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May 16, 2010

Telegraph: Economics Latest News. May 16th, 2010


The latest news, analysis and comment on the UK and global economy.

LATEST Economics news

Petrol expected to fuel inflation

Price pressures in Britain are intensifying with annual inflation expected to rise further above the 2pc target when the latest figures are published on Monday.
16 May 2010

Bitter VAT blow for beer drinkers

An increase in VAT to 20pc would cost UK beer drinkers £300m a year, the British Beer and Pub Association (BBPA) has warned.
16 May 2010

Vince Cable to target tax avoidance by businesses

Vince Cable, the new Business Secretary, has placed tackling tax avoidance by businesses at the top of his list of priorities.
16 May 2010

World markets, euro tumble as Europe triggers late sell-off

Global markets and the euro fell heavily in a late sell-off on heightened fears over Europe's sovereign debt crisis.
14 May 2010

Euro at 18-month low as second bomb rocks Greece

Fears intensify that tough new fiscal austerity measures required in some eurozone countries will derail recovery and spark social unrest.
14 May 2010

Euro, global markets fall on austerity impact

The euro hit 18-month lows against the dollar on fears that eurozone reforms would dampen a fragile recovery and spark social unrest.
14 May 2010

Greece may never repay debt, says Deutsche Bank chief

Deutsche Bank's Josef Ackermann said it would require “incredible efforts" to allow crisis-hit Greece ever to pay back its debt in full.
14 May 2010

Telegraph: Finance.- Government Soften on Bank Reeform. May 16th, 2010

Government softens on bank reform 

By Harry Wilson and Philip Aldrick
Published: 8:30PM BST 16 May 2010

Government advisers have dampened the likelihood of a break-up of Britain's major banks in favour of internal reforms in a move that will reassure the City that potentially damaging regulatory change is unlikely.
In a marked change in tone, the Conservatives and Liberal Democrats have taken a far more conciliatory approach on banking reforms since coming to power last week.

New guidelines to govern the interplay between retail banking and investment banking are now more likely than an outright split, according to senior advisers.
Vince Cable, the new Business Secretary and an outspoken critic of the current banking system, has tempered his rhetoric. Speaking to The Daily Telegraph Mr Cable said he recognised "the seriousness of the problem and
the danger of unintended consequences" of draconian measures.
Mr Cable acknowledged that introducing new capital and liquidity rules too early would "reinforce lending problems in the economy".
"There is an inherent dilemma in making the banks more safe and in getting lending to support the real economy," he said.
In its policy document last week, the coalition government pledged to "establish an independent commission to investigate the complex issue of separating retail and investment banking in a sustainable way". But now instead of splitting retail and investment banking activities, advisers are discussing rules on cross-subsidies between the businesses, which would ensure that depositors are protected if the "casino banking" side of a bank gets into trouble.
The restrictions being discussed would mean banks being limited in how much money their retail arms could lend to their investment banking divisions, which in the past have taken advantage of the cheap money to fund their riskier activities.
One adviser described the fear created by last week's announcement of the establishment of a commission as "unhelpful". The prospect of the forced break-up of banks, including Barclays and Royal Bank of Scotland, caused shares in RBS to lose nearly 9pc of their value last week.
"The taxpayer is a large investor in the banking industry and if we are to get that money back, this type of news is not helpful," said one senior insider.
Privately, sources close to the Government admit that the commission is unlikely to be that important to the future shape of the UK banking industry, with Britain unlikely to go it alone on new regulations and likely to follow in large part the lead taken by the US authorities.
Chancellor George Osborne has been in regular conduct with senior US administration officials, including Paul Volcker, the former Federal Reserve chief, Timothy Geithner, the Treasury Secretary, and Larry Summers, director of the National Economic Council.
"The commission is likely to be overtaken by what we see coming out of the US, as well as any EU initiatives, and once the US has decided on something it will be very difficult to go and do something entirely different," said one senior adviser.
Bonuses will be another area in which the Government will be looking for international agreement. Recent reports have indicated that several major City investment banks are looking at ways to circumvent regulations on multi-million pound payouts to staff.

The Washington Post : Today's Highlights: "Uncertainty in an unseen world ". May 16th, 2010

The Washington Post

Uncertainty in an unseen world
In total darkness at the bottom of the Gulf of Mexico lives a creature with many scuttling legs and two wiggling antennae that jut from a pinched, space-alien face. It is the isopod, Bathynomus giganteus , a scavenger of dead and rotten flesh on the mud floor of the gulf.
(By Joel Achenbach, The Washington Post)

Soldier, diplomat and tribal anthropologist: The modern U.S. officer emerges in Afghanistan WAR of persuasion
(By Greg Jaffe, The Washington Post)

A 'Super Tuesday' for both parties
Primaries may reveal level of anti-incumbent anger, strength of 'tea parties'
(By Dan Balz and Chris Cillizza, The Washington Post)

Cathay Pacific plane from HK escorted to Vancouver

Preakness puts the chug-a-lug back in the party -- without going crazy
(By Robert McCartney, The Washington Post)

More Today's Highlights

GOP has big ideas -- under wraps
Billboards advertising the importance of marriage. Shifting coverage of the elderly from Medicare to private insurance companies. Big tax cuts specifically for parents.
(By Perry Bacon Jr., The Washington Post)

Talk shows
(The Washington Post)

Democratic leaders in Indiana put Ellsworth into Senate race
(The Washington Post)

A 'Super Tuesday' for both parties
Primaries may reveal level of anti-incumbent anger, strength of 'tea parties'
(By Dan Balz and Chris Cillizza, The Washington Post)

Oil's sway in Gulf states may temper response to spill
(By Dan Eggen, The Washington Post)

More Politics

A 'Super Tuesday' for both parties
An angry electorate, which already has delivered a series of shocks to the political system, will render a fresh verdict on Washington, incumbency and both party establishments in a slate of high-stakes contests Tuesday that are shaping up to form one of the most important voting days of the year.
(By Dan Balz and Chris Cillizza, The Washington Post)

Uncertainty in an unseen world
Scientists fear the long-term effects of oil spill on ecosystem at the bottom of the gulf
(By Joel Achenbach, The Washington Post)

Soldier, diplomat and tribal anthropologist: The modern U.S. officer emerges in Afghanistan WAR of persuasion
(By Greg Jaffe, The Washington Post)

With city's baby boom, parental guidance suggested
(By Annys Shin, The Washington Post)

BP fails in its latest attempt to contain oil
(By Joel Achenbach and Juliet Eilperin, The Washington Post)

More Nation

Failing all else, Palestinians try boycott
MAALEH ADUMIM, WEST BANK -- In Mishor Adumim, a bougainvillea-lined industrial zone inside this West Bank Jewish settlement, at least 17 businesses have closed since Palestinians began boycotting its products several months ago.
(By Janine Zacharia, The Washington Post)

Thai leader defends crackdown
Bangkok deaths surge as army responds to stepped-up protest
(By Vijay Joshi, The Washington Post)

Soldier, diplomat and tribal anthropologist: The modern U.S. officer emerges in Afghanistan WAR of persuasion
(By Greg Jaffe, The Washington Post)

Brazil, Turkey seek nuclear deal with Iran
(By Thomas Erdbrink, The Washington Post)

5 Va. men facing terrorism charges in Pakistan write of 'noble' motivation
(By Brigid Schulte, The Washington Post)

More World

Program tracks turtles displaced by Intercounty Connector
Twenty-two miles from the future Intercounty Connector, 37 Montgomery County residents who lost homes to the highway's construction feast on butternut squash, apples and lettuce in an upstairs bedroom of Sandy Barnett's Baltimore area house.
(By Katherine Shaver, The Washington Post)

Event gives lift to memories old and new
(By Hamil R. Harris, The Washington Post)

Gimme shellter
Folks stick their necks out for Md. turtles, but ICC highway may be the end of the road
(By Katherine Shaver, The Washington Post)

May 15
(The Washington Post)

Rail work is slicing profits at Tysons
(By Kafia A. Hosh, The Washington Post)

More Metro

A Swiss banker's saga offers a cautionary tale: For spilling secrets to the government, you could be richly rewarded or sent to prison. Or both.
Former Swiss banker Bradley Birkenfeld had secrets he was burning to tell, secrets so profound they could change lives and fortunes, beginning with his own.
(By David S. Hilzenrath, The Washington Post)

Kagan's candor could shape Supreme Court's future
(By Ezra Klein, The Washington Post)

5 things we still don't know about the market plunge
(By Heidi N. Moore, The Washington Post)

Taking a shot at a healthy field for a new career
(By Vickie Elmer, The Washington Post)

Less green from state pension plans in the red
(By Laura Cohn, The Washington Post)

More Business

To compete with cellphones, these cameras try to do it all
You could forgive your digital camera for feeling some of the same anxiety a film camera might have suffered eight years ago.
(By Rob Pegoraro, The Washington Post)

Apped to travel on the fly
Taking a three-day road trip by iPhone alone
(By Ross Arbes, The Washington Post)

The reality is, secrets are hard to keep in social-media age
(By Derrik J. Lang, The Washington Post)

Finding a pared-down smartphone service deal
(By Rob Pegoraro, The Washington Post)

More Technology

Flyers, Canadiens make surprising pair
The upcoming Eastern Conference finals makes for a most unlikely and historic pairing, with the seventh-seeded Flyers getting home ice against the eighth-seeded Canadiens.
(By Tarik El-Bashir, The Washington Post)

Mercury starts title defense with close win
(By Associated Press, The Washington Post)

Johnson has yet to show top form
Four-time defending Cup champion is in six-race drought
(Associated Press, The Washington Post)

Ninth inning proves to be the Orioles' undoing
Kearns's 3-run homer keys 8-run explosion in 8-2 Indians victory
(By baltimore sun, The Washington Post)

Jones makes return, on quite a different stage
Former world-class sprinter, 34, debuts as role player
(By Amy Shipley, The Washington Post)

More Sports

'There was no way to accidentally get her attention'
The day Jen Psaki met Gregory Mecher, she was focused on another man.
(By Ellen McCarthy, The Washington Post)

For couples therapist Andrew Christensen, change isn't always good
(By Ellen McCarthy, The Washington Post)

Oversensitive girlfriend rubs him the wrong way
(By Carolyn Hax, The Washington Post)

Buttressing aging art forms: Architects design for the stage
(By Philip Kennicott, The Washington Post)

Oprah loves her, but Charice wants her tunes to speak to teens
(By Nekesa Mumbi Moody, The Washington Post)

More Style

Modest fixes, important gains
THE ADMINISTRATION IS gingerly exploring ways to give law enforcement officers more latitude when interrogating terrorism suspects . Attorney General Eric H. Holder Jr. has said that existing ground rules -- established for run-of-the-mill criminal matters -- may not work well in all terrorism...
(The Washington Post)

Hard choices
Time to get real about the District's budget.
(The Washington Post)

Excusing child molesters
A Montgomery County judge is too forgiving.
(The Washington Post)

NYT: FGC BOLSA - FGC FINANCIAL SERVICES ALERS.A Scrappy Insurer Wrestles With Reform . May 16th, 2010

The New York 

May 16, 2010

My Alerts


May 16, 2010 Compiled: 1:00 AM


WellPoint has bet heavily on selling health insurance to individuals and small businesses, but it must now deal with the limits of the new health care law.


A Florida institution bellyflopped into a pool of exotic securities just as mortgage mania was faltering.


Cities like Las Vegas, where thousands of new houses sit empty, are building what they do not need.

MarketWatch: Industry- Financial Services.-Chuck Jaffe: " Flash crash" Exposese fund, differences. May 16th, 2010

Chuck Jaffe: 'Flash crash' exposes fund, ETF differences By Chuck Jaffe MarketWatch
5/16/2010 12:01:00 PM

On May 6, as the market was gong berserk, fund investors were in a strange position. If you were nervous and thinking of selling, you were better off unloading a traditional mutual fund. If you were contrarian and looking to buy, you wanted exchange-traded funds. See full story