| Stocks Pull Off Lows on Bargain Hunting
NEW YORK (AP) — Wall Street closed mixed Tuesday, recuperating from a sharp plunge as investors snapped up bargain stocks on rumors that a bond insurer rescue plan is progressing and upbeat comments from Cisco Systems Inc. Earlier in the session, the market sank after Merrill Lynch lowered its full-year earnings prediction for Citigroup Inc., which a Dubai fund executive said will need to raise more cash to stay in business. Another damper on trading was Intel Corp., which lowered its forecast for first-quarter profit margins. But in afternoon trading, the stock market showed signs of optimism. The financial sector regained some steam after CNBC reported that a plan to save the bond insurer Ambac Financial is advancing nicely. Technology stocks rebounded too after a Dow Jones Newswires report that Cisco CEO John Chambers said he is "even more comfortable" with the long-term growth targets the company has outlined.
SNP's Local Income Tax Plans Are Unworkable, Blasts Wendy Alexander
Scottish Labour leader Wendy Alexander said of the proposals: "They are dead in the water. There are more holes than a piece of Swiss cheese." She hit out after finance secretary John Swinney confirmed the Scottish government want all workers to pay an extra 3p in income tax instead of council tax. The average council tax for a band D house - in the middle of the range - is £1090. Under the proposed system, a worker earning £25,000 would pay £586.95 in local income tax. But everyone in a household earning a wage would be liable for the new tax, instead of one bill covering the home. And the super-rich who live off unearned income from stocks and shares will not pay a penny. Swinney claimed there was "overwhelming" public support for his plans.
Fears of a commodity crash grow
Fears of a commodity crash are growing as speculation continues to outstrip demand. Ambrose Evans-Pritchard reports India faces a mountain of surplus sugar. Over 20m tonnes sit in warehouses, begging for buyers. Read more from Ambrose Evans-PritchardNews and analysis on the UK and world economy .
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