is being taken from the pensioners now let's look at what george osborne and his independent bank of england have created with their quantitative easing savers lose forty three billion pounds in slow motion bank robbery with worse to come savers have been stealthily robbed of forty three billion pounds of the real value of their savings since the bank of england froze interest rates at zero point five percent nearly thirty two months ago but there could be worse to come so the average saver max has lost two thousand five hundred pounds since the crisis how does that work exactly let's review briefly to kick the speculator suite to keep the cost of money near zero bank of england keeps rates near zero using quantitative easing us born endorsers it in effect those people with savings the pensioners the people of worked all their lives of the money in the bank that they anticipate to get a return on and subsidising the speculators why doesn't it just write a check to the terrorists around the world and say here. here's the money please i'm a submissive can you bomb me please because that's exac

, long, and arduous. >> if anything, the details of the bank's new forecast were even gloomier than the governor's. three months ago, the bank of england expecting the economy to grow by more than 2% next year. in this new report, the forecast is for growth of just 1%. and they are not expecting much growth at all over the next few months. the only good news is that for once, they have lowered their inflation forecast as well. inflation has climbed a relentlessly over the past two years to more than 5%. but now, the bank expected to drop like a stone to barely 2% next year. there's light at the end of the tunnel, even if the tunnel is a lot longer than the bank originally thought. >> we thought next year we would start to recover slowly, slowly and gradually. but the extraordinary sui's- squeeze that we have seen in the past three years short now begin to come to an end. >> the bank will be printing more money to support the economy, maybe a lot more. even the bank's new forecast depends on the crisis in the eurozone being resolved. in the long run, the governor likes to say we are masters of our faith. the bank has a plan for recovery

the bank of england, as mentioned, has warned that the british economy is grinding a halt, and they're forecasting next year to just 1% -- cutting their forecasts next year to just 1%. the number of -- number of young people out of work is more than 1 million 18 to 22-year-olds. one of the worst performers on the european exchanges, a german tech giant, doubled its income this year. they expect sales to fall by about 5%. they are noticing increasing caution on the part of customers. and you can invest billions and rake in billions when it comes to asia. this german artist -- german pharmaceutical firm does not sound like it is concerned about the economy. china is at the top of its to-do list. >> they go back a long way. they have been producing their painkiller in shanghai since 1986. bayer tends to grow strongly in the region. the german-based firm plans to invest nearly 2 billion euros in the asian operations in the coming four years. the asian peril is supposed to grow from 20,000 workers to more than -- payroll is supposed to grow from 20,000 workers to more than 30,000. >> we aim

stocks are lower on wednesday after the bank of england said prospects for europe's economy have worsened and company results were disappointing for example from the from the good that. was the close in europe the footsie is down by just not sure this is of course because of bank of england outlook and the dax is down for a full straight session because technologies slumped off to forecasting lower twenty twelve sales. finally the close in moscow where high oil prices didn't help the indices not sheltie as my six some more than a third of a percent down particularly the main movers rosneft was pretty much the only gain among blue chips on those higher oil prices up one point six percent response to the outstanding gain of more than ten percent after announcing a buyback with a sixty percent premium to the market price. business out he will be back next hour with nothing else either.

of its banks and the rest of the world. for the european central bankers, they secured financial help from the federal reserve, the bank of england and central banks of other rich developed economies are rallying. the point is they -- there have been worrying signs a new credit crunch is looming. banks have become keener to put their money where it is supposedly completely safe -- on deposit with a european central bank, rather than lend to each other. bank deposits at the european central banks have risen by more than 100 billion euros over the past fortnight. that dead money at the ecb stands at just under 300 billion euros. banks have found up harder to borrow dollars, the world's most important currency. to stop the banks from collapsing, the fed has cut the cost of lending dollars to other central banks which have pledged to lead to a local commercial banks what ever dollars a need. the central banks have put in place contingency loans should the need arise. have the central bank's save the world? probably not. the underlying problem is the sovereign debt crisis cannot sublet the dollar funding crisis. this action today does

was listening to you they should have no i mean when central banks were met sellers of gold including the federal reserve bank of bank of england that's when germany should have said oh by the way give us back our gold but now the goals of play and all the global banks are collapsing it's too late you screwed up germany no gold for you buddy ok well at least max germany is not a serious debtor like italy is own crisis italian borrowing costs soar to bailout territory so we know italian debt is that two point six trillion dollars was dwarfs that of greece. and the yield on the italian ten year bond went up to six point six six percent as you can see from the start spiked right elaine is now on go to take the hot seat away from grace who took the hot seat away from ireland but the whole crisis will revisit ireland again they just found an incredible new realized liability and their banks' balance sheet that will require another bailout in ireland and more austerity measures speaking of ireland stacey i was just in limerick at limerick university they gave me this award the limerick university debating team this is for contributio

we developed with the bank of england a mechanism to allocate funding for different banks based on howuch they increase -- that is a clear audit trail to the shore banks comply. we will use the experience of european investment banks in the u.k. to ensure that it works. state approval so that the national loan guarantee scheme will be up and running in the next few months. initially twenty billion pounds of these guarantees will be available next few years. we are also watching the 1 billion pound finance concert ship in britain's midsize company. crucial part of the economy neglected too long and intensified by the director general and others as a future source. government will invest directly to these businesses in partnership with other investors like pension funds and insurance companies. it will give these mid cap companies a new source outside the traditional banks and the business finance partnership cakes of ice stand ready to increase its size and we will develop further partnership ideas to the new bond issuance to help small and medium-sized companies. no government has atte

reserve and several other central banks around the world including the european central bank, bank of englandnd japan, all making a coordinated move to make it cheaper for banks to swap euros for dollars. primarily, directed at major european banks who are tremendously constrained by the sovereign debt crisis over there. they don't have enough dollars in the banking system. they want -- they want more to build investor conference. this is a short-term fix. we saw the same thing after lehman brothers failed. europe has serious political issues to decide in order for the debt crisis it not affect the core economies over there. yet investors do like the short term fix plus some decent economic info. adp saying there are 206,000 jobs created this month, more than expected. that bodes well for the employment report coming out on friday. and also we have a 10.4% bump in pending home sales in october a nice level right there. as you can see, the dow is shooting higher up nearly 400 points just below 12,000. nasdaq is also up by 84 points and the s&p, frank and grace, is up by 40. just another blockb

at the bank of england, they have been calling for more action to support the economy since last year. he thinks the long-term prospects are good, but we should not kid ourselves that slow growth is all down to the euro-zone. >> my personal view is that is being exaggerated. there is clearly the prospect of very bad things in the euro- zone, and its confidence has an effect on us, but fundamentally, we are the masters of our own destiny here. >> slow growth is better than no growth. everyone can agree. the question is whether we can do any better. >> this is "newsday." i'm singapore. >> i'm in london. greece' s decision to hold a referendum on its bailout package has cost stock markets to fall sharply. two pakistani cricketers could face prison after being found guilty in taking part in a betting scam. chris jintao is in europe and is expected to meet nicolas sarkozy later on wednesday ahead of this year's g-20 summit. mr. hu has expressed confidence in europe overcoming its present economic difficulties. i am joined from beijing by the chairman of the china focused private equity fir

probably the only driver which was taken when markets as a significance was the announcement from bank of england but their expectation of the european economy is at war so we have seen a lot of the crying in all the markets including the u.s. and international markets including russia and this is probably the only significant driver we've seen for of the week and. we're not sure that anything else then the fundamental changes in the actions of the european authorities can change the mood of the markets of the course of russia's second largest oil producer lukoil plans to travel its gas output in the next decade lukoil says gas production investment a little now twelve billion dollars over this period the company's vice president clearly for doing told business be looking for gas pretty much all over the world but if i can do it you know really got into next decade we plan to boost our gas production to seventy billion cubic meters a muley we have huge projects and russia such as you mark in the north and caspian sea deposits in the south we are already developing a huge gas build in respect to s

in the markets in europe and they're still down the footsie is point six percent last of the bank of england said u.k. growth outlook of worsens the dax is even more down more than one percent furred day of losses as an opinion for our genes slumped off a constant attention to ourselves. moscow's still not seeing that much support from those higher oil prices the audience is down three quarters of a percent of my sex by a of a percent cyclical so what's happening most now is actually seeing some positive movement but just an hour ago when the oil prices were low on the list with power we did see was snapped up more than one in the hospice said the best part scared as an outstanding player the coal miner has announced the buyback with a premium of sixty percent to the market price and this is of course providing support of more than nine offices to the stock. and that's it for now we will be back next hour with an update since around fifty five minutes time the headlines next. culture is that so much given all the huge news that is there any time the market serious money as a major has read o

we're going through this -- ben bernanke, chairman of the mervin king,ve and head of the bank of england, have both said we've just experienced possibly the worst financial crisis in the history of man and after financial crises, there are inevitably these periods of slow no growth, recession, depression-like environments. added to this, we have ideology at the government levels preventing the government from doing the most it can do to alleviate the problem, using expansionary government policies to create demand. we're not doing that sufficiently and as a result unemployment is way up and will stay way up and when unemployment is way up, poverty goes up so i think what's -- what you see happening is poverty become normalized in some way. you see people who thought of themselves as playing by the rules and doing all the right things all of a sudden poor. and it's a kind of -- this is an irreplication of what happened in the depression but it rhymes with the depression so that will create, in turn, i think, political change. tavis: i don't live in greece, i don't live in germany or franc

probably the only driver which was taken by markets as a significance was there an argument from bank of england but their expectation of the european economy ease of course and so we have seen out of the crime in all the markets including the u.s. an emerging market going to russia and this is probably the only significant driver we're going to see him for at the weekend so we're not sure that anything else than the fundamental changes in the actions of the european authorities can change the mood of the markets and of course with russia's second largest oil producer lukoil plans to travel its gas output in the next decade look oil says gas production investment will amount to twelve billion dollars over this period the company's vice president plenty to do and says they'll be looking for gas pretty much all over the world. really got in the next decade we plan to boost our gas production to seventy. distain you really we have huge projects in russia such as you multiple north and caspian sea deposits in the south we are already developing a huge gas field in this pakistan but now we're startin

of young people are currently out of work week growth high inflation it's two times what the bank of england's targeted level is and of course the threat of recession so this is this is really a crucial time for deciding how far europe is going to be able to go and of course if these may need markel have already fallen out of cameron pulls out with this well then what's going to happen to say the economies of europe all right our dear laura smith live for us in london thanks for that update. well the mood in europe is growing increasingly grim as previously in my your problem these are brought to their knees by the block's reaching debt crisis the widely adopted solutions have been relentless budget cuts and tax hikes that have spawn hundreds of protests and riots but authorities sara for a porch from rome unrestrained austerity may carry an even heavier price tag for future generations. actually students have a lot to be unhappy about the dire economic situation he's seen youth unemployment hit crippling levels in the struggling economies and despite recent political labels in greece and ital

stocks are still in the red the footsie is a half a percent lower so is the dax that's after the bank of england said the u.k. growth outlook has worsened the dax is seeing losses for a day as infinium technology slumped of course then lower twenty twelve so. this is the picture in moscow of both nice legs and the r.t.s. side slightly down this hour let's take a look at what's moving to my sex most blue chips such as financials per bank they're down but it's got a call. my neck is very much bucking the trend with the buyback announcement with a premium of sixty percent to the market price the company is up more than ten percent this is one of the biggest gainers despite though. the mood in europe is continuing to see across international borders and is grain on sentiment here in russia peter west and recommends buying into cash rich companies with high dividend payouts for investors willing to risk a dip in the market go for cash rich companies go for it and i mean you have to guess crafts. com as well even though the corporate governance can be clearly question in this company and they do have

and european stocks are raised early gains footsie is lower after the bank of england the u.k. growth outlook has worsened that x. is seeing losses for a day i wasn't been in technology has slumped after forecasting lower twenty twelve sales. and here in moscow both myself some of the r.t. are so low was still the russian equities are trading at their lowest level a new week as oil dropped after hewitt stock piles increased and with europe's debt crisis still dwain when investors hear some a check on some of the individual show moves in the might six most blue chips are in the red the world's biggest aluminum produce that will sell russia's largest producer of still making cold metal are declining one point eight and one point eight percent respectively in prescott's correct is bucking the trend with the buyback announcement with a premium sixty percent of the market coal miner has soared by eleven percent this hour. people are moved in europe is continuing to see across international borders and is weighing on sentiment here in russia bitter western at a torn recommends buying

that's what the bank of england says. would you listen to them are would you listen to the people that got us into this mess in the first place? [shouting] >> returning to next week's public sector stri -- [shouting] mr. speaker, they don't like it, do they? [laughter] is the prime minister of where that of the three largest unions, that turnout in the strike out with 32% 31% and 25% respectively we agree that any striker has the right to strike if he so wishes but he does not engage in mass action and thus he has the majority of tese -- [shouting] spent i think my moral friend makes a very important point. as i said it is wrong thatthese strikes are going ahead when negotiations are underway. it is wrong to strike and close only classrooms and summon essential services ut it is being done on the basis of these turnouts. just one quarter of members voted to strike. just 23% of those balloted at unite voted in favor. i not surprised labor members want to shot me down. we know why they won't condemn the strikes. because we

the markets are still a lower this is after the bank of england said prospects for europe's economy added worsening and also disappointing corporate results for example from retail abercrombie and fitch pretty much the same situation in europe where stocks didn't manage to recover from losses the footsie ending down point one percent the dax point three percent for the dax it's the session of losses and finally to the closing picture in russia also a similar picture of the r.t.s. my six losing a third of a percent not really supported by the higher oil prices we might see a reaction on the first day they have to however this is on a lucky streak it's up one point six percent in this session magill losing four percent after a pause a disappointing third quarter sales then lost the outstanding gate after announcing a buy back with a sixty percent premium to the market price. in other news the russian government is aiming to cut annual inflation to below three and a half percent liberties and says this could be achieved in the short or medium term as for this year consumer prices are expecte

that's what the bank of england says. would you listen to them are would you listen to the people that got us into this mess in the first place? [shouting] >> returning to next week's public sector strike -- [shouting] mr. speaker, they don't like it, do they? [laughter] is the prime minister of where that of the three largest unions, that turnout in the strike out with 32%, 31% and 25% respectively, we agree that any striker has the right to strike if he so wishes, but he does not engage in mass action and thus he has the majority of these -- [shouting] spent i think my moral friend makes a very important point. as i said it is wrong that these strikes are going ahead when negotiations are underway. it is wrong to strike and close only classrooms and summon essential services but it is being done on the basis of these turnouts. just one quarter of members voted to strike. just 23% of those balloted at unite voted in favor. i not surprised labor members want to shot me down. we know why they won't condemn the strikes. bec