Jittery traders focus on ‘safe haven’ investments as collapsing shares fuel panic at the exchanges Fresh turmoil on the world’s financial markets on Friday saw gold rise to record levels, the dollar sink to its lowest-ever level against the Japanese yen, and share prices gyrate wildly in Europe and North America. A day of rumours and extreme nervousness saw shares in Britain’s biggest companies lose all the gains in the market seen since the FTSE 100 index bottomed out on 11 August. Despite an afternoon rally, prompted by speculation that the US Federal Reserve was about to hold an emergency meeting to tackle the growing sense of market panic, the FTSE closed 51.47 points down at 5040.76, a decline of 1%. The Dow Jones industrial average also lost confidence later in the day as no announcement from the Fed was forthcoming and closed down 172.93 at 10,817.65, a fall of 1.6%. Earlier, London shares had collapsed after Thursday’s heavy selling on Wall Street prompted steep falls on Asian bourses. Fears that the global economy was heading for a double-dip recession, and signs that Europe’s bailout of Greece could collapse, saw the FTSE lose more than 3% of its value at one stage, sending it well below the 5000 mark. The steadier start to trading on Wall Street helped calm nerves in the City at the end of another frenetic week that saw markets once again focus on their two major concerns: growth and the fragility of Europe’s single currency. “This week has seen a continuation of the trend of weaker than expected data and political reaction to the European problems which pretty much amounts to ‘let’s have a get-together a couple of times a year’,” said Gary Jenkins, an analyst at Evolution Securities. The jittery atmosphere sent investors heading once again to the safe havens of the Swiss franc, the Japanese yen and gold. Bullion rose as high as $1,881 an ounce, with some dealers expecting it to test the $2,000 an ounce level over the coming weeks. On the foreign exchanges, the dollar dropped to just under ¥76 against the Japanese currency and was also down against the Swiss franc and the pound. The dollar’s fall helped underpin oil prices, with a barrel of Brent crude trading almost $2 higher at just under $109 a barrel. Switzerland’s two biggest banks, UBS and Credit Suisse, have denied that they made use of the Federal Reserve’s swap facility via the Swiss National Bank, insisting they have no liquidity problems. There had been speculation that a Swiss bank had accessed the US liquidity facility via a $200m repurchase transaction with the SNB last week. Evangelos Venizelos, Greece’s finance minister, said his country’s €109bn bail-out was not in doubt, despite the fissures within Europe being laid bare by the demands of five countries for collateral in exchange for paying into a rescue fund for the weaker countries in the monetary union. Venizelos also said the recession in his financially troubled country could be deeper than originally predicted for this year, with output potentially shrinking by more than 4.5%. His comments came a day after the Netherlands, Slovenia, Austria and Slovakia said on Thursday they wanted hundreds of millions of euros in collateral, in the same vein as Finland, which struck a deal with the Greek government earlier in the week to receive cash as security for its part of the bailout. Brussels sought to ease fears by stressing that Olli Rehn, Europe’s economic and monetary affairs commissioner, was looking at a plan for common European bonds, seen as a step towards closer financial integration among the 17 single-currency nations. European banking shares fell to near two-and-a-half-year lows, dragged down by rumours about banks’ potential losses on bonds issued by heavily indebted governments. Earlier, Asian shares took a beating, with Japan’s Nikkei 225 index dropping 2.5% to 8719.24 and Hong Kong’s Hang Seng down 3.1% to 19,399.92. Concerns that weak growth in Europe and the US would hit China’s exports affected sentiment in Shanghai, where the stock market’s composite index ended 1% lower at 2534.6 after dipping almost 2% earlier in the day. Some strategists said it was a good time to pick up stocks cheaply. Nick Bubb, retail analyst at Arden Partners, said: “If you want to buy when there’s blood on the streets, and on the screens, then today is a good day to pick up good quality, high-yielding general retail defensives like Marks & Spencer and WH Smith, as well as undervalued global retailers like Inchcape and Kingfisher. And in the food retailers, we wouldn’t want to be short of Wm Morrison, ahead of its interims on 8 September.” Investors continued to swap risky investments for those viewed as safe. The yield on the benchmark 10-year US Treasury bill rose, but only slightly, to 2.10%, after hitting a record low of just below 2% on Thursday. Bond yields fall as their prices rise in line with demand. Stock markets European debt crisis European banks Economic growth (GDP) Economics US economic growth and recession Global recession Global economy Commodities Bonds Currencies Financial crisis Banking Larry Elliott Julia Kollewe guardian.co.uk
Continue reading …Jittery traders focus on ‘safe haven’ investments as collapsing shares fuel panic at the exchanges Fresh turmoil on the world’s financial markets on Friday saw gold rise to record levels, the dollar sink to its lowest-ever level against the Japanese yen, and share prices gyrate wildly in Europe and North America. A day of rumours and extreme nervousness saw shares in Britain’s biggest companies lose all the gains in the market seen since the FTSE 100 index bottomed out on 11 August. Despite an afternoon rally, prompted by speculation that the US Federal Reserve was about to hold an emergency meeting to tackle the growing sense of market panic, the FTSE closed 51.47 points down at 5040.76, a decline of 1%. The Dow Jones industrial average also lost confidence later in the day as no announcement from the Fed was forthcoming and closed down 172.93 at 10,817.65, a fall of 1.6%. Earlier, London shares had collapsed after Thursday’s heavy selling on Wall Street prompted steep falls on Asian bourses. Fears that the global economy was heading for a double-dip recession, and signs that Europe’s bailout of Greece could collapse, saw the FTSE lose more than 3% of its value at one stage, sending it well below the 5000 mark. The steadier start to trading on Wall Street helped calm nerves in the City at the end of another frenetic week that saw markets once again focus on their two major concerns: growth and the fragility of Europe’s single currency. “This week has seen a continuation of the trend of weaker than expected data and political reaction to the European problems which pretty much amounts to ‘let’s have a get-together a couple of times a year’,” said Gary Jenkins, an analyst at Evolution Securities. The jittery atmosphere sent investors heading once again to the safe havens of the Swiss franc, the Japanese yen and gold. Bullion rose as high as $1,881 an ounce, with some dealers expecting it to test the $2,000 an ounce level over the coming weeks. On the foreign exchanges, the dollar dropped to just under ¥76 against the Japanese currency and was also down against the Swiss franc and the pound. The dollar’s fall helped underpin oil prices, with a barrel of Brent crude trading almost $2 higher at just under $109 a barrel. Switzerland’s two biggest banks, UBS and Credit Suisse, have denied that they made use of the Federal Reserve’s swap facility via the Swiss National Bank, insisting they have no liquidity problems. There had been speculation that a Swiss bank had accessed the US liquidity facility via a $200m repurchase transaction with the SNB last week. Evangelos Venizelos, Greece’s finance minister, said his country’s €109bn bail-out was not in doubt, despite the fissures within Europe being laid bare by the demands of five countries for collateral in exchange for paying into a rescue fund for the weaker countries in the monetary union. Venizelos also said the recession in his financially troubled country could be deeper than originally predicted for this year, with output potentially shrinking by more than 4.5%. His comments came a day after the Netherlands, Slovenia, Austria and Slovakia said on Thursday they wanted hundreds of millions of euros in collateral, in the same vein as Finland, which struck a deal with the Greek government earlier in the week to receive cash as security for its part of the bailout. Brussels sought to ease fears by stressing that Olli Rehn, Europe’s economic and monetary affairs commissioner, was looking at a plan for common European bonds, seen as a step towards closer financial integration among the 17 single-currency nations. European banking shares fell to near two-and-a-half-year lows, dragged down by rumours about banks’ potential losses on bonds issued by heavily indebted governments. Earlier, Asian shares took a beating, with Japan’s Nikkei 225 index dropping 2.5% to 8719.24 and Hong Kong’s Hang Seng down 3.1% to 19,399.92. Concerns that weak growth in Europe and the US would hit China’s exports affected sentiment in Shanghai, where the stock market’s composite index ended 1% lower at 2534.6 after dipping almost 2% earlier in the day. Some strategists said it was a good time to pick up stocks cheaply. Nick Bubb, retail analyst at Arden Partners, said: “If you want to buy when there’s blood on the streets, and on the screens, then today is a good day to pick up good quality, high-yielding general retail defensives like Marks & Spencer and WH Smith, as well as undervalued global retailers like Inchcape and Kingfisher. And in the food retailers, we wouldn’t want to be short of Wm Morrison, ahead of its interims on 8 September.” Investors continued to swap risky investments for those viewed as safe. The yield on the benchmark 10-year US Treasury bill rose, but only slightly, to 2.10%, after hitting a record low of just below 2% on Thursday. Bond yields fall as their prices rise in line with demand. Stock markets European debt crisis European banks Economic growth (GDP) Economics US economic growth and recession Global recession Global economy Commodities Bonds Currencies Financial crisis Banking Larry Elliott Julia Kollewe guardian.co.uk
Continue reading …
“It was not about the question of gay marriage… it was the very inappropriate, creepy line of questioning leading up to that.” — CHRISTINE O’DONNELL, explaining why she walked off of an interview with CNN’s Piers Morgan Wednesday night. She also said the host’s questions about her social values were “borderline sexual harassment.” (via MSNBC)
Continue reading …Jittery traders focus on ‘safe haven’ investments as collapsing shares fuel panic at the exchanges Fresh turmoil on the world’s financial markets on Friday saw gold rise to record levels, the dollar sink to its lowest-ever level against the Japanese yen, and share prices gyrate wildly in Europe and North America. A day of rumours and extreme nervousness saw shares in Britain’s biggest companies lose all the gains in the market seen since the FTSE 100 index bottomed out on 11 August. Despite an afternoon rally, prompted by speculation that the US Federal Reserve was about to hold an emergency meeting to tackle the growing sense of market panic, the FTSE closed 51.47 points down at 5040.76, a decline of 1%. The Dow Jones industrial average also lost confidence later in the day as no announcement from the Fed was forthcoming and closed down 172.93 at 10,817.65, a fall of 1.6%. Earlier, London shares had collapsed after Thursday’s heavy selling on Wall Street prompted steep falls on Asian bourses. Fears that the global economy was heading for a double-dip recession, and signs that Europe’s bailout of Greece could collapse, saw the FTSE lose more than 3% of its value at one stage, sending it well below the 5000 mark. The steadier start to trading on Wall Street helped calm nerves in the City at the end of another frenetic week that saw markets once again focus on their two major concerns: growth and the fragility of Europe’s single currency. “This week has seen a continuation of the trend of weaker than expected data and political reaction to the European problems which pretty much amounts to ‘let’s have a get-together a couple of times a year’,” said Gary Jenkins, an analyst at Evolution Securities. The jittery atmosphere sent investors heading once again to the safe havens of the Swiss franc, the Japanese yen and gold. Bullion rose as high as $1,881 an ounce, with some dealers expecting it to test the $2,000 an ounce level over the coming weeks. On the foreign exchanges, the dollar dropped to just under ¥76 against the Japanese currency and was also down against the Swiss franc and the pound. The dollar’s fall helped underpin oil prices, with a barrel of Brent crude trading almost $2 higher at just under $109 a barrel. Switzerland’s two biggest banks, UBS and Credit Suisse, have denied that they made use of the Federal Reserve’s swap facility via the Swiss National Bank, insisting they have no liquidity problems. There had been speculation that a Swiss bank had accessed the US liquidity facility via a $200m repurchase transaction with the SNB last week. Evangelos Venizelos, Greece’s finance minister, said his country’s €109bn bail-out was not in doubt, despite the fissures within Europe being laid bare by the demands of five countries for collateral in exchange for paying into a rescue fund for the weaker countries in the monetary union. Venizelos also said the recession in his financially troubled country could be deeper than originally predicted for this year, with output potentially shrinking by more than 4.5%. His comments came a day after the Netherlands, Slovenia, Austria and Slovakia said on Thursday they wanted hundreds of millions of euros in collateral, in the same vein as Finland, which struck a deal with the Greek government earlier in the week to receive cash as security for its part of the bailout. Brussels sought to ease fears by stressing that Olli Rehn, Europe’s economic and monetary affairs commissioner, was looking at a plan for common European bonds, seen as a step towards closer financial integration among the 17 single-currency nations. European banking shares fell to near two-and-a-half-year lows, dragged down by rumours about banks’ potential losses on bonds issued by heavily indebted governments. Earlier, Asian shares took a beating, with Japan’s Nikkei 225 index dropping 2.5% to 8719.24 and Hong Kong’s Hang Seng down 3.1% to 19,399.92. Concerns that weak growth in Europe and the US would hit China’s exports affected sentiment in Shanghai, where the stock market’s composite index ended 1% lower at 2534.6 after dipping almost 2% earlier in the day. Some strategists said it was a good time to pick up stocks cheaply. Nick Bubb, retail analyst at Arden Partners, said: “If you want to buy when there’s blood on the streets, and on the screens, then today is a good day to pick up good quality, high-yielding general retail defensives like Marks & Spencer and WH Smith, as well as undervalued global retailers like Inchcape and Kingfisher. And in the food retailers, we wouldn’t want to be short of Wm Morrison, ahead of its interims on 8 September.” Investors continued to swap risky investments for those viewed as safe. The yield on the benchmark 10-year US Treasury bill rose, but only slightly, to 2.10%, after hitting a record low of just below 2% on Thursday. Bond yields fall as their prices rise in line with demand. Stock markets European debt crisis European banks Economic growth (GDP) Economics US economic growth and recession Global recession Global economy Commodities Bonds Currencies Financial crisis Banking Larry Elliott Julia Kollewe guardian.co.uk
Continue reading …Dean Baker On Super Committee Dems: ‘If They’d Bothered To Do Their Damn Jobs,’ We Wouldn’t Be In This Mess
August 19, 2011 No CommentEconomist Dean Baker really lets John Kerry, Patty Murray and Max Baucus have it for the column that appeared in the Wall St. Journal this week — but he’s especially savage with Kerry: Senator John Kerry, along with the two other Democratic senators appointed to the “Super Committee”, had a column in the Wall Street Journal yesterday on their approach to the committee’s work. This piece is infuriating for its empty platitudes and the refusal to acknowledge economic reality. In just 700 words the piece promulgated 3 major economic myths while ignoring the fundamental truths about the economy and the budget. The reason that we actually had a $240 billion surplus (2.4 percent of GDP) in 2000 was that the United States had a stock bubble propelled boom at the end of the decade. This caused the economy to grow much more rapidly than CBO expected with the unemployment rate falling to 4.0 percent in 2000, rather than the 6.0 percent predicted by CBO. Do the senators not remember the stock bubble? In addition to promoting these false stories about the economy and the budget, the senators fail to tell the true story. The large deficits the country currently faces are not the result of an ongoing pattern of excessive profligacy. They are the result of the economy’s plunge following the collapse of the housing bubble. Even with the cost of the wars, the Medicare drug benefit and the Bush tax cuts, the projected deficits were relatively modest prior to the collapse of the housing bubble. The true story is that our deficit problem is really an economic problem – we let a huge housing bubble grow, which would inevitably collapse and sink the economy. The deficit is needed now to make up for the $1.2 trillion loss in annual demand from the private sector, which had been generated by the housing bubble. The bubble had led to booms to both construction and consumption that have gone bust now that house prices have crashed. Senator Kerry deserves special blame in this story because he could never be bothered to pay attention to the housing bubble, even when he was running for president in 2004. I recall urging his campaign staffers to pay attention to the bubble. It was like talking to Barney Frank’s dining room table. Of course Robert Rubin was one of Kerry’s top economic advisers. Rubin was making tens of millions of dollars at Citigroup whose profits were derived largely from marketing subprime junk loans. So perhaps it is not surprising that Kerry had little interest in learning anything about the housing bubble. Still it is more than a bit infuriating that Senator Kerry and his colleagues would now be lecturing the country on the need for hard choices. If they could have been bothered to do their damn jobs just a few years ago, we would not be in this situation today. As a result of their failure, tens of millions of workers are unemployed or underemployed. Yet the senators, who are still drawing their paychecks, want the country to sacrifice even more. Maybe now they can be persuaded to learn a little economics.
Continue reading …Dean Baker On Super Committee Dems: ‘If They’d Bothered To Do Their Damn Jobs,’ We Wouldn’t Be In This Mess
August 19, 2011 No CommentEconomist Dean Baker really lets John Kerry, Patty Murray and Max Baucus have it for the column that appeared in the Wall St. Journal this week — but he’s especially savage with Kerry: Senator John Kerry, along with the two other Democratic senators appointed to the “Super Committee”, had a column in the Wall Street Journal yesterday on their approach to the committee’s work. This piece is infuriating for its empty platitudes and the refusal to acknowledge economic reality. In just 700 words the piece promulgated 3 major economic myths while ignoring the fundamental truths about the economy and the budget. The reason that we actually had a $240 billion surplus (2.4 percent of GDP) in 2000 was that the United States had a stock bubble propelled boom at the end of the decade. This caused the economy to grow much more rapidly than CBO expected with the unemployment rate falling to 4.0 percent in 2000, rather than the 6.0 percent predicted by CBO. Do the senators not remember the stock bubble? In addition to promoting these false stories about the economy and the budget, the senators fail to tell the true story. The large deficits the country currently faces are not the result of an ongoing pattern of excessive profligacy. They are the result of the economy’s plunge following the collapse of the housing bubble. Even with the cost of the wars, the Medicare drug benefit and the Bush tax cuts, the projected deficits were relatively modest prior to the collapse of the housing bubble. The true story is that our deficit problem is really an economic problem – we let a huge housing bubble grow, which would inevitably collapse and sink the economy. The deficit is needed now to make up for the $1.2 trillion loss in annual demand from the private sector, which had been generated by the housing bubble. The bubble had led to booms to both construction and consumption that have gone bust now that house prices have crashed. Senator Kerry deserves special blame in this story because he could never be bothered to pay attention to the housing bubble, even when he was running for president in 2004. I recall urging his campaign staffers to pay attention to the bubble. It was like talking to Barney Frank’s dining room table. Of course Robert Rubin was one of Kerry’s top economic advisers. Rubin was making tens of millions of dollars at Citigroup whose profits were derived largely from marketing subprime junk loans. So perhaps it is not surprising that Kerry had little interest in learning anything about the housing bubble. Still it is more than a bit infuriating that Senator Kerry and his colleagues would now be lecturing the country on the need for hard choices. If they could have been bothered to do their damn jobs just a few years ago, we would not be in this situation today. As a result of their failure, tens of millions of workers are unemployed or underemployed. Yet the senators, who are still drawing their paychecks, want the country to sacrifice even more. Maybe now they can be persuaded to learn a little economics.
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Norwegian investigators accompany about 500 people to see where rightwing extremist killed 69 at summer camp Survivors of the gun attack which claimed the lives of 69 people last month on the Norwegian island of Utøya revisited the massacre scene on Friday in the company of families and friends of those who died. About 500 people visited the island in light rain. As many as 1,500 people are expected to visit over the weekend, including the Norwegian prime minister, Jens Stoltenberg. Emilie Bersaas, 19, who survived the attack on the island youth camp, told Sky News she has avoided thinking about the man who admitted responsibility for the attacks, rightwing extremist Anders Behring Breivik: “Mostly I don’t want to because I don’t think he deserves my thoughts… I would rather that my friends who are not here today get my thoughts.” Norway’s general director of health, Bjørn-Inge Larsen, said he hoped the visits would help relatives with their grieving: “In the long run, we know that seeing the scene of where these murders were taking place is actually helpful.” The bereaved visitors are being told the exact circumstances in which their loved ones died by investigators. Psychologists and clergymen are on the island to offer support. As the visits got under way on Friday, the Norwegian prosecutor said a rightwing English blogger named in Breivik’s rambling “manifesto” would be questioned next week as part of the investigation. Paal-Fredrik Hjort Kraby told the Associated Press that Paul Ray, who used go by the name of Paul Sonato, was coming to Norway voluntarily. “He is mentioned as a mentor in Breivik’s manifesto, so it’s natural to question him about that,” said Kraby. Ray, who lives in Malta, said last month he never had any dealings with Breivik and condemned the massacre. Kraby said: “Ray is concerned about clearing his name when it comes to being a mentor.” Breivik’s 1,500-page document posted online before the attacks said his action was an attempt at cultural revolution. He claimed to be a member of the Knights Templar, which he portrayed as a network of modern-day crusaders who would launch a revolution against a Europe spoiled by Muslim immigration. On Friday, a court extended by four weeks the detention in solitary confinement of Breivik, who confessed to killing 69 people in the shooting rampage and eight people in a bombing in Oslo. The Oslo district court ruled he must be kept in complete isolation because of fears he would tamper with evidence and contact possible accomplices. Judge Hugo Abelseth acknowledged Breivik had described his isolation as “boring and monotonous, and a sadistic torture method,” but said he must nonetheless spend at least four more weeks there. Survivors and victims, who were not allowed into the court hearing, were represented by lawyers. Breivik could face a 21-year prison sentence if found guilty of terrorism charges, but that could be extended indefinitely if he is still deemed to pose a threat to the public. On Sunday, a month of mourning for the 77 people who died in the attacks will end with a national memorial service at Oslo Spektrum arena. Anders Behring Breivik Norway Europe Hannah Godfrey guardian.co.uk
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Attack in south Wales that injured three believed to be domestic incident involving one of the victims, who worked in salon A man wanted in connection with a shooting at a hairdressers in Newport, south Wales, has been found dead in woods. A woman was shot in the knee and two others were injured after a gunman walked into the salon, named locally as Carol Ann’s Hairstylists, and opened fire. None of the injuries from the shooting, which took place just after 2pm, were said to be life threatening and the police refused to say whether two of the women – who suffered injuries to the neck and arm – had also been shot. “A male had entered the premises with a firearm,” said a spokesman for Gwent police. “Officers have recovered a firearm from the premises. A female received a gunshot wound to the knee. Another female has an injury to the neck and another female an injury to the arm. At this time the nature of these injuries has not been confirmed. “All three adult females are receiving medical treatment and are currently with police officers,” the spokesman added. The police helicopter was scrambled as officers searched the area. Police said they were called to the hairdressers just after 2.20pm following reports that several people had been injured. A councillor, Paul Cockeram, who represents the ward, said it was believed to be a domestic incident involving one of the women who worked in the salon. “I heard it was a domestic – whether it’s a husband or partner, I don’t know,” he said. “He came in and apparently fired indiscriminately, hitting several people.” Cockeram said the shop had been badly damaged by the gunfire and said it was lucky people had not been more seriously injured. “From what I have heard, the person he was after worked in the shop. And obviously he hit other people in there as well. “The shop is obliterated apparently. It’s amazing nobody died. I’ve heard some of them are in surgery at the moment. “The salon is predominantly a more senior sort of hairdresser’s salon … They would have been extremely frightened.” Cockeram added that the area was usually quiet. “It’s quite sad something like that has happened because it’s in an area that we have no problems at all, but obviously these domestic incidents can happen anywhere.” The injured women were taken to Royal Gwent hospital. A spokesman said: “We are working closely with Gwent police on the incident and we will give an update later.” Crime Wales Matthew Taylor guardian.co.uk
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NPR's Scott Horsley apparently couldn't find any conservatives for his report on Thursday's All Things Considered, as he played nothing but sound bites from President Obama and former economic advisor Jared Bernstein boost a possible mini-stimulus, including ” help for public works projects .” Horsley played four clips from the President and two from Bernstein during the segment. Host Melissa Block didn't use the “stimulus” term as she introduced the correspondent's report , but stated that ” President Obama has decided to gamble on new government spending to encourage hiring ….the President has promised to outline new proposals to kick-start job growth.” Horsley did acknowledge that “Obama is under mounting pressure to show progress on the jobs front. A report from the Labor Department today showed continued weakness in the job market . And meanwhile, a new Gallup poll finds only about one in four Americans think the President's doing a good job of handling the economy .” However, for the bulk of his report, the NPR journalist let the Democratic chief executive and former underling make the case for their upcoming spending plan, with only a passing remark about the current unpopularity of the past stimulus: OBAMA: And over the course of the next few weeks, I'm going to be putting out more proposals, to put people to work right now and some of them- yes, some of them cost money . HORSLEY: This focus on jobs comes after months in which Washington has been preoccupied with spending less money to control the deficit. This week, Mr. Obama began to make the case more forcefully that the two goals don't have to be mutually exclusive . OBAMA: When folks tell you that we've got a choice between jobs now or dealing with our debt crisis, they're wrong. They're wrong. We can't afford to just do one or the other. We've got to do both. HORSLEY: Former White House economic advisor Jared Bernstein says the key to making this argument is timing. He says the government can encourage job growth with more spending now , and offset the cost with bigger savings later…. Bernstein , who is now with the Center on Budget and Policy Priorities, was in the administration when the government crafted its $787 billion stimulus program two-and-a-half years ago . Many economists say that stimulus helped to cushion the economy's fall during the recession. But with unemployment still above nine percent, the stimulus is widely perceived as a failure , and President Obama has been wary about trying anything like it again. BERNSTEIN: The President and his political advisors know that anything that reeks of Keynesian stimulus is unpopular with the public. So, if you can just stand back and let the economy take care of itself- of course, you'd rather do so- but reality is such they just can't do that. Later, Horsley highlighted how “Mr. Obama's made the calculation that the risk of doing nothing on jobs is greater than the risk of another round of stimulus. Don't expect the White House to use that word to describe the President's proposal, and it's likely to be a lot smaller than the last big stimulus .” The NPR correspondent only made one reference to the conservative opposition near the end of the segment, but also acknowledged that the President could be making a risky political calculation: HORSLEY: Whatever the President suggests is likely to get a chilly reception from congressional Republicans . In a memo this week, House Majority Leader Eric Cantor called for stopping the discussions of new stimulus spending with money that we simply do not have . Mr. Obama appears ready to wage that battle. If he doesn't succeed in passing a jobs plan, he'll at least have another issue to campaign on next year…. Bashing Congress may not help the President's re-election chances , though, unless Americans see some prospect of the economy getting better. The full transcript of Scott Horsley's report from Thursday's All Things Considered: MELISSA BLOCK: With economic alarm bells ringing, President Obama has decided to gamble on new government spending to encourage hiring. The President met with his economic team this morning to plot strategy, before he set off on a late-summer vacation with his family. When he returns, the President has promised to outline new proposals to kick-start job growth. NPR's Scott Horsley reports on how he plans to make the case. SCOTT HORSLEY: President Obama is under mounting pressure to show progress on the jobs front. A report from the Labor Department today showed continued weakness in the job market. And meanwhile, a new Gallup poll finds only about one in four Americans think the President's doing a good job of handling the economy. During his Midwestern bus tour this week, Mr. Obama said he gets the message. With millions of Americans still out of work, efforts to boost job growth can no longer wait. PRESIDENT BARACK OBAMA: And over the course of the next few weeks, I'm going to be putting out more proposals, to put people to work right now and some of them- yes, some of them cost money. HORSLEY: This focus on jobs comes after months in which Washington has been preoccupied with spending less money to control the deficit. This week, Mr. Obama began to make the case more forcefully that the two goals don't have to be mutually exclusive. OBAMA: When folks tell you that we've got a choice between jobs now or dealing with our debt crisis, they're wrong. They're wrong. We can't afford to just do one or the other. We've got to do both. HORSLEY: Former White House economic advisor Jared Bernstein says the key to making this argument is timing. He says the government can encourage job growth with more spending now, and offset the cost with bigger savings later. JARED BERNSTEIN: If you actually attack your jobs program, get some people back to work, get the economy spinning off some more revenues, you actually help your deficit problem. So, getting that sequencing right means jobs now, and focus more on deficit reduction in the outer years. HORSLEY: Bernstein, who is now with the Center on Budget and Policy Priorities, was in the administration when the government crafted its $787 billion stimulus program two-and-a-half years ago. Many economists say that stimulus helped to cushion the economy's fall during the recession. But with unemployment still above nine percent, the stimulus is widely perceived as a failure, and President Obama has been wary about trying anything like it again. BERNSTEIN: The President and his political advisors know that anything that reeks of Keynesian stimulus is unpopular with the public. So, if you can just stand back and let the economy take care of itself- of course, you'd rather do so- but reality is such they just can't do that. HORSLEY: The reality is that, instead of gathering momentum and growing on its own, the economy appears to be in more and more danger of stalling out. So, Mr. Obama's made the calculation that the risk of doing nothing on jobs is greater than the risk of another round of stimulus. Don't expect the White House to use that word to describe the President's proposal, and it's likely to be a lot smaller than the last big stimulus. Details are scarce, but Mr. Obama hints one piece might be help for public works projects. OBAMA: We need roads and bridges and schools all across the country that could be rebuilt, and all those folks who got laid off from construction because the economy went south or the housing bubble burst- they're dying for work. HORSLEY: Whatever the President suggests is likely to get a chilly reception from congressional Republicans. In a memo this week, House Majority Leader Eric Cantor called for stopping the discussions of new stimulus spending with money that we simply do not have. Mr. Obama appears ready to wage that battle. If he doesn't succeed in passing a jobs plan, he'll at least have another issue to campaign on next year. OBAMA: And my attitude is, get it done. And if they don't get it done, then we'll be running against a Congress that's not doing anything for the American people, and the choice will be very stark and it will be very clear. HORSLEY: Bashing Congress may not help the President's re-election chances, though, unless Americans see some prospect of the economy getting better. Scott Horsley, NPR News, the White House.
Continue reading …Welcome to London 2012. But first take a walk through the shopping centre
August 19, 2011 No Comment
Take the train or tube to the Olympics and you’ll have to walk through Westfield Stratford City No matter which sport you are going to see when the third London Olympics begin , a visit to 2012 park will mean one thing – walking though a very large shopping centre first. The high-speed Javelin train from King’s Cross – set to deliver 25,000 spectators an hour to Stratford International – exits to a busy row of shops and restaurants, constructed by the Westfield Group. Crowds arriving at Stratford’s tube and mainline station can exit either via a concourse leading directly into Westfield’s complex or walk across an elegant rusted steel bridge – again built by Westfield, again delivering sports fans into the heart of the retail development. In all, for 70% of visitors, the entrance to the Olympics will be through the vast shopping development. Welcome to London 2012? Welcome to Westfield first. There are now fewer than four weeks until the 13 September opening of what claims to be the biggest “in town” shopping centre in Europe. Thousands of workers in fluroescent vests and hard hats race to and fro across the Westfield bridge to hang panelling, finish the electrics and install street furniture on the 180-acre site. Behind closed doors or plywood screens, the 300 shops, 50 restaurants, three hotels, 17 cinema screens and casino are being fitted out. The complex is already heavily branded, with the red Westfield logo stamped on buildings at almost every vista. Westfield Stratford City – as the vast retail and leisure complex has immodestly been named– is far from beautiful but there is no disputing that this enormous retail sprawl is remarkable. Most striking, perhaps, is the degree to which it and the Olympic park development, nearing completion just to the east, are entangled. The history of Westfield’s east London outpost (“Westfield East” and “Eastfield” were never considered as names, despite reports to the contrary, insists the company) began in 2004 when it acquired the struggling developer Chelsfield, and with it plans for an enormous retail and leisure complex in Shepherd’s Bush, west London, and a 25% stake in an even bigger project earmarked for east London. There was no question which was the more attractive prize. The brownfield Stratford site, unlike the Shepherd’s Bush project which has become a lucrative flagship for the Australian group, required vast investment in infrastructure. At that stage, says John Burton, the development director of Westfield Stratford City, no one expected London to win the Olympics. “So while we knew there was an opportunity here, what we couldn’t get our minds around was when that might occur.” Hosting the Olympics focused minds. “I suppose, if it hadn’t been that our chairman and MD said that we would deliver this in time for the Olympics, we probably would have delayed it.” The developer gave the Olympic Delivery Authority a significant leg-up, having already secured planning permission for 5,000 homes – most of which will serve as the athletes’ village before being resold – and investing heavily in transport infrastructure. One might consider unprecedented free global publicity, and a vast, captive and carefully shepherded audience for a fortnight, a rather nice thank you. Of course, aside from the “city” of the developer’s fantasies (a sense underscored by the fact that its postcode will be E20, until now existing only in BBC1′s EastEnders), there is a real Stratford. Cross Great Eastern Road from Stratford station rather than bearing left over Westfield’s bridge, and there is palpable apprehension among locals who have watched the complex rise from the ground. The suburb already has a shopping complex, the Stratford centre; if it was ever glossy, it isn’t now, with its low ceiling and over-bright strip lighting and tired lino floor. There is a 99p shop, and a cheap fashion shoe store, and traders selling plastic flowers and clothes on rails marked £3, £4, £5. Through the arcade, on High Street, is a row of market traders under permanent steel gazebos. They are being moved, they are not sure when, to the top end of the street, even further from any Olympic crowds or, post Games, Westfield shoppers who might lose their way and stumble into real east London. “It’s probably going to kill us,” says Mike Wischnia who is minding his girlfriend’s clothes stall. She has traded here for a decade, but business is horribly slow and he fears they’ll have to pack in. “Everything is going to be over the other side,” he says. “What’s the incentive to come over here?” Other traders, like many shoppers, are prepared to be open-minded for now. “It could be good, Westfield,” says one stallholder, selling nail varnish and hair accessories. “We haven’t got any ‘name’ shops any more.” Mostly, however, they feel uncertain and a bit apprehensive, she says. “The traders want to know what’s happening, I get that,” says Sir Robin Wales, the ebullient and refreshingly frank mayor of Newham, who has been cheerleader for the retail and sporting developments. “The centre and the market stalls are a value offer, which is really important for people who live in Newham, and we’ll defend that. I don’t want gentrification that drives people out. I want jobs for our people, and I want them to be able to shop in places where they can afford to. They may or may not shop at Westfield. I don’t care. My issue is to make sure they are able to work.” “Jobs, jobs and jobs” has been Wales’s mantra since the earliest days of the development. On this, he says, Westfield and many of its client retailers, including John Lewis, have been “absolutely stunning”. It has been his aim to ensure that 2,500 of the 10,000-plus jobs at the development go to local, long-term unemployed. The developer agreed to a “retail academy” to train locals. It’s all part of a longer-term, and vastly more ambitious, plan of convergence says Wales, where the six host boroughs want to raise east London, historically and intransigently poor, to average levels for the capital in jobs , poverty and health. About 20,000 long-term unemployed people will need to get into work for Newham to come close. “A century of deprivation. This is us trying to tackle it.” The challenge for the complex – and the city-changing powers it claims for itself – will come on 10 September next year, almost a year after its opening, when the Paralympics are over, and the crowds have peeled away, and Westfield Stratford City becomes just another shopping centre. Olympic Games 2012 Retail industry Regeneration London Local government Esther Addley guardian.co.uk
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