The Shrewd Economist

2012-01-27T22:09:00.000Z

Davos Meeting Seeks to Ease Europe Tensions
Finance chiefs at the World Economic Forum in Davos have been trying to reassure business leaders about Europe's efforts to resolve its crisis. Supported by the US, the IMF is putting more pressure on Europe to pile extra money into its rescue fund, and the US will not put more money into the IMF until EU leaders strengthen their bail out fund. There are also signs that Greece is nearing a key deal with private bondholders to reduce its debt. Al Jazeera's Andrew Simmons reports from Davos.

2012-01-27T21:53:00.002Z

Best of WEF vom 27.01.2012
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2012-01-27T20:46:00.000Z

Fitch Downgrades Five Eurozone Economies
BBC: Fitch ratings agency has downgraded five eurozone economies, including Italy and Spain, citing financial weakness during the debt crisis.

Italy was downgraded two notches to A- from A+, while Spain was also lowered two levels to A from AA-.

Belgium, Slovenia and Cyprus were also downgraded, while Fitch cut its outlook for the Republic of Ireland.

Earlier this month, Standard & Poor's agency downgraded nine eurozone eoconomies, including France. » | Friday, January 27, 2012

2012-01-27T17:42:00.000Z

François Hollande Vows to Tax the Rich to Pay Off French Deficit
THE GUARDIAN: Leftwing frontrunner in presidential race launches manifesto on how Socialist party would deal with financial crisis

François Hollande, the leftwing frontrunner in the French presidential race, has vowed to make the rich pay the highest price to help drag France out of its economic crisis, while promising to pump more money into schools and state-assisted jobs.

The Socialist rural MP, who recently declared "my real adversary in this campaign is the world of finance", launched his manifesto on Thursday, a road map of how the left would deal with the financial crisis. Hollande said he would raise taxes for banks and big companies as well as France's richest people, and use the money to help wipe out the nation's crippling public deficit.

By scrapping some €29bn (£24bn) worth of tax breaks for wealthier people introduced under Nicolas Sarkozy, he said he could find €20bn to deal with the corrosion of French society: record unemployment, soaring youth jobless figures and an education system that has been shamed as one of the most unequal in Europe, where one in six children leave with no qualifications. » | Angelique Chrisafis | Thursday, January 26, 2012

2012-01-27T16:28:00.001Z

Bill Gates: 'I Wrote Steve Jobs a Letter as He Was Dying. He Kept It by His Bed’
THE DAILY TELEGRAPH: People’s plutocrat Bill Gates talks about friendly rivalry, and how to get bankers to part with their money.

Bill Gates has frugal tastes. Asked to name his luxuries, he lists DVDs, books and takeaway burgers. It is hard, however, to think that any fast-food outlet would get rich on Gates’s custom. During a long list of engagements beginning well before dawn, he consumes nothing but cans of diet cola.

For America’s wealthiest citizen, austerity is relative. The retinue of staff and the private jet hint at a fortune said to be approaching £40 billion. As he told pupils at a south London school he visited this week: “If I hadn’t given my money away, I’d have had more than anyone else on the planet. Ninety-nine per cent of it will go.”

In an era when the wealthiest are society’s pariahs, the Microsoft founder has become the people’s plutocrat. Although some diseases, such as malaria, remain rife, his charitable foundation and his lobbying have borne results. In the past year, not a single citizen in India contracted polio.

“People think aid is abstract and thousands of miles away. I go there and see it. I’m intent on making sure that my money gets to people who need it, and I come back and say it’s working.” This message has been heeded by “Cameron and George,” who have promised to hit the recognised goal of spending 0.7 per cent of GDP on aid.

Is he not disappointed that Mr Osborne will effectively be cutting the budget by more than £1.1 billion over three years, because the economy is shrinking? “I have nothing but praise for the UK. [The drop] is certainly unfortunate, but I can hardly complain about it. 0.7 per cent is the gold standard, and most countries aren’t living up to that.” Read on and comment » | Mary Riddell | Friday, January 27, 2012

My comment:

Bill Gates must be one of the most unselfish men on the planet! He's got a golden heart. Wouldn't it be wonderful if just some of the mega-rich followed in his footsteps? What a wonderful world it would be if more people thought like him! – © Mark

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2012-01-26T20:47:00.002Z

US Election 2012: Sending Home the Illegal Immigrants
As the Republican presidential candidate race heats up, the telegraph travels to the border state of Texas to see how policy discussed in Washington affects lives on the ground.

THE DAILY TELEGRAPH: Newt Gingrich would like to see an amnesty, Ron Paul thinks government, not business should take responsibility for the problem and Mitt Romney would veto any path to citizenship, but on the ground in Texas the problem of illegal immigration defies a soundbite solution.

In a border state where the economy is buoyed by the work of illegal immigrants, the idea of shipping them all home isn’t quite as simple as it seems. » | Alastair Good, Texas | Monday, January 23, 2012

2012-01-26T20:35:00.000Z

State of the Union 2012: Is Barack Obama Right that the US Auto Industry Has Recovered?
As Barack Obama celebrates the rebirth of the US auto industry during his State of the Union address, the Telegraph travels to Detroit, the home of American car manufacturing, to investigate the reality on the ground.

Read article and comment here | Alastair Good, Detroit, Michigan | Wednesday, January 25, 2012

2012-01-26T18:11:00.002Z

Davos: David Cameron Says Eurozone Problems 'Man-made'
The prime minister addresses the annual World Economic Forum in Davos, saying three things need to be done urgently in 2012: 'Greece, banks and firewall'. David Cameron told eurozone leaders that with 'bold action and real political will', the problems facing the eurozone could be fixed

2012-01-26T01:38:00.000Z

US Federal Reserve to Keep Interest Rates Near Zero until 2014

THE GUARDIAN: Federal Reserve Bank's pessimism indicates the economy may not fully recover from the recession for another two years

The US Federal Reserve expects to keep short-term interest rates close to zero "at least through late 2014" – longer than previously indicated – chairman Ben Bernanke said as he expressed concerns about the pace of the recovery.

The decision means the Fed fears the economy will not fully recover from the recession that started in 2008 for at least another two years. "I don't think we're ready to declare that we've entered a new, stronger phase at this point. We'll continue to look at the data," Bernanke said at a press conference.

The Fed's pessimism contrasts with Barack Obama's positive message about the economy in his state of the union speech on Tuesday night, and underlines the scale of the challenge he faces to convince American voters to give him a second term.

"While indicators point to some further improvement in overall labour market conditions, the unemployment rate remains elevated," the Fed said in a statement released after a two-day meeting. "Household spending has continued to advance, but growth in business fixed investment has slowed, and the housing sector remains depressed."

For the first time the Fed released a quarterly economic forecast, detailing committee members' thoughts about how long they believe the Fed should retain its three-year-old policy of holding short-term interest rates near zero. » | Dominic Rushe | Wednesday, January 25, 2012

THE GUARDIAN: Tim Geithner: Obama will not select me to run Treasury again: Treasury secretary predicts president will be re-elected in November – but doubts he'll be offered the Treasury job again » | Dominic Rushe | Wednesday, January 25, 2012

2012-01-26T00:21:00.000Z

Paul Krugman: Is Our Economy Healing?
THE SALT LAKE TRIBUNE: How goes the state of the union? Well, the state of the economy remains terrible. Three years after President Barack Obama’s inauguration and two and a half years since the official end of the recession, unemployment remains painfully high.

But there are reasons to think that we’re finally on the (slow) road to better times. And we wouldn’t be on that road if Obama had given in to Republican demands that he slash spending, or the Federal Reserve had given in to Republican demands that it tighten money.

Why am I letting a bit of optimism break through the clouds? Recent economic data have been a bit better, but we’ve already had several false dawns on that front. More important, there’s evidence that the two great problems at the root of our slump — the housing bust and excessive private debt — are finally easing.

On housing: As everyone now knows (but oh, the abuse heaped on anyone pointing it out while it was happening!), we had a monstrous housing bubble between 2000 and 2006. Home prices soared, and there was clearly a lot of overbuilding. When the bubble burst, construction — which had been the economy’s main driver during the alleged “Bush boom” — plunged.

But the bubble began deflating almost six years ago; house prices are back to 2003 levels. And after a protracted slump in housing starts, America now looks seriously underprovided with houses, at least by historical standards.

So why aren’t people going out and buying? Because the depressed state of the economy leaves many people who would normally be buying homes either unable to afford them or too worried about job prospects to take the risk.

But the economy is depressed, in large part, because of the housing bust, which immediately suggests the possibility of a virtuous circle: an improving economy leads to a surge in home purchases, which leads to more construction, which strengthens the economy further, and so on. And if you squint hard at recent data, it looks as if something like that may be starting: Home sales are up, unemployment claims are down, and builders’ confidence is rising. » | Paul Krugman | The New York Times | Tuesday, January 24, 2012

2012-01-25T22:45:00.002Z

Gespräch: Timothy Garton Ash
Kaum einer analysiert die Euro-Schuldenkrise schärfer als der an der Uni Oxford lehrende Star-Historiker Timothy Garton Ash. Garton Ash sieht die Lösung der aktuellen Schulden-Krise in einem grossen Schritt zu "mehr Europa". Zu halbherzig, zu zögerlich sind ihm die bisherigen Rettungsversuche. „Uns geht es noch zu gut“, meint Garton Ash. Das Stuhl-Gespräch vom WEF aus Davos.
Rundschau vom 25.01.2012

2012-01-25T22:44:00.002Z

Angela Merkels Eröffnungsrede am WEF
Die deutsche Bundeskanzlerin Angela Merkel eröffnet das diesjährige WEF. Das grosse Thema in ihrer Rede - die Schuldenkrise in Europa. Die ultimative Lösung brachte sie zwar nicht, aber Merkel zeigte sich optimistisch. Und rief Europa einmal mehr auf, enger zusammenzurücken.
Rundschau vom 25.01.2012

2012-01-25T22:43:00.000Z

Verdächtiger Satus-Symbol
Europa steckt in der Misere, Sparen ist angesagt. Gut, gibt es China. Die Chinesen haben noch Geld und stehen zunehmend auf Luxus. Zum Beispiel auf sündhaft teure Uhren aus der Schweiz. Erstaunlich dabei: nicht nur chinesische Spitzenverdiener schmücken sich mit einer Rolex, sondern auch einfache Beamte. Viele Funktionäre in China tragen eine kostbare Schweizer Uhr. Wie kommt das?
Rundschau vom 25.01.2012

2012-01-25T20:52:00.002Z

Turkey Booming as EU Continues to Languish
As Europe continues to grapple with its economic crisis, Turkey appears to be slowing its move toward EU membership. The economy is booming, and as it strengthens relationships in the Middle East, the country is debating whether its future lies more in the east than the west. Al Jazeera's Hashem Ahelbarra reports from Ankara.

2012-01-25T20:44:00.002Z

Brazil's Millionaires Increasing in Numbers
Brazil's booming economy has helped bring millions of more citizens into the country's middle class population in the last decade.

According to a new report, the upper class is also rapidly expanding with 19 new millionaires a day in the world's fifith largest economy.

Gabriel Elizondo reports from Sao Paulo, Brazil.

2012-01-25T17:06:00.002Z

Apple Makes $13bn Profit in Three Months
THE GUARDIAN: First quarter since death of Steve Jobs sees record revenue with 37m iPhones sold

Apple reported record revenue in its first quarter since the death of Steve Jobs, as iPhone sales continued to soar.

For the three months to December 31, Apple reported net income of $13.06bn compared to net income of $6bn for the same period the previous year. » | Dominic Rushe in New York | Tuesday, January 24, 2012

THE DAILY TELEGRAPH: Apple is world's most valuable company after iPhone frenzy drives record profits: Apple has regained its position as the world's most valuable company after reporting record quarterly results that smashed market expectations. » | Harry Wilson | Wednesday, January 25, 2012

2012-01-25T16:29:00.000Z

Davos Elite: Capitalism Has Widened Income Gap

SEATTLE POST INTELIGENCER: DAVOS, Switzerland (AP) — A four-year economic crisis has left societies battered and widened the gap between the haves and have-nots, financial leaders conceded Wednesday — with one suggesting that Western-style capitalism itself may be endangered.

As Europe struggles with its debt crisis and the global economic outlook remains gloomy at best, there's a sense at the heavily guarded World Economic Forum that free markets are on trial.

Many at the elite economic gathering in the Swiss Alps accept that more must be done to convince critics that Western capitalism has a future and that it can learn from its massive failures.

For David Rubenstein, the co-founder and managing director of asset management firm Carlyle Group, leaders must work fast to overcome the current crisis or else different models of capitalism, such as the form practiced in China, may win the day.

"As a result of this recession, that's lasted longer than anyone predicted and will probably go on for a number more years ... we're going to have a lot of economic disparities," Rubenstein said. "We've got to work through these problems. If we don't do in three or four years ... the game will be over for the type of capitalism that many of us have lived through and thought was the best type." » | Pan Pylas, AP Business Writer | Wednesday, January 25, 2012

2012-01-25T16:11:00.002Z

WEF 2012: Interview mi Martin Wolf
Der Chef-Kommentator der «Financial Times» glaubt, dass die Euro-Zone in eine Rezession abrutschen wird und sich deshalb die Weltwirtschaft abkühlen wird. Er ist überzeugt, dass die Euro-Zone nur überleben kann, wenn Anpassungen vorgenommen werden.
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2012-01-25T05:10:00.002Z

'There Will Be Riots on Streets of America': George Soros Predicts Class War in U.S. as Euro Triggers Collapse of Global Economy

MAIL ONLINE: Billionaire New York investor warns of impending economic meltdown / Backs euro and buys Italian bonds from Jon Corzine's failed MF Global / Warns it's 'difficult to know right decisions to make' after boom years / Supports Occupy Wall Street, Democrats and Obama re-election efforts

Billionaire investor George Soros has warned the global economic system could collapse and riots on the streets of America are on the way.

The 81-year-old said he’d rather survive than stay rich as the world faces an ‘evil’ period and Europe fights a ‘descent into chaos and conflict’.

He has backed the euro, bought $2billion in European bonds and insisted the economic climate is similar to the 1930s Great Depression.

‘The euro must survive because the alternative - a breakup - would cause a meltdown that Europe, the world, can’t afford,’ he told Newsweek.

‘The situation is about as serious and difficult as I’ve experienced in my career. We are facing now a general retrenchment in the developed world.’

His warnings came as U.S. stocks dipped on Tuesday, with talks to resolve Greece's debt crisis faltering and threatening a five-day winning streak. » | Mark Duell | Tuesday, January 24, 2012

2012-01-24T23:57:00.000Z

Sir Mervyn King Warns Elite to Rein In Pay
THE DAILY TELEGRAPH: The Governor of the Bank of England has warned Britain's business and banking elite to rein in pay and bonuses or risk sparking a rebellion against capitalism in its current form.

In a speech to business figures in Brighton setting out the "arduous, long and uneven" path to recovery this year, Sir Mervyn King said the key to restoring growth would be "above all else ... to maintain support for a market economy and an open world trading system".

His fears reflect the recent backlash against capitalism, with the Occupy movement spreading from Wall Street to St Paul's and, this week, Davos – the Swiss ski resort where the world's rich and powerful are meeting.

Coming in the week that the Coalition laid out proposals to rein in excessive executive pay, Sir Mervyn said: "The legitimacy of a market economy will inevitably be challenged if rewards go disproportionately to a small elite, especially one which benefited from the support of taxpayers.

"Those taking decisions on remuneration, in the financial sector and elsewhere, need to understand that a market economy rests not just on incentives, but on the acceptance that the distribution of rewards is fair."

He said the growing sense of injustice was because "those who have suffered most have been those who bear no responsibility for [the financial crisis], and who accepted the disciplines of a market economy only to find that others were excused that discipline because they were 'too important to fail'". » | Philip Aldrick, Economics Editor | Tuesday, January 24, 2012

My comment:

Mervyn King is absolutely right to warn the élite about excesses. Capitalism is a flawed system, but it is the best economic system known to man. The élite need to be very careful that they don't 'cook their goose' through their greed. Socialism may have been defeated for a while, but it will surely be waiting in the wings to re-appear when the time is right. We would be ill-advised to assume that it is dead forever. Everything in life goes in cycles. I say this: Don't give the socialists a chance to bring the best system down. Moderation is key. – © Mark

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2012-01-24T20:21:00.003Z

Inside a Chinese Communist Party School
Marxist thought combined with market economy principles in the ruling party's lecture halls.

2012-01-24T15:52:00.000Z

UK Debt Passes £1 Trillion for the First Time
The UK Treasury has blamed "unsustainable" levels of spending by the last Labour government for public debt rising above £1 trillion for the first time.

Read the article and comment here | Szu Ping Chan | Tuesday, January 24, 2012

2012-01-23T23:58:00.002Z

Executive Pay to Be Linked to Rank-and-File Salaries
Chief executives’ pay awards should be set partly according to how much they pay their rank-and-file staff under new government rules proposed yesterday.

Read article and comment here | James Kirkup | Monday, January 23, 2012

2012-01-23T23:22:00.003Z

David Cameron: 'Don’t Complain about Welfare Cuts, Go and Find Work'
THE DAILY TELEGRAPH: People living in benefit-dependent households have been urged by the Prime Minister to “go out and work” rather than complain about the loss of welfare payments.

David Cameron said that living on welfare had become an “acceptable alternative” to working and suggested that benefit payments were too easy to receive.

He spoke as the Government faced serious opposition to the plan to cap the maximum benefit payments that can be received by any household at £26,000. The House of Lords is seeking to block the policy.

The cap has been set at the same level as the average family’s earnings and ministers insist that it is unfair that taxpayers must subsidise those receiving more from the state than typical employees earn.

The Government was defeated in the House of Lords after bishops tabled an amendment to the Welfare Bill proposing that child benefit is excluded from the cap.

The amendment, which was backed by dozens of Liberal Democrat peers, threatens to wreck the entire concept of the cap.

Senior Conservatives have said they are determined to force through the legislation by overturning the Lords amendment, a move which is said to have widespread public backing.

Speaking before the Lords debate, the Prime Minister sought to echo Norman Tebbit, the former Conservative minister, who told unemployed people to “get on your bike” in 1981. » | Robert Winnett, and James Kirkup | Monday, January 23, 2012

My comment:

The welfare state was conceived as a safety net for those in need when times were tough. As such, the idea was fine. Unfortunately, the original concept of welfare has been abandoned. Welfare is now all-embracing, not just for the people who are out of work or disabled, but for all who seek to scrounge off the State. It should never have been allowed to grow into this monster in the first place. The politicians can only blame themselves for this.

Something will have to be done about the monster they have created. Taxpayers cannot be expected to foot the ever-increasing bill for those who prefer to scrounge than pull themselves up by the bootstraps.

Whether now is the right time to tell people to look for work rather than receive benefits is, however, questionable. Where are all these people going to find employment? Doesn't Cameron realize that his own government’s austerity drive is leading to a shortage of work opportunities?

Mr. Cameron seems to be living in an ivory tower, a gilded cage if you will. Is he so cut off from the reality of life that he is blissfully unaware of the plight of the many?

The welfare state needs to be cutback to the bare bones. But to achieve this, there has to be a long-term strategy. Tinkering at the margins will achieve little in the long-run. Some serious thought needs to be given to the starting point of cut-backs. It cannot be right to punish those in real need. The scroungers need to be targetted first. As do all those benefit-tourists coming from abroad to milk the system. They have contributed nothing towards the system, so really should not be entitled to anything. That how it works for a Brit; so why should it be any different for someone from abroad?

It should also be said that cutting back on the welfare state must be a two-pronged strategy: It has to be accompanied by some form of job creation? For without jo bs being offered in the system, Cameron's talk is tantamount to whistling Dixie. – © Mark

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2012-01-23T19:29:00.000Z

Tutelle : Liliane Bettencourt se pourvoit en cassation
LE FIGARO: La guerre entre la mère et la fille n'est pas achevée. Son avocat explique que l'héritière de l'Oréal est dans «une grande souffrance».

Liliane Bettencourt a décidé de se pourvoir en cassation afin de contester son placement sous tutelle. La réconciliation n'est donc pas encore de mise entre la mère et la fille. «Elle m'a exprimé une grande souffrance» à la suite du jugement en appel, rapporte Jean-René Farthouat, l'avocat de la milliardaire, qui s'est entretenu avec sa cliente vendredi passé, en fin d'après-midi. » | Par Laurence De Charette | lundi 23 janvier 2012

2012-01-22T16:58:00.002Z

Wealthy Should Make 'a Greater Contribution' through Mansion Tax Says Nick Clegg
Speaking on the BBC's Andrew Marr show, deputy prime minister Nick Clegg defends the idea of a mansion tax as a way for the wealthy to contribute more to the public finances.

Read the short article here | Sunday, January 22, 2012
Related »

2012-01-22T16:49:00.003Z

Investors Fight for Powers to Block 'Rewards for Failure'
THE DAILY TELEGRAPH: Britain's leading investors are to push for new powers to block controversial "rewards for failure" termination payments to chief executives and remove remuneration committee chairmen who refuse to rein in excessive pay awards.

In a series of submissions to the Department for Business, members of the Association of British Insurers, which represents the main fund managers in the UK who account for billions of pounds of invested assets, have also demanded that the role of remuneration consultants be overhauled.

The proposals say that pay metrics should be simple and transparent and that bonuses should be weighted towards paying out between three and five years rather than after one year which many schemes allow.

Investor representatives spoken to by The Sunday Telegraph revealed the series of proposals 48 hours before the Business Secretary, Vince Cable, announces new legislation on pay. Mr Cable's department has been locked in negotiations with fund managers to ensure there is at least some agreement on measures before the announcements are made.

It is believed that the Secretary of State will say that termination payments will be made subject to a binding vote of shareholders. Mr Cable will argue that such votes would have been able to block awards to disgraced figures such as Sir Fred Goodwin who caused controversy when he was awarded a £2.8m payoff by RBS. Read on and comment » | Kamal Ahmed, Sunday Telegraph Business Editor | Saturday, January 21, 2012

2012-01-22T00:27:00.004Z

2012 South Carolina Primary
FOX NEWS: Track the race in real time. »

2012-01-21T23:13:00.000Z

Vince Cable Calls for Mansion Tax in Next Budget
THE DAILY TELEGRAPH: Vince Cable has called for an annual 1pc levy on homes worth over £2m and insists Conservative MPs are among the scheme's backers.

Vince Cable, the Liberal Democrat Business Secretary, is pushing for a mansion tax to be introduced on properties worth more than £2million in this year’s Budget.

While the policy is likely to be opposed by George Osborne, the Chancellor, Mr Cable said that he had spoken to Conservative MPs who backed the plan.

“A mansion tax is still very much on the agenda – it is a very good idea,” Mr Cable told The Sunday Telegraph.

“It is good for two reasons,’’ he said. ''It would constitute a tax on wealth rather than income, which we believe to be right, and also in economic terms it creates the right sort of incentives for the property market.”

Mr Cable added that it was “perverse” that rich “foreigners” could buy expensive properties in Britain and contribute just £1,000 a year in council tax towards the public finances.

The Business Secretary will on Tuesday unveil new measures to curb executive pay at Britain’s biggest public companies. He is expected to propose binding votes over future pay awards.

His insistence that a mansion tax was still on the cards will surprise many of his party’s MPs and supporters, who have grown pessimistic about it becoming government policy. The proposed levy would see home owners hit with an annual charge of 1 per cent of the property’s value above a £2 million threshold.

A homeowner with a property valued at £2.5 million would pay £5,000 a year, while one whose house was worth £5 million would pay £30,000 a year. This would be on top of council tax. » | Robert Watts, Deputy Political Editor | Saturday, January 21, 2012

2012-01-19T23:59:00.002Z

370,000 Migrants On the Dole
THE DAILY TELEGRAPH: More than 370,000 migrants who were admitted to Britain to work, study or go on holiday are now claiming out-of-work benefits, according to official figures compiled for the first time.

The migrants, who can claim unemployment, housing and incapacity benefit, are costing taxpayers billions of pounds a year.

In other countries, many would have had to return home after their visas expired or their employment ended.

The figures are likely to reopen the debate over the generosity of the welfare system amid growing concerns that the country has become a destination for “benefit tourists”.

In an article for today’s Daily Telegraph, Chris Grayling, the employment minister, and Damian Green, the immigration minister, say that the large number of migrants now claiming benefits has been increased by the “organisational chaos” of Britain’s immigration system.

“It should never have been allowed to happen and Labour should be embarrassed by what it left behind,” they add. Read on and comment » | Robert Winnett, Political Editor | Thursday, January 19, 2012

2012-01-19T23:50:00.002Z

Weltwirtschaftsforum Davos
Angesichts der aktuellen Wirtschaftslage finden sich nächste Woche so viele Teilnehmer wie noch nie am Weltwirtschaftsforum in Davos ein. 2600 Menschen werden über neue Wege diskutieren, bevorstehenden globalen Herausforderungen zu begegnen.
Tagesschau vom 18.01.2012

2012-01-19T17:57:00.002Z

Les Bourses européennes en hausse, les adjudications rassurent
REUTERS FRANCE: PARIS (Reuters) - Les Bourses européennes ont fini en nette hausse jeudi, soutenues par une accélération du rebond des banques, après la forte demande lors des adjudications de dette en France et en Espagne et dans l'espoir d'une issue positive des négociations entre la Grèce et ses créanciers privés.

L'indice CAC 40 a clôturé en hausse de 1,96% à 3.328,94 points, son plus haut niveau depuis le 27 octobre 2011, alors que l'indice paneuropéen Eurostoxx 50 a gagné 1,86% à 2.435,04 points. A Francfort, le Dax a pris 0,97%, tandis que le FTSE londonien s'est adjugé 0,68%. » | Juliette Rouillon pour le service français, édité par Benoît Van Overstraeten | jeudi 19 janvier 2012

2012-01-19T06:23:00.000Z

Qatar Promises Labour Reform Before 2022
Head of organising committee pledges international labour standards will be met as Gulf state prepares for tournament.

2012-01-18T19:00:00.002Z

French Unemployment Becomes Key Issue
Some French people are upset with their country's unemployment situation, which has reached nearly 10 per cent.

To calm people's nerves, Nicolas Sarkozy, France's president, has been holding a summit to cut the country's unemployment rate, but he has apparently failed to convince the public of his ability to lower unemployment.

The situation is especially stark for young people, and it is becoming a key part of the upcoming presidential elections.

Al Jazeera's Jacky Rowland reports from Paris.

2012-01-18T18:00:00.002Z

Shopkeeper Upsets Jobseekers by Demanding Polish Language Skills
THE DAILY TELEGRAPH: Shopkeeper Naveed Hassamin has infuriated jobseekers in Cornwall by turning away anyone who doesn't speak Polish.

Mr Hassamin placed an advert in the window of Costcutter in Bodmin, Cornwall, stating that a "knowledge of Polish" was "preferable" for the position.

But he has been forced to withdraw the advertis[e]ment after a string of complaints from unemployed local people desperate for work.

Paul Baynon, 23, a jobseeker from Bodmin, said: "They asked me if I spoke Polish, and when I said no, they said that is what they were looking for, so I didn't have a chance.
"They didn't say in the ad that they wanted a translator."

Unemployed local Robert Mill, 27, said: "I would have liked the job at Costcutter because jobs are hard to come by in the town. » | Wednesday, January 18, 2012

2012-01-17T22:15:00.001Z

The Cost of Syria's Crackdown
Could the country's economic decline, spurred on by the protests, pose a graver challenge to al-Assad than the uprising?

2012-01-17T21:32:00.002Z

Eurozone Has Long Road Ahead: Germany
Angel Merkel, the German Chancellor has warned Europe has a long way to go to solve its debt crisis, after Standard and Poor's downgraded the credit ratings of nine European countries.

The rating's agency says the Eurozone countries are not as safe a bet for investment as they once were. France know joins Austria, Italy, Spain, Portugal and Cyprus as fellow victims of the economic downturn.

Al Jazeera's Jacky Rowland reports from Paris.

2012-01-17T21:27:00.002Z

Tourism Industry Suffers Big Losses in Tunisia
Tunisia's tourism minister says his country has lost almost half of its European tourists since the revolution a year ago.

More than a million people work in the tourism industry, and the government desperately needs visitors to start coming back.

Al Jazeera's Nazanine Moshiri reports from the Tunisian city of Carthage.

2012-01-17T13:24:00.000Z

Stiglitz Says European Austerity Plans Are a 'Suicide Pact'
THE DAILY TELEGRAPH: European governments have signed a "suicide pact" by imposing fiscal austerity plans that will collapse their economies, Joseph Stiglitz, the liberal economist, has warned.

Imposing austerity measures as countries slow towards recession is a fundamentally flawed response, said Mr Stiglitz, who won the Nobel prize in 2001 for his work on how markets work inefficiently.

"The answer, even though they see over and over again that austerity leads to collapse of the economy, the answer over and over [from politicians] is more austerity," said Mr Stiglitz to the Asian Financial Forum, a gathering of over 2,000 finance professionals, businessmen and government officials in Hong Kong.

"It reminds me of medieval medicine," he said. "It is like blood-letting, where you took blood out of a patient because the theory was that there were bad humours.

"And very often, when you took the blood out, the patient got sicker. The response then was more blood-letting until the patient very nearly died. What is happening in Europe is a mutual suicide pact," he said.

Keynesian economics, which require governments to help sustain demand, suggests that austerity measures should be imposed when an economy is booming, not waning.

Mr Stiglitz pointed out that 700,000 public sector jobs had been cut in the United States in the past four years, removing demand from the system as unemployment spikes. The UK is set to lose a similar number by 2017. Read on and comment » | Malcolm Moore, in Hong Kong | Tuesday, January 17, 2012

2012-01-17T13:08:00.004Z

Myrtle Beach, South Carolina: The Republican Candidates on Taxes

FOX NEWS: Romney defends record at South Carolina debate, as GOP rivals fight for edge in state primary » | Fox News.com | Tuesday, January 17, 2012

REUTERS.COM: Romney unscathed from debate attacks: (Reuters) - Republican presidential hopefuls attacked Mitt Romney's record in business and government on Monday and challenged him to release his tax returns, but the front-runner emerged largely unscathed from a South Carolina debate. » | John Whitesides and Deborah Charles | MYRTLE BEACH, South Carolina | Tuesday, January 17, 2012

2012-01-15T17:23:00.002Z

Income Now the Big Divide in US
THE SYDNEY MORNING HERALD: CONFLICT between rich and poor now eclipses racial strain and friction between immigrants and the native-born as the greatest source of tension in US society, according to a new survey.

About two-thirds of Americans now believe there are ''strong conflicts'' between rich and poor in the US, a survey by the Pew Research Centre found, a sign that the message of income inequality brandished by the Occupy Wall Street movement and pressed by Democrats may be seeping into the national consciousness.

The result was about a 50 per cent increase from a survey in 2009, when anger over the financial industry's role in the recession was festering. In that survey, 47 per cent of those polled said there were strong conflicts between classes. » | Sabrina Tavernise | Monday, January 16, 2012

2012-01-15T17:16:00.000Z

Europe Had It Coming, Says PM

THE SYDNEY MORNING HERALD: THE Prime Minister, Julia Gillard, has rubbed salt into the wounds of European nations reeling from weekend credit downgrades, declaring they had it coming for avoiding tough decisions.

Speaking after Standard & Poor's stripped France and Austria of their AAA ratings and downgraded Italy, Portugal, Spain, Cyprus, Malta, the Slovak Republic and Slovenia, Ms Gillard said the moves were the "price to be paid" by governments that had put off reforms.

"For too many years, European governments have deferred the nation-building, productivity-enhancing reforms which Australia has made the foundation of our dynamic and resilient economy," she said yesterday.

"In stark contrast to Europe", Australia had strict fiscal rules that would return it to surplus in 2012-13. European leaders should "swiftly undertake structural reforms to boost their economic potential and lift growth". » | Peter Martin, Matt O'Sullivan | Monday, January 16, 2012

2012-01-15T16:21:00.000Z

Eurozone's Fate Hangs on Whether French Humiliation Turns to Anger

THE GUARDIAN: The downgrading of France was meant as a warning. But as the Greek crisis enters a critical phase, and Athens looks to its partners for more cash, Europe may find that Sarkozy's patience has now all but run out

Nicolas Sarkozy has spent the weekend nursing his hurt pride after Standard & Poor's stripped France of its AAA rating in a late-night announcement on Friday. But this week, Greece will once again be at the eye of the eurozone storm, as inspectors from the so-called "troika" – the European commission, the International Monetary Fund and the European Central Bank – arrive to decide whether Athens still deserves the €130bn (£107bn) bailout it was first promised last October.

And after Friday's mass downgrade, which underscored the fact that investors believe governments right across the 17-member single currency area will be on the hook if the crisis deteriorates, Greece's eurozone partners may no longer be in any mood to compromise. » | Heather Stewart | Saturday, January 14, 2012

2012-01-14T04:49:00.002Z

Eurozone in New Crisis as Ratings Agency Downgrades Nine Countries
THE GUARDIAN: Standard & Poor's strips France of its AAA credit rating, rekindling fears in the markets over future of single currency

Europe has been plunged into a fresh crisis after France was stripped of its coveted AAA credit rating in a mass downgrade of nine eurozone countries by the ratings agency Standard & Poor's.

S&P said austerity was driving Europe even deeper into financial crisis as it also cut Austria's triple-A rating, and relegated Portugal and Cyprus to junk status.

The humiliating loss of France's top-rated status leaves Germany as the only other major economy inside the eurozone with a AAA rating, and rekindled financial market anxiety about a possible break-up of the single currency.

S&P brought an abrupt end to the uneasy calm that has existed in the eurozone since the turn of the year by downgrading the ratings of Cyprus, Italy, Portugal and Spain by two notches. Austria, France, Malta, Slovakia and Slovenia were all cut by one notch.

The agency said that its actions on eurozone ratings were "primarily driven by insufficient policy measures by EU leaders to fully address systemic stresses". It added that fiscal austerity alone "risks becoming self-defeating". » | Larry Elliott and Phillip Inman | Friday, January 13, 2012

2012-01-12T19:08:00.003Z

Nach SNB-Rücktritt: Headhunter machen Jagd auf Hildebrand*
Wie begehrt ist Philipp Hildebrand nach seinem Abgang? Ein Headhunter erkärt, wohin es den ex-SNB-Chef schlagen könnte.

* Das Video wurde in Schweizerdeutsch (Schwyzertüütsch) aufgenommen.

FINANCIAL TIMES: The dollar lifestyle of the Swiss central banker: In a hedge fund manager, being debonair, cosmopolitan, wealthy and quotable are good qualities. In a central banker, less so. » | John Gapper | Friday, January 13, 2012

2012-01-12T17:50:00.002Z

Shariah Finance

2012-01-11T23:01:00.004Z

Poverty in America Likely to Get Worse, Report Finds
THE GUARDIAN: Indiana University study says 46 million Americans are living below the poverty line – up 27% since start of recession

Millions of Americans will be forced into poverty in the coming years even as the US hauls itself out of the longest and deepest recession since the second world war [sic].

A study from Indiana University, released on Wednesday, says the number of Americans living below the poverty line surged by 27% since the beginning of what it calls the "Great Recession" in 2006, driving 10 million more people into poverty.

The report warns that the numbers will continue to rise, because although the recession is technically over, its continued impact on cuts to welfare budgets and the quality of new, often poorly paid, jobs can be expected to force many more people in to poverty. It is also difficult for those already under water to get back up again.

"Poverty in America is remarkably widespread," concludes the study, At Risk: America's Poor During and After the Great Recession. "The number of people living in poverty is increasing and is expected to increase further, despite the recovery." » | Chris McGreal | Wednesday, January 11, 2012

2012-01-11T22:39:00.002Z

Political Analyst Uli Bruckner Discusses Merkel-Monti Meeting
Uli Bruckner, a political analyst on Europe, talks to Al Jazeera's correspondent Nick Spicer in Berlin on the outcome of the meeting in Berlin between German Chancellor Angela Merkel and Mario Monti, the Italian prime minister.

2012-01-11T22:20:00.002Z

Many Cubans Unhappy with Pace of Change

2012-01-11T21:13:00.002Z

Swiss National Bank Chief Investigation: Philipp Hildebrand And His Wife's Currency Trades

2012-01-11T21:05:00.002Z

Ganzes Gespräch mit Kashya Hildebrand (Originalton englisch) [Full Interview with Kashya Hildebrand]
Sie hat für die Familie Hildebrand mit den Dollar-Zukäufen den Stein ins Rollen gebracht: Kashya, die Ehefrau von Phillipp Hildebrand, seit Montag Ex-Präsident der Schweizerischen Nationalbank. Das Schweizer Fernsehen hat die Galeristin in Singapur getroffen.
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2012-01-11T20:59:00.000Z

«Dass seine Glaubwürdigkeit beschädigt ist, bricht mir das Herz»
Kashya Hildebrand, die Ehefrau des am Montag zurückgetretenen Präsidenten der Schweizerischen Nationalbank, fühlt sich schuldig und ist wütend. «Hätte ich bloss das Chaos erahnt, in das ich das Land gestürzt habe», sagt die Galeristin in Singapur einer Reporterin des Tessiner Fernsehens.
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SCHWEIZER FERNSEHEN: «Dass seine Glaubwürdigkeit beschädigt ist, bricht mir das Herz» » | sf/schubeca | Mittwoch 11. Januar 2012

2012-01-11T01:52:00.002Z

Ex-Schweizerische Nationalbank-Präsident Philipp Hildebrand
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2012-01-11T00:12:00.005Z

Murky Politics Behind Fall of Swiss Banker

BBC: The resignation of Philipp Hildebrand as head of the Swiss National Bank (SNB) is front page news not just in Switzerland, but around the world.

His wife Kashya's questionable currency deals (Kashya Hildebrand used Swiss francs from the couple's joint account to purchase $500,000 just as the franc reached a record high, and only three weeks before her husband took measures to effectively devalue the franc) have cost him his job, and raised serious questions about his judgement.

But behind the headlines lies a much murkier tale of political intrigue.

Philipp Hildebrand, who took up his post in 2010, aged 46, was the youngest ever head of the SNB.

He began his job just as the Swiss financial sector looked to be recovering from a major financial crisis. Over-exposure to sub-prime mortgages had brought Switzerland's biggest bank, UBS, to the brink of ruin; it was only rescued by a government bailout.

Mr Hildebrand was instrumental in creating new "too big to fail" legislation requiring Swiss banks to reduce risk, and to hold more capital. It was a move which found favour in government circles, but earned him enemies among Switzerland's banking elite.

At the same time, pressure was growing on Switzerland to relax its strict banking secrecy and to hand over tax revenue owed to the US and European countries by their citizens who had put money in Swiss banks in the hope of evading tax.

Here again, Mr Hildebrand indicated he would like to see more openness from the banks - his stance aroused the anger of the right-wing Swiss People's Party, one of the staunchest defenders of banking secrecy.

European ties

Relations with Europe also became a stick with which to beat Switzerland's top banker.

Mr Hildebrand publicly acknowledged that the success of the Swiss economy was bound up with that of Europe's, and called for more openness and integration from non-EU Switzerland in its relations with Brussels.

This enraged the Swiss People's Party, which has long campaigned against closer ties with the EU.

When Mr Hildebrand announced a ceiling for the Swiss franc against the euro, in an attempt to protect Switzerland's export markets in the face of a soaring franc (60% of Swiss exports go to the EU) the People's Party accused him of trying to take Switzerland into the eurozone by the back door.

This despite the fact that Swiss business leaders, facing reduced orders and disappearing profits, had been begging the SNB to intervene.

Political sour grapes?

In fact, from the moment Mr Hildebrand took office, the People's Party has campaigned against him. Its charismatic leader, Christoph Blocher, made no secret of his contempt for the SNB's new chairman, suggesting he was too young and inexperienced for the job.

Some political commentators have suggested simple jealousy may also partly explain Mr Blocher's stance. Political sour grapes? » | Imogen Foulkes, BBC News, Geneva | Tuesday, January 10, 2012

DIE WELTWOCHE: Editorial – Hildebrands Geschäfte: Ein spekulierender NotenbankChef ist ein Sicherheitsrisiko. Die Medien spielen eine dubiose Rolle. » | Von Roger Köppel | Mittwoch 11. Januar 2012

2012-01-10T21:57:00.000Z

Eurover the Top! Brussels Grows amid Member State Woes

2012-01-10T17:59:00.000Z

Immigation Does Keep Britons Out of Jobs, Government Committee Admits
THE DAILY TELEGRAPH: Immigration meant 160,000 British workers missed out on jobs in the last five years, the Government’s migration expert revealed.

A Briton is “displaced” from the labour market for every four extra migrants from outside the EU that arrive in the UK, the Migration Advisory Committee (Mac) concluded.

The report is the first official examination of the impact of immigration and showed it has kept resident workers out of jobs.

Professor David Metcalf, chairman of the Mac, also criticised the use of GDP for measuring the effects of the influx of foreign nationals as “pro-immigration” because more migrants will logically expand the economy. » | Tom Whitehead, Home Affairs Editor | Tuesday, January 10, 2012

2012-01-10T02:29:00.002Z

Outsider Switzerland Feels Europe’s Pain
BBC: As the crisis in the eurozone continues, many Europeans are wondering whether the single currency, and even the European Union (EU) itself, were ever really good ideas.

Some are looking towards Switzerland, which has stayed out of the EU and the euro but maintains close ties with Brussels, as a better example of how to protect the national economy while still enjoying the benefits of Europe's trade markets.

The Swiss continue to enjoy high salaries and a high standard of living and Switzerland's major cities regularly make the top ten list of best places to live.

What's more, Switzerland's welfare and social services remain relatively generous, with little sign of the austerity measures currently being introduced in many EU member states.

But Swiss economists say the picture is not as simple, and certainly not as rosy, as that.

"The Swiss economy is very integrated in the European market," explained Rudolf Minsch, chief economist at the Swiss Business Federation.

"Our enterprises are really dependent on what happens in the European market.

"About half of our exports are going to the eurozone, close to 60% to the EU, so once there is a recession in Europe this is a drawback for the Swiss economy. We are probably falling into a recession in Switzerland, too." » | Imogen Foulkes, BBC News, Zurich | Thursday, December 29, 2011

2012-01-10T01:59:00.000Z

Im Interview: Nationalbank-Präsident Philipp Hildebrand
19.12.2011 – Die Schweizer Nationalbank hat beschlossen, den Mindestkurs zum Euro bei 1.20 Franken zu belassen. Damit ist sie konsequent, und glaubwürdig: Das sind wichtige Eigenschaften für eine Notenbank. Wie wichtig sind sie? Und wie stark sollen Notenbanken wie SNB und EZB in Krisensituationen ihr übliches Repertoire ausweiten? Philipp Hildebrand stellt sich den Fragen von «ECO»-Moderator Reto Lipp.
ECO vom 19.12.2011
Verwandt »

2012-01-10T01:56:00.000Z

Hildebrand: Unschuldsbeweis unmöglich
SNB-Chef Philipp Hildebrand hat vor den Medien Stellung zu seinem Rücktritt genommen. Er legte alle Finanzunterlagen wie vor Tagen angekündigt offen. Grund für den Rücktritt sei, dass er seine Unschuld nicht beweisen könne.
Hildebrand: Unschuldsbeweis unmöglich
Related »

2012-01-09T18:50:00.000Z

Eurozone: Merkel will Finanztransaktionsteuer notfalls ohne Briten einführen

FRANKFURTER ALLGEMEINE: Bundeskanzlerin Merkel will die Finanztransaktionsteuer notfalls ohne die Briten in Europa einführen. Damit liegt sie auf einer Linie mit dem Finanzminister. Die FDP ist gegen einen Alleingang im Euroraum.

Bundeskanzlerin Angela Merkel (CDU) hat sich dafür ausgesprochen, die Finanztransaktionsteuer notfalls ohne die Briten in Europa einzuführen. Sie sei persönlich dafür, eine solche Steuer in der Eurozone zu erheben, wenn es keine Lösung für alle 27 EU-Länder gebe, sagte die Bundeskanzlerin nach einem Treffen mit Frankreichs Präsident Sarkozy in Berlin. Erstmals übernahm sie diese Position von Finanzminister Schäuble (CDU). Einen Alleingang im Euroraum lehnte jedoch Wirtschaftsminister Rösler (FDP) ab. » | Von MANFRED SCHÄFERS, BERLIN | Montag 09. Januar 2012

2012-01-09T16:23:00.001Z

Swiss Bank Chief Philipp Hildebrand Quits

THE DAILY TELEGRAPH: Philipp Hildebrand, the embattled head of the Swiss central bank, has resigned with immediate effect after admitting that he had no proof that his wife made controversial currency trades without his knowledge.

Speaking at a press conference in Bern, Mr Hildebrand said:

"In view of the continued public debate centred on these financial transactions and following detailed examination of all documentation and reflection since the news conference, I have come to the conclusion it is not possible to provide conclusive and final evidence that my wife did initiate the transaction without my knowledge.

"The fact is my word is my bond I had no knowledge of my wife's transaction on that day."
Mr Hildebrand added that that he hoped the move would "allow the SNB to retain its credibility, which is its greatest assset."

Kashya Hildebrand, a former hedge fund trader who now runs a Zurich art gallery, bought Sfr400,000 (£272,363) for $504,000 on August 15. The trades were made three weeks before the SNB set a minimum exchange rate of 1.20 Swiss francs per euro to stem massive inflows of money from the eurozone which was hurting the Swiss economy. » | Szu Ping Chan | Monday, January 09, 2012

FXNEWS: Hildebrand’s FX dealing could cost Switzerland billions: » | Peter Garnham | Friday, January 06, 2012

2012-01-09T01:40:00.000Z

Merkel und Sarkozy stimmen sich vor EU-Gipfel ab

ZEIT ONLINE: Frankreich und Deutschland wollen weiterhin Einheit demonstrieren. Möglich ist, dass sich beide über die Einführung einer Finanztransaktionssteuer einigen.

Kanzlerin Angela Merkel und der französische Präsident Nicolas Sarkozywollen an diesem Montag über das weitere Vorgehen in der Euro-Schuldenkrise beraten. Die Staatschefs werden sich dafür im Kanzleramt in Berlin für den nächsten EU-Sondergipfel Ende Januar abstimmen.

Bei dem Treffen geht es um die Umsetzung des von beiden Ländern angestoßenen Fiskalpaktes, der die 17 Euro-Länder sowie neun weitere EU-Staaten zu mehr Haushaltsdisziplin verpflichten soll. Weil Großbritannienals einziges EU-Land bisher verhindert, dass dies innerhalb des EU-Vertrages geschieht, muss zunächst ein zwischenstaatliches Abkommen geschlossen werden. Die Staaten verpflichten sich, nationale Schuldenbremsen einzuführen. Erreicht ein Land das Ziel nicht, soll ein automatischer Korrekturmechanismus ausgelöst werden. Ein Sanktionsverfahren soll nur mit qualifizierter Mehrheit verhindert werden können. » | ZEIT ONLINE, dpa, Reuters | Sonntag 08. Januar 2012

2012-01-08T03:06:00.002Z

Greedy Bankers to Face Prison as Chancellor Prepares New Law to Target Reckless Bosses Who Take Risks with the Economy

MAIL ONLINE: New criminal offence of 'corporate negligence' could punish financiers

Greedy bankers such as Sir Fred Goodwin could be jailed under tough new laws being drawn up by George Osborne.

Growing public outrage over the severe damage caused by the banking crisis has prompted the Chancellor to prepare a new criminal offence of ‘corporate negligence’ to punish reckless financiers.

The move comes just days before the annual City bonus season, which is expected to bring another round of bumper payouts despite the sluggish UK economy and families suffering a historic squeeze on household finances.

All three main parties are now competing to offer the most hardline policies on tackling ‘fat cats’, after their internal polling revealed the scale of voters’ fury at the level of executive pay.

Under the plan, being worked on behind the scenes at the Treasury, legislation would be introduced to prosecute any boss of a ‘systemically important financial institution’ whose actions had a significantly damaging effect on the wider economy.

The plan would mean that the chief executives of the big five banks: Bob Diamond at Barclays, Antonio Horta-Osorio at Lloyds TSB, Stuart Gulliver at HSBC, Ana Botin at Santander and Sir Fred’s successor at RBS, Stephen Hester – would all be at risk of imprisonment if they ‘crashed’ the banks and damaged the economy through their actions. » | Glen Owen | Saturday, January 07, 2012

2012-01-06T20:45:00.000Z

«Europa ist schwächer als wir dachten»

TAGES ANZEIGER: Italiens Premier Mario Monti verglich bei seinem Paris-Besuch Europa mit einem Bergsteiger am Hang. Die Krise betreffe nicht nur den Euro, sondern die finanzielle Lage in mehreren Ländern.

Italiens Premier Mario Monti hat heute nach einem Treffen mit seinem französischen Amtskollegen François Fillon in Paris zugegeben, dass Europa schwächer als gedacht sei. Die Krise betreffe nicht die europäische Devise als Währung, sondern die finanzielle Lage in mehreren Ländern des Euro-Raums.

Der 68-jährige Monti verglich Europa mit einem Bergsteiger am Hang. «Wir erleben eine entscheidende Phase, wir können das Ziel erreichen. Europa hat immer seine Fähigkeit bewiesen, Schwierigkeiten in Fortschritte umzuwandeln», versicherte Monti. » | kle/sda | Freitag 06. Januar 2012

2012-01-06T18:40:00.000Z

Bei Pleite Ungarns wackelt Österreichs Spitzenbonität

DIE PRESSE: In Ungarn spitzt sich die Lage dramatisch zu. Alle großen Ratingagenturen bewerten die Bonität des Landes mit „Ramschniveau“. Die heimischen Institute haben in Ungarn Kredite von 31,85 Mrd. Euro ausständig.

Wien/Höll. In Ungarn spitzt sich die Lage dramatisch zu. Am Freitag senkte auch die Agentur Fitch den Daumen. Nun bewerten alle großen Ratingagenturen die Bonität des Landes mit „Ramschniveau“. Premierminister Viktor Orban traf sich mit den Spitzen des Staates im Parlament zu einer Krisensitzung. Auch der Chef der Budapester Nationalbank, Andreas Simon, war gekommen.

Das osteuropäische Land ist dringend auf Finanzspritzen des Internationalen Währungsfonds (IWF) und der Europäischen Union angewiesen. Doch diese brachen die Verhandlungen ab, weil die Budapester Regierung zu Jahresbeginn ein Gesetz verabschiedete, das die Unabhängigkeit der Notenbank einschränkt. Die Landeswährung Forint stürzte auf ein Rekordtief. Gleichzeitig erreichten die Prämien für Kreditausfallsversicherungen auf Staatsanleihen Höchststände. » | Die Presse | Freitag 06. Januar 2012

Related video »

2012-01-06T18:24:00.002Z

Fitch Downgrades Hungary to Junk
Jan. 6 - Hungary's government said it was surprised by ratings agency Fitch's decision to downgrade the country's credit rating to junk, which followed similar moves by Moody's and Standard & Poor's. Joanna Partridge reports

2012-01-06T16:44:00.000Z

Unemployment Falls Again as US Adds 200,000 Jobs in December

THE GUARDIAN: Cheer for Obama as job growth accelerates and unemployment rate drops to 8.5% – the lowest level since February 2009

Employers added 200,000 jobs to the US economy in December as unemployment fell to 8.5%, the government announced on Friday.

According to the US Labour Department's monthly survey of employers private companies added 212,000 jobs in December, while the public sector—federal, state and local governments—shrank by 12,000.

A separate survey of US households said the unemployment rate sank to 8.5% in December, its lowest level since February 2009.

While job growth has yet to make up for the ground lost during the recession, 13.1 million Americans remain unemployed, December was the 15th consecutive month that the numbers have risen. » | Dominic Rushe | Friday, January 06, 2012

THE GUARDIAN: Eurozone unemployment hits new record: In bailed-out Greece, unemployment stands at 18.8%, up from 13.3%; while Spain now has the highest unemployment rate in Europe, at 22.9% ¶ Public spending cuts and collapsing business confidence have sent unemployment in the eurozone to a record 16 million people, up 587,000 on the same month in 2010. ¶ Official figures compiled by Eurostat, the EU's statistics agency, show the heavy toll taken on the workforce by austerity measures and the slowdown in the eurozone economy during 2011. ¶ Unemployment across the 17-member single currency area hit 16.4 million by November. The unemployment rate – the proportion of the workforce without a job – has risen only slightly over the past 12 months, to 10.3%; but many workers have given up on finding a job. » | Heather Stewart | Friday, January 06, 2012

2012-01-05T18:42:00.002Z

Papademos: Griechenland droht "katastrophales Ende"

DIE PRESSE: Der griechische Premier ruft die Bevölkerung eindringlich auf, weitere Lohnkürzungen hinzunehmen. Sonst drohe im März eine "unkontrollierbare Staatspleite".

Griechenlands Ministerpräsident Lucas Papademos hat erneut eindringlich vor einer "unkontrollierbaren Staatspleite" im März gewarnt und die Gewerkschaften zu mehr Sparanstrengungen aufgefordert. Die Arbeitnehmer müssten weitere Lohnkürzungen hinnehmen, um die Sparziele zu erfüllen. Andernfalls "laufen wir Gefahr bald nichts mehr zu haben", sagte Papademos bei einem Treffen mit Vertretern der Gewerkschaften. Die Angst ist in Athen groß, denn Mitte Jänner [Januar] kommen die internationalen Finanzkontrolleure erneut nach Athen, um über die Sparfortschritte zu befinden - als Voraussetzung für weitere Milliarden-Kredithilfen.

Papademos machte nach Angaben seines Büros vom Donnerstag keinen Hehl daraus, dass eine "unkontrollierbare Staatspleite" die Konsequenz wäre, wenn nicht sofort neue Sparmaßnahmen beschlossen werden. Griechenland müsse dringend wieder konkurrenzfähig werden. » | APA | Donnerstag 05. Januar 2012

2012-01-05T16:39:00.001Z

The Myth of Europe

FOREIGN POLICY: The euro crisis isn't really about money. It's about the fiction that Europeans ever existed at all.

When the euro officially entered circulation at the stroke of midnight on Jan. 1, 2002, fireworks lit up the night sky across Europe to celebrate the scrapping of the French franc, German deutsche mark, Greek drachma, and a clutch of other ancient currencies. Brussels hosted an extravagant sound-and-light show, while Frankfurt unveiled a five-story statue of the freshly minted euro as a pop band belted out "With Open Arms (Euro World Song)." "I am convinced," European Central Bank President Wim Duisenberg declared, that the launch of euro coins and banknotes "will appear in the history books in all our countries and beyond as the start of a new era in Europe."

The early 2000s did feel like the European moment. Enlightened policy wonks on both sides of the Atlantic gushed about the glamorous new arrival on the global stage. In this magazine in 2004, Parag Khanna described the "stylish" European Union as a "metrosexual superpower" strutting past the testosterone-fueled, boorish United States on the catwalk of global diplomacy. Later that year, economist Jeremy Rifkin penned a book-length encomium, The European Dream: How Europe's Vision of the Future Is Quietly Eclipsing the American Dream, which was followed by Washington Post reporter T.R. Reid's unlikely bestseller, The United States of Europe: The New Superpower and the End of American Supremacy. In 2005, foreign-policy expert Mark Leonard explained Why Europe Will Run the 21st Century.

One wonders how well these books are selling today, now that the European dream has become a nightmare for many, with the euro teetering on the brink of collapse and the union that produced it mired in a triple crisis that will take years, if not decades, to resolve. » | Gareth Harding | Jan/Feb 2012

2012-01-03T21:03:00.002Z

'Work Fear' Sweeps Nation as Britons Dream of Changing Careers
THE DAILY TELEGRAPH: As millions of Britons return to the rat race after the festive break, a new survey suggests more than half will dream about turning their hobby into a new career with two thirds gripped by "work fear" over their current jobs.

As workers battle the wind and rain to turn up at work on Tuesday there will be plenty wishing they had a completely different job to go to with the majority dreaming they could turn their weekend hobbies – such as photography, fitness and cooking – into a new job this year.

The yearning to escape the drudgery of work stems partly from Britons feeling overworked and underpaid; as 40pc of workers do not take a lunch break and a similar number work an extra five hours per week on top of their paid hours, the findings revealed.

The survey of 2,000 workers by training provider Lifetime also found just a third of British workers stick to their contracted working hours, with more than one in 10 working six days per week leaving only one day for rest and relaxation. » | Louisa Peacock, Jobs editor | Tuesday, January 03, 2012

2012-01-03T16:29:00.002Z

Oil Prices Soar as Iran Warns US Aircraft Carrier Away from Persian Gulf
THE GUARDIAN: Prices rise worldwide amid concerns that tensions between US and Iran over key oil route could lead to supply disruptions

Iran's army chief on Tuesday warned an American aircraft carrier not to return to the Persian Gulf in Tehran's latest tough rhetoric over the strategic waterway, part of a feud with the United States over new sanctions that has sparked a jump in oil prices.

General Ataollah Salehi spoke as a 10-day Iranian naval exercise ended near the Strait of Hormuz at the mouth of the Gulf. Iranian officials have said the drill aimed to show that Iran could close the vital oil passage, as it has threatened to do if the United States enacts strong new sanctions over Iran's nuclear program.

The strait, leading into the Gulf of Oman and Arabian Sea, is the only possible route for tankers transporting crude from the oil-rich states of the Persian Gulf to markets. A sixth of the world's oil exports passes through it every day.

Oil prices rose to over $101 a barrel Tuesday amid concerns that rising tensions between western powers and Iran could lead to crude supply disruptions. By early afternoon in Europe, benchmark crude for February delivery was up $2.67 to $101.50 a barrel in electronic trading on the New York Mercantile Exchange. » | Associated Press | Tuesday, January 03, 2012

2012-01-03T00:30:00.000Z

Bankers Ready to Sue If Bonuses Too Small

THE DAILY TELEGRAPH: A growing number of bankers are considering suing their employer if they do not get the bonus they think they deserve this year, according to City employment lawyers.

British banks should brace themselves for claims from "disgruntled" bankers who will not roll over and accept lower bonuses than usual despite the huge public and shareholder backlash against out-of-control pay, legal experts have warned.

One claim for £1.5m is understood to have already made its way into the system last year, after a banker believed their 2011 bonus was too low.

The case is believed to have been rejected before it got to court, with lawyers acting for the bank branding the claim "whimsical".

Judges are also said to be unsympathetic towards bankers' claims that their bonuses are too small in the current climate.

However, City lawyers said an increasing number of bankers were building cases in preparation of lower bonus payouts and were prepared to fight it out at court. Read on and comment » | Louisa Peacock, Jobs Editor | Monday, January 02, 2012

My comment:

I see no difference between the top-feeders and the bottom-feeders. They are all a scourge to a decent society. Let the bastards sue! Incarcerate all those that can be incarcerated. They got us into this mess; they should pay the price. – © Mark

This comment also appears here

2012-01-02T19:39:00.003Z

Iran Currency Plunges 10% as US Strengthens Sanctions
THE GUARDIAN: Riyal falls to record low after Obama administration blacklists Tehran's central bank

Iran's currency value has fallen more than 10% in less than a week to record lows, after a US move to tighten financial sanctions against the Islamic republic.

The riyal lurched to as low as 16,800 to the dollar, down from 15,200 at the end of last week. It was valued at 10,500 just a year ago.

The slump was blamed on US sanctions which target the Iranian central bank. The White House move to blacklist any company or institution that trades with the Central Bank of Iran aims to make it harder for Iran to sell its oil.

Iran has threatened to close the Straits of Hormuz, through which one-sixth of the world's oil supply passes, if the west takes aim at its oil industry. The Iranian navy on Monday fired a second missile test in as many days in the Gulf, firing a long-range rocket that they claim could hit targets "hundreds of miles away". » | Agencies in Tehran | Monday, January 02, 2012

2012-01-02T16:10:00.004Z

Time to End Excess in the City, Says David Cameron
THE DAILY TELEGRAPH: Bankers and financiers in the City will no longer be allowed to claim unjustified cash bonuses, David Cameron pledges today.

In his New Year message, the Prime Minister says the Government will “tackle excess in the City”, with the same energy that it is clamping down on benefits cheats.

Mr Cameron also says he is “determined” to sort out public services, bringing schools and hospitals up to scratch, and helping police catch more criminals.

Mr Cameron says the Government had "clear and strong plans" to bring down the deficit, which were giving "some protection from the worst of the debt storms now battering the eurozone".

But he warns the economy is only safe “for now” from the crisis afflicting Eurozone countries, and says he will be “bold, confident and decisive” about the future.

Mr Cameron’s comments came shortly after the leaders of Germany and France used their New Year messages to brace their populations for more tough times.

German Chancellor Angela Merkel said “next year will no doubt be more difficult than 2011”, while French President Nicolas Sarkozy said there had to be structural changes to the French economy.

He said: “I know that the lives of many of you, already tested by two difficult years, have been put to the test once more. You are ending the year more worried about yourselves and your children.”

In his 650 word television address, Mr Cameron says that this year his Government “will be bold about working to cure the problems of our society”, focusing particularly on unjustified rewards for the very wealthy. Read on and comment » | Christopher Hope, Senior Political Correspondent | Monday, January 02, 2012

My comment:

"Time to end excess in the City", says Cameron. What's taken him so long to come to this conclusion? It's elementary. But having said that, I believe these are merely sweet words on Cameron's part to appease the angry electorate. I doubt very much that anything meaningful will be done about bankers' excesses by Cameron and his cronies. – © Mark

This comment also appears here

2011-12-31T17:31:00.003Z

Happy New Year! Bonne année ! Glückliches Neues Jahr! Felice anno nuovo! Feliz año nuevo! ! سنة سعيدة

Wishing you ALL a VERY HAPPY, HEALTHY & PROSPEROUS 2010, and thanking you ALL for your continued and loyal support.

2011-12-31T17:30:00.007Z

Neujahrsansprache – Merkel: "Deutschland geht es gut"
Die Bundeskanzlerin Angela Merkel stimmt die Deutschen angesichts der europäischen Schuldenkrise auf ein schwieriges Jahr 2012 ein - und macht ihnen in ihrer Neujahrsansprache zugleich Mut.

2011-12-30T19:22:00.001Z

House Prices Fall as Nationwide Warns of Sluggish 2012
THE DAILY TELEGRAPH: House prices in Britain dipped in December, mortgage lender Nationwide said on Friday, adding that the property market looks likely to remain sluggish next year as a weak economy and rising unemployment keep a lid on consumer spending.

House prices fell 0.2pc from November on a seasonally adjusted basis, although they rose 1pc from the same month last year. In a Reuters poll, analysts had forecast a monthly increase of 0.1pc and a 1.5pc annual rise.

"With the UK economy struggling to gain momentum, labour market conditions are likely to remain challenging in 2012, deterring buyers from entering the housing market," said Nationwide chief economist Robert Gardner.

"The housing market in 2012 looks likely to be characterised by low levels of activity once again, with prices moving sideways or modestly lower over the course of the year," he said. » | Reuters | Friday, December 30, 2011

2011-12-29T16:35:00.000Z

French 'Cola Tax' Approved: Paris Vows to Fight Deficit and Obesity

SPIEGEL ONLINE INTERNATIONAL: Officially part of the country's tough austerity measures to combat the debt crisis, France will implement a new "soda tax" on Jan. 1. The legislation is also part of a growing trend in Europe to impose sin taxes on food and drinks associated with poor health and obesity.

For French residents fond of sugary drinks like Coca Cola, life is about to get more expensive. The country's top constitutional body, the Constitutional Council, approved a new soda tax on Wednesday. The tax, which works out at about 1 euro cent per container, is part of austerity measures passed in France to combat the debt crisis, and is expected to generate around €120 million ($156 million) in revenue for the government.

In its decision approving the legislation, the Constitutional Council said that while it didn't believe the government was imposing the tax only to promote health and combat obesity, it also didn't see any unfair disadvantages for a specific product group in the legislation.

The "cola tax," as people are calling it in France, will now go into effect on Jan. 1. French media are reporting that most companies will raise the tax money by increasing their price per drink. Industry sources have told newspapers that soft drink prices could increase by as much as 35 percent. » | dsl -- with wires | Thursday, December 29, 2011

2011-12-28T19:47:00.001Z

Zehn Jahre Euro
Am 1. Januar 2002 wurde der Euro als Bargeld eingeführt. Seine Akzeptanz stieg über die Jahre, aber auch die Skepsis gegenüber der Gemeinschaftswährung und ihren Implikationen blieb bestehen. Mit Blick auf die aktuelle Schuldenkrise könnte dem Euro 2012 eine weitere Bewährungsprobe bevorstehen.

2011-12-24T16:16:00.003Z

Merry Christmas! Joyeux Noël ! Fröhliche Weihnachten! Buon Natale! Felix Nativitas!
Wishing you all peace and joy and merriment for the twelve days of Christmas
'We Three Kings' by James C. Christensen. Image: Google Images
Gloria in excelsis Deo
Et in terra pax hominibus bonae voluntatis,
Laudamus te, benedicimus te,
adoramus te.
Glorificamus te. Gratias agimus tibi,
propter magnam gloriam tuam.

2011-12-21T16:11:00.000Z

Moody's: Eurokrise kann auch britisches Top-Rating gefährden
REUTERS DEUTSCHLAND: London - Die Top-Bonität Großbritanniens ist nach Einschätzung der Ratingagentur Moody's auch von der Krise in der Eurozone bedroht.

Die Bemühungen der Regierung um einen ausgeglichenen Haushalt könnten durch weitere Schocks für die Wirtschaft untergraben werden, erklärte Moody's am Dienstag.

Bislang genießt Großbritannien das Top-Rating Aaa, und der Ausblick wird von Moody's mit stabil bewertet. Die Fähigkeit des Landes, zusätzliche Belastungen für den Haushalt zu kompensieren, habe sich aber verschlechtert. Der Handlungsspielraum für Großbritannien sei geringer geworden, sagte Moody's-Analystin Sarah Carlson der Nachrichtenagentur Reuters. » | Reuters | Mittwoch 21. Dezember 2011

2011-12-20T18:54:00.000Z

Americans Ditch Home Ownership
THE DAILY TELEGRAPH: The switch by Americans from buying to renting homes since the financial crisis has been underlined by a surge in the construction of flats.

The development of multi-family units - a category made up of flats and townhouses - jumped 25.3pc last month to an annual rate of 238,000, the Commerce Department said on Tuesday. That helped drive overall construction on new homes up 9.3pc to an annual pace of 685,000, the strongest since the spring of 2010.

The better-than-expected figures were enough to cheer investors who have become accustomed to a flow of depressing news from the housing market since the bubble first burst in 2006. They also showed the degree to which the downturn is unwinding American homeownership, an objective of successive US governments since World War Two.

Ownership dropped to 66.9pc last year from a high of 70pc in 2005, and some are forecasting it will drop as low as 62pc as the hurdles to owning a home increase.

"We expect the shift from owning to renting to persist for the next few years," said Michelle Meyer, an economist at Bank of America. She points to the prospect of further repossessions next year and the tougher criteria banks are now imposing on potential borrowers. Read on and comment » | Richard Blackden, US business editor | Tuesday, December 20, 2011

2011-12-20T17:54:00.002Z

Cold Australian Summer Sees Swimwear Profits Plummet
THE DAILY TELEGRAPH: Australia's coldest summer in decades has dampened the mood for Christmas shopping and led to plummeting profits for swimwear and clothing stores.

Several clothing and department store chains have cut prices or closed outlets and shares in surfwear company Billabong today fell to a record low. The company said its profit could fall by as much as 26 per cent.

The unseasonal damp cool conditions – including the coldest start in Sydney since 1960 – has been blamed for a slump in Christmas shopping and big falls in sales of clothing and shoes.

"Clothing retailers are still doing it fairly tough out there," said Russell Zimmerman, from The Australian Retailers Association. "The weather has been too cold for them – they need that really good run of hot weather and they haven't seen it."

The rain and cold, blamed on the La Nina [sic] [La Niña] weather cycle, has affected much of Australia's eastern seaboard. Two weeks ago, the city of Brisbane recorded its coldest December day for 123 years.

The poor weather has forced stores to heavily discount of swimwear and summer clothing, with the big department store chain David Jones dropping prices by 30 per cent. » | Jonathan Pearlman, Sydney | Monday, December 19, 2011

2011-12-19T19:58:00.001Z

Saab Files for Bankruptcy after GM Veto
THE GUARDIAN: Swedish carmaker's owner admits defeat after former parent General Motors blocked a rescue deal involving a Chinese firm

Sweden's Saab faced an end to more than 60 years of carmaking on Monday after its Dutch owner abandoned repeated attempts to find financing and filed for its bankruptcy.

The end to months of efforts to keep the famed carmaker afloat came when General Motors at the weekend again vetoed a plan involving Chinese investor Zhejiang Youngman Lotus Automobile. GM, Saab's former owner, still licences key technology to Saab and has a small shareholding. » | Reuters | Monday, December 19, 2011

2011-12-19T19:51:00.000Z

Twitter Stake Bought by Saudi Billionaire
THE GUARDIAN: Saudi billionaire Prince Alwaleed bin Talal has taken a $300m stake in Twitter

Saudi billionaire Prince Alwaleed bin Talal, the second-largest investor in Rupert Murdoch's News Corporation, has taken a $300m (£193m) stake in Twitter.

Alwaleed, who has a net worth estimated to be just below $20bn, has taken the stake in conjunction with his Kingdom Holding Company investment firm.

Applying an $8bn valuation figure for Twitter used by some analysts, the investment amounts to a 3.75% stake.

In a statement, Kingdom Holding said that the investment was "the result of several months of negotiations and comprehensive due diligence". » | Mark Sweney | Monday, December 19, 2011

2011-12-18T18:25:00.000Z

France Avoids Downgrade

2011-12-18T17:11:00.000Z

Steigende Armut in Griechenland
Rund 20 Prozent mehr Obdachlose in der Hauptstadt Athen

NZZ ONLINE: Wegen der Finanz- und Wirtschaftskrise leben im hoch verschuldeten Griechenland nach Angaben von Politikern und Sozialverbänden immer mehr Menschen in Arbeitslosigkeit und Armut.

Griechenland ist mit einer steigenden Armut konfrontiert. In der Hauptstadt Athen sei die Zahl der Obdachlosen im Jahr 2011 um 20 Prozent gestiegen, zitiert die Tageszeitung «Ethnos» in ihrer Samstagsausgabe Bürgermeister Giorgos Kaminis. Auch in den Suppenküchen der Stadt habe die Nachfrage um 15 Prozent zugenommen. Angesichts der Lage forderte Kaminis mehr finanzielle Hilfen des Staates. » | sda | Samstag 17. Dezember 2011

2011-12-18T04:41:00.000Z

Australian PM Criticised for Pay Increase to Double David Cameron's Wage

THE DAILY TELEGRAPH: Australian politicians are under fire for handing themselves hefty pay rises which will result in Julia Gillard earning more than David Cameron and Barack Obama.

The pay increases of up to 64 per cent – described by newspapers as a "Canberra goldrush" – were awarded to compensate MPs for extra workloads due to social network sites such as Facebook and Twitter.

Ms Gillard's salary will increase 31 per cent to about £320,000, while the Opposition leader, Tony Abbott, will get £228,000. Some shadow ministers will receive rises of up to 64 per cent, with salaries of £154,000, while ordinary back-benchers will receive about £120,000.

In contrast, Mr Cameron receives £142,500 a year and Mr Obama receives the equivalent of £255,000. The decision of the MPs to accept the rises prompted public outrage, with national unemployment rising despite the mining boom. The increases are more than 10 times the annual 3 per cent indexation handed to most earners. » | Jonathan Pearlman, in Sydney | Thursday, December 15, 2011

2011-12-17T20:20:00.002Z

Norman Lamont: Eurozone Is in Denial
BBC: Consevative former chancellor Lord Norman Lamont has told the BBC that the eurozone countries are "in a state of denial", and need to act more quickly to resolve the debt crisis.

Mr Lamont was giving his view of how the eurozone should respond to claims from the credit ratings agency Fitch that it is considering a downgrade of six countries, including Italy and Spain.

Fitch says it has concluded that a solution in the eurozone is "beyond reach". Watch BBC video » | Saturday, December 17, 2011

2011-12-17T18:28:00.002Z

Druck auf Euro-Zone: Ratingagentur Moody's stuft Belgien herab

KRONE: Wegen der Schuldenkrise in Europa hat die Ratingagentur Moody's die Kreditwürdigkeit Belgiens herabgestuft. Moody's begründete den Schritt am Freitag mit der Tatsache, dass es Euro-Ländern mit einem relativ hohen Schuldenstand wie Belgien zunehmend schwer falle, sich an den Märkten Geld zu beschaffen. Kurz zuvor hatte bereits die Konkurrenzagentur Fitch einer Reihe von Euro-Staaten mit einer Senkung ihrer Bonitätsnote gedroht, damit wächst der Druck auf die Euro-Zone weiter.

In der vergangenen Woche hatte bereits Standard & Poor's damit gedroht, die Ratings fast aller Euro-Mitglieder zu senken. Nun preschte Moody's vor und senkte die Note für Belgien um zwei Stufen auf "Aa3". Zudem setzte die Agentur den Ausblick auf "negativ". Damit könnte eine weitere Herabstufung Belgiens binnen zwei Jahren folgen. Die belgische Regierung lehnte eine Stellungnahme zu dem Downgrade ab. » | AG/red | Samstag 17. Dezember 2011

2011-12-17T00:29:00.000Z

Guardian to Axe Supplements and Shrink Newspaper

THE DAILY TELEGRAPH: Guardian News & Media is to shrink the Guardian, axe its Film & Music supplement, and reduce its sport supplement to a two-days-a-week publication as it battles to stem pre-tax losses of more than £40m a year.

It will also reduce the number of pages in the Guardian’s flagship supplement G2, under wide-ranging changes to be introduced in January.

The media group, which also publishes the Observer newspaper, is briefing staff about the changes today and early next week.

“As part of our digital first strategy, we have been looking in detail at how we produce our newspapers and website, and over the next few days we will be telling staff about our plans for a new, simplified production process,” a spokesman said.

“This will be introduced in January, along with some changes to the printed Monday to Friday Guardian. The changes to the paper take account of changing patterns of readership and advertising and are based on research with our readers.” » | Katherine Rushton, Media, telecoms and technology editor | Friday, December 16, 2011

2011-12-16T22:13:00.000Z

Are We Really Heading for a Second Great Depression?

GUARDIAN – ECONOMICS BLOG: IMF chief Christine Lagarde is right to be worried about potential economic doomsday scenarios – but the Europe of 2011 is very different from that of the 1930s

Soup kitchens. Dole queues. Jarrow marches. Bank failures. Trade wars. Falling prices. Desperate poverty. Dust bowls. Fascism. The long descent into war.

That was the 1930s, and it was the world conjured up by Christine Lagarde, the managing director of the International Monetary Fund on Thursday night.

A failure of the international community to co-operate to sort out Europe's sovereign debt crisis risked, she said, "retraction, rising protectionism and isolation. This is exactly the description of what happened in the 1930s and what followed is not something we are looking forward to."

Clearly not. But is Lagarde right? Are we really heading inexorably into a second Great Depression? Or is the head of the IMF, unwisely perhaps, making us all feel more depressed than we need to be?

There are certainly reasons to be concerned about the state of the world.

To the extent that a depression can be defined as a prolonged period of sub-trend growth, then what we have experienced since 2008 has been a depression.

Many countries – including Britain – have struggled to recover from the collapse of asset-price bubbles – and now face the prospect of double-dip recessions. Read on and comment » | Larry Elliott, economics editor | Friday, December 16, 2011

2011-12-16T21:51:00.001Z

Greeks Fearing Collapse of Eurozone Bailout Pulled Record Sums from Bank[s]

THE GUARDIAN: Bank of Greece reveals that investors fearful of political instability and economic collapse pulled €12.3bn from local banks as Papandreou referendum threatened debt deal

An unprecedented exodus of capital from Greece – peaking in a record number of withdrawals from banks in recent months – has exacerbated the liquidity crisis now wracking the recession-hit country.

The latest figures released by the Bank of Greece reveal that in September and October alone investors pulled €12.3bn (£10.3bn) from domestic banks, spurred by fears of political uncertainty and economic collapse.

Overall, outflows have reached a record 25% since September 2009 – when household and corporate deposits stood at a peak of €237.5bn, the data showed.

Theodore Pelagidis, an economics professor at the University of Piraeus, said: "This is part of the death spiral of the recession as a result of austerity measures. People realise that contagion has come to banks and they are very afraid of losing their deposits. On average around €4bn-€5bn in capital flees the banking system every month."

The extraordinary figures back up anecdotal evidence that it is not just the super-rich behind the flight of funds.

Over the past year, as the eurozone debt crisis has intensified in the nation where it largely began, there have been countless cases of ordinary depositors hauling suitcases stuffed with cash to the safer destinations of Cyprus, London and Switzerland. » | Helena Smith in Athens | Friday, December 16, 2011

2011-12-16T19:23:00.000Z

Fitch place le triple A français sous surveillance négative

LE FIGARO: Après son homologue Standard & Poor's, l'agence de notation abaisse à «négative» la perspective de la note du pays tout en maintenant le triple A. Les notes de six autres pays sont directement menacées.

Fitch Ratings brandit à son tour la menace d'une dégradation de la note de la France. Après Standard & Poor's, qui a placé sous surveillance négative la notation de 15 États de la zone euro au début du mois, l'agence de notation annonce ce vendredi qu'elle a abaissé à «négative» contre «stable» auparavant la note de la dette à long terme de la France, tout en maintenant la note de «AAA», la meilleure possible. «La perspective négative indique qu'il y a un peu plus de 50% de chance d'un abaissement de la note d'ici à deux ans», précise l'agence de notation.

«En comparaison à d'autres membres de la zone euro notés AAA, la France est selon le jugement de Fitch la plus exposée à une intensification de la crise», estime l'agence, en raison de «son déficit budgtéraire structurel plus important et un poids de la dette plus grand par rapport» aux autres pays bénéficiant du triple A. «L'intensification de la crise de la zone euro depuis juillet constitue un choc négatif et significatif pour la région et pour l'économie de la France et la stabilité de son secteur financier», souligne Fitch. «En dépit des mesures fiscales additionnelles annoncées en août et novembre», «de nouvelles mesures devraient être nécessaires pour ramener le déficit en-dessous de 3% du PIB en 2013 et stabiliser la dette du gouvernement en dessous de 90% du PIB, étant donné la dégradation du contexte économique et financier», est-il souligné. » | Par Hayat Gazzane | vendredi 14 décembre 2011

2011-12-15T22:47:00.002Z

So verteidigte Merkel die EU-Beschlüsse

2011-12-15T22:28:00.001Z

IMF Warns That World Risks Sliding into a 1930s-style Slump

THE GUARDIAN: Christine Lagarde calls for global unity to tackle financial crisis as French launch verbal broadsides at David Cameron and UK

The world risks sliding into a 1930s-style slump unless countries settle their differences and work together to tackle Europe's deepening debt crisis, the head of the International Monetary Fund has warned.

On a day that saw an escalation in the tit-for-tat trade battle betweenChina and the United States and a deepening of the diplomatic rift between Britain and France, Christine Lagarde issued her strongest warning yet about the health of the global economy and said if the international community failed to co-operate the risk was of "retraction, rising protectionism, isolation".

She added: "This is exactly the description of what happened in the '30s and what followed is not something we are looking forward to."

The IMF managing director's call came amid growing concern that 2012 will see Europe slide into a double-dip recession, with knock-on effects for the rest of the global economy. "The world economic outlook at the moment is not particularly rosy. It is quite gloomy," she said. » | Larry Elliott, Heather Stewart and Nicholas Watt | Thursday, December 15, 2011

To call what happened in the 1930s a “slump” is a bit of a stretch and a misnomer, to say the least. The 1930s was characterized by a 'full-on' depression. The terms “slump” and “double-dip” are far too mild to describe the dire economic situation experienced during that period in history. The IMF and these politicians need to get their facts straight. – © Mark

2011-12-15T16:42:00.000Z

UK 'Should Be Downgraded' Before France, Says ECB's Christian Noyer

THE DAILY TELEGRAPH: Britain should have its AAA credit rating [downgraded] before France, according to Christian Noyer, head of the French central bank, as the war of words between the two countries heats up following David Cameron's EU treaty veto.

A downgrade of France's AAA rating would not be justified and the ratings agencies are making decisions based more on politics than economics, said Christian Noyer, who is a European Central Bank policymaker as well as head of the Banque de France.

Standard and Poor's is due to decide whether or not to downgrade eurozone countries in the coming days following an EU agreement on Friday to forge tougher fiscal rules.

"The downgrade does not appear to me to be justified when considering economic fundamentals," Mr Noyer said in an interview with local newspaper Le Telegramme [sic] de Brest.

"Otherwise, they should start by downgrading Britain which has more deficits, as much debt, more inflation, less growth than us and where credit is slumping," he went on. » | Agencies | Thursday, December 15, 2011

2011-12-15T14:59:00.000Z

West Seeks Saudi Arabia's Help on Iran Oil Sanctions

LOS ANGELES TIMES: The U.S. and its allies hope the kingdom will boost output to prevent oil prices from climbing as they pressure Iran on its nuclear program.

Reporting from Washington — In a new effort to persuadeIran to halt its nuclear program, the Obama administration and its European allies are asking Saudi Arabia to help them squeeze Iran's vital oil sector without driving up world energy prices and damaging the global economy.

Officials in the United States, France, Britain and other countries have been lobbying the Saudis in recent weeks to produce billions more barrels of oil to provide an alternative source for buyers of Iranian oil.

The goal is to keep global prices stable while cutting Iran's ability to sell oil on world markets. The move would come as Western governments add more sanctions to dissuade international customers from buying from Iran, now the world's fourth-largest oil exporter.

A Western official said the Saudis have become "the great hope" for enabling the West to avoid an oil price increase while pressuring Iran to abandon its nuclear development program. U.S. officials say Tehran is fast approaching the ability to build a nuclear weapon. Iran says it is enriching uranium to generate electricity in power plants. » | Paul Richter, Los Angeles | Tuesday, December 13, 2011

2011-12-15T14:25:00.002Z

Gold Fades as Greenback Firms
WA TODAY: Gold fell below $US1,600 an ounce for the first time since October as a stronger dollar curbed demand for the metal as an alternative asset. Silver, platinum and palladium also slumped.

The dollar rose to an 11-month high against the euro on signs of increased funding stress as Europe battles to tame its debt crisis. Gold is poised to close below its 200-day moving average today, signaling prices may drop to $US1,400, according to Stifel Nicolaus & Co. The value of a 100-ounce futures contract traded in New York dropped by more than the $US8,500 maintenance- margin requirement today, potentially prompting margin calls. » | Bloomberg | Thursday, December 15, 2011

2011-12-14T23:01:00.000Z

Meet the New 1%: Healthcare CEOs Replace Bankers as America's Best Paid

THE GUARDIAN: No bankers in top 10 of America's best-paid executives, but those in charge of healthcare and drugs firms are in the money

Pity Wall Street's bankers. Once the highest-paid bosses in the land, they are now also-rans. The real money is in healthcare and drugs,according to the latest survey of executive pay.

There are no bankers in the top 10 of this year's GMI survey of CEO pay. In fact, they have been out since 2007, when Goldman Sachs boss Lloyd Blankfein competed for the top slot with Richard Fuld, boss of soon-to-be-bust Lehman Brothers, and Angelo Morzillo, head of Countrywide, once the largest sub-prime home loan firm.

With the bankers still recovering from their tussle with hubris, old age and infirmity were 2010's boom businesses – at least in terms of pay. Leading the pack was John Hammergren, chief executive of McKesson Corporation. The firm's 52-year-old chairman, chief executive and president took home $145,266,971 in 2010. » | Dominic Rushe | Wednesday, December 14, 2011

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