NEWS,01 AND 02.04.2013

World Bank urges end to extreme poverty

World Bank chief Jim Yong Kim on Tuesday called for a global drive to wipe out extreme poverty by 2030, acknowledging that reaching the goal will require extraordinary efforts."A world free of poverty is within our grasp. It is time to help everyone across the globe secure a one-way ticket out of poverty and stay on the path toward prosperity," Kim said in a speech in Washington, according to the prepared text.The World Bank president said that in practical terms, the goal would be to lower the number of people living on less than $1.25 a day from 21% of the world's population in 2010 to just 3% by 2030."Below 3%, the nature of the poverty challenge will change fundamentally in most parts of the world. The focus will shift from broad structural measures to tackling sporadic poverty among specific vulnerable groups," Kim said in a speech at Georgetown University."Though we will continue to reach out to those who suffer from sporadic and occasional poverty, the fight against mass poverty that countries have waged for centuries will be won."In 2000, the international community set eight UN Millennium Development Goals to be reached by 2015. One of them, to halve extreme poverty, was accomplished in 2010, five years ahead of time, Kim noted, after developing countries invested in social safety nets and created buffers to protect against crises."To reach the 2030 goal, we must halve global poverty once, then halve it again, and then nearly halve it a third time all in less than one generation," he said.To do that will require three main factors, he said.Higher economic growth rates will be needed, in particular sustained high growth in South Asia and Sub-Saharan Africa. Efforts must be made to curb inequality and ensure that growth reduces poverty, especially through job creation.And potential shocks, such as new food, fuel, or financial crises and climatic disasters, must be averted or cushioned.The World Bank president also set another poverty-reduction target that is less measurable: to increase the incomes of the poorest 40% of the population in each country.Kim, speaking ahead of the World Bank and International Monetary Fund meetings in Washington later in the month, said the goals of ending poverty and boosting shared prosperity require coordinated efforts."They are goals which we hope our partners our 188 member countries will achieve, with the support of the World Bank Group and the global development community," he said.

Cyprus finance minister quits

Cypriot Finance Minister Michael Sarris quit on Tuesday after concluding talks with foreign lenders on a bailout that forced the island to slap unprecedented losses on bank depositors in return for aid.The news came after Cyprus announced a partial relaxation of currency controls, raising the ceiling for financial transactions that do not require central bank approval, but keeping most other restrictions in place.Sarris, who was dispatched to Moscow last month but returned empty-handed as Cyprus sought Russian aid after rejecting a European bank levy proposal, said his main goal of agreeing a deal with lenders had been accomplished.He said it was also appropriate to resign since he was among several people under scrutiny by a team of investigators looking into the collapse of the country's banking system. His resignation was accepted by the government."I believe that in order to facilitate the work of (investigators) the right thing would be to place my resignation at the disposal of the president of the republic, which I did," Sarris said.Before quitting, he said it was not clear when the remaining capital controls would be lifted.The island introduced curbs on money movements when banks reopened on March 28 after a two-week shutdown while the government negotiated a €10bn bailout from the International Monetary Fund and the European Union.Cyprus's status as a financial hub has crumbled in the space of a fortnight after authorities were forced to wind down one bank and slap heavy losses on wealthier depositors in a second in return for the financial aid.Its capital controls are a first for the eurozone, introduced by Cyprus as it strives to prevent a cash drain.Bailout terms disclosed A finance ministry decree on Tuesday, the third since controls were first introduced, raised the ceiling on transactions which do not require central bank approval to €25 000 from €5 000. It also permits the use of cheques worth up to €9 000 per month.Other restrictions introduced last week, including a €300 per day cash withdrawal limit and a €1 000 limit on the amount travellers can take overseas, remain in place.The decree signed by Sarris and dated April 2 is valid for two days. Cypriot officials have said it could take up to a month for restrictions to be fully removed.Cypriot President Nicos Anastasiades, who has been in power for just over a month, says he was forced to accept onerous terms imposed by lenders to avert a default and an exit by the island from the eurozone.Under the terms of the deal, Cyprus will have until 2018 to carry out measures to shore up its finances and begin to receive aid starting in May.The island will pay an interest rate of 2.5% on its rescue loans, with repayment starting in 10 years. The loans will repaid over 12 years.On Tuesday, Anastasiades appointed three retired Supreme Court judges to investigate political, civil and criminal responsibilities over the demise of the economy, one of the bloc's smallest.Cyprus last week agreed to break up its No. 2 lender Popular Bank, kept on an ECB liquidity lifeline for months, into a "good" and a "bad" bank. The bank's "good" assets will be transferred to Bank of Cyprus, where depositors have been forced into accepting massive losses on uninsured deposits of more than €100 000.The process, known as a "bail-in" sees 37.5% of deposits exceeding €100 000 converted into equity in the bank, and an additional 22.5% used as a buffer which could also be converted into equity if circumstances warrant it.In a deal brokered early on Tuesday morning, it was also agreed that a small portion of the remaining 40% in uninsured deposits effectively frozen under the arrangement, 10%, be unblocked.The Cypriot government had unsuccessfully argued that the entire 40% be unblocked, a source familiar with the consultations said.

Casinos to kickstart Cypriot economy

Cyprus plans to lift a ban on casinos and offer firms tax exemptions on profits reinvested on the island under a package of reforms to kickstart its ailing economy, its president said on Monday.The country's eurozone partners agreed on a €10bn rescue package last Monday after weeks of tense negotiations that showed the debt crisis racking the 1-nation currency union is far from over.The tough terms of the deal look set to deepen the island's recession, shrink its banking sector and lead to thousands of job losses, while the capital controls imposed to prevent a run on Cypriot banks may test the ties that bind the single-currency bloc as a whole.President Nicos Anastasiades, who briefed ministers on the economy at an informal meeting on Monday, said the 12-point growth plan would be put to the cabinet for approval within the next 15 days.The programme includes measures to attract foreign investment to the island a hub for offshore finance as well as tax exemptions on business profits reinvested there, and the easing of payment terms and interest rates on loans.With about €68bn in its banks, Cyprus has a vastly outsized financial system that attracted deposits from abroad, especially Russia.In a bid to attract more tourists to the south of the island, it also hopes to lift a ban on casinos, which so far only operate legally in Turkish-controlled northern Cyprus.Speaking to reporters after a memorial service to commemorate the 1955 armed campaign against British rule, Anastasiades said the government would focus on "growth and incentives for growth".Cyprus's bailout is the first to impose steep losses on depositors with more than €100 000 in their accounts, and is expected to hit business activity especially hard.Asked to make a forecast on the likely depth of recession Cyprus faces, government spokesperson Christos Stylianides said: "It's not possible at this time to put numbers on the recession.""The government, having inherited an atomic bomb, tried to deactivate it and in doing so spared this country from total bankruptcy. It is now dealing with a post-earthquake period with the aim to kickstart the economy," he said.Stylianides said the cabinet discussed pending issues in the country's negotiations with its international lenders relating to the financial sector, fiscal adjustment measures, structural measures in the public sector and energy issues. He said Anastasiades would also chair a meeting of party leaders at 18:00 GMT on Monday to brief them on the matter.Under the bailout deal, major depositors in Cyprus's biggest lender, Bank of Cyprus, will lose around 60% of savings above €100 000.The country's banks reopened on Thursday after a nearly two-week hiatus aimed at averting a bank run, but the ripple effect of their closure is likely to strangle business on the island for a long time to come.There are also concerns that depositors in other struggling eurozone nations could take fright at the conditions imposed on Cyprus, although there have been no signs of bank runs.The capital controls imposed on the country raise questions about the long-term viability of the euro. There is also the risk that euros on the island may be valued differently to those in the rest of the bloc due to them being less liquid as a result of the controls. Anastasiades has defended the rescue deal as painful but essential, saying that without it, Cyprus had faced certain banking collapse and risked becoming the first country to be pushed out of the European single currency.

Cyprus probes causes of bankruptcy

Cyprus authorities on Tuesday launched a judicial probe into how the island was pushed to the verge of bankruptcy before having to agree a crippling eurozone bailout.Cypriot President Nicos Anastasiades called on the three-judge commission George Pikkis, Panayiotis Kallis and Yiannakis Constantinides to investigate himself and his family members as a "matter of priority" and with "extra vigour".This is seen as a move to counter unsubstantiated allegations that his family members used privileged information to get money out of the country before deposits were locked down.Accusations have also been made against other leading politicians and business figures that they took advantage of their position to protect their assets from a hit on bank deposits imposed by European Union-led creditors last month.Anastasiades said nobody was immune from the inquiry not even his extended family or the law firm in which he was a partner until recently."The current plight of the economy and our people is without a doubt the result of a synergy of factors both external and internal," Anastasiades said at the swearing-in ceremony."A series of acts or omissions from those authorised to manage the economy or the banking system led the country to the brink of bankruptcy, the dissolution of one its largest banks and the loss of billions from an impairment of deposits," he added.The massive losses suffered by savers in the island's two largest banks in the first eurozone rescue package to punish larger depositors has sparked huge resentment against anybody seen as having taken unfair advantage to shirk their share of the burden.Big depositors in largest lender Bank of Cyprus face losses of up to 60%, while those in second lender Laiki will have to wait years to see any of their money as the bank is wound up with the loss of thousands of jobs.The government is looking to free up the remaining 40% of BoC deposits of more than €100 000 that are not frozen as part of the bailout agreed with the "troika" of the EU, European Central Bank and International Monetary Fund.Allegations have swirled of big movements of cash out of both banks in the run-up to the bailout agreement as those in the know scrambled to protect their money.The panel, which has three months to report its findings, will also probe a list published by Greek media of Cypriot politicians who allegedly had loans forgiven during the meltdown.Cypriot banks have been operating under stringent capital controls since they reopened on Thursday, after a near two-week lockdown prompted by fears of a run on deposits.Central Bank of Cyprus governor Panicos Demetriades said in an interview with the Financial Times published on Tuesday that the controls would be eased in stages."I can't really tell you if it will be seven or 14 days before capital controls end," Demetriades said. "We have to lift them gradually."He played down fears there would be a run on accounts once the controls were eventually relaxed."Once people realise how well capitalised the banks are there is little reason why there will be deposit flight," he said.The draconian controls limit daily withdrawals to €300 and ban the taking of more than €1 000 in cash out of the country.At the island's main international airport in Larnaca, signs in Greek, English and Russia warn departing travellers of the restrictions.

Eurozone manufacturing slump deepens

The downturn in the 17-nation eurozone's manufacturing sector deepened sharply in March, with even powerhouse economy Germany dragged down, a key survey showed Tuesday.The Markit Eurozone Manufacturing Purchasing Managers Index fell to 46.8 points in March, up from an initial estimate of 46.6 but well short of the already weak 47.9 posted in February.The outcome left the closely followed indicator at a three-month low and below the 50-points boom-bust line since August 2011.The average PMI for the three months to March was 47.5 points, which Markit said was the best performance since the first quarter of 2012, but the latest figures showed a clear deterioration across the eurozone.Germany at 49 points slipped to a two-month low while "rates of decline gathered pace in all the other nations ... with the exception of France," Markit said in a statement.France stood at 44 points, a three-month high, while Italy was on 44.5, its lowest for seven months and Spain on 44.2, a five-month low.Markit warned that the data suggested worse could be to come, after recent figures had allowed analysts to hope that the economy might have finally touched bottom.Manufacturing "looks likely to have acted as a drag on the economy in the first quarter, with an acceleration in the rate of decline in March raising the risk that the downturn may also intensify in the second quarter," Markit chief economist Chris Williamson said in a statement."The surveys paint a very disappointing picture across the region, with all countries either seeing sharper rates of decline or in the cases of Germany and Ireland sliding back into contraction," Williamson said.He said the Cyprus bailout appeared not to have had any impact so far but "the concern is that the latest chapter in the (eurozone debt) crisis will have hit demand further in April."

Eurozone unemployment hits record high

Eurozone unemployment ran at a record 12% in February, with more than 19 million people on the dole as the debt crisis continued to sap the economy, official data showed Tuesday.The Eurostat data agency said unemployment in the 17-nation eurozone at 12% was unchanged from January when the figure was initially given as 11.9%.In the full 27-member EU, unemployment in February rose to 10.9% from 10.8%, with 26.34 million out of work, it said.Some 33 000 joined the jobless queues in the eurozone and 76 000 in the EU over the month of February, Eurostat said.Compared with a year earlier, the increase in registered unemployment was 1.78 million in the eurozone and 1.81 million in the EU.The highest unemployment rates in February were found in Spain with 26.3% and neighbour Portugal, on 17.5%. Greece was put at it 26.4% but this figure is for December, the latest available.The lowest rates were 4.8% in Austria and 5.4% in Germany, Europe's biggest economy.With youth unemployment a huge cause of concern, Eurostat said that the jobless rate for under-25s ran at 23.9% in the eurozone and 23.5% in the EU.Among the countries with the highest youth jobless levels, Spain was on 55.7%, followed by Portugal on 38.2% and Italy with 37.8%.Greece was the highest with 58.4% but this figure was for December, the last available.

UK manufacturing contracts in March

Britain's manufacturing sector shrank for a second consecutive month in March, a survey showed on Tuesday, leaving the country's more resilient services sector as the best hope of avoiding a new recession.The Markit/CIPS manufacturing purchasing managers' index came in at 48.3, only slightly above February's shock reading of 47.9, and a touch weaker than the consensus forecast.The output component of the survey fell in March at its fastest pace since October.The survey suggests manufacturing exerted an even bigger drag on growth between January and March than it did in the fourth quarter of 2012, when it accounted for a third of the economy's 0.3% contraction."The onus is now on the far larger service sector to prevent the UK from slipping into a triple-dip recession," said Rob Dobson, senior economist at Markit.Official GDP data for the first quarter won't be released until April 25 but the evidence so far suggests a strong risk that Britain will record a second consecutive quarter of contraction the technical definition of recession.A third recession in less than five years would be an embarrassment for the government which is sticking to tough austerity measures despite faltering growth at home and abroad.Despite the weakness in the economy, the Bank of England is not expected to take new stimulus measures when it meets on Wednesday and Thursday, although more action is widely expected before the end of the year.The Markit report blamed the poor performance of manufacturing in March on tough market conditions, subdued client confidence and ongoing bad weather.New orders from abroad contracted for the 15th month running in March. The survey blamed the fall on weak demand from Europe and strong competition in US and South Asian markets.In further bad news for UK policymakers, there were also signs that inflation pressures were picking up. Output prices rose at the fastest pace in three months while input prices picked up sharply, driven by the weakness of sterling and higher energy and food costs.Manufacturing accounts for around a fifth of British economic output. Surveys of the construction and service sectors for March are due to be released on Wednesday and Thursday respectively. There have been signs that the services sector is faring better than manufacturing. It grew at its fastest pace in five months in February, according to Markit and official data showed it notched up its best performance in January for five months.

NEWS,02.12.2012

Osborne sticking with UK austerity plan

British finance minister George Osborne said on Sunday that he would stick with his deficit-reduction programme when he presents a half-yearly fiscal statement on Wednesday. The Chancellor of the Exchequer declined to comment more specifically on whether he would be able to meet debt targets, but stressed he did not believe Britain should borrow more or increase spending. At his "Autumn statement" on Wednesday, Osborne is expected to defend his stringent economic policies as the only credible way of solving the government's biggest political problem - its failure to deliver a strong recovery. "It's clearly taking longer to deal with Britain's debts, it's clearly taking longer to recover from the financial crisis than anyone would have hoped, but ... to turn back now ... would be a complete disaster for our country," he said in a BBC television interview. British media reported on Sunday that Osborne plans to cap the amount of tax relief high earners receive on their pension contributions alongside reining in the welfare budget. Osborne declined to comment on the reports, but did not reject the proposals directly when questioned in the interview. He also declined to say if the country's independent fiscal watchdog would show him still on track to eliminate Britain's underlying budget deficit within the next five years, or to have debt as a share of national income on a downward path by the 2015/16 tax year.

Merkel not ruling out Greek 'haircut'

German Chancellor Angela Merkel has not ruled out a so-called "haircut", or write-down, on Greek debt in the next few years, in an interview with a Sunday newspaper, marking an apparent softening in position.After being vehemently opposed to accepting a "haircut," Merkel told Bild am Sonntag that it could be considered from 2014 if Greece's financial situation improves, according to a pre-released article."If Greece one day again manages with its revenue without getting new debt, then we must look at and assess the situation. That is not the case before 2014/15 if everything goes according to plan," she told the paper.Opposition politicians have accused Merkel of playing down the need for a write-down of Greek debt holdings by public institutions such as other eurozone governments and the European Central Bank, because of federal elections expected to take place on September 22.In the Bild interview, Merkel contested that she had refused a "haircut" due to the looming elections."The current aid programme for Greece runs until 2014, for the achievement of certain budgetary goals we have given the Greeks two years more time until 2016," she said.Many in Germany consider a write-down of Greek debt holdings inevitable.But on Friday, Finance Minister Wolfgang Schaeuble said speculation on a "haircut" sent "the wrong incentive" to Greece because it reduced the pressure on the Athens government to enact structural economic reforms.Some eurozone states have said they would "not exclude" the possibility of writing off some debt from 2015 onwards.Merkel also said she favoured considering tougher sanctions for indebted eurozone states."In the long term I am definitely of the opinion that we consider how we develop in our law procedures for states which do not comply with their commitments," she said.Merkel also told Bild that she understood the scepticism of many of her compatriots over Greece but that she saw a determination in Athens to reorganise the country and that rescuing Greece from economic collapse was in Germany's best interests.On Friday she secured the vote from German lawmakers to release €43.7bn in aid to debt-wracked Greece agreed after tortuous talks between eurozone finance ministers.

UK over-50s ignorant about retirement

Britain's over-50s are in blissful ignorance of how little their pension pots will pay out and need an urgent financial health check if their retirements are to be as comfortable as they expect, an industry report said. Workers approaching retirement in the next 15 years need to see their pension pots grow by almost 80% to meet their expectations, the National Association of Pension Funds (NAPF) said on Friday. "Millions of people are within a decade of their state pension but have still not thought about how long their retirement might last," Joanne Segars, chief executive of the NAPF, said in a statement. The burden of managing a pension at retirement has increasingly fallen on employees, as defined contribution (DC) pensions, rather than final-salary schemes, become the more dominant form of retirement saving. The introduction of the government-backed auto-enrolment scheme where people are required to opt out rather than opt into retirement saving could lead up to 8 million additional workers being signed up for pensions, which will likely be DC pension memberships. Yet a third of workers aged 52 to 64 remain ignorant about what their private pension income may provide in retirement, while 59% of workers have never thought about how many years of retirement they need to finance, a report by the Institute for Fiscal Studies and supported by the NAPF said. Women in their 50s are living to an average of 88 - four years longer than expected - while men are living to 85, overshooting life expectancy by around two years, when compared with national projections of life expectancy, the report said. Annuities, which many British retirees buy to ensure a steady income, are meanwhile becoming more expensive, meaning people will expect their savings pots to generate a higher annuity income than it actually does. Private pension firms have also been accused of failing to disclose some of the costs they levy on customers' investment funds, leaving people unaware that their pension savings were being eroded by the charges. The NAPF represents 1 300 pension schemes in the UK with 16 million members and assets of around £900bn.

North Korea plans new rocket launch

North Korea said it would carry out its second rocket launch of 2012 as its youthful leader Kim Jong-un flexes his muscles a year after his father's death, in a move that South Korea and the US swiftly condemned as a provocation.North Korea's state news agency announced the decision to launch another space satellite on Saturday, just a day after Kim met a senior delegation from China's Communist Party in the North Korean capital of Pyongyang.China, under new leadership, is North Korea's only major political backer and has continually urged peace on the Korean peninsula, where the North and South remain technically at war after an armistice, rather than a peace treaty, ended the 1950 - 1953 conflict.No comment on the planned launch was available from Beijing's foreign ministry.In Washington, US State Department spokesperson Victoria Nuland condemned the launch plan as a provocative threat to the Asia-Pacific region that would violate UN resolutions imposed on Pyongyang after past missile tests."A North Korean 'satellite' launch would be a highly provocative act that threatens peace and security in the region," she said in a written statement."North Korea must abide by its international obligations under UN Security Council resolutions that clearly articulate what it can and cannot do with respect to missile technologies," said Pentagon spokesperson George Little.Seoul's foreign ministry called the move a "grave provocation". Japan's Kyodo news agency said Prime Minister Yoshihiko Noda had ordered ministries to be on alert for the launch."North Korea wants to tell China that it is an independent state by staging the rocket launch and it wants to see if the United States will drop its hostile policies," said Chang Yong-seok, a senior researcher at the Institute for Peace Affairs at Seoul National University.North Korea is banned from conducting missile or nuclear-related activities under UN resolutions imposed after earlier nuclear and missile tests. The country says its rockets are used to put satellites into orbit for peaceful purposes, but that assertion is not widely accepted outside of Pyongyang.Washington and Seoul believe that the impoverished North is testing long-range missile technology with the aim of developing an intercontinental ballistic missile capable of carrying a nuclear warhead.Pyongyang's threats are aimed, in part, at winning concessions and aid from Washington, analysts say.The failed April rocket launch took place to celebrate the 100th anniversary of the birth of North Korea founder Kim Il Sung and the latest test will take place close to the 17 December date of the death of former leader Kim Jong-il.It will also come as South Korea gears up for a 19 December presidential election in a vote that pits a supporter of closer engagement with Pyongyang against the daughter of South Korean dictator Park Chung-hee.The April test was condemned by the UN, although taking action against the North is hard as China refuses to endorse further sanctions against Pyongyang.North Korea is already one of the most heavily sanctioned states on earth thanks to its nuclear programme.Pyongyang has few tools to pressure the outside world to take it seriously due to its diplomatic isolation and its puny economy.The state that Kim Jong-un inherited last December after the death of his father boasts a 1.2 million-member military, but its population of 23 million, many malnourished, supports an economy worth just $40bn annually in purchasing power parity terms, the US Central Intelligence Agency asserts."The North's calculation may be that they have little to lose by going ahead with it at this point," said Baek Seung-joo of the Korea Institute for Defence Analyses in Seoul.Baek said the test planned for December would likely be no more successful in launching a satellite than the April one that crashed into the sea between China and North Korea after flying just 120km. "Kim Jong-un may be taking a big gamble trying to come back from the humiliating failure in April and in the process trying to raise the morale for the military," Baek said.North Korea's space agency said on Saturday that it had worked on "improving the reliability and precision of the satellite and carrier rocket" since April's launch.

NEWS,25.10.2012

Eurozone business slump accelerates

Eurozone private sector business activity slumped deeper into the mire in October, falling at its fastest rate since June 2009 to 40-month lows, a closely watched survey showed on Wednesday.The Composite Purchasing Managers Index (PMI), a survey of 5 000 eurozone businesses compiled by the Markit research firm, fell to 45.8 points in October from 46.1 in September.The index is a leading indicator and any reading below 50 indicates a contraction in activity, with the eurozone getting off to a bad start for the fourth quarter as the debt crisis continues to undermine growth and jobs.The preliminary data showed the Services sector PMI at 46.2 points in October, edging up from 46.1 in September while the Manufacturing sector fell very sharply to 45.3 from 46.1.Markit said eurozone firms "continued to cut employment, adjusting capacity down in response to lower levels of demand for goods and services."Further declines in activity over the coming year were signalled by another deterioration in business optimism in the service sector, which also suggests that employment looks likely to be cut again," it added. Markit chief economist Chris Williamson said the data suggested the eurozone economy was shrinking at a rate of 0.5% on a quarterly basis, more than enough to count the eurozone as deep in recession."While gross domestic product may decline only modestly in the third quarter, a steeper fall looks to be on the cards for the fourth quarter," Williamson said."The financial markets may have cheered the positive developments from policymakers in seeking to resolve the region’s debt crisis ... but business appears to have been less impressed."Sentiment about prospects for the year ahead are now the gloomiest since early-2009, when the post-Lehman Brothers crisis was in full swing," he said.Analysts said the survey findings were cause for concern, with the eurozone falling deeper into recession.The figures "worryingly indicate that the eurozone downturn is, if anything, deepening rather than easing. Consequently, it already looks highly likely that the eurozone is headed for further economic contraction in the fourth quarter," said Howard Archer of IHS Global insight.Archer noted how austerity policies implemented to combat the debt crisis were hitting domestic demand while muted global growth undercut exports.The European Central Bank was now likely to cut its benchmark interest rate to 0.50% from 0.75% in December in an effort to boost growth, he said, although it could be delayed until early 2013.

EU, IMF insist no Greek creditor deal yet

 

Greece's finance minister announced he had agreed a new austerity deal with international creditors, but the EU and IMF insisted that while there had been progress, no deal had yet been thrashed out.Yannis Stournaras told parliament Wednesday the so-called troika had granted a long-sought extension in return for a €13.5bn austerity package needed to unlock funds vital to keep the country afloat.But officials at both the European Union and the International Monetary Fund were quick to make it clear that the troika had not yet reached any agreement with Athens."Substantial progress has been made in talks with Greece but a few outstanding issues remain before a staff-level agreement can be reached," a spokesperson for European economic affairs commissioner Olli Rehn said in a tweet.The International Monetary Fund issued a similar message soon after."There has been progress in recent days, but some outstanding issues remain to be agreed upon to reach full staff-level agreement," a spokesperson said."Furthermore, financing issues will be discussed between the official lenders and Greece."European Central Bank chief Mario Draghi also said that while there had been progress "the review is not finished yet".The EU has been negotiating alongside the ECB and the IMF on a new round of spending cuts and reforms by Greece to unlock a €31.2bn installment from its rescue loans.A finance ministry source had said earlier that the government hoped to present the deal to a Eurogroup meeting on Thursday, ending talks that have dragged on since July.But Finance Minister Wolfgang Schaeuble of key paymaster Germany said: "As far as the German government knows there are no new findings."When the proposals (from the troika) are on the table, the Eurogroup will look at them. There is nothing more to add."Earlier Stournaras had said that he had finalised the agreement on cutbacks in talks with the troika's auditors."We have obtained the extension," he told parliament, announcing that two draft laws related to the package would be presented to parliament next week.The new measures, to be voted on by November 12, still have to be approved by Greece's three-party coalition government, with key allies remaining split over the painful reforms.According to the draft budget, Greece plans to cut the public deficit to 6.6 percent of output this year - still over twice the EU limit.'Greece will be saved by those who dare'European leaders have long maintained that extra time for Greece means more money from eurozone taxpayers.But Stournaras said: "Greece aims to cut its debt through lower interest rates and an extension in the repayment of loans it has received from the EU and the IMF."German daily Sueddeutsche Zeitung and Greek media had reported that Athens would be given two more years to slash its public debt mountain and implement key labour reforms and privatisations.Greece, heading for a sixth straight year of recession, is desperately trying to unlock the new installment of loans from the troika.In exchange, Athens has to agree to tough economic reforms, but the measures are deeply unpopular among ordinary Greeks who have taken to the streets in sometimes violent protests.With unemployment topping 25%, the government has been pleading for more time to implement the austerity measures.Media reports had said Athens would be given to 2016 to cut its deficit to the EU limit of 3% of gross domestic product rather than the previous deadline of 2014. Its total debt stood at a whopping 150% of GDP at the end of the second quarter, according to Eurostat.The reported agreement also scaled back targeted privatisation revenue to €10bn by 2016 - effectively nine billion less over an extra year - while calling for a two-year rise in the statutory retirement age and fresh cuts to state salaries and pensions.Earlier Wednesday, ECB executive board member Joerg Asmussen said that if Athens did get another two years to implement its reforms, other members of the 17-nation eurozone would have to lend it more money to bridge the deficit shortfall.Athens recently pledged €7.8bn in cuts next year, only to be told by the troika that an effort of €9.2bn was required to counterbalance the effects of the recession.Prime Minister Antonis Samaras's political allies, the socialist and moderate leftist parties, have baulked at calls to lower severance pay and facilitate layoffs while the country faces record unemployment."Greece will be saved by those who dare," Samaras said on Tuesday after a meeting of coalition leaders. "We have already modified many of the troika's original proposals - on labour issues and others - and the negotiation continues."

Olympics lift Britain out of recession

Britain stormed out of its longest double-dip recession since the 1950s after its economy returned to growth in the third quarter with a robust gain of 1%, official data showed on Thursday.British gross domestic product, or combined value of produced goods and services, grew at the strongest rate for five years during the July-September period after contracting in the previous three quarters.Market expectations had been for the economy of Britain, which is not part of the eurozone, to have expanded by 0.6% in the third quarter compared with the second after falling into a double-dip recession in late 2011.British Prime Minister David Cameron welcomed the data but warned against complacency amid global economic headwinds."There is still much to do, but these GDP figures show we are on the right track, and our economy is healing," Cameron said in a statement.Finance minister George Osborne echoed the cautious sentiment, saying that "yesterday's weak data from the eurozone were a reminder that we still face many economic challenges at home and abroad."Britain escaped from a deep downturn in late 2009 but fell back into recession at the end of 2011.The economy contracted by 0.4% in the second quarter of this year after shrinking by 0.3% in the first - and by 0.4% in the final quarter of 2011."GDP was estimated to have increased by 1% in Q3 2012 compared with Q2 2012," the Office for National Statistics said in a statement."The largest contribution to the increase came from the services sector. There was also an increase in activity in the production sector. Activity in the construction sector fell."Growth was also affected by one-off factors, including the London 2012 Olympic Games and rebounding activity after an extra public holiday for Queen Elizabeth II's Diamond Jubilee, the ONS said."Not only did the UK pull out of its double-dip in Q3, but the one percent quarterly rise in GDP was a fair bit better than expected," said Vicky Redwood, senior economist at the Capital Economics research group." Admittedly, much of this reflected temporary factors. We think that the reversal of the Jubilee effect probably added about 0.5 percent, the Olympic ticket sales added 0.2% and there may have been a wider Olympic boost."But even accounting for this suggests that underlying output managed to rise by a small amount - an improvement on recent quarters. It won't be plain sailing from now on, though. There are still a number of constraints on the recovery."Output was meanwhile flat in the third quarter compared with the equivalent period in 2011, the ONS added.Despite emerging from recession, Britain was facing considerable difficulties, not least from tight credit conditions and worries about the impact of the debt crisis in the eurozone, a key trading partner.Other major headwinds include rising inflation on higher energy and food prices, an uncertain jobs market and ongoing austerity measures from Britain's coalition government.

China to open energy to private investors

China will seek to encourage more private investment in its state-dominated energy sector, according to a new industry white paper published by official news agency Xinhua on Wednesday.China is preparing for a once-in-a-decade leadership transition in November, and its new leaders are widely expected to push for the sort of market-oriented reforms that will break up monopolies in sectors such as energy. The new policy document said China planned to “give full play to the fundamental role of the market in allocating resources” and would draw up new regulations designed to reform the energy sector.  Included in the list of possible private investment targets were the exploration and development of energy resources, coal processing, oil refining, renewables, the construction of oil and natural gas pipelines and the electricity sector.“All projects listed in the national energy program, except those forbidden by laws or regulations, are open to private capital,” the document said.Policy makers have struggled to bring market forces to bear on the energy industry, with dominant state-owned enterprises like the State Grid Corp. proving resistant to change. The white paper said China would also seek to improve legislation on, and regulation of, the industry, with plans to adopt a comprehensive new energy law and new provisions dealing with oil reserves, natural gas and nuclear reactor management. While China is committed to raising the share of renewables in its overall energy mix to 15% by 2020, it said it would also promote the clean development of fossil fuels and improve power generation efficiency.      

China slams money-making off religion

China's religious affairs ministry has lashed out at the rampant commercialisation of sacred places and temples in the country, including the practice of employing "fake monks" and fortune-tellers. In a statement posted online, the State Administration for Religious Affairs, which oversees the country's religious organisations, also criticised plans by some Buddhist and Taoist temples to raise funds by listing on the stock market." Temples shall not in any way engage in 'stock' or 'joint venture' activities," the administration said in the statement dated October 22.Policies by the Communist Party suppressing religion have been relaxed since the 1970s, leading to a rapid increase in pilgrimages and visits to temples. Religious organisationsare still required to register with the government. The State Administration for Religious Affairs picked out for particular criticism those "using the excuse of promoting traditional culture" to profit from devotees." There have been reports of non-religious sites employing fake monks... illegally setting up donation boxes to take religious donations, even threatening religious believers and tourists to cheat them out of money," the statement said."These phenomena seriously violate the party's policies towards religion, and national laws," it added, listing other abuses including pressuring tourists to buy expensive incense and illegal fortune-telling. The Famen temple in northwest China is set to list on Hong Kong's stock exchange next year, according to the Global Times daily, while Mount Putuo, a sacred Buddhist mountain, has announced plans to go public within three years.Two fake monks wearing orange Buddhist robes were detained in Beijing in April after they were caught drinking alcohol on the city's subway and checked into a luxury hotel with two women, local reports said at the time.