2011年11月1日星期二

US durable goods slip in August

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28 September 2011 Last updated at 15:05 GMT Production at a General Motors plant in Michigan New orders for US cars and car parts fell sharply in August Orders for big manufactured goods in the US fell slightly in August after a sharp jump in the previous month, due in part to a fall in demand for cars.

Durable goods orders fell by 0.1% to $201.8bn, roughly in line with expectations, after a 4.1% rise in July, the Commerce Department said.

However, plane orders grew strongly for the second month in a row.

The figures come a day after weak housing and consumer confidence data reinforced concerns for the US economy.

On Tuesday, the closely-watched S&P Case Shiller index showed stagnant house prices in July, while the Conference Board's consumer confidence index for September showed no recovery from August's weak level.

'Positive signals'

The durable goods figures from the Commerce Department said new orders for motor vehicles and parts fell by 8.5% between July and August.

This was partially offset by a jump of 23% in aircraft orders.

Analysts said the figures were reassuring, given the large jump in total orders in the previous month.

"The marginal slippage in August after a positive July is not enough to suggest trend has turned negative," said David Sloan at IFR Economics.

"In fact the August breakdown contains some positive signals for business investment."


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VIDEO: Syrian protests hit Lebanon tourism

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2 October 2011 Last updated at 19:03 GMT Help

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Abramovich 'intimidated' oligarch

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3 October 2011 Last updated at 13:34 GMT Roman Abramovich Roman Abramovich is worth an estimated £10.3bn Roman Abramovich intimidated a fellow Russian oligarch into selling him shares in an oil company at a large discount, the High Court has heard.

Boris Berezovsky made the claims about the Chelsea football club owner with regards to Russian oil firm Sibneft.

He alleges breach of trust and breach of contract and is claiming more than £3.2bn in damages.

Mr Abramovich, who is worth an estimated £10.3bn, has denied the claims by his former business partner.

The Chelsea Football Club owner sold Sibneft to Russia's state-owned gas monopoly Gazprom in a multibillion-dollar deal in 2005.

Both men attended the first day of the trial, which is expected to last for more than two months.

They sat at either end of the packed courtroom.

Laurence Rabinowitz QC, who represents Mr Berezovsky, told Mrs Justice Gloster both men had worked together to acquire Sibneft and became friends.

He said the pair remained friends until Mr Berezovsky "fell out with those in power in the Kremlin and was forced to leave his home and create a new life abroad".

Mr Berezovsky is now exiled to the UK.

The barrister said his client had been "betrayed" after falling out with Russian political leaders and leaving Russia in 2000.

'Threats'

"It is our case that Mr Abramovich at that point demonstrated that he was a man to whom wealth and influence mattered more than friendship and loyalty and this has led him, finally, to go so far as to even deny that he and Mr Berezovsky were actually ever friends," he said.

Mr Rabinowitz went on: "Mr Berezovsky's case in relation to Sibneft is that Mr Abramovich intimidated him into selling his very substantial interest in Sibneft to Mr Abramovich himself at a very substantial under value and that he did so in effect by making threats.

"The threats being... that unless Mr Berezovsky... sold those interests to him, he, Mr Abramovich, would take steps with a view to the interest being effectively removed from them by those in the Kremlin, led by President Putin, who had come to regard Mr Berezovsky as his enemy."

The barrister claimed that Mr Abramovich had also threatened to "take steps with a view to preventing" the release from prison of a close friend of Mr Berezovsky.

Mr Rabinowitz said his client contended that as a result of "this intimidation", he was pressured into selling his Sibneft interest to Mr Abramovich for "very substantially less" than it was worth.

The case continues.


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VIDEO: Typhoon Nesat shuts down Hong Kong

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29 September 2011 Last updated at 13:19 GMT Help

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2011年10月31日星期一

Dexia shares in new Greece slump

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4 October 2011 Last updated at 09:16 GMT Continue reading the main story Shares in the Franco-Belgian bank Dexia have fallen for the second day running as fears over its exposure to Greece debt continue.

They fell 37% at the open of Tuesday trading after losing 10% on Monday following an alert from the Moody's ratings agency.

Dexia is holding an emergency board meeting amid serious concerns.

The governments of France and Belgium, which are joint shareholders in Dexia, moved to guarantee its debts.

A joint statement from the countries' finance ministers said: "In the framework of Dexia's restructuring, the governments of France and Belgium, in coordination with our central banks, will take all necessary steps to ensure the protection of depositors and creditors."

The two ministers, who are at the wider European finance ministers' meeting in Luxembourg, have been discussing ways to support the bank.

Dexia's shares are worth only just over one euro, so almost any movement will result in a large percentage change.

Market concerns

Greece-linked concerns are also hitting financial markets again after eurozone finance ministers delayed a decision on giving Greece its next instalment of bailout cash.

It came after Greece said it would not meet this year's deficit cutting target.

A meeting set for 13 October, when finance ministers had been expected to sign off the next Greek loan, has now been cancelled, says BBC Europe correspondent Chris Morris.

The UK's FTSE 100 index was down 1.5% at the start of trading. France's Cac was 3.3% lower, while Germany's Dax had lost 3.2%.

Greece announced on Sunday that its 2011 deficit was projected to be 8.5% of gross domestic product, down from 10.5% in 2010, but short of the 7.6% target set by the EU and IMF.

Eurozone banks have been hit by cash outflows since the summer amid fears that Greece, and possibly other governments, may ultimately default on their debts, and even leave the eurozone, leaving their lenders sitting on big losses.

Dexia's exposure to Greek government debt totals 3.4bn euros ($4.5bn; £2.9bn). Its total exposure to Greece - including to private-sector Greek borrowers - is 4.8bn euros.

It has already written off 21% of its Greek debts, but market prices now suggest the eventually loss to lenders could be in excess of 50% of the amount owed by Greece.

The bank is already partly-owned by the two governments, after it received a 6bn euros joint bailout at the height of the financial crisis in 2008.

There were reports last week that the bank could be split up, and speculation of a possible nationalisation of the bank.

Another option under consideration is the sale of Credit Local, a unit of the bank responsible for lending to French local governments.


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Debt-hit Spain fears youth brain-drain

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4 October 2011 Last updated at 20:21 GMT By Matthew Price BBC News, Madrid Matthew Price spoke to some Spanish students about their job options

Spain's "Lost Generation" can be found studying literature in classroom 007 at Madrid's Complutense University.

Some 28 students sit alert, behind the rows of desks waiting for a series of questions.

How many of them are confident they'll get a job when they graduate next year? No-one raises a hand.

"What sort of job?" asks one young woman.

"Any," I venture. A few hands go up.

How many believe they will get a good job? No-one.

Who thinks they will have to leave the country to find the work they want? Almost everyone immediately raises a hand, and a glum look spreads across the faces.

A class with hands held aloft - a grim symbol of the mess Spain finds itself in.

The university dining hall - a concrete walled relic from the '80s - is a buzz of chatter. Students struggle through canteen meals.

Among them is Jesus Poveda. He is 20 years old, and without much hope of a future here.

"I think we will do well at work," he says, gesturing towards his fellow diners, "but not in Spain. We should leave the country."

Opposite him sits Guillermo Lerma, also 20 years old.

"Nowadays … [a] boss prefers someone who is studying because they don't have to pay too much." he says.

"You have temporary work here, but not a salary."

'Big advantage'

Spanish unemployment is the highest in Europe - and it's still rising. The number of people looking for work in September rose by 100,000 - the largest increase in that month for 15 years.

Continue reading the main story
I don't see it as a negative... Youngsters see it as normal to move, to study, to work part of their lives in other countries”

End Quote Valeriano Gomez Labour and immigration minister Overall some 21% of people are unemployed. Among the young it's far, far worse. Almost half of all 16 to 24 year olds are without jobs.

It's an astonishing and devastating statistic for a country that desperately needs a dynamic, thriving and young workforce to help it recover from the housing crisis that plunged this economy into recession.

"It's a problem not just for them, but for all of us," believes economics professor Gayle Allard from the Instituto de Empresa in Madrid. She is an American who has lived in Spain for 27 years.

"This is the generation that will be paying for the welfare state and pensions in the future. If they can't get started with relatively secure, well-paying jobs, start to put away some savings, start to accumulate assets, start paying into the welfare system, where does that leave the rest of us?" she asks.

"It's going to be backwards. We're going to be paying for these kids for years and years. It really puts at risk the whole [economic] model."

The latest recruit to the brain-drain of Spain is Irene Roibas - an economics graduate who's leaving for the Netherlands. It's partly for personal reasons, but also because she feels her future will be better secured outside her own country.

Protesters in Madrid, 4 Oct Budget cuts have brought many students out on to the streets to protest

"I don't think that universities are preparing people [here]," she argues. Nor "that students are taking all the opportunities they have".

Does Spain need to change? "Yes, I think so, definitely."

Not everyone though is worried about people like Ms Roibas. In the offices of the labour and immigration department, the minister, Valeriano Gomez, believes that youth migration is not a problem.

"I don't see it as a negative. Spain has changed a lot. Youngsters see it as normal to move, to study, to work part of their lives in other countries.

"I don't see it as a problem. I see it as a big advantage."

Escape valve

The European Union of course makes it possible, indeed easy, for the unemployed to head elsewhere to work - although it's not the totally free labour market many champion, thanks to the language barriers that exist across the continent.

Continue reading the main story
For the country to lose this group of people who could help raise the productivity of Spain, which is quite low, is a tragedy”

End Quote Prof Gayle Allard Instituto de Empresa So Europe provides some sort of escape valve for unemployed Spanish youth. Many head for the UK, for France, but also to the US and Latin America.

Venezuela's need for engineers is said to be attractive to many Spanish.

In time the hope will be that they return to Spain, with the experience and desire to help rebuild the economy.

But much of Europe will not attract them. Youth unemployment across the EU is - on average - high at one in five.

Spain is caught up in the debt crisis that's hitting Europe. The government insists things will improve, but some fear that, without the young, it will take longer.

"For the country to lose this group of people who could help raise the productivity of Spain, which is quite low, is a tragedy," says Prof Allard.

In the university canteen many agree with that.

Across Europe, youth unemployment is rising. And just like the continent's economic crisis, there is no end in sight.


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UK house prices 'treading water'

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29 September 2011 Last updated at 06:03 GMT Estate agency Buyers and sellers are still thin on the ground House prices continued to "tread water" in September - rising by 0.1% compared with the previous month, the Nationwide said.

This left the average price of a home 0.3% lower than a year earlier, at £166,256, the building society said.

Prices for the three months to September compared with the previous quarter were unchanged.

Market turmoil as a result of the eurozone debt crisis had hit confidence among buyers, Nationwide said.

"Sentiment towards major purchases is depressed, as a result of weak labour market conditions and ongoing pressure on household budgets from above-target inflation," said Robert Gardner, Nationwide's chief economist.

The figures are based on Nationwide's lending data at post-survey approvals stage.

'Sluggish demand'

He predicted that property prices would remain fairly stable over the rest of 2011, although the outlook for the global economy had "darkened".

Continue reading the main story
Approval figures continue to look promising as consumers take advantage of the competitive mortgage rates ”

End Quote Adrian Coles, Building Societies Association The struggle for people to find new jobs has resulted in "sluggish demand" from potential buyers.

That, together with a gradual rise in the number of properties on the market, had led to the current market conditions.

Some of these issues are most acute in the north-east of England.

Data from the Land Registry on Wednesday showed that prices in the region had fallen by 7.8% in the year to August.

In Hartlepool, prices had dropped by 15.7% over the same period, leaving the average home worth £82,561.

David Sharpe, a sales negotiator at Dowen estate agents in the port town, said that times were difficult for sellers, especially if they were unwilling to drop their asking prices.

"We are telling people to be realistic. If the price is right then it will sell," he said.

Negative equity

Many of the properties coming onto the market in Hartlepool were the result of repossessions, he said. These included repossessed properties from landlords who had overstretched themselves.

Some of the rock armour stockpiled ready for installation Hartlepool's sea defences are being rebuilt, but the housing market remains weak

This meant there were some two-bedroom homes in need of some work that were on the market for £20,000.

However, at the other end of the market, Dowen had just sold an eight-bedroom period property at auction for £345,000.

Many properties were selling if prices were lowered, Mr Sharpe said, including one "extreme case" which recently sold at auction for £30,000 when it had originally been on the market for £80,000.

Dropping prices was not necessarily an option for some sellers though.

"Those who bought at the peak of the market may well have borrowed more than the property is now worth," he said.

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iPad 'gains 80% of tablet market'

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27 September 2011 Last updated at 16:00 GMT Customer trying out an iPad at an Apple store in New York Apple's iPad, now in its second generation, has proven a big hit with consumers Apple's iPad captured 80% of the tablet computer market in the US and Canada in April to July, a report has said.

The iPad accounted for six million of all 7.5 million tablets shipped in North America during the second quarter of 2011, according to research group Strategy Analytics.

It described Apple as a "formidable market leader".

Yet it added that Amazon - which is expected to unveil its own tablet this week - could become a big challenger.

'Strong brand'

Stategy Analytics senior analyst Alex Spektor said: "Apple remains a long way ahead of its main rivals such as Motorola, Samsung, RIM, Asus and HTC.

"A combination of cool branding, user-friendly hardware, entertaining services and savvy retail distribution has made Apple a formidable market leader."

According to reports, online retailer Amazon could announce the release of its first tablet as early as Wednesday.

"Provided the pricing, screen size and hardware design are right, Amazon can be one of the main challengers to Apple's dominance," said Neil Mawston, director at Strategy Analytics.

"Like Apple, Amazon has a strong brand, compelling content, sophisticated billing systems and widespread distribution.

"In effect, Amazon's new tablet product represents a good opportunity to place an Amazon shopping cart in the hands of American consumers, offering optimised access to purchasing digital content or physical goods from the Amazon online store."

The continuing popularity of Apple's iPad comes despite its incompatibility with Adobe Flash software, meaning that users cannot view a large number of online videos.

Rivals such as Samsung are quick to highlight in their advertising that their tablets are able to use Flash.

Apple and Samsung, which makes the Galaxy range of tablets, are also continuing a number of legal disputes over patents.

On Monday, Apple declined to comment on reports that it had cut orders for iPad parts from its suppliers because of falling sales.

The study by an Asian analyst of US bank JPMorgan Chase said several suppliers had indicated that Apple had reduced its orders by 25%.

The iPad was first released in April 2010, with the second version, the iPad 2, following in March of this year.


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Will NFC make the mobile wallet work?

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2011年10月30日星期日

Eurozone manufacturing contracts

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3 October 2011 Last updated at 09:11 GMT German factory worker Markit says the German economy, the eurozone's main engine of growth, is stalling Manufacturing in the eurozone shrank at its fastest pace in two years in September, a business survey has shown.

Markit's purchasing managers' index (PMI) of activity dropped to 48.5 last month, from 49 in August. A reading below 50 indicates contraction.

That is the second consecutive month that eurozone manufacturing has shrunk.

Greece, the focal point of the eurozone's debt crisis, saw its output contract for the 25th consecutive month.

"Manufacturers are reporting the worst business conditions for over two years, facing a combination of lacklustre domestic demand and falling export sales," said Chris Williamson, Markit's chief economist.

The region has been weighed down as leaders struggle to prove that heavily indebted countries, led by Greece, will be able to avoid defaulting on their debts.

This has led to bailouts for Greece, the Irish Republic and Portugal - but the crisis has continued and has weighed on bonds and stocks globally.

Even in Germany, the engine of European economic growth, Markit's survey showed factory activity has come to a standstill.


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VIDEO: iPhone 5 'critical' for Apple

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4 October 2011 Last updated at 02:20 GMT Help

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US bank hit after debit fee news

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30 September 2011 Last updated at 21:56 GMT Bank of America logo Bank of America will roll out the change from next year on a state-by-state basis Shares in Bank of America have fallen 2%, a day after it announced plans to charge debit card users $5 (£3.20) per month to pay for their purchases.

Bank of America, the largest US bank by deposits, said it would introduce the fee early in 2012.

The move comes ahead of a new rule that will limit how much lenders can bill retailers for customer debit card transactions.

The bank's debit card holders will still get free cash withdrawals.

The monthly charge will apply to users of Bank of America's basic bank accounts, and will be in addition to any service fees they already have to pay.

A number of smaller US banks, such as SunTrust, a regional lender based in Atlanta, have already introduced charges for debit card purchases.

So far only Citigroup has ruled out introducing the change.

'Changed economics'

Bank of America said the new fee would be rolled out on a state-by-state basis.

Continue reading the main story
Bank of America is trying to find new ways to pad their profits by sticking it to its customers”

End Quote Richard Durbin Domocrat Senator Its move comes as an amendment to the Dodd-Frank Wall Street Reform and Consumer Protection Act goes into effect from 1 October.

The amendment, brought by Democrat Senator Richard Durbin, limits the fees that banks can charge retailers for processing debit card transactions to 21 cents.

This compares to the previous average of 44 cents, meaning a substantial fall in revenues for the banks.

A Bank of America spokeswoman said: "The economics of offering a debit card have changed."

Sen Durbin said Bank of America's move was "overt and unfair" and that he hoped its customers would "have the final say".

"Bank of America is trying to find new ways to pad their profits by sticking it to its customers," he said.


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VIDEO: 'Be curious and ask questions'

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29 September 2011 Last updated at 14:13 GMT Help

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UK's AAA rating confirmed by S&P

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3 October 2011 Last updated at 13:23 GMT George Osborne The news from S&P is likely to be welcomed by Chancellor George Osborne Ratings agency Standard & Poor's has confirmed the UK's AAA credit rating.

S&P said that despite sluggish growth, the UK's "diversified" economy and "flexible" fiscal and monetary policy would enable it to weather a slowdown.

The news will be welcomed by Chancellor George Osborne, who on Monday told the Conservative Party conference that he would not change economic course.

S&P said its AAA rating could be re-evaluated if the government weakened its resolve to reduce public debt.

An AAA rating is the highest possible. Any downgrade would raise Britain's borrowing costs, and also provide ammunition for the coalition government's opponents.

'Lacklustre' Continue reading the main story
The official assumption that the private sector will quickly step in to replace the withdrawal of public spending may prove optimistic, especially given weakening external demand”

End Quote S&P In an announcement, S&P said it had "affirmed its AAA long-term and A-1+ short-term sovereign credit ratings on the UK. The outlook remains stable."

It said the decision reflected the country's "wealthy and diversified economy, fiscal and monetary policy flexibility, and relatively adaptable product and labour markets".

S&P added: "In addition, we view the UK as having deep capital markets with strong demand for long-dated gilts by domestic institutional investors.

"There is also demand from non-residents for sterling-denominated UK government debt, which provides some diversification to the UK's investor base."

The agency said, however, that the UK's recovery has been "lacklustre".

It added: "The official assumption that the private sector will quickly step in to replace the withdrawal of public spending may prove optimistic, especially given weakening external demand."

The decision to hold the UK's rating comes just over a month after S&P shocked the markets with its first ever downgrade of US debt, cutting it from AAA to AA plus.


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Blatter expresses Brazil concern

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By Alex Capstick
BBC Sport reporter Sepp Blatter Brazil won the right to host the 2014 world cup in 2007 The head of Fifa Sepp Blatter has written to the President of Brazil to express concern over the country's preparations for the 2014 World Cup.

It comes amid growing tensions between football's world governing body and the Brazilian Government.

President Dilma Rousseff has been quoted in the Brazilian press as having demanded a "frank conversation" with Blatter to discuss the issues.

Fifa has repeatedly warned the the Brazilian organisers about work delays.

It now seems those concerns, surrounding the building of new stadiums and infrastructure around the tournament, extend to Fifa's legal demands on the host nation, with football's world governing body expecting to take total control of all aspects of the event.

One sticking point is believed to be the issue of ticket prices.

In Brazil students and elderly citizens get a 50 per cent discount for football matches and other forms of entertainment, and the Government wants the policy to be extended to the World Cup in 2014.

Another issue is Fifa's refusal to allow non-rights holders to show matches on television, with the Brazilians wanting local broadcasters to be given some limited access.


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Agency workers set for new rights

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29 September 2011 Last updated at 23:05 GMT Worker Some workers only remain in jobs on a short-term basis Agency workers are set to gain additional rights in pay and benefits under new rules that come into force on Saturday.

Workers will gain similar rights to full-time staff once they have completed 12 weeks of service doing comparable work.

Business groups have suggested the changes could cost firms up to £2bn a year.

There are an estimated 1.4 million agency workers in the UK.

Rights

Various legal protections are already in place for agency workers, as they are with full-time and part-time staff. They include the minimum wage and basic holiday rights.

Under the new European rules, which come into force in the UK on 1 October, agency workers will be allowed to use some of the same facilities as staff.

For example, from the first day of employment, they can use a creche, canteen or transport services. They will also be entitled to information about internal vacancies at the company they are working for, and to be given the opportunity to apply for them.

Continue reading the main story
If employers do not get their house in order the financial implications could be serious”

End Quote James Wilders Dickinson Dees After 12 weeks in the same role with the same employer, agency workers will be entitled to the same employment and working conditions as permanent staff. These include pay, overtime, shift allowances, holiday pay and bonuses not attributable to individual performance, as well as maternity rights.

However, agency workers will not be entitled to all the same benefits, such as occupational sick pay, redundancy pay and health insurance.

The rules are being brought in after long negotiations between unions and the government.

A survey of agency workers for the TUC found that some felt they were missing out on holidays, pay and overtime payments.

However, some business groups such as the Forum for Private Business suggested that the new rules would make the labour market less flexible and that job creation and recruitment would suffer.

Cut-off

There have been fears that some agency workers will simply be laid-off after 11 weeks so they do not benefit from the increased rights.

A company must not employ these workers again for another six weeks.

However, if a pattern emerged of an employer repeatedly only having 11-week jobs, then an individual could take a case to tribunal where fines of up to £5,000 could be handed out.

"These penalties are for each individual agency worker taken on. If employers do not get their house in order the financial implications could be serious," said James Wilders, from Dickinson Dees law firm.

Options for employers could include creating its own bank of temporary staff. They could offer a cash sum which they felt covered the extra benefits that should be available.

Alternatively, workers could be employed as a member of permanent staff by an agency, which paid individuals each month, then offered them to employers.


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2011年10月29日星期六

Banks rally on rescue deal hopes

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26 September 2011 Last updated at 20:21 GMT Continue reading the main story Last Updated at 17:44 GMT

Market indexCurrent valueTrendVariation% variationEuropean bank shares have risen as investors react to the latest attempts to stabilise the eurozone debt crisis.

A number of measures are being discussed according to reports from the weekend's international meeting in Washington.

They are expected to involve a 50% write-down of Greece's massive government debt, the BBC's business editor Robert Peston says.

French and German bank shares were up 10% at one stage in Monday trading.

European governments hope to have measures agreed in five to six weeks, in time for a meeting of the leaders of the G20 group in Cannes at the beginning of November.

But EU officials in Brussels stress that they should not be seen as "a single grand plan", the BBC's correspondent Chris Morris says.

The measures being discussed are:

Institutions that have lent money to Athens writing off about 50% of the money they are owedThe size of the eurozone bailout fund, the European Financial Stability Facility (EFSF), increasing dramatically to 2 trillion euros (£1.7tn; $2.7tn)Strengthening big European banks that could be hit by any defaults on national debt obligations.

However, on Monday evening AFP reported that German Finance Minister Wolfgang Schaeuble had told television news channel NTV that there was no plan to boost the size of the EFSF.

"We are giving it the tools so it can work if necessary," Mr Schaeuble was reported as saying.

"Then we will use it effectively but we do not have the intention of boosting its volume."

Pan-Europe gains

Uncertainty over how to tackle Greece's problems has led to some European bank shares losing half their value in recent months due to concerns about their holdings of Greek debt.

But on Monday, French banks, which are particularly exposed to Greece, rallied, with BNP Paribas and Societe Generale up 4% and 5.4% respectively, and Credit Agricole up 3.7%.

Continue reading the main story
Unless the banks are fixed, there will remain too big a risk that a financial crisis could turn the current global economic slowdown into something more akin to depression than recession”

End Quote image of Robert Peston Robert Peston Business editor, BBC News Germany's big banks were also up sharply. Allianz was up 10%, Deutsche Bank 8% and Commerzbank 7.7%. In the UK, Barclays rose 6.8% and RBS 3.3%.

The Frankfurt was up about 3% at close, and in Paris by about 2%. The UK's main index, the FTSE 100, was virtually unchanged.

US shares closed higher, with the Dow ahead by 2.5%, the S&P 500 by 2.3%, and the Nasdaq by 1.4%.

However, commodity prices were lower on remaining concerns that the eurozone crisis could affect the global economy.

Philip Tyson of brokerage MF Global told the BBC that the proposed bailout fund had to be at least 2tn euros.

He said: "Markets need confidence that the fund has the firepower to deal with the likes of Italy and Spain should contagion risks spread.

"It does need to happen, but there are big question marks about the detail, and exactly how it will happen. Time is running out."

Ben Critchley, a sales trader at spread betting group IG Index, said: "For now at least, it looks as if markets are giving some credence to a firm plan on how to tackle the debt crisis beginning to emerge.

"But if recent experience is anything to go by, this patience is unlikely to last too long if details are not forthcoming."

Key elements

The reports about the rescue proposals emerged from the annual meeting of the IMF in the US capital last week, attended by finance ministers from the G20 group of countries.

The package is expected to involve a quadrupling - from the current projected level of 440bn euros - in the firepower of the eurozone's main bailout fund, the EFSF.

Continue reading the main story
The problem, they said privately, was that ministers couldn't talk openly about a new solution to the crisis when the old one had not even been passed by national parliaments. This was a particular issue, naturally, for Germany.”

End Quote image of Stephanie Flanders Stephanie Flanders Economics editor, BBC News It is not entirely clear how any expansion of the facility would be managed, but one suggestion is for the EFSF to guarantee the first part of any losses creditors sustain from a government defaulting on its debts, with the European Central Bank (ECB) providing an additional 1.5tn euros of loans.

The EFSF would take on the main risk of lending to governments struggling to borrow from normal commercial sources - governments like Italy.

It is also thought that private investors in Greek debt are likely to have to accept a 50% reduction in what they are owed, our editor says.

Eurozone leaders agreed a plan in July, which has yet to be ratified, that provided for a reduction in Greece's repayments to banks of about 20%.

European officials in Brussels stressed that their current focus was on getting measures, including changes to the EFSF, agreed back in July ratified by 17 national parliaments within the eurozone.

It was proving a difficult task, the BBC's Chris Morris says, to get these less far-reaching changes passed, with Germany one of three assemblies to vote this week.

The third element of the rescue plan envisages a strengthening of big eurozone banks, which are perceived to have too little capital to absorb losses.

'Critical days'

Commodity prices remained under pressure, pulled between relief that a eurozone deal could be nearer and worries that the global economy faces a downturn.

Continue reading the main story Oil prices fell sharply in early trading, but recovered with Brent crude up 60 cents at $104.57 a barrel and US light, sweet crude up 55 cents to $80.40 a barrel.

The stronger dollar, which rose around 0.2% against a basket of currencies, also weighed on oil prices as it makes dollar-denominated assets more expensive.

Gold fell 3.2% to $1,603.95 an ounce, continuing recent declines from record highs. Copper, which has already fallen, was down another 4%.

Senior commodities analysts Edward Meir, at brokers MF Global, said: "These are very critical days and weeks ahead, reminiscent very much of the touch-and-go situation we were in back in 2008.

"The key difference this time around is that it is countries and not companies that are in danger of going bust."


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AUDIO: Would you go off sick with stress?

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5 October 2011 Last updated at 15:40 GMT Help

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AUDIO: Greek government 'must stop fooling around'

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A senior German politician in Angela Merkel's coalition has said that Greece should leave the euro.

Former Greek finance minister, Stefanos Manos tells us why the Greek government should get tougher ahead of today's meeting of Europe's finance ministers.

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Italy's credit rating is slashed

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5 October 2011 Last updated at 06:40 GMT Silvio Berlusconi The Italian Prime Minister said he had been expecting the announcement from Moody's The Italian government's credit rating has been slashed by Moody's from Aa2 to A2 with a negative outlook.

The ratings agency blamed a "material increase in long-term funding risks for the euro area", due to lost confidence in eurozone government debts.

Despite Rome's low current borrowing needs, and low private-sector debt levels in Italy, Moody's said market sentiment had turned against the euro.

Prime Minister Silvio Berlusconi said the decision was expected.

"The Italian government is working with the maximum commitment to achieve its budget objectives," said Mr Berlusconi.

He said that a plan to balance the government's budget by 2013 had been approved by the European Commission.

Sell-off

The initial market reaction to the downgrade was muted.

The news broke half an hour after the close of trading on the New York Stock Exchange.

But after-hours trading in stock market futures suggested that at least one percentage point of a late 4% market rally may have been wiped off.

Asian trading was mixed, with stocks initially surging after a report in the Financial Times that EU finance ministers were considering a plan to recapitalise European banks.

Continue reading the main story
The downgrading by Moody's of Italy's credit rating could not have come at a worse time for the eurozone”

End Quote image of Robert Peston Robert Peston Business editor, BBC News In Japan, stocks on the Nikkei index lost early gains to close down 0.86%. South Korea's main market lost 2.33%. Australian shares ended 1.40% higher.

Stock markets in Hong Kong and mainland China were closed for a holiday.

Oil prices were trading higher in Asia on hopes that efforts by European authorities to contain the eurozone crisis would prevent the world economy from slowing.

Brent crude for November delivery bounced back above $100 a barrel, rising $1.83 to $101.62.

Slow response

Analysts say Italy's downgrade is likely to be followed by similar cuts in the credit rating of Italy's banks, which would put severe pressure on their ability to borrow.

"This downgrade will make it even harder for Italy to borrow," says BBC business editor Robert Peston. "However, that is not the worst of it.

"If Italy is looking like a more risky place to lend, its banks... will find it harder and more expensive to borrow. The [eurozone] banking crisis will be exacerbated."

The rationale for Moody's downgrade will also be worrying for other eurozone governments, such as Spain, whose borrowing costs have also risen like Italy's as markets have lost confidence in their creditworthiness.

Moody's also raised warnings about Italy's growth outlook, citing structural economic problems in Italy, as well as the global economic slowdown.

Another problem noted by the rating agency was what it called political and economic "implementation risks".

"The question is, if [eurozone governments] will move fast enough... to really put in place a credible solution," says Robert Peston.

Continue reading the main story Use the dropdown for easy-to-understand explanations of key financial terms:AAA-rating GO The best credit rating that can be given to a borrower's debts, indicating that the risk of borrowing defaulting is miniscule.An expansion of the eurozone's bailout fund already approved by the euro's 17 governments in July - which is now seen by markets as inadequate - has still yet to be ratified by all the national parliaments.

The slow political response to the emerging crisis, necessitated by the European Union's institutional set-up, has been criticised by many commentators, including European Commission President Jose Manuel Barroso.

In hock

However the key issue for Moody's was the change in the market's attitude towards eurozone government debts.

The Italian government has for several years earned more in tax revenues than it spends. However, the government also has a large outstanding debt - equivalent to nearly 120% of GDP.

The government relies heavily on the markets' willingness to relend these debts as they come due, and to lend it the cost of meeting its interest payments.

Moody's said that Italy could be further downgraded to "substantially lower rating levels" if a further deterioration in investor sentiment made it even harder for the country to raise cash from the markets.

Italy's cost of borrowing rose sharply over the summer on market fears that a slowdown in Italian growth could make existing debts unsustainable.

That prompted the European Central Bank to intervene by buying up Italy's debts - a controversial policy in Germany. But despite the ECB's action, Italian borrowing costs have begun to creep up again in recent weeks.


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Could impact investing help India's poor?

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29 September 2011 Last updated at 08:34 GMT By Shilpa Kannan BBC News, Delhi People sorting plastic bags Virender wants to grow his business of recycling plastic Sorting out plastic bags collected from rubbish tips is a serious business for Virender Kumar.

Sitting on a pile of plastic bags, he is busy giving directions to the labourers he employs to help him with the recycling.

Once the bags are sorted, he sells them to recycling units to be melted down into plastic pellets.

He makes about 20,000 rupees ($410; £262) profit every month. But he has bigger ambitions that need funding.

He says that by working overtime, he saved money to start the recycling unit. But now he wants to hire more people and expand the business.

"But everything needs money," he says. "Banks don't lend to people like me."

India's growing middle class has been a target for many companies, but now another segment of society is increasingly becoming a focus for investors - people living below the poverty line.

But can businesses make a profit and also serve a social purpose?

Loan controversy

People like Mr Kumar are now being wooed by financial institutions such as the Shriram Group.

While millions of people across India have little or no access to formal finance, investment funds which want to make a social impact are lending a helping hand.

These funds invest in people and sectors that traditional banks ignore. It is called "profit with a purpose".

But they are using insurance as a means of helping small businesses rather than loans.

Microfinance, or giving small loans to low-income borrowers, has received a lot of bad press in India recently.

The sector was booming until a spate of suicides by borrowers in the southern state of Andhra Pradesh led to the authorities tightening regulations.

At its peak, the microfinance sector saw almost $7bn in loans distributed to 30 million borrowers, and Andhra Pradesh accounted for a third of the total business.

As a result of the new laws, debt repayments fell drastically and the entire sector is now facing a massive consolidation, and many lenders have been forced to shut up shop.

Microinsurance is different from microfinance as this provides a safety net to prevent people from falling back into poverty.

The International Labour Organisation describes microinsurance as a mechanism to protect poor people against risk (accident, illness, death in the family, natural disasters etc) in exchange for insurance premium payments tailored to their needs, income and level of risk.

If a person earns $5 a day, making $150 a month, and a typical insurance product is under $4 a month, that person is able to, with that very limited amount of capital, free their family up substantially.

Having that extra protection means that instead of sending the children to work to save for a rainy day, they can send them to school.

Capital injection

Leapfrog is a $135m US-based impact investment fund that was set up to invest in companies that underwrite or distribute insurance.

The fund is backed by billionaire George Soros and e-bay founder Pierre Omidyar, as well as a consortium of banks, pension funds and reinsurers.

Leapfrog says that it is a big myth that because people have low incomes they are unable to pay for meaningful products.

"We are looking at the next billion consumers," said Andrew Kuper, co-founder of Leapfrog.

"The consumers who are rising out of poverty and into the middle-classes… aspiring, seeking to acquire financial services and other services that allow them to go on their journey in a more effective way."

He thinks businesses that serve that segment are going to have a massive competitive advantage.

Continue reading the main story Andrew Kuper
The ability with a very small percent of your income to totally reshape your microeconomic picture is a huge opportunity”

End Quote Andrew Kuper co-founder, Leapfrog "The ability with a very small percent of your income - less than 4% - to totally reshape your microeconomic picture and the daily choices that you and your family make is a huge opportunity.

"What isn't happening is companies getting to grips with the notion that you can serve that population, and we find that it is a very narrow slice of companies. Fortunately we are engaging with them."

More than 85% of Shriram Group's customers are first-time buyers of any financial product. It is the first provider to more than 98% of its customers. The group hopes that the capital injection from Leapfrog will benefit 10 million people in India.

G S Sundararajan, managing director of Shriram Capital, says his company is targeting people with an average annual income of $2,500.

"We already offer financing and investment services to the lower-income masses across India. Now, we plan to increase it even further. We'll be using Leapfrog's expertise to design new insurance products that are more effective for our existing consumers."

Huge potential

Microinsurance is not a new concept in India. The country was one of the first to introduce microinsurance regulation.

The Insurance Regulatory and Development Authority (IRDA) made it mandatory for all formal insurance companies to extend their activities to rural and social sectors as early as 2002.

But microinsurance companies face a huge challenge in connecting with customers. Many companies have been trying creative ideas - for example, the Shriram group is using its transport finance wing to connect with truck drivers and sell products to them.

India's biggest fertiliser company, IFFCO, provides free insurance cover to farmers along with each bag of fertiliser purchased. It has a joint venture with Tokio Marine and Nichido Fire Group, the largest listed insurance group in Japan.

It also provides a cattle insurance policy that covers the death of the animal due to accident, disease, surgical operations, strike, riots and even acts of terrorism or an earthquake.

Virender Kumar's truck A loan increased Virender's profits by 50%, by helping to pay for a new truck

The potential is huge. A study by the United Nations Development Programme (UNDP) in 2007 reported that up to 90% of the Indian population, or 950 million people, were excluded from the insurance market and represented a powerful "missing market".

But the private sector is risk-averse when it comes to investing in such people.

And just government resources and charitable donations cannot address the enormous social problems the country faces. Impact investments offer an alternative.

Reducing poverty

Recognising this growing segment, the biggest newspaper in the country, The Times of India, in association with J P Morgan, has announced awards for social impact.

Rahul Kansal is the organiser of the awards and he says that there are opportunities beyond just microinsurance for social impact in the country.

He says that large scale private capital can be channelled to public works.

"Increasingly we are seeing that in a country like India, there are avenues like healthcare, education, civic areas like waste management which need attention."

"The government cannot cope with the size of the problem. This is where organisations both for profit and non-profit can step in."

He thinks this large-scale neglect and need could be the next big investment opportunity.

A loan helped finance a new truck for Virender Kumar, increasing his profits by more than 50%. But he has also got life insurance and accident cover that came bundled with his truck financing, to protect his family.

It is people like him that are benefiting most by impact investments. Reducing poverty requires not just the generation of income among the poor, but also the protection of these incomes.

They are people who are making the transition from the informal to the formal economy - and bringing financial products to them gives them a chance to be included in the country's rapidly growing economy.


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'More help' on childcare costs

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7 October 2011 Last updated at 00:13 GMT Child Parents eligible for tax credits can get help with up to 70% of their childcare costs Parents on low incomes who are working less than 16 hours a week will be eligible for childcare support from 2013, under new government plans.

Some £300m has been allocated for the move, worth up to £175 a week for one child and £300 for two or more.

Ministers say it will benefit 80,000 families receiving universal credit.

Charities had been calling on them to increase the amount they planned to spend on childcare support as part of sweeping welfare reforms.

Under the universal credit system, a single payment will replace child tax credit and working tax credit, as well as income-related jobseeker's allowance, housing benefit, income support and income-related employment support allowance.

The switchover will begin in 2013 and continue into the next parliament.

'First steps'

The universal credit budget had been set at £2bn, but ministers say an additional £300 million has been found to extend childcare tax credits.

At present, families can get credits to cover up to 70% of their weekly childcare costs, but only if they work more than 16 hours a week. The exact amount given depends on income level, but couples with an income up to £41,000 can qualify.

Work and Pensions Secretary Iain Duncan Smith said: "We are determined to help more parents take their first steps into work, but under the current minimum hours rule parents are trapped in state dependency without the childcare support they badly need - providing yet another barrier to work."

Deputy Prime Minister Nick Clegg said: "Childcare support is vitally important. It's a lifeline for families up and down the country, particularly for mums who want to get back into work, maybe for just a few hours a week after they've had children.

"This will help an extra 80,000 families who have previously had no help at all with childcare costs."

Childcare costs vary widely, but the government says the benefit would help low income families pay for an average of about 40 hours a week.

Labour said the government had already reduced support from 80% to 70% of weekly costs.

Liam Byrne, shadow work and pensions secretary, said: "Today's announcement is frankly smoke and mirrors. It won't mean a penny more help for parents already struggling on childcare tax credits.

"Universal credit is now set to lock in a 'parents' penalty' that cuts back childcare payments so hard that many parents will be forced to give up work.

"With parents struggling to make ends meet, it beggars belief that the Tories are stopping parents working the hours and shifts they need by taking away their childcare."

In a recent survey of 4,359 parents by the Daycare Trust and Save the Children, nearly a quarter said the cost of childcare had put them in debt.

A quarter of those on the lowest incomes said they had given up work and a third had turned down work because of childcare costs.


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2011年10月28日星期五

Pension talks yield 'no progress'

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6 October 2011 Last updated at 00:19 GMT Brendan Barber TUC secretary general Brendan Barber has said the sides are a long way apart Talks between ministers and union chief Brendan Barber over public sector pension reform have resulted in no progress, sources have told the BBC.

TUC chief Mr Barber met Cabinet Office minister Francis Maude for impromptu private talks at the Conservative conference in Manchester this week.

Unions are balloting members for strike action on 30 November over plans to increase contributions from employees.

The next round of face-to-face talks is due on 24 October in London.

A source close to Mr Barber said he used the impromptu meeting to again urge the government to "give a degree of confidence that they are serious about maintaining sustainable public service pensions in the future".

'Groundhog day'

Unions say the changes are unfair and financially unnecessary. Ministers insist that pension contributions must be increased to make schemes sustainable.

In recent weeks Mr Maude has described the talks as "like Groundhog Day", with no progress being made.

Both sides have previously insisted they are committed to resolving their differences through talks but the BBC understands the latest meeting again yielded little.

Mr Barber also met Chancellor George Osborne at a party during the conference, although it is unclear whether the issue of pensions was discussed.


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Knowledge economy: Global best school buildings

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4 October 2011 Last updated at 23:30 GMT

Photos from around the world on 4 October

Court overturns convictions of Knox and Sollecito

Attack in the Somali capital, Mogadishu

Hundreds camp out in New York's financial district

Libyan transitional authority troops ceasefire

Anti-Wall Street protest march

Nalgae makes landfall in Philippines

A selection of pictures from this week's news

Anti-Gaddafi fighters capture Sirte airport

Photos from around the world on 29 Sept


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VIDEO: Youth unemployment rise in Eurozone

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4 October 2011 Last updated at 21:07 GMT Help

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VIDEO: Check, check and check again

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29 September 2011 Last updated at 14:12 GMT Help

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AUDIO: Germany 'committed to eurozone'

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Germany's Chancellor Angela Merkel will today ask her country's politicians to sign off a plan to give more money to Europe's bail out fund.

Peter Altmaier, leader of the parliamentary group for the Christian Democrats, predicts the result and the long term consequences for Angela Merkel.

And Europe editor Gavin Hewitt previews a test of her power and authority.

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2011年10月27日星期四

AUDIO: Autonomy due to decide on HP bid

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3 October 2011 Last updated at 11:33 GMT Help

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UK banks hit by Moody's downgrade

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7 October 2011 Last updated at 07:19 GMT RBS logo Shares in Royal Bank of Scotland have opened sharply down following the downgrade Moody's has downgraded the credit rating of 12 UK financial firms including Lloyds, RBS, Nationwide, and Santander.

Moody's said it now believed the UK government was less likely to support some firms if they got into trouble.

However, the firm emphasised that the downgrades did not "reflect a deterioration in the financial strength of the banking system".

The news sent bank shares lower, with RBS 3.8% off and Lloyds 3.36% down.


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Video: protesters March on Wall Street

Help 6 October 2011, last updated on: 10: 05 GMT

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FirstGroup sells German bus unit

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30 September 2011 Last updated at 06:47 GMT FirstGroup buses in Manchester FirstGroup is focusing on its core markets in the UK and US Rail and bus firm FirstGroup has announced the sale of its German bus operations for 5.5m euros (£4.8m).

The Aberdeen-based transport company said it had sold FirstGroup Deutschland to Marwyn European Transport.

FirstGroup chief executive Tim O'Toole said the disposal marked "a further step in our programme of small asset and business disposals".

This was part of the group's strategy to focus on its core operations in the UK and North America, he added.

FirstGroup Deutschland operates about 130 buses in the Rhineland Pfalz region in south-west Germany.

On Thursday, FirstGroup said it expected like-for-like passenger revenue at its UK rail division to rise by 9% in the six months to 30 September, and revenue at its UK bus division to increase by 1.2%.

FirstGroup also operates school buses and the coach business Greyhound in the US.


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Soros' sympathy for bank protests

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3 October 2011 Last updated at 20:34 GMT Protesters in Los Angeles on 3 October 2011 Other protests have been held in Boston, Los Angeles and Chicago Billionaire investor George Soros says he can sympathise with the ongoing protests on Wall Street, which have spread to other US cities.

He said he understood the anger at the use of taxpayers' cash to prop up stricken banks, allowing them to earn huge profits.

A large rally is planned for Wednesday in New York City, with backing from union groups.

More than 700 protesters were arrested on Saturday on Brooklyn Bridge.

The demonstrations - based at Zuccotti Park, near Wall Street and the Federal Reserve - are now entering their third week.

Answering questions during a news conference at UN headquarters on Monday, Mr Soros said: "The decision not to inject capital into the banks, but to effectively relieve them of their bad assets and then allow them to earn their way out of a hole leaves the banks bumper profits and then allows them to pay bumper bonuses."

Mr Soros was announcing a gift of $40m (£26m) to a development project in Africa.

'Corporate zombies'

Protests continued on Monday in New York, with many under the Occupy Wall Street banner wearing make-up to pose as "corporate zombies", eating fake money.

Protesters outside the Federal Reserve of New York Protesters dressed as zombies took to the streets of Manhattan on Monday

One of the protesters, John Hildebrand, 24, an unemployed teacher from the US state of Oklahoma, told the Associated Press news agency: "My issue is corporate influence in politics. I would like to eliminate corporate financing from politics."

Union members are expected to back a large rally planned for Wednesday.

Last Thursday, the United Federation of Teachers and the Transport Workers Union, which has 38,000 members, pledged support for the protests.

In Los Angeles on Monday, an anti-Wall Street demonstration was held outside the court where Michael Jackson's doctor is being tried for manslaughter.

Protests were held in recent days in Boston, Los Angeles and Chicago in front of their respective cities' Federal Reserve buildings. A march was also held in Columbus, Ohio.

A rally is planned, too, for later this month in the Canadian city of Toronto.

On Saturday, 700 protesters were arrested on the Brooklyn Bridge, where traffic was halted for several hours.

The protesters won support from actor Alec Baldwin, who posted videos on his Twitter page that had already been widely circulated.

One appeared to show police using pepper spray on a group of women, and another a young man being tackled to the ground by an officer.

"This is unsettling," Baldwin wrote. "I think the NYPD has a PR problem."

But the NYPD said the marchers had been warned many times not to stray on to the road, and released video footage on Sunday showing protesters chanting "take the bridge".


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Climate 'could hit Canadian GDP'

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29 September 2011 Last updated at 23:19 GMT Broken ice in Baffin Bay Current federal estimates say climate change will cost Canada about $5bn a year by 2020 Negative effects of climate change could cost Canada the equivalent of 1% of its GDP by 2050 and 2.5% by 2075, a government-backed report has said.

Damage could reach C$41bn ($20bn; £27bn), estimates say, depending on global emissions, the economy and population growth.

Higher temperatures could kill forests, flood low-lying coastal areas and spread disease, the report said.

The panel denied that Canada would gain from global warming.

"Climate change presents a growing, long-term economic burden for Canada," said Canada's National Round Table on the Environment and the Economy (NRTEE).

'Strong, stable, responsible'

In a 162-page report, measures proposed included enhanced forest fire protection, pest control and an effort to foster the growth of climate-resilient trees.

The panel also recommended limiting construction in in low-lying coastal areas vulnerable to flooding, and developing technologies to limit pollution and slow ozone accumulation.

It said climate-related costs to Canada could increase from C$5bn in 2020 to between C$21bn and C$43bn by 2050.

These figures depended on co-ordinated global action to limit warming to 2C by 2050, the report said.

The findings of the panel were seized on by opposition politicians who believe the Conservative government should be doing more to confront the threat of global warming.

"Our coastal communities, our forestry industry, and the health of Canadians will all suffer unless we take action right now," said Laurin Liu, of the New Democrats, Canada's main opposition party.

"This out-of-touch government has produced no plan to deal with the impact of climate change," he added.

But Environment Minister Peter Kent said Canada needs "a strong, stable, environmentally responsible ... government to take care of the environment, and that is exactly what we are doing".

The report also said Canada had much to gain from an international, Kyoto-style treaty focussing on cutting carbon emissions beyond 2012.


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2011年10月26日星期三

Hong Kong maid wins landmark case

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30 September 2011 Last updated at 04:40 GMT By Katie Hunt Business reporter, BBC News Migrant Workers Union members outside the Hong Kong high court Foreign domestic helpers are required to leave the country within two weeks if dismissed by employers Hong Kong's High Court has ruled that a domestic helper from the Philippines should be allowed to apply for permanent residency in the city.

The case was brought by Evangeline Banao Vallejos, who has lived in Hong Kong since 1986.

The ruling follows a landmark judicial review and could lead to more than 100,000 other foreign maids winning rights to residency.

The case has sparked widespread debate on equal treatment for foreign maids.

Mark Daly, the lawyer acting on behalf of Ms Vallejos, said that she was very pleased by the ruling, which meant that all domestic helpers now were able to apply for permanent residency.

"When we told her she said 'thank God'," he said, adding that it was a normal working day for her.

"It's a good day for the rule of law," he added.

Mr Daly pointed out that the government had 28 days to appeal.

A spokesman said the government was analysing the judgement and would issue a formal response later in the day.

Public resources

Some critics have said granting residency to domestic helpers would strain the provision of health care, education and public housing.

Continue reading the main story
We hope it will pave the way for Hong Kong to open its doors to equal treatment for migrant workers”

End Quote Norman Carnay Mission for Migrant Workers While other non-Chinese nationals can obtain residency after working in Hong Kong for seven years, immigration rules exclude domestic helpers from seeking permanent residency.

Human rights lawyers and many domestic helpers argue that this is discriminatory.

Permanent residency means that a person can remain in Hong Kong indefinitely, vote and stand in elections.

But some politicians and commentators warned that allowing foreign domestic helpers to have permanent residency would allow them to bring their children and other relatives to the city, who would require education and housing.

Equal treatment

Norman Carnay, programme officer at the Mission for Migrant Workers said that he welcomed the decision.

"We hope it will pave the way for Hong Kong to open its doors to equal treatment for migrant workers," he said.

But he added that right of abode was not necessarily a priority for many domestic helpers.

"From surveys of our community, the more pressing concerns are wages and working conditions," he said.

There are more than 300,000 foreign domestic helpers in Hong Kong, mainly from Indonesia and the Philippines. It is thought that around 120,000 have lived here for more than seven years.

They are required to live with their employers and cannot accept other jobs.

Without the right to permanent residency, if a maid is dismissed by her employer, she must find another job as a domestic helper or leave Hong Kong within two weeks.

Hong Kong's domestic workers have a guaranteed minimum wage of 3,740 Hong Kong dollars ($480; £308) a month and day off each week, meaning their working conditions are better than other countries in Asia with large numbers of domestic helpers, such as Singapore.


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A lost decade for investors?

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27 September 2011 Last updated at 07:46 GMT By Gemma Godfrey Investment committee chairman, Credo Capital Gemma Godfrey Gemma Godfrey: there is an investing "sweet spot" Over the past 10 years, investors have experienced a stark divergence of fortunes, with some making substantial amounts of money whilst others have suffered losses.

Timing, picking the right investments and employing the right strategy have determined their fate.

When investing, timing can be crucial. You make money if you buy something when it is cheap and sell it when it is perceived to be more valuable. If you buy the same object when its price is high, making a profit will be that much harder.

In the run up to the year 2000, investors bought shares in technology companies to such an extent that values predicted firms would make unrealistic profits. This 'bubble' burst and the stock market fell. September 2001, the start of our 10 year period, lies within this period of selling. Therefore, together with the fall from the financial crisis in 2008, losses were enough to offset the substantial gains achieved in the seven years between these events.

Investing in the 'sweet spot'

An initial investment of £100 in the FTSE 100 (the index of the 100 largest companies listed in the UK), would have fallen in value by 4%, returning only £96 all these years later.

This return hides a huge divergence of fortunes. Firstly, when choosing the size of the firm in which to invest, there appears to have been a 'sweet spot' for medium-sized firms in the FTSE 250 (the next 250 companies after the largest 100 listed on the London Stock Exchange) - small enough to grow substantially, but large enough to have weathered the storms.

Secondly, the sector. The shares of companies selling basic materials almost tripled in value over the past decade, in contrast to those of financial firms, which lost half the initial investment. The belief driving these moves was that certain materials (for example copper and iron) have become harder to mine and produce, making their producers more valuable. In contrast, banks have suffered from loan defaults, bankruptcies and increased regulation, which have all hurt profits.

Thirdly, the geographic focus. Whilst investing in UK, US or European companies on the whole produced meagre returns or losses, investing in the developing markets of China, Russia or Brazil generated astounding returns; Brazil stands out with a gain of 578%.

Investment returns of different markets Basic Materials outpaced the FTSE 250, while the FTSE 100 did better than financial shares Reinvesting is key

Short-term investment decisions have had as much of an impact as choosing where to place money for the longer term.

During our investment timeline, many companies regularly paid a portion of their profits to shareholders, so-called dividends. How an investor used this payment strongly dictated how much money they made.

If it was re-invested back into the stock market it continued to generate returns, if it was put into their bank account it did far less.

Returns when re-investing The MSCI World Equity index - boosted by reinvesting returns, lagging when taking out the money Wealth of opportunity

There are other assets an investor could have bought apart from shares, some of which performed far better and greatly enhanced the amount of money made over this period.

Lending to governments or companies in developing countries proved highly profitable, with relatively large interest payments made to the lender (i.e. the investor) until the loan was repaid.

Another interesting investment was property, which in general provided investors with highly attractive returns over the past decade, even after the sharp correction during the recent recession.

Finally, hedge funds, like investors, have had a mixture of fortunes. With focus on different markets, some have made staggering returns whilst others are still nursing losses.

Interestingly, it has not been worthwhile to bet on a falling market. Money managers lost money if they focused solely on making a profit when certain investments fell in value.

Unsurprisingly, fund managers with investments in emerging markets (like Brazil, Russia and China) almost tripled their initial investments.

When investing, during the past decade it paid to be particular.

Emerging markets returns Brazil was the top performer; hedge fund investments in emerging markets were runner up; government bonds did well; the S&P Global Property index provided returns; UK stocks were lagging

Gemma Godfrey is a quantum physicist, former hedge fund manager and now chairman of the investment committee of wealth management firm Credo Capital.

The opinions expressed are those of the author and are not held by the BBC unless specifically stated. The material is for general information only and does not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Links to external sites are for information only and do not constitute endorsement. Always obtain independent, professional advice for your own particular situation.


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Chinese demand boosts Yum profits

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5 October 2011 Last updated at 01:37 GMT Pizza Hut outlet in Beijing Yum Brands is planning to expand its presence in China even further to cater to growing demand Fast food giant Yum Brands has reported a jump in third-quarter profit as sales at its Chinese outlets continue to grow.

Yum reported a net profit of $383m (£248m) in the three months to 3 September, up from $357m last year.

The owner of Pizza Hut and KFC said same-store sales in China rose 19% during the period.

With close to 4,200 outlets, China accounts for more than 40% of Yum's profits.

"This tremendous sales growth, combined with our expectation to open a record 600 new restaurants this year, gives us even more confidence our China business model is as strong as ever," said David Novak, chairman and chief executive officer of Yum Brands.

Domestic trouble

While it continues to grow in China and other emerging markets, Yum Brands has been struggling in the US market.

The company said like-for-like sales at its US outlets fell as much as 3% in the third-quarter, resulting in a 16% drop in profit during the period.

"We're obviously disappointed in our US performance," Mr Novak said.

Analysts said the company was still suffering the effects of the lawsuit against Taco Bell earlier this year, over allegations that it used large amounts of additives and little actual meat in its beef products.

Though the company denied the claims and the lawsuit was dropped, it damaged Yum's brand image.

"They've got a job to do PR-wise to repair that," said Jack Russo of investment firm Edward Jones.

"It looks like it's stabilising and we'll get to the point next year where they'll be bouncing up against some easier comparisons so that will help," he added.

Yum said that it was planning to launch innovation and productivity initiatives in the US in a bid to improve sales and profits.


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VIDEO: Eurozone crisis sparks fears for Dexia

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AppId is over the quota
4 October 2011 Last updated at 22:15 GMT Help

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Tatas suffer India land setback

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AppId is over the quota
28 September 2011 Last updated at 08:09 GMT File photo of police outside the proposed Tata motors plant in West Bengal in 2008 Tata Motors was forced to abandon its Nano plant in 2008 after violent protests by villagers A court in India has ruled that West Bengal's state government acted legally in reclaiming land where Tata Motors wanted to build its low-cost Nano car.

The 1,000-acre plot of land was acquired in 2006 by the state's former communist government and leased to the company for 99 years.

The new state government took back the land in June to return it to farmers.

Tata challenged the move in the high court in Calcutta and is expected to take its appeal to the Supreme Court.

The BBC's Rahul Tandon in Calcutta says that the case has been closely followed across India, which needs to free up land for industry if it wants to continue its economic growth.

But many farmers say that cannot happen at their expense, our correspondent says.

The high court ordered Tata Motors to remove all equipment from the factory at Singur, near Calcutta, within two months.

It ruled that the company was entitled to ask for compensation if any needed to be paid.

After months of violent protests, the company pulled out of West Bengal last year and shifted production to a new plant in the state of Gujarat.

In May, the Trinamul Congress party led by Mamata Banerjee trounced West Bengal's long-serving communist government on the promise that she would restore the land to the farmers.

In June, West Bengal passed a law that would allow its return to them.

The state government started handing back the land, a move which was challenged in the Supreme Court. It directed the government to suspend the return of land until the high court in Calcutta had ruled on the matter.


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US factories 'see slight pick-up'

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AppId is over the quota
3 October 2011 Last updated at 15:13 GMT Worker in a General Motors powertrain factory Employment in US factories reportedly strengthened in September, although activity remained subdued Manufacturing in the US has registered a small but unexpected pick-up, according to a widely watched survey.

The ISM Manufacturing Index rose to 51.6 in September, from 50.6 a month earlier, beating expectations that the index would remain unchanged.

Any level above 50 indicates expanding activity at US factories.

However, new orders continued to fall, the survey suggested, with respondents saying they were worried by the weak recovery and political deadlock.

Separate data, released simultaneously by the US Commerce Department, showed that the construction industry also grew much more strongly than expected in August.

US stocks reacted strongly to the news, with the main Dow Jones index jumping 1.4%, before later falling back again on what is proving another volatile day of trading.

New orders

The manufacturing sector has now expanded for 26 months in a row, since the 2008-09 recession ended, according to the survey.

But industry continues to endure a soft patch, with the index still well below the 55-60 range seen earlier in the recovery.

Production - which is only one measure of activity included in the survey - also expanded, having been reported as shrinking in August. Employment also picked up more strongly.

Continue reading the main story But the backlog of orders continued to weaken, reaching its lowest level since April 2009.

"We see production is up, back in growth territory, but manufacturing is working off its backlog of orders," said Bradley J Holcomb, who chairs the survey committee.

"The main concern going forward would be if new orders didn't pick up."

He added that anecdotal evidence pointed to concern over the sluggish economy, political and policy uncertainty in Washington, and forecasts of ongoing high unemployment that will continue to put pressure on demand for manufactured products.

'Bumping along the bottom'

Meanwhile, construction spending in the US rose 1.4% in August, according to separate data from the Commerce Department.

That also easily beat market expectations of a 0.3% contraction, and reversed a 1.4% fall seen in July.

Public sector spending accounted for the bulk of the expansion, while private sector spending grew a much weaker 0.4%.

"[It] was better than what we were expecting," said Sean Incremona, economist at financial analysts 4cast.

"We got a big upward correction in public spending - that was due, it has been very weak.

"On the private side we got an upside there but the construction industry is really just parallel to housing, which is really just bumping along the bottom of its cyclical range."


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2011年10月25日星期二

Supermarket 'law shops' to open

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6 October 2011 Last updated at 00:43 GMT Supermarket shoppers Under the plans consumers will be able to buy law services in supermarkets Banks and supermarkets are to be able to sell consumer legal services in England and Wales for the first time following a change in law.

The government says the new Legal Services Act will offer more choice and better value for the public.

It says it also means law firms will benefit from investment and allow them to explore new markets.

But critics have said it would undermine the quality of advice.

The government says the change would encourage economic growth in the industry and raise the profile of the UK as a first-class legal services market.

Justice Minister Jonathan Djanogly said it was a "landmark day" for the legal industry.

"Our legal services are already rated among the best in the world, used by millions of people around the globe as well as in the UK, and these changes will set them up to move to new heights. They will enable firms to set up multi-disciplinary practices and provide opportunities for growth," he said.

"Potential customers will find legal services become more accessible, more efficient and more competitive."

Legislation and regulation has restricted the management, ownership and financing of firms providing legal services for hundreds of years.

Currently, solicitors and barristers' chambers are owned by the lawyers themselves under partnerships.

Critics have dubbed the act "Tesco Law," and the move has come under attack from some lawyers, including a coalition of about 100 firms, when it was first announced in 2009.

They said it could wipe out good quality, local legal advice.


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Icelandic doubts about the euro

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AppId is over the quota
29 September 2011 Last updated at 23:07 GMT By Paul Henley BBC News, Iceland Formal negotiations for Iceland to join the EU come in the middle of the eurozone crisis

Bombarded as Europeans are, these days, by news of economic disaster in the eurozone, few would expect countries to be queuing up to adopt the single currency.

But in Iceland, which this summer opened formal negations to become a member of the EU, the troubled currency remains the big attraction.

"Compared to the Icelandic krona, the euro is like a rock in the sea, you know," is how Gylvi Arnbjoernsson, president of the Icelandic Confederation of Labour, puts it.

He represents an impressive 85% of his country's workers, and he firmly believes joining the EU would benefit them.

"This is partly because we are already members of the European Economic Area (EEA) and enjoying, and also meeting, the challenges of Europe," he says.

"And it is also because the stability of the euro is such that it would be better than the fluctuations of our own currency.

"For the last 50 years in Iceland, the krona has been used to transfer wealth, every 10 years or so, from the workers to the employers, the companies."

In the aftermath of Iceland's big economic crash of 2008, EU membership was suddenly an attractive prospect to many Icelanders - probably a majority of them - because of the safety-in-numbers it seemed to offer.

But times have changed.

Not only are Icelanders taking note of the increasingly frantic efforts of politicians in countries hundreds of kilometres away to save the euro, they are finding that their own financial circumstances constitute less of an emergency.

The conditions attached to their bailout by the IMF seem comparatively lenient.

The new government of 2009 was allowed to carry on borrowing and spending for another year before the cuts kicked in.

In the meantime, devaluation - something impossible for eurozone members - meant all-important exports suddenly became competitive again. Unemployment is already falling.

Many people's mortgages were quietly "re-negotiated" by the newly nationalised banks. The richest 5-7% of the population have been subjected to a new wealth tax.

The welfare state and the health service were shielded from the biggest savings and public sector workers have recently been awarded an above-inflation wage rise.

Opinion polls suggest a clear majority of Icelanders now oppose joining the EU and the finance minister, overseeing all these changes, is among them.

Steingrimur Sigfusson says his country's size has been crucial in the move towards recovery: "You are quicker turning a small boat around than a big ship.

"And that is, I think, what is being proven: that the small, vibrant Icelandic economy, including having our own currency, makes adapting quicker."

Fisheries obstacle

The biggest sticking point for those currently negotiating the possible terms of Iceland's EU membership will undoubtedly be fishing rights.

Iceland owns the rights to 200 nautical miles around its shores.

It fishes and manages them exclusively, sustaining stocks upon which it relies for 70% of its total export business. Gone are the days when banking was Iceland's biggest business.

In the determined fishing community of the Westmann Islands, off the south coast of Iceland, the resistance seems unanimous to any change that might bring EU boats within reach of these waters.

A population of about 4,000, sheltered by intimidating cliffs - black and sheer - in what is the windiest inhabited place on Earth, relies on year-round catches of cod, mackerel and scampi.

Sigmar Oskarsson remembers the Cod Wars with the British in the 1970s, when Iceland last demonstrated the strength of its resistance to foreign fishing fleets.

He is a youthful-looking fisherman of 50, as sceptical as all his colleagues about the idea of EU membership.

"Icelandic fishermen want to keep their jobs," he says.

"We know from our Scottish colleagues how difficult it can be when other nationalities, like the Spanish, fish their grounds.

"We are good at catching fish and good at protecting them. We have been good at it for a hundred years and we want to keep going, to live on fish."

Neither he nor his bosses at the local fishing company go into detail about the fact that Icelandic concerns own substantial amounts of the fishing and fish processing industries in other EU countries, particularly the UK and Germany.

Such extensive foreign involvement would not be allowed under Icelandic law, so it is not as if there is already a level playing field.

Splendid isolation

As the pro and anti campaigns hot up in preparation for a referendum on EU membership, Icelanders will most likely continue to consider themselves a special case.

And their unique isolation within Europe might well prove be too precious an asset for them to compromise.

One of Iceland's most successful artistic exports, the film director and actor Baltasar Kormakur (101 Reykjavik, Jar City), puts it like this when I meet him in a cafe during the city's film festival: "We actually take it for granted that we will get a different treatment from other nationalities.

"We will always be the special kid in the class because we're small. We're not that important. We're like: 'You can't do that to us, you can't take our fish'."

He adds: "It's really hard to beat somebody up who seems too weak to be beaten up."


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Drivers 'cut petrol use by 15%'

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AppId is over the quota
4 October 2011 Last updated at 23:18 GMT By Simon Gompertz Personal finance correspondent, BBC News Man holding nozzle of petrol pump The fall in petrol sales cost the Treasury nearly £1bn over the six months to June, the AA reckoned Drivers have cut their petrol consumption by more than 15% since the credit crunch and the recession.

The AA has calculated that petrol sales in the first six months of 2011 were 1.7bn litres less than in the same period three years ago.

The AA says the drop in petrol sales is a direct result of record fuel prices.

Many drivers are struggling to make ends meet in any case, so the high cost of petrol leaves them with no option but to try to use less.

And businesses have been cutting back as well.

The cut in fuel purchases, comparing the first six months of this year with pre-recession levels, is equivalent to 40,000 delivery rounds by fully-laden petrol tankers.

One result has been lower emissions of potentially damaging exhaust fumes.

Another, says the AA, is that the fall in sales has deprived the Treasury of nearly £1bn in fuel duty between January and June this year.

And while supermarkets have attracted drivers looking for bargain fuel, hundreds of other petrol stations have gone out of business.


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Chelsea make stadium shares bid

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AppId is over the quota
Stamford Bridge Chelsea played their first home game at Stamford Bridge back in 1905 Chelsea are a step closer to building a new stadium after making a bid to buy back parts of Stamford Bridge.

The club is still to decide whether to move, but cannot do so unless it regains ownership of the stadium's pitch and stands.

They are owned by Chelsea Pitch Owners - formed in 1993 to prevent the ground being bought by property developers.

"That threat has now gone under (Roman) Abramovich's ownership," insisted Blues chairman Bruce Buck.

Buck and chief executive Ron Gourlay have appealed to the 12,000 shareholders, who are mostly fans, to sell their 15,000 shares to the club for the price they paid in return for various incentives at any new stadium.

Each share cost £100 and Chelsea are hopeful they would not be held to ransom, insisting there was no room for negotiation.

Buck said shareholders were getting back far more than the land was worth when the 199-year lease on Stamford Bridge was taken into account.

He said: "Bear in mind that no-one bought these shares as a financial investment.

"Everyone bought these shares as a way of helping the club and they also bought them as mementoes and souvenirs.

"We think we're paying well over the odds."

The incentives for selling include a guarantee that Chelsea would only relocate within a three-mile radius of Stamford Bridge if the club did decide to move before 2020.

A decision on the bid is expected at a Chelsea Pitch Owners' general meeting on 27 October.


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Cairn makes strike in Sri Lanka

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AppId is over the quota
3 October 2011 Last updated at 08:42 GMT Pipeline Construction The discovery of natural gas is the first in Sri Lanka for decades Edinburgh explorer Cairn Energy has made its first gas strike in Sri Lanka through its Indian subsidiary.

The offshore well was the first to be drilled in the country for 30 years.

Cairn India made the discovery after drilling almost a mile down offshore in the Mannar Basin, Sri Lanka.

Simon Thomson, chief executive, Cairn Energy said: "Cairn is delighted with this frontier exploration discovery, the first well in Cairn India's three well drilling programme in Sri Lanka."

Cairn Energy is in the process of selling off 30% of its 52% stake in Cairn India to the Vedanta Resources and recently won shareholder and Indian government approval for the deal.

The company's focus has moved to Greenland since it announced it was reducing its stake in its Indian unit.

However, it has had a number of disappointments after turning up several dry wells.


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