London 2012- a shattered dream?

A footbridge being built for the main stadium collapsed, injuring 27 people and highlighting the raft of problems that have so far blighted the event, meant to showcase the emerging global power.

And after world triple jump champion Philipps Idowu, Olympic 400m gold medallist Christine Ohuruogu and Commonwealth 1500m champion Lisa Dobriskey pulled out of the competition, the head of England's team has demanded guarantees for competitor security.

Idowu's withdrawal was based on security concerns while Ohuruogu, plagued by injury problems this year, suffered cramp in a training session over the weekend and decided to pull out as a precaution from the event starting in New Delhi on October 3. Dobriskey said she had run out of time after struggling with injury earlier in the season.

Preparations for next month's Commonwealth Games, intended to be the coming out party for India the way the Olympics were for China, are down to the wire and the event risks descending into farce.

The shooting of two foreign visitors by suspected militants in Delhi on Sunday has combined with a dengue fever epidemic, heavy monsoon rains, delayed construction, graft scandals and traffic chaos to give the Games that sinking feeling.

Police said the collapsed bridge was just outside the main stadium, putting India's sometimes lax construction standards again in the spotlight.

Head of the England team Craig Hunter said the team remains "committed to participating", but added: "It's hard to cancel an event of this magnitude but we are close to the wire, and teams may start to take things into their own hands. Athletes will start getting on planes soon and decisions will have to be made. We need new levels of reassurance."

Concerns over security and health forced discus world champion Dani Samuels of Australia to pull out of the Games, another blow to organisers at pains to assure participants of complete safety.

Commonwealth Games Federation president Michael Fennell said the two-week event, starting October 3, was seriously compromised by conditions at the Games village that have "shocked the majority."

But officials remained upbeat.

"I am as confident and as cool as ever about our organising. These are all minor hiccups," Urban Development Minister S. Jaipal Reddy said.

Dismal preparations have, for many, underscored the out-of-touch, slow-paced leadership of Prime Minister Manmohan Singh and his Congress government, raising questions how a graft-ridden, inefficient state can hope to compete with China.

The government's pro-poor voter image may suffer from tales of billions of wasted dollars. A perception of India's entrepreneurial prowess threatening Western jobs may slip if roofs leak and journalists wonder where the Wi-Fi is.

"Fingers crossed, India may pull off a miracle," said Boria Majumdar, a sports historian who has written the book 'Sellotape Legacy: Delhi and the Commonwealth Games'.

"But it will have to be a miracle. No doubt about that".

The Games village and security - construction delays mean venues have been locked down by police only two weeks before the Games - are the two major weakness of the Games, Majumdar said.

Some four or five accommodation towers at the Games village are still unfinished, lacking facilities such as wireless Internet, fitted toilets and plumbing. Rubble, unused masonry and discarded bricks litter the unfinished gardens.

A crude cement slope appeared to be an unplanned fix for disabled athletes requiring access to one apartment block.

The athletes' training centre was still to be fitted out.

The water in the training and recreational swimming pools was dirty, with insect larvae breeding on the surface.

"There have had some delegations staying there and they have been reporting constantly about the filth in the village," Fennell told CNN-IBN TV.

Organisers say there is no question the Games will be put off, but the nightmare is that one delegation exits and that leads to an avalanche. And the problems are not receding.

With the $6 billion Games way behind schedule, there have been worries stagnant puddles in construction sites have proved breeding grounds for mosquitoes. Hundreds of Delhi residents are hospitalised in one of the worst dengue epidemics in years.

With costs running 17 times more than original estimates, the government's anti-corruption watchdog identified 16 projects with suspect financing.

The insistence to hold the Games in October has led to some athletes pulling out due to conflicts with Olympic qualifiers.

October also means the opening ceremony may be ruined by rains.

Triple Olympic sprint champion Usain Bolt of Jamaica is the most high profile of a bunch of top athletes who have decided to skip the event.

But many venues, including the main Jawaharlal Nehru stadium have been praised as world class.

Other events like the 2004 Athens Olympics were dogged by problems but turned out fine. Beijing was hit by worries over the torch relay and Tibet protests but ended in media glory.

Some officials say foreigners do not understand how India works. Sport Minister Manohar Singh Gill said it is like an Indian wedding where chaos ends in a well-planned ceremony.

But scandals have sent shivers down the government that since the summer has effectively replaced many organisers with top civil servants, giving the Games access to more funds.

However, the Congress government was late getting involved, highlighting its slow pace in dealing with issues ranging from economic reforms to separatist violence in Kashmir.

"It's just one of so many goof-ups," said Paranjoy Guha Thakurta, a political economist. "This will not do the government any good. When you have a big bash and benefits are minimal it sharpens and widens the inequalities in India. People notice."
Reuters

Oil Deepens Losses After Fed Announcement

(RTTNews) - Oil prices slumped Tuesday, with losses accelerating after the Federal Reserve's monetary-policy announcement.

The US central bank kept interest rates unchanged at a record low, and hinted at further quantitative easing measures to support the economy. However, no concrete steps were unveiled.

November crude oil, the most active contract, dropped $1.22 to $74.97 a barrel on the New York Mercantile Exchange. The front-month October contract settled down $1.34 at $73.52 a barrel.

Earlier today, the Commerce Department said US housing starts rose 10.5% to an annual rate of 598,000 in August from 541,000 in the previous month, exceeding economists' expectations for a more modest increase to 550,000. The report also said building permits grew 1.8% to an annual rate of 569,000 in August, higher than consensus forecasts of an increase to 560,000.

Meanwhile, the dollar extended losses after the Fed announcement and fell to a six-week low versus the euro. Successful bond auctions in Ireland, Greece and Spain underpinned the European single currency.

Speculation making UK government Bonds sell like hot cakes

U.K. Government Bonds Soar on Speculation Central Bank May Ease With Fed


U.K. government bonds jumped on speculation that the Bank of England will ease monetary policy after the Federal Reserve said yesterday it is prepared to do more to support the economy.

Ten-year gilt yields fell the most in more than a year after the Fed signaled it may restart purchases of government debt with new money, a policy known as quantitative easing. Central bank policy makers voted 8-1 to keep rates on hold this month, and some officials said the probability the economy will need more stimulus has risen, minutes of the Sept. 9 meeting showed today. The economy will grow slower than previously forecast next year and the central bank won’t raise rates until the second quarter, the Confederation of British Industry said.

“The Bank of England and the Fed have been closely related in their policy response, so the market is now speculating as to whether they will do further quantitative easing,” said Mohit Kumar, a fixed-income strategist at Deutsche Bank AG in London. “That is not my central scenario.”

The yield on the 10-year gilt fell 16 basis points to 2.96 percent as of 10:23 a.m. in London, The 4.75 percent security due March 2020 rose 1.425, or 14.25 pounds per 1,000-pound face amount, to 114.705. Two-year yields slipped 8 basis points to 0.63 percent.

The Monetary Policy Committee, led by Governor Mervyn King, overruled Andrew Sentance to keep the benchmark interest rate at 0.5 percent and the bond-purchase plan at 200 billion pounds ($313 billion). Sentance pushed for an increase in the rate to 0.75 percent, reiterating that it should be raised “gradually.”

‘Further Action’

“Most members thought that the current level of bank rate and stock of asset purchases financed by the issuance of central bank reserves remained appropriate to balance the risks,” minutes of the Sept. 9 meeting released by the central bank today in London said. “For some of those members, the probability that further action would become necessary to stimulate the economy and keep inflation on track to hit the target in the medium term had increased.”

The pound rose 0.3 percent to $1.5676 and 0.4 percent to 85.25 pence per euro.

The Fed said yesterday after its policy meeting that it’s “prepared to provide additional accommodation if needed to support the economic recovery.”

U.S. 10-year Treasury yields fell 4 basis points to 2.54 percent after plunging 14 basis points yesterday. German 10-year yields were 10 basis points lower at 2.35 percent.