This first item is dangerous in the extreme and must be resisted. It
is good to see that when first mooted most countries refused to attend.
This is a case where politicians, having constructed their own
regulatory systems which failed at their first test, are so arrogant
that they want more power for themselves so that they can have an
other go at fouling it up. It is the failure of their previous
efforts which allowed matters to get out of hand.
Then we have a ‘vote of no confidence’ by the business community on B
rown-Darling (not noticeable in the general public’s opinions in
today’;s YouGov poll)
Finally there are some”shorts” and broadcast comments to round off
the midday situation.
XXXXXXXXXXXXXX CS
========================
EU OBSERVER 9.1.09
Merkel and Sarkozy call for global 'economic security' council
LEIGH PHILLIPS
German Chancellor Angela Merkel and French President Nicholas Sarkozy
have warned the US not to block attempts to build an international
financial regulator, calling for a new economic body similar to the
UN's Security Council.
"I've always in my political life been a supporter of a close
alliance with the United States but let's be clear: in the 21st
century, a single nation can no longer say what we must do or what we
must think," said Mr Sarkozy at an international symposium in Paris
on Thursday (8 January), shortly before US president-elect Barack
Obama enters office.Ads by Google
The French leader had originally called the Paris meeting - "New
World, New Capitalism" - a global "summit," but the idea was
downgraded after few international leaders deigned to attend.
"We'll take our decisions on 2 April in London," he went on,
referring to an upcoming meeting of the G20. "Perhaps the United
States will join us in this change."
Ms Merkel, also in attendance at the conference, echoed the French
president's warning to Washington.
"No country can act alone in this day and age, not even the United
States, however powerful they may be," she said, Deutsche Welle reports.
She said that hopes that out of the economic crisis, governments can
construct a new architecture for managing global capitalism.
"Our response [to the economic crisis] must be more than a few
rules," she said. "The crisis is an opportunity to create an
international architecture of institutions."
Global economic charter
The chancellor said the world needs an "economic council" in the
United Nations as well as the existing body that deals with security
matters.
"It is possible that alongside the [UN] Security Council, we could
also have an economic council," she said, adding that alongside the
UN Charter, an economic sustainability charter "for a long-term
reasonable economy" should be drafted establishing rules for global
financial governance.
"Our response must be more than a few rules," she added. "The crisis
is an opportunity to create an international architecture of
institutions."
The centre-right German leader also warned businesses there was no
returning to laissez-faire approaches by governments once the crisis
has passed.
"Once everything is going better, the financial markets will tell us:
'you politicians don't need to get involved because everything is
working again'," she said, according to the Guardian. "I will stay
firm, we must not repeat the mistakes of the past." [The lessons
of the past are that the politicians caused the cridsis and now have
the gall to suggest that only they know how to solve it. -cs]
Mr Sarkozy warned that capitalism could collapse if it is not
restructured. "Either we re-found capitalism or we destroy it," he
said. "Purely financial capitalism has perverted the logic of
capitalism ...it is amoral. It is a system where the logic of the
market excuses everything."
Former UK prime minister Tony Blair, [ Oh NO! Not him please! He’s
supposed to be bringing peace to the Middle East, or has he forgotten
that? -cs] a co-sponsor of the symposium, echoed the European
leaders: "what is unavoidable in the longer term is a recasting of
the system of international supervision."
"We have mid-20th-century international institutions governing a 21st
century world," he added. "The reform of the IMF, the World Bank, the
financial regulatory system [is] long overdue."
The meeting came as Germany announced it is to inject a further €10
billion into Commerzbank, in return for a 25 percent stake in the
bank, while France offered another €10.5 billion for its six main banks.
========================
INDEPENDENT 9.1.09
Brown goes from boom to bust
Business leaders lose confidence in Labour, Independent poll reveals
By Andrew Grice, Political Editor
The business world is losing confidence in Gordon Brown and Alistair
Darling amid growing evidence that the recession will last much
longer than the Treasury predicted only six weeks ago. A ComRes poll
of leading businessmen for The Independent shows that trust in the
Prime Minister and the Chancellor, which rose after the Government
rescued Britain's banks last autumn, is now on the slide.
Only 28 per cent of respondents said they were confident in the Prime
Minister's ability – down from 42 per cent last October – and only 16
per cent voiced confidence in Mr Darling, down from 25 per cent over
the same period.
The poll results came on another black day for the economy yesterday as:
* The Bank of England cut interest rates to 1.5 per cent, their
lowest ever;
* The Japanese car-maker Nissan cut 1,200 jobs at its Sunderland
plant, the most productive in Europe;
* The Cabinet was warned that the global downturn would be worse than
previously expected;
* Another high street retailer, Sofa Workshop, admitted that it was
on the brink of administration;
* The chief executive of Sainsbury's, Justin King, predicted that
further cuts in interest rates would not pull Britain out of recession;
* A senior Labour MP expressed "deep unease" about the Government's
anti-recession strategy.
The ComRes survey will be seen as a further sign that the "Brown
bounce" is coming to an end. A YouGov poll for today's Sun newspaper
puts the Tories seven points ahead of Labour.
In an historic move yesterday, the Bank of England cut interest rates
by half a percentage point to just 1.5 per cent, their lowest level
since the central bank was founded in 1694. But experts said only
half of borrowers would reap the benefits and millions of savers
would see their incomes fall further. Only four mortgage lenders –
HSBC, Lloyds TSB, Nationwide and the Skipton Building Society – said
they would cut standard variable rates by the full 0.5 per cent.
According to the ComRes poll of 200 business leaders, they trust
David Cameron and George Osborne more than Mr Brown and Mr Darling.
The Tories' "confidence ratings" are 46 per cent and 29 per cent,
respectively. Vince Cable, the Liberal Democrat Treasury spokesman,
enjoys a higher confidence rating (41 per cent) than Mr Darling and
Mr Osborne. But Nick Clegg, the Liberal Democrat leader, trails Mr
Brown and Mr Cameron on just 11 per cent. Labour MPs are increasingly
jittery about whether the Government is pursuing the right strategy.
Frank Field, a former welfare minister, said the temporary cut in VAT
was a "fatuous move" and voiced concern that Mr Darling was already
revising his forecast, made only two months ago, that the economy
would start to grow again in the second half of this year. Speaking
during a cabinet visit to Liverpool, Mr Brown admitted the global
crisis was "increasingly challenging", citing pessimistic forecasts
that the US economy would contract by more than 2 per cent this year.
Mr Darling dismissed speculation that the Government would "print
money" to ease the pain of recession. "Nobody is talking about
printing money," he said. [Actually almost all commentators are -cs]
"There is a debate to be had about what you do to support the economy
as interest rates approach zero, as they are in the US, but for us
that is an entirely hypothetical debate."
========================
ECONOMIC ‘Shorts’ 8.1.09
PRESS ASSOCIATION 9.1.08
Huge slump in manufacturing
Manufacturing's torment deepened after official figures showed output
in the sector slumped 2.9% in November.
The Office for National Statistics (ONS) data were much worse than
expected and represent the ninth consecutive month of decline and the
worst run since 1980.
Activity in the sector slid 3.3% quarter on quarter in the three
months to November.
The figures left annual manufacturing output down 7.4% on a year ago,
a far steeper decline than predicted. Analysts had forecast a month-
on-month of drop of around 1.5%, with an annual decline of about 6%.
Overall industrial production, which also includes the mining and
utility sectors, fell 2.3% between October and November as the fall-
out from the banking crisis hit.
Paul Dales, of Capital Economics, said the figures were "simply
awful" and warned output was likely to continue to fall despite the
weaker pound.
He said: "It can't be long before this forces firms to reduce their
selling prices significantly. It's not a good time to be in industry."
TELEGRAPH
P45 processor swamped as job losses mount
NorthgateArinso, the company that processes a third of the UK’s pay
roll, has seen demand for P45 forms almost double in the last six
months, as the human resources industry adapts to the “staff exodus”
across all sectors.
========================
POLITICS HOME 7.1 09
COMMENTS
++++++++++++++++
Sky News at 10:18
Brown: We've now got to make sure that we help savers
Gordon Brown, Prime Minister
Mr Brown said it is now vital to help savers, and added that he would
be meeting with banks in the next few days to "ensure we move forward".
"What we’ve now got to make sure is that we help savers in the
economy, and that banks are consistent in lending.
"We’ll be meeting with banks in the next few days to ensure we move
forward."
[I send this because it is the supreme example of waffling to no
practical purpose at all except to be seen and heard -cs]
=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-
is good to see that when first mooted most countries refused to attend.
This is a case where politicians, having constructed their own
regulatory systems which failed at their first test, are so arrogant
that they want more power for themselves so that they can have an
other go at fouling it up. It is the failure of their previous
efforts which allowed matters to get out of hand.
Then we have a ‘vote of no confidence’ by the business community on B
rown-Darling (not noticeable in the general public’s opinions in
today’;s YouGov poll)
Finally there are some”shorts” and broadcast comments to round off
the midday situation.
XXXXXXXXXXXXXX CS
========================
EU OBSERVER 9.1.09
Merkel and Sarkozy call for global 'economic security' council
LEIGH PHILLIPS
German Chancellor Angela Merkel and French President Nicholas Sarkozy
have warned the US not to block attempts to build an international
financial regulator, calling for a new economic body similar to the
UN's Security Council.
"I've always in my political life been a supporter of a close
alliance with the United States but let's be clear: in the 21st
century, a single nation can no longer say what we must do or what we
must think," said Mr Sarkozy at an international symposium in Paris
on Thursday (8 January), shortly before US president-elect Barack
Obama enters office.Ads by Google
The French leader had originally called the Paris meeting - "New
World, New Capitalism" - a global "summit," but the idea was
downgraded after few international leaders deigned to attend.
"We'll take our decisions on 2 April in London," he went on,
referring to an upcoming meeting of the G20. "Perhaps the United
States will join us in this change."
Ms Merkel, also in attendance at the conference, echoed the French
president's warning to Washington.
"No country can act alone in this day and age, not even the United
States, however powerful they may be," she said, Deutsche Welle reports.
She said that hopes that out of the economic crisis, governments can
construct a new architecture for managing global capitalism.
"Our response [to the economic crisis] must be more than a few
rules," she said. "The crisis is an opportunity to create an
international architecture of institutions."
Global economic charter
The chancellor said the world needs an "economic council" in the
United Nations as well as the existing body that deals with security
matters.
"It is possible that alongside the [UN] Security Council, we could
also have an economic council," she said, adding that alongside the
UN Charter, an economic sustainability charter "for a long-term
reasonable economy" should be drafted establishing rules for global
financial governance.
"Our response must be more than a few rules," she added. "The crisis
is an opportunity to create an international architecture of
institutions."
The centre-right German leader also warned businesses there was no
returning to laissez-faire approaches by governments once the crisis
has passed.
"Once everything is going better, the financial markets will tell us:
'you politicians don't need to get involved because everything is
working again'," she said, according to the Guardian. "I will stay
firm, we must not repeat the mistakes of the past." [The lessons
of the past are that the politicians caused the cridsis and now have
the gall to suggest that only they know how to solve it. -cs]
Mr Sarkozy warned that capitalism could collapse if it is not
restructured. "Either we re-found capitalism or we destroy it," he
said. "Purely financial capitalism has perverted the logic of
capitalism ...it is amoral. It is a system where the logic of the
market excuses everything."
Former UK prime minister Tony Blair, [ Oh NO! Not him please! He’s
supposed to be bringing peace to the Middle East, or has he forgotten
that? -cs] a co-sponsor of the symposium, echoed the European
leaders: "what is unavoidable in the longer term is a recasting of
the system of international supervision."
"We have mid-20th-century international institutions governing a 21st
century world," he added. "The reform of the IMF, the World Bank, the
financial regulatory system [is] long overdue."
The meeting came as Germany announced it is to inject a further €10
billion into Commerzbank, in return for a 25 percent stake in the
bank, while France offered another €10.5 billion for its six main banks.
========================
INDEPENDENT 9.1.09
Brown goes from boom to bust
Business leaders lose confidence in Labour, Independent poll reveals
By Andrew Grice, Political Editor
The business world is losing confidence in Gordon Brown and Alistair
Darling amid growing evidence that the recession will last much
longer than the Treasury predicted only six weeks ago. A ComRes poll
of leading businessmen for The Independent shows that trust in the
Prime Minister and the Chancellor, which rose after the Government
rescued Britain's banks last autumn, is now on the slide.
Only 28 per cent of respondents said they were confident in the Prime
Minister's ability – down from 42 per cent last October – and only 16
per cent voiced confidence in Mr Darling, down from 25 per cent over
the same period.
The poll results came on another black day for the economy yesterday as:
* The Bank of England cut interest rates to 1.5 per cent, their
lowest ever;
* The Japanese car-maker Nissan cut 1,200 jobs at its Sunderland
plant, the most productive in Europe;
* The Cabinet was warned that the global downturn would be worse than
previously expected;
* Another high street retailer, Sofa Workshop, admitted that it was
on the brink of administration;
* The chief executive of Sainsbury's, Justin King, predicted that
further cuts in interest rates would not pull Britain out of recession;
* A senior Labour MP expressed "deep unease" about the Government's
anti-recession strategy.
The ComRes survey will be seen as a further sign that the "Brown
bounce" is coming to an end. A YouGov poll for today's Sun newspaper
puts the Tories seven points ahead of Labour.
In an historic move yesterday, the Bank of England cut interest rates
by half a percentage point to just 1.5 per cent, their lowest level
since the central bank was founded in 1694. But experts said only
half of borrowers would reap the benefits and millions of savers
would see their incomes fall further. Only four mortgage lenders –
HSBC, Lloyds TSB, Nationwide and the Skipton Building Society – said
they would cut standard variable rates by the full 0.5 per cent.
According to the ComRes poll of 200 business leaders, they trust
David Cameron and George Osborne more than Mr Brown and Mr Darling.
The Tories' "confidence ratings" are 46 per cent and 29 per cent,
respectively. Vince Cable, the Liberal Democrat Treasury spokesman,
enjoys a higher confidence rating (41 per cent) than Mr Darling and
Mr Osborne. But Nick Clegg, the Liberal Democrat leader, trails Mr
Brown and Mr Cameron on just 11 per cent. Labour MPs are increasingly
jittery about whether the Government is pursuing the right strategy.
Frank Field, a former welfare minister, said the temporary cut in VAT
was a "fatuous move" and voiced concern that Mr Darling was already
revising his forecast, made only two months ago, that the economy
would start to grow again in the second half of this year. Speaking
during a cabinet visit to Liverpool, Mr Brown admitted the global
crisis was "increasingly challenging", citing pessimistic forecasts
that the US economy would contract by more than 2 per cent this year.
Mr Darling dismissed speculation that the Government would "print
money" to ease the pain of recession. "Nobody is talking about
printing money," he said. [Actually almost all commentators are -cs]
"There is a debate to be had about what you do to support the economy
as interest rates approach zero, as they are in the US, but for us
that is an entirely hypothetical debate."
========================
ECONOMIC ‘Shorts’ 8.1.09
PRESS ASSOCIATION 9.1.08
Huge slump in manufacturing
Manufacturing's torment deepened after official figures showed output
in the sector slumped 2.9% in November.
The Office for National Statistics (ONS) data were much worse than
expected and represent the ninth consecutive month of decline and the
worst run since 1980.
Activity in the sector slid 3.3% quarter on quarter in the three
months to November.
The figures left annual manufacturing output down 7.4% on a year ago,
a far steeper decline than predicted. Analysts had forecast a month-
on-month of drop of around 1.5%, with an annual decline of about 6%.
Overall industrial production, which also includes the mining and
utility sectors, fell 2.3% between October and November as the fall-
out from the banking crisis hit.
Paul Dales, of Capital Economics, said the figures were "simply
awful" and warned output was likely to continue to fall despite the
weaker pound.
He said: "It can't be long before this forces firms to reduce their
selling prices significantly. It's not a good time to be in industry."
TELEGRAPH
P45 processor swamped as job losses mount
NorthgateArinso, the company that processes a third of the UK’s pay
roll, has seen demand for P45 forms almost double in the last six
months, as the human resources industry adapts to the “staff exodus”
across all sectors.
========================
POLITICS HOME 7.1 09
COMMENTS
++++++++++++++++
Sky News at 10:18
Brown: We've now got to make sure that we help savers
Gordon Brown, Prime Minister
Mr Brown said it is now vital to help savers, and added that he would
be meeting with banks in the next few days to "ensure we move forward".
"What we’ve now got to make sure is that we help savers in the
economy, and that banks are consistent in lending.
"We’ll be meeting with banks in the next few days to ensure we move
forward."
[I send this because it is the supreme example of waffling to no
practical purpose at all except to be seen and heard -cs]
=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-
Posts
