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Monday, January 26, 2009

On Thursday, the municipal intermediate people’s court in Shijiazhuang, Hebei province, China pronounced sentences for 21 defendants implicated in the 2008 Chinese milk scandal which killed at least six infants and sickened nearly 300,000 others.

In the local court’s decision, 17 accused were indicted for the crimes of “producing, adding melamine-laced ‘protein powder’ to infant milk or selling tainted, fake and substandard milk to Sanlu Group or 21 other dairy companies, including six who were charged with the crime of endangering public security by dangerous means.” Four other courts in Wuji County, in Hebei, China had also tried cases on the milk scandal.

Zhang Yujun, age 40, of Quzhou County (Hebei), who produced and sold melamine-laced “protein powder” in the milk scandal, was convicted of endangering public security and sentenced to death by the Shijiazhuang intermediate people’s court.

The court also imposed the penalty of death upon Geng Jinping, who added 434 kg of melamine-laced powder to about 900 tons of fresh milk to artificially increase the protein content. He sold the tainted milk to Sanlu and some other dairy companies. His brother Geng Jinzhu was sentenced to eight years imprisonment for assisting in adding the melamine.

A suspended capital punishment sentence, pending a review, with two years probation, was handed down to Gao Junjie. Under the law, a suspended death sentence is equivalent to life imprisonment with good behavior. The court ruled that Gao designed more than 70 tons of melamine-tainted “protein powder” in a Zhengding County underground factory near Shijiazhuang. His wife Xiao Yu who assisted him, was also sentenced to five years imprisonment.

Sanlu Group General Manager Tian Wenhua, 66, a native of Nangang Village in Zhengding County, who was charged under Articles 144 and 150 of the criminal code, was sentenced to life imprisonment for producing and selling fake or substandard products. She was also fined 20 million yuan (US$2.92 million) while Sanlu, which has been declared bankrupt, was fined 49.37 million yuan ($7.3 million).

Tian Wenhua plans to appeal the guilty verdict on grounds of lack of evidence, said her lawyer Liang Zikai on Saturday. Tian testified last month during her trial that she decided not to stop production of the tainted milk products because a Fonterra designated board member handed her a document which states that a maximum of 20 mg of melamine was allowed in every kg of milk in the European Union. Liang opined that Tian should instead be charged with “liability in a major accident,” which is punishable by up to seven years imprisonment, instead of manufacturing and selling fake or substandard products.

According to Zhang Deli, chief procurator of the Hebei Provincial People’s Procuratorate, Chinese police have arrested another 39 people in connection with the scandal. Authorities last year also arrested 12 milk dealers and suppliers who allegedly sold contaminated milk to Sanlu, and six people were charged with selling melamine.

In late December, 17 people involved in producing, selling, buying and adding melamine to raw milk went on trial. Tian Wenhua and three other Sanlu executives appeared in court in Shijiazhuang, charged with producing and selling fake or substandard milk contaminated with melamine. Tian pleaded guilty, and told the court during her 14-hour December 31 trial that she learned about the tainted milk complaints and problems with her company’s BeiBei milk powder from consumer complaints in mid-May.

She then apparently led a working team to handle the case, but her company did not stop producing and selling formula until about September 11. She also did not report to the Shijiazhuang city government until August 2.

The court also sentenced Zhang Yanzhang, 20, to the lesser penalty of life imprisonment. Yanzhang worked with Zhang Yujun, buying and reselling the protein powder. The convicts were deprived of their political rights for life.

Xue Jianzhong, owner of an industrial chemical shop, and Zhang Yanjun were punished with life imprisonment and 15 years jail sentence respectively. The court found them responsible for employment of workers to produce about 200 tons of the tainted infant milk formula, and selling supplies to Sanlu, earning more than one million yuan.

“From October 2007 to August 2008, Zhang Yujun produced 775.6 tons of ‘protein powder’ that contained the toxic chemical of melamine, and sold more than 600 tons of it with a total value of 6.83 million yuan [$998,000]. He sold 230 tons of the “protein powder” to Zhang Yanzhang, who will stay behind bars for the rest of his life under the same charge. Both Zhangs were ‘fully aware of the harm of melamine’ while they produced and sold the chemical, and should be charged for endangering the public security,” the Court ruled.

The local court also imposed jail sentences of between five years and 15 years upon three top Sanlu executives. Wang Yuliang and Hang Zhiqi, both former deputy general managers, and Wu Jusheng, a former raw milk department manager, were respectively sentenced to 15 years, eight years and five years imprisonment. In addition, the court directed Wang to pay multi-million dollar fines. In December, Wang Yuliang had appeared at the Shijiazhuang local court in a wheelchair, after what the Chinese state-controlled media said was a failed suicide attempt.

The judgment also states “the infant milk powder was then resold to private milk collectors in Shijiazhuang, Tangsan, Xingtai and Zhangjiakou in Hebei.” Some collectors added it to raw milk to elevate apparent protein levels, and the milk was then resold to Sanlu Group.

“The Chinese government authorities have been paying great attention to food safety and product quality,” Yu Jiang Yu, spokesperson for the Ministry of Foreign Affairs, said. “After the case broke out, the Chinese government strengthened rules and regulations and took a lot of other measures to strengthen regulations and monitor food safety,” she added.

In the People’s Republic of China, the intermediate people’s court is the second lowest local people’s court. Under the Organic Law of the People’s Courts of the People’s Republic of China, it has jurisdiction over important local cases in the first instance and hear appeal cases from the basic people’s court.

The 2008 Chinese milk scandal was a food safety incident in China involving milk and infant formula, and other food materials and components, which had been adulterated with melamine. In November 2008, the Chinese government reported an estimated 300,000 victims have suffered; six infants have died from kidney stones and other acute renal infections, while 860 babies were hospitalized.

Melamine is normally used to make plastics, fertilizer, coatings and laminates, wood adhesives, fabric coatings, ceiling tiles and flame retardants. It was added by the accused to infant milk powder, making it appear to have a higher protein content. In 2004, a watered-down milk resulted in 13 Chinese infant deaths from malnutrition.

The tainted milk scandal hit the headlines on 16 July, after sixteen babies in Gansu Province who had been fed on milk powder produced by Shijiazhuang-based Sanlu Group were diagnosed with kidney stones. Sanlu is 43% owned by New Zealand’s Fonterra. After the initial probe on Sanlu, government authorities confirmed the health problem existed to a lesser degree in products from 21 other companies, including Mengniu, Yili, and Yashili.

From August 2 to September 12 last year Sanlu produced 904 tonnes of melamine-tainted infant milk powder. It sold 813 tonnes of the fake or substandard products, making 47.5 million yuan ($13.25 million). In December, Xinhua reported that the Ministry of Health confirmed 290,000 victims, including 51,900 hospitalized. It further acknowledged reports of “11 suspected deaths from melamine contaminated milk powder from provinces, but officially confirmed 3 deaths.”

Sanlu Group which filed a bankruptcy petition, that was accepted by the Shijiazhuang Intermediate People’s Court last month, and the other 21 dairy companies, have proposed a 1.1 billion yuan ($160 million) compensation plan for court settlement. The court appointed receiver was granted six months to conclude the sale of Sanlu’s assets for distribution to creditors. The 22 dairy companies offered “families whose children died would receive 200,000 yuan ($29,000), while others would receive 30,000 yuan ($4,380) for serious cases of kidney stones and 2,000 yuan ($290) for less severe cases.”

Sanlu stopped production on September 12 amid huge debts estimated at 1.1 billion yuan. On December 19, the company borrowed 902 million yuan for medical and compensation payment to victims of the scandal. On January 16, Sanlu paid compensation of 200,000 yuan (29,247 U.S. dollars) to Yi Yongsheng and Jiao Hongfang, Gangu County villagers, the parents of the first baby who died.

“Children under three years old, who had drunk tainted milk and had disease symptoms could still come to local hospitals for check-ups, and would receive free treatment if diagnosed with stones in the urinary system,” said Mao Qun’an, spokesman of the Ministry of Health on Thursday, adding that “the nationwide screening for sickened children has basically come to an end.”

“As of Thursday, about 90% of families of 262,662 children who were sickened after drinking the melamine-contaminated milk products had signed compensation agreements with involved enterprises and accepted compensation,” the China Dairy Industry Association said Friday, without revealing, however, the amount of damages paid. The Association (CDIA) also created a fund for payment of the medical bills for the sickened babies until they reach the age of 18.

Chinese data shows that those parents who signed the state-backed compensation deal include the families of six children officially confirmed dead, and all but two of 891 made seriously ill, the report said. Families of 23,651 children made ill by melamine tainted milk, however, have not received the compensation offer, because of “wrong or untrue” registration details, said Xinhua.

Several Chinese parents, however, demanded higher levels of damages from the government. Zhao Lianhai announced Friday that he and three other parents were filing a petition to the Ministry of Health. The letter calls for “free medical care and follow-up services for all victims, reimbursement for treatment already paid for, and further research into the long-term health effects of melamine among other demands,” the petition duly signed by some 550 aggrieved parents and Zhao states.

“Children are the future of every family, and moreover, they are the future of this country. As consumers, we have been greatly damaged,” the petition alleged. Chinese investigators also confirmed the presence of melamine in nearly 70 milk products from more than 20 companies, quality control official Li Changjiang admitted.

In addition, a group of Chinese lawyers, led by administrator Lin Zheng, filed Tuesday a $5.2 million lawsuit with the Supreme People’s Court of the People’s Republic of China (under Chief Grand Justice Wang Shengjunin), in Beijing, on behalf of the families of 213 children’s families. The class-action product liability case against 22 dairy companies, include the largest case seeking $73,000 compensation for a dead child.

According to a statement to the Shanghai Stock Exchange Market Friday, China’s Inner Mongolia Yili Industrial Group Company, which has a domestic market share of milk powder at 8 percent, reported a net loss in 2008 because of the milk scandal. A Morgan Stanley report states the expected company’s 2008 loss at 2.3 billion yuan. The scandal also affected Yili’s domestic rivals China Mengniu Dairy Company Limited and the Bright Group. Mengniu suffered an expected net loss of 900 million yuan despite earnings in the first half of 2008, while the Bright Group posted a third quarter loss at 271 million yuan last year.

New Zealand dairy giant Fonterra, said Saturday it accepted the Chinese court’s guilty verdicts but alleged it had no knowledge of the criminal actions taken by those involved. “We accept the court’s findings but Fonterra supports the New Zealand Government’s position on the death penalty. We have been shocked and disturbed by the information that has come to hand as a result of the judicial process,” said Fonterra Chief Executive Andrew Ferrier.

“Fonterra deeply regrets the harm and pain this tragedy has caused so many Chinese families,” he added. “We certainly would never have approved of these actions. I am appalled that the four individuals deliberately released product containing melamine. These actions were never reported to the Sanlu Board and fundamentally go against the ethics and values of Fonterra,” Ferrier noted.

Fonterra, which controls more than 95 percent of New Zealand’s milk supply, is the nation’ biggest multinational business, its second-biggest foreign currency earner and accounts for more than 24 percent of the nation’s exports. Fonterra was legally responsible for informing Chinese health authorities of the tainted milk scandal in August, and by December it had written off its $200 million investment in Sanlu Group.

Amnesty International also strongly voiced its opposition to the imposition of capital punishment by the Chinese local court and raised concerns about New Zealand’s implication in the milk scandal. “The death penalty will not put right the immense suffering caused by these men. The death penalty is the ultimate, cruel and inhumane punishment and New Zealand must take a stand to prevent further abuses of human rights.” AI New Zealand chief executive Patrick Holmes said on Saturday.

“The New Zealand government does not condone the death sentence but we respect their right to take a very serious attitude to what was extremely serious offending,” said John Phillip Key, the 38th and current Prime Minister of New Zealand and leader of the National Party. He criticized Fonterra’s response Monday, saying, “Fonterra did not have control of the vertical production chain, in other words they were making the milk powder not the supply of the milk, so it was a difficult position and they did not know until quite late in the piece. Nevertheless they probably could front more for this sort of thing.”

Keith Locke, current New Zealand MP, and the opposition Green Party foreign affairs spokesman, who was first elected to parliament in 1999 called on the government and Fonterra to respond strongly against the Chinese verdict. “They show the harshness of the regime towards anyone who embarrasses it, whether they are real criminals, whistleblowers or dissenters,” he said. “Many Chinese knew the milk was being contaminated but said nothing for fear of repercussions from those in authority. Fonterra could not get any action from local officials when it first discovered the contamination. There was only movement, some time later, when the matter became public,” he noted.

Green Party explained “it is time Fonterra drops its overly cautious act.” The party, however, stressed the death penalty is not a answer to the problems which created the Chinese milk scandal. “The Green Party is totally opposed to the death penalty. We would like to see the government and, indeed, Fonterra, speaking out and urging the Chinese government to stop the death penalty,” said Green Party MP Sue Kedgley.

Saturday, May 26, 2018

On Wednesday, South African cricketer AB de Villiers announced his retirement from international cricket. The 34-year-old batsman uploaded a video message on Twitter saying it was a “tough decision” and he was “tired”.

De Villiers joined the national team, the Proteas, in 2004, featuring in a test match against England. Since then, the South African talisman has featured in 114 test matches for the Proteas, scoring 8765 runs. He has 22 test centuries to his name, the most recent one coming against Australia in March. South Africa went on to win the test series 3–0.

De Villiers’ batting average is above 50 in both test matches and One Day International (ODI) matches. De Villiers has featured in 228 ODI and 78 Twenty20 (T20) matches as well scoring 9577 and 1672 runs in ODIs and T20s respectively.

In a match against the West Indies at the Wanderers Stadium in Johannesburg on January 18, 2015, De Villiers scored 149 runs from 44 balls. In that match, De Villiers scored the fastest half-century in ODIs, reaching 50 runs from seventeen balls, as well as the fastest century in ODIs, with 100 runs from 31 balls.

Chris Nenzani, the President of Cricket South Africa, said, “AB is one of the all-time greats of South African cricket who has thrilled spectators around the world”.

De Villiers announced his retirement four days after he finished his Indian Premier League season with Royal Challengers Bangalore. In the video statement, De Villiers said, “I have no plans to play overseas, in fact, I hope I can continue to be available for the Titans in domestic cricket.”

Monday, January 15, 2007

Legendary Bollywood actor Amitabh Bachchan has confirmed that his son Abhishek and former Miss World Aishwarya Rai were engaged last evening at a private ceremony at the Bachchans’ residence in Mumbai.

It is believed that the younger Bachchan proposed to his bride-to-be in New York, soon after the Toronto premiere of his new movie Guru. The media had been following the romance between the two closely for some time past, but this is the first time they have come out in the open about their relationship. Rumours that the couple were planning to spread the know began to spread in November last year, when they visited the Sankat Mochan Temple together, with some even saying that they had already been married even earlier at the Meenakshi temple in Madurai

According to one daily, the wedding will take place either on February 19 or March 7 at the Hyatt Mumbai. “The children have decided. We are very happy and thought we should go ahead with the ‘roka’ ceremony. It was held in the evening.”, Amitabh Bachchan said of the ceremony, which was attended by the family’s close friends, including Samajwadi Party leader Amar Singh, Aishwarya’s parents, and industrialist Anil Ambani and the latter’s wife Tina Ambani. The couple have now flown to Ujjain to take a holy dip in the Ganga.

Sunday, November 9, 2008

Voters in California, Florida and Arizona voted on Tuesday to ban gay marriage, bringing about a victory for conservatives on a day which did not bring many conservative wins.

Meanwhile, voters in Colorado, South Dakota and California voted on measures which would have restricted abortion in those states. In Massachusetts and Michigan, voters passed measures that loosen marijuana laws. Finally, in the state of Washington a measure was passed that allows physician-assisted suicide.

The California ballot measure, Proposition 8, overturns the recent June ruling by the California State Supreme Court in the case In re Marriage Cases which reversed a 1977 statute passed by the California State Legislature and a 2000 ballot measure, Proposition 22, which also banned same-sex marriage by defining marriage as between a man and a woman. The wording of Proposition 8 is identical to Proposition 22. It was noted that many of the African-Americans and Latinos who cast their votes for Obama, also voted for the measure. The measure passed at 52% to 48%.

Lesbian comedian Ellen DeGeneres noted, “This morning, when it was clear that Proposition 8 had passed in California, I can’t explain the feeling I had. I was saddened beyond belief. Here we just had a giant step toward equality and then on the very next day, we took a giant step away.”

Singer Melissa Etheridge, who is also a lesbian, stated that she would no longer pay taxes due to the passing of Proposition 8, announcing in a blog post, “Okay, so I am taking that to mean I do not have to pay my state taxes because I am not a full citizen.”

Also in California, voters rejected a measure which would require parental notification for a minor to receive an abortion. The measure was rejected with the same percentage as Proposition 8, 52% to 48%. Meanwhile in Colorado, voters rejected a measure that would define life as beginning at conception. While the measure did not specifically mention abortion it would have required legislators and courts to confront legal rights for fetuses – effectively preventing abortion. The measure was defeated in a wide margin, 73% to 27%

In South Dakota, voters also defeated an anti-abortion measure which would have outlawed abortion in all cases except in the case of rape, incest or if the mother’s health was in serious question. If passed, the law would most likely have been challenged as unconstitutional.

In Michigan, voters approved a measure which legalizes medical marijuana. Meanwhile, in Massachusetts, voters approved a ballot question that decriminalizes possession of small amounts of marijuana in which the possession of an ounce or less would be punishable by a $100 fine. The measure will also require minors under the age 18 to participate in and complete a drug awareness program and do community service. Failure to do so, would net the minor a $1,000 fine.

“Tonight’s results represent a sea change. Voters have spectacularly rejected eight years of the most intense government war on marijuana since the days of ‘Reefer Madness,'” said Rob Kampia, executive director of the Marijuana Policy Project. “The people were ahead of the politicians on this issue; they recognize and want a more sensible approach to our marijuana policy,” said Whitney Taylor, the chair of Committee for Sensible Marijuana Policy, which backed the Massachusetts proposition.

Also, in Massachusetts, voters overwhelmingly, in every single Massachusetts city and town, rejected a ballot measure which would have eliminated the state income tax by 2010, the ballot measure was sponsored by the Committee for Small Government, which is headed up by two libertarians, Michael Cloud, a Libertarian Party candidate for U.S. Senate in 2002 and Carla Howell, Libertarian Party candidate for governor in the 2002 Massachusetts gubernatorial election.

The last time the income tax elimination measure was on the ballot was in 2002, where it was defeated, narrowly by 45.3%. This stunned supporters of the income tax, who mounted a fierce campaign against the measure this time warning Massachusetts residents that repealing the income tax would have drastic effects on the state’s finances, leading to cuts in services, education and local aid.

Finally, voters passed a question which bans dog racing in Massachusetts, which will lead to the closure of Massachusetts’ two greyhound racing tracks, Raynham-Taunton Greyhound Park and Wonderland Greyhound Park.

The campaign against dog racing was headed up by the Committee to Protect Dogs and endorsed by GREY2K USA and the American Society for the Prevention of Cruelty to Animals along with other animal protection organizations who claimed that dog racing was inhumane as the dogs were stuffed into cramped cages and endured injuries. The measure was opposed by the park owners including George Carney who owns the Rayham-Taunton park and Charles Sarkis, a restaurateur who owns Wonderland.

“We did it. We did it for the dogs,” said Carey Thiel, executive director of GREY2K USA. “For 75 years, greyhounds in our state have endured terrible confinement and suffered serious injuries. We’re better than that,” Thiel added.

One campaign supporter, Sandy Bigelow noted, “It means everything. We’ve worked so hard for the dogs and they heard us. It feels so good. Oh, God, it feels so good.”

George Carney said of the results, “It’s not a very pleasant thing right now. Some of these people have been here 40 years. Here’s a company that did nothing wrong, paid their federal taxes on time, paid the town on time. The town is going to be a severe loser, and a lot of people here dedicated their life to the company.”

Both sides used emotionally-charged advertisements, the anti-racing side showing “sad-eyed greyhounds,” while the pro-racing side highlighted the workers who would be out of work when the tracks close.

Both measures must now come before the Massachusetts Governor’s Council for approval.

A ballot initiative approved by voters in the north-western state of Washington will make it the second state to permit physician-assisted suicide. Initiative 1000 follows the ten-year-old example of the Death With Dignity Act of neighboring Oregon, and will allow physicians to prescribe a lethal dose of medication for a terminally ill patient to administer themselves. It was approved by a margin of 16%, and the ‘Yes’ campaign outspent the ‘No’ campaign by more than three-to-one. The law comes into effect in 2009.

Tuesday, August 8, 2006

New Delhi authorities hope a fierce looking primate will solve the problem of mischievous monkeys infilitratring the city’s subway system. The Hindustan Times reports that langurs will be used to scare away their smaller cousins. A langur-wallah (or handler) is being paid 6,900 rupees (US$ 167) a month as a retainer and “will be called in whenever there is a monkey problem” says Anuj Dayal of the Delhi Metro Rail Corporation. “There are too many monkeys” said Mr. Dayal.

In June, a monkey reportedly crawled through some pipes and into a subway car jumping around and making faces at passengers who were evacuated to another car while staff chased the creature.

Delhi is known to suffer from trouble brought on by monkeys. The animals are reported to invade homes, schools and government offices in the city. Scores of animals have moved in as the city expands into surrounding forests. In an effort to control the problem, the Delhi administration captured about 500 monkeys and took them to the outskirts of the city last year.

Saturday, January 5, 2019

A fire yesterday afternoon killed five girls, all aged fifteen, at an escape room the group was visiting to celebrate a birthday in Koszalin, North Poland. Following the fire, which also seriously injured a man, authorities are performing checks on all the nation’s escape rooms.

Escape rooms see participants locked into a space and given clues and a time limit to figure out how to free themselves. The enterprises have grown in popularity in recent years with reportedly over 1,000 in Poland which are especially patronised by teens.

President Andrzej Duda said the victims were “joyful girls starting out in life [who] have had life torn away from them” in an “appalling tragedy” while Interior Minister Joachim Brudzi?ski wrote he had ordered fire safety checks on escape rooms across Poland by the State Fire Brigade. He tweeted, “I want to express my sympathy and regrets to the families of the victims of the fire”. Duda also characterised the deaths as “crushing” and wrote “May God protect their parents and loved ones.”

Tomasz Kubiak, a fire service spokesman, told Agence France-Presse the male victim is in intensive care with “severe burns”. Police press officer Monika Kosiec stated police believe him to be aged 25. Kosiec revealed police have been unable to question him. State press agency PAP has reported being told off the record all five deaths were caused by carbon monoxide poisoning.

In addition to the inspections Brudzinski also ordered the installation of safety improvements at the facilities. Mayor of Koszalin Piotr Jedlinski has declared tomorrow a day of mourning.

Friday, October 10, 2008

Stock markets across the world have fallen sharply with several seeing the biggest drop in their history.

Asian markets saw the biggest sell-off. The Nikkei dropped 9.62% to reach a 20 year low. Japan also saw a collapse of a mid-size insurance company, Yamato Life Insurance Company, which declared bankruptcy. The Hang Seng, which was one of the few markets that was positive yesterday, fell 7.19%. Australia dropped by 8.4% and South Korea saw a 9% fall.

In Europe, markets dropped at the open with the FTSE losing 11%. They have recovered only sightly with all European markets losing more than 5%. The European sell off was more about the Asian lows then any specific news. European banks and financial institutes saw the most selling. Also, oil related companies saw large drops as an result of an expected decrease in oil consumption.

The U.S. markets opened lower with the Dow Jones Industrial Average falling below 8,000, before recovering slightly. President George W. Bush made an address on the economy and said markets were being “driven by uncertainty and fear.”

Oil has seen losses of more than US$6 in trading with the current price of a barrel of oil less than $80. This is a year low for oil. News also came out that OPEC will hold an emergency meeting on November 18 to discuss the falling price of oil.

Charities, such as Cats Protection, today said that they have lost much of their funds in collapsing banks. Cats Protection had a total of £11.2 million saved in the now-collapsed Kaupthing bank.

The British National Council for Voluntary Organisations said that 60 of its 6,500 have lost money due to the collapse of banks.

The Dow Jones Industrial Average fell to its lowest level in five years at 8,579.19, falling 679 points in one day. This, at 7.3%, is the eleventh largest percentage fall in the history of the index. The growth then continued, with the index being up over 150 points on the start of the day at one point.

The index, did however, recover, and as of 19:30 UTC was up 17.68 points, or 0.21%, pushing the index up to almost 8600.

Peter Cardillo, chief market economist at Avalon Partners, commented on these massive falls. “What we’ve seen here was one big margin call that just kept feeding on itself, so the opposite could happen. But you need a catalyst,” he said. “I’m more convinced now than ever that this market has made a bottom. The capitulation came when we breached 8,000,” he continued. “It doesn’t mean we can’t go back and revisit that level.”

The UK’s FTSE 100 index fell dramatically to close below 4000, in the index’s worst week in history. This is despite the fact that just a few days ago the index was above 5000, and the index peaked above 5500 in September.The FTSE 100 index has fallen by 41% this year.

Barclays Wealth analyst Henk Potts commented on this massive fall. “We are drowning in a sea of red numbers,” he claimed. “Investors are concerned about the exacerbation of the credit crunch and the gloomy forecasts for economic growth. The reality is that most investors have been spooked by the sheer pressure that the credit crunch is putting on the global economy.”

The Japanese Nikkei 225 has recorded it’s third biggest drop in history with a massive sell-off in the exchange that has resulted in USD 250 billion being knocked of the index’s value.

Toyota, which is the second largest carmaker in the world, fell by the largest amount in 21 years, while Elpida Memory, the world’s largest manufacturer of computer memory, dropped in value to a record low.

Masafumi Oshiden, a fund manager in Toyota commented on the drop.”It’s capitulation,” he said. “There are lots of forced sellers. If you’re a fund that’s going bust you need to close out all your positions.”

George W. Bush commented on the financial situation earlier today. “Over the past few days, we have witnessed a startling drop in the stock market — much of it driven by uncertainty and fear,” he said. “This has been a deeply unsettling period for the American people. Many of our citizens have serious concerns about their retirement accounts, their investments, and their economic well-being.”

Bush then continued by promoting the government’s plan’s to get through the crises. “Here’s what the American people need to know: that the United States government is acting; we will continue to act to resolve this crisis and restore stability to our markets. We are a prosperous nation with immense resources and a wide range of tools at our disposal. We’re using these tools aggressively.”

Gordon Brown, the UK Prime Minister, also spoke on the economy. “I think we quickly realised that we cannot solve the problems we have got as a result of the sub-prime market collapse simply by improving liquidity,” he said speaking in Birmingham to business leaders earlier today. “That would simply not be enough to deal with the bigger problem of rebuilding the banking system for the future and restoring trust is a fundamental element of that.”

Jim Flaherty, the Canadian minister for finance, also commented today on the recent incidents in the economy. “It is important to underline that Canada’s banks and other financial institutions are sound, well capitalized and less leveraged than their international peers,” he claimed. “Our mortgage system is sound. Canadian households have smaller mortgages relative both to the value of their homes and to their disposable incomes than in the U.S.”

“”However, it is becoming increasingly clear that the continuing disruption of global credit markets, which has been severe and protracted, is making it difficult for our financial institutions to raise long-term funding. This is beginning to affect the availability of mortgage loans and other types of credit in Canada,” he continued. “The Government has therefore decided to act to address the current scarcity of private sector lending to Canadian mortgage markets and lending markets overall. This is going to make loans and mortgages more available and more affordable for ordinary Canadians and businesses.”

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