Tuesday 2nd March 2010 Good Morning Ladies & Gentlemen, Last Night in New York, shares closed higher, fuelled by an uptick in manufacturing employment and personal spending that helped boost technology stocks. Insurance giant American International Group (AIG) also gained after agreeing to sell its Asian operations to the Prudential. The broad rally sent two of the three U.S. large-cap stock indices into positive territory for the year to date; only the Dow Jones, which gained 78.53-points to 10403.79, still shows a 0.23% loss for the year so far. The Nasdaq Composite crossed into positive territory yesterday by closing up 35.31-points at 2273.57 (the Nasdaq had not been positive year-to- st nd date since 21 January), while the S&P gained 11.22-points to 1115.71 (registering its first year-to-date gain since 22 January). nd Tuesday 2 March 2010 How the BBC Reported the News On this day in: - 2000 - Former Chilean dictator General Augusto Pinochet is heading home after being told the UK would not extradite him on torture charges. After 16-months of legal wrangling, General Pinochet was told earlier today by UK Home Secretary Jack Straw that he was free to leave. A Chilean Air Force jet took off from RAF Waddington in Lincolnshire at 1315 GMT with the 84-year-old general on board. General Pinochet was arrested in London in October 1998 at the request of Spanish judge Baltasar Garzon who is seeking to put him on trial for human rights abuses during his 17-year rule in Chile. He is expected to arrive in Chile to a hero's welcome from supporters. 1991 - At least 19 people, including Sri Lanka's Deputy Defence Minister, Ranjan Wijeratne, have been killed in a car bomb explosion in the capital Colombo. The authorities say Mr Wijeratne, who was 59, had been travelling to his office when a remote-controlled bomb in a parked car was detonated during the morning rush hour. Among those killed were five bodyguards protecting Mr Wijeratne. Nimal Piyasiri, the owner of a hotel near to the blast, said: "I saw human hands and legs strewn all over and a number of vehicles ablaze. It was awful." 1970 - The Prime Minister of Rhodesia, Ian Smith, has declared his country a republic, cutting its last link with the British Crown. The new Rhodesian Republic, came into being at 2301BST yesterday, unrecognised by the rest of the world and barely noticed by Rhodesians themselves. Mr Smith signed a proclamation officially dissolving the current parliament and introducing a new Republican Constitution. 1969 - The supersonic airliner, Concorde, has made a "faultless" maiden flight. The Anglo-French plane took off from Toulouse and was in the air for just 27 minutes before the pilot made the decision to land. The first pilot, Andre Turcat, said on his return to the airport: "Finally the big bird flies, and I can say now that it flies pretty well." The test flight reached 10,000ft, but Concorde's speed never rose above 300-mph. The plane will eventually fly at a speed of 1,300-mph. 1956 - King Hussein of Jordan has sacked the British commander of the Arab Legion in what is being seen as an effort to strengthen his own position within the Arab world. Lieutenant General John Bagot Glubb, the British commander of the 20,000-strong Arab Legion, was ordered to leave Jordan within two hours - but the King relented and allowed him to remain overnight to pack his and his family's belongings. He arrived at London airport this evening - 16 hours after his dismissal. (Source: BBC) Tuesday press tips and comments: THE FINANCIAL TIMES The Front Page * Asian state funds line up to back Pru deal The Analysis Page * A longer range: Aerospace The Lex Column * Pru romance - The UK insurer will pay $35.5-billion for a cleaned-up AIA portfolio * HSBC - The journey has only just begun * Country risk premiums - Geography is what matters once more * Merck/Millipore - It boils down to the German group wanting to diversify earnings * BT pensions - Rivals want to dispel idea that deficit is an 'act of God' The Lombard Column * Tidjane Thiam launches endgame for Prudential's British pillar * Life after Candover * Not code for nationalisation – As a tool of nationalistic industrial policy, the Takeover Code is no use Power Player * Barry Stowe, Prudential Asia CEO Further news * Pearson lifts share of market * Tesco shares jump as Warren Buffet increases holding * Rank rally link to dividends news * Activist lifts Sutton Harbour * Fundraising talks hit Gulf Keystone Properties THE TIMES The Front Page * Tory donor’s secret tax deal saved him millions The Dashboard Pages * Orders, orders, as exporters stop playing by the book The Business Editor’s Commentary Column * More unloved than even Mugabe’s dollar - Sterling had a pitiful day as it suffered its biggest rout on the currency markets for more than a year * Quibbling that defies logic (Prudential) * Copper in the spotlight * Stirred but not shaken (Dollar carry trade) Tempus Colum * Amlin - Hold * Xchanging - Buy on weakness * Arena Leisure - Worth a flutter Deal of the day * Eckoh A Tiddler to Watch * The Restaurant Group Further news * HMV waits for broker to put music retailer back on centre stage THE DAILY TELEGRAPH The Front Page * Pound slumps over fears of election stalemate The Comment Column * If speculators are on the money, the pound still has a long way to fall * Eastern promise doesn't come cheap (Prudential) (Comment Column cont.) * Time to give BT a wake-up call The Jeremy Warner Column * Last one out should turn off the lights The Questor Column * HSBC - Hold * Pearson - Buy Further news * Miners help FTSE-100 surge to 6-week high * Bid speculation lifts Connaught and Arriva * Senior’s (Engineering) prospects give shares a lift THE INDEPENDENT The Front Page * Ashcroft: The unanswered questions The Outlook Column * The Tory-Labour divide is a political, not economic, one * Man at the Pru takes a huge leap of faith The Focus Page * Marks & Spencer sets out its sustainable stall The Investment Column * Buy - SDL * Hold - WSP Group * Buy - Goals Soccer Centres Further news * Pearson profits rise by 13% as FT publisher embraces digital future * Hopes for profits send Wolseley higher THE DAILY MAIL The Alex Brummer Column * Tidjane’s great leap forward At a Glance * Allergy Therapeutics The City Focus Column * East promises business boom * Pearson expands digitally with iPad Further news * Speculation that Sir Stuart Rose may step down at Marks & Spencer 'in a few months' * Aggreko moves into the top flight* Expect activity around AIM-listed Angel Mining THE DAILY EXPRESS * Takeover gossip lifts SIG. Tuesday bid news and gossip: * Insider dealers to face fines of at least £100,000 under FSA code * Lord Mandelson calls for radical reform of takeover rules for hostile bids * HSBC underwhelms as Asia fails to meet expectations * HSBC heads for clash on pay * Goldman Sachs made at least £67-million in net trading revenues on 131-days last year * City bankers line up £1-billion bid for Manchester United * Diageo looks to buy Chinese spirits maker Sichuan Shui Jing Fang * BP to form US shale gas venture with Lewis Energy * Asian state funds line up to back Prudential deal * Merger of Orange and T-Mobile in the UK approved by EC * Lenders seize equity of two 3i companies, Global Garden Products and Ultralase * Astellas in $3.5-billion bid to expand role in US * Warren Buffett raises stake in Tesco to 3% * Crystal Amber acquires 8.6% stake in Sutton Harbour * Baxter to buy biologics maker for up to $330 million th * Babcock given 12 April deadline for VT Group bid * Dominion Petroleum raises £33-million for Ugandan drill * Moody's believes Anglo Irish bank is likely to split up Tuesday other news items: From Wall Street * The Dow Jones gained 78.53-points to 10403.79, the Nasdaq closed up 35.31-points at 2273.57, while the S&P gained 11.22-points to 1115.71. Other news * An assault on the pound by hedge funds and the increasing prospects of a hung parliament has sent sterling to its sharpest intra-day fall in more than a year. * Global manufacturing activity expanded at a slower pace last month, but employment in sector rose at its fastest pace in 29-months * US consumer spending rose slightly more than expected, up 0.5%, but incomes rose less than expected in January * Institute of Supply Management index of national factory activity declined to 56.5 in February from 58.4 in January * US January construction spending fell 0.6% * US January personal income rose 0.1% * EU says Greece must do more to tackle debt crisis * New figures on bank lending offer mixed picture of UK economy although the message is tempered by another strong reading on a manufacturing survey * Tory peer, Lord Ashcroft, admits to 'non-dom' tax status th * Real Madrid heads football club 'rich list' for 5 straight year * Air Worldwide sees $2-billion losses from Chile earthquake * London Tube network hit by £400-million funding gap. 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