Merkel pushes through rescue package in step towards tackling the eurozone’s sprawling debt crisis Angela Merkel has successfully corralled her government into voting for the revamped euro bailout fund, asserting her authority as chancellor by pushing through the bill without needing to rely on opposition help. Of 611 MPs present in a highly-charged sitting at the Bundestag on Thursday morning, 523 voted in favour of expanding the powers of the European Financial Stability Facility (EFSF). Under the plan, the EFSF will be enlarged to €440bn (£382bn). It will also be given the ability to give “precautionary loans” to struggling European countries, buy EU government debt, and provide funding to shore up the capital reserves of European banks. The result was a triumph for Germany’s shaky coalition government and marked a major step towards tackling the eurozone’s sprawling sovereign debt crisis. Some analysts, though, argue that more radical measures will be needed . Eighty-five voted against the motion, including 10 from Merkel’s own Christian Democratic bloc and three from the Free Democratic party (FDP), the chancellor’s coalition partners. Most of the “no” voters belonged to the far-left Linke party, who believe the bailout fund will make banks richer and ordinary Europeans poorer. Only three MPs abstained, meaning that Germany in the future will be guaranteeing loans to the EFSF of up to €211bn, rather than €123bn so far. Just a month ago, test votes suggested up to 25 coalition MPs were planning to rebel after polls showed three-quarters of Germans opposed the bill. Had Merkel failed to pass the vote without relying on support from opposition MPs from the Social Democratic (SPD) and Green parties, many analysts believed her position would have been untenable and the coalition would have collapsed. Yet after a night of intense lobbying, a majority of coalition members – 315 – voted in favour of the measure, enough to have ensured its passage even without opposition help. “This shows the clear determination of the coalition on this issue,” Rainer Brüderle, parliamentary leader of Merkel’s junior partner, the Free Democrats, told the n-tv broadcaster after the vote. “We have made an important decision for Europe.” Yet Frank Schäffler, also of the Free Democrats, argued that bailout measures had worsened Greece’s economic situation. “Despite all arguments, the first bailout did not make the situation for Greece better, but worse,” Schäffler said. “Expanding the fund will make the situation even worse.” Though Merkel described the euro before the vote as “our common future” and said approving the beefed-up bailout fund was “of the very, very greatest significance”, discussions went deep into the night Wednesday, in an attempt to win over dissenting members of her governing coalition. On Wednesday, Finland voted in favour of expanding the fund’s powers despite earlier threats to pull out of a rescue plan for Greece. The fund expansion has to be ratified by all 17 eurozone nations to take force. Germany’s upper house of parliament is expected to pass the measure on Friday. European debt crisis Germany Angela Merkel European banks Europe Helen Pidd guardian.co.uk
Continue reading …The Boston Red Sox are in the record books and out of playoff contention after a terrible night capped a terrible September. The Red Sox allowed two ninth-inning runs in a 4-3 loss to the Baltimore Orioles Wednesday night, the AP reports. Minutes after the Red Sox trudged off the…
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Michael Cohen, 42, is stable in hospital after attack by great white shark off Fish Hoek beach in South Africa A British shark attack victim whose leg was bitten off was saved by bystanders who applied a makeshift tourniquet from a wetsuit and two belts, a surgeon has said. Michael Cohen, 42, was attacked by the great white while swimming at Fish Hoek beach in Cape Town, South Africa. He emerged from the water bleeding profusely from his right thigh and left ankle which was also bitten through. A surgeon, Prof Andrew Nichol, said Cohen was critical but stable in hospital after receiving more than seven litres of blood. He paid tribute to those who saved Cohen’s life, saying: “That tourniquet has consisted of a wetsuit applied around the thigh and wrapped around with two belts very, very tightly. It was an amateur tourniquet but it had almost completely resulted in a cessation of blood loss. “I just want to commend the first aid work of those on the beach. The tremendous way in which they responded actually saved the life of this patient.” It is thought those responsible for saving Cohen left the beach without passing on their details. Cohen is believed to be a part-time accountant living in the Cape Town suburb of Plumstead. He was airlifted to Constantiaberg Medi-Clinic where he arrived fully conscious. Medics stabilised him and battled to save his life, taking him into surgery where the tourniquet was removed. Nichol said: “We continued with the resuscitation and stabilisation. In theatre it was fairly obvious that nothing could be done as there was no right lower leg so we just formalised the amputation on that site surgically.” An orthopaedic team was called in to look at Cohen’s left leg because there were worries about blood flow to it, said the professor. Despite the shark cutting through Cohen’s left ankle, painstaking work was done to treat the wound and clean his foot, which was still present. “It is a major injury to his left lower leg,” said Nichol. “With him having lost the right leg it is absolutely imperative we do everything in our power to ensure that left leg remains viable and we will continue to go flat out on that.” Cohen will go back into theatre in 24 hours for his wounds to be assessed and ensure no infection is setting in. The surgeon said he had spoken to Cohen’s parents. “They are obviously extremely traumatised by the whole episode,” he said. It was reported that the beach was closed when Cohen went for a swim and a shark flag, indicating the presence of a great white, was flying. He was said to be the only person in the water. South Africa Wildlife Animals Africa guardian.co.uk
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Figures show gaps in achievement persist between boys and girls, and between poor and more affluent Tens of thousands of seven-year-olds are struggling to master the three Rs, official figures show . The new statistics reveal that after three years of schooling many children can read only the easiest words, such as “cat” or “dog”, and do the very simplest sums. Almost 106,000 seven-year-olds have failed to reach level 2 – the standard expected of the age group – in writing. More than 83,000 pupils have a reading age of a five-year-old or lower. And over 58,000 children are falling behind the expected standard in maths. The figures, published by the Department for Education, are based on teachers’ assessments of pupil achievement at the age of seven. They show that 85% reached the expected level or higher in reading, 81% achieved it in writing, 90% made at least level 2 in maths and 89% reached it in science. These figures are broadly the same as last year. The percentages of pupils achieving level 3 – one above the required standard – in each of these subjects has also remained static this year, except in science, where it dropped from 21% to 20%. The statistics also show that boys are still lagging behind girls. Nearly nine in 10 (89%) seven-year-old girls reached level 2 or higher in reading, compared with 82% of boys. In writing, 87% of girls scored at least level 2 compared with three-quarters (76%) of boys, and in maths there was a gap of three percentage points, with 91% of girls achieving the expected level against 88% of boys. Schools minister Nick Gibb says: “These figures show that many children are doing well. But it is worrying that there are still so many who are behind just three years into their school careers. “Success in later life is founded on an understanding of the 3Rs in the first few years of school. Problems must be identified at a young age and rectified before it is too late.” There is also a gap in achievement between children from disadvantaged backgrounds and their more affluent classmates. Just two-thirds (67%) of pupils on free school meals (FSM) – a measure of poverty – reached level 2 in writing, compared with 85% of all other pupils. And while 88% of all other pupils reached the expected standard in reading, the same was true for only 73% of children eligible for free dinners. In maths, 81% of FSM pupils reached level 2 compared with 92% of other youngsters. Gibb says: “The overriding objective of the government is to close the attainment gap between those from poorer and wealthier backgrounds. “Today’s key stage 1 figures, revealing that a third of boys eligible for free school meals are not reaching the expected level in reading, demonstrates the scale of the challenge and why tackling poor reading is such an urgent priority.” Primary schools The gender gap Schools guardian.co.uk
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Tiangong-1 will be launched over Gobi desert and is a stepping stone towards a bigger, fully-fledged orbiting platform China is preparing to take its building boom into space on Thursday night by putting a first research module – the “Heavenly Palace” – into orbit The unmanned Tiangong-1 laboratory, which will be launched into the skies above the Gobi desert, is a stepping stone towards a bigger, fully-fledged orbiting platform that China expects to be cheaper than the US and European-backed International Space Station. The 10.5m-long cylinder will ride around 220 miles (350km) into space on board a Long March 2F rocket from the Jiuquan satellite launch centre and remain in orbit for two years. It will be used by Chinese scientists and astronauts to practice the rendezvous and docking techniques needed to construct bigger structures in space. The first trial will come later this year, with the launch of another vessel, Shenzhou 8, which will attempt to link up with the lab. If this is successful and life-support systems within the module remain stable, manned missions will be attempted next year and yuhangyuan (astronauts) will spend two weeks inside the narrow structure. Wu Ping, a spokeswoman for China’s manned space programme, said these missions may include the country’s first female astronauts. Following China’s first manned space flight in 2003, the launch of the Tiangong-1 is the second stage in a 10-year programme to build a manned 60-tonne platform, scheduled to come into operation in 2020. This may leave China with the largest mannable presence in space. That title currently belongs to the International Space Station, which is supported by the US, Europe, Russia, Japan and Canada. Although much bigger at 400 tonnes, its future is in doubt due to the high cost of ferrying supplies through space and the economic problems faced by its principle funders. Hopes to draw China into this international programme have so far made little progress due to political differences with the US. When the current commitments expire in 2020, Russian scientists have proposed that it is left to fall into the ocean. Beijing claims its programme is cheaper. While Russia and the US initially practiced docking by sending up two vessels for each trial, China said it saves money by leaving one in space for an extended time. “Tiangong-1′s cost is similar to that of a spaceship. We only need four launches and can experiment with rendezvous and docking three times,” space programme chief designer Zhou Jianping told The China Daily. “The US is still ahead. They sent a man to the moon 40 years ago,” said Fu Song, a professor at the School of Aerospace in Tsinghua University. “But there is the advantage for latecomers. The cost is less and wrong turns can be avoided. If the Tiangong is successful, it will be a significant symbol for the Chinese space industry.” Though based primarily on Russian technology, Chinese scientists say they have enhanced navigation and other systems. The country also has ambitions for a moon landing and deep-space exploration. The Tiangong-1 will provide useful preparation for both, according to Ping. China Space International Space Station Jonathan Watts guardian.co.uk
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Industry plans for £5.6bn of schemes include delivering more than 700 extra train services a day between northern cities Rail chiefs have announced plans to provide better services, improved passenger information and cuts in the cost of running the railwayss. The programme, described as an initial industry plan, covers the period between 2014 and 2019, with the industry aiming to cut rail costs by £1.3bn a year by the end of the decade. Plans include £5.6bn of schemes, including the Northern Hub – a £560m proposal to deliver more than 700 extra services a day between Leeds, Manchester, Liverpool, Newcastle upon Tyne and Sheffield. The programme also includes journey time improvements in the East Midlands, Yorkshire, Bristol and Oxford areas and the electrification of the Midland main line, the north trans-Pennine line and further electrification schemes in Scotland. It also envisages improvements to a number of stations including Fenchurch Street, in London, and Liverpool Central, as well as a £200m scheme to improve services between Inverness and Aberdeen. By better linking Britain’s major cities, an extra 180,000 peak time seats could be provided, as well as a 30% increase in freight. Rail chiefs also announced plans to move from 800 signal boxes to 14 modern signalling centres. The hoped-for schemes – which will need government approval – are in addition to £4.9bn of ongoing projects such as the Thameslink and Crossrail schemes in London and already-announced electrification schemes such as that for the Great Western line. The rail industry also spoke of trying to improve the passenger experience in key areas such as information, comfort and accessibility. The Network Rail group strategy director, Paul Plummer, said: “The railways are booming, with more and more people choosing rail. Closer collaboration within the industry will deliver even more efficiencies. “This revenue growth and improved efficiency taken together provide governments with real choices to consider, choices around the appropriate balance between subsidy, investment and fares.” Michael Roberts, the chief executive of the Association of Train Operating Companies, said: “Rail has a bright future in supporting a successful green economy in the years ahead. “This plan shows how we can do that by providing a better quality of service to growing numbers of passengers at a more affordable cost. “We look forward to working with the government to ensure the right framework is in place to make this possible.” The plan comes as season-ticket holders face average fare rises of 8% in the new year, at a time when passenger numbers are rising on a network where rail costs are seen as too high. Rail transport Transport guardian.co.uk
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Former IMF chief and Tristane Banon who he allegedly attacked in 2003 are jointly questioned by Paris investigators Former IMF chief Dominique Strauss-Kahn met with a Frenchwoman who says he tried to rape her in a face-to-face confrontation, as the two were questioned jointly by investigators deciding whether to pursue the case. The Paris prosecutor’s office is investigating Tristane Banon’s claims that Strauss-Kahn attacked her during an interview for a book in 2003. Strauss-Kahn calls the claims imaginary and slanderous. Banon requested a one-on-one meeting with Strauss-Kahn, which investigators granted. The two arrived at the police station on Thursday morning and did not speak to reporters gathered outside. This kind of confrontation is a practice sometimes used in France to help officials decide if a case is worth pursuing. Strauss-Kahn quit as head of the International Monetary Fund and saw his chances for the French presidency evaporate after a New York hotel maid accused him of attempted rape in May . The US case was later dropped amid questions about the alleged victim’s credibility, but the maid, Nafissatou Diallo, has filed a civil suit. Strauss-Kahn claimed on Monday he has diplomatic immunity and asked a New York court to dismiss the lawsuit. French accuser Banon has also threatened to sue Strauss-Kahn if Paris prosecutors decide not to go forward with a criminal case against him. One challenge for Banon’s case is that the incident in question happened eight years ago. Banon has said that Strauss-Kahn invited her to an empty apartment for the book interview, and they ended up tussling on the floor, with the politician trying to open her jeans and bra and putting his fingers in her mouth and underwear. Banon has defended her decision not to press charges against Strauss-Kahn at the time of the alleged incident. In 2003, she was 23 years old and Strauss-Kahn was an eminence grise of France’s Socialist party. Dominique Strauss-Kahn France Europe guardian.co.uk
Continue reading …Sorry, but this trader’s banking confession was no prank | The Yes Men
September 29, 2011 No Comment
The Yes Men have been blamed for Alessio Rastani’s comments on the financial crisis. But sometimes truth outdoes satire This week, an insignificant market trader and self-proclaimed financial self-help guru, Alessio Rastani, rocketed to stardom after speaking frankly on the BBC about the collapsing market and his plans to make money from it. We Yes Men heard about it right away, because soon after the broadcast, people started emailing from all over the world to congratulate us on another prank well done. They couldn’t imagine that a real trader could possibly speak so candidly about the market, so they assumed Rastani was one of our posturings. He wasn’t. Rastani is small potatoes , but he’s a real trader. And he said nothing that would suggest otherwise; he simply described what he does, more honestly than a true insider would, but quite accurately. “Every night I dream of another recession,” Rastani said, and explained that it’s possible to make huge money from a big crisis even when millions of others lose their life savings, and worse. Well, duh. Don’t we all know that Goldman Sachs bet against the same housing market they were such a big player in, and made $1bn in profit when the sub-prime crisis rendered millions of Americans homeless? John Paulson, the manager whose hedge fund was betting for Goldman, could have honestly said exactly what Rastani said, but of course he knew better – possibly because unlike Rastani, Paulson’s firm had a major, immediate and provable impact, and there’s no telling how his millions of victims might have reacted. Unlike Rastani, true industry insiders like Paulson, Geithner et al remain silent about the way their system works, couching it all in technical jargon and full-on deceit. They’ve been doing it for decades, and, since Ronald Reagan’s day, with increasing consistency. Lately, it hasn’t been working so well. Something has been speaking in very plain language to millions of people. The crowds amassing in cities from New York to Athens to Paris are just the tip of the iceberg, just the most visible of all those who have long known, viscerally, that Rastani’s point of view is actually mainstream. Those people also know that, armed with truth and awareness, anything is possible. As Michael Moore pointed out to those occupying Liberty Plaza near Wall Street, in America it’s just 400 people who own as much as most of the rest of us put together. And when the rest of us decide we really want to change the rules of the game, and take back this country for all the people, those 400 won’t be able to do anything about it. Financial crisis Global recession Banking Goldman Sachs Hedge funds Financial sector The Yes Men guardian.co.uk
Continue reading …Sorry, but this trader’s banking confession was no prank | The Yes Men
September 29, 2011 No Comment
The Yes Men have been blamed for Alessio Rastani’s comments on the financial crisis. But sometimes truth outdoes satire This week, an insignificant market trader and self-proclaimed financial self-help guru, Alessio Rastani, rocketed to stardom after speaking frankly on the BBC about the collapsing market and his plans to make money from it. We Yes Men heard about it right away, because soon after the broadcast, people started emailing from all over the world to congratulate us on another prank well done. They couldn’t imagine that a real trader could possibly speak so candidly about the market, so they assumed Rastani was one of our posturings. He wasn’t. Rastani is small potatoes , but he’s a real trader. And he said nothing that would suggest otherwise; he simply described what he does, more honestly than a true insider would, but quite accurately. “Every night I dream of another recession,” Rastani said, and explained that it’s possible to make huge money from a big crisis even when millions of others lose their life savings, and worse. Well, duh. Don’t we all know that Goldman Sachs bet against the same housing market they were such a big player in, and made $1bn in profit when the sub-prime crisis rendered millions of Americans homeless? John Paulson, the manager whose hedge fund was betting for Goldman, could have honestly said exactly what Rastani said, but of course he knew better – possibly because unlike Rastani, Paulson’s firm had a major, immediate and provable impact, and there’s no telling how his millions of victims might have reacted. Unlike Rastani, true industry insiders like Paulson, Geithner et al remain silent about the way their system works, couching it all in technical jargon and full-on deceit. They’ve been doing it for decades, and, since Ronald Reagan’s day, with increasing consistency. Lately, it hasn’t been working so well. Something has been speaking in very plain language to millions of people. The crowds amassing in cities from New York to Athens to Paris are just the tip of the iceberg, just the most visible of all those who have long known, viscerally, that Rastani’s point of view is actually mainstream. Those people also know that, armed with truth and awareness, anything is possible. As Michael Moore pointed out to those occupying Liberty Plaza near Wall Street, in America it’s just 400 people who own as much as most of the rest of us put together. And when the rest of us decide we really want to change the rules of the game, and take back this country for all the people, those 400 won’t be able to do anything about it. Financial crisis Global recession Banking Goldman Sachs Hedge funds Financial sector The Yes Men guardian.co.uk
Continue reading …Listeria outbreak expected to cause more deaths across US in coming weeks
September 29, 2011 No Comment
Outbreak of listeria in cantaloupe melons from Colorado farm has caused at least 72 illnesses and up to 16 deaths so far An outbreak of listeria in cantaloupe melons in the US may cause more illness and deaths in coming weeks, say health officials. So far, the outbreak has caused at least 72 illnesses and up to 16 deaths, in 18 states, making it the deadliest food outbreak in the country in more than a decade. The Colorado farm where the potentially deadly cantaloupes were traced to, Jensen Farms in Holly, says it shipped fruit to 25 states, and people with illnesses have been discovered in several states that were not on the shipping list. A spokeswoman for Jensen Farms said the company’s product is often sold and resold, so they do not always know where it ends up. “If it’s not Jensen Farms, it’s OK to eat,” said Thomas Frieden, director of the US Centres for Disease Control . “But if you can’t confirm it’s not Jensen Farms, then it’s best to throw it out.” The recalled cantaloupes may be labelled “Colorado Grown,” “Distributed by Frontera Produce,” “Jensenfarms.com” or “Sweet Rocky Fords” but not every recalled cantaloupe is labelled with a sticker, the US Food and Drug Administration said. The company said it shipped out more than 300,000 cases of cantaloupes that contained five to 15 melons each, meaning the recall involved 1.5m to 4.5m pieces of fruit. Frieden and FDA commissioner Margaret Hamburg said that illnesses are expected for weeks to come because the incubation period for listeria can be a month or even longer. Jensen Farms last shipped cantaloupes on 10 September, and the shelf life is about two weeks. “We will see more cases likely through October,” Hamburg said. The FDA said Colorado health officials found listeria in cantaloupes taken from grocers’ and from a victim’s home. Matching strains of the disease were found on equipment and cantaloupe samples at Jensen Farms’ packing facility in Granada, Colorado. Sherri McGarry, a senior adviser in the FDA’s office of foods, said the agency is looking at the farm’s water supply and possible animal intrusions among other things in trying to figure out how the cantaloupes became contaminated. Listeria bacteria grow in moist, muddy conditions and often are carried by animals. The health officials said this is the first known outbreak of listeria in cantaloupe. Listeria generally is found in processed meats and unpasteurised milk and cheese, although there have been a growing number of outbreaks in produce. Hamburg called the outbreak a surprise and said the agencies were studying it closely to find out how it happened. Cantaloupe is often the source of other outbreaks, however. Frieden said CDC had identified 10 other cantaloupe outbreaks in the last decade, most of them salmonella. Listeria is more deadly than well-known pathogens like salmonella and E coli, although those outbreaks generally cause many more illnesses. Listeria generally affects only the elderly, pregnant women and others with compromised immune systems. The CDC said the median age of those struck with illness is 78 and that one in five who contract the disease can die from it. Symptoms include fever and muscle aches, often with other gastrointestinal symptoms. Unlike many pathogens, listeria bacteria can grow at room temperatures and even refrigerator temperatures. It is hardy and can linger long after the source of the contamination is gone; health officials say people who may have had the contaminated fruit in their kitchens should clean and sanitise any surfaces it may have touched. Food safety United States Food guardian.co.uk
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