Moody's Issues Credit Warnings on Nine European Countries Including the UK
THE GUARDIAN: Negative outlook for Austria, France and the UK. Italy, Malta, Portugal, Spain, Slovakia and Slovenia have ratings cut

Britain's AAA credit rating was thrown into doubt after the ratings agency Moody's said the ongoing euro crisis and a credit squeeze on the banking sector put the country at a higher risk of defaulting on its debts.

Moody's said that countries including the UK, France and Italy would be put on negative watch after citing "uncertainty" over Europe's handling of its ongoing debt crisis.

The possible loss of the UK's much coveted triple-A status will be a bitter blow for the chancellor George Osborne who has staked his reputation on distancing Britain from the ailing eurozone.

Riots and looting on the streets of Athens highlighted the confusion at the highest levels of the European political establishment over how to deal with the mounting debts faced by Greece. Brussels rejected handing over €130bn without further commitments from the Athens parliament and proposals for further cuts to be implemented this year.

Osborne was expected to stick to his aim of reducing Britain's "structural deficit" by 2017 when he stands up in parliament next month to deliver his third budget since the coalition took power in 2010.

But the verdict of Moody's will add to the pressure from opposition MPs and many economists on him to change course. Moody's said it was concerned that he would miss previous targets to cut the deficit by 2015.

The AAA rating is the highest awarded to a country and allows it to borrow at the lowest interest rates. » | Dominic Rushe and Phillip Inman | Monday, February 13, 2012

THE GUARDIAN: UK austerity v US stimulus: divide deepens as eurozone cuts continue: The emphasis in Europe is on fiscal rigour and slashed budgets, but there is a growing awareness such policies are not working » | Phillip Inman, Ian Traynor in Brussels and Dominic Rushe in New York | Tuesday, February 14, 2012

Moody's Puts Britain on Negative Credit Outlook
THE DAILY TELEGRAPH: Britain has been threatened with the loss of its AAA credit rating in the most serious challenge yet to the Coalition on the economy.

Moody’s, a ratings agency, last night said the outlook for the UK’s creditworthiness is now negative, warning that weak economic growth threatens Government plans to reduce the deficit.

The “high risk of further shocks” within the eurozone that would hit the UK could also cost Britain its AAA status, the agency said.

The agency’s analysis will electrify the political debate about economic policy, with Labour likely to argue that the Government’s policies are strangling economic growth. » | James Kirkup, Deputy Political Editor | Tuesday, February 14, 2012

French Socialist Candidate François Hollande Attempts to Reassure The City

THE DAILY TELEGRAPH: François Hollande, the French Socialist candidate in presidential election held out an olive branch to Britain yesterday, saying it should feel "part of Europe".

But the man most likely to be France's next President warned David Cameron that any attempt to create a "sanctuary" from regulation for the City of London was "not acceptable".

Mr Hollande will visit London on 29 February to speak to the Labour leader, Ed Milliband [sic], and perhaps the Prime Minister.

In a meeting with British and American journalists, he said: "We need a Great Britain that will take its place in Europe."

The polls place Mr Hollande way ahead of Nicolas Sarkozy, the incumbent conservative, who is expected to officially launch his re-election bid this week.

Mr Hollande sent ripples of alarm in the City last month by laying into "big finance", calling London's financial centre his "greatest adversary" in his first major campaign rally.

Yesterday, he warned that Britain could not expect to escape more financial regulation, despite Mr Cameron's decision not to sign the recent European fiscal pact.

"David Cameron's attempt to create a sanctuary from regulation for the City of London is not acceptable," he said. » | Henry Samuel in Paris | Monday, February 13, 2012

Liliane Bettencourt remplacée par son petit-fils chez L'Oréal
REUTERS FRANCE: PARIS - L'Oréal, numéro un mondial des cosmétiques, a annoncé lundi la fin du mandat d'administratrice de Liliane Bettencourt, remplacée au conseil d'administration par l'un de ses petit-fils, Jean-Victor Meyers. » | Gilles Guillaume | lundi 13 février 2012

Sparkurs für Obama im Wahljahr kein Thema
REUTERS DEUTSCHLAND: Washington (Reuters) - US-Präsident Barack Obama setzt trotz eines Schuldenbergs in Rekordhöhe auf massive zusätzliche Ausgaben zur Ankurbelung der Konjunktur.

Neun Monate vor der Präsidentenwahl stellte er am Montag einen Entwurf für das kommenden Haushaltsjahr vor, der vorsieht, 800 Milliarden Dollar in Maßnahmen zur Schaffung von Arbeitsplätzen und zum Ausbau der Infrastruktur zu stecken. Gleichzeitig sollen die Steuern für Millionäre auf mindestens 30 Prozent steigen.

Mit seinen Plänen beißt Obama bei der Opposition auf Granit. Die Republikaner haben bereits klar gemacht, dass der Entwurf gestorben ist, sobald er den Kongress erreicht. Sie kontrollieren das Repräsentantenhaus - und nicht der Präsident, sondern diese Kammer hat in Haushaltsfragen die Vorhand. » | Reuters | Montag, 13. Februar 2012

REUTERS FRANCE: Obama veut stimuler emploi et croissance avec le budget 2013 » | Alister Bell et Laura MacInnis, Jean-Philippe Lefief pour le service français, édité par Gilles Trequesser | lundi 13 février 2012

Related »

Obama Unveils Big Spending Election-year Budget

REUTERS: President Barack Obama called on Monday for aggressive spending to boost growth and for higher taxes on the rich, laying out an election-year vision for America in a budget that drew heavy fire from Republicans for failing to curb huge deficits.

Obama's 2013 spending proposal is expected to go nowhere in a divided Congress and is widely seen as more of a campaign document that frames his economic pitch to voters and seeks to shift the focus from deficits to economic growth.

It fleshed out a major theme of his re-election campaign - "economic fairness." He wants wealthier Americans to bear more of the burden of slashing a federal deficit that was a trillion plus dollars for a fourth year in a row.

The budget proposal is a "reflection of shared responsibilities," the Democratic president said at a campaign-style event in Annandale, Virginia, referring to his call for a minimum 30 percent tax on millionaires.

In one of his best opportunities before the November 6 election to convince voters that he deserves a second term, Obama called for more than $800 billion for job creation and infrastructure investment, including billions of dollars for roads, railways and schools.

He also set aside money to hire more teachers, police and firefighters and invest in manufacturing, while extending tax breaks to spur hiring.

"At a time when our economy is growing and creating jobs at a faster clip, we've got to do everything in our power to keep this recovery on track," Obama said.

He casts his Republican rivals as the party for the rich while Republicans want to paint Obama as a tax-and-spend liberal.

The budget projects deficits remaining high this year and next before starting to decline, meaning more borrowing that will add well over $7 trillion to the national debt over the next decade. » | Alister Bull and Laura Macinnis | WASHINGTON | Monday, February 13, 2012

'All Final Salary Pension Schemes Will Close Under New EU Rules'
THE DAILY TELEGRAPH: All of Britain's remaining final salary pension schemes will be forced to close if the EU brings in new rules designed to make their funding more secure, unions, employers and pension schemes have warned.

Many businesses could also be pushed into insolvency by European pension proposals, risking significant job losses, three industry bodies have warned.

In a letter to José Manuel Barroso, president of the European Commission, ahead of EU directives due this week, the National Association of Pension Funds (NAPF), the Confederation of British Industry (CBI) and the Trades Union Congress (TUC) warned that the new rules would have a disastrous impact.

"By demanding dramatic increases in funding from employers, the commission's plans would – at best – force all remaining defined benefit schemes to close and – at worst – push many businesses into insolvency, leading to significant job losses," they wrote. Read on and comment » | Richard Evans | Monday, February 13, 2012

'Mittelstand' Firms Powering German Success
The strength of its well-known global brands have been cited as a factor in Germany's economic stability, but low-profile firms that produce highly-engineered goods are also helping to aid the economy amid Europe's financial crisis. The mostly family-owned medium-sized companies, known as the Mittlestand, employ more than two-thirds of the country's workforce. Adding to the Mittelstand's success is Germany's veneration for trademark engineering, backed by an education system that offers more than 300 apprenticeships starting in high school, and creating a highly-skilled labour pool. Al Jazeera's Nick Spicer reports from southern Germany.

Spanish Government Approves Sweeping Labor Reforms
LOS ANGELES TIMES: REPORTING FROM MADRID -- Spain's new conservative government announced drastic changes to the country's labor system Friday, in some cases altering contract terms that have been untouched for 50 years, in a bid to bring down Europe's worst unemployment rate.

Under the new labor rules, companies doing business in Spain will be able to hire and fire workers more freely, negotiate pay independent of national contract mandates and score tax breaks for hiring people under the age of 30. Severance packages long deemed among the most generous in Europe will be cut by more than a quarter, from 45 days' pay for every year on the job to 33. Temporary workers -- a full third of the Spanish workforce -- will be entitled to permanent status, with better pay and benefits, after two years rather than the current three.

The Cabinet approved the measures by decree Friday, meaning they will go to lawmakers for a yes-or-no vote without the option of amendments. The ruling Popular Party holds a commanding majority in parliament, which likely will ensure quick passage.

Spain has Europe's highest jobless rate. Nearly one in four workers is unemployed; the figure tops 50% for people in their early 20s. » | Friday, February 10, 2012

Apple's iPhone Takes Big Bites Out of Wireless Carriers' Profits
LOS ANGELES TIMES: AT&T, Sprint and Verizon, which pay hefty subsidies on the iPhones their customers buy, have seen their earnings and stock prices drop since they began offering the Apple handsets.

The iPhone has been a huge hit for Apple Inc., helping send the company's stock to all-time highs and producing record-breaking profits.

But for AT&T Inc., Sprint Nextel Corp. and Verizon Communications Inc., it's breaking the bank.

The three wireless carriers all found themselves answering to Wall Street in recent weeks for posting depressed quarterly earnings, and analysts pointed to the heavy cost of offering the iPhone as a culprit.

The iPhone has become the single most popular smartphone in the U.S., and that has left the carriers trapped in a kind of Faustian deal: The more iPhones they sell, the more money they lose.

That's because they have to buy the phone from Apple before they can sell it to their customers for hundreds of dollars less. The carriers are betting that they'll make back the difference and more by signing up customers for two-year plans and collecting monthly fees.

But so far, the carriers are finding that the math isn't adding up. » | David Sarno, Los Angeles Times | Friday, February 10, 2012

L'Égypte face à une grave crise économique

LA PRESSE: La dégradation de l'économie égyptienne constitue, un an après la chute de Hosni Moubarak, une lourde menace pour la transition dans le pays le plus peuplé du monde arabe, estiment des économistes.

Avec un taux de croissance estimé autour de 1% à 2%, contre 5 à 7% autrefois, le gouvernement attend du Fonds monétaire international et d'autres bailleurs une aide jugée cruciale pour éviter une explosion sociale dans les prochains mois.

«Un an après la révolution, l'économie est dans un état anarchique, hors de contrôle», estime Salah Goda, directeur du Centre de recherches économiques du Caire.

Les recettes du secteur vital du tourisme ont accusé en 2011 une baisse de 30%, soit un manque à gagner de 4 milliards de dollars, selon des statistiques officielles, jugées par nombre d'opérateurs très en-deçà de la réalité.

Régulièrement dégradée par les agences de notation, l'Égypte ne fait plus rêver les investisseurs qui se bousculaient autrefois dans ce pays au marché intérieur de plus de 82 millions d'habitants.

Au coeur des inquiétudes, la fonte des réserves en devises de la banque centrale, qui ont diminué de plus de moitié, passant de 36 milliards de dollars en janvier 2011 à 16,3 milliards un an plus tard. » | Ibrahim AlSahary | Agence France-Presse | Le Caire, Égypte | vendredi 10 février 2012

Inside Story: Will Greece Default on Its Debts?
Greece [sic] workers are on strike as negotiations continue to finalise a deal for a new bailout. But time is fast running out. What are the risks of a default, and the possibility of bankruptcy? Guests: Ann Pettifor, George Kapopoulos and Matina Stevis

Gold Dances to a Greek Tune

US Foreclosures Go Sky High
The Bank of America Plaza skyscraper in the state of Georgia, the tallest building in the southern US, is just another lamb to the slaughter after it was auctioned off for about half the amount it was worth five years ago. Once the symbol of the area's booming commercial real-estate market, the tower now represents its widespread failure. After the housing bubble burst, millions of homes have been foreclosed in the country. President Barack Obama's programmes have not helped nearly the number of people he said they would, while Mitt Romney, the Republican front-runner, says the answer is to let the market bottom out. Al Jazeera's Patty Culhane reports from Washington.

Greece Austerity Deal Hits People Hard
Greece's political leaders have finally reached an agreement on further austerity cuts in order to get a second bailout package worth $170bn from EU and IMF to avoid a looming bankruptcy. EU finance ministers have been meeting in Brussels to discuss the details of the deal, while in Athens thousands of people have been gathering outside parliament against the deal. The deal includes cuts to pensions worth hundreds of millions of dollars, reduction of private-sector wages and termination of 150,000 public sector jobs by 2015. Greek unions have planned a 48-hour strike which is due to begin on Friday. Al Jazeera's John Psaropoulos reports from Athens.

Greek Economic Crisis Nears Breaking Point

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Greece Seethes Over Austerity Measures

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Rösler plädiert für mehr Finanzmarktregulierung
REUTERS DEUTSCHLAND: Berlin (Reuters) - Bundeswirtschaftsminister Philipp Rösler hat eine weitere "kluge" Regulierung an den Finanzmärkten gefordert.

"Es gibt Bereiche, in denen gibt es nicht zu viele Regeln, sondern zu wenig Regeln", sagte Rösler am Dienstag in Berlin. Bei weiteren Schritten müsse es um mehr Transparenz und um fairen Wettbewerb gehen. Gefordert sei eine "kluge Finanzmarktregulierung" ohne Übertreibungen. Damit könne das Vertrauen in die Soziale Marktwirtschaft gestärkt werden. » | Reuters | Dienstag 07. Februar 2012

Steve Jobs' Advice to President Obama
Steve Jobs met with President Obama a few times and gave him ideas for how to generate jobs in the U.S., according to his biographer, Walter Isaacson. Jobs also told Isaacson that Obama needed a management style more like his own, which could be both mean and manipulative.

Steve Jobs the Boss: Defiance Has Its Rewards
Steve Jobs is infamous for being an abrasive and often abusive boss - determined to get his way. But for those at Apple who stood up to him, there could be a humorous payoff, his biographer Walter Isaacson tells Steve Kroft. Also: Jobs on driving.