I would like to wish you ALL a VERY HAPPY, HEALTHY & PROSPEROUS 2009.
I would also like to take this opportunity to thank you all for your continued and loyal support.
Wednesday, 31 December 2008
I would like to wish you ALL a VERY HAPPY, HEALTHY & PROSPEROUS 2009.
I would also like to take this opportunity to thank you all for your continued and loyal support.
Monday, 29 December 2008
SUEDDEUTSCHE: 2009 droht die größte Rezession seit 1949. Die Arbeitnehmer trifft es härter als die Industrie. Am Boom haben sie kaum verdient, aber an der Krise werden sie wieder voll beteiligt.
Und aus dem Chaos sprach eine Stimme zu mir: Lächle und sei froh, es könnte schlimmer kommen. Und es kam schlimmer." Das Fundstück aus dem alten Sprüchekalender – nie war es so treffend wie heute. Das Jahr 2008 wird in die deutsche Wirtschaftsgeschichte eingehen als jenes Jahr, in dem die alten Gewissheiten ungewiss wurden. >>> Von Marc Beise | Montag, 29. Dezember 2008
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Wednesday, 24 December 2008
And the Word was made flesh, and dwelt among us, (and we beheld his glory, the glory as of the only begotten of the Father,) full of grace and truth. – The Gospel According to John, 1, 14
Et la Parole a été faite chair, et elle a habité parmi nous, pleine de grâce et de verité; et nous avons contemplé sa gloire, une gloire du Fils unique venu du Père. – Evangile selon Jean, 1, 14
Und das Wort ward Fleisch und wohnte unter uns, und wir schauten seine Herrlichkeit, eine Herrlichkeit, wie sie der eingige [Sohn] von seinem Vater hat, voll Gnade und Wahrheit. – Das Evangelium nach Johannes, 1, 14
E la Parola è stata fatta carne ed ha abitato per un tempo fra noi, plena di grazia e di verità; e noi abbiam contemplata la sua gloria, gloria come quella dell’Unigenito venuto da presso al Padre. – Evangelo secondo Giovanni, 1, 14
Et Verbum caro factum est et habitavit in nobus, et vidimus gloriam eius, gloriam quasi Unigeniti a Padre, plenum gratiae et veritatis. – Evangelium secundum Ioannem, 1, 14
Monday, 22 December 2008
BANKERS at four City firms have collected bonuses of more than £6.4billion this year, despite the worst financial crisis since 1929, it emerged yesterday.
While the rest of the country struggles under the ravages of the recession, London-based traders at Goldman Sachs, Morgan Stanley, Merrill Lynch and Dresdner Kleinwort have been notified of their bumper payouts.
They come despite the banks having reported a dramatic fall in profits and the Government bail-out of the banking sector.
Goldman Sachs has taken billions of taxpayer funds, as has Morgan Stanley.
And the huge payouts will hand further ammunition to those critics who blame the greed of bankers for the global economic crisis.
They believe such large bonuses have created a culture of short-termism and recklessness which fuelled the excesses in the run-up to the credit crunch and led to millions of jobs being lost. What Recession? £6.4bn Bonuses for City Bankers >>> By Mark Reynolds and Michael Pickard | Monday, December 22, 2008
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Saturday, 20 December 2008
SUEDDEUTSCHE: Diamanten-Branche in der Krise: Die Preise für kleine und mittelgroße Diamanten fallen. Als Wertanlage sind die Edelsteine kaum geeignet
Ein seltener Diamant kann selbst in einer Finanzkrise sämtliche Rekorde brechen. Das bewies vor wenigen Tagen eine Versteigerung im Londoner Auktionshaus Christie's.
Der legendäre "Blaue Wittelsbacher", ein 35,56-karätiger naturblauer Stein, wechselte für knapp zwanzig Millionen Euro den Besitzer. Der bei der Auktion erzielte Preis lag um das Doppelte über dem ursprünglichen Schätzwert des berühmten Diamanten, der einst zum österreichischen Kronschatz gehörte.
Geschichten wie diese nähren den Mythos, dass Diamanten nicht nur kostbarer Schmuck, sondern vor allem eine gute Kapitalanlage sein können. In schwierigen Zeiten wecken sie ganz besonders das Interesse von Anlegern. Wenn die Börsenkurse scheinbar ins Bodenlose fallen und Staatsanleihen kaum noch Rendite bringen, sind sichere Kapitalanlagen gefragter denn je.
Was viele Investoren dabei übersehen: Der Edelsteinmarkt ist derzeit alles andere als ein sicherer Hafen. Wie die Autoindustrie leidet auch die Edelsteinbranche unter einer Absatzkrise, der schlimmsten seit Jahrzehnten, wie Brancheninsider bestätigen. >>> Von Silvia Liebrich | 20. Dezember 2008
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THE TELEGRAPH: We are still recovering from his inane observations of earlier this year on the usefulness of sharia in Britain and the rabble he leads as Primate of All England could not be a clearer advertisement of his talents. But we must give him this: what he said about the immorality of the Prime Minister spending (or, more accurately, attempting to spend) this country out of a recession was absolutely right.
It is time we stopped suspending disbelief and took account of two things. First, if the current economic miseries are a global problem, why are things so much worse here than anywhere else? Why is sterling taking a more or less unique hit on the world's currency markets? The answer is simple: it is that the fundamentals of our economy are so much worse than almost everyone else's, and that is because of the mess Mr Brown has made of running it, in one capacity or another, for the last 12 years.
Then we need to suspend disbelief about how we best get out of this mess. Why, when Mr Brown created it, should he be trusted to extricate us from it? Isn't that a little like suggesting al-Qaeda rebuild the World Trade Center? Isn't it quite clear that the best thing for Britain is to have these charlatans removed from power as swiftly as possible, even if it means replacing them with the Disney characters of the Tory front bench? >>> By Simon Heffer | Friday, December 19, 2008
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Friday, 19 December 2008
THE TELEGRAPH: More than half of Britons support The Daily Telegraph's savings campaign, a new YouGov survey has disclosed.
A total of 58 per cent backed the Justice for Pensioners campaign, which is calling for a suspension of tax paid by pensioners on savings and dividends.
It comes as millions of pensioners have seen the return on their savings and share investments - which they have prudently built up for their retirement - plummet following consecutive significant cuts in interest rates.
While the Bank of England has reduced rates from 5 to 2 per cent from the beginning of October, the average rate on a one-year savings bond has been cut from 6.2 per cent to 3.8 per cent per cent during the same period, according to the personal finance researchers Moneyfacts.
Around 30 per cent of those aged 55 or over rely on the interest from savings and dividends from shares. >>> By Myra Butterworth, Personal Finance Correspondent | December 19, 2008
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THE TELEGRAPH: The pound is suffering its worst slide since Britain was forced off the gold standard in 1931.
Sterling dipped closer to parity against the euro, with the single currency now worth more than 95p for the first time ever. The pound's fall came amid fast-growing disquiet about the fate of the UK economy and consumer sentiment next year.
The pound has now fallen by 23pc against a basket of other currencies, according to figures from the Bank of England. The fall is sharper than the devaluations in 1992, after leaving the Exchange Rate Mechanism, 1976, when the International Monetary Fund was forced to intervene, and 1949, when a host of countries slumped against the dollar.
The devaluation is only matched by the moment in 1931 when, under Ramsay MacDonald, the UK was forced to abandon the gold standard, plunging by more than 24pc against the dollar. The parallel is significant, since many economists have attributed the gold standard exit as one of the main reasons the UK enjoyed a relatively mild depression in the 1930s, while the US suffered mass unemployment and saw its economy shrink by a third.
The pound had fallen more than 1½ pence against the euro yesterday and was trading at 94.15 early on Friday. Late last night it fell as low as 95p, with the pound buying €1.047.
Traders are increasingly convinced that the Bank of England will follow in the Federal Reserve's footsteps and cut interest rates all the way to zero by early next year. >>> By Edmund Conway and Angela Monaghan | December 19, 2008
TELEGRAPH BLOGS:
Germany Is Already Collapsing >>> By Ambrose Evans-Pritchard
TIMESONLINE:
Japan Cuts Rate to Just Above Zero >>> Rosie Lavan | December 19, 2008
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Thursday, 18 December 2008
THE INDEPENDENT: The credit crunch is a welcome "reality check" for a society that has become driven by unsustainable greed, the Archbishop of Canterbury said today.
Rowan Williams also hit out at Gordon Brown's plans to combat recession by boosting spending, likening them to an "addict returning to the drug".
The head of the Church of England's outspoken comments came as he delivered a scathing assessment of "moral" failings in Britain's economy.
Interviewed on BBC Radio 4's Today programme, he insisted the country had been "going in the wrong direction" for decades by relying on financial speculation to generate wealth quickly rather than "making things".
The UK had backed itself "into a corner", and must now rediscover "patience" and re-think the way it viewed material gain, he said.
Asked whether that meant the global financial crisis wracking the economy had been beneficial, Dr Williams replied: "It is a sort of a reality check, isn't it - which is always good for us.
"A reminder that what I think some people have called fairy gold is just that - that sooner or later you have to ask: 'What are we making or what are we assembling or accumulating wealth for?'." >>> By James Tapsfield, PA | December 18, 2008
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Wednesday, 17 December 2008
MAIL Online: Investment bank Goldman Sachs is to pay £4.3billion in bonuses to its City workers.
Despite the financial crisis and the spectre of soaring unemployment, staff at the bank will get an average of £142,600 each.
The international group, which is estimated to have 5,400 employees in London, is already nicknamed ' Goldmine Sacks' for the large extra payouts it awards to its star performers.
Yesterday the firm posted its first loss for almost a decade. And earlier this year it was forced to accept a £6.5billion lifeline from the U.S. government after falling prey to the economic crisis.
Now, an amount equivalent to two thirds of that aid will be paid to its workers as bonuses. Goldmine Sachs: As Jobless Toll Soars, Investment Bank's Bonuses for Staff Are Cut to a MERE £4.3bn >>> By Karl West and Nick McDermott | December 16, 2008
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Monday, 15 December 2008
THE INDEPENDENT: The Chicago Tribune Company is bankrupt – and The New York Times is deep in debt. Can there be any future for printed news in the US? Stephen Foley reports from New York
'[sic] Will old media survive the 'perfect storm'?" wondered the Chicago Tribune, the day after its parent company filed for bankruptcy. "Tribune's collapse rings alarm bells for newspapers," rang out the headline in London's Evening Standard.
For the Wall Street Journal – which denies it has become more "tabloid-y" under Rupert Murdoch's ownership – it was a moment to wallow in the "Media industry's trials and Tribune-ations."
The headlines were black. These are dark times for newspapers everywhere in the developed world, after all, as the slow ebb of circulation figures has been suddenly and shockingly compounded by a collapse in advertising revenue brought on by the recession. The spectacular bankruptcy of the Tribune group – owner of the Los Angeles Times and the Chicago Tribune, two of the top 10 best-selling papers in the US – and the humbling of Sam Zell, the billionaire property tycoon whose ego is as famously large as he is famously short – provided an irresistible hook for another traipse around these grim subjects.
And the inescapable conclusion is that more US newspaper owners will be following Zell along his arc from hubris to nemesis. The storied American families who carved up the industry between them over many generations – the McClatchys, for example, with their empire of regional titles, and the Ochs-Sulzbergers, who have controlled The New York Times since 1896 – will face unprecedented challenges in keeping hold of their debt-laden possessions.
Journalists, too, are expecting convulsions, including the demise of many local titles and savage cost-cutting at those that remain. Across the country's 1,400 titles, 15,000 jobs have been lost this year, according to Paper Cuts, a website monitoring lay-offs – more than one out of every eight. Regional newspapers' Washington and overseas bureaux are being shuttered, as the US industry's resources – still rich by international standards – become stretched. >>> | Monday, December 15, 2008
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THE INDEPENDENT: Cosmetics giant's elderly matriarch faces challenge from angry daughter over shock bequest. John Lichfield reports from Paris
An unseemly mother-daughter dispute threatens to smudge the glittering public face of L'Oréal, the world's most successful cosmetics company. The mental capacity of L'Oréal's chief shareholder, Liliane Bettencourt, 86, to manage her €23bn (£20.5bn) fortune has been challenged by her only child, Françoise.
Mme Bettencourt, one of the world's wealthiest women and a renowned philanthropist, is reported to have funded life insurance policies worth nearly €1bn which benefit a jet-set photographer, artist and author whom she has befriended. Her daughter has brought a legal action which suggests that her mother's great age makes her vulnerable to "abuse".
The complaint was first made almost a year ago but details have just emerged in the French press. An investigative website, Bakchich.info, reported that police had discreetly interviewed both Mme Bettencourt and the man who is said to have become virtually her adopted son, François-Marie Banier. L'Oréal Heiress Gives €1bn to Photographer 'Because He's Worth It' >>> Monday, December 15, 2008
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WELT ONLINE: Mit milliardenschweren Konjunkturprogrammen kämpfen westliche Regierungen gegen die Weltwirtschaftskrise. Doch die Opec droht, alle Bemühungen mit einem Federstrich zunichte zu machen. Denn für das nahöstlich dominierte Ölkartell sollen die Zeiten der Opfer – der Preiseinbußen – vorüber sein. >>> Von Birger Nicolai und Daniel Wetzel | 14. Dezember 2008
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THE INDEPENDENT: Treasury says protecting the currency is 'not a first-order issue' as Euro readies to overtake sterling in markets for the first time.
The plummeting pound will not be propped up by government intervention, ministers declared yesterday, as it emerged that they will simply hope Britain's beleaguered currency stabilises as broader measures to stimulate the economy begin to take effect.
Sterling has fallen to a series of record lows against the euro in recent days, and looks set to reach parity with the single European currency for the first time. Its fall has hit holidaymakers as well as the thousands of Britons living on the Continent, who have seen the value of pensions and savings plummet.
But ministers have made it clear no help will be forthcoming to stabilise sterling. The Europe minister, Caroline Flint, confirmed the value of the pound was not a "first-order issue" and Yvette Cooper, Chief Secretary to the Treasury, said bolstering the currency had never been the Government's aim. Pound to Be Left to Its Fate >>> By Michael Savage, Political Correspondent| December 15, 2008
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Sunday, 14 December 2008
THE SUNDAY TIMES: American Account
“DON’T project beyond the range of the known observations” is a rule followed by careful economists. In plain English this means, for example, that we know how American consumers behave when petrol prices move between $1 and $4 a gallon, “the range of the known observations”. But we haven’t much of an idea what consumers would do if prices rose to $5 — no experience, no data to inform our forecasts. Which is why we have to be very careful when predicting the effect of the various policies that are being adopted to fight the credit crisis and recession. We simply have no experience of this combination of events.
So we have reason to worry about the galaxy of stars that Barack Obama has assembled to help him right the American economy. They are so bright, so self-confident, so accustomed to being the smartest guy or girl in the room, that doubt is not one of the emotions with which they are familiar, as was true of the bright young “quants” (mathematical economists) who designed the models used to manage the risks taken on by Lehman Brothers and AIG. Something about hubris and nemesis comes to mind. >>> Irwin Stelzer | Sunday, December 14, 2008
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This essay was first published on my website on June 27, 2008. In view of the tumultuous events that have happened in the world economy since that time, I thought it was time to re-publish the essay: - Mark
The West isn’t working. This world order isn’t working, either. It’s time for a change. If the West wants to survive, then things will have to change. The way things are going on, the West will be on its knees in a short time, and in short order. At the moment, everything revolves around the Middle East, and around Middle Eastern money and oil, and around Middle Eastern influence.©Mark Alexander
The culture and ‘civilisation’ of the Middle East is diametrically-opposed to our own; but Middle Eastern petrodollars are being used to buy power and influence here in the West. Therefore, if we wish to preserve our civilisation, if we wish to preserve our way of life, we need change. The claptrap coming out of the White House, the claptrap coming out of Number 10, the claptrap coming out of the Foreign Office is not helpful to the preservation of freedom, liberty, and democracy.
The people at the top are like junkies – they are addicted to Middle Eastern money. They don’t call those people potentates for nothing! It is a sad fact of life in the twenty-first century that our leaders are far more interested in making money than they are in preserving our civilisation.
We have got to the point in which it is far more important to earn a fast buck than it is to re-affirm our commitment to the Judeo-Christian culture which has served us so well - a culture which has brought us civilisation, compassion, liberty, dignity, and justice. Islam, with its barbaric practices of beheading, amputation, lapidation, whipping, and torture doesn’t come anywhere close to Judeo-Christian civilisation. Indeed, it is light years away!
President Bush dreamed of bringing democracy to Iraq, nay, to the Middle East. He has been living in ‘cloud cuckoo land’! As has his partner: Tony Blair. Islam and democracy just don’t mix. A fool would have known this. Apparently, neither the White House nor Number 10 did!
Today, Tony Blair left office. He no longer resides at 10 Downing Street. He is no longer the prime minister of Great Britain. Mercifully! In ten years at the helm, Tony Blair has inflicted a lot of damage on Great Britain. Much of that damage is in the loss of democracy, to say nothing of the uncontrolled borders.
It would appear that the West is being driven by the petrodollars of the Middle East. The tail is wagging the dog! And while this state of affairs exists, there will be no good outcome. No good outcome at all! Inherent in capitalism is greed. Greed is no good principle on which to steer our economy, to say nothing of our civilisation. Now that is not to say that I think that capitalism is bad; it isn’t. But unbridled capitalism needs to be reined in if we wish our freedoms and liberty to proliferate.
Osama bin Laden accuses the United States of being “a paper tiger”. It would appear that there is much truth in this description of our friends’ country; especially since President Bush has run that wonderful country. Why do I say this? Because it has been impotent in stopping the growth of Islam in America, and therefore impotent in helping stop the growth of Islam in the West, because it has failed to stop the influence of Wahhabism in America, and it has failed miserably to stop the uncontrolled growth of Salafism in the States, too. Indeed, in the past ten years, Islam has grown apace in the US, in the UK, and in the West in general. The power and influence of Muslims and the Middle East is at a frighteningly high level! And all the while democracy has been weakened at home.
It is no good trying to bring democracy to another part of the world – a part of the world which can never be democratised while the prophet Muhammad is the people’s guide – and it is no good trying to change the nature of a people, either. The nature of a people depends on the philosophy which guides them. Islam guides Middle Easterners; so, as Islam and democracy are diametrically-opposed, there is little point in trying to bring democracy to that region. For democracy to flourish, the sine qua non is that there be a separation of the temporal from the sacred, a separation of politics and religion. Without that separation, there is absolutely no hope of establishing a democracy. None at all! No, democracy cannot exist without a separation of church, or mosque, and state. It is impossible! What Bush and Blair embarked on could be labelled “mission impossible”! For mission impossible it most certainly was. Here we are, several years later, and nothing, absolutely nothing, has been achieved; and nor will anything be achieved in the future, either. From nothing, comes nothing!
But what bothers me most is this: We are destroying the life we have grown to love and respect. Corruption abounds. Billions of dollars, billions of pounds, are paid to the potentates of the Middle East. Politicians in the West are reluctant to uphold the status quo for fear of upsetting their paymasters. They are also worried that they will not get the lucrative deals after they leave office that they might if they spill the beans. All quite understandable, of course; but all quite disgusting all the same.
If the West is to survive in its present form, if the West is to remain whole and free – and with the number of immigrants that have entered the West, that is a big question! – the West has to sever the umbilical cord which binds us to Middle Eastern oil, which binds us to Middle Eastern funds, which binds us to Middle Eastern influence. Sucking up to Saudis just won’t cut the mustard. We will have to break loose!
There is no other way for the survival of the West, there is no other way for the perpetuation of freedom and liberty and no other way to ensure the dignity of man. If Islam wins the day – which, as things are going at the moment, it most certainly will – then we all have dark daysto look forward to. There is no other way: This world order isn’t working. It’s ‘broke’. And when something is broken, it needs to be fixed. It’s time for a new world order. Now!
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Friday, 12 December 2008
TIMESONLINE: The American car industry faced imminent collapse last night after the Senate effectively threw out a $14 billion emergency bailout bill.
Talks between the Democrats and Republicans over the viability of a federal-funded short-term rescue of General Motors and Chrysler fell apart late in the evening after the two sides of the political divide failed to agree on pay for workers at the auto companies.
Harry Reid, the Democrat Senate Majority Leader, yesterday said that Capitol Hill had thrown in the towel until Barack Obama, the President-elect, took office on January 20.
However, General Motors and Chrysler may not be able to wait until next month without seeking bankruptcy protection - a move which is expected to trigger the collapse of the entire American car-making industry. >>> Suzy Jagger in New York | December 12, 2008
THE GUARDIAN: World Markets Slump as US Car Industry Bail-out Fails
Stockmarkets tumbled around the world after a $14bn (£10bn) bail-out package for the struggling US car industry collapsed last night.
The London market followed Asian shares into the red. The FTSE 100 index fell nearly 180 points in early trading, a drop of 4%, and later traded down 166 points at 4221. Dow Jones futures were down more than 310 points, pointing to a fall on Wall Street when it opens later today. There could be more bad news for the US economy when official figures are released this afternoon, which are expected to show a sharp fall in retail sales in November.
Republicans in the US Senate refused to support a bill to help the carmakers, endorsed by the White House and congressional Democrats. Republican demands for union wage cuts derailed a last-ditch effort to push the emergency aid through before the end of the year. The breakdown left the car industry - which employs 3 million people - in limbo. General Motors and Chrysler have warned that they will go bankrupt this month if they do not receive $14bn in taxpayer funds.
The Senate majority leader, Harry Reid, called the breakdown a "a loss for the country". "It's over with," he said. "I dread looking at Wall Street tomorrow. It's not going to be a pleasant sight."
Watch Guardian video: 'I dread looking at Wall Street': Senators from both sides are gloomy after a bail-out proposal for the big three carmakers is rejected >>> Friday, 12 December 2008
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Thursday, 11 December 2008
THE WASHINGTON TIMES: If "cash is king," then Middle East coffers are irresistibly enticing. During a recent tour of Saudi Arabia and the Gulf states, Deputy Treasury Secretary Robert Kimmitt applauded the "growing role" of Arab banks in the U.S. economy. Treasury is seeking buyers for its newly acquired bailout assets because more than $1 trillion in cash is urgently needed to rescue the largest U.S. banks.
However, cash from the Arabian Gulf comes with a vital string attached: Islamic banking, erroneously viewed as an ancient practice. In fact, Islamic banking is a newly invented institution: "Neither classical nor medieval Islamic civilization featured banks in the modern sense, let alone 'Islamic' banks," notes Timur Kuran, professor of economics and law at the University of Southern California. According to the Dinar Standard, "assets managed by Islamic banks are in excess of $700 billion - predominantly concentrated in the Middle East."
Islamic banking took off in the 1970s, but was first concocted by Muslim Brotherhood founder Hassan al-Banna in the 1920s. The stated goal was to penetrate the Western finance system, corrupting it from within in hopes of creating a parallel system to re-establish a global Islamic empire governed by Islamic law (Shariah). Islamic rules of commerce (fiqh al-muamalat) forbid interest (riba) and investing in a prohibited (hara'am) enterprise. They also mandate tithes on wealth (zakat). However, the Koran fails to precisely define these concepts. Imams and ayatollahs differ, for example, on whether riba prohibits all interest or only usurious interest.
While the overhaul of American and Western banking regulations is urgent, Islamic banking cannot be the answer because Muslim clerics - not U.S. laws and regulators - make the rules. In 1969, the Saudis created the Organization of the Islamic Conference (OIC), which is now leading the charge for global expansion of Islamic banking and has established new regulatory, accounting and auditing organizations to govern such banks. Notably, the OIC's charter is to "liberate Jerusalem and Al-Aqsa [mosque] from Zionist occupation." >>> Rachel Ehrenfeld and Samuel A Abady | December 11, 2008
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GLOBEANDMAIL: A collapse of Western financial industries has sent thousands of skilled professionals from immigrant backgrounds to their homelands - a huge shift of knowledge and skills
LONDON — Five months ago, Pankaj Dinodia was on top of the Wall Street boom: At age 25, the Indian immigrant had made it through one of the top U.S. business schools and held an important investment banking position with Goldman Sachs.
Then, in the middle of the summer, he felt the calling. The future didn't look so good in the big Western markets, he decided.
Those calls from his family in New Delhi, urging him to come back and help out with the family accounting business, sounded more sensible. So he gave up his huge bonus and got on a plane.
At the time, his move from the world's most successful investment bank to the poky New Delhi offices of S.R. Dinodia & Co., Chartered Accountants, bewildered his friends and colleagues: It was as if he had abandoned his future.
Now they're all phoning him.
People like Mr. Dinodia are pioneers in the "reverse brain drain," a huge shift of knowledge and skills out of New York and London and back into the developing world. In one of the surprising consequences of the global financial meltdown, the collapse of the Western banking and finance industries has sent thousands of highly skilled professionals from immigrant backgrounds back to their homelands, where they are taking on key roles in emerging economies.
"I have ridden the bubble to the top and got out when things started looking shaky, but a lot of my colleagues have lost their jobs ... the Lehman Brothers of the world, the Bear Stearns of the world are no longer sucking up talent from India but instead sending it back," Mr. Dinodia said from New Delhi the other day.
"So companies here can now hire bankers with the kind of experience we never could have dreamed of employing before the crunch." >>> Doug Saunders | December 11, 2008
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THE TELEGRAPH: Prime Minister Gordon Brown dismissed sharp German criticism of British policy on handling the financial crisis as being the result of "internal German politics."
Responding to remarks by German Finance Minister Peer Steinbrueck that Britain's switch from financial prudence to heavy borrowing to fund a stimulus package was "breathtaking" and "crass Keynesianism", Mr Brown insisted that Germany was also investing heavily in its economy and carrying out policies similar to London's.
"The German government is investing more, they've just announced a fiscal expansion so that they can invest in public works, and helping their banks and doing these sort of things," Mr Brown told LBC radio.
"I don't really want to get involved in what is clearly internal German politics here because they're a coalition in Germany with different political parties.
"I think the important thing is almost every country around the world is doing what we have been doing," in terms of supporting ailing banks and providing fiscal stimulus, the prime minister said.
Mr Steinbrueck's comments were highly unusual given that they were so publicly critical of an ally's policies and are likely to add to tensions between Britain and Germany on the eve of a European Union summit on tackling the crisis.
In an interview with Newsweek magazine, Mr Steinbrueck singled out Mr Brown for abandoning fiscal prudence and switching to policies that would saddle a generation with debt.
"The speed at which proposals are put together under pressure that don't even pass an economic test is breathtaking and depressing," he said in the interview, published on the magazine's website on Wednesday.
"The same people who would never touch deficit spending are now tossing around billions."
He also questioned the effectiveness of the decision to cut VAT from 17.5pc to 15pc, saying "are you really going to buy a DVD player because it now costs £39.10 instead of £39.90?". [Source: Gordon Brown Dismisses German Criticism of UK Spending]
NZZ Online: «Jetzt schmeissen sie mit Milliarden um sich» : Ärger in London über Belehrungen aus Berlin
Berlin stemmt sich gegen europäische Rettungspläne, für die dann die Deutschen zahlen sollen. Vor dem EU-Gipfel in Brüssel hat der deutsche Finanzminister Peer Steinbrück unverblümte Kritik am Konjunkturpaket der Regierung Brown geäussert – und damit in London Unmut hervorgerufen.
awy. «Das führt nur dazu, dass die britische Staatsverschuldung so weit ansteigt, dass eine ganze Generation nötig ist, um sie wieder abzuarbeiten.»
So lautet die unverblümte Kritik des deutschen Finanzministers Peer Steinbrück am Programm zur Konjunkturankurbelung, das die Regierung Brown in London angekündigt hat – eine Belehrung von Sozialdemokrat zu Sozialdemokrat, kurz vor dem EU-Konjunkturgipfel in Brüssel heute Donnerstag.
Kritik am krassen Keynesianismus
Steinbrück bezweifelte insbesondere, dass die angekündigte Senkung der britischen Mehrwertsteuer irgendeinen spürbaren Effekt haben werde: Es werde doch niemand ein DVD-Gerät kaufen, nur weil es 39.10 Pfund koste statt 39.90 Pfund.
Mit Erstaunen stellt Steinbrück in einem Interview mit dem amerikanischen Magazin «Newsweek» einen grundlegenden Wandel in der Wirtschaftspolitik fest: «Die gleichen Leute, die nie zu Staatsverschuldung bereit waren, schmeissen jetzt mit Milliarden um sich. Der Wechsel von Jahrzehnten der angebotsorientierten Politik hinüber zu einem krassen Keynesianismus ist atemberaubend.» >>> | 11. Dezember 2008
THE TELEGRAPH: German Finance Minister Spoils Gordon Brown's Bid to Save the World
Far from saving the world, as he claimed, infelicitously, in the Commons on Wednesday, Gordon Brown's approach to the financial crisis is beginning to alarm a good part of it.
The intervention of Peer Steinbrück, the German finance minister, who has attacked the British fiscal stimulus package, is an important moment for both the politics and the economics of dealing with recession.
Politically, it means Mr Brown can no longer claim that borrowing and spending more is the only way out of the crisis. He has attacked the Tories for taking a more prudent line since the pre-Budget report revealed that public borrowing will rise to more than £100bn next year.
By 2013, the Treasury will have borrowed an additional £500bn. This is deferred taxation that will have to be paid back by future generations of workers. >>> Philip Johnston | December 11, 2008
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Wednesday, 10 December 2008
THE TELEGRAPH: The pound fell to a new record low against the euro today after a stark warning that the pace of economic decline in Britain is accelerating as the country moves into a deep recession.
Sterling was the weakest it has been since the launch of the single currency in 1999, with one euro worth 87.79p compared with 71.91p just 12 months ago. The currency was under some pressure against the dollar too, hitting $1.4736 at its lowest point this morning.
For the first time in years, some currency analysts are beginning to speculate that the pound may be headed for parity - where one pound will buy you just one euro or one dollar. Others dismiss the view, expecting the euro to weaken next year as the downturn in Europe's economy worsens.
The pound is being hammered as investors quit the currency over fears that the UK will be one of the hardest hit by the global recession and - with Government debt mounting - is poorly equipped to cope. That message was reinforced this morning by the well-regarded National Institute of Economic and Social Research, which warned the UK is toppling into a deep recession in the fourth quarter and is likely to shrink by more than 1pc. >>> By Angela Monaghan | December 10, 2008
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Tuesday, 9 December 2008
leJDD.fr: La consommation mondiale de pétrole diminuera à la fois en 2008 et 2009, et ce serait la première fois depuis les années 70 qu'elle se contracterait deux années d'affilée, a annoncé mardi l'Administration américaine d'information sur l'énergie (EIA). "La consommation mondiale de pétrole devrait baisser de 50.000 barils par jour en 2008 et de 450.000 barils par jour en 2009, et ce serait la première fois en trois décennies que la consommation mondiale diminuerait durant deux années consécutives", a ainsi déclaré l'EIA, qui anticipe en outre un prix moyen du baril de brut de 51 dollars en 2009. [Source: leJDD.fr] Mardi 09 Décembre 2008
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SPIEGELONLINE INTERNATIONAL: A European economic crisis summit without German Chancellor Angela Merkel? British Prime Minister Brown, French President Sarkozy and European Commission President Barroso say there's nothing odd about Merkel not getting invited to the meeting. German politicians and media disagree.
The German government's spokesman has an answer for everything. The fact that British Prime Minister Gordon Brown and French President Nicolas Sarkozy were meeting for pre-talks about the growing economic crisis in London ahead of a European Union summit was completely normal. Chancellor Angela Merkel's spokesman has been singing the same tune for days.
Nor should it amaze anyone that European Commission President Jose Manuel Barroso was in London on Monday. After all, Barroso had been invited by Brown to a separate economic conference. It would be completely "absurd" to interpret the meeting as a deliberate exclusion of Merkel, government spokesman Ulrich Wilhelm said.
And yet, the fact that Merkel was exluded from the meeting is difficult to ignore. For days, observers have been wondering whether a rift has opened up within the EU.
Merkel herself hasn't been able to completely ignore the affront. Over the weekend, she had telephone conversations with Brown, Sarkozy and Barroso -- her spokesman said they agreed to work closely together. But the face-saving effort came too late. By then, the London summit was being interpreted in the same way in the media across Europe: EU leaders were meeting without "Madame Non", as Merkel has come to be known in the EU, in order to heave the continent out of a recession. She is widely seen as lacking the courage to take decisive action. >>> Carsten Volkery | December 12, 2008
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Monday, 8 December 2008
BBC: US shares echoed gains in stock markets worldwide on hopes that new stimulus plans in the US and other countries will revive global economic growth.
The benchmark Dow Jones index was up 261 points or 3% in morning trading in New York, shrugging off Friday's grim unemployment numbers.
In the UK, the FTSE 100 ended up 6.2%, while Germany's Dax added 7.6%, and France's Cac finished up 8.7%.
Earlier in the day, stock markets around Asia also raced ahead.
The Dow Jones added 261 points to 8,897 by late morning, while the broader S&P 500 and the technology-dominant Nasdaq also gained.
"Despite bad US jobs data [announced on Friday], markets are gaining on a sense that they've hit the bottom and expectations for economic stimulus measures being put out by many governments," said Hiroake Osakabe at Chibagin Asset Management.
Other analysts were less optimistic that the rally would be sustainable while consumers and businesses were unable to access affordable bank loans.
"There's a chance we could be higher for the day, but I'd be very cautious about jumping in with both feet," said Scott Fullman, director of derivative investment strategies with WJB Capital. >>> | December 8, 2008
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TIMESONLINE: Shares on Wall Street surged by more than 200 points today on hopes that Barack Obama, America's President-elect, will go ahead with a huge stimulus package that could ultimately exceed $1 trillion.
The Dow Jones industrial average rose 241.65 points to 8,877.07 at midday in New York, following strong gains in London where investors sent stocks soaring to close up 249.88 points or 6.17 per cent to 4,299.2. Germany's DAX ended up 8.5 per cent and France's CAC by 8 per cent.
Earlier, Hong Kong’s Hang Seng index jumped 1,198.78 points, or 8.7 per cent, to 15,044.87 - its highest close in seven weeks - while Japan’s Nikkei 225 average jumped 411.54 points, or 5.2 per cent, to 8,329.05.
At the weekend, Mr Obama gave warning that “things are going to get worse before they get better”.
However, he also announced the biggest public works construction programme since Dwight Eisenhower created the interstate highway system half a century ago.
In his weekly radio address on Saturday, Mr Obama pledged a five-tier rescue plan to create jobs by combining traditional road-building projects with massive investment in new technology and green infrastructure. >>> Catherine Boyle and Tim Reid | December 8, 2008
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AUSTRIAN TIMES: Salzburg has blocked plans to turn the original von Trapp family villa fame portrayed in Hollywood favourite "The Sound of Music" into a hotel, according to the company behind the idea.
The 1965 film is based on the true story of how trainee nun Maria wins over Baron von Trapp and his seven children through her singing and good nature, and its fame draws hundreds of thousands of tourists to Salzburg, and the villa, each year.
But Salzburg's planning council is standing in the way of the hotel project because residents are worried the city, close to Austria's idyllic Alps, will be overrun by more tourists, according to the Villa Trapp company.
"Salzburg bites the hand that feeds its tourism," the developer said in a statement on Wednesday.
"It could be thought madness that a new tourism venture is being blocked when global financial problems could result in far fewer tourists for Salzburg," it said. >>> | December 5, 2008
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THE TELEGRAPH: Deflation is on its way even sooner than we originally thought - along with all the things that entails: interest rates at or close to zero, growing disquiet about becoming trapped in economic depression, the Bank of England forced to take drastic measures to put money into peoples' pockets.
The producer prices figure released by the Office for National Statistics this morning shine the light on just how virulent the recession is becoming. The cost of manufacturers' raw materials has fallen by 3.3pc in the past month alone, and with oil and commodity prices dropping like a stone it will fall even further in the coming months. >>> Edmund Conway | December 8, 2008
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Sunday, 7 December 2008
NZZ am Sonntag: Das Fürstentum macht weitgehende Konzessionen beim Bankgeheimnis, weil seine Banken eine Verlängerung eines wichtigen Abkommens mit den USA benötigen. Die Schweiz könnte in dieselbe Lage geraten.
Am Montag will das Fürstentum Liechtenstein ein Steuerabkommen mit den USA unterzeichnen, das die bisherige Politik des Ländles auf den Kopf stellt. «Auf Anfrage werden bei Steuerdelikten – also auch Steuerhinterziehung – Informationen zur Verfügung gestellt, sofern die Anfrage auf einem begründeten Verdacht basiert», sagt Gerlinde Manz-Christ, die Regierungssprecherin des Ländles.
Damit geht das Fürstentum deutlich über die Zusammenarbeit in Steuerfragen hinaus, welche die Schweiz den USA anbietet. Das Doppelbesteuerungsabkommen USA-Schweiz sieht lediglich Hilfe in Fällen von Steuerbetrug vor, nicht aber beim weit häufigeren Tatbestand der Steuerhinterziehung. Das jetzige Abkommen sei das Resultat von über zwei Jahre dauernden Verhandlungen, sagt Manz-Christ. «Für die Umsetzung wird Liechtenstein nächstes Jahr die nötigen gesetzlichen Grundlagen schaffen.» >>> Markus Städeli | 7. Dezember 2008
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Saturday, 6 December 2008
LE FIGARO: Pour faire face à la crise économique mondiale, les présidents des pays d'Amérique centrale et le gouvernement de la République Dominicaine, sont convenus vendredi d'adopter une monnaie unique. Ni le nom de la future monnaie, ni la date à laquelle elle entrera en circulation n'ont cependant été précisés.
Cet accord pour une monnaie unique constitue un des éléments d'un «Plan de mesures urgentes» pour «amortir l'impact régional de la crise financière internationale», énoncées dans une déclaration en 41 points signée à San Pedro Sula, la deuxième ville du Honduras, qui accueillait ce 33e sommet. Ce Plan prévoit notamment «la création d'un fonds commun de crédit, économique et financier, pour le développement de la région dans le contexte des négociations Amérique centrale-Union européenne». >>> L.S (lefigaro.fr) avec AFP | Samedi 06 Décembre 2008
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NZZ Online: Der künftige amerikanische Präsident Barack Obama hat am Samstag in einer Radioansprache die grösste Investition in die Infrastruktur des Landes seit 50 Jahren angekündigt.
(sda) Obama will mit Beginn seiner Präsidentschaft Anfang 2009 Schulen und Spitäler modernisieren, die Breitband-Internet-Verkabelung ausbauen und öffentliche Gebäude energiesparend einrichten. Einschliesslich Investitionen in den Strassen- und Brückenbau sollen so 2,5 Millionen Arbeitsplätze gesichert oder neu geschaffen werden.
Dass die USA bei der Breitband-Verkabelung nur den 15.Platz belegten, sei «nicht hinnehmbar», sagte Obama. «In diesem Land, welches das Internet erfunden hat, sollte jedes Kind online gehen können.» Als Präsident werde er dafür sorgen, dass «die Wettbewerbsfähigkeit Amerikas gestärkt wird». >>> | 6. Dezember 2008
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TRIBUNE DE GENÈVE: BRAQUAGE | Quatre braqueurs armés et déguisés ont raflé pour 85 millions d’euros de bijoux chez Harry Winston à Paris. Ce hold-up record a été minutieusement préparé par des «pros» qui sont toujours en fuite. Parmi les suspects: les «Pink Panthers». Ces ex-soldats des guerres balkaniques sont bien connus en Suisse.
Devant la porte, une Rolls immatriculée à Genève et stationnée en deuxième position. A droite, le palace Plaza-Athénée, à gauche Max Mara, en face Louis Vuitton et Fendi. La célèbre joaillerie-bijouterie Harry Winston est bien entourée et figure en belle place parmi les joyaux de cette artère grand luxe de Paris, l’avenue Montaigne.
Cette artère vient de subir une sacrée hémorragie de diams! Quatre braqueurs ont attaqué la bijouterie Harry Winston et y ont emporté pour 85 millions d’euros de bijoux. Soit plus de 131 millions de nos francs.
Déguisés en femmes
C’est le casse du siècle chez celui que l’on surnomme «le prince des bijoutiers et le bijoutier des rois». Il y a un an, presque jour pour jour, cette même bijouterie avait déjà subi un hold-up dont le préjudice était estimé à 10 millions d’euros. Une récompense de 500 000 dollars avait été offerte par l’assureur pour retrouver les bijoux volés. En vain.
Jeudi après-midi, les quatre gangsters procèdent aux ultimes réglages. Trois d’entre eux enfilent robes et jupes, se maquillent afin de ressembler à de belles touristes et se mettent des perruques féminines. Le quatrième reste habillé en homme. >>> Jean-Noël Cuénod | Samedi 06 Décembre 2008
RADIO SUISSE ROMANDE: Podcast:
Paris: le casse du siècle ! >>> Vendredi 05 Décembre 2008
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THE GUARDIAN: The deepening world recession has dented prospects for many of the world's leaders trying to contain the financial fallout
The financial crisis has already changed the face of the political world. It decisively tipped the US election in Barack Obama's favour, tarnishing John McCain with the brush of Republican economic mismanagement. It brought Gordon Brown back from the political dead, making him appear statesmanlike, assured. It helped Nicolas Sarkozy turn his approval ratings round, as he too sought to offer crisis leadership and this week produced a package heavily larded with populist measures. A handful of other leaders around the world are having a "good" crisis, most notably Brazil's President Luiz Inácio Lula da Silva, another economic populist, who is basking in 70% approval ratings.
But across much of the world, it has been hard to avoid one of the intractable laws of politics - when the economy goes south, the people in charge get the blame. Canada's prime minister, Stephen Harper, is feeling the pain most acutely this week, but just about everyone running a substantial economy anywhere must now be worrying about their own job security. That goes too for those untroubled by the necessity of holding elections. Popular wrath has other ways of making itself felt. >>> Julian Borger | December 6, 2008
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THE GUARDIAN: More than £100m was secretly paid by the arms company BAE to sell warplanes to South Africa, according to allegations in a detailed police dossier seen by the Guardian yesterday.
The leaked evidence from South African police and the British Serious Fraud Office quotes a BAE agent recommending "financially incentivising" politicians.
In the arms deal, the new ANC government in South Africa agreed to spend a controversial £1.6bn buying fleets of Hawk and Gripen warplanes.
Critics said the country, beset by unemployment and HIV/Aids, could not afford it. The Hawks, rejected by the military, cost twice as much as Italian equivalents.
But the then South African defence minister Joe Modise and a key official, Chippy Shaik, insisted on the purchase.
BAE is accused in the reports of corrupt relationships with an arms tycoon, John Bredenkamp, recently blacklisted in the US for his links with Robert Mugabe of Zimbabwe. Bredenkamp's blacklisting freezes his assets in the US.
BAE's former marketing director for southern Africa, Allan McDonald, has been speaking to police, the leaked files say. He allegedly told them Bredenkamp "gave progress reports directly to Mike Turner". Turner, who has been interviewed under caution by the SFO, stepped down last year as BAE's chief executive.
Bredenkamp-linked companies were paid £40m by BAE to promote the arms deal. According to McDonald, "Bredenkamp suggested identifying the key decision-makers, with a view to 'financially incentivising them' to make the right decision". >>> David Leigh and Rob Evans | December 6, 2008
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Friday, 5 December 2008
WELT ONLINE: Die Lage auf dem US-Arbeitsmarkt spitzt sich dramatisch zu: Die Arbeitslosenrate stieg im Oktober auf 6,7 Prozent im November – und damit auf den höchsten Stand seit 15 Jahren. Arbeitgeber strichen 533.000 Jobs. Experten sind bestürzt: Mit einem derartigen Kahlschlag hatte niemand gerechnet.
Die Rezession schlägt mit voller Wucht auf den amerikanischen Arbeitsmarkt durch. Die Arbeitslosigkeit erreichte im November den höchsten Stand seit 15 Jahren. Die Unternehmen strichen mehr als eine halbe Millionen Stellen und damit so viele wie seit 34 Jahren nicht mehr. Experten sagen der weltgrößten Volkswirtschaft eine lange Rezession mit weiteren Jobverlusten voraus. Der künftige US-Präsident Barack Obama bekräftigte, es gebe keine schnellen oder einfachen Lösungen für diese Krise, die sich über viele Jahre entwickelt habe. Es sei zudem wahrscheinlich, dass sich die Lage vor einer Entspannung erst noch verschlimmern werde. >>> | 5. Dezember 2008
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BBC: German carmaker BMW has seen its global monthly sales fall by more than a quarter, as consumers tighten their belts amid the economic slowdown.
BMW brand sales fell 26.2% in November from the same month a year ago, said the firm, while sales of its UK-based Mini subsidiary declined 20.8%.
The firm has already said its Mini plant in Oxford will close on Friday for an extended Christmas shutdown.
It is closing the factory for four weeks instead of the usual two.
November sales at BMW's luxury Rolls-Royce arm were down 18.5%.
For the whole BMW group, sales fell 25.4% to 96,570 in November, compared with a much slower decrease of 8.3% to 113,005 in October. >>> | December 5, 2008
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THE LOCAL (SWEDEN): A Swedish pension fund that abides by Sharia laws has outperformed the Stockholm stock exchange since its launch in October.
The Sharia fund, a part of the Premium Pension Authority's (PPM) fund system, was conceived to give Muslims a chance to have their retirement money grow without being placed in stocks which earned money by charging interest.
As such, the fund doesn’t invest in financial stocks and has thus avoided many of the losses suffered by other investors during the recent financial crisis. >>> | December 5, 2008
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TIMESONLINE: Cost of borrowing lowest in more than 50 years
The economy is plunging deeper into recession despite emergency tax cuts and the multibillion-pound bank bailout, the Bank of England said yesterday.
Cutting the base rate to its lowest level in more than 50 years, the Bank said the outlook now was worse than a month ago, with manufacturing and consumer spending in sharp decline.
The one-point cut left the base rate at 2 per cent, its lowest since 1951, but economists are forecasting already that the cost of borrowing could fall further, with a base rate of zero per cent no longer out of the question. The Bank’s dramatic move followed a relentless stream of dire economic news over the past four weeks that has fuelled fears that Britain’s plight will be worse than the recession of the early 1990s.
The Bank, which cut rates by 1.5 percentage points in November, acknowledged the risk of a deep, prolonged recession yesterday. It conceded that more will need to be done to jump-start stalled growth, and paved the way for further rate cuts. In a bleak assessment, it said: “Business surveys have weakened further and suggest that the downturn has gathered pace. Consumer spending and business investment have stalled.” >>> Gary Duncan, Philip Webster, Gráinne Gilmore | December 5, 2008
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Thursday, 4 December 2008
TIMESONLINE: Islamic finance principles may be a thousand years old but they have attracted the attention of the West only recently. Now business schools are offering specialist masters programmes on the subject
While the world’s financial systems are shaken to their foundations, global stock markets tumble and thousands of bankers are made redundant, one area of finance goes from strength to strength.
Islamic banking and finance principles may be a thousand years old but they have attracted the attention of Western financial services companies only recently. Now business schools are offering specialist masters programmes on the subject.
Islamic banking and finance must comply with Islamic law, or Sharia. This is governed by a number of fundamental principles and prohibitions and there are many differences from conventional finance.
“There is the absolute prohibition on the charging of interest,” says John Board, director of the International Capital Market Association (ICMA) Centre, part of Henley Business School at Reading University. ICMA runs an MSc in investment banking and Islamic finance, taught jointly with the International Centre for Education in Islamic Finance in Kuala Lumpur. “This leads to the question: how do you raise money in a way that is commercially sensible but does not involve paying interest?
“And on the investment side, there is a range of prohibited activities. For example, Islamic investors may not invest in businesses that trade in alcohol or pork-related products, or are involved in certain types of entertainment.”
Other restrictions include not being able to sell something unless you own it, or to invest in companies with high levels of debt. Taking all the restrictions into account, many conventional financial products, such as deposit accounts, mortgages, credit cards, insurance, bonds and many derivatives, such as futures and options, are out of bounds to Islamic investors.
Until recently, certainly in non- Islamic countries, there was little on offer for people who wanted Sharia-compliant banking and finance. However, substantial growth in this market over the past five to ten years, partly driven by Middle Eastern countries investing oil revenues, means more institutions are beginning to offer appropriate products and services. Islamic assets under management are about £400 billion, according to the Islamic Financial Services Board, an industry body.
Today Islamic finance and banking touches everything from large capital infrastructure projects to retail banking. HSBC in the UK, for example, has Sharia-compliant bank accounts and mortgages. And the increase in Islamic finance activity means there is a need for postgraduates with knowledge in this area. “There is a big demand for Islamic finance as a professional activity,” Board says. >>> Steve Coomber | December 3, 2008
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THE TELEGRAPH: The Bank of England has cut UK interest rates from 3 per cent to 2 per cent, the lowest level since 1951 in an attempt to stop the economy sliding into a deep recession.
Rates have never been any lower since the Bank's foundation in 1694.
The aggressive move, which most economists had forecast, comes as a raft of data shows the state of the economy is worsening by the day.
Earlier today, Halifax, the country's largest lender said that house prices had fallen by 2.6 per cent in the last month alone, and have now lost more than £37,000 from their peak last summer.
Two important manufacturing and services surveys this week have shown factories and businesses are feeling the squeeze, while The Pier furniture chain became the latest retailer to collapse into administration.
Economists welcomed the move, saying it was the bare minimum required.
Hetal Mehta, Senior Economist from the Ernst & Young ITEM Club, said: "You could almost hear the sigh of relief up and down the country when the Bank of England's Monetary Policy Committee announced a 100 basis point cut in the base rate.
"As was the case last month, it was almost certain that interest rates would be slashed, but the big question was by how much. ITEM believes that the MPC was right to cut the base rate of interest to 2 per cent – anything less would have been a missed opportunity."
The move will save anyone on a £200,000 tracker-rate repayment mortgage just over £100 a month. Someone on an interest-only mortgage would save even more. >>> By Harry Wallop, Consumer Affairs Editor | December 4, 2008
THE TELEGRAPH: World Stability Hangs by a Thread as Economies Continue to Unravel
The political bubble is bursting. Spreads on geo-strategic risk are now widening as dramatically as the spreads on financial risk at the onset of the credit crunch.
Whether it is the Indian rupee, the Shanghai bourse, or Kremlin debt, the stars of the credit boom have fallen to earth. Investors are retreating into 3-month US Treasury bills – the ultimate safe-haven. The yield has fallen to 0.02pc, less than zero after costs. You pay Washington to guard your money.
The working assumption of the "Great Boom" is – or was – that we live in a benign era where most societies are converging towards some form of market liberalism; where trade and capital flows are unrestricted; where governments have enough legitimacy to keep order by light touch; where a major war is unthinkable.
This illusion is now being tested. >>> By Ambrose Evans-Pritchard | December 1, 2008
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NZZ Online: Die Grossbank Credit Suisse streicht als Folge der Finanzkrise weltweit 5300 Stellen. Der Abbau entspricht elf Prozent des Personalbestands und soll vor allem im Investment Banking vollzogen werden. Im vierten Quartal rechnet die CS mit einem Nettoverlust von rund drei Milliarden Franken. >>> | 4. Dezember 2008
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Wednesday, 3 December 2008
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Tuesday, 2 December 2008
THE TELEGRAPH: Premium bonds, one of the country's most popular savings products, have been hit by the Bank of England slashing interest rates.
New figures showed that there were just two winners for the £25,000 monthly prize, compared to 19 in November and 78 in December last year.
The total prize fund has also been slashed, although there remain two £1 million jackpot prize winners each month.
National Savings & Investments runs the scheme, and will be expected to cut the fund further if the bank rate drops as predicted on Thursday from 3 per cent to possibly as low as 2 per cent.
The sharp cuts in the bank rate in recent months has hit hard the number of winners that NS&I can name.
In cash terms, the total prize fund fell from £89 million in November to £58 million in December, with the number of prizes dropping from 1.56 million to 1.07 million in the same period. >>> By Harry Wallop | December 2, 2008
THE TELEGRAPH: Savers Make a Dash for Premium Bonds
Money is flooding into National Savings as investors seek a safe haven for their cash.
Billions of pounds is being invested in National Savings Premium Bonds as investors seek safe havens for their cash. NS&I has confirmed money has poured through their doors during July, August and September at considerably higher levels than the £4 billion typical quarterly inflow. It expects the next figures, due to be published later this month, will show a significant boost on the £86 billion it was safeguarding for investors at the end of June. It said that half of all new money is being invested in Premium Bonds.
As confidence in banks continues to be jittery, the public, it seems, is putting its trust in the unlikely prospect of a default by UK Plc. But not only are NS&I savings backed by the Government, many are tax-free, which makes them particularly appealing to higher rate taxpayers.
Their headline returns may not look exciting, but some start to sparkle when tax is added to the equation. For example, the best returns which can currently be earned in a bank or building society are around 7 per cent. This falls to 4.2 per cent for a higher rate taxpayer after tax, and to 5.6 per cent for a standard rate payer, which scarcely sets the pulse racing, with inflation soaring ahead at 4.8 per cent. >>> By Teresa Hunter | October 2, 2008
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Monday, 1 December 2008
THE TELEGRAPH: German Chancellor Angela Merkel has said Germany will not get into a "senseless" race to throw billions into economic recovery plans.
Staring down critics among her own ranks, Mrs Merkel told her party's annual conference in Stuttgart the world needed a long-term vision – including greater global economic regulation – rather than quick fixes that would burden taxpayers.
"A bidding war ... a senseless race for billions – we won't take part in that," she said.
Germany, Europe's largest economy and the world's biggest exporter, is officially in recession and Mrs Merkel has come under fierce pressure to take bolder steps to spark growth, particularly by cutting taxes.
Although Germany has committed 12 billion over two years to a national package and will contribute to the EU's 200 million package, many analysts say Mrs Merkel is sticking too rigidly to her country's culturally ingrained fiscal conservatism. >>> David Wroe Berlin | December 1, 2008
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THE GUARDIAN: PARIS (Reuters) - As the world financial industry sheds jobs by the tens of thousands, the $1 trillion Islamic banking sector has a growing load of work for sharia scholars but few candidates coming forward to do it.
Experts steeped in the Muslim scriptures are critical to Islamic finance, which requires a religious stamp of approval before a bond, mortgage contract or other financial product can be marketed as moral according to the standards of the Koran.
But qualifying for this work takes much more time and effort than other jobs in finance require. Candidates must first study Islamic law or sharia for many years, and then master finance.
"Globally, and especially in Europe and America, there is a shortage of scholars familiar with both fields," said Mufti Abdul Kadir Barkatulla, an Indian-born imam in London who sits on sharia boards for six banks including Lloyds TSB.
"A few scholars are going around the world (advising banks) and new scholars are not being trained fast enough to take their place," he said at an Islamic finance conference in Paris.
Part of the problem is linguistic. Many Middle Eastern scholars work only in Arabic, the language of Islam, but the global market needs scholars fluent both in Arabic and in languages such as English or French.
A study for Paris Europlace, an industry group trying to develop Islamic banking in France, said there were fewer than 100 scholars in the world qualified to sit on sharia boards.
Demand for Islamic banking has grown in recent years and expanded from the Middle East as more of the world's 1.3 million Muslims seek investments that comply with their faith. >>> By Tom Heneghan, Religion Editor | December 1, 2008
The Dawning of a New Dark Age (Paperback & Hardback) – Free delivery >>>
TIMESONLINE: Local banks are in trouble and property prices have crashed. Is the bubble about to burst?
Lorna Davidson and her husband Mike gave up Leicester for Dubai this summer looking for a better life. They didn’t find it. The marketing jobs they thought they had in a property firm were withdrawn the day after they arrived and they cannot find alternatives. Nor can they get a mortgage to buy a flat.
“We were told we had jobs at 25,000 dirhams (£5,000) a month and that we could get a property with a 10% deposit,” said Lorna, 24. “There are no jobs and the banks won’t lend without 40% upfront.”
It’s of little comfort to the Davidsons that they are not alone. After a few months when oil-rich Middle Eastern states seemed immune to the effects of the banking crisis and the global economic slow-down, the credit crunch has crashed on to the biscuity shores of the Gulf with the force of an economic tsunami.
With struggling local banks being bailed out, liquidity drying up, the property market transformed from a bazaar of eager buyers into a den of sellers, and the government creating a crisis committee to tackle the slump, observers are asking: is the Dubai bubble bursting?
“Confidence has collapsed,” said Mustafa Alani of the Dubai-based think tank, the Gulf Research Center. Chris Dommett of John Charcol Dubai, a mortgage advisory firm, added: “People have really begun to fear a crash.” >>> John Arlidge | November 30, 2008
The Dawning of a New Dark Age (Paperback & Hardback) – Free delivery >>>
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