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Myspace sold for $35m in spectacular fall from $12bn heyday

Five years ago News Corp bought it for US$580m – then it was crushed by Facebook, leaving it at a fraction of its peak value Myspace, once the world’s hottest internet firm, has been sold to an online ad company for around $35m, a fraction of the $100m its parent company was seeking for the ailing social network and billions less than its value five years ago. Rupert Murdoch’s News Corporation bought Myspace in 2005 for $580m. In 2006 Google signed a $900m deal to sell ads on Myspace; by 2007 it had 300m registered users and was being valued at $12bn. But the social network was subsequently crushed by Facebook, which launched a year after Myspace. News Corp put Myspace up for sale this year, engaging investment bank Allen & Co to find a buyer. News had been looking for $100m but settled for $35m offer from advertising targeting firm Specific Media. The sale is believed to be mainly in stock and News Corp will retain a small holding. Myspace is expected to shed more than half of its 500 remaining members of staff as part of the deal. The layoffs follow a 30% staff reduction in April 2010 and a further cut of 47% in January 2011. Two years ago Myspace emplyed more than 1,400 people. Facebook passed Myspace in terms of numbers of users two years ago. As people dropped Myspace, so did advertisers. Market research firm eMarketer estimates that the site will earn about $183m in worldwide ad revenues this year, down from $605m at its peak. The sale comes as a new generation of internet firms are attracting sky-high valuations. Zygna, the online gaming form behind hits including CityVille and FarmVille, is planning an initial public offering (IPO) that could value it at $20bn. LinkedIn, the business-focused social network, has already gone public and is valued at $8.6bn. Next year Facebook is expected to go public – analysts have estimated it could be worth $80bn or more. Myspace News Corporation Internet Social networking Media business Dominic Rushe guardian.co.uk

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Lloyds Banking Group boss unrepentant after revealing 15,000 job cuts

• Total job cuts now almost 45,000 • Unite condemns ‘deplorable’ action • Strategic review hopes to save £1.5bn a year • Halifax to be revamped and open branches on Saturday António Horta-Osório, the new boss of Lloyds Banking Group, was unrepentant on Thursday after announcing 15,000 job cuts at the bailed out bank in an effort to cut costs and return the bank to financial health. On a bleak day for jobs in the banking industry, HSBC is expected to cut up to 1,000 roles later today. But the City welcomed the cost reductions, and Lloyds was the biggest riser in the FTSE 100 in early trading. The shares started 5% higher at 42p – but still well below the 73.6p at which the taxpayer breaks even on its 41% stake. In the face of a furious reaction from unions, the Portuguese-born banker insisted the cuts were necessary. “We have to do this because this bank has been loss making last year. This bank is also making an after tax loss [in the first quarter] this year,” said Horta-Osorio. Some 28,000 roles have already been axed as result of the rescue of HBOS during the 2008 banking crisis and the new round of reductions was met with shock by unions. This takes the toll of job cuts to almost 45,000 since the deal was finalised in early 2009, when HBOS employed 75,000. “Astonishingly one in eight roles will be lost over the next three years,” said David Fleming, Unite national officer. “The conclusion of this review to make 15,000 staff cuts is yet another extreme example of the financial services industry cutting vital staff in a desperate attempt to create a mirage of acceptability following the financial crisis. But this total failure to take significant action to make appropriate changes to rebuild the public confidence in the sector is deplorable,” he said. Ged Nichols, general secretary of the Accord union, said: “Accord knows that LBG employees are extremely concerned by today’s news, not only what it might mean for them and their workmates, but also the possible effect it may have on customer service.”. Horta-Osório stressed that the bank hires 10,000 staff a year and that he hoped that “national attrition and internal deployment” would help achieve the cuts which are expected to target middle managers and back office staff. Since taking the helm on March, he has embarked upon the strategic review which has resulted in the job cuts announced on Thursday which he hopes will achieve £1.5bn of annual savings in 2014, on top of £2bn of savings achieved through integration. Labour rewrote the competition rules to allow Lloyds to rescue HBOS during the banking crisis and the new management is now facing pressure from the independent banking commission to sell of branches to bolster competition on the high street. But Horta-Osório wants to show that the bank can compete with itself. The Halifax brand is to be revamped and relaunched in September with its “irreverent” attitude of the past and all its branches opened on Saturday. “Our aim is to become the best bank for customers. We have around 30 million customers, iconic brands, including Lloyds TSB, Halifax, Bank of Scotland and Scottish Widows, and high-quality, committed people. We will unlock the potential in this franchise over time by creating a simpler, more agile and responsive organisation, and by making substantial investments in better-value products and services for our customers, to deliver strong, stable and sustainable returns for our shareholders.” The bank will have to spend £2.3bn to achieve the cost cuts, which also includes pulling out of half of the 30 countries where it currently has operations by 2014. It is targeting a return on equity of between 12.5% and 14.5% by 2014 and hopes to start paying a dividend again once the EU ban on such payouts is lifted next year. António Horta-Osório Banking Lloyds Banking Group Job losses Jill Treanor guardian.co.uk

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News Corp’s BSkyB bid: Jeremy Hunt gives green light for takeover

Culture secretary says News Corp’s proposal for Sky News to be spun-off from Sky should go ahead to allay plurality fears Jeremy Hunt has confirmed that he plans to give News Corporation’s BSkyB takeover the green light, after nearly four months of negotiations between the culture secretary, Rupert Murdoch’s media company and regulators over spinning off Sky News. The culture secretary said on Thursday that News Corp’s proposal for Sky News to be spun-off from Sky into an independent listed company should go ahead to allay plurality fears. Hunt added that since he gave the News Corp/Sky deal the provisional go ahead in March, a “more robust set of undertakings” had been agreed for the Sky News spin-off. These extra undertakings will now be put out to further consultation, with a deadline of midday on Friday 8 July for interested parties to make submissions to Hunt. The extra measures include having an independent director with senior journalism expertise present at Sky News board meetings where decisions on editorial matters are taken and a requirement for Sky to continue to cross-promote the 24 hour news service on its channels. The other extra undertakings agreed during protracted negotiations between Hunt, News Corp, the Office of Fair Trading and Ofcom are for the appointment of a monitoring trustee whose main role is to ensure that News Corp complies with the undertakings in the run up to spin-off, and a requirement for Sky News’ articles of association to be approved by the culture secretary. “I have considered carefully the points raised and, as at all steps in this process, taken advice from the independent regulators. The regulators have confirmed that the proposed undertakings are still sufficient to ensure media plurality,” Hunt said. “I could have decided to accept the original undertakings but a number of suggestions were made in response to the consultation which could further strengthen the undertakings, particularly around editorial independence, business viability and the articles of association. I am therefore proposing some changes to the undertakings and I will now hold a further public consultation.” Hunt’s clearance fires the starting gun on negotiations with investors in Sky who are pushing for almost £4bn more than the £7.8bn originally offered by News Corp a year ago. The company originally tabled a 700p a share offer when Sky’s share price was under 600p. Since then a continuing strong financial performance – thanks in part to reaping the benefits of investment in areas including high-definition and broadband – and market speculation that Murdoch will be willing to significantly up his bid has seen the company’s share price rocket. Sky’s share price was 848p at the close of the market on Wednesday. The Department for Culture, Media and Sport said it had received more than 40,000 submissions for its consultation on the News Corp/Sky deal, “including a very large number of near-identical responses as a result of internet campaigns”. Hunt also met representatives of rival media companies Trinity Mirror, Guardian Media Group – which publishes the Guardian – Telegraph Media Group and Daily Mail publisher Associated News and Media. These media groups came together in an informal alliance last autumn to oppose the News Corp/Sky takeover, arguing it would stifle media plurality by bringing together the UK’s largest newspaper group, Sun and Times owner News International with a 37% share of the national market, and the largest broadcaster, BSkyB. Hunt also met with law firm Slaughter and May and Avaaz, the campaigning group that has opposed the deal.Hunt gave provisional clearance for the merger in March on the condition that News Corp agreed to spin-off Sky News into a separate company and limit its shareholding in the channel to 39.1%. Initially Hunt said that he would give his final decision by the end of April, following a consultation period. However Ofcom and the Office of Fair Trading, who have been advising Hunt, took longer than anticipated in hammering out a water-tight legal agreement to make sure that Murdoch cannot “get around” clauses designed to ensure Sky News remains independent. Critics of the proposed News Corp/BSkyB deal argue that he has successfully been able to work around previous legal agreements designed to secure the editor’s independence when the Times was acquired in 1981 and when the Wall Street Journal was bought in 2007. Investors including Crispin Odey, founder of Odey Asset Management, which has a 2.7% stake in Sky, and Fidelity are pushing for a price as high as £11 a share. On that basis News Corp would have to find well over £11bn, although the company has already made it clear it does not intend to overpay. There has been speculation that a deal could be reached at about 875p – costing News Corp about £1.8bn more than the original £7.5bn proposal. Under an agreement struck between the two sides when News Corp made its first approach to Sky last June, they will now have five months to reach a deal or Murdoch will have to pay the satellite broadcaster £38.5m. In the first two months of negotiations following Hunt’s approval News Corp needs to get an offer recommended by Sky’s independent directors. Over the next three month period any offer must be subject to a minimum acceptance of 70% of Sky’s shareholders. If a deal is not struck after five months then News Corp stumps up the £38.5m fee and is able to seek a deal requiring just 50.1% shareholder approval. As Murdoch controls just over 39% that means winning over investors controlling 11% of stock. “News Corporation’s leverage over BSkyB gets better over time,” said one City source. News Corporation Media business Jeremy Hunt BSkyB Television industry BSkyB Rupert Murdoch Jason Deans Mark Sweney guardian.co.uk

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Force energy companies to insulate UK homes, climate advisers say

Committee on Climate Change says making energy companies to insulate empty lofts and walls would cut national emissions Energy companies should be forced to insulate every empty loft and cavity wall in the UK within four years, say the government’s climate change advisers. The independent Committee on Climate Change (CCC) says the measure would boost efforts to cut national carbon emissions; in 2010 the number of loft insulations fell by 30% on the previous year. “The government should state this ambition and energy companies should be on the hook to deliver these emissions reductions,” said David Kennedy, the CCC’s chief executive. The coalition’s government’s ” green deal ” proposals to overhaul ageing and leaky homes and reduce consumer energy bills could be a major part of the UK’s action against global warming, says Kennedy, but must have firm targets to be effective. The committee’s recommendations are often accepted by ministers. In the UK, 10m (43%) of all lofts remain unlagged and 8m houses with cavity walls (42%) have yet to be insulated. Kennedy made his call as the CCC launched its legally requiredannual report on progress in cutting greenhouse gases. It found that people were buying less-polluting cars, but the required improvements in environmentally friendly driving had not materialised. Furthermore, delays in building the first carbon capture and storage demonstration plants and boosting use of public transport were damaging efforts to meet the UK’s legally binding carbon targets, the toughest in the world. Christine McGourty, director of Energy UK, which represents the gas and electricity industry, said: “Energy companies have already made a substantial contribution to improving people’s leaky homes. In the past few years, companies have insulated more than 1.5m cavity walls and more than 2m lofts, helping consumers save up to £260 a year on their bills.” According to the CCC report, the number of professional installations of loft and cavity wall insulation fell by 30% between 2009 and 2010. Kennedy blamed this on a “perverse incentive” in the existing scheme for energy companies to help their customers stop heat leaking from their homes, which meant activity stopped when a certain number had been treated. Electricity and gas providers are currently under fire from regulators and consumer groups, who criticise the scores of confusing price tariffs and recent large price rises. Kennedy acknowledged the risk in asking the companies that sell energy to enable their customers to use less. But he said that risk could be overcome if the scheme was carefully designed. “It is very important that someone is on the hook,” he said. “The experience over four decades is that the free market does not deliver home energy-efficiency measures.” Friends of the Earth campaigner Dave Timms agreed the government’s policies “don’t go far enough or fast enough” to meet carbon targets, adding: “For too long energy firms have made huge profits selling ever-increasing amounts of energy while some people freeze in poorly insulated homes. Forcing energy companies to carry out all the necessary energy efficiency improvements is an attractive idea.” A CCC spokesperson added: “Safeguards are needed to ensure energy companies do not pass through excessive costs. Also, compensatory measures may be needed for fuel-poor households.” The CCC report analyses the changes in the UK’s carbon emissions and found that, when the effects of the recent cold winter and the recession were accounted for, the trend was flat. “We are below the level of the 2008-12 budget because of the very big emissions reduction in 2009 due to the recession , not because we had begun to do things fundamentally differently, and we should not be deceived by that,” said Kennedy. A return to business as usual in the economy would mean the UK would exceed its future carbon targets, because they required a 3% cut every year. Changes to car emissions were rated as “good” in the CCC report, with the average pollution by new vehicles down from 160g of CO 2 /km in 2008 to 144g in 2010. But counteracting that was a slight rise in speeding and the prospect of the speed limit being raised to 80mph , which the CCC said would result in 3.5m extra tonnes of CO 2 being emitted each year. Carbon emissions Climate change Energy efficiency Energy Green building Energy bills Consumer affairs Household bills Energy industry Green politics Green deal Committee on Climate Change Damian Carrington guardian.co.uk

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Public sector workers to start mass strike over pensions

David Cameron says pension changes are ‘fair’ as up to 750,000 public servants from four unions prepare for industrial action The coalition government faces the first industrial uprising against its austerity measures today as up to 750,000 public servants strike over planned changes to their pensions. A third of schools are expected to close and two-thirds of universities have cancelled lectures. Benefits will go unpaid, court cases will be postponed, police leave has been cancelled in London and airports are bracing themselves for backlogs at immigration. Mark Serwotka, leader of the Public and Commercial Services union, said it was the most important strike in his union’s history. “Everything we have ever worked for is under attack,” he added. The government was trying to avoid inflaming the situation . David Cameron told the Commons: “What we are proposing is fair: it is fair to taxpayers but it is also fair to the public sector because we want to continue strong public sector pensions.” He said Labour was avoiding the issue, accusing the party of being “paid for by the unions [so] they can’t discuss the unions”. None of the four striking unions, with members in schools, colleges, universities and the civil service, is affiliated to the Labour party. Nearly every other union is poised to move towards strike action by the end of the year if the bitter standoff over public sector pension reforms is not resolved. Roads in central London will shut as thousands of people march in demonstrations that will be echoed across the country. Police leave has been cancelled so officers can cover for striking police community support officers, call handlers on the 999 lines and security staff. Some groups calling for peaceful civil disobedience are planning events in the capital. There were suggestions on the web that anarchists may target the events. Downing Street said it believed only one in five of the 500,000 civil servants would strike and predicted that a third of England’s 24,600 schools would close, a third would partially close and a third would be unaffected. Nearly 8,000 state schools have confirmed that they will either close or reduce lessons. Liverpool will be the worst hit city, with three-quarters of schools affected. In Newcastle, 72% of schools will be short-staffed or closed and in Manchester and Birmingham around half are affected. Up to 20,000 teachers in private schools may also go on strike. BAA said delays and disruption were possible at its airports, as up to 14,000 staff at the UK Border Agency affiliated to the PCS prepared to stage walkouts. UKBA advised airlines this week that passengers should rethink their travel plans amid fears of long queues at passport control, but then appeared to back away from that advice, saying it would work hard to keep delays to a minimum. The PCS said it expected delays at the port of Dover and Heathrow, Manchester and Gatwick airports. Ryanair called on the government to allow the army or police to staff passport booths and customs desks and said what it called union “headbangers” should not be allowed to disrupt flight schedules.

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Postcard From Greece: This Should Not Be About Austerity, It’s About The Future Of Democracy

Given that the Greeks invented democracy, it’s only fitting that they’re now being given the chance to reinvent it. And yes, I know we Greeks have a reputation for mythmaking and drama — but, as I found out during my trip to Greece last week, those really are the stakes. Until I went over and witnessed what’s happening, I too had become convinced that the real issues were the ones the media were obsessively covering: the effects of a potential sovereign default on the Euro and worries about the crisis spreading to other European countries. But here’s the bigger issue: Can a truly democratic movement break the stranglehold of corrupt elites and powerful anti-democratic institutional forces that have come to characterize not just the politics of Greece, but most Western democracies, including our own? Greece is only an extreme example of an unfolding seismic social shift that is challenging democracies the world over. What happens in Greece might very well tell us whether democracy will recover from the crisis of legitimacy exacerbated by the financial crisis or whether it will shrink — undermined by the very forces that brought on the crisis in the first place. It’s way too early to tell whether the forces of democracy will prevail, but I came away extraordinarily moved and heartened by the courage, passion, engagement and dedication I witnessed during a trip in which three different perspectives converged. First and foremost, there was The Square. The happenings in Cairo’s Tahrir Square led the news for weeks earlier this year, but from what we are being shown back in America, you wouldn’t know that there’s a remarkably similar scene unfolding in Athens. Not only are the physical setting, the demographics of the participants, and the way they’re being organized similar to Tahrir Square, but so are the demands being made. In Athens, the place of the moment attracting thousands of people a day is Syntagma Square, situated directly across from the Greek parliament. The movement has become a permanent encampment in Syntagma, with a growing number of people taking up residence in the square, vowing not to leave until their demands are met. Of course, the young are well-represented there — no surprise when unemployment among Greek youth runs as high as 40 percent — but I was struck by the wide range of participants. Young, old, activists, pensioners, unemployed, self-employed, they’re all there, every day and every night. As you’d expect, various political parties and organized groups — some resorting to violence — are trying to co-opt the square. Indeed, on Tuesday, a demonstration of 20,000 protesters that started peacefully disintegrated when a group of mostly young people began hurling stones at the police. As has recently been the case around the world, the protests are being fueled by social media. Given that the Greeks have always been all about connection, expansiveness and intimacy, it’s no surprise that social media have combined with the Greek personality to create a perfect storm of expression, engagement and democracy. According to MRB Hellas, from 2008 to 2010, the number of Greeks using social networks grew by 350 percent. Currently, almost 92 percent have at least one social media account, making it much easier for protests to be coordinated via a Facebook page — “Indignants at Syntagma” (the name taken from the Spanish protest, “los indignados”) — which more than 152,000 people have “liked.” Although social media are being used to connect the square to the rest of the country and help draw people in, once in the square itself, people are using good old face-to-face interaction to connect and organize. As Costas Douzinas, a law professor at the University of London’s Birkbeck Institute, wrote in the Guardian, “the parallels with the classical Athenian agora, which met a few hundred metres away, are striking.” The way it works, explains Reuters’ Renee Maltezou, is this: Every night, the “people’s assembly” gathers and decides, by a show of hands, what will be discussed. A volunteer and rotating “coordinating committee” then gives anybody who wants to speak a slip of paper with a number on it. Speakers speak for two minutes in the order numbers are drawn. The assembled then vote, with results quickly put up on a website. As Douzinas notes, “no issue is beyond proposal and disputation,” and participants include not just students, activists and pensioners, but economists, professors and philosophers. When not debating and voting, they form teams to deal with first aid, garbage collection and communications — there’s even a “keep cool team” to settle disputes. Everywhere I went I was stunned by the level of engagement — it’s not just those physically at the square who are all in. The sense I came away with was that they’re all all in. Waiters, taxi drivers, storekeepers, salespeople, anybody sitting next to you at dinner — they’re all talking about the same thing. “The experience of standing daily and confronting the parliament opposite has changed the politics of Greece for good and made the elites worried for the first time,” writes Douzinas. “Their common demand is that the corrupt political elites who have ruled the country for some 30 years and brought it to the edge of collapse should go.” What happens in Greece is not so different from what has been happening in America: a few profit, but when the chickens come home to roost, the pain is not equally distributed — and what happened is suddenly everybody’s fault. So, yes, there’s a lot of anger and resentment in the square — most of it very justified — but there’s also an incredible amount of hope, and, considering how hard things are for millions of people in Greece, an incredible lack of cynicism. This isn’t just an “anti” protest — there’s a lot of “pro” in it, as well. “What I like about this square is that people discuss things, they express themselves without fear,” said 18-year-old student Stavroula Koloverou. “We want the system to change and we want all traditional politicians out. We want young people suffering in this system who still have dreams to take over.” Still have dreams — it’s a testament to the Greek character when so much of what they’re living through is a nightmare. “They don’t just represent the Greek people, they are the people,” said Peter Bratsis, a lecturer in political theory at the UK’s University of Salford. “It’s beyond the control of the political parties and this is something different.” The second perspective I got on my trip came during dinner with the Greek prime minister, George Papandreou. Even those who don’t follow Greek politics will likely recognize his name. That’s because, as the Financial Times’ Tony Barber explains, Papandreou is a member of the “politikos kosmos,” the “entrenched semi-hereditary political caste that has ruled and misruled Greece for as long as anyone can remember.” Not only was his father Andreas prime minister for two terms, his grandfather held the position for three terms. And the task confronting the son/grandson is one worthy of the great Greek dramatists. As Barber writes, Papandreou must now rescue his country by “dismantling the system of gluttonous patronage and parasitism on the state that his father Andreas constructed.” So far it’s been a rocky road. Assuming office in the middle of the crisis, in 2009, Papandreou’s tenure has been a precarious balancing act of trying to satisfy the draconian demands of the EU while dealing with the increasing unrest and economic misery of his people. The week before I met him, he’d just narrowly survived a vote of no confidence. We met for dinner at Kastelorizo, a restaurant in Kifissia, a suburb of Athens where the prime minister lives and where, as it happens, I was born. We were joined by his wife, Ada, whom he met more than 20 years ago when he was campaigning in Patras in the Peloponnese, where she was born. Eating fresh fish followed by fresh fruit, we talked about the country’s deep-seated problems, but also about all the incredible possibilities. The saying “a crisis is a terrible thing to waste” has never been more true than it is in today’s Greece. The decay has been allowed to fester for so long, nothing short of a major crisis could have precipitated the widespread demands for reform. And though many of the demonstrators camped out at Syntagma are clearly directing their frustrations toward his office, the prime minister spoke about them with understanding and a clear awareness not only of their power and authenticity, but also their potential. Can he harness their energy, idealism, ingenuity and passion? “What they say is correct, we have to change,” he told me. “Corruption is everywhere — and even when we change our laws you cannot eradicate corruption overnight.” He is, he said, trying to make the government more transparent by posting every bill online before it gets voted on by parliament. He’s also posting job listings. “We posted 87 openings,” he told me, “and received 28,000 applications, which created its own problems in the way we handled the avalanche.” But the big problem is that, as he told me, “Greece needs a new narrative.” Whether he can provide that narrative is unclear, but this is clearly a man who chafes at the portrayal of his people that dominates the European media. “There is so much good being done, so much creativity and innovation, that are not getting any attention,” he said, “while everyone is focusing just on what’s dysfunctional.” He went on to talk about a woman who started a snail farm in Milatos that now exports snails around the world. He also told me about a farmer growing olive oil in Kritsa in Crete who branded it Lambda and now sells it at Harrods. “We have such an over-abundance of resources,” he said. The question he’s facing is whether any politician remotely associated with the old guard — however well-intentioned — can be the one to tap into these resources and build on what has been awakened. Yes, Greece is corrupt, and the problems exist at all levels. It’s a place where playing by the rules came to be seen as for suckers only, creating a system of clientelism, in which attaching yourself to a powerful individual or political machine for income was seen as the smart thing to do. But now people are rushing, quite literally, to reengage in civic life. They want to start fresh and awaken the public good. They want a real democracy again. And my daily interactions with Greeks during my visit were a reminder of the incredible talents and abilities and resources that are being wasted. Nevertheless, the media’s focus is on the shrunken and pinched debate about austerity. Instead of a debate about how to tap into the human and natural resources Greece teems with, all we hear is about how deeply services should be cut. Well, the Greeks don’t do pinched well. They’re an expansive lot, and if any people can pry open this dangerously narrow debate with their humanity, it’s the Greeks. Because this isn’t just a policy debate — it’s a debate about what the big outlines of what we call democracy are going to be for the next century. The forces of the status quo would have you believe austerity is the answer — that it’s the answer in Greece, the answer in Spain, the answer in the UK and the answer in the U.S. But it’s also clear that it’s not just the Greeks who want something more out of civic life than they’re currently getting. In fact, austerity is not the answer even in the purely economic debate. As the Guardian’s Michael Burke shows, the problem Greece is facing isn’t due to too much spending. “Falling taxation revenues are the problem,” he writes, “as the cuts themselves have sent the economy into a tailspin.” He also explodes another Greek myth (the non-ancient kind) prevalent in Europe right now — that the Greeks are lazy, and that’s what brought their problems on. As he notes, Greeks work the second-longest weekly hours of any workers in Europe and have the highest level of weekend hours worked. Which brings me to the third perspective of my trip — inspired by the Special Olympics. I was privileged to attend the opening days of the group’s World Summer Games as the guest of Coca-Cola CEO Muhtar Kent, who serves on the Special Olympics board. If you ever have the chance to go to a Special Olympics event, please do so, as your life will be much richer for it. I was especially struck by the words of His All Holiness, Bartholomew I, the head of the Eastern Orthodox Church. In a small gathering he held with some of the athletes, he called the games “an extraordinary invitation to healing.” And watching the opening ceremonies, it was clear he wasn’t talking just about the athletes. Sharing in the triumph of the human spirit overcoming adversity is indeed healing. And what’s going on in Greece right now, to paraphrase the Patriarch, is an extraordinary invitation to reengage. It’s a moment to tap into what’s best about us, to connect those who, as the student in Syntagma Square said, “still have dreams,” and, together, overcome massive challenges. As Tim Shriver, who heads the Special Olympics, put it at the lighting of the Olympic torch at the 45,000-seat Kallimarmaro stadium, which hosted the first modern Olympic Games in 1896: “Despite all the difficulties and challenges this country is facing, Greece did not fail us, and the athletes of Special Olympics will not fail Greece.” He then called for a “dignity revolution where there’s no more us and them” — a sentiment that clearly has a wider resonance given all that is going on in Greece, as did his declaration the day before on the Parthenon: “There’s a stiff wind out here, but we will prevail.” I hope with all my heart that Greece will, too. And not just because that’s where I was born and raised, but because the Greeks’ struggle — the struggle to reclaim democracy — is our struggle, too.

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Barack Obama tells Republicans to take on sacred cows over borrowing talks

President warns of ‘significant consequences’ if Congress fails to permit more borrowing and US defaults on debts Barack Obama has warned of “significant consequences” for the US economy if stalled financial negotiations lead to Congress failing to permit more government borrowing and America defaults on its debts. The president, in a rare hour-long news conference, called on Republicans to “take on their sacred cows” – including tax breaks for “millionaires and billionaires, oil companies and corporate jet owners” – in reaching a deal on Congress legislating an increase in government borrowing from the present $14.3tn (£8.9tn) limit, without which the US may be unable to meet its obligations within weeks. Negotiations have been deadlocked over the insistence of the Democratic leadership that budget cuts must be accompanied by tax increases in order to reduce the debt. Republican congressional leaders say that the party did not win control of the House of Representatives in last November’s midterm elections on a platform of scaling back government only to increase taxes. Obama has said that if agreement is not reached by early August, then the US risks default – a blow to international confidence in the American economy – and seeing its credit rating downgraded, which would make borrowing more expensive. “August 2 is a very important date, and there is no reason why we can’t get this done now,” he said. “This is not a technical problem anymore. This is a matter of Congress going ahead and biting the bullet and making tough decisions because we know what the decisions are.” Obama said more than $1tn in cuts have already been agreed but that other areas of the budget, including defence spending – considered untouchable by some Republicans – must be scrutinised. He said that retaining tax breaks for the wealthy will be at the expense of programmes for the less privileged. “We’ve got to make some tough choices here,” he said. The president called on Republicans to put aside soundbite politics and act in the interests of the country. “A lot of people say a lot of things to satisfy their base or to get on cable news,” he said. “Hopefully, leaders at a certain point rise to the occasion and do the right thing for the American people. That is what I expect to happen this time. Call me naive, but my expectation is leaders are going to lead.” The president criticised the Republicans’ tactic of stepping back from negotiations when things don’t go their way and then blaming him for lack of leadership, saying it “is just not on the level”. Obama defended himself against charges that he has failed to show leadership. “I’ve already shown I’m prepared to make decisions that are very tough and will give my base of voters further reason to give me a hard time,” he said. The president also criticised a largely symbolic vote in Congress against US involvement in Libya. “We have engaged in a limited operation to help a lot of people against one of the worst tyrants in the world,” he said. “We should be sending out a unified message to this guy that he should step down and give his people a fair chance to live their lives without fear. And this suddenly becomes the cause celebre for folks in Congress? Come on.” Obama repeated his defence of military action in Libya without congressional approval, saying once again that he does not believe the limited American involvement reaches the scale of conflict defined by the War Powers Resolution. Asked if that law is constitutional, he sidestepped the issue by saying that it was not relevant to the Libya intervention. “I don’t have to get to the question,” he said. The president also sidestepped a question about whether he supports the legalisation of same-sex marriage, after the New York state legislature voted to do so last week. Obama said the New York decision is a “good thing” because it was the result of the democratic process. “What I’ve seen happen over the last several years and what happened in New York last week, I think, was a good thing,” he said. “I think that’s how things should work.” But he declined to endorse same-sex marriages when asked if he “personally” is in favour of legalising them. “I’m not going to make news on that today. Good try though,” he said. US politics US Government borrowing Barack Obama US economy Republicans Economics United States Chris McGreal guardian.co.uk

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Barack Obama tells Republicans to take on sacred cows over borrowing talks

President warns of ‘significant consequences’ if Congress fails to permit more borrowing and US defaults on debts Barack Obama has warned of “significant consequences” for the US economy if stalled financial negotiations lead to Congress failing to permit more government borrowing and America defaults on its debts. The president, in a rare hour-long news conference, called on Republicans to “take on their sacred cows” – including tax breaks for “millionaires and billionaires, oil companies and corporate jet owners” – in reaching a deal on Congress legislating an increase in government borrowing from the present $14.3tn (£8.9tn) limit, without which the US may be unable to meet its obligations within weeks. Negotiations have been deadlocked over the insistence of the Democratic leadership that budget cuts must be accompanied by tax increases in order to reduce the debt. Republican congressional leaders say that the party did not win control of the House of Representatives in last November’s midterm elections on a platform of scaling back government only to increase taxes. Obama has said that if agreement is not reached by early August, then the US risks default – a blow to international confidence in the American economy – and seeing its credit rating downgraded, which would make borrowing more expensive. “August 2 is a very important date, and there is no reason why we can’t get this done now,” he said. “This is not a technical problem anymore. This is a matter of Congress going ahead and biting the bullet and making tough decisions because we know what the decisions are.” Obama said more than $1tn in cuts have already been agreed but that other areas of the budget, including defence spending – considered untouchable by some Republicans – must be scrutinised. He said that retaining tax breaks for the wealthy will be at the expense of programmes for the less privileged. “We’ve got to make some tough choices here,” he said. The president called on Republicans to put aside soundbite politics and act in the interests of the country. “A lot of people say a lot of things to satisfy their base or to get on cable news,” he said. “Hopefully, leaders at a certain point rise to the occasion and do the right thing for the American people. That is what I expect to happen this time. Call me naive, but my expectation is leaders are going to lead.” The president criticised the Republicans’ tactic of stepping back from negotiations when things don’t go their way and then blaming him for lack of leadership, saying it “is just not on the level”. Obama defended himself against charges that he has failed to show leadership. “I’ve already shown I’m prepared to make decisions that are very tough and will give my base of voters further reason to give me a hard time,” he said. The president also criticised a largely symbolic vote in Congress against US involvement in Libya. “We have engaged in a limited operation to help a lot of people against one of the worst tyrants in the world,” he said. “We should be sending out a unified message to this guy that he should step down and give his people a fair chance to live their lives without fear. And this suddenly becomes the cause celebre for folks in Congress? Come on.” Obama repeated his defence of military action in Libya without congressional approval, saying once again that he does not believe the limited American involvement reaches the scale of conflict defined by the War Powers Resolution. Asked if that law is constitutional, he sidestepped the issue by saying that it was not relevant to the Libya intervention. “I don’t have to get to the question,” he said. The president also sidestepped a question about whether he supports the legalisation of same-sex marriage, after the New York state legislature voted to do so last week. Obama said the New York decision is a “good thing” because it was the result of the democratic process. “What I’ve seen happen over the last several years and what happened in New York last week, I think, was a good thing,” he said. “I think that’s how things should work.” But he declined to endorse same-sex marriages when asked if he “personally” is in favour of legalising them. “I’m not going to make news on that today. Good try though,” he said. US politics US Government borrowing Barack Obama US economy Republicans Economics United States Chris McGreal guardian.co.uk

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Is US TV too leftwing?

A new book claims that many of America’s top TV shows have followed a leftwing agenda. Could it be equally true in Britain? The news that a publishing division owned by Rupert Murdoch has released a book accusing American TV of liberal bias might sound deeply unsurprising. The belief that NBC, CBS and ABC promote values closer to Democrat beliefs than Republican views is long-established, hard to dispute by objective observation and has already resulted, under the US’s free-market TV system, in the rise of Murdoch’s Fox News as a deliberately conservative opposition. But Primetime Propaganda , by Ben Shapiro, merits more attention because it considers not the traditional ideological battleground of news and factual programming but fiction and comedy: M*A*S*H , Friends , Happy Days and so on. And, on this occasion, the allegation of deliberate leftist spin is not merely being asserted by a rightwing commentator but apparently accepted by the makers of the programmes. Shapiro talks to dozens of executives and show-runners who are quoted as cheerfully admitting to having been engaged in social engineering, justifying, for him, the subtitle: The True Hollywood Story of How the Left Took Over Your

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Wimbledon 2011: Andy Murray makes short work of Feliciano López

• No4 seed wins 6-3, 6-4, 6-4 • Scot will play winner of Rafael Nadal v Mardy Fish next Andy Murray reached the Wimbledon semi-finals for the third successive year with a routine 6-3, 6-4, 6-4 victory over the unseeded Spaniard Feliciano López. The first two sets were as comfortable as the No4 seed could possibly have expected at this stage of a grand slam, with Murray playing very well but receiving a significant amount of help from his opponent. Murray wrapped up the first set comfortably, piling the pressure on Lopez and taking the set 6-3. López is a talented player on grass and making his third appearance in the Wimbledon quarter-finals – and he had been hugely impressive in a straight-sets win over Andy Roddick in the third round but few were predicting another upset here. The only surprise was that it took Murray until the sixth game to engineer a break point. And then he needed three before he did finally move ahead, López netting an attempted drop shot. The Scot was on cruise control, and he could even afford to miss three set points in López’s next service game before clinching it on his fifth chance when his spanked a forehand into the net. Murray remained totally focused and a superb passing shot brought up another break point in the third game of the second set but López, who has served more aces in the tournament than anyone else, quickly shut the door. The Spaniard was bound to be feeling the effects of a lengthy five-set match against Lukasz Kubot in round four, where he had fought back from two sets down, and his right thigh was heavily taped up. A forehand volley dumped into the net gave Murray a break for 3-2, and from there he was utterly untroubled, clinching the set 6-4 courtesy of yet another unforced error from López The Spaniard finally made a game of it in the third set, forcing his first deuce and then his only break points, but the Scot held firm to stay on course for a first grand slam title. Murray had lost only eight points on his serve in the first two sets, and never more than two in a single game, but there were signs at the start of the third that things might be changing. López took his opponent to deuce for the first time in game three, finally stringing a series of good shots together, but his revival was quickly curtailed by another Murray break. It took the 24-year-old at his best, with a forehand winner down the line followed by a stunning pass on the run. Murray held to make it 4-2 without too many problems, but he began to grimace and struggle a little with his movement. He did not summon the trainer but in the eighth game he found himself facing his first break points of the match. López, though, could not take advantage, and three successive aces helped Murray wrap up a simple victory. Murray will face the winner of the quarter-final between Rafael Nadal and Mardy Fish for a place in the final Andy Murray Wimbledon 2011 Wimbledon Tennis guardian.co.uk

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