NEWS,12.03.2013

British manufacturing output slumps

Britain's manufacturing output slumped by 1.5% in January compared with December, official data showed on Tuesday, dealing a fresh blow to the country's hopes of avoiding a fresh recession.The wider measure of industrial production - which includes mining and quarrying, electricity, gas and water supply dropped by 1.2% in January from December, the Office for National Statistics added in a statement.Analysts' consensus forecast had been for manufacturing and industrial output to have each grown by 0.1% in January month-on-month, according to a survey by Dow Jones Newswires.Industrial output fell as suspended production at the Schiehallion oil platform in the North Sea hit oil and gas extraction."January’s figures do little to ease fears that GDP may still be contracting and that the economy could therefore be in a triple-dip recession," said Capital Economics analyst Samuel Tombs.Recent official data showed that British gross domestic product (GDP) shrank by 0.3% in the final quarter of 2012, compared with the previous three months.Another contraction in the current first quarter of 2013 would place the British economy in its third technical recession since the 2008 global financial crisis."Industrial production measure fell 1.2% month-on-month in January, a far worse outturn than expected," said Royal Bank of Scotland economist Ross Walker."The slump in January leaves a decline in first-quarter GDP looking more likely than not."In a separate data release on Tuesday, the ONS also revealed that Britain's trade-in-goods deficit narrowed at the start of the year.The deficit shrank to £8.2bn in January from £8.7bn in December.That beat analysts' forecasts for a January deficit of £8.9bn.However, IHS Global Insight economist Howard Archer argued that the improvement masked a worrying trend."On the face of it, the sharply reduced trade deficit in January is better news for hopes that the economy can grow in the first quarter," Archer said."But even here the headline figure masks some worrying trends as the reduced deficit occurred because UK imports fell more than exports. This indicates that UK exporters are currently still finding life very tough while domestic demand is weak."

Eurozone crisis not over - ECB's Weidmann

The euro zone crisis is not over and governments must tackle the roots of their troubles with reforms, Bundesbank chief Jens Weidmann said on Tuesday, adding that France's reform drive seems to have gone off track."The crisis is not over despite the recent calm on financial markets," Weidmann, a member of the European Central Bank's policymaking governing council, told a news conference to present the Bundesbank's 2012 results.There was uncertainty about the reform course in Italy and Cyprus, he said, adding: "The reform course in France seems to have floundered".

Judge blocks NY ban on giant fizzy drinks

New York judge blocked mayor Michael Bloomberg's planned ban on giant sodas Monday, dealing a setback to his public health agenda just hours before curbs on selling such drinks were due to begin.Judge Milton Tingling ruled that measures to restrict soda servings to a maximum of 16 ounces (470 milliliters) in restaurants and other venues, were "arbitrary and capricious," and he was barring the plan "permanently."Bloomberg has made health issues a key plank of his administration, banning smoking in restaurants, bars and other public places. He quickly denounced the judge's decision on sodas as "clearly wrong," and said the city would appeal."I am trying to do what is right to save lives. Obesity kills," a visibly angry Bloomberg told reporters, noting that 5 000 New Yorkers and 70 000 US citizens would fall victim to the disease this year."Sugary drinks are a leading cause of obesity. We have a responsibility as human beings to do something, to save each other," he added.But Bloomberg's super-sized soda ban, which would have been a first for a US city, sparked frenzied debate, with petitions and media campaigns from both sides.Some supported Bloomberg's arguments, emphasizing that 30 years ago the average soda serving was just six ounces, but that these days, it's not rare to see young Americans with giant fizzy drinks of more than a litre (33 ounces).Opinion polls over the summer indicated that a majority of New Yorkers opposed the limited ban, with some suggesting the mayor was impinging on civil liberties and others arguing the rules would not be effective.Industry lobby groups led by the American Beverage Association (ABA) and the National Restaurant Association took the court action that led to Monday's judgment, and they praised the decision."The court ruling provides a sigh of relief to New Yorkers and thousands of small businesses in New York City that would have been harmed by this arbitrary and unpopular ban," the ABA said in a statement.As well as the thousands who die each year from obesity-linked problems, one in eight adult New Yorkers has diabetes, which can be aggravated by sugar consumption, and studies have shown that sodas, which often cost less than bottled water, are a contributing factor."Remember, for many years, the standard soda size was six ounces - not 16, it was six, then it was 12 ounces and people thought that was huge. Then it became 16, then 20 ounces," Bloomberg said."We believe it's reasonable to draw a line and it's responsible to draw a line right now," he added.The New York Board of Health approved the measures last September and they were due to come into force on Tuesday in restaurants and places of public entertainment, such as stadiums.In a boost for the soda limits, the newly-built basketball stadium for the Brooklyn Nets had said it would immediately adopt the rules.But under the measures put forward by the city there was nothing to stop people from buying as much soda as they like by refilling smaller containers.Also, the ban did not extend to drinks sold in supermarkets or any dairy or fruit drinks, many of which also contain huge quantities of sugar.Diet and alcoholic drinks were also exempted under the city's plan."The exclusion of all alcoholic beverages from the ban is completely irrational. Beer and soda have nearly the same calories per ounce," the legal complaint said.And "the application of the ban to some business establishments but not others is arbitrary and capricious," it argued.Bloomberg previously acknowledged that the plan would fall short of ending over-consumption of sugary drinks, but he said the disappearance of mega-sized cups would at least make people more aware of what they were consuming.

Australia unveils media shake-up

Australia's centre-left Labour government unveiled a shake-up of media laws on Tuesday, introducing a public interest test for mergers but stopping short of press regulation asfeared by the industry.Communications Minister Stephen Conroy said the reforms, drafted after an inquiry into Australia's media following the phone-hacking scandal in Britain, were aimed at modernising the industry and guarding fairness and diversity.If passed into law, the changes would bring a public interest test to "nationally significant" mergers and acquisitions, which Conroy said was not the same as the "fit and proper person" test seen in Britain.It would be monitored by a new statutory authority called the Public Interest Media Advocate, which would oversee a robust self-regulation model, the minister said, stressing that the government would have no role."The government will not fund or oversee press standards bodies, they will be run, funded and operated by the print media themselves," he said.Proprietors, most vocally Rupert Murdoch's dominant local arm News Limited, had feared official regulation of the press, but Conroy said the present model of self-regulation would continue, although it would be tightened.Conroy added that the government would be seeking a "more transparent and open process" on appointments to regulatory bodies such as the current Press Council and better enforcement of existing press standards.The Press Council could apply to be authorised under the new framework, but Conroy said it would be  expected to be "transparent, open and independent" of proprietors, not just the government, to address community concerns."In Australia there is a real risk that over time there will be fewer and fewer organisations owning and controlling sources of news and commentary," Conroy told reporters."There are two existing mechanisms that address this risk: competition law and foreign ownership restrictions. But these alone do not reflect the full question of public interest in media diversity."Conroy said the government would not barter on the legislation, which he believed had enough backing in parliament."If these reforms do not garner sufficient support to pass the parliament by the end of next week then the government will not proceed with the bills containing them," he said.

NEWS,20.01.2013

World economy, conflicts top Davos agenda

Reviving the global economy and the conflicts in Syria and Mali will top the agenda as world leaders and business chiefs meet this week in the Swiss ski resort of Davos for its annual gathering of international power brokers.Some 45 heads of state or government will keep company with the 2 500 participants descending on the picturesque Alpine town for the five-day World Economic Forum starting on Tuesday.Russian Prime Minister Dmitry Medvedev, German Chancellor Angela Merkel and British Prime Minister David Cameron will deliver speeches expected to focus on efforts to maintain the nascent pickup in global economic activity.The event kicks off Tuesday night with Hollywood actress Charlize Theron providing a bit of sparkle as she accepts an award for her work supporting African youth in the fight against AIDS.The eurozone crisis is likely to take centre stage the rest of the week, but unlike last year - when fears of a eurozone collapse remained very real - this year's meeting takes place amidst guarded hope that Europe is finally tackling its debt woes.Italian Prime Minister Mario Monti and European Central Bank President Mario Draghi will speak on the way forward for the eurozone, while International Monetary Fund chief Christine Lagarde will address methods of generating stable growth.Noticeable by their absence will be high-profile officials from either China or the United States, though US Senator John McCain will be on hand for a panel on the future of conflict-torn Syria.The war in Syria and security issues throughout the Middle East and Africa will be on the table, with Jordan's King Abdullah II making a special address.The premiers of Egypt, Lebanon, Libya, Tunisia and the Palestinian Territories are due to attend, as well as Israeli President Shimon Peres.Though too fresh to make it on the official agenda, France's ongoing military intervention against Islamist rebels in Mali and the fallout from the Algerian hostage crisis will also be key talking points.Nigerian President Goodluck Jonathan, whose country will lead a West African ground force heading to join French troops in Mali, will share the stage with South African leader Jacob Zuma for a panel on risks in the continent.UN chief Ban Ki-moon will speak on the outlook for global development, joined on a panel with Cameron, Microsoft founder Bill Gates and Jordan's Queen Rania.More than 900 top business executives are expected to attend, with this year's forum co-chaired by the CEOs of Coca-Cola, Embraer, UBS, Dow Chemical and the head of Transparency International.One CEO pencilled in to take part, former Rio Tinto head Tom Albanese, is unlikely to show up following his resignation on Thursday after the global mining giant announced a $14bn write-down.Organisers have said the theme of this year's forum - "Resilient Dynamism" - focuses on how the global economic system can withstand and quickly recover from sudden shocks, like the eurozone crisis.The role of women in economic decision-making will also be highlighted in a panel featuring, among others, Lagarde and Facebook Chief Operating Officer Sheryl Sandberg. As well as politics, diplomacy and business, discussions will be held on "mega sporting events", jazz music, religion in the 21st century, education and the fight against obesity.Founded in 1971 by German economist Klaus Schwab, now 74, the Davos forum has become a not-to-miss gathering for the global elite, with participants shelling out tens of thousands of euros on attendance fees, travel and accommodation.The invitation-only meeting is also known for its informal luncheons and cocktail parties, often hosted by corporate sponsors and with exclusive guest lists, where political and business leaders can rub shoulders and network.

The Re-emergence of Europe: Tackling Europe's Youth Unemployment

The European debt and banking crises have had a devastating impact on youth unemployment across the region. Millions of young people today face the prospect of becoming a lost generation living through a lost decade, and many worry that they have no future. Their trajectory, in contrast to that of their parents and grandparents, is defined not by hope, but fear.The media report that Europe's youth unemployment figure of over 22 percent makes it one of the worst regions in the world. The International Labour Organization has warned that the Eurozone risks losing a further 4.5 million jobs over the next four years, primarily among young people, unless it shifts its policies towards job creation.But despite the frightening speed at which young people have been expelled from the labour market, it is important to note that Europe has coped with high youth unemployment for many years. For example, Spain's youth unemployment figures were similarly high in the mid-1980s and mid-1990s, research shows.And unemployment estimates can be deeply misleading. Reports that youth unemployment in Spain and Greece is nearing 50 percent make the situation seem far worse that it is. This is because young people who attend university or vocational training programmes are not considered part of the labor force. So the 50 percent figure does not refer to all young people, just those actively looking for a job.A far better indicator is the youth unemployment ratio, which measures the number of unemployed against the total number of young people aged 16 to 24. These figures, while still serious, seem far less doom-laden. For example, the youth unemployment rate for the 27 countries of the European Union has risen from 20.1 percent to over 22 percent since 2009, while the youth unemployment ratio has risen from 8.7 percent to over 9 percent. Greece's youth unemployment rate may be approaching 50 percent, but its youth unemployment ratio is 13 percent. This is not to make light of the situation, but it is important not to be alarmist. And some research suggests that Europe's youth unemployment level is actually better on average than it is in the US. Mitigating these figures somewhat is the "boomerang" phenomenon  young people aged 25 to 34 who left home only to return to live with their parents for economic reasons. This is a widely accepted custom for unmarried children in southern Europe. Roughly 70 percent of Italian men aged 25 to 34 live with their mothers, for example. But there is no getting away from the fact that unemployment has a very negative and even devastating effect on the lifetime earnings and career paths of young people. This is known as the "scarring effect" in economic jargon.So what can be done? Here are a few suggestions from a World Economic Forum and ManpowerGroup report:· Higher participation in career guidance programmes for school children· Better career and labour market information for young job seekers· A more positive image for vocational education· Better training· Investment in entrepreneurship education One of the reasons why Germany has a youth unemployment ratio of just 4.5 percent is its relentless focus on training and vocational education. Talent is a by-product of education; the quality of a country's human capital depends on it. Four of the 12 pillars that determine the World Economic Forum's measure of competitiveness relate directly to education: health and primary education; higher education and training; technological readiness; and innovation. If we want to create more jobs, Europe has to invest heavily in the growth sectors of the future, be they genetics, nanotechnology or digitalization. This can only be done by strengthening research and innovation throughout the EU. Technology is going to revolutionize almost every sector, leading to the demise of many traditional professions. Economic and political power will be determined less by a country's size than by its technological superiority. To benefit from this new reality we need to foster a culture of entrepreneurship throughout Europe, investing in innovation hubs for example. Young people will have to realize that jobs will no longer be handed to them on a plate; they will have to create them for themselves.

The Road Forward: What Does the World Want From Obama?

A number of polls published before the U.S. presidential election in November indicated that, on a global level, if the world could vote, they would have re-elected President Barack Obama by a wide margin. Perhaps that isn't terribly surprising, given the immense interest Obama's rise in 2008 created outside the U.S., the general lack of enthusiasm for Mitt Romney even at home, and the fact that in Europe Obama "is perceived, rightly or wrongly, as the most European of North American leaders,". And the polls were, after all, entirely hypothetical.Yet the very fact that these polls are conducted, as well as the overwhelming support they illustrate for Obama, is a reminder that many people around the world are invested in the direction that America chooses to take, and more to the point, may also still feel, despite a mixed first term in office, that Obama can, as my colleague Howard Fineman put it, "turn great promise into true greatness."But recognizing that most of the world wanted Obama isn't the same as knowing what the world wants from Obama.To help us better understand what some of those things might be, we turned to international editions in the UK, Canada, France, Spain and Italy for a collection of articles as part of our series "THE ROAD FORWARD: Obama's Second Term Challenges."You can read the full series here.) The hope is that these pieces, written by our reporters in these countries, will illuminate how the world outside America views the challenges and possibilities facing a leader whose personal appeal still looms larger than his presidential accomplishments.If one is willing to hazard identifying a theme from these six articles, it is the simple but important fact that the world still looks to America to lead on a number of fronts, and that despite talk of the U.S.'s relative decline in geopolitical influence, the policies the country pursues and the positions it takes still matter greatly to those living beyond our borders.When it comes to the economy, the main political parties in the UK are closely watching the path out of the recession that Obama is trying to chart between austerity and stimulus, in hopes of proving that their fiscal policies will be vindicated by the public as the right ones. "To be economically credible in Westminster, it seems, is to be aligned with Barack Obama," . Meanwhile, "Paris relies on Washington to set the tone for a growth policy that would turn its back" on austerity measures.On the U.S. domestic front, Canadians are looking to Obama to approve TransCanada's controversial Keystone XL pipeline while also engaging in greater stewardship on the environment, says Canada Business Reporter Sunny Freeman, even though those goals are somewhat contradictory. For Spain, Obama's pledge to expand America's development of renewable energy presents an economic opportunity for the struggling country, as Spanish companies have invested heavily in U.S. projects in recent years .Regarding foreign policy, Italy readers are hoping that the president can show greater courage on issues ranging from the Israeli-Palestinian conflict to Guantanamo to Afghanistan, while on a more local level, Dina Rickman reports that many Brits would like to see Obama take action on reforming the process established by the U.S.UK Extradition Act, which allows for the extradition of UK citizens for breaking U.S. laws.As Obama begins his second term, these articles, and the issues they raise, are a reminder that the world beyond America's shores has a stake in the road ahead, and that our leaders, in turn, have an obligation to try to meet these expectations.