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A new precedent has been set in the Bank of England’s 314-year history, following the latest decision from its Monetary Policy Committee (MPC).

The MPC has set the Bank’s base rate to 1.5 percent, the lowest it has ever been. The rate – which had previously been at two percent – has been cut sharply since October as the Bank attempts to improve economic conditions by encouraging lending from high street mortgage and loans firms.

If banks and other lenders pass on the cuts to their customers, then it is cheaper for consumers to get mortgage loans. Additionally, people who already have variable rate loans might pay less interest, meaning they will have more money in their pocket to spend in the economy.

Most analysts had predicted a further cut, with estimates varying from 0.5 to one percent. However, not everyone agreed that lowering the rate was the best step forward.

Speaking yesterday (January 7th), before the announcement, the director of the Association of Mortgage Intermediaries Robert Sinclair warned that any reduction “will not be fully passed on by lenders”. He felt that the real issue was the lack of liquidity in the mortgage sector. “Banks continue to be constrained by increasing capital requirements rather than being universally encouraged to support the wider economy,” he added.

About 25 supertankers were already hired for storage and there are enquiries for 5 to 10 more, Jens Martin Jensen, Singapore-based interim chief executive officer of the company’s management unit, said by phone today.

The traders would buy crude now and sell it for delivery later, profiting from a futures market situation called contango where prices are higher as the year progresses. The vessels could handle as much as 20 million barrels, or about what is produced by OPEC member Algeria in 15 days. They would add to as much as 50 million barrels already hoarded at sea, for a combined amount equal to almost five days of European Union demand.

“I’ve never before seen storage demand on this scale,” said Didier Labat, a Paris-based shipbroker at Barry Rogliano Salles who has worked in tanker markets for about 20 years.

Commodities prices fell the most in five decades last year, with crude dropping more than $100 from the peak of $147.27 a barrel in July, as simultaneous recessions hit the U.S., Europe and Japan. Oil demand in 2008 fell for the first time since 1983, according to the Paris-based International Energy Agency.

Thirty-five supertankers represent about 7 percent of the global fleet of very large crude carriers, according to data from London-based Drewry Shipping Consultants Ltd. Storing oil in tankers may buoy rental rates that fell by a record 78 percent last year as slower economic growth sapped demand for energy.

Financing Costs

Traders are seeking to lease ships for three to nine months, Jensen said. Crude oil for December delivery settled at $58.74 a barrel on the New York Mercantile Exchange today, $16.11 more than the February contract. Oil companies and traders may be able to profit from storing the oil, assuming shipping, insurance and financing costs are covered.

A supertanker would cost about 90 cents a barrel a month for storage depending on the length of the rental, according to data last month from shipbroker Galbraith’s Ltd.

Iran, the second-largest member of the Organization of Petroleum Exporting Countries after Saudi Arabia, idled as many as 15 of its biggest ships in May to store crude oil. That contributed to three consecutive months of higher rental rates for ships.

The cost of delivering Middle East oil to Asia, the world’s busiest route for supertankers, rose yesterday for the first time since Dec. 5, according to the Baltic Exchange in London.

Forward freight agreements advanced. The derivatives are used by traders to bet on the future price of hauling Saudi Arabian cargoes to Japan, an industry benchmark.

Derivatives Advance

The contracts traded at about 46 Worldscale points for the fourth quarter, according to prices from Oslo-based broker Imarex ASA as of 10:34 a.m. London time. They closed at 45 yesterday.

Worldscale points are a percentage of a nominal rate for more than 320,000 specific routes. They give owners and oil companies a starting point for negotiating hire rates without having to calculate the value of each deal from scratch.

Frontline, based in Bermuda, has advanced 13 percent in Oslo trading this year. The five-member Bloomberg Tanker Index has gained 12 percent.

The changes promoting on-the-go viewing are “quite significant,” says John Eck, president of the NBC TV Network and Media Works. “If we play it right, it can be a compelling service,” for example, by offering local news, which normally isn’t available from cellphone video services.

At least 63 stations in 22 cities — including New York, Chicago, Philadelphia, San Francisco, Boston and Washington — will transmit news, entertainment and sports to portable devices this year, according to the broadcast industry’s Open Mobile Video Coalition (OMVC).

The initial group will include affiliates of ABC, CBS, Fox, NBC, CW, ION and PBS. Each city will have a different mix. Most will simulcast regularly scheduled shows.

In conjunction with the announcement, at the Consumer Electronics Show in Las Vegas, manufacturers including LG, Samsung, Zenith and Kenwood will display mobile receivers due in stores later this year.

Portable digital broadcasting became practical over the last few months. The OMVC zeroed in on an inexpensive transmission process that addresses a serious problem in the national switch from analog to digital television in February.

“The digital TV standard that was adopted by the Federal Communications Commission in 1996 was optimized for high-definition pictures on fixed sets,” says LG Electronics USA’s John Taylor. “But when you move around, the signal breaks up.”

That affects the few current battery-powered portable digital TVs popular in disaster-prone areas.

Executives say that consumers with the specially equipped new receivers can watch shows in moving cars and trains.

Stations had to be able to receive a signal from the receivers, so they can tell advertisers how many people tune in, says ION Media Networks CEO Brandon Burgess, who’s also president of the OMVC. That could later be used for interactive and subscription services.

The veterans filed suit in US District Court in San Francisco and are demanding acknowledgement for their service and medical treatment.

Frank Rochelle, 61, thought he was volunteering to test gas masks when he was in the military more than thirty years ago. Instead, he spent two months at the Edgewood Arsenal being injected and gassed with chemicals to test their effectiveness on humans as biological weapons.

“I was hallucinating, people were calling my name, I saw animals coming out of the wall, freckles appeared to be bugs under my skin,” said Rochelle.

Attorney Gordon Erspamer said the vets have suffered long term injuries.

“This program is a national embarassment, it really is. At a time when we were putting war criminals on trial from both Japan, Nazi Germany and Italy, we were doing this to our own,” said Erspamer.

At first glance, the declining Chinese appetite for U.S. debt – apparent in a series of hints from Chinese policy makers over the past two weeks, with official statistics due for release in the next few days – comes at an inopportune time. On Tuesday, the U.S. president-elect, Barack Obama, said Americans should get used to the prospect of “trillion-dollar deficits for years to come” as he seeks to finance an $800 billion economic stimulus package.

Normally, China would be the most avid taker of the debt required to pay for those deficits, mainly short-term Treasury securities. In the past five years, China has spent as much as one-seventh of its entire economic output on the purchase of foreign debt – largely U.S. Treasury bonds and American mortgage-backed securities.

But now, Beijing is seeking to pay for its own $600 billion economic stimulus – just as tax revenue falls sharply as the Chinese economy slows. Regulators have ordered banks to lend more money to small and midsize enterprises, many of which are struggling with slower exports, and Chinese bankers say they are being instructed to lend more to local governments to allow them to build new roads and other projects as part of the stimulus program.

Research & Technical Areas: Biomedical, Human Systems

Objective: To develop a highly interactive PC or web-based application to allow family members to verbally interact with “virtual” renditions of deployed Service Members.

Description: The Defense Centers of Excellence for Psychological Health and Traumatic Brain Injury recognizes that family outreach and advocacy is pivotal for both the psychological health of the family and the resilience of the Service Member. Deployments put stress on the entire family, especially small children and communication is key. The ability to reach out and communicate with loved ones from areas of conflict is better than at any time in history. Nevertheless, the stresses of deployment might be softened if spouses and especially children could conduct simple conversations with their loved ones in immediate times of stress or prolonged absence. Historically, families have derived comfort and support from photographs or mementos, but current technology SHOULD allow for more personal interactive messages of support. Over 80% of American children between the ages of three and five regularly use computers, and 83% of families have a computer in their home. So, computer-based applications would resonate with children and capture their interest and imagination. The challenge is to design an application that would would allow a child to receive comfort from being able to have simple, virtual conversations with a parent who is not aivailable “in-person”. We are looking for innovative applications that explore and harness the power of “advanced” interactive multimedia computer technologies to produce compelling interactive dialogue between a Service member and their families via a pc- or web-based application using video footage or high-resolution 3-D rendering. The child should be able to have a simulated conversation with a parent about generic, everyday topics. For instance, a child may get a response from saying “I love you”, or “I miss you”, or “Good night mommy/daddy.” This is a technologically challenging application because it relies on the ability to have convincing voice-recognition, artificial intelligence, and the ability to easily and inexpensively develop a customized application tailored to a specific parent. We are seeking development of a tool which can be used to help families (especially, children) cope with deployments by providing a means to have simple verbal interactions with loved ones for re-assurance, support, affection, and generic discussion when phone and internet conversations are not possible. The application should incorporate an AI that allows for flexibility in language comprehension to give the illusion of a natural (but simple) interaction. The current solicitation is not aiming to build entertainment, but a highly accurate and advanced simulation platform. Voice-recognition and voice-interaction are required. The User Interface is a critical component for this program. Application must be user friendly and application must be easy to install and maintain. Verbal interactions should be as normal as current technology will allow. Proven track record for creating similar types of applications is desired, but not required. Development plans should include the use of trained psychological health and family advocacy experts with experience providing services to military populations. Project MUST include discussion of how personal information would be collected, recorded, and rendered as well as address issues about information content and complexity of proposed simulation application. If using a web-based application, security and maintenance issues must be addressed. Application must run on typical family-owned computer systems.

PHASE I: Work with DoD Subject Matter Experts to define exact needs and scope of the application. Provide for the development of a complete concept plan, concept design for the overall system and a simple working proof-of-concept demonstration. In this concept plan, address the following items with respect to the Phase II requirements: 1. Develop metrics to determine user acceptance, usability, and content requirements. 2. Describe, illustrate, and storyboard a complete scenario with the help of Subject Matter Experts. 3. Outline technology limitations and risks, including minimum system requirements. 4. Identify development tools for producing the simulation. 5. Devise an implementation and plan for a detailed usability study 6. Develop a basic proof-of-concept demonstration of technology

PHASE II: 1. Finalize application design based on Phase I results 2. Build, refine, and demonstrate the prototype system. 3. Perform user acceptance and usability study 4. Develop strategy for customizing simulation for military families.

About 4.5 million Americans are collecting jobless benefits, a 26-year high, so the Web sites and phone systems now commonly used to file for benefits are being tested like never before.

Even those that are holding up under the strain are in many cases leaving filers on the line for hours, or kissing them off with an “all circuits are busy” message. Agencies have been scrambling to hire hundreds more workers to handle the calls.

Systems in New York, North Carolina and Ohio were shut down completely by technical glitches and heavy volume, and labor officials in several other states are reporting higher-than-normal use.

Israel’s army responded with artillery to a barrage of at least three rockets. No group has claimed responsibility.

Israeli media later reported a second rocket attack, but an army spokesman said this was a false alarm.

His testimony confirmed accounts, first reported in The Telegraph, from survivors of the extended al Samouni clan who said they feared between 60 and 70 family members had been killed.

“Inside the Samouni house I saw about ten bodies and outside another sixty,” Mr Shaheen said.

“I was not able to count them accurately because there was not much time and we were looking for wounded people.

“We found fifteen people still alive but injured so we took them in the ambulances.

“I could see an Israeli army bulldozer knocking down houses nearby but we ran out of time and the Israeli soldiers started shooting at us.

“We had to leave about eight injured people behind because we could not get to them and it was no longer safe for us to stay.” Mr Shaheen was in a convoy led by a jeep from the International Committee of the Red Cross that made its way down war-damaged tracks past demolished houses to the town of Zeitoun.

Concerns had been growing that Zeitoun had witnessed massive civilian casualties after surviving members of the Samouni clan reached Gaza City three days ago.

They said that after the Israeli army first took the town on Saturday night soldiers had ordered about 100 members of the clan to gather in a single house owned by Wael Samouni around dawn on Sunday.

A handful of survivors, some wounded, others carrying dead or dying infants, made it on foot to Gaza’s main north-south road before they were given lifts to hospital. Three small children were buried in Gaza City that afternoon.

According to the survivors between 60 and 70 family members had been killed by shrapnel and falling masonry.

Convoys of ambulances twice headed to the area to look for wounded but they were driven back by Israeli shooting.

During today’s three hour lull in offensive operations by Israel, the ICRC led the rescue convoy in although it took a long time for the convoy to make its way down war-damaged.

The market will be eyeing weekly U.S. jobless claims due later in the day, and December non-farm payroll and unemployment data on Friday, which are likely to be dismal, for further clues on future demand.

U.S. crude for February delivery CLc1 was up 14 cents at $42.77 a barrel by 0230 GMT, after sinking 12.3 percent to $42.63 overnight, the biggest single-day percentage loss since Sept. 24, 2001.

London Brent crude LCOc1 was up 8 cents at $45.94.