Moody's abaisse la note de Chypre
LE FIGARO: L'agence de notation Moody's Investors Service a abaissé vendredi la note de Chypre de deux crans, au motif que le gouvernement devra sans doute soutenir le secteur bancaire l'an prochain pour le protéger de son exposition à la dette grecque.

L'agence américaine a ramené la note souveraine de Chypre de Baa1 à Baa3, soit un cran seulement au-dessus de la catégorie spéculative. Cette nouvelle note a été placée sous revue pour un éventuel nouveau déclassement. [Source: Le Figaro.fr économie] | avec Reuters | vendredi 04 novembre 2011

Reiche Griechen pumpen Vermögen in Edelimmobilien

WELT ONLINE: Um ihr Vermögen zu retten, investieren viele Griechen in Luxus-Immobilien. Besonders beliebt sind edle Adressen in London.

Hyde Park Number One – Londons derzeit edelste Adresse verspricht vieles: Einen fast unbezahlbaren Blick über die Weltstadt, Zimmerservice vom benachbarten Mandarin-Hotel, schusssichere Fenster und vor allem eines: eine konstant gehobene Preislage. 5,9 Millionen Pfund kostet ein Appartement in dem Nobel-Projekt im Schnitt. Im vergangenen Jahr wechselte die teuerste Wohnung für schwindelerregende 140 Millionen Pfund den Besitzer.

Mit Angaben über die Käufer sind die Londoner Makler ausgesprochen wortkarg. Sicher ist nur: Es sind sehr oft Ausländer – Oligarchen aus dem ehemalign Sowjetreich, Ölscheichs mit Konten voller Petrodollars. Aber nicht nur die: Unter den Europäern haben sich im vergangenen Jahr ausgerechnet reiche Griechen hervorgetan, die ihr Geld nach Großbritannien – und damit aus der Euro-Zone geschafft haben. In Immobilien ist es trotz der britischen Inflation von derzeit über fünf Prozent zukunftssicher angelegt. » | Autor: Michael Donhauser | Freitag 04. November 2011

Leading Article: Talk of Greece Leaving the Euro Is Reckless
THE INDEPENDENT: The Greek premier has resisted calls for his resignation. He should heed them

It is a measure of the recklessness of the Greek Prime Minister's referendum gamble that his government's descent into disarray yesterday should be so welcome. That the outcome was the swift withdrawal of George Papandreou's ill-judged plan for a plebiscite on the latest eurozone bailout plan is a matter of considerable relief. And the tentative moves to establish a transitional coalition government in Athens are even more so.

With financial markets see-sawing and Italy's borrowing costs soaring to dangerously high levels, it can only be hoped that yesterday's developments draw a line under the latest bout of instability to rock the eurozone. Even so, the verdict on Mr Papandreou is unforgiving. Not only did his referendum bombshell display an unconscionable blindness to knock-on effects beyond his borders. If, as Mr Papandreou claims, the goal was to ensure a sufficient mandate for the policies agreed in Brussels, he should have called a general election. It is some comfort that his refusal may yet be overtaken by events.

Despite yesterday's volte face, Mr Papandreou was last night resisting calls for his resignation. He should heed them. Not only does this week's debacle prove he is not up to the job that Greece, Europe, and the world, require of him. At a practical level, it undermines his credibility in future negotiations. Relations with his eurozone colleagues, most particularly Angela Merkel and Nicolas Sarkozy, have been materially damaged. Perhaps as important, he has lost the trust of the markets. The most promising development now would be the loss of today's vote of confidence in Athens, clearing the way for a government of national unity, under new leadership, backed by the broad political consensus so badly needed. Read on and comment » | THE INDEPENDENT | Friday, November 04, 2011

Tax Evasion Crackdown Will Raise £62bn for G20 Nations, Says OECD
THE GUARDIAN: Paris thinktank says action against world's wealthiest people could plug gaps in public finances as G20 leaders agree new measures to stop tax evasion

A tougher crackdown on tax evasion by the world's wealthiest individuals could provide cash-strapped G20 governments with up to $100bn (£62bn) in much-needed tax revenue, the Organisation for Economic Cooperation and Development said on Thursday night.

The Paris-based thinktank told the leaders of developed and developing countries that they could fill black holes in their public finances and improve social cohesion by co-operating to remove tax loopholes and by exchanging information.

A survey of 20 rich and poor countries conducted by the OECD showed that earlier measures to deter tax evasion had resulted in 100,000 individuals paying a total of $14bn in unpaid tax on assets worth between $120-150bn.

Jeffrey Owens, director of the OECD's centre for tax policy and administration, said: "That is just the tip of the iceberg. There is probably $1tn in assets held offshore." » | Larry Elliott and Patrick Wintour in Cannes | Thursday, November 03, 2011

One-sided Story: Greece Hijacks G20 Summit

European Central Bank Cuts Interest Rates as Contagion Fears Grow

THE GUARDIAN: New chief, Mario Draghi, acts after he warning that growth forecasts are likely to be cut and eurozone heading for recession

Financial markets received a jolt of energy when the European Central Bank stunned investors by cutting interest rates – the latest sign that policymakers fear the eurozone crisis could tip economies back into recession.

After chairing his first meeting to discuss interest rates, Mario Draghi, the new ECB president, warned that growth forecasts for the eurozone in 2012 were likely to be cut and that the euro area was heading towards a "mild recession" by the end of this year.

The admission for the first time that Greece might leave the euro caused early gyrations in markets across Europe. But the reversal of the ECB rate rises implemented earlier in the year, when inflation was a cause of concern, bolstered sentiment. In London, the FTSE 100 ended 1.1% higher while in France markets rose 2.7% and in Germany they added 2.8%.

But as he announced the rate cut to 1.25% from 1.5%, Draghi warned that the euro area was facing an "environment of high uncertainty".

And he conceded the current market turbulence is "likely to dampen the pace of economic growth in the second half of the year and beyond." » | David Gow in Athens and Jull Treanor | Thursday, November 03, 2011

Greece May Leave Euro, Leaders Admit

THE GUARDIAN: G20 summit on eurozone crisis is dominated by news about Greeks, while IMF is given more cash and fears grow over Italy

The G20 is planning to increase the crisis-fighting firepower of the International Monetary Fund after the start of its summit was dominated by the first open admission from EU leaders that it might be necessary for Greece to leave the eurozone if the single currency is to survive.

George Osborne said there was a "real sense of urgency" on a day that saw an emergency interest rate cut from the European Central Bank, backtracking from Greece over a referendum on its bailout conditions, and a recognition that the IMF may need extra resources to cope with a deteriorating global economy.

Amid distinct echoes of the financial market meltdown in the autumn of 2008, European leaders put massive pressure on the embattled government of Greek prime minister George Papandreou, forcing the abandonment of plans to hold a referendum and triggering a political showdown in Athens.

Downing Street sources said "strong political pressure to sort itself out" had been put on Greece, while Barack Obama said it was time to "flesh out" Europe's bailout plan. » | Larry Elliott, Patrick Wintour, and Angelique Chrisafis in Cannes | Thursday, November 03, 2011

Griechenland-Krise überschattet Gipfeltreffen

Barroso warnt Griechen vor “schmerzvollen” Folgen

G20 – Gipfelauftakt in Cannes

Der Euro oder das Chaos
Ein Austritt Griechenlands aus der Währungsunion zu Ende gedacht
NZZ ONLINE: Die Regierungskrise in Griechenland ist nicht zuletzt durch Papandreous Idee eines Referendums eskaliert. Das Volk hätte in letzter Konsequenz über ein Ja oder Nein zum Euro entscheiden müssen. Es wäre keine Wahl, sondern eine Zumutung gewesen.

Papandreou hat mit seinem Referendums-Plan eine Büchse der Pandora geöffnet. Nun wird das Szenario des Austritts eines Landes aus der Euro-Zone erstmals konkret durchgespielt. Die Unsicherheiten, was dies für die betroffene Volkswirtschaft bedeuten würde, sind enorm. Denkt man einige der möglichen Folgen durch, tun sich beängstigende Abgründe auf.

Kein Vorbild

Einen Plan oder ein Vorbild, wie der Übergang von der Gemeinschaftswährung zu einer eigenen Währung ablaufen würde, gibt es nicht. Es handelt sich ja nicht um eine Währungsreform, wie sie Deutschland 1948 mit Erfolg durchgeführt hat. Damals hiess es, eine Hyperinflation zu beenden und einer zerbombten Volkswirtschaft wieder auf die Beine zu helfen. Es ging nicht darum, sich aus einem grösseren Währungsverbund zu verabschieden. Auch das Beispiel Argentiniens, welches 2002 den Staatsbankrott erklärte und die Bindung des Pesos zum Dollar aufgab, lässt sich nur bedingt übertragen. Die in Argentinien bald spürbaren Vorteile der Abwertung der eigenen Währung und damit einer gestiegenen Wettbewerbsfähigkeit gegenüber dem Ausland dürfte im Falle Griechenlands viel weniger positiv zu Buche schlagen. Denn ausser dem Tourismus gibt es kaum eine bedeutende Exportwirtschaft, die profitieren könnte. » | Ruth Spitzenpfeil | Donnerstag 03. November 2011

The New Fifty Pound Note

US Fed Cuts Growth Forecasts for 2012

THE DAILY TELEGRAPH: The Federal Reserve said it now expects US growth to be weaker and unemployment higher than it thought in its last set of forecasts, as the central bank left the door open to fresh measures to help the world's biggest economy.

As expected, the Fed held interest rates at 0pc to 0.5pc, but cut its economic growth forecasts for 2012 to between 2.5pc and 2.9pc, down from 3.3pc to 3.7pc.

It also took a more gloomy view on jobs, predicting unemployment will stick at 8.5pc to 8.7pc next year against the 7.8pc to 8.2pc range it had forecast.

While acknowledging the economy had shown improvement in the third quarter, Fed chairman Ben Bernanke struck a downbeat note in his last press conference of the year. Read on and comment » | Richard Blackden | Thursday, November 03, 2011

Greece Will Be Cut Adrift If Bail-out Is Refused, Says EU
THE DAILY TELEGRAPH: Greece last night faced the threat of bankruptcy within weeks after the EU said it would not provide any more funding to the beleaguered country unless it agreed to support the euro bail-out.


The Greek government is expected to be unable to pay wages for state workers and pensions next month without a planned injection of £8billion of EU cash.

George Papandreou, the Greek prime minister, met his French and German counterparts ahead of today's G20 summit of world leaders.

Mr Papandreou has called a referendum on whether the Greek public supports the bail–out. The decision has plunged the rescue into turmoil.

After more than two hours of tense talks in Cannes, Mr Papandreou announced that the referendum would probably be held on Dec 4. He said: "This is a question of whether we want to remain in the eurozone; that's very clear."

He added: "I believe this will be a positive outcome. I believe the Greek people want us to stay in the eurozone."


Nicolas Sarkozy, the French president and Angela Merkel, the German Chancellor, said no funds from either Europe or the International Monetary Fund (IMF) would be made available until Greece had accepted the austerity programme. Continue reading and comment » | Robert Winnett, and Bruno Waterfield | Thursday, November 03, 2011

My comment:

The Prime Minister will travel today to the G20 summit but is expected to be little more than a bystander as key meetings take place between European and American leaders.

How humiliating for a British PM! Had we played a positive rôle in the EU, and had we bought influence, I dare say this wouldn't happen like this.

The British government has refused to contribute money to help the euro but European leaders are expected to lobby the Chinese, Russians and Brazilians for loans.

So, with our stinginess – we can find money for all manner of other things – we are allowing the Chinese, Russians and Brazilians to eclipse our standing in Europe. This is truly a disgrace. How embarrassing for all right-thinking Brits. But how sad, too! – © Mark

This comment appears here, too.

Paul Krugman: Why A Flat Tax Fails

Turmoil as Stressed-out Lloyds Boss Takes Leave

LONDON EVENING STANDARD: The boss of taxpayer-backed bank Lloyds has been given immediate sick leave after being diagnosed with extreme fatigue and stress due to overwork.

Antonio Horta-Osorio, 47, has been ordered to rest for between six and eight weeks because he is physically and mentally exhausted.

Lloyds directors, under their chairman Sir Win Bischoff, held an emergency board meeting this morning to decide how the bank will be run in Horta-Osorio's absence. » | Nick Goodway | Wednesday, November 02, 2011

Référendum grec - Séisme dans la zone euro

LE POINT: Les Bourses ont brutalement plongé après l'annonce grecque. Les dirigeants européens sont sonnés.

La zone euro a brutalement replongé dans l'instabilité mardi après l'annonce surprise d'un référendum en Grèce, un coup de poker qui menace la survie du gouvernement grec et le plan de sauvetage sur lequel les partenaires européens d'Athènes s'étaient mis d'accord jeudi dernier. Stupeur et indignation dominaient les réactions en Europe et dans le monde à l'annonce surprise, lundi soir, de ce référendum sur le plan de sauvetage par le Premier ministre grec Georges Papandréou, car un "non" des électeurs grecs pourrait être un prélude à une faillite du pays qui menacerait la viabilité de la zone euro. » | Source AFP | mercredi 02 novembre 2011

BBC: Germany warns Greece over rescue: The eurozone plan to save Greece from bankruptcy is not up for renegotiation, Germany has warned, ahead of emergency talks with Greece and France. ¶ "[What] we just agreed last week cannot be placed back on the table," Foreign Minister Guido Westerwelle said. » | Wednesday, November 02, 2011

Archbishop of Canterbury Rowan Williams Calls for New Tax on Bankers
THE DAILY TELEGRAPH: The Archbishop of Canterbury has thrown his weight behind the St Paul’s Cathedral anti-capitalist protesters as he called for a new tax on banks.

Dr Rowan Williams said that the Church of England had a “proper interest in the ethics of the financial world” and warned that there had been “little visible change in banking practices” following the recession.

He urged David Cameron and George Osborne to drop their opposition to a European-wide tax on financial transactions, which is expected to be formally proposed by France and Germany at the G20 summit of world leaders starting tomorrow.

“The demands of the protesters have been vague. Many people are frustrated beyond measure at what they see as the disastrous effects of global capitalism; but it isn’t easy to say what we should do differently. It is time we tried to be more specific,” Dr Williams said.

The archbishop’s intervention came after the Church and the City of London Corporation agreed to suspend plans to evict protesters who have been camped on the doorstep of St Paul’s for more than two weeks. The issue has caused deep divisions within the Church and led to the resignation of three members of St Paul’s clergy.

The archbishop said the rows over the handling of the demonstration had risked “forgetting the substantive questions that prompted the protest”. “The protest at St Paul’s was seen by an unexpectedly large number of people as the expression of a widespread and deep exasperation with the financial establishment that shows no sign of diminishing,” Dr Williams said.

“There is still a powerful sense around – fair or not – of a whole society paying for the errors and irresponsibility of bankers; of impatience with a return to 'business as usual’ – represented by still-soaring bonuses and little visible change in banking practices.” He added: “The best outcome from the unhappy controversies at St Paul’s will be if the issues raised… can focus a concerted effort to move the debate on and effect credible change in the financial world.”

The archbishop said he supported the main proposals of a recent report from the Vatican calling for widespread financial reform. Read on and comment » | Robert Winnett, Victoria Ward and Richard Alleyne | Tuesday, November 01, 2011

My comment:

Should we tax the bankers? Yes, till the pips squeak! Is the Archbishop right to intervene? Yes, of course. The Pope did; and so should he. We need to re-introduce ethics into banking, just as there used to be. – Mark

This comment appears here, too.

Referendum in Griechenland: Papandreou riskiert eine globale Finanzschmelze

WELT ONLINE: Mit dem Referendum drohen eine unkontrollierbare Insolvenz Griechenlands und ein Bruch der Euro-Zone. Allein die Ankündigung verursachte Milliarden-Verluste an den Märkten.

Noch vor wenigen Tagen schien der Euro endgültig gerettet. Doch jetzt stellt sich die Schicksalsfrage der Gemeinschaftswährung erneut, und die Lage ist gefährlicher denn je. Völlig unerwartet hat Griechenlands Premierminister Giorgos Papandreou am Montagabend ein Referendum zum jüngsten Brüsseler Hilfspaket angekündet.

Anfang 2012 sollen das griechische Volk darüber abstimmen, ob es das damit einhergehende Sparpaket mit trägt. Wie auch immer die genaue Frage lauten wird, über die die Hellenen befinden dürfen – im Endeffekt wird es auf eine Abstimmung über den Verbleib in der europäischen Währungsunion hinauslaufen. Denn ein Nein würde sämtliche Hilfsvereinbarungen der vergangenen zwei Jahre hinfällig machen. Mehr noch: Das gesamte Eurosystem steht dann zur Disposition.

Scheidet eine Nation aus der Währungsunion aus, ist damit ein Präzedenzfall geschaffen. Dann würde sich bei anderen schwachen Euro-Ländern unweigerlich die gleiche Frage stellen. Weiter lesen und einen Beitrag abgeben » | D. Eckert und H. Zschäpitz | Dienstag 01. November 2011

REUTERS.COM: Germans warn of Greek euro exit after referendum gambit: Germans expressed fury and frustration on Tuesday at the Greek prime minister's shock decision to call a referendum on a new financial rescue package, political leaders saying it could plunge Greece into bankruptcy and force it out of the euro zone. » | Noah Barkin and Stephen Brown | BERLIN | Tuesday, November 01, 2011

REUTERS DEUTSCHLAND: Angst vor Ende der Euro-Zone erschüttert Börsen: Frankfurt - Mit seiner Ankündigung einer Volksabstimmung über das Rettungspaket hat Griechenlands Ministerpräsident Giorgos Papandreou am Dienstag an den internationalen Finanzmärkten ein Beben ausgelöst. » | Dienstag 01. November 2011

Italian Glitz Belies Economic Despair

BBC: There are no price tags on the clothes in Brunello Cucinelli's showroom in Milan.

The people who shop in the designer's store do not need to worry about how much they are spending.

And Mr Cucinelli doesn't feel he needs to worry about talk of a double-dip recession in Europe.

"This is the century of China," he says.

"This will mean billions of human beings coming towards us and asking to live in a different way. These people are fascinated by our quality, by our culture, by our craftsmanship."

Too true, says Italy's luxury goods trade group Altagamma.

It sees sales in European markets growing by 3.75% next year.

It is in Asia, though, where the real growth will come, with 16.5% growth, the company forecasts.

"I don't think a Chinese man does not want to drink French champagne or wear a Swiss watch," says Mr Cucinelli.

Europe has its "own identity and we are moving towards a splendid century". » | Matthew Price, Europe correspondent | Tuesday, November 01, 2011