Salzburg Resists 'Sound of Music' Hotel
AUSTRIAN TIMES: Salzburg has blocked plans to turn the original von Trapp family villa fame portrayed in Hollywood favourite "The Sound of Music" into a hotel, according to the company behind the idea.



The 1965 film is based on the true story of how trainee nun Maria wins over Baron von Trapp and his seven children through her singing and good nature, and its fame draws hundreds of thousands of tourists to Salzburg, and the villa, each year.



But Salzburg's planning council is standing in the way of the hotel project because residents are worried the city, close to Austria's idyllic Alps, will be overrun by more tourists, according to the Villa Trapp company.



"Salzburg bites the hand that feeds its tourism," the developer said in a statement on Wednesday.



"It could be thought madness that a new tourism venture is being blocked when global financial problems could result in far fewer tourists for Salzburg," it said. >>> | December 5, 2008

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Deflation Is Fast Approaching
THE TELEGRAPH: Deflation is on its way even sooner than we originally thought - along with all the things that entails: interest rates at or close to zero, growing disquiet about becoming trapped in economic depression, the Bank of England forced to take drastic measures to put money into peoples' pockets.

The producer prices figure released by the Office for National Statistics this morning shine the light on just how virulent the recession is becoming. The cost of manufacturers' raw materials has fallen by 3.3pc in the past month alone, and with oil and commodity prices dropping like a stone it will fall even further in the coming months. >>> Edmund Conway | December 8, 2008

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Böses Omen für Schweizer Banken: Liechtenstein wird den USA Amtshilfe bei Steuerhinterziehung gewähren
NZZ am Sonntag: Das Fürstentum macht weitgehende Konzessionen beim Bankgeheimnis, weil seine Banken eine Verlängerung eines wichtigen Abkommens mit den USA benötigen. Die Schweiz könnte in dieselbe Lage geraten.

Am Montag will das Fürstentum Liechtenstein ein Steuerabkommen mit den USA unterzeichnen, das die bisherige Politik des Ländles auf den Kopf stellt. «Auf Anfrage werden bei Steuerdelikten – also auch Steuerhinterziehung – Informationen zur Verfügung gestellt, sofern die Anfrage auf einem begründeten Verdacht basiert», sagt Gerlinde Manz-Christ, die Regierungssprecherin des Ländles.

Damit geht das Fürstentum deutlich über die Zusammenarbeit in Steuerfragen hinaus, welche die Schweiz den USA anbietet. Das Doppelbesteuerungsabkommen USA-Schweiz sieht lediglich Hilfe in Fällen von Steuerbetrug vor, nicht aber beim weit häufigeren Tatbestand der Steuerhinterziehung. Das jetzige Abkommen sei das Resultat von über zwei Jahre dauernden Verhandlungen, sagt Manz-Christ. «Für die Umsetzung wird Liechtenstein nächstes Jahr die nötigen gesetzlichen Grundlagen schaffen.» >>> Markus Städeli | 7. Dezember 2008

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Amérique centrale: une monnaie unique contre la crise
LE FIGARO: Pour faire face à la crise économique mondiale, les présidents des pays d'Amérique centrale et le gouvernement de la République Dominicaine, sont convenus vendredi d'adopter une monnaie unique. Ni le nom de la future monnaie, ni la date à laquelle elle entrera en circulation n'ont cependant été précisés.

Cet accord pour une monnaie unique constitue un des éléments d'un «Plan de mesures urgentes» pour «amortir l'impact régional de la crise financière internationale», énoncées dans une déclaration en 41 points signée à San Pedro Sula, la deuxième ville du Honduras, qui accueillait ce 33e sommet. Ce Plan prévoit notamment «la création d'un fonds commun de crédit, économique et financier, pour le développement de la région dans le contexte des négociations Amérique centrale-Union européenne». >>> L.S (lefigaro.fr) avec AFP | Samedi 06 Décembre 2008

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Obama will in Amerika investieren: Grösstes Infrastrukturprogramm seit 50 Jahren angekündet
NZZ Online: Der künftige amerikanische Präsident Barack Obama hat am Samstag in einer Radioansprache die grösste Investition in die Infrastruktur des Landes seit 50 Jahren angekündigt.

(sda) Obama will mit Beginn seiner Präsidentschaft Anfang 2009 Schulen und Spitäler modernisieren, die Breitband-Internet-Verkabelung ausbauen und öffentliche Gebäude energiesparend einrichten. Einschliesslich Investitionen in den Strassen- und Brückenbau sollen so 2,5 Millionen Arbeitsplätze gesichert oder neu geschaffen werden.

Dass die USA bei der Breitband-Verkabelung nur den 15.Platz belegten, sei «nicht hinnehmbar», sagte Obama. «In diesem Land, welches das Internet erfunden hat, sollte jedes Kind online gehen können.» Als Präsident werde er dafür sorgen, dass «die Wettbewerbsfähigkeit Amerikas gestärkt wird». >>> | 6. Dezember 2008

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Casse du siècle chez le bijoutier des rois!
Photo de la célèbre joaillerie-bijouterie Harry Winston grâce aux Google Images
TRIBUNE DE GENÈVE: BRAQUAGE | Quatre braqueurs armés et déguisés ont raflé pour 85 millions d’euros de bijoux chez Harry Winston à Paris. Ce hold-up record a été minutieusement préparé par des «pros» qui sont toujours en fuite. Parmi les suspects: les «Pink Panthers». Ces ex-soldats des guerres balkaniques sont bien connus en Suisse.

Devant la porte, une Rolls immatriculée à Genève et stationnée en deuxième position. A droite, le palace Plaza-Athénée, à gauche Max Mara, en face Louis Vuitton et Fendi. La célèbre joaillerie-bijouterie Harry Winston est bien entourée et figure en belle place parmi les joyaux de cette artère grand luxe de Paris, l’avenue Montaigne.

Cette artère vient de subir une sacrée hémorragie de diams! Quatre braqueurs ont attaqué la bijouterie Harry Winston et y ont emporté pour 85 millions d’euros de bijoux. Soit plus de 131 millions de nos francs.

Déguisés en femmes

C’est le casse du siècle chez celui que l’on surnomme «le prince des bijoutiers et le bijoutier des rois». Il y a un an, presque jour pour jour, cette même bijouterie avait déjà subi un hold-up dont le préjudice était estimé à 10 millions d’euros. Une récompense de 500 000 dollars avait été offerte par l’assureur pour retrouver les bijoux volés. En vain.

Jeudi après-midi, les quatre gangsters procèdent aux ultimes réglages. Trois d’entre eux enfilent robes et jupes, se maquillent afin de ressembler à de belles touristes et se mettent des perruques féminines. Le quatrième reste habillé en homme. >>> Jean-Noël Cuénod | Samedi 06 Décembre 2008

RADIO SUISSE ROMANDE: Podcast:
Paris: le casse du siècle ! >>> Vendredi 05 Décembre 2008

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From Berlin to Beijing, Chancellors and Presidents Feel the Strain
THE GUARDIAN: The deepening world recession has dented prospects for many of the world's leaders trying to contain the financial fallout

The financial crisis has already changed the face of the political world. It decisively tipped the US election in Barack Obama's favour, tarnishing John McCain with the brush of Republican economic mismanagement. It brought Gordon Brown back from the political dead, making him appear statesmanlike, assured. It helped Nicolas Sarkozy turn his approval ratings round, as he too sought to offer crisis leadership and this week produced a package heavily larded with populist measures. A handful of other leaders around the world are having a "good" crisis, most notably Brazil's President Luiz Inácio Lula da Silva, another economic populist, who is basking in 70% approval ratings.

But across much of the world, it has been hard to avoid one of the intractable laws of politics - when the economy goes south, the people in charge get the blame. Canada's prime minister, Stephen Harper, is feeling the pain most acutely this week, but just about everyone running a substantial economy anywhere must now be worrying about their own job security. That goes too for those untroubled by the necessity of holding elections. Popular wrath has other ways of making itself felt. >>> Julian Borger | December 6, 2008

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BAE Accused of £100m Secret Payments to Seal South Africa Arms Deal
THE GUARDIAN: More than £100m was secretly paid by the arms company BAE to sell warplanes to South Africa, according to allegations in a detailed police dossier seen by the Guardian yesterday.

The leaked evidence from South African police and the British Serious Fraud Office quotes a BAE agent recommending "financially incentivising" politicians.

In the arms deal, the new ANC government in South Africa agreed to spend a controversial £1.6bn buying fleets of Hawk and Gripen warplanes.

Critics said the country, beset by unemployment and HIV/Aids, could not afford it. The Hawks, rejected by the military, cost twice as much as Italian equivalents.

But the then South African defence minister Joe Modise and a key official, Chippy Shaik, insisted on the purchase.

BAE is accused in the reports of corrupt relationships with an arms tycoon, John Bredenkamp, recently blacklisted in the US for his links with Robert Mugabe of Zimbabwe. Bredenkamp's blacklisting freezes his assets in the US.

BAE's former marketing director for southern Africa, Allan McDonald, has been speaking to police, the leaked files say. He allegedly told them Bredenkamp "gave progress reports directly to Mike Turner". Turner, who has been interviewed under caution by the SFO, stepped down last year as BAE's chief executive.

Bredenkamp-linked companies were paid £40m by BAE to promote the arms deal. According to McDonald, "Bredenkamp suggested identifying the key decision-makers, with a view to 'financially incentivising them' to make the right decision". >>> David Leigh and Rob Evans | December 6, 2008

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Rezession trifft US-Arbeitsmarkt mit voller Wucht
WELT ONLINE: Die Lage auf dem US-Arbeitsmarkt spitzt sich dramatisch zu: Die Arbeitslosenrate stieg im Oktober auf 6,7 Prozent im November – und damit auf den höchsten Stand seit 15 Jahren. Arbeitgeber strichen 533.000 Jobs. Experten sind bestürzt: Mit einem derartigen Kahlschlag hatte niemand gerechnet.

Die Rezession schlägt mit voller Wucht auf den amerikanischen Arbeitsmarkt durch. Die Arbeitslosigkeit erreichte im November den höchsten Stand seit 15 Jahren. Die Unternehmen strichen mehr als eine halbe Millionen Stellen und damit so viele wie seit 34 Jahren nicht mehr. Experten sagen der weltgrößten Volkswirtschaft eine lange Rezession mit weiteren Jobverlusten voraus. Der künftige US-Präsident Barack Obama bekräftigte, es gebe keine schnellen oder einfachen Lösungen für diese Krise, die sich über viele Jahre entwickelt habe. Es sei zudem wahrscheinlich, dass sich die Lage vor einer Entspannung erst noch verschlimmern werde. >>> | 5. Dezember 2008

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BMW Sales Dip More Than a Quarter
BMW logo courtesy of Google Images
BBC: German carmaker BMW has seen its global monthly sales fall by more than a quarter, as consumers tighten their belts amid the economic slowdown.

BMW brand sales fell 26.2% in November from the same month a year ago, said the firm, while sales of its UK-based Mini subsidiary declined 20.8%.

The firm has already said its Mini plant in Oxford will close on Friday for an extended Christmas shutdown.

It is closing the factory for four weeks instead of the usual two.

November sales at BMW's luxury Rolls-Royce arm were down 18.5%.

For the whole BMW group, sales fell 25.4% to 96,570 in November, compared with a much slower decrease of 8.3% to 113,005 in October. >>> | December 5, 2008

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Sweden's Sharia Pension Fund Outperforms Market
THE LOCAL (SWEDEN): A Swedish pension fund that abides by Sharia laws has outperformed the Stockholm stock exchange since its launch in October.

The Sharia fund, a part of the Premium Pension Authority's (PPM) fund system, was conceived to give Muslims a chance to have their retirement money grow without being placed in stocks which earned money by charging interest.

As such, the fund doesn’t invest in financial stocks and has thus avoided many of the losses suffered by other investors during the recent financial crisis. >>> | December 5, 2008

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Rates Cut Again as Recession Deepens
TIMESONLINE: Cost of borrowing lowest in more than 50 years

The economy is plunging deeper into recession despite emergency tax cuts and the multibillion-pound bank bailout, the Bank of England said yesterday.

Cutting the base rate to its lowest level in more than 50 years, the Bank said the outlook now was worse than a month ago, with manufacturing and consumer spending in sharp decline.

The one-point cut left the base rate at 2 per cent, its lowest since 1951, but economists are forecasting already that the cost of borrowing could fall further, with a base rate of zero per cent no longer out of the question. The Bank’s dramatic move followed a relentless stream of dire economic news over the past four weeks that has fuelled fears that Britain’s plight will be worse than the recession of the early 1990s.

The Bank, which cut rates by 1.5 percentage points in November, acknowledged the risk of a deep, prolonged recession yesterday. It conceded that more will need to be done to jump-start stalled growth, and paved the way for further rate cuts. In a bleak assessment, it said: “Business surveys have weakened further and suggest that the downturn has gathered pace. Consumer spending and business investment have stalled.” >>> Gary Duncan, Philip Webster, Gráinne Gilmore | December 5, 2008

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Keeping the Faith
TIMESONLINE: Islamic finance principles may be a thousand years old but they have attracted the attention of the West only recently. Now business schools are offering specialist masters programmes on the subject

While the world’s financial systems are shaken to their foundations, global stock markets tumble and thousands of bankers are made redundant, one area of finance goes from strength to strength.

Islamic banking and finance principles may be a thousand years old but they have attracted the attention of Western financial services companies only recently. Now business schools are offering specialist masters programmes on the subject.

Islamic banking and finance must comply with Islamic law, or Sharia. This is governed by a number of fundamental principles and prohibitions and there are many differences from conventional finance.

“There is the absolute prohibition on the charging of interest,” says John Board, director of the International Capital Market Association (ICMA) Centre, part of Henley Business School at Reading University. ICMA runs an MSc in investment banking and Islamic finance, taught jointly with the International Centre for Education in Islamic Finance in Kuala Lumpur. “This leads to the question: how do you raise money in a way that is commercially sensible but does not involve paying interest?

“And on the investment side, there is a range of prohibited activities. For example, Islamic investors may not invest in businesses that trade in alcohol or pork-related products, or are involved in certain types of entertainment.”

Other restrictions include not being able to sell something unless you own it, or to invest in companies with high levels of debt. Taking all the restrictions into account, many conventional financial products, such as deposit accounts, mortgages, credit cards, insurance, bonds and many derivatives, such as futures and options, are out of bounds to Islamic investors.

Until recently, certainly in non- Islamic countries, there was little on offer for people who wanted Sharia-compliant banking and finance. However, substantial growth in this market over the past five to ten years, partly driven by Middle Eastern countries investing oil revenues, means more institutions are beginning to offer appropriate products and services. Islamic assets under management are about £400 billion, according to the Islamic Financial Services Board, an industry body.

Today Islamic finance and banking touches everything from large capital infrastructure projects to retail banking. HSBC in the UK, for example, has Sharia-compliant bank accounts and mortgages. And the increase in Islamic finance activity means there is a need for postgraduates with knowledge in this area. “There is a big demand for Islamic finance as a professional activity,” Board says. >>> Steve Coomber | December 3, 2008

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Interest Rates Cut: Bank of England Cuts Rates from 3 per Cent to 2 per Cent
THE TELEGRAPH: The Bank of England has cut UK interest rates from 3 per cent to 2 per cent, the lowest level since 1951 in an attempt to stop the economy sliding into a deep recession.


Rates have never been any lower since the Bank's foundation in 1694.
The aggressive move, which most economists had forecast, comes as a raft of data shows the state of the economy is worsening by the day.

Earlier today, Halifax, the country's largest lender said that house prices had fallen by 2.6 per cent in the last month alone, and have now lost more than £37,000 from their peak last summer.

Two important manufacturing and services surveys this week have shown factories and businesses are feeling the squeeze, while The Pier furniture chain became the latest retailer to collapse into administration.

Economists welcomed the move, saying it was the bare minimum required.

Hetal Mehta, Senior Economist from the Ernst & Young ITEM Club, said: "You could almost hear the sigh of relief up and down the country when the Bank of England's Monetary Policy Committee announced a 100 basis point cut in the base rate.

"As was the case last month, it was almost certain that interest rates would be slashed, but the big question was by how much. ITEM believes that the MPC was right to cut the base rate of interest to 2 per cent – anything less would have been a missed opportunity."

The move will save anyone on a £200,000 tracker-rate repayment mortgage just over £100 a month. Someone on an interest-only mortgage would save even more. >>> By Harry Wallop, Consumer Affairs Editor | December 4, 2008

THE TELEGRAPH: World Stability Hangs by a Thread as Economies Continue to Unravel

The political bubble is bursting. Spreads on geo-strategic risk are now widening as dramatically as the spreads on financial risk at the onset of the credit crunch.

Whether it is the Indian rupee, the Shanghai bourse, or Kremlin debt, the stars of the credit boom have fallen to earth. Investors are retreating into 3-month US Treasury bills – the ultimate safe-haven. The yield has fallen to 0.02pc, less than zero after costs. You pay Washington to guard your money.

The working assumption of the "Great Boom" is – or was – that we live in a benign era where most societies are converging towards some form of market liberalism; where trade and capital flows are unrestricted; where governments have enough legitimacy to keep order by light touch; where a major war is unthinkable.

This illusion is now being tested. >>> By Ambrose Evans-Pritchard | December 1, 2008

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Credit Suisse streicht 5300 Stellen: Verlust von 3 Milliarden Franken im vierten Quartal
NZZ Online: Die Grossbank Credit Suisse streicht als Folge der Finanzkrise weltweit 5300 Stellen. Der Abbau entspricht elf Prozent des Personalbestands und soll vor allem im Investment Banking vollzogen werden. Im vierten Quartal rechnet die CS mit einem Nettoverlust von rund drei Milliarden Franken. >>> | 4. Dezember 2008

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State Opening of Parliament: ‘Economy Is Overriding Priority’
Watch BBC video: State Opening of Parliament: Live coverage >>> | December 3, 2008
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Premium Bond Winners Fall as Interest Cut Hits Popular Saving Product
THE TELEGRAPH: Premium bonds, one of the country's most popular savings products, have been hit by the Bank of England slashing interest rates.

New figures showed that there were just two winners for the £25,000 monthly prize, compared to 19 in November and 78 in December last year.

The total prize fund has also been slashed, although there remain two £1 million jackpot prize winners each month.

National Savings & Investments runs the scheme, and will be expected to cut the fund further if the bank rate drops as predicted on Thursday from 3 per cent to possibly as low as 2 per cent.

The sharp cuts in the bank rate in recent months has hit hard the number of winners that NS&I can name.

In cash terms, the total prize fund fell from £89 million in November to £58 million in December, with the number of prizes dropping from 1.56 million to 1.07 million in the same period. >>> By Harry Wallop | December 2, 2008

THE TELEGRAPH: Savers Make a Dash for Premium Bonds

Money is flooding into National Savings as investors seek a safe haven for their cash.

Billions of pounds is being invested in National Savings Premium Bonds as investors seek safe havens for their cash. NS&I has confirmed money has poured through their doors during July, August and September at considerably higher levels than the £4 billion typical quarterly inflow. It expects the next figures, due to be published later this month, will show a significant boost on the £86 billion it was safeguarding for investors at the end of June. It said that half of all new money is being invested in Premium Bonds.

As confidence in banks continues to be jittery, the public, it seems, is putting its trust in the unlikely prospect of a default by UK Plc. But not only are NS&I savings backed by the Government, many are tax-free, which makes them particularly appealing to higher rate taxpayers.

Their headline returns may not look exciting, but some start to sparkle when tax is added to the equation. For example, the best returns which can currently be earned in a bank or building society are around 7 per cent. This falls to 4.2 per cent for a higher rate taxpayer after tax, and to 5.6 per cent for a standard rate payer, which scarcely sets the pulse racing, with inflation soaring ahead at 4.8 per cent. >>> By Teresa Hunter | October 2, 2008

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Germans Refuse to Spend 'Senseless' Billions on Recovery
THE TELEGRAPH: German Chancellor Angela Merkel has said Germany will not get into a "senseless" race to throw billions into economic recovery plans.

Staring down critics among her own ranks, Mrs Merkel told her party's annual conference in Stuttgart the world needed a long-term vision – including greater global economic regulation – rather than quick fixes that would burden taxpayers.

"A bidding war ... a senseless race for billions – we won't take part in that," she said.

Germany, Europe's largest economy and the world's biggest exporter, is officially in recession and Mrs Merkel has come under fierce pressure to take bolder steps to spark growth, particularly by cutting taxes.

Although Germany has committed 12 billion over two years to a national package and will contribute to the EU's 200 million package, many analysts say Mrs Merkel is sticking too rigidly to her country's culturally ingrained fiscal conservatism. >>> David Wroe Berlin | December 1, 2008

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Islamic Finance Sector Needs More Sharia Scholars
THE GUARDIAN: PARIS (Reuters) - As the world financial industry sheds jobs by the tens of thousands, the $1 trillion Islamic banking sector has a growing load of work for sharia scholars but few candidates coming forward to do it.

Experts steeped in the Muslim scriptures are critical to Islamic finance, which requires a religious stamp of approval before a bond, mortgage contract or other financial product can be marketed as moral according to the standards of the Koran.

But qualifying for this work takes much more time and effort than other jobs in finance require. Candidates must first study Islamic law or sharia for many years, and then master finance.

"Globally, and especially in Europe and America, there is a shortage of scholars familiar with both fields," said Mufti Abdul Kadir Barkatulla, an Indian-born imam in London who sits on sharia boards for six banks including Lloyds TSB.

"A few scholars are going around the world (advising banks) and new scholars are not being trained fast enough to take their place," he said at an Islamic finance conference in Paris.

Part of the problem is linguistic. Many Middle Eastern scholars work only in Arabic, the language of Islam, but the global market needs scholars fluent both in Arabic and in languages such as English or French.

A study for Paris Europlace, an industry group trying to develop Islamic banking in France, said there were fewer than 100 scholars in the world qualified to sit on sharia boards.

Demand for Islamic banking has grown in recent years and expanded from the Middle East as more of the world's 1.3 million Muslims seek investments that comply with their faith. >>> By Tom Heneghan, Religion Editor | December 1, 2008

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The Party’s Over in Dubai
TIMESONLINE: Local banks are in trouble and property prices have crashed. Is the bubble about to burst?

Lorna Davidson and her husband Mike gave up Leicester for Dubai this summer looking for a better life. They didn’t find it. The marketing jobs they thought they had in a property firm were withdrawn the day after they arrived and they cannot find alternatives. Nor can they get a mortgage to buy a flat.

“We were told we had jobs at 25,000 dirhams (£5,000) a month and that we could get a property with a 10% deposit,” said Lorna, 24. “There are no jobs and the banks won’t lend without 40% upfront.”

It’s of little comfort to the Davidsons that they are not alone. After a few months when oil-rich Middle Eastern states seemed immune to the effects of the banking crisis and the global economic slow-down, the credit crunch has crashed on to the biscuity shores of the Gulf with the force of an economic tsunami.

With struggling local banks being bailed out, liquidity drying up, the property market transformed from a bazaar of eager buyers into a den of sellers, and the government creating a crisis committee to tackle the slump, observers are asking: is the Dubai bubble bursting?

“Confidence has collapsed,” said Mustafa Alani of the Dubai-based think tank, the Gulf Research Center. Chris Dommett of John Charcol Dubai, a mortgage advisory firm, added: “People have really begun to fear a crash.” >>> John Arlidge | November 30, 2008

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