March 23, 2011
THE GUARDIAN: Cross-party commitment to welfare means France is a good place to be old, young, sick, jobless or female
The future of social care, President Nicolas Sarkozy declared, "is a matter of such importance and gravity that ideology has no place". His opponents scoff, among them Martine Aubry, one of the frontrunners to be the Socialist party's candidate against him in the presidential elections due in 2012.
Viewed from the British side of the Channel, Sarkozy has made a striking promise to create a "new branch of the welfare state" to provide care for old people and those with disabilities. France has 1.1 million dependent old people, their numbers expected to grow by 1%-2% to the middle of the century, when the over‑85s could number 5 million.
Alarmist voices have sounded, but France has heard little of the partisan hysteria audible in Britain, where spending on care for old people has been proportionately higher than in France. Sarkozy promises to lay out a plan by this summer, in good time to give him a populist theme for the presidential campaign. (By then we ought to have sight of proposals to come from Andrew Dilnot, the Oxford economist commissioned by the Cameron government to rethink social care; they will make for a fascinating comparison.)
It's true that Sarkozy, after grandstanding on social care when he was elected in 2007, has vacillated. His latest line is that social care won't be a formal "fifth branch" of the French welfare state. Its four pillars are family benefits, health, coverage for accidents at work, and pensions. They offer relatively generous statutory entitlements, funded by insurance schemes paid for by statutory employer and employee contributions, topped up by general taxation. Instead, Sarkozy's extension of social care is to come from private insurance, some tax funding or even (this came from Laurent Hénart, the president of the national agency for personal services and a pro-Sarkozy MP) the proceeds of French workers giving up a day's leave each year. But the state will organise and underpin it.
How unlike Britain: in France, cross-party commitment to welfare runs deep, as does belief in the necessity and benignity of "l'état". Politicians on the right and the left use the word solidarité with sincerity (the National Front is statist, too, though its definitions exclude "immigrants" from the national compact). Perhaps solidarity is the modern expression of the 1789 cry for "fraternity". The Sarkozy government has a minister for solidarity and maintains the solidarity tax, only one of several payments by general taxpayers and employers levied in the name of strengthening social cohesion. On the annual journée de solidarité employees' pay is earmarked for old people's charities. Continue reading and comment » | Polly Toynbee | Tuesday, March 22, 2011
March 22, 2011
THE GUARDIAN: • Consumer price index hits 4.4% for February • Public sector net borrowing for February at £10.3bn • Hopes dashed of big cut in deficit • News increases chance of cautious budget packageGeorge Osborne was handed a double dose of unwelcome pre-budget news on Tuesday when official figures showed inflation leaping to 4.4% and public borrowing hit its highest February level since modern records began in 1993.
With the chancellor putting the finishing touches to his second package of fiscal measures, the rise in inflation put additional pressure on the Bank of England to raise interest rates while the deterioration in the public finances put paid to City hopes that borrowing in 2010-11 would significantly undershoot the government's £148bn target.
The disappointing economic news increases the chances of a cautious package from Osborne on Wednesday. The setback to the public finances gives the chancellor even less scope for budget giveaways and he will see a tough fiscal stance as necessary to prevent the Bank from raising interest rates.
Higher heating costs, the soaring price of oil and mark-ups from clothing and footwear retailers were mainly responsible for the increase in the consumer prices index measure of inflation from 4% to a 28-month high of 4.4%, according to the Office for National Statistics. » | Larry Elliott, economics editor | Tuesday, March 22, 2011
THE GUARDIAN: Inflation hits 4.4% in February: Retail prices index, which includes housing costs, hit 5.5% - its highest level since July 1991 » | Graeme Wearden | Tuesday, March 22, 2011
March 20, 2011
THE WALL STREET JOURNAL: MANAMA—Bahrain's largest trade union Sunday called for nationwide strikes to be prolonged until foreign troops are withdrawn from the kingdom and pro-government militias are disbanded, posing another threat to Bahrain's fragile economy.Speaking after a meeting of the General Federation for Bahrain Trade Unions, which represents more than 60 trade unions across Bahrain, general secretary Sayed Salman said that unions wanted to avoid causing lasting damage to the economy, but were left with no choice but to extend the general strike. He said foreign troop intervention and mounting attacks on Bahraini workers by armed government loyalists are "unacceptable."
"As of now 70% of Bahraini workers are on strike and in this situation we cannot call our people back to duty. We hope that it won't be a long time as our workers are also suffering, but we want all the militias and foreign forces to be taken off the streets...The situation here is unacceptable," Mr. Salman said in an interview.
The trade union group represents workers from across Bahrain's services and construction sectors, including Gulf Air, the national carrier, and Bapco, the island's largest oil company.
An official from the Bapco trade union said that the refinery, which has the capacity to produce more than 250,000 barrels a day of crude, has partially shut down production owing to staff shortages.
"Only 10% is working properly at BAPCO…80-85% of production and distribution is now affected," the union official said.
Bahrain's government has urged employees to return to work after days of closures and shortened hours. But the announcement of persistent large-scale strikes could aggravate the problems facing Bahrain's economy. Over a month of antigovernment protests has seen hotels and restaurants report a collapse in bookings, and fed fears about Bahrain's status as a financial center. » | Joe Parkinson | Sunday, March 20, 2011
THE WALL STREET JOURNAL: BRASILIA -- At the outset of a three-country tour of Latin America, President Barack Obama heaped huge praise on Brazil's remarkable economic rise, but received a tongue lashing in return from Brazilian President Dilma Rousseff, who criticized the U.S. loose monetary policy for contributing to "acute" global imbalances by artificially weakening the U.S. dollar.
A joint appearance by the two leaders in Brazil's futuristic presidential palace was perhaps most remarkable for the subject that barely came up: The near simultaneous launching of U.S.-backed military engagements in Libya. Near the end of his remarks, Mr. Obama said the United Nations coalition, led by France and the U.K., was ready to "act with urgency." More details weren't available from the president, since Brazil did not allow reporters to ask questions.
So, as French jets took to the air over Libya, Mr. Obama spoke mainly on economic cooperation with Brazil, joking once about his disappointment that Chicago lost the 2016 Olympics to Rio de Janeiro. Later, Mr. Obama gave more extensive statements on Libya to U.S. reporters travelling with him.
Indeed, Mr. Obama's Latin American trip, which also includes Chile and El Salvador, is certain to be overshadowed the escalating hostilities. The visit is meant to reestablish the U.S. presence as an economic partner as Brazil and other resource rich Latin nations forge closer ties with China. But even before departing, Mr. Obama was criticized for leaving the U.S. amid international turmoil and pressing domestic budget debates. » | Paulo Prada, Laura Meckler in Brasilia, Tom Murphy in San [São?] Paulo | Saturday, March 19, 2011
WIKI: Dilma Rousseff, President of Brazil »
March 19, 2011
March 17, 2011
REUTERS: Analysis: Japan heading back into recession – Japan's economy seems to be in a state of almost suspended animation as its nuclear crisis shows no sign of ending, sorely testing analysts' hopes for a swift rebound led by reconstruction efforts. » | Wayne Cole | SYDNEY | Thursday, March 17, 2011
March 16, 2011
March 15, 2011
THE DAILY TELEGRAPH: Wall Street fell 2pc on Tuesday as a global stock market sell-off intensified with investors dumping shares in a flight to safety, panicked by Japan's growing nuclear crisis.
The Dow Jones Industrial Index dropped 2.3pc - or 280 points - to 11,699.96 within minutes of opening, with shares seen as exposed to the disaster sliding. Insurer AIG fell 4pc and General Electric fell 5pc.
European bourses were dragged lower. Britain's FTSE 100 fell 2.6pc - or 154 points - to a fresh year low of 5622.53 at 1.30pm in London, wiping around £32bn off the value of the blue-chip index. Germany's DAX plunged 4.8pc and France's CAC 3.9pc.
The fall followed a 10.6pc dive - 14pc at one stage - in Japan's Nikkei after the government warned of dangerous levels of radiation following a third explosion at the earthquake-damaged Fukushima nuclear plant. The benchmark index ended down 1,015.34 points at 8,605.15, while the broader Topix plunged 9.5pc in its worst two-day fall since 1987.
This caused a ripple effect through Asia, Europe and the United States as investors reassessed the impact of last Friday's earthquake and tsunami and the growing nuclear disaster on a fragile global economy.
Brent crude dropped $4.80 to $108.93 a barrel in London and fell below $100 in New York as markets bet on a dramatic loss of demand for oil from the world's third largest economy.
"Last night’s move was the third worst decline in the Nikkei’s history and there’s fear that there could be more to come," said Simon Denham, the managing director of Capital Spreads. » | Tuesday, March 15, 2011
LE FIGARO: Le CAC 40 perd plus de 3% et s'enfonce sous les 3800 points. Londres et Milan suivent le même chemin tandis que Francfort lâche 5%. Les opérateurs s'inquiètent de l'aggravation de la situation nucléaire du Japon.
Encore une journée morose à la Bourse de Paris. Le CAC 40, qui a plongé sous les 3900 points hier, reste ce mardi ancré dans le rouge. Après un démarrage en forte baisse de 2,17% à 3793,95 points, l'indice phare de Paris creuse ses pertes et lâche 3,43% à 3744 points vers 10h30. À Londres et Milan, les Bourses suivent le même chemin et abandonnent également plus de 3%. La Bourse de Francfort creuse ses pertes à près de -5%.
Les indices ont du mal à retrouver le chemin de la hausse alors que la situation nucléaire japonaise s'est encore aggravée. Une nouvelle explosion et un incendie ont eu lieu au sein de la centrale de Fukushima Dai-ichi. «Le niveau de radioactivité a considérablement augmenté» et devient dangereux pour la santé, a déclaré le premier ministre japonais, Naoto Kan, à la télévision, provoquant un vent de panique sur les marchés d'Asie. La Bourse de Tokyo, pour sa part, s'est écroulée de 10,55%. » | Par Hayat Gazzane | Mardi 15 Mars 2011
THE DAILY TELEGRAPH: London joins global sell-off as Japan crisis fuels panic: London shares fell sharply on Tuesday as investors in Europe joined a global market sell-off that started with a 10.55pc plunge in the Nikkei as panicked investors dumped stocks in the face of an escalating nuclear crisis in Japan. » | Tuesday, March 15, 2011
THE DAILY TELEGRAPH: Tokyo shares closed down 10.55pc on Tuesday as panicking investors dumped stocks after the government said levels of radiation leaking from a stricken nuclear plant posed a threat to health.
Japan's Nikkei index clawed back some ground from an earlier freefall - sliding more than 12pc at one stage - to close down 1,015.34 points at 8,605.15. The broader Topix plunged 9.5pc in its worst two-day fall since 1987.
Other Asian markets suffered a ripple effect as investors fled stocks as the crisis in the world's No. 3 economy seemed only to escalate after a third explosion at the crippled Fukushima Dai-ichi nuclear plant in Fukushima province. » | Tuesday, March 15, 2011
March 14, 2011
REUTERS: The dollar rebounded from near-record lows against the yen on Monday, boosted by hedge fund buying as the Bank of Japan's huge infusion into money markets helped ease nervousness triggered by the massive earthquake and tsunami in northeast Japan. >>> Gertrude Chavez-Dreyfuss | TOKYO | Monday, March 14, 2011
THE DAILY TELEGRAPH: Japan's giant car industry has announced a major shutdown as fears grow over the economic impact of Friday’s devastating earthquake and subsequent tsunami which has crippled much of the north-east of the country.
The three largest motor manufacturers – Toyota, Honda and Nissan – said they would stop production at almost all of their domestic assembly plants. The safety of the workforce and deaths were cited as reasons behind the decision. The electronics giant Sony also said it would be shutting down production.
Gerard Lyons, chief economist at Standard Chartered, warned of possible temporary price stagflation and an initial downward move for the country’s economy.
“The timing of the disaster could not have been much worse,” admitted analysts at Capital Economics, pointing to Japan’s economic contraction in the last three months of 2010.
The disaster forced the Bank of Japan (BoJ) to issue a statement, as it draws up plans for an emergency “quake budget”. The BoJ said: “The bank will continue to do its utmost, including the provision of liquidity, to ensure stability in financial markets and to secure the smooth settlement of funds, in the coming week.”
Naoto Kan, the Japanese prime minister, asked BoJ to “save the country” after politicians from both sides of the political spectrum agreed on the need for the budget to introduce emergency spending to fund rescue and clean-up efforts and to resuscitate the economy. Continue reading and comment >>> James Quinn and Jamie Dunkley | Saturday, March 12, 2011
March 13, 2011
THE SUNDAY TELEGRAPH: The chief executive of Burger King has described British women as ugly and English food as “terrible”, in a gaffe likely to enrage his customers in this country.Bernardo Hees, 40, told a group of students in Chicago that “here the food is good and you are known for your good-looking women”.
Comparing the city to his student days at the University of Warwick, where he studied for an MBA, he recalled of his time in England: “The food is terrible and the women are not very attractive."
His gaffe came only six months after taking the helm at the chain, which has 11,500 outlets worldwide, and unsurprisingly were not welcomed in Coventry, where Warwick University is based.
Charli Fritzner, women’s campaigns officer at the University’s student union, said: “If he views women as potential distractions in academia, I wonder how he views them in the workplace?
“It doesn’t make Burger King an attractive employer for women.”
Marcus Wareing, a Michelin-starred chef at London’s Berkeley Hotel, who specialises in English produce, said his comments were an “insult to British gastronomy”, especially given what the Burger King menu contains. >>> Nick Britten | Sunday, March 13, 2011
March 11, 2011
BBC: People stuck for a stamp in Denmark will soon be able to send a text message to pay the postage on a letter.From 1 April, the Danish post office is introducing The Mobile Postage service that does away with stamps for standard sized letters.
Instead, people will send a text to the post office and get back a code they write on the envelope.
Sweden's post office said it was also considering introducing the service and is planning trials. >>> | Friday, March 11, 2011
MARKET WATCH: SEATTLE — Strong markets are supposed to rise along a wall of worry. This one was rising very nicely amid plenty of worries until investors caught a whiff of the idea that Saudi Arabia could fall victim to the unrest enveloping the Middle East.
So now stocks are slipping and crawling. It’s all about the optics. If you can see a problem, then you can ignore it. But if you aren’t sure what you see, paralysis ensues.
Any real threat that the Fahd monarchy and Sunni hegemony in Saudi Arabia could possibly come under attack would spark more than a worry. It would be thunder, lightning, a hurricane, a tornado, a tidal wave and earthquake all rolled up in one sand-colored bombshell.
No one really cares about Libya, after all. The two sides there can blast each other to kingdom come for all that most investors in London, Paris, Frankfurt and Wall Street care. Sure, there’s a decent amount of oil at stake at Bayda, Benghazi & Beyond, but concerns about the region begin and end at Saudi borders. >>> Jon Markman, MarketWatch | Thursday, March 10, 2011
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