Sunday, March 17, 2013

NEWS,14.,15.,16. AND 17.03.2013



1.7 m applications for 1 500 jobs


India's largest state-run bank has received 1.7 million applications for just 1 500 entry-level clerk jobs and has promised to examine all of them, a report said this week.State Bank of India chairperson Pratip Chaudhuri attributed the huge interest to good arketing and attractive employment terms, with the number of applications  underlining the appeal of "jobs for life" in the Indian public sector. "This time, we had given the advertisement a good profile, highlighting the position of SBI and describing the compensation package in detail, which attracted a lot of attention," Chaudhuri told The Times of India.For positions in Mumbai, the bank offered a starting package of 69 000 rupees ($1 270) a month for the "probationary officers" including a housing allowance - an attractive perk in the expensive local real estate market.Job opportunities in the Indian private sector have fallen in the last 18 months as economic growth has dropped to its lowest level in a decade due to declining business confidence and high interest rates.The government forecasts that India's once-booming economy will grow by just 5% in the current financial year to March 31.Last year, it grew by 6.2% but even that rate - while enviable by anaemic Western standards is insufficient to create the jobs India needs for its fast-growing young population.India's Prime Minister Manmohan Singh, a former economist, believes that India requires at least 8% growth to create enough jobs for its expanding population, with the government keen to promote the industrial sector.Chaudhuri said all 1.7 million applicants more than 1 100 per position available - would be assessed."We have conducted such examinations in the past by hiring schools across the country. This time, we may have to do two shifts," he told the newspaper. Nine out of ten Indians are currently employed in the "informal" sector in jobs that offer no security, few perks and often illegal working conditions, government data shows.

London's gold, silver in price fix probe

 

London's gold and silver markets face the possibility of a probe alongside other benchmarks into price setting, putting a century-old practice under the spotlight after the Libor rigging scandal that exposed widespread interest rate manipulation by banks.The US Commodity Futures Trading Commission has engaged in "a couple" of conversations about whether the daily setting of gold and silver prices in London is open to manipulation, Commissioner Scott O'Malia said on Thursday, although he said the situation is "fairly immature in its development."The Wall Street Journal, citing unnamed sources, reported on Wednesday that the CFTC was examining various aspects of gold and silver price-setting, including whether it is sufficiently transparent "What was stated in that story was more than I think we're doing," O'Malia told reporters at the annual Futures Industry Association conference in Florida on Thursday."I think we've had a couple of conversations. We're looking at energy, indexes, prices, how they're set. We'll look at all of the range of index-setting," O'Malia said.The CFTC declined to provide an official comment, while the chairs of the London Gold Fixing Company and London Silver Fixing Company were not available for comment.Another CFTC Commissioner Bart Chilton, known as an outspoken proponent of regulation to protect investors and consumers, declined to specifically address the report, saying: "Given the clubby manipulation efforts we saw in Libor benchmarks, I assume other benchmarks - many other benchmarks are legit areas of inquiry."Britain's Financial Services Authority (FSA) also declined to comment on whether it was looking into gold and silver price setting, but said on Thursday it is feeding into a wider review of price benchmarks run by the International Organisation of Securities Commissions (Iosco) a global umbrella group for markets regulators.Iosco is set to publish a report in May with principles on how to compile important benchmarks to avoid rigging.The setting, or "fix", of the gold price in London dates back to 1919, originally involving NM Rothschild & Sons, Mocatta & Goldsmid, Samuel Montagu & Co, Pixley & Abell and Sharps & Wilkins. Silver price setting started in 1897.Currently, gold fixing happens twice a day by teleconference with five banks: Bank of Nova Scotia-ScotiaMocatta, Barclays Bank Plc, Deutsche Bank AG, HSBC Bank USA, NA and Société Générale. The fixings are used to determine prices globally.Chairmanship of the Gold Fixing rotates annually among the member banks.At the start of each gold price-fixing, the chairperson announces an opening price to the other four members who relay that to their customers, and based on orders received from them, instruct their representatives to declare themselves as buyers or sellers at that price.The gold price is adjusted up and down until demand and supply is matched at which point the price is declared "Fixed".The fixings are used to determine spot prices for the billions of dollars of the two precious metals traded each day.Buyers and sellers can get insight on price changes and the level of interest during the fixing process. They can cancel, increase or decrease their interest based on that information.Gold and silver price setting has long been the subject of debate, and the CFTC looked at complaints about the silver market in 2008.But most believe that the process is transparent."The fix is open, consequential, transparent and has stood the test of time. It's not open to manipulation in the same way as Libor," said Ross Norman, chief executive of bullion broker Sharps Pixley.

Japan's PM set to push trade pact


Japan's hard-charging prime minister on Friday said he wanted in on talks to forge a huge trade pact, the latest bold move from a man who says he is determined to lick the frail economy into shape.With caveats aimed squarely at reassuring the cosseted farming industry, Shinzo Abe said Japan could not afford to miss negotiations on thrashing out the Trans Pacific Partnership (TPP).The announcement came just hours after his pick for central bank chief was approved by parliament, boosting the likelihood of more of the aggressive monetary easing he has been calling for to counter chronic deflation."A huge economic bloc that would account for roughly a third of the world economy is about to begin," Abe told a news conference."What the TPP is aiming to achieve is to make the Pacific Ocean a sea where goods, services and investment are freely exchanged."Supporters of the TPP say participation would give Japan's flagging economy a boost the government estimates by as much as $33bn over a decade and increase consumer choice.They say opening up Japan's cosseted markets is vital if its stumbling economy is going to pick up speed, a key campaign promise from Abe.But opponents claim it could be a body blow to the country's ageing farmers, removing the sky-high tariffs that have sheltered them and sending many to the wall, changing the face of the countryside in the process.Japan's rural heartland is a crucial source of support for Abe's brand of conservative nationalism and any suggestion that farmers will lose their unparalleled protection could be politically costly for him.But, said the premier, the agricultural sector could not stand still. He said it was already facing challenges and participation in the TPP presented an opportunity."I am sure that Japan's delicious and safe farm products will become popular all over the world," he said."The TPP is not a crisis but, rather, a huge chance. I have heard many who worry that Japan's agriculture would be devastated if we join."I promise that I will protect Japan's farm industry and Japan's food industry by any means."The TPP forms a vital plank in US President Barack Obama's vaunted "pivot" to Asia, and is seen by some as part of a US bid to contain China's rising economic might.Washington has been keen to get Japan on board because of the economic heft its participation lends to the project and Acting US Trade Representative Demetrios Marantis said the US welcomed Abe's "important announcement".But the US Alliance for American Manufacturing, which is backed by the US auto industry and is nervous of allowing Japanese rivals unfettered access to the huge auto market, was critical of the idea of Japan joining the talks."Japan's closed market, currency manipulation, and many other concerns stand in the way. It's not worth sacrificing American jobs and American manufacturing to secure a TPP agreement at any cost," said AAM president Scott Paul.The TPP has been on the global agenda for years, but a succession of politically weak leaders have been unable to commit Japan to involvement.The fact that Abe appears ready to take the plunge is a sign, say observers, of the momentum he has gathered in the less than three months since he came to power in landslide elections.He hit the ground running on taking office on December 26 and his calls for more monetary easing, coupled with threats to change the law governing the independence of the Bank of Japan, succeeded in driving down the painfully strong yen.Helped by the slide in the currency, which helps the country's many exporters, the stock market is at more than four-year highsFriday's upper house approval for Abe's slate of central bank chiefs Haruhiko Kuroda was confirmed as governor, while Kikuo Iwata and Hiroshi Nakaso got the nod as his deputies - boosts his efforts to pull Japan out of more than a decade of deflation.The BoJ's new management team, which was approved by the lower house on Thursday, is set to take up their positions next week with the focus now squarely on their first policy meeting next month."High hopes are resting on the ability of the Bank of Japan's new leadership to revitalise the economy," London-based Capital Economics said in a note.Kuroda, 68, is thought likely to back the premier's prescription of big spending and aggressive monetary easing, vowing during confirmation hearings to do "everything possible" to reverse years of falling prices.

IMF urges EU to clean up banks


The International Monetary Fund said on Friday that the European economy and financial system remained weak and urged the region to quickly clean up its banks in order to advance toward a banking union.In a first-ever assessment of the stability of the European Union financial system, the IMF said banks in the region were still weak and needed more capital strengthening."Much has been achieved to address the recent financial crisis in Europe, but vulnerabilities remain, and intensified efforts are needed across a wide front," the IMF report said."Financial stability has not been assured," it said, pointing to continued falls in asset prices, distrust of sovereign debt and the overall weak economy, which remains in recession.The first priority, the IMF said, is to shore up banks by cleaning up their balance sheets, weighed down by large but still-unclear levels of bad assets, and put them through more stress tests.Secondly, the EU must complete the establishment of a region-wide financial oversight mechanism, necessary to strengthen the eurozone currency union and the single market for banking, and then a regional resolution mechanism for winding up failed financial institutions.All that needs to be done this year, the IMF emphasized, stressing that market and economic threats continued to hang over the European economy.With those jobs tackled, it said, the region can move toward a banking union with, ideally, a road map laid down by the middle of this year."The crisis has shown that national decisions, even well-intended ones, have union-wide repercussions on financial stability, and that there is a need for single frameworks for crisis management, deposit insurance, supervision and resolution, with a common backstop for the banking system."The IMF acknowledged some significant progress toward a single supervisory mechanism and a banking union.However, it said, as long as EU members failed to unite on an EU-wide approach to financial stability, the system remains "vulnerable to shocks, and generates incentives for national ring-fencing and fragmentation."

IMF calls for Palestine breather


The International Monetary Fund (IMF) on Thursday called for "urgent action" to help revive the Palestinian economy, saying it had been choked by Israeli restrictions and political uncertainty."Urgent actions are needed by the Palestinian Authority (PA), by the government of Israel, and by donors to stabilsze the fiscal position and rekindle economic growth over time," the IMF said in a statement.The fund said the situation in the West Bank and the Gaza Strip had deteriorated in recent months, pointing to rising unemployment which had claimed nearly a quarter of the labour market in late 2012."Israeli restrictions on movement and access are virtually unchanged and continue to hamper growth prospects," the IMF said, noting that gross domestic product had risen by only 6% last year compared to an average of around 11% in 2010 and 2011.Further slippage in GDP to around 5% was possible this year, the IMF said, citing "increasing political uncertainty" in the region."The military confrontation between Hamas and Israel last November, continued settlement expansion, and recent outbreaks of unrest in the West Bank underline the common view that prospects for peace remain dim," the IMF said.The fund's analysis also said the Palestinian Authority faced a "liquidity crisis" with public spending on an "unsustainable" trajectory."If left unchecked, these trends will ultimately lead some to question the legitimacy of the PA and undermine its ability to govern effectively," the IMF remarked.The fund called on the international community to increase financial support to the Palestinian Authority while urging "enhanced economic cooperation with Israel".The IMF analysis echoed a report by the World Bank on Tuesday ahead of a meeting of international donors on March 19, which warned of "lasting damage" to the Palestinian Authority's economy wreaked by Israeli restrictions and the worsening fiscal situation.

US slaps sanctions on covert Iran oil net


The United States on Thursday slapped financial sanctions on a Greek businessman for secretly operating a shipping network on behalf of the Iranian government to get around international sanctions on the country's sale of oil."Today, we are lifting the veil on an intricate Iranian scheme that was designed to evade international oil sanctions," US Treasury undersecretary for terrorism and financial intelligence David Cohen said in a statement. The move named Dimitris Cambis and a number of front companies for buying tankers on behalf of the National Iranian Tanker Company, barring US citizens from doing business with them and freezing any of their assets under US jurisdiction.Cambis was identified in Reuters report last month that said Iran was using old tankers to ship oil to China. He denied that he had been involved.But a senior US administration official dismissed Cambis' denial in a telephone conference call with reporters on Thursday, and said the clandestine operation had been deliberately structured to conceal Iranian involvement.As the sanctions have had increasing impact, so have the efforts to evade them, the official said.Sanctions were introduced last year by the West to choke Tehran's funding of its nuclear program by targeting the country's oil exports.The West believes Iran is developing weapons, a charge Tehran denies.Sanctions halved Iran's oil exports in 2012 by more than 1 million barrels per day, about the amount that oil production grew in the United States during that time, and Washington has been at pains to keep up the pressure."We will continue to expose deceptive Iranian practices, and to sanction those individuals and entities who participate in these schemes," Cohen said.The targeted network bought and operated eight tankers, each able to carry roughly $200m of oil per shipment."These operations are conducted through a series of ship-to-ship transfers in an attempt to mask the fact that the true origin of the oil is from Iran and to introduce it into the global market as if it were non-Iranian oil," Treasury said.US officials stressed that the sanctions were not aimed in any way at the Greek government, other Greek shippers, or the Greek shipping industry in general.

Still hope for fiscal deal: top official


Senior congressional Republicans said on Sunday they see a chance for a broad deal with President Barack Obama on deficit reduction and reining in spending on vast government programs like Medicare and one senator signaled potential flexibility on taxes.Obama, who met with lawmakers of both parties last week, has been calling for more tax increases on the wealthiest taxpayers, coupled with new spending cuts, to help curb budget deficits that have exceeded $1 trillion in each of the past four years.House of Representatives Speaker John Boehner, the top Republican in Congress, and Obama failed to come to terms at the end of last year on an agreement to get America's fiscal house in order.Such a deal could include spending cuts, tax reform and curbing spending on costly entitlement programs like the Social Security retirement program and the Medicare health insurance program for the elderly and disabled.Speaking on the "Fox News Sunday" program, Senator Bob Corker, a Tennessee Republican, said: "There, by the way, is a chance on a deal. I know the president is saying the right things. And we have an opportunity over the next four to five months."Asked on the ABC programme "This Week" if prospects for a "grand bargain" were dead, Boehner said, "I don't know whether we can come to a big agreement. If we do, it'll be between the two parties on Capitol Hill. Hopefully, we can go to conference on these budgets and hope springs eternal in my mind."Boehner said that while the United States does not have "an immediate debt crisis" one is looming because entitlement programs are not sustainable in their current form. "They're going to go bankrupt," he said.Asked how long the country had to solve these problems, Boehner said, "Nobody knows where this is. It could be a year or two years, three years, four years."Obama has engaged in a couple of weeks of outreach to lawmakers - some have called it a "charm offensive" but the prospects of a large deficit reduction deal by midyear remained unclear. Corker underscored the importance of reform in the huge entitlement programs like Medicare."I think Republicans, if they saw true entitlement reform, would be glad to look at tax reform that generates additional revenue. And that doesn't mean increasing rates. That means closing loopholes. It also means arranging our tax system so that we have economic growth."Boehner said he has "a very good relationship" with Obama, they are "trying to bridge some big differences" and that he "absolutely" trusts the president.But Boehner said that if Obama "believes that we have to have more taxes from the American people, we're not going to get very far.""If the president doesn't believe that the goal ought to be to balance the budget over the next 10 years ... (I'm) not sure we're going to get very far," he said. Obama met last Wednesday with House Republicans and made little headway in persuading them to accept his demand for tax hikes as part of any deficit-reduction deal. Republicans and Democrats in Congress last Tuesday offered up vastly different plans to slash long-term deficits. On Thursday, a Senate bill to avert a federal government shutdown stalled under the weight of more than 100 proposed amendments as senators sought to attach pet provisions. Senate Democratic leaders postponed further votes on the government spending legislation until Monday and said they would work over the weekend to try to whittle down the number of amendments. They had hoped to pass the measure on Thursday.Democrat Dick Durbin of Illinois, the No. 2 Senate Democrat, said senators must pass the budget resolution "and then we're going to move to the next stage and that is the grand bargain stage. That's what the president has tried to set up."The added provisions in the Senate budget measure threatened to make the bill unacceptable to the Republican-controlled House, which last week passed a much less complicated version of the extension to government funding through September 30. Government agencies and programs face a broad shutdown if Congress fails to pass an extension by March 27.

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