Stock markets in the United States have hit record high after the surprised decision of the world's most powerful central bank, the Federal Reserve, to leave its economic stimulus measures in place. The bank said it wanted to aid for more evidence of sustained economic recovery before cutting back its program of pumping 85 billion dollars a month into the markets. Here's our economics correspondent, Andrew Walker.
The Fed's intentions have been the main focus in financial markets for more than three months. There is no real doubt that it will at some stage face out the policy known as quantitative easing. But many in the market thought it would start that process now instead the US central bank decided to wait for more evidence that the economy including the employment situation is getting stronger. Although the recovery from the financial crisis has been more rapid in America than in many European countries, it's still not regarded as particularly strong.
The government of Mexico has declared a state of emergency in 77 areas of the country as heavy rain and floods brought by twins’ storms slash both the eastern and western coastlines. Around 40,000 tourists and Mexican nationals remain stranded in the coastal resort of Acapulco. Rescue efforts have been hampered as both roads linking it to the Mexico City are blocked by landslides.
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Brazil’s Supreme Court has narrowly voted in favor of reopening the country's biggest corruption trial. In a final vote to break an earlier deadlock, the Supreme Court agreed that appeals by 12 leading politicians, bankers and businessmen should be heard. They've been convicted of involvement in paying opposition politicians to support the government and parliament. A scandal that erupted in 2005 under the previous president Luiz Inacio Lula da Silva.