Mindful Money’s news round-up: Friday 26th August 2011

26th August 2011

Story of the day:

From the New York Times, Warren E. Buffett, the legendary investor, is sinking $5 billion into Bank of America in a bold show of faith in the country's biggest, and most beleaguered, financial institution.

Buffett to Invest $5 Billion in Shaky Bank of America

Reuters is reporting on the reaction to Buffett's investment, Warren Buffett showed again that his name and money is enough to give a struggling company instant credibility in the market. But the legendary investor also demonstrated his canny command of that reputation means that such deals can immediately generate profits.

Buffett trades off his reputation, returns follow

And the best of the rest:

The Telegraph is reporting pre-Bernanke meeting, leading economists have slashed their forecasts for global growth ahead of a key meeting on Friday of the world's central bankers and policymakers.

Global growth forecasts slashed ahead of key US meeting

Hopes that the Bank of England could unleash a new round of quantitative easing to rescue the ailing economy were boosted on Thursday when a member of its monetary policy committee said there was "undoubtedly scope" to restart the recession-busting policy if necessary, from the Guardian.

Bank of England could launch fresh round of QE, claims MPC member

While in the Independent, The UK's economic recovery slowed in the second quarter of 2011 after official figures estimating GDP growth of 0.2% were unrevised today.

Recovery slows as GDP grows 0.2%

The Telegraph is discussing the UK's austerity measures. A leading Nobel economist has backed Labour's warnings that the UK is slashing spending too fast and risks tipping a fragile economy into another downward leg.

Nobel gurus warn Britain on fiscal overkill and Fed on monetary overkill

And in This is Money, Optimism among retailers had slumped to its lowest level for two years following a dismal summer blighted by the riots, said the Confederation of British Industry (CBI).

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