Christine Lagarde appointed IMF chief
Elizabeth Bonner
29 June 2011
France's Finance Minister Christine Lagarde has been named chief of the International Monetary Fund, making her the first woman to hold the position since the organisation was created in 1944.
Lagarde, 55, ran against Mexico's Central Bank Governor Agustin Carstens for the job. While the IMF issued a statement expressing that both candidates were qualified, Lagarde received an edge on the competition with backing from Europe, China, India and Brazil.
Although Lagarde is the first woman to take the position, she fits the its traditional European mould. Historical trends show that Europeans have generally led the IMF while Americans have dominated the top positions at the World Bank.
Read more at New Statesman.
Lagarde, 55, ran against Mexico's Central Bank Governor Agustin Carstens for the job. While the IMF issued a statement expressing that both candidates were qualified, Lagarde received an edge on the competition with backing from Europe, China, India and Brazil.
Although Lagarde is the first woman to take the position, she fits the its traditional European mould. Historical trends show that Europeans have generally led the IMF while Americans have dominated the top positions at the World Bank.
Read more at New Statesman.
Greek government survives confidence vote
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Commercial lending to Greece may result in default
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Eurozone to bailout Greece with conditional aid package
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Greek crisis hits financial markets
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Ratko Mladic's arrest ends "a very hard chapter in Serbian history"
Elizabeth Bonner
26 May 2011
Ratko Mladic, wanted for genocide during the Bosnian war in the 1990s, has been arrested in Serbia.
After receiving an anonymous tip, the Serbian police discovered a man with physical features resembling those of Mladic. The man went by Milorad Komadic, but after a DNA analysis he was officially identified as Mladic.
Belgrade's Blic proved his alias to be poorly constructed after realising that if "Milo" is subtracted from the beginning, "Ratko Madic" is all that remains.
Read more at New Statesman.
After receiving an anonymous tip, the Serbian police discovered a man with physical features resembling those of Mladic. The man went by Milorad Komadic, but after a DNA analysis he was officially identified as Mladic.
Belgrade's Blic proved his alias to be poorly constructed after realising that if "Milo" is subtracted from the beginning, "Ratko Madic" is all that remains.
Read more at New Statesman.
Nokia’s partnership with Microsoft will not result in a takeover of the phone company
Elizabeth Bonner
2 June 2011
Nokia's Chief Executive Stephen Elop denies rumours of a Microsoft buyout, claiming there has never been talk of the matter between the two companies.
"There's absolutely no discussion. The rumours are baseless. It is as clear as that," said Elop at the D9 conference near Los Angeles.
The company admitted that phone sales will be much less than the previous projection for 2011, which fell between €6.1bn to €6.6bn. Nokia says it is no longer "appropriate to provide annual targets" for the year.
Read more at New Statesman.
"There's absolutely no discussion. The rumours are baseless. It is as clear as that," said Elop at the D9 conference near Los Angeles.
The company admitted that phone sales will be much less than the previous projection for 2011, which fell between €6.1bn to €6.6bn. Nokia says it is no longer "appropriate to provide annual targets" for the year.
Read more at New Statesman.
US Federal Reserve chairman’s economic assessment causes stock market drops
Elizabeth Bonner
8 June 2011
Stock markets have dropped after a speech by the US Federal Reserve chairman, Ben Bernanke, raised fears over the global economic recovery.
US markets closed last night with the Dow Jones Industrial Average falling 0.2 per cent at 12,070.81. The MSCI index of Asia-Pacific stocks fell 0.7 per cent overnight, and in early trading the FTSE 100 decreased by 38 points at 5826.
London and other European cities' stocks traded lower today as well.
Read more at the New Statesman.
US markets closed last night with the Dow Jones Industrial Average falling 0.2 per cent at 12,070.81. The MSCI index of Asia-Pacific stocks fell 0.7 per cent overnight, and in early trading the FTSE 100 decreased by 38 points at 5826.
London and other European cities' stocks traded lower today as well.
Read more at the New Statesman.
Teaching unions and PCS take strike action
Elizabeth Bonner
30 June 2011
Hundreds of thousands of public sector workers have gone on strike across the UK over planned pension changes.
Picket lines have been set up as teaching unions and some of the Public and Commercial Services (PCS) union gather to protest pension changes.
The unions maintain that new government plans will require more work and contributions at reduced pensions. The government says the plans are "fair to taxpayers", and are continuing negotiations with other unions.
Read more at New Statesman.
Picket lines have been set up as teaching unions and some of the Public and Commercial Services (PCS) union gather to protest pension changes.
The unions maintain that new government plans will require more work and contributions at reduced pensions. The government says the plans are "fair to taxpayers", and are continuing negotiations with other unions.
Read more at New Statesman.
ONS reports 0.5 per cent UK economic growth for first quarter
Elizabeth Bonner
28 June 2011
In its third projection, the Office for National Statistics reported that the UK economy expanded by 0.5 per cent in the first quarter of 2011.
The growth was offset by a 0.6 per cent fall in consumer spending during the same time period. This is the greatest decrease since the second quarter of 2009.
In this third estimate, construction output was revised upwards while manufacturing was revised downward.
Read more at New Statesman.
The growth was offset by a 0.6 per cent fall in consumer spending during the same time period. This is the greatest decrease since the second quarter of 2009.
In this third estimate, construction output was revised upwards while manufacturing was revised downward.
Read more at New Statesman.
Bin Laden's death will have little bearing on 2012
Elizabeth Bonner
28 June 2011
Back in May, with the 2012 election still over a year away, many were ready to cancel it and hand Obama another four years. People believed the assassination of Osama bin Laden sealed his already likely victory. There was one big problem with this conclusion: when election time rolls around and people review a politician's time in office, the negatives stand out while the positives seems to disappear.
Look at George H.W. Bush's short and sweet term.
In March of 1991, following the successful Gulf War, Bush Sr.'s approval rating reached an all time high of 87 per cent and remained relatively high for the rest of the year, according to a Roper Center Public Opinion Archive. Many of the most qualified Democratic nominees felt their efforts would be wasted against the popular president and opted out of the race, as Nate Silver pointed out in a New York Times blog. By the 1992 election, however, recession had crept in and Bush Sr.'s approval rating had fallen to 30 per cent. Bill Clinton won decisively.
Read more at New Statesman.
Look at George H.W. Bush's short and sweet term.
In March of 1991, following the successful Gulf War, Bush Sr.'s approval rating reached an all time high of 87 per cent and remained relatively high for the rest of the year, according to a Roper Center Public Opinion Archive. Many of the most qualified Democratic nominees felt their efforts would be wasted against the popular president and opted out of the race, as Nate Silver pointed out in a New York Times blog. By the 1992 election, however, recession had crept in and Bush Sr.'s approval rating had fallen to 30 per cent. Bill Clinton won decisively.
Read more at New Statesman.
Nick Clegg pushes for public shares in bailed-out banks
Elizabeth Bonner
23 June 2011
Proposals to give the public shares in part-nationalised banks RBS and Lloyds have been backed by Nick Clegg.
If implemented, 45 million people on the electorate roll would receive free shares in the Royal Bank of Scotland and Lloyds Banking Group.
The Deputy Prime Minister feels that British citizens should reap some of the rewards that their money that was used to keep the banking system running has yielded.
Read more at New Statesman.
If implemented, 45 million people on the electorate roll would receive free shares in the Royal Bank of Scotland and Lloyds Banking Group.
The Deputy Prime Minister feels that British citizens should reap some of the rewards that their money that was used to keep the banking system running has yielded.
Read more at New Statesman.
Union strike threats grow closer and more probable
Elizabeth Bonner
15 June 2011
The Public and Commercial Services (PCS) union predicts that the majority of its members will vote "yes" to a walkout that will likely take place on 30 June.
On Tuesday the National Union of Teachers and the Association of Teachers and Lecturers announced strikes to take place on the same day. These walkouts will affect millions of students at thousands of schools in England and Wales.
If the PCS strike threats are put into action, 300,000 courts services, border, customs, and immigration officers, air traffic controllers, police support staff and other civil servants will join the teachers, creating the biggest eruption of public sector unrest in years.
Read more at New Statesman.
On Tuesday the National Union of Teachers and the Association of Teachers and Lecturers announced strikes to take place on the same day. These walkouts will affect millions of students at thousands of schools in England and Wales.
If the PCS strike threats are put into action, 300,000 courts services, border, customs, and immigration officers, air traffic controllers, police support staff and other civil servants will join the teachers, creating the biggest eruption of public sector unrest in years.
Read more at New Statesman.
Obamacare, Romneycare and the race for President
Elizabeth Bonner
14 June 2011
There will be one glaring issue in the upcoming 2012 presidential election: healthcare reform. According to the latest Real Clear Politics poll - and almost every other poll out there - Mitt Romney will be the one to take on Obama come November 2012, and there couldn't be a more fitting match for such a prevalent issue.
In 2006 Romney achieved the passage of his bill for universal health coverage in Massachusetts while serving as governor. His plan - commonly referred to as Romneycare - included subsidies, an exchange, and a mandate, in its most basic form. Subsidies would be given to the poor and uninsured to enable them to become insured; an exchange would be created to help individuals buy insurance apart from companies and groups; and an individual mandate that everyone buy insurance as a part of their personal responsibility as a citizen of the state was instated.
"It's a Republican way of reforming the market," Romney said after signing his healthcare bill on 12 April 2006. "Because, let me tell you, having 30 million people in this country without health insurance and having those people show up when they get sick, and expect someone else to pay, that's a Democratic approach. That's the wrong way. The Republican approach is to say, 'You know what? Everybody should have insurance. They should pay what they can afford to pay. If they need help, we will be there to help them, but no more free rides.'"
Read more at New Statesman.
In 2006 Romney achieved the passage of his bill for universal health coverage in Massachusetts while serving as governor. His plan - commonly referred to as Romneycare - included subsidies, an exchange, and a mandate, in its most basic form. Subsidies would be given to the poor and uninsured to enable them to become insured; an exchange would be created to help individuals buy insurance apart from companies and groups; and an individual mandate that everyone buy insurance as a part of their personal responsibility as a citizen of the state was instated.
"It's a Republican way of reforming the market," Romney said after signing his healthcare bill on 12 April 2006. "Because, let me tell you, having 30 million people in this country without health insurance and having those people show up when they get sick, and expect someone else to pay, that's a Democratic approach. That's the wrong way. The Republican approach is to say, 'You know what? Everybody should have insurance. They should pay what they can afford to pay. If they need help, we will be there to help them, but no more free rides.'"
Read more at New Statesman.
UK CPI inflation rate still at 4.5 per cent for May
Elizabeth Bonner
14 June 2011
The UK Consumer Price Index (CPI) rate of inflation remains at 4.5 per cent for May. The Retail Price Index (RPI) inflation measure holds steady at 5.2 per cent, according to the Office for National Statistics (ONS).
In the past month, fuel and food prices have increased by 1.3 per cent. In the past year, alcohol and tobacco prices have risen by a record 9.8 per cent, and fuel prices have increased by 13.7 per cent. While air transport costs decreased following a spike due to Easter travel rates, they did not fall to the expected levels. Based on these figures the inflation rate did not come as a surprise.
"Not only did transport inflation -- airfares in particular -- not fall all the way back after last month's Easter-related jump, but food price inflation also rose a bit more sharply than we had expected," said Jonathan Loynes of Capital Economics."Further rises in the latter, along with recently announced further energy price hikes, are likely to take the headline inflation rate above 5 per cent perhaps, and perhaps even above 5.5 per cent."
Read more at New Statesman.
In the past month, fuel and food prices have increased by 1.3 per cent. In the past year, alcohol and tobacco prices have risen by a record 9.8 per cent, and fuel prices have increased by 13.7 per cent. While air transport costs decreased following a spike due to Easter travel rates, they did not fall to the expected levels. Based on these figures the inflation rate did not come as a surprise.
"Not only did transport inflation -- airfares in particular -- not fall all the way back after last month's Easter-related jump, but food price inflation also rose a bit more sharply than we had expected," said Jonathan Loynes of Capital Economics."Further rises in the latter, along with recently announced further energy price hikes, are likely to take the headline inflation rate above 5 per cent perhaps, and perhaps even above 5.5 per cent."
Read more at New Statesman.
Woman released on bail after arrest on suspicion of phone-hacking
Elizabeth Bonner
28 June 2011
Press Association royal reporter Laura Elston was arrested at a central London police station on Monday around 3 pm on suspicion of illegally accessing voicemail messages.
The 34-year-old journalist has now been released on bail.
Scotland Yard said Elston was questioned about intercepting communications in violation of section 1 of the Regulation of Investigatory Powers Act 2000.
Read more at New Statesman.
The 34-year-old journalist has now been released on bail.
Scotland Yard said Elston was questioned about intercepting communications in violation of section 1 of the Regulation of Investigatory Powers Act 2000.
Read more at New Statesman.
Lloyds Banking Group to cut 14 per cent of workforce
Elizabeth Bonner
30 June 2011
Lloyds Banking Group has announced a cut of 14 per cent of its work force, as part of a new company strategy seeking to create an annual savings of £1.5bn by 2014.
Since merging with HBOS in 2009, Lloyds has already reported 27,500 job cuts.
The bank doesn't plan to close any UK branches, instead focusing the cuts on middle management and back office functions.
Read more at New Statesman.
Since merging with HBOS in 2009, Lloyds has already reported 27,500 job cuts.
The bank doesn't plan to close any UK branches, instead focusing the cuts on middle management and back office functions.
Read more at New Statesman.
Barclays to begin compensation for PPI claims
Elizabeth Bonner
13 June 2011
Barclays has pledged to pay out compensation to everyone to whom it sold payment protection insurance (PPI) and who made a complaint before 20 April.
The bank says it will reimburse customers the total value of all premiums with an added 8 per cent interest. It says it will be the first to dole out PPI compensation on a "no-quibble" basis. The bank believes these efforts will impact tens of thousands of customers, especially those put on hold during the period of judicial review.
"Barclays made a commitment to process all on-hold PPI complaints as soon as practicable. We have said before that when we get things wrong, we apologise, and work hard and work fast to put them right as quickly as possible," Barclays released in a statement.
Read more at New Statesman.
The bank says it will reimburse customers the total value of all premiums with an added 8 per cent interest. It says it will be the first to dole out PPI compensation on a "no-quibble" basis. The bank believes these efforts will impact tens of thousands of customers, especially those put on hold during the period of judicial review.
"Barclays made a commitment to process all on-hold PPI complaints as soon as practicable. We have said before that when we get things wrong, we apologise, and work hard and work fast to put them right as quickly as possible," Barclays released in a statement.
Read more at New Statesman.
Thorntons announces closure of 180 shops
Elizabeth Bonner
28 June 2011
Thorntons is preparing for the closure of 180 of its chocolate shops, after warning in May that a minimum of 120 would soon shut. Company shares were down 5 per cent in London trading.
The stores closing are among Thorntons shops that are directly owned by the company.
It hopes to replace the shops closing with franchised stores "in the majority of locations". Of Thornton's 364 stores, 227 are run by franchisees.
Read more at New Statesman.
The stores closing are among Thorntons shops that are directly owned by the company.
It hopes to replace the shops closing with franchised stores "in the majority of locations". Of Thornton's 364 stores, 227 are run by franchisees.
Read more at New Statesman.
The women of the 2012 US presidential election
Elizabeth Bonner
7 June 2011
Sarah Palin, former Governor of Alaska and 2008 Republican nominee for Vice president, is a Tea Party conservative, Evangelical Christian, mother to five children and possible nominee for the Republican 2012 presidential candidate. Michelle Bachmann, US representative from Minnesota, is also a Tea Party conservative, Evangelical Christian, mother to five children and possible nominee for the Republican 2012 presidential candidate. Each was the first woman to hold office in her state, and neither is afraid to push for other breakthroughs in the political world, no matter how controversial.
Sarah Palin was thrust into the spotlight following her VP nomination in 2008 and has since been one of the media's favourite topics, with a 95 per cent recognisability, according to the latest Gallup poll on the 2012 election. Michelle Bachmann doesn't have the same name recognition, with only 60 per cent in the same poll - but perhaps this isn't necessarily a bad thing given the type of coverage Palin usually receives.
Gallup puts Palin's ballot support at 15, while Bachmann's is only at 5. However, the positive intensity scores, which reflect favourable public opinion, are at 14 for Palin and 21 for Bachmann.
Read more at New Statesman.
Sarah Palin was thrust into the spotlight following her VP nomination in 2008 and has since been one of the media's favourite topics, with a 95 per cent recognisability, according to the latest Gallup poll on the 2012 election. Michelle Bachmann doesn't have the same name recognition, with only 60 per cent in the same poll - but perhaps this isn't necessarily a bad thing given the type of coverage Palin usually receives.
Gallup puts Palin's ballot support at 15, while Bachmann's is only at 5. However, the positive intensity scores, which reflect favourable public opinion, are at 14 for Palin and 21 for Bachmann.
Read more at New Statesman.
May sales values fall, revealing tough condition of market
Elizabeth Bonner
7 June 2011
The British Retail Consortium reported a decrease in sales values for May by 2.1 per cent compared to May of last year.
Although March and April brought an increase in sales, the rise was due to a late Easter, an extra bank holiday for the Royal Wedding, and favourable weather.
"After two previous months distorted by the later Easter and extra bank holiday, this is a more realistic reflection of how tough conditions on the High Street really are," BRC Director General Stephen Robertson said. "Customers' fundamental reluctance to spend is now clear to see."
Read more at New Statesman.
Although March and April brought an increase in sales, the rise was due to a late Easter, an extra bank holiday for the Royal Wedding, and favourable weather.
"After two previous months distorted by the later Easter and extra bank holiday, this is a more realistic reflection of how tough conditions on the High Street really are," BRC Director General Stephen Robertson said. "Customers' fundamental reluctance to spend is now clear to see."
Read more at New Statesman.
Bank of England reports for April reveal a new low in mortgage lending
Elizabeth Bonner
1 June 2011
The number of mortgage approvals for April is at its lowest since the Bank of England's records began in 1992.
The 45,166 approvals signal a 4 per cent drop from the total in March and a 9 per cent decrease compared to April 2010.
Brian Murphy, of the Mortgage Advice Bureau, said April was affected by a number of external factors.
Read more at New Statesman.
The 45,166 approvals signal a 4 per cent drop from the total in March and a 9 per cent decrease compared to April 2010.
Brian Murphy, of the Mortgage Advice Bureau, said April was affected by a number of external factors.
Read more at New Statesman.
Cheryl Cole will not return to X Factor
Elizabeth Bonner
31 May 2011
The new line up of judges for the X Factor has officially been released with the obvious absence of Cheryl Cole's name. The judges will instead include Gary Barlow of the pop group Take That, Irish music manager Louis Walsh, American singer Kelly Rowland, and Tulisa Contostavlos of the hip-hop trio N-Dubz.
On 5 May, Cole signed on as a judge for the US version of the X Factor, but was fired after only three weeks of filming. Since her termination, many wondered whether or not she would return to the UK's X Factor, and this announcement confirms the latter.
The official reason why Cole, 27, was taken off the show has not been released, but speculations have begun to circle. Some believe producers feared Cole's Geordie accent would not be understood by US viewers. Others say Cole was involved in a fight with one of the show's other judges, Paula Abdul.
Read more at New Statesman.
On 5 May, Cole signed on as a judge for the US version of the X Factor, but was fired after only three weeks of filming. Since her termination, many wondered whether or not she would return to the UK's X Factor, and this announcement confirms the latter.
The official reason why Cole, 27, was taken off the show has not been released, but speculations have begun to circle. Some believe producers feared Cole's Geordie accent would not be understood by US viewers. Others say Cole was involved in a fight with one of the show's other judges, Paula Abdul.
Read more at New Statesman.
300,000 struggling households switch to interest-only mortgage payments
Elizabeth Bonner
31 May 2011
Thousands of families struggling to pay off their mortgages during times of economic hardship are switching from repayment to interest-only arrangements to ease their financial burdens.
The average homeowner in the UK has a mortgage of £109,000, with borrowing costs at 3.5 per cent, meaning that the switch to interest-only payments can save approximately £230 per month.
While these savings are substantial to many families, interest-only payments could create even more financial risk for them.
Read more at New Statesman.
The average homeowner in the UK has a mortgage of £109,000, with borrowing costs at 3.5 per cent, meaning that the switch to interest-only payments can save approximately £230 per month.
While these savings are substantial to many families, interest-only payments could create even more financial risk for them.
Read more at New Statesman.
Sony announces profit loss of $3.1bn
Elizabeth Bonner
26 May 2011
The Japanese electronics company Sony announced the loss of $3.1bn (£1.9bn) from January to the end of March.
The company claims that the loss was, in part, due to writing off $4.4bn related to a tax credit.
Several factors beyond Sony's control contributed to this loss as well.
Read more at New Statesman.
The company claims that the loss was, in part, due to writing off $4.4bn related to a tax credit.
Several factors beyond Sony's control contributed to this loss as well.
Read more at New Statesman.
3,000 jobs to be lost as Focus finalises chain closure
Elizabeth Bonner
25 May 2011
The remaining 120 Focus stores are to be closed, meaning the loss of up to 3,000 jobs. This is despite recent efforts to save the chain.
Britain's fourth largest DIY chain has been struggling in the recession. During the first week of May, the company defaulted on a loan and called in Ernst&Young as an administrator, unsure if they would make it through the week.
Drowning in debts totalling £230m, their efforts to prevent closure were unsuccessful. Ernst&Young appointed Gordon Brothers to finalise the shut down. They will liquidate stock and close the remaining shops.
Read more at New Statesman.
Britain's fourth largest DIY chain has been struggling in the recession. During the first week of May, the company defaulted on a loan and called in Ernst&Young as an administrator, unsure if they would make it through the week.
Drowning in debts totalling £230m, their efforts to prevent closure were unsuccessful. Ernst&Young appointed Gordon Brothers to finalise the shut down. They will liquidate stock and close the remaining shops.
Read more at New Statesman.
Marks & Spencer defy the downward sloping market as profits rise to £714.3m
Elizabeth Bonner
24 May 2011
During a period characterised by futile efforts for many in the retail industry, Marks & Spencer's profits have risen to £714.3m this year, a 12.9 percent increase from the last.
Marc Bolland, Chief Executive of Marks and Spencer since November of 2009, told BBC it was a "good year" for the company.
Their first profit increase was largely due to sales in the food department in the last quarter of 2010. Because of the market trends of similar retailers, many expected M&S' sales to drop. While their clothing sales did decrease by 3.9 per cent, an increase in food sales by 3.4 per cent caused their overall market share to rise 6 percent.
Read more at New Statesman.
Marc Bolland, Chief Executive of Marks and Spencer since November of 2009, told BBC it was a "good year" for the company.
Their first profit increase was largely due to sales in the food department in the last quarter of 2010. Because of the market trends of similar retailers, many expected M&S' sales to drop. While their clothing sales did decrease by 3.9 per cent, an increase in food sales by 3.4 per cent caused their overall market share to rise 6 percent.
Read more at New Statesman.
First quarter report on Project Merlin reveals target shortfall
Elizabeth Bonner
23 May 2011
Lending figures have shown that UK banks are falling behind on their lending to smaller firms, sparking anger from business groups. The Business Secretary, Vince Cable, has warned that he wants a "significant improvement" in lending.
Under the Project Merlin agreement between the banks and the government, Barclays, Royal Bank of Scotland, Lloyds, HSBC and Santander pledged to loan £76bn in 2011, which, if distributed evenly, would equal £19bn per quarter.
With the project more than three months under way, the banks' figures have only reached £16.8bn, leaving them £2.2bn behind already.
Read more at New Statesman.
Under the Project Merlin agreement between the banks and the government, Barclays, Royal Bank of Scotland, Lloyds, HSBC and Santander pledged to loan £76bn in 2011, which, if distributed evenly, would equal £19bn per quarter.
With the project more than three months under way, the banks' figures have only reached £16.8bn, leaving them £2.2bn behind already.
Read more at New Statesman.
Top 15 food blogs
Elizabeth Bonner
23 June 2011
In honour of the food focused issue of this week's New Statesman, The Staggers has compiled a list of the top food blogs from around the world that offer restaurant recommendations, food reviews, cultural insight and, most importantly, recipes for more delicious dishes than you've ever seen.
Read more at New Statesman.
Read more at New Statesman.