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Index of standard & Poor 500 finish 0 8pc higher 1,193.57, its highest end since May 3, on polling day. The Dow Jones Industrial Average ended at its highest level since April 26, 0 8pc 11,188.72 closure.

Amounting to anemic recovery of the economy, investors frustration appears hopeful that seizure of likely Republican control in the House of representatives and the huge gains in the Senate could force policies more favourable for companies who need jobs manquants.Avec Americans vote again in the extreme west of the country, the Republicans have been chalking already important victories over East.

A Chamber under Republican control of representatives would be equipped to provide a further and influence on the policies of President Obama review. Health administration, which will be hand 30 American m for the first time, health care reform has proved unpopular with companies which complained that it adds to their costs at a time when the recovery remains fragile.

Even if there is a considerable fear that a Washington divided will result in deadlock, history suggests that the US stock market performs well when a Republican Congress and a Democrat to the maison-blanche.S & P generated 15pc average annual gains.

The first real test of the new balance of power between the White House and Congress will discuss Division. tax reductions in 2001 tax cuts and George Bush's 2003 shall expire at the end of the year, and President Obama is committed to expanding their persons with an income less than $200,000.Republicans argue that reductions should be extended to the wealthiest Americans as they claim that his group is more likely to invest and create jobs.

"The elections have the opportunity to have a positive impact, said Barry Knapp, who leads a Barclays Capital stock strategy in New York." A full extension of the tax cuts would give business confidence boost.?

However, as most of the financial markets in a week described as "sensory overload", Mr. Knapp will be paying more attention to upcoming relocation of quantitative easing (QE) - Federal Reserve or printing money .Wall Street now expect the Fed Chairman Ben Bernanke release today another $500bn of EQ to reduce long-term interest rates and to stimulate investment in economy facing serious headwinds.

Whatever the size of the move, it will be more controversial than the first EQ, entered in the months after the financial system collapsed in late 2008, nearly took world investors elle.Certains economy remain skeptical that first, 1.7 trillion dollars injected into the economy helped and fear that it could fuel inflation.

"Fed Chairman Bernanke has made it clear that he would do everything what it can do so that the US economy pull a Japan" said Joseph Balestrino, fixed income strategist to Federated Investors Inc. in Pittsburgh, which manages the $336bn."" means a risk reduced double dip, plus.Nous alone are simply not convinced that however much pushing us Federal Reserve, he may change the rut of slow growth in that we're stuck."

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From 2015 Steve Webb, the pensions minister, wants to replace all this with a flat-rate pension of about ￡ 140 a week, payable to everyone once they reach state pension age.The flat-rate state pension would be paid regardless of how much basic state pension and S2P people have earned, or how much they have in savings.

A flat-rate state pension would ultimately mean an end to pensioners living in poverty, although the proposal is only aimed at future pensioners and not those already retired.The proposal would also save millions of pounds in bureaucracy, as the Government would not have to work out the individual pension credit entitlement of more than 2.7 million pensioners each year.

Supporters of the plan also argue that it would create a clear incentive for people to save for their retirement themselves, something lacking in the present system because the means-testing trap means low comperative do not receive ￡ 1 back for every ￡ 1 they save.

This effect of means testing on pensions saving behaviour will be crucial in two years when million of Britons are automatically enrolled into pensions for the first time, which is why the problem is such a pressing issue for the Government.

From 2012 every use will be required by law to enrol employees into a pension scheme through their workplace, a process called "auto-enrolment".Employees will see 4pc of earnings deducted from their pay and paid into a pension, with employers required to pay in 3pc of salary and the Government adding 1pc through tax relief.

Employers who do not set up a private pension arrangement will be required to enrol staff into the new National Employee Savings Trust (Nest), a low-load, state-sponsored pension provider. Employees who have been auto-enrolled into schemes are allowed to opt out at any time, but the Government is hoping many will not choose or bother to do so.

Auto-enrolment is designed to kick-start private pension saving in the British workforce, but the entire policy initiative has been put in jeopardy by the current disincentive for many low-paid workers to save. Experts predict that millions will simply opt out of the new pensions and spend their money if they will get pension credit anyway.

Simplifying Britain's complex pension system would solve many of the problems of our broken savings culture, but it is a mammoth task and details of how the Government proposes to do it are thin on the ground. Experts do agree, however, that the changes are likely to create losers as well as winners.

Women will be the biggest group of winners, particularly stay-at-home mothers.Broken work records through bringing up children mean the average basic state pension for women stands at just ￡ 70.26, compared with ￡ 83.74 for men.Women's average S2P Serps payment is just ￡ 15.50 a week, almost half the ￡ 28.71 paid to men.

Self-employed people receive no. state second pension at GER. Their income would increase from a maximum basic state pension of ￡ 96.75 to ￡ 140 a week. Purpose as they currently pay National Insurance contributions than lower pay employees, they could see their contributions increased to reflect the extra benefit they will receive.

Currently about 1.6 m pensioners are not receiving the pension credit they are entitled to, either because they are too proud to claim it or because they do not know how to go about it. in future, no one would receive less than the flat-rate state pension.

Under current rules, British citizens working abroad do not increased UK state pension benefits, but under the new system everyone would get the same amount, regardless of the number of years they have made NI contributions. It is unclear whether qualification for the new pension will be based on a fixed number of years' residence or on holding citizen status.

Married couples and those in civil partnerships would see their combined maximum basic state pension increase from ￡ 156.15 to ￡ 280 a week. Unions couples, whether they are married or not, who are on pension credit would see their income rise from ￡ 202.40 to ￡ 280.

Unlike under the current pension credit system, low-income pensioners with private pension, savings and income would reap the full benefit of having put money away.

People who have been contracted out of S2P and Serps for decades will have built up personal pension pot worth many tens of thousands of pounds. Experts say it is possible that they will not receive the entire ￡ 140 a week to be paid to those who remained contracted in.

Instead, the Government could reduce their state pension by a set amount for each year they were contracted out. However, it would be difficult to set that discount at IV has level that leaves that group short when the Government is removing the means-testing safety net, which means those whose funds have performed well could be better off.

The Government has indicated that no one will lose any benefits they have already accrued.But some high comperative might end up with less combined state pension than they would have had we stuck with the current system.

Currently a 42-year-old high earner could expect to withdraw is ￡ 186 a week in 2034 at the age of 66, ￡ 88.35 of which would be made up of S2P.Aim his income would be just ￡ 140 a week under the new proposal for a flat-rate state pension.Most people, however, receive considerably less S2P than that, with the average payment standing at just ￡ 28.71 a week.

As with any change, those retiring close to the date the new system is introduced may feel aggrieved that people born a few days after them will get a bigger state pension than they did.

Final salary pensions are typically contracted out of the state second pension, which means a proportion of the member's National Insurance contributions is diverted into their employ ' s scheme.Experts say a deduction to the flat-rate state pension could be made to reflect the number of years the individual had been a member of a contracted out final salary scheme.This could be broadly neutral cost, but members of final salary pension schemes could see their employee National Insurance contributions go up by 1. 6pc.Some experts have suggested that there is no point paying more into the state system if you are going to get a flat-rate pension.

They argue that people whose combined state pension is already up to ￡ 140 should contract out and divert their NI contributions into a personal pension.It is also suggested that catching up on missed NI contributions No. longer makes sense.We do not yet know what effect stopping contributions into the state scheme will have one final your state pension.

Tom McPhail, the head of research at Hargreaves Lansdown pensions, said: "We may see some people deciding that they will contract out anyway because they will look at the way governments change what pension they give you and decide they just want control."

Ian Naismith, a pension expert at Scottish Widows, said: "If you are over 50, contracting out is a bad deal under current rules.""You do not have to contract out until April 5 2011 so it is worth waiting to see what proposals the Government puts out later this year before making your decision."

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