The great interest rate rip off part 1

[interestrateripoff]

Saudi restates $70-$80 goal as OPEC holds supply

 

QUITO (Reuters) - Saudi Arabia said on Saturday that it still favoured a $70-$80 range for oil, a restatement of a two-year-old policy that will relieve consumer nations worried that Riyadh might let oil prices get out of control and slow global economic recovery.

Continue Reading

 

 

 

EU leaders to agree on law change for euro stability

 

BRUSSELS (Reuters) - European Union leaders will agree next week to insert two sentences into the EU treaty to pave the way for the creation of the European Stability Mechanism from 2013, draft conclusions of the summit showed.

7:10pm GMT

 

Governments, not ECB, should solve debt crisis - ECB's Stark

 

FRANKFURT (Reuters) - Governments, not the European Central Bank, have to solve the sovereign debt crisis, one of the bank's top policymakers Juergen Stark was quoted as saying on Saturday.

8:02pm GMT

 

Goldman's Rothesay wins UK Paternoster auction

 

CHICAGO (Reuters) - A unit of Goldman Sachs Group Inc has won the auction for UK-based Paternoster , the specialist pensions business, for an undisclosed sum.

5:46pm GMT

 

Germany and France vow tighter policy coordination

 

FREIBURG, Germany (Reuters) - Germany and France pledged on Friday to better align their tax and labour policies to foster convergence in the euro zone, but rejected calls for an increase in the bloc's rescue fund and joint sovereign bonds. | Video

10 Dec 2010

 

Don't bet against euro - German finance minister

 

BERLIN (Reuters) - Europe's single currency is here to stay and those who bet against its survival are making a mistake, German Finance Minister Wolfgang Schaeuble said.

4:14pm GMT

 

France wants broad debate to push G20 goals - Lagarde

 

PARIS (Reuters) - France wants a wide international debate as it takes over the G20 presidency to drive its plans for an overhaul of the global monetary system and economic governance, Economy Minister Christine Lagarde said on Saturday.

G20 12:21pm GMT

 

Madoff trustee claim also targets RBS - ABN AMRO

 

AMSTERDAM (Reuters) - Dutch bank ABN AMRO said on Saturday a $270 million claim filed against it by a trustee seeking to recoup money for victims of Bernard Madoff related to operations now owned by British bank RBS .

2:21pm GMT

 

EADS backs Airbus sales chief in insider probe

 

PARIS (Reuters) - Airbus parent EADS threw its backing behind Airbus sales chief John Leahy and other current or former executives caught up in a long-running insider trading investigation, saying it was sure they would be cleared.

4:57pm GMT

 

Bank Austria vows vigorous defence in Madoff suit

 

VIENNA (Reuters) - UniCredit unit Bank Austria plans to contest "vigorously" a U.S. lawsuit linking it to Bernard Madoff's multibillion dollar financial fraud, the Austrian bank said on Saturday.

[interestrateripoff]

Breaking news

 

• 
  
• EU leaders to agree on law change for euro stability-draft - Reuters
  
• OBAMA TELLS MEXICO'S CALDERON THAT CANCUN CONFERENCE ADVANCES EF - Reuters
  
• EADS backs Airbus sales chief in insider probe - Reuters
  
• Areva board backs Kuwait, France investment - Reuters
  
• Bulgarian parliament approves pension reforms - Reuters
  
• WikiLeaks supporters' group abandons cyber attacks - Reuters
  
• France wants broad debate to push G20 goals-Lagarde - Reuters
  
• Climate deal makes bigger EU CO2 cut more likely-UK - Reuters
  

 

 

 

• Banks to sidestep bonus crackdown by raising salaries
   
  European crackdown on bonus deals looks likely to mean banks will just increase pay instead
   
  
  • Irish bankers 'should pay supertax'
    
  • Nils Pratley: A bonus that beggars belief
    
  • UK and Iceland agree terms on £2.3bn loan
    

  [*] Flybe raises £66m from flotation

   

  The Exeter-based airline once known as British European took off after rebranding

  [*] WikiLeaks cyber-attacks hit online traders

   

  Traders report big drop in sales this week, when attacks on credit card companies started

   

  [*] Booming China tries to rein in lending

   

  Fears Chinese economy may be running out of control grow despite move to curtail bank lending

  [*] Petrol price soars to record high

   

  Petrol now 11.88p more expensive than year ago at 121.76p per litre while price of diesel also rises

  76 comments

  [*] Smartphones change the way we shop

   

  Mobile shopping and m-commerce the buzzwords as high street stores try to keep up with consumers

  18 comments

 

 

• Kipper Williams
   
  Christmas cartoons 2010
   
  Seven Christmas cards from the Guardian's business website, illustrated by cartoonist Kipper Williams
  
  
• Nestlé to close After Eights factory
   
  Unite union urges Nestlé, world's largest confectioner, to redeploy workers
  
• Gatwick set for take-off, says boss
   
  Friday interview: Gatwick chief executive Stewart Wingate is spending £1bn to improve the UK's second biggest airport
  11 comments
  
• North Face ascends the outdoor sector
   
  The popular brand wants to be the 'Nike of outdoors' but without sacrificing its standards
  
• More business news
  
• German troops in symbolic defence of euro
  

[interestrateripoff]

City outrage as Europe stands firm on bankers' cash bonuses

 

 

Bankers were yesterday told there will be no backing down from an EU demand that they should be paid no more than 20 per cent of their bonuses up front in cash, as experts said Europe's pay rules would be the "toughest in the world".

 

 

• HSBC turn to veteran Assaf to replace Gulliver
  
• 'Winter chill' sets in as mortgage lending falls by 16 per cent, CML data reveals
  
• Flybe's shares soar on first day after IPO to raise £60m
  
• Business Diary: Can Tim and Greg take on the City?
  
• China lifts bank reserve ratio
  
• IEA raises oil demand outlook
  
• New finance chief at BAE
  

 

David Prosser: Don't believe the retail industry when it says the high street is booming

 

 

Outlook: So is it going to be a Merry Christmas for Britain's retailers? The high street will be busy today, enabling retailers to say customers are flooding in. You'll see a flurry of claims about record sales, rising footfall and shortages of must-have goods. This is psychological warfare. Get the message out that everyone else is splurging, retailers reason, and reluctant shoppers will feel the need to join them.

 

 

• David Prosser: The time has come for investment trusts
  
• David Prosser: Down to the Treasury to close tax loopholes
  
• David Prosser: BP on track to restore dividend in 2011 but holds breath on negligence call
  
• Sean O'Grady: The truth is that Mervyn King is the leader of the Bank of England Party
  
• David Prosser: Manufacturers recover but they desperately need more help
  

 

Dashed: the last hope for final salary pensions

 

The Government has denied companies a chance to slash their retirement scheme deficits. Simon Read reports

 

 

• The business on...Lord Oakeshott, Liberal Democrat Peer
  
• Kathy Calvin: 'Money is welcome – but it isn't everything'
  
• Office rents soar as new skyscrapers rise in city
  
• Around the world, miners scramble for coal
  
• The business on: Wolfgang Schäuble, Finance Minister, Germany
  

[interestrateripoff]

11 December 2010 Last updated at 15:17

 

Madoff's son found hanged in NY

 

Convicted US fraudster Bernard Madoff's son Mark has committed suicide in his New York apartment, a family lawyer says.

 

• Unravelling the 'Madoff hustle'
  
• Madoff's road to riches
  

 

China inflation at 28-month high

 

China's official inflation rate rose to 5.1% in November, a 28-month high, sparking new warnings of interest rate rises.

 

 

Petrol prices reach record high

 

UK petrol prices have hit a record average level of 121.76p for a litre of unleaded petrol, says Experian Catalist.

 

• Oil price jumps on recovery hopes
  
• Anger at looming fuel price rises
  

 

 

 

• Europe clamps down on banker pay
   
  European regulators confirm tough restrictions on the bonuses that banks can pay staff, raising concern bankers may emigrate.
  
• Insurers 'charge for snow tyres'
   
  Some motorists who fit winter tyres to their car to cope with snowy conditions are being charged higher insurance premiums, it is claimed.
  
• Npower energy prices to rise 5%
   
  Customers of energy company Npower will see their gas and electricity bills rise by 5.1% from 4 January, the company says.
  
• Bill Clinton backs Obama tax deal
  
• Madoff trustee in $20bn damages
  
• Airbus exec 'under investigation'
  
• US trade deficit narrows sharply
  
• Oil demand up on global recovery
  
• Coal-to-gas shift 'to cut costs'
  
• Pfizer: No Nigeria dirty tricks
  
• Ex-boss Norris faces US sentence
  
• Factory gate inflation falls back
  
• Germany and France rally to euro
  
• Snow curbs BAA passenger numbers
  
• Remuneration shuffle
   
  Bankers' bonuses squeezed but salaries rise in EU deal
  

[interestrateripoff]

[/url]

 

 

China's soaring inflation could hit UK shoppers

 

China's inflation surged to a two year high last month despite government control efforts, prompting fears that British consumers will soon face paying more for Chinese made products.

'85pc of urban Chinese can't afford property'

 

 

 

 

Bernard Madoff's son Mark found dead

 

Son of disgraced financier Bernard Madoff found dead in an apparent suicide, on the second anniversary of his father's arrest.

Austrian bank hit with $19.6bn Madoff lawsuit

 

 

 

What will you pay for a university education?

 

So who will be better off under the new scheme – and who will pay more?

Build a war chest soothe the pain

 

 

 

Pension ruling 'catastrophic' for companies

 

Members of bankrupt pension schemes have been handed a near-blanket guarantee by a radical court ruling that pushes them right up the creditor hierarchy.

 

European regulators cap bankers' pay

 

European regulators have proposed capping the cash element of bankers' bonuses as part of a pay code that has been described as "the most stringent in the world".

 

Australia's Ashes slump blamed on economy

 

 

 

 

Ireland could sell banks to Middle Eastern wealth funds

 

 

 

 

BT's job cuts leave it unable to cope with demand

 

 

 

 

QE2 'poses considerable risks to economies'

 

 

 

 

Sterling 'strongest major currency in 2011'

 

 

Market alarm as US fails to control biggest debt in history

 

US Treasuries last week suffered their biggest two-day sell-off since the collapse of Lehman Brothers in September 2008. The borrowing costs of the government of the world’s largest economy have now risen by a quarter over the past four weeks.

'85pc of urban Chinese can't afford property'

 

 

 

 

ONS delays data for second time due to 'potential errors'

 

 

 

 

United front by Merkel, Sarkozy hits euro, push up bonds yields

[interestrateripoff]

No Jobs? Young Graduates Make Their Own

 

By HANNAH SELIGSON 1:22 PM ET

 

 

You just graduated. Unemployment is 9.8 percent. And it costs next to nothing to start a business these days. Why not?

 

• Post a Comment
  

 

 

 

Matthew Cavanaugh for The New York Times

 

Stephanie Kaplan, left, and Windsor Hanger, both 22, helped start an online magazine, which is now turning a profit.

 

 

 

 

 

 

Batting Cleanup at Bank of America

 

By NELSON D. SCHWARTZ 1:20 PM ET

 

Since taking over as C.E.O., Brian Moynihan has stabilized Bank of America, but he is still grappling with his predecessors’ acquisitions, like Countrywide.

[interestrateripoff]

http://www.ucu.org.uk/media/pdf/t/a/ucu_universitiesatrisk_dec10.pdf

 

Reporting highlighting which Universities are at risk with the change to funding.

[interestrateripoff]

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/8196161/Icelandic-banks-broke-the-rules-before-UK-deposits.html

 

Glitnir and Landsbanki were breaching banking regulations by the time 64 British local authorities deposited most of their £800m into the Icelandic lenders, according to two secret reports on the collapse.

 

Documents commissioned by Iceland’s special prosecutor and seen by The Sunday Telegraph suggest Glitnir was operating below the legal limits of its capital adequacy ratios by the end of 2007. A second report for the prosecutor’s office claims Landsbanki also breached the conditions of its banking licence at the end of 2007.

 

At least 12 British councils deposited sums between £5m and £1m in Glitnir after this point and at least 52 British councils put their money in Landsbanki during 2008.

 

.....

 

Both reports are critical of Landsbanki’s and Glitnir’s auditors, the Icelandic branch of PricewaterhouseCoopers (PwC), arguing that it should have spotted mis-statements.

 

Excellent I assume that no UK agency which has oversight on the banks was meant to pick up on these problems then?

 

As long as the accounts kept getting signed off happy days?

[interestrateripoff]

http://www.zerohedge.com/article/deflationists-take-note-bernanke-succeeds-offsetting-shadow-banking-collapse

 

The biggest piece of news in Thursday's Z1 statement was not that consumers continue to deleverage, that corporate cash levels are at $1.9 trillion (of which $1 trillion is financial and half of the rest is held offshore: maybe instead of copying Zero Hedge charts, the WSJ could have actually focused on the story behind the headlines) or that the stock market continues to be the only manipulated delta in household net worth (even as wealth in real terms is dropping). A far more relevant and important data highlight has to do with the only thing that actually matters for the reflation of the monetary bubble: namely the fact that the contraction in the shadow banking system is continuing. Or so was the conventional wisdom. As of September 30, Bernanke has successfully stopped the net decline of monetary aggregates even when including the massive shadow banking system.

As we have long claimed, every action by the Fed, every attempt at reflation, every bond purchase directly, and ES purchase indirectly courtesy of Citadel, have had the sole goal of counteracting the impact of the the collapsing shadow banking liabilities. Compared to shadow liabilities, which topped out at $21 trillion in March of 2008, all other monetary aggregates are irrelevant: this includes both their representation in bank balance sheets, such as traditional banking liabilities and the broadest representation of money stock tracked by the Fed, M2 (since as of 2006 M3 is no longer tracked due to the egregious costs of keeping track of this data). And the biggest, and so far most credible, argument that deflationists have had, is that the shadow banking system, and its reconstructed M3 proxy is plunging far faster than Bernanke is reflating other parallel aggregates. Well, that is now over. As of Q3 2009, the sequential change in shadow and traditional bank liabilities was net positive by $3.8 billion: this is the first time this number has posted an increase since December 2008! This fact should send a wedge of terror into the hearts of all those, both deflationists and inflationsts, who realize the significance of this inflection point: it appears that Bernanke has finally succeeded at offsetting the drop in the shadow banking system.

 

...........

Evidence E: most importantly, the sequential change in the combined liabilites represented by both the shadow and traditional banking system. As the arrow indicates, it is now positive to the tune of $3.8 billion: this is probably the most important fact for monetary policy in the past two years.

Of course, all of this is possible only because the state is now the ultimate backstopper of all risk. And now that the monetary inflection point has been reached, and the negative convexity event has passed, we expect that the debasement of the US currency will now start in earnest.

 

More charts at the link.

[interestrateripoff]

http://www.zerohedge.com/article/guest-post-bond-bust-has-begun

 

The Bond Bust Has Begun

 

 

 

See link for paper.

[interestrateripoff]

http://www.independent.co.uk/news/uk/politics/only-a-quarter-of-all-graduates-will-pay-off-loans-2158168.html

 

Only one in four graduates will pay back the full cost of their tuition fees under the coalition's new system for financing higher education in England.

 

Internal government figures, seen by The Independent on Sunday, reveal that a small minority of students paying fees of up to £9,000 a year are expected ever to pay them off in full. Ministers believe most graduates will spend their whole working lives making monthly payments to cover their loans and interest – without ever being able to settle their debts.

 

The planning assumptions raise questions about the sustainability of the new system, just days after the Deputy Prime Minister, Nick Clegg, survived rebellion among his own Liberal Democrat MPs to get the proposals through the House of Commons.

 

A briefing note from the Department for Business, Innovation and Skills (BIS) has revealed that: 25 per cent of graduates will repay "at least 100 per cent of the original value of their loans in PV [present value] terms"; the "best-case scenario" foresees a maximum of only half of graduates settling their debts; up to 60 per cent will never pay in full.

 

Labour last night claimed the assumptions underpinning the new system raised questions over its sustainability, for graduates and universities alike.

 

The shadow universities minister Gareth Thomas said: "The Government's figures look more and more questionable.

 

"When even they think such a high number of students will not be able to repay their loans in full, it underlines just how unfair and unsustainable it is trebling student fees."

 

The Government has ruled that students must foot the bill for improvements in the higher education sector by allowing universities to raise their cap on tuition fees from £3,290 to £9,000 a year. But ministers ruled out an across-the-board "graduate tax" in favour of student loans, repaid when graduates enter the jobs market.

 

.........

 

But, despite the suggestion that the highest earners would carry most of the burden, an accountant last night warned that the lowest-earning graduates would not be protected, even if their salary remained below the payback threshold. Peter West said the combination of inflation and interest charges meant many graduates, including teachers, would never reduce the amount owed.

 

He said: "The Government tells us that those earning under £21,000 will not have to pay interest on their loans. But they will have to pay inflation in line with the Retail Prices Index, which is currently 3 per cent higher than the base rate of inflation.

"If you ask anyone what paying no interest on a debt means, they would say the amount owed stays the same. The Government is being dishonest about the implications of this system."

 

It appears that we are clearly moving to a lifetime of debt which the we will never ever get out of.

 

If only 25% will ever repay the entire loan who will pick up the losses for the money not paid back? I've not quite understood who foots this bill or is that something for the govt of the time to work out in 30 years time when the losses will start to become an issue? I assume the idea is that the Universities get the £9k up front leaving the debt with another agency, so when this agency doesn't get the original loan back and under the govt plans this clearly will be many people who'll never earn enough to pay any significant amount back who is going to eat the loss?

 

Or has this been clearly thought through and I've missed the explanation.

[interestrateripoff]

http://news.bbc.co.uk/1/hi/education/7912548.stm

 

Up to 70% of students from other European Union countries are failing to repay student loans they took out while at UK universities, the BBC has learnt.

The Student Loans Company says 2,240 students should have begun repayments but 1,580 are not accounted for.

A Spanish student said she had heard nothing five years after graduating.

The government says the SLC is doing what it can to track people down. Take-up of the entitlement is growing fast, with 46,000 now having borrowed £130m.

Students from EU countries have been eligible for low interest loans from the British taxpayer to pay for their tuition fees since 2006.

EU students are entitled to the same allowances as those in the countries in which they study.

[interestrateripoff]

Bolland hand-picks pilot Paris store for M&S’s new European strategy

 

 

Marks & Spencer is in talks to open a store on the Champs-Elysées as part of its latest European strategy put in place by its new chief executive.

 

 

• Labour to beef up industrial policy in run-up to next election
  
• Regulator orders pension review of energy firms
  
• Golden blonde: No business like show business
  
• Burberry soars on rumours of suitors
  
• Business News in Brief: Anglo American to sell Scaw’s South African assets
  
• SuperGroup plans expansion
  
• The City Diary: Loose cash
  

 

Sean O'Grady: Population rise gives India the edge over one-child China

 

Economic View

 

 

• David Prosser: Don't believe the retail industry when it says the high street is booming
  
• David Prosser: The time has come for investment trusts
  
• David Prosser: Down to the Treasury to close tax loopholes
  
• David Prosser: BP on track to restore dividend in 2011 but holds breath on negligence call
  
• Sean O'Grady: The truth is that Mervyn King is the leader of the Bank of England Party
  

 

A new golden age for theatre? 'Oh Yes It Is' says Panto Panter

 

Even in the tough times, people still want to hear a story, says the Ambassador Theatre Group boss

 

 

• Proof that a business based on happiness can change the world
  
• Dashed: the last hope for final salary pensions
  
• The business on...Lord Oakeshott, Liberal Democrat Peer
  
• Kathy Calvin: 'Money is welcome – but it isn't everything'
  
• Office rents soar as new skyscrapers rise in city
  

[interestrateripoff]

Breaking news

 

• 
  
• Simon offers alternative proposal to CSC board - Reuters
  
• EU deal to include investors in default worsened crisis-BIS - Reuters
  
• GLOBAL ECONOMY WEEKAHEAD-Fed vs Obama: Tax deal drives up rates - Reuters
  
• Half of German loans to Spain are to its banks-BIS - Reuters
  
• Austrian banker Kohn was Madoff "victim" - lawyer - Reuters
  
• Germany says not pushing countries into euro zone - Reuters
  
• Hungary pension changes needed to tackle debt -PM - Reuters
  
• ACS says welcomes offer for talks with Hochtief - Reuters
  

 

 

 

• New CBI boss backs higher tax for Britain's top earners
   
  CBI president-in-waiting Roger Carr breaks ranks with support for Labour-initiated 50p tax rate
  197 comments
  
• Battle heats up over Capital's bid for Manchester mall
   
  US firm Simon proposes new finance plan for Trafford centre that would give it major stake in Capital
  
• Santander raises pay to halt defections
   
  Departure of UK chief and two top lieutenants to Lloyds prompted staff to consider their positions, say sources
   
  
  • Banks to sidestep bonus crackdown
    
  • Irish bankers 'should pay supertax'
    
  • Nils Pratley: A bonus that beggars belief
    
  • UK and Iceland agree terms on £2.3bn loan
    

  [*] Britain's high street chains are named by sweatshop probe

   

  Marks & Spencer, Next, Monsoon, Debenhams, Dorothy Perkins and Miss Selfridge accused by anti-poverty campaigners

  5 comments

  [*] Financiers forced out of Belgravia to 'banker belt' in the suburbs

   

  Bonus money spent on property in capital forecast to fall by 17% next year – but will still total £1bn

  4 comments

 

 

• Sita promises perks in return for 'hosting an incinerator'
   
  Sita will offer subidised energy bills and other perks if communities approve planning for waste facilities
  
• Stock markets braced for Chinese interest rate rise
   
  Economic conference confirms a shift from a 'loose' monetary policy stance to a 'prudent' one, which paves the way for a rise in interest rates
   
  
  • Booming China tries to rein in lending
    

  [*] De Le Rue bid reignites takeover debate

   

  Venerable printer De La Rue has rebuffed a French approach. Is it time to repel all corporate invaders?

  14 comments

  • CBI boss promises to make foreign takeovers harder
    

  [*] Petrol price soars to record high

   

  Petrol now 11.88p more expensive than year ago at 121.76p per litre while price of diesel also rises

  82 comments

  [*] More business news

  [*] New York woos Britain's hi-tech firms

  [*] Punch faces anger over £2.6bn debt

  [*] WikiLeaks cyber-attacks hit online traders

[interestrateripoff]

EU leaders to agree on law change for euro stability

 

BRUSSELS (Reuters) - European Union leaders will agree next week to insert two sentences into the EU treaty to pave the way for the creation of the European Stability Mechanism from 2013, draft conclusions of the summit showed.

Continue Reading

 

 

 

Ofgem orders pension review of utilities - report

 

LONDON (Reuters) - Energy regulator Ofgem has ordered a review of pension liabilities of some of the biggest gas and electricity companies, the Independent on Sunday reported.

4:19pm GMT

 

China leaders emphasize fighting inflation

 

BEIJING (Reuters) - China will ratchet up efforts to quell inflation in 2011 while pushing forward economic restructuring to help sustain robust growth, state media said on Sunday after the close of an annual policy-setting conference.

12:28pm GMT

 

EU deal to include investors in default worsened crisis

 

FRANKFURT (Reuters) - Germany and France agreeing to make investors participate in losses in sovereign default was an important factor in the intensification of the euro zone sovereign debt crisis, a Bank for International Settlements report said on Sunday.

8:14pm GMT

 

Austrian banker Kohn was Madoff "victim" - lawyer

 

VIENNA (Reuters) - Austrian banker Sonja Kohn, accused in a U.S. lawsuit of being Bernard Madoff's "criminal soul mate," was instead a victim of the man behind the biggest fraud in financial history, her lawyer in Vienna said.

6:23pm GMT

 

Saudi still favours $70-$80 oil, OPEC holds supply

 

QUITO (Reuters) - Leading OPEC producer Saudi Arabia said on Saturday it still favoured a $70 (44.27 pounds)-$80 price range for oil, a restatement of a two-year-old policy that will be welcomed by consumer nations worried that rising oil prices may get out of control and hamper global economic recovery.

11 Dec 2010

 

German minister says open to EU fiscal union talks

 

BERLIN (Reuters) - Germany is open to a discussion over whether countries that share the euro currency should harmonise their fiscal policy, German Finance Minister Wolfgang Schaeuble said.

2:07pm GMT

 

E.ON to sell UK power distribution network - report

 

LONDON (Reuters) - German utility E.ON has granted a consortium of foreign bidders exclusive rights to make an offer for Britain's second-largest electricity distribution network, the Sunday Times reported.

3:27pm GMT

 

Simon offers alternative proposal to CSC board

 

LONDON/NEW YORK (Reuters) - Simon Property has pitched an alternative plan to help fund Capital Shopping Centres' 1.6-billion-pound UK mall acquisition, which it argues offers better terms while potentially lifting Simon's stake in CSC up to 27 percent.

7:55pm GMT

 

Guy Hands may soon lose control of EMI - report

 

LONDON (Reuters) - Financier Guy Hands may lose control of music company EMI in the next couple of weeks as talks intensify with Citigroup Inc regarding the takeover of the music group, the Sunday Times reported.

[interestrateripoff]

http://uk.reuters.com/article/idUKTRE6BA27920101212

 

European Union leaders will agree next week to insert two sentences into the EU treaty to pave the way for the creation of the European Stability Mechanism from 2013, draft conclusions of the summit showed.

 

The ESM is to open the way for private sector investors to take a loss in case of a sovereign debt restructuring, which will put market pressure on governments to conduct sound fiscal policies and prevent another sovereign debt crisis.

 

The ESM would also provide financial support to euro zone countries which suffer liquidity, but not solvency problems, through a fund that is likely to be bigger than the current 750 billion euros bailout fund the euro zone has at its disposal.

 

But to create the ESM, Germany and France insisted that the EU's highest law, the EU treaty, has to be amended so that its operations are not deemed unconstitutional by German courts.

 

The conclusions, obtained by Reuters, said leaders of the 27-nation bloc would agree to amend the treaty by adding the following sentences to the existing article 136:

"The Member States whose currency is the euro may establish a stability mechanism to safeguard the stability of the euro area as a whole. The granting of financial assistance under the mechanism will be made subject to strict conditionality."

 

The ESM will be based on the agreement reached by euro zone finance ministers on November 28. For a full text of the agreement see: here

 

MEMBERS' POWERS

 

The leaders' conclusions, which are always prepared in advance of a summit and almost never changed, said the amendment did not increase the powers conferred on the European Union by member states.

 

This means that the change would not have to be subject to a referendum in Ireland and also satisfies Britain which insisted the change should not entail any transfer of power to Brussels.

 

Will this be strict conditionality which will be made up as we go along and then simply ignored by the rescued nation?

 

Once more our political elites move to screw the populace and start writing more blank cheques.

[interestrateripoff]

12 December 2010 Last updated at 18:21

 

EU bail-outs to hit bond holders

 

The EU plans to make private lenders cover the losses of any future eurozone government debt crisis, the BBC learns.

 

• In graphics: Eurozone crisis
  
• Lengthening shadow of Irish cuts
  

 

Madoff's son found hanged in NY

 

Convicted US fraudster Bernard Madoff's son Mark has committed suicide in his New York apartment, a family lawyer says.

 

 

China inflation at 28-month high

 

China's official inflation rate rose to 5.1% in November, a 28-month high, sparking new warnings of interest rate rises.

 

• Developing nations vital to world
  
• China's transformation in miniature
  

 

 

 

• Petrol prices reach record high
   
  UK petrol prices have hit a record average level of 121.76p for a litre of unleaded petrol, says Experian Catalist.
  
• 'Dramatic' change to bank bonuses
   
  European regulators confirm tough restrictions on the bonuses that banks can pay staff, raising concern bankers may emigrate.
  
• Insurers 'charge for snow tyres'
   
  Some motorists who fit winter tyres to their car to cope with snowy conditions are being charged higher insurance premiums, it is claimed.
  
• Npower energy prices to rise 5%
  
• Bill Clinton backs Obama tax deal
  
• Madoff trustee in $20bn damages
  
• Airbus exec 'under investigation'
  
• US trade deficit narrows sharply
  
• Oil demand up on global recovery
  
• Coal-to-gas shift 'to cut costs'
  
• Pfizer: No Nigeria dirty tricks
  
• Ex-boss Norris faces US sentence
  
• Factory gate inflation falls back
  
• Germany and France rally to euro
  

[interestrateripoff]

[/url]

 

 

The £10 charge for not spending

 

Anyone with a store card for the likes of House of Fraser, Laura Ashley, Debenhams could be hit by a £10 fee.

 

 

BHP 'tried to stop Chinese deal with Rio Tinto'

 

Miner BHP Billiton lobbied the Australian government intensively, as it tried to wreck a $19.5bn investment by Aluminium Corp of China (Chinalco) in arch rival Rio Tinto, according to a cable released by Wikileaks.

 

Euro will not fail, say Schaeuble and Major

 

Germany's finance minister warns those who bet against the euro that they "will not succeed", as former British PM gives single currency his vote of confidence.

 

Forbes unveils plans to launch a European title

 

Steve Forbes, the billionaire magazine owner and a former Republican presidential candidate, says "there is a recovery coming" with Europeans becoming increasingly interested in business and entrepreneurs.

 

Iceland banks 'broke rules' before UK deposits

 

Glitnir and Landsbanki were breaching banking regulations by the time 64 British local authorities deposited most of their £800m into the Icelandic lenders, according to secret reports.

 

Bernard Madoff's son Mark found dead

 

 

 

 

Gulf investors in £1.5bn 'bidding war' for Iceland

 

 

 

 

AIA steps back from Prudential bid

 

 

 

 

China's soaring inflation could hit UK shoppers

 

 

 

 

Twitter to base new European HQ in London

 

 

 

 

 

 

Coal hot despite tepid UK

 

Commodity's future looks bright – everywhere except Britain.

 

ITV's 'Super Bowl' moment

 

X Factor final set to make a record-breaking £25m from advertising.

 

Paying for university

 

Who will be better off under the new scheme – and who will pay more?

 

The week in numbers

 

From Ford Fiestas to Prince William, the top business stories by numbers.

 

 

 

 

The eurozone is in bad need of an undertaker

 

The EU’s Franco-German "Directoire" and the European Central Bank have between them ruled out all plausible solutions to the eurozone’s debt crisis.

Market alarm as US fails to control biggest debt in history

 

 

 

 

'85pc of urban Chinese can't afford property'

 

 

 

 

ONS delays data for second time due to 'potential errors

[interestrateripoff]

A Secretive Banking Elite Rules Trading in Derivatives

 

By LOUISE STORY

 

 

In theory, clearinghouses exist to safeguard the integrity of the multitrillion-dollar derivatives market. In practice, they also defend big banks’ dominance.

[interestrateripoff]

Yet Another Idiotic "Policy" Crumbles: Drugs

 

It's time to "man up" the byline reads....

With the exception of, perhaps,

Texas governor Rick Perry

, no public official wants to publicly admit an obvious fact: The United States of America

will likely be forced to

invade Mexico

. It’s not a matter of

if

, it’s a matter of

when

. The question then becomes: What to do with Mexico

after we invade it

and wipe out the drug cartels (as much as can be). Does the United States merely return Mexico to a nation state of corrupt politicians, failed economic policies, and lawlessness,

or

do we annex Mexico and turn it into the 51st state?

Uh huh.

The rest of the article chronicles facts. They're facts all right. But nowhere is the obvious question asked:

Why is it that there is a monstrous black market for these substances, thereby creating billion-dollar industries that would otherwise not exist with profit margins in the thousands of percent from one end of the supply chain to the other?

That's easy: We refuse to face the fact that drug prohibition has failed.

We faced it with alcohol. Bereft of common sense our government actually passed a Constitutional Amendment to ban the importation or interstate transport and sale of alcohol. That was "Prohibition", and unlike the current drug war which is entirely unconstitutional, this was "done right."

Well, ok, "done legally."

It created an overnight billion-dollar industry - at a time when a billion dollars really meant something. It provided the money for Tommy Guns, ammunition, and "protection rackets" for the "speakeasy" and its patrons - and more importantly, its suppliers.

Eventually, needing the tax revenue, the government gave up and repealed Prohibition - the same way it enacted it, via the lawful process of Constitutional Amendment.

But no such process was followed with drug prohibition. There we simply had "titans of industry", including the Hearsts who were very concerned about the patenting of a "de-corticating machine" for hemp (marijuana.) See, hemp makes really high-quality paper, and a de-corticating machine was the necessary element to get the pulp out of the stem of the hemp plant - very difficult compared to trees, which are quite a bit larger and easy to extract the pulp of the wood from.

The Hearsts had a vertical monopoly. They owned a majority of not only the big newspaper publishing houses, but also the means of production - the forest lands and paper mills. The development of a machine that would make possible production of paper at a fraction of their overall cost threatened to destroy that empire.

The nascent pharmaceutical industry loved this angle and jumped in as well.

So now we've been at this in one form or another for close to 100 years, and we've utterly failed. The policies trace their roots to 1914 with the Harrison Narcotics Tax Act.

But it was in 1937, when The Marijuana Transfer Tax Act was passed, that things really got out of control. DuPont, manufacturer of (among other things) synthetic fibers, was threatened by hemp as well, and the Secretary of the Treasury, Andrew Mellon, was heavily invested in these synthetics - nylon in particular. (Ed: Gee, where have we seen that sort of conflict of interest recently? The more things change the more they stay the same, no?)

Nixon ramped it up even further, and then George HW Bush (Bush I) got the CIA and military involved in foreign interdiction (there's nothing like forcing our policies on the world via covert, classified operations, right?) Bush I also created the ONDCP (and the "Drug Czar") which Clinton (sorry, all you so-called "progressives") elevated to a cabinet-level position.

As a percentage of the population those incarcerated in America remained more-or-less constant from 1929 until 1980. However, since that time, when George Bush I decided to "escalate" this "war", our incarceration rate has quadrupled.

More than half of all federal prisoners are there for drug offenses, and about a quarter of state prisons. The majority of the rest in state prisons are there for economic and violent crimes related to the acquisition of drugs which could be panhandled for were they not illegal. The victims of these property and violent crimes number in the millions and virtually each and every one of those victims were in fact victimized as a direct and proximate consequence of the war on drugs - not the drug use or abuse itself.

Some "success" you have had there eh Mr. Government Man?

In the mean time we've destabilized multiple nations with our nonsense policies. Mexico is not the first - but it's the closest. We've had multiple "endeavors" with El Salvador, Colombia, Nicaragua and of course Afghanistan, where we are today. Much of Afghanistan's insurgency and the Taliban are funded by - surprise-surprise - opium poppy cultivation.

Cut off the drug money, cut off the insurgencies and violence at the knees - not by bombing, spraying or shooting, but by destruction of the profit margin in the business.

Economics is a short suit among our policy makers. Or is it?

This much is certain - it was only a matter of time before the problem got close enough to us that we would be forced to do something here, lest our people get shot and ultimately invaded.

That day has now arrived with the Mexican drug gangs pressing northward just as they press throughout the Mexican nation. We cannot solve this problem with gunships and war, just as nobody has managed to cut it off in Columbia or Afghanistan.

It can only be stopped via the destruction of operating profit margins in the narcotics business, and that can only happen via legalization and taxation, which in turn causes an immediate price collapse at the production and wholesale level and effective de-funds the thugs and gangs.

Wake up America.

 

I have to agree the only way to tackle the drug problem head on is to legalise and tax it. Christ knows we could do with the tax revenues at the minute.

[interestrateripoff]

http://www.bloomberg.com/news/2010-12-12/recession-lasting-until-2018-worth-exploring-commentary-by-william-pesek.html

 

In an era where forecasts by permabears have gotten ample attention and vindication, few are as disturbing as this: a world recession until 2018.

It comes from Eisuke Sakakibara, Japan’s former top currency official. He is known as “Mr. Yen” for his ability to move markets. Because Tokyo’s revolving-door politics often sends a new face to each Group of 20 meeting, he is one of the few Japanese constants in market circles. Traders may not know the latest finance minister’s name, but they know Sakakibara.

Japan is the master of muddling along, decade after decade, with little growth to show for it. And Sakakibara was a key player when Japan faced everything from the Asian crisis to Russia’s default to the onset of deflation to a banking collapse that saw the demise of Yamaichi Securities Co.

So, when an economist with Sakakibara’s background says “the world is set for a long-term structural slump reminiscent of the 1870s” when average global annual growth was about 1 percent, I can’t help but listen. The reason for the slowdown? Governments are putting fiscal austerity ahead of restoring stable growth.

Yes, there’s an eye-rolling quality to a former Finance Ministry mandarin giving economic advice. After all, officials there did Japan’s 126 million people a disservice by punting reform far down the road. They just borrowed and borrowed, leaving Japan with the largest public debt among industrialized nations and no exit strategy in sight.

Global Recession

Yet recent data in the U.S. and Japan and financial turbulence in Europe suggest a fresh global recession is a distinct possibility in 2011. If that happens, what levers are realistically available to revive demand? Interest rates are already at, or close to, zero. That leaves increased government spending as the only real way to stabilize things.

The trouble is, there’s little support for opening the fiscal floodgates in a meaningful way.

One reason is that there’s already loads of public debt out there. As of June, Japan’s $5 trillion economy had 904 trillion yen ($10.8 trillion) in debt outstanding. Too much debt is wreaking havoc in Europe, where Ireland was the latest domino to fall.

 

Continues at the link.

 

It would appear that our dear leaders may be being a bit optimistic about the state of global finances. This crisis is far from over.

[interestrateripoff]

Breaking news

 

• 
  
• Pepsi close to sweetener breakthrough-CEO - Reuters
  
• FTC requires Polypore to undo acquisition - Reuters
  
• Euro zone bonds idea won't go away - Reuters
  
• Allied Irish won't pay bonuses after finmin threat - Reuters
  
• Euro zone bonds idea won't go away - Reuters
  
• Sanofi extends $18.5 bln Genzyme offer to Jan. 21 - Reuters
  
• US STOCKS-Wall St trades higher after China move on inflation - Reuters
  
• Carlyle CFO quits, heads for Legg Mason - Reuters
  

 

 

 

• Allied Irish Banks bonuses blocked
   
  Irish finance minister Brian Lenihan says further bailout dependent on AIB not paying €40m bonuses to 2,400 staff
   
  
• Paul Myners calls for RBS and Lloyds to be broken up
   
  The former City minister who played a central role in the £500bn bailout says that one or both of Britain's taxpayer-backed banks should be broken up
  34 comments
  
  • Comment: Wheeling and dealing in the UK's blood
    
  • Andrew Clark: We need transparency in banking
    
  • Is Paul Myners right?
    

  [*] Banks 'to blame for lack of lending'

   

  Banks have blamed lack of demand for their poor lending figures but a Bank of England report suggests the cause is the banks' own squeeze on credit

  24 comments

  [*] Madoff: son 'upset' as children sued

   

  Family lawyers say that two years of 'false accusations and innuendo' finally took their toll, resulting in son's suicide

  [*] Bid target De La Rue appoints new chief executive

   

  Bank note printer makes Chloride head Tim Cobbold new boss

 

 

• Kipper Williams
   
  Christmas cards 2010
   
  Seven Christmas cards from the Guardian's business website, illustrated by cartoonist Kipper Williams
  
  
• Business quiz 2010: part one, the people
   
  In the first of our selection of festive brain-teasers, can you remember who's been in the news this year, and why?
  
• Claridges hotel: financing talks 'stalled'
   
  Lisa O'Carroll's Business Blog: Efforts to refinance the Maybourne hotel group, which includes four five-star hotels in London, have reportedly stalled
  1 comment
  
• EasyDate agrees to change name after Sir Stelios plays hard ball
   
  EasyDate decides swift rebranding as Cupid is easier and cheaper than fighting claims it had infringed easyGroup's trademark
  3 comments
  
• More business news
  
• Bid target De La Rue appoints new chief executive
  
• Santander raises pay to halt defections
   
  
  • Nils Pratley: A bonus that beggars belief
    

 

• Government cuts council budgets by 4.4%
   
  Poorest areas face deepest cuts but £85m relief fund will ease pain, says Eric Pickles
   
  
  • School budgets rise is 'damp squib'
    
  • Greg Clark: Localism bill ensures entrepreneurship
    

[interestrateripoff]

US tycoon offers to fund Capital's Trafford deal

 

 

The US property tycoon stalking Capital Shopping Centres (CSC) yesterday offered to pay for the group's bitterly contested purchase of the Trafford Centre from rival mogul John Whittaker.

 

 

• Business calls to delay changes to retirement age
  
• Lack of credit damaging recovery, Bank warns
  
• CBI calls for delay to end of enforced retirement
  
• Former Warner boss backs new music firm
  
• Fringe nations face huge cuts to living standards
  
• Sports Direct to pay huge staff bonuses
  
• Business Diary: A chill wind blows through RBS
  

 

Sean O'Grady: The good news and the bad news after Britain's very old-fashioned slump

 

It doesn't take much imagination to see how higher rates would now be crucifying mortgage holders if we were suffering from a Greek-style crisis

 

 

• Sean O'Grady: Population rise gives India the edge over one-child China
  
• David Prosser: Don't believe the retail industry when it says the high street is booming
  
• David Prosser: The time has come for investment trusts
  
• David Prosser: Down to the Treasury to close tax loopholes
  
• David Prosser: BP on track to restore dividend in 2011 but holds breath on negligence call
  

 

A new golden age for theatre? 'Oh Yes It Is' says Panto Panter

 

Even in the tough times, people still want to hear a story, says the Ambassador Theatre Group boss

 

 

• Proof that a business based on happiness can change the world
  
• Dashed: the last hope for final salary pensions
  
• The business on...Lord Oakeshott, Liberal Democrat Peer
  
• Kathy Calvin: 'Money is welcome – but it isn't everything'
  
• Office rents soar as new skyscrapers rise in city
  

[interestrateripoff]

EU's Barnier and FSA's Sants back new bonus curbs

 

LONDON (Reuters) - Two of the European Union's top financial services chiefs swung behind tough new bank bonus curbs on Monday, saying the rules would not trigger a flight of talent to Asia or damage London as a financial centre.

Continue Reading

 

 

 

FTSE hits 5-week closing high

 

LONDON (Reuters) - Strong miners hauled Britain's top share index to a five-week closing high on Monday, buoyed by firmer metals prices on strong economic data from China, while sector consolidation moves gave oil services firms a fillip.

5:48pm GMT

 

ECB mulls capital increase for euro crisis - sources

 

FRANKFURT (Reuters) - The European Central Bank is considering requesting an increase in its capital to help cope with the rising costs of fighting the euro zone debt crisis, euro zone central bank sources told Reuters.

7:10pm GMT

 

Ex-City minister calls for breakup of RBS and Lloyds

 

LONDON (Reuters) - Royal Bank of Scotland and Lloyds Banking Group are "monolithic institutions" that dampen competition and should be split up, the former financial services minister in the last government said on Monday.

6:42am GMT

 

Investec aims to lend over $1 billion to entrepreneurs

 

LONDON (Reuters) - A unit of South African bank Investec said on Monday it was ready to lend more than 1 billion pounds to British entrepreneurs, in response to a lack of credit for small UK companies.

UK 3:13pm GMT

 

Slower growth may warrant more QE - Bank's Bean

 

LONDON (Reuters) - The Bank of England may need to inject more money into the economy if growth shows clear signs of slowing or if the euro zone crisis has a big impact, Bank Deputy Governor Charles Bean said on Monday.

4:26pm GMT

 

CSC rejects Simon Property's offer as "impracticable"

 

LONDON/NEW YORK (Reuters) - Capital Shopping Centres has slammed as "incapable of implementation and completely impracticable" an alternative funding offer from its shareholder and would-be bidder Simon Property Group Inc , who quickly responded, urging CSC to postpone a vote on its planned acquisition of Trafford Centre mall.

6:32am GMT

 

GE to buy UK oil pipemaker Wellstream for $1.3 billion

 

LONDON (Reuters) - General Electric Co reached a deal to buy Wellstream Holdings Plc by raising its bid for the British oil drilling pipemaker by 6 percent to 800 million pounds.

2:31pm GMT

 

Diageo looks to double liquor sales in Middle East

 

DUBAI (Reuters) - British drinks group Diageo wants to double its liquor sales in the Middle East and North Africa region over the next five years, as part of a focus on new emerging markets.

3:00pm GMT

 

Sanofi extends $18.5 billion Genzyme offer to January 21

 

PARIS (Reuters) - Sanofi-Aventis has extended its snubbed $18.5 billion (11.8 billion pound) cash bid for U.S. biotech group Genzyme by six weeks, buying the French drugmaker time to persuade its reluctant target to talk.

[interestrateripoff]

13 December 2010 Last updated at 19:38

 

Bad weather postal staff taken on

 

Royal Mail commits an extra £20m to cope with deliveries during the severe weather, as some retailers suspend deliveries to Scotland.

 

• Stores suspending online orders
  

 

Call for retirement change delay

 

Business leaders urge the government to delay planned changes to the retirement age for a year, saying firms face 'huge uncertainty'.

 

• Q&A: Retirement rules and you
  

 

 

Portugal asks China to buy bonds

 

Portugal's finance minister is in Beijing to try to persuade Chinese authorities to buy Portuguese government bonds.

 

• Q&A: Why do bonds matter?
  

 

 

 

• UK households 'still stretched'
   
  UK households are still financially stretched, with difficulty finding credit discouraging spending, a Bank of England survey suggests.
  
• Microsoft Allen's case dismissed
   
  Microsoft co-founder Paul Allen has had his lawsuit against the world's biggest technology and online retail firms thrown out.
  
• Markets rise on China rate hold
   
  World stock markets rise after China kept interest rates on hold over the weekend despite inflation reaching a 28-month high.
  
• De La Rue gets new chief executive
  
• Betfred among runners in Tote bid
  
• Olympic tax concessions confirmed
  
• Weir pays out in sanctions breach
  
• Airbus raises 20-year forecast
  
• WTO backs US Chinese tyre tariff
  
• Retailers still wary about sales
  
• Eurozone set for 'muted' recovery
  
• General Electric buys Wellstream
  
• Stores suspending online orders
  
• Scots 'avoid double-dip downturn'
  

 

Councils facing 9.9% funding cut

 

Councils in England are to face cuts next year of almost 10% next year in their core central funding, the government announces.

 

• Nick Robinson: Who gets blamed?
  
• Q&A: Council funding grants cut
  
• Locals 'to take over buildings'
  
• Mark Easton: Parish power