The great interest rate rip off part 1

[interestrateripoff]

King: UK economy 'bumping along bottom'

 

Bank of England governor admits economy will take longer to recover than expected with inflation to hit 3.5 per cent 72 Comments

 

• UK output surge strengthens exit from recession
  

 

• UK recovery 'at risk' from £180bn shortfall
  

 

China charges Rio Tinto four with bribery

 

Executives from the Anglo Australian mining giant face years in prison on accusations of violating commercial secrets 1 Comment

 

• 'Rio Four' case handed to prosecutors
  

 

• Rio Tinto and China suspend iron ore battle
  

 

Google expands into ultra-fast broadband

 

The internet search company plans to become a provider of ultra-fast broadband to thousands of homes in the US

 

• Google beats Microsoft to LA deal
  

 

• Microsoft targets Google's ad business
  

 

Toyota UK car repairs to take one month

 

A network of 200 UK service centres will begin work today to fix 180,000 cars affected by faulty accelerator pedals 7 Comments

 

• Honda adds 437,000 cars to global airbag recall
  

 

• Toyota faces US inquiry over Corolla steering
  

 

 

Greece brought to a standstill by strike

 

EU's most ailing economy cut off as public sector workers bring airports, ferries and overland borders to standstill

 

Mandelson attacks Kraft on Cadbury job losses

 

Business Secretary says factory closure was 'contrary' to what had been said at a meeting with the US company

 

Imperial Tobacco fights vending machines ban

 

UK’s leading cigarette manufacturer attempts to have 'disproportionate and unnecessary' sales restriction overturned

 

• First rise in UK cigarette market in four decades
  

 

• Imperial Tobacco sees European sales slide
  

Competition Commission to appeal BAA ruling

 

Regulator is to contest judgment that hinged on conflict of interest that could allow BAA to keep all its UK airports

 

• Future of BAA assets in fog after tribunal win
  

 

• CAT’s ruling declaws monopoly body
  

Matalan sale pulled as buyers balk at price

 

Retail chain abandons sale after five buyout groups are understood to have balked at the £1.5billion price tag

 

 

 

 

• ‘Lame duck’ fear for Financial Services Authority as chief Hector Sants quits
  
• Northern Rock to drop 100% savings guarantee
  

 

Goldman will not commit to future bonus cuts

 

David Viniarm, the Goldman Sachs chief financial officer, says that the bank has no magic formula for pay

 

Bernanke outlines plans to pull stimulus

 

Chairman of the Federal Reserve outline how the world's biggest central bank would cut back the economic stimulus

 

• Obama urges Senate to stand by Ben Bernanke
  

 

• Ben Bernanke calls end of recession
  

Digital sales boost New York Times profits

 

Web advertising and cost-cutting lifts fourth quarter income as the rate of decline in revenues slows down

 

• Daily Mail hints at new year revenue recovery
  

 

• News Corp reports 10% rise in revenue
  

Storm over bailout of EU's sickest economy

 

Signs of a developing European split over fate of Greece, with European countries divided on whether to call in the IMF

 

 

Sants bows out - but what timing

 

Morale will not be improved at the FSA as its chief executive heads for the exit after 2½ years

 

• Clipping hedge funds is the wrong course
  

 

• Pre-pack should herald wind of change
  

 

Driving away Big Pharma is not NICE or clever

 

Drug companies are not villains, they are responsible for most medical breakthroughs. So why make life hard for them?

[interestrateripoff]

King: UK economy 'bumping along bottom'

 

Bank of England governor admits economy will take longer to recover than expected with inflation to hit 3.5 per cent 72 Comments

 

• UK output surge strengthens exit from recession
  

 

• UK recovery 'at risk' from £180bn shortfall
  

 

China charges Rio Tinto four with bribery

 

Executives from the Anglo Australian mining giant face years in prison on accusations of violating commercial secrets 1 Comment

 

• 'Rio Four' case handed to prosecutors
  

 

• Rio Tinto and China suspend iron ore battle
  

 

Google expands into ultra-fast broadband

 

The internet search company plans to become a provider of ultra-fast broadband to thousands of homes in the US

 

• Google beats Microsoft to LA deal
  

 

• Microsoft targets Google's ad business
  

 

Toyota UK car repairs to take one month

 

A network of 200 UK service centres will begin work today to fix 180,000 cars affected by faulty accelerator pedals 7 Comments

 

• Honda adds 437,000 cars to global airbag recall
  

 

• Toyota faces US inquiry over Corolla steering
  

 

 

Greece brought to a standstill by strike

 

EU's most ailing economy cut off as public sector workers bring airports, ferries and overland borders to standstill

 

Mandelson attacks Kraft on Cadbury job losses

 

Business Secretary says factory closure was 'contrary' to what had been said at a meeting with the US company

 

Imperial Tobacco fights vending machines ban

 

UK’s leading cigarette manufacturer attempts to have 'disproportionate and unnecessary' sales restriction overturned

 

• First rise in UK cigarette market in four decades
  

 

• Imperial Tobacco sees European sales slide
  

Competition Commission to appeal BAA ruling

 

Regulator is to contest judgment that hinged on conflict of interest that could allow BAA to keep all its UK airports

 

• Future of BAA assets in fog after tribunal win
  

 

• CAT’s ruling declaws monopoly body
  

Matalan sale pulled as buyers balk at price

 

Retail chain abandons sale after five buyout groups are understood to have balked at the £1.5billion price tag

 

 

 

 

• ‘Lame duck’ fear for Financial Services Authority as chief Hector Sants quits
  
• Northern Rock to drop 100% savings guarantee
  

 

Goldman will not commit to future bonus cuts

 

David Viniarm, the Goldman Sachs chief financial officer, says that the bank has no magic formula for pay

 

Bernanke outlines plans to pull stimulus

 

Chairman of the Federal Reserve outline how the world's biggest central bank would cut back the economic stimulus

 

• Obama urges Senate to stand by Ben Bernanke
  

 

• Ben Bernanke calls end of recession
  

Digital sales boost New York Times profits

 

Web advertising and cost-cutting lifts fourth quarter income as the rate of decline in revenues slows down

 

• Daily Mail hints at new year revenue recovery
  

 

• News Corp reports 10% rise in revenue
  

Storm over bailout of EU's sickest economy

 

Signs of a developing European split over fate of Greece, with European countries divided on whether to call in the IMF

 

 

Sants bows out - but what timing

 

Morale will not be improved at the FSA as its chief executive heads for the exit after 2½ years

 

• Clipping hedge funds is the wrong course
  

 

• Pre-pack should herald wind of change
  

 

Driving away Big Pharma is not NICE or clever

 

Drug companies are not villains, they are responsible for most medical breakthroughs. So why make life hard for them?

[interestrateripoff]

Bernanke’s How-To on Rate Increase Lacks a When

 

By SEWELL CHAN 2:28 PM ET

 

The Federal Reserve chief outlined a strategy, but not a timetable, for scaling back the extraordinary measures the Fed has taken to prop up the economy.

 

Europe Closing in on Plan for Averting Greek Debt Crisis

 

By STEPHEN CASTLE and NICHOLAS KULISH 3 minutes ago

 

European leaders were close to agreement on measures aimed at persuading jittery investors that Greece will not be allowed to default.

 

 

Latest Data Hints at a Recovery in World Trade

 

By JAVIER C. HERNANDEZ and KEITH BRADSHER 7 minutes ago

 

Exports and imports increased for both China and the United States, suggesting American businesses and consumers were growing more confident about spending.

[interestrateripoff]

Are You SITTING DOWN Folks? - The Market Ticker

 

You better be, when the implications of this one ripple through:

McLean, VA – Freddie Mac (NYSE: FRE) announced today that it will purchase substantially all 120 days or more delinquent mortgage loans from the company's related fixed-rate and adjustable-rate (ARM) mortgage Participation Certificate (PC) securities.

What this means is that all the defaulted loans in these packages that Freddie bought up, bundled up and then puked out into the marketplace are coming home.

To Freddie.

Well, at least initially.

But now, every one of these loan files is going to get the fine-tooth-comb treatment. And believe me, there's gonna be a lot of lice found in there, along with more than a few cockroaches.

This is going to be a problem folks, because those loans in which reps and warranties (that is, the promises made to Freddie by the banks when they were sold to them) were breached due to a material falsehood of some sort will be, as a matter of fiduciary responsibility, puked back onto the bank involved.

Note that most of the "warehouse" funded brokers and such are already gone. They went under in 2007 and 2008. They're done.

But those folks got their warehouse lines from the big banks. Countrywide (now BAC), Wells, WaMu (now absorbed), Chase, etc.

Now to be sure not all of these bad loans went bad because of some sort of fraud. Some were made to legitimate borrowers on legitimate terms with everything on the up-and-up - no lies, no schemes, income and assets were as represented, no fraud - but the borrower lost his job and, well, just doesn't have any money.

But I'm willing to bet that a huge percentage of these - likely a majority and perhaps even a supermajority - had some element of fraud in them.

Those, my friends, are headed home, and will land like a millstone around the neck of the bank that tendered them.

 

It will be interesting to see what happens.

[interestrateripoff]

Wow, Look At My Jaws Move: Bernanke - The Market Ticker

 

You have to love the hubris:

Also, before long, we expect to consider a modest increase in the spread between the discount rate and the target federal funds rate. These changes, like the closure of a number of lending facilities earlier this month, should be viewed as further normalization of the Federal Reserve's lending facilities.....

Yeah, as if you have control of this Bernanke.....

That's up 500% in the last few weeks. Yes, it's very low (0.1%) but remember the target is 0 - 0.25%, and the discount rate is supposed to be above that.

So in reality there's some pressure building here, and when the IRX gets to, oh, 3 or so (which at this rate of change it will rather soon) The Fed will be forced to either crank up more QE or raise the rates to follow!

The Fed sets rates eh? What's this chart say?

The red line is the 13-week T-Bill rate, and the blue line is the Fed Funds rate (now discontinued since they went to the "range rule", but it shows the point.)

Which leads which Bernanke?

In virtually every case the market rate moves first, and The Fed FOLLOWS the market, not the other way around.

This, by the way, is rather obvious. If The Fed was to try to move the market when it did not want to move, it would have to expend an infinite amount of funds to do so - either printing an infinite amount of money (destroying the dollar) or soaking up an infinite amount of dollars (destroying itself.)

Those who pray at the alter of Fed Omnipotence are rabid idiots; The Fed's own data, which is produced above, proves it.

Moving onward...

These loans were made with great reluctance under extreme conditions and in the absence of an appropriate alternative legal framework. To preclude any future need for the Federal Reserve to lend in similar circumstances, we strongly support the establishment of a statutory regime for the safe resolution of failing, systemically important nonbank financial institutions.

As opposed to willful and intentional blindness when it came to the creation of fully synthetic CDOs written by primary dealers, over which The Fed has regulatory jurisdiction, which were then "swapped off" to an alleged "insurance company subsidiary" which had no money to pay?

While it is true that The Fed had no regulatory power over AIG it is absolutely false that The Fed had no ability to stop this abuse, since the abuses originated in and were promulgated through firms over which The Fed did and does have regulatory power.

Of course admitting that you missed this would be equivalent to admitting that you really are either stupid or bought (whether monetarily or simply by ideological bias) and that won't do, will it? You'd prefer to simply ignore this like you ignore your plethora of false and outrageously-blind pronouncements on the economy in general, including your claim that there was no housing bubble, that we would not slip into recession and that "subprime is contained."

 

Time will tell who dictates interest rates. Something is going to have to give.

[interestrateripoff]

Germany's Choice | STRATFOR

 

The situation in Europe is dire.

After years of profligate spending, Greece is becoming overwhelmed. Barring some sort of large-scale bailout program, a Greek debt default at this point is highly likely. At this moment, European Central Bank liquidity efforts are probably the only thing holding back such a default. But these are a stopgap measure that can hold only until more important economies manage to find their feet. And Europe’s problems extend beyond Greece. Fundamentals are so poor across the board that any number of eurozone states quickly could follow Greece down.

And so the rest of the eurozone is watching and waiting nervously while casting occasional glances in the direction of Berlin in hopes the eurozone’s leader and economy-in-chief will do something to make it all go away. To truly understand the depth of the crisis the Europeans face, one must first understand Germany, the only country that can solve it.

Germany’s Trap

 

The heart of Germany’s problem is that it is insecure and indefensible given its location in the middle of the North European Plain. No natural barriers separate Germany from the neighbors to its east and west, no mountains, deserts, oceans. Germany thus lacks strategic depth. The North European Plain is the Continent’s highway for commerce and conquest. Germany’s position in the center of the plain gives it plenty of commercial opportunities but also forces it to participate vigorously in conflict as both an instigator and victim.

 

More at the link.

[interestrateripoff]

FT.com / Comment / Opinion - A Greek crisis is coming to America

 

It began in Athens. It is spreading to Lisbon and Madrid. But it would be a grave mistake to assume that the sovereign debt crisis that is unfolding will remain confined to the weaker eurozone economies. For this is more than just a Mediterranean problem with a farmyard acronym. It is a fiscal crisis of the western world. Its ramifications are far more profound than most investors currently appreciate.

There is of course a distinctive feature to the eurozone crisis. Because of the way the European Monetary Union was designed, there is in fact no mechanism for a bail-out of the Greek government by the European Union, other member states or the European Central Bank (articles 123 and 125 of the Lisbon treaty). True, Article 122 may be invoked by the European Council to assist a member state that is “seriously threatened with severe difficulties caused by natural disasters or exceptional occurrences beyond its control”, but at this point nobody wants to pretend that Greece’s yawning deficit was an act of God. Nor is there a way for Greece to devalue its currency, as it would have done in the pre-EMU days of the drachma. There is not even a mechanism for Greece to leave the eurozone.

That leaves just three possibilities: one of the most excruciating fiscal squeezes in modern European history – reducing the deficit from 13 per cent to 3 per cent of gross domestic product within just three years; outright default on all or part of the Greek government’s debt; or (most likely, as signalled by German officials on Wednesday) some kind of bail-out led by Berlin. Because none of these options is very appealing, and because any decision about Greece will have implications for Portugal, Spain and possibly others, it may take much horse-trading before one can be reached.

 

More at the link.

 

Surely world growth will fix it all? We have a recovery.

[interestrateripoff]

Interest rates on gilts to double to 1970s' levels as population ages - Telegraph

 

Interest rates on government bonds and across the whole spectrum of finance will more than double over the next decade, pushing Britain back towards 1970s-style levels, according to an authoritative new study.

 

The combined effects of an ageing population and a more unstable economy will lift the cost of borrowing radically in the coming years, Barclays has warned. In its closely-watched Equity Gilt Study, the lender predicted the average long-gilt yield – the government interest rate which effectively influences borrowing costs across the entire economy – would rise from its current level of around 4pc to 10pc or beyond.

 

According to Tim Bond, of Barclays Capital, the increase in yields will be a direct result of the sharp increases in government deficits likely as the populations of Western economies age, and older workers retire, dampening broader growth.

 

"We are moving from a world of capital abundance to a world of capital scarcity and scarcity of savings. From here on yields should probably double over the next decade," he said. "This will happen as pensions liabilities come due, and as there is decreasing savings to support the economy.

 

"The financial crisis, from this point of view, happened at the worst possible time – just as this demographic change was starting to take place.

 

"It is very unlikely that the excess savings of [countries like India and in Africa with lower average ages] will be able to compensate for the fall in savings in the West."

 

If this study is accurate is this an O frack moment?

[interestrateripoff]

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EU leaders reach deal to rescue Greece

 

Germany and France strike agreement and will announce more details later.

Banks hit by lack of detail from Greek bail-out

 

 

Greek crisis: Q&A

 

 

Greek crisis: the eurozone in numbers

 

 

 

 

 

Exclusive: Merlin forced to postpone £2bn flotation

 

The owner of the London Eye and Madame Tussauds has abandoned plans for a £2bn stock market flotation in the face of growing market volatility.

 

BT shares plunge on £9bn pension concern

 

 

 

 

Peter Wood completes Esure buyout

 

 

 

 

Rio Tinto reinstates dividend, profits rise

 

 

 

 

De Beers launches $1bn rights issue

 

 

 

• Britain isn't in the euro but there's still plenty to worry about
  

 

• History tells you to buy shares and dump bonds
  

 

 

• How can the euro's mess be fixed?
  

 

'Repossession may be best'

 

Housing Minister says repossession is best for some homeowners.

Repossessions at 14-yr high

 

 

King deals blow to savers

 

Bank of England's Mervyn King says that rates to remain at record lows.

 

 

 

Euro-craft's design faults are being exposed

 

 

 

Germany and France back debt-crippled Greece

 

 

 

 

Greek crisis: Q&A

 

 

 

 

EU seeks Greece rescue as markets wait

[interestrateripoff]

Breaking news:

 

• Thames faces deflation threat: James Saft - Reuters
  
• Has Wal-Mart captured the 'slow decade' consumer? - Reuters
  
• IMF sees signs of Georgia recovery, more to be done - Reuters
  
• US STOCKS-Wall St jumps as EU vows support for Greece - Reuters
  
• Euro falls broadly as Greece deal offers few details - Reuters
  
• Expedia beats but shares fall on dividend concerns - Reuters
  
• Toy makers look to tech, green materials for 2010 - Reuters
  
• FirstEnergy to buy Allegheny for $4.7 billion - Reuters
  
• Prices hold losses after 30-yr bond auction - Reuters
  
• Toy makers look to tech, green materials for 2010 - Reuters
  

 

 

 

• Deal to rescue Greek economy reached at EU summit
   
   
  A bailout package for debt-laden Greece has been reached at a summit of EU leaders to avert further financial crisis across Europe 107 comments
   
  
  • Euro and shares fall after 'sticking plaster' bailout for Greece
    
  • Dan Roberts: Better Greece than Iceland
    
  • Q&A: Greece's financial crisis
    
  • What the papers say: 'It's time to pay the bill'
    

   

  [*] MEPs veto US access to banking data

   

   

  European parliament ends Swift pact allowing personal data to be seen by security agencies 5 comments

   

  [*] Rio Tinto upbeat despite China crisis as results point to new commodities boom

   

   

  • Mining group restores dividend after rise in net profits to $5bn

  • Rio iron ore boss admits he is 'very concerned' about spying charges

  Post your comment

   

  • Nils Pratley: China tests Rio Tinto's mettle
    

   

  [*] Repossessions at highest level since 1995

   

   

  CML says repossessions rose 15% in 2009 but final-quarter figures were down on previous three months 26 comments

   

  [*] Redknapp ads boost Thomas Cook sales

   

   

  Tour operator says TV campaign featuring former footballer and his ex-pop star wife has lifted bookings in the crucial January period 19 comments

   

 

 

• 
  Rough year for diamond producer
   
   
  Plunging consumer demand and diamond glut pushes De Beers $220m into the red. By Simon Bowers
   
  
• Merlin Entertainment halts flotation plan
   
   
  Private equity-backed Madame Tussauds operator puts £2bn flotation on hold
   
  
• Regulator concerned at BT pension plan
   
   
  BT admits watchdog has 'substantial concerns' over deal to cut deficit, as company's revenues slide
   
  
• Lloyds sells £185m stake in esure
   
   
  Peter Wood leads £185m management buyout of his esure business from Lloyds. By Jill Treanor
   
  
• US banks facing $1.4tn real estate crisis
   
   
  Congressional panel warns that US banks will face major crisis as numerous commercial property loans will mature in negative equity from 2011
   
  

 

 

• More business news
   
   
  
  • News Corp sells control of Dow Jones to CME
     
     
     
    
  • Diageo warns it may leave UK for low-tax jurisdiction
     
     
     
    
  • Duchy Originals makes £3.2m loss
     
     
     
    
  • Brown: Support growing for bank tax
     
     
     
    
  • Matalan sale called off
     
     
     
    

[interestrateripoff]

Bank's cautious view hints at low rates until next year

 

Mervyn King predicts a gradual recovery of the British economy

 

 

• BAE axes 230 jobs at submarine site
  
• We're drinking our way out of recession, says Diageo
  
• Rolls-Royce profits rise despite tough year
  
• BT trustees back pension deficit plan
  
• Competition Commission to appeal BAA bias ruling
  
• Wall Street's golden boy Paulson loses some glister
  
• Bernanke outlines new Fed targets in exit plan
  

 

Agile, smaller enterprises are leading a revival in the industry

 

Excessive focus on big manufacturers is a distraction from the sector’s real innovators

 

• Stephen Timms: We're here for the times when a small business needs a lifeline
  
• Adventures in micro-business: 'Where can I get support to expand my business?'
  
• Virtual solution to a data dilemma
  
• Soapbox: ‘Look to collaborate with those who can do what you can’t’
  
• Roger Trapp: 'Even poets have been cited nio inspiring business founders & managers"
  
• Top of the fair trade fashion tree
  

 

David Prosser: How to make Greece keep its promises

 

Outlook: A big day then for Greece. After some furious backpedalling from the Germans in recent days, bond and stock markets are now pricing in the announcement of a bailout of Greece at today's European Union summit.

 

 

• David Prosser: A test for Northern Rock
  
• David Prosser: Mandelson's promises melt away
  
• Econoblog: Rosenfeld should go to Bournville
  
• Econoblog: Outlook still gloomy until 2012
  
• David Prosser: Bolton picks China for his comeback
  

[interestrateripoff]

Merlin joins Travelport in postponing flotation

 

Owner of Alton Towers and Madame Tussauds delays IPO, raising question mark over investor appetite for New Look

 

• Travelport cancels float on market uncertainty
  

 

• Merlin heralds flotation by buying theme park
  

 

Markets target euro as doubt swirls over Greece

 

Statement on deal from EU President fails to calm financial markets which fear knock-on effects of Greek debt crisis 39 Comments

 

• Euro rebounds ahead of EU plan to rescue Greece
  

 

• Berlin can usher in true European reform
  

 

BAE cuts take jobless tally to more than 2,500

 

Defence group brands plan to axe 230 staff from its Cumbrian submarine site as 'regrettable' in fourth round of culls 4 Comments

 

• BAE cuts 642 Insyte jobs as contracts near end
  

 

• BAE job losses rise to 2,300 with new cuts
  

 

Lloyds sells 70% stake in esure to founder

 

Peter Wood regains control of company that owns Sheila's Wheels and uses Michael Winner as a spokesman

 

• Business big shot: Peter Wood of esure
  

 

• Insurance pioneer in Esure buyout
  

 

 

UK home repossessions hit 14-year high

 

Number of people losing their houses rises to the worst level since 1996 but falls below forecasts for 2009

 

BT shares slump on £9bn pension debt fears

 

Telecoms group reveals profits but admits Pension Regulator has 'substantial concerns' about plan to reduce deficit

 

Thomas Cook scores with Redknapp factor

 

Tour operator's £5 million advertising campaign featuring celebrity couple has helped drive 15 per cent rise in bookings

 

• The missing Thomas Cook dispatch from his first 222-day round the world tour
  

 

• Tour operators slash long-haul holiday prices
  

Private Eye records best circulation in 18 years

 

Overall circulation figures were flat across the top 100 UK magazines, raising hopes the industry was coping with recession

Mortgage rates fall further as criteria eases

 

Major high street lenders, including Santander and Northern Rock, cut interest rates

 

 

 

Greek tragedy won’t end in the euro’s death | Anatole Kaletsky - Times Online

 

 

US foreclosures fall but fears of double dip rise

 

Home repossessions are expected to surge in the next few months after a double-digit decline in January

 

 

PepsiCo to 'refresh' brands as profits double

 

Indra Nooyi expects acquisitions of its two main bottlers will allow the company to react quickly to market changes

 

• PepsiCo in $7.8bn deal to take over bottlers
  

 

• Business Big Shot: Richard Evans of PepsiCo
  

Snow may mask fall in US jobless claims

 

New unemployment benefit claimants fell last week after a sudden rise but the true number may take time to emerge

MySpace boss steps down after nine months

 

Owen Van Natta has been replaced by the online social network's chief operating officer and chief product officer

 

 

Bank’s line on QE is looking peculiar

 

Why the MPC has not continued injecting new money into the economy through quantitative easing is very hard to know

 

• Sign of strength at Autonomy
  

 

• Now’s the time to boldly go . . .
  

 

Berlin can usher in true European reform

 

Thanks to the financial mess in the Balkans, there is a once-in-a-lifetime opportunity to reform Europe’s finances

[interestrateripoff]

EU ready to help Greece on debts

EU leaders say they are ready to shore up Greece's finances and ensure eurozone stability - but there is no specific aid pledge.

Flanders: Deal not silver bullet

Why Greece's problems matter

Greeks' aversion to taxes

Europe's PIGS under pressure

Q&A: Greece's economic woes

BA suspends staff over web posts

 

British Airways says a number of staff posted what it says were "inappropriate comments" on the Unite website.

 

Diageo hits out at UK tax regime

 

The head of drinks giant Diageo tells the BBC that the firm will consider moving its headquarters abroad if the tax regime worsens

 

 

OTHER TOP BUSINESS STORIES

Minister sparks repossession row

 

BT to plug £9bn pension deficit

 

Markets mull EU Greek debt plan

 

No recovery for Spanish economy

 

Job losses at BAE submarine site

 

End of cheques under MPs' review

 

MORE FROM BUSINESS

World Cup crime fears dismissed

 

Jobless rate in Greece hits 10%

 

Low prices hit Rio Tinto profits

 

Credit Suisse sees annual profit

 

Bernanke sees end to bank boost

 

Bank warns of further inflation

 

Dismay at Cadbury closure plans

 

Ethel Austin announces job cuts

 

Rock savings guarantee reviewed

 

Strong growth in manufacturing

 

Nissan boost for Sunderland jobs

 

Greeks strike over austerity plan

 

Toyota recall work starts in UK

 

Pompey given extra time by court

 

YOUR MONEY

Trial work plan for lone parents

 

Few signs of comfort for savers

 

Anger over BT's off-peak changes

 

ECONOMY

US trade deficit increases by 10%

 

China's export prowess confirmed

 

Portugal 'will not' quit the euro

 

COMPANIES

Volkswagen recalls cars in Brazil

 

Watchdog to challenge BAA ruling

 

Rio Tinto workers 'to face trial'

 

New Look may give private equity a hat-trick of bad news

 

BT £9bn hole: How much could fall on taxpayers?

[interestrateripoff]

Part-timers proposal shocks city workers | San Francisco Examiner

 

SAN FRANCISCO — Union members said Tuesday they were blindsided by Mayor Gavin Newsom’s proposal to shorten the workweek for 12,000 city employees, but he defended his proposal, explaining it as a creative way to avoid a mass of layoffs next year.

“Workers of San Francisco are quite angry,” said Damita Davis-Howard, president of SEIU Local 1021, which represents 14,000 workers. “They woke up [this] morning to discover the mayor wanted to cut salaries by 6.25 percent. There were no details and no one knew if it would be them.”

Newsom called for a meeting with labor unions Tuesday, the day after his office circulated a memo to city department heads outlining a plan to reduce workweeks from 40 hours to 37.5 hours.

Under the plan, The City would lay off workers and rehire them as part-time employees. It would generate as much as $50 million in savings as San Francisco, which employs 26,000 workers, needs to close a $522 million budget gap for the next fiscal year.

“We are proposing to keep people employed by changing the workweek to part-time status,” Newsom said. “We cannot tax our way out and we cannot borrow our way out.”

But the plan is the same budget blueprint the union rejected last year when Newsom asked them for $50 million in cuts, Davis-Howard said.

“This is a boomerang that keeps coming back,” she said.

Newsom acknowledged the budget proposal is draconian, but he said it’s the lesser of two evils.

“I think a much worse idea is thousands of layoffs,” Newsom said. “If they disagree and they have a better idea, then I’m all ears.”

 

Still think this correction is over? The debt party is over.

[interestrateripoff]

Somewhat Reassured About Greece, Wall Street Rises - NYTimes.com

 

Wall Street shares moved beyond an early wave of pessimism on Thursday as investors grew more confident that the simmering debt crisis in Europe would be resolved.

 

A morning of timid trading had turned into a lively rally by afternoon, as European leaders reiterated a pledge to pre-empt financial disaster in Greece and across Europe.

 

Expectations had been high as Europe’s leaders gathered in Brussels to thrash out a plan to save Greece from its mountains of debt. But in the end, officials offered only vague talk of solidarity and a simple statement — “there is an accord” — and told the world to stay tuned for details.

 

Investors were initially unsettled by the ambiguity, despite the soothing refrains. But stocks rebounded in the afternoon after the prime minister of Spain, José Luis Rodríguez Zapatero, was quoted as saying that the plan to aid Greece would bring stability to Europe.

 

“Any kind of concrete decisions or news is better than uncertainty,” said Stephen J. Carl, head equity trader for the Williams Capital Group.

 

The Dow Jones industrial average gained 0.86 percent, or 86.76 points. The broader Standard & Poor’s 500-stock index increased 0.69 percent, or 7.34 points, helped by gains in energy stocks. The technology-dominated Nasdaq gained 1.15 percent, or 24.78 points.

 

“People aren’t sure which way to go; they’re nervous,” said Doug Roberts, chief investment strategist for Channel Capital Research. “They’re confident something is going to happen, they’re not sure what form it will take.”

 

A better-than-expected report on the United States labor market contributed to the enthusiasm. The number of people filing first-time unemployment claims fell by 43,000 to 440,000 last week, the Labor Department said, beating expectations of a 15,000 drop.

 

As they try to gauge the strength of the recovery, investors are watching data on unemployment more closely than perhaps any other economic indicator. The unemployment rate fell to 9.7 percent in January, down from 10 percent in December, but the economy still shed 20,000 jobs.

 

Have those unemployed found jobs, if so what type full time or part time, have they got a job earning the same as before? Or have they simply fallen off the figures?

 

Unless you know the above you can't tell how the economy is fairing. If you have huge job losses and say the average salary prior to losing your job was $30k and now for those who've just been re-employed find they are now paid an average of $20k the economy is not recovery as there is a wage shortfall of $10k, to make up the shortfall are they expecting these people to borrow the money into existence?

 

Without more data we have idiots running the markets.

[interestrateripoff]

Europe Commits to Action on Greek Debt

 

By STEPHEN CASTLE 17 minutes ago

 

 

Yves Herman/Reuters

 

From left, Chancellor Angela Merkel of Germany, Prime Minister George Papandreou of Greece and President Nicolas Sarkozy of France left the European Union Council building after a meeting in Brussels on Thursday.

 

Leaders have agreed on a statement but left the details to be worked out by finance ministers Monday.

 

 

Senators From Opposing Parties Unveil Jobs Bill

 

By CARL HULSE 41 minutes ago

 

The ranking Democrat and Republican on the Senate Finance Committee hoped to put some rare bipartisan momentum behind the bill.

 

 

Dodd Kick-Starts Financial Reform Talks

 

By SEWELL CHAN 11:11 AM ET

 

The chairman of the Senate banking panel enlists support from Senator Bob Corker, Republican of Tennessee.

 

Europe Rejects U.S. Deal on Bank Data

 

By JAMES KANTER 2:13 PM ET

 

Europe rejected an agreement with the U.S. to share information on bank transfers in order to track suspected terrorists, fearing for citizens’ privacy rights.

 

Credit Suisse Sees Gains at Expense of Rival UBS

 

By CHRIS V. NICHOLSON 11:35 AM ET

 

Credit Suisse’s fourth-quarter profit came in under expectations, but the bank said it was gaining ground in the wealth management business as its rival, UBS, suffers.

 

Taiwan Gains Mainland Market Entry

 

By JONATHAN ADAMS 11:25 AM ET

 

Taiwan’s decision to relax restrictions on investment in China is giving its flat-panel firms a leg up in China’s booming electronics market.

 

 

 

• Chinese Producer Prices Jumped Sharply in January 6:15 AM ET
  
• Sharp Drop in First-Time U.S. Jobless Claims 9:14 AM ET
  

[interestrateripoff]

30 Year Auction: A Solid "F" - The Market Ticker

 

There's no other way to describe this:

Bad. Actually, let's go worse than bad and call it what it is - by any definition this is just one step off from "Failed."

Yield was way over where it was trading at the time, as you can see here:

The more-worrying factor here is that we've got this "mystery" direct buyers out here again taking nearly 25% of the offered amount (who is bidding for that undisclosed?) and another 11% taken down by The Fed for the SOMA account.

Yet even with this Treasury had to pay up to get it to go and the bid-to-cover was anemic at best.

Given the Primary Dealer system we have in this country, any BTC under 2.0 is an effective fail. To get an auction that behaves in this sort of fashion, complete with mystery direct bidders and heavy SOMA (Fed) participation, yet Treasury has to pay up in the form of a significantly higher coupon is not a good sign at all.

Remember folks, this sort of issuance isn't a local event. It will continue through the year, as we are on track to run record budget deficits, so the premise that "it will all be ok and this won't start a ratchet up of rates on the long end" is perhaps more than a bit fanciful.

Rick Santelli gave the auction an "F" and I agree - there's simply no possible way to read this as anything positive at all, and that the equity market is ignoring it (other than a quick, small spike downward on the release) likely has more to do with how tightly equities have become coupled to the dollar in the last couple of weeks than anything else.

 

 

More fun looming?

[interestrateripoff]

EasyJet owner to sue Ryanair boss over 'despicable behaviour' new

 

EasyJet owner Sir Stelios Haji-Ioannou is suing Michael O’Leary for libel, accusing the Ryanair chief executive of “despicable behaviour” for an advertising campaign characterising the Greek entrepreneur as Pinnochio and implying he lied about EasyJet’s punctuality statistics.

 

 

• Barclays to slash pay and bonuses ratio
  
• BA suspends 15 in strike intimidation row
  
• Regulator unhappy with BT plan to fill £9bn pension hole
  
• New Look stock market flotation shelved
  
• City bonuses soar despite super tax
  
• Volatile markets reject IPOs for Merlin and Travelport
  
• Calm down! Wood buys Lloyds out of eSure
  

 

Agile, smaller enterprises are leading a revival in the industry

 

Excessive focus on big manufacturers is a distraction from the sector’s real innovators

 

• Stephen Timms: We're here for the times when a small business needs a lifeline
  
• Adventures in micro-business: 'Where can I get support to expand my business?'
  
• Virtual solution to a data dilemma
  
• Soapbox: ‘Look to collaborate with those who can do what you can’t’
  
• Roger Trapp: 'Even poets have been cited nio inspiring business founders & managers"
  
• Top of the fair trade fashion tree
  

 

David Prosser: Let's call the bluff of the tax whingers

 

Outlook One by one, they are coming out of the woodwork. On Tuesday, it was the boss of independent financial adviser Hargreaves Lansdown whingeing about the forthcoming 50p top rate of income tax (he paid himself an abnormally large dividend to get in first). Yesterday, it was the turn of Diageo, the drinks giant, to warn that it might have to move its headquarters to another domicile if UK tax becomes "egregious" for corporates or individuals.

 

 

• Hamish McRae: When in enormous debt, do as the Greeks must do: tighten your belt
  
• David Prosser: No room to relax on home repossessions
  
• David Prosser: How to make Greece keep its promises
  
• David Prosser: A test for Northern Rock
  
• David Prosser: Mandelson's promises melt away
  

[interestrateripoff]

Breaking news:

 

• Copper sinks on dollar, China tightening fears - Reuters
  
• OBAMA SIGNS DEBT LIMIT-PAYGO BILL - WHITE HOUSE - Reuters
  
• Alfa Romeo may return to N.America within 2 years - Reuters
  
• US STOCKS-Dow, S&P 500 slip on recovery worry; Nasdaq flat - Reuters
  
• Oil falls after China moves to curb bank lending - Reuters
  
• Greek slump threatens debt plan, EU aid elusive - Reuters
  
• Mexico's FEMSA net soars; soft-drink sales strong - Reuters
  
• Duke Energy's fourth-quarter profit rises - Reuters
  
• Time Warner stalwart Adler to leave - Reuters
  
• Euro slides on Greek woes; China news hits risk assets - Reuters
  

 

 

 

• Barclays to reignite bonus row with £2.3bn payout
   
   
  Bank to try to deflect criticism by cutting wage bill to 38% of revenue, in a move to be scrutinised by Royal Bank of Scotland. By Jill Treanor 12 comments
   
  
  • King: Bank profits must be used to rebuild capital
    

   

  [*] Darling to use budget as poll launch pad

   

   

  Alistair Darling, the chancellor, has made clear next month's budget will highlight growth rather than austerity to deal with the public deficit 19 comments

   

  [*] Euro continues to fall as EU fails to agree Greece rescue plan

   

   

  Greece debt crisis and Germany's stagnant economy weigh heavily on the euro. By Julia Kollewe 101 comments

   

  • Merkel dashes Greek hopes of rescue bid
    
  • David Gow: Not quite a bailout
    
  • Podcast special: Larry Elliott and William Keegan
    
  • Q&A: Greece's financial crisis
    
  • Eurozone economic recovery falters
    
  • Europe's indebted look to City PR firms to buff image
    

   

  [*] Foul play in Robin Hood tax poll?

   

   

  British public appears to take on role of Sheriff of Nottingham - but Goldman Sachs linked to 'dubious' voting patterns 121 comments

   

  • Stars urge Tobin tax on bankers
    
  • Letter: Charities back campaign
    
  • Poll: Should we introduce a Tobin tax?
    

   

 

 

• 
  New Look pulls planned flotation
   
   
  New Look hoped to raise £650m to cut debt. Instead it has become the latest firm to postpone its flotation
   
  
  • Promethean forges ahead with float
    
  • Merlin Entertainments halts flotation
    
  • Nils Pratley: Private equity must cut its price tags
    

   

  [*] US banks facing $1.4tn real estate crisis

   

   

  Congressional panel warns that US banks will face major crisis as numerous commercial property loans will mature in negative equity from 2011

   

  [*] BA suspends cabin staff in Facebook row over list of strike-breaking pilots

   

   

  Tough action comes in middle of strike ballot as union accuses airline of 'internet McCarthyism'

   

  [*] FSA's plans to raise fees angers City

   

   

  Regulator says mortgage brokers' fees will rise 34% to a minimum of £1,000 to pay for extra staff

   

 

 

• More business news
   
   
  
  • Diageo warns it may leave UK over tax
     
     
     
    
  • Argentina blocks ship in Falklands oil dispute
     
     
     
    

[interestrateripoff]

[/url]

 

Euro hit by disappointing eurozone GDP figures

 

European economic growth slowed to a snail's pace in the final quarter of last year, raising fears that the region could experience a double dip recession.

US retail sales better than expected

 

 

 

Toyota chief may have to testify to US government

 

Akio Toyoda, the head of Toyota, could be forced to testify before the US Congress to explain the car manufacturer's recall of 7.7m vehicles.

Toyota: a history in pictures

 

 

 

New Look pulls stock market flotation

 

Fashion retailer is the latest private-equity backed company to be forced to pull flotation plans because of stock market turbulence.

 

Saab-Spyker exploring stock listing in London

 

 

 

 

FSA raises fees as it beefs up supervision

 

 

 

 

Gilt yields to hit 1970s' levels as population ages

 

 

 

 

Robin Hood tax vote 'rigged at Goldman Sachs'

 

 

 

 

Lebedev to miss Independent sale deadline

 

 

 

• What has Gordon Brown done for Britain since his first Budget?
  

 

• The danger of bearing gifts to the Greeks
  

 

 

• How can the euro's mess be fixed?
  

 

US retail sales better than expected

 

 

 

Euro falls as Europe's recovery almost stalls

 

 

 

 

German economic recovery grinds to surprise halt

 

 

 

 

UK's aging population is a bigger economic threat than the financial crisis

 

 

 

 

EU's lack of detail on Greek rescue leads to confusion

[interestrateripoff]

New Look postpones float in third IPO delay

 

Private equity is dealt a further blow after retailer joins Merlin and Travelport in shelving plans to list in London 3 Comments

 

• New Look confirms IPO with £650m in shares
  

 

• Private equity hit after Merlin IPO is delayed
  

 

New Greece fear leaves euro at market's mercy

 

German GDP drags down eurozone growth to 0.1% as Angela Merkel refuses to commit to a bailout of debt-laden Greece 115 Comments

 

• COMMENT: Germany plays hardball
  

 

• Euro falls despite emergency summit pledges
  

 

Toyota links to US highway agency revealed

 

Documents claim carmaker appointed former vehicle safety agents who may have stopped investigations into the company 6 Comments

 

• Renault in reverse despite 'cash for bangers'
  

 

• Toyota UK car repairs to take one month
  

 

Mortgage lending surges on stamp duty rush

 

New home loans rise by 26 per cent in December to the highest level since 2007 on first-time buyer demand 19 Comments

 

• ‘Generation Rent’ warned to forget buying
  

 

• Housing repossessions reach 14-year high
  

 

 

Dow falls after China increases bank reserves

 

Chinese central bank's decision to raise the level of bank reserves leads to fears that China won't fund recovery

 

Confidential Shell data published on web

 

The document was e-mailed to human rights groups with a cover letter criticising the group’s activities in Nigeria

 

‘Greek tragedy’ as ex-Lupus head rejected again

 

Former executive chairman of Lupus Greg Hutchings has failed to get back on board for second time in five months

 

• Lupus shares soar on new boss
  

 

• Ousted chief’s fresh bid to run Lupus
  

‘Generation Rent’ warned to forget buying

 

Renting for longer will be the only option for millions, experts say

Pension fund fears make investors hang up on BT

 

There are concerns a long battle with regulator could hit dividends if the telecoms group has to upgrade contributions

 

 

Spyker set to list in London after Saab buy

 

Dutch supercars maker is planning to de-list from Amsterdam and float in London and Stockholm after buying Saab

 

Rise in US retail sales won't fuel recovery

 

Total retail sales were up by 0.5 per cent, with spending concentrated on the large general retailers, such as WalMart

 

• US retail sales in surprise December fall
  

 

• Late Christmas rush lifts US retail sales
  

Ex-Goldman employee indicted over software theft

 

Sergey Aleynikov faces up to 25 years in prison after being charged with stealing top-secret computer code

Renault in reverse despite 'cash for bangers'

 

Carmaker joins French rival in reporting deep looses for 2009 but chief executive promises company will bounce back

 

 

 

• US foreclosures fall but fears of double dip rise
  
• PepsiCo to 'refresh' brands as profits double
  
• US bailout watchdog warns of commercial property crisis
  

 

Merlin proves magic of IPOs has gone

 

There is almost a buyers’ strike for flotations and it could threaten to close down the production line

 

• Rolls keeps rolling along
  

 

• Green lining to cloud over oil
  

 

Osborne put on the spot by departure of Sants

 

Departure of the Financial Services Authority chief executive raises some uncomfortable questions for the Conservatives

[interestrateripoff]

Eurostar snow delays criticised

Eurostar comes in for tough criticism over its handling of the crisis that severely disrupted its services before Christmas.

Eurostar breakdowns ordeal

Eurostar to refund £10m

Who is to blame for the chaos?

Stamp duty change prompts rush

 

A rush to beat the end of the stamp-duty concession saw a big rise in house loans in December, mortgage lenders say.

 

Greece calls EU rescue plan timid

 

Greek PM George Papandreou criticises the European Union's response to Greece's financial crisis as timid and too slow

 

 

OTHER TOP BUSINESS STORIES

German economic recovery falters

 

US retail sales beat expectations

 

AC Milan signs £52m Emirates deal

 

Liberia boosts private enterprise

 

Shell employee details revealed

 

Falling sales hit Michelin profit

 

Independent record shops unite online to stem UK store decline

 

Chile mint boss pays the price for coin misspelling gaffe

 

Greece's liquidity problem needs to be sorted first

 

New Look may give private equity a hat-trick of bad news

 

MORE FROM BUSINESS

Indian factory output rises 16.8%

 

M4 set to be 'hydrogen highway'

 

Chinese bank reserves increased

 

Green light for Baltic pipeline

 

Pirate boss to make the web pay

 

Woman loses BA cross appeal

 

BA suspends staff over web posts

 

EU ready to help Greece on debts

 

Minister sparks repossession row

 

Markets mull EU Greek debt plan

 

Diageo hits out at UK tax regime

 

No recovery for Spanish economy

 

YOUR MONEY

End of cheques under MPs' review

 

Trial work plan for lone parents

 

BT to plug £9bn pension deficit

 

ECONOMY

Bank warns of further inflation

 

Strong growth for UK factories

 

Bernanke sees end to stimulus

 

COMPANIES

Volkswagen recalls cars in Brazil

 

Job losses at BAE submarine site

 

Low prices hit Rio Tinto profits

[interestrateripoff]

China Moves to Curb Inflation by Tightening Credit

 

By KEITH BRADSHER 12:35 PM ET

 

 

Associated Press

 

A worker shown resting at a construction site of a real estate project in Guangzhou, China, last month. Amid rising inflation, China’s central bank took new steps to rein in lending.

 

For the second time in less than five weeks, China’s central bank has moved to limit lending, a step that came earlier than most economists had expected.

 

 

Wall Street Struggles as China Tightens Bank Rules

 

By BETTINA WASSENER 12 minutes ago

 

U.S. markets recovered some ground after falling on reports that the European recovery slowed sharply late last year and that China had taken new steps to curb lending.

 

Growth in Europe Slows to a Crawl

 

By MATTHEW SALTMARSH 5:35 AM ET

 

The economic recovery in the euro area almost ground to a halt in the last quarter of 2009, data showed Friday, with the economy of the 16-nation group growing by 0.1 percent.

 

 

China’s Project to Build Fast Trains Is Spurring Growth

 

By KEITH BRADSHER 2:43 PM ET

 

In China, 42 high-speed rail lines have opened or are set to open by 2012; the U.S. hopes to build its first high-speed line by 2014.

 

 

Credit Card Limits for Youth Can Be Opportunity for Parents

 

2:48 PM ET

 

Rules that limit access to credit cards until the age of 21 go into effect this month, which is good news and bad for parents.

Off the Charts

 

As Imports Fall, So Does the U.S. Trade Deficit

 

By FLOYD NORRIS

 

The recession produced the largest decline ever in America’s trade gap with the rest of the world.

 

DealBook

 

An Abrupt Departure at Goldman

 

By ZACHERY KOUWE

 

Mark A. Spilker has abruptly left Goldman Sachs, according to people familiar with the matter.

 

U.S. Retail Sales Topped Forecast in January

 

By THE ASSOCIATED PRESS 11:12 AM ET

 

A second report showed that businesses reduced inventories in December.

[interestrateripoff]

Greece debt bailout: EU leaders split over euro crisis | Mail Online

 

The European single currency is facing an 'inevitable break-up' a leading French bank claimed yesterday.

Strategists at Paris-based Société Générale said that any bailout of the stricken Greek economy would only provide 'sticking plasters' to cover the deep- seated flaws in the eurozone bloc.

The stark warning came as the euro slipped further on the currency markets and dire growth figures raised the prospect of a 'double-dip' recession in the embattled zone.

 

The Euro is in trouble.

[interestrateripoff]

Barclays cuts back bankers' pay in bid to quell bonus fury

 

Bank which took no cash from taxpayer seeks to head off more rows over bonuses

 

 

• Chinese move to slow economy rocks markets
  
• UK set to agree Vauxhall funding deal
  
• New Look joins list of companies scrapping IPOs
  
• City must pick up the bill for FSA's regulatory crackdown
  
• US high street sales open year ahead of expectations
  
• Business Diary: 13/02/2010
  
• Mortgage borrowers cash in on stamp duty
  

 

Agile, smaller enterprises are leading a revival in the industry

 

Excessive focus on big manufacturers is a distraction from the sector’s real innovators

 

• Stephen Timms: We're here for the times when a small business needs a lifeline
  
• Adventures in micro-business: 'Where can I get support to expand my business?'
  
• Virtual solution to a data dilemma
  
• Soapbox: ‘Look to collaborate with those who can do what you can’t’
  
• Roger Trapp: 'Even poets have been cited nio inspiring business founders & managers"
  
• Top of the fair trade fashion tree
  

 

Stephen Foley: Is this the last chapter of the Buffett story?

 

Outlook: Are we entering the endgame for Warren Buffett's Berkshire Hathaway?

 

 

• Stephen Foley: Big pharma needs to compromise
  
• David Prosser: Let's call the bluff of the tax whingers
  
• Hamish McRae: When in enormous debt, do as the Greeks must do: tighten your belt
  
• David Prosser: No room to relax on home repossessions
  
• David Prosser: How to make Greece keep its promises