(Reuters) - The dollar's status as the top global reserve currency is unlikely to be mentioned explicitly in the final communique at next week's Group of Eight summit, a European G8 source involved in preparations for the meeting said on Friday. "It is expected to be mentioned and discussed remotely. But the discussions have not yet reached the level of putting it in writing in the communiques," the source, who asked not to be identified, told Reuters. G8 sources said earlier this week that China had asked for discussion of proposals for a new global reserve currency at next week's G8 meeting in Italy. One source said Beijing made the request during preparatory talks about a joint statement to be issued on the second day of the summit in L'Aquila by the G8 plus the G5 (Brazil, India, China, Mexico and South Africa) and also Egypt. This forum, the so-called "G14," meets on July 9 to discuss the financial crisis, trade and climate change and for the first time a G8 summit will also produce a joint G14 statement. "China can bring this up and they have said they would like to mention it," the European G8 source told Reuters on Friday.
(Reuters) - The dollar's status as the top global reserve currency is unlikely to be mentioned explicitly in the final communique at next week's Group of Eight summit, a European G8 source involved in preparations for the meeting said on Friday.
"It is expected to be mentioned and discussed remotely. But the discussions have not yet reached the level of putting it in writing in the communiques," the source, who asked not to be identified, told Reuters.
G8 sources said earlier this week that China had asked for discussion of proposals for a new global reserve currency at next week's G8 meeting in Italy.
One source said Beijing made the request during preparatory talks about a joint statement to be issued on the second day of the summit in L'Aquila by the G8 plus the G5 (Brazil, India, China, Mexico and South Africa) and also Egypt.
This forum, the so-called "G14," meets on July 9 to discuss the financial crisis, trade and climate change and for the first time a G8 summit will also produce a joint G14 statement.
"China can bring this up and they have said they would like to mention it," the European G8 source told Reuters on Friday.
Belated observations on this week's Prime Minister's Questions, which, like the indispensable Paul Waugh, I thought was a significant moment. For the first time, I thought David Cameron looked properly prime ministerial; he held the House. Gordon Brown's performance was simply lamentable. This was not a matter of the "zero per cent rise" in public spending in 2013/14, which was just a mistake: he meant to say 0.7 per cent. It was a matter of his ruthlessness with the truth. Cameron explained why the Government's plans, including a forecast for the costs of "unemployment, which, sadly, will go up", implied spending cuts in all other departments.
I'm not convinced that has occured. keep to the Fen Causeway
One option available to staff is taking a year off with a 75 per cent drop in salary, in return for receiving the remainder of their wages as an up-front payment, said a spokesman. BT, the former state telecom company, is one of the UK's largest private employers with more than 100,000 staff. But it has been hit by the economic downturn and posted a £1.3billion loss for the first three months of the year. A BT spokesman confirmed that staff had also been offered a one-off payment of £1,000 if they agree to go part-time.
One option available to staff is taking a year off with a 75 per cent drop in salary, in return for receiving the remainder of their wages as an up-front payment, said a spokesman.
BT, the former state telecom company, is one of the UK's largest private employers with more than 100,000 staff.
But it has been hit by the economic downturn and posted a £1.3billion loss for the first three months of the year.
A BT spokesman confirmed that staff had also been offered a one-off payment of £1,000 if they agree to go part-time.
The future of GM Europe (GME) could turn into a fight between the Chinese and the Russians after Beijing Automotive Industry Corporation (BAIC) made a formal offer for the distressed car maker. The Chinese proposal - reportedly worth more than €650m (£556m) - takes the number of bids for the group, which includes Opel in Germany and Vauxhall in the UK, up to three.The front-runner is still the Canadian parts manufacturer Magna International, backed by Russia's Sberbank and automaker Gaz, owned by Oleg Deripaska. The consortium signed a non-binding memorandum of understanding at the end of May, just days before the US parent went into Chapter 11 bankruptcy protection. GME is now doing due diligence on the Magna bid and the rejection or withdrawal of interest from Fiat and RHJ International - a holding company for the US buy-out group Ripplewood - had left Magna as the only serious contender.
The future of GM Europe (GME) could turn into a fight between the Chinese and the Russians after Beijing Automotive Industry Corporation (BAIC) made a formal offer for the distressed car maker.
The Chinese proposal - reportedly worth more than €650m (£556m) - takes the number of bids for the group, which includes Opel in Germany and Vauxhall in the UK, up to three.
The front-runner is still the Canadian parts manufacturer Magna International, backed by Russia's Sberbank and automaker Gaz, owned by Oleg Deripaska. The consortium signed a non-binding memorandum of understanding at the end of May, just days before the US parent went into Chapter 11 bankruptcy protection. GME is now doing due diligence on the Magna bid and the rejection or withdrawal of interest from Fiat and RHJ International - a holding company for the US buy-out group Ripplewood - had left Magna as the only serious contender.
More than 40 per cent of investors refused to back Tesco's proposed changes to its share option scheme at the grocer's annual meeting in Glasgow yesterday. The resolution was passed with 54.9 per cent of votes to 45.1 per cent, including abstentions, but the rebellion is the latest in a series by UK shareholders over executive reward policies. Riskmetrics, the investor advisory service, had tabled the resolution against the change to the share option scheme that extends to three years from one year the period during which retiring executives or store managers can exercise the options. A spokesman for the Association of British Insurers said: "Other companies considering such arrangements should take note of this strong signal from shareholders."
More than 40 per cent of investors refused to back Tesco's proposed changes to its share option scheme at the grocer's annual meeting in Glasgow yesterday.
The resolution was passed with 54.9 per cent of votes to 45.1 per cent, including abstentions, but the rebellion is the latest in a series by UK shareholders over executive reward policies.
Riskmetrics, the investor advisory service, had tabled the resolution against the change to the share option scheme that extends to three years from one year the period during which retiring executives or store managers can exercise the options. A spokesman for the Association of British Insurers said: "Other companies considering such arrangements should take note of this strong signal from shareholders."
More ambiguous economic data yesterday added to the uncertainty about whether the UK is on the road to recovery or slumping back into recession. The UK service sector grew for the second consecutive month in June, according to the purchasing managers' index (PMI) published by the Chartered Institute of Purchasing and Supply (Cips). But the pace of change was broadly flat - registering 51.6, a slight fall from May's 51.7. And the index - which is a leading indicator of economic activity - is still barely above the break-even "50" mark, undermining hopes of a speedy upturn.Tentative signs of improvement last month led to calls that the recession had bottomed out, and the respected National Institute of Economic and Social Research estimated a return to GDP growth in April and May. But indicators have subsequently slipped back, and economists are divided: either the slowing is just a temporary blip, or it is the economy tipping back towards a "double dip", or W-shaped, downturn.
More ambiguous economic data yesterday added to the uncertainty about whether the UK is on the road to recovery or slumping back into recession.
The UK service sector grew for the second consecutive month in June, according to the purchasing managers' index (PMI) published by the Chartered Institute of Purchasing and Supply (Cips). But the pace of change was broadly flat - registering 51.6, a slight fall from May's 51.7. And the index - which is a leading indicator of economic activity - is still barely above the break-even "50" mark, undermining hopes of a speedy upturn.
Tentative signs of improvement last month led to calls that the recession had bottomed out, and the respected National Institute of Economic and Social Research estimated a return to GDP growth in April and May. But indicators have subsequently slipped back, and economists are divided: either the slowing is just a temporary blip, or it is the economy tipping back towards a "double dip", or W-shaped, downturn.
Richard Thaler is a behavioral economist at the University of Chicago---a heretic in the Church, as it were. In a New York Times Op-Ed he discusses a recent proposal by the Obama administration to require mortgage lenders to offer simple, standard products in addition to what ever other, more exotic products they may put on offer.
I practice what has come to be called behavioral economics. We behavioralists differ from our more traditional brethren in the way we characterize agents in the economy. Traditional economics is based on imaginary creatures sometimes referred to as "Homo economicus." I call them Econs for short. Econs are amazingly smart and are free of emotion, distraction or self-control problems. Think Mr. Spock from "Star Trek." Real people are not Econs. Real people have trouble balancing their checkbooks, much less calculating how much they need to save for retirement; they sometimes binge on food, drink or high-definition televisions. They are more like Homer Simpson than Mr. Spock. Call them Homer economicus if you like, or just Humans. Behavioral economics is the study of Humans in markets. Designing policies for Econs is pretty straightforward. Because they are smart consumers and make good choices, the best policies give them as many choices as possible and simply assure that they have access to all the relevant information. Humans, however, can use a bit more help, especially when the options are hard to understand. Often, it is possible to help people make better choices without restricting their options at all. So shouldn't it be a no-brainer to try?
Real people are not Econs. Real people have trouble balancing their checkbooks, much less calculating how much they need to save for retirement; they sometimes binge on food, drink or high-definition televisions. They are more like Homer Simpson than Mr. Spock. Call them Homer economicus if you like, or just Humans. Behavioral economics is the study of Humans in markets.
Designing policies for Econs is pretty straightforward. Because they are smart consumers and make good choices, the best policies give them as many choices as possible and simply assure that they have access to all the relevant information.
Humans, however, can use a bit more help, especially when the options are hard to understand. Often, it is possible to help people make better choices without restricting their options at all. So shouldn't it be a no-brainer to try?
H/T to Brad Setser at Calculated Risk
The University of Chicago announced plans for a Milton Friedman Institute in April, 2008. Wonder if Richard Thaler will be a member? As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
Bailout of U.S. Banks Gives British Rum a $2.7 Billion Benefit June 26 (Bloomberg) -- In June 2008, U.S. Virgin Islands Governor John deJongh Jr. agreed to give London-based Diageo Plc billions of dollars in tax incentives to move its production of Captain Morgan rum from one U.S. island -- Puerto Rico -- to another, namely St. Croix. DeJongh says he had no idea his deal would help make the world's largest liquor distiller the most unlikely beneficiary of the emergency Troubled Asset Relief Program approved by Congress just four months later. Today, as two 56-foot-high (17-meter-high) tanks for holding fermenting molasses will soon rise from the ground on the Caribbean island of St. Croix, the extent to which dozens of nonbank companies benefited from last October's emergency financial rescue plan is just beginning to come to light. The hurried legislation adopted by a Congress voting under the threat of sudden global economic collapse led to hidden tax breaks for firms in dozens of industries. They included builders of Nascar auto-racing tracks, restaurant chains such as Burger King Holdings Inc., movie and television producers -- and London's Diageo. "It's kind of like the magician's sleight of hand," says former House Ways and Means Committee Chairman William Thomas, a California Republican who ran the committee from 2001 to 2007 and oversaw all tax legislation. "They snuck these things in a bill that was focused on other things."
June 26 (Bloomberg) -- In June 2008, U.S. Virgin Islands Governor John deJongh Jr. agreed to give London-based Diageo Plc billions of dollars in tax incentives to move its production of Captain Morgan rum from one U.S. island -- Puerto Rico -- to another, namely St. Croix.
DeJongh says he had no idea his deal would help make the world's largest liquor distiller the most unlikely beneficiary of the emergency Troubled Asset Relief Program approved by Congress just four months later.
Today, as two 56-foot-high (17-meter-high) tanks for holding fermenting molasses will soon rise from the ground on the Caribbean island of St. Croix, the extent to which dozens of nonbank companies benefited from last October's emergency financial rescue plan is just beginning to come to light.
The hurried legislation adopted by a Congress voting under the threat of sudden global economic collapse led to hidden tax breaks for firms in dozens of industries. They included builders of Nascar auto-racing tracks, restaurant chains such as Burger King Holdings Inc., movie and television producers -- and London's Diageo.
"It's kind of like the magician's sleight of hand," says former House Ways and Means Committee Chairman William Thomas, a California Republican who ran the committee from 2001 to 2007 and oversaw all tax legislation. "They snuck these things in a bill that was focused on other things."
French president Nicolas Sarkozy, with a good nose for popular moods, says: "We must overhaul everything. We cannot have a system of rentiers and social dumping under globalisation. Either we have justice or we will have violence. It is a chimera to think that this crisis is just a footnote and that we can carry on as before."
Of course rentiers and social dumping are inbuild in NEC and neoliberalism, but he still at least actually uses these words "rentiers" and "social dumping". Easy to blame "globalisation" however. He is still on the right track and hopefully there is, at least, something real behind these words.
http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/5742937/The-unemployment-timebomb- is-quietly-ticking.html
