial system and protect savers.

Full Story: Thousands face axe in HBOS merger

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"The Pakistani army remains unable or unwilling to counter effectively the resurgent Taliban and Zardari's major challenge is to gain the trust of the army, which in turn may pose a threat to him," the International Institute for Strategic Studies said.

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"Zardari's top priority is to fight terrorism and Islamist militancy in the tribal areas bordering Afghanistan," said John Chipman, head of the prestigious London-based Think tank, launching the Strategic Survey-2008 report. "But the Pakistani army remains unable or unwilling to counter effectively the resurgent Taliban with over 110,000 troops deployed in the area." Chipman said Zardari's major challenge would be to gain the trust of the army and build a consensus against terrorism and Islamist extremism among the political establishment.

Full Story: Zardari faces threat from Pakistan army

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Lloyds TSB has unveiled details of its £12.2bn takeover of HBOS, a deal it described as a "unique opportunity".

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The deal values shares in Halifax Bank of Scotland - the UK's biggest mortgage lender - at 232p each, and could lead to cost savings of £1bn a year. Lloyds confirmed jobs would be lost as a result, but played down claims that up to 40,000 staff faced the axe.

Full Story: Lloyds TSB unveils HBOS takeover

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Under flak over recent terror strikes, the central government on Thursday announced several measures to strengthen intelligence machinery including creation of a wing to analyse new modus operandi being adopted by terrorists.

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At the same time, the government categorically ruled out any move to bring in an anti-terror law like POTA. "What do you mean by tougher anti-terror laws? Some of our laws are much more strong than those in the US and UK," he shot back when asked whether the government was planning to bring in an anti-terror law similar to POTA.

Full Story: 'Some of our laws are stronger than those in US, UK'

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HBOS has confirmed it is in advanced talks with Lloyds TSB about creating a UK retail banking giant worth £30bn.

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The government has also said it will overrule any concerns that competition authorities may raise, BBC Business Editor Robert Peston said. The deal is set to value HBOS at about £15bn, or 280p a share, a significant premium on its closing price of 147.1p.

Full Story: HBOS confirms Lloyds merger talks

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The Union Cabinet held a special meeting on Wednesday night to discuss terrorism and approved certain measures like strengthening of intelligence gathering by the states to effectively combat the menace.

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Images ] , External Affairs Minister Pranab Mukherjee came out with a brief statement, but there was no word whether a minister for internal security is being appointed as widely speculated. Images ] . He has suggested measures. Those measures have been approved by the Cabinet," Mukherjee said without elaborating.

Full Story: Cabinet approves measures to tackle terrorism

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The US Federal Reserve has announced an $85bn (£48bn) rescue package for AIG, the country's biggest insurance company, to save it from bankruptcy.

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The rescue follows the collapse of US investment giant Lehman Brothers, which caused share prices to plummet across the world's financial markets. Meanwhile, Barclays said it had reached a deal to buy Lehman's US investment banking and capital markets businesses.

Full Story: US government rescues insurer AIG

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Images ] has received cautious response in Leicester, the city widely considered to be a 'Little India'.

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] , Birmingham, Glasgow, Liverpool, Sheffield, Leeds, Bristol, Manchester, Edinburgh and Leicester to name one of their major streets as 'Mahatma Gandhi Marg'. However, the demand is likely to spark opposition in Leicester from a section of local residents who believes that too much is being done in the name of multiculturalism in the city.

Full Story: UK: Cautious response to 'Mahatma Gandhi Marg'

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Losses on stock markets have continued after the collapse of fourth largest US investment bank, Lehman Brothers, which has filed for bankruptcy protection.

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European stocks fell again; the UK's FTSE 100 was down 2.44%, France's Cac down 1% and Germany's Dax down 1.58%. Shares in Japan, South Korea and Hong Kong fell more than 5%, having been shut on Monday for public holidays.

Full Story: Global market turmoil continues

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Favouring a "revolutionary change" in relations with India, Nepalese Prime Minister Prachanda on Tuesday said a "new era has dawned" that should help further strengthen the bilateral ties.

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] should help in the development of Nepal, which is placed in between two rising economies -- India and China. The former Maoist leader, whose real name is Pushpa Kamal Dahal, said his country is committed to laying the foundation of stronger bilateral ties with India.

Full Story: Prachanda for revolutionary change in India ties

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Bank of America is to buy Merrill Lynch in a deal worth $50bn (£28bn) that will create a new financial giant.

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The deal came amid a hectic weekend on Wall Street, with Lehman Brothers announcing that it would file for bankruptcy protection. There were worries that Merrill would be the next bank to lose the confidence of investors as it has been hit hard by bad mortgage debt.

Full Story: Merrill Lynch sold in $50bn deal

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The Prime Minister, who will go to the United Nations to attend the General Assembly, will meet Bush at the White House on September 25.

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"And I know that he and the prime minister will talk about it when he's here," Perino said. During their meeting, the two leaders may sign the India-US nuclear deal if it is approved by then.

Full Story: PM, Bush to discuss terrorism during their meeting

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The fourth-largest investment bank in the US, Lehman Brothers, has said it will file for bankruptcy protection, amid a growing global financial crisis.

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The move threatens to deal a further blow to the global financial system, as banks unwind their deals with Lehman. Merrill Lynch, also stung by the credit crunch, has agreed to be taken over by Bank of America in a dramatic weekend of events for Wall Street.

Full Story: Lehman Bros files for bankruptcy

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The Indian government should fully prosecute army, paramilitary, and police personnel responsible for killings and torture in the north eastern state of Manipur, Human Rights Watch said in a new report released on Monday.

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The 79-page report, These Fellows Must Be Eliminated: Relentless Violence and Impunity in Manipur , documents the failure of justice in the state, where for 50 years the army, empowered and protected by the Armed Forces (Special Powers) Act, has committed numerous serious human rights violations. The report details the failure of justice in the killing and possible rape of alleged militant Thangjam Manorama Devi by the paramilitary Assam Rifles in 2004.

Full Story: Tales of excesses by armed forces in northeast

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The collapse of the UK's third largest package holiday group has left tens of thousands of Britons stranded abroad.

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The decision to place XL Leisure Group into administration has also left thousands of staff facing the axe. Chairman Phil Wyatt said he was "totally devastated" by the failure which has grounded XL's 21 planes. The company flies to about 50 destinations.

Full Story: Thousands stranded by XL collapse

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People responded in their thousands to the separatist coordination committee's call to observe a peaceful shutdown and stage protests after the Friday prayers.

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As the Friday prayers ended, people spilled out of various mosques to the streets to stage protests shouting pro-freedom slogans. Curfew was imposed in the two towns of Baramulla and Shopian on Friday evening as mob violence erupted after Friday prayers.

Full Story: Yasin Malik hurt in J & K protest

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Tens of thousands of Britons could find themselves stranded abroad after the country's third largest package holiday group went into administration.

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All its flights have now been cancelled and its aircraft grounded The Civil Aviation Authority (CAA) said 50,000 people could be stranded abroad and 200,000 have made advance bookings with the company. David Clover, a spokesman for the CAA, said it would be making arrangements to help customers of the four tour companies within the XL group.

Full Story: Holiday firm XL in administration

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Images ] but that can happen only after discussions are held to determine the justification for the test.

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US Ambassador to India David Mulford said India as a sovereign nation can and will always have the right to go for a nuclear test. But if India does so, under US laws there could then be a cessation of civil nuclear relationship. "There is a Hyde Act requirement. But in the 123 agreement, which was negotiated to effect that into reality, there is a set of procedures laid down. This involves first of all the president determining that we should enter into a dialogue to discuss why tests were conducted," said Mulford.

Full Story: US can stop N-cooperation if India tests: Mulford

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Gordon Brown has agreed a £910m package of measures with the big energy companies aimed at helping people with soaring gas and electricity bills.

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It includes half price insulation for all households and a freeze on this year's bills for the poorest families. Pensioners and unemployed people with young children will get an extra £16.50 a week if there is a severe winter.

Full Story: Brown unveils £910m fuel measures

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September 11, 2008 17:38 IST Embattled former chief minister Amarinder Singh moved the Punjab and Haryana High Court on Thursday, challenging his expulsion from the state Assembly.

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The petition by the Congress leader came up before a division bench of Justices Hemant Gupta and K S Ahluwalia which referred it to another bench. In an unprecedented action, the Punjab Assembly had yesterday expelled Singh from the House following his indictment in a graft case and declared the seat vacant for holding by-election.

Full Story: Amarinder moves HC challenging his expulsion

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Brussels said the three countries would see two negative quarters of economic growth in a row, which is the technical definition of a recession.

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It said the 15-nation euro bloc would now grow by 1.3% this year, against previous projections of 1.7%. Earlier this month, data showed the region's economy shrank by 0.2% between April and June - the bloc's first decline since its creation in 1999.

Full Story: Britain 'to fall into recession'

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Images ] on Wednesday extended his full support for the India-Pakistan dialogue process, as he felicitated Asif Ali Zardari on assuming office of the president of Pakistan.

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In a telephone conversation, senior Bharatiya Janata Party leader Advani expressed hope that relations between the two neighbouring countries would improve during Zardari's tenure as president. While extending his full support for the Pakistan-India dialogue process, Advani wished for the success of President Zardari, Foreign Office spokesman Muhammad Sadiq said.

Full Story: Advani calls Zardari, extends support to talks

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UK housebuilder Barratt Developments has reported a steep fall in profits as the property slump begins to bite.

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The firm, which is cutting more than 1,000 jobs, said profit before tax totalled £137.3m in the year to 30 June, down 68% from a year earlier. The firm said its average selling price had risen 6% because of high-value sales in upscale London locations.

Full Story: Barratt profits hit by downturn

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] would be embarking on his maiden mass contact programme towards the month-end,  amid criticism that he lacks clarity about his political agenda.

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A plan for the actor's tour of the 23 districts in Andhra Pradesh has almost been finalised, party spokesperson P Mithra said in Hyderabad. Meanwhile, the new outfit continued to be the destination of political migratory birds from other parties and thousands of common fans.

Full Story: Andhra tour will be Chiranjeevi's litmus test

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The slump in the UK property market continued in August, with some estate agents selling fewer than one home per week in the past three months.

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The Royal Institution of Chartered Surveyors (Rics) said sales were at their lowest level since its monthly survey started in 1978. It said the fall in prices slowed, for the fourth month in a row, but they were still much lower than a year ago.

Full Story: Home sales at lowest for 30 years

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Insisting that it had done nothing to sabotage Nuclear Suppliers' Group waiver for India, China on Tuesday said the two countries should 'move beyond doubts' to build a stronger relationship.

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] last week. "We were talking about responsible and constructive approach when we were discussing safeguards agreement with India at the IAEA," Yang said, about the August meeting of the Board of Governors of the UN nuclear watchdog. "And then the issue was at Nuclear Suppliers Group statement on civilian use of nuclear energy by India. Likewise, China adopted a constructive and responsible attitude and participated in consensus vote," he said at a function organised by Institute of Chinese Studies and the Indian Council of World Affairs.

Full Story: Let us move beyond doubts, China to India

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The chief executive of the Nationwide Building Society has told BBC News that he thinks house prices could fall as much as 25% from their peak.

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Graham Beale also said he does not expect to see signs of recovery in the housing market until 2010. Nationwide is by far the UK's biggest building society and is closer to the housing market than many others.

Full Story: House prices 'to reduce by 25%'

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Admitting that time is limited for the Congress to ratify the civil nuclear deal with India, the US has said it is rapidly working on the Hyde amendment package to be submitted to the Congress, with the administration "committed" to moving the deal forward.

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"As we speak, we have people working on that package that is required by the so-called Hyde amendment package. So we are busily working on that. We, the US government, in preparing to submit that to the Congress," State Department spokesperson McCormack said in his briefing. "Admittedly, the time here is short, and there's a brief window before Congress goes out of session. As you've heard from the secretary, as well as from the White House, this administration is committed to trying to move that agreement forward," McCormack added.

Full Story: We are working overtime on Hyde amendment: US

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Shares in Europe and Asia have rallied after the US government said that it was taking over troubled mortgage giants Freddie Mac and Fannie Mae.

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Investors hoped the largest bail-out in US history would prop up the country's housing market and ultimately help to end the credit crunch, analysts said. US president George Bush said the two mortgage lenders had posed "an unacceptable risk" to the economy.

Full Story: Mortgage bail-out rallies markets

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In the four worst-affected districts -- Supaul, Madhepura, Araria, and Saharsa -- over 2.27 million people have been severely impacted by the floods.

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Aid has been pouring into Bihar. Organisations across the world have been coordinating relief operations. One such organisation -- American India Foundation � seeks to rebuild the lives of the victims of this natural calamity. ] (2004) victims, said the hard task of rebuilding lives will begin when the flood waters recede. 'The main focus of our work will be in the reconstruction phase when the long-term task of rebuilding communities will begin,' the AIF said in a press release.

Full Story: AIF pitches in for Bihar's flood-affected

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US financial officials have outlined plans for the government to take over the failing mortgage giants Freddie Mac and Fannie Mae.

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The two companies account for nearly half of the outstanding mortgages in the US, and have lost billions of dollars during the US housing crash. The most recent figures show about 9% of US homeowners were behind on their payments or faced repossession.

Full Story: US takes over key mortgage firms

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The co-ordination committee which is a conglomerate of both groups of the All Parties Hurriyat Conference, traders and businessmen of the Valley has called for a protest shutdown on Monday, against the all party-meet convened by The Election Commission, recent arrests and Saturday's killing of a youth in police firing.

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Talking to journalists at his uptown Hyderpora residence on Sunday evening, the hard-line separatist leader, Syed Ali Shah Geelani who chaired Sunday's co-ordination committee meeting announced what he called "a month long resistance programme". ] Liberation Front, bar association, local trader's federation, state government employees association and chambers of commerce and industry.

Full Story: APHC calls for month-long bandh in the Valley

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Food prices in UK supermarkets and shops have risen by 8.3% since January, an index compiled for the BBC shows.

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Meat and fish - up 22.9% - registered the biggest price increases for any one category in the survey, with fresh fruit and vegetables up 14.7%. The figures come amid growing concern about the high cost of food, which is exceeding the official inflation rate.

Full Story: UK food prices show 8.3% increase

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Yet, even the hurriedly reached Jammu settlement may prove a poor consolation prize. Had its negotiation taken on board the valley's politicians, it would have had a more democratic character and wider acceptance. After all, the political and physical origins of the problem that triggered the twin agitations in Jammu and the valley, and led to the unseating of J&K's government in July, lie in the transfer of valley land for the Amarnath shrine pilgrimage.

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Had the valley's representatives been involved in negotiating a fair agreement, they wouldn't have had the luxury of putting the onus for it solely on the state or central government. The accusation that the government acted without consulting all sides to the land dispute is potentially open to exploitation to rank communal or narrow regionalist ends. But evidently, our policymakers have learnt very little from Kashmir's recent history, which shows that such potential will nearly always be so exploited. The valley continues to seethe with anger. The turmoil shows no signs of abating despite the onset of the holy month of Ramzan. The unrest could yet again become a serious problem for India, with unpleasant implications for its fraught relations with Pakistan.

Full Story: The ONLY way out in Kashmir

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Food prices in UK supermarkets and shops have risen by 8.3% since the start of this year, according to figures obtained by the BBC.

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Meat and fish registered the biggest price increases in the survey, compiled on behalf of the BBC by leading retail analysts Verdict Research. The figures come amid growing concern about the high cost of food, which is exceeding the official inflation rate.

Full Story: UK food prices rise 8.3% in 2008

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Foreign Secretary Shivshankar Menon and Prime Minister's Special Envoy Shyam Saran met diplomats of these countries soon after the deliberations of the opening day of the two-day meeting of the NSG concluded.

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] have reservation to grant of waiver to India and raised questions at the NSG meeting on Thursday, particularly with regard to nuclear testing issue. After the day-long deliberations, the NSG appeared to be close to a consensus but few members of the 45-nation grouping are still resisting the contentious issues whether or not there should be a ban on testing in the NSG waiver.

Full Story: NSG waiver: Indian officials work overtime

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UK house prices recorded an annual fall of 10.9% in August - the first double digit drop since 1983 says the Halifax.

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The lender said that property prices dropped 1.8% in August compared with July, leaving the cost of an average home in the UK at £174,178. House prices dropped across the UK, but some surveys have shown the Scottish market to be the most resilient.

Full Story: House prices in double-digit fall

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Although officials were tight-lipped about what was discussed at the meeting, sources said Mulford told the Prime Minister that no new conditions had been introduced.

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Mulford had said on Wednesday night that the January 16, 2008, State Department letter to the late Representative Tom Lantos contained no new conditions and there was no data in this letter which had not already been shared in an open and transparent way with members of the US Congress and the Government of India. A senior US embassy official sought to play down the meeting between Mulford and the Prime Minister, saying the Ambassador did visit the Prime Minister's Office but he has been generally keeping in touch with the PMO on the issue.

Full Story: Mulford meets prime minister over N-deal revelations

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The pound has continued to fall against the US dollar, hitting its lowest level since April 2006 on fears that the UK is heading into a recession this year.

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Sterling fell to a low of $1.7771, and was recently trading at $1.7668. The weak pound weighed on shares, and the FTSE 100 stock index lost more than 2%. Sterling has fallen sharply over the past month, down from July highs that saw one pound buying two dollars.

Full Story: Pound dips further against dollar

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Images ] , remembers the man who was famous for a book that he never wrote.

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I first met Sharada Prasad after I got married in 1981. He was family for my wife, having been her father's colleague in the Planning Commission and also their neighbour in Delhi's Patel Nagar. One of the earliest stories I heard from my wife when we first met was how she, at the age of 5, walked along with her parents, and with Sharada Prasad, Kamalamma and their sons all the way from Patel Nagar to Teen Murti House to pay their respects to the body of Prime Minister Jawaharlal Nehru in May, 1964.

Full Story: 'Sharada Prasad was a renaissance man'

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Homebuyers will not have to pay stamp duty on properties costing £175,000 or less for the next 12 months.

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The current £125,000 threshold will be raised as part of a package of measures aimed at boosting the housing market. Someone buying a home for £175,000 will save £1,750 under the scheme, which is likely to cost the Treasury £600m.

Full Story: Stamp duty axed below £175,000

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Iran Air's Mumbai-Teheran flight made an emergency landing at the city's Chhatrapati Shivaji International Airport late Tuesday night after one of its engine caught fire. All the passengers are safe.

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There were 294 passengers on-board when the aircraft made the emergency landing, a Mumbai International Airport Limited (MIAL) official said, adding that, all passengers were safe. "Full emergency was declared on Iran Air flight, IR-811, after one of its engine caught fire. The incident happened when the aircraft had flown some 90 nautical miles from Mumbai," the official said.

Full Story: Iran Air flight makes emergency landing in Mumbai

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The UK economy is likely to fall into recession this year, according to the Organisation for Economic Cooperation and Development (OECD).

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The Paris-based think tank predicts that the UK economy will shrink at an annual rate of 0.3% in the third quarter, and by 0.4% in the fourth. According to the latest official figures, the UK economy did not grow at all in the second quarter of 2008.

Full Story: UK recession this year, OECD says

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"If a rich man is held guilty, it is a good thing. But, I still believe he will escape with a lighter punishment," said Phula Devi.

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Nanda, grandson of former Naval Chief S M Nanda, faces a maximum punishment of 10 years' imprisonment and the sentence in the case is scheduled to be announced Wednesday. The conviction in the hit-and-run accident brought some consolation to the constable's widow but she felt that the outcome of the case was unlikely to affect her family's lot.

Full Story: Victim's widow fears Nanda may still get away

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New tax measures come into force this month that should see about 22 million people receive a rebate of around £60.

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It all stems from the U-turn by the chancellor on plans to scrap the lowest 10 pence tax band, following pressure from backbench MPs to ease its impact. They will have £60 less taken from their September pay packets and will then see their net pay rise by £10 per month for the rest of this tax year.

Full Story: Millions due to gain tax rebate

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Expressing doubts over the Maoists' claim of having killed leader Lakshmananda Saraswati, the Vishwa Hindu Parishad on Monday insisted that 'a sect of Christians' was behind the murder that has sparked widespread rioting in Orissa.

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VHP General Secretary Pravin Togadia said his organisation and the Maoists have no reasons for confrontation and the Maoists could have made the claims under 'Communist Influence' to divert attention. His allegations came a day after Maoists issued a statement, claiming responsibility for Lakshmananda's killing and threatening more attacks on the VHP if they targeted minorities.

Full Story: Maoists didn't kill Saraswati, claims VHP

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The government needs to take "significant and decisive action" to help kick start the housing market, the main surveyors organisation has said.

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The call from the Royal Institution of Chartered Surveyors (RICS) came as it said its research showed that housing sales were now at a 30-year low. Claiming that government efforts had so far been limited, RICS has come up with its own set of suggested reforms.

Full Story: Housing market 'needs more help'

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At least four workers died and two others fell seriously ill following gas leakage in the Bhusan Steel Plant at Thelkul under Rengali block in Sambalpur district.

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of one of the furnaces while four electrical workers were attending to the   Compact Strip Plant (CSP) in the evening shift.   Two other workers, on hearing their screams, rushed to rescue them but they too inhaled the gas and fell seriously ill.

Full Story: Orissa: Gas leakage in steel plant, four die

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