Monday, July 9, 2012

NEWS,09.07.2012


Germans prefer old school media

 

Americans love to publicly debate it, British people hardly ever pay for it online and Germans prefer to get theirs through more traditional means, according to a survey about media consumption released on Monday.The survey looked at the consumption habits in Britain, the United States, Germany, Denmark and France, and found that TV and online platforms are now the overwhelming choice for news.Although computers remain the most popular medium on which to view news, with at least 74% doing so in the last week across the board, at least 20% had used a mobile for the same purpose in the same period. Around 8.5% used a tablet computer, while e-readers and other devices remained niche products.The report pointed to a more flexible and personalised consumption model which no longer relied on home or office internet access.The increasing range of mobile devices was adding to the news experience, it said, rather than replacing other forms of access.London-based journalist Nic Newman, who wrote the study, said: "Of those surveyed, nearly eight out of 10 people accessed online news every week, but the transition from print to digital is much slower in other European countries." Germans showed the greatest allegiance to traditional forms of media for news, with only six out of 10 using online sources over the last week, compared to an average of eight of 10 everywhere else.Nearly seven out of 10 pick up a newspaper or tune in to the radio.In Britain, only four percent had ever paid for digital news, compared to 12% in Denmark, and between six and eight percent elsewhere. However tablet users, who accounted for 13% of the sample, were just as likely to shell out for news applications such as the Guardian's or the Daily Telegraph's as they were to use free ones.While traditional media brands dominated people's usage across Europe, over half of all Americans polled also cited newer sources such as Huffington Post and Gawker. Nearly seven out of 10 people in the US used polls, comment boxes and sharing functions to engage with the news, compared to roughly four out of 10 in most other countries.The survey was conducted by YouGov on behalf of the Reuters Institute for the Study of Journalism at the University of Oxford. It involved a representative sample of more than 6 000 people during April.

 

Eurozone to force Spain banks to hike capital


Eurozone finance ministers have said they will oblige Spain's battered banks to further boost the share of rock-solid core capital on their books at a meeting on Monday, the daily El Pais said."All Spanish entities will have to raise their high quality 'core capital' to 9%," the daily said, citing European sources with knowledge of the negotiations.So far, only the biggest Spanish banks have had to keep such a high ratio of core capital as a proportion of total assets.The meeting in Brussels is to discuss details of a eurozone rescue loan of up to €100bn euros ($125bn) to salvage Spain's banks, laden with loans that turned bad after a 2008 property market crash.It comes as investors show deep misgivings about Spain's finances despite the banking rescue.A European Union summit from June 28-29 had been hailed as a brekathrough for promising a eurozone bank union to keep the lenders in line and making it easier for the bloc's new bailout fund to help states in trouble.But investors' concerns have returned, in part because of doubts over the details and timetable for implementing the banking rescue and the sweeping EU summit agreements.Spanish 10 year government bond yields surged to 7.026% in morning trade from 6.912% late on Friday, a worrying sign for Madrid for future debt issues.Prime Minister Mariano Rajoy has warned that his country cannot afford to finance its operations at such high interest rates over the long term, raising the spectre of an all-out state bailout.Link Securities said it seemed that the EU summit agreements would be respected.That would allow EU rescue mechanisms to pump rescue loan money directly into Spain's banks without adding to the nation's fast-rising sovereign debt, it said.It also would ensure that the EU rescue mechanism does not take priority over other lenders for repayment in the case of a Spanish default, a prospect that had unnerved potential investors, Link Securities said."Now they have to decide when and how this plan will be implemented, and what will be asked in exchange," it said."One of the non-negotiable conditions imposed by the 'men in black' is the creation of a 'bad bank'," which would pool all the toxic property-related loans, said business daily Expansion.Analysts at Spanish brokerage Renta 4 said they did not expect any protocol to be signed at the Brussels talks on Monday. But ministers may agree on a draft deal to be signed at their next meeting July 20, they said.

 

Spanish Borrowing Costs Rise To Dangerously High Levels

 

Spain's borrowing costs rose to dangerously high levels Monday as finance ministers of the 17 countries that use the euro began to gather in Brussels to discuss terms of a rescue package for the country's stricken banks.The interest rate, or yield, on the country's 10-year bonds hit 7 percent Monday morning, a level that market-watchers consider is unaffordable for a country to raise money on the bond markets in the long term and the point at which Greece, Ireland and Portugal all sought an international bailout. Stocks on Madrid's benchmark index fell 1.7 percent. The yield later fell back down to 6.99 percent.The yield indicates the interest rate a government would have to pay to raise money from financial markets when it holds bond auctions. While Spain can afford the high rates for a few weeks at least, it would find them too expensive in the longer term.Spanish officials had originally indicated that it would decide on Monday how much the country's troubled banks would get from a €100 billion ($124 billion) lifeline from other members of the 17-country eurozone. Spain's bank industry has been struggling since 2008 under the weight of toxic loans and assets following a collapse in the country's property market.But an official with Spain' economy ministry said last week that the meeting of eurozone finance ministers was not expected to generate a figure for how much Spain would tap. Ministers planned to discuss terms of the loan and may or may not finalize some of them at the evening session, said the official, who spoke on condition of anonymity in keeping with policy.Outside auditors are expected to complete rigorous assessments of Spanish banks by July 31. Separate stress tests will also be conducted on individual lenders banks to determine how much each bank needs to strengthen its balance sheets against further economic shocks if they can't raise capital on their own, the official said. These results are due to be published in mid-September.The Spanish official's comments reflect those made by a European official in Brussels last week, who said that no numbers for the overall loan amount would be coming out until bank-by-bank stress tests had been completed. The official added that one of the aims of Monday's meeting would be to get a "political understanding" of the memorandum of understanding for Spain's loan so ministers could start paving the way in their countries to get the bailout approved. Spain's loan needs the green light from all 17 countries using the euro.Investors fear a full-blown bailout of Spanish public finances would be too large for the eurozone to handle. The country's economy is the fourth largest among the 17 nations that use the common euro currency  behind Germany, France and Italy - and it is also larger than those of Greece, Ireland and Portugal combined.The interest rate on Spanish 10-year bonds hit a eurozone high of 7.18 percent in intraday trading on June 18 before closing at 7.12 percent that day, according to financial data provider FactSet.

 

Russia's highest court backs WTO entry

 

Russia's highest court ruled on Monday that a hard-won deal to join the World Trade Organisation (WTO), that will oblige Moscow to cut import tariffs and open up key sectors in its economy to foreign investment, was in line with the constitution.The ruling, issued by the Constitutional Court in a unanimous decision from its headquarters in St Petersburg, clears the way for a final parliamentary vote to ratify entry into the 155-member global trade rules club.The vote will take place on Tuesday with a majority of lawmakers expected to rubber-stamp accession. The original deal was clinched last December after 18 years of often-difficult talks. Russia, whose $1.9 trillion economy is the largest outside the WTO, would become a full member 30 days after ratification.The court's ruling quashed a case brought by lawmakers from the opposition Communist and Just Russia parties who had unsuccessfully argued that the ratification procedure and parts of the accession deal were unconstitutional.Recently elected for a third presidential term, President Vladimir Putin had long appeared ambivalent over WTO entry but warmed to the process after Russia's economy was hit hard by the global recession of 2008-2009.According to a World Bank study, the growth uplift that Russia could expect from joining the WTO could be 3.3% over the medium term and as much as 11% in the long run.Under the deal, Russia would gradually cut averageimport tariffs to 7.8% from 10% and open up investment in sectors such as telecommunications, while shielding its banking sector from overall foreign control.Russia managed to protect hefty subsidies to promote its domestic auto industry and negotiated a long transitional period for reducing state aid to farmers.

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