The great interest rate rip off part 1

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Barclays bows to UK regulator's new rules on pay

 

Barclays sets aside £4.5bn for pay but is forced to scrap guaranteed bonus agreements for star bankers.

FSA raises fees as it beefs up supervision

 

 

 

Rich to bear the cost of Darling's March budget

 

Alistair Darling has given his clearest indication that the Budget next month will be a "soak-the-rich" affair, targeting the wealthy while slashing the deficit.

 

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

 

 

 

Saab-Spyker exploring stock listing in London

 

 

 

 

Hutchings shunned again by Lupus in 'Greek tragedy'

 

 

 

 

New Look pulls stock market flotation

 

 

 

 

Shops and restaurants 'overpaid £20m for music rights'

 

 

 

 

Lebedev to miss Independent sale deadline

 

 

 

 

Toyota chief may have to testify to US government

 

 

 

• FSA's expanding universe is a black hole for cash
  

 

• Why financial journalism makes me angry
  

 

 

• The danger of bearing gifts to the Greeks
  

 

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

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Lloyds targets sales from £70bn property empire

 

Banking Group is searching through property empire amassed by Peter Cummings of HBOS for assets to sell or spin off 10 Comments

 

• Lloyds sells 70% stake in esure to founder
  

 

• Lloyds axes 585 Black Horse loan centre jobs
  

 

Barclays braces for renewed storm over payouts

 

The bank’s £4.5bn in salary and performance payments to its investment bankers will reignite the dispute over bonuses 35 Comments

 

• Barclays chief condemns US financial reform plan
  

 

• Barclays star back hunting for banks
  

 

Tax bombshell awaits voters - 20% VAT

 

A rise in VAT is likely after the general election as Labour and the Tories draw up plans to balance Britain’s books 382 Comments

 

• Osborne ready to reshape Treasury
  

 

• Conservatives get free financial advice
  

 

Shell investigates posting of personal data

 

Oil giant looks into security breach as the names and phone numbers of 170,000 staff and contractors leak on to internet

 

• Shell to cut 1,000 jobs and close six refineries
  

 

• Shell deal promises river of green fuel in Brazil
  

 

 

Worries for eurozone as Greek plight worsens

 

European leaders view alarming new figures on Greek economy, coinciding with worrying statistics from Italy and Germany

 

Supergroup poised to show flotations in fashion

 

The retailer, which owns Cult Clothing and Superdry, is expected to announce a listing that could value it at £400m

 

 

Conservatives get free financial advice

 

Britain's biggest consultancy firms have given Tory MPs free accounting expertise that would have cost thousands of pounds

 

• No early swingeing cuts, says Cameron
  

 

• Blunkett accuses Tories of gerrymandering
  

Insurers and brokers turn on FSA over charge rises

 

The City watchdog says its annual costs would rise by nearly £41m to help to fund an increase in supervisory activities

Eurostar 'lacked plan' for tunnel chaos

 

Report into multiple pre-Christmas snow breakdown in Channel Tunnel calls for 'urgent review' of procedures

 

 

Google fights for hearts and minds

 

As more interest is taken in the search giant's activities, it is rivalling Microsoft in how much it spends on lobbying

 

China move on bank reserves hits US shares

 

Surprise decision by Peking raises prospect of tighter lending and, as a result, reduced consumer spending in China

 

• Why China is stoking war of words with US
  

 

• We need a new capitalism to take on China
  

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

 

 

The bitter taste of bid politics

 

Takeover Panel should investigate how Kraft's takeover campaign created unfounded hope for Cadbury's Somerdale plant

 

• All hail the grumpy old men
  

 

• Battle for the nation’s savings
  

 

 

Osborne ready to reshape Treasury

 

If the Tories win the election, the body will concentrate more on how to raise more money from VAT and cut back spending

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Breaking news:

 

• Bharti offers $10.7 bln for Zain Africa ops-reports - Reuters
  
• French IKEA staff strike over pay and conditions - Reuters
  
• EU's Juncker warns against eurozone drift apart-paper - Reuters
  
• Luxembourg summit to discuss future of bank secrecy - Reuters
  
• Euro zone needs stronger economic management-Draghi - Reuters
  
• Toyota believes no problem with electronic throttle - Reuters
  
• Toyota believes no problem with electronic throttle - Reuters
  
• Obama to give nuclear loan guarantee to Southern Co - Reuters
  
• Toyota sets US recall of 8,000 Tacoma pickups - Reuters
  
• Tiger did not help Buick sales - GM vice chairman - 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 53 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 92 comments

   

  [*] Euro continues to fall after rescue failure

   

   

  Greece debt crisis and Germany's stagnant economy weigh heavily on the euro. By Julia Kollewe 119 comments

   

  • 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
    

   

  [*] 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
    

   

  [*] Working week 'should be 21 hours',

   

   

  New Economic Foundation points to example of Utah, where four-day working week increased productivity and saved energy

   

 

 

• 
  Reykjavik hoping Icesave compromise proposal can avert defeat in referendum
   
   
  Talks to reopen over paying £3.5bn bank claim as polls suggest 60% would vote against current deal
   
  
• 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
     
     
     
    

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Toyota recalls 8,000 US vehicles

Toyota is to recall 8,000 Tacoma pick-up trucks in the US due to concerns about front drive shafts.

Q&A: Toyota recalls

Toyota in global recall of Prius

Call for working week of 21 hours

 

The working week should be cut to 21 hours to help boost the economy and improve standards in society, a think tank says.

 

Pubs win court battle over music

 

Pubs, restaurants and hotels could share £20m in refunds after winning a court battle over charges for recorded music

 

 

OTHER TOP BUSINESS STORIES

Eurostar snow delays criticised

 

Stamp duty change prompts rush

 

Greece calls EU rescue plan timid

 

Concern grows over gambling in UK

 

German economic recovery falters

 

US retail sales beat expectations

 

MORE FROM BUSINESS

Obama raises US borrowing limit

 

AC Milan in £52m Emirates deal

 

Liberia boosts private enterprise

 

Shell employee details revealed

 

Falling sales hit Michelin profit

 

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

 

YOUR MONEY

Claims firm misleading customers

 

Minister sparks repossession row

 

End of cheques under MPs' review

 

ECONOMY

EU ready to help Greece on debts

 

No recovery for Spanish economy

 

Bank warns of further inflation

 

COMPANIES

Volkswagen recalls cars in Brazil

 

Diageo hits out at UK tax regime

 

Job losses at BAE submarine site

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HIGHLIGHTS-Greek FinMin unveils tax reform, wage policy | Reuters

 

"From 1. Jan. 2011, every transaction above 1,500 euros between natural persons and businesses, or between businesses, will not be considered legal if it is done in cash. Transactions will have to be done through debit or credit cards"

 

I can see this happening all over the world as govts go after maximising tax revenues.

 

Mish's Global Economic Trend Analysis: Greece Outlaws Cash Transactions Above 1500 Euros, Unveils New Taxes

 

In an attempt to rein in the shadow economy and collect more tax revenue, Greece outlaws cash transactions greater than 1500 Euros. Please consider Greek Finance Minister unveils tax reform, wage policy.

 

"From 1. Jan. 2011, every transaction above 1,500 euros between natural persons and businesses, or between businesses, will not be considered legal if it is done in cash. Transactions will have to be done through debit or credit cards"

 

"There's tax relief for incomes up to 40,000 (euros)"

 

"Taxable income based on the new scales will include capital gains from the short-term trading of stocks"

 

"Deposits in banks outside Greece are exempted from audits of their origin if they are repatriated within six months of the passing of the tax bill and are taxed with a 5 percent rate"

 

"Wages of board members in unlisted state companies will fall by 50 percent"

 

"The budget bill for allowances and compensations will be cut by 10 percent"

Buy It Now

 

Everyone in Greece will quickly figure out that the time to make major purchases is now. So expect to see sales plunge starting January 1, 2011 as demand for everything priced above 1500 euros shifts forward.

 

Greece Threatens Bankruptcy, And the Eurozone - Megan McArdle

 

There's a lot of talk about the declining dollar, but we might better be worrying about the euro. Greece may finally be reaching the end of its ability to borrow at any price, and what the euro zone does about this crisis--the EU is statutorily forbidden to intervene--may determine whether the euro ultimately survives.

 

Greece has already accumulated a mountain of debt that will be difficult if not impossible to pay off. The government has borrowed more than 110 percent of the country's economic output over the years, and if investors lose confidence in the bonds, a meltdown could happen as early as next year.

That's when the government borrowers in Athens will be required to refinance €25 billion worth of debt -- that is, repay what they owe using funds borrowed from the financial markets. But if no buyers can be found for its securities, Greece will have no choice but to declare insolvency -- just as Mexico, Ecuador, Russia and Argentina have done in past decades.

This puts Brussels in a predicament. European Union rules preclude the 27-member bloc from lending money to member states to plug holes in their budgets or bridge deficits.

And even if there were a way to circumvent this prohibition, the consequences could be disastrous. The lack of concern over budget discipline in countries like Spain, Italy and Ireland would spread like wildfire across the entire continent. The message would be clear: Why save, if others will eventually foot the bill?

On the other hand, if Brussels left the Greeks to their own devices, the consequences would also be dire. Confidence in the euro would be shattered, and the union would face a crucial test. What good is a common currency, many would ask, if some of the member states pay their debts while others do not?

Furthermore, there is a threat of a domino effect. If one euro member falls, speculators will test the stability of other potential bankruptcy candidates. This could destroy the currency union. Because of this systemic risk, say the economists at the Swiss bank UBS, "we believe that if a country is facing a problem with debt repayment or issuance, it will be supported.

When the euro finally sprang into the existence, I was at the Economist, and as you can imagine, I ended up writing a lot about its future. Much of what I wrote revolved around the theory of optimal currency zones. If your currency zone is too small, you lose out on gains from trade, because of transaction costs and currency risk. If your currency zone is too big, you have a different problem: your one size fits all monetary policy chokes off growth in some areas, and allows other areas to overheat.

 

Something I've been saying for years.

 

Thus there's no way out. Even if they default on every loan and eliminate debt service from their cash flow, it's clear that Greece can't live within its own means. How do they pay their Army, Navy, Fire, Police, Garbage Collectors, Doctors, Nurses, etc.?

 

From the above link.

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Wall St. Helped Greece to Mask Debt Fueling Europe’s Crisis - NYTimes.com

 

Wall Street tactics akin to the ones that fostered subprime mortgages in America have worsened the financial crisis shaking Greece and undermining the euro by enabling European governments to hide their mounting debts.

 

As worries over Greece rattle world markets, records and interviews show that with Wall Street’s help, the nation engaged in a decade-long effort to skirt European debt limits. One deal created by Goldman Sachs helped obscure billions in debt from the budget overseers in Brussels.

 

Even as the crisis was nearing the flashpoint, banks were searching for ways to help Greece forestall the day of reckoning. In early November — three months before Athens became the epicenter of global financial anxiety — a team from Goldman Sachs arrived in the ancient city with a very modern proposition for a government struggling to pay its bills, according to two people who were briefed on the meeting.

 

The bankers, led by Goldman’s president, Gary D. Cohn, held out a financing instrument that would have pushed debt from Greece’s health care system far into the future, much as when strapped homeowners take out second mortgages to pay off their credit cards.

 

It had worked before. In 2001, just after Greece was admitted to Europe’s monetary union, Goldman helped the government quietly borrow billions, people familiar with the transaction said. That deal, hidden from public view because it was treated as a currency trade rather than a loan, helped Athens to meet Europe’s deficit rules while continuing to spend beyond its means.

 

Athens did not pursue the latest Goldman proposal, but with Greece groaning under the weight of its debts and with its richer neighbors vowing to come to its aid, the deals over the last decade are raising questions about Wall Street’s role in the world’s latest financial drama.

 

As in the American subprime crisis and the implosion of the American International Group, financial derivatives played a role in the run-up of Greek debt. Instruments developed by Goldman Sachs, JPMorgan Chase and a wide range of other banks enabled politicians to mask additional borrowing in Greece, Italy and possibly elsewhere.

 

In dozens of deals across the Continent, banks provided cash upfront in return for government payments in the future, with those liabilities then left off the books. Greece, for example, traded away the rights to airport fees and lottery proceeds in years to come.

 

Critics say that such deals, because they are not recorded as loans, mislead investors and regulators about the depth of a country’s liabilities.

 

It appears that everyone is involved in this game, total implosion seems inevitable. The entire financial system is one huge fraud, capitalism only works if there is transparency and it appears we have lie after lie after lie.

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Breaking news:

 

• Samsung, Sony Ericsson roll out new smartphones - Reuters
  
• GLOBAL ECONOMY-Challenges to U.S. rebound emerge from overseas - Reuters
  
• Zain board OKs $10.7 bln Bharti bid for Africa ops - Reuters
  
• No love lost between Dubai World, bankers on deal talk - Reuters
  
• VT looking to raise Mouchel bid to 300p/shr-report - Reuters
  
• Greece has "will and strength" to tackle economic woes - Reuters
  
• BP in talks over $1.2 bln Canadian oil sands deal -report - Reuters
  
• U.S. grants oneworld airline alliance antitrust immunity - Reuters
  
• All options open at OPEC meeting -Algeria oilmin - Reuters
  
• Iraqi Kurdistan to publish oil contracts-minister - Reuters
  

 

 

 

• EU toughens stance on Greece
   
   
  Finance ministers could force Athens to impose further austerity measures at a Monday night meeting focusing on the currency crisis Post your comment
   
  
  • Europe's south refuses to downsize without a fight
    
  • Ruth Sunderland: These troubles hurt us too
    
  • Will Hutton: Don't laugh at Europe's woes
    
  • Editorial: This is about Europe, not the euro
    
  • Euro continues to fall after rescue failure
    
  • 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
    

   

  [*] MPs want to quiz Kraft bosses on Cadbury

   

   

  MPs call on senior Kraft executives to clarify plans after the U-turn over keeping its Somerdale factory open

   

  [*] Barclays and RBS likely to spark outrage over bonuses worth billions

   

   

  Record profits at Barclays, which is paying out bonuses of more than £2.3bn, lead to calls for big banks to be broken up

   

  • King: Bank profits must be used to rebuild capital
    
  • Barclays may spin off private equity arm
    

   

  [*] NewsCorp blamed for MySpace turmoil

   

   

  Departure of Owen Van Natta, the social networking site's chief executive, calls into question Rupert Murdoch's digital strategy

   

 

 

• 
  How the rise of the smartphone made Europe look stupid
   
   
  The European pioneers that transformed the mobile telecoms industry are now stumbling in the wake of their American and Asian rivals. By Richard Wray
   
  
  • Arm: the firm at the core of Apple's success
    
  • Game on at the Mobile World Congress
    
  • Orange and T-Mobile may hand back spectrum
    
  • More from the Mobile World Congress
    

   

  [*] Canada looks to China to develop boycotted oil sands projects

   

   

  Chinese investment is being courted for Alberta oil projects that have been shunned by US firms 11 comments

   

  • Legal challenge to Schwarzenegger's tar sands ban
    

   

 

 

• More business news
   
   
  
  • Sellafield 'must learn from Texas City'
     
     
     
    
  • Darling to use budget as poll launch pad
     
     
     
    
  • US banks facing $1.4tn real estate crisis
     
     
     
    

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Isaiah Berlin on Georges Sorel:

 

Sorel dismissed science as "a system of idealised entities: atoms, electric charges, mass, energy and the like – fictions compounded out of observed uniformities…deliberately adapted to mathematical treatment that enable men to identify some of the furniture of the universe, and to predict and…control parts of it." He regarded science more as "an achievement of the creative imagination, not an accurate reproduction of the structure of reality, not a map, still less a picture, of what there was. Outside of this set of formulas, of imaginary entities and mathematical relationships in terms of which the system was constructed, there was ‘natural’ nature – the real thing…" He regarded such a view as "an odious insult to human dignity, a mockery of the proper ends of men", and ultimately constructed by "fanatical pedants", out of "abstractions into which men escape to avoid facing the chaos of reality."

 

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Deripaska plans new $1.5bn float in Hong Kong

 

Oleg Deripaska is set to launch a $1.5bn (£950m) stock market flotation of his electric power business, despite the recent collapse of several high profile flotations.

 

 

• Dance of debt: Film company sells movies to clear $9.6m
  
• Barclays profits soar to £11.2bn, but bonuses will be curbed
  
• BPE trims board as deals slow
  
• Semperian slows growth to under £150m a year
  
• PureCircle set for sweet deal with major sugar company
  
• One in 10 civil servant posts to leave London
  
• BAE's profits to fall to £1.7bn
  

 

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
  

 

Margareta Pagano: Is the Big Beast about to oust Bullingdon Boy?

 

Latest Westminster rumour gains currency in the City

 

 

• Hamish McRae: Eurozone countries really must start running a surplus – sharpish
  
• Stephen Foley: Is this the last chapter of the Buffett story?
  
• 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
  

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Blue chips threaten tax exodus

 

Half of FTSE’s top 30 firms have studied shifting their tax base offshore, with a some saying they are actively considering a move 35 Comments

 

• ABI warns blue chips against dodging 50% tax
  

 

• Treasury loses as top earners dodge 50p tax
  

 

Lloyds boss set for multi-million pound bonus

 

The banking group is poised to stoke the controversy over banker bonuses by awarding a bumper payout to its chief executive 57 Comments

 

• Lloyds to inflame row over City bonuses
  

 

• Lloyds cuts staff pensions and hands out bonuses
  

 

City fears blowout on inflation target

 

Inflation is set to surge this week, raising questions over the Bank's forecast of a sharp fall by the end of the year 14 Comments

 

• Recession’s ruins hide spare capacity
  

 

• King: UK economy 'bumping along bottom'
  

 

British Airways in Atlantic tie-up victory

 

United States gives green light to BA tie-up with AA, ending 12-year quest by the airline to win approval for the deal 17 Comments

 

• British Airways gives Blunkett £8,000 upgrades
  

 

• Virgin steps up opposition to BA-AA alliance
  

 

 

BP risks investor outrage at ‘dirty’ oil deal

 

Tony Hayward has set the group on a collision course with investors and environmentalists over an oil sands deal

 

Celebrity haunt given reprieve

 

Paramount, a London members’ club backed by a host of celebrities, has quietly struck a deal with creditors to stave off administration

 

Kwik-Fit sells £200m insurance arm

 

The car repair firm has hired Credit Suisse to carry out a review of its financial services, which handles 10m calls a year

 

• Kwik-Fit in a right fix as debts spiral
  

 

• Kwik-Fit can’t fix flat profits
  

Reuben brothers mull TV racing bid

 

The billionaire property investors are plotting a takeover bid for Catalyst Media Group which supplies racing footage to bookmakers

 

• Reuben brothers eye £2.7 billion float
  

 

• Premium Bars investors face Reuben wipeout
  

ING in scrum over Rugby Estates

 

The real estate investment trust is in takeover talks with a rival listed property fund run by the Dutch fund manager

 

 

Private-equity boss tried to split EMI

 

Guy Hands proposed separating the recorded music division from music publishing last November, according to court documents

 

Paulson scorns Obama's banking reforms

 

Former US Treasury secretary says plans to stop banks from betting their own capital on the markets would not prevent a future crisis

 

• I’m the guy who saved Wall Street
  

 

• Paulson again says UK 'screwed' US on Lehman
  

Economic boost from Europe for Greece

 

The chairman of Europe’s finance ministers said action would be taken to support the country's beleaguered economy

 

• City fears blowout on inflation target
  

 

• Recession’s ruins hide spare capacity
  

Mobile phone operators' war on Apple apps

 

Orange, Telefonica and ten others are forging an alliance to build an open technology platform to deliver apps to all mobile users

 

 

China move on bank reserves rattles US stock market

 

 

Recession’s ruins hide spare capacity

 

What does an economic wrecking ball look like? If you know, and can put a number on it, the BoE would love to hear from you

 

Debenhams effect sinks flotations

 

If you want to know why so many big floats were pulled last week, you need only look at the performance of the department-store chain

 

 

 

Market capitalism is so yesterday, state capitalism so now

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ICAP chief Michael Spencer to resign Tory post

 

Michael Spencer, the chief executive of ICAP, is to resign as treasurer of the Conservative Party.

 

BA given approval for tie up with American Airlines

 

Sir Richard Branson says decision by US Department of Transportation 'beggars belief'.

 

Can anyone fix the euro puzzle?

 

A crisis-strewn week has left the single currency on the edge of a precipice, write Edmund Conway and Bruno Waterfield

Will markets call EU bluff on Greek rescue?

 

 

Beware Greeks bearing gift of the gab, we need to see the details

 

 

Hedge funds turn on Euro stocks

 

 

 

President Obama to step up support for US nuclear industry

 

 

 

 

Barclays, the Houdini bank

 

 

 

 

Treasury will receive £1.5bn boost from bankers' tax

 

 

 

 

Nelson Peltz cuts Kraft stake over tie-in doubts

 

 

 

 

Citi says Guy Hands sought to break up EMI 'months ago'

 

 

 

 

MySpace developer moves to Facebook

 

 

 

• Greek saga won't kill the euro but the end may begin here
  

 

• Michael Spencer's decision is just what ICAP needs
  

 

 

• How much should you be risking in the East?
  

 

Beware Greeks bearing gift of the gab, we need to see the details

 

 

 

How much should you be risking in the East?

 

 

 

 

Greek saga won't kill the euro but the end may begin here

 

 

 

 

Rich to bear the cost of Darling's March budget

 

 

 

 

US retail sales better than expected

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Economists push for deficit cut

The government must act more quickly to cut Britain's huge budget deficit, a group of economists says.

Clarke issues spending warning

Tories 'not ruling out tax rises'

Cameron seeks 'year for change'

Barclays to pay £2bn in bonuses

 

Barclays is to pay staff bonuses adding up to more than £2bn, the BBC learns - two days ahead of the bank's annual results.

 

MPs to quiz Kraft on Cadbury deal

 

MPs are to question senior officials from US food giant Kraft next month over its takeover of Cadbury

 

 

OTHER TOP BUSINESS STORIES

Branson slams US airline decision

 

Dubai market falls on debt fears

 

Toyota recalls 8,000 US vehicles

 

Call for working week of 21 hours

 

Pubs win court battle over music

 

Eurostar snow delays criticised

 

Bonus war: Barclays £2bn vs RBS £1.3bn

 

MORE FROM BUSINESS

Stamp duty change prompts rush

 

Greece calls EU rescue plan timid

 

Concern grows over gambling

 

German economic recovery falters

 

US retail sales beat expectations

 

Obama raises US borrowing limit

 

AC Milan in £52m Emirates deal

 

Liberia boosts private enterprise

 

Shell employee details revealed

 

Falling sales hit Michelin profit

 

Indian factory output rises 16.8%

 

M4 set to be 'hydrogen highway'

 

Chinese bank reserves increased

 

YOUR MONEY

Claims firm misleading customers

 

Minister sparks repossession row

 

End of cheques under MPs' review

 

ECONOMY

Green light for Baltic pipeline

 

EU ready to help Greece on debts

 

No recovery for Spanish economy

 

COMPANIES

Woman loses BA cross ban appeal

 

Pirate boss to make the web pay

 

BA suspends staff over web posts

 

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In Detroit, Is There Life After the Big 3?

 

By PETE ENGARDIO

 

As parts makers add customers like NASA and solar power companies, they are helping to offset the tens of thousands of lost jobs in the auto industry.

Economic View

 

What’s Sustainable About This Budget?

 

By N. GREGORY MANKIW

 

War and recession are valid reasons for running a deficit, but the president’s budget makes it unmanageable, N. Gregory Mankiw says.

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Buttonwood: Shaky foundations | The Economist

 

FALLING house prices were the trigger for the financial crisis, so it should be good news that they have stabilised, in America and Britain at least. But the way they have stabilised still presents a bit of a puzzle. As Dhaval Joshi, an analyst at RAB Capital, points out, the fall in British economic output was greater and the subsequent recovery less vigorous than in America. But British house prices are up by 10% from their lows, while American homes are only 3% above the bottom despite energetic government support, including a homebuyers’ tax credit that has been extended until April.

Mr Joshi sees the answer to this divergence in terms of supply. Between 2002 and 2006 American builders constructed 12m new homes while only 7m new households were formed. American homeowners are also much more likely to walk away from their debts because many mortgages are “non-recourse”, meaning that lenders cannot come after borrowers’ other assets. As a result, repossessions are much higher in America than in Britain: Capital Economics says that some 5m foreclosed homes will come onto the market over the next two years.

 

More at the link.

[interestrateripoff]

Goldman Sachs: the Greek connection

 

Bank accused over complex financial deals that allowed the eurozone nation to skirt its debt limits.

 

 

• Branson attacks US anti-trust move on BA tie-up
  
• Lloyds moves to quell fears over executive earnings
  
• Promethean to press ahead with £500m IPO plan
  
• £4.5bn bonus pot expected as Barclays profits soar
  
• Survey reveals extent of London retail woes
  
• Oil and gad companies enjoy bumper 2009
  
• Hundreds of economists call for tax on currency speculation
  

 

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
  

 

Vanessa Rossi: Give China a break... its economy is saving the rest of us from a slump

 

China proved, yet again, that it is recession-proof, even withstanding a once-in-a-century global shock

 

 

• Margareta Pagano: Is the Big Beast about to oust Bullingdon Boy?
  
• Hamish McRae: Eurozone countries really must start running a surplus – sharpish
  
• Stephen Foley: Is this the last chapter of the Buffett story?
  
• Stephen Foley: Big pharma needs to compromise
  
• David Prosser: Let's call the bluff of the tax whingers
  

[interestrateripoff]

Greece Ordered by EU to Uncover Swaps by End of February - Bloomberg.com

 

Greece was ordered by European Union regulators to disclose details of currency swaps it may have used to deal with the debts that threaten to swamp its economy. The EU statistics office set an end-of-February deadline for Greece to provide more information on the swaps arrangements with securities firms, which do not necessarily break EU rules, European Commission spokesman Amadeu Altafaj said.

Statisticians have “already requested the Greek authorities for an explanation by the end of February,” Altafaj told reporters in Brussels before tonight’s meeting of euro- region finance ministers to tackle the repercussions of Greece’s budget crisis.

The existence of the swaps, discussed by the Greek Finance Ministry in a Feb. 1 report, fueled questions about whether deals with investment banks helped Greece shroud the true extent of its fiscal woes.

“It is legitimate if the underlying exchange rates and the interest rates of such swaps are calculated from the observed market rates and this is something we will have to assess,” Altafaj said.

Eurostat, the EU’s Luxembourg-based statistics agency, polices national budgetary and economic statistics.

Goldman Sachs Group Inc. was enlisted by the Greek government in 2002 to provide $1 billion through a swap agreement, Christoforos Sardelis, head of Greece’s Public Debt Management Agency between 1999 and 2004, said in an interview last week.

[interestrateripoff]

Breaking news:

 

• Ericsson CEO mum on 2010, sees growth - Reuters
  
• Toyota plans competitive sales incentives for March - Reuters
  
• Lisbon treaty could offer Greece help-German MP - Reuters
  
• MOBILE FAIR-WRAPUP 3-Nokia, Intel team up in phone software - Reuters
  
• Kraft gets over 90 percent of Cadbury - Reuters
  
• Greece pleads for time at euro zone debt talks - Reuters
  
• MOBILE FAIR-WRAPUP 3-Nokia, Intel team up in phone software race - Reuters
  
• Oil dips under $74 as risk worries rise - Reuters
  
• L'Oreal Q4 sales miss forecasts; aims for 2010 growth - Reuters
  
• Bollore year sales hit by lower oil price, freight - Reuters
  

 

 

 

• BA yet to gain official approval for biojet fuel from food scraps
   
   
  East London factory could create up to 1,200 jobs and produce 16m gallons of green fuel a year. By Tim Webb Post your comment
   
  
  • BA shares take off on US tie-up progress
    

   

  [*] Greece and Brussels clash over debt

   

   

  Doubts over Greek efforts to resolve the debiltating debt and deficit crisis that is imperilling the euro's stability. By Ian Traynor

   

  • Greece defends 'Titanic' efforts to tackle financial crisis
    
  • EU toughens stance on Greece
    
  • Editorial: This is about Europe, not the euro
    
  • Q&A: Greece's financial crisis
    

   

  [*] Calls to curb CDS gamblers

   

   

  Traders in credit default swaps are hoping that countries default on their debt, say experts, and the market needs more regulation. By Elena Moya

   

  • Cost of insuring Dubai's debt soars
    

   

  [*] Icap plans shakeup as Michael Spencer quits as Tory treasurer

   

   

  Broker reviews future of its struggling equities division and reveals that chief executive Michael Spencer will step down as Conservative party treasurer in the autumn. By Julia Kollewe

   

  [*] Japan shrugs off Chinese challenge to remain world's second-largest economy

   

   

  Strong growth at the end of 2009 kept the country just ahead of its Asian rival, although China is expected to overtake it this year

   

 

 

• 
  Mobile World Congress 2010: Google plays down hopes of mobile app alliance
   
   
  Man behind the search engine's Android mobile phone software believes that an 'app' system that works anywhere will remain a dream. By Richard Wray 6 comments
   
  
  • O2 and Orange link up to fight iPhone
    
  • Rise of the smartphone made Europe look stupid
    
  • Arm: the firm at the core of Apple's success
    
  • Game on at the Mobile World Congress
    
  • Orange and T-Mobile may hand back spectrum
    
  • Follow Rick Wray at the Mobile World Congress
    

   

  [*] Barclays and RBS likely to spark outrage over bonuses worth billions

   

   

  Record profits at Barclays, which is paying out bonuses of more than £2.3bn, lead to calls for big banks to be broken up

   

  • King: Bank profits must be used to rebuild capital
    
  • Barclays may spin off private equity arm
    

   

 

 

• More business news
   
   
  
  • Superdry owner SuperGroup plans flotation
     
     
     
    
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  • Job cuts signal start of public sector recession
     
     
     
    
  • Darling rejects economists' call for spending cuts
     
     
     
    
  • MPs want to quiz Kraft bosses on Cadbury
     
     
     
    

[interestrateripoff]

Lisbon treaty could offer Greece help-German MP | Business | guardian.co.uk

 

BERLIN, Feb 15 (Reuters) - The European Union could refer to an article in the Lisbon Treaty to provide assistance to Greece, a German opposition lawmaker said on Monday.

Gerhard Schick, finance policy expert for the Greens party, told Reuters he had asked legal experts attached to the German Bundestag lower house of parliament for an opinion on whether Article 122 of the Lisbon Treaty would be valid for Greece.

The article says that EU members states that are "seriously threatened with severe difficulties caused by natural disasters or exceptional circumstances beyond its control" can be granted financial assistance "under certain conditions".

Schick said that the Bundestag's legal consultants were of the view Article 122 might be applicable to Greece.

"I asked for the parliament's expert opinion on Article 122 and it seems clear that it could possibly be applied," Schick said. Until now the German government has referred only to Article 125 which appeared to rule out assistance, he added.

"My main demand is that both articles are taken into account," Schick said. "I think it's important that people are aware of both articles in the discussion on Greece."

There has been opposition to aid for Greece from members of Chancellor Angela Merkel's coalition with several senior politicians expressing scepticism.

Athens has struggled to convince investors it is tackling its debt crisis and markets are nervous about a default.

Genius, so spending more money than you make and being fiscally irresponsible suddenly equates to "exceptional circumstances beyond its control".

 

I suppose in a certain way it is.

 

Looks like they are trying to find a way to bailout the greeks, then it will be Italy and then Spain.

[interestrateripoff]

[/url]

 

Inflation expected to rise above Bank target

 

Economists' predict inflation rate of 4pc, prompting concerns about a decrease in Britons' living standards.

 

Greece likens its economy to the Titanic, asks for time

 

Greece faced down pressure from euro zone peers to step up budget cuts and stem a looming crisis in its debt markets.

 

RBS bankers resign over forced bonus cuts

 

Resignation of two senior bankers over bonuses raises fears about whether the Government will be able to sell its stake at a profit.

Brokers still in dark over UK bonus tax

 

 

 

China 'to allow' yuan to rise

 

China could be on the verge of letting the yuan appreciate in order to attempt to put a brake on growth, a leading economist has said, in a move that has spread concern in international currency markets.

 

FTSE 100 recovers as taste for risk returns

 

 

 

 

GM's Carl-Peter Forster takes Tata driving seat

 

 

 

 

Big US, Chinese, Japanese moble operators adopt GSM

 

 

 

 

BA takes off as US approves American Airlines tie-up

 

 

 

 

Flotation confirmations ease fears over market volatility

 

 

 

• Britain is under as much pressure as the PIGS
  

 

• Did Goldman Sachs help Britain hide its debts too?
  

 

 

• How much should you be risking in the East?
  

 

House prices rise 3.2pc

 

The latest monthly jump was the biggest increase since April 2007.

 

 

 

UK jobless rate would be 15pc if Britain had joined euro, says CEBR

 

 

 

Japan retains title as world's second biggest economy

 

 

 

 

Can anyone fix the euro puzzle?

 

 

 

 

Beware Greeks bearing gift of the gab, we need to see the details

 

 

 

 

How much should you be risking in the East?

[interestrateripoff]

Greece refuses EU austerity measures demand

 

Greek finanace minister insists his country is 'doing enough' despite EU Commissioner's call for stronger action 61 Comments

 

• Euro volatile on weak Greece austerity plan
  

 

• Fears Greece will run out of time on austerity plan
  

 

Jaguar Land Rover names GM chief as new boss

 

Carl-Peter Forster, who was in charge of General Motor's European business, will take over the role from David Smith 1 Comment

 

• Tata kicks off search for new chairman
  

 

• Tata snubs Mandelson over electric car loan
  

 

Japan quashes optimism despite GDP rise

 

World's second largest economy surged 4.6% in the fourth quarter but officials fear deflation could hit growth

 

• Don’t write Japan off. The giant is stirring
  

 

• Japan takes axe to GDP in 'ridiculous' revision
  

 

Babcock bids £1.1bn for rival VT Group

 

The engineering group wants to take over its smaller rival, disrupting VT's current £330m million bid for Mouchel 1 Comment

 

• Mouchel considers VT's raised £330m bid
  

 

• VT hopes raised offer will win over Mouchel
  

 

 

Adam aims to take bite out of Apple in iPad war

 

Indian start-up, Notion Ink, will attempt to provide a gadget 'for the masses' with a product blogs are raving about

 

Ex-Cazenove man faces insider dealing charges

 

Malcolm Calvert, who retired from the Queen's stockbroker in 2000, is facing 12 charges in a case brought by the FSA

 

 

Quango silent on sub-standard housing

 

Homes & Communities Agency rejects request to disclose names of developments that do not meet quality of life standards

 

• Barratt hopes eco-village will be first of many
  

 

• Public land offered to solve housing crisis
  

Regulator clears BA deal with American Airlines

 

British Airways argues it should be allowed a slice of the lucrative market for flying US public servants

 

• BA gives Blunkett £8,000 upgrades
  

 

• BA dispute escalates as 15 cabin crew suspended
  

RBS calls for lending target to be lowered

 

Bailed-out bank says faltering business credit demand means government-led commitment should be less challenging

 

 

Dubai World debt strategy sends stock tumbling

 

Troubled state-owned conglomerate plans to offer creditors 60% of their money back as the two sides remain poles apart

 

'China's richest man' charged with insider trading

 

Huang Guangyu, the epitome of the rages-to-riches tale, also charged with offering bribes after 15 months in custody

 

• China's richest vanishes amid police inquiry
  

 

• China's richest man was 'unfailingly polite'
  

Nine British companies in US bribery inquiry

 

N ew research shows nine British companies are being investigated by American authorities for allegedly paying bribes to win business

Kazakhstan threatens contracts in tax move

 

Britain's BG Group is among companies which could be affected if Kazakh Government dissolves long-standing contracts

 

 

Germany is part of Greece’s woe, not just its remedy

 

The sight of Greece, and others, wilfully outspending their ability to pay offends many Germans, proud of their prudence

 

A new watchdog would guard us from debt

 

With the budget deficit soaring, an independent committee should test government credibility

[interestrateripoff]

Jobs market 'still on the ropes'

The UK economy is facing more redundancies, with substantial cuts expected in the public sector, a report says.

Surprise fall in UK unemployment

What job prospects for 2010?

If you lose your job

Corus production to end 'in days'

 

Production of steel at Teesside's Corus plant, where 1,700 jobs are under threat, will cease on Friday, says the firm.

 

Energy bill loophole 'will close'

 

The government says it will amend a rule that allows energy firms more than two months to inform customers of price rises

 

 

OTHER TOP BUSINESS STORIES

Greece calls for aid plan details

 

Banks sale 'may take five years'

 

Defence firm rejects bid approach

 

Building societies 'face threat'

 

Japan economic growth speeds up

 

Darling defends UK deficit plan

 

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Mobile firms unite to offer apps

 

Mobile firm Bharti in African bid

 

BA in deal for jet biofuel plant

 

China charges tycoon over fraud

 

MPs to quiz Kraft on Cadbury deal

 

Dubai market falls on debt fears

 

Economists push for deficit cut

 

Branson slams US airline decision

 

YOUR MONEY

Claims firm misled customers

 

Stamp duty change prompts rush

 

Concern grows over gambling in UK

 

ECONOMY

US retail sales beat expectations

 

German economic recovery falters

 

Liberia boosts private enterprise

 

COMPANIES

Celtic announce drop in turnover

 

Barclays to pay £2bn in bonuses

 

Toyota recalls 8,000 US vehicles

[interestrateripoff]

India Worries as China Builds Ports in South Asia

 

By VIKAS BAJAJ 28 minutes ago

 

 

Gemunu Amarasinghe/Associated Press

 

China is financing and constructing a deep-water sea port in Hambantota in southern Sri Lanka. The project, one of several in South Asia, has unnerved India, the region’s biggest economic power.

 

China has been investing in Pakistan, Bangladesh and Myanmar, and it plans to construct railway lines in Nepal to open and expand markets.

 

 

Greece Pressed to Take Action on Economic Woes

 

By STEPHEN CASTLE and MATTHEW SALTMARSH 16 minutes ago

 

European finance ministers gathered to put pressure on Greece to step up budget cuts and stem its debt crisis, but Greece, faced with growing public dissent, warned over doing too much too fast.

 

• Floyd Norris: Helping Governments Deceive
  
• European Indexes Rise as Finance Ministers Gather 10:07 AM ET
  
• E.C.B. President Defends Measures on Greece
  

 

U.S. Housing Aid Winds Down, and Cities Worry

 

By DAVID STREITFELD

 

An Indiana city symbolizes failed efforts to turn around the housing slump at the heart of the credit crisis.

[interestrateripoff]

What The Hell Is Wrong With People? - The Market Ticker

 

I will probably draw comments like "you doth protest too much!" for this, but I think it's important.

My exchange in email with Jonathan Weil over my "Whistling Past The Graveyard We Be", in which he originally took umbrage over my "soft" characterization of him being late to call things what I believe they are (that is, fraudulent misconduct) rather quickly turned into my rehashing a piece of my Ticker on synthetics a couple of days ago, pointing out that this, plus the removal of leverage limits, plus generally bogus accounting and willful blindness are the primary reasons we're in this mess - and that none of this is a "mistake".

His ultimate reply to me was that there was no point to arguing with a crazy person.

Well, if I'm crazy for my refusal to believe that any of this was an accident or mistake then I'll wear that badge with pride, because I cannot square any of what has happened thus far, nor the road to Hell we are presently on, with the generalized idea that any of this was an accident - or a mistake.

To the contrary - it is my considered opinion that nearly the entire last two decades of our so-called "Economic Progress" has been defined by parties all trying to screw one another in any form or fashion they could manage to pull off.

Back in the 1990s I saw a metric ton of this while running MCSNet. We would get a literal dozen or more calls a day from people who wanted accounts to access the Internet - but they first asked our customer service representatives if we carried certain material that was flatly unlawful to possess or distribute, including groups linked to stolen computer software and child pornography. We didn't, we said so, and they went somewhere else - usually after loosing a long string of obscenities at the employee who delivered the news.

Internet firms of all stripes were claiming Internet growth rates of 30% or more per quarter during the 1990s - in many cases right up until it all blew up. It was a lie - that growth rate in the Internet was a couple of quarters in duration, corresponding with the release of Windows 95. This is a fact that thousands of people knew because we, along with those others, had access to the Internet's "core" routing tables - we had to in order to do our job. Yet this lie was repeated by company after company in conference call after conference call and drove much of the speculative Nasdaq Stock Bubble. When it collapsed everyone who believed in that lie got creamed and millions of Americans lost (effectively) their entire investment account.

But let's return to the present mess, shall we?

It's not an accident when you create a security because some hedge fund manager (even if a really bright one) comes to you and wants to short something - so you give him a means to do so, and then sell the other side of that off to people without telling them how it came into existence in the first place, including how, why, and at who's behest and for what purpose you created it.

 

More at the link.

[interestrateripoff]

World famous Abbey Road recording studios up for sale new

 

London's iconic Abbey Road recording studios have been put up for sale by embattled music group EMI, it was reported today

 

• Petrol costs fuel jump in inflation
  
• Greece faces tough measures in bid to save 'Titanic' economy
  
• Markets hit as fears over Dubai debt rekindled
  
• British Airways to fly jets on green fuel made from London's rubbish by 2014
  
• Former richest man of China is charged with financial crimes
  
• Barclays bosses reject bonus payouts new
  
• 1,600 jobs to go as Teesside Cast Products Plant is mothballed
  

 

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: Credit card lenders pass on their pain

 

Outlook: The best savings account deals are invariably open only to new customers these days

 

 

• Econoblog: Barclays avoid fairness, but where is the FSA? new
  
• Econoblog: Inflation might not subside as quickly as predicted new
  
• Econoblog: Bank are right not to lend to the shakier small businesses new
  
• David Prosser: Time to start regulating buy-to-let
  
• Vanessa Rossi: Give China a break... its economy is saving the rest of us from a slump