Rush for safe havens as euro fears rise

US benchmark borrowing costs plunged to levels last seen in 1946 and those for Germany and the UK hit all-time lows as investors took fright at what they see as a disjointed policy response to the debt crisis in Spain and Italy. In a striking sign of the flight to haven assets, German two-year bond yields fell to zero for the first time, below the equivalent rate for Japan, meaning investors are willing to lend to Berlin for no return. US 10-year yields fell as low as 1.62 per cent, a level last reached in March 1946, according to Global Financial Data. German benchmark yields reached 1.26 per cent while Denmark's came close to breaching the 1 per cent level, hitting 1.09 per cent. UK rates fell to 1.64 per cent, the lowest since records for benchmark borrowing costs began in 1703. "They are extreme levels because we are in an extremely perilous situation. People just want to put their money somewhere where they think they will get it back. People may soon be paying Germany or the US to look after their money," said Gary Jenkins, head of Swordfish Research, an independent credit analysis company. The flight to safety came as the situation in Italy and Spain, the eurozone's third- and fourth-largest economies, deteriorated further. Italy held a disappointing debt auction and saw its benchmark borrowing costs rise above 6 per cent for the first time since January. The euro fell 0.8 per cent against the dollar to under $1.24 for the first time in two years. Confusion over how the Spanish government's rescue of Bankia, the stricken lender, will be structured led the premium Madrid pays over Berlin to borrow to hit fresh highs for the euro era at 540 basis points. Analysts said the elevated level meant that clearing houses could soon raise the amount of margin, or collateral, that traders need to post against Spanish debt, a move that led to the escalation of crises in Portugal and Ireland. The European Central Bank has made clear to Spain that it cannot use the bank's liquidity operations as part of a recapitalision of Bankia. However, the central bank said on Wednesday it had not been officially consulted on the plans. Equity markets globally fell on the eurozone fears with bourses in Paris, Frankfurt and London all dropping 2 per cent. But Nick Gartside, international chief investment officer for JPMorgan Asset Management, noted that while US bond yields had halved since April last year the S&P 500 equity market was at the same level. "One of those two markets is mispriced. Core government bonds are an efficient market and they are ahead," he added. Investors said borrowing costs for the US, UK and Germany were likely to continue to fall amid a worsening economic backdrop and the threat of more central bank intervention. Wealth managers have been moving client assets into currency havens in recent weeks, with the Swiss franc and the US dollar among the biggest beneficiaries "Risk aversion, a rapidly slowing global economy and unusually low policy rates will pin these short and intermediate maturity bonds at unprecedented low levels for quite a while," said Mohamed El-Erian, chief executive of Pimco, one of the world's largest bond investors. Mr Gartside said he could easily see German rates going below 1 per cent, following a path that only Japan and Switzerland have taken among major economies, while the US and UK could dip under 1.5 per cent. Markets are increasingly resigned to more turmoil until policy makers take more radical action. The two most popular plans of action for investors are for the ECB to buy Spanish and Italian bonds in unlimited size or for eurozone countries to agree on a fiscal union involving the pooling of debt. "You have to throw everything at it. Spain is just too big for half measures. The next intervention has to be not just massive in size but it has to show a total commitment," said Mr Jenkins. He recommends that the ECB set targets either for the premium Spain and Italy pay to borrow over Germany or for their yields.

Euro break-up 'could wipe 50pc off London house prices'

Property prices in the capital’s most sought-after postcodes have been driven up by investors moving funds out of assets held in euros to buy into what is seen as a “safe haven” alternative. Foreign money seeking a refuge from the wider economic turmoil accounted for 60pc of acquisitions of prime central London property between 2007 and 2011, according to a report by Fathom Consulting for Development Securities. If the shared currency broke up completely, London property would initially be boosted by the continued flight towards a safe haven, the report predicts. But, once the break-up had taken place, demand for these assets as an insurance against this event would start to ebb. “Although fears about a messy end to the euro debt crisis may account for much of the gain in prime central London (PCL) prices that has taken place over the past two years, we find that a break-up of the single currency area is also the single greatest threat to PCL,” said researchers.

120 schoolgirls poisoned in Afghanistan

120 schoolgirls and three teachers have been poisoned in Afghanistan, local police reported on Wednesday. The attack has been blamed on Taliban. The incident in the northern Takhar province is the second in several months. The attack appeared aimed at shutting down schools educating girls and women, which radicals deem inappropriate. Perpetrators reportedly used an unidentified toxic powder to contaminate the air in classrooms. Police say evidence suggests that the substance was sprayed. The poisoning left dozens of Bibi Haji school students unconscious. Last month a similar poisoning attack in Takhar province affected 150 schoolgirls, who drank contaminated water. Afghanistan's intelligence agency, the National Directorate of Security (NDS), says the Taliban is behind such attacks and appears intent on closing schools ahead of a 2014 withdrawal by the NATO-led coalition. "A part of their Al Farooq spring offensive operation is … to close schools. By poisoning girls they want to create fear. They try to make families not send their children to school," NDS spokesman Lutfullah Mashal said as cited by Reuters. Afghanistan's Ministry of Education said last week that 550 schools in 11 provinces where the Taliban have strong support had been closed down by insurgents. Education was forbidden for women in Afghanistan after the Taliban took control of the country in the wake of the Soviet withdrawal. After the country was conquered by the US and its allies in 2001, females were allowed into school again. But both students and teachers fall victim to radicals’ attacks, especially in the more conservative provinces of the country.

Speculation over 'killing' of Assad brother-in-law

Speculation was rife on Wednesday among Syrian anti-regime activists over the alleged "killing" of President Bashar al-Assad's brother-in-law who is also Syria's deputy defence minister. Assef Shawkat, former head of military intelligence, was poisoned, according to anti-regime activists. The authorities in Damascus could not be reached for comment and have not responded publicly to the claim. According to anti-regime activists, Shawkat was being buried on Wednesday in his hometown, which they identified as Madhale, near the Mediterranean coastal city of Tartous. Several activists quoted by Saudi-owned Al-Arabiya television said black flags were flying in Madhale in mourning. On their Syrian Revolution Facebook page, online anti-regime activists wrote that: "Assef Shawkat is being buried right now in his home town Madhale ... God curse him. He was poisoned." They said Shawkat's body was transported to a hospital near his hometown that was emptied of patients on Tuesday evening. Speculation over Shawkat's fate first emerged on May 20 when Al-Jazeera and Al-Arabiya television broadcast an amateur video showing a man claiming responsibility on behalf of a rebel group for killing six regime stalwarts. They included Shawkat, Interior Minister Mohammed al-Shaar, Defence Minister Daoud Rajha, national security chief Hisham Bakhtiar and Hassan Turkmeni, assistant to the vice president. Turkmeni appeared on state television this week to dismiss the reports, while Shaar denied them in a telephone interview, accusing Al-Jazeera and Al-Arabiya of "lies and slander." But Shawkat has not made any public appearance or personally denied the reports, though he rarely makes public statements. According to Peter Harling, an expert on Syria with the Brussels-based International Crisis Group, the reports are "essentially unconfirmed for now. "What is interesting is this story's success, regardless of its factual grounding," Harling told AFP. "A month ago, Syrians would not have believed, conveyed, invested in such news and it would not have spread. "The regime then appeared particularly strong. Now there is a sense that the armed opposition is on the offensive." A member of the inner circle of former Syrian president Hafez al-Assad and his son Bashar, Shawkat rose quickly through the ranks of power after he married the late leader's only daughter, Bushra, in the 1990s. But Shawkat's relations with the Assad clan were not always smooth. Bashar's powerful brother Maher al-Assad allegedly shot him in the stomach in 1999. The two men were named in leaked version of a preliminary UN report as possible suspects in the 2005 assassination of Lebanese ex-premier Rafiq Hariri.

Rogue Afghan police officers shoot dead two British troops

Two members of the British military were shot dead by Afghan policemen in the latest fatal instance of rogue elements in the country's forces turning their guns on their allies. The servicemen, a soldier in the 1st Battalion Welsh Guards and a RAF airman, were shot dead at a checkpoint at Lashkar Gah district in Helmand where they were providing security for a meeting with Afghan officials. The killings brought the number of UK deaths in the war to 414. The attacks came on the day Afghanistan took its next faltering step towards the exit of Western forces with the declaration of another series of regions passing under the security control of Hamid Karzai's government. But just hours before the announcement, Arsala Rahmani, an ex-Taliban official now involved in the peace process was shot dead in Kabul. The Afghan government and international forces said the murders were the vicious reactions of an insurgency which is fracturing, with more of its soldiers defecting under a "reconciliation programme" and morale supposedly fraying among its leadership, the "Quetta Shura", based in Pakistan. But the shootings by the Afghan police, a so-called "green on blue" attack will heighten foreboding among Western forces of an enemy within. Around 20 coalition troops have been shot dead in 2012 this year by erstwhile comrades, with the Taliban boasting of "sleepers" in the ranks. Examination of the circumstances of some deaths, however, show various reasons for the killings, not all of them political. But they have still been propaganda coups for the insurgents. The policemen opened fire with their AK-47 Kalashnikov rifles at Patrol Base Attal around 3 o'clock in the afternoon during what was described as a routine meeting. They were identified last night as Sarhad Mohammed, 20, from Deshu district in Nagarhar, and Sardar Wali, also 20, from the Helmand town of Musa Qala, which had changed hands between British and American forces and the Taliban several times in bloody clashes. Afghan officials say Sarhad Mohammed was the first to start shooting and was then himself killed by another Afghan policeman. Sardar Wali was wounded in the arm but managed to flee. Fareed Ahmed, a spokesman for the Helmand provincial police, said the men had been in the force for about a year and their behaviour had not aroused suspicion. British and other international troops are taking additional precautionary measures following a spate of similar lethal incidents. There is also more rigorous vetting, including biometric testing, for recruits seeking to join the Afghan forces. But there was no indication the two policemen had not been put through such scrutiny. Major Ian Lawrence, spokesman for Task Force Helmand, said: "The thoughts and condolences of everyone serving in the Task Force are with their families and friends." Defence Secretary Philip Hammond said: "British forces work alongside Afghan forces every day with thousands of contacts with them every day. This is a country that has an insurgency... sadly, occasionally, these events occur."

France and Germany want to suspend the Shengen Agreement

They say they want a temporary suspension while the crisis continues. Spain will being introducing border restrictions during the European Central Bank meeting in Barcelona at the start of May.Angela Merkel and Nicolás Sarkozy - The Interior Ministers of France and Germany have written a joint letter in which they call for the reform of, and ‘temporary suspension’ of the Schengen agreement which allows for the free movement between most member states of the EU. They say the change is necessary ‘to control the massive flow of immigrants’. The call comes just ahead of the 25th anniversary of the treaty this coming Monday, although many countries signed up in March 1995. France and Germany consider that a ‘temporary suspension’ is needed during the crisis, and Paris and Berlin speak of ‘provisional’ closure of frontiers, and only when a country in the Schengen space cannot control the flow of immigrants. They say they will give the details to their European partners at the next conference. Meanwhile Spain has announced the suspension of the Schengen Treaty and the re-establishing of frontier controls with France ahead of the European Central Bank meeting which is to be held in Barcelona on May 3. It has not yet been decided how long the border restriction will remain in place, but say it will allow the authorities to act if there is ‘a serious threat to public order or interior security’. The measure will only affect the frontiers between Spain and France from the Basque Country to Cataluña. Reports indicate that it was the Catalan Government to step up the controls in the face of possible disturbances and the arrival of anti-system protestors from other countries in Europe.

10 things not to say to someone when they're ill

'People really did feel the need to reassure me that my hideousness was plain to see.' Illustration: David McCoy for the Guardian

What no one ever tells you about serious illness is that it places you at the centre of a maelstrom of concerned attention from family and friends. Of course it does. That's one of the nice things. It's actually the only nice thing. But it's also a rather tricky challenge, at a time when you may feel – just slightly – that you have enough on your plate. Suddenly, on top of everything else, you are required to manage the emotional requirements of all those who are dear to you, and also, weirdly, one or two people who you don't see from one year to the next, but who suddenly decide that they really have to be at your bedside, doling out homilies, 24 hours a day. It's lovely to hear from people when you're ill. But it's also lovely when they add: "No need to reply." The biggest shock, when I was diagnosed with cancer the summer before last, was quickly observing that people can be quite competitive in their determination to "be there for you", and occasionally unable to hide their chagrin when some other chum has been awarded a particularly sensitive role at a particularly sensitive medical consultation. Nobody means to be intrusive or irritating. It's all done with the finest intentions. But, God, it's a pain. Yet by not saying 10 simple things, you too, can be the friend in need that you want to be.

1 "I feel so sorry for you"

It's amazing, the number of people who imagine that it feels just great to be the object of pity. Don't even say "I feel so sorry for you" with your eyes. One of my friends was just brilliant at mimicking the doleful-puppy-poor-you gaze, and when I had been subjected to a sustained bout of it, I used to crawl over to the local pub for lunch with him, just so that he could make me laugh by doing it. Don't say "I feel so sorry for you" with your hand either. When someone patted my thigh, or silently rested their paw on it, often employing the exasperating form of cranial communication known as "sidehead" at the same time, I actually wanted to deck them. Do say: "I so wish you didn't have to go through this ghastly time." That acknowledges that you are still a sentient being, an active participant in your own drama, not just, all of a sudden, A Helpless Victim.

2 "If anyone can beat this, it's you"

Funnily enough, it's not comforting to be told that you have to go into battle with your disease, like some kind of medieval knight on a romantic quest. Submitting to medical science, in the hope of a cure, is just that – a submission. The idea that illness is a character test, with recovery as a reward for the valiant, is glib to the point of insult. Do say: "My mum had this 20 years ago, and she's in Bengal now, travelling with an acrobatic circus." (Though not if that isn't true.)

3 "You're looking well"

One doesn't want to be told that one's privations are invisible to the naked eye. Anyway, one is never too ill to look in a mirror, and see a great big moon-face, bloated with steroids and sporting the bright red panda eyes that are triggered by that most aggressive and efficient of breast-cancer drugs, Docetaxel. I knew I looked like death warmed up, not least because I felt like death warmed up. Nobody wants to be patronised with ridiculous lies. They are embarrassing for both speaker and listener. If your sick pal wants to discuss her appearance, she'll ask you what you reckon. It'll be a leading question, so take your cue from her.

4 "You're looking terrible"

 

I know it sounds improbable. But people really did feel the need to reassure me that my hideousness was plain to see. One person told me that while I'd put on a lot of weight, I'd of course be able to go on a diet as soon as I was better. I wouldn't have minded quite so much, if she hadn't arrived bearing a giant mound of snacks and cakes, a great, indiscriminate pile of stuff that suggested she'd been awarded four minutes in Whole Foods by Dale Winton, in a nightmarish haute-bourgeois version of Supermarket Sweep. And, in fact, I haven't gone on a diet. Somehow, being a size 10 doesn't seem tremendously importantany longer. On the other hand, when I said: "Don't I look monstrous?" I was asking people to help me to laugh at myself – which many did – and to tell me that this too would pass. One of my friends took photographs of me, behind a curtain in the hospital, looking comically interfered with by surgeons, and festooned with tubes and drains full of bloody fluid. We laughed so much that I probably came nearer to death right then than at any other point.

5 "Let me know the results"

 

Oddly, one doesn't particularly want to feel obliged to hit the social networks the moment one returns from long, complicated, stressful and invasive tests, which ultimately delivered news you simply didn't want to hear. Of course, this request is made because people are worried. But, a bit of worry is easier to bear than the process of coming to terms with news that confirms another round of debilitating, soul-crushing treatment. If people do want to talk about such matters, they really need to be allowed some control over when, how and to whom. Contacting their very nearest and dearest instead is fine, as is volunteering to spread the bad tidings to others who are also anxious.

6 "Whatever I can do to help"

Apart from anything else, it's boring. Everybody says it, even though your assumption tends to be that people do want to help, of course. That doesn't mean that help should not be offered. But "Can I pick the children up from school on Tuesdays?" or "Can I come round with a fish pie and a Mad Men box set?" is greatly preferable to: "Can I saddle you with the further responsibility of thinking up a task for me?" If you do happen to be on the receiving end of "whatever I can do to help", be shameless. Delegate with steely and ruthless intent.

7 "Oh, no, your worries are unfounded"

Especially when those worries are extremely founded indeed. Like a lot of women, when I was first diagnosed, I was disproportionately focused on the prospect of losing my hair. One friend, every time I tried to discuss this with her, would assert – baselessly – that this wasn't as likely to happen as it used to be. Actually, it's still very likely, and indeed it came to pass. But the crucial thing was this: I didn't want to talk about how pointless it was to be fearful. I wanted to talk about how sorely I dreaded the day when I was bald. When people want to talk about their fears, they want to talk about their fears, not to be told, quite blatantly, that their fears are imaginary. Even when they are imaginary, there are more subtle ways of offering assurance than blank rebuttal. Usually, an ill person brings something up because they feel a need to discuss it. Denying them that need is a bit brutal.

8 "What does chemotherapy [for example] feel like?"

 

It is staggering, the number of people who find it impossible to restrain their curiosity. Swaths of folk appear to imagine that exactly what you need, in your vulnerability, is a long and technical Q&A during which you furnish them with exhaustive detail pertaining to the most shit thing that's ever happened to your body in your life. If someone wants to talk about their procedures or their symptoms, they will. If you have to ask questions, that's prima facie evidence that this is not what they'd discuss, if only they could be gifted with just a smidgeon of control over the conversational initiative. Again, the golden rule is: take your lead from the person undergoing the experience. I tended to want my mind taken off all that stuff, and have a nice chat about nice things. One of my friends, asked by another what she had been up to lately, found herself saying she'd had a great time visiting Deborah in hospital after her mastectomy. It had indeed been a lively visit. Eight lovely people had turned up all at once, and it had been quite the rambunctious gathering. When she told me that it had been an absurd social highlight for her, I felt fantastically proud.

9 "I really must see you"

Don't say it, particularly, if you are then going to indulge in some long and complicated series of exchanges about your own busy life and the tremendous difficulty you have in finding an actual window, even though this appointment is so awfully important to you. At one point, I was sitting in a chemotherapy suite, large and painful cannula in the back of my hand, pecking out texts to somebody who had to sort something out this week, and wouldn't take "Let's do this later" for an answer. When I reluctantly picked a particular time from the list she had bossily pinged over, she replied that she'd have to bring her toddler son with her if itreally had to be then. I knew I couldn't handle a tiny visitor (and wasn't sure about the ability of the tiny visitor to handle it either), so we then arranged something else. A few days later, at the very time of predicted childcare crisis, I saw a tweet from her, declaring that she was wearing a new cocktail dress and held up in traffic on her way to a long-anticipated and very glamorous do. She had clearly just buggered up her dates and didn't want to say: "Whoops. Actually, I'll be at a PA-A-ARDEEEEE." Fair enough. Sweet, really. Nevertheless, the planning thing is an arse. I liked it when people just said, "Can I come by after work this evening?" or, even better, "I've got tickets to the theatre on the 25th. Tell me on the day if you can face it."

10 "I'm so terribly upset about your condition"

One friend, when I told her the initial news, blurted out: "I can't cope without you!" and unleashed a flood of tears. (I hadn't sobbed myself at that point. I never did.) Ages later, when she emerged from the loo at the pub I had designated as Telling People HQ, she explained that she'd been caterwauling unrestrainedly when a kind lady asked her what was wrong. Having sketched out her troubles, she got this reply, or something like it: "What? You're weeping in the lavatory, while your friend is in the bar having breast cancer? Pull yourself together, and get out there." This had inspired another torrent of waterworks. And that is the most important thing to remember, when your friend is facing a frightening and possibly fatal illness: it's not, not, not about you. If you're too upset to be in a position to comfort your friend, send cards, send flowers, send presents. But don't send your ailing chum a passionate storm of your own wild grief, personally delivered. It's a little too needy, under the circs.

If you recognise things that you have said or done yourself within this list, don't feel bad about it, at all. I most certainly have, and I've said and done much, much worse too; it took being on the receiving end before I realised what it could feel like. The thing is this: giant illness is a time of great intensity, and even the most cack-handed expressions of support or love are better than a smack in the face with a wet tea-towel. People feel helpless when they see that their friend is suffering. Sometimes – often – they say the wrong thing. But they are there, doing the best that they can, at a terrible, abject time. That's the most important thing of all. I look back on those grisly moments of ineptitude and clumsiness with exasperated amusement and tender, despairing, deep, deep fondness. The great lesson I learned from having cancer, was how splendid my friends were, whatever their odd little longueurs. They all, in their different ways, let me know that they loved me, and that is the most helpful thing of all. I'm so lucky to have them.

Energy-rich Qatar seeks la dolce vita with purchase of luxury resorts on Italy’s Sardinia isle

Qatar signed a deal Monday to buy the operator of four luxury resorts and other properties on the island of Sardinia as the wealthy Gulf emirate looks to bolster ties with Italy. The purchase coincided with a visit to Rome by the country’s emir. It is the latest deal in a European shopping spree that has given the natural-gas rich state a stake in European banks, energy companies and some of the continent’s best known brands. 0 Comments Weigh InCorrections? Personal Post State-owned Qatar Holding, an arm of the country’s sovereign wealth fund, said it will acquire resort operator Smeralda Holding from Los Angeles-based real estate investment firm Colony Capital. The deal includes the Cala di Volpe, Pitrizza, Romazzino and Cervo hotels, a marina and shipyard, a golf club and a 51 percent interest in 2,290 hectares (5,660 acres) of undeveloped land nearby. Qatar Holding plans to keep Smeralda’s existing management, and said Starwood Hotels and Resorts Worldwide Inc. will continue to run the hotels. Financial terms were not disclosed. The deal must still be approved by Italian regulators. The deal was announced as Italian Premier Mario Monti held talks with Qatar’s emir Sheik Hamad bin Khalifa Al Thani at a government villa in Rome. Monti hailed the visit as way for the countries to strengthen their friendship. “I am very happy for this meeting because it was (an) occasion to consolidate a strategic relationship between the two countries,” Monti told a news conference after the talks. The emir told reporters that Qatar’s sovereign fund is looking for ways to invest in Italy. When asked what factors discouraged investment in Italy, the emir said “corruption, first of all,” according to Monti. Among the accords signed Monday was one aimed at boosting efforts to fight graft and crime. Another raises the number of passenger flights between the countries from 14 to 35 weekly, and cargo flights from two to seven, Monti said. Monti promised Italian help to Qatar as it prepares to host soccer’s 2022 World Cup. “Italy has unique know-how and can contribute to the success” of the sporting event, the Italian leader said. Over the past several years, Qatar has used its vast energy wealth to amass a diverse portfolio of European properties. Its holdings on the continent include stakes in Barclays PLC, Credit Suisse Group, Volkswagen AG, and the London Stock Exchange. It acquired stakes in Spanish power utility Iberdrola SA and electric company Energias de Portugal last year. Qatari investors control French soccer team Paris Saint-Germain and Spanish club Malaga, while the logo of state-sponsored nonprofit Qatar Foundation graces the jerseys of another Spanish team, Barcelona.

Bahraini Embassy roof protester threatens to jump

 

A protester who has climbed on to the roof of the Bahraini Embassy in central London has threatened to jump. Moosa Satrawi is highlighting the imprisonment and treatment of prominent human rights activist, Abdulhadi al-Khawaja and Hasan Mushaima, the leader of a banned political party in Bahrain. Mr Mushaima's son, Ali Mushaima, is also on the roof. The Metropolitan police said officers were at the embassy in Belgrave Square, which has been closed. Mr Satrawi, 30, told the BBC: "I'm not going down until I hear Mr al-Khawaja call me or Mr Mushaima. "Otherwise I will jump myself from the roof." He added that protesters have no food or water with them. Mr al-Khawaja is in the third month of a hunger strike and was moved to a military hospital amid concerns that he was close to death. Mr Mushaima suffers from cancer and his supporters say that authorities are withholding treatment. A Metropolitan Police spokesman said: "We were called at 13:35 BST with reports of two protesters on the roof of the Bahrain embassy in Belgrave Square. "Officers are in attendance and road closures are in place." The embassy said the situation was being handled by the police. The protest comes days before Bahrain is due to host its most high-profile international event, the Formula One Grand Prix.