Euro Fear as Spain and Italy's Debt Ratings Are Downgraded
THE GUARDIAN: British banks and building societies lose rating while pressure mounts on EU to restore faith in single currency

The eurozone crisis intensified on Friday when Spain and Italy were downgraded by the ratings agency Fitch, heightening fears over the health of Europe's banks.

Fitch's move came at the end of a day which had already seen 12 UK banks and building societies downgraded by the rival agency Moody's and amid speculation about co-ordinated European action to bolster the finances of the continent's banks by next weekend.

The euro fell against most major currencies, piling fresh pressure on European politicians to restore confidence in the single currency. Germany's Angela Merkel said Europe needed to find a solution for its banks by 17 October. Analysts from Capital Economics estimate the total financial package may top €200bn (£172bn).

Merkel and Nicolas Sarkozy of France are due to meet in Berlin on Sunday to discuss the crisis, with bank recapitalisation expected to be at the heart of their negotiations.

George Osborne attempted to distance UK banks from the crisis, despite speculation that there might need to be a fresh capital injection into British institutions, particularly Royal Bank of Scotland. He said: "People ask me how are you going to avoid Britain and the British taxpayer bailing out banks in the future. This government is taking steps to do that … I'm confident British banks are well capitalised, they are liquid, they are not experiencing the kinds of problems some of the banks in the eurozone are experiencing at the moment." » | Jill Treanor and Patrick Wintour | Friday, October 07, 2011

EuroMillions Results: UK Ticketholder Wins £101m Prize
THE GUARDIAN: Third largest lottery win ever in Britain – the largest ever EuroMillions jackpot of £161m went to Scotland couple in July

A UK ticketholder has won the estimated £101m EuroMillions jackpot. It is the third largest lottery prize ever won in the UK, according to Camelot.

It is not yet known if the jackpot was won by a single ticketholder or a syndicate. » | Press Association | Saturday, October 08, 2011

Value of Private Pensions Falls by Nearly a Third in Three Years
THE DAILY TELEGRAPH: Workers nearing retirement face a "double whammy" from turmoil in financial markets that will leave them with pensions almost a third lower than those who finished work three years ago.

Research published today suggests that many people with private pensions will be as much as 30 per cent worse off compared with those with similar savings who finished work in 2008, because of a combination of tumbling stock markets and interest rates at a record low.

PricewaterhouseCoopers, the accountants, said those facing retirement this year would be left "between a rock and a hard place", forced to consider putting off claiming a pension until market conditions improve.

The warning comes after the Bank of England resumed its quantitative easing programme, injecting £75 billion of new money into the economy. That decision alarmed pension managers, who said this would make it harder to fund retirement schemes.

Sir Mervyn King, the Governor of the Bank of England, said the move was needed because the world was threatened with the worst financial crisis in history as major economies slowed and the banking system started to freeze. » | James Kirkup | Friday, October 07, 2011

Altkanzler Helmut Schmidt: Verstehen Sie das, Herr Schmidt?

ZEIT ONLINE: Weil einige EU-Länder schlecht gewirtschaftet haben, sollen die anderen Mitgliedsstaaten helfen. Die lassen ihre eigene Bevölkerung zahlen, für deren Wohlergehen sie eigentlich zu sorgen haben. Die Menschen haben Angst um ihre Ersparnisse, Ökonomen warnen vor einer Weltrezession – und das alles, weil Griechenland, ein Land von der Wirtschaftskraft Hessens, vielleicht zahlungsunfähig wird.

ZEITmagazin: Lieber Herr Schmidt, seit Monaten berichten die Medien unaufhörlich über die Turbulenzen auf den Finanzmärkten. Aber soviel die Leute auch lesen und hören, in einem Punkt werden sie nicht schlauer: Wäre die Pleite Griechenlands nun eigentlich ein Desaster für die Europäische Union oder nicht? Können Sie uns aufklären?

Helmut Schmidt: Die ökonomische Bedeutung des griechischen Staates und seiner Volkswirtschaft kann man ermessen, wenn man sich klarmacht, dass das griechische Sozialprodukt etwa 2,5 Prozent des Sozialprodukts der Europäischen Union ausmacht...

ZEITmagazin: ...das Land hat ungefähr die Wirtschaftskraft von Hessen.

Schmidt: Wenn dieser Staat vorübergehend zahlungsunfähig würde, dann wäre das für die Griechen und für alle anderen Europäer ein großes Unglück, aber kein existenziell gefährdendes Unglück. Das gilt sowohl für die wirtschaftlichen als auch die politischen Folgen eines solchen Bankrotts. Die politischen Folgen würden möglicherweise noch schwerer wiegen, denn es könnte der Eindruck entstehen, dass es um die Solidarität unter den Europäern noch viel schlechter bestellt ist, als wir uns das in den letzten Jahren vorgestellt haben. Das Vertrauen in die Gemeinschaft der 27 Mitglieder würde weiter schwinden. Dieser politische Preis wäre zu hoch. Deshalb müssen die Staaten der Europäischen Union Griechenland helfen. » | Von Giovanni di Lorenzo | Freitag 07. Oktober 2011

Das Leben eines Revolutionärs

Betraying Savers and Law-abiding Citizens Is Neither Modern Nor Compassionate
TELEGRAPH – BLOGS – NORMAN TEBBIT: Extract: … There is not much doubt that QE will help the economy to grow, but it will be at the expense of a further rise in inflation. That will cut the value of wages, but also reduce the value of savings and the burden of debts. Borrowers will be winners, and savers will be the mugs again. I am not sure that is either compassionate, or very modern. It is a cruel deception that has been played at the expense of the vulnerable too often in the past. – Norman Tebbit … Read the complete blog here » | Norman Tebbit | Friday, October 07, 2011

My comment:

Excellent blog, Mr. Tebbit. As a lifelong Conservative voter, I feel alienated by Mr. Cameron's version of Conservatism. I feel particularly alienated by his government's lack of concern for savers. I also feel very concerned about the Bank of England's propensity to print money whenever there's a problem. Turning on the printing press is no sound solution to anything. Haven't any of these people ever studied any economic history? Have they not heard of the disaster of hyperinflation in the Weimar Republic, caused in no small part by turning on the printing press?

I wish someone could tell me why this country has for many years paid such scant regard to saving and savers. It seems to me that in any sound, well-run economy, it is a great advantage to have a well-to-do, cushioned populace. For some inexplicable reason, successive governments in this country seem not to have thought so. The current government is no exception.

I thought that having a Conservative government again (albeit tempered by the LibDems) would usher in a period of economic sanity after the foolhardy years of Labour control, or lack of it. I have been sorely disappointed. – © Mark

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Moody's Cuts Ratings on RBS and Lloyds
THE INDEPENDENT: Britain's beleaguered banks and building societies were dealt another blow today after a debt agency said the decreased likelihood of Government backing made them less credit-worthy.

Lloyds Banking Group, Santander UK, Royal Bank of Scotland, Co-operative Bank, Nationwide and seven smaller building societies saw their credit ratings slashed by Moody's Investor Service.

The move - which triggered a fall in banking shares on the London Stock Exchange - means the cost of borrowing for the affected financial institutions is likely to increase.

RBS, which saw its shares drop more than 3%, also came under pressure after a report in the Financial Times suggested it could require a further bailout from the Government.

The bank said it was "disappointed" that Moody's had not acknowledged its progress in strengthening its finances since 2008.

Moody's stressed its review did not reflect a deterioration in the financial strength of the banking system or the Government.

The move reflects a shift in Government policy to transfer risk from taxpayers to creditors, rather than deepening problems within the banks. » | PA | Friday, October 07, 2011

MAIL ONLINE: Confidence in UK Banking Rocked: Doubts over strength of government’s support » | James White | Friday, October 07, 2011

Mervyn King on Quantitative Easing: Why This Time Will Be Different
The Governor of the Bank of England says the challenge facing the world economy is greater now than during the credit crunch.

A most unconvincing argument. This man is continuing his policy of devaluing the pound; and we, the ordinary people, have to put up with it. The man needs to get a grip. Turning on the printing press, which QE essentially is, is nothing short of a recipe for disaster in the long-run. One only has to look back a bit in time to the Weimar Republic. As a result of turning on the printing press, the German’s were left with hyperinflation. If Mervyn King thinks that this can’t happen again, he is greatly mistaken. – © Mark

Bank of England Launches £75bn More QE
THE DAILY TELEGRAPH: The Bank of England has taken pre-emptive action to rescue the faltering recovery by increasing its money printing programme by £75bn.


The Chancellor has cleared the Bank to increase the scale of its quantitative easing (QE) programme from £200bn to £275bn due to the deterioration in the economic outlook.

In his letter of authorisation to Sir Mervyn King, the Bank’s Governor, George Osborne hinted that the Bank could consider using the funds to buy up to £50bn of “private sector assets”, which would potentially transform the way QE has been operated.

So far, all but £1.3bn of the £200bn of existing QE has been used to buy gilts. But with gilt yields now even lower than during the first programme, economists are doubtful that a straight policy repeat would have much effect. Buying corporate or mortgage debt, as the US did in its original $1.7 trillion QE scheme, could help ease the credit strains in particular parts of the economy.

Leaving rates on hold at 0.5pc, Sir Mervyn said in his letter to the Chancellor: “The pace of global expansion has slackened, especially in the UK’s main export markets. Vulnerabilities associated with the indebtedness of some euro-area sovereigns and banks have resulted in severe strains in bank funding markets and financial markets more generally. These tensions in the world economy threaten the UK recovery. » | Philip Aldrick, Economics Editor | Thursday, October 06, 2011

We are being led by fools! They are clueless: partly because we are in uncharted territory; partly because they sorely lack experience and foresight.

The term quantitative easing (which, by the way, the Chancellor of the Exchequer seems unable to pronounce) is nothing but a modern day euphemism for turning on the printing press. Economics 101 teaches one that this is a road that eventually leads to disaster. The hyperinflation of the Weimar Republic springs easily to mind.

To engage in QE is a shameful and desperate measure. It will send prices soaring, because there will be too much money chasing too few goods. One has to ask oneself one simple question: Where did these idiots learn their economics? They must have been high on something whilst in lectures, because they certainly didn't learn the fundamentals of sound economic policy.

Turning on the printing press is a shameful exercise. Alas the people who will have to pay the ultimate price of this folly are ordinary people – the people who will struggle to feed their families, struggle to make ends meet, struggle to maintain their savings, struggle to maintain their place in this world. Appalling! – © Mark

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Steve Jobs, Architect of Apple, Dies
THE BOSTON GLOBE: Steve Jobs, the demanding visionary who understood before anyone else how deeply we would live our lives through our devices, died today at the age of 56, only weeks after resigning as chief executive of computer giant Apple Inc. as he battled pancreatic cancer.

“The world has lost an amazing human being,” wrote Apple chief executive Tim Cook in a message to employees. “Steve leaves behind a company that only he could have built, and his spirit will forever be the foundation of Apple.”

Jobs was “among the greatest of American innovators,” said President Obama in a statement posted on the White House blog. “There may be no greater tribute to Steve’s success than the fact that much of the world learned of his passing on a device he invented.”

Jobs revitalized Apple by transforming smartphones, computers, and media players into objects of desire. He insisted the company put the human experience first, focusing on design as well as technological prowess. Fifteen years ago, Apple flirted with bankruptcy; today, it is one of the most successful companies on earth.

Jobs’s rival, Microsoft Corp. co-founder Bill Gates, issued a statement saying, “The world rarely sees someone who has had the profound impact Steve has had.”

Gates closed his statement by writing, “I will miss Steve immensely.” » | Hiawatha Bray | Globe Staff | Thursday, October 06, 2011



LE FIGARO: «L'Amérique a perdu un génie» : «Un visionnaire», «un génie dont on se souviendra comme d'Edison et d'Einstein»: les hommages de grands patrons, d'hommes politiques et de milliers de fans d'Apple pleuvent après l'annonce de la disparition de Steve Jobs. » | Par Mathilde Golla, Chloé Woitier | Jeudi 06 Octobre 2011

LE FIGARO: Steve Jobs, le culte de la perfection : Le patron d'Apple, décédé mercredi à l'âge de 56 ans, a guidé son entreprise vers les sommets grâce à une gestion particulièrement stricte de ses équipes. » | Par Benjamin Ferran | Jeudi 06 Octobre 2011



FRANKFURTER ALLGEMEINE: Steve Jobs ist tot: Der Tod des Apple-Mitbegründers Steve Jobs hat Trauer und Bestürzung ausgelöst. Der Computer-Visionär starb am Mittwoch im Alter von 56 Jahren. Er hinterlässt seine Frau und vier Kinder. » | Roland Lindner | New York | Donnerstag 06. Oktober 2011

FRANKFURTER ALLGEMEINE: „Leider ist der Tag gekommen“ : Steve Jobs tritt als Apple-Chef zurück. Gebannt blicken wir auf das abwechslungsreiche Leben des Apple-Gründers und fragen: Wird man schon zum Genie geboren? » | Von Hendrik Ankenbrand | Donnerstag 06. Oktober 2011

Steve Jobs: His Life and Career
Technology editor Charles Arthur looks back at the career of the driving force behind Apple, Steve Jobs. He was the single-minded visionary who revolutionised three industries: computers, film and music.

Jobs simplified complicated things by making the customer's needs paramount, bringing cutting edge technology into globally popular consumer products

THE GUARDIAN: Steve Jobs obituary: Computing entrepreneur and inventor, and the co-founder, chairman and recognisable face of Apple » | Jack Schofield | Thursday, October 06, 2011

Angela Merkel défend la Grèce en proie à de nouvelles manifestations

TRIBUNE DE GENÈVE: La Grèce doit «continuer à faire partie de la zone euro», a affirmé mercredi Angela Merkel. Sur le terrain, des dizaines de milliers de fonctionnaires ont à nouveau manifesté contre les mesures d'austérité.

La Grèce, en proie à une profonde récession et dont les finances publiques sont au bord du gouffre, «doit continuer à faire partie de la zone euro et on doit lui donner une chance de se rétablir», a dit Angela Merkel. La chancelière allemande s’exprimait à l’issue d’une visite à la Commission européenne à Bruxelles.

«Nous voulons de la croissance, voilà ce que nous voulons», a-t-elle ajouté, indiquant que le ministre allemand de l’Economie, Philip Rösler, se rendrait jeudi à Athènes. Elle avait assuré la semaine dernière, en recevant le Premier ministre grec Georges Papandréou, qu’elle souhaitait voir «une Grèce forte dans la zone euro».

Mais la chancelière a fort à faire pour défendre cette position face à certains de ses alliés politiques en Allemagne. Dimanche, un haut responsable du parti social-chrétien bavarois, la CSU, alliée de la CDU démocrate-chrétienne de la chancelière, a appelé la Grèce surendettée à sortir de la zone euro. » | Agences | Mercredi 05 Octobre 2011

Verwandt »

Greece: Greek Tragedy
Watch Journeyman Pictues video here

Italy's Credit Rating Slashed Amid Eurozone Warnings

THE INDEPENDENT: Moody's lowered its rating on Italy's bonds by three notches on today, saying it saw a "material increase" in funding risks for eurozone countries with high levels of debt and warning that further downgrades were possible.

The agency downgraded Italy to A2 from Aa2, a lower rating than it holds on Estonia and on a par with Malta and kept a negative outlook on the rating.

The euro pared gains against the dollar and Japanese yen immediately following the announcement which comes after Moody's rival Standard and Poor's cut its rating on Italy by one notch to A/A-1 on Sept. 19.

The cuts underline growing investor concern about the eurozone's third largest economy, which is now firmly at the centre of the debt crisis and dependent on help from the European Central Bank to keep its borrowing costs under control.

"The negative outlook reflects on[-]going economic and financial risks in Italy and in the euro area," Moody's said in a statement.

"The uncertain market environment and the risk of further deterioration in investor sentiment could constrain the country's access to the public debt markets," it said. » | Reuters | Wednesday, October 05, 2011

Bernanke: Recovery Is Close to Faltering
Oct 4, 2011 – Inside factors shaping economic climate

Backdoor Privatisation! NHS Patients Offered Private Treatment by GPs

THE DAILY TELEGRAPH: GPs are telling patients they can pay them to carry out treatments no longer funded by the NHS, in a move that has raised fresh fears over conflicts of interest and back-door privatisation.

A practice in York has written to about 30 patients who were waiting to have minor skin surgery, advising them that if they still want it carried out they may have to pay up to £250.

One of the companies listed as offering the procedures is wholly owned by the doctors’ surgery sending out the letter.

Managers deny they have done anything wrong but the local Primary Care Trust says it has “significant concerns” and is now investigating the scheme, while leading medical unions say it risks grave conflicts of interest for GPs who may profit personally by suggesting to NHS patients that they can have private treatment, damaging trust in the profession.

It is feared that such problems will become more commonplace after the Health and Social Care Bill becomes law, when local groups led by doctors will hold the budget for £80billion worth of treatment in England rather than managers.

More patients are also likely to have to turn to the private sector for non-emergency care as the NHS tries to make £20billion in efficiency savings by 2015. » | Martin Beckford, Health Correspondent | Tuesday, October 04, 2011

Roman Abramovich Operated as a 'Political Godfather', Court Hears

THE DAILY TELEGRAPH: Chelsea Football Club owner Roman Abramovich operated in a Russian state in which the ''rule of law'' had disappeared, where police were ''corrupt'', courts ''open to manipulation'' and businessmen needed access to a ''political godfather'', a High Court judge heard today.

A barrister representing the billionaire Russian businessman told Mrs Justice Gloster that ''quite extraordinary conditions'' prevailed in Russia following the collapse of communism in 1992 and said it was ''not easy'' for English lawyers to assess the behaviour of people who lived in ''such a world''.

Jonathan Sumption QC described Russia in the 1990s as he summarised Mr Abramovich's defence in a multi-billion pound legal battle at the Commercial Court in London.

Mr Abramovich is being sued for more than £3 billion by fellow Russian oligarch Boris Berezovsky in a case which began this week and is expected to last for more than two months.

Mr Berezovsky is claiming Mr Abramovich ''intimidated'' him into selling shares in Russian oil company Sibneft at a fraction of their value - and alleging breach of trust and breach of contract.

Mr Abramovich denies the allegations. » | Tuesday, October 04, 2011

Related »

Bank of England to Inject an Extra £50billion to Prop Up the Economy
MAIL ONLINE: The Bank of England is gearing up for another round of quantitative easing – or printing money – as an insurance against a stagnant UK economy slipping back into recession.

City economists are confident that the Bank will pump another £50billion into the economy by next month, possibly even this week.

This would expand the size of the QE programme to £250billion since March 2009.

The policy is the preferred way to boost the economy as an alternative to dropping interest rates, which are already very low at 0.5 per cent.

However, the process could raise inflationary pressures, at a time when households are already struggling with rapidly rising energy and food prices. » | Geoff Foster | Monday, October 03, 2011

Euro-Krise: Portugal zittert vor Griechenland

FRANKFURTER ALLGEMEINE: In Lissabon nimmt die Nervosität zu: Die Insel Madeira hat ein neues finanzielles „schwarzes Loch“ aufgetan, die Gewerkschaften lassen gegen das „Spardiktat“ demonstrieren, und Portugals Haushaltsdefizit ist höher als mit EU, EZB und IWF verabredet.

Hundert Tage nach dem Machtwechsel in Portugal erhält die bürgerlich-konservative Regierung unter Ministerpräsident Pedro Passos Coelho von der Bevölkerung noch akzeptable Noten.

Zwischen ersten Streiks, immer neuen Sparmaßnahmen und Steuererhöhungen sowie der Entdeckung eines beträchtlichen „schwarzen Lochs“ in den Finanzen der vor einigen Monaten von schweren Sturmfluten heimgesuchten Insel Madeira nimmt in Lissabon nach der „ersten Rettung“ die Nervosität wieder zu.

Am vorigen Freitag teilte das nationale Statistikinstitut mit, dass das Haushaltsdefizit im ersten Halbjahr bei 8,3 Prozent des Bruttoinlandsproduktes gelegen habe. Das ist beträchtlich höher als die für 2011 angestrebten 5,9 Prozent, welche die Troika aus Europäischer Union, Europäischer Zentralbank (EZB) und dem Internationalen Währungsfonds (IWF) als Gegenleistung für einen Hilfskredit von 78 Milliarden Euro zur Richtschnur gemacht hat. » | Von LEO WIELAND, LISSABON | Montag 03. Oktober 2011

L'Oreal's Bettencourt Goes 'Nuclear' on Daughter in 15Billion Euro Row
THE DAILY TELEGRAPH: L'Oreal heiress Liliane Bettencourt is ready to declare "nuclear war" on her daughter by reclaiming 15 billion euros she gave her in shares in the cosmetics empire, her lawyers have warned.

The warning came as a judge is to decide on Tuesday whether to put the 88-year-old under legal wardship.

Over the weekend, the ailing heiress's lawyer, Jean-Rene Farthouat, said she was ready for battle.

"I saw Lilliane Bettencourt on Friday, and she is in favour of nuclear war," he told the Journal du Dimanche.

Europe's richest woman first fell out with her only daughter in spectacular fashion late 2007, when François Bettencourt-Meyers accused a society photographer of bamboozling her mother out of a billion euros' worth of art and life insurance. She said her mother was no longer in command of her mental faculties and should be put under legal wardship. Her mother responded that she was in perfect shape.

In December 2010, the saga, which had boiled into an affair of state, ended when the mother and daughter reconciled.

However, in June, the feud flared up anew after Mrs Bettencourt-Meyers once again sought legal wardship for her mother, saying she was surrounded by a predatory "circle who pretend to be affectionate to the detriment of the family". » | Henry Samuel, Paris | Monday, October 03, 2011

Battle of the Oligarchs as Roman Abramovich and Boris Berezovsky Appear at High Court
THE DAILY TELEGRAPH: Roman Abramovich forced fellow oligarch Boris Berozovsky [sic] to sell him billions of pounds of shares cheaply by threatening that Vladimir Putin would seize his assets if he did not comply, a court heard.

It is claimed Abramovich, the billionaire owner of Chelsea Football Club, conned his former friend and mentor out of more than £2 billion.

The case saw two of Britain’s richest men go head to head as they made allegations about Kremlin intrigue and protection rackets in a High Court case worth £3.5bn.

It is thought special security measures have included sweeping the court for bombs and ensuring the building is sniper-proof.

In one of the only times the pair have come face to face in more than ten years after they fell out following a meeting the pair sat at opposite ends of a court room in London, dressed in expensive suits and surrounded by their entourage and dozens of highly-paid lawyers.

Berezovsky claims that he was threatened at a meeting in his mansion in Cap d’Antibe[s] in the south of France and forced to sell his shares in Sibneft, a Russian oil and gas conglomerate the two men had created with a third partner.

Abramovich is said to have vowed to get Putin, then the president and now the prime minister of Russia, to reclaim Berezovsky’s assets and to prevent the release of one his friends from jail.

It was claimed the Chelsea owner was “a man to whom wealth and influence mattered more than friendship and loyalty,” said Laurence Rabinowitz QC representing Berezovsky. » | Duncan Gardham, Security Correspondent | Monday, October 03, 2011