US GDP grows 2% ahead of presidential election

It’s not long to go now until people across the United States take to the polling booths to choose who will lead their country as President, and today’s results that the US economy grew by two per cent in the third quarter of this year will provide fresh ammunition to both Barack Obama and Mitt Romney. President Obama, who went and cast an early ballot in Chicago, will be hoping for a boost from these better than expected results. He spoke of the benefits of casting your vote early:
"For all of you who have not yet early voted, I just want everyone to see what an incredibly efficient process this was thanks to the outstanding folks who are at this particular polling place. Obviously people in Illinois can take advantage of this but all across the country we're seeing a lot of early voting. It means you don't have to figure out if you need to take time off work, figure out how to pick up the kids and still cast your ballot, if something happens on election day you will have already taken care of it, if it's bad weather you won't get wet, or in Chicago snowy but this was really convenient."
Mitt Romney has been gaining ground on Obama in recent weeks, and the former governor of Massachusetts is sure to say the economy is still not growing rapidly enough to create sufficient jobs to reduce the unemployment rate of 7.8 per cent.
Whilst polls show currently a dead heat between the two, Obama seems to hold narrow leads in the crucial swing states of Florida, Virginia and Ohio.

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US to Sell 25 Warplanes to Saudi Arabia in $6.7 bn-Deal

Deal covers aircraft logistics, training, and spare part

Lockheed C-130 Hercules - US Air Force photo by Tech Sgt Howard Blair.

The US is planning to sell 25 warplanes to Saudi Arabia as part of an arms deal worth nearly $6.7 bn (£4.2 bn).

The Pentagon has announced that Washington will be keen to sell 20 C-130J military transport planes and five KC-130J refuelling aircraft dubbed as Hercules.
"The proposed sale of these aircraft and support will not alter the basic military balance in the region," said the Pentagon's Defence Security Cooperation Agency (DSCA).
The Agency said the sale of the aircraft is for Saudi Arabia to "sustain its aging fleet, which faces increasing obsolescence".
The multibillion dollar arms deal includes spare parts for the aircraft, training costs, and logistics apart from the aircraft, announced the Pentagon.
According to the Agency, the sale would "contribute to the foreign policy and national security of the United States by helping to improve the security of a friendly country that has been, and continues to be, an important force for political stability and economic progress in the Middle East".

The US is also intending to strategically strengthen Saudi Arabia's ballistic-missile defences in order to counter the growing threat from Iran over the nuclear standoff.
The US Congress will have a month's time to raise any objection over the deal or else the proposal will go through as planned.
Washington has always tried to pacify its ally Israel over such arms deals with other countries saying the deals are aimed at winning more moderate allies in the region.
Saudi Arabia has been constantly increasing its defence expenses in recent years. In 2010, the Kingdom sealed a deal worth $60 bn with Washington, possibly the largest US arms deal ever.

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