Category Archives: Ethnicity

Headlines of the day II: EconoEuroAsianFukuDup


A very, very long compilation and perhaps the last of its sort, covering a panoply of notable developments in the economic, political, and environmental domains:.

For our first item, via the Press Gazette, proof there’s more than one way to control information:

Journalists seeking accreditation for Brit Awards asked to agree coverage of sponsor Mastercard

A PR company representing MasterCard, who are a major sponsor for tonight’s Brit Awards for pop music, appear to have asked journalists to guarantee coverage of their client as the price of attending.

Before providing two journalists from the Telegraph with accreditation to attend the event House PR has asked them to agree to a number of requests about the coverage they will give it.

They have even gone as far as to draft Twitter messages which they would like the journalists to send out – and asked that they include a mention of the marketing campaign #PricelessSurprises and @MasterCardUK.

And from the Los Angeles Times, What’s in Your Wallet?™:

Capital One says it can show up at cardholders’ homes, workplaces

  • The credit card company’s recent contract update includes terms that sound menacing and creepy.

Ding-dong, Cap One calling.

Credit card issuer Capital One isn’t shy about getting into customers’ faces. The company recently sent a contract update to cardholders that makes clear it can drop by any time it pleases.

The update specifies that “we may contact you in any manner we choose” and that such contacts can include calls, emails, texts, faxes or a “personal visit.”

As if that weren’t creepy enough, Cap One says these visits can be “at your home and at your place of employment.”

The police need a court order to pull off something like that. But Cap One says it has the right to get up close and personal anytime, anywhere.

We switch to a global headline that overshadows pretty much defining the nature of life in the era of neoliberal austerity. From Reuters:

World risks era of slow growth, high unemployment: OECD

Sweeping reforms are urgently needed to boost productivity and lower barriers to trade if the world is to avoid a new era of slow growth and stubbornly high unemployment, the OECD warned on Friday.

In its 2014 study on “Going for Growth”, The Organisation for Economic Co-operation and Development said momentum on reforms had slowed in the aftermath of the global financial crisis, with much of it now piecemeal and incremental.

From CBC News, another consequence of neoliberalism comes back to bites one its leading proponents in the bottom line:

Wal-Mart cuts growth forecast as poor shoppers spend less

  • Food stamp cuts in U.S. eat into same-store sales

Recent U.S. cuts in federal food stamps for the working poor and unemployed has led Wal-Mart Stores Inc to lower the forecast for its full-year profits.

The world’s largest retailer still expects net sales growth of three to five per cent this year.

But less food stamp aid, higher taxes and tighter credit are eroding its grocery sales, as its low-income customers struggle to get by on less.  As many as a fifth of Wal-Mart’s customers rely on food stamps, according to one analyst quoted by Reuters.

From Salon, more of the same, this time from the company founded by the new publisher of the Washington Post:

Worse than Wal-Mart: Amazon’s sick brutality and secret history of ruthlessly intimidating workers

  • You might find your Prime membership morally indefensible after reading these stories about worker mistreatment

Amazon equals Walmart in the use of monitoring technologies to track the minute-by-minute movements and performance of employees and in settings that go beyond the assembly line to include their movement between loading and unloading docks, between packing and unpacking stations, and to and from the miles of shelving at what Amazon calls its “fulfillment centers”—gigantic warehouses where goods ordered by Amazon’s online customers are sent by manufacturers and wholesalers, there to be shelved, packaged, and sent out again to the Amazon customer.

Amazon’s shop-floor processes are an extreme variant of Taylorism that Frederick Winslow Taylor himself, a near century after his death, would have no trouble recognizing. With this twenty-first-century Taylorism, management experts, scientific managers, take the basic workplace tasks at Amazon, such as the movement, shelving, and packaging of goods, and break down these tasks into their subtasks, usually measured in seconds; then rely on time and motion studies to find the fastest way to perform each subtask; and then reassemble the subtasks and make this “one best way” the process that employees must follow.

Amazon is also a truly global corporation in a way that Walmart has never been, and this globalism provides insights into how Amazon responds to workplaces beyond the United States that can follow different rules. In the past three years, the harsh side of Amazon has come to light in the United Kingdom and Germany as well as the United States, and Amazon’s contrasting conduct in America and Britain, on one side, and in Germany, on the other, reveals how the political economy of Germany is employee friendly in a way that those of the other two countries no longer are.

ProPublica covers the sadly predictable:

U.S. Lags Behind World in Temp Worker Protections

‘Permatemping’ cases highlight lack of U.S. protections for temp workers. Other countries limit the length of temp jobs, guarantee equal pay and restrict dangerous work.

Since the 2007-09 recession, temp work has been one of the fastest growing segments of the economy. But a ProPublica investigation into this burgeoning industry over the past year has documented an array of problems. Temps have worked for the same company for as long as 11 years, never getting hired on full-time. Companies have assigned temps to the most dangerous jobs. In several states, data showed that temps are three times more likely than regular workers to suffer amputations on the job. And even some of the country’s largest companies have relied on immigrant labor brokers and fly-by-night temp agencies that have cheated workers out of their wages.

In contrast, countries around the globe have responded to similar abuses by adopting laws to protect the growing number of temps in their workforces. These include limiting the length of temp assignments, guaranteeing equal pay for equal work and restricting companies from hiring temps for hazardous tasks.

Badly Behaving Banksters pay their dues, via TheLocal.ch:

Credit Suisse to pay $196m US fine

Swiss banking giant Credit Suisse has admitted it violated US securities laws and will pay $196 million to settle the charges, the Securities and Exchange Commission said Friday.

The SEC action came as the Department of Justice investigates Credit Suisse for allegedly helping US citizens illegally avoid taxes.

The SEC said that Credit Suisse Group violated laws by providing cross-border brokerage and investment advisory services to US clients without first registering with the SEC.

According to the SEC, the Zurich-based global bank began conducting the unregistered services as early as 2002 and had collected about $82 million in fees on the accounts before completely exiting the business in mid-2013.

Belated action from United Press International:

California unveils legislation to help deal with drought

California officials Wednesday unveiled a $687.4 million plan to help the state cope with its severe drought.

Gov. Jerry Brown and legislative leaders said the proposal would provide funds for direct relief for farm workers who will likely be out of a job for an extended period as growers cut back on their planting.

In addition, the legislation provides funding for water-conservation projects and a public-awareness campaign to remind Californians it is shaping up to be a long, dry summer.

The Christian Science Monitor adds context:

California drought: Farmers cut back sharply, affecting jobs and food supply

With drought limiting water deliveries from northern California and the price of irrigation skyrocketing, farmers’ fields lie fallow and the politicized debate over solutions rages.

And from the U.S. Drought Monitor, the latest image of California’s water crisis, with severity increasing with color darkness [the dark brown being the worst, “Exceptional Drought”]:

BLOG Drought

Al Jazeera America campaigns:

Push to boost wages at big LA hotels

  • City council to consider proposal to raise hourly rate to $15.37, which would be among nation’s highest if passed

Three Los Angeles City Council members have launched a bid to nearly double the minimum wage for hotel workers to $15.37 an hour, among the highest proposed minimums nationwide.

The living wage proposal, applicable to about 11,000 workers employed by Los Angeles hotels with more than 100 rooms, would help to lift employees out of poverty and benefit the city economy, proposal supporters said on Tuesday when the proposal was introduced.

California’s minimum wage is $8 an hour with a $1 bump coming in July. It will reach $10 in 2016. Cities and counties can set a higher minimum wage. In San Francisco, for example, the minimum is $10.74 with annual cost of living increases. Nationwide, a number of cities have adopted or are considering minimum wage proposals, including a citywide $15-per-hour rate urged by Seattle Mayor Ed Murray.

Meanwhile, there’s another crisis in California, reported by the Los Angeles Times:

Many L.A. Unified school libraries, lacking staff, are forced to shut

Budget cuts leave about half of L.A. Unified’s elementary and middle schools without librarians, and thousands of students without books.

About half of the 600 elementary and middle school libraries are without librarians or aides, denying tens of thousands of students regular access to nearly $100 million worth of books, according to district data.

The crisis has exacerbated educational inequalities across the nation’s second-largest system, as some campuses receive extra money for library staff and others don’t. It has also sparked a prolonged labor conflict with the California School Employees Assn., which represents library aides.

Cashing in the Mile High City’s state with the London Telegraph:

Bumper cannabis sales in Colorado form billion-dollar industry

  • In America’s first cannabis-legal state sales are surging far ahead of predictions, bringing huge additional tax revenue

Cannabis is likely to become an annual billion-dollar legal industry in the sate of Colorado by next year after officials suggested greater volumes of the drug are being sold than anticipated.

Colorado was the first state in the US to licence and tax sales of the drug for recreational use, allowing dozens of shops to open for business on Jan 1, 2014.

In the lead up to legalisation it was estimated that sales would reach $395 million in the 2014/2015 financial year.

But in its first assessment since the New Year Governor John Hickenlooper’s budget office has dramatically increased that to $612 million.

When the $345 million in estimated sales of the drug to people with medical conditions is added that means a total of almost $1 billion.

The Hill concedes the despicably considered:

Obama drops proposal to cut Social Security from his budget

Yielding to pressure from congressional Democrats, President Obama is abandoning a proposed cut to Social Security benefits in his election-year budget.

The president’s budget request for fiscal 2015, which is due out March 4, will not call for a switch to a new formula that would limit cost-of-living increases in the entitlement program, the White House said Thursday.

“This year the administration is returning to a more traditional budget presentation that is focused on achieving the president’s vision for the best path to create growth and opportunity for all Americans, and the investments needed to meet that vision,” a White House official said.

Obama last year proposed the new formula for calculating benefits as an overture to Republicans toward a “grand bargain” on the debt.

Barry O continues his neoliberal trade crusade with BBC News:

Obama champions controversial North America-Asia trade deal

US President Barack Obama has vowed to expand trade agreements between North America and Asia, despite concerns within his own political party.

Ending a day of talks with the leaders of Mexico and Canada, Mr Obama said they must keep up their “competitive advantage”.

The three countries are negotiating a major Pacific trade deal.

But Mr Obama’s Democratic allies oppose the agreement amid concerns that American jobs could be lost.

Republic Report adds significant context:

Obama Admin’s TPP Trade Officials Received Hefty Bonuses From Big Banks

Officials tapped by the Obama administration to lead the Trans-Pacific Partnership trade negotiations have received multimillion dollar bonuses from CitiGroup and Bank of America, financial disclosures obtained by Republic Report show.

Stefan Selig, a Bank of America investment banker nominated to become the Under Secretary for International Trade at the Department of Commerce, received more than $9 million in bonus pay as he was nominated to join the administration in November. The bonus pay came in addition to the $5.1 million in incentive pay awarded to Selig last year.

Michael Froman, the current U.S. Trade Representative, received over $4 million as part of multiple exit payments when he left CitiGroup to join the Obama administration. Froman told Senate Finance Committee members last summer that he donated approximately 75 percent of the $2.25 million bonus he received for his work in 2008 to charity. CitiGroup also gave Froman a $2 million payment in connection to his holdings in two investment funds, which was awarded “in recognition of [Froman’s] service to Citi in various capacities since 1999.”

Getting together with Kyodo News:

Crucial TPP ministerial meeting begins in Singapore

Ministers from the 12 countries involved in the envisioned Trans-Pacific Partnership free trade accord began talks in Singapore on Saturday seeking to achieve the challenging goal of reaching a broad agreement after missing an end-of-2013 deadline.

But the momentum for an early conclusion of the ambitious U.S.-led trade initiative has been overshadowed by U.S. frustration over Japan’s reluctance to open up its agricultural market, as well as Malaysian and Vietnamese opposition to reforming state-owned firms.

During a five-day working-level meeting through Friday, each country held bilateral meetings on the sidelines of plenary sessions to bridge gaps over outstanding issues, but officials made little progress on thorny issues.

The Japan Times covers amen choristers:

Don’t fold on TPP tariffs: senators

A bipartisan group of senators has sent a letter to the U.S. Trade Representative Michael Froman urging the Obama administration not to make tariff concessions to Japan during the Trans-Pacific Partnership trade talks.

The letter, dated Saturday and signed by 15 senators led by Michael Bennett, a Colorado Democrat, and Charles Grassley, an Iowa Republican, “asked for assurances that the TPP negotiations will not be concluded until Japan agrees to eliminate tariff and non-tariff trade barriers for agricultural products,” the National Pork Producers Council said the same day.

Tokyo and Washington are jousting over Japanese duties on five “sacred” farm product categories — rice, beef and pork, wheat, dairy and sugar — that Tokyo wants to retain under the TPP, which is based on the principle of abolishing all tariffs.

The Obamanations continue via The Guardian:

Obama begins Mexico summit with orders lowering trade barriers

  • Before meeting Mexican and Canadian heads of state, president bypasses Congress by signing trade liberalisation orders

Barack Obama begins a North American summit in Mexico on Wednesday with a gesture of defiance toward allies in Congress who are hampering his ability to negotiate controversial trade liberalisation agreements.

In the latest in a series of so-called executive actions promised in his state of the union address, the US president will sign new measures to speed up imports and exports for businesses by reducing bureaucratic barriers.

And from one Canadian province, a modest resistance to the tenor of the times, via CBC News:

Quebec proposes rules to prevent hostile takeovers

  • Budget sets out economic agenda that includes government taking stakes in mining sector

Quebec’s Parti Québécois government proposed measures to shield businesses headquartered in Quebec from hostile takeovers in a budget tabled Thursday.

It was one in a series of proposals geared at keeping Quebec business in the province that also included plans for the government to buy direct stakes in oil and mining companies with new finds in Quebec.

The proposal comes at a time when the minority government is expected to call a provincial election and may not last long enough to pass through the legislature.

From MercoPress, deserved anxiety:

IMF concerned with risks in emerging markets from pulling back stimulus too quickly

Advanced economies, including the United States, must avoid pulling back stimulus too quickly given the weak global economic recovery and recent market volatility highlights key risks in some emerging markets, the International Monetary Fund said on Wednesday.

The IMF said there was scope for better coordination of central bank exit plans, something many emerging market policymakers have called for as the Federal Reserve has begun to wind back its US support for the economy.

In a briefing note prepared for upcoming Group of 20 meetings, IMF staff said the outlook for global growth was similar to its last assessment in January, with growth of about 3.75% seen for this year and 4.0% in 2015.

More from China Daily:

Growth in emerging economies to decline: IMF

Anticipated growth in emerging surplus economies, including China’s, is “expected to decline” and output gaps in advanced economies remain negative, the International Monetary Fund said in a report released ahead of this weekend’s G-20 finance meeting in Australia.

Global recovery from the recession has been “disappointingly weak,” and G-20 countries are still producing “far below” the longer-term trend, the report said.

While global economic activity picked up in the second half of 2013 due to strengthening advanced economies, trade volumes remain below trend, decline in unemployment and strong private demand “did not materialize,” the IMF said Wednesday.

Against the backdrop of slower-than-anticipated global growth, emerging economies are experiencing bouts of volatility in the financial sector, influenced in part by weakening sentiment toward emerging economies, the IMF said.

On to Europe with another red flag from BBC News:

Eurozone business growth slowed in February, PMI study suggests

Business growth in the eurozone eased this month but the bloc’s economy continued to expand at a “robust pace”, a closely watched survey suggests.

The latest Markit eurozone composite purchasing managers’ index (PMI) dipped to 52.7 from 52.9 in January. A figure above 50 indicates expansion.

Within the bloc, Germany and France continued to see contrasting fortunes. German companies saw strong growth, but activity among French firms declined for the fourth month in a row.

Another from Deutsche Welle:

Eurozone January inflation too tame to please ECB

In January, price increases in the eurozone remained well below the rate desired by the European Central Bank. The timid inflation rate for the month points to a lackluster recovery in the recession-hit currency area.

Annual inflation in the 18-nation eurozone remained tame in January, recording 0.8 percent higher than in the previous month of December, according to Monday.

In the wider 28-nation European Union, inflation fell to 0.9 percent against 1 percent at the end of last year, Eurostat said.

Compared with January 2013, however, the rates for both areas were significantly lower, coming down from 2 percent and 2.1 percent annual inflation respectively a year ago.

And from Eurostat [PDF], the graphic that tells the deeper story [click to enlarge]:

BLOG Inflate

Another indicator of creepy europoverty from The Guardian [obesity rates rise as poverty increases, with the rates of obesity highest in Europe’s unfortunately named, crisis wracked PIGS]:

Overweight children could become new norm in Europe, says WHO

As many as a third of 11-year-olds in some countries are overweight, as well as two-thirds of UK’s adult population

Being overweight is in danger of becoming the new norm for children as well as adults in Europe, the World Health Organisation warns, issuing figures showing that up to a third of 11-year-olds across the region are too heavy.

According to the EU figures, Greece has the highest proportion of overweight 11-year-olds (33%), followed by Portugal (32%), Ireland and Spain (both 30%).

More anxieties from EurActiv:

Europe tries to reverse drift towards de-industrialisation

After a lost decade, Europe is trying to reverse a decline in manufacturing which has brought industrial output to a standstill. The issue will reach the EU’s top decision-making body in March when European leaders meet for their quarterly summit in Brussels.

Over the past few years, the European Commission has been the most vocal EU institution campaigning for the continent’s industrial revival, positioning itself as a driver of competitiveness and job creation.

Within the EU executive, the commissioner for enterprise, Antonio Tajani, has emerged as the winner of an internal debate opposing supporters of industry to environmentalists, whose policies were blamed for hampering the economy.

Another warning from New Europe:

North-South gap weakens employment and social cohesion

  • The latest European Vacancy Monitor revealed a growing North-South divide

A widening gap in job opportunities between Northern and Southern EU countries is threatening the employment and social cohesion of the EU.

On 24 February, the European Commission announced the latest issue of the European Vacancy Monitor (EVM), which indicated a shortage in labour supply in countries such as Austria, Denmark Sweden, Estonia and Latvia, and an increased competition for jobs in countries such as Greece, Slovakia and Spain.

László Andor, European Commissioner for Employment, Social Affairs and Inclusion, said that the Northern-Southern employment gap indicates Eurozone’s employment and social asymmetries. “Diverging job prospects in Northern and Southern Europe underline mismatches in the European labour market, linked also to Eurozone asymmetries. Labour mobility might help to reduce those imbalances. Tools supporting workers mobility within the European labour market such as EURES are available to help job seekers find job opportunities,” Commissioner Andor said.

A shift in sentiment from EUobserver:

Poll: Socialists to top EU elections, boost for far-right

Europe’s socialists are set to top the polls in May’s European elections, according to the first pan-EU election forecast.

The projections, released by Pollwatch Europe on Tuesday (19 February), give the parliament’s centre-left group 221 out of 751 seats on 29 percent of the vote, up from the 194 seats it currently holds.

For their part, the centre-right EPP would drop to 202 seats from the 274 it currently holds on 27 percent of the vote across the bloc. If correct, it would be the first victory for the Socialists since 1994.

EurActiv takes a hit:

Financiers snipe at draft EU law against money laundering

Representatives of financial transactions services have criticised harshly the EU’s draft legislation to fight money laundering which will go through its first parliamentary vote today (20 February) and enjoys the support of the anti-corruption champion, Transparency International.

The European Commission proposal, tabled in February last year, is aimed at tightening EU rules on financial transactions in a bid to step up the fight against money laundering and terrorism funding.

One of the main elements of the proposal is the introduction of a mechanism to name the beneficial owners of companies, in order to prevent the illicit activities which are often carried out under anonymity.

The proposal also includes requirements to increase customer due diligence and tightening the rules obliging financial companies to identify their clients and the legitimacy of their activities.

Europe Online pulls back:

Iceland moves to withdraw EU application

Iceland’s centre-right government is to seek parliamentary approval to withdraw its application to join the European Union, opting not to restart accession talks that were put on ice a year ago.

A bill proposing the withdrawal was sent to parliament late Friday and was due to be debated next week, a Foreign Ministry spokesperson told dpa on Saturday.

The move came after the parliamentary caucuses of the ruling parties – the centrist Progressive Party and the conservative Independence Party – voted Friday to withdraw the application.

In comments on the proposal quoted by online news site Visir.is, the government said it “did not have a support base” to complete the accession process.

Off to Britain, with a major policy reversal of the post-equine escape animal enclosure locking sort from Sky News:

Cameron: UK Ready To Fund New Flood Defences

  • David Cameron tells Sky News he is ready to open the Government’s “chequebook” to build new flood defences.

David Cameron has suggested that his “money is no object” pledge on the flood relief effort could be extended to cover the costs of new defences.

In an exclusive interview with Sky News, the Prime Minister said he was ready to take out his “chequebook” following a major review of what went wrong and how it could have been prevented.

“You’ve got to look at where the floods have been this time, compared with 2007, compared with 2003,” he said.

From the London Telegraph, the usual result:

Wages rise but still below inflation

  • Pay increase and a fall in unemployment a boost for the Bank of England

Wages are still failing to keep up with the rising cost of living despite climbing at a faster rate in the final quarter of last year.

Average weekly pay including bonuses edged up 1.1pc to £478 in the three months to the end of December, up from the 0.9pc rate of increase in the three months to the end of November, according to figures from the Office for National Statistics.

However, the Government’s preferred inflation measure, the consumer prices index (CPI), currently stands at 1.9pc – below the 2pc target – despite a surprise 0.1 point fall on Tuesday.

Another austerian consequence from The Observer:

Cash-strapped older women are forced back to work

  • Older women taking on more jobs, study finds, but pay gap between the sexes is growing wider

More than three-quarters of the rise in female employment, which hit record levels last December, is the result of women aged over 50 taking on jobs, a study has found.

A report by the TUC to be released this week has established that 2,278,000 more women are now working than in 1992, and that 1,645,000 (72%) of these are aged 50 or over.

Last week the government welcomed news that more women were in work, with the proportion – 67.2% – the highest since records began 43 years ago. The TUC study pinpoints how many older women have felt the need to return to work or to continue working until later in life, for a combination of reasons. These include the rising cost of living, the increase in the state pension age and the fall in value of workplace pensions.

While much of the rise in female employment is due to the greater number of over-50s in the population, the rate of employment has risen too. In 1992, 50.7% of women in the 50-64 age group were economically “inactive”, compared with 36.8% today.

The Observer follows hunger in posh places:

‘Most desirable’ district in the country has three food banks

  • In wealthy towns, families hit by falling incomes and benefit cuts are increasingly being forced to rely on charity handouts

Volunteers have sounded the alarm over a growing reliance on food banks in one of the richest areas in Britain.

Weekly earnings in Hart in Hampshire, recently named as the most desirable district in the country for quality of life, are a third higher than the national average. But the district also has three food banks, which have given out more than 1,000 emergency food parcels in the past six months.

Anti-poverty campaigners say that, even in wealthy areas such as Hart, benefit changes and low wages are creating growing pockets of desperate need.

EurActiv readies the trial:

Britain sets out new test to limit EU migrant benefits

Britain laid out new rules on Wednesday (19 February) designed to limit the access that migrants from other European Union states have to the country’s welfare system.

British Prime Minister David Cameron is seeking to curb immigration into Britain in an effort to quell concerns about migrants entering the country to claim benefits, referred to as ‘benefits tourism’. The move may also stop voters defecting to the anti-immigration UK Independence Party.

The new test, due to come into effect on March 1, sets a minimum income threshold to determine whether a migrant working in the UK should have access to the wider suite of benefits that comes with being classed as a worker rather than a jobseeker.

But the Usual Suspects are doing quite well, thankee kindly. Via Reuters, a case of Banksters Behaving Brazenly:

HSBC to announce bonuses totaling $4 billion: report

HSBC will announce staff bonuses totaling just under 2.4 billion pounds ($4 billion) globally for 2013 and is expected to report a significant rise in pretax profit, Sky News reported on its website on Saturday without citing its sources.

Referring to an unnamed source close to the bank, Sky also said Chief Executive Stuart Gulliver will receive a 1.8 million pound bonus as part of an overall pay deal worth more than 7 million pounds, though this would be less than his previous year pay deal of 7.4 million.

Europe’s biggest bank is expected to announce the size of its bonus pool on Monday along with its yearly results. Bonus payments remain a sensitive issue as many Britons still blame banks for the 2008 financial crisis, after which the state was forced to bail out RBS and Lloyds.

On to Scandinavia and some hard times intolerance from TheLocal.no:

Three men charged for racist attack in Norway

Three men in their twenties have been charged for assaulting a black man in northern Norway, allegedly telling him “we do not like immigrants in Verdal” as they hit him on the back with a snow shovel.

Jacob Kuteh, who was born in Liberia, was hospitalized after the  attack, which took place on Saturday night.

Kuteh claimed the men hit him, strangled him and kicked him in the head, before hitting him with a snow shovel, all the while telling him, “we hate you. We’ll take you.”

“I’ve lived here for ten years and have never experienced anything like this,” Kuteh told VG newspaper. “I have kids that go to school here and it’s no fun at all that someone has suddenly come and told me that they do not like the colour of my skin.”

Sweden next, with a demographic note from TheLocal.se:

Immigrants behind boom in Sweden’s population

The population of Sweden saw the biggest yearly increase in 70 years last year, according to new statistics, thanks largely to the almost 120,000 immigrants who arrived throughout the year.

Sweden’s population on the last day of 2013 was 9,644,864 – a 0.93 percent hike from 2012. The total increase was the largest since 1946, and statisticians at Statistics Sweden (Statistiska centralbyrån – SCB) marked it down to a record-high level of immigration.

In total, 115,845 immigrants arrived in Sweden in 2013, many from Syria and Somalia. The figure is the highest Sweden has ever had in a one-year period. The men outnumbered the women by around 5,000.

TheLocal.se again, this time with a contrarian finding:

Romanian beggars cleared in court

A district court in central Sweden has cleared three Romanian nationals of begging following a previous indictment, saying they did not need the permission of the police to beg.

The trio had previously been prosecuted for begging on the streets of Södertälje, Stockholm county, in January. In court it was debated whether the three individuals had broken any local laws regarding the collection of money.

Local newspaper Länstidningen said that the case was unique as the issue has never been tested before by law.

According to local Södertälje regulations police permission is required for the “collection of money in boxes or similar.” In court the example of street musicians, who don’t require police permission, was raised and comparisons were made between the beggars and street performers.

And more academic austerity ahead with TheLocal.se:

Borg to cut student grants and pension perks

With autumn elections on the horizon, Sweden’s Finance Minister Anders Borg said his government would cut student grants and make alcohol and tobacco more expensive, part of a budget plan to fill Sweden’s coffers.

“You shouldn’t stoke the fire in good times,” Borg told reporters in Stockholm on Thursday as he mapped out the centre-right government coalition’s budget prognosis for the near- and medium term. He said he no longer saw the need to use stimulus measures to keep Sweden’s economy buoyant, and argued that it was time to strengthen public finances.

“Sweden needs proper levees in place before the next crisis,” Borg said, adding that Sweden’s reliance on liquidity and its high household indebtedness was “a big element of uncertainty in the Swedish economy”.

Off to the Netherlands with stagnation from DutchNews.nl:

House prices stabilise but building permits reach 60-year low

House prices were down just 0.5 percent in January, compared with January 2013, showing house prices have now stabilised, the national statistics office CBS says on Friday.

Month on month, there was a 0.4% rise in house prices.

House prices are now in line with 11 years ago, after reaching a peak in August 2008, the CBS says. Houses have gone down an average of 20% in price since then.

At the same time, the CBS says the number of permits for new houses reached a record low of 26,000 in 2013. This is 30% down on 2012 and 70% down on 2008. Permits for new housing have not been so low since 1953, the CBS says.

Germany next, and a pain in the wallet from TheLocal.de:

Wages fall for first time since crash

Wages in Germany fell by an average of 0.2 percent last year, the first drop since the 2009 economic crisis, the federal statistics office said on Thursday.

The calculation was in terms of the real buying power of wages, allowing for inflation, and the fall bodes ill for efforts to fire up domestic consumption to boost recovery in Europe’s biggest economy.

Germany has relied mainly on exports to drive growth.

Citing preliminary results, the statistics office said that nominal wages in 2013 were up 1.3 percent from the previous year, but that consumer prices rose faster, at 1.5 percent, over the same period.

“One reason for the decline in real wages in 2013 was a decline in bonuses which are frequently performance-related,” said a statement by the Wiesbaden-based agency which is known as Destatis.

Deutsche Welle tracks a booming business:

Arms manufacturer Rheinmetall logs lower profit but higher orders

Germany’s biggest arms maker, Rheinmetall, has defied weak defense spending in Europe in 2013 to surprise investors with higher-than-expected earnings. A massive order backlog for 2014 boosted company shares further.
Panzer

Last year, Rheinmetall’s performance had been stable, with consolidated sales of 4.6 billion euros ($6.3 billion). Before special items, Rheinmettal also boasted an operating profit of 213 million euros, the German defense and automotive industry conglomerate announced as it released figures for its 2013 fiscal year on Wednesday.

Rheinmetall’s 2013 operating result was about 55 million euros lower than in 2012, but higher than forecast for 2013, the Düsseldorf-based company announced. The decrease was the result of restructuring measures to the tune of 86 million euros, as well as a further 15 million euros in expenses for strategic portfolio measures, Rheinmetall aannounced.

Annual sales also fell in 2013, however, with the 2 percent decline mainly being a result of unfavorable exchange rates for the euro.

And a point we’ve made before, from EUbusiness:

Germany has ‘unfair’ edge with low salaries: minister

Germany’s low salaries have given Europe’s biggest economy an “unfair” competitive advantage over its partners and must be corrected, a junior German minister has said.

Michael Roth, state secretary for European Affairs, was commenting on Germany’s record trade surplus, which surged to nearly 200 billion euros ($270 billion) last year, and has seen Berlin placed under EU scrutiny.

He said in an interview with AFP Thursday that imbalances had appeared among EU members and there “was a duty not only for countries running a deficit but also for Germany to reduce them”.

The comments by the Social Democrat politician differ from the stance of Chancellor Angela Merkel’s conservatives, who disagree that Berlin has a problem with its trade surplus despite it consistently exceeding EU limits.

France next, and a uniquely Gallic form of action from Europe Online:

New “boss-napping” incident at a French factory

Workers at a French factory were holding three managers captive for a second day Thursday, after its owners announced that it would be shut down.

The managing director, technical director and financial director of Depalor, a company that produces wood panels in the north-eastern Lorraine region, were being held in an office building.

A trade union representative told France Info radio that the three were barred from leaving until the CEO of parent company Swiss Krono Group came to discuss redundancy terms for the 142 workers.

The incident is the second case of “boss-napping” in France within two months.

And the hidden disclosed, via TheLocal.ch:

France says thousands declare Swiss accounts

The French government says that nearly 16,000 people have declared funds hidden abroad after Switzerland curtailed its vaunted banking secrecy.

France’s Budget Minister Bernard Cazeneuve said on Wednesday that the government was on track to collect 230 million euros ($316 million) from only 2,621 of the cases.

He told the finance committee of the lower house National Assembly that 80 percent of the newly declared accounts were from Switzerland, which has curtailed its banking secrecy traditions under international pressure.

France 24 ponies up:

French government, China’s Dongfeng to invest in Peugeot

Peugeot Citroën, which has been manufacturing automobiles in France for more than 100 years, has agreed to a deal that will see both the French government and Chinese carmaker Dongfeng buy large stakes in the struggling company.

Peugeot announced on Wednesday that its board had approved the agreement, in which the French government and Dongfeng will each invest €800 million ($1.1 billion) in exchange for 14 percent stakes in the company.

The move marks a huge transition for the carmaker, which until now has been controlled by the Peugeot family. Under the agreement, the family’s 25 percent stake and 38 percent of voting rights will now be reduced to equal the French government and Dongfeng’s stakes in the company.

On to Switzerland and a case of resigned to not being resigned from TheLocal.ch:

German professor quits over Swiss ‘xenophobia’

A German professor at the Federal Institute for Technology in Zurich (ETH) has made a splash in the media for quitting his job over the Swiss vote to limit immigration.

Christopher Höcker, who had taught at the university’s Institute for the History and Theory of Architecture since 1999, told his students this week he was stepping down.

The decision by Swiss voters in a February 9th referendum to narrowly support quotas for immigrants from the European Union was the last straw for the 57-year-old German citizen.

“I do not want more exposure to the increasingly xenophobic climate in Switzerland,” Höcker told 20 Minuten newspaper.

TheLocal.ch delays:

EU not compromising but gives Switzerland time

The EU said Thursday it cannot compromise on the principle of freedom of movement but will allow Switzerland time to find a solution after a controversial referendum approved immigration curbs.

“It is a serious . . . not a minor change which we have to assess calmly,” chief operating officer of the EU external affairs service David O’Sullivan said of the referendum outcome.

“Freedom of movement is a fundamental core value” of the European Union and as such is not open for negotiation, O’Sullivan said after talks with Yves Rossier, his counterpart in the Swiss department of foreign affairs.

On to Spain and onto the streets with United Press International:

Spanish marchers protest job cuts, law against protesting

Demonstrators in at least seven Spanish cities have called for an end to a “gagging law” that set large fines for protest marches.

The protesters were joined by factory workers due to be laid off and groups seeking to preserve access to universal healthcare, Think Spain reported. Monday.

The anti-demonstration law, which affects even peaceful protests, calls for fines of $41,000 to $823,000 for anyone staging the marches.

The protests, which drew thousands of supporters in each of the cities, also want the Spanish Parliament to reject a proposed law restricting abortions.

From Spanish Property Insight, the one group of immigrants eagerly sought:

First Chinese property investors get their “Golden Visas”

Chinese nationals investing in property in Spain are starting to get their residency visas, according to Spanish press reports.

A businesswoman from Shanghai who spent €520,000 on flats in Barcelona and Madrid has become one of the first Chinese nationals to get a Spanish residency via the new “Golden Visa” law that offers Spanish residency permits to non-EU nationals in return for real estate investments of €500,000 or more.

She invested in Spanish property via the Emigration Centre at Shanghai International Studies University (SISU), which has a programme to help Chinese nationals invest in residency schemes abroad.

On to Lisbon and yet another austerian misery demanded from the Portugal News:

EU calls for Portugal wages to fall by a further 5%

The European Commission has argued that Portugal needs a further 5% average reduction in wages to ensure a balance between the unemployment rate and wage rates.

Portugal’s government responded by saying that it continued to disagree with that view, arguing that recent increases in exports show that wage adjustment in the private sector has been “sufficient”.

In its report on the 10th regular review of Portugal’s economic and financial assistance programme, released on Thursday, the European Union executive states that “Portugal needs wage moderation sufficient to absorb unemployment” and outlines some estimates.

According to the commission’s calculations, “a reduction of one percentage point in the unemployment rate demands a reduction in real wages of about 2.4%” – which it said means real wages falling 5% if the gap is to be closed between the current jobless rate and that at which wage levels will not lead to new increases in unemployment.

Deutsche Welle takes us to Italy and the latest regime:

Italy swears in its youngest-ever prime minister, Matteo Renzi

  • Italy’s new prime minister, Matteo Renzi, and his cabinet have been sworn into office at a ceremony in Rome. The new government is the youngest in the recent Italian history.

The swearing-in of the prime minister took place at a ceremony in Rome under the auspices of Napolitano.

At 39, Renzi is the youngest-ever person to take the reins in the eurozone’s third largest economy, and his cabinet, with an average age of 47.8 years, is also the most youthful in recent Italian history.

As a result, the government is facing widespread skepticism as to whether it has the political maturity to cope with the challenges currently facing the country.

And the road’s already getting bumpy, via TheLocal.it:

Grillo declares ‘war’ as Berlusconi backs Renzi

Five Star Movement leader Beppe Grillo has lashed out at Matteo Renzi, saying the prime minister designate is “not credible” and declaring a political “war” against the country’s prospective new leader.

Since being nominated for the premiership on Monday, Renzi has been meeting with party leaders to gain the political backing needed to push urgent reforms through parliament.

While some meetings, such as one with Go Italy (Forza Italia) leader Silvio Berlusconi, have gone relatively well, the same cannot be said of Renzi’s meeting with Grillo.

Visible to all by a live internet stream, their meeting appeared to be a dialogue of the deaf, with neither side appearing interested in the other.

ANSA raises an alarm:

Italian recovery slow, growth stalling, say industrialists

  • Urgent need to address competitiveness, demand and bank credit

Italy’s economic recovery is extremely slow and recent data shows that industrial production in the eurozone’s third-largest economy is close to stalling, according to a new report released on Wednesday by Italian employers’ association Confindustria.

“(The recovery is) moving ahead very slowly, almost at a standstill”, Confindustria’s economists said. “These are the harsh facts of the Italian economy”, with employment and industrial production data “confirming that the pick up from the extremely deep hole that has been dug by the recession is extremely slow”.

Fourth-quarter gross domestic product data, which showed the economy expanded 0.1% in the last three months of 2013, was “lower that expected” and “confirms the extreme weakness of the recovery”, according to the report drawn up by Confindustria’s economic research unit which is headed by economist Luca Paolazzi.

And another call for an increasingly mooted move from ANSA:

Re-open cannabis debate, hurt mafia, says ex-health minister

  • Ban on marijuana doesn’t work, says top oncologist Veronesi

It’s time that Italy re-opened the debate on liberalizing marijuana use, to cut out drug traffickers, permit its medical use, while acknowledging the current ban doesn’t work, former health minister Umberto Veronesi said Thursday.

In an opinion article published in La Repubblica newspaper, Veronesi, a prominent oncologist, said that liberalizing the drug would take away power from the mafia and other criminals who now profit greatly from its cultivation and sale.

It would make marijuana more safe for users, including those who need it for pain relief, added Veronesi, whose comments come amid debate about Italy’s illegal-drug laws.

And from New Europe, departures from Bucharest:

Romanian ministers resign

Romania is in the throws of a political crisis after two ministers from the junior party in the ruling coalition resigned.

Finance Minister Daniel Chitoiu and Economy Minister Andrei Gerea, both Liberal Party members, stepped down on Wednesday after Prime Minister Victor Ponta refused to accept the Liberals’ nomination of Klaus Johannis, the popular mayor of Sibiu city, as interior minister. The position, now vacant, was recently held by another Liberal Party official.

Ponta, leader of the Social Democratic Party, will temporarily head the finance portfolio. He named a party colleague as interim economy minister.

After the jump, the latest Greek debacles, unmentionable anxieties in Russia, the latest from Kyiv, an African GMO invasion, the latest turmoil from Latin America, India swings to the right, Thai troubles, worries down under, Chinese alarm bells, Abenomics on the rocks, nucelear woes in the U.S.A., Big Ag hits a roadblock, fracking woes go global, a Spanish snail invasion, and a globl arming cooler. . .plus Fukushimapocalypse Now! Continue reading

Headlines of the day II: EconoPoliEcoFukunews


We begin today’s collection of news political, economic, environmental, and nuclear — including the latest chapter of Fukushimapocalypse Now! — with a take on the merger de jour from Kevin Siers of the Charlotte Observer:

BLOG Siers

From the Washington Post, consequences of enserfing students:

Student debt may hurt housing recovery by hampering first-time buyers

The growing student loan burden carried by millions of Americans threatens to undermine the housing recovery’s momentum by discouraging, or even blocking, a generation of potential buyers from purchasing their first homes.

Recent improvements in the housing market have been fueled largely by investors who snapped up homes in the past few years. But that demand is waning as prices climb and mortgage rates rise. An analysis by the Mortgage Bankers Association found that loan applications for home purchases have slipped nearly 20 percent in the past four months compared with the same period a year earlier.

First-time buyers, the bedrock of the housing market, are not stepping up to fill the void. They have accounted for nearly a third of home purchases over the past year, well below the historical norm, industry figures show. The trend has alarmed some housing experts, who suspect that student loan debt is partly to blame. That debt has tripled from a decade earlier, to more than $1 trillion, while wages for young college graduates have dropped.

A decline from the Los Angeles Times:

Builder confidence down sharply in February

Builder confidence in the new home market plunged in February, a combination of debilitating weather and few lots available for construction, a trade group said.

The National Assn. of Home Builders/Wells Fargo Housing Market Index tumbled 10 points from January to a seasonally adjusted level of 46, the largest drop since the index launched in 1985. A level higher than 50 means more builders see the market for new, single-family homes as good rather than poor.

From the Los Angeles Times again, another decline:

Coca-Cola announces $1 billion in cuts as demand, profit slide

Coca-Cola Co., faced with tepid demand and a drop in fourth-quarter earnings, said Tuesday it was initiating a $1-billion cost-cutting campaign to improve profitability.

The world’s largest beverage company said Tuesday that profit fell 8.4% in the fourth quarter of 2013 compared with the same period a year earlier.

Investors were selling on the news. Shares of the Atlanta company were down $1.46, or nearly 4%, to $37.47 at 9 a.m. PST.

Another sort of decline from the Associated Press:

After UAW defeat, can GOP fulfill promise of jobs?

Republicans fighting a yearslong unionization effort at the Volkswagen plant in Tennessee painted a grim picture in the days leading up to last week’s vote. They said if Chattanooga employees joined the United Auto Workers, jobs would go elsewhere and incentives for the company would disappear.

Now that workers have rejected the UAW in a close vote, attention turns to whether the GOP can fulfill its promises that keeping the union out means more jobs will come rolling in, the next great chapter in the flourishing of foreign auto makers in the South.

Regardless of what political consequences, if any, Republicans would face if that fails to happen, the Volkswagen vote established a playbook for denying the UAW its goal of expanding into foreign-owned plants in the region, which the union itself has called the key to its long-term future.

CNBC posits the negative:

$10.10 minimum wage could hit total employment: CBO

Raising the U.S. federal minimum wage to $10.10, as President Barack Obama and Democrats in Congress are proposing, could result in about 500,000 jobs being lost by late 2016, the Congressional Budget Office (CBO) estimated on Tuesday.

The non-partisan CBO also said that increasing the hourly wage could reduce U.S. budget deficits by a small amount for several years, but then increase them slightly in later years.

The current minimum wage is $7.25 an hour.

Democrats who control the U.S. Senate could try to advance minimum wage legislation as early as next month.

Xinhua invests:

Foreign holdings of U.S. Treasury debt hits record in December

Foreign buyers continued to increase their holdings of U.S. Treasury securities for a fifth straight month in December, even though the two largest holders of U.S. public debt trimmed their shares, U.S. Treasury Department said Tuesday.

The total foreign holdings rose to 5.79 trillion U.S. dollars in December, up 1.4 percent from that in November, showed the Treasury International Capital report. The figure surpassed the all-time high hit in March of 5.73 trillion dollars.

China, the largest foreign buyer of the Treasury debt, trimmed its holdings by 47.8 billion dollars to 1.27 trillion dollars in December, its first reduction in the past four months, the report showed.

Japan, the second largest holder, sold 3.9 billion dollars to 1. 18 trillion dollars in December, according to the figures.

Salon disgraces:

Virginia county sheriff hosting anti-Muslim training by disgraced conspiracy theorist

  • John Guandolo says Muslims “do not have a First Amendment right to do anything.” Now he’s instructing law officers

The Culpeper County Sheriff’s Office in Virginia is planning to host a three-day training by John Guandolo, a notorious Muslim-basher and conspiracy theorist who resigned from the FBI before he could be investigated for misconduct, according to promotional materials.

It’s hard to believe that the Culpeper County Sheriff’s Office would knowingly associate itself with such a disreputable character, who regularly attacks the U.S. government, claims that the director of the Central Intelligence Agency is a secret Muslim agent for the Saudi government and says that American Muslims “do not have a First Amendment right to do anything.”

Guandolo joined the bureau’s Counterterrorism Division in the wake of 9/11, but by 2005 he was posing as a driver for a “star witness” in the corruption case of former Congressman William Jefferson (D-LA). He made “inappropriate sexual advances” to that witness and soon was having an “intimate relationship…that he thought could damage an investigation.” He also unsuccessfully solicited the witness for a $75,000 donation to an organization he supported and carried on extramarital affairs with female FBI agents.

And the Los Angeles Times talks a deal:

U.S.-Mexico-Canada talks will focus on strengthening economic ties

Mexico is expected to avoid discussions about its drug-related violence and focus on its oil and gas industry, along with border and immigration issues.

Twenty years after their countries signed a landmark regional trade agreement, the presidents of the United States, Mexico and Canada will meet this week to attempt to strengthen the economic ties envisioned in that pact, correct the omissions and find ways to expand.

Trade and commerce are expected to dominate the agenda when President Obama meets with his Mexican and Canadian counterparts — President Enrique Peña Nieto and Prime Minister Stephen Harper — in the Mexican city of Toluca, just west of Mexico City, on Wednesday.

Large squads of soldiers and police were patrolling Toluca, the capital of Mexico state, and blocking off major roadways Monday. Schools in the central city were suspending classes. Leftist political parties were planning demonstrations, with several hundred people marching from Mexico City to Toluca.

EUbusiness covers another deal in the making:

EU, US reps meet ahead of free-trade talks

US Trade Ambassador Michael Froman received his European counterpart Karel De Gucht in Washington Monday, preparing for next month’s fourth round of talks on creating the world’s largest free-trade area.

The two sides have been in discussion since last year over the Transatlantic Trade and Investment Partnership (TTIP), which aims to expand trade, investment and regulatory cooperation between the two huge economies.

Froman and De Gucht spoke briefly to reporters in Washington before two days of closed-door meetings with the EU trade commissioner, meant to take stock of progress made during three past rounds of negotiations, which wrapped up in December.

On to Europe and a call from The Guardian:

Eurozone countries should form United States of Europe, says EC vice-president

  • Viviane Reding calls for full fiscal and political union for 18 eurozone countries but says UK should remain apart

A celebrated call by Winston Churchill for the creation of a “United States of Europe” was revived on Monday by a leading member of the European commission who said the 18 eurozone countries should form a full fiscal and political union.

Viviane Reding, a vice-president of the commission, told Cambridge University’s law faculty that “bold reforms” were needed to avoid tensions across Europe as new governance arrangements were introduced to stabilise the single currency.

A lop-sided take from New Europe:

EU industry: Towards an unbalanced recovery

  • The output of the EU industry remains below the pre-crisis levels

The EU industry lacks of a cohesive growth as according to a report by the European Commission most sectors have still not regained their pre-crisis level of output and significant differences exist between sectors and Member States.

The data for the EU industry shows a mixed picture. The economic output of the manufacturing sector has declined significantly, but important differences between sectors remain. According to the “EU Industrial structure report 2013: Competing in Global Value Chains,” the pharmaceuticals sector has experienced sustained growth since the start of the financial crisis, while high-technology manufacturing industries have, in general, not been impacted to the same extent as other industries.

Moreover, EU manufacturing output indicates significant differences between Member States. Strong recoveries can only be seen in Romania, Poland, Slovakia and the Baltic States, which all regained and exceeded their pre-recession peaks. On the other hand, the EU manufacturing recovery remains below the pre-recession levels in 20 Member States.

Spiegel diagnoses:

The Swiss Virus: Europe Gripped by Immigration Worries

  • The Swiss aren’t the only ones in Europe deeply concerned about immigration. Many across the Continent would also like to see limits placed on newcomers from elsewhere in the EU. Europe must remain firm, but right-wing populists stand to benefit.

Greeks, Italians and French blame economic policy from Brussels for their difficulties. At the same time, Germans and other Northern Europeans are afraid they will ultimately be forced to cough up for EU countries to the south. What some call “reform” and others call “austerity” is driving a wedge between Europeans. And now, the issue of free movement across the EU is being thrown into the discussion because many are concerned they could lose out on the employment market. But questioning the EU principle allowing people to choose where they wish to live and work is akin to questioning the entire European project.

On to Britain and the austerian price of a flooding disaster, via The Guardian:

Thames flood defences among schemes hit by coalition funding cuts

  • Avoidable damage estimated to cost £3bn as projects at Heathrow, Dawlish and Somerset Levels delayed or downsized

Planned defences along the length of the flood-hit Thames Valley were delayed and downsized after government funding cuts following the last election, the Guardian can reveal.

The schemes, totalling millions of pounds, include projects near Heathrow, near David Cameron’s country home in Oxfordshire and in the constituency of the minister who oversaw annual flood budget cuts of almost £100m.

West Drayton, near Heathrow, the scene of significant flooding in west London, was in line for £2.8m of funding to build up concrete and earth bank defences by 2014-15. But following budget cuts, the Arklyn Kennels scheme was downgraded to a £1m scheme and delayed until at least 2018-19.

At Penton Hook, on the Thames near flood-affected Staines in Surrey, a £5.6m dredging scheme was due to be completed by the end of March 2014, but has received just £2m to date. The scheme was also intended to clean up a site where contaminated silt dredged from the river was dumped.

From New Europe, a warning:

Reding: UK would lose influence outside EU

European Commissioner for Justice Viviane Reding warned that the EU would lose influence outside the EU and that all the talk of opt-out by the British government distracts from the real issue which is to find solutions for the EU economy.

“The truth is, outside the EU, the UK would lose influence. If the UK were to leave the EU, it would no longer be able to influence EU regulation. It would have to live with the rules decided on by the other EU countries,” Reding told an audience in Cambridge on February 17.

“To get access to the Single Market, you have to apply its rules. Just ask the Norwegians. It’s difficult to see why the other Member States would grant the UK unfettered access to their markets without requiring it to apply the EU’s rules,” she added.

The federalist Commissioner also added that the rhetoric of David Cameron’s Conservatives – who want to renegotiate Britain’s EU membership and have promised a referendum on the issue in 2017 should they win the next election – distracts from the real issues facing the bloc.

And from CNNMoney, the latest instance of Banksters Behaving Badly:

Ex-Barclays bankers charged with Libor rigging

Prosecutors have charged three former Barclays bankers in connection with the rigging of global interest rates.

The U.K.’s Serious Fraud Office, which prosecutes complex cases of fraud, said Monday that it’s started criminal proceedings against Peter Charles Johnson, Jonathan James Mathew and Stylianos Contogoulas in connection with manipulating the London interbank offered rate, or Libor.

All three have been charged with conspiring to defraud between June 2005 and August 2007.

Pondering a change of course with the London Telegraph:

Interest rate rise ‘a last resort’ to cool housing market

  • David Miles, a member of the Monetary Policy Committee (MPC), describes rate rises as a “blunt tool” that will only be used if other policies fail

The Bank of England will only use interest rate rises to cool the housing market if its financial stability toolkit is “not up to the job”, one of its policymakers has said.

David Miles, an external member of the Monetary Policy Committee (MPC), said rate rises were a “big stick” that would only be used as a last resort.

“We do have, as the last line of defence, the blunt instrument, the big stick of interest rates,” he told Bloomberg TV. “If you did get into a situation where the tools that the Financial Policy Committee (FPC) have seem not up to the job of stopping overheating in the housing market, we would then turn to the blunter instrument of using bank rate.

“We’re a long way from that.”

The Guardian delivers a jeremiad:

New Catholic cardinal renews attack on ‘disgraceful’ UK austerity cuts

  • Roman Catholic archbishop Vincent Nichols, who is to be made a cardinal by Pope Francis, inundated with messages of support

The leader of the Roman Catholic church in England and Wales says he has been inundated with messages of support after branding the government’s austerity programme a disgrace for leaving so many people in destitution.

In an interview with BBC Radio 4′s Today programme to mark his imminent appointment as a cardinal by Pope Francis, Archbishop Vincent Nichols expanded upon his comments to the Telegraph when he criticised the government’s welfare reforms as “punitive”.

“The voices that I hear express anger and despair … Something is going seriously wrong when, in a country as affluent as ours, people are left in that destitute situation and depend solely on the handouts of the charity of food banks,” Nichols said.

In his Telegraph interview, published on Saturday, Nichols accused ministers of tearing apart the safety net that protects people from hunger and destitution. He said since he made those comments he had been “inundated with accounts from people … saying there are indeed many cases where people are left without benefits, without any support, for sometimes weeks on end”.

On to Sweden and a case of that Swiss fever from TheLocal.se:

Roma migrants evicted from Stockholm site

Officials evicted all remaining Romanian migrants from a campsite in southern Stockholm on Monday morning, just days after over 100 campers were given a free bus ride home.

The Swedish Enforcement Agency (Kronofogden) carried out the eviction in Högdalen, a suburb in the southern reaches of Stockholm, at 9am on Monday, just days after a bus load of the campers went home.

“All I know is that it’s more or less empty,” Henrik Brånstad, spokesman at the agency, told the TT news agency. “Many have apparently moved to other places while others have jumped at the chance of a bus ride home to Romania.”

Over 100 EU-migrants accepted the bus tickets home, many of whom had earned money begging in the Swedish capital. One of the buses crashed in southern Sweden on Sunday morning on the way to Bucharest. Only the driver was injured.

Rumbles from the right head to court with TheLocal.se:

First charges filed for Stockholm Nazi attack

Seven people were charged on Monday in the wake of a neo-Nazi attack on anti-racist demonstrators in Stockholm last year. But prosecutors say more indictments are on the way.

Charges were filed on Monday against people who took part in a violent riot in Stockholm’s Kärrtorp suburb in December last year. Four of the suspects were charged with violent rioting (våldsamt upplopp) and hate speech (hets mot folkgrupp) and another three were charged with instigating violent rioting. According to the indictment, several of those charged threw bottles, rocks, and firecrackers.

“There will be more charges filed than just these, altogether there were around 30 people detained after the demonstration,” Ulf Sundström of the Söderort police told the TT news agency.

And TheLocal.se, and a word for the teacher:

Teacher salaries too low in Sweden: OECD

Teacher salaries in Sweden are lower than in countries with higher–performing schools, according to an extra OECD evaluation requested by the government on the heels of Sweden’s dismal performance in the latest Pisa rankings.

“The quality of an education system can never exceed the quality of its teachers,” Andreas Schleicher, the OECD’s Deputy Director of Education and Skills, told reporters at a press briefing in Stockholm on Tuesday.

“In higher-performing countries, teachers have higher salaries but also clear career possibilities.”

The analysis, which marks the first time ever that Sweden has asked the OECD for extra help in evaluating its school system, also found that Sweden has relatively high costs per student, with only nine other OECD countries spending more money per pupil.

The Associated Press covers a Norwegian whiner:

Breivik hunger strike threat: wants bigger gym

Convicted Norwegian mass-killer Anders Behring Breivik has threatened to go on hunger strike unless he gets access to better video games, a sofa and a larger gym.

In a letter received by The Associated Press Tuesday, Breivik writes the hunger strike will continue until his demands are met or he dies. Breivik’s lawyer Tord Jordet confirmed the letter was authentic and said his client is waiting for a response from prison authorities before starting the hunger strike.

Breivik is serving a 21-year prison sentence, which can be extended when it expires, for killing 77 people in bomb and gun massacres in 2011.

Among his demands, Breivik wants the lifting of restrictions on communications and improved air conditions. He wants the available PlayStation 2 console replaced by a modern version.

Germany next and a call for a New Deal from Deutsche Welle:

IW think tank urges change in German investment policy

A leading German economic think tank has announced that massive investments in infrastructure are needed so as not to lose out to competitors. The institute found many companies were worried about possible disadvantages.

In its study released Monday, the Cologne Institute for Economic Research (IW) said despite a relatively good infrastructure many companies polled were increasingly worried about a deterioration of the country’s road network.

They also voiced concerns about the future state of the energy grid, with the shift to renewables currently posing enormous problems and a necessary expansion of the network facing community-level resistance.

Companies also worried about broadband Internet connections not being created fast enough in all regions. About two-thirds of the 2,800 firms polled reported that they were already experiencing disadvantages as a result of infrastructure problems.

The research institute calculated that all in all some 120 billion euros ($164.6 billion) would have to be invested into infrastructure over the next 10 years, to be spent evenly on road maintenance and extension, the broadband communications network and the national energy grid, with a major new north-south line.

From TheLocal.de, a cartel cabal busted:

Sugar giants fined €280m for price fixing

German consumers have been paying over the odds for sugar for years, it emerged on Tuesday, when authorities fined Germany’s three biggest sugar firms €280 million for illegally fixing prices.

Pfeiler & Langen, Südzucker and Nordzucker, along with seven unnamed individuals were found to have been fixing prices, sales territories and quotas between them for many years, the Federal Cartel Office in Bonn said.

The three German sugar producers agreed on various strategies between them aimed at pushing up sugar prices across the board, whether they sold to households or the food industry.

The manufacturers agreed “to keep to their traditional sales territories and not get in the way of the other cartel members,” said Cartel Office president Andreas Mundt in a statement.

And Europe Online notes a decline:

German investor confidence posts surprise fall in February

German investor confidence posted a surprise decline in February over concerns of a slowdown in the United States and uncertainties in emerging economies, a key survey showed Tuesday.

The closely watched indicator gauging the mood among analysts and institutional investors slipped to 55.7 from 61.7 in January, the Mannheim-based ZEW institute said.

While Spiegel covers blowback:

Child Porn Investigation: Merkel Cabinet Rife with Suspicion and Mistrust

It is a disastrous start for Angela Merkel’s new government: After details of a child pornography investigation were leaked, a cabinet member was forced to resign. Now, the chancellor’s new cabinet is consumed by backbiting and mistrust.

Deutsche Welle notes another downside to the German miracle:

Study: Eastern Europeans underpaid in Germany

  • Massive poverty-driven migration from Eastern Europe? Recent studies suggest a different situation: More than half of all immigrants from these countries have good credentials, but work for low wages in Germany.

The Employment Agency’s statistics show that a far larger percentage of Eastern Europeans receive low wages than their German counterparts do. In December 2012, around 52 percent were paid low-wage salaries, meaning they earned less than two-thirds of the country’s average income. The share of such workers among Germans makes up just under 20 percent.

At the same time, the educational level of immigrants keeps rising, says Nina Neubecker from the German Institute for Economic Research (DIW): “We found that those who moved to Germany after 2004 are considerably more qualified than immigrants from years in the past.”

Neubecker says her research revealed that two thirds of Eastern European immigrants hold a university degree or have completed a vocational training course. She also found that a significant part of Romanians and Bulgarians who moved to Germany after 2007 carry out jobs not requiring their level of education. Depending on the method used, estimates of the proportion of these overqualified immigrant workers range from 40 to 58 percent.

And a call to chill from Deutsche Welle:

Merkel calls on EU to remain calm after controversial Swiss referendum curbing immigration

German Chancellor Merkel has called on EU states to remain calm after a controversial Swiss referendum which limits the number of immigrants within its borders. The comments followed a meeting with the Swiss president.

Chancellor Merkel warned fellow EU members against “rashly breaking” relations with Bern. “It can’t be that because one side did something in one specific area that the other side says nothing works in other areas,” she said, referring to Brussels’ retaliatory moves.

“The challenge will now be that we deal with the results in a way that relations between the European Union and Switzerland remain as intense as possible with respect for the referendum,” Merkel added.

Merkel and Burkhalter also reaffirmed their commitment toward maintaining German-Swiss ties. The current bilateral trade volume is worth roughly 75 billion euros ($103 billion) and some 350,000 Germans are employed in Switzerland.

On to France and a fear from TheLocal.fr:

French TV execs want protection from Netflix

French TV executives have asked to meet with top leaders to plead for “urgent measures” that would guard them against the pending arrival of video service Netflix and tech giants like Google.

The heads of France’s three largest private television networks have asked the government to protect them from US competitors like Google, Apple and Netflix who are set to enter the market.

The bosses of TF1, Canal+ and M6, alarmed by the impending arrival of the American tech giants, have sought a meeting with Culture Minister Aurelie Filippetti to discuss “urgent measures” to reform the sector.

“It is not an economic crisis that is being faced by TF1, Canal+ and M6 but a rapid sectoral change,” Nonce Paolini, Bertrand Meheut and Nicolas de Tavernost said in the letter written last week and seen by AFP on Monday.

And another Roma tragedy from TheLocal.fr:

Blaze ravages another Roma camp in France

Fire raged through a Roma camp in Marseille on Sunday, just days after a blaze in a Paris area Roma camp killed an eight-year-old girl. Following that deadly fire the local mayor said it was time France dismantled its slums.

No one was hurt in the latest fire on Sunday morning, but all 15 makeshift homes near the Marseille port were completely destroyed, said the local fire brigade in a statement.

“Preliminary investigations suggest the fire was started accidentally,” a judicial source told AFP.

Around 45 people who were in the camp will now be housed by authorities in a hotel for the next week, but their future is in doubt since the local government was on the verge of evicting them.

Switzerland next and blowback from TheLocal.ch:

EU freezes research and student exchange funds

In a tit-for-tat retaliation, the European Union has frozen research grants for Swiss universities worth hundreds of millions of euros and suspended the involvement of Switzerland in the Erasmus student exchange programme.

A spokesman for the EU announced the freeze on Sunday, a day after after Bern announced it had refused to sign a deal opening labour market access to Croatia, the ATS news agency reported.

The Swiss government said it was unable to ink the deal because of the February 9th referendum decision to scrap the freedom of movement of labour agreement with the EU and impose immigration quotas.

But Brussels considers that Horizon 2020, an €80-billion research and innovation programme spread over seven years (2014-2020), and Erasmus, are tied to the free movement of people accord, ATS said.

More blowback from TheLocal.ch:

Moody’s: Swiss migrant vote ‘credit negative’

Curbs on immigration from the European Union will hurt Switzerland’s economy and its banking sector, ratings agency Moody’s said in a statement issued on Tuesday.

Swiss voters on February 9th supported an initiative to reintroduce quotas on immigrants from the EU in a move that has already led to retaliation from the 28-country bloc.

“Limiting immigration is likely to affect the country’s growth potential, wealth and overall economic strength,” Moody’s said, noting that the effect of the vote was “credit negative”.

The agency noted that Switzerland has benefited over the past decade from the “strong inflow of highly qualified workers”.

And from RT, tucked in for the night:

Swiss jets not scrambled over hijacked plane because ‘airbases closed at night’

An incident with a highjacked Ethiopian passenger jet has exposed the Swiss Air Force’s inability to deal with threats in ‘off-duty’ hours. An emergency escort to the aircraft in distress was carried out by vigilant colleagues from Italy and France.

Early on Monday morning, an Ethiopian Airlines co-pilot told ground control he had highjacked flight ET-702 from Addis Ababa to Rome and was going to land in Geneva. The Swiss Air Force was caught off guard and missed a rare opportunity to go on a real mission. It turned out that they were unable to scramble any jets because they only work during office hours!

“Switzerland cannot intervene because its airbases are closed at night and on the weekend,” Swiss Air Force spokesman, Laurent Savary, commented to AFP later on, adding that it is “a question of budget and staffing.”

According to Laurent Savary, the Swiss Air Force operates during office hours only, specifically from 8am until a lunch break at noon. A return to cockpits happens at 1:30 pm and they watch over Switzerland’s skies until 5pm.

Spain next, and blowback from anti-immigrant violence of another kind from El País:

Immigration law change in works: interior minister

  • Rajoy defends civil guards’ reaction to tragic Ceuta stampede
  • Brussels denies receiving Spain’s request for border help

Interior Minister Jorge Fernández Díaz on Tuesday announced that the Popular Party (PP) government is preparing a change in the immigration law to help civil guards facing mass attempts by migrants to cross the border into the Spanish North African exclaves of Ceuta and Melilla.

“The law is not designed for events such as the stampedes in Ceuta and Melilla,” Fernández Díaz said in the halls of the Senate after a tense session. “It is not the same as controlling the border at Barajas or Melilla [airports]. We are working on a reform to control the borders, so that the Civil Guard has adequate regulations to confront these situations.”

Earlier in the upper house he and Prime Minister Mariano Rajoy vigorously defended the actions of civil guards at the Ceuta security fence on February 6, when 15 sub-Saharan migrants died as a result of a mass attempt to cross the border during which rubber bullets were fired.

TheLocal.es has a deal for you:

Spain rolls out plans to flog off failed bank

Spain will sell its stake in bailed-out bank Bankia in stages over two or three years, its president said in an interview published on Sunday.

Bankia became the symbol of Spain’s financial crisis when it lost more than €19 billion ($26 billion) in 2012 and pushed the government to ask its eurozone partners for €41 billion in rescue loans to shore up the entire banking system.

Under the terms of the European Union’s 2012 bailout, the Spanish government has until 2017 to sell its 68 percent stake in Bankia.

“It would be reasonable for the privatization process to be similar to what is being carried out with Lloyds. That is, that it be carried out in phases and take two or three years,” Bankia president Jose Ignacio Goirigolzarri said in an interview published in daily newspaper ABC.

Europe Online covers another record:

Spain’s public debt at record high

Spain’s public debt has risen to its highest level since records began, data released on Monday showed, with the country posting an unprecedented deficit of 961.6 billion euros (1.3 trillion dollars) at the end of 2013.

The debt level marks an 8.7-per-cent increase on the previous year’s figure, the Bank of Spain revealed on Monday.

It represents around 94 per cent of gross domestic product (GDP), which is slightly higher than the Spanish government’s 2013 target of 94.2 per cent.

El País covers departures:

Chinese burned

  • Some Spanish firms are abandoning China because of the problems of doing business there

“The wave of news stories about the rise in the Chinese market is creating a very distorted image of what it means to do business in this country and the risks involved.” This is the opinion of the director of a big Spanish industrial company with a presence in China. The director spoke on the condition that he was not named. “Currently, although the opposite image is given, very few Spanish companies are making a profit in China, and many are having great problems finding room for themselves in a particularly difficult market,” the director says.

Cases such as those of Revlon and Garnier, which this year decided to pull out of China, have shown that such problems are common to all foreign companies, although the idea persists that Spanish firms are finding it particularly difficult because they “lack the right background and financial resources.”

“Many companies are reaching desperation point. Traditional markets are not working and they’re convinced that anyone can make money in China. But they limit themselves to putting an intern in a business center and hoping for results that obviously will never come,” says the director, who is a leading member of the Spanish Chamber of Commerce in Shanghai. “The problem of human resources is a major one: they don’t invest enough in personnel, there is a lack of talent and the turnaround in staff is one of the highest in the world.”

On to Lisbon and a caution from the Portugal News:

‘Crisis not over’ – finance minister

Portugal’s finance minister, Maria Luís Albuquerque, said on Monday in Brussels, that one of the country’s biggest challenges was not to be tempted to give up on budget discipline because it felt the worst part of the crisis was over.

Maria Luís Albuquerque, who was speaking at an Organisation for Economic Co-operation and Development (OECD) meeting before a Eurogroup meeting, said that “ among the reforms being implemented across Europe, the banking union was clearly the priority for Portugal”, since the current “credit conditions are a very negative factor for the competitiveness of Portuguese companies and the economy as a whole”.

Noting that the structural reforms, one of the topics of the seminar, are also high on the agenda, and there were reasons to be satisfied with the results, but added that there was “still a lot more work ahead”.

Italy next and a change at the top from ANSA:

Renzi handed govt mandate, sets ambitious reform goals

  • Premier-designate eying one major reform every month till May

Democratic Party (PD) leader Matteo Renzi set ambitious reform targets on Monday after being given a mandate to try to form a government from Italian President Giorgio Napolitano.

Renzi, 39, is set to become Italy’s youngest-ever premier after torpedoing the coalition administration of his PD colleague Enrico Letta last week over his lack of progress with much-needed institutional reforms and measures to revive the troubled economy.

Italy is slowly emerging from its longest postwar recession, but it is still ravaged by unemployment of over 12% with over four in 10 under-25s out of work. Constitutional changes are also needed to streamline government and reduce the cost of the country’s expensive, slow-moving political system.

Les than enthused with TheLocal.it:

Italians think Renzi takeover is ‘pointless’

Matteo Renzi was nominated as Italy’s new prime minister on Monday after a “palace coup” which saw Enrico Letta resign from the leadership. But a new poll has found that few Italians believe it is a positive political move.

Just 31 percent of Italians think replacing Letta with Renzi, who aged just 39 is set to be Italy’s youngest-ever prime minister, is positive, an Ipsos poll on Sunday found.

While 23 percent found the move outright wrong, 26 percent said it was “pointless” while 15 percent found the current situation “absurd”.

Still more enthusiasm absent from ANSA:

Fitch keeps outlook negative, ‘Renzi faces same problems’

  • Letta’s resignation highlights ‘volatility of Italian politics’

Ratings agency Fitch said Monday it was keeping a negative outlook for Italy with a BBB+ rating, saying premier-designate Matteo Renzi “will probably have the same problems as his predecessor” in pushing through reforms if he manages to form a new government.

Fitch said the resignation of outgoing Premier Enrico Letta on Friday highlighted the “volatility of Italian politics” pointing out that Renzi was set to be the country’s fourth premier since November 2011.

A plutocratic spat from the London Telegraph:

Tycoons quarrel over Italy’s young jobless

  • Two of Italy’s business heavyweights have gone to war over the country’s soaring levels of youth unemployment
  • Italy’s youth unemployment reached a record 41.6pc in January

Diego Della Valle, head of the Tod’s luxury leather goods empire, launched a blistering attack on John Elkann, the president of the Fiat auto giant, after Mr Elkann said Italy’s young unemployed had no desire to look for work.

Mr Della Valle, the colourful entrepreneur known for his exuberant ties and gold-tinted spectacles, labelled Mr Elkann an “imbecile” after a week of bitter exchanges between the two.

Unhappy other from TheLocal.it:

Desperate business owners march on Rome

An estimated 60,000 Italians protested in central Rome on Tuesday, calling for greater action to save the millions of small- and medium-sized businesses which employ almost half the country’s workforce.

Tens of thousands of people gathered in Rome’s Piazza del Popolo on Tuesday; a collective army of business owners demanding the government do more to stem the worrying rise in bankruptcies.

“Without business there is no Italy,” was the slogan of the day, organized by the Italian Enterprise Network (Rete Imprese Italia) along with a number of business associations.

Among a series of demands was an overhaul of the tax system, often described as a barrier to growth with such high rates many Italians simply evade their tax duties.

After the jump, the latest on the endless Greek crises, violence in the Ukraine, Turkish joblessness rising, Turkish economic alarms, Venezuelan turmoil, troubles in Brazil, Argentinian woes, Latin legalization moves, Australian economic woes and a Murdochian bonanza, Indian populism and woes, Thai turmoil, a mixed report from China, Abenonics in extremsis in Japan, nuclear woes, and Fukushimapocalypse Now! . . . Continue reading

Headlines of the day II: MegaloEconoPoliFuku


A verrryyyy long collection, with the latest global economic, political, and environmental news for your perusal.

First up, playing monopoly with Sky News:

Comcast To Buy Time Warner Cable For $45bn

The deal would create an entertainment superpower with 32 million TV subscribers, but there are calls for regulators to step in.

The two biggest US cable companies are joining forces in a $45bn (£27bn) deal, creating an entertainment giant with some 32 million TV subscribers.

Comcast’s merger with Time Warner Cable was confirmed at the start of trading on Thursday.

Its offer, which is subject to regulatory approval, is about 17% higher than the company’s closing share price on Wednesday.

The takeover bid trumps an earlier $38bn (£23bn) offer from Charter Communications, which appeared to concede defeat by announcing: “We’ve always maintained our greatest opportunity to create value for shareholders is by executing our current business plan.”

More from Business Insider:

What’s in it for Comcast Cable shareholders?

“This combination creates a company that delivers maximum value for our shareholders,” said Comcast CEO Brian Roberts.

How are they going to do that?

The company explains in one sentence that probably has every Comcast and Time Warner Cable employee nervous.

“The transaction will generate approximately $1.5 billion in operating efficiencies and will be accretive to Comcast’s free cash flow per share while preserving balance sheet strength.”

“Operating efficiencies” usually means the closing and combining offices, which also often comes with job cuts.

Still more from The Guardian:

Comcast takeover of Time Warner Cable ‘will throttle choice on the web’

  • Angry consumer groups say proposed $45.2bn mega-deal will drive up costs for millions – and call on FCC to block takeover

Consumer groups reacted angrily to the merger of cable giant Comcast and Time Warner Cable on Thursday, claiming the combination could “throttle” choice on the internet.

Comcast’s proposed $45.2bn takeover of TWC will create a media behemoth that will dominate broadband internet access across the US. Comcast, which owns NBC Universal, will also cement its position as the pre-eminent force in cable TV.

Jodie Griffin, senior staff attorney at consumer rights group Public Knowledge said: “This is a deal that needs to be blocked.” She said Comcast was likely to use the extra leverage to “drive up costs and reduce choices for consumers.”, and claimed the new company would be too powerful, becoming a “gatekeeper” capable of “throttling competition.”

And from In These Times, a symbolic action taken years too late:

It’s Official: Obama Signs Minimum Wage Hike for Some Federal Contract Workers

Today, President Barack Obama honored his promise from last month’s State of the Union address to raise the minimum wage for some workers indirectly employed by the federal government. In a new executive order, he raised the minimum wage from $7.25 to $10.10 an hour, effective Jan. 1, 2015. The White House estimates the order will affect hundreds of thousands of workers employed by private companies with government contracts.

“Nobody who works full time should have to live in poverty,” Obama said during a signing ceremony at the White House. He used the ceremony to repeat his calls for Congress to raise the federal minimum wage for all workers and for state and local governments and private businesses to also act to boost the income of low-wage workers.

Labor groups and union supporters reported they were pleased with the final shape of the executive order.

From The Hill, reversing idiocy:

Senate reverses pension cut

The Senate on Wednesday sent legislation to President Obama’s desk that would repeal the controversial $6 billion cut to military pensions.

The Senate overwhelmingly approved the measure in a 95-3 vote, undoing the spending cut that Congress had approved two months prior in the December budget deal.

The only senators to vote against the bill were Tom Carper (D-Del.), Dan Coats (R-Ind.) and Jeff Flake (R-Ariz.).

The legislation passed in the House just a day earlier in a 326-90 vote.

From MintPress News, necessary action:

Justice Department Sued Over Secretive JPMorgan Settlement

The agreement settled both “actual and potential” civil claims against the company brought by five federal agencies and several state attorneys general, thus offering broad immunity for years.

A public interest group is suing the Department of Justice and Attorney General Eric Holder over the agency’s recent record-busting settlement with JPMorgan Chase for the bank’s fraudulent conduct leading up to the 2007-08 bursting of the housing bubble and subsequent meltdown of the financial industry.

Better Markets, a watchdog group based here, alleges that the Justice Department broke both federal law and constitutional mandate when it agreed to and finalized the $13 billion settlement in November. The agreement process, reportedly decided upon personally by Holder and JPMorgan CEO Jamie Dimon, included no judicial oversight, despite what critics say are multiple statutory obligations to do so.

“There are certain statutes regarding certain violations of law that expressly state that the Department of Justice must seek court approval, and then there are others where it’s silent,” Dennis Kelleher, the head of Better Markets, told MintPress while announcing the lawsuit on Monday.

CNBC frets:

Wealthy more worried about being seen as wealthy

  • Is success being vilified in America? The successful seem to think so.

A new poll from American Express Publishing and Harrison Group finds that 1 percenters no longer like to be seen as such.

One-third of members of the group said they “like it when others recognize me as wealthy.” Though that number (taken in the fourth quarter of 2013) may sound high, it’s down from 40 percent a year earlier. And it’s far below the 53 percent who agreed with the statement in 2010.

Fully 28 percent say they worry about “being scorned for being in the top part of the economy,” versus 24 percent who were concerned about that in the first quarter of 2013.

From USA TODAY, that old hard times intolerance [the first of several in today’s compendium]:

Immigration debate is reignited in Fremont, Neb.

Voters in Fremont, Neb., are still trying to curb illegal immigration.

Residents voted 60%-40% on Tuesday to re-approve an ordinance that requires property owners not to rent houses or apartments to illegal immigrants and requires renters to declare their legal residency. Landlords who violate the ordinance face fines.

Fremont has a complicated history with the ordinance, which thrust this city of 26,000 people near Omaha into the national spotlight in 2010, when residents first approved the law after the City Council defeated the proposal. The law also requires employers to verify the legal status of employees; that part of the law is in effect.

After voters approved the measure, the City Council put the law on hold when the Nebraska ACLU and other groups sued. Lower courts upheld the law, and the council sent the housing portion back for another vote of the people.

Al Jazeera America protests:

Portland, Ore., residents tell mayor: ‘Stop arresting homeless people’

Residents of Portland, Ore., gathered in front of City Hall on Tuesday to protest the government’s treatment of its homeless population. The group, a self-described “angry mob,” carried pitchforks and torches while demanding that Mayor Charlie Hales end policies that criminalize homelessness.

The city government has come under fire in recent months for enforcing an ordinance that prohibits camping on public property, which critics say unfairly targets the homeless.

A 2013 city count found nearly 1,900 individuals in the Portland metropolitan area to be homeless and unsheltered, a 10 percent increase from 2011.

From PandoDaily, paying the piper:

The Wolf of Sesame Street: Revealing the secret corruption inside PBS’s news division

On December 18th, the Public Broadcasting Service’s flagship station WNET issued a press release announcing the launch of a new two-year news series entitled “Pension Peril.” The series, promoting cuts to public employee pensions, is airing on hundreds of PBS outlets all over the nation. It has been presented as objective news on  major PBS programs including the PBS News Hour.

However, neither the WNET press release nor the broadcasted segments explicitly disclosed who is financing the series. Pando has exclusively confirmed that “Pension Peril” is secretly funded by former Enron trader John Arnold, a billionaire political powerbroker who is actively trying to shape the very pension policy that the series claims to be dispassionately covering.

In recent years, Arnold has been using massive contributions to politicians, Super PACs, ballot initiative efforts, think tanks and local front groups to finance a nationwide political campaign aimed at slashing public employees’ retirement benefits. His foundation which backs his efforts employs top Republican political operatives, including the former chief of staff to GOP House Majority Leader Dick Armey (TX). According to its own promotional materials, the Arnold Foundation is pushing lawmakers in states across the country “to stop promising a (retirement) benefit” to public employees.

Despite Arnold’s pension-slashing activism and his foundation’s ties to partisan politics, Leila Walsh, a spokesperson for the Laura and John Arnold Foundation (LJAF), told Pando that PBS officials were not hesitant to work with them, even though PBS’s own very clear rules prohibit such blatant conflicts. (note: the term “PBS officials” refers interchangeably to both PBS officials and officials from PBS flagship affiliate WNET who were acting on behalf of the entire PBS system).

United Press International sues:

Magazines sue Colorado over marijuana advertising restrictions

Two publications are challenging Colorado’s recreational marijuana rules about advertising, with a lawsuit filed in federal court, records said.

The national magazine High Times and the local weekly magazine Westword sued the state of Colorado Monday because of rules stating recreational marijuana stores can advertise only in publications aimed at a readership over the age of 21, the Denver Post reported Wednesday.

The lawsuit argues the rules, which also apply to outdoor and broadcast advertising, are restrictions of free speech, and notes there are no similar restrictions on medical marijuana businesses.

It marks the first time the state’s advertising rules have been challenged in court.

From MintPress News, a stunning development:

HIV/AIDS Cure May Be Found In Marijuana: Study

For years, many Americans with HIV/AIDS have used medical marijuana to relieve some common symptoms associated with the illness such as nausea, vomiting and appetite loss.

Now, a new study published last week in the journal AIDS Researcher and Human Retroviruses found that a daily dosage of marijuana’s psychoactive ingredient tetrahydrocannabinol, or THC, may actually fight the HIV/AIDS virus itself.

In this most recent study, the team of researchers from Louisiana State University found that when HIV-infected monkeys were given THC daily during a 17-month time period, the monkeys had less damage in the immune tissue of their gut — an important site of HIV infection — than those given a placebo.

Researchers also reported that they found consuming THC had improved the monkeys immune tissue at a gene level as well, and was in a way, preventing the disease from killing healthy immune cells — a discovery other studies have found as well.

From the McClatchy Washington Bureau, blowing smoke:

Marijuana gets a show of support on Capitol Hill

  • Eighteen House members ask Obama to reclassify the banned drug

In the biggest show of support yet for legalizing marijuana on Capitol Hill, 18 House members today asked President Barack Obama to reclassify the drug, removing it from a list of banned substances deemed to have no medical value.

The letter, distributed by Oregon Democratic Rep. Earl Blumenauer, argued that including marijuana in the Schedule 1 list of banned drugs, along with heroin and LSD, disregards the laws of 20 states that allow pot to be used for medical purposes.

It comes after Obama last month said that he doesn’t believe that marijuana is any more dangerous than alcohol.

MintPress News cashes out:

Banking Regulations For Marijuana Industry “Imminent”

“Without access to basic banking services, many legitimate cannabis businesses are forced to manage sales, payroll, and even tax bills entirely in cash.”

On Tuesday U.S. Rep. Denny Heck, D-Olympia, Wash., said the federal government’s new guidance for banks and bank regulators will be released “imminently.”

What Heck is referring to is Attorney General Eric Holder’s pledge that the Justice Department and the Treasury Department would issue guidance “very soon” to banks on how they can work with marijuana businesses.

Though the guidance had not been issued by the time of this article’s publication, Heck, a member of House Committee on Financial Services, who along with Congressman Ed Perlmutter of Colorado has pressed for marijuana banking reform, said legal marijuana businesses will be provided with a “full range of banking service, including accepting credit cards, direct depositing payroll checks and more,” under the guidance.

In other words, marijuana-related businesses will no longer be forced to operate on a cash-only basis.

On to latest in the global neoliberal trade agreement games from Jiji Press:

Japan, U.S. to Hold Working-Level TPP Talks Next Week

Working-level officials of Japan and the United States will meet in Japan next week to discuss sticky issues in the Trans-Pacific Partnership free trade talks ahead of key four-day TPP ministerial talks in Singapore from Feb. 22, Japanese government sources said Wednesday.

Acting Deputy U.S. Trade Representative Wendy Cutler will arrive in Japan on Monday and hold talks with Hiroshi Oe, Japan’s deputy chief representative in the TPP negotiations, and other officials, according to the sources.

The two sides are expected to discuss the handling of tariffs on farm products and issues related to automobile trade, the sources said.

Another deal, with problems, via Deutsche Welle:

Tripping over TTIP: Obstacles overshadow EU-US trade pact

  • With talks on the EU-US transatlantic free trade deal set to continue next month, this week’s outrage over a European Parliament vote on genetically modified corn will hardly be the last obstacle negotiators face.

This coming Monday (17.02.2014), EU trade chief Karel de Gucht and his US counterpart Michael Froman are scheduled to meet in Washington to discuss the Transatlantic Trade and Investment Partnership (TTIP), a transatlantic free trade area. They are expected to make a political assessment of the past three rounds of US-EU trade talks and to discuss the upcoming fourth round of negotiations in March.

The pact would unify standards and licensing procedures across a EU-US trade zone and would waive tariffs on goods traded between the EU and the US. According to the Munich-based IFO institute, the treaty will create up to 400,000 new jobs in Europe – 110,000 of them in Germany alone. A done deal, it would seem.

But the deal is far from done: the EU and the US differ over a wide variety of issues, one of which is genetically modified food. On Tuesday (11.02.2014), a new type of genetically modified corn from the US was approved by the European Parliament amid great controversy. The decision paves the way for compromise over one of the differences in EU-US consumer attitudes that has been a stumbling stone in TTIP negotiations.

But opponents of the trade pact are becoming more vocal, and more debates over standards, consumer protection, cultural protectionism threaten to erupt when EU-US negotiators get down to the deal’s fine print and put the agreement up for domestic scrutiny.

From Canada, riches spurned from South China Morning Post:

Canada scraps millionaire visa scheme, ‘dumps 46,000 Chinese applications’

Tens of thousands of Chinese millionaires in the queue will have their applications scrapped and their application fees returned

Tens of thousands of Chinese millionaires face an uncertain future after Canada’s government moved to scrap its controversial investor visa scheme, which has allowed waves of rich Hongkongers and mainland Chinese to immigrate since 1986.

The surprise announcement was made in Finance Minister Jim Flaherty’s budget, delivered to parliament in Ottawa on Tuesday. Tens of thousands of Chinese millionaires in the queue for visas will have their applications “eliminated” and their fees returned.

The announcement came less than a week after the South China Morning Post revealed how the scheme was overwhelmed by an influx of applications from mainland millionaires at Canada’s Hong Kong consulate. Applications to the scheme were frozen in 2012 as a result, as immigration staff struggled to clear the backlog.

ANSAmed covers a ploy:

EU and southern Europe in re-industrialization pact

  • Italy, Spain, Portugal heads of State meet at COTEC in Lisbon

An EU Industrial Compact adopted in January has led to a ‘pact’ between the European Commission and southern European countries to speed up the re-industrialization of Europe by exploiting the first signs of economic recovery, European Commission Vice President Antonio Tajani made known in a joint statement with ministers from Italy, Spain and Portugal on Wednesday in Lisbon.

The statement was issued on the sidelines of the annual COTEC conference, which was attended by Italian President Giorgio Napolitano, Spanish King Juan Carlos, and Portuguese President Anibal Cavaco Silva.

The aim of the Industrial Compact is for the manufacturing sector to make up 20% of EU GDP, and this can be achieved by speeding up innovation and marketing, COTEC experts from Italy, Spain and Portugal said.

And from MintPress News, more of that old hard times intolerance:

The Rebirth Of European Racism

The mass influx of migrants has triggered a wave of nationalistic fervor goaded by public statements of right-wing leaders.

Bulgaria has recently seen a surge in xenophobic attacks since a wave of Syrian refugees escaping the horrors of the war started arriving. But it appears what these refugees have found in Bulgaria isn’t much better than what they left behind.

Last year, roughly 11,600 migrants and asylum seekers crossed into Bulgaria from Turkey, most of them Syrian. Human rights organizations expect tens of thousands to make the journey across the Turkish border in the coming months.

But the mass influx of migrants has triggered a wave of nationalistic fervor goaded by public statements of right-wing leaders. Last November, several neo-Nazi factions, including the local branch of the international Blood and Honor Skinhead network, formed the Nationalist Party of Bulgaria, which says it wants to “cleanse Bulgaria from the foreign and alien immigrant scum that have been flooding the towns of Bulgaria.”

The party has organized so-called “civil patrols,” which stop and check foreigners—and a portion of the general population thinks that this is a good idea.

And an admission from The Guardian:

Migration in the EU ‘has caused strains,’ admits José Manuel Barroso

  • President of the European Commission says free movement is open to abuse but that he will not compromise on citizens’ rights

José Manuel Barroso, the president of the European Commission, will on Friday acknowledge that the free movement of people across the EU has put “unintended strains” on public services and is open to abuse.

In a move to show that Brussels understands the concerns raised in Britain, Barroso will say in London that the commission has recently clarified anti-abuse rules to crack down on sham marriages which allow non-EU citizens to claim benefits as a family member.

But the commission president will make clear in a speech to the London School of Economics that he will not compromise on the right of all EU citizens to move across all 28 member states – one of the four founding pillars which guarantees the free movement of labour, capital, goods and services.

Reuters ponders:

ECB still assessing if lower inflation temporary: Coene

The European Central Bank is awaiting further information, particularly signs on whether the current easing of euro zone inflation is temporary, before it acts, Governing Council member Luc Coene said.

Annual inflation in the 18-member euro zone slowed to 0.7 percent in January from 0.8 percent in December, confounding expectations of a rise and matching a four-year low hit last October.

The ECB left interest rates at record low last week, but put markets on alert for a possible move in March, when the Governing Council should have new forecasts from the bank’s staff extending into 2016.

On to Britain and an ongoing disaster from the London Telegraph:

Flood-hit areas are a ‘battlefield’ as thousands of soldiers are deployed

  • Army chief says that commanding officers are applying ‘battle-group’ skills an ‘unparalleled natural crisis’

Britain is in the grip of an “unparalleled natural crisis”, the Army officer in charge of the flood recovery effort declared on Wednesday.

As hurricane-force winds gusting at more than 100mph lashed the country, forecasters warned that the weather will get worse this weekend as a month’s worth of rain falls in just 48 hours.

The chaos now threatens to derail Britain’s economic recovery, Mark Carney, the Governor of the Bank of England warned. His comments came as storms that have battered the South West and Wales for weeks spread to the north of England for the first time this winter, bringing parts of the country to a standstill.

A bankster alert from the London Telegraph:

RBS warned of credit rating ‘downgrade’

  • Royal Bank of Scotland has been told its credit could be downgraded by ratings agency Moody’s

Royal Bank of Scotland has been warned by one of the world’s main ratings agencies that its credit is at risk of being downgraded following the surprise revelation last month of weaker than expected capital levels.

Moody’s said it had put RBS’s debt “on review for downgrade” pointing to the taxpayer-backed lender’s “weaker than previously anticipated regulatory capital position”.

The move comes after RBS’s unscheduled announcement on January 27 of £3.1bn of extra provisions for issues ranging from its sale of toxic mortgage-backed securities to the mis-selling of payment protection insurance and interest rate hedging products.

More immigration tension, this time from Iceland and the Reykjavík Grapevine:

Newspaper Editor Defends Leaked Memo

Davíð Oddsson – the current co-editor of Morgunblaðið – defended the leak of a memo on an asylum seeker that launched a police investigation as “allowing the public to get the whole picture”.

In an editorial for Morgunblaðið, Davíð – who is also, amongst other things, the former chairperson of the Independence Party, from which Ministry of the Interior Hanna Birna Kristjánsdóttir hails – argued in favour of government offices publishing personal information about refugees as a means to take part in the public discussion about asylum seekers.

“Is it not right that the public get the whole picture?,” Davíð wrote. “That nothing is hidden about what’s at stake?”

As reported, the police are currently investigating the Ministry of the Interior over a leaked memo which impugned the reputations of Nigerian asylum seeker Tony Omos and the mother of his child, Evelyn Glory Joseph. It later came to light that the accusations in the memo were false. Whilst the ministry denies the memo came from their offices, all evidence indicates the ministry as the only source.

On to Norway with EUbusiness and a hard times intolerance rebuke:

Norway rules out referendum on immigration

Norwegian Justice Minister Anders Anundsen on Wednesday ruled out holding a referendum on immigration, rejecting a request by a fellow member of his populist party to follow in the footsteps of Switzerland.

“For many years, the (populist) Progress Party has claimed that more influence should be granted to the citizens. This proposition shouldn’t shock anybody,” Anundsen, a Progress Party minister was quoted by Norwegian news agency NTB during parliamentary question time.

“But within the government coalition, the Progress Party is sticking to our cooperation agreement (with the other right and centre-right parties) and does not plan a referendum on this matter.”

A Finnish proclamation from New Europe:

Finland: OECD wants more structural reforms

Most people would not associate Finland with past high-tech successes like Nokia and Ericksson with structural reforms that have come to be associated with the EU’s troubled south. But the latest report by the Organization for Economic Cooperation and Development (OECD) urged Helsinki to make more efforts in the structural reform to stimulate the economy, Finnish Broadcasting Company YLE reported on Wednesday.

OECD called for more measures in restructuring municipalities, raising retirement age and stricter mortgage rules, in order to promote the economic growth and deal with the aging population in Finland.

The report pointed out that the rising cost of pensions and healthcare for an aging population is one economic to Finland, suggesting higher retirement age and an end to part-time retirement.

On to the Netherlands and significant decision from DutchNews.nl:

The Netherlands to vote against approving the EU’s 2012 accounts

The Netherlands will join Britain and Sweden in voting against giving approval to the EU’s accounts for 2012 because of an increase in mis-spending, finance minister Jeroen Dijsselbloem said on Thursday.

Dijsselbloem told MPs there are still too many uncertainties about the accounts and the error rate in the EU’s books has risen from 3.9% in 2011 to 4.8% in 2012. This is equivalent to €6.7bn being wrongly spent.

The problems centre on funds allocated to reducing the prosperity gap between different members states and money earmarked for rural development. In some cases, projects were not put out to tender properly or they were ineligible for grants under Brussels’ rules.

‘We cannot simply let this happen,’ Dijsselbloem, who also chairs the influential Euro Group, is quoted as saying by news agency ANP.

Germany next and higher hopes from Deutsche Welle:

German government revises growth forecast slightly upwards

The German government has confirmed the Economic Ministry’s 2014 growth outlook, saying that GDP will expand slightly more this year than previously predicted. It said the labor market would benefit as well.

German cabinet ministers on Wednesday adopted the 2014 Annual Economic Report, which included slightly higher expectations for growth in the course of this year.

The government said it expected the national economy to expand by 1.8 percent in 2014, marginally up from an earlier prediction of 1.7 percent. The report said the growth rate would increase to 2 percent next year.

Commenting on the report, conservative lawmakers in Berlin said everything should be done to avoid jeopardizing the growing economic momentum amid problems caused by the country’s energy transition and the aftermath of the protracted eurozone debt crisis.

And from Deutsche Welle, another chorus of that old. . .:

DW exclusive: Germans would vote just like the Swiss on curbing immigration

  • A survey commissioned by Deutsche Welle has found the majority of German citizens would vote for limiting immigration. The survey follows a decision in Switzerland to limit its annual immigration from the EU.

If Germans were to vote in a referendum on limiting immigration to Germany nearly half would support the measure (48 percent ) while almost as many (46 percent) would oppose it, according to a DW commissioned survey.

On behalf of DW, opinion research institute infratest dimap surveyed 1,001 Germans over the age of 18 on February 11-12, 2014. Three percent of those surveyed were undecided.

The survey showed that a particularly high number of Eurosceptic Alternative for Germany (AfD) party members (84 percent) would support an immigration limit. Members of Chancellor Angela Merkel’s Christian Democrats and its sister party the Christian Social Union voted 51 percent for a limit.

Paris next, and plutocratic woes from France 24:

French billionaire senator Dassault loses immunity over graft claims

The French Senate stripped billionaire industrialist senator Serge Dassault of parliamentary immunity on Wednesday, clearing the way for him to face possible criminal charges for allegedly buying votes.

The decision by a Senate committee means that UMP senator Dassault, 88, can be taken into custody for interrogation by judges investigating allegations dating from his 14 years as mayor of Corbeil-Essonnes, a Paris suburb.

The judges suspect Dassault of operating an extensive system of vote-buying that influenced the outcome of three mayoral elections in Corbeil in 2008, 2009 and 2010, which were won either by Dassault or by his successor and close associate Jean-Pierre Bechter, the current mayor of Corbeil.

Dassault is ranked by Forbes magazine as France’s 4th richest man and the 69th richest in the world, with an estimated fortune of 13 billion euros. He heads Dassault Group, which owns France’s prestigious conservative newspaper “Le Figaro” and holds a majority stake in Dassault Aviation, which makes business and military aircraft including the Rafale fighter jet.

Europe Online rakes it in:

Societe Generale nearly triples profits in 2013

France’s second-biggest bank Societe Generale nearly tripled its profits in 2013, helped by higher earnings in both its retail and corporate and investment banking units, the group said Wednesday.

Net income shot up to 2.2 billion euros (3 billion dollars), from 774 million euros in 2012. Group revenues were up 4.3 per cent to 22.8 billion euros.

Societe Generale ended the year on a high note, with fourth-quarter profits of 322 million euros far exceeding analysts’ expectations.

TheLocal.fr parks it:

French taxi drivers call for ‘indefinite strike’

The announcement will not go down well with Parisians or tourists but angry taxi drivers in France are clearly not willing to lie down without a fight. On Tuesday they called for an “indefinite strike”, saying they will take action “anytime, anywhere”.

Paris taxi drivers continued to vent their anger on Tuesday when they brought traffic to a standstill in the centre of the French capital leading to the arrest of dozens of drivers. The trouble comes as unions called for ongoing industrial action.

On Tuesday evening as cabbies fronted up to police at Place de La Concorde union leaders called for an indefinite strike, which could see wildcat blockades and go slows continue for the foreseeable future.

In a joint statement drivers’ unions said they “reserved the right to take action at any place at any time.”

Switzerland, and that old familiar tune from TheLocal.ch:

Populists urge more immigration controls

The Swiss People’s Party (SVP), which spearheaded the initiative narrowly accepted by Swiss voters to limit immigration from the European Union, is set on Friday to push for for more measures to tighten immigration as tensions mount in Switzerland over the issue.

The initiative against massive immigration, backed by 50.3 percent of the electorate, calls for an end to the freedom of movement agreement between Switzerland and the EU and the imposition of quotas.

But the deal is fuzzy on details. It does not, for example, stipulate how many foreigners would be accepted into the country and through what criteria the level of needed workers would be selected for different sectors of the economy.

The SVP is being prodded to clarify how it expects the quota system to work.

Spain next, and an affirmative declaration from thinkSPAIN:

Economy starts to grow as GDP predictions more optimistic

SPAIN’S Gross Domestic Product (GDP) will increase by 0.9 per cent this year and 1.9 per cent next year – signs that the economy is growing once again, according to figures released by the BBVA bank.

This will be enough for creation of ‘sustainable’ employment to begin, says the entity, but it warns that jobless figures are unlikely to drop below 25.6 per cent this year and 24.8 per cent in 2015.

Consumer spending in Spain is expected to rise in 2014 by 0.9 per cent and by 1.3 per cent next year, with lack of national demand gradually ceasing to pose barriers to micro-economic growth over the next two years and ongoing efforts in increasing exports will set the scene for the economy to begin its recovery, the BBVA reveals.

ANSAmed has a harsher take:

Spain: fewer jobs, lower wages two years after reform

  • Trade unions and ILO slam reform, OECD praises it

Two years to the day from Spain’s last labor reform, there are fewer jobs, more long-term unemployed, and fewer people paying into social security.

A negative balance according to trade unions and a ‘’not very encouraging’‘ picture according to the Savings Banks Foundation (Funcas), but the government says the reform is beginning to have positive effects within the context of a recovering economy.

Jobless benefit claims totaled 4,599,829 people as of January 2012, one month before the labor reform was enacted. Two years later, that number is at 4,814,435, up by 241,606 people or +4.6% as of January 2014. In the same period, the number of workers paying into the social security fund dropped by 769,627 people, or -4.5%, to a total of 16,176,610 people. A quarterly report by national statistics bureau INE showed 5,273,600 were unemployed when the reform was enacted in the fourth quarter of 2011, a number that rose to 5,896,300 in the same period of 2013, equal to 622,700 more unemployed people (+11.8%) in two years.

ANSAmed again, and a comedown for high-flyers:

Spain: Iberia; agreement with pilots, salaries down 14%

  • The deal provides for a salary freeze till 2015

Spanish carrier Iberia and pilots’ union Sepla have reached an agreement in principle ending years of conflict which provides for salary cuts by at least 14%.

The agreement also introduces ‘’permanent structural changes’‘ at the company to cut costs and allow the development of the airline and its low-cost company Iberia Express, Iberia’s Iag group said in a statement to the market authority committee on Thursday.

The deal provides for a salary freeze till 2015, previously rejected by pilots, and from that date onwards salary increases depending on the company’s results.

From El País, the bankster blues:

Failed lender CAM wants prison for two of its former executives

  • Bank’s lawyer seeks six to 10 years for ex-director general and oversight committee chief
  • Attorney accuses them of inflating expense accounts and favoring own interests

The lawyer of failed lender Caja de Ahorros del Mediterráneo (CAM), appointed by the government’s bank bailout fund, the FROB, wants prison terms for two of the bank’s former top executives.

Former director general Roberto López Abad and former chairman of the Valencian savings bank’s oversight committee, Juan Ramón Avilés, face the prospect of between six and 10 years in prison for misappropriation of funds and deliberate mismanagement.

The state prosecutor is seeking shorter jail terms for the two men.

And the social counterrevolution prevails, via TheLocal.es:

‘New abortion law to stay’: Spanish lawmakers

A controversial plan to ban women in Spain from freely opting for abortions overcame a key hurdle on Tuesday when lawmakers voted in secret against a motion to scrap the reform.

The plan has outraged pro-choice groups and brought thousands of people out onto the streets to protest, but has sparked division even within the conservative ruling party.

Lawmakers rejected a proposal submitted by the opposition Socialists to “immediately withdraw” the bill by 183 votes to 151. Six lawmakers abstained.

The ruling Popular Party (PP) holds a strong majority in parliament, but the abortion reform, supported by the Roman Catholic Church, has been delayed amid dissent by senior party figures.

And another sign of the times from El País:

House sales fall for third year in a row

  • Property purchases hit record low in December

The Spanish housing market remained locked in a trough in 2013, six years after a massive property bubble burst.

According to figures released by the National Statistics Institute (INE), the number of homes sold last year, excluding public housing schemes, fell 1.2 percent from a year earlier to 276,600 after falling 11.3 percent in 2012 and 18.2 percent in 2011. During the height of the boom over 800,000 houses were exchanged in a year. In December alone sales fell 11.0 from a year earlier to a new monthly record low of 18,619.

The only respite the market has had since boom turned to bust was in 2010 when sales increased 4.8 percent, driven by the purchase of new homes before the introduction of a hike in value-added tax.

And from TheLocal.es, an unconscionable demand:

Cancer drug maker wants 4000% Spanish price hike

Drug manufacturer Aspen Pharmacare has reportedly threatened to stop selling its leukaemia and ovarian cancer treatments in Spain if Health Minister Ana Mato refuses to raise fixed purchase prices by up to 4,000 percent.

According to online daily El Confidencial Digital, the habitual bargaining between Aspen and the Ministry of Health has taken a turn for the worse.

The South African manufacturer of generic medicines is currently undergoing a rapid expansion in international markets.

The company is allegedly insisting on massive price increases for a number of drugs but the Ministry has flatly refused.

On to Lisbon with EUbusiness:

Portugal passes new IMF rescue program review

The International Monetary Fund approved Wednesday the disbursement of 910 million euros ($1.24 billion) to Portugal after the country passed the 10th review of its bailout program.

The disbursement took the country a step closer to the May 2014 end of the European Union-IMF rescue program, with the country’s finances stabilizing.

But the IMF urged the Portuguese government not to give in to pressure to increase public spending and to keep pushing ahead on structural reforms to its finances.

“The Portuguese authorities’ implementation of their Fund-supported program has been commendable,” said IMF Deputy Managing Director Nemat Shafik in a statement.

And on to Italy with the New York Times:

Italy’s Prime Minister Announces Resignation Amid Party Revolt

Prime Minister Enrico Letta of Italy, whose weak coalition government has come under increasing criticism, announced his resignation on Thursday night after his own Democratic Party staged a dramatic insurrection and voted to replace him with the party’s new leader, Matteo Renzi.

The Democratic Party is the largest member of Italy’s coalition government, and the party’s decision to dump Mr. Letta will likely have to be put to a confidence vote in Parliament. Mr. Letta will meet with his cabinet on Friday morning and then present his resignation letter to Italy’s president, making way for Mr. Renzi, 38, to become Italy’s youngest prime minister.

Mr. Renzi, the mayor of Florence who recently won a nationwide primary to become leader of the Democratic Party, has a reputation for boldness and has long been considered Italy’s most promising young politician. He has spoken repeatedly about the need for sweeping political and economic changes. But few analysts foresaw that he would lead a revolt against his party’s sitting prime minister.

AGI has a skeptical take from the populist right:

M5S co-founder doubtful government will last until 2018

M5S co-founder, Gianroberto Casaleggio says he is doubtful the government can last until 2018: “I see a high instability situation. A 2018 forecast is very risky”.

The statement was made at the Termini train station, while Casaleggio was waiting for a train to Milan. Asked by journalists about the likelihood of a government lead by Matteo Renzi to survive until 2018, Casaleggio added: “One can never tell, but the beginning of this year seems to be marked by a great political instability”.

From TheLocal.it, austerian rigor:

Italians drop holiday plans as crisis bites

The number of trips taken by Italians since the economic crisis began in 2008 has plummeted by 48.6 percent, new statistics show.

Last year Italy’s resident population took just over 63 million trips with overnight stays, whether for work or holiday, the country’s statistics agency Istat said this week.

With a population of nearly 60 million one trip per person may seem like a fair ratio, but a broader look shows that Italians have nearly halved travel in recent years.

They took 48.6 percent fewer holidays or work trips last year than five years’ previously, continuing a year-on-year decline.

EUbusiness divides:

Catalonia, Scotland, Venice? Italian party eyes autonomy

The head of Italy’s Northern League on Wednesday said he supported the autonomy bids of Catalonia from Spain and Scotland from Britain, and hoped that the Venice region “will be next on the list”.

Matteo Salvini said two other regions of northern Italy — Lombardy and Piedmont — could also follow suit, adding that it was time to reduce the powers of the European Union and return to “national and regional sovereignty”.

Salvini also said that plans for a coalition of far-right parties including his own at the European Parliament after elections in May were “well advanced”.

The coalition “will not be Eurosceptic but will be in favour of a different Europe,” he said, adding however that he continues to support an abandonment of the euro. “The euro has massacred our economy,” he said.

TheLocal.it inhales:

Italy relaxes cannabis penalties

Italy’s Constitutional Court on Wednesday struck down an anti-drug law from 2006 that imposed tough sentencing for the sale and possession of cannabis, putting it on the same level as heroin and cocaine.

The court declared “illegitimate” the law, which imposed sentences of six to 20 years for trafficking in cannabis, whereas the previous law which is now back in force included sentences of between two and six years.

Leftist lawmakers and civil society representatives immediately hailed the court ruling, saying it would help ease overcrowding in Italian prisons.

The scrapping of the law could affect 10,000 detainees who are in pre-trial detention or serving time and could see a revision of their sentences and their release.

After the jump, deeper misery in Greece, Blackwater creator’s African dreams, Venezuelan violence, Argentine inflation, Indian populist payoffs, parliamentary riots, and bankster woes, Thai turmoil prolonged, Aussie bubble alarms, Chinese marketeering and GMOs, Japanese desperate measures, environmental woes, and a jam-packed Fukushimapocalypse Now! Continue reading

Quote of the day: Shirley Temple, diehard GOPer


Plus a couple of historical bonuses. . .

From veteran journalist Greg Mitchell, writing at his blog:

“[M]y closest connection to her came as one of the featured celebs in my book The Campaign of the Century. The book explores the riotous and highly influential campaign for governor of California in 1934 waged by muckraking writer Upton Sinclair—leading one of the greatest populist movements ever, EPIC (for End Poverty in California).

He swept the Democratic primary and would have won the race if not for the groundbreaking union of big business leaders, conservative GOPers and Dems, religious leaders, and most of the Hollywood moguls. Irving Thalberg even went out and created the first attack ads for the screen, faking anti-Sinclair newsreels.

Anyway: the book also shows how Shirley Temple, then the country’s most popular film star, was wooed by the right-wing moguls to get her—at age 5—to come out against Sinclair and endorse Frank Merriam, the dull incumbent. It’s a pathetic, if funny, tale, and ultimately she, sort of, did go along with that. “It may hearten the cause of conservatism,” a wire service reported, “to know that Shirley Temple has decided, after grave deliberation, that she disapproves of the Sinclair EPIC philosophy and is backing her opposition with a day’s salary, even if she can not with a vote.” Unstated was that this day’s pay was not a request but a demand from the studio. Jean Harlow had recently caved in the same manner. Katharine Hepburn also went along with it.

They even made the tyke sit on Merriam’s lap and say she was going to “vote for the boss.”

And so a lifetime as a key Republican was set by, or for, Shirley Temple. When she ran for Congress in 1967, her campaign managers, the legendary team of Clem Whitaker and Leone Baxter, were the same pair who helped thwart Upton Sinclair in 1934.

Here’s the infamous ad, which played to the packed movie houses of Depression-era California and built the stage now occupied by Fox News, the Koch Brothers, and others of their duplicitous ilk:

The First “Attack Ads” On the Screen

Mitchell’s program notes:

The first e-book and a new print edition of my award-winning book “The Campaign of the Century” have just appeared in December 2011. You can find ithem easily at Amazon. Winner of the Goldsmith Book Prize, it tells the story of the incredible 1934 race for governor of California by muckraking Socialist author Upton Sinclair–and how it took the invention of modern media politics to defeat him and his mass movement after he swept the Democratic primary. The campaign also marked Hollywood’s first all-out entry into politics, including the first use of the screen to defeat a candidate–via faked newsreels (which I discovered 20 years ago) produced by MGM’s legendary producer Irving Thalberg. “Nothing is unfair in politics,” he explained later. Studio bosses, led by Louis B. Mayer, threatened to move to Florida if Sinclair was elected. Most of them also docked all of their actors and workers a day’s pay for contributions. Everyone from Katharine Hepburn and James Cagney to Will Rogers and Charlie Chaplin got swept up in it. The outrages of the right directly inspired the birth of the modern liberal-dominated Hollywood we know today. The book, winner of the Goldsmith Book Prize, also details the amazing EPIC (End Poverty in California) movement and the creation of all of the modern campaign aspects and dirty tricks–including hiring outside “spin doctors” to manage campaigns–that put the original “Mad Men” in charge.

You can order the e-book (for all phones, iPad, Kindle, more) or print edition at Amazon. Contact me at: epic1934@aol.com Credit for this video: Lyn Goldfarb and Blackside.

To give a sense of the politics of the day and its openly racist character, consider an editorial cartoon of the times, with a horde of folks, two stereotypically depicted black males in the lead, surging across the California borders, summoned by Sinclair’s call:

BLOG SInclair

Don’t confuse Samuel L. Jackson, Mr. Journalist


Especially don’t confuse whim with another African American action, as a Los Angeles television anchor discovered.

First the context, via the Milwaukee Journal-Sentinel:

Samuel L. Jackson taught a Los Angeles TV reporter a valuable — and, for the rest of us, very entertaining — lesson Monday: Don’t mess with Samuel L. Jackson.

Sam Rubin, a veteran L.A. TV entertainment news reporter, was doing a remote interview with Jackson Monday on KTLA-TV when he asked the actor and TV pitchman about his commercial during the Super Bowl. Looking stunned momentarily, Jackson quickly realized that Rubin was asking about a spot featuring another African-American actor.

“You’re as crazy as the people on Twitter. I’m not Laurence Fishburne!” Jackson told him. “…We don’t all look alike!”

When Rubin tried to steer the conversation back to Jackson’s new movie, “Robocop,” the actor refused to let him off the hook: “Hell no!…I’m the other guy. I’m the other guy….the ‘what’s in your wallet?’ black guy.”

On to the main event, via vlogger BossOfYheNawl214:

Program note:

KTLA News Reporter Sam Rubin mistakens Samuel L. Jackson for another Black actor, Laurence Fishburne. Sam Jackson sets the record straight to an embarrased reporter.

So, dude, what’s in your wallet?

Humans and landscapes, a complex interaction


On his UC Berkeley faculty website, archaeologist Patrick V. Kirch lists his specialties as “Prehistory and ethnography of Oceania, ethnoarchaeology and settlement archaeology, prehistoric agricultural systems, cultural ecology and paleoenvironmentalism, ethnobotany and ethnoscience, development of complex societies in Oceania.”

In this presentation Dr. Kirch applies the ideas of the cultural landscape developed by an earlier Berkeley geographer, Carl O. Sauer, to human interaction with the landscapes of three Polynesian cultures, those of Mangareva, Mo’orea, and Hawaii.

What kept the Polynesian Islands so green? In part, the phosphorus blown in the winds in dust from China and Mongolia.

But some islands, like those of the Mangareva archipelago and Easter Island, lay in regions missed by the winds from Asia, leaving one other source of phosphorus and other key soil nutrients, populations of fish-eating, guano-pooping sea birds.

Todat the once-forested islets of Mangareva, the smallest, most barren, and most ancient of the three, today resemble a nearly barren desert islands, landscapes created in large part by the relatively late arrival of Polynesians who eliminated or decimated the once varied native bird populations.

Mo’orea is a much younger island, with the human population living in intimate relationship with an evolving and eroding landscape, shifting settlement as new soils are exposed and older soils become depleted.

And then there’s Hawaii, a still-growing landscape but nonetheless precarious landscapes populated by an emerging state society that had neared the carrying capacity of the delicate landscape when Europeans arrived, along with the diseases that laid waste to the Polynesians.

From University of California Television, an important reminder of just how delicate our world really is:

Island Landscapes or Sauer Among the Polynesians

Program notes:

Geographer Carl Ortwin Sauer demonstrated through his work and writings that landscapes are the long-term contingent product of interactions between natural processes and cultural forces. In this lecture, Patrick Kirch, Professor of Anthropology and Integrative Biology, University of California, Berkeley, applies the concept of landscape to the islands of Polynesia. Drawing upon recent multi-disciplinary research, Kirch shows how certain natural properties of islands shaped the course of cultural and social evolution of island peoples, at the same time that cumulative effect of human actions irreversibly altered island environments. Series: “UC Berkeley Graduate Council Lectures” [2/2014]

Headlines of the day II: EconoPoliSinoFuku


Opening our compendium of headlines fromn the economic, political, and environmental developments, a Trans-Pacific Panic from Techdirt:

USTR Finally Realizing Its All Encompassing Secrecy May Be A Problem, Calls Frantic Meeting For All ‘Cleared’ Lobbyists

  • from the you’re-doing-it-wrong dept

It’s been funny for years watching the USTR continue to repeat the same laughable line about how they’ve had “unprecedented transparency” concerning the Trans Pacific Partnership (TPP) agreement — an agreement that is still completely secret, other than a couple chapters leaked to Wikileaks. Here’s a hint: if the text of the agreement is only available thanks to Wikileaks, you’re not being transparent, precedented or not. Even the NY Times slammed the USTR’s lack of transparency, and multiple members of Congress have been arguing that they’re not at all comfortable with the lack of transparency from the USTR. Because of this, it seems that the USTR’s desire for fast track authority, which would let it route around Congressional review, is on life support and close to dead.

Given that, it appears that the USTR is in panic mode, and has frantically called an all day meeting for all “cleared advisors” (i.e., the corporate representatives who actually do get to see the document) concerning the whole transparency issue.

From the New York Times, double trouble:

Payroll Data Shows a Lag in Wages, Not Just Hiring

For the more than 10 million Americans who are out of work, finding a job is hard. For the 145 million or so who are employed, getting a raise is even harder.

The government said on Friday that employers added 113,000 jobs in January, the second straight month of anemic growth, despite some signs of strength in the broader economy. The unemployment rate inched down in January to 6.6 percent, the lowest level since October 2008, from 6.7 percent in December.

But the report also made plain what many Americans feel in their bones: Wages are stuck, and barely rose at all in 2013. They were up 1.9 percent last year, or a mere 0.4 percent after accounting for inflation. Not only was that increase even smaller than the one recorded in 2012, it was half the normal rate of wage gains in the two decades before the last recession.

More from Deutsche Welle:

US employment figures fail to thrill analysts

  • Fresh figures from the US Labor Department have shown employers have hired far fewer workers in January than expected. Analysts viewed this as a loss of momentum in the national economy after an already weak December.

Meager job gains towards the end of last year were barely improved upon in January, the US Labor Department reported Friday.

The latest monthly figures showed nonfarm payrolls rose only by 113,000, with 185,000 penciled in by analysts.

With strong job increases in construction, cold weather was not a major factor for the slow pick-up, nurturing fears of a general loss of momentum of the national economy.

CNBC diversifies:

Wealthy avoiding stocks, buying art

Art often imitates stocks—at least when it comes to prices.

But so far this year, stock markets are down and art is up.

Sotheby’s two days of Impressionist, Modern and Surrealist sales racked up £215.8 million (more than $345 million), the highest ever for a sale series in London. All its lots sold. The top was Camille Pissarro’s 1897 painting “Boulevard Montmartre, Matinee de Printemps,” which went for £19.7 million, or about $32 million—nearly double its top presale estimate.

Christie’s had a good week, too, selling Juan Gris’ 1915 still life “The Checked Tablecloth” for $56.7 million. The previous record for a Gris was $28 million. The Impressionist and Modern evening sale totaled $288 million.

Collectible cars are also on a tear. A 1957 Ferrari Testarossa sold in Britain this week for $40 million. And a series of auctions in Paris set a spate of new records for certain cars. RM Auctions gaveled down on a 1955 Jaguar D-Type for about $5 million.

The Project On Government Oversight notes the exceptional:

Head of SEC Given Waiver to Oversee Past Client

Mary Jo White, the head of the Securities and Exchange Commission (SEC), will be allowed to oversee her former client, Credit Suisse, according to a new ethics waiver the U.S. Office of Government Ethics posted to its website this week.

Before coming to the SEC, White, a former attorney at Debevoise & Plimpton, represented Wall Street giants such as UBS and JPMorgan. President Obama nominated her to head the SEC in January 2013.

Her waiver underscores the complications that can often arise when a former white-collar defense attorney becomes a top regulator overseeing an industry she used to represent.

According to the waiver, signed by the SEC’s ethics officer on Feb. 6, White had been prohibited from overseeing Credit Suisse since joining the agency because she provided legal services to the bank during her stint at Debevoise. In the two years prior to her SEC nomination, she “billed in total less than one hour (0.5 hours in January 2012 and 0.4 hours in February 2012) for work on Credit Suisse matters,” the waiver says.

Wrist-slappage from the Los Angeles Times:

Gov. Brown, Newsom to get warning letters from ethics agency

Gov. Jerry Brown and Lt. Gov. Gavin Newsom are among 40 officials receiving warning letters from the state ethics agency after their campaigns received improper contributions from a lobbying firm, representatives said Friday.

A firm headed by Kevin Sloat has reached a tentative agreement with the state Fair Political Practices Commission to pay more than $100,000 in fines involving violations of California’s campaign finance laws, according to sources familiar with the investigation who are not authorized to speak publicly.

The firm Sloat Higgins Jensen and Associates provided prohibited contributions, including expensive wine and cigars, at fundraisers held for elected officials at his Sacramento mansion.

Top-heaviness from The Wire:

Universities Are Cutting Tenured Faculty While They Load Up on ‘Non-Academic’ Administrators

As the cost of college remains exorbitant, recent trends indicate schools in the United States are trading tenured professors for non-academic administrative staff. It’s pretty clear where American colleges have their priorities, and it’s not in academics. Students are paying more to attend schools that are spending less to teach them, and instead spending that tuition money on administration.

According to a new report from the New England Center for Investigating Reporting, “the number of non-academic administrative and professional employees at U.S. colleges and universities has more than doubled in the last 25 years.” Meanwhile, full-time tenured faculty positions are at the lowest rate in 25 years, while the prevalence of adjunct professors – part-time, non-tenured professors – is at its highest. In fact, according to the American Association of University Professors, “more than three of every four (76 percent) of instructional staff positions are filled on a contingent basis,” meaning without tenure.

The reason that non-tenured professors are so much more popular than tenured faculty is simple: they’re cheaper. Adjunct professors, especially, make very little. Most are paid on a per-course basis, making somewhere between $2,000 and $5,000 for each course taught.

Bloomberg Businessweek bemoans:

Mamas, Don’t Let Your Babies Be Born at AOL

AOL Chief Executive Tim Armstrong ruffled more than a few of his employees’ feathers when he disclosed this week that two AOL workers’ “distressed” babies had whacked the company with $2 million in medical bills.

The costly children were cited—along with more than $7 million in costs from the Affordable Care Act—as the reason AOL (AOL) changed its 401(k) account match to an annual lump sum payment. Workers who aren’t on the payroll at year’s end will forfeit AOL’s 3 percent matching contribution to the accounts. IBM (IBM) made a similar change in 2012. If you plan to quit, management thinking goes, forget about collecting our share of your retirement savings.

Many employees didn’t react well to either bit of news, according to news reports. First, there’s the financial blow to workers, who will lose 401(k) funds if they leave AOL, as well as miss the opportunity to have the company’s match bolster their financial returns over a full year. There’s also the shock that accompanies hearing your boss tag a colleague’s difficult pregnancy and her newborn child as the reason your retirement plan was cut.

Stark realization from the Exchange:

Why Walmart is getting too expensive for the middle class

Walmart is struggling with weak sales and an underperforming stock price. The company recently cut its profit outlook, with analysts polled by S&P Capital IQ expecting just a 2.1% gain in sales when Walmart reports its quarterly earnings on February 20. That’s for a company that has consistently outcompeted nearly every other retailer except, perhaps, Amazon. Walmart’s stock has suffered, rising just 4% during the past year, while the S&P 500 index rose 17% during the same timeframe.

Walmart, though known as a discounter, may be too expensive for millions of shoppers finding themselves more pinched — not less — as the pace of the so-called recovery accelerates. “Their consumer is shifting downward,” says Joe Brusuelas, chief economist for financial-data firm Bloomberg LP. “The competition for Walmart is changing. It’s now dollar stores.”

Where some of their money went, via the Los Angeles Times:

Walton group funds more charter schools in L.A. than elsewhere

Los Angeles charter schools have been the largest recipients of funding from the foundation associated with the family that started Wal-Mart, according to figures released Wednesday.

Since 1997, the Arkansas-based Walton Family Foundation has distributed $35.9 million in start-up grants to 159 L.A.-area charters. By comparison, Walton has supported the creation of 125 charters in New York City.

Last year alone, the foundation made grants to 23 new L.A. schools, totaling more than $4.69 million, that were set to open in the near future. Both the annual and cumulative totals are higher than for any other region.

Charter schools are independently managed, free from some rules that govern traditional schools and outside the direct control of the local Board of Education. In California, local school boards are required by law to authorize and oversee all financially viable and academically sound charter school petitions. No school system has more charters than the L.A. Unified School District.

More from Slashdot:

25% of Charter Schools Owe Their Soul To the Walmart Store

Among the billionaires who helped Bill Gates pave the way for charter schools in WA was Walmart heiress Alice Walton. The Walton Family Foundation spent a whopping $158+ million in 2012 on what it calls ‘systemic K-12 education reform,’ which included $60,920,186 to ‘shape public policy’ and $652,209 on ‘research and evaluation.’

Confirming the LA Times’ speculation about its influence, the Walton Foundation issued a press release Wednesday boasting it’s the largest private funder of charter school ‘startups,’ adding that it has supported the opening of 1 in 4 charter schools in the U.S. since 1997 through its 1,500 ‘investments.’

In These Times fuels around:

Angering Environmentalists, AFL-CIO Pushes Fossil-Fuel Investment

Labor’s Richard Trumka has gone on record praising the Keystone pipeline and natural gas export terminals.

Trumka’s comments come at a sensitive time, as trade unions and leading environmental groups have sought to build political partnerships with each other in recent years.

The nation’s leading environmental groups are digging their heels in the sand by rejecting President Obama’s “all-of-the above” domestic energy strategy—which calls for pursuing renewable energy sources like wind and solar, but simultaneously expanding oil and gas production.

But it appears the AFL-CIO, the nation’s largest labor federation, won’t be taking environmentalists’ side in this fight, despite moves toward labor-environmentalist cooperation in recent years. On a recent conference call with reporters, AFL-CIO President Richard Trumka endorsed two initiatives reviled by green groups: the Keystone XL pipeline and new natural gas export terminals.

“There’s no environmental reason that [the pipeline] can’t be done safely while at the same time creating jobs,” said Trumka.

In response to a question from In These Times, Trumka also spoke in favor of boosting exports of natural gas.

Bad news from the Associated Press:

Moody’s downgrades Puerto Rico credit rating

Moody’s Investors Service has downgraded Puerto Rico’s credit rating to junk status.

The announcement Friday by the credit rating agency comes just days after Standard & Poor’s cut the U.S. territory’s debt to junk as well.

Moody’s says its decision was based in part of not seeing sufficient economic growth to help reverse negative financial trends.

News from north of the border via South China Morning Post:

Exclusive: Vancouver facing an influx of 45,000 more rich Chinese

  • Over 60pc seeking Canadian wealthy investor visa are from China and want to live in British Columbia’s main city, data shows

A South China Morning Post investigation into Canada’s immigration programme for millionaire investors has revealed the extraordinary extent to which it has become devoted to a single outcome: Helping rich mainland Chinese settle in Vancouver.

Immigration Department data obtained by the Post suggests there was a backlog of more than 45,000 rich Chinese waiting for approval of their applications to move to British Columbia as of January last year. They are estimated to have a minimum combined wealth of C$12.9 billion (HK$90 billion).

And a complication, also from South China Morning Post:

Canada floats new citizenship rules that could affect thousands of Chinese

  • Longer abode requirement and demand for tax returns may affect thousands of Hongkongers and mainlanders granted permanent residency

Canada has unveiled sweeping reforms that would require immigrants spend more time as permanent residents, file tax returns and sign an undertaking to continue living in the country if they want to become citizens.

The proposed redrawing of the Citizenship Act, unveiled on Thursday, would lengthen the period of residency required from three years to four years.

Language proficiency requirements would be extended to children as young as 14 and adults as old as 64, and penalties for fraudulent applications toughened.

China is the biggest single source of applications for Canadian permanent residency and among those who may be affected by the changes are the 110,813 mainland Chinese and 3,305 Hongkongers granted permanent residency between 2010 and the middle of last year.

And a global alarm from Spiegel:

Troubled Times: Developing Economies Hit a BRICS Wall

  • Until recently, investors viewed China, Brazil and India as a sure thing. Lately, though, their economies have shown signs of weakness and money has begun flowing back to the West. Worries are mounting the BRICS dream is fading.

It was 12 years ago that Jim O’Neill had his innovative idea. An investment banker with Goldman Sachs, he had become convinced following the Sept. 11, 2001 terror attacks that the United States and Europe were facing economic decline. He believed that developing countries such as China, India, Brazil and Russia could profit immensely from globalization and become the new locomotives of the global economy. O’Neill wanted to advise his clients to invest their money in the promising new players. But he needed a catchy name.

It proved to be a simple task. He simply took the first letter of each country in the quartet and came up with BRIC, an acronym which sounded like the foundation for a solid investment.

O’Neill, celebrated by Businessweek as a “rock star” in the industry, looked for years like a vastly successful prophet. From 2001 to 2013, the economic output of the four BRIC countries rose from some $3 billion a year to $15 billion. The quartet’s growth, later made a quintet with the inclusion of South Africa (BRICS), was instrumental in protecting Western prosperity as well. Investors made a mint and O’Neill’s club even emerged as a real political power. Now, the countries’ leaders meet regularly and, despite their many differences, have often managed to function as a counterweight to the West.

On to Europe and uber-bankster empowerment from Reuters:

ECB to gain far-reaching powers as euro zone banks’ supervisor

The European Central Bank will attain significant powers over the euro zone’s commercial banks once it becomes their supervisor later this year, including withdrawing bank licences and assessing acquisitions, it said on Friday.

From November, the ECB will supervise directly around 130 of the bloc’s largest lenders as part of a broader push towards closer integration of Europe’s banks that aims to create a more level regional playing field for the sector.

The region’s other 5,900 or so banks will remain under the brief of national supervisors, though the ECB will have powers to intervene if it deems necessary.

“(The ECB) will be exclusively competent to grant and withdraw authorizations for credit institutions and to assess acquisitions of qualifying holdings in all credit institutions,” it said in a draft document that laid out how the ECB and national supervisors will cooperate under the new Single Supervisory Mechanism (SSM).

Channel NewsAsia Singapore tosses in a monkey wrench:

Germany sends ECB’s crisis-killing action to EU court

Germany’s highest court expressed doubts on Friday about the European Central Bank’s bond-buying programme, credited with stopping the eurozone crisis, and sent the case to the European Court of Justice.

Some analysts suggested that the decision might turn out to be helpful to the central bank.

Back in September 2012, the Constitutional Court had rejected legal challenges by a group of eurosceptics to the two key eurozone crisis tools — the European Stability Mechanism (ESM) and the European fiscal pact.

As a result, German President Joachim Gauck was able to sign those two crisis tools into law.

But the eurosceptics also filed a last-minute challenge to the ECB’s OMT bond purchase programme, arguing that it amounted to monetisation of sovereign debt and overstepped the central bank’s mandate.

The London Telegraph-ic take:

German court parks tank on ECB lawn, kills OMT bond rescue

  • Doubtful whether ECB’s back-stop scheme for bonds can be implemented if Europe’s debt crisis blows up again

Germany’s top court has issued a blistering attack on the European Central Bank, arguing that its rescue plan for the euro violates EU treaty law and exceeds the bank’s policy mandate.

The tough language leaves it doubtful whether the ECB’s back-stop scheme for Spanish and Italian bonds can be implemented if Europe’s debt crisis blows up again, and greatly complicates any future recourse to quantitative easing if needed to head off Japanese-style deflation.

And an affirmation from EUbusiness:

ECB insists bond buying programme ‘within mandate’

The European Central Bank insisted on Friday that its contested OMT bond buying programme did not breach its rules, after Germany’s constitutional court expressed some scepticism.

“The ECB takes note of the announcement made today by the German constitutional court. The ECB reiterates that the OMT programme falls within its mandate,” the central bank said in a short statement.

On to Britain and a disappointment from Bloomberg:

U.K. Manufacturing Rises Less Than Forecast as Growth Eases

U.K. factories increased production by less than forecast in December, suggesting manufacturing is set for steady rather than runaway growth this year.

Output rose 0.3 percent from November, the Office for National Statistics said today in London. That compares with the 0.6 percent median of 26 estimates in a Bloomberg survey. Industrial production, which also includes utilities and mines, climbed 0.4 percent, also less than predicted.

While the U.K. economy expanded at the fastest rate since 2007 last year, industry surveys on services and manufacturing this week suggested the pace may have eased at the start of 2014. The Bank of England kept its key policy rate at a record-low 0.5 percent yesterday, while a report from the National Institute of Economic and Social Research today says consumer spending and a buoyant housing market will drive growth.

The Guardian has guilty knowledge:

Bank of England ‘knew about’ forex markets price fixing

  • Notes from 2012 meeting reportedly show key Bank officials were told of rival currency dealers’ sharing of customer orders

The Bank of England has been dragged into the mounting controversy over allegations of price fixing in the £3tn-a-day foreign exchange markets after it emerged that a group of traders had told the Bank they were exchanging information about their clients’ position.

The latest twist in the unfolding saga – already the subject of investigations by regulators around the world – puts the focus on a meeting between key officials at the central bank and leading foreign exchange dealers in April 2012, when they discussed the way they handled trades ahead of the crucial setting of a benchmark in the prices of major currencies. This benchmark is used to price a wide variety of financial products and is the subject of regulators’ attention amid allegations that traders at rival banks were sharing information about their orders from clients to manipulate the price.

New Europe complicates frack-tiosly:

Shale Gas Fear Leaves UK Vulnerable

Cuadrilla Resources, one of the energy firms hoping to exploit the UK’s shale gas resources, has announced two new exploration sites in Lancashire. But drilling for shale gas in Britain is going to be extremely controversial.

“There is potential but the level of public reaction to it is extremely negative at the moment and anybody trying to carry even testing at the moment is finding a lot of demonstrations,” Justin Urquhart Stewart, Director of Seven Investment Management in London, told New Europe on 7 February, adding that the government of British Prime Minister David Cameron is going to find it very difficult to actually get it through. “The potential is there but realistically I think they’re going to run into a lot of public concern unless it can be proven not to be dangerous to local communities,” Urquhart Stewart said. Unlike America, Britain is a crowded island and has a much bigger impact on a smaller area, he said.

From The Guardian, a land rush:

Fresh wave of super-rich looking to buy up London properties, says estate agent

  • Political and economic instability driving rise in inquiries from Brazil, Argentina, Ukraine and elsewhere, reckons Frank Knight

Political and financial upheaval in some of the world’s largest emerging economies is driving a wave of rich migrants to London to park their wealth in the city’s property market, according to data from a leading estate agency.

Knight Frank, a specialist in upmarket properties, said on Friday that online inquiries from Argentina, Ukraine and Turkey have soared during the past year.

“There is potentially a further wave of investment headed for the prime central London property market,” said Tom Bill of the firm’s residential research team.

The Observer covers austerian reality:

Changes to state pensions will hit the poorest, warns think tank

  • Inequalities set to grow as people in the most deprived parts of the country live healthy lives 20 years shorter than the average

Changes to the state pension age will only expand the already yawning gap between rich and poor in Britain, according to an academic study.

Inequalities are set to grow because of the failure to take into account differences in health and life expectancy across the country, says the report from independent think tank the International Longevity Centre – UK and backed by the charity Age UK.

While most people will live to state pension age and beyond, a large proportion are unlikely to get there in good health, especially in more disadvantaged parts of the UK – places like inner city Glasgow, where the healthy life expectancy is just 46.7 years – close to 20 years lower than the national average of 65.

BBC News embarrasses:

Immigration minister Mark Harper quits over cleaner’s visa

Immigration minister Mark Harper has resigned from the government after it emerged his cleaner did not have permission to work in the UK.

Mr Harper notified Prime Minister David Cameron, who accepted his resignation “with regret”, Number 10 said.

It added there was “no suggestion” the 43-year-old Conservative MP for the Forest of Dean had “knowingly employed an illegal immigrant”.

Fellow Tory James Brokenshire has been appointed the new immigration minister.

The Observer has frustrations:

Nick Clegg: Britain must join debate on new approach to war on drugs

  • Deputy PM angry at Tory refusal to debate alternatives and says: ‘If you are anti-drugs, you should be pro-reform’

Nick Clegg has dragged the case for reforming the drugs laws to the centre ground of British politics, saying that blanket prohibition has seen cocaine use triple in less than 20 years, a trend that has helped perpetuate conflict and violence in South America.

Writing in today’s Observer, after a week in which he visited Colombia to learn first-hand the devastating effects that Europe’s enthusiasm for cocaine has had on the country, Clegg said the UK needed to be at the heart of the debate about potential alternatives to blanket prohibition and that he wanted to see an end to “the tradition where politicians only talk about drugs reform when they have left office because they fear the political consequences”.

The deputy prime minister said such an approach “has stifled debate and inhibited a proper examination of our approach. Put simply, if you are anti-drugs, you should be pro-reform”.

On to the Emerald Isle and a neoliberal endorsement from the Irish Times:

Taoiseach defends corporate tax policy at OECD

  • Kenny shrugs off French anger at loss of internet companies and backs efforts to close tax loopholes

Taoiseach Enda Kenny, Tánaiste Eamon Gilmore and the four Cabinet Ministers who flew on the government jet to Paris yesterday did not see a single member of the French socialist government.

Instead, they spent the day at the Organisation for Economic Co-operation and Development, that hotbed of liberal economics, at a sensitive time in Franco-Irish relations. The US internet giant Yahoo had just announced it is transferring financial operations from France to Ireland.

Asked about Yahoo’s defection, President François Hollande said “we must act” against “big companies who move to countries with low corporate tax”. He promised to raise the subject with President Barack Obama in Washington next week.

On to Germany and a case of bad heilth from Deutsche Welle:

German newspaper report highlights right-wing crime in Germany

  • More than 11,000 right-wing criminal offenses were committed last year, according to a report by a German newspaper. Of those cases, more than 500 were violent.

German police registered 11,761 criminal offenses motivated by right-wing extremism between January and December of 2013, Berlin’s Tagesspiegel newspaper reported on Friday. Of the reported cases, 574 were violent offenses that resulted in injuries to 561 people, according to Tagesspiegel.

Of the 5,631 suspects in the offenses, 126 people were arrested. In 11 cases, warrants were issued. Some 788 cases were reported as being of an anti-Semitic nature, including 32 cases of assault and other violent crimes.

According to the newspaper, the figures come from monthly inquiries by the Bundestag’s Vice President Petra Pau and her Left Party parliamentary faction. With the release of the December figures, a complete look at the last year is now available.

Tagesspiegel said, however, the actual number of right-wing criminal offenses for 2013 is expected to climb, as many incidents are registered after the fact. In 2012, the total number was initially listed as 11,660, but late registrations ended up driving the total up to 17,134.

TheLocal.de boosts the books:

German trade surplus hits record level

Germany’s trade surplus soared to a new record high in 2013, although export momentum tailed off at the end of the year, official data showed on Friday.

Europe’s biggest economy notched up a trade surplus of €198.9 billion in 2013, the highest since foreign trade data have been compiled.

In 2012, the surplus had stood at 1€89.8 billion.

Germany has come under fire for its booming trade surplus, with critics arguing that its economic prowess comes at the expense of the eurozone’s weaker members.

On to France and the rural right from France 24:

France’s National Front courts the rural vote

As municipal and European elections approach, France’s far-right party the National Front is poised for another strong showing. Rural areas are key to the party’s strategy: economic decline and feelings of neglect in the countryside have been fuelling the National Front’s renaissance.

Our assignment was to understand why the far-right is making strides in rural areas. So we headed out for the “Meuse”, a department in the east of France where the party traditionally does well.

To our initial surprise, villagers readily expressed their support for the National Front, even on camera. “We’re 100 percent for Marine Le Pen around here”, smiled one supporter as we approached. “I’m not afraid to say so, and I always will!”

Reuters turns the coat:

Special Report: Francois Hollande puts on a new political face

As Hollande heads without a First Lady to the United States on Monday, he is projecting a more business-friendly persona than the “regular guy” left-winger France chose in May 2012 to replace conservative ex-President Nicolas Sarkozy.

Several people who know Hollande say that, deep down, he has always been more of a centrist, who had calculated that he should present himself as a man of the left to win election.

“This is not so much a U-turn as a self-revelation. He has finally outed himself,” said Serge Raffy, author of the 2011 Hollande biography “Itineraire secret” (Secret Route).

Switzerland next and a defining vote from Deutsche Welle:

Referendum to keep foreigners out of Switzerland?

  • On Sunday, the Swiss vote on whether to restrict immigration to their country. The ramifications of a yes vote, experts say, could be huge. To their shock, the referendum has a decent shot at passing.

When Germans hear Switzerland, they first think of the children’s book “Heidi”, snow-covered mountains and secure bank accounts. Their neighbor to the south is a popular vacation destination, but more and more Germans also come to Switzerland to work. They can do so because the small, neutral state entered a freedom of movement agreement with the European Union in 1999. Even though Switzerland isn’t a member of the union, EU citizens have been allowed to immigrate to Switzerland with hardly any restrictions since then.

That might change soon. In a nationwide referendum, the Swiss are voting on an “initiative against mass-immigration” this Sunday (09.02.2014). The initiative was put forward by the nationalist-populist Swiss People’s Party (SVP). The party wants to restrict the number of immigrants and allocate a limited number of slots to certain national or occupational groups.

Roughly 80,000 immigrants enter Switzerland every year – and this in a country of 8.1 Million. According to the German weekly “Die Zeit”, this is the largest population growth the country has experienced since the 1960s.

On to Iberia and austerian woes from thinkSPAIN:

More firms and individuals in Spain declared insolvent last year than ever before in history

A RECORD number of companies and sole traders went into receivership or were declared bankrupt last year – a total of 9,660, which is the highest ever seen since bankruptcy became legally-recognised 10 years ago.

This represents a rise of 6.5 per cent on the figure for 2012, and never before have this many insolvencies been declared in the space of a year in Spain, according to the National Institute of Statistics (INE).

In the first three years after the Insolvency Law was passed in 2004, up to and including 2007 there were between 968 and 1,147 firms going bankrupt or into receivership each year, but this shot up to 3,298 with the start of the financial crisis.

This again nearly doubled in 2009 when the recession and mass unemployment began to truly bite in Spain, reaching 6,197 that year, dropping slightly to 5,962 in 2010 but then soaring again in 2011 to 6,863. However, the last two calendar years have seen a sharp increase, with insolvencies shooting up by over 50 per cent.

The Associated Press takes a turnabout:

Spain to restore nationality to Sephardic Jews

Spain has announced new measures to speed up the naturalization of Jews of Sephardic descent whose ancestors fled the Iberian peninsula five centuries ago when they were told to convert to Catholicism or go into exile.

The Cabinet approved a bill amending previous legislation that granted nationality by naturalization to Sephardic Jews who chose to apply for it. The reform will allow dual nationality, enabling people who can prove Sephardic ancestry to also retain their previous citizenships.

Justice Minister Alberto Ruiz-Gallardon said Friday the measure smooths the bureaucracy involved in obtaining Spanish nationality.

Italy next, and corruption with a flair from TheLocal.it:

Space boss quits over tango dancer scandal

The head of Italy’s space agency submitted his resignation on Friday after a scandal over dubious expenses including hiring as a consultant a former tango dancer with no apparent aerospace credentials.

Enrico Saggese in a statement denied the accusations and said that he wanted to step down “so as to better defend my integrity, honour and prestige”.

Prosecutors opened an investigation on Thursday into corruption, including Saggese’s use of a credit card provided by an agency subcontractor.

They are also looking into consultancy fees paid to the wife of an employee to provide “psychological assistance” and expense-paid trips to the United States for several managers of the space agency.

After the jump, the latest Greek disasters, Ukrainian turmoil, class war in Brazil, Argentine anger, a Latin American plague, Pakistani stalemate, the latest Thai violence, Vietnamese letdown, Chinese uncertainty, an Abenomics fail, environmental woes, and the latest Fukushimapocalypse Now!. . . Continue reading

Headlines of the day II: EconoEuroSinoFukuFuel


We begin our collection of headlines form the economic, political, and environmental realms with a new reality from CNBC:

More men in their prime working years lack jobs, says WSJ

A large number of men who are still in their prime working years find themselves without jobs for extended periods, despite an improving economy, according to a piece in The Wall Street Journal.

The trend has been building for decades. The percentage of unemployed men 25 to 54 more than doubled between the early 1970s and 2007, from 6 percent to 13 percent, before jumping to 20 percent in the depths of the recession in 2009, according to the article.

As of December 2013, 17 percent of men are not working. Of that group, about two-thirds are not looking for work, which excludes them from the government’s official unemployment numbers.

Economists were alarmed to learn that 40 percent of those looking have been out of work for six months or more, according to the Journal. Some had expected employment figures to rebound to pre-recession levels, but the trend is actually getting worse.

One response, via The Hill:

Senate rejects jobless benefits

Senate Republicans on Thursday blocked Democrats’ third attempt to pass an extension of federal unemployment benefits.

The Senate voted 58-40 Thursday on a proposal that would have continued unemployment insurance for three months, just short of the 60 votes needed to end debate.

“I’m beginning to believe there is nothing that will get Republicans to yes,” Senate Majority Leader Harry Reid (D-Nev.) said. “It’s a ‘no’ vote because they don’t want to extend unemployment insurance.”

Any excuse to gut environmental laws, via Salon:

House GOP overrides Endangered Species Act protections to pass California water bill

  • The bill would undermine years of conservation efforts in Northern California

Republicans in the House of Representatives passed a bill Wednesday that would override federal rules and protections in California to allocate more water to farmers.

It would allow state and federal officials to pump more water out the San Joaquin-Sacramento River Delta in Northern California, a source of drinking water to 22 million Californians and home to endangered salmon, in what Gov. Jerry Brown called “an unwelcome and divisive intrusion into California’s efforts to manage this severe crisis” and Rep. John Garamendi (D) referred to as “a theft of water from someone to give to somebody else, plain and simple.”

CNBC shivers in anticipation:

Hedge funds bet on US gas shortage as cold boosts demand

An unexpected fear haunts the land of the shale bonanza story: running low on natural gas.

Furnaces, utilities and power plants have guzzled trillions of cubic feet of the fuel as the U.S. slogs through what may be recorded as the coldest winter since the invention of gas futures in 1990.

Hedge funds are now betting the country will face a critical shortage before spring. The wager comes with long odds but a huge possible payout.

“It’s been a relentless cold,” says Eric Bass, managing partner at Velite Benchmark Capital Management, a Houston gas hedge fund. “This market has slowly started to realize there could potentially be an inventory problem.”

From Al Jazeera America, Banksters Behaving Badly™:

Banks under investigation for alleged currency exchange rate-fixing

  • Barclays, Goldman Sachs among institutions being investigated for allegedly manipulating foreign exchange markets

New York state’s financial regulator has opened an investigation into alleged manipulation of foreign exchange markets and is demanding documents from more than a dozen banks, a source familiar with the investigation told Al Jazeera.

Barclays, Lloyds Banking Group, Goldman Sachs and a number of other large banks that the Department of Financial Services regulates will be investigated in the probe, the source said.

Authorities in the U.S., Britain, Switzerland, Hong Kong and Singapore have opened probes into whether the large banks manipulated foreign exchange rates used to set the value of trillions of dollars of investments.

Investigators suspect that traders from different banks may have used chat rooms to share information about trades in ways that benefited their positions.

Profligacy from The Guardian:

National lab in California scolded over Lusitania project

  • $80,000 in taxpayer money spent to help National Geographic with documentary about sinking of the ship during WWI

A federal watchdog agency reprimanded a national lab in Northern California for spending more than $80,000 in taxpayer money to help National Geographic with a documentary film about the sinking of the ship Lusitania during World War I.

The Energy Department’s inspector general said in a report issued last week that Lawrence Livermore National Laboratory improperly used its licensing and royalty fees to perform tests for the documentary and should not have done the work.

“Federal officials at Livermore knew about it and didn’t take any action,” said Rickey Hass, a deputy inspector general at the Energy Department. “The work itself was not really the issue, but it was inappropriate in that it may have competed with private sector organizations and was funded with money that should have not been used for that purpose. It also wasn’t necessarily reported with complete transparency.”

NBC News greens the green:

Pot buyers add more than $1M to Colorado tax coffers

In the first month of legal recreational marijuana sales in Colorado, retailers who shared their proprietary data with NBC News say they have collected $1.24 million in tax revenue.

Half of the state’s 35 licensed recreational retailers participated in the NBC News survey. The 18 retailers shared the first 27 days of their tax data because they say they believe it will help their image.

In the first month of operation, sellers of recreational marijuana are doing brisk business in Colorado. One seller said she averages about $20,000 a day in sales.

Blowback from Channel NewsAsia Singapore:

India warns US of consequences on visa reform

India has warned the United States of consequences for its companies if lawmakers tighten visa rules on high-tech firms as part of an immigration overhaul.

Ambassador Subrahmanyam Jaishankar said that India would see a decision to restrict certain temporary visas for skilled workers as a sign that the US economy is becoming less open for business.

“We think this is actually going to be harmful to us. It would be harmful to the American economy and, frankly, it would be harmful to the relationship” between the two countries, Jaishankar told AFP in an interview.

Sensible advice from Salon:

Elizabeth Warren calls on Obama to nominate fewer corporate judges

  • Massachusetts’ senior senator promotes more professional diversity in U.S. courts

Speaking at an event hosted by the left-leaning Alliance for Justice, an association of more than 100 groups who work on improving the justice system, Democratic Sen. Elizabeth Warren criticized President Obama for putting forward so many judicial nominees whose prior experience was mainly with big firms representing corporations.

“We face a federal bench that has a striking lack of diversity,” said Warren. “President Obama has supported some notable exceptions but … the president’s nominees have thus far been largely in line with the prior statistics.”

Repeating points made in the AFJ’s recent report on the federal judiciary’s excess of former corporate lawyers, Warren noted that 71 percent of Obama nominees’ prior experience was chiefly defending corporations. Just 3.6 percent of Obama’s nominees, according to the report, have previously worked mainly for public interest organizations.

Warren warned that, in America, “Power is becoming more and more concentrated on one side.” She recommended “professional diversity” in the judiciary, saying it would be “one way to insulate the courts from corporate capture.”

Heading north of the border with capital flight woes of another kind from South China Morning Post:

Exclusive: How mainland millionaires overwhelmed Canada visa scheme

Mainland millionaires swamped HK consulate with applications and led to freezing of world’s most popular investor immigration scheme

Canadian immigration department spreadsheets obtained by the Post show how the huge number of applications forced the government in Ottawa to freeze the world’s most popular wealth-based migration scheme. One document, dated January 8 last year, showed there was a backlog of 53,580 Hong Kong-based applications for Canadian federal investor visas.

That represented more than 70 per cent of the global backlog. And attempts by Ottawa in 2010 to tighten access to the coveted visas by doubling the wealth criteria had the effect of increasing Chinese domination. In 2011, applications sent to the Hong Kong consulate made up 86 per cent of the global total.

Analysis of arrival data suggests that about 99 per cent of applications in Hong Kong were lodged by mainlanders. Under the scheme’s current limits, applicants worth at least C$1.6 million (HK$11.2 million) receive residency if they “invest” C$800,000 in the form of a five-year interest-free loan to Canada.

On to Europe, first with BBC News:

ECB rejects deflation fears as it holds rates at 0.25%

The head of the European Central Bank (ECB) has said deflation is not a threat to the eurozone economy.

The ECB kept its benchmark interest rate at 0.25% after its latest meeting. The rate was cut to its current record low in November.

ECB president Mario Draghi said: “We have to dispense with this idea of deflation. The question is – is there deflation? The answer is no.”

Eurozone inflation slowed to 0.7% in January from 0.8% in December. The figure fuelled worries about whether the euro bloc could suffer deflation, potentially de-railing economic growth.

Another take from the London Telegraph:

Split ECB paralysed as deflation draws closer, tightening job vice in southern Europe

  • Mario Draghi said the ECB’s council had discussed a wide range of measures but needed more information

The European Central Bank has brushed aside calls for radical action to head off deflation and relieve pressure on emerging markets, denying that the eurozone is at risk of a Japanese-style trap.

Yields on German two-year notes almost doubled to 0.12pc as markets slashed expectations for future rate cuts, while the euro spiked 1.5 cents to more than $1.36 against the dollar, implying a further tightening of monetary conditions for Europe.

Mario Draghi, ECB president, said the bank is “alert to the risks, and stands willing and ready to act” if inflation falls even further below target or if the fragile recovery falters, but offered no clear guidance on future policy.

The Guardian hasn’t recovered:

Real wages likely to take six years to return to pre-crisis level

  • Average wages are at 2004 levels and it will take until six years before they return to 2009 peak according to leading thinktank
  • The Governor of Britain’s Bank of England, Mark Carney, speaks

Britons will have to wait six more years before their inflation-adjusted wages are back at pre-crisis levels and it “feels” like recovery, a leading thinktank has warned.

Average real wages are still at 2004 levels and it will take until 2020 before they return to their 2009 peak, according to the National Institute of Economic and Social Research (NIESR).

“It’s a long way off,” said Simon Kirby, principal research fellow at the thinktank. “It will take a number of years before people actually start to feel the recovery.”

The gradual rise in wages could take even longer if Britain’s productivity performance, which has been “abysmal” in recent years, did not improve, he said.

BBC News splits:

Divorce rate up ‘because of recession’, report says

  • A wedding ring on the bible The recession of 2008/9 could be to blame for more marriages failing

The divorce rate in England and Wales has gone up, possibly because of the last recession, according to a report.

The Office for National Statistics (ONS) said there were 118,140 divorces in 2012, up 0.5% on 2011.

Between 2003 and 2009 there was a general downward trend in the number of divorces, but in 2010 they rose 4.9%.

“One theory suggests recession could contribute to a rise in partnership break-ups because of increased financial strain,” the report says.

Off to Iceland and an immigration crisis denied via the Reykjavík Grapevine:

Minister Dismisses Ministry Employee Requests For Independent Investigation

Minister of the Interior Hanna Birna Kristjánsdóttir has allegedly denied requests from ministry staff for an independent investigation of the ministry over a leaked memo regarding a Nigerian asylum seeker.

DV reports that several ministry employees approached the minister with the suggestion that an independent investigator be brought in to examine the ministry with regards to the case of Tony Omos, a Nigerian asylum seeker who, along with the expecting mother of his child, Evelyn Glory Joseph, had his reputation impugned by a memo which leaked to certain members of the press last November. The memo made allegations about Tony and Evelyn which later proved to be untrue.

The minister allegedly told the employees who requested the independent investigation that this was not going to happen. Ministry employees are reportedly unhappy with the minister and her assistants over the matter.

The uncuttest kind of all from TheLocal.no:

Norway politician wants jail for circumcisers

A leading politician for Norway’s Centre Party has stepped up calls for a ban on ritual male circumcision, or failing that up to 10 years in prison, for those who botch the operation, as the government debates a proposed new law on the practice.

Jenny Klinge, the party’s justice spo complained about the stark difference in penalties under law for those who injure children through female genital mutilation and those who injure them through circumcision.

“It can not be such that when a boy dies, then it’s not punished at all, while if a girl dies it’s punishable by up to 10 years,”  Klinge said in parliament, according to NRK.

She called again for a ban, but said that failing that significant penalties should be put in place for those who injure children during the operation.

Danish austerity strikes again,, via the Copenhagen Post:

Parliament expected to end EU insurance coverage

  • As of August, CPR card will no longer cover Danish residents in other EU countries

You may want to be more careful on future trips to other EU countries. Today, parliament is expect to abolish the public travel insurance provided by the yellow health insurance card. According to DR Nyheder, a large majority will vote in favour of the bill, which then will come into effect by August.

When the proposal is passed, Danish residents will no longer have all their medical expenses paid when visiting another EU country. Instead they will fall under the same regulations as citizens of the respective country. To avoid unexpected medical bills on your next holiday in Europe, it will therefore be necessary to take out your own health insurance.

Nexit news from DutchNews.nl:

Leaving the EU would boost Dutch economy, report for PVV says

Leaving the European Union would boost the Dutch economy, Geert Wilders, leader of the far-right PVV, said on Thursday, quoting a study drawn up by a UK agency.

The Capital Economics report says leaving the EU would allow the Netherlands to increase its prosperity in a way only possible in the distant past. Economic growth figures would be higher than if the Netherlands remains in the EU, the report states.

The Netherlands would no longer be tied to EU rules and requirements, allowing a freer hand to trade with other countries. Gross Domestic Product would be between 10% and 12% higher by 2035 if the Netherlands left the EU, Capital Economics said.

EurActiv rebuts:

Dijsselbloem counters Wilders’ EU exit claim

Dutch Finance Minister Jeroen Dijsselbloem, who also heads the Eurogroup, has hit back at far-right politician Geert Wilders’ claim that leaving the European Union would be good for the Dutch economy.

“The Netherlands is an economic powerhouse in Europe. We earn the bulk of our money in trade with EU countries so the Netherlands has a lot of interest in a single market with easy trade,” Dijsselbloem told local media, adding that quitting the EU would be “very unwise”.

On to Germany and a case of the Benz from TheLocal.de:

Daimler enjoys record €9 billion profit

Luxury auto maker Daimler said on Thursday that it achieved record sales and profits in 2013, and it expects to achieve “significant” growth again this year.

“Daimler concluded the year 2013 with record levels of unit sales, revenue, EBIT [earnings before interest and tax] and net profit,” the car maker said in a statement.

“The company anticipates renewed growth in 2014,” it added.

Net profit climbed by 28 percent to €8.72 billion and underlying profit, as measured by earnings before interest and tax, was up 23 percent at €10.82 billion.

Europe Online declines:

German factory orders post surprise slump in December

German industrial orders posted a surprise 0.5-per-cent fall in December despite a rebound in demand from the eurozone, the Ministry of Economics said Thursday.

The decline in the monthly data failed to offset the surge in orders in November, which jumped by an upwardly revised 2.4 per cent as a result of strong demand for bulk orders from Europe’s biggest economy.

“The trend toward increasing demand for industrial products continues despite the slight decline in December,” the ministry said.

TheLocal.de lights a fuse:

Court grants EU migrants German jobless benefits

A German job centre will have to pay a jobless Spanish family unemployment benefits, a court ruled on Thursday, in an apparent contradiction of German law.

The Court of Social Affairs in Dortmund ruled unemployed immigrants from the European Union could claim Hartz IV unemployment benefits, in a judgment which decided in favour of European Union law over German.

European law states citizens from other EU countries must be treated equally, which includes access to benefits.

But German law grants exemptions by classifying Hartz IV as a “social benefit” which can be denied to EU citizens rather than a “special benefit” which cannot be. It means EU migrants who are in Germany but are not seeking work are excluded from claiming unemployment benefits.

On to France and a walkout ahead from TheLocal.fr:

French teachers to strike over August return

Summer holidays are sacred in France and even more so it seems for French teachers. One union has called for a strike after the government did the unthinkable and timetabled the start of the autumn term before the end of August.

Even though back to school for autumn 2014 is a full six months away—and school isn’t even out yet—the first strike of the next school year has already been called.

The members of the national union of secondary and high school teachers (Sydicat National des Lycées et Collèges) sent out warning on Wednesday of the strike pencilled in for the end of August. This time its not about pay cuts or a lack of funding, but a decision to make them to return to school after the summer holidays, in the sacred holiday month of August.

The government has rewritten the school calendar so that teachers have to be back on August 29. Bearing in mind August is traditionally the month when the whole country pretty much shuts down and everyone goes to the beach, the move has not gone down well with in staff rooms.

Switzerland next and more hard times immigration politics from TheLocal.ch:

Immigration: ‘total chaos’ seen if curbs backed

Switzerland’s ties with the European Union face a crunch test on Sunday as voters decide whether to revive immigration quotas on EU citizens, in a referendum piloted by rightwing populists.

The result could be close, with the latest poll indicating 43 percent back the “Stop Mass Immigration” proposal and 50 percent oppose it.

Switzerland is not in the EU but is ringed by members of the 28-nation bloc, which is its main export market. If passed, the proposal would bind the government to renegotiate within three years a deal which gives the EU’s 500 million residents equal footing on the job market in this nation of 8.1 million people.

Opponents of the plan — the government, most political parties and the business sector — warn that ripping up free labour market rules for EU nationals in force since 2007 would unravel related economic deals.

Another consequence of the battle for women’s bodies from El País:

Doctors shun life-saving abortion

  • As 32-year-old Daniela found out, access to the procedure at a public hospital can be impossible
  • The government is planning to make the law covering terminations even tougher

La Paz Hospital, one of the largest public health centers in Madrid, refused to perform an abortion on Daniela, a 32-year-old woman who had lost all her amniotic fluid when she was 20 weeks pregnant. In these conditions, a fetus no longer has a chance to live, according to all the specialists consulted by this newspaper, and the mother is at risk of serious infection.

Even though she met all the requirements set out in the current abortion law – which the Popular Party government plans to toughen up on – the Madrid hospital refused to terminate her pregnancy. Eventually, Daniela, who was on intravenous antibiotics to prevent infections, was discharged from La Paz so she could go to a private center for her abortion, after the regional government confirmed her right to one.

A spokeswoman at La Paz said that all the doctors there are conscientious objectors – whose rights are enshrined in the current Spanish law on abortion – and that in 2010 the gynecology department in full decided not to carry out any abortions, ever.

thinkSPAIN charts the loss:

Salaries have fallen by 10 per cent since labour reform came into effect, say recruitment centres

  • Mass redundancies falling, but on-the-job training is a must, according to Adecco

WAGES have gone down by an average of 10 per cent, and the typical redundancy pay-off to 26 days’ salary per year of service, according to research by three recruitment agencies.

Adecco, the Sagardoy Foundation and the Excellence in Sustainability Club – which all form the official Observatory for monitoring the government’s labour reform – studied 200 companies, most of which have a minimum of 50 employees.

They say redundancy pay has gone down, but remains on the whole higher than the requisite 20 days’ salary per year of service which is the legal minimum for a ‘fair dismissal’.

TheLocal.es has poor possibilities:

Half of Spain’s job ads pay less than €1K/month

The so-called ‘mileurismo’ phenomenon continues to grow as data from employment portal jobandtalent.com reveals that 49 per cent of jobs offered in Spain in January had net salaries equivalent to less than €1,000 ($1,350) per month.

Information published in the company’s blog showed that jobs in the ‘mileurismo’ category – those that pay less than €1,000 a month – had risen from 30 per cent  to 49 per cent of those on offer.

Of those, positions offering gross annual salaries of under €15,000 rose from 20 per cent to 31 per cent of the total, and jobs offering €16,000 to €20,000  from 6 per cent to 18 per cent.

The blog presented the figures as a complement to data released this week by the Juan Alfaro Club of Excellence’s Labour Reform Monitor which showed that average wages across Spain had fallen by 10% since the introduction of new legislation designed to introduce flexibility into the job market.

But one number is heading up. From TheLocal.es:

Spanish bankruptcies hit the roof in 2013

The number of household and business bankruptcy filings leapt by 6.5 percent to 9,660, the National Statistics Institute said, as the economy emerged from a long recession.

Spain’s economy grew slowly in the second half of 2013, shaking off a double-dip recession but still weighed down by a 26-percent unemployment rate.

The eurozone’s fourth-largest economy is still overshadowed by the aftermath of a decade-long property bubble, which collapsed in 2008 destroying millions of jobs and flooding the nation in debt.

In a sign that the business sector’s decline may be steadying, however, bankruptcy filings rose at a slower pace last year when compared to a 15.1 percent increase in 2011 and a 32.2 percent surge in 2012. But the number of bankruptcy filings remains at historically high levels.

And battle over women’s bodies ends the same way, via thinkSPAIN:

Surrogate births not recognised under Spanish law, rules Supreme Court

CHILDREN born to surrogate mothers cannot be registered as the legal offspring of the parents who commissioned the woman who gave birth, Spain’s Supreme Court has ruled.

Whilst in the USA, couples who cannot have children or all-male couples can ‘rent a womb’ to enable them to start a family and register the baby as their own, Spanish law does not recognise the procedure, as two men discovered when they attempted to do so with their two children born in California.

The couple, who are married, had all the legal certificates issued by the county of San Diego, California to prove they were the legal fathers of the twin boys born in 2008 via a surrogate mother, in accordance with US law.

Italy next and another number of the way up from TheLocal.it:

Rents in Italy soar as wages stagnate

Italians are spending the bulk of their monthly salary on rent as prices climb and landlords refuse to negotiate even in times of job loss, a survey has revealed.

Over 40 percent of those surveyed by mioaffito.it, the Italian property website, said between 35 and 50 percent of their salary goes on rent, while 30 percent said they spend even more.

Rents in Italy have risen by 105 percent over the last twenty years, while average household salaries have gone up by just 18 percent, Gaia Merguicci, a community manager at mioaffito.it told The Local.

The average monthly rent in Italy is around €780, up from €738 since last August, according to data from the website. Florence saw the steepest climb over the past six months, with rents increasing by 14.2 percent.

However, the most expensive place to rent is the business hub of Milan, where the monthly average is €1,823 followed by Rome at €1,629 and Florence at €1,228. The cheapest place is Ragusa, in Sicily, where rents average €390.

The latest Bunga Bunga blowback from TheLocal.it:

Italian senate to join civil case against Berlusconi

The speaker of Italy’s upper house of parliament on Wednesday announced the Senate would declare itself a civil party in a trial against former premier Silvio Berlusconi for allegedly bribing senators, according to Italian media reports.

Speaker Piero Grasso said said it was his “moral duty” to declare the Senate a civil party despite an earlier recommendation by a parliamentary
committee for the upper house to stay out of the media magnate’s latest legal troubles.

Embattled Berlusconi was ousted from parliament and stripped of legal protection in November after he was found guilty of tax fraud.

TheLocal.it once again, and a heads up for the big winners:

Bonino defends German role in euro crisis

Italy’s Foreign Minister Emma Bonino on Thursday defended Germany against charges its austerity demands were the cause of suffering in the crisis-hit eurozone.

“Those who hold Germany responsible for everything are not only telling an untruth but also behaving unfairly,” Bonino told Munich daily the Sueddeutsche Zeitung.

“I find this criticism of Berlin quite petty and only partially appropriate,” said Bonino, a former EU commissioner.

After the jump, the latest in the ongoing Greek disaster, Ukrainian warnings, drought and a protest victory in Latin America, Australian and Japanese tapering, Thai troubles, Chinese anxieties, Sony woes, a free-trade-for-dolphins ploy, U.S. and European GMO word wars, and Fukushimapocalypse Now!. . . Continue reading

Headlines of the day II: EconoPoliEcoFukuFolly


We begin today’s headlines from the economic, political, and environmental realms with the inevitable outcome of a healthcare system that isn’t public, via the New York Times:

Health Care Law May Result in 2 Million Fewer Full-Time Workers

A new analysis from the Congressional Budget Office says that the Affordable Care Act will result in more than 2 million fewer full-time workers in the next several years, providing Republican opponents of the law a powerful political weapon leading up to this years midterm elections.

The law is also expected to have a significant effect on hours worked, the nonpartisan budget office said in a regular update to its budget projections released Tuesday. With the expansion of insurance coverage, more workers will choose not to work and others will choose to work fewer hours than they might have otherwise, it said. The decline in hours worked will translate into a loss of the equivalent of 2.5 million full-time positions by 2024, the budget office said.

Republicans immediately seized on the report as evidence of the health care law’s adverse effect on the economy.

From USA TODAY, third third state?:

Alaska moves toward August vote on legal pot

Alaska could be the next state to reconsider the prohibition on marijuana, following legalization votes by Colorado and Washington last year.

Alaska elections officials posted data Tuesday showing that a petition for a statewide vote on marijuana legalization has gained enough signatures and met legal thresholds needed to put the issue before voters.

Under Alaska law, the petition when officially certified would appear on the Aug. 19 primary ballot. No formal opposition to the initiative has emerged thus far.

Reuters readies the job ax:

RadioShack to close about 500 stores: WSJ

U.S. electronics chain RadioShack Corp is planning to close about 500 stores within months, the Wall Street Journal reported on Tuesday, citing people familiar with the matter.

The struggling retailer, which is due to report results for the fourth quarter later this month, said it could not comment on rumor or speculation.

RadioShack has been working with bankers from Peter J Solomon Co to boost its liquidity and with AlixPartners on its operational turnaround.

Its sales have been in free-fall amid executive departures, strong competition and an image problem. Despite its ubiquitous presence in the United States, analysts say it has not done enough to transform itself into a destination for mobile phone shoppers, nor has it become hip enough to woo younger shoppers.

And another ax-wielder from the New York Post:

500 layoffs expected today at Time Inc.

Tuesday is D-day at Time Inc.

Around mid-morning, staffers are expected to start hearing how deep the cuts will be as Time Inc. CEO Joe Ripp unveils what is likely the last big downsizing before Time Warner spins off the publishing group as a separate company later this year.

“It’s very nerve racking,” said one source inside the company that publishes People, Time, Sports Illustrated and In Style.

The recently acquired American Express Publishing and the London-based IPC subsidiary, are expected to be particularly hard hit.

Out first global headline, via The Independent:

Das Capital: Trust in banks wanes as savers find other ways to protect their money

  • The ultra-rich are switching to real assets – gold, commodities, farm land

All systems – social, cultural, spiritual, economic and financial – rely on trust. Policy makers are now systematically undermining trust in institutions, turning to financial repression in attempting to deal with the economic crisis.

Current government policies focus on low interest rates, with returns artificially set below the true inflation rate. Where interest rates are near zero, governments print money, manipulating the amount rather than the price of money.

These measures reduce borrowing costs allowing borrowers to maintain high levels of debt. Rates below that of inflation help reduce the value of the debt, effectively decreasing the amount that must be paid back in economic terms. The policy subsidises borrowers at the expense of savers.

The London Telegraph sounds a warning:

Emerging markets more vulnerable than ever to Fed tightening, warns BIS

  • Bank for International Settlements says there had been a “massive expansion” in borrowing on global bond markets by banks and companies in developing countries

Emerging markets may be even more vulnerable to an interest rate shock today than they were during the East Asia crisis in 1998, the Bank for International Settlements (BIS) has warned.

The Swiss-based watchdog said there had been a “massive expansion” in borrowing on global bond markets by banks and companies in developing countries, leaving them exposed to “powerful feedback” risks as borrowing costs rise in the West.

“The deeper integration of emerging market economies into global debt markets has made emerging market bond markets much more sensitive to bond market developments in the advanced economies,” the BIS said in a working paper.

New Europe pontif-icates:

Pope warns that ‘unjust’ unemployment can lead to sin, moral destitution and even suicide

Francis discussed three types of destitution — material, moral and spiritual — in his first message for Lent, the solemn period leading up to Holy Week and Easter, that was released Tuesday.

Moral destitution, he said, “consists of slavery to vice and sin” such as alcohol, drugs, gambling and pornography.

He noted that sometimes “unjust social conditions” like unemployment lead to this type of destitution by depriving people of the dignity of work and access to education and health care.

“In such cases, moral destitution can be considered impending suicide.”

How, then, about folks who are doing quite well, Say, such as the consumers of this little joy from the London Daily Mail:

The Mile-Low Club: Travel company launches £175k Valentine’s Day submarine package with interior design of your choice and aphrodisiac menu (flights to the mooring not included)

  • Luxury travel company unveil submarine treat whereby couples can choose to harbour wherever they like
  • Also includes aphrodisiac menu featuring champagne and oysters
  • The bespoke submarine will actually travel 200m under the water
  • Price for a basic vessel starts at £175,000
  • Extras including helicopter transfers, entertaining rooms and champagne breakfast available

And from TheLocal.de, the crabby old man was right:

Too much reality TV ‘harms pupils’ grades’

Have you ever been worried that too much reality TV might be frying your brain or more to the point your kids’ brains? Well you better read on.

Parents everywhere have been muttering it under their breaths for years and now French researchers claim to have dealt conclusive proof.

A study by the Ministry of Education linked body DEPP (Direction of Evaluation, forecasting and performance) shows a dramatic reduction in results for 15-year-old pupils who watch too much reality TV.

The study, which relied on stats from the Ministry of Education, looked at the impact on grades of the typical activities of young kids in France from playing video games to listening to music and sending texts to friends but it was watching shows like The Voice,  Koh Lanta (the French version of Survivor)  or the Infamous Angels of Reality TV, featuring Nabilla (pictured) that appears to have the most detrimental impact on standards.

“It is the frequent watching of reality TV programmes that impacts the most negatively on the cognitive and academic performances,” said the study.

On to Europe and intolerant umbrage from EUobserver:

MEP receives 41,000 emails against gay rights

An MEP who drafted a resolution on securing the basic rights of LGBTI (lesbian, gay, bisexual, trans and intersex) people in the EU has so far received almost 41,000 emails against the proposal.

“My website was hacked as well, I don’t know who it was from. It might be coincidence, it might not be a coincidence,” Green Austrian MEP Ulrike Lunacek told the Strasbourg assembly on Monday (3 February).

A large banner which says “Warning – visiting this website may harm your computer!” has replaced her personal site since last week.

Her office said they are working to get it back to normal. They suspect it was hacked by ultra-conservative groups.

Casting a cynical eye with EUbusiness:

Ombudsman wants EU probed for corruption

The European Union’s own institutions should be probed for corruption, the EU’s watchdog said Tuesday, a day after Commissioner Cecilia Malmstroem described the bloc’s graft problem as “breathtaking.”

“The EU administration has to live up to the very highest standards,” European Ombudsman Emily O’Reilly said in a statement, adding that it largely does so and compares favourably with many member states.

However, it should not be complacent, and accordingly, O’Reilly encouraged the European Commission to “include the EU institutions in the next Anti-Corruption Report.”

On to Germany and action in Berlin from MintPress News:

Fed Up With Agribusiness, Protesters Take To The Streets In Berlin

The protesters said agribusiness threatens the livelihoods of small family farmers, leads to standardization of tastes, and damages the environment and biodiversity.

United under the declaration, “we are fed up,” around 30,000 people from several associations representing farmers, beekeepers and consumers, as well as environmental, development and food organizations, gathered in Berlin to demonstrate against large-scale agribusiness.

The protesters said that agribusiness threatens the livelihoods of small family farmers, leads to standardization of tastes and damages the environment and biodiversity. They demanded environmentally friendly farming, protection for bees, access to land and healthy, affordable food for all. They’re also seeking fair prices for farmers, an end to hunger, food scandals, monocultures, GMOs and land grabs by governments and investors.

Escorted by some 70 tractors, they marched through the streets of the German capital, from Potsdamer Platz to the government buildings of the Ministry of Agriculture and the offices of the federal chancellor. The demonstrators expressed their demands to Chancellor Angela Merkel and Vice Chancellor Sigmar Gabriel.

On to France and a taxing threat from EUbusiness:

French to make 1 bn euro tax claim against Google: report

French authorities have decided to make a tax claim of 1 billion euros against Google following a probe into the tax strategies by the US Internet giant, Le Point magazine reported Tuesday.

A Google spokesman in France declined to comment on the report, saying the company does not comment on rumours.

The French finance ministry also declined to comment, citing tax confidentiality.

France is one of a growing number of cash-strapped nations to pursue more aggressively what they see as abuse of tax and accounting rules that allows some multinational companies to pay less tax.

What Ailes France from France 24:

Is a new Tea Party brewing in France?

Interior Minister Manuel Valls has warned that France was seeing the birth of its own version of the grassroots, anti-tax Tea Party movement amid a surge of anti-government demonstrations by right-wing groups and religious conservatives across the country.

“We are witnessing the creation of the French version of the Tea Party. By exploiting the political and leadership crisis on the right, and the National Front party’s move away from the far-right, a conservative and reactionary right has been set free,” Valls, a Socialist, told the Journal du Dimanche in an interview published on Sunday.

The eye-opening comparison came hours ahead of massive rallies in defence of traditional families in Paris and the eastern city of Lyon. They were organised by the so-called “Manif Pour Tous” (Protest for all) group that staged massive protests against gay marriage last year.

Sunday’s march, which police said drew 80,000 people in Paris, was just the latest public display of anger against President François Hollande’s government in recent days.

EUbusiness goes medical:

France announces EUR 1.5 bn anti-cancer plan

French President Francois Hollande on Tuesday announced a 1.5 billion euro ($2 billion) anti-cancer plan aimed at reducing inequalities in treatment of the disease.

The 2014-2019 plan aims to give “the same chances to everyone everywhere in France” in preventing and fighting cancer, Hollande said in a speech to medical professionals.

His announcement comes a day after the United Nations warned that new cases of cancer will rise by half by 2030, reaching 21.6 million per year compared to 14 million in 2012.

On to Spain and a new low from El País:

Number of people in work in January declines to lowest level in 12 years

  • Jobless claims in Spain climb by 113,097 in first month of year

The number of people signed up with the Social Security system in Spain declined by 184,031, or 1.13 percent, in January from the end of last year to 16.173 million, the lowest figure since April 2002, according to figures released Tuesday by the Labor Ministry.

In what is traditionally a bad month for the labor market, jobless claims rose by 113,097, or 2.4 percent, from December to 4.814 million.

The ministry said that on a month-on-month basis, this January was the “least negative” since 2007, given that since the current comparable statistical series began there has never been an increase in the number of people signed up with the Social Security system. On a year-on-year basis, the number of affiliates declined by 5,829, or 0.04 percent.

TheLocal.es looks for resolution:

UN urges Spain to drop Civil War taboos

A UN expert on Monday urged Spain to break a decades-long taboo by investigating atrocities allegedly committed in its 1936-39 civil war and the Franco dictatorship that followed.

UN justice rapporteur Pablo de Greiff said Spain should scrap a 1977 amnesty law that stops victims from prosecuting the alleged perpetrators of such atrocities, which divide Spaniards to this day.

In a report, he urged Spain to scrap the amnesty and called on “the state institutions to show a decisive and determined commitment” to investigating and making sure that victims are compensated.

The amnesty was seen as a necessity by the leaders tasked with unifying Spain after Francisco Franco’s death in 1975.

Portugal next and a temporary halt to a sale of the commons from Deutsche Welle:

London auction house cancels sale of Miro paintings

Citing legal uncertainties stemming from the lawsuit in Portugal, auction house Christie’s said on Tuesday that it had decided to cancel the sale of the Miro paintings pending the resolution of the dispute.

“While the recent injunction to stop the sale was not granted, the legal uncertainties created by this ongoing dispute mean that we are not able to safely offer the works for sale,” Christie’s said in a press release.

Hours before the auction’s scheduled start time, a judge denied the opposition Socialist Party’s request for an injunction to stop the sale. Portugal’s government pleaded that harsh austerity measures have left the country short of cash, and it could not make retaining the collection of the Catalan surrealist Miro one of its priorities.

Portugal’s public prosecutor backed the appeal to stop the sale, which accused the administration of ignoring “the immeasurable immaterial value” of the collection to the country, forced into austerity measures following a 78-billion-euro ($105 billion) rescue by international creditors in 2011.

The Portugal News charts reduced losses:

BCP stems losses by around half a billion

BCP, Portugal’s largest private sector bank, announced a €740 million loss for 2013, down from €1.219 billion in 2012, following the closure of the stock market on Monday.

“This loss is significant but also substantially below that of the previous year. This reflects the macroeconomic situation and is in accordance with the restructuring plan agreed with the General Directorate of Competition of the European Commission,” BCP President Nuno Amado told a press conference.

The loss also includes €126 million in provisions for early retirement and redundancy payoffs as the bank advances with its plan expected to see several hundred employees leave the firm over the first half of this year.

On to Italy and an austerian declaration from AGI:

President Napolitano says Italy must stay course on debt

Italy cannot afford to let up its efforts to keep its public debt in check, President Giorgio Napolitano said in a speech to the European Parliament on Tuesday.

Despite the government’s concerted response to financial market pressure and significant achievements in 2013, Italy cannot afford to relax in its efforts to further curtail its public debt, he said.

After the jump, the latest from tghe Greek meltdown, a Turkish retraction, the ongoing Ukrainian crisis, a Latin American trade deal push and Brazilian woes, Australian immigration profits and environmental havoc, Indian protests, Thai warnings, troubling Chinese numbers, Japanese neoliberalism, toxic spills and criminal probes, ecocidal costs, and Fukushimapocalypse Now!. . . Continue reading

Headlines of the day II: EconoGrecoSinoFuku


Our compendium of headlines from the world of human economic and political actions and their impacts on our environment opens with a health alert from The Guardian:

Worldwide cancer cases expected to soar by 70% over next 20 years

  • New cancer cases expected to grow from 14m a year in 2012 to 25m, with biggest burden in low- and middle-income countries

Cancer cases worldwide are predicted to increase by 70% over the next two decades, from 14m in 2012 to 25m new cases a year, according to the World Health Organisation.

The latest World Cancer Report says it is implausible to think we can treat our way out of the disease and that the focus must now be on preventing new cases. Even the richest countries will struggle to cope with the spiralling costs of treatment and care for patients, and the lower income countries, where numbers are expected to be highest, are ill-equipped for the burden to come.

The incidence of cancer globally has increased in just four years from 12.7m in 2008 to 14.1m new cases in 2012, when there were 8.2m deaths. Over the next 20 years, it is expected to hit 25m a year – a 70% increase.

Closer to Casa esnl, the latest coverage of class war in Babylon by the Bay from USA TODAY:

SF residents caught in middle of tech hostilities

For the past month, protesters have confronted buses that transport employees from Google, Apple and Facebook to Silicon Valley. The flare-ups highlight the yawning gap between those benefiting from the enormous wealth generated by the tech boom and those left behind. Multimillion-dollar tax breaks for SF-based companies like Twitter have stoked rebellious tensions.

“We have a group which is mostly young and has not learned social norms or responsibility gaining wealth and power,” says Vivek Wadhwa, a Fellow at Stanford Law School. “This group has its own value system and lives in its own bubble. It is displacing the larger population of San Francisco.”

The city has had its neighborhood battles – hippies in the Haight in the 1960s, gays in the Castro in the ‘70s. But the latest gentrification clash is moving faster, making the current situation dicey.

The Verge Googles eyesore:

California orders Google to move floating barge from current construction site

The state of California has ordered Google to move its massive floating barge away from its current construction site in the San Francisco Bay. San Francisco Bay Conservation and Development Commission executive director Larry Goldzband said the four-story structure has drawn numerous complaints. “It needs to move,” Goldzband said. He also claims that Google never had the proper permits to start work on the project at Treasure Island. But today’s development may not spell any real trouble for Google — the company simply needs to relocate the barge to another Bay facility where construction is fully permitted. The news was first reported by the Associated Press.

Sightings of the barge led to rampant speculation about its purpose last year. Google eventually admitted ownership of the San Francisco barge, teasing that it hopes to explore using it as a space where “people can learn about new technology.” We reached out to the company for more details on how it plans to respond to this latest challenge. In a statement, a Google spokesperson told The Verge, “We just received the letter from the San Francisco Bay Conservation and Development Commission and we are reviewing it.”

From Bloomberg, the usual suspects operating in the usual way:

IBM Uses Dutch Tax Haven to Boost Profits as Sales Slide

International Business Machines Corp. (IBM) has reduced its tax rate to a two-decade low with help from a tax strategy that sends profits through a Dutch subsidiary.

The approach, which involves routing almost all sales in Europe, the Middle East, Africa, Asia and some of the Americas through the Netherlands unit, helped IBM as it gradually reduced its tax rate over 20 years at the same time pretax income quadrupled. Then last year, the rate slid to the lowest level since at least 1994, lifting earnings above analysts’ estimates.

IBM is aiming for $20 a share in adjusted earnings by 2015, up from $11.67 in 2010 — a goal made more difficult as the company posted seven straight quarters of declining revenue. To stay on target, IBM has bought back shares, sold assets, and fired and furloughed workers. A less prominent though vital role is played by its subsidiary in the Netherlands, one of the most important havens for multinational companies looking for ways to legally reduce their tax rates.

MarketWatch tanks anxiously:

U.S. stocks see worst selloff in several months

  • Manufacturers expand in January at slowest rate in eight months

The U.S. stock market closed with sharp losses on Monday, after a much weaker-than-expected reading on manufacturing data as well as concerns over a slowdown in China, triggered the worst selloff in several months.

The S&P 500 and the Dow Jones Industrial Average ended the day with the steepest decline since June 20.

U.S. manufacturers expanded in January at the slowest rate in eight months as the pace of new orders sharply decelerated, according to the closely followed ISM index. The Institute for Supply Management index sank to 51.3% from 56.5% in December. That’s the lowest level since last May. Economists surveyed by MarketWatch had expected the index to drop to 56%

From the New York Times, a belated recognition:

The Middle Class Is Steadily Eroding. Just Ask the Business World.

As politicians and pundits in Washington continue to spar over whether economic inequality is in fact deepening, in corporate America there really is no debate at all. The post-recession reality is that the customer base for businesses that appeal to the middle class is shrinking as the top tier pulls even further away.

If there is any doubt, the speed at which companies are adapting to the new consumer landscape serves as very convincing evidence. Within top consulting firms and among Wall Street analysts, the shift is being described with a frankness more often associated with left-wing academics than business experts.

The Washington Post notes a sea change:

Report: Majority of U.S. kids under age 2 are now children of color

For the first time, a majority of American children under age 2 are now children of color  — and 1 in 3 of them is poor, according to a disturbing new report. “The State of America’s Children 2014.” that cites the neglect of  children as the top national security threat.

The report, published by the Children’s Defense Fund, calls on President Obama and America’s political leaders “in every party at every level to mount a long overdue, unwavering, and persistent war to prevent and eliminate child poverty.”

From the Project On Government Oversight, why the hell not?:

Could Post Offices Become Public Banks?

The U.S. Postal Service is floundering—2013 was the seventh year in a row to report a net loss, at a whopping $5 billion—and  nobody is quite sure how to fix it. Go Private? Close branches? Deliver Mail only four days a week? Ideas are being thrown around but little progress has been made in improving the troubled agency.

But last week, the office of the Inspector General of the U.S. Postal Service released a report with an out-of-the-box suggestion that would produce $8.9 billion in new annual profits: Turning the Post Office into a bank, with savings accounts, loans and debit cards. Furthermore, it would greatly benefit the poor, who lack banking options and are often gouged by predatory financial services.

The idea has been floated before but with official backing from the Inspector General it has a higher degree of credibility and plausibility. Add in the fact that it wouldn’t require Congressional approval, only an executive order from the President, and maybe the out-there proposal could actually become a reality.

Still think the idea sounds crazy? Consider this: The Post Office already was a bank. From 1911-1967, savings accounts were offered with 2 percent interest, ending because of competition from private banks with higher interest rates. The post office still provides money orders.

From Medical Daily, a notable side effect:

Medical Marijuana Cuts Suicide Rates By 10% In Years Following Legalization

Legalization of medical marijuana has been found to correlate to a significant drop in suicide rates, providing additional evidence that the federally outlawed substance may have a positive effect on U.S. public health.

The new study, which is published in the American Journal of Public Health, shows that the suicide rate among men ages 20 to 29 and 30 to 39 fell by 10.8 percent and 9.8 percent respectively following a given state’s decision to legalize medical marijuana. Although the relationship was weaker and less precise among women, the authors believe that the findings provide strong evidence in favor of medical cannabis. “The negative relationship between legalization and suicides among young men is consistent with the hypothesis that marijuana can be used to cope with stressful life events,” they wrote.

On to Europe with an anxious twist from CNNMoney:

Pressure building for ECB rate cut

Another interest rate cut in Europe could be just around the corner as the risk of deflation rears its ugly head again.

The first official estimate of eurozone inflation in January was a weaker-than-expected 0.7% — the same level that prompted the European Central Bank to cut rates in November. Consumer prices rose by 0.8% in December.

The weaker January number “puts significant pressure on the ECB to take further stimulative action at its February policy meeting next Thursday,” said IHS Insight’s chief European economist Howard Archer.

Cheaper energy was largely to blame, but the stronger euro has also been pulling import prices down, economists said.

Quartz covers mordida:

Lithuanians and Romanians are more than six times as likely to be asked for bribes than the EU average

A fifth of Danes think corruption is prevalent, for example (the lowest level in the EU), but only 3% say they are personally affected by it in their daily lives. Some 12% claim they know someone who has taken a bribe, but only 1% say they have paid, or been expected to pay, a bribe themselves.

In much of western Europe, then, it seems that corruption is a somewhat abstract concept for the common person—confined to criminal cliques or a select few who abuse their positions of power (Danes reckon politicians are the most corrupt group in their country). But as you travel to the south and east, corruption appears to creep into one’s daily life, a depressingly routine feature of doing business or accessing public services. In the past 12 months, around one in three Lithuanians and one in four Romanians say they were asked or expected to pay a bribe; the EU average is less than one in 20.

Al Jazeera America sets the cost:

Report: EU corruption costs $162B annually

  • All 28 member states suffer from some level of corruption, the report found

Corruption affects all member countries of the European Union and costs the bloc’s economies about 120 billion euros ($162.19 billion) a year, an official EU report published Monday said.

European Commissioner Cecilia Malmstrom, who presided over the first-ever official EU-wide study on corruption, said the estimated amount lost annually due to padded government contracts, covert political financing, bribes to secure health care and other corrupt practices would be enough to fund the European Union’s yearly operating budget.

All 28 EU member states suffer from some level of corruption — defined broadly by the report as the “abuse of power for private gain” — the report found.

One more headline [only], from BBC News:

Corruption across EU ‘breathtaking’ – EU Commission

On to Britain and a call for caution from Deutsche Welle:

Steinmeier urges UK to stay in EU, voices doubt on treaty change

  • Foreign Minister Frank-Walter Steinmeier has appealed to the UK to remain in the European Union, regardless of progress on the EU treaty change sought by Britain’s Conservative-led government.

Frank-Walter Steinmeier made his first visit to London since returning to the foreign minister’s post on Monday, asking his British counterpart William Hague not to lose sight of the benefits of EU membership.

“In this 21st century world, we want to protect our political, economic and cultural influences,” Steinmeier said, adding that, on the 100th anniversary of the outbreak of World War I, such European ties “really must not be underestimated.”

The German foreign minister said it would be “an exaggeration” to assert that Germany and the UK were on precisely the same page when it came to treaty reform for the EU.

Xinhua sounds the alarm:

London housing market under price bubbles risk, warns Ernst and Young

Housing market in London is beginning to show signs of bubble-like conditions, said a research report issued by Ernst and Young Item Club (EY ITEM Club) on Monday, while asking the government to monitor the trend closely and be prepared to intervene.

The EY ITEM Club forecast showed the average house price in London is expected to reach nearly 600,000 pounds (980,000 U.S. dollars) by 2018, some 3.5 times the average price in Northern Ireland and more than 3.3 times the average in the North East.

It said the average house prices in Britain growing by 8.4 percent this year and 7.3 percent in 2015, before cooling to around 5.5 percent in 2016.

And simultaneously booms:

British manufacturing off to strong start in 2014

Britain’s manufacturing sector maintained its strong growth into 2014, posing an improved domestic demand and solid output growth supported by rising export orders in January, said a survey report on Monday.

The report, jointly issued by Markit and the Chartered Institute of Purchasing and Supply (CIPS), showed the Purchasing Manager’s Index (PMI) for the British manufacturing sector was at 56.7 in January of this year.

The figure is at its lowest level in three months, but still showed a robust improvement in overall operating conditions for the manufacturing sector.

A reading of 50 points or greater indicates expansion, while below 50 indicates contraction.

A qualified UK separatism endorsement from El País:

Spain will not oppose Scottish EU entry: foreign minister

  • But García-Margallo warns that re-entry to the Union will take considerable time

Spanish Foreign Minister José Manuel García-Margallo has stated that should Scotland elect to break away from the United Kingdom, Spain will not oppose the move because it does not have any bearing on the internal affairs of the country. “If the Constitution of the United Kingdom permits – and it seems that it does – that Scotland call a referendum on their possible independence, we will say nothing on the matter,” he said in an interview with the Financial Times.

However, the minister adhered to the Popular Party (PP) administration’s line over Catalonia’s own designs on a referendum for independence; one of staunch resistance.

On to Sweden and a call from TheLocal.se:

EU: Sweden should ban secret party donations

While the EU’s executive body acknowledged that Sweden was among the least corrupt countries in the EU, it pointed to several areas of potential improvement.

Specifically, Sweden could improve its transparency if it considered a general ban on anonymous political party donations. Sweden remains one of few EU countries without total party-funding transparency, and the government came under fire last month when it decided to keep the lid on private donations.

The report also hinted that Sweden could do more to combat the risk of corruption at the municipality and county level, which the commission said could be fixed by making authorities obliged to secure transparency in public contracts with private entrepreneurs.

TheLocal.se again, with hard times intolerance:

Afrophobic hate crimes on the rise in Sweden

Hate crimes directed against Sweden’s black population have increased in recent years, according to a report published on Monday, prompting grave concern from Sweden’s integration minister.

Afrophobia, defined as hostility towards people with a background from sub-Saharan Africa, is soaring in Sweden, according to the researchers who compiled the government-commissioned report. They wrote on Monday in the opinion pages of the Dagens Nyheter newspaper (DN) that it was time society took these statistics seriously.

Between 2008 and 2012, the number of reported hate crimes against Afro-Swedes, defined as anyone with African heritage living in Sweden, rose by 24 percent, while hate crimes in general during the same period decreased by six percent. Between 2011 and 2012 alone, the number of Afrophobic hate crimes rose by 17 percent, the researchers explained.

On to Brussels and a critique via DutchNews.nl:

Brussels criticises ‘revolving door’ between Dutch politics and industry

While the Dutch integrated approach to preventing corruption and bribery could serve as a model to other EU countries, the Netherlands should still do more to improve transparency in politics, the European Commission said on Monday.

While welcoming the fact that much has been done in the Netherlands to improve transparency, the Commission went on to recommend improvements in the way the business interests of ministers are examined.

Officials’ private, financial and business interests are considered a private matter and information about their assets and interests is not available to the public, the report points out.

Nor are there any rules forcing MPs to declare potential conflicts of interest or barring them from holding financial interests or engaging in external activities.

Germany next and a peculiar call from TheLocal.de:

Industry boss: ‘Too many students harm economy’

One of Germany’s top commerce experts warned on Monday that there were so many young people at university, and so few in traineeships, that the country’s economy would suffer.

“The consequences to Germany’s economy will be damaging, if the trend to study at any cost is not stopped,” said Eric Schweitzer, president of the Association of German Chambers of Commerce and Industry (DIHK).

Schweitzer was referring to the amount of young people who undertake lengthy study in Germany, while companies struggled to fill traineeships.

“The truth is that many years of increasing student numbers in Germany have resulted in our classrooms now bursting at the seams, while companies are desperately seeking apprentices,” he said in a statement.

France next and a concession to the “family values” set from TheLocal.fr:

Hollande puts off family law to avoid new fight

A day after massive protests over President François Hollande’s “family phobia”, his government on Monday abruptly postponed plans to pass a controversial new family bill, that would likely have picked another fight with France’s traditional conservatives.

France’s Socialist government on Monday put off plans for a new family law after demonstrations by thousands of angry conservatives.

Hollande’s administration announced on Monday it was postponing its plans to move ahead with legislation that would have legalized medically assisted procreation for same sex couples, and tackled issues like surrogacy.

A source in Prime Minister Jean-Marc Ayrault’s office said the government would no longer present a bill this year that officials had said was aimed at modernising the law to reflect the new “diversity” of families.

Nature’s newsblog takes the pledge:

Hollande pledges to avoid cuts to France’s science funding

French President François Hollande promised to spare the research and higher education budget from savings of €50 billion (US$67 billion) that his government has pledged to find over the next three years to reign in its massive public deficit.

The government will find other ways to cut the deficit, avoid tax increases and ensure business can increase investment and create jobs, he said during a visit to the University of Strasbourg.

In a speech devoted entirely to research and higher education, Hollande also said he would maintain the controversial research tax credit (CIR) because companies appreciate it and it helps attracts foreign investment.

And from TheLocal.fr, a demand:

EU: France must root out corruption at local level

France remains a country where the worlds of international business and public procurement are blighted by shady dealings and corruption, according to a new EU report. But just how bad is corruption in France and how does it compare to other countries in Europe?

France needs to do more to fight corruption a new report from the European Commission argues, especially in the areas of international business transactions and public procurement, which are still ripe with misdeeds.

“Corruption-related risks in the public procurement sector and in international business transactions have not been addressed,” the report concludes.

On to Switzerland and the first of a schizy set of headlines from TheLocal.ch:

Swiss ban proposed on sex education for kids

Swiss voters will decide whether to ban compulsory sex education for children under nine after conservative groups mustered enough signatures to force a plebiscite, the authorities said on Monday.

The federal administration said campaigners had gathered more than the 100,000 signatures of voters required to put their measure to the public for approval.

The campaign coalition — whose goal is the “protection against sexualisation in kindergartens and primary schools” — handed in its petition in December and the government is now obliged to set a date for a vote.

And out of left field, also from TheLocal.ch:

Swiss want to reopen pot legalization debate

A Swiss parliamentary committee looking into drug issues wants to reopen the debate on the legalization of marijuana in the wake of developments in the US, Uruguay and New Zealand.

“Many models that exist around the world should be studied and analyzed, that is the basis of our reflection,” Toni Berthel, committee president and a member of the Swiss association for addiction, is quoted as saying by the ATS news agency.

Berthel confirmed information reported on Sunday by the Schweiz am Sonntag weekly newspaper about the new look at Swiss cannabis laws.

Spain next and a matter of perception from El País:

95 percent of Spaniards see corruption as institutionalized

  • “Political will is absent” in battle against graft, notes Brussels report

Ninety-five percent of Spaniards believe corruption is generalized, according to the first continent-wide study on the issue by the European Commission. Only respondents in Greece (99 percent) and Italy (97 percent) outdid Spain. The report, which was presented on Monday in Brussels, underscores the magnitude of the issue in Europe: three out of four EU citizens believe corruption is an institutional problem.

In two areas of the survey Spain topped the charts. Asked if the level of corruption has risen in the past three years, 77 percent said yes, more than in the other 27 member states. Two out of every three respondents said that corruption affected their daily lives, more than in any other nation. The survey was conducted in February and March 2013, when a series of corruption scandals involving the government, labor unions, political parties and the monarchy occupied the front pages in Spain.

From TheLocal.es, Coke Zero:

Zero tolerance to Coke plant closures

Thousands of workers from Coca-Cola bottling factories in Spain marched on Sunday in protest at plant closures they say will cost 750 jobs.

In red caps and vests bearing the logo of the giant US drinks company, crowds marched in Madrid and the eastern city of Alicante, where two of the threatened plants are located.

Coca-Cola’s plan to close four of its bottling factories in Spain is expected to lead to 750 workers being laid off and 500 others being offered relocation to other plants.

Another protest from thinkSPAIN:

Nationwide protest over ‘abusive’ electricity costs

THOUSANDS of people across Spain joined in a countrywide protest over rocketing electricity prices on Saturday.

Demonstrations were held in 23 cities, mostly provincial capitals, including Madrid, Valencia, Alicante, Barcelona, Murcia, Málaga, Almería, Granada, Córdoba, Huelva, Sevilla, Cádiz, Jaén, and Las Palmas de Gran Canaria.

Carrying banners calling for Luz a precio justo (‘electricity at a fair price’), the demonstrators clamoured against the government’s forcing the consumer to bear the cost of its own debt with energy suppliers, leaving already hard-pressed householders suffering prohibitive prices.

And an austerian measure from TheLocal.es:

King freezes wages of Queen and Princess

King Don Juan Carlos has gone against the trend of royal secrecy in Spain and publicized the new fixed salaries of his wife Queen Sofía and daughter-in-law Princess Letizia.

It’s the first time the 76-year-old monarch has willingly made information on royal earnings available to Spain’s general public.

In a press release published by Spain’s Zarzuela Palace, the newly-fixed wages of royal family members have been disclosed in detail.

Queen Sofía of Spain will earn €131,739 in 2014, a sum roughly resembling her wages last year but which is no longer determined by so-called representation costs.

As for Letizia Ortiz, wife of Prince Felipe and future queen of Spain, she will receive a grand total of €102,464.

El País schmoozes:

Rajoy looks to 2015 race with soothing pledges for tax reform and stimulus measures

  • PM bashes Rubalcaba for being negative and blames Socialist leader for current “agony”

The Popular Party (PP) on Sunday officially kicked off the beginning of the second half of its current term in government with pledges from Prime Minister Mariano Rajoy to carry out his long-awaited ambitious tax reform and other economic measures to help Spain get back on its feet.

As PP officials begin to look toward the next general elections scheduled for the end of next year, the ruling party has tried to use its three-day political conference in Valladolid to showcase proposed strategies in an effort to win voters’ confidence in its recovery plan. But at the close of national meeting, Rajoy avoided offering any specifics on his plans, but was able to muster rallying cheers from stalwart party members with an unusually aggressive attack on opposition Socialist Party leader Alfredo Pérez Rubalcaba.

The verbal blitzkrieg was seen as an attempt to breathe new life into an increasingly embattled Popular Party, which finds itself bitterly divided on a range of issues, including the government’s proposal for abortion reform; the route that should be taken that would lead to ETA’s eventual demise; and the ongoing public corruption inquiries that have engulfed many of its members.

Italy next, starting with a Bunga Bunga bounceback from New Europe:

Italy: Poll finds Berlusconi-led government would win election

Judges may be convicting him and prosecutors opening yet new probes, but it seems that Italians would yet again elect a Berlusconi-led government it they had to vote now. According to a new poll published in February 3, a center-right alliance led by embattled former Prime Minister Silvio Berlusconi would be the most likely winner if Italians were to vote now under a reform proposal currently before parliament.

The poll, commissioned by newspaper Corriere della Sera and conducted by the Ipsos agency found that potential center-right coalition would get 37.9 percent of the vote, above the 37 percent threshold needed under the new rules being examined to obtain a large winner’s bonus of parliamentary seats without having repeat elections.

The centre left according to the same poll would get 36 percent while Bepe Grillo’s 5-Star protest movement 20.7 percent.

TheLocal.it hyperbolizes:

Five Star bloggers ‘potential rapists’: MP

Italy’s lower house speaker has accused the anti-establishment Five Star Movement of instigating violence and slammed bloggers on the party website as “potential rapists” following a flurry of sexist abuse online.

Laura Boldrini was commenting on a post on the Facebook page belonging to the Five Star Movement’s leader Beppe Grillo, which asked on Saturday “what would you do if you found Boldrini in your car?”

The question, which accompanied a satirical video and was taken up on the movement’s official website, sparked a series of abusive comments, including calls for Boldrini to be raped.

The post was an “instigation to violence, just look at the comments it prompted, nearly all of which were made in a sexist context,” Boldrini said in an interview late Sunday on Italian television.

And from TheLocal.it, ubiquity:

Almost all Italians think corruption is rife

Almost all Italians believe that corruption is widespread in their country, according to the European Commission’s anti-corruption report released on Monday. While some progress has been made, the EU’s executive body highlighted a number of areas in need of urgent action.

Ninety-seven percent of Italians think that corruption is rife, second only to Greece with 99 percent and well above the European average of 76 percent, the European Commission report found.

Bribery and connections are the easiest ways to get certain public services, 88 percent of Italians believe, compared to 73 percent of Europeans.

People in Italy, however, are more optimistic than those in Greece, where 93 percent of the population believe bribery is the easiest way to get what you want, compared to 92 percent in Cyprus and 89 percent in Slovakia and Croatia.

TheLocal.it again, with oldies and not-so-goodies:

Crisis-hit Italians survive on out of date food

Italians may be well-known for their healthy diet, but more are eating food well past its use-by date as the effects of the financial crisis continue to bite, according to new figures from Coldiretti, the Italian farmers association.

Fifty-nine percent of Italians, or six out of ten, eat out of date food, with fifteen percent eating food that is a month or more old, the association revealed.

Eight percent are eating food that is way beyond a month after its use-by date, while 34 percent are consuming products up to a week old and two percent never check expiry dates.

Coldiretti said the “worrying trend” poses a “significant risk to health”

After the jump, the latest on the Greek crisis, Ukrainian uncertainty, Russia currency freefall, Indian action, Thai troubles continue, Vietnamese expectations, more Chinese warning signs and neoliberal moves, Abenomics fails, pesticide alerts and other environmental woes, and the latest edition of Fukushimapocalypse Now!. . .and more:  Continue reading

Headlines of the day I: Spies, pols, zones, threats


We begin today’s collection of headlines from the worlds of espionage and security with on ominous note with this entry from Threat Level:

Judges Poised to Hand U.S. Spies the Keys to the Internet

How does the NSA get the private crypto keys that allow it to bulk eavesdrop on some email providers and social networking sites? It’s one of the mysteries yet unanswered by the Edward Snowden leaks. But we know that so-called SSL keys are prized by the NSA – understandably, since one tiny 256 byte key can expose millions of people to intelligence collection. And we know that the agency has a specialized group that collects such keys by hook or by crook. That’s about it.

Which is why the appellate court challenge pitting encrypted email provider Lavabit against the Justice Department is so important: It’s the only publicly documented case where a district judge has ordered an internet company to hand over its SSL key to the U.S. government — in this case, the FBI.

If the practice — which may well have happened in secret before — is given the imprimatur of the U.S. 4th Circuit Court of Appeals, it opens a new avenue for U.S. spies to expand their surveillance against users of U.S. internet services like Gmail and Dropbox. Since the FBI is known to work hand in hand with intelligence agencies, it potentially turns the judiciary into an arm of the NSA’s Key Recovery Service. Call it COURTINT.

The Guardian partially discloses:

Microsoft, Facebook, Google and Yahoo release US surveillance requests

  • Tech giants turn over data from tens of thousands of accounts
  • Limited disclosure part of transparency deal made last month

Tens of thousands of accounts associated with customers of Microsoft, Google, Facebook and Yahoo have their data turned over to US government authorities every six months as the result of secret court orders, the tech giants disclosed for the first time on Monday.

As part of a transparency deal reached last week with the Justice Department, four of the tech firms that participate in the National Security Agency’s Prism effort, which collects largely overseas internet communications, released more information about the volume of data the US demands they provide than they have ever previously been permitted to disclose.

But the terms of the deal prevent the companies from itemising the collection, beyond bands of thousands of data requests served on them by a secret surveillance court. The companies must also delay by six months disclosing information on the most recent requests – terms the Justice Department negotiated to end a transparency lawsuit before the so-called Fisa court that was brought by the companies.

MintPress News cozies up:

Google’s New Partnership With Law Enforcement Disquiets Privacy Advocates

What’s concerning most about the system for privacy advocates is that the information, which includes the photos and videos, is shared directly by Google with law enforcement.

Google may be in bed with U.S. government and law enforcement agencies more than the American public may have realized.

While the tech giant maintains it was unaware of the extent that the National Security Agency was using its cookie technology to gather information about the public, it was recently discovered that the company filed for two patents last year that actually benefit law enforcement.

Known as “Mob Source Phone Video Collaboration” and “Inferring Events Based On Mob Sourced Video,” the patents are for a system that would identify when and where a “mob” event takes place and would send multimedia alerts to those with a vested interest in the event, namely law enforcement and news agencies.

According to the patents, a “mob” event is anything that attracts an “abnormal” amount of attention in the form of photos and videos, which is determined by the system’s monitoring photos and videos for similar time and location stamps.

PCWorld ponders prosecution:

German federal prosecutor considers formal NSA investigation

Germany’s federal prosecutor is considering if there is enough evidence to warrant a formal, criminal investigation into the German government’s alleged involvement in the U.S. National Security Agency (NSA) data collection program, a spokeswoman said Monday.

Privacy and human rights campaigners including the Chaos Computer Club (CCC), the International League for Human Rights (ILMR) and Digitalcourage on Monday filed a criminal complaint against the German federal government and the presidents of the German secret services for their alleged involvement in illegal and prohibited covert intelligence activities, they said in a news release.

The complaint also targeted German Chancellor Angela Merkel, the German Minister of the Interior as well as U.S., British and German secret agents who are all accused of violating the right to privacy and obstruction of justice by cooperating with the NSA and its British counterpart GCHQ to electronically spy on German citizens, they said.

The Guardian mulls disclosure:

Intelligence agencies should be subject to FoI, says information commissioner

  • John McMillan says FoI Act ‘can suitably apply to any agencies, parliamentary departments and the intelligence agencies’

Australia’s information commissioner has called for intelligence agencies to be subject to freedom of information laws and has expressed concern about “mixed messages” on open government and transparency.

In a wide-ranging interview with Guardian Australia on the state of privacy and freedom of information in Australia, the information commissioner, Professor John McMillan, said intelligence agencies should be subject to freedom of information (FoI) legislation.

“My preference would be at least for the FoI Act to apply to the intelligence agencies,” he said.

PCWorld hacks away:

Prominent cryptographers targeted by malware attacks

Belgian cryptographer Jean-Jacques Quisquater had his personal computer infected with malware as the result of a targeted attack that’s believed to be related to a security breach discovered last year at Belgian telecommunications group Belgacom. According to him, other cryptographers have also been targeted by the same attackers.

Belgacom, whose customers include the European Commission, the European Parliament and the European Council, announced in September that it had discovered sophisticated malware on some of its internal systems.

German news magazine Der Spiegel reported at the time, based on documents leaked by former U.S. National Security Agency contractor Edward Snowden, that British intelligence agency Government Communications Headquarters (GCHQ) was responsible for the attack on Belgacom as part of a project code-named Operation Socialist.

The magazine later reported that GCHQ used packet injection technology called Quantum Insert developed by the NSA to target network engineers from Belgacom and other companies when they visited the LinkedIn and Slashdot websites. This technology can impersonate websites and can force the target’s computer to visit an attack server that uses exploits to install malware.

National Post denies:

Stephen Harper’s top security advisor denies reports of illegal spying on Canadians using airport Wi-Fi

The head of Communications Security Establishment Canada defended the collection of “metadata” on Monday, saying it helped identify foreign adversaries without snooping on the private communications of Canadians.

Testifying before the Standing Senate Committee on National Security and Defence, John Forster shot back against allegations of overzealous government electronic surveillance that have arisen as a result of leaks by Edward Snowden.

In a rare public appearance that follows unprecedented scrutiny of the ultra-secretive spy agency, Mr. Forster denied CSEC had been monitoring the private communications of Canadians as it vacuumed up metadata, or “data about data.

While CBC News equivocates:

Spy agencies, prime minister’s adviser defend Wi-Fi data collection

  • ‘It’s data about data,’ Stephen Harper’s national security adviser says of metadata collection

The head of Canada’s communications surveillance agency defended its use of metadata Monday and argued a test using Canadian passengers’ data — revealed by CBC News last week — didn’t run in real-time and wasn’t an actual operation.

John Forster, chief of the Communications Security Establishment Canada, defended the cybersecurity agency over revelations contained in a document released by U.S. National Security Agency whistleblower Edward Snowden.

Forster appeared before the Senate national defence committee amid the report that CSEC used airport Wi-Fi to track the movements of Canadian passengers, including where they’d been before the airport.

Pushing for a conclusion with TheLocal.se:

Prosecutor pressed to speed up Assange case

The Swedish prosecutor handling the Julian Assange case lashed out on Monday to calls urging him to push on with efforts to interrogate the whistle blower over sex crimes allegations stemming from a 2010 visit to Sweden.

Assange, who is suspected of rape and sexual assault involving two Swedish women in connection with a visit to Stockholm in 2010, remains holed up in the Ecuadorian embassy in London where he has been for the last 18 months.

But Swedish MP Johan Pehrson, legal policy spokesperson for the Liberal Party (Folkpartiet), said on Sunday there was no point letting such a case fester.

“This is an exceptional case,” he said on the Agenda programme on Sveriges Television (SVT). “Which gets you thinking whether the prosecutor shouldn’t take one more look at it and take care of it once and for all.”

Military/industrial profiteering from Spiegel:

Arms Exports: Berlin Backs Large Defense Deal with Saudi Arabia

Berlin has often been criticized in recent years for selling weapons to questionable regimes. Now, the German government is backing a billion-euro deal for 100 patrol boats.

The German government has often drawn serious criticism for supporting defense deals with countries known to have democratic deficiencies. In the latest controversial move, SPIEGEL has learned that the new government in Berlin wants to secure a major defense deal with Saudi Arabia by offering Hermes export credit guarantees.

The information comes from a classified letter from a senior official in the Finance Ministry to the German parliament’s budget committee. The letter states that the German government intends to provide guarantees for the planned export of more than 100 patrol and border control boats to the Gulf state with a total value of around €1.4 billion ($1.9 billion). In the letter, official Steffen Kampeter writes of the “high importance in terms of economic and employment” of the deal, which includes contracts for the Bremen-based Lürssen Shipyard. Kampeter, a politician with Chancellor Angela Merkel’s conservative Christian Democratic Union, asked for the “confidential handling of the business data” because negotiations are still in progress and competition is expected from other countries.

Wasting it profligately, via Aero-News Network:

New C-27J Cargo Planes Stored In Arizona Boneyard

  • Military ‘Has No Use’ For For The Spartans

New C-27J Spartan cargo planes ordered by the U.S. Air Force are being delivered … directly to a storage “boneyard” in the Arizona desert. There are reportedly nearly a dozen new Spartans sitting on the ramp at Davis-Monthan AFB in Tucson, AZ.

The Dayton Daily News reports that the Air Force has spent some $567 million to acquire 21 new Spartans since 2007, but has found that the Air Force does not have missions for many of the aircraft.

The planes had originally been acquired because of their ability to operate from unimproved runways. But sequestration forced the Air Force to re-think the airplane’s mission, and it determined that they were not a necessity, according to an analyst with the Project for Government Oversight.

World Socialist Web Site gets right to it:

Germany, US push aggressive policies at Munich Security Conference

This weekend, some 400 leading international political and military figures and representatives of defense contractors, banks and corporations gathered at the Munich Security Conference (MSC) to discuss the global military and security situation. Both John Kerry and Chuck Hagel participated, marking the first time the US secretaries of state and defense both attended the conference.

The MSC featured a series of speeches by top German officials announcing an aggressive military policy, effectively repudiating the traditional restraints on German militarism that have existed since the collapse of the Nazi regime at the end of World War II. The belligerent tone of the conference was laid down by the former East German pastor and current president of Germany, Joachim Gauck.

Declaring that Germany must stop using its past—i.e., its role in starting two world wars in the 20th century—as a “shield,” Gauck called for the country’s armed forces to be used more frequently and decisively. “Germany can’t carry on as before,” Gauck argued. It was necessary to overcome German indifference and European navel-gazing, he said, in the face of “rapid” and “dramatic” new threats to the “open world order.”

And that complex again, via the London Telegraph:

China and Russia help global defence spending rise for first time in five years

  • New forecasts show China’s defence spending will outstrip Britain, Germany and France combined by 2015

Soaring defence budgets in China and Russia mean global military spending is growing for the first time in five years, according to new forecasts.

Spending across Asia and the Middle East is surging even as the military powers of Europe and the US are forced to scale back dramatically in the face of austerity cuts – contributing to a steady change in the balance of military power.

The figures were disclosed as the secretary general of Nato issued a stark warning that the West will cede influence on the world stage because of its falling spending.

After the jump, Asian zone and militarism crises, censorship run amok, an assault on academic freedom, censorship in Egypt, a Spanish muckraker fired, military corruption, the German government hacked, and more. . . Continue reading

Headlines of the day II: EconoEcoGrecoFukunoma


Today’s collection of headlines economic, political, and environmental begins with on ominous note with The Independent:

Advances in artificial intelligence could lead to mass unemployment, warn experts

  • Academics say half of US jobs could be automated within a decade or two

Experts have warned that rapidly improving artificial intelligence could lead to mass unemployment just days after Google revealed the purchase of a London based start-up dedicated to developing this technology.

Speaking on Radio 4′s Today programme, Dr Stuart Armstrong from the Future of Humanity Institute at the University of Oxford said that there was a risk that computers could take over human jobs “at a faster rate than new jobs could be generated.”

“We have some studies looking at to which jobs are the most vulnerable and there are quite a lot of them in logistics, administration, insurance underwriting,” said Dr Armstrong. “Ultimately, huge swathe of jobs are potentially vulnerable to improved artificial intelligence.”

Dr Murray Shanahan, a professor of cognitive robotics at Imperial College London, agreed, noting that improvements in artificial intelligence were creating “short term issues that we all need to be talking about.”

BBC News booms:

US economy growing at 3.2% in the fourth quarter, official figures show

The US economy grew at a 3.2% annual rate for the final quarter of 2013, according to the country’s Commerce Department.

Many predict that 2014 will produce the strongest growth since the end of the US recession in mid-2009.

Optimism over the health of the world’s largest economy led to a further easing of the Federal Reserve’s stimulus measures on Wednesday.

A cautionary note from Reuters:

Exclusive: U.S. banking regulator, fearing loan bubble, warns funds

A U.S. bank regulator is warning about the dangers of banks and alternative asset managers working together to do risky deals and get around rules amid concerns about a possible bubble in junk-rated loans to companies.

The Office of the Comptroller of the Currency has already told banks to avoid some of the riskiest junk loans to companies, but is alarmed that banks may still do such deals by sharing some of the risk with asset managers.

“We do not see any benefit to banks working with alternative asset managers or shadow banks to skirt the regulation and continue to have weak deals flooding markets,” said Martin Pfinsgraff, senior deputy comptroller for large bank supervision at the OCC, in a statement in response to questions from Reuters.

Among the investors in alternative asset managers are pension funds that have funding issues of their own, he said.

Banksters behaving badly from Reuters:

U.S. seeks $2.1 billion from Bank of America in fraud case

The U.S. government has raised the amount it is seeking in penalties from Bank of America Corp (BAC.N) to $2.1 billion after a jury found the bank was liable for fraud over defective mortgages sold by its Countrywide unit.

The request in a court filing late on Wednesday was based on gross revenue generated by the fraud, the government said. The Justice Department had previously asked for $863.6 million.

The initial request was based on gross losses it said government-sponsored mortgage finance companies Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB) incurred on loans purchased from Countrywide Financial Corp in 2007 and 2008.

Tapering with BBC News:

US Federal Reserve slows monthly bond-buying to $65bn

The US Federal Reserve announced a $10bn (£6bn) reduction in its monthly bond purchases from $75bn to $65bn in the second straight month of winding down stimulus efforts.

The central bank had been buying bonds in an effort to keep interest rates low and stimulate growth.

In a statement, the Fed said that “growth in economic activity picked up” since it last met in December.

Although the move was expected, US shares still fell on the news.

Screwing the poor with The Guardian:

Congress axes $8.6bn from food stamps in farm bill

  • Richer farmers get bigger subsidies in immediate snub to Barack Obama’s State of the Union call for action on inequality

Congress has agreed to cut $8.6bn from the federal food stamp program while increasing government subsidies for richer farmers, dealing a swift rebuke to Barack Obama’s call for a year of action on economic inequality.

Within hours of the president’s State of the Union speech, the House of Representatives voted overwhelmingly to adopt the measures as part of a wide-ranging farm bill that passed by 251 to 166 votes and has already been endorsed by the Senate’s Democratic leadership.

The cuts to federal food stamps come on top of a $5bn cut in November and will reduce payments to 1.7 million of the poorest Americans by an estimated $90 a month.

Golden State woes from the San Francisco Chronicle:

Amid one of the worst droughts in California’s recorded history, state officials say 17 communities and water districts could run dry within 100 days

The threatened towns and districts are mostly small and in rural areas. They get their water in a variety of ways, from reservoirs to wells to rivers. But in all cases, a nearly rainless winter has left their supplies approaching empty.

In the greater Bay Area, Cloverdale and Healdsburg in Sonoma County are among those at risk of running out of water. The small Lompico Water District in the Santa Cruz Mountains is also on the list.

Bloomberg itemizes:

California Farms Going Thirsty as Drought Burns $5 Billion Hole

The drought in California, the top U.S. agricultural producer at $44.7 billion, is depriving the state of water needed to produce everything from milk, beef and wine to some of the nation’s largest fruit and vegetable crops, including avocados, strawberries and almonds. Lost revenue in 2014 from farming and related businesses such as trucking and processing could reach $5 billion, according to estimates by the 300-member California Farm Water Coalition, an industry group.

The state was the driest ever in 2013, a third straight year of little moisture. California Governor Jerry Brown declared a drought emergency on Jan. 17 as arid conditions he called “unprecedented” continued well into the annual rainy season that runs from October through March. Reservoirs on Jan. 27 were at 61 percent of average, while the mountain snow-pack as of Dec. 30 that supplies most of the state’s water was at 20 percent of normal for that time of year, data show.

And a global story from New Europe:

UNDP: Income inequality increased compared with 1990s

UNDP published a report on income inequality in the developing countries stressing that inequality increased by 11 per cent between 1990 and 2010.

According to the report, more than 75 per cent of the population in developing countries is living today in societies where income is more unequally distributed than it was in the 1990s. The report underlined that inclusive growth policies are important policy tools for reducing income inequality.

Helen Clark, administrator of the UNDP said according to a press release that “inequalities on today’s levels are unjust in both developing and developed countries…Over the last few decades, poverty rates have declined in every region of the world; emerging market countries have grown with unprecedented speed; and life

Advice from China Daily:

Replace dollar with super currency: economist

The World Bank’s former chief economist wants to replace the US dollar with a single global super-currency, saying it will create a more stable global financial system.

“The dominance of the greenback is the root cause of global financial and economic crises,” Justin Yifu Lin told Bruegel, a Brussels-based policy-research think tank. “The solution to this is to replace the national currency with a global currency.”

Lin, now a professor at Peking University and a leading adviser to the Chinese government, said expanding the basket of major reserve currencies — the dollar, the euro, the Japanese yen and pound sterling — will not address the consequences of a financial crisis. Internationalizing the Chinese currency is not the answer, either, he said.

On to Europe and a regulatory call from Deutsche Welle:

EU presents more proposals to curb risky banking activities

  • The European Commission has proposed measures to rein in risky banking activities in heeding the lessons from the global financial crisis. It focused on stopping dubious trading by lenders “too big to fail.”

The proposals presented in Brussels on Wednesday centered on 30 large European banks, accounting for more than 65 percent of the EU’s total banking assets.

According to the suggestions made, these lenders would be banned from proprietary trading, a practice under which banks make bets using their own money and not that of customers.

The lenders could be forced to also separate other risky trading activities from their deposit-taking business which would make them far less vulnerable in a crisis situation.

Deutsche Welle again, with labor action:

European air traffic controllers go on strike over EU initiative

Air traffic controllers have begun a two-day strike over an EU initiative they fear will cause job cuts and more difficult working conditions, causing some delays. The EU is to vote on the measure on Thursday.

Air traffic controllers across several EU nations were expected to go on strike on Wednesday. The move was prompted by the EU’s Single European Sky initiative, which seeks to centralize the continent’s airspace and reduce congestion and inefficiencies costing airlines an estimated 5 billion euros ($6.8 billion) annually.

Some 20 flights out of Lisbon in Portugal were cancelled on Wednesday, while Rome’s Fiumincino hub was also hit with cancelations and delays. In anticipation of the focus turning to Paris, the civil aviation authority asked airlines to reduce traffic into the French capital by 20 percent.

German workers had originally planned on joining the strike action. However, an injunction filed by German flagship carrier Lufthansa last week prevented them from doing so.

Britain next and an alarm from Xinhua:

Warning bells ring over British current account deficit

The British economy performed well in 2013 with 1.9 percent GDP growth, and some economists predict growth of up to 3 percent this year, but warning bells are sounding over the size of Britain’s current account deficit.

Simon Wells, chief UK economist with HSBC Global Research, raised worries over the unbalanced nature of growth in the British economy and the current account deficit, which stands at 5.1 percent of GDP in Q3 2013, close to a peacetime record.

Wells said, “Of the 40 countries covered by HSBC economists, the UK has the fifth largest current account deficit. And while most countries have narrowed deficits over the past five years, the UK’s is one of the few that have widened.”

The Guardian takes note:

Mortgage lending at six-year high

  • Bank of England says £12.4bn of new mortgages were approved in December 2013

The number of mortgages taken out to buy homes reached its highest level in almost six years in December, figures from the Bank of England showed, as the housing market continued to gather speed despite the slide into winter.

A total of 71,638 loans were approved for house purchase, above the previous six-month average of 65,001 and the highest monthly figure since January 2008 when the credit crisis and economic slowdown started to take hold of the market.

The government’s Funding for Lending scheme to offer cheap fund to banks and building societies, and the second part of Help to Buy which offers a taxpayer-backed guarantee on mortgages up to 95%, have both made home loans cheaper and more accessible to those with small deposits.

And a polyglot headline from the London Telegraph:

The 800,000 people living in Britain with little or no English

  • Analysis of census figures shows how most people living in Britain who do not have a good command of English do not have a job

Migrants with little or no English are 50 per cent more likely to be unemployed than native speakers and three times as likely to have no formal qualifications.

The study also showed that those who do work are condemned to the lowest paid and most laborious jobs if they do not have a working command of English.

Significantly the problem is most acute among women. Overall 60 per cent of those living in England and Wales but unable to speak the national tongue are female.

Bordering on controversy with TheLocal.de:

UK and Germany locked in immigration debate

The UK and Germany are locked in the same debate over the arrival of a new wave of immigrants from eastern Europe. But despite their arguments being the same, their presentation is very different, argues The Local’s Tom Bristow.

A conservative party calls for new measures to prevent migrants moving abroad to access welfare benefits. The left hits back, defending freedom movement as a cornerstone of the European Union.

A slogan from the conservative party in the ruling coalition government is deemed populist, even racist by the pro-immigration camp – “Those who cheat are out.”

That slogan could have come from UK Prime Minister David Cameron – yet it came from the Christian Social Union (CSU), the Bavarian allies of Chancellor Angela Merkel.

Profiteering with The Independent:

Passports for profit: British company to make ‘disgusting amounts of money’ from controversial EU passport sale

A British company has been accused of making “disgusting amounts of money” from a controversial scheme by Malta to sell European Union passports to tycoons and celebrities ranging from a former Formula One world champion to a Chinese billionaire.

Henley & Partners, a private company registered in Jersey which specialises in “citizenship solutions”, stands to make at least €60m (£49m) from its role as the designer and principal contractor for the scheme, which will sell passports for €1.15m a piece.

The programme, which is due to begin processing its first applicants next month and will provide a right to reside anywhere in the EU, including Britain, has attracted sharp criticism both within the Mediterranean island and abroad.

Iceland next, and a counterfactual from Bloomberg:

Let Banks Fail Is Iceland Mantra as 2% Joblessness in Sight

Iceland let its banks fail in 2008 because they proved too big to save.

Now, the island is finding crisis-management decisions made half a decade ago have put it on a trajectory that’s turned 2 percent unemployment into a realistic goal.

While the euro area grapples with record joblessness, led by more than 25 percent in Greece and Spain, only about 4 percent of Iceland’s labor force is without work. Prime MinisterSigmundur D. Gunnlaugsson says even that’s too high.

“Politicians always have something to worry about,” the 38-year-old said in an interview last week. “We’d like to see unemployment going from where it’s now — around 4 percent — to under 2 percent, which may sound strange to most other western countries, but Icelanders aren’t accustomed to unemployment.”

Denmark next, and a walkout over a bankster win from The Guardian:

What would Birgitte do? Socialists quit Denmark coalition over energy deal

  • Goldman Sachs’s investment in state-owned energy prompts walkout and Borgen-esque political crisis

With Borgen no longer around to keep British audiences entertained, real-life politics in Denmark continues to give the fictional version a run for its money when it comes to drama.

After a recent spate of controversies and ministerial resignations, the Danish centre-left government suffered another blow on Thursday when the Socialist People’s party (SF) left the ruling coalition amid anger over Goldman Sachs’s investment in Denmark’s state-owned energy company.

Goldman’s 8bn kroner (£900m) purchase of a 19% share in Dong Energy has been championed by the government but caused a revolt among SF’s parliamentary group. After a night of tension and discussions, SF’s leader, Annette Vilhelmsen, announced her resignation and said her party was leaving the coalition.

Germany next, and do as we say, not as we do from Independent.ie:

Germany loosens own pension rules while demanding austerity from rest of EU

Germany’s coalition government presented a pension reform plan today that will cost €160bn to 2030 by letting some workers retire earlier, loosening the purse strings at home when Berlin has demanded austerity from its euro zone partners.

Despite criticism from industry and the pro-business wing of Chancellor Angela Merkel’s party, the cabinet endorsed what is likely to be the most expensive single measure of the legislative period when it moves through parliament in May.

An additional 900,000 workers will be able to retire earlier than expected aged 63 over the next two years provided they have worked for 45 years. Some mothers will get pension increases.

TheLocal.de has income:

Foreign investment floods into Germany

Foreign investment into Germany increased by almost 400 percent last year, rising to €23.4 billion, a UN report revealed on Tuesday. It comes amid rising consumer and investor confidence.

In 2012 foreign direct investment stood at just €6.5 billion.

But 2013′s rise was helped by major deals including the purchase of Kabel Deutschland by Vodafone for €5.6 billion.

Germany also rose up the global rankings of the world’s most attractive foreign investment locations to 14th from 40th the year before.

Europe Online admonishes:

Deutsche bank warns of challenging year ahead

Deutsche Bank is making progress in restructuring its operations but faces further costs as a result of a string of lawsuits, the co-chief of Germany’s biggest bank said Wednesday.

The coming 12 months “will be another year of challenges,” Juergen Fitschen said in Frankfurt.

Deutsche announced earlier this month a surprise fourth-quarter loss because of a weak performance by its key investment banking operations and hefty legal costs following the bank’s involvement in a series of scandals.

New Europe exudes:

Record-high for consumer confidence in Germany

Consumer confidence in Germany is rising, and according to the latest data by a research group it reached to a level, last seen in 2007.

According to international market research group GfK, consumer confidence in Germany reached 8.2 points in January from 7.6 points in December. The research group said that the January reading was higher than expected by analysts and propelled the consumer index to a level last recorded in August 2007. German citizens were more optimistic regarding their economic and income expectations and their willingness to buy was improved.

According to the press release, Germans consider the national economy to be clearly on the upturn at present and this is reflected in the fifth consecutive improvement in economic expectations. “In the wake of this, income prospects climbed to reach a 13-year high. Willingness to buy also improved and surpassed its seven-year high of the previous month,” the report says.

While Deutsche Welle declines:

Beer sales in Germany lowest since early 1990s

Over the past years, Germans have drastically reduced their beer consumption. Fresh figures showed 2013 was no exception, with sales reaching their lowest level since the country’s unification.

With Germany still considered to be a major beer-drinking nation, annual sales of alcoholic beer in the country reached a new low in 2013, the National Statistics Office ( Destatis) announced Thursday.

While the nation still had 1,300 breweries making about 5,000 varieties of the beverage, they sold only 94.6 million hectoliters last year, a fall of 2 percent compared with 2012 and a drop to levels last reached shortly after German unification in 1990.

On to Amsterdam and an increasingly common trend from DutchNews.nl:

Postal deliveries could be cut to three days a week, if EU says yes

If the European Union gives permission, Dutch postal company PostNL could cut its deliveries to three days a week, a spokesman says in Wednesday’s AD.

European Union rules state post must be delivered five days a week but moves are being made to relax this, the AD says. PostNL stopped Monday deliveries at the beginning of this year.

‘If the EU allows it, we will cut back to four or perhaps even three delivery days,’ spokesman Werner van Bastelaar told the AD.

DutchNews.nl falls off:

Dutch savings are down for the first time in 20 years

For the first time in 20 years the Dutch have less in their savings accounts, Nos television says on Wednesday.

Figures from the Dutch central bank, ING and national statistics office CBS show the total amount of savings has gone down €1bn a month since reaching a high point of €330.5bn last summer.

There are four main reasons for the decline, the CBS says: one in 20 households are so hard up they have no more money to put aside; others are using savings to pay off debts and mortgages; investing in the stock market is popular again; and people who have lost their jobs are using up their savings to live on.

France next and an economic sweet spot from TheLocal.fr:

French arms industry enjoys boom in trade

Crisis, what crisis? While certain sectors in France continue to suffer in the downturn France’s arms industry is doing a roaring trade. A new report, that won’t be welcomed by pacifists, revealed this week that sales of arms abroad have rocketed.

Despite the seemingly endless stream of bad economic news for France, there is at least one sector that’s booming: weapons. French arms makers confirmed €6.3 billion in orders to foreign countries in 2013, which represents a 31 percent jump on the previous year.

The figures released on Wednesday by the Ministry of Defence ensure France keeps its spot at number four among the world’s largest providers of weapons. The United States, the United Kingdom and Russia all sold more weapons than France in 2013.

Departures note from TheLocal.fr:

Foreign investors desert France in 2013: report

As if high unemployment, heavy public debt and an unhappy populace weren’t enough, France also saw a double digit drop in foreign investment in 2013, according to a new United Nations report on Wednesday.

Signalling yet more bad news for France’s troubled economy, a United Nations report said the country saw a 77 percent decline in direct foreign investment last year, while the global average was an 11 percent increase.

France’s results were the worst in the European Union, according to the United Nations Conference on Trade Development report released on Tuesday.

A culture war panic from France 24:

French parents pull children from school over ‘gender theory’ scare

France’s education chief threatened Wednesday to summon parents who pull their children from school after a wave of absenteeism. The row was sparked by a rumour about sex education classes that could become a new ideological battleground in France.

Thousands of parents in France received a text message on their mobile telephones last week urging them to keep their children from school on Monday. The collective action was to protest an alarming development in French primary schools: the attempt to teach students that “they are not born as boys or girls, but can choose to become one or the other.”

The grassroots campaign opposing teaching of so-called “gender theory” in French schools asked parents to go further by taking their kids out of school one day every month. It recommended this be done with no prior warning to teachers.

Hints of things to come? From TheLocal.fr:

‘First ever’ bill proposes legal cannabis in France

France is no Amsterdam when it comes to marijuana laws, in fact it has some of the toughest possession statutes in Europe, but a first of its kind bill proposed this week could change that. The lawmaker behind the legislation tells The Local why marijuana should be legalized in France.

People smoking a joint in France face a maximum penalty of a year behind bars and a €3,750 fine for the first offence, yet 13.4 million French people admit to sparking up at least once in their life. Even France’s top cop, Interior Minister Manuel Vallls, said in a recent interview, he’d tried it “maybe once.”

The numbers go up as you look at the younger portion of the population. France had the unhappy distinction of being the European “champion” of teen pot smokers in 2011 when 24 percent of its 16-year-old kids admitted to smoking at least once a month, daily Le Monde reported.

Swiss hard times intolerance from TheLocal.ch:

Support for immigrant quotas rises before vote

A plan by Swiss right-wing populists to reimpose immigration quotas for citizens from the European Union has won increased support ahead of a referendum, raising the prospect of a clash with Brussels, a new poll shows.

A total of 43 percent of those surveyed said they backed the “Stop Mass Immigration” measure which goes to a vote on February 9th, according to the survey released on Wednesday by public broadcaster SRG. That marked a major gain on the 37 percent support shown in a poll released just two weeks ago.

The survey was commissioned from the GfS Bern public opinion institute, which found that opposition to the measure had dropped by five points to 50 percent.

On to Spain and a warning from El País:

Brussels warns of risks to Spain from the crisis in emerging markets

  • Report says economic recovery “remains fragile”
  • Commission expects bad bank to have posted losses last year

The upbeat message Economy Minister Luis de Guindos gave to his colleagues at an Ecofin meeting on Tuesday on the Spanish economy contrasts with the more cautious tone of the final report on Spain’s compliance with the bailout program for its banks, made public on Wednesday by the European Commission (EC).

De Guindos told fellow European economy and finance ministers that he expects the economy to grow 1 percent this year, above the Spanish government’s official forecast of 0.7 percent, with the pace of activity sufficiently strong to allow net job creation. He also minimized the possibility of fallout from the latest crisis in emerging markets, particularly Argentina. “We can’t fall any more. Now the recovery begins,” De Guindos said, arguing that Spain “has scarcely any exposure to Argentina and other emerging markets.”

However, Brussels’ report, based on a joint mission by the EC and the European Central Bank to Madrid in the period December 2-13, warns that: “The economic recovery […] remains fragile as imbalances continue to be worked out, and subject to external risks such as a reversal of the current benign global financial environment and a slowdown in emerging markets, especially in Latin America, to which Spanish companies are particularly exposed.”

More misery demanded from TheLocal.es:

‘Spain’s record wage cuts not enough’: IMF

The International Monetary Fund has asked Spain to further reduce salaries even though it has already slashed average wages by 20 percent over the past two years – the fastest drop in the country’s democratic history.

The International Monetary Fund has revised up its 2014 growth forecast for Spain to 0.6 percent, or more than triple the figure it forecast in October last year, but this is still very modest and it continues to expect more.

The monetary body claims the 20 percent drop in average wages over the past two years does not make up for the excessive salary increases seen prior to that, a factor which they claim has contributed to Spain’s ailing unemployment rate.

El País reduces:

Spanish banks drastically cut exposure to sovereign debt

  • Sector sold 22.4 billion euros in government bonds in December
  • Lenders gearing up for ECB stress tests later this year

Spain’s banks in December picked up the pace at which they have been offloading their holdings of sovereign debt ahead of the solvency tests they will be subjected to by the European Central Bank later this year.

According to ECB figures released Wednesday, Spain’s banks took advantage of improved market conditions to sell 22.4 billion euros worth of government bonds, more than double the 10 billion they sold in November and October’s 8.9 billion. After the latest sell-off, the exposure of Spain’s banks to sovereign debt stands at 272 billion euros.

The extent of European banks’ exposure to sovereign debt will be one of the key features in the stress tests to which they will be submitted. If banks are required to write down the value of sovereign debt not being held to maturity to current market levels, this might entail them having to increase their capital to enhance their solvency.

Off the books with the London Telegraph:

Untaxed work equal to 25pc of GDP in Spain

  • Cash transactions carried out behind the Spanish taxman’s back in 2012 hit nearly €253bn

Untaxed transactions in Spain have surged to equal nearly a quarter of the country’s output as unemployed workers scrape a living in the black economy.

The cash economy has flourished since 2008, when the collapse of a building boom hurled Spain into a double recession, a report by Treasury experts and academics said.

Cash transactions carried out behind the taxman’s back in 2012 hit nearly €253bn, or 24.6pc of gross domestic product, according to the report released by GESTHA, a tax inspectors’ union.

More cultural warring from thinkSPAIN:

Mass protest outside European Parliament in Brussels over Spain’s abortion reform

AT least 2,000 people staged a demonstration outside the European Parliament building in Brussels yesterday (Wednesday) evening in protest over Spain’s abortion law reform.

As well as members of the public of all nationalities, organisations including the European Women’s Lobby, Abortion Right, the European Humanist Federation, Catholics for Choice and the International Planned Parenthood Federation were joined by MEPs from the socialists, liberalists, the ‘greens’ and United Left.

Banners read, ‘Rights for men, but also for women’; ‘Free abortion’, and ‘All of us are Spanish women’ – a message of support meaning restrictions on legal abortion could one day affect any of them.

El País draws the line:

Five regions rebel against Popular Party’s education reform

  • Commissioners claim Minister Wert’s law is step backward and segregates students

The regions not governed by the Popular Party on Wednesday objected to the controversial new Education Law, known as the LOMCE — the seventh overhaul of the public system since the restoration of democracy in Spain — as retrogressive and divisive, and lamented the lack of debate on the legislation.

Initially drawn up to address high dropout rates, the law also enhances the role of religion in schools and permits state funding for educational centers that segregate students by gender. The law was passed in Congress with only the votes of the PP, which has an absolute majority in the lower house.

At a news conference, the educational commissioners of the Basque Country, Andalusia, Asturias, Catalonia and the Canary Islands accused Education Minister José Ignacio Wert of a “lack of institutional loyalty” in failing to adequately consult the regions on the changes. The regions are responsible for the education and health services.

TheLocal.es enumerates:

One third of Spanish kids at risk of poverty

More than a third of children in Spain live at risk of poverty, the aid charity Save the Children said on Wednesday, blaming austerity measures for worsening the situation.

The number of under-18s “at risk of poverty or marginalization” — an official EU measure of various aspects of economic hardship — soared to more than 2.8 million in 2012, the charity said.

That was equivalent to 33.8 percent of Spain’s children, it said in a report that used the latest official European Union data.

El País deplores:

Council of Europe slams Spain for denying healthcare to illegal immigrants

  • Organization’s Committee on Social Rights concerned about general slide on basic protection

The economic crisis has undermined social protection in Spain. The Council of Europe, which oversees respect for human rights in 47 countries on the continent, on Wednesday expressed concern over “regressive legislative developments concerning access to health care by foreigners illegally present in the country.”

The conclusion is part of a wide-reaching report by the European Committee on Social Rights that examines whether national laws conform to the European Social Charter.

The 2013 conclusions, released on Wednesday, found that Spain was one of several countries that had regressed on social rights compared with earlier periods. Other states where healthcare, social welfare and occupational safety have been curtailed included Austria, France, Finland, Belgium, Bulgaria, Czech Republic, Denmark, Lithuania and Latvia.

On to Lisbon and a demand from the Portugal News:

Socialists demand pension cut clarification

The Portuguese Socialist (PS) party has demanded that the prime minister specify what pension and wage cuts were considered to be temporary and accused the government of acting with a lack of transparency and creating uncertainty among the population.

These criticisms were made by António Galamba MP, a member of the PS national secretariat at a press conference where he also accused the centre-right coalition of rehearsing “propaganda manourvres” and trying to “sell illusions”.

“Isn’t it time for the government to clarify what cuts are temporary and what are definitive? “, he asked, after accusing the government of a lack of transparency by creating a work group to prepare definitive cuts to the pension system.

Italy next and a rebuke from ANSAmed:

Council of Europe blasts Italy on pensions, poverty

  • Lacks ‘overall and coordinated approach’

Italy is failing to address growing levels of poverty and to provide retirees with an adequate level of subsistence, a Council of Europe committee said in a report released on Wednesday.

The report, drawn up by the European Committee of Social Rights, noted that Rome had not demonstrated ‘’the existence of an overall and coordinated approach providing adequate measures to combat poverty and social exclusion’‘.

Italy’s national statistics bureau Istat reported in late December that the number of people in crisis-hit Italy living in absolute poverty had doubled between 2005 and 2012 and tripled in the industrial north, up to 6.4% from 2.5%. More than 1.7 million families live in a state of absolute poverty – for a total of 4.8 million individuals – amid rising unemployment and a stubborn recession, Istat said.

Raising a ruckus with The Guardian:

Italian parliament erupts amid vote on central bank capital

Opposition MPs storm government benches after speaker cuts short debate on measure to boost commercial banks

There have been chaotic and at times violent scenes in the Italian parliament after the lower house speaker made unprecedented use of her powers to cut short a filibuster by deputies of Beppe Grillo’s Five Star Movement (M5S).

Late on Wednesday, M5S MPs stormed the government benches, put on symbolic gags and kept up a barrage of whistling after the speaker, Laura Boldrini, cut short the debate and ordered a vote on a complicated and intensely controversial measure to square Italy’s public accounts. One of Grillo’s followers said an MP from the governing majority had slapped her during the disorder.

Opposition MPs claim that the measure would hand more than €7bn (£5.8bn) of taxpayers’ money to the banks.

Emulation from TheLocal.it:

27 percent of Italians want to be more German

Over a quarter of Italians would like their country to be more like Germany, while some would prefer Italy to resemble Cuba or China, a poll this week has found.

Despite the anti-German rhetoric of populist politicians, targeting the country’s leader Angela Merkel, this week’s Ipsos poll showed that Italians may be warming to Europe’s economic powerhouse.

Twenty-seven percent of Italians said they would like Italy to more closely resemble Germany, swiftly followed by 19 percent opting for a more Norwegian approach.

After the jump, the latest on the Greek meltdown, Ukrainian uncertainty and admonitions, Turkish anxieties, Indian inflation, Thai turmoil, mixed news from China, Japanese easing, ecological alarms and woes, plus the latest edition of Fukushimapocalypse Now!. . . Continue reading

Headlines of the day II: EconoEuroEcoFukuFails


In line with the previous post, we begin today’s compendium of things economic, ecologic, and politic with the idiotic — another clueless quote from the very, very rich, this time via The Verge:

Kleiner Perkins founder says Silicon Valley elite are being treated like Jews in Nazi Germany

Tom Perkins, one of the co-founders of the Silicon Valley powerhouse venture capital firm Kleiner Perkins Caulfield & Byers, is afraid the next Kristallnacht — a night of violence against Jews before the start of World War II — will happen in the Bay Area.

Perkins, who is 81, perceives a “rising tide of hatred of the successful one percent” that mirrors the treatment of Jews in Nazi Germany, he says in a letter to the editor in the Wall Street Journal.

Class tensions in the San Francisco Bay Area recently flared up over the area’s skyrocketing rent and “Google buses,” private luxury coaches that shuttle wealthy tech workers to the office. Perkins specifically calls out the Occupy movement and the San Fransciso Chronicle for perpetuating anti-one percent rhetoric. This “progressive radicalism” is just like the fascist backlash against the Jews, Perkins argues.

On to the purely economic with a warning from CNBC:

US ‘out of ammunition’ to tackle economic ‘rut’: Phelps

The U.S. economy is in a “rut” and has been in stagnation since 1972, a Nobel Prize-winning economist told CNBC.

Edmund Phelps, who was awarded the Nobel Prize for Economics in 2006, said the U.S. government has run out of ideas about how to fix the economy.

“Governments have thrown all sorts of ammunition at it including concocting the housing boom. And we are kind of out of that ammunition and we have to dig deeper if we are going to get out of this rut,” Phelps told CNBC in a TV interview.

Reuters gives us another case of Banksters Behaving Badly, or so it’s claimed:

Exclusive: Bank of America’s trading practices have been probed, filing shows

The U.S. Department of Justice and the Commodity Futures Trading Commission have both held investigations into whether Bank of America engaged in improper trading by doing its own futures trades ahead of executing large orders for clients, according to a regulatory filing.

The June 2013 disclosure, which Reuters recently reviewed on a website run by the securities industry regulator FINRA, sheds light on the basis for a warning by the Federal Bureau of Investigation on January 8.

The warning, in the form of an intelligence bulletin to regulators and security officers at financial services firms, said that the FBI suspected swaps traders at an unnamed U.S. bank and an unnamed Canadian bank may have been involved in market manipulation and front running of orders from U.S. government-owned mortgage giants Fannie Mae and Freddie Mac.

Reuters has since learned that Bank of America’s trading practices regarding Fannie and Freddie are the subject of probes, and that the investigations are ongoing.

From USA TODAY, cause for anxiety:

Why emerging markets worry Wall Street

The big bull market in U.S. stocks is confronted with an unexpected headwind: a fresh bout of financial turbulence in emerging markets.

Wall Street is a world away from Turkey and Argentina and the other developing economies dotting the globe. But recent news of financial tumult and plunging currencies in some emerging markets, coupled with bad memories of past crises over the past 20 years that began in Mexico, Asia and Russia, has imported a boatload of financial angst back to the United States.

Indeed, the great bull market on Wall Street has suddenly run into a stumbling block that few investment strategists were even talking about at the start of the year: swooning currencies and capital flight out of vulnerable emerging markets like Turkey and Argentina.

The financial turbulence, which is being greatly exacerbated by a slowdown in growth-engine China, has raised fears of a potential crisis that could inflict damage on these developing countries’ economies and perhaps infect other nations as well. That lethal combination could ultimately crimp earnings of U.S. multinationals. It could also prompt investors to dump risky assets, a response that already seems to be underway.

Bloomberg admonishes:

BlackRock’s Fink Warns of ‘Too Much Optimism’ in Markets

BlackRock Inc. Chief Executive Officer Laurence D. Fink warned there is “way too much optimism” in financial markets as he predicted repeats of the market turmoil that roiled investors this week.

“The experience of the marketplace this past week is going to be indicative of this entire year,” Fink, 61, told a panel at the World Economic Forum in Davos, Switzerland today. “We’re going to be in a world of much greater volatility.”

Fink, who runs the world’s largest asset manager, spoke after a selloff in emerging markets that was triggered by concern about China’s economic growth and the Federal Reserve’s tapering of its monetary stimulus later this year. The MSCI World Index slid the most this week in five months.

The London Telegraph chimes in from on high:

Emerging market rout turns serious, punctures exuberance in Davos

  • IMF’s deputy-director says the Fund is watching the violent gyrations around the world “very carefully”

The worst emerging market rout in five years has raised fresh fears of global contagion, puncturing the mood of exuberance at the World Economic Forum in Davos.

Brazil’s President Dilma Rousseff sought to reassure investors that this week’s currency collapse in Argentina would not spread to the Brazilian real, insisting that all contracts would be honoured and that foreign funds would be “treated well”.

“Today, the stability of our currency is a central value of our country,” she said. The real has weakened by 20pc against the dollar this year, breaking through the crucial line of 2.40 in trading on Friday.

The IMF’s deputy-director, Min Zhu, said in Davos that the Fund is watching the violent gyrations around the world “very carefully”, saying the effect of bond tapering by the US Federal Reserve is causing global liquidity to dry up.

Another ominous warning, this time from The Guardian:

ILO warns young hit hardest as global unemployment continues to rise

  • International Labour Organisation says firms are increasing payouts to shareholders rather than investing in new workers

The world could face years of jobless economic recovery, with young people set to be hit hardest as global unemployment continues to rise this year, a report from the International Labour Organisation warns.

As the World Economic Forum kicks off in the Swiss town of Davos on Wednesday with a focus on growing inequality, the ILO has highlighted a “potentially dangerous gap between profits and people”.

The UN agency forecasts millions more people will join the ranks of the unemployed as companies choose to increase payouts to shareholders rather than invest their burgeoning profits in new workers.

And from Jiji Press, more job killing pushed for the fast-track:

Japan, U.S. Confirm Cooperation for Early TPP Accord

Japanese Minster of Economy, Trade and Industry Toshimitsu Motegi and U.S. Trade Representative Michael Froman agreed Saturday that the two countries will continue cooperation in helping conclude Trans-Pacific Partnership free trade talks as early as possible, Motegi told reporters after the meeting.

At the meeting held in the Swiss resort of Davos, Motegi called on the U.S. side to show flexibility for the early conclusion of the trade talks among 12 countries.

Froman responded by saying that both Washington and Tokyo should flex their muscle, according to Motegi.

On to Europe and bankster wishes from the Irish Times:

Draghi favours quick break in link between sovereign and bank debt

  • Leaders have taken euro out of crisis despite end-of-the-world scenarios, says Schäuble

European Central Bank president Mario Draghi told global leaders in Davos yesterday he favoured an “accelerated time line” in breaking the link between euro area sovereign and bank debt.

Despite a “largely positive” economic outlook for 2014, he warned of a punishing market reaction if euro countries rolled back their reforms.

Discussing a European banking union to oversee and wind up banks, Mr Draghi said struggling institutions could access public money after bailing in creditors.

BBC News misses the number:

Davos 2014: Eurozone inflation ‘way below target’

The head of the International Monetary Fund (IMF) has warned that deflation remains a real risk to economic recovery in the eurozone.

Despite signs of recovery across the world, Christine Lagarde said that potential risks must not be ignored. One of these was the fact that eurozone inflation, at 0.8%, remained “way below” the 2% target set by the European Central Bank (ECB).

She was speaking on the final day of the World Economic Forum, in Davos.

On to Britain and more austerian misery from The Independent:

‘Bedroom tax’ and benefits cuts draining councils’ emergency funds

  • Authorities had been forced to dip into funds allocated to other services to cope with the surge in numbers of households appealing for help

Councils have been hit by a dramatic increase in requests for emergency financial help from people struggling to make ends meet following the introduction of the “bedroom tax” and other cuts to benefits.

More than 200,000 contacted their town halls in the six months after the latest benefits squeeze came into effect, the Local Government Association has estimated.

It also said that many authorities had been forced to dip into funds allocated to other services to cope with the surge in numbers of households appealing for help.

The parliamentary outs long for the good old days, via RT:

UK shadow govt eyes reintroducing 50% tax rate for top earners

Shadow Chancellor Ed Balls says Labour will reintroduce the 50 percent tax rate for people earning over £150,000. This comes as part of an election vow, together with promises to balance the government’s books and to clear the budget deficit.

A promise to bring back the tax on bank bonuses and reduce pension tax relief for the highest earners came in a speech to the Fabian Society Balls delivered on Saturday. However, he admitted that these measures would not be enough to balance the books.

“And when the deficit is still high, when tough times are set to last well into next parliament, when for ordinary families their real incomes are falling and taxes have risen, it cannot be right for David Cameron and George Osborne to have chosen to give the richest people in the country a huge tax cut,” he said.

The last Labour government, under Gordon Brown, raised the upper tax band from 40% to 50% in response to the recession in 2010, but the coalition cut it back to 45% in April 2013.

And from the Lancashire Telegraph, expressive downsizing:

Thwaites sign leaves Blackburn brewery bosses redfaced

BREWERY bosses were left red faced when their iconic lighted sign was turned into a profanity.

Some of the Thwaites Brewery letters atop the Blackburn building fell into darkness as people left town centre shops and offices last night.

With just the words H, I and E blacked out, the embarassing message was broadcast to the entire town.

It comes after news this week that the brewery is to axe up to 60 jobs.

The sign in question, via Nothing to do with Abroath [and, yeah, th word’s sexist, but there were just those letters to work with, so we’ll give a pass and a smile]:

BLOG Twat

On to Sweden and a refreshing note from CBC News:

Bastion of tolerance, Sweden opens wide for Syria’s refugees

  • Asylum offer testing Swedes’ patience, but forcing Europe to respond

On the northern fringes of Europe, Sweden has offered its hand to more Syrian refugees than any other Western nation, granting those who make it here permanent residency. And while its generosity has caused some tensions on the home front, including a modest rise in the anti-immigrant right, that has not stopped the Swedish government from lobbying its European counterparts to open their doors as well.

By way of contrast, here’s how Carlos Latuff sees the immigration policies of Greek Prime Minister Antonis Samaras:

Samaras’ anti-immigration policy

Samaras’ anti-immigration policy

From Deutsche Welle, fighting the right:

Demonstrations against Viennese right-wing ball turn violent

  • Several protesters have been arrested during protests against a ball in Vienna that is a traditional venue for right-wing figures. Police reported a number of arrests and cases of vandalism.

Police in the Austrian capital, Vienna, say they arrested about a dozen people on Friday evening after initially peaceful protests, involving some 6,000 demonstrators, against the so-called Academics Ball (Akademikerball) in the city’s Hofburg palace turned violent.

“We have several arrests and also injured police officers,” a police spokeswoman said. Police also reported damage to storefronts and at least one police vehicle.

Police closed off large sections of the inner city ahead of the ball, which forms the focus for left-wing protests every year. Parts of the area were also closed to journalists, a move that drew criticism from Austrian news organizations as limiting media freedom.

On to Paris and holding steady with TheLocal.fr:

Moody’s maintains French debt rating

Moody’s held its French credit rating at Aa1 Friday but maintained a negative outlook, days after President Francois Hollande announced a batch of business-friendly measures to fire up growth.

The US agency affirmed the bond rating one notch below the top AAA rating.

Moody’s voiced scepticism about the reforms Hollande announced earlier this month, a “responsibility pact” which includes lowering labour taxes in exchanges for fresh hiring by companies.

“The implementation and efficacy of these policy initiatives are complicated by the persistence of long-standing rigidities in labour, goods and services markets as well as the social and political tensions the government is facing,” the agency said in a statement.

But the London Telegraph sounds an alarm with a backhanded compliment:

France could destroy the euro, says Christopher Pissarides

  • Nobel laureate believes the ability of France to reform will decide the eurozone’s fate

France could destroy the euro if the government’s gamble on supply side reforms fails to pull the economy out of its chronic malaise, Nobel laureate Sir Christopher Pissarides has warned.

Sir Christopher, who won the the 2010 Nobel Prize for economics, said the ability of Europe’s second largest economy to implement sweeping changes would decide the fate of the single currency.

He warned French president Francois Hollande’s special blend of “supply-side socialism” would leave the fragile economy vulnerable to shocks for several years.

A more upbeat take from Independent.ie:

Schaeuble ‘very optimistic’ on France economy after Hollande plans

GERMAN Finance Minister Wolfgang Schaeuble said today that he was optimistic France would emerge stronger once it implements the economic reforms announced last week by President Francois Hollande.

“France is and remains a strong country and France will make the right decisions,” Schaeuble said at the World Economic Forum in Davos in response to a question about whether Germany’s neighbour had done enough to bolster its struggling economy.

“We’ve seen that the French president has made the necessary decisions and I think it is the right path,” Schaeuble added. “I am very optimistic that the role of France will be strengthened through this and that we can bring Europe forward together.”

And from FRANCE 24, wiseguys on the farm:

Organised crime targets French countryside

On January 21, French gendarmes broke up a highly specialised international criminal organization. It wasn’t robbing armoured cars, luxury jewelry stores in Place Vendôme or tourists on the Paris Métro – it was stealing tractors.

The gang had mainly targeted dealerships for John Deere farm machinery, later selling the stolen tractors in Germany, Hungary and Romania.

The robbery that led to the network’s undoing occurred on the night of November 2-3, 2012, when three tractors were stolen from a farm machinery dealership in Haute-Vienne in the centre of France. Despite the apparently unusual nature of the crime, the local police quickly realized that this was not an isolated phenomenon. They suspected the existence of a criminal organization, and passed the case to the gendarmerie’s Central Office for the Fight against Itinerant Crime, which uncovered a network of international scope.

Off to Spain and business as usual from El País:

Tech giants taunt the taxman

  • Major US technology groups paid Spain’s revenue agency just 1.2 million euros in 2012
  • Apple, Google, Amazon, Facebook, eBay and others use fiscal engineering to avoid payments

All the major US technology groups continue to dodge the Spanish taxman. The fiscal engineering tactics developed by their advisors allow them to pay hardly any tax on their business operations in Spain. Financial data for the main Spanish affiliates of Google, Apple, Amazon, Facebook, Yahoo, eBay and Microsoft show that their joint provisions for tax on profits in 2012 — the last year for which figures are available — was just 1,251,608 euros. That’s to say: 1.2 million in taxes among seven giants of the industry.

This aggregate figure is not taken from their tax filings but from their annual accounts, which must be deposited at the Spanish Business Register, and which reflect the money that the companies provision in a given year for tax on profits.

This aggregate figure conceals the fact that some companies paid taxes while others claimed tax credits or deferred tax payments after incurring losses. The accounting provisions may slightly differ from the actual tax filings because of timing issues.

thinkSPAIN departs:

Exodus of foreign residents from Spain rises 13-fold in one year

FOREIGN residents in Spain who have left the country due to lack of work have multiplied in number by 13 in the last year, according to the National Institute of Statistics (INE).

By the end of 2011, a total of 15,229 non-Spaniards had returned to their countries of origin or moved to other nations altogether due to being unable to find a job – but by the end of 2012, this number had grown to 190,020.

Figures for 2013 will not be known until this time next year.

And El País looks for help from above:

Saint “might help Spain out of crisis,” says interior minister

  • Jorge Fernández Díaz says he is convinced 16th-century nun is “interceding”

Interior Minister Jorge Fernández Díaz on Friday disclosed the existence of a previously unknown factor that might help Spain pull out of its deep economic crisis.

Speaking at the tourism fair FITUR in Madrid, Fernández Díaz said he was convinced that Saint Teresa of Ávila, the 16th-century nun, is “interceding” for Spain “during these harsh times.”

The revelatory statement was part of the presentation of “Huellas de Santa Teresa” (or, Traces of Saint Teresa), a project to celebrate the 500th anniversary of her birth through a tour of 17 cities where the saint established outposts for the Discalced Carmelites, a branch of the Carmelites that she founded.

While thinkSPAIN downsizes:

Coca-Cola staff facing redundancy go on strike

STAFF at the four Coca-Cola factories due to be shut down in Spain have gone on an ‘indefinite’ strike after hearing the firm planned to axe 1,250 jobs.

The plants in Fuenlabrada (Madrid), Alicante, Palma de Mallorca and Colloto (Asturias) are set to go at the end of February and 500 employees will be relocated whilst the rest will join the dole queue.

A series of demonstrations are planned by the Fuenlabrada workers, and it is expected staff from the other three plants will join in.

The company, Coca-Cola Iberian Partners, is financially healthy, but wants to ‘consolidate’ its operations by centralising production more ‘to improve efficiency’.

After the jump, the Greek crisis continues, Ukrainian compromise, Indian economic woes and cola wars, Thai elections, Singapore in a sling, Chinese inflation and austerity, Japanese bankster profits, toxic microbeads in California water, tar sands pushes, purple GMNO tomatoes, and Fukushimapocalypse Now!. . . Continue reading

Headlines of the day II: EconoEcoGrecoSinoFuku


Today’s compendium of things economic, political, and environmental begins in the U.S. with a weighty entry from Pacific Standard:

Grand Obese Party?

Researchers have found a statistically significant correlation between support for Mitt Romney and a pudgy populace.

Seems Republicans really are the party of fat cats.

Writing in the journal Preventative Medicine, a pair of University of California-Los Angeles researchers examined county-level obesity rates and voting patterns. After controlling for various factors known to influence weight, such as poverty and educational attainment, they found a small but statistically significant correlation between support for 2012 presidential candidate Mitt Romney and a pudgy populace. Specifically, a one percent increase in county-level support for Romney corresponds to a 0.02 percent increase in age-adjusted obesity rates.

The researchers argue this reflects poorly on the Republican party’s emphasis on “personal responsibility” for reducing obesity risk. Successful fat-fighting strategies “will necessarily involve government intervention,” they argue, “because they involve workplace, school, marketing and agricultural policies.”

Bigger government or bigger waistlines: The choice is yours.

From the Los Angeles Times blowback cosmetics:

Tech industry in San Francisco addresses backlash

Tech industry leaders launch a goodwill campaign in San Francisco, promising to create more jobs and affordable housing.

Their first stab at reconciliation: addressing complaints about the 18-foot-tall shuttles that clog narrow streets and block city bus stops. The shuttles frequently cause delays for city buses, making some residents fume that they have to cool their heels in old dingy vehicles while those who work for some of the world’s wealthiest companies get plush seats, tinted windows, air conditioning and Wi-Fi.

The standoff came to a head this week when San Franciscans turned out for a noisy public hearing to assail a pilot program to charge the shuttles a small fee for using city bus stops. They demanded that the city address the growing economic inequality.

The hearing came just hours after dozens of protesters blocked a bus bound for Google and another bound for Facebook for about 45 minutes, hanging a sign on one that read “Gentrification & Eviction Technologies.”

More from Salon:

When companies break the law and people pay: The scary lesson of the Google Bus

  • All over America, big corporations flout laws or even make their own, while ordinary people face harsh penalties

Ever since Rebecca Solnit took to the London Review of Books  to ruminate on the meaning of the private chartered buses that transport tech industry workers around the San Francisco Bay Area (she called them, among other things, “the spaceships on which our alien overlords have landed to rule us,”) the Google Bus has become the go-to symbol for discord in Silicon Valley.

From the Los Angeles Times, a new Bay Area bankster for the University of California:

UC’s new investment chief’s compensation could top $1 million

The hiring of Canadian investment fund exec Jagdeep S. Bachher and his pay package trigger little discussion, but two regents oppose paying new Berkeley provost $450,000 a year.

The UC regents on Thursday hired an executive of a Canadian investment fund to be the chief manager of the university system’s $82 billion in endowment and pension investments and will pay him more than $1 million a year if he achieves good returns.

Although that pay package triggered little public discussion, the salary for another new executive hire attracted more opposition at the regents meeting here. Some regents opposed the $450,000-a-year salary for Claude Steele, who is becoming UC Berkeley’s provost and second-in-command. They complained that the pay is higher than that of some chancellors.

For the new investments chief, Jagdeep S. Bachher, the regents approved a $615,000 base salary and set a maximum total payout of $1.01 million if UC investments perform well. That would be slightly less than the $1.2 million that Marie N. Berggren was paid in 2012, her last year before she retired in July. The compensation comes mainly from investment returns, not tuition or tax revenues, officials said.

But the real bucks go elsewhere, says BBC News:

JP Morgan boss Jamie Dimon pay rises to $20m in 2013

The chairman and chief executive of JP Morgan, Jamie Dimon, will be paid $20m (£12.1m) for the past year’s work.

Mr Dimon’s pay was cut to $11.5m in 2012 following huge trading losses. This was half the $23m he received in 2011.

JP Morgan’s profits fell 16% last year, after costs resulting from legal issues dented the bank’s figures.

Mr Dimon was paid $1.5m as a basic salary, and an additional $18.5m in shares, the company said.

And more good news for banksters from Al Jazeera America:

Holder: US will adjust banking rules for marijuana

  • News comes as Texas Gov. Rick Perry announces he will support policies that favor marijuana decriminalization

Attorney General Eric Holder said Thursday that the Obama administration plans to roll out regulations soon that would allow banks to do business with legal marijuana sellers.

During an appearance at the University of Virginia, Holder said it is important from a law enforcement perspective to give legal marijuana dispensaries access to the banking system so they don’t have large amounts of cash lying around.

Currently, processing money from marijuana sales puts federally-insured banks at risk of drug racketeering charges. Because of the threat of criminal prosecution, financial institutions often refuse to let marijuana-related businesses open accounts.

Mixed news for workers from CNBC:

US manufacturing growth slows in January: Markit

U.S. manufacturing growth slowed in January for the first time in three months, hobbled by new orders, though a recent trend of stronger growth appeared to be intact, an industry report showed on Thursday.

Financial data firm Markit said its preliminary U.S. Manufacturing Purchasing Managers Index dipped to 53.7 from December’s reading of 55.0. Economists polled by Reuters expected no change.

Slower rates of output and new order growth were the main factors behind the fall, the survey showed. Output slipped to 53.4 from 57.5 while new orders fell to 54.1 from 56.1.

And the company run by America’s richest family runs into rough waters, via Quartz:

Chinese state TV has accused Wal-Mart of skirting inspections to sell even cheaper goods in China

China Central Television claims to know the secret behind Wal-Mart’s low prices at its stores in China. The state-owned TV network, better known as CCTV, said on Jan. 23 that the US retailer has been allowing products from unlicensed suppliers on to its shelves, and thus bypassing quality and safety checks.

Wal-Mart’s response (paywall), the Wall Street Journal reports, is that the company only fast-tracks items from suppliers with which it has already been doing business, and then only in certain limited cases. (Wal-Mart hasn’t responded to questions from Quartz.)

The four-minute CCTV report, titled “Wal-Mart’s ‘special channels’ secret,” features shots of what CCTV says are company documents that show managers signed off on over 600 products that lacked licenses for distribution. The program says the store passes off sub-standard goods as belonging to well-known brands.

Reuters has more bad news for Wal-Mart workers:

Wal-Mart’s cuts 2,300 jobs at Sam’s Club

Wal-Mart Stores Inc said on Friday it had cut 2,300 jobs, or roughly 2 percent of the total workforce at its Sam’s Club retail warehouse chain, its biggest round of layoffs since 2010.

The action follows a lackluster U.S. holiday season and layoffs announced earlier this month from U.S. retailers Macy’s Inc, J.C. Penney Co Inc and Target Corp.

Wal-Mart company spokesman Bill Durling said in a telephone interview that the cuts will include hourly workers and assistant manager positions.

Bumpy waters from Bloomberg:

S&P 500 Slides Most Since June on Emerging Market Turmoil

U.S. stocks sank the most since June, capping the worst week for benchmark indexes since 2012, as a selloff in developing-nation currencies spurred concern global markets will become more volatile.

The Standard & Poor’s 500 Index (SPX) retreated 2.1 percent to 1,790.31 at 4 p.m. in New York to close at the lowest level since Dec. 17. The benchmark index declined 2.6 percent this week. The Dow Jones Industrial Average (INDU) slid 318.24 points, or 2 percent, to 15,879.11 today. The 30-stock gauge lost 3.5 percent this week. Trading in S&P 500 stocks was 52 percent above the 30-day average at this time of day.

Background from Nikkei Asian Review:

Emerging-nation currencies fall in chain reaction

Behind this development are concerns that investors will pull their money out of emerging markets because the U.S. has started to taper its quantitative monetary easing this month.

Argentina’s peso plunged 12% on Thursday. Earlier that day, a senior Argentine government official told reporters that the nation’s central bank did not buy or sell dollars on Wednesday. A view that the bank is allowing the peso to slide spurred further selling of the currency.

The peso’s drop triggered a rush to exchange funds in emerging-nation currencies to dollars and yen. The Turkish lira weakened to around 2.3 to the dollar on Friday, a record low. The currency has declined about 7% so far this year. Local media reported that the Turkish central bank intervened Thursday but to no avail. Meanwhile, the yen strengthened to the 102 range against the greenback.

The South African rand dropped to the lowest level in five years against the dollar. A strike by workers at a key platinum mine led to concerns that a slowing of resource exports would hamper the country’s ability to acquire foreign exchange reserves, fueling sales of the rand.

From Reuters, a graphic look at the Argentine currency’s collapse:

BLOG Peso

The Financial Express frets:

World Economic Forum: Fear of China ‘hard landing’, Japan row, stalks Davos

The risk of a hard landing for the economy in China as well as the threat of military conflict with Japan stoked fears at the World Economic Forum in Davos today.

Days after the world’s second-largest economy registered its worst rate of growth for more than a decade, top politicians and economists at the annual gathering of the global elite said the near-term outlook was bleak.

Li Daokui, a leading Chinese economist and former central bank official, said: “This year and next year, there will be a struggle, a struggle to maintain a growth rate of 7-7.5 per cent, which is the minimum to create the 7.5 million jobs every year China needs.”

And The Guardian counts seats:

The 85 richest people in the world: men still in the driving seat

  • Women need only seven seats, mostly on the bottom deck, on the £1tn double-decker bus revealed by Oxfam this week

The list of 85 shows that if this group – whose wealth tops £1tn – can squeeze on a double decker bus, then Mexico’s telecoms magnate Carlos Slim swaps driving responsibilities with Microsoft’s Bill Gates and the tiny group of wealthy women need only seven seats, mostly on the bottom deck. Photograph: Peter Macdiarmid/Getty Images

At its snowy retreat in the Swiss Alps, the World Economic Forum is debating how much inequality is too much. The aid charity Oxfam pointed out that a glance through the richest 100 people in the world shows that the pendulum has already swung heavily in favour of an elite group: the top 85 in the Forbes rich list control as much wealth as the poorest half of the global population put together.

A look down the list of 85 shows that if this group – whose wealth tops £1tn – can squeeze on a double decker bus, then Mexico’s telecoms magnate Carlos Slim swaps driving responsibilities with Microsoft’s Bill Gates and the tiny group of wealthy women need only seven seats, mostly on the bottom deck.

Another global story from New Europe:

IEA: Main Oil and Gas Flows To Move To Asian Region

A working visit to Astana, International Energy Agency (IEA) Executive Director Maria van der Hoeven presented the World Energy Outlook 2013, saying that in the nearest future the main trade flows of oil and gas will move to the Asian regions, which will change the geopolitics of oil.

“Northern America’s need for import of crude oil will practically disappear by 2035, and that region will become a key exporter of petroleum products. At the same time, Asia will become a center of the world’s crude oil market: large volumes of crude will be delivered to this region through a few strategically important transport routes” van der Hoeven said.

According to her, crude oil will be supplied to Asia not only from the Middle East, but also from Russia, the Caspian region, Kazakhstan, Africa, Latin America, and Canada.

The Global Times brings the focus to Europe:

Euro zone recovery fragile, fiscal consolidation should continue, says ECB president

The European Central Bank (ECB) President Mario Draghi said in Davos on Friday that the recovery of the euro zone economy is fragile and fiscal consolidation should continue.

Addressing the 44th World Economic Forum Annual Meeting, Draghi said, “the bottom line of this is that we have seen the beginning of a recovery which is still weak, which is still fragile and it’s still uneven.”

According to Draghi, improvements have been witnessed on the financial markets and the “very accommodative” monetary policy was being passed through to the real economy.

A bankster rules struggle from New Europe:

EU finance ministers, MEPs set for clash over bank resolution rules

European finance ministers will hold talks Tuesday on the resolution mechanism for failing Eurozone banks agreed in late December. Greek presidency sources confirmed that the new ECOFIN president, Ioannis Stournaras, will inform his counterparts on the positions of the European Parliament on the current agreement, as presented in a recent letter addressed to the presidency. In their letter, the MEPs make it clear that they will block SRF’s intergovernmental part.

Back in December the 28 EU finance ministers agreed to a general approach on the rules to close failing banks, which included the creation of an initial 55 billion-euro resolution fund over the next 10 years using bank levies. The formation and the functioning of the fund would be set up in a separate agreement among nations, excluding EU’s lawmakers.

The European Parliament also asks the simplification of the functioning of the single resolution board, so as the decision on the closure of a failing bank to be taken by the European Commission and not by the Member States.

More rule-wrangling from EUobserver:

EU audit reform reduced to ‘paper tiger’

The EU is close to overhauling rules for financial auditors, but critics say the reform will be a paper tiger unable to break up the dominant position of the world’s four biggest audit firms.

The legal affairs committee of the European Parliament on Tuesday (21 January) approved a draft agreement struck late last year with member states and the European Commission on the so-called audit reform package.

A jaundiced eye cast by the London Telegraph:

EU bank bonus rules will be ‘avoided’, says Fitch

  • The European Union bonus cap will prove ineffective in reducing banking industry pay, according to Fitch

Banking industry pay will not fall as a result of the incoming European Union cap on bonuses, according to Fitch.

The ratings agency warned that an “inconsistent” approach in the enforcement of the cap, as well as banks using loopholes in the new law to “avoid” paying lower bonuses, would mean overall compensation levels are unlikely to decrease.

In a report, Fitch pointed to a survey by the German financial regulator of the implementation of the cap among domestic banks that showed many lenders continuing with their old pay practices.

Corporate Europe Observatory looks at the bigger picture:

A union for big banks

Far from being a solution to avoid future public bailouts and austerity, Europe’s new banking union rules look like a victory for the financial sector to continue business as usual.

With the financial crisis, member states took over massive debts originated in the financial sector to save banks. Four and a half trillion euros had been risked for bailouts – and the final bill was 1,7 trillion euro. Not only did this send national economies spiralling downwards and set off a public debt crisis, it also led to a regime of harsh austerity policies, imposed by the EU institutions and the IMF as conditions for loans.

With that in mind, the banking union sounds heaven sent. It is claimed to make the banking sector safe, and should there be problems, a new system would ensure failed banks are wound down in an orderly manner with expenses paid by the banks themselves, with only a minimal cost to the public purse. An end not only to financial instability, but to austerity loan programmes as well.

If all this sounds unreal, it’s because it is. The banking union has been oversold as a fix to the banking sector. It may sound appealing that in the wake of the financial crisis, the potential power of EU institutions should be employed to address the dangers of financial markets. But in practise, the model adopted has deep flaws and carries so many risks, that one might ask if the point is to protect the public or serve the big banks.

On to Britain and hints of a failed divorce from EUbusiness:

Britain’s EU referendum suffers big setback

Britain’s planned 2017 referendum on whether to stay in the European Union was close to collapse Friday after Prime Minister David Cameron’s party suffered a major setback.

A vote in the House of Lords, the upper chamber of parliament, means that a bill proposing the in/out referendum looks likely to run out of time to become law. Members of the Lords voted to change the wording of the question that British voters would be asked on the subject of Britain’s membership of the 28-nation bloc.

The original wording of the question as included in the bill was: “Do you think that the United Kingdom should remain a member of the European Union?”

Following fierce debate, members of the Lords voted by a majority of 87 to amend it after determining that question was misleading. They did not introduce an alternative, though one peer proposed: “Should the UK remain a member of the EU or leave the EU?”

Sky News warns:

Nestlé Chair Warns Over UK Exit From Europe

  • Food giant boss Peter Brabeck-Letmathe tells Sky News that withdrawal from the trading bloc could put UK investment at risk.

The consumer goods giant Nestle would be forced to re-evaluate the extent of its presence in the UK if Britain decided to leave the European Union, its chairman has told Sky News.

In an interview during the World Economic Forum in Davos, Peter Brabeck-Letmathe said the company was committed to its business in the UK but that he could not envisage a separation from its biggest trading partner being in the country’s interest.

Nestle, which makes Nespresso coffee capsules and Kit-Kat chocolate bars, employs approximately 8,000 people in the UK and accounts for exports worth roughly £400m. Its other brands include Nescafe, Smarties and Yorkie.

From The Independent, A UC-like salary in the U.K.:

Fury at £105,000 pay rise for Sheffield University boss Sir Keith Burnett after he refused to raise employees’ salaries to the living wage

The decision to award the increase to Sir Keith Burnett, vice-chancellor of Sheffield University – one of the elite Russell Group – has infuriated staff at the institution, who have been told their rises must be limited to just 1 per cent. They have joined national strike action over the award which included a two-hour walkout of lessons and lectures earlier this week.

The package awarded to Sir Keith includes £27,000 in lieu of pension payments after he withdrew from the pension scheme. However, according to accounts, that still leaves him with a 29 per cent rise, or £78,000, the largest in the sector in 2012/13.

The pay rise was awarded at a time when the institution rejected demands for all staff at the university to be paid according to the living wage of £7.65 an hour. Pablo Stern, of the University and College Union at Sheffield, told the Times Higher Education (THE) magazine that Sir Keith’s pay package was “astonishing”. He added: “This university used to pride itself on being a civic institution with a strong community feel. That has disappeared.”

Cooking the books with The Independent:

Treasury accused of resorting to ‘dodgy statistics’ to claim raise in living standards

Treasury ministers came under fire from economists today after they insisted that living standards were finally beginning to rise for the vast majority of workers.

The claim signalled the Conservatives’ determination to combat Labour’s repeated accusations that the country faces a “cost of living” crisis because wages are falling in value in real terms.

However, according to the Treasury analysis, increases in take-home pay were higher than inflation last year for all but the top ten per cent of earners. It coincided with an assertion by David Cameron that Britain was starting to see signs of a “recovery for all”.

The department’s statistics only took income tax cuts into account and excluded reductions to in-work tax credits and other benefit changes, prompting Labour accusations that ministers were resorting to “dodgy statistics” to claim people “have never had it so good”.

On to Ireland and a virtual regulatory plea from TheJournal.ie:

Virtual insanity? Call for Central Bank to regulate BitCoin

  • The Irish Bitcoin Association says that recognising the currency would make it safer for consumers.

Vincent O’Donoghue of the Irish Bitcoin Association today told RTÉ News that the currency should be recognised, so that it would be safer to use.

“We’re calling on the Central Bank to have a close look at it. It’s something for the future.

“IT developing the way it, it would be disingenuous to ignore it.”

Off to Norway with the New York Times:

Amid Debate on Migrants, Norway Party Comes to Fore

In a nation that has long prided itself on its liberal sensibilities, the intensifying debate about immigration and its effects on national identity and the country’s social welfare system has been jarring — and has been focused on the anti-immigration Progress Party, which is part of the new Conservative-led government.

The Progress Party came under intense scrutiny in 2011, when a former member, a Norwegian named Anders Behring Breivik, bombed government buildings in Oslo, killing eight people. He then killed 69 more people, mostly teenagers, in a mass shooting at a Labor Party summer camp on the island of Utoya. Mr. Breivik, who was convicted of mass murder and terrorism, had been a member of the Progress Party, attracted by its anti-Islamic slant, from 1999 until he was removed from the rolls in 2006 for not paying dues, having quit the party because it was not radical enough.

Still, the performance of the Progress Party in the first general elections since the Utoya massacre and its success in winning a place in government have raised some eyebrows; quite unfairly, Ketil Solvik-Olsen, minister of transportation and communication and a deputy leader of the party, said in an interview.

TheLocal.no feels aggrieved:

‘Obama must apologise for envoy gaffe’

Norway’s Progress Party has demanded a personal apology from US President Barack Obama after his nomination for Norway’s new ambassador described its members as “fringe elements” who “spew out their hatred” (PLUS VIDEO).

“I think this is unacceptable and a provocation,” Jan Arild Ellingsen, the party’s justice spokesman, told Norway’s TV2 television channel. “I expect the US president to apologize to both Norway and the Progress Party”.

George Tsunis, a Greek-American property millionaire who was one of Obama’s biggest individual campaign donors, displayed only the scantiest knowledge of Norway at a senate hearing this week ahead of his appointment, describing the Progress Party, which has seven ministers in the government, as if it were a fringe far-right group.

He then referred to the country’s “president”, apparently under the impression that the country is a republic rather than a constitutional monarchy.

USA TODAY voices confidence:

Obama ‘confident’ with ambassador pick despite blunders

President Obama still has confidence in his pick to be the next ambassador to Norway, even after demonstrating that he might need to bone up on Norwegian politics before heading to Oslo.

George Tsunis, managing director of Chartwell Hotels and a major fundraiser for Obama’s 2012 campaign, has been pilloried by Norway’s press after he stumbled over a question about Norway’s Progress Party during his confirmation hearing last week.

Under questioning from Sen. John McCain, R-Ariz., Tsunis seemed to be unaware that Norway’s Progress Party —which has taken a hard line on immigration policy — was part of the government coalition.

The Wire takes the Casablanca route:

Norway Is Shocked That Our Ambassador Nominee Is Clueless About Norway

And an immigrant story with a poignant twist from TheLocal.no:

Locals pay for loved beggar’s Romania burial

A beggar became so popular in the four years he spent on the streets of Tromsø, northern Norway, that when he died locals raised 100,000 kroner ($16,000) to ship his body back home to Romania for burial.

When Ioan Bandac died of lung cancer just before Christmas, he left a note outlining his one final wish – that he be buried in his home city of Bacau, Romania.

And on Thursday, his body was finally laid to rest in one the city’s churchyard,  after a Romanian orthodox service. “It’s fantastic to be here,” Bandac’s Norwegian girlfriend Helena told state broadcaster NRK. “I did not get that long with Ioan — just three and a half years.”

On to France with another hard times intolerance headline, via TheLocal.fr:

French MP avoids prison over Hitler Gypsies rant

A French lawmaker avoided being sent to jail this week over a rant about travellers in which he was caught on camera saying “Hitler did not kill enough”. The MP and town mayor has also managed to keep hold of both of his elected roles.

A French lawmaker was convicted of glorifying crimes against humanity for saying Hitler “did not kill enough” gypsies, but avoided prison at his sentencing on Thursday.

MP Gilles Bourdouleix uttered the remarks in July 2013 as he confronted members of a travelling community who had illegally set up camp in the western town of Cholet, where he is also mayor.

His remarks left anti-racism campaign groups outraged, as well as most of France and its politicians.

An economic booster shot from France 24:

Helmet Hollande wore for Gayet tryst flies off shelves

A French motorcycle helmet manufacturer has publicly thanked President François Hollande for being photographed wearing their helmet on his way to an alleged secret tryst with actress Julie Gayet.

Hollande, 59, was pictured by paparazzi working for Closer magazine arriving at a Paris address to allegedly meet the famous French actress, while riding pillion on a scooter and wearing a “Dexter” helmet made by French company Motoblouz.

Motoblouz CEO Thomas Thumerelle, who employs 45 people at his plant at Carvin in the northern Pas-de-Calais region, was so delighted he took out a quarter page ad in national daily Liberation (see below) on Wednesday, titled “Thank you Mr President – for having used our helmet for your personal protection”.

On to Spain and another downturn from El País:

Economy shed jobs for sixth year in a row in 2013

  • Unemployment as a percentage of the population rises as thousands exit the labor market

The Spanish economy shed jobs for the sixth year in a row in 2013, official statistics show.

While the job destruction was less intense than in previous years, the loss of 198,900 positions, added to other years’ job cuts, yields an accumulated figure of 3.75 million since the crisis began in 2008.

The figures were released on Thursday as the Bank of Spain confirmed government estimates that the economy grew 0.3 percent in the fourth quarte

More from TheLocal.es:

Spain’s unemployment: Seven shocking facts

  • Spain’s unemployment rate hit 26 percent again this week. Here The Local gives you seven stats that will help you understand just how serious the situation is.

New unemployment figures from Spain’s National Statistic Institute (INE) show that recent macroeconomic improvements in Spain are yet to create new jobs.

While Spain has now clocked up two consecutive quarters of fragile growth, the INE data — based on a quarterly survey of 65,000 homes nationwide known as the EPA — shows the country’s unemployment climbed back up to 26.03 percent at the end of 2013, up from 25.98 percent three months earlier.

Here The Local provides seven statistics that highlight the extent of Spain’s unemployment problem.

  1. Spain has now seen six straight years of job destruction. Some 198.900 jobs disappeared in Spain last year, and 3.5 million have vanished since the country’s crisis began in 2008.
  2. There are 1.832.300 households in Spain where nobody has a job. That is 1.36 percent more than a year earlier.
  3. Some 686.600 households in Spain have now income at all — not even social security. That is twice the figure seen in 2007, or before the crisis struck.

thinkSPAIN electrifies:

Spain’s electricity hikes between 2008 and 2012 were second-highest in the EU after Lithuania

ELECTRICITY bills in Spain went up between 2008 and the end of 2012 more than in any other European Union member State except Lithuania, figures show.

During this four-year period, the cost of power to households and businesses rose by 46 per cent in Spain, and 47 per cent in Lithuania says the European Commission.

Brussels puts this down to rising distribution costs, increases in IVA, or VAT, in EU countries, and ‘eco-taxes’ relating to renewable energy.

And a boost for the arts from El País:

Government announces plans to slash sales tax on works of art

  • Cut in VAT rate to 10 percent could be followed by similar measures to promote culture

Bowing to intense pressure, the Spanish government on Friday announced it was going to lower the value-added tax (VAT) rate charged on transactions involving works of art to 10 percent from 21 percent.

Speaking at a press conference following the weekly Cabinet meeting, Deputy Prime Minister Soraya Sáenz de Santamaría said the move was to bring Spain in line with other countries in Europe, such as Italy and Germany, where the VAT rate on works of art is 10 percent and 7 percent, respectively.

The government controversially increased the VAT rate on all cultural items in 2012, from 8 percent to 21 percent. Asked if the VAT rate on other cultural items would also be cut, Sáenz de Santamaría said the reduction for works of art was a “first step.” “We have to introduce measures to promote Spanish culture and we have brought forward one of them,” she said. Culture Ministry sources said the government was also “studying new measures” for the film industry.

On to Lisbon and an uptick from the Portugal News:

Unemployment levels fall

The number of people registered as being unemployed in Portugal has dropped, while the government has announced plans to encourage business and entrepreneurs within the country in a bid to further boost employment levels.
Unemployment levels fall

The number of unemployed persons registered with the employment office in Portugal dropped by 2.8 percent year on year in December, making the total number of unemployed people 690 535 and marking a fall by 0.2 percent in the month of December.

Monthly data published by the Institute of Employment and Vocational Training ( IEFP ) highlighted that at the end of December there were 20,117 fewer unemployed persons registered with the employment office than a year earlier.

And a presidential boost from the Portugal News:

President upbeat about economic future

Portuguese president Cavaco Silva has said that he is hopeful about the economic future of the country despite a less than positive forecast given by the credit ratings agency Standard and Poor.

Portugal’s president has said that he is convinced that the country will success-fully conclude its bailout this May, adding that he appreciated the heavy sacrifices that continue to be asked of the Portuguese people.

Cavaco Silva said that while Portugal was still a few months away from its Economic and Financial Adjustment Programme object-ives, that he felt there was no reason why the country should not reach these targets successfully. In his speech he also gave a brief summary of 2013, noting that although it had not been “an easy year for Portugal”, the economy had registered some encouraging signs that allowed 2014 to look more “hopeful”.

Italy next with ANSAmed and more privatizations of the commons:

Chunks of Italy’s post office, air agency up for sale

  • Italian cabinet approvals sale of parts of companies

The Italian cabinet has approved decrees to sell large chunks of the post office and its air traffic agency, sources said Friday.

The government has said it wanted to sell off a 40% share of the national postal service, Poste Italiane Spa, for at least four billion euros by the end of the year as part of efforts to raise much-needed capital to offset Italy’s huge debt.

A similar-sized share will be offered in Enav, the Italian air traffic control company.

Economy Minister Fabrizio Saccomanni has said that a larger share of the postal service might be sold later.

Bunga Bunga cutbacks from TheLocal.it:

Berlusconi budget cuts hit models and dancers

Silvio Berlusconi has cut off monthly payments of €2,500 to a host of young women who attended his parties as part of cost-cutting measures by the ageing playboy, Italian media reported on Friday.

The decision could also have something to do with his coming under investigation for witness tampering opened by prosecutors in connection with his conviction for having sex with an underage 17-year-old prostitute.

“He helped us out, me and the other girls,” said Aris Espinosa, 24, one of the models and dancers known as “Olgettine” after the street in Milan, Via Olgettina, where they lived in apartments paid for by Berlusconi.

At one point, a total of 14 young women were living in the apartments and they were heard calling Berlusconi and his accountant in multiple police wiretaps to ask for more cash – referred to as “flowers” or “fuel”.

After the jump, the ongoing debacle in Greece, Ukrainian divisions and hints of compromise, munificence to Mexico, Venezuelan currency woes, Argentine inflation, Indo-Japanese nuke-enomics, Thai and Burmese troubles, Korean elder woes, Japanese promises, environmental woes, and the latest Fukushimapocalypse Now!. . . Continue reading

Headlines of the day II EuroGrecoSinoFuku


Before we begin our collection of headlines covering things economic, political, and environmental, we offer this prelude to the latest Fukushimapocalhpse Now! from Li Feng of China Daily:

BLOG Fukuzilla

We begin with global headlines, first with this from Reuters:

Trust in U.S., other governments plummets after state missteps

Trust in governments worldwide took a dive last year with Washington’s reputation a notable casualty as President Barack Obama grappled with a budget showdown, the Snowden spying crisis and the botched rollout of “Obamacare”.

Just 37 percent of college-educated adults told the Edelman Trust Barometer that they trusted the U.S. government – 16 points down on a year earlier and seven points below the global average.

The United States was not quite at the bottom of the heap as levels of trust in governments in some Western Europe countries including France, Spain and Italy were even lower, but the scale of the American decline was particularly dramatic.

CNBC dons rose-colored glasses:

Bill Gates: There will be no poor countries by 2035

As snowy Davos becomes engulfed in the hustle and bustle of another World Economic Forum, Microsoft founder Bill Gates took the opportunity to deliver an upbeat message in his annual newsletter.

The 25-page report, written by Gates and his wife Melinda, who are co-chairs of the Bill & Melinda Gates Foundation, argued that the world is a better place than it has even been before.

Gates predicted that by 2035, there would be almost no poor countries left in the world, using today’s World Bank classification of low-income countries — even after adjusting for inflation.

TheLocal.ch parties hearty:

‘Horizontal trade’ looks to upswing at Davos meet

In Davos, “shaping new models” is a popular theme for global change at the annual World Economic Forum gathering but on the margins of the event getting under way on Wednesday “shapely new models” are apparently also being sought.

The forum, bringing together presidents, prime ministers, monarchs, corporate tycoons, boffins and Hollywood actors, is also drawing a class of professionals to service, ahem, the needs of the elite.

Call girls, escorts, courtesans, hookers, prostitutes, call them what you will, look to be back in business for the event in the Swiss mountain resort town this year.

After several “rather dead” forum meetings in recent years, the “horizontal trade” looks to be picking up, says Swiss tabloid newspaper Blick, which monitors these kinds of activities.

On to the U.S., starting with a headline from Quartz:

The housing recovery leaves America separate and unequal, once again

Two years into the housing recovery, and a half-century since Martin Luther King fought for racial equality, it’s clear that homeownership doesn’t treat everyone the same.

While millions of homeowners of all races were affected by the burst of the housing bubble, from losing their homes to foreclosure or finding themselves in negative equity, many areas nationwide are now firmly in recovery as home values inch back toward peak levels. But that trend isn’t universal: neighborhoods that are predominantly black or Hispanic continue to lag behind today.

According to research from Zillow, home values in predominantly black and Hispanic neighborhoods are down significantly from their peaks—by 23.3% and 32.6%, respectively. The recovery has been kinder to white and Asian neighborhoods, though, which are down 13.4% and 0.6%, respectively.

The Hill anticipates:

Supreme Court case could destroy pillar of union power

  • Labor unions are at risk of having one of their most successful organizing tactics nullified by the Supreme Court.

On Tuesday, the high court will hear oral arguments in Harris V. Quinn, a case that could upend agreements with state governments that allow taxpayer-funded home-care workers to unionize.

Those deals have helped boost public sector unions in several states at a time when overall union membership is declining.

Business and conservative-leaning groups are pushing the Supreme Court to overturn the deals, arguing they violate the Constitution by requiring workers to punch a union card.

Dust finally settling from the Oakland Tribune:

California foreclosures plunge to eight-year low

California home foreclosure activity plummeted to an eight-year low in the fourth quarter as price gains left fewer owners owing more money than their properties were worth, a real estate research firm said Tuesday.

There were 18,120 default notices filed on houses and condominiums from October through December, down 10.8 percent from 20,314 in the previous three-month period and down 52.6 percent 38,212 from the same period of 2012. It is the lowest number of default notices since 15,337 were filed in the fourth quarter of 2005.

A sharp rise in home values has left fewer people vulnerable to foreclosure. The median sales price for a California home was $364,000 in the fourth quarter, up 22.1 percent from $298,000 a year earlier. It is the fifth straight quarter that the median has risen at least 20 percent from the previous year.

San Francisco Chronicle-ing class warfare:

Protesters block tech buses before SFMTA meeting

Anti-gentrification protesters again blocked tech buses carrying workers out of San Francisco on Tuesday morning. This time, just after 9 a.m., they blocked a pair of shuttles downtown, near Eighth and Market streets and close to City Hall, where later in the day city transportation leaders are scheduled to consider a pilot program that would charge bus operators a fee to use Muni stops — $1 per day per stop.

For some, the buses, used by companies like Google and Apple, have become symbols of income disparity in San Francisco. Others credit the buses with taking cars off the road and reducing congestion and greenhouse gas emissions.

On Tuesday, the few dozen protesters — in front of a large pool of media — surrounded the buses and prevented them from moving. Some plastered a sign to one of the coaches that read “Gentrification and Eviction Technologies” in Google-type script. They chanted, “Stop evictions.” By 9:45 a.m., police had cleared out the crowd and the buses had departed, though their destination was not clear.

Un-Like-ing via Vocativ:

Facebook May Lose 80% of Its User Base by 2017

  • Social networks function like infectious diseases, according to Princeton researchers. They spread fast—and then disappear

Like the Bubonic Plague, Facebook will eventually come to an end.

According to new research from Princeton, which compared the “adoption and abandonment dynamics” of social networks by “drawing analogy to the dynamics that govern the spread of infectious disease,” Facebook is beginning to die out.

Specifically, the researchers concluded that “Facebook will undergo a rapid decline in the coming years, losing 80 percent of its peak user base between 2015 and 2017.”

Dodgy dodging from The Guardian:

US tech firms make eleventh-hour attempt to halt tax avoidance reforms

  • Lobbyists representing leading US technology companies urge thinktank advising G20 not to close international tax loopholes

Silicon Valley has launched a last-ditch attempt to derail plans devised by the G20 group of countries to close down international loopholes that are exploited by the likes of Google, Amazon and Apple to pay less tax in the UK and elsewhere.

The Digital Economy Group, a lobbying group dominated by the leading US digital firms, has written to the OECD, the Paris-based thinktank tasked by G20 leaders with drawing up reforms, saying it is not true that communications advances have allowed multinational groups to game national tax systems.

Jiji Press embraces the darkness:

Japan, US Agree on Effort for Early TPP Deal

Akira Amari, Japanese minister in charge of Trans-Pacific Partnership negotiations, and U.S. Trade Representative Michael Froman agreed Monday to make efforts for an early conclusion of the regional free trade talks.

The agreement came at telephone talks between the Japanese and U.S. ministers held late in the night.

After the talks, Amari told reporters that he and Froman share the view that the two countries need to cooperate in helping conclude the TPP negotiations at the next ministerial meeting, likely to be held in late February.

While Deutsche Welle displays rare reserve:

EU freezes part of transatlantic trade negotiations with US

  • The EU has put one area of its negotiations with the US for a transatlantic free trade deal on hold. Brussels has expressed concern over provisions that would allow corporations to sue governments in private court.

The European Union on Tuesday temporarily halted one area of its free trade negotiations with the US, giving member states three months to provide input on provisions that would allow corporations to sue governments over violations of the potential trade deal.

“I know some people in Europe have genuine concerns about this part of the EU-US deal,” said EU Trade Commissioner Karel De Gucht in a press release. “Now I want them to have their say.”

“Some existing arrangements have caused problems in practice, allowing companies to exploit loopholes where the legal text has been vague,” De Gucht continued.

Monetary impoverishment from the London Telegraph:

Euro ‘increasing unemployment and social hardship’, says EC

  • Deepening economic divisions between North and South, rich and poor eurozone countries threaten to undermine the European Union itself, report states

Europe’s single currency is fuelling inequality, and the loss of sovereignty entailed in eurozone membership has led to “increased unemployment and social hardship” in many countries, a European Commission report has revealed.

The 496-page report, “Employment and social developments in Europe 2013″, warns that deepening economic divisions between North and South, rich and poor eurozone countries threaten to undermine the European Union itself.

The stark findings, published by Laszlo Andor, the EU’s social affairs commissioner, acknowledges that the loss of sovereignty involved in giving up national currencies has led to a loss of flexibility in tackling the economic crisis.

Reuters examines the odds:

IMF sees up to 20 pct chance of prices falling in Europe

There is as high as a one-in-five chance that prices could start to fall in the euro zone, the International Monetary Fund’s chief economist said on Tuesday.

“Our model gives a 10 to 20 percent probability to inflation turning negative (in the euro zone),” Olivier Blanchard told reporters on a conference call, adding that the IMF still sees positive price growth in its baseline forecasts.

He called on the European Central Bank to do all it can to anchor price expectations and boost demand in the euro currency bloc, where southern countries like Portugal and Greece continue to face weak demand.

Deutsche Welle alerts:

EU sounds alarm on poverty among working-age people

In its latest review of social developments, the European Commission has said finding a job increasingly has not pulled people out of economic hardship. It said poverty among people with jobs was a major problem.

The EU executive said Tuesday the European debt crisis had led to a significant rise in poverty among people of working age.

It stated that finding fresh employment only helped people out of poverty in 50 percent of all cases as those who managed to land a job tended to work fewer hours or for lower wages than before.

“Unfortunately, we cannot say that having a job necessarily equates with a decent standard of living,” EU Employment Commissioner Laszlo Andor said in a statement. “A gradual reduction of unemployment is unlikely to be enough to reverse the increasing trend in poverty levels,” he concluded.

Reuters bubbles:

UK property asking prices see biggest ever jump for Dec-Jan

Asking prices for homes in Britain saw their biggest ever rise for the December-January period, property website Rightmove said on Monday, potentially adding to concerns about the risk of a housing bubble.

Rightmove’s figures show the price of properties coming on to the market rose 1 percent between December 9 and January 11. The data series began in 2002.

The rise contrasts with an average fall of 0.2 percent in similar timeframes over the last 10 years during the Christmas holiday period, Rightmove said.

Austerian fruits from the London Telegraph:

Lottery of NHS drugs punishes the dying

  • Thousands of patients denied life-extending treatments approved by health watchdog

Thousands of patients suffering from cancer and other serious illnesses are being denied the drugs they need from the NHS, according to a report.

Even though the treatments have been approved by the health service rationing body, at least 14,000 patients a year are not receiving them.

As many as one in three of those suffering from some types of cancer are going without medication that could extend their lives, the figures show.

Experts said the report, from the Health and Social Care Information Centre, a government quango that provides NHS statistics and analysis of trends in health and social care, exposed an “endemic and disastrous postcode lottery” of care within the health service.

Inflationary death from RT:

‘Can’t afford to die’: British families on low incomes struggle with ‘funeral poverty’

Over 100,000 people in the UK will hardly manage to pay for a funeral this year. With the average cost of dying having risen by 7.1 percent, the poor simply cannot afford to pay the costs of funerals, a survey has found.

The average cost of dying, including funeral, burial or cremation and state administration, currently stands at £7,622 ($12,528), a rise of 7.1 percent in the past year, according to the latest study at the University of Bath’s Institute for Policy Research.

“With growing funeral costs, quite simply growing numbers of people might find they can’t afford to die,” Chief Executive of the International Longevity Centre-UK, Baroness Sally Greengross, stated on the University’s website.

On to Norway and that old time religion from TheLocal.no:

Christian GPs want right to refuse the coil

Christian doctors in Norway on Monday called for the right to refuse to offer their patients the contraceptive coil, arguing that for many of them it was tantamount to abortion.

Olav Fredheim, chairman of the Norwegian Christian Medical Association, made his demand on the eve of the publication of a controversial new law which will excuse Christian general practitioners from sending patients to have abortions on grounds of conscience.

“Doctors should not be forced to take actions that violate their moral integrity,” Fredheim told Aftenposten.

Sweden next, and state secrets from TheLocal.se:

Government to seal lid on secret donations

The Swedish government wants to protect the identities of political party donors, a proposal that left the opposition crying foul on Monday. Sweden remains one of few EU countries without total party-funding transparency.

The government coalition has proposed that the public be given access to the names of any donor that gives more than 22,200 kronor ($3,426) to a political party. The proposal’s failure to fully outlaw anonymous contributions has critics up in arms however, a predictable finale to months of wrangling and a cross-party stall in negotiations.

Sweden has no specific legislation pertaining to political party donations, which sets it aside from many of its neighbours and which has drawn criticism from the Council of Europe.

France 24 and that ol’ hard times intolerance:

Poll finds xenophobia on the rise in France

Over the past year, the English and American journalists have written widely on what they call the French “malaise”.

An Ipsos survey carried out earlier this month and published on Tuesday suggests that the description may be accurate, finding, in particular, that the French are increasingly pessimistic about their political leaders and wary of foreigners.

According to the poll, 65% of French people think that most politicians are corrupt (a three-point increase since last year) and 84% think they are motivated primarily by personal gain (a two-point rise).

Meanwhile, 78% of those questioned think “the political system does not work well” and “their ideas are not represented” (six points higher than last year). At the same time, the French seem eager for a politician who can fix things. A whopping 84% of those polled said they would like “a real leader to restore order”.

RFI hooks up:

Peugeot shares plunge as Dongfeng tie-up announced

Shares in French carmaker PSA Peugeot Citroën plunged 5.44 per cent on Monday, following the announcement of a radical tie-up its capital with Chinese Dongfeng and the French state.  The plan would mean a three-billion-euro capital injection.

The deal, which is expected to be presented to investors on 19 February, will open the door to a difficult three-way partnership, where Chinese state-owned carmarker and the French state will take over 14 per cent each of the PSA capital while the Peugeot family will reduce its from 35 to 14 per cent.

Both the Chinese and the French states will boost PSA capital and inject 750 millions euros each.

And that old time religion as well, via TheLocal.es:

‘Give us Spain’s abortion law’: French pro-lifers

Thousands of anti-abortionists took to the streets of the French capital on Sunday calling for France to adopt similar pro-life legislation to that drafted by the Spanish government last month.

Thousands of anti-abortionists took to the streets of the French capital on Sunday in an effort which they hope will see similar legislation to that passed in Spain last month make it into France next.

Participants marched through Paris on the eve of a parliamentary debate on a bill that would make terminations of pregnancy in France easier.

Organizers, among them right-wing religious groups, anti-gay activists and handicapped children associations, claimed 40,000 people took part.

Police put their number at 16,000.

And on to Spain, first with El País:

Actual retirement age in Spain rises due to new labor restrictions

  • Age at which people stop working increases on average to 64.3 in 2013
  • Number of people retiring at legal age rises 10.4 percent

The effective retirement age in Spain increased while the number of people taking early retirement decreased last year after further restrictions were placed on this possibility in March 2013, according to figures released Tuesday by Labor Minister Fátima Báñez.

The average age at which people ceased to work rose from 63.9 years to 64.3 years in 2013, while the number of people who retired at the stipulated legal age rose by 10.4 percent. The official retirement age in Spain is currently being raised in a phased fashion from 65 to 67.

Báñez said the number of people who took early or partial retirement last year fell 6.5 percent from 2012, while the number of people opting to combine receipt of some pension rights while continuing to work came to 9,094, of whom 83 percent were freelance workers.

TheLocal.es gives ‘em the business:

Hard times? Spain’s elite richer than ever

The 20 richest people in Spain earn as much as the poorest 20 percent, while the country’s wealthy elites have actually grown richer during the economic crisis, a major new global report into wealth inequality argues.

Almost half of the world’s wealth is concentrated in the hands of the richest 1 percent. Meanwhile, the fortunes of this richest 1 percent total $110 trillion (€81 trillion), or 65 times the combined wealth of the bottom half of the  world’s population.

These are the chief findings of a new report by UK charity Oxfam into the dangers of extreme economic inequality.

El País optimizes:

IMF triples its growth forecast for the Spanish economy

  • GDP to rise by 0.6 percent in 2013, according to Washington-based organization’s new report

The International Monetary Fund has raised its forecast for Spanish economic growth for this year from 0.2 percent to 0.6 percent.

The revision was included in the IMF’s updated World Economic Outlook released Tuesday. Only Britain saw a bigger upward revision of expected GDP growth, while Japan’s outlook was also improved by 0.4 percentage points.

And thinkSPAIN gets together over getting together:

Ibiza authorities give their blessing to Spain’s first ‘prostitution cooperative’

IBIZA has approved the creation of the first-ever cooperative for prostitutes, meaning they can pay taxes and Social Security guaranteeing them a State pension, sick and maternity pay.

They are protected from the hands of pimps and have legal and tax advisors on hand to offer them assistance, as well as qualified gynaecologists to give them specialist advice and regular examinations.

María José López Armesto, 42, has spent two years getting her plan approved, but is now celebrating her success with the Sealeer Cooperative.

And from the Associated Press, no homage for Catalonia:

Spain PM: No secession referendum for Catalonia

Spain’s prime minister has declared that he will not let the northeastern Catalonia region hold a referendum on whether it should secede and form a new European country.

Mariano Rajoy told Spain’s Antena 3 television network late Monday that the referendum many Catalans want “won’t take place and as long I am prime minister of Spain’s government there will not be independence for any Spanish territory.”

His comments came less than a week after the regional Catalan parliament made a formal request to the central government in Madrid for it to transfer powers to Catalonia so a referendum could be held.

Portugal next, and lethal austerianism from the Portugal News:

Waiting room woes

Hospital emergency departments, already struggling to cope with their normal patient numbers, are currently seeing their usually-packed waiting rooms even fuller as seasonal flu victims seeking medical care add to the break-back load. In some units, patients with health problems considered less serious by officials have waited almost a full day to see a doctor.

A report by state-run news channel RTP, broadcast on Tuesday, exposed the struggling state of ER waiting rooms from north to south of the country, containing a series of unflattering comments from patients, some of whom had been waiting more than 20 hours and were still counting to be seen by a doctor.

The report was chased up by a note from the Regional Health Administrative Board for Lisbon and Vale do Tejo (ARSLVT), which has asked units under its jurisdiction for more information regarding their waiting times.

Italy next, and lethal intent from TheLocal.it:

Sicilian mafia boss orders judges’ murder

Totò Riina, the Sicilian mafia boss, has been recorded telling a fellow mobster to kill anti-mafia magistrates, Italian media has reported.

The wiretapped conversations between Riina and Alberto Lorusso, speaking in October, are the latest threats targeting anti-mafia prosecutor Nino Di Matteo and others.

Speaking to Lorusso from a Milan prison, where he is serving a life term, Riina says: “We must take action [against the magistrates], make them dance the samba.”

ANSAmed impoverishes:

More than 12% of Italian workers don’t make living wage

  • Study says only Greece, Romania in worst position in EU

More than 12% of employed Italians cannot afford to live on what they earn, says a study issued Tuesday by the European Union. Only Greece and Romania are in worse positions in term of earning a living wage, with about 14% of workers in those countries unable to make ends meet, added the research.

Those findings are consistent with a report earlier this month issued by the national statistical agency Istat that said in the first nine months of 2013, the purchasing power of Italian households fell by 1.5% compared with the same period in 2012.

Overall, economic indicators suggest that 2013 will be remembered “as the worst year” in recent economic history, with spending on such necessities as medications falling by 2.5% in the first 10 months of the year and food spending falling by 1.3%, consumer group Codacons said earlier in January.

And TheLocal.it has Bunga Bunga disgust:

Top Italian leftist resigns after Berlusconi deal

The president of Italy’s centre-left Democratic Party resigned on Tuesday in the latest sign of divisions exacerbated by a deal between party leader Matteo Renzi and disgraced former prime minister Silvio Berlusconi.

Gianni Cuperlo wrote an open letter to Renzi on Facebook in which he accused the new leader of responding to criticism with “a personal attack”.

“I want to be able to always say what I think,” he said.

Renzi, who only won the nomination to lead the party last month, has angered many leftists over his willingness to negotiate with Berlusconi to negotiate a reform of Italy’s widely criticised political system.

After the jump, the Greek tragedy continues, Ukrainian violence, Brazilian mall protests, Thai troubles, Chinese economic shifts, Japanese economic vows, envrionmental woes, and Fukushimapocalyse Now!. . . Continue reading

Headlines of the day II: EconoHydroFukuFrack


We begin close to home with a headline from Salon:

California faces water shortages and wildfires as “mega-drought” gets even worse

  • The fire danger is “about as high as it can be,” one meteorologist warned

The year 2013 was California’s driest on record, featuring the least rainfall since the state started keeping track in 1849. And so far, 2014 is off to a bad start.

A full 63 percent of the state is in extreme drought conditions, according to the U.S. Drought Monitor — up from 23 percent just last week and extending into northwestern Nevada. Precipitation for the water year (which begins October 1) is less than 20 percent of normal levels in the areas of most extreme drought. Up in the Sierra Nevada mountains, snowpack — a major repository for the state’s water supply — is between 10 and 30 percent of normal, with many locations now in the bottom 5th percentile. Two of the state’s lakes are only 36 percent full; the San Luis Reservoir in Central Valley is down to 30 percent.

“It’s really serious,” Gov. Jerry Brown said Monday. “In many ways it’s a mega-drought; it’s been going on for a number of years.” Any day now, he’s expected to announce that California is officially in the midst of a drought.

More from the New York Times:

As California’s Drought Deepens, a Sense of Dread Grows

On Friday, Gov. Jerry Brown made it official: California is suffering from a drought, perhaps one for the record books. The water shortage has Californians trying to deal with problems that usually arise midsummer. With little snow in the forecast, experts are warning that this drought, after one of the driest years on record last year, could be as disruptive as the severe droughts of the 1970s.

Under state law, that would allow the governor to “waive laws or regulations and expedite some funding,” said Jeanine Jones, deputy drought manager for the state Department of Water Resources. “It does not create a new large pot of money for drought response or make federal funding available.”

Reuters gets defensive:

Latest perk on Google buses: security guards

  • First, San Francisco-based commuters to Google Inc got buses with plush seats and free WiFi. Now, they are getting security.

In recent days, men with earpieces have closely monitored passengers boarding Google commuter buses at the site of at least one bus stop in San Francisco’s Mission District. Their presence comes a few weeks after Google buses were targeted by protesters who blame tech-industry employees for rising city rents.

Gone are the days when mentioning Google as an employer gave young technology workers a certain counterculture credibility. As the company has expanded well beyond its Web search-engine roots to become a behemoth encompassing advertising, smartphones, finance and social networking, it has gone from scrappy start-up to a Goliath that many resent for its power.

In San Francisco, many long-time residents believe the influx of richly compensated workers at Google and other big technology companies such as Facebook Inc and Twitter Inc has pushed rents to unaffordable levels in neighborhoods that once were homes to the working class.

The Denver Post bites:

Edible marijuana sales shattering sales projections in Colorado

A one-month supply of marijuana edibles, gone in the first three days of January; that’s what the area’s largest supplier is saying about the incredible demand for the product since recreational sales were legalized in Colorado on Jan. 1.

“We are working hard,” said Joe Hodas, chief marketing officer for Dixie Elixirs and Edibles. “We like to call ourselves the future of cannabis.”

There is so much demand for edibles right now, they limit customers to two edible products a day at recreational pot shops like LoDo Wellness at 16th St. and Wazee in downtown Denver.

The Guardian pays out:

Goldman Sachs pays employees average of $383,000 after profits rise 5%

  • US bank’s 32,900 global employees to hear size of individual bonuses, while fixed-income trading operation had fall in profits

Goldman Sachs paid its bankers an average of $383,000 (£233,000) in 2013, after profits for the year rose by 5% to $8bn.

Putting a fresh focus on the debate over bankers’ pay, Goldman’s 32,900 global employees will be told the size of their individual bonuses on Thursday.

The bank set aside $2.19bn in the quarter ending December 31 to compensate employees, up 11% from a year earlier but down 8.1% from the previous quarter. Goldman partners were told about their bonuses on Wednesday.

From the Los Angeles Times, class debt:

Banks embracing a housing-bubble favorite: interest-only loans

Customers for interest-only loans are often self-employed and capable of making big down payments and maintaining fat bank accounts.

Most of the risky mortgages that triggered the financial crisis have disappeared from the marketplace, and lenders will have even more reason to avoid them because of a new federal crackdown on loose lending.

But one housing-bubble favorite — the interest-only loan — will remain a common offering to well-heeled home buyers, despite new rules from the Consumer Financial Protection Bureau. The rules, which took effect last week, exclude interest-only loans from “qualified mortgage” status, which protects lenders from liability over defaults.

Bankers don’t seem worried about affluent clients missing payments. With high-end home prices on the rise, they have recently embraced jumbo mortgage lending, including interest-only mortgages. That trend continued this week as the banks reported earnings, with Bank of America Corp. saying 36% of its fourth-quarter mortgages were jumbo loans, up from 23% of originations in the first quarter.

Bloomberg Businessweek retaliates:

Scandal Bowl: UNC Suspends Research by Academic Fraud Whistle-Blower

The most outrageous scandal infecting the business of big-time college sports just took a turn for the much worse. The University of North Carolina, famed for its outstanding academics and championship-winning basketball team, announced late Thursday that it had suspended research on athlete literacy by Mary Willingham.

A campus tutor employed by the university, Willingham has done more than anyone else to shed light on classroom corruption at Chapel Hill related to keeping sports stars eligible to play. The shadow cast on her research speaks volumes about the university’s unwillingness to come to terms with the undermining of academic standards in the service of athletics.

From Romenesko, more blood on a California newsroom floor:

Orange County Register owner names new newsroom leaders, confirms 32 layoffs

Orange County Register owner and publisher Aaron Kushner confirms in a memo that 32 newsroom employees were laid off today, and that Ken Brusic and other top editors have resigned. (I’m told they quit in protest of the layoffs.)

Local editor Rob Curley has been promoted to top editor.

CNBC cops out:

Battle over police pensions in US cities takes ugly turn

A drive by some American cities to cut costly police retirement benefits has led to an extraordinary face-off between local politicians and the law enforcement officers who work for them.

Another copout from Al Jazeera America:

NYPD agrees to ‘largest protest settlement in history’

  • New York City civil rights activists hail settlement over 2004 RNC demonstrations as a victory against mass arrests

In what civil rights lawyers have called “the largest protest settlement in history,” New York City has agreed to pay $18 million to protesters who said they were wrongly arrested at the 2004 Republican National Convention, where then-president George W. Bush was nominated for a second term.

The settlement ends nearly a decade of legal battles between the New York Police Department and plaintiffs who said police forces mishandled their arrests and violated their First Amendment rights.

Approximately 1,800 people were arrested, out of nearly 800,000 protesters, mostly on charges of parading without a permit or disorderly conduct. The circumstances of those arrests were heavily disputed, according to a statement from the New York City law department.

Red state blues from The Guardian:

North Carolina’s poorest hit by federal cuts: ‘Unless someone helps, we’re bust’

  • As Congress wrangles with whether to restore long-term unemployment benefits, North Carolina is already experiencing the hardship likely to unfold unless the program is restored

Debt for the rising generation from Bloomberg Businessweek:

Student Loans, the Next Big Threat to the U.S. Economy?

Outstanding student debt topped $1 trillion in the third quarter of 2013, and the share of loans delinquent 90 days or more rose to 11.8 percent, according to the Federal Reserve Bank of New York. By contrast, delinquencies for mortgage, credit card, and auto debt all have declined from their peaks.

The New York Federal Reserve’s move to measure the size of the student loan load says a lot about how concerned the central bank is about a possible threat to the economy. “Our job is to really understand what’s happening in the financial system,” and the “very rapid rise in student loan debt over the last few years” can “actually have some pretty significant consequences to the economic outlook,” New York Fed President William Dudley told reporters in November. “People can have trouble with the student loan debt burden—unable to buy cars, unable to buy homes—and so it can really delay the cycle.”

The federal government is the source and backer of most of the loans. “I’m always made very nervous by a credit market that benefits from government guarantees and is expanding very rapidly,” Jeffrey Lacker, president of the Federal Reserve Bank of Richmond, said on Jan. 10 at a Greater Raleigh Chamber of Commerce event in North Carolina. “That’s what we’re seeing with student loans, and it’s what we saw with housing.” As the New York Fed’s Dudley explained in November, “to the extent that student loan burdens become very, very high, there are presumably going to be losses” to the federal government.

For our first global story, this from TheLocal.ch:

Inequality poses world’s greatest risk: report

The growing gulf between the rich and the poor represents the biggest global risk this year, the World Economic Forum declared on Thursday ahead of this month’s Davos summit.

The Geneva-based institution issued the gloomy warning in its annual Global Risks survey, published before its annual get-together of decision-makers at the Swiss mountain resort of Davos from January 22nd-25th.

“The chronic gap between the incomes of the richest and poorest citizens is seen as the risk that is most likely to cause serious damage globally in the coming decade,” the WEF concluded.

In its Global Risks 2014 report, which is based on a survey of more than 700 experts from industry, government, academia and civil society, the WEF outlined possible events that could damage the world economy this year.

The London Telegraph heads to the MINT:

How to invest in the ‘MINT’ emerging markets

Mexico, Indonesia, Nigeria and Turkey have been tipped as the next economic giants. Can savers make money or is this the latest investment fad?

The chances are you have probably heard that Mint is no longer just a peppermint sweet; it is now also an investment acronym which in the next decade or two could prove extremely profitable for investors.

The concept, which groups the countries of Mexico, Indonesia, Nigeria and Turkey, has been popularised in recent weeks by respected economist Jim O’Neill, the man who also coined the BRIC term in 2001, identifying Brazil, Russia, India and China as the next global economic powerhouses.

Splitting the difference with EUbusiness:

Bundesbank sees ‘limited’ risk of eurozone deflation

There is only a “limited” risk of deflation — or falling prices — in the 18 countries that share the euro, the head of Germany’s central bank or Bundesbank, Jens Weidmann, said on Thursday.

His remarks came after, and in contrast to, a warning from the head of the International Monetary Fund on Wednesday that the “ogre” of deflation was a potential threat to the world economy.

Eurozone inflation slowed to just 0.8 percent in December from 0.9 percent in November, according to the latest data published by the Eurostat statistics agency.

Auto anxieties from the London Telegraph:

Car sales in Europe at lowest level since 1995

  • New registrations fell 1.7pc in 2013, the sixth consecutive year of decline, although sales picked up at the end of the year

Car sales in the European Union were at their lowest level for 18 years in 2013, as slumps in certain crisis-hit eurozone states outweighted an improvement in other countries including the UK.

New registrations fell by 1.7pc to 11.9m, according to ACEA, the European Automobile Manufacturers’ Association. This was the worst level since ACEA begin recording data for the enlarged EU in 2003, and the worst for the block of 15 European countries the body had previously measured since 1995.

Car sales have slumped since the financial crisis and are now 26pc down on 2008, although sales rebounded towards the end of the year as the eurozone exited recession.

Disestablishmentarianism from EUobserver:

MEPs call for dismantling of EU bailout ‘troika’

The “troika” of international lenders, which sets the terms of eurozone bailouts with little or no democratic oversight, should be replaced by an EU system which is accountable to the European Parliament, MEPs say.

“All European instruments that are not based on EU law are provisional. EU instruments should be based on the community method, with the European Parliament acting as democratic legitimator and control body,” Austrian centre-right deputy Othmar Karas told press in Strasbourg on Wednesday (15 January).

Karas is drafting a report together with a French Socialist colleague, Liem Hoang-Ngoc, on the work of the troika.

Gimme shelter from New Europe:

MEPs ask for an EU wide strategy for the homeless

The MEPs once again asked from the European Commission to form an EU-wide strategy for the homeless.

On 16 January, the MEPs adopted a resolution asking from the Commission to finally establish a European strategy for the homeless. According to the resolution adopted by 349 votes to, 45, with 113 abstentions an EU homelessness strategy should focus on housing, cross-border homelessness, quality of services for the homeless, prevention and homeless young people. According to the MEPs even though the responsibility for tackling homelessness lies with EU countries an EU strategy for the homeless must have a complementary role to play.

The European Commission has already acknowledged that homelessness levels have risen recently in most parts of Europe and the crisis seems to have aggravated the situation. Moreover, the profile of the homeless population has been changing and now includes more young people and children, migrants, Roma and other disadvantaged minorities, women and families are increasingly at-risk of homelessness.

Another new record from EUobserver:

Poverty in Europe at ‘unprecedented levels’

EU social affairs commissioner Laszlo Andor told MEPs in Strasbourg Thursday that poverty in Europe is at an all time high. “Poverty has risen in Europe, mainly in the more peripheral countries and regions, reaching unprecedented levels among those who are more vulnerable, such as homeless people,” he said.

More Banksters Behaving Badly from The Guardian:

HSBC and Citigroup suspend foreign exchange traders amid rigging probe

  • US regulators arrive in London to step up joint investigation with Financial Conduct Authority into alleged market manipulation

HSBC and Citigroup have both suspended foreign exchange traders as a global probe into possible currency market manipulation intensified.

Regulators from the United States arrived in London this week, stepping up an investigation in which they are working with Britain’s financial watchdog, the Financial Conduct Authority, to determine whether traders at some of the world’s biggest banks colluded to manipulate the $5.3 trillion-a-day (£3.2tn) foreign exchange market.

The investigations centre on senior traders’ communication of client positions via electronic chatrooms, which also featured prominently in a probe into the rigging of a key interest rate known as the London interbank offered rate, or Libor.

Sky News bubbles selectively:

House Prices ‘Risk Becoming Unsustainable’

  • A report warns of the consequences of the growing gulf between homes for sale and demand in some areas of the UK.

Surveyors have warned that house prices risk becoming unsustainable in some areas because low home supply is failing to meet high demand in the market.

The Royal Institution of Chartered Surveyors (Rics) measured the strongest level of sales in six years ahead of Christmas.

Its report predicts prices will rise by 5% on average in each of the next five years but warns that a lack of properties for sale risks people paying far more than market value to secure a home.

From The Independent, so much for du seigneur?:

Calls to abolish outdated rights for lords of the manor that ‘serve no purpose in the 21st century’

  • The title is a hangover from the feudal era and does not automatically bring with it physical property, but entitlements and duties that would have once been held by a medieval seigneur are often included

And along that line, one of those entitlements or duties? From the London Times:

Fancy-dress dogging on duke’s estate upsets villagers

Police have been called to an aristocrat’s estate to crack down on sex parties involving groups of men dressed in fairy wings, tutus and PVC.

The Badminton Estate, owned by the Duke of Beaufort, is being plagued by groups of men congregating in farm buildings in fancy dress.

Nick Bush, a tenant farmer, asked the police to intervene after battling in vain to deter the men.

RT bets on the come line:

UK worsens global hunger crisis by ‘blocking reforms on food speculation’

The UK is being accused of attempts to block EU reform to prevent food speculation. It took EU negotiators three years to agree on a regulation against speculation by banks and hedge funds which drives up food prices, aggravating the global hunger crisis.

The deal introduces new rules to limit speculation on products linked to what people eat, such as wheat, corn, soybeans or sugar. The new controls will set limits on the number of food contracts that banks and other finance institutions can hold, pushing traders to open their activity to greater public scrutiny.

Representatives of the EU’s 28 governments and EU lawmakers clinched the deal on the outlines of the Markets in Financial Instruments Directive (MiFiD) in Strasbourg late on Tuesday. The bloc’s executive arm, the European Commission, has promised that the rules on agricultural derivatives would “contribute to orderly pricing and prevent market abuse, thus curbing speculation on commodities and the disastrous impacts it can have on the world’s poorest populations.”

An Irish booster shot from Independent.ie:

Moody’s upgrades Ireland to Investment Grade after bailout exit

  • RATING agency Moody’s has upgraded Ireland’s government debt from “junk” to higher quality “investment grade” status.

International money markets reward Ireland with low interest rates, bailout chief says

The country is now regarded as a lower risk investment by all of the main credit agencies for the first time since 2011.

Finance Minister Michael Noonan said the move will help to lower borrowing costs for companies and individuals.

Norwegian anxieties for naught from TheLocal.no:

Norway’s open border brings few Romanians

Norway has seen few extra Romanians and Bulgarians since it lifted border restrictions at the end of 2012, belying fears in the UK of a floods of migrants.

The richest country in Europe with a generous welfare state,  Norway could be expected to be a top draw for low-salaried Eastern Europeans.

But between January and December 2013, it saw just 4,904 Romanians and Bulgarians registering for work using their European Economic Area (EEA) citizenship, a rise of just 24 percent on the year before, when they needed to apply for special work permits.

Amsterdam next, with a not of disapproval from DutchNews.nl:

Dutch business leaders slam cabinet polices, support at record low

Dutch business leaders are extremely unhappy with the current right-left coalition’s policies and think the cabinet is failing to tackle the crisis.

Employers’ organisation VNO-NCW questioned 471 company bosses about their attidudes to the VVD-PvdA government and current policy. In total, the cabinet scored just 4.9 out of 10 – a record low according to the Telegraaf.

Prime minister Mark Rutte was rated 5.4, well below most of his senior ministers. Top ranked minister was finance chief Jeroen Dijsselbloem, who scored 6.6.

Germany next, where TheLocal.de restores a commons:

Hamburg buys its energy grid back for €400 million

Energy giant Vattenfall said on Thursday it had “unwillingly” agreed to sell the electricity grid in Hamburg back to the city, as approved by a referendum last year.

The value of the transaction, still to be determined, is expected to be about €400 million. Vattenfall has a 74.9 percent stake in the electricity grid company, Stromnetz Hamburg, while the remaining 25.1 percent belongs to the German city.

“The value of the entire electricity grid company has preliminarily been agreed at €550 million euros,” the Swedish company said. “However, both parties have agreed on a minimum value of €495 million.”

France next and the origin of the feces from TheLocal.fr:

Tonnes of dung dumped at French parliament

As if President François Hollande didn’t have enough crap to deal with right now, protesters sent tonnes more his way on Thursday when they dumped a lorry-load of manure outside the French parliament.

Weeks after hundreds of chickens were let loose, several tonnes of steaming dung were dumped from a lorry in front of the parliament building on the Quai d’Orsay on Thursday morning during what French police termed “un attentat à la crotte” or “poop attack”.

The lorry carried a simple message to President François Hollande and his buddies in parliament: “Hollande and the political class should get out, make way for the Fifth Republic”. The driver was arrested soon after dropping the steaming cargo.

Spain next, and another austerian demand from El País:

Eurogroup and EC insist Spain needs second round of labor reform

  • EU commissioner Rehn says Brussels engaging in “constructive dialogue” with Rajoy government on the issue

The president of the Eurogroup, Jeroen Dijsselbloem, on Thursday reiterated calls for Spain to undertake a second round of reforms of the labor market in order to strengthen the country’s recovery from a deep recession.

As Dijsselbloem himself told reporters during a visit to Beijing accompanied by the European Union commissioner for economic and monetary affairs, Olli Rehn, he had already made a speech in Madrid in October along the same lines. “New labor reforms will work, not only in Spain, but also in other countries,” he said.

In a report released in December, the OECD also suggested that severance pay remains high in Spain and that more cuts were necessary to tackle high unemployment, which currently stands at 26 percent.

The labor reform introduced in February 2012 cut severance pay for permanent workers from 45 days of wages for each year of service to 33 days, and the maximum amount from 42 months’ salary to 24 months. It also introduced a series of so-called “objective causes” such as falling sales and technological and organizational changes that allow companies to lay off workers en masse with severance pay of only 20 days’ wages for every year worked, up to a maximum of one year’s salary.

From EurActiv, schismatic:

Spanish ruling party rebels launch new conservative party

Rebels from Spain’s ruling conservative People’s Party launched a new political party on Thursday (16 January), hoping to tap into public discontent over sky-high unemployment, graft scandals and surging separatism in Catalonia.

Leaders of the new party, named Vox (voice in Latin), accuse Prime Minister Mariano Rajoy of being too soft on Catalan and Basque separatism and of breaking election promises by, for example, raising taxes.

“Millions of Spaniards … feel abandoned by the political system, which is infested with corruption scandals and at the beck and call of private interests,” Santiago Abascal, a former PP member on the Vox executive committee, told reporters.

More schismatics from El País:

Catalan assembly approves motion to seek leave to hold self-rule referendum

  • Three Socialist lawmakers break with party line to vote in favor of proposal

“We are not voting on the political future of Catalonia, but the form in which Catalans will decide it”

The Catalan regional assembly on Thursday approved a motion to ask the national Congress for permission to hold a referendum on the independence of the region from the rest of Spain.

The proposal was approved by members of the ruling center-right nationalist CiU bloc, the Catalan Republic Left (ERC) and the ICV leftist-green group. Three members of the Catalan branch of the main opposition Socialist Party (PSC) broke ranks to vote in favor of the motion, while the center-left Candidature for Popular Unity (CUP) abstained. The conservative Popular Party (PP) and the centrist Citizens party voted against.

TheLocal.es gets going:

Spain’s expat exodus continues

Spain lost nearly 200,000 registered foreign residents in 2012 as the country’s economic crisis continued to bite, official figures released on Friday show.

The new figures from Spain’s National Statistics Institute (INE) highlight the continuing fall in the number of registered foreign residents in Spain.

According to the data, there were 190,020 fewer foreigners registered with Spain’s local town halls on January 1st 2013 than on the same date a year earlier.

While these figures fail to take into account the huge number of foreigners in Spain who fail to register on their local civil register (padrón), the decline suggests many people are leaving because of the country’s economic crisis

And thinkSPAIN tracks turmoil:

Burgos burns as boulevard riots leave 40 in custody

VIOLENT protests in the central Spanish city of Burgos over controversial works on a main boulevard have led to 40 arrests and widespread damage.

Five days of riots, with wheelie-bins set alight and bottles smashed as well as physical fights have blackened the otherwise peaceful and picturesque city’s landscape – but as yet, calls for the work to stop have not been answered.

Some 8,000 residents have formed a working party to fight plans to spend in excess of eight million euros on revamping the C/ Vitoria in the Gamonal neighbourhood, money they feel could be better spent on public services.

On to Lisbon and a boost from El País:

S&P removes threat to further cut Portugal’s debt rating

  • Agency sees growing signs of economy stabilizing

Standard & Poor’s on Friday affirmed its junk-status BB rating for Portugal’s long-term sovereign debt after withdrawing a threat to further downgrade it, but maintained its negative outlook on the rating.

Portugal is aiming to successfully exit its 78-billion-euro bailout program later this year and return to the long-term debt markets. The IGCP debt-management arm of the government successfully tested the waters last week with a 3.25-billion-euro issue of five-year bonds

S&P said it expects the center-right Social Democrat-led coalition of Prime Minister Pedro Passos Coelho to have met its deficit-reduction target of 5.5 percent of GDP last year and make progress on achieving its 4.0-percent target for this year.

Italy next, with diplomatic debauchery from TheLocal.it:

‘Bunga bunga’ claims hit US consulate in Italy

An ex-employee of the US consulate in Naples has claimed her former boss slept with his staff and gave prostitutes free access to the property, Italian media has reported.

Kerry Howard, who worked at the consul until 2012, said she was forced to quit after whistleblowing about the behaviour of former Consul General Donald Moore.

During his time in Naples, Moore allegedly slept with a number of staff and prostitutes, Il Sole 24 Ore reported. The diplomat also allegedly gave the women the code to enter the consulate at night without being detected.

“Women are like candy, unwrap them and throw them away,” Moore was quoted as saying.

Retro racism from The Independent:

Italian MP Gianluca Buonanno ‘blacks up’ to deliver racist anti-immigration rant in parliament chamber

  • Northern League politician asks parliament whether people needed to ‘go around painted black’ in order to receive state benefits

An Italian MP has “blacked up” to deliver a staggering anti-immigration rant in the country’s parliament, smearing his face from a makeup pad and asking whether “we need to be a bit darker” to get benefits from the state.

Gianluca Buonanno, a politician with the right wing Northern League party, took the opportunity on Wednesday night to criticise “latecomers” and “non-EU” citizens who receive pensions despite, he claimed, having “never worked a day in their lives”.

Looking for the Toxic Avenger with Spiegel:

The Mafia’s Deadly Garbage: Italy’s Growing Toxic Waste Scandal

For decades, the Mafia has been dumping toxic waste illegally in the region north of Naples. Recently declassified testimony shows that leading politicians have known about the problem for years, yet done nothing about it — even as the death toll climbs.

After the jump, Greek crimes and crises, Ukrainian repression, Latin American violence, Indian inflation, Thai violence, Chinese “reforms,” environmental woes, and Fukushimapocalypse Now. . . Continue reading

Headlines of the day II: EconoEcoGloboFuku


Today’s compendium of notable headlines from the realms of economics, politics, and their impacts on the rest of the planet begins with the latest of Banksters Behaving Badly via Reuters:

Deutsche, Citi feel the heat of widening FX investigation

Global investigations into alleged currency market manipulation intensified on Wednesday as U.S. regulators descended on Citigroup’s London offices and Deutsche Bank suspended several traders in New York, sources told Reuters.

The presence of Federal Reserve and Office of the Comptroller of the Currency officials at Citi’s Canary Wharf office in the east of London this week comes after Citi last week fired its head of European spot foreign exchange trading, Rohan Ramchandani, following a prolonged period on leave, one source familiar with the matter said.

The suspensions of staff at Deutsche Bank in New York and possibly elsewhere in the Americas followed investigations into “communications across number of currencies,” a second source said.

Al Jazeera America reaps gold:

Banks report record profits despite massive legal fees

  • Wells Fargo becomes most profitable bank, knocking out JPMorgan from the top spot

The nation’s major banks reported record fourth-quarter profits Wednesday, with Bank of America announcing that its profit jumped to $3.44 billion from $732 million in the same quarter in 2012, and Wells Fargo edging out JPMorgan Chase as the nation’s most profitable bank.

The jump represents a major turnaround for Charlotte, N.C.-based Bank of America, the country’s second-largest bank, which was hit last year by an $11.6 billion settlement with home mortgage giant Fannie Mae.

The settlement is the result of the bank’s involvement in the subprime mortgage crisis of 2007-08, which contributed to the massive financial crisis and subsequent economic recession in the U.S. As a result of the crisis, more than 6 million homeowners have an underwater mortgage, meaning they are paying more than what their houses are worth.

Bloomberg Businessweek reads between the lines:

The Accounting Wizardry Behind Banks’ Strong Earnings

Wells Fargo (WFC) reported a personal-best $5.6 billion in fourth-quarter earnings today, overtaking JPMorgan Chase (JPM) as the most profitable U.S. bank. JPMorgan reported $5.3 billion in fourth-quarter income and $17.9 billion for all of 2013, not too shabby for a year in which the bank spent $23 billion on legal settlements.

Upon further review, however, these profits don’t look quite as robust. More than 31 percent of JPMorgan’s 2013 earnings, or $5.6 billion, and about 10 percent of Wells Fargo’s, $2.2 billion, weren’t really earned last year. That money came instead from the banks’ so-called loan-loss reserves, an accounting accrual that’s kind of like a rainy-day fund.

Lenders set aside that cash during and shortly after the financial crisis to cover future losses in case the U.S. economy got worse and consumers couldn’t pay their credit card bills, mortgages, and other loans. But collections on most consumer loans have never been better—banks tightened lending standards, plus people went back to work—so the banks are using that money to bump up earnings.

Bloomberg bubbles:

Fed Student-Loan Focus Shows Recognition of Growth Risk

Outstanding education debt exceeded $1 trillion in the third quarter of 2013, and the share of loans delinquent 90 days or more rose to 11.8 percent, according to the Federal Reserve Bank of New York. By contrast, delinquencies for mortgage, credit-card and auto debt all have declined from their peaks.

“I’m always made very nervous by a credit market that benefits from government guarantees and is expanding very rapidly,” Jeffrey Lacker, president of the Federal Reserve Bank of Richmond, said in response to audience questions after a speech at a Jan. 10 Greater Raleigh Chamber of Commerce event in North Carolina. “That’s what we’re seeing with student loans, and it’s what we saw with housing.”

Economists at the New York Fed are analyzing student debt as part of their quarterly reports on national household credit. That project emerged six years ago as the credit crisis unfolded, when the researchers and their then-boss, Timothy F. Geithner, realized there wasn’t a good way to study total consumer borrowing.

From the Yomiuri Shimbun, futility:

Obama fails in bid to change IMF

Congress has rejected a funding request from the Obama administration that would have overhauled the International Monetary Fund. The action leaves the 188-nation group without additional resources and blocks an increase in voting power for China and other emerging markets.

The proposal was left out of the $1.01 trillion spending bill that congressional negotiators approved Monday. Both the Obama administration and IMF Managing Director Christine Lagarde expressed disappointment but pledged to keep working to win congressional support.

The overhaul was adopted by the IMF’s governing board in 2010. The plan would have doubled the IMF’s lending capacity to about $733 billion.

From Bloomberg, a lack of compassion:

Moms in ‘Survival Mode’ as U.S. Trails World on Benefits

[O]nly 12 percent of workers get paid time off to care for a baby or a sick parent, according to the U.S. Labor Department. Rhode Island this month became the third state to start a paid family leave insurance program, which was initiated by California in 2004 and by New Jersey in 2009.

A bill introduced last month in Congress would create a similar model nationally. That would make more women eligible for a benefit usually offered in the U.S. only at large companies such as Bank of America Corp. or Goldman Sachs Group Inc.

Papua New Guinea is the only other nation that doesn’t provide or require a paid maternity leave, according to information on 185 countries compiled by the United Nations’ International Labor Organization. It recommends 14 weeks off at a level no lower than two-thirds of previous earnings.

And more bad news for California’s Fourth Estate from LA Observed:

Register to lay off 39 more at Riverside P-E

A second round of layoffs at the Riverside Press-Enterprise since the purchase last fall by Freedom Communications includes 39 back-office, newsroom, information technology and production workers, the OC Register reports. The story explains that the newsroom losses involve “eight full-time and four part-time copy editor/designers,” but that some expected hiring of new reporters will even it out with “no net loss of jobs in the newsroom.”

Last month, the new Freedom management team in Riverside laid off 42 employees as part of the paper’s restructuring. That reduction included some newsroom positions.

Meanwhile, the nation heads further down the neoliberal road charted by the Reagan administration, with Obama even emulating the Gipper’s so-ca;;ed “enterprise zones.” From The Jacobin:

President Obama’s “Promise Zones” anti-poverty program is a Trojan horse for deregulation.

Last week, President Obama announced the creation of a handful of “Promise Zones” in deprived areas of the United States. While the policy sounds like a euphemism from a forty-year-old sex ed pamphlet, it is in fact the administration’s most recent attempt to tackle poverty in the country.

Obama has promised more than twenty such zones before the end of his term — the first five in Los Angeles, Philadelphia, San Antonio, the Choctaw Nation in Oklahoma, and eight counties in Kentucky. Residents of the zones can expect a bundle of deregulatory measures designed to speed up their access to pre-existing programs and encourage capital investment. These areas will be given bonus points when competing with other locales for aid from various federal programs, and businesses will be given tax breaks as incentives for moving to “Promise Zones.” Some of the locations will receive a handful of AmeriCorps volunteers as part of the program. The policy will also remove “financial deterrents to marriage” for couples on a low income as part of an attempt to “strengthen families.”

Crucially, no new federal money will be allocated.

Big boxing from The Guardian:

US files complaint against Walmart for allegedly violating workers’ rights

  • Board points to disciplinary action against striking employees
  • Walmart fired 19 workers who took part in protests

US officials filed a formal complaint Wednesday charging that Walmart violated the rights of workers who took part in protests and strikes against the company.

The National Labor Relations Board says Walmart illegally fired, disciplined or threatened more than 60 employees in 14 states for participating in legally protected activities to complain about wages and working conditions at the nation’s largest retailer.

In These Times tallies trade pact costs:

NAFTA’s Trail of Destruction

Twenty years after NAFTA, income inequality and the trade deficit have skyrocketed.

That giant sucking sound predicted by Ross Perot commenced 20 years ago last week. It is the North American Free Trade Agreement (NAFTA) vacuuming up U.S. jobs and depositing them in Mexico.

Independent presidential candidate Perot was right. NAFTA swept U.S. industry south of the border. It made Wall Street happy. It made multi-national corporations obscenely profitable. But it destroyed the lives of hundreds of thousands of American workers.

NAFTA’s backers promised it would create American jobs, just as promoters of the Korean and Chinese trade arrangements said they would and advocates of the proposed Trans-Pacific Partnership (TPP) deal contend it will. They were—and still are—brutally wrong. NAFTA, the Korean deal and China’s entry into the World Trade Organization killed American jobs. They lowered wages. They diminished what America cherishes: opportunity. They contributed to the very ill that President Obama is crusading against: income inequality. There is no evidence the TPP would be any different. American workers need a new trade philosophy, one that protects them and puts people first, not corporations.

Canada next, and a depreciation from CBC News:

Loonie expected to spiral lower in 2014

  • Exporters happy, but travellers and shoppers may pay

The Canadian dollar is expected to spiral lower throughout 2014, after a 3.1 per cent slide in the first two weeks of the year has taken the loonie to its lowest levels since 2009.

On Wednesday, the loonie was down 0.07 to 91.27 US before recovering to 91.42 at midday.

The stronger U.S. economy is putting pressure on the loonie, with earnings from bellwether stock Bank of America rising and U.S. job numbers in recovery. A report from the World Bank showing a recovering global economy also reflects badly on Canada.

And a global headline from the Associated Press:

IMF head urges caution to avoid harming recovery

The head of the International Monetary Fund warned policymakers on Wednesday to avoid mistakes that could derail a fragile global recovery.

IMF Managing Director Christine Lagarde said that Congress should promptly increase the U.S. government’s borrowing limit and the Federal Reserve should avoid withdrawing its financial support too rapidly.

Lagarde noted that the world economy is still feeling the impact of the Great Recession and 2008 financial crisis.

Europe next, and beyond the pale from Spiegel:

Green Fade-Out: Europe to Ditch Climate Protection Goals

Europe may be backing away from its ambitious climate protection goals.

The EU’s reputation as a model of environmental responsibility may soon be history. The European Commission wants to forgo ambitious climate protection goals and pave the way for fracking — jeopardizing Germany’s touted energy revolution in the process.

The climate between Brussels and Berlin is polluted, something European Commission officials attribute, among other things, to the “reckless” way German Chancellor Angela Merkel blocked stricter exhaust emissions during her re-election campaign to placate domestic automotive manufacturers like Daimler and BMW. This kind of blatant self-interest, officials complained at the time, is poisoning the climate.

But now it seems that the climate is no longer of much importance to the European Commission, the EU’s executive branch, either. Commission sources have long been hinting that the body intends to move away from ambitious climate protection goals. On Tuesday, the Süddeutsche Zeitung reported as much.

On to Britain and a declaration from EUobserver:

‘Reform or we leave EU,’ warns British chancellor

The UK will leave the European Union if the bloc refuses to reform, the country’s chancellor George Osborne said on Wednesday (15 January).

Speaking at the start of a two day conference on EU reform organised by the Open Europe think tank, Osborne said that the EU had to decide whether to “reform or decline”.

“It is the status quo which condemns the people of Europe to an ongoing economic crisis and continuing decline,” he added.

Contra-bluster from EUobserver:

UK to benefit from Bulgarian and Romanian migrants, study says

A Swedish economist has said Bulgarians and Romanians who work in other EU states are likely to contribute more to the economy than they take out in benefits.

A study published last week by Joakim Ruist, a research fellow at Sweden’s University of Gothenburg, found that the UK and Ireland stand to benefit the most from the net contributions.

“The UK and Ireland seem to be two countries in which there are good reasons to expect even more positive results,” Ruist told this website on Wednesday (15 January).

The Independent gets real:

UK immigration: Fewer than 30 Romanian arrivals since border restrictions lifted, says country’s ambassador to Britain

Diplomat also says ten UK companies had been in touch with his embassy, wanting to employ Romanians

Fewer than 30 Romanians have arrived in the UK since the lifting of border restrictions on New Year’s Day, the country’s ambassador to Britain estimates.

Ion Jinga offered the estimate in a comment piece in the Telgraph, insisting that the restictions’ lifting was “the beginning of a win-win game” for both countries.

On 1 January this year, people from Romania and Bulgaria gained the same working rights as other European Union citizens in eight countries, including the UK, Germany, Austria and France. It was hyped in some sections of the press as the day floods of migrants would sweep the country, further encumbering the welfare state.

But Mr Jinga wrote that these floods never materialised, though exact numbers aren’t available. In the UK, new arrivals aren’t made to register with local authorities, but he inferred the numbers from those arriving in the Netherlands, where registration is required.

Sky News offers bounties:

Vouchers For Officials Who Block Asylum Cases

The reward scheme has been set up to encourage Home Office staff to get failed asylum seekers removed from the UK.

Gift vouchers, holiday days and cash bonuses are being offered to Home Office staff who stop failed asylum seekers staying in Britain.

High street shopping vouchers worth up to £50 are dished out to immigration officers who win appeals against Government decisions that the asylum seekers should leave the country.

The incentives are offered as part of a Home Office reward scheme under which all the Whitehall department’s staff are able to win the perks.

Norway next, and business as usual from TheLocal.no:

Yara fined for ‘extraordinary corruption’

Norwegian fertiliser giant Yara International has been fined 295 million kroner ($50m) for bribing high-ranking government officials in Libya and India after an investigation by Norway’s economic crime agency Økokrim.

“It is an extraordinarily serious case of corruption,” Økokrim said in a statement. “The company bribed the oil minister in Gaddafi’s government in Libya, and a senior government official in India. The use of bribes was not a one-time event, but was used in three different countries and for contracts running over many years.”

EurActiv backs off:

Norway backpedals on EU single market compliance pledge

Though Norway promised in November it would live up to its obligations under the EU single market, the Liberal Party which supports the Norwegian government has changed its mind and said it would forge ahead with punitive taxes on imported EU goods.

For more than a year, the European Commission has complained that Norway, a country which is not an EU member state but has access to the single market via its membership of the European Economic Area (EEA), has put extra taxes on imported goods from the EU and failed to implement more than 400 directives, effectively obstructing the EU’s single market.

On 1 January 2013, Norway introduced a tax on certain imported goods, bringing the price of imported EU cheese up by 277% and the the price of imported hydrangea flowers by 72%.

Bernt Reitan, Yara’s chairman, said that the company’s own investigations backed up the bribery charge.

On to Germany, feebly, with BBC News:

German economic growth weaker than expected

Porsche cars ready for export Improvements in the eurozone and US economies are expected to boost German exports this year

Germany’s economy grew by a weaker-than-expected 0.4% in 2013 according to the first official estimates. That is down from the 0.7% growth Europe’s largest economy saw in 2012.

The preliminary figure from the German statistics agency suggests Germany saw little or no growth in the final three months of the year. However, most economists expect the economy to bounce back in 2014 with growth of up to 2%. The government is forecasting 1.7%.

Knockin’ at the door with Spiegel:

Welfare for Immigrants: EU Wants Fortress Germany to Open Up

Brussels is demanding that even foreigners who have never worked in Germany should have access to the country’s unemployment benefits if they hail from an EU member state. The EU is firing Germany’s already overheated immigration debate.

Officials with the Commission, the EU’s executive body, said last week they in no way want to water down “clauses designed to protect against benefit tourism.” At the same time, they also reiterated that they consider one of the central provisions of German social security law to be illegal. The idea that Germany can reject social support to EU nationals without a job runs counter to current EU law, they argue.

On to France with a neoliberal endorsement from the London Telegraph:

Francois Hollande vows ‘supply-side’ assault on French state, doubles down on EMU austerity agenda

French leader Francois Hollande stuns left-wing of his own Socialist Party by calling for a new economic strategy based on “supply-side” policies

French president François Hollande has vowed an “electro-shock” to lift the French economy out of deep slump, promising to shrink the elephantine state and push through a raft of pro-business reforms.

The embattled French leader stunned the left-wing of his own Socialist Party by calling for a new economic strategy based on “supply-side” policies, accompanied by €30bn of fresh spending cuts by 2017 to pave the way for lower taxes and charges on companies.

Endorsement, from EUbusiness:

Hollande measures ‘right direction’ for French economy: EU

Measures announced by French President Francois Hollande to cut public spending and business costs go “in the right direction” and will help the economy, the European Commission said Wednesday.

The steps “are in line with recommendations we made last year … they will boost competitiveness … and have a positive effect on growth and jobs in France,” Commission spokesman Olivier Bailly said.

“We share (President Hollande’s) position that substantial savings have to be found … we are happy to see these measures going … in the right direction,” Bailly said.

Another endorsement from RFI:

Germany welcomes Hollande’s turn to austerity

German Chancellor Angela Merkel’s right-wing party, the CDU, has welcomed French President François Hollande’s announcement of budget cuts and help to business at a much-publicised press conference on Tuesday. The French right has given the package a mixed reception.

“What the French president presented yesterday is, firstly, courageous,” Foreign Affairs Minister Frank-Walter Steinmeier told reporters. “That seems to me to be the right way, not only for France, but it can also be a contribution that brings Europe as a whole a bit stronger” out of the region’s financial crisis.

And that old hard times intolerance, as administered with socialist [snicker] Hollandaise sauce by GlobalPost:

France evicted record 19,000 Roma migrants in 2013

France forcibly evicted a record 19,380 Roma migrants in 2013, more than double the figure the previous year, two rights groups said in a joint report on Tuesday.

“In comparison 9,404 Roma were forcibly evicted by authorities in 2012 and 8,455 in 2011,” the Human Rights League (LDH) and the European Roma Rights Centre (ERRC) said.

“Forced evictions continued almost everywhere without credible alternative housing solutions or social support,” they said.

TheLocal.fr finds a parallel:

Big business and Europe hail ‘France’s Tony Blair’

The French President François Hollande’s planned reforms to cut labour costs for businesses by €30 billion were hailed by big business, European finance chiefs, and even his enemies on the right on Wednesday and led many to conclude that France had found its own Tony Blair.

Business leaders, European finance chiefs, the Germans and even his sworn enemies on the Right of French politics were all happy. However, there were few smiles on the Left .

This was the general reaction to Hollande’s speech given during a high profile press conference, in which he managed to dodge a grilling about his private life, to announce several planned economic reforms that included cuts to taxes, labour costs and public spending.

And on another note, this from EurActiv:

Defiance against the EU reaches record levels in France: Poll

Trust in national and European institutions has hit a record-low in France, according to a recent poll, leading to a feeling of “gloom” among a growing number of citizens, and perhaps even a rise in support for the reinstatement of the death penalty, EurActiv France reports.

“It’s not a confidence but a defiance poll this time,” said Pascal Perrineau, director of SciencesPo University’s Centre of French Political Studies (CEVIPOF).

Perrineau was addressing the press as he presented the results of a new survey about French people’s confidence in politics, carried out at the end of November among 1,803 citizens.

Since the polls began in 2009, the feeling of exasperation has become more widespread among those surveyed. For the first time, the people surveyed used the word “gloom” to define their current environment.

On to Switzerland with TheLocal.ch and the inevitable suspects:

Swiss scrap social aid for European job seekers

Bern moved on Wednesday to scrap aid for European jobhunters, as rapidly rising immigration to the country fueled fears of “benefits tourism”.

EU citizens as well as those from Iceland, Liechtenstein and Norway “who come to Switzerland to look for work will have no right to social assistance,” the Federal Office for Migration said in a statement.

Those who hold a Swiss residency permit but who have been unemployed for 12 months or more, would also lose the permit after five years in the country, it added.

Foreigners made up almost a quarter of Switzerland’s eight million residents last year — 3.3 percent more than in 2012, according to official data.

Spaon next, with labor news from TheLocal.es:

Spain’s first prostitute union formed in Ibiza

Prostitutes in the Spanish tourist island of Ibiza have formed a sex workers’ cooperative to pay taxes and gain social security benefits — the first such group legally registered in Spain, they say.

Eleven women registered with local authorities as working members of the Sealeer Cooperative providing sexual services, said their spokeswoman, María Josí López.

“We are pioneers,” she told AFP. “We are the first cooperative in Spain that can give legal cover to the girls.”

Europe Online continues deflating:

Spain reports lowest inflation rate in more than 50 years

Spain finished 2013 with an inflation rate of 0.3 per cent, the lowest annual increase in consumer prices since 1961, data released Wednesday by the National Statistics Institute showed.

The rate is a stark contrast to the consumer price increase of the past few years. Spain recorded an annual inflation rate of 2.9 per cent in 2012, preceded by 2.4 in 2011 and 3 per cent in 2010.

Consumer prices in most areas stagnated over the past year, including prices for culture, entertainment and apparel. Only the transportation sector recorded price increases, and a rise in fuel costs contributed to a small bump in the overall index in December.

TheLocal.es states a demand:

‘Spain must step up war on corruption’: EU

Spain needs to ramp up its fight against corruption by introducing key reforms aimed at greater transparency, the Council of Europe’s anti-corruption group said in a new report released on Wednesday.

Corruption in Spain is threatening institutional credibility, said the Council of Europe anti-corruption group (Greco) in its new report.

Citing the numerous corruption scandals in the country and a general lack of public faith in the country’s politicians, the group noted that Spain was slipping in the annual ratings issued by Transparency International.

And more blowback to planned laws to restrict abortions via El País:

Extremadura PP urges government to shelve abortion reform

  • Eurodeputies open new front in Brussels in united rejection of “human rights violation”

The voices of opposition to the government’s proposed reform of the Abortion Law within the Popular Party grew to a chorus Wednesday when the conservative group in the Extremadura regional assembly drew up a motion urging Mariano Rajoy’s administration to “open a process of dialogue and debate with other political forces” to seek a less divisive reform “in keeping with today’s plural and educated society, and that is in line with legislation in neighboring countries.”

Regional premier José Antonio Monago, of the PP, also stressed that the government should not push ahead with its reform unilaterally and that the new law must include “the rational combination of time periods with the regulation of specific scenarios such as fetal abnormalities, pregnancy of minors and instances of rape.”

The Portugal News brings theatrical woes:

Box office struggling

Portuguese movie theatres attracted 1.3 million fewer spectators in 2013 than the year before, translating into a year-on-year loss of more than 8.5 million euros.

According to figures from the Cinema and Audiovisual Institute last year’s drop in occupied seats is even more pronounced when compared with 2011.

After jump, the latest from Greece, Russian stagflation, Ukrainian sanctions, Latin American inflation, Aussie dollar woes, Indonesian healthcare, Chinese finances, nuclear power proliferation, GMOs, and Fukushimapocalypse Now! Continue reading

Headlines of the day I: Spies, pols, laws, tricks


Welcome to the dark side, the world of covert ops of overt oops.

We begin with a headline designed to make a real truly insecure, via USA TODAY:

Nuclear missile officers caught in cheating scandal

The Air Force said Wednesday it has uncovered a test cheating ring at a ballistic missile base in Montana that implicated 34 missile launch officers.

The investigation found that some officers were electronically sharing answers on a monthly proficiency test, the Air Force said.

The officers either cheated on the test or knew about it and did nothing to stop or report it, Air Force Secretary Deborah Lee James said.

Computerworld courts the ex parte:

FISA judges oppose plan for privacy advocate

  • Say plan to add privacy advocate to secret court could hamper its work

Foreign Intelligence Surveillance Court judges have said the creation of a privacy advocate in the secret court could be counterproductive and hamper its work.

The FISC court was set up under the Foreign Intelligence Surveillance Act (FISA), which requires the government to obtain a judicial warrant for certain kinds of intelligence gathering operations.

The creation of the position of a privacy advocate, to represent privacy and civil liberty issues in the court, was first suggested in August by U.S. President Barack Obama in the wake of demands for reforms of the surveillance programs of the National Security Agency. The agency came under scrutiny after disclosures through newspaper reports by former NSA contractor, Edward Snowden, of its dragnet surveillance, including the bulk collection of phone records of Americans.

Deutsche Welle divides:

US Congress divided on NSA reform proposals

A US Senate intelligence review panel has found shortcomings in the NSA spy agency. The panel of experts has been cross-examined by a Senate committee, which made an effort to calm concerns about implementing reforms.

The National Security Agency (NSA) must be reformed: The review panel is unanimous on this point, even if Congress is not.

Senator Patrick Leahy, chairman of the judiciary committee that interviewed the intelligence experts, gave the hand-picked panel his backing. “I believe strongly that we must impose stronger limits on government surveillance powers,” the Democrat said on Tuesday (14.01.2014) at the start of the hearing. But those called to testify before the committee apparently did not want to put it as starkly as that. The five authors of the 308-page report entitled, “Liberty and Security in a Changing World,” were adamant about not jeopardizing the work of the NSA.

“Much of our focus has been on maintaining the ability of the intelligence-community to do what it needs to do,” said one of the panel, law professor Cass Sunstein. “And we emphasize – if there is one thing to emphasize, it is this – that not one of the 46 recommendations of our report would in our view compromise or jeopardize this ability in any way.”

CNN stonewalls:

NSA to senator: If we were collecting your phone records, we couldn’t tell you

National Security Agency chief Gen. Keith Alexander, in response to a letter from Sen. Bernie Sanders, said Tuesday that nothing the agency does “can fairly be characterized as ‘spying on Members of Congress or American elected officials.’”

Alexander did not offer any further details about members of Congress specifically, arguing that doing so would require him to violate the civilian protections incorporated into the surveillance programs.

“Among those protections is the condition that NSA can query the metadata only based on phone numbers reasonably suspected to be associated with specific foreign terrorist groups,” Alexander wrote.

Sanders, I-Vermont, had written to Alexander earlier this month asking whether the NSA is currently spying “on members of Congress or other American elected officials” or had in the past.

The New York Times simulates Hope™, refuses Change™:

Obama to Place Some Restraints on Surveillance

President Obama will issue new guidelines on Friday to curtail government surveillance, but will not embrace the most far-reaching proposals of his own advisers and will ask Congress to help decide some of the toughest issues, according to people briefed on his thinking.

Mr. Obama plans to increase limits on access to bulk telephone data, call for privacy safeguards for foreigners and propose the creation of a public advocate to represent privacy concerns at a secret intelligence court. But he will not endorse leaving bulk data in the custody of telecommunications firms, nor will he require court permission for all so-called national security letters seeking business records.

Techdirt nails it:

Obama Plans Cosmetic Changes To NSA: Embraces ‘The Spirit Of Reform’ But Not The Substance

  • from the as-expected dept

The expectation all along was that the President’s intelligence task force was likely to recommend cosmetic changes while leaving the worst abuses in place. And, in fact, many of us were quite surprised to see the panel’s actual recommendations had more teeth than expected (though, certainly did not go nearly far enough). It was pretty quickly suggested that President Obama wouldn’t support the most significant changes, and now that he’s set to announce his plan on Friday, it’s already leaked out that he’s going to support very minimal reforms that leave the problematic spying programs of the NSA effectively in place as is.

And The Guardian delivers the symbolic:

NSA reform measures quietly included in $1.1tn spending bill

  • Compromise spending package contains provisions asking the NSA to quantify the effectiveness of its surveillance program

Congress is calling on the National Security Agency to detail the effectiveness of its bulk data collection programmes and will outlaw certain types of domestic surveillance, using two little-noticed clauses included in its giant federal spending bill.

The $1.1tn budget bill passed the House of Representatives Wednesday afternoon by 359-67 votes and is expected to become law after clearing the Senate as soon as Friday.

But in a sign of pent-up reform pressure on Capitol Hill, two measures dealing with the NSA were quietly included in the 1,600-page spending text with relatively little fanfare – or opposition from the White House – and are likely to pave the way for more binding legislative efforts once President Barack Obama outlines his own response to the surveillance scandal on Friday.

And the latest NSA spooky doings revelation, via the New York Times:

N.S.A. Devises Radio Pathway Into Computers

The National Security Agency has implanted software in nearly 100,000 computers around the world that allows the United States to conduct surveillance on those machines and can also create a digital highway for launching cyberattacks.

While most of the software is inserted by gaining access to computer networks, the N.S.A. has increasingly made use of a secret technology that enables it to enter and alter data in computers even if they are not connected to the Internet, according to N.S.A. documents, computer experts and American officials.

The technology, which the agency has used since at least 2008, relies on a covert channel of radio waves that can be transmitted from tiny circuit boards and USB cards inserted surreptitiously into the computers. In some cases, they are sent to a briefcase-size relay station that intelligence agencies can set up miles away from the target.

Deutsche Welle fumes:

Opposition hits out at progress in Germany-US ‘no-spy agreement’

Talks over a potential ‘no-spy agreement’ with the US appear to be stalling. Germany’s opposition parliamentarians have hit out at the government’s handling of the affair, calling it the “scandal after the scandal.”

The Left party’s parliamentary home affairs expert, Jan Korte, told a special session of the Bundestag on Wednesday convened to discuss the fledgling ‘no-spy agreement’ negotiations that the German government’s handling of the NSA affair has now become the “main problem.”

Instead of just expressing their dissatisfaction with the negotiations over the proposed agreement with the US, Germany must also pull out of the planned European Union-US trade agreement, Korte said. “This is a language the Americans understand,” he added.

Greens data protection expert Konstantin von Notz accused the government of months of “transfiguration and cover-up” during the affair. “This is the scandal after the scandal,” said von Notz, adding that the no-spy agreement was an “inadequate attempt” to resolve the US National Security Agency’s violation of international law.

Spiegel has a pessimistic take:

‘The Americans Lied’: Trans-Atlantic ‘No-Spy’ Deal on the Rocks

Berlin wants a deal with the US that prohibits trans-Atlantic spying, but Washington seems uninterested.

Last summer, German Chancellor Angela Merkel promised her citizens a pact which would prohibit US spying on German citizens. But since then, Washington has shown little interest in pursuing such a treaty. Now, officials in Germany fear the deal is dead.

Failed talks? Hardly. The negotiations “are continuing,” says Germany’s foreign intelligence service, the Bundesnachrichtendienst (BND). “We are still talking,” says the German government. In other words, nothing has yet been decided. The No-Spy deal is still alive.

But the statements coming out of Berlin and Pullach, where the BND is headquartered, reek of forced optimism. Nobody wants it to look as though efforts have been abandoned toward a deal which would see the US agree to swear off spying operations in Germany. Yet despite the assertions, most of those involved are slowly coming to the realization that a surveillance deal between Washington and Berlin isn’t likely to become reality. The US government is still digging in its heels.

EUbusiness deliberates:

Berlin hosting talks for EU ‘no-spy’ pact: report

Germany has hosted confidential EU talks for months to forge a “no-spying” pact among its member states, a drive opposed especially by Britain, a newspaper reported Wednesday.

The pre-released Sueddeutsche Zeitung report came a day after the Munich daily said that similar US-German talks were seen close to failure, sparking denials from both Berlin and Washington.

Both sets of talks follow revelations by fugitive former intelligence contractor Edward Snowden of American mass surveillance of global online and phone data in cooperation with Britain’s GCHQ service.

The Washington Post drones on, prolifically:

Border-patrol drones being borrowed by other agencies more often than previously known

Federal, state and local law enforcement agencies are increasingly borrowing border-patrol drones for domestic surveillance operations, newly released records show, a harbinger of what is expected to become the commonplace use of unmanned aircraft by police.

Customs and Border Protection, which has the largest U.S. drone fleet of its kind outside the Defense Department, flew nearly 700 such surveillance missions on behalf of other agencies from 2010 to 2012, according to flight logs released recently in response to a Freedom of Information Act lawsuit filed by the Electronic Frontier Foundation, a civil-liberties group.

The records show that the border–patrol drones are being commissioned by other agencies more often than previously known. Most of the missions are performed for the Coast Guard, the Drug Enforcement Administration and immigration authorities. But they also aid in disaster relief and in the search for marijuana crops, methamphetamine labs and missing persons, among other missions not directly related to border protection.

MintPress News goes Post-al:

Activists Continue To Push Washington Post To Disclose Its CIA Connection

But Executive Editor Martin Baron said the newspaper doesn’t need to routinely inform readers of the CIA-Amazon-Bezos ties when reporting on the CIA.

In this May 6, 2009 file photo Jeff Bezos, CEO of Amazon.com, introduces the Kindle DX at a news conference in New York. The Kindle DX has a larger 9.7 inch screen than its predecessor, the Kindle 2, and can be ordered for $489 for delivery this summer. (AP Photo/Mark Lennihan, File)

After collecting some 33,000 signatures, a group of activists say they are ready to deliver a petition to the Washington Post on Wednesday, asking the paper to disclose to the public that the paper’s owner Jeff Bezos not only works with, but profits from the CIA.

Started by the progressive online organization RootsAction, which advocates for economic fairness, equal rights, civil liberties, environmental protection and defunding endless wars, the petition says that “a basic principle of journalism is to acknowledge when the owner of a media outlet has a major financial relationship with the subject of coverage.”

From China Daily, insecurity:

UK moves away from Chinese telecom equipment

Accusations about “information security” directed toward Chinese communication equipment should based on facts or investigative results rather than concerns raised by possible “vulnerabilities”, observers said on Tuesday after British ministries dumped Chinese products.

British government departments such as the Home Office, Ministry of Justice and Crown Prosecution Service are all said to have stopped using equipment manufactured by Chinese telecom company Huawei amid fears they are being used by the Chinese government to eavesdrop, according to a report by the UK’s Sunday Mirror.

A briefing was sent to all ministerial departments urging them to stop using the video-conferencing equipment, the newspaper said, adding that there are possible “vulnerabilities” that have caused widespread concern.

Wired wins:

Scholar Wins Court Battle to Purge Name From U.S. No-Fly List

A former Stanford University student who sued the government over her placement on a U.S. government no-fly list is not a threat to national security and was the victim of a bureaucratic “mistake,” a federal judge ruled today.

The decision makes Rahinah Ibrahim, 48, the first person to successfully challenge placement on a government watch list.

Ibrahim’s saga began in 2005 when she was a visiting doctoral student in architecture and design from Malaysia. On her way to Kona, Hawaii to present a paper on affordable housing, Ibrahim was told she was on a watch list, detained, handcuffed and questioned for two hou

The New York Times palavers:

Syria Says It Held Talks With Western Spies About Jihadis

As Western countries display increasing alarm at the strength of multinational Islamist extremists among rebels in Syria opposed to President Bashar al-Assad, a Syrian official was quoted on Wednesday as saying Western intelligence agencies had sent representatives to Damascus to discuss the phenomenon with the government there.

If confirmed, the assertion by the official, Faisal Mekdad, the deputy foreign minister, would mean that while Western politicians have publicly called for Mr. Assad’s ouster, their own intelligence subordinates were privately collaborating with Mr. Assad’s lieutenants.

In an interview with the BBC, Mr. Mekdad was asked whether representatives of Western intelligence agencies — including those of Britain — had recently traveled to Damascus. “I will not specify them but many of them have visited Damascus, yes,” he replied.

After the jump, security crises in Asia, spook-thwarting software and tech [marketed and stolen], plus some corporate cyberstalking. . . Continue reading

Headlines of the day II: EconoGrecoFukuMania


We begin today’s headlines close to home with Al Jazeera America:

North California drought threatens farmers, ag workers, cities – and you

  • Driest conditions in 100 years could hit the nation’s food basket hard, affecting half of US fruits and vegetables

Water shortages are affecting urban areas too. Voluntary and mandatory water restrictions are in effect in Northern California cities and counties. Mendocino declared a state of emergency. The city of Folsom’s 72,000 residents are under mandatory water restrictions: Limit lawn watering to twice a week, use a shutoff valve on hoses when washing cars.

Meanwhile, in Santa Cruz, residents can’t wash paved surfaces and may be cited if they water their yards between 10 a.m. and 5 p.m. Local restaurants may serve water only on request, and swimming pools may not be drained and refilled. If the drought continues, restrictions will get tighter, said Eileen Cross, the city’s community-relations manager.

The Globe and Mail delivers a blow:

Internet neutrality rules struck down by U.S. appeals court

A U.S. appeals court on Tuesday struck down the government’s latest effort to require internet providers to treat all traffic the same and give consumers equal access to lawful content, a policy that supporters call net neutrality.

The Federal Communications Commission did not have the legal authority to enact the 2011 regulations, which were challenged in a lawsuit brought by Verizon Communications Inc., the U.S. Court of Appeals for the District of Columbia Circuit said in its ruling.

“Even though the commission has general authority to regulate in this arena, it may not impose requirements that contravene express statutory mandates,” Judge David Tatel said.

MIT Technology Review parses consequences:

Net Neutrality Quashed: New Pricing Schemes, Throttling, and Business Models to Follow

Depending on who you ask, a court loss for “net neutrality” will mean either a new era of innovation or preferential treatment and higher costs.

The Internet was built on the principle that all packets of data should be treated equally, which shaped the products and companies built on top of it.

A decision issued today by a U.S. federal appeals court struck down parts of the Federal Communications Commission’s Open Internet, or “net neutrality,” rules issued in 2010. Accepting much of a challenge by Verizon, the court killed the FCC’s policies that aimed to prevent data-discrimination or data blocking. But the ruling does require carriers to disclose when they block, slow, or expedite various kinds of traffic in the future.

The results could be far-reaching. Consumers may see new offerings such as free content from companies willing to pay carriers extra for delivery; app companies could find themselves charged a fee to ensure that their videos get glitch-free performance; and e-commerce companies could be asked to pay to make sure their bits go through quickly enough to close a sale.

Quartz stays:

Jamie Dimon says he has no plans to step down as CEO after $22 billion in fines

A feisty Jamie Dimon said that he’s not planning on resigning in the wake of a raft of fines that has plagued JP Morgan over the past year. Asked if he would consider resigning on a conference call this morning to discuss the bank’s fourth-quarter results with reporters, the chairman and CEO fired off: “No, no and no.” He qualified his comments in the same breath, “And it’s all up to the board.”

JP Morgan has faced a litany of legal fines related to its business practices—resulting, last quarter, in its first-ever loss under Dimon’s tenure. Most recently, the firm was fined $2.6 billion for charges that it had turned a blind eye to signs of fraud in the massive Bernie Madoff Ponzi scheme. That fine, the firm reported today, drove down quarterly profits for the latest quarter by 7.3%. Overall, the sprawling firm has been hit with $22 billion in fines and penalties in the past year.

Sources have also told Quartz that Dimon has no intention of stepping down. So far both of directors of the firm and investors have expressed support of the 57-year old exec, who took the helm of the bank in 2005, the sources say.

From Salon, academia vanquished:

GOP’s Enron-esque higher ed plan: Fire tenured faculty to fund student dorms

  • In Gov. Tom Corbett’s Pennsylvania, if it’s public and it’s education, burn it down!

The tenure system in American higher education is a limitless source of debate: Critics say it leaves younger scholars to publish or perish, or decaying professors to cash in on mediocrity; advocates note its importance in protecting academic freedom, risk-taking and, insofar as professors are workers, job security.

In Pennsylvania, it’s all moot. Now, under the stewardship of Jeb Bush’s former sidekick, tenured faculty are being laid off in droves. The response has been student sit-ins, faculty mobilization and investigations of Enron-style accounting. It’s a real-time, rolling image of higher education shock therapy — and a threatening signal to public universities nationwide.

TheLocal.no invests:

Oil fund in $480m San Francisco office deal

Norway’s Oil Fund has struck a $480m deal to buy stakes in office blocks in San Francisco and Washington DC, as it continues its push to increase the proportion of property investments in its portfolio.

Norges Bank Investment Management (NBIM), which manages Norway’s Government Pension Fund or Oil Fund, teamed up for the deal with the US insurer MetLife, with whom it did a deal to buy stakes in a financial centre in Boston in December.

“With these two investments, we are expanding our joint venture with MetLife in line with our strategy and original intent,” Karsten Kallevig, chief investment officer for real estate at Norges Bank Investment Management (NBIM), said.

“Our growing partnership with NBIM speaks to our strong capabilities in the asset-management business,” said Robert Merck, global head of real estate investments at New York-based MetLife.

On to Canada with the Toronto Globe and Mail:

Canadian home prices return to record high

Canadian home prices ticked back up to a record high in December, thanks entirely to Edmonton, Vancouver and Toronto, according to the Teranet-National Bank house price index.

The 0.1-per-cent rise in home prices in December reversed a 0.1-per-cent decline in November, and returned the index to its all-time high.

But the majority of the 11 cities that the index tracks have seen prices edge down in recent months. Winnipeg, Calgary, Ottawa-Gatineau, Quebec City, Montreal, Hamilton, Halifax and Vancouver each saw prices decrease from November to December.

On to Europe, first with a tussle from EUbusiness:

Euro-MPs take ‘Troika’ to task

EU lawmakers took the ‘Troika’ to task Tuesday, seeking answers about how the controversial trio of international creditors ran painful eurozone debt bailouts which encouraged austerity instead of growth.

European Parliament deputies asked who among the European Union, the European Central Bank and the International Monetary Fund should be held to account for the policies followed since 2010.

They were also keen to hear how economic forecasts, key to the bailout programmes and aid payments, fell short, especially in the case of Greece which required a second massive rescue marked by even more tough austerity provisions.

And a Troikarch spins it, from EUobserver:

Former ECB chief blames governments for euro-crisis

The former head of the European Central Bank (ECB), Jean-Claude Trichet, has blamed EU governments for what he called the “worst economic crisis since World War II” and said the eurozone is still at risk.

Trichet, who led the ECB between 2003 and 2011, spoke out on Tuesday (14 January) at a European Parliament hearing on the “troika” of international lenders which managed bailouts in Cyprus, Greece, Ireland and Portugal.

Echoing EU economics commissioner Olli Rehn’s remarks to MEPs ealier this week, Trichet underlined the “extraordinary” and unpredictable nature of the euro-crisis.

A threat assessed with TheLocal.se:

Extreme right ‘biggest threat to EU’: Malmström

An EU push to counter extremism will give member states cash to help defectors, with Sweden’s European Commissioner identifying right-wing extremists as the biggest threat in the union today.

“The biggest threat right now comes from violent right-wing extremism,” Commissioner Cecilia Malmström told Sveriges Radio (SR) on Tuesday. “For example in Greece and in Bulgaria, but also in Hungary.”

Malmström said both right-wing and left-wing extremists were radicalizing in Europe.

On to Britain with an ultimatum from The Independent:

George Osborne to tell EU to ‘reform or decline’ in speech to Tory party’s Eurosceptics

  • The latest outbreak of infighting over Europe has placed fresh strain on Coalition unity, with one senior Lib Dem figure likening David Cameron to Neville Chamberlain in his willingness to appease

The European Union will be challenged by George Osborne today to “reform or decline”, as backbench pressure intensifies on the Tory leadership to demand the return of widespread powers from Brussels.

The latest outbreak of infighting over Europe has placed fresh strain on Coalition unity, with one senior Liberal Democrat figure provocatively likening David Cameron to Neville Chamberlain in his willingness to appease Eurosceptic critics.

The source claimed that continuing concessions by the Prime Minister echoed his predecessor’s behaviour in negotiating with Hitler ahead of the Second World War.

The Guardian stiffs the poor:

Warning that fund for poorer students faces £200m cutback

  • Treasury targets cash for disadvantaged students as Labour says coalition is punishing the poorest again

Funds to help disadvantaged students attend university could be slashed by as much as 60% as the Treasury seeks to close the budget deficit of the Department for Business, Innovation and Skills (BIS), according to a group that represents universities.

The student opportunity fund – a £327m programme for disadvantaged students paid to universities through the Higher Education Funding Council for England (Hefce) – could be slashed by about £200m, it fears, after wrangling between the Treasury and BIS over the latter department’s shortfall, caused in part by an explosion in course fees paid to private further education providers.

The million+ policy group, which represents many new universities, claimed that the Treasury and the Cabinet Office were pressing for the reductions as part of the cost savings being imposed on BIS.

Ireland next and another no from the Irish Times:

New party seeks euro exit and end to immigration

  • National Independent Party to run European election candidates in new South constituency

Ireland’s newest political party, the National Independent Party, has said it favours exiting the euro and opposes economic migration.

Formally launched in Dublin today, it has an estimated 120 members and lodged its registration papers as a political party to run a limited campaign in Dublin and Limerick for the local elections.

It then aims to reach a 300-member threshold and run in the 2016 general election.

Austerity to come from the Health Service Executive via the Irish Times:

HSE chief raises prospect of further cutbacks in health service

  • O’Brien tells Oireachtas committee it will not be possible to meet fully all demands

HSE chief executive Tony O’Brien held out the prospect of further health cutbacks this year given the financial challenge facing the service.

Mr O’Brien said this evening it will not be possible to meet fully all of the growing demands being placed on the health service this year.

Addressing the Oireachtas Joint Committee on Health, he said that “some service priorities and demographic pressures may not be met”.

On to Germany, with a bonus from EurActiv:

German banks too slow to cap bonuses, says watchdog

Germany’s banks have made little progress on efforts to curb bonuses of top managers ahead of new European rules designed to control the type of risky behaviour that fuelled the financial crisis, the country’s financial watchdog said on Monday (13 January).

Only four of the 15 banks that Bafin examined last year capped bankers’ bonuses at the level of their base salaries, in line with the European Union-wide rule that came into force this year.

“We are not entirely happy with any bank,” Bafin chief Raimund Röseler told journalists.

France next, and another presidential promise evaporates, from TheLocal.fr:

France doubles number of Roma evictions

France’s controversial expulsions of Roma, which has drawn condemnation from the European Commission, hit a record high in 2013. A new report says nearly 20,000 were deported – double the number that were expelled in 2012.

France expelled nearly 20,000 Roma people in 2013, which is not only a record, but more than double the number kicked out of the country the previous year.

Despite President François Hollande’s criticisms of his predecessor’s policy towards the Roma, the number of expulsions has been climbing since he took office in 2012, French newspaper L’Express reported. About 9,400 were expelled in 2012 and 8,400 were forced out in 2011.

“The expulsions are part of a policy of refusal,” of the Roma, “that has got worse since the left-leaning government took power,” the report says. “The authorities want only one thing: send the Roma back to their country of origin.”

Spain next, and class war from El País:

Wage gap in Spain widens hastening the decline of the middle classes

  • Remunerations of directors rose seven percent last year as middle management salaries fell, according to a study

The salary gap in Spain is getting bigger. While directors saw their remuneration rise by 6.9 percent last year, middle management suffered a fall of 3.8 percent and workers a drop of 0.4 percent.

The figures released Tuesday, in an annual report carried out by Barcelona business school Eada and the consultant ICSA, are further proof of the unraveling of the middle classes, according to the director of the study, Ernest Poveda. “What we’re seeing is a clear polarization trend: with a rise in what directors receive and a fall in the rest — two segments where wages are moving downward to the same level, that is where the trend is one of homogenization, while those who earn the most earn even more.”

The study, which is based on 80,000 interviews, shows that the average salary of directors has been on the rise in spite of the crisis, with the exception of 2009. The average annual gross salary of this group rose from 68,705 euros to 80,330 last year. Workers and middle management saw an increase in what they earn in 2008 and 2009 before experiencing falls thereafter. The average gross salary of middle managers last year was 36,522 euros, and for other employees it was 21,307 euros.

Along the same line, from TheLocal.es:

Credit squeeze ‘killing’ 90 Spanish firms a day

Spanish banks, alarmed by multiple bankruptcies and mass unemployment, are keeping a tight rein on loans and potentially choking off the lifeblood of a longed-for economic recovery, analysts say.

Insufficient credit threatens to throttle Spain’s fragile recovery, they warn, after a double-dip recession triggered by a 2008 property crash, which left banks awash with bad loans.

Last year, Spain shored up its tottering banks’ balance sheets with a €41.3-billion ($56 billion) programme financed by its eurozone partners.

But the banks have shown reluctance to lend, economists and industry say, as the eurozone’s fourth-largest economy struggles with a 26-percent unemployment rate and, according to official data compiled by auditors PwC, a 20-percent rise in bankruptcy filings in 2013.

Bloomberg totals the tab:

Spain Says CAM Savings Bank Rescue Cost May Reach $21 Billion

Spain’s 2011 bailout of savings bank Caja de Ahorros del Mediterraneo (CAM) may cost as much as 15 billion euros ($21 billion) because its assets performed worse than expected, Economy Minister Luis de Guindos said.

Banco Sabadell SA (SAB) bought the failed savings bank known as CAM for 1 euro after Spain’s deposit-guarantee fund, financed by the nation’s banks, injected 5.25 billion euros into the lender and offered guarantees against certain assets souring, shielding the national budget from losses.

De Guindos said yesterday the assets included in the so-called asset-protection plan had performed worse than predicted, and the total cost of the cleanup may amount to as much as 15 billion euros. By comparison, Bankia SA, the lender whose nationalization in 2012 pushed Spain to seek a European banking bailout, took 18 billion euros of European rescue funds and transferred about 22 billion euros of real estate-linked assets to the nation’s so-called bad bank.

El País notes a decline:

House sales in November plunge close to lowest levels since the crisis broke

  • Transactions declined an annual 15.7 percent in the month to 21,847, the second lowest figure since the real estate boom bust

Just a day after Economy Minister Luis de Guindos said that the housing market was beginning to touch bottom in a recovery that is gathering pace, the National Statistics Institute (INE) on Tuesday announced that home sales plunged in November of last year to their second-lowest level since the crisis began around the start of 2008.

The INE said housing transactions in the month shrank by 15.7 percent to 21,847, a figure only above that of April 2012, which coincided with that year’s Easter holidays and therefore had fewer working days.

Despite an accumulated fall in prices since the highs set in 2007 of around 40 percent after a decade-long boom that suddenly burst, house sales have fallen for the last seven straight months. In the first 11 months of last year, home sales dropped 2.1 percent.

On to Lisbon and another decline from the Portugal News:

Bad year for national vehicle production

Last year saw a 5.8 percent slide in overall vehicle production, 3.1 percent below the average for the last five years, with a total of 154,016 vehicles coming out of multinational owned factories in Portugal according to figures from ACAP – the National Car Association published this week.

Adding to glimmers of life flickering back into the economy, December did see a sharp improvement with a total of 9,440 vehicles produced, up 92.3 percent year-on-year as last year automobile firms were mothballing in the run up to the Christmas period having already built up reserve stock levels.

Annual passenger car production was down 5.2 percent year-on-year while the vans, heavy-goods and commercial vehicles shed 6.6 percent, 14.9 percent and 7.3 percent of their output respectively.

ACAP added that 2013 saw car production at “15.4 percent of the average for the last ten years and 3.1 percent below the five-year average.”

Italy next, and a ray fo sunshine from AGI:

Finance Minister reports modest signs of growth

Finance Minister Fabrizio Saccomanni, speaking in Milan at a conference on the euro, reported weak and modest signs of growth in the economy. Saccomanni does not underestimate anti-European feeling in various countries just a few months before the elections for the European parliament.

“These feelings are not a surprise considering the unprecedented economic crisis and we must now concentrate on revival and unemployment,” he added.

TheLocal.it blows smoke:

Turin votes in favour of legalizing cannabis

Turin’s city council has approved a motion in favour of making the drug legal for therapeutic purposes, making it the first of Italy’s large cities to do so.

The proposal is an appeal to the Italian Parliament that they “move from a prohibitionist structure to one where soft drugs, particularly cannabis, are legally produced and distributed”. This means that while the vote doesn’t make it legal to consume, buy or sell cannabis for individual use yet, it paves the way for a more tolerant view of the drug in the eyes of the law.

There are two parts to the proposal; the first called for the right to use cannabis for ‘therapeutic’ purposes, something already permitted in Tuscany, Liguria and Veneto, where as well as authorizing pharmacies to sell cannabis-based products, experimental distribution of free medications containing cannabis has been approved in hospitals, as well as direct production of marijuana.

The second part is more drastic: it overrules the Fini-Giovanardi law, by which offences involving cannabis are treated in the same way as those involving cocaine or heroin. This would pave the way for legalization of recreational cannabis use.

After the jump, the latest from Greece, a Turkish proposal, Latin American trade and travails, Indian finance, Thai troubles, Chinese neoliberalism, Japanese deficits, environmental woes, and Fukushimapocalypse Now!. . . Continue reading

Headlines of the day II: EconoEcoGrecoFuku


Our excursion into the world of economics, politics, and their impacts on the world we live in begins on a downbeat note from CNBC:

New report says millions of women at risk of falling into poverty, economic ruin

Although in recent decades women have made historic advances in nearly all areas of American public life, a staggering number of women across the country are still teetering on the verge of poverty and economic disaster, a new report released Sunday shows.

The report, co-authored by NBC News special anchor Maria Shriver and the Center for American Progress, takes a wide-angle snapshot of a national economic crisis — seen through the eyes of women. The key findings paint a portrait of an estimated 42 million women — and 28 million dependent children — saddled with financial hardship.

“These are not women who are wondering if they can ‘have it all,’” Shriver wrote in her introduction to the report. “These are women who are already doing it all — working hard, providing, parenting, and care-giving. They’re doing it all, yet they and their families can’t prosper, and that’s weighing the U.S. economy down.”

The Guardian covers banksters being banksters:

Bank bonuses: brace yourself for the great Wall Street trousering

  • The big US banks are about to reward their employees again, to the tune of another £4bn

This is a big week. A very big week. A several-billion-dollar week, in fact, if you happen to be a Wall Street banker.

Yes, it’s the time of year when US banks reveal how much they’ve stuffed into their bonus pools and – by extension – how robust their employees’ trademark braces must be as we realise how much they trousered.

In the first nine months of 2013, the big US banks set aside about £40bn to top up their staffers’ meagre stipends. Analysts reckon Morgan Stanley and Goldman Sachs will pour in another £4bn when they report results this week – meaning little work will be done as bankers focus on pretending they got more than they actually did.

The Progressive has the spreadsheet:

Millionaires: Officially the Real Majority in Congress

For the first time ever, a majority of America’s elected officials in Congress are millionaires.

“Of 534 current members of Congress, at least 268 had an average net worth of $1 million or more in 2012,” a new analysis of financial disclosure forms by The Center for Responsive Politics explains. “The median net worth for the 530 current lawmakers who were in Congress as of the May filing deadline was $1,008,767 — an increase from the previous year when it was $966,000.”

The Senate is where most of the monied members reside, with a median net worth of its current members coming to over $2.7 million. Members of the House tended to be somewhat less wealthy, with a median income of $896,004. With the House and Senate totals averaged together, however, the median net worth in Congress comes out to $1,008,767.

On to Britain with union in name only from Sky News:

IDS Wants Two-Year Ban On Migrant Benefits

  • The Work and Pensions Secretary says he has held talks with other EU countries to forge alliances to prevent “benefit tourism”

EU immigrants may have to wait for up to two years to claim benefits in the UK – rather than the current period of three months, Iain Duncan Smith has said.

In an interview with the Sunday Times, the Work and Pensions Secretary said he had been speaking to other member states including Germany, Italy and the Netherlands who were supportive of the idea.

He said Britain should ask migrants to “demonstrate that you are committed to the country, that you are a resident and that you are here for a period of time and you are generally taking work and that you are contributing”.

BBC News follows up:

Nick Clegg backs ‘eminently sensible’ EU benefit changes

It is “sensible” to consider further curbs to the benefits EU migrants can claim, the deputy prime minister says.

It comes after Work and Pensions Secretary Iain Duncan Smith said he was talking to other EU governments about trying to restrict access to welfare.

Nick Clegg told BBC Radio 5 live it was right to insist migrants “jump through hoops” before claiming benefits.

And The Observer delivers a setback:

Brussels slaps down British threats to rewrite immigration rules

  • President of European parliament says UK has ‘no chance of curbing basic principle of free movement’

Brussels has stepped up its fightback against UK attempts to curb EU immigration as leaders of the European parliament declared that rules on freedom of movement were completely non-negotiable, and made clear that attempts to change them would be blocked.

In the latest response to calls from UK politicians to unpick the EU treaties and rewrite one of its founding principles, the European parliament’s president, Martin Schulz, said that while he took UK demands for reform of the EU “very seriously” there was no question of the parliament agreeing to reopen the rule-book on free movement.

The Independent talks divorce:

House of Lords warned not to ‘ignore the public’s wishes’ on EU referendum debate

The House of Lords has been warned that it would be “ignoring” the wishes of ordinary people if it blocks a referendum on Britain’s membership of the EU.

Peers are debating the Conservatives’ bid to lay down in law a public vote on membership.

James Wharton, the Tory MP for Stockton South who steered the Bill through the Commons, said: “It is extremely important that the House of Lords recognise that this Bill, which has been passed through every stage of the democratically-elected House of Commons, needs to pass in order to give the British people a say on this very important issue.

“It would be strange indeed for the unelected House of Lords to block a Bill which is to legislate for a referendum.”

And The London Telegraph renegotiates:

Chancellor to back Britain staying in a ‘reformed EU’

  • George Osborne will say UK has allies in its push for more liberal regulations from Brussels

George Osborne is to say that Britain should remain in a reformed European Union and that the UK has allies in its push for liberalisation of regulations that could hinder growth.

In a major speech on Europe next week, the Chancellor will say that as the economic recovery puts Britain at the top of growth league in the European Union, the reform agenda is gaining momentum.

He will also make it clear that Britain is gaining support as it pushes for changes in the way the EU operates.

Sky News sells out:

Jaguar Land Rover: Record Breaking World Sales

Midlands-based manufacturer JLR sets sales records in 38 countries worldwide as demand rises sharply in the last year.

It is thought sales have been doing particularly well in Germany, as well as the rapidly growing developing economies of India and China.

In the UK Jaguar sales were up 15% and Land Rover sales were up 13%.

Globally Land Rover is proving the firm favourite among customers representing the largest share of sales with 348,383 sold in 2013, an increase of 15%. But demand for the luxury Jaguar has surged over the last 12 months, almost doubling its international sales to 76,668.

The Observer again, with inflation:

Childcare costs soar by 19% in just one year – survey

  • Parenting expert says increase is ‘triple whammy’ and financial burden on families is like a ‘second mortgage’

The cost of childcare in Britain has soared by 19% over the past year, according to research given exclusively to the Observer, which also found that a quarter of unemployed parents want to return to work but cannot afford to have their children looked after.

Findababysitter.com, a childcare search website, said parents were struggling with returning to work because of the availability and cost of childcare, which often amounted to a “second mortgage”.

The Observer again, with business as usual:

Lobbying bill will tarnish Britain, says UN official

  • UN rapporteur on freedom of assembly launches fierce attack on bill, while charities demand further concessions

A top UN official has made an outspoken attack on the government’s controversial lobbying bill, describing it as a “stain” on democracy that will undermine elections in the UK, as leading charities demand fresh concessions on the proposals from coalition ministers.

Before key votes on the bill in the House of Lords this week, Maina Kiai, the UN rapporteur on rights to freedom of peaceful assembly and association, says the legislation, if not amended further, will reduce the ability of people in civil society to express their views before elections, while doing little or nothing to tighten controls on corporate lobbyists.

In an article published on Sunday on this newspaper’s website, Kiai, a Kenyan lawyer appointed by the UN’s human rights council, said: “Although sold as a way to level the electoral playing field, the bill actually does little more than shrink the space for citizens – particularly those engaged in civil society groups – to express their collective will. In doing so, it threatens to tarnish the United Kingdom’s democracy.”

On to Sweden and raw reality from TheLocal.se:

‘Sweden’s mineral wealth is sold too cheaply’

Critics argue that Sweden is selling its vast mineral resources far too cheap, raising the idea that the country should follow neighbouring Norway and establish a wealth fund to invest for future generations.

While concession fees are kept deliberately low in order to attract miners, critics say all nine million Swedes could and should benefit the same way that their Norwegian neighbours all profit from their national oil wealth.

“This is something we own together,” said Jesper Roine, associate professor at the Stockholm School of Economics. Besides, he added, minerals have an intrinsic value even before they are dug out of the earth, and they should be priced accordingly, the way all other raw materials are priced.

Seeking alliance from The Independent:

France’s Marine Le Pen wants her far-right party to join forces with Ukip and destroy ‘European Soviet Union’

The leader of the France’s Front National believes the far-right party and Ukip share a common set of values and should join forces to bring down the “European Soviet Union”.

Marine Le Pen said she expected the “European system… to explode” and suggested Ukip might decide to form a partnership with the Front National and other far-right parties in the future to help make this happen.

However Ukip’s leader Nigel Farage, who insists his party is “strictly non-racist” and “libertarian”, dismissed the idea.

Spain next, and TheLocal.es, blinded by love:

In-love Spanish princess ‘innocent’ of graft: lawyer

Spain’s Princess Cristina loves and trusts her husband “come hell or high water” as he faces a corruption probe and is innocent of wrongdoing herself, her lawyer said Friday.

King Juan Carlos’s youngest daughter, the blonde-haired, 48-year-old Cristina, was summoned this week to appear on March 8th at a court in Palma de Mallorca as a suspect in alleged tax and money-laundering crimes.

Cristina is suspected of being tied to the activities of her husband, Inaki Urdangarin, a 45-year-old former Olympic handball player who has been under investigation since 2011 over the suspected embezzlement of money from public bodies.

El País chats up:

Royals relieved that Cristina will testify in tax fraud case

  • Princess drops appeal plan after being made aware of need to address growing scandal by king’s palace circle

Spain’s royal family is relieved that Princess Cristina will not appeal the preliminary charges against her and will instead testify in court over allegations of tax fraud and money laundering.

Her decision is “very positive,” said the Royal Household in a statement Saturday.

Cristina de Borbón’s lawyer had said on Tuesday that they would appeal the judge’s decision to make her a formal target in the investigation, as had occurred on a previous occasion in April 2013. But on Friday Miquel Roca announced in writing that his client was renouncing this right and would testify voluntarily on March 8.

thinkSPAIN sets limits:

Out-of-work Spaniards abroad see healthcare entitlement capped at 90 days

LONG-TERM dole claimants in Spain will lose their entitlement to free medical care via their European health cards after they have been out of the country for three months in a new government ruling.

This does not apply to students or tourists, but does apply to Spaniards and other EU nationals resident in Spain and entitled to healthcare cover there who leave the country with the intention of this being a longer-term arrangement.

After 90 days, they will be required to have registered as residents in the country they have travelled to and secured their entitlement to healthcare in their destination.

TheLocal.es protests:

Crowds defy Madrid in sensitive Basque demo

Tens of thousands of protesters in Spain’s Basque Country defied Madrid on Saturday by holding a mass demonstration marked by tensions over jailed members of the armed separatist group ETA.

Crowds filled the streets in the northern city of Bilbao in a march for “human rights, understanding and peace”, after a judge banned another demonstration planned to demand concessions for the prisoners.

The treatment of imprisoned ETA convicts is one of the most delicate issues in a standoff between the authorities and western Europe’s last major armed secessionist movement.

Europe Online has numbers:

Poll: Spain’s Socialists more popular than ruling conservatives

Spain’s opposition Socialists have the lead over the ruling conservative party for the first time since its election defeat two years ago, an opinion poll showed Sunday.

The survey published in El Pais newspaper showed 33.5 per cent of voters support the Socialists while 32 per cent were behind Prime Minister Mariano Rajoy’s People’s Party (PP).

Elections are scheduled for next year.

On to Italy and a Bunga Bunga blast from AGI:

Beppe Grillo decries continued presence of Berlusconi

Beppe Grillo, the leader of Italy’s anti-establishment Five Star Movement, decried Silvio Berlusconi’s continued presence on the Italian political scene.

“There’s a guy walking around Italy with the arrogance of someone who has gone unpunished. The Five Star Movement kicked him out of parliament after 20 years of dividing up Italy with the PD (centre-left Democratic Party). But it’s as though he never left. Actually, he’s risen from the ashes as Mr Renzi (leader of the Democratic Party) considers him his main interlocutor for the new electoral law. The dummy from Florence and the author of the pig’s ear of an electoral system (which changed Italy’s majority system into a proportional one) united for a New Italy. Isn’t it just wonderful?” he posted on his blog.

TheLocal.it covers a shakeup shakeup:

Mayor of Italy earthquake town quits over graft

The mayor of the Italian town of L’Aquila, which was partially destroyed in a 2009 earthquake that killed 309 people, stepped down Saturday following a corruption scandal involving members of his team.

“I have no legitimacy left. I am tired. I am angry. I have suffered a full-on media attack. That is why I am resigning,” Massimo Cialente told reporters. “I have understood that I am no longer useful in this town and I am maybe even an obstacle,” he added.

Four people from his administration were placed under house arrest Wednesday for alleged bribery linked to reconstruction contracts following the earthquake in the central Italian town.

Four more have been notified they are under investigation, including deputy mayor Roberto Riga and a local official in charge of restoring damaged monuments.

After the jump, the latest from Greece, Ukrainian protest, wealth and servitude in the Gulf, an Argentine appeal, Pakistani peace talks, Indian uncertainty, Thai troubles, Chinese “reforms,” Japanese numbers, and Fukushimapocalypse Now!. . . Continue reading