US economic growth slowed to an annualised pace of 2.2% in the first quarter of the year, from 3% in the final three months of last year.

The figure was below economists’ estimates of 2.5% and is equivalent to quarter-on-quarter growth of 0.5%.

The US Commerce Department said businesses had cut back on investment, depressing gross domestic product (GDP).

However, a pick-up in the car market supported the growth figure.

Although the headline figure was weaker than had been hoped for, a key driving force in the fourth quarter had been stockpiling by US firms.

This time, demand from consumers was stronger.

Consumer spending, which accounts for about 70% of the US economy, grew by a 2.9% annual rate, the fastest pace since the fourth quarter of 2010.

Motor vehicle sales rose at 2.1% in the fourth quarter, the fastest rate in four years.

Home construction rose at its fastest pace since the second quarter of 2010, boosted by the warmer weather.

There was worse news on business spending, which fell for the first time since the fourth quarter of 2009 and government spending, particularly defence spending, fell back too.

It dropped by 2.1%, a sharp about turn from growth of 5.2% in the fourth quarter.

Read more at the BBC…

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Update: A reported seven people have been shot dead. Read more at the BBC.

A number of people have been killed and several injured in a shooting at a university in California, police say.

TV footage showed wounded people emerging from buildings at Oikos University in the city of Oakland.

Police and armed response teams have surrounded the buildings, and a suspect has been detained. A nearby hospital said it was treating four victims.

Oikos University is a private religious institution offering courses in theology, music and nursing.

US media are quoting law enforcement sources as saying five people are dead.

Meanwhile, what appeared to be four bodies were seen outside a university building covered with tarpaulin, the San Francisco Chronicle reported.

Johnna Watson, of Oakland Police, said: “We know this to be a Korean college. A gunman came in to the college and fired multiple shots.

“We do have fatalities, I cannot confirm the number of fatalities we have at this time. We additionally have victims who have suffered from gunshot wounds.”

Ms Watson added that medical services as well as police were at the scene.

The Oakland Fire Department says it was first notified of the shooting at about 10:50 local time (18:50 GMT).

Video below:

Read more at the BBC..

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A gunman has shot dead a teacher and three children at a Jewish school in the French city of Toulouse.

He opened fire on the Ozar Hatorah school in the north-east of the city, also seriously injuring a teenage boy.

The attacker fled on a scooter, in similar style to the killer of three soldiers in two separate incidents in the same part of France last week.

Police say the same .45 calibre gun was used in all three attacks. The search for the killer is now under way.

A special service in memory of the victims will be held at one of the synagogues in Toulouse at 17:00 (16:00 GMT). There will also be a silent march in Paris at 20:00.

President Nicolas Sarkozy, who flew to Toulouse, described the attack as a “national tragedy”. He has called for all schools in France to observe a minute’s silence on Tuesday and vowed to hunt down the killer. Read more at the BBC….

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US troops in Afghanistan have been placed on alert following the killings of 16 Afghan civilians by a US soldier.

US officials warned of reprisals after the soldier went on a rampage in villages near a base in Kandahar. Nine children were among those killed.

Earlier, US President Barack Obama phoned his Afghan counterpart Hamid Karzai to express condolences over the massacre.

US Defense Secretary Leon Panetta has said a full investigation is under way.

The soldier, believed to be a staff sergeant, is reported to have walked off his base at around 03:00 Sunday (22:30 GMT Saturday).

In the villages of Alkozai and Najeeban, about 500m (yds) from the base, he reportedly attacked three homes.

At one house in Najeeban, 11 people were found shot dead, and some of their bodies set alight. At least three of the child victims are reported to have been killed by a single shot to the head.

The US military said reports indicated that the soldier returned to his base after the shootings and turned himself in. Read more at the BBC….

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Finally, a Western country has taken the initiative in actually making banks pay for the colossal damage they have done. From the BBC:

French President Nicolas Sarkozy has announced plans to introduce a tax on financial transactions. The 0.1% levy will be introduced in August regardless of whether other European countries follow suit. The tax is part of a package of measures set out by the president to promote growth and create jobs…. In an interview with French television, Mr Sarkozy said he hoped the tax would push other countries to take action.

"What we want to do is create a shockwave and set an example that there is absolutely no reason why those who helped bring about the crisis shouldn't pay to restore the finances," he said.

"We hope the tax will generate one billion euros ($1.3bn, £0.8bn) of new income and and thus cut our budget deficit."

Sarkozy is a center right politician attempting to introduce what is generally viewed as a left wing tax. The truth is that the financial industry is severely undertaxed, and anyone with a realist view of economics understands this. Above all, Sarkozy is a pragmatic politician who realizes that the status quo is completely unsustainable. He is behind in the polls to the socialist party and the public is eager to enact punitive policies agains the banks.

While there are political calculations at hand, it is quite a brave move to take the lead in introducing a tax like this – if it goes through, the argument becomes much more powerful for other leaders to do something similar.

The political pressure in Britain to enact a tax like this could be too much for David Cameron to fend off and the Conservative government might be spurred into action (despite having blocked similar proposals last year). It will of course be far, far harder in America due to the Republican congress and Democrats bought off by the banking industry. But the ripple effect in Europe should not be underestimated if Sarkozy does implement his plan. It will show that governments and the public do have the power to hold the banking industry to account, possibly marking the beginning of a new and more just era. 

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That's the meme buzzing around the internet today. Alessio Rastani may turn out to be a member of the notorious 'Yes Men' – a group of anti capitalists committed to, as they say, 'Impersonating big-time criminals in order to publicly humiliate them.'

The BBC disagrees:

"We've carried out detailed investigations and can't find any evidence to suggest that the interview with Alessio Rastani was a hoax. He is an independent market trader and one of a range of voices we've had on air to talk about the recession."

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In an astonishing moment of honesty, a Wall St trader told the BBC during an interview about the EuroZone rescue pakcage that he actually 'dreams about another recession'. Stating that it was not his job to care about the economy, Alessio Rastani warned of another giant recession and declared that governments around the world were powerless to do anything about it. "Governments don't rule the world," he said. "Goldman Sachs rules the world. Goldman Sachs does not care about this big rescue package." Watch below:

I often argue with my pro market friends that I could respect their views if they were honest about their motivations. Believing that deregulated markets and raw capitalism is good for everyone is simply a religion – it is not supported by any facts, and can be disproved in a matter of seconds. I'd have a lot more time for libertarians if they were honest like Rastani. Capitalism benefits those with capital and those who understand its power and take advantage of its cyclical nature (traders/speculators etc). It is a system rigged to distribute resources unevenly. Crashes are great for the rich and great for traders – they can ride out the storm, buy up cheap assets and consolidate power. Unfortunately, crashes are awful for the majority of the population, indicating that capitalism in its current form is a terrible system to live under.

Rastani urged viewers to prepare to benefit from the crash – honest advice from a corrupt person who knows how evil up the international monetary system is. Rastani has given up the fight. We can't.

This system has got to stop.

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It appears that rebel groups in Libya have check mated the Libyan leader Muammar Gaddafi by taking key cities and advancing on the capital Tripoli. After some ferocious fighting, Gaddafi has nowhere to turn and the end is undeniably nigh. Reports the BBC:

Heavy fighting is taking place in Tripoli around the compound of embattled Libyan leader Col Muammar Gaddafi after rebels seized control of much of the city on Sunday.

Throughout the night, jubilant crowds remained in central Green Square, previously the scene of nightly pro-Gaddafi demonstrations.

Rebels met little resistance as they swept in from east, south and west.

A rebel spokesman says pro-Gaddafi forces still control 15-20% of Tripoli.

The rebels also said they had captured Col Gaddafi's son Saif al-Islam, but there is no word of the colonel's whereabouts.

Gaddafi must know he cannot survive as leader of his nation, and whether he opts to flee the country or fight it out till the end remains to be seen. Either way, Gaddafi will reap the misery he sowed upon his people, either in the form of prison, execution or exile. Regardless of what one might think of the Western attack on Libya, there can be no denying the brutality of Gaddafi, and his defeat should be cause for celebration around the world.

However, it is worth paying attention to what happens after his departure – the West has long wanted to get its hands on Libyan oil, and it will be interesting to see what type of pressure they put on a new government. While many people who supported the West's attack on Libya, they should be under no illusion as to why we felt the country was so important (hint: it wasn't Gaddafi's atrocious human rights record).

To claim that this victory vindicates our foreign policy is simplistic and wrong, and those who argue for more intervention in the Middle East should not forget the lessons of Iraq and Afghanistan. We may well have helped the Libyans overthrow a nasty dictator, but given the tyrants we usually find to control countries we have invaded, it is still worth remaining highly skeptical.

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I spoke to RT's Kristine Frazao yesterday about the London riots and gave my thoughts on the social problems facing the UK's teenage generation:

Tragically the riots have spread to other cities around the UK with violence and lawlessness rivalling that of the capital. More thoughts and analysis later today.

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If you want serious political analysis, good journalism and real debate, you cannot rely on American network news to provide it. CNN, MSNBC and Fox are all engaged in a laughable ratings war that has seen journalistic standards disappear and political commentary plunge to the level of a reality show.

Thankfully, all is not lost and foreign broadcasters have filled the deepening chasm left by the warring American mega corporations. Al Jazeera, the BBC and RT (formerly Russia Today) have been mining the American television market providing excellent journalism and thought provoking commentary.

Given my own personal political persuasion and commentary style, I have always found Alyona Minkovski's show 'The Alyona Show' on RT to be the best of the foreign news/commentary programs. Alyona provides biting analysis, real journalism and lively debate on her show that broadcasts every evening at 6pm ET. Alyona is telegenic and articulate, making it an easy show to watch for an hour, but her originality and integrity really makes it something worth tuning into. Her guests range from DC politicians to UK Hip Hop artists and the debate never conforms to the beltway point scoring sessions you see on the American news networks.

Alyona recently did an interview on CSPAN about her show, and I'd urge everyone to check it out. Mark my words, Alyona will be a big force in journalism in the coming years, and during this interview, you'll see why:

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