U.S. markets gain Monday
NEW YORK, June 29 (UPI) -- A holiday-shortened trading week started with gains in New York Monday, following a flat week that solidified an end to a three-month rally.
The Dow Jones industrial average has climbed about 40 percent above its 12-year low in early March. But the index has fallen for two consecutive weeks.
In late morning trading, the DJIA added 84.11 points, 1.00 percent, to 8,522.50. The Standard & Poor's 500 rose 0.82 percent, 7.57 points, to 926.47. The Nasdaq composite index rose 11.41 points, 0.62 percent, to 1,849.63.
The benchmark 10-year U.S. Treasury bond rose 17/32 to yield 3.463 percent.
The euro rose to $1.4075, compared to Friday's $1.407. Against the Japanese yen, the dollar rose to 95.34 yen, compared to Friday's 95.20 yen.
In Tokyo, the Nikkei average lost 93.92 points, 0.95 percent, to 9,783.47.
Madoff given 150-year prison term
NEW YORK, June 29 (UPI) -- U.S. District Judge Denny Chin in New York sided with victims Monday, sentencing convicted Ponzi scheme operator Bernard Madoff to 150 years in prison.
The court room drama included victims detailing how Madoff's fraud took their life savings and turned their hopes for the future into ruins. Eleven victims spoke.
"He should spend his whole life in jail. He's ruined so many people's lives. He killed my spirit and shattered my dreams," victim Sharon Lissauer told the judge.
Madoff's fraud totaled an estimated $65 billion. His lawyer, Ira Lee Sorkin, had requested a 12-year sentence, which would have freed Madoff from prison at age 83, The New York Times reported.
Before the sentence was announced, Madoff faced victims in the back of the room.
"I am responsible for a great deal of suffering and pain, I understand that," he said.
"I live in a tormented state now ... I've left a legacy of shame ... to my family and my grandchildren."
Prosecutors requested the maximum sentence based on the number victims, the amount of money stolen and the extent of the fallout from his scheme.
Madoff pleaded guilty March 12 to running a scheme that including fraud, money laundering, perjury and false filing with the Securities and Exchange Commission.
Inflation: Some say, bring it on
WASHINGTON, June 29 (UPI) -- The same inflation that scares U.S. consumers may be a comfort to the U.S. government facing a fast-rising debt load, economists said.
Inflation is not a worry now. "You won't get inflation until the economy gets back, and that's at least five years out," said David Wyss, chief economist for Standard & Poor's. But once the government begins to confront its debt, currently at $11.4 trillion, inflation can help.
Five years of inflation at 6 percent, would devalue the nation's debt 27 percent, USA Today reported Monday.
"I'm advocating 6 percent inflation for at least a couple of years. It would ameliorate the debt bomb and help us work through the deleveraging process," said Harvard economic professor Kenneth Rogoff.
"If you have debt, you love inflation," said portfolio manager Axel Merk at Merk Hard Currency fund.
By example, with inflation wages rise, but interest rates on long-term mortgages remain the same, the newspaper said.
The trick is to control inflation, which is generally pegged to interest rates set by the Federal Reserve and to rising oil prices.
Inflation can also be pushed by low unemployment, when employers are compete for workers by increasing wages.
With unemployment at 9.4 percent and rising, inflation triggered by wage increases is not likely soon, economists say.
Vodafone considers buying T-Mobile UK
LONDON, June 29 (UPI) -- British telecommunications giant Vodafone is considering either a partnership or an acquisition of rival T-Mobile UK, a source close to the discussions said.
Although in a crowded market with five major players, Vodafone is the largest British phone operator with 25 percent of the market share. Although smaller, T-Mobile UK's 15 percent market share would give Vodafone a substantial jump ahead of the rest of the pack, The Times of London reported Monday.
T-Mobile's owner Deutsche Telekom is understood to be looking for an exit from the British market, The Times said.
T-Mobile UK is said to be worth between $4 billion and $5.6 billion.
