Wednesday, August 10, 2011

Shaw Capital Management Headlines : As London cleans up from riots, residents fume

http://shawcapitalmanagement-headlines.com/2011/08/shaw-capital-management-headlines-as-london-cleans-up-from-riots-residents-fume201108100919931-story/

By Janet Stobart, Los Angeles Times
DATE: WED Aug 10, 2011

Londoners are angry at rioters and at authorities’ response. Some analysts say the unrest springs from Britain’s social disparity. Violence eases in the capital but flares in other cities.






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    Reporting from London—They share a city, and very little else.
    But one thing united the rioters who have left a trail of shattered glass and burned-out buildings across London and the residents left to clean up the mess: anger.
    Facing a storm of criticism for remaining on vacation while his city burned, London Mayor Boris Johnson returned Tuesday to tour Clapham, a well-off south London neighborhood that was one of many stunned by three nights of hopscotching riots that left one man dead and littered theurban landscape with hundreds of damaged businesses and residences.
    The shaggy-haired conservative was greeted by crowds of furious store owners asking where police were as their livelihoods were destroyed.

    Twitter, BlackBerry Messenger cited as fueling London riots
    “I felt ashamed,” he said after viewing the damage, “that people could feel such disdain for their neighborhoods.”
    Community leaders, sociologists, police and lawmakers were left groping for a meaning for the worst social unrest to hit London in a generation. The riots laid bare a phenomenon that has stirred deep unease in Britain in recent years: “yobbery,” the anti-social behavior of a generation believed to be so alienated from the norms of civilized society that pockets of some cities live in fear.

    London riots in Tottenham raise alarm
    But there appeared to be no social or geographical boundaries for the groups of young people who, as the riots gathered pace, used social networks to line up the next target, looting and burning their way through entire neighborhoods with the knowledge that they could outrun police in heavy riot gear.
    Some officials, including former London Mayor Ken Livingstone, a leftist commonly known as “Red Ken,” blamed the unrest on recent government budget cuts, which have hit education, social assistance and community budgets.

    London police appeal for calm after riots, looting
    But to many Britons, the riots were a near-anarchic crime spree that had nothing to do with politics, with hooded youths breaking into stores to help themselves to plasma TVs, clothes and even cash.
    With the ostentatious wealth of so many rubbing up against hard-hit lower-income communities, it was difficult to ignore the backdrop of social disparity that defines London. Community activist Symeon Brown works with disaffected young people in Tottenham, the north London neighborhood where the unrest began Saturday night in the wake of a police shooting that left a 29-year-old father of four dead.
    David Cameron concedes error in hiring aide linked to hacking
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    He said the unemployment rate is high in Tottenham, but it’s more complex than that. Young people there feel distanced from and hostile to police, who they believe treat their community with heavy-handed authority, he said.
    The continuing riots are a kind of “imitation” of the Tottenham protest, “which was very much a stance against the police, who were seen as losing legitimacy in the eyes of a section of the community,” Brown said. “When that stand took place, you saw young people realize, ‘Wow, we’re actually taking a stance.’ Then they realized that they could get away with it.”
    No one has been able to profile them, he said, “but I wouldn’t be surprised if many of them come from hostels or families where they weren’t accountable to parents; if you find an 11-year-old on the roads after midnight, you have to ask questions.”
    But people on the streets appeared to have little sympathy for the young rioters.
    Liz Pilgrim’s baby clothing shop in the upscale west London neighborhood of Ealing was trashed and looted.
    “I can only say I met with a group of feral rats. Where are their parents? We need to get the army out,” she told the BBC.
    The riots first struck districts neighboring Tottenham, but spread overnight Sunday to central Oxford Circus and southward to the multiethnic area of Brixton, which has begun to emerge from a dark past of race riots and social deprivation. By early Tuesday morning, crowds of marauders had moved to the more wealthy areas of Clapham and up to trendy Notting Hill.
    Looting mobs have mushroomed across the country, with copycat riots in Birmingham and Bristol in central England and Liverpool and Leeds in the north. Unrest flared again Tuesday night in Manchester, Leicester, West Bromwich and Wolverhampton, and a police station in the central city of Nottingham was firebombed, officials said.
    Copyright © 2011, Los Angeles Times

Shaw Capital Management Headlines : Fed jolts Wall Street in bid to soothe nerves | World Headlines: Shaw Capital Management

http://shawcapitalmanagement-headlines.com/2011/08/shaw-capital-management-headlines-fed-jolts-wall-street-in-bid-to-soothe-nerves4/
By Janet Stobart, Los Angeles Times
DATE: WED Aug 10, 2011

A Federal Reserve promise to keep rates low for two years sends markets fluctuating before they end the day on a positive note.

TCWBrian H. Loo, center, Harrison Choi, left, Patrick Ahn, second from left, and Bret Barker right, work on the trading floor at TCW in downtown Los Angeles. (Katie Falkenberg/For The Times / August 10, 2011)
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  • Reporting from Los Angeles and New York—
  • Bret Barker jumped on the phone moments after the Federal Reserve shocked Wall Street with its vow to keep interest rates low for two more years.
  • The bond trader at Los Angeles investment giant TCW Group wanted to know how the unexpected news was affecting bond values and rang up a Wall Street investment bank for a price quote on a $100-million Treasury bond trade.
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    Divided Fed to keep interest rates low for two year
  • “He gave me three or four different quotes in the 20 seconds I was on the phone,” Barker said. “He said prices are all over the place.”
  • The central bank did its best to soothe a jittery Wall Street on Tuesday, but the reaction on stock and bond trading floors from New York to Los Angeles was anything but calm. Financial markets zigzagged immediately after the Federal Reserve released its policy statement.
  • On the New York Stock Exchangetrading floor at Broad and Wall streets in Lower Manhattan,brokers stood at their trading stations and craned their heads toward the nearest television or
    Investors dive into bank stocks
    Investors dive into bank stocks
  • electronic ticker in the minutes leading up to the announcement at 11:15 a.m. PDT. “Sh’s” swept across the floor as the news was about to hit.“The market is so nervous, they’re looking for any kind of direction they might be given,” said Benedict Willis, a trader with Sunrise Securities.
  • The Dow Jones industrial average, which had been down as much as 205 points earlier in the session, bounced around until the bulls finally won. The blue-chip index ended the day up almost 430 points thanks to a vigorous rally in the final hour as investors scooped up stocks that had been thrashed in recent days.
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  • But the closing price belied the dramatic initial gyrations and head-scratching as even veteran traders scrambled to make sense of the central bank’s move.
Fed announcements normally are finely calibrated affairs with predictable investor reactions. But in a sign of the intense volatility that gripped the securities markets, stock prices toggled from positive to negative territory more than two dozen times in the hour after the Fed news.
The Dow gained 4% to finish at 11,239.77. The Standard & Poor’s 500 index jumped 53.07 points, or 4.7%, to 1,172.53. The Nasdaq composite index rose 124.83 points, or 5.3%, to 2,482.52.
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After the Fed announcement, crowds of floor brokers converged at trading stations and bought stocks up on the belief that guaranteed lower rates until mid-2013 would boost the broader economy.
“Take ‘em Johnny!” shouted one trader at the Barclays Capital station as the Dow raced higher.
“Now they’re buying,” another trader answered.
The mood changed abruptly when the news hit a few minutes later that three of the Federal Reserve governors had dissented from the board’s decision.
“Boos” rang out across the floor and the Dow flipped from green to red.
“We knew they have had dissenting views,” Willis said. “At this particular time to see them come out, it was the shock to the market when we were hoping for a little more of a calming statement.”
Yet moments later the mood turned again as the indexes shifted back to green as the initial anxiety wore off.
Traders focused their attention on the Fed’s mention of other tools it could use to help the economy.
It wasn’t definitive, but “it was enough to rally the market,” said Alan Valdes, the head of trading for DME Securities.
Copyright © 2011, Los Angeles Times