The programme for up to 6,000 aircraft is worth an estimated $500bn – making it the biggest military procurement project in history – and some estimates put the value as high as $1 trillion.
BAe, which has teamed up with Lockheed Martin of the US as prime contractor, will get between 10 and 14 per cent of the programme. BRITAIN COULD win military aircraft work worth $100bn, safeguarding at least 20,000 defence jobs, if a consortium including British Aerospace is selected to build the Joint Strike Fighter for the US and UK armed forces. If the expansion lasts until January it will have lasted more than nine years to become the longest of the post-War era.The Federal Reserve raised its key policy rate by a quarter point to 5 per cent last month, having cut it three times last autumn in response to the global financial crisis.. There was no sign yet of higher wage costs, and the Fed had tried to allow the economy to realise its full potential.

But, he added: “It is imperative that we do not become complacent.”An acceleration in productivity gains had allowed the combination of slower inflation and rapid real growth. He has maybe left himself a little room for manoeuvre this time, but we will see them increase by October,” said Ian Shepherdson, an analyst at High Frequency Economics.In his prepared remarks, Mr Greenspan noted that 1.25 million new jobs had been created in the US in the first six months of this year. It has fallen sharply from 11,209.84 at the end of last week.The technology-dominated Nasdaq index fared worse, losing 71.4, or 2.6 per cent, to reach 2,690.37 by late morning.The dollar was also weaker against both the yen and euro, dropping to a one-month low below 117.5 against the Japanese currency.”In the past, Greenspan has used the pre-emption word as a cast-iron signal that rates were about to go up. The futures markets reckoned there was now a 50-50 chance the Fed would raise interest rates next month.The Dow Jones Industrial Average index was more than 76 points lower an hour after Mr Greenspan spoke, at 10,926.48. an unwarranted, perhaps euphoric, extension of recent developments can drive equity prices to levels that are unsupportable,” he said in the eagerly awaited twice-yearly Humphrey-Hawkins testimony to Congress.Bond prices fell immediately and sharply, the yield on the benchmark 30 year Treasury bond climbing to 5.95 per cent.

Increases in productivity had made 1999 an exceptional year for the American economy, he said, but the Fed stood ready to pre-empt inflationary pressures. The Fed chairman also repeated his view – first expressed in December 1996 – that improvements in productivity and profits have created a bubble in share prices.
“The danger is that … “Sky’s agenda is digital in the UK, not international mergers,” said one.. ALAN GREENSPAN, the chairman of the US Federal Reserve Board, signalled that a further increase in US interest rates is likely with the economy expanding at an “unsustainable” pace. “(Vivendi) is not stopping there, it could go to 30, 40 per cent, and the market is wondering what Murdoch is going to do.”Sources close to BSkyB said it was business as usual.

Concern about the determined French corporate predator’s long-term designs on BSkyB saw Mr Murdoch, whose News Corp owns a 40 per cent interest, become chairman in June.Acquiring the Pathe stake will entitle Vivendi to nominate two members to BSkyB’s board. “Vivendi is tightening its grip on Canal Plus and, by increasing its stake in BSkyB, it positions itself as having the upper hand in a possible merger between Vivendi and BSkyB,” said Andrea Azzimondi, head of media research at Paribas. Already number one in France, Canal Plus also operates the Italian market leader Telepiu and various other pay-TV operations, notably in Spain and the Netherlands.”I would like to take advantage of the 9 per cent opening in Canal Plus’s capital to reinforce Canal Plus’s international strategy and presence with a partner which does not have a strong presence in Europe and would like to grow with us in new communications businesses,” Pierre Lescure, chairman of Canal Plus.Yesterday’s move amplifies remarks made earlier this month by Jean-Marier Messier, chief executive of Vivendi, that the company doesn’t intend to be a “passive minority shareholder” in BSkyB. It boosts Vivendi’s holding in Canal Plus to 49 per cent, though the company said that level will later fall to about 40 per once an international strategic partner is found that can add value to Canal Plus.That could open the door for Rupert Murdoch to get a toehold in continental pay-TV. The Pearson and Granada stakes, held through a holding company with Pathe, have been up for sale for sometime.As well, the European pay-TV giant, whose interests span utilities and water processing, spent a further pounds 800m to buy a 15 per cent Canal Plus stake owned by Richemont, the Swiss-based luxury goods provider. The French company will pay Pearson pounds 408m for its 4 per cent indirect stake and pay Granada pounds 417m for a similar sized interest. That amounted to a 9 per cent premium, or 600p per share, against BSkyB’s closing price of 555.5p, up 5p.
Vivendi already owned a 17 per cent interest through its recent takeover of Pathe, which is due for completion in September, pending certain regulatory clearance.

VIVENDI, THE French conglomerate, dramatically reinforced its claim to be the dominant force in European pay-TV yesterday by splashing out pounds 1.6bn in cash and shares to raise its shareholding in BSkyB and France’s Canal Plus. It seemed to take ages before we heard a sullen, shallow plop. “See! We have already got water for our town!” she cried, “All we need is money.”. We have documents.”She led us to the mouth of a rusty pipe, buried by grass I dropped a coin down it. A few yards away, the men of the village stoked up a barbecue, cigarettes clamped between their lips.We asked if her dream would ever come true “It is not a dream,” she said, almost irritated “It is a concrete plan.