Fed 'could end bond-buying in 2014'

19 June 2013 Last updated at 22:21 ET

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US Federal Reserve Chairman Ben Bernanke on the pace of asset purchases

The US Federal Reserve has maintained the rate of its asset purchase programme at $85bn (£54bn) a month, but could start scaling it back soon.

It also kept interest rates at a record low range of between zero and 0.25%.

Fed chairman Ben Bernanke said if the central bank's forecasts were correct, it could begin slowing asset purchases by the end of 2013 and wind them down completely by the middle of 2014.

But he emphasised that the programme was tied to economic conditions.

"We have no deterministic or fixed plan," Mr Bernanke told a press conference after the Fed's latest two-day monetary policy meeting.

The Fed painted a brighter economic outlook, in which it expects the unemployment rate to continue to fall and inflation to edge closer to its longer term target of 2%.

US stocks fell sharply in afternoon trading as investors digested a possible scaling back of stimulus measures. The Dow Jones dropped 206 points, or 1.3%, to close at 15,112.

Benchmark 10-year US bond yields jumped to a 15-month high on expectations the Fed will reduce its bond buying.

'Threshold, not trigger'

The Fed's asset purchase programme, in which it has been buying $85bn of government bonds a month, aims to lower long-term interest rates to encourage borrowing, spending and investing.

Mr Bernanke said that the tapering of the programme was akin to "letting up a bit on the gas pedal" and "not beginning to apply the brakes".

Continue reading the main story

Samira Hussain BBC business reporter, Washington DC

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The current relationship between the Federal Reserve and the American economy is new and uncharted territory.

The central bank has been supporting this country's current recovery by steadily pumping money in to the US economy.

The key to any good relationship is clear communication.

Some say that has been lacking on the part of the architect of the stimulus, Ben Bernanke.

The mere suggestion by the Chairman of the Federal Reserve that it may ease some of its asset purchases sooner than expected, sent jitters through markets back in May.

The relationship is still trying to recover.

By Bernanke's own admission, the goal of Wednesday's press conference was to offer clarity, if and when the Fed may want to start easing its way out of the relationship.

In spending more than an hour speaking to reporters, Bernanke tried to send as clear a message as he could.

Eventually this relationship has to change but for now, the stimulus will continue.

He added that interest rates were likely to remain low for some time after asset purchases concluded, and any rate rise was likely to be "far in the future".

The Fed has previously said that it would not consider raising rates until the unemployment rate, currently 7.6%, fell to 6.5%.

But Mr Bernanke stressed that this 6.5% level was "a threshold, not a trigger", saying that if unemployment were to fall below it, it would not immediately lead to a rate rise, but merely a consideration of the broader economic outlook.

Mr Bernanke also noted that inflation had been running below the Fed's 2% longer-run objective, but said that temporary factors were partly the reason for that.

Forecasts

In its latest statement, the Fed noted further improvement in labour market conditions in recent months, and said the downside risks to the jobs market and the economy had "diminished since the Fall".

In fresh quarterly projections, the central bank said it expects the US economy to grow between 2.3% and 2.6% in 2013.

It predicts an unemployment rate of about 7.2% to 7.3% by the end of the year, slightly lower than its March prediction. It expects unemployment to have fallen to 5.8% to 6.2% by 2015.

Alec Young, global equity strategist at Standard & Poor's in New York, told the BBC: "No matter how you look at it, we're closer to the end of this unprecedented stimulus than we were yesterday.

"They have increased at the margin their outlook for the economy - and what's going to drive an end to QE (quantitative easing) and tapering of their bond purchases, and ultimately a tightening of interest rates, is a healthier economy."

Inflation concerns

The Fed said inflation could run as low as 0.8% this year, but will pick up next year to between 1.4% and 2%.

Continue reading the main story

"Inflation that is too low is a problem," Mr Bernanke said. "We expect inflation to come back up. That's our forecast. But... we are concerned about it."

"We would like to get inflation up to our target. And that will be a factor in our thinking about the thresholds. It will be a factor in our thinking about asset purchases."

Fourteen of the 19 Federal Reserve board members and bank presidents, who set out the quarterly projections, said they did not think it would be appropriate to raise interest rates until 2015. One member thought a rate rise would not be seen until 2016.

Mr Bernanke has been Federal Reserve chairman since 2006 and is expected to step down when his second term ends in January 2014.

President Obama has suggested that Mr Bernanke will not continue beyond the end of his term, saying in a recent interview that he had "already stayed a lot longer than he wanted".

At the press conference, Mr Bernanke declined to comment on his personal plans.

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Assange asylum bid for NSA leaker

20 June 2013 Last updated at 05:25 ET

Wikileaks founder Julian Assange is trying to broker a deal that would see US surveillance programme leaker Edward Snowden granted asylum in Iceland.

Mr Assange said he had been in touch with lawyers for Mr Snowden, who fled to Hong Kong before the scandal broke.

Iceland's PM said "informal discussions" had been held with an intermediary of the ex-CIA contractor.

But Sigmundur David Gunnlaugsson said Mr Snowden, 29, would need to be in Iceland to apply for asylum.

Mr Snowden, who most recently worked as a contract computer technician for the National Security Agency (NSA), the US electronic spying agency, has vowed to fight any extradition attempts by the US.

The US has yet to file a formal request for his extradition from the Chinese territory.

Fair trial?

The leaks, published in a series of articles this month in The Guardian and Washington Post newspapers, revealed that US agencies had systematically gathered vast amounts of phone and web data.

"We are in touch with Mr Snowden's legal team and have been, are involved, in the process of brokering his asylum in Iceland," said Mr Assange in a conference call from the Ecuadorean embassy in London, where he himself is fighting extradition to Sweden.

On Monday, Mr Snowden said US officials had destroyed any possibility of a fair trial by labelling him a traitor.

"The US government, just as they did with other whistleblowers, immediately and predictably destroyed any possibility of a fair trial at home, openly declaring me guilty of treason," he wrote in a live online chat.

Former Vice-President Dick Cheney and two influential members of the US Congress have accused the leaker of betraying his country.

Mr Snowden's father has also urged his son not to commit "treason", using a US TV interview this week to urge him to come home and "face justice".

NSA Director Gen Keith Alexander told Congress on Wednesday that surveillance programmes leaked by Mr Snowden had helped thwart 50 attacks since 2001.

Plans to attack the New York Stock Exchange were among 10 plots targeting the US that had been stopped, Mr Alexander told the intelligence committee of the House of Representatives, adding that the snooping operations were critical.

Julian Assange walked into the Ecuadorean embassy in London on 19 June 2012 when his appeal against extradition to Sweden for questioning on accusations of sex crimes was turned down.

He has always denied the accusations, and said on Wednesday he would stay in the embassy even if they were dropped, as he still feared being sent to the US for releasing secret documents.

Wikileaks made headlines around the world in 2010 after it released more than 250,000 leaked US diplomatic cables.

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Tributes flood in for Gandolfini

20 June 2013 Last updated at 05:41 ET

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Lizo Mzimba takes a look back at James Gandolfini's career

Tributes have been pouring in for Sopranos actor James Gandolfini, who has died in Italy at the age of 51.

"We lost a giant today. I am utterly heartbroken," his Sopranos co-star Lorraine Bracco said.

The actor, who became a household name playing conflicted mob boss Tony Soprano, suffered a suspected heart attack while on holiday in Rome.

He had been due to attend the Taormina Film Festival in Sicily where he was to receive a special prize on Saturday.

"Jimmy was one of the most talented, authentic and vulnerable actors of his time. He was unorthodox and truly special in so many ways. He had the sex appeal of Steve McQueen or Brando in his prime as well as the comedic genius of Jackie Gleason," said Hollywood executive and Sopranos producer Brad Grey.

His co-stars from The Sopranos, which ran for six series between 1999-2007, were among the many to pay their respects to the popular star, who began his career on Broadway.

Paying tribute on Twitter, Steven Van Zandt, who played Silvio Dante in the show, wrote: "I have lost a brother and a friend. The world has lost one of the greatest actors of all time."

Actress Edie Falco, who played his on-screen wife Carmela, said: "I am shocked and devastated by Jim's passing. He was a man of tremendous depth and sensitivity, with a kindness and generosity beyond words. I consider myself very lucky to have spent 10 years as his close colleague.

"My heart goes out to his family. As those of us in his pretend one hold on to the memories of our intense and beautiful time together. The love between Tony and Carmela was one of the greatest I've ever known."

The Sopranos creator, David Chase, was also greatly saddened by the news.

"He was a genius. Anyone who saw him even in the smallest of his performances knows that. He is one of the greatest actors of this, or any time.

"A great deal of that genius resided in those sad eyes. He was my partner. He was my brother in ways I can't explain and never will be able to explain."

Susan Sarandon, who co-starred with Gandolfini in 2005's Romance and Cigarettes, wrote: "So sad to lose James Gandolfini. One of the sweetest, funniest, most generous actors I've ever worked with. Sending prayers to his family."

Steve Carrell, who appeared alongside Gandolfini in the recent magic comedy film The Incredible Burt Wonderstone, said the death was "unbelievably sad news".

"If you watch his work in anything, he is so specific in his characterisations - I think he was a genius," he told the BBC.

"When I had a chance to work with him, everyone I know was jealous because this guy was the real deal - he was a consummate actor but apart from that, an incredibly generous good man."

In 2009, Gandolfini worked on the big screen version of TV sitcom The Thick of It. In the Loop saw him play the hard-nosed Lieutenant General George Miller.

Its creator, Armando Iannucci, tweeted: "People were surprised James Gandolfini was so different from Tony Soprano. That's because he was a great actor. Warm, gentle and funny."

And co-star Chris Addison called him "a colossus in all respects. He could do it all but I loved his gift for comedy."

In The Loop co-star Peter Capaldi added his own statement: "I was a huge fan of James Gandolfini's. To actually work with him was one of the highlights of my career. He lived up to my expectations in every way."

"But what I will remember most about him, was not just the incredible truth and power of his acting, but his kindness and grace as a man. He was revered by us as an actor, but set us an even greater example as a man."

Before his career-defining role as Tony Soprano, Gandolfini was a notable stage actor most recently winning acclaim for his turn in God of Carnage, in 2009.

US film historian and critic Leonard Maltin said: "I was lucky enough to see him on Broadway in God of Carnage, in which he commanded the stage....Watching him try to harness his volcanic temper and sense of resentment against some 'entitled' fellow parents was riveting.

"The news of his death is still shocking, but his presence will continue to resonate for many years."

Comic actor Robin Williams also offered condolences to the star's family, going on to call him "an extraordinary actor".

Gandolfini also worked on documentaries including 2007's Alive Day Memories: Home From Iraq and Wartorn: 1861-2010, which dealt with post traumatic stress disorder in the military.

Documentary-maker Michael Moore wrote on Twitter: "One of the good guys, kind and generous and an active supporter of documentary filmmakers."

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Toronto mayor survives ejection bid

20 June 2013 Last updated at 13:31 ET

Embattled Toronto Mayor Rob Ford has survived a bid to oust him from office, after Canada's Supreme Court declined to intervene in a case against him.

Mr Ford had been accused of violating conflict-of-interest rules by voting on a bill pertaining to a charity he runs.

In November, a lower court ordered him out of office. He then won the reprieve now affirmed by the high court.

Recently, Mr Ford has grappled with unsubstantiated allegations he had been caught on video smoking crack cocaine.

He has vigorously denied the existence of such a video and that he is a drug user.

Mr Ford has refused to step down amid several staff departures and says he will run in the next mayoral election, scheduled for October 2014.

'Nothing wrong'

On Thursday, Canada's Supreme Court declined a request to hear a final appeal in the case against Mr Ford, effectively affirming an appeals court's decision that itself overturned a court ruling ordering him removed from office.

"I'm so happy this is finally over," Mr Ford said. "I've been vindicated and we can move on."

The effort by critics to have the Toronto mayor thrown out of office began when he was cited by the city's integrity commissioner for improperly using his staff in 2010 to send out solicitations for donations to a football charity he had founded.

The commissioner recommended to the city council that he repay the donations, totalling 3,150 Canadian dollars ($3,041; £1,961).

The city council took a vote on a measure rejecting the repayment order - and Mr Ford took part in that vote. He later testified he had never read the conflict-of-interest rules barring his participation and said he had done nothing wrong.

In November 2012, Ontario Superior Court Justice Charles Hackland said Mr Ford's "ignorance of the law" amounted to "wilful blindness", finding him guilty of violating conflict-of-interest rules and ordering him out of office.

Mr Ford blamed the finding against him on a crusade by "left-wing" critics. He was allowed to stay on the job while he appealed.

In January he won the appeal, which Mr Ford's critics in turn appealed to Canada's high court.

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Quebec fireworks blast kills two

20 June 2013 Last updated at 15:15 ET

Two people have been found dead after an explosion destroyed a Quebec fireworks plant, Canadian police say.

A massive blast rocked BEM Fireworks in Coteau-du-Lac shortly before 09:00 EST (13:00 GMT) and was followed by a fire and further explosions.

Images from the scene showed a plume of black smoke and exploding fireworks that could be seen from miles away.

Police evacuated about 40 homes in the town and temporarily closed a nearby highway in both directions.

One building at the plant was reduced to rubble.

'Lifted into the air'

Police have not identified the two people found in the wreckage but earlier said two of the factory's employees were unaccounted for.

Witnesses said the initial explosion rattled the entire area, about 50km (31 miles) west of Montreal.

"We got really, really, really scared," Ginette Liboiron, who runs a convenience store near the site, told the Associated Press.

"I thought my store was falling to the ground. It shook like you can't imagine. We all went outside to see and saw the big, incredible smoke. It went high up in the air, then it became black, black, black."

Another witness, Olivier Roy, told the Montreal Gazette he saw a smaller building at the plant "lifted into the air".

Fireworks could be heard detonating within the fire for at least two hours after the initial explosion. More than 150 firefighters battled the blaze on Thursday morning.

Quebec's police force said only that the investigation was "ongoing".

Environmental officials said low traces of metal were detected in the air nearby.

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US 'gay conversion' group closes

20 June 2013 Last updated at 15:59 ET

A prominent US Christian group that purported to rid gay people of same-sex attraction through prayer has said it is shutting down.

Three-decade old Exodus International made the announcement alongside an apology from President Alan Chambers to people "hurt" by its treatment.

He acknowledged "the shame and guilt you felt when your attractions didn't change".

The move comes as California seeks to ban "conversion therapy" of gay people.

The state passed a law in September banning the therapy for minors, with Governor Jerry Brown saying it had "no basis in science or medicine". The law only applies to licensed therapists, not ministers or others; supporters of the therapy have appealed.

Also, last year the psychiatrist who conducted a 2003 study purporting to validate the treatment Exodus and other groups offered recanted his study and apologised.

'Looking for change'

Continue reading the main story

What part of trying to convince gay people that they could be cured by quack science was good?"

End Quote John Aravosis Gay rights blogger

In a statement entitled I Am Sorry and directed at gay, lesbian, bisexual and transgender people, Mr Chambers, who is married to a woman, acknowledged "trauma that I have caused" and said he had kept quiet about his own same-sex attractions.

While saying he could "not apologize for my deeply held biblical beliefs about the boundaries I see in scripture surrounding sex", Mr Chambers said he was "sorry we promoted sexual orientation change efforts and reparative theories about sexual orientation that stigmatized patients".

"I am sorry that there were times I didn't stand up to people publicly 'on my side' who called you names like sodomite - or worse... I am sorry that I have communicated that you and your families are less than me and mine."

Board members of Exodus said the decision to shut the organisation down had been unanimous.

"We're not negating the ways God used Exodus to positively affect thousands of people, but a new generation of Christians is looking for change - and they want to be heard," said board member Tony Moore.

The group said locally affiliated ministries, "which have always been autonomous", will continue, but "not under the name or umbrella of Exodus".

Gay rights activist and blogger John Aravosis told the BBC that he was initially cheered the group was shutting down, but believed the apology did not go far enough.

"It keeps talking about all the 'good' work they did being 'overshadowed' by a few bad apples," he said. "What part of trying to convince gay people that they could be cured by quack science was good?"

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VIDEO: Boy hears for first time after implant

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James stars as Miami retain NBA title

Miami Heat beat San Antonio Spurs 95-88 in the deciding match of a dramatic series to retain the NBA title.

2013 Miami Heat

2012 Miami Heat

2011 Dallas Mavericks

2010 LA Lakers

2009 LA Lakers

2008 Boston Celtics

2007 San Antonio Spurs

2006 Miami Heat

2005 San Antonio Spurs

2004 Detroit Pistons

San Antonio were seconds away from clinching the championship on Tuesday before Miami fought back to win in overtime and force a decider.

With the series tied at 3-3, LeBron James scored 37 points to earn Miami the third title in their history.

The 28-year-old was named the most valuable player for the second successive season.

"To be able to come onto our floor and do it, it's the ultimate," said James, who had faced questions about his performances in key matches.

"I can't worry about what everybody says about me. I am LeBron James from Akron, Ohio, from the inner city. I'm not even supposed to be here. I'm blessed."

Courtside tickets were selling in Miami for up to $30,000 (£19,350) and the match lived up to the hype and expectation.

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James 'on way to becoming Jordan' - Drogba

The Spurs began strongly, taking a seven-point lead in the first quarter, though that was down to three by the latter stages of the third and they could not hold on.

Spurs head coach Gregg Popovich conceded the Heat were worthy champions.

"It's no fun to lose, but we lost to a better team," he said. "You can live with that as long as you've given your best. And I think we have."

NBA commissioner David Stern described the series as a "championship for the ages" which had "captivated a global audience".

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Western Canada hit by heavy flooding

21 June 2013 Last updated at 06:59 ET

As many as 100,000 people have had to flee their homes in western Canada amid heavy flooding.

Torrential rain and floodwaters have washed away roads and bridges and caused landslides in southern parts of the province of Alberta.

Communities around Calgary, Alberta's largest city, have been particularly badly hit, with a state of emergency declared in a large area to the south.

Schools and businesses, as well as several major roads, have been closed.

The mountain resorts of Banff and Canmore were left isolated after the Trans-Canada Highway was closed.

Helicopters and motor boats had to be used to rescue stranded homeowners.

One resident of Canmore said he woke in the middle of the night to a "kind of rumbling" sound and realised it was the nearby creek.

"At first it was just intense, pretty powerful, amazing thing to watch," Wade Graham told the Associated Press.

"As daylight came, it just got bigger and bigger and wider and wider, and it's still getting bigger and bigger and wider and wider."

"I watched a refrigerator go by. I watched a shed go by. I watched couches go by. It's insane," he added.

Some 25 communities in and around Calgary which lie along the affected rivers have been evacuated.

The Calgary Herald reported on Friday that residents were waiting anxiously as the level of the Elbow river peaked. The Bow river is expected to peak later on Friday.

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James Gandolfini 'dead on arrival'

21 June 2013 Last updated at 07:24 ET

Doctors and paramedics spent 40 minutes trying to save the late Sopranos star James Gandolfini, a hospital spokesman has said.

The actor was found in the bathroom of his Rome hotel room before he was taken to the Policlinico Umberto I hospital.

Dr Claudio Modini told Reuters that as attempts to resuscitate Gandolfini in the ambulance and hospital had failed, he was considered dead on arrival.

Results of a post-mortem examination are expected on Friday.

"The resuscitation manoeuvres, including heart massage, continued for 40 minutes and then, seeing no electric activity from the heart, this was interrupted and we declared James dead," Dr Modini said.

Under Italian law, medical examiners are required to conduct a post-mortem 24 hours after the body's arrival in the morgue.

The actor died while on holiday in Italy, where he had been due to receive an honorary award at the Taormina Film Festival in Sicily and teach a masterclass.

Festival organisers Mario Sesti and Tiziana Rocca said they were "deeply saddened" by Gandolfini's death.

"We had heard from James Gandolfini a few hours before and he was very happy to receive this award and to be able to travel to Italy," they said in a statement.

"He was the American actor that better than anyone else has been able to interpret the Italian-American with his personality full of contrasts, ambition, pain, humour. He was the face of the golden age of television, but also a memorable film actor."

They added they would be organising a tribute to his "career and talent".

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Brad Pitt: "I'm going to miss him dearly and I just wish his family some strength"

Meanwhile, Hollywood stars have continued to pay tribute to the actor.

Kathryn Bigelow, who directed Gandolfini in Zero Dark Thirty, said she was devastated by the news.

"James was such an enormous talent, and an even greater spirit. I will be forever grateful for the privilege of working with him, and shall cherish his memories always," she said.

Brad Pitt, who appeared in three films with Gandolfini, called him "a ferocious actor" and said he was "gutted by this loss".

At the time of his death, the actor had been working on upcoming HBO series Criminal Justice, and had two films due out next year - the comedy Enough Said and crime drama Animal Rescue.

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