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Bank of England cuts UK economic growth forecasts

• UK economic growth likely to be just 1.7% in 2011 • Inflation likely to hit 5% in the coming months • Mervyn King admits outlook has darkened since last report The Bank of England has cut its growth forecasts for the UK economy and admitted that inflation will probably remain above the government’s target both this year and next. Governor Mervyn King said the short-term outlook for the UK had deteriorated since the Bank issued its quarterly inflation report in February. Inflation is now likely to hit 5% in the coming months, in a further blow to households. He insisted, though, that the medium-term “big picture” had not changed significantly. The Bank estimated that Britain will grow by around 1.7% during 2011, down from February’s forecast of 2% growth and in line with the latest forecasts from the independent Office for Budget Responsibility. In 2012, GDP is expected to be around 2.2%, down from an earlier estimate of close to 3%. This is weaker than the OBR forecast of 2.5% growth. On inflation, King said that higher commodity and import prices, and the increase in the standard rate of VAT, was pushing up the cost of living more rapidly than expected in February. He said that higher utility bills were likely to drive the consumer prices index (CPI) up to 5% this year. CPI, which fell back to 4% last month , was likely to remain above the 2% target until the end of 2012, the Bank predicted. Three months ago it had forecast that CPI would drop back to 2% next year . “There is a good chance that inflation will reach 5% later this year and it is more likely than not to remain above the 2% target throughout 2012, boosted by the increase in VAT, higher energy and import prices, and some rebuilding of companies’ margins,” said the Bank. King added that such forecasts contained “a great deal of uncertainty”, given the volatility of commodity prices. After the forecasts were drawn up, the Bank watched the oil price plunge by 10% last Friday, suggesting an easing of inflationary pressures, only for it to rally at the start of this week. The Report, published on the first anniversary of the formation of the UK coalition government, warned that its fiscal consolidation will continue to hinder economic growth over the next two years. Angela Eagle, Labour’s shadow chief secretary to the Treasury, argued that the new forecasts showed that George Osborne’s economic plan needed reworking. “This latest downgrade of the growth forecast from the Bank of England follows three downgrades by the Office for Budget Responsibility. A year ago the OBR was predicting growth of 2.6% under Labour’s plans, something which now looks like an impossible prospect,” said Eagle. “As the governor rightly noted, the UK economy is still 4% below the level it was at before the global financial crisis, while GDP in the US has now surpassed its pre-crisis peak.” UK growth looking weaker King predicted that the recovery from recession was also likely to be volatile, but his long-term view of economic growth prospects had not changed markedly. “The most likely outcome for growth in the medium term is somewhat weaker than in the February report, reflecting a delayed recovery in consumption and a less pronounced boost from net exports,” said King. “But the downside risk to that outcome is judged to be smaller than in February, so that from the two-year point of the forecast onwards, the average outcome, taking into account the balance of risks, is broadly unchanged.” The pound strengthened against the dollar after the report was published, gaining around half a cent to $1.646. Traders had expected that the Bank would cut its growth forecasts, especially after the UK economy grew by just 0.5% in the first three months of 2011 compared with the Bank’s forecast of a 0.8% expansion. Looking at inflation in the medium term, the Bank’s monetary policy committee believed that the chances of CPI being above or below target in the medium term were roughly equal. Some City economists said that there was now slightly more chance of the Bank raising borrowing costs during 2011. “The Bank of England’s inflation report suggests that in the Bank’s view, the market has perhaps gone a little too far in not expecting an interest rate rise this year. While lowering their growth forecast, the BoE have actually increased their CPI profile,” said James Knightley of ING. “As for the growth view, they remain above consensus and state that ‘business surveys and the growth in employment over recent months suggest that underlying activity may have been stronger than indicated by official output data’,” Knightley added. Andrew Goodwin, senior economic advisor to the Ernst & Young Item Club, described the Inflation Report as “relatively dovish”. “The changes to the forecasts look eminently sensible in the context of the sharp rises in energy prices since the February forecast. The forecast remains very much a story of short-term pressures from commodities, but very subdued underlying pressures dragging down inflation over the medium term,” Goodwin commented. Economic growth (GDP) Bank of England Inflation Economics Interest rates Mervyn King Graeme Wearden guardian.co.uk

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Bank of England cuts UK economic growth forecasts

• UK economic growth likely to be just 1.7% in 2011 • Inflation likely to hit 5% in the coming months • Mervyn King admits outlook has darkened since last report The Bank of England has cut its growth forecasts for the UK economy and admitted that inflation will probably remain above the government’s target both this year and next. Governor Mervyn King said the short-term outlook for the UK had deteriorated since the Bank issued its quarterly inflation report in February. Inflation is now likely to hit 5% in the coming months, in a further blow to households. He insisted, though, that the medium-term “big picture” had not changed significantly. The Bank estimated that Britain will grow by around 1.7% during 2011, down from February’s forecast of 2% growth and in line with the latest forecasts from the independent Office for Budget Responsibility. In 2012, GDP is expected to be around 2.2%, down from an earlier estimate of close to 3%. This is weaker than the OBR forecast of 2.5% growth. On inflation, King said that higher commodity and import prices, and the increase in the standard rate of VAT, was pushing up the cost of living more rapidly than expected in February. He said that higher utility bills were likely to drive the consumer prices index (CPI) up to 5% this year. CPI, which fell back to 4% last month , was likely to remain above the 2% target until the end of 2012, the Bank predicted. Three months ago it had forecast that CPI would drop back to 2% next year . “There is a good chance that inflation will reach 5% later this year and it is more likely than not to remain above the 2% target throughout 2012, boosted by the increase in VAT, higher energy and import prices, and some rebuilding of companies’ margins,” said the Bank. King added that such forecasts contained “a great deal of uncertainty”, given the volatility of commodity prices. After the forecasts were drawn up, the Bank watched the oil price plunge by 10% last Friday, suggesting an easing of inflationary pressures, only for it to rally at the start of this week. The Report, published on the first anniversary of the formation of the UK coalition government, warned that its fiscal consolidation will continue to hinder economic growth over the next two years. Angela Eagle, Labour’s shadow chief secretary to the Treasury, argued that the new forecasts showed that George Osborne’s economic plan needed reworking. “This latest downgrade of the growth forecast from the Bank of England follows three downgrades by the Office for Budget Responsibility. A year ago the OBR was predicting growth of 2.6% under Labour’s plans, something which now looks like an impossible prospect,” said Eagle. “As the governor rightly noted, the UK economy is still 4% below the level it was at before the global financial crisis, while GDP in the US has now surpassed its pre-crisis peak.” UK growth looking weaker King predicted that the recovery from recession was also likely to be volatile, but his long-term view of economic growth prospects had not changed markedly. “The most likely outcome for growth in the medium term is somewhat weaker than in the February report, reflecting a delayed recovery in consumption and a less pronounced boost from net exports,” said King. “But the downside risk to that outcome is judged to be smaller than in February, so that from the two-year point of the forecast onwards, the average outcome, taking into account the balance of risks, is broadly unchanged.” The pound strengthened against the dollar after the report was published, gaining around half a cent to $1.646. Traders had expected that the Bank would cut its growth forecasts, especially after the UK economy grew by just 0.5% in the first three months of 2011 compared with the Bank’s forecast of a 0.8% expansion. Looking at inflation in the medium term, the Bank’s monetary policy committee believed that the chances of CPI being above or below target in the medium term were roughly equal. Some City economists said that there was now slightly more chance of the Bank raising borrowing costs during 2011. “The Bank of England’s inflation report suggests that in the Bank’s view, the market has perhaps gone a little too far in not expecting an interest rate rise this year. While lowering their growth forecast, the BoE have actually increased their CPI profile,” said James Knightley of ING. “As for the growth view, they remain above consensus and state that ‘business surveys and the growth in employment over recent months suggest that underlying activity may have been stronger than indicated by official output data’,” Knightley added. Andrew Goodwin, senior economic advisor to the Ernst & Young Item Club, described the Inflation Report as “relatively dovish”. “The changes to the forecasts look eminently sensible in the context of the sharp rises in energy prices since the February forecast. The forecast remains very much a story of short-term pressures from commodities, but very subdued underlying pressures dragging down inflation over the medium term,” Goodwin commented. Economic growth (GDP) Bank of England Inflation Economics Interest rates Mervyn King Graeme Wearden guardian.co.uk

Continue reading …
Bank of England cuts UK economic growth forecasts

• UK economic growth likely to be just 1.7% in 2011 • Inflation likely to hit 5% in the coming months • Mervyn King admits outlook has darkened since last report The Bank of England has cut its growth forecasts for the UK economy and admitted that inflation will probably remain above the government’s target both this year and next. Governor Mervyn King said the short-term outlook for the UK had deteriorated since the Bank issued its quarterly inflation report in February. Inflation is now likely to hit 5% in the coming months, in a further blow to households. He insisted, though, that the medium-term “big picture” had not changed significantly. The Bank estimated that Britain will grow by around 1.7% during 2011, down from February’s forecast of 2% growth and in line with the latest forecasts from the independent Office for Budget Responsibility. In 2012, GDP is expected to be around 2.2%, down from an earlier estimate of close to 3%. This is weaker than the OBR forecast of 2.5% growth. On inflation, King said that higher commodity and import prices, and the increase in the standard rate of VAT, was pushing up the cost of living more rapidly than expected in February. He said that higher utility bills were likely to drive the consumer prices index (CPI) up to 5% this year. CPI, which fell back to 4% last month , was likely to remain above the 2% target until the end of 2012, the Bank predicted. Three months ago it had forecast that CPI would drop back to 2% next year . “There is a good chance that inflation will reach 5% later this year and it is more likely than not to remain above the 2% target throughout 2012, boosted by the increase in VAT, higher energy and import prices, and some rebuilding of companies’ margins,” said the Bank. King added that such forecasts contained “a great deal of uncertainty”, given the volatility of commodity prices. After the forecasts were drawn up, the Bank watched the oil price plunge by 10% last Friday, suggesting an easing of inflationary pressures, only for it to rally at the start of this week. The Report, published on the first anniversary of the formation of the UK coalition government, warned that its fiscal consolidation will continue to hinder economic growth over the next two years. Angela Eagle, Labour’s shadow chief secretary to the Treasury, argued that the new forecasts showed that George Osborne’s economic plan needed reworking. “This latest downgrade of the growth forecast from the Bank of England follows three downgrades by the Office for Budget Responsibility. A year ago the OBR was predicting growth of 2.6% under Labour’s plans, something which now looks like an impossible prospect,” said Eagle. “As the governor rightly noted, the UK economy is still 4% below the level it was at before the global financial crisis, while GDP in the US has now surpassed its pre-crisis peak.” UK growth looking weaker King predicted that the recovery from recession was also likely to be volatile, but his long-term view of economic growth prospects had not changed markedly. “The most likely outcome for growth in the medium term is somewhat weaker than in the February report, reflecting a delayed recovery in consumption and a less pronounced boost from net exports,” said King. “But the downside risk to that outcome is judged to be smaller than in February, so that from the two-year point of the forecast onwards, the average outcome, taking into account the balance of risks, is broadly unchanged.” The pound strengthened against the dollar after the report was published, gaining around half a cent to $1.646. Traders had expected that the Bank would cut its growth forecasts, especially after the UK economy grew by just 0.5% in the first three months of 2011 compared with the Bank’s forecast of a 0.8% expansion. Looking at inflation in the medium term, the Bank’s monetary policy committee believed that the chances of CPI being above or below target in the medium term were roughly equal. Some City economists said that there was now slightly more chance of the Bank raising borrowing costs during 2011. “The Bank of England’s inflation report suggests that in the Bank’s view, the market has perhaps gone a little too far in not expecting an interest rate rise this year. While lowering their growth forecast, the BoE have actually increased their CPI profile,” said James Knightley of ING. “As for the growth view, they remain above consensus and state that ‘business surveys and the growth in employment over recent months suggest that underlying activity may have been stronger than indicated by official output data’,” Knightley added. Andrew Goodwin, senior economic advisor to the Ernst & Young Item Club, described the Inflation Report as “relatively dovish”. “The changes to the forecasts look eminently sensible in the context of the sharp rises in energy prices since the February forecast. The forecast remains very much a story of short-term pressures from commodities, but very subdued underlying pressures dragging down inflation over the medium term,” Goodwin commented. Economic growth (GDP) Bank of England Inflation Economics Interest rates Mervyn King Graeme Wearden guardian.co.uk

Continue reading …
Bank of England cuts UK economic growth forecasts

• UK economic growth likely to be just 1.7% in 2011 • Inflation likely to hit 5% in the coming months • Mervyn King admits outlook has darkened since last report The Bank of England has cut its growth forecasts for the UK economy and admitted that inflation will probably remain above the government’s target both this year and next. Governor Mervyn King said the short-term outlook for the UK had deteriorated since the Bank issued its quarterly inflation report in February. Inflation is now likely to hit 5% in the coming months, in a further blow to households. He insisted, though, that the medium-term “big picture” had not changed significantly. The Bank estimated that Britain will grow by around 1.7% during 2011, down from February’s forecast of 2% growth and in line with the latest forecasts from the independent Office for Budget Responsibility. In 2012, GDP is expected to be around 2.2%, down from an earlier estimate of close to 3%. This is weaker than the OBR forecast of 2.5% growth. On inflation, King said that higher commodity and import prices, and the increase in the standard rate of VAT, was pushing up the cost of living more rapidly than expected in February. He said that higher utility bills were likely to drive the consumer prices index (CPI) up to 5% this year. CPI, which fell back to 4% last month , was likely to remain above the 2% target until the end of 2012, the Bank predicted. Three months ago it had forecast that CPI would drop back to 2% next year . “There is a good chance that inflation will reach 5% later this year and it is more likely than not to remain above the 2% target throughout 2012, boosted by the increase in VAT, higher energy and import prices, and some rebuilding of companies’ margins,” said the Bank. King added that such forecasts contained “a great deal of uncertainty”, given the volatility of commodity prices. After the forecasts were drawn up, the Bank watched the oil price plunge by 10% last Friday, suggesting an easing of inflationary pressures, only for it to rally at the start of this week. The Report, published on the first anniversary of the formation of the UK coalition government, warned that its fiscal consolidation will continue to hinder economic growth over the next two years. Angela Eagle, Labour’s shadow chief secretary to the Treasury, argued that the new forecasts showed that George Osborne’s economic plan needed reworking. “This latest downgrade of the growth forecast from the Bank of England follows three downgrades by the Office for Budget Responsibility. A year ago the OBR was predicting growth of 2.6% under Labour’s plans, something which now looks like an impossible prospect,” said Eagle. “As the governor rightly noted, the UK economy is still 4% below the level it was at before the global financial crisis, while GDP in the US has now surpassed its pre-crisis peak.” UK growth looking weaker King predicted that the recovery from recession was also likely to be volatile, but his long-term view of economic growth prospects had not changed markedly. “The most likely outcome for growth in the medium term is somewhat weaker than in the February report, reflecting a delayed recovery in consumption and a less pronounced boost from net exports,” said King. “But the downside risk to that outcome is judged to be smaller than in February, so that from the two-year point of the forecast onwards, the average outcome, taking into account the balance of risks, is broadly unchanged.” The pound strengthened against the dollar after the report was published, gaining around half a cent to $1.646. Traders had expected that the Bank would cut its growth forecasts, especially after the UK economy grew by just 0.5% in the first three months of 2011 compared with the Bank’s forecast of a 0.8% expansion. Looking at inflation in the medium term, the Bank’s monetary policy committee believed that the chances of CPI being above or below target in the medium term were roughly equal. Some City economists said that there was now slightly more chance of the Bank raising borrowing costs during 2011. “The Bank of England’s inflation report suggests that in the Bank’s view, the market has perhaps gone a little too far in not expecting an interest rate rise this year. While lowering their growth forecast, the BoE have actually increased their CPI profile,” said James Knightley of ING. “As for the growth view, they remain above consensus and state that ‘business surveys and the growth in employment over recent months suggest that underlying activity may have been stronger than indicated by official output data’,” Knightley added. Andrew Goodwin, senior economic advisor to the Ernst & Young Item Club, described the Inflation Report as “relatively dovish”. “The changes to the forecasts look eminently sensible in the context of the sharp rises in energy prices since the February forecast. The forecast remains very much a story of short-term pressures from commodities, but very subdued underlying pressures dragging down inflation over the medium term,” Goodwin commented. Economic growth (GDP) Bank of England Inflation Economics Interest rates Mervyn King Graeme Wearden guardian.co.uk

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A passenger who tried to open an emergency door on a Delta flight from Orlando to Boston was quickly subdued by an off-duty cop. The incident, the fourth in-flight security scare on a domestic flight in the space of 3 days, appears to be have been alcohol-related rather than terror-related:…

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Pressure rises for privacy law reform

Goldsmith and Hunt speak out after identities of celebrities alleged to have taken out injunctions are revealed on Twitter Political pressure mounted for privacy law reform after a cabinet minister warned that Twitter had been “making a mockery” of celebrities’ attempts to gag the media – and a high-profile Conservative backbencher who once took out his own injunction called on parliament to develop a privacy law. Jeremy Hunt, the culture secretary, who is responsible for the media, said he would “sit down” with Ken Clarke, the minister of justice, to review the regulatory environment because “a crazy situation” had emerged “where information is available freely online which you are not able to print in newspapers”. Zac Goldsmith, the multimillionaire MP, spoke for the first time about his decision to take out an injunction, arguing that they were necessary because, he said, some newspapers were unwilling “to distinguish between what is in the public interest and what is merely of prurient interest to some of the public”. Their comments came after the identities of several celebrities who have taken out injunctions preventing the mention of their name in the context of sexual indiscretions were revealed on Twitter. Public interest in the identity of the individuals – who cannot be named by the Guardian under the court orders – was so great that Twitter had its busiest ever day of traffic. Meanwhile, on the same day, Max Mosley, the former Formula One boss outed by the News of the World for participating in a sado-masochistic orgy, lost his legal challenge to force newspapers to warn people before publishing stories exposing their private lives, after a European court ruled on Tuesday that such as system would have a “chilling effect” on the press. Goldsmith said he believed the solution to the injunction problem was that “parliament should design proper privacy laws” so that “the media can do the job we want them to do, without fear, but that they don’t invade people’s privacy unless there’s good reason”. He conceded the gagging orders were “an overreaction” on the part of wealthy celebrities and politicians, but said their existence was “an inevitable one” given repeated attempts by tabloids to write about people’s personal lives. Noting that David Cameron has said we need to have “a discussion and a debate” about whether to introduce a privacy law, Goldsmith added: “The PM has said he wants parliament to take the initiative, and he’s right. I hope he follows through with it.” Hunt, though, reacted cautiously to the idea of introducing a privacy law, telling reporters it was important to examine the alternatives. “We need to get into a situation where regulation and legislation is up to speed with changes in technology and that we get the balance right between the rights of an individual and the rights we all cherish for freedom of expression.” The MP for Richmond Park & North Kingston took out a court order in 2008, as he sought to prevent the media from reporting that he, his sister Jemima Khan and his then wife Sheherazade had had their personal email accounts hacked. Goldsmith, his former wife – whom he divorced in 2010 shortly after becoming an MP – and his sister all took out an injunction in December 2008 to prevent the publication of personal emails that had been offered by an unnamed individual to a national newspaper. The court order was varied in March of this year to allow the identities of the three who had taken out the injunction to be made public. Describing the decision to go to law, the MP said: “The emails were private, and even the tabloids seemed to accept that there was no justification for publishing them.” Goldsmith agreed to allow his anonymity to be waived this year because “I do not want or need” it to be maintained – before going on to add that it was appropriate to keep the identity of the hacker secret because of the “person’s mental state”. Mr Justice Tugendhat ruled in March that the hacking of the emails was “a flagrant breach of the law of confidence” but “having regard to medical evidence” about the “fragile” individual who hacked into the accounts, the high court judge kept that person’s identity secret. Reacting to that ruling, Goldsmith told the Guardian: “It is a perfect example of where a superinjunction is justified and right.” Possibly after confusion relating to this case, Jemima Khan was separately – and wrongly – named as having taken out a gagging order to prevent “intimate photos” of herself and Jeremy Clarkson being published. Khan said the rumours were “untrue and upsetting” – although they remain in circulation on Twitter. The politician’s criticism found some support from media owners and editors. Evgeny Lebedev, the son of Alexander Lebedev, the owner of the Independent and the Evening Standard, said British newspapers had to be “wary of abusing our freedom” and needed to conduct themselves with responsibility. He added: “If we slip up, the judges and politicians will enforce the restrictions that will not be so different from those in regimes where there are institutional straitjackets, preventing the freedom to report.” Alan Rusbridger, the editor of the Guardian, warned that the problem with examining laws affecting freedom of speech was that reform was often proposed in a piecemeal fashion. “It is increasingly difficult to look at one of the laws affecting free speech in isolation from the other – and from the sort of standards and expectations that are going to be widely debated in society in relation to government, the state, the internet and business.” Privacy Privacy & the media Twitter Superinjunctions Internet Dan Sabbagh guardian.co.uk

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Pressure rises for privacy law reform

Goldsmith and Hunt speak out after identities of celebrities alleged to have taken out injunctions are revealed on Twitter Political pressure mounted for privacy law reform after a cabinet minister warned that Twitter had been “making a mockery” of celebrities’ attempts to gag the media – and a high-profile Conservative backbencher who once took out his own injunction called on parliament to develop a privacy law. Jeremy Hunt, the culture secretary, who is responsible for the media, said he would “sit down” with Ken Clarke, the minister of justice, to review the regulatory environment because “a crazy situation” had emerged “where information is available freely online which you are not able to print in newspapers”. Zac Goldsmith, the multimillionaire MP, spoke for the first time about his decision to take out an injunction, arguing that they were necessary because, he said, some newspapers were unwilling “to distinguish between what is in the public interest and what is merely of prurient interest to some of the public”. Their comments came after the identities of several celebrities who have taken out injunctions preventing the mention of their name in the context of sexual indiscretions were revealed on Twitter. Public interest in the identity of the individuals – who cannot be named by the Guardian under the court orders – was so great that Twitter had its busiest ever day of traffic. Meanwhile, on the same day, Max Mosley, the former Formula One boss outed by the News of the World for participating in a sado-masochistic orgy, lost his legal challenge to force newspapers to warn people before publishing stories exposing their private lives, after a European court ruled on Tuesday that such as system would have a “chilling effect” on the press. Goldsmith said he believed the solution to the injunction problem was that “parliament should design proper privacy laws” so that “the media can do the job we want them to do, without fear, but that they don’t invade people’s privacy unless there’s good reason”. He conceded the gagging orders were “an overreaction” on the part of wealthy celebrities and politicians, but said their existence was “an inevitable one” given repeated attempts by tabloids to write about people’s personal lives. Noting that David Cameron has said we need to have “a discussion and a debate” about whether to introduce a privacy law, Goldsmith added: “The PM has said he wants parliament to take the initiative, and he’s right. I hope he follows through with it.” Hunt, though, reacted cautiously to the idea of introducing a privacy law, telling reporters it was important to examine the alternatives. “We need to get into a situation where regulation and legislation is up to speed with changes in technology and that we get the balance right between the rights of an individual and the rights we all cherish for freedom of expression.” The MP for Richmond Park & North Kingston took out a court order in 2008, as he sought to prevent the media from reporting that he, his sister Jemima Khan and his then wife Sheherazade had had their personal email accounts hacked. Goldsmith, his former wife – whom he divorced in 2010 shortly after becoming an MP – and his sister all took out an injunction in December 2008 to prevent the publication of personal emails that had been offered by an unnamed individual to a national newspaper. The court order was varied in March of this year to allow the identities of the three who had taken out the injunction to be made public. Describing the decision to go to law, the MP said: “The emails were private, and even the tabloids seemed to accept that there was no justification for publishing them.” Goldsmith agreed to allow his anonymity to be waived this year because “I do not want or need” it to be maintained – before going on to add that it was appropriate to keep the identity of the hacker secret because of the “person’s mental state”. Mr Justice Tugendhat ruled in March that the hacking of the emails was “a flagrant breach of the law of confidence” but “having regard to medical evidence” about the “fragile” individual who hacked into the accounts, the high court judge kept that person’s identity secret. Reacting to that ruling, Goldsmith told the Guardian: “It is a perfect example of where a superinjunction is justified and right.” Possibly after confusion relating to this case, Jemima Khan was separately – and wrongly – named as having taken out a gagging order to prevent “intimate photos” of herself and Jeremy Clarkson being published. Khan said the rumours were “untrue and upsetting” – although they remain in circulation on Twitter. The politician’s criticism found some support from media owners and editors. Evgeny Lebedev, the son of Alexander Lebedev, the owner of the Independent and the Evening Standard, said British newspapers had to be “wary of abusing our freedom” and needed to conduct themselves with responsibility. He added: “If we slip up, the judges and politicians will enforce the restrictions that will not be so different from those in regimes where there are institutional straitjackets, preventing the freedom to report.” Alan Rusbridger, the editor of the Guardian, warned that the problem with examining laws affecting freedom of speech was that reform was often proposed in a piecemeal fashion. “It is increasingly difficult to look at one of the laws affecting free speech in isolation from the other – and from the sort of standards and expectations that are going to be widely debated in society in relation to government, the state, the internet and business.” Privacy Privacy & the media Twitter Superinjunctions Internet Dan Sabbagh guardian.co.uk

Continue reading …
Pressure rises for privacy law reform

Goldsmith and Hunt speak out after identities of celebrities alleged to have taken out injunctions are revealed on Twitter Political pressure mounted for privacy law reform after a cabinet minister warned that Twitter had been “making a mockery” of celebrities’ attempts to gag the media – and a high-profile Conservative backbencher who once took out his own injunction called on parliament to develop a privacy law. Jeremy Hunt, the culture secretary, who is responsible for the media, said he would “sit down” with Ken Clarke, the minister of justice, to review the regulatory environment because “a crazy situation” had emerged “where information is available freely online which you are not able to print in newspapers”. Zac Goldsmith, the multimillionaire MP, spoke for the first time about his decision to take out an injunction, arguing that they were necessary because, he said, some newspapers were unwilling “to distinguish between what is in the public interest and what is merely of prurient interest to some of the public”. Their comments came after the identities of several celebrities who have taken out injunctions preventing the mention of their name in the context of sexual indiscretions were revealed on Twitter. Public interest in the identity of the individuals – who cannot be named by the Guardian under the court orders – was so great that Twitter had its busiest ever day of traffic. Meanwhile, on the same day, Max Mosley, the former Formula One boss outed by the News of the World for participating in a sado-masochistic orgy, lost his legal challenge to force newspapers to warn people before publishing stories exposing their private lives, after a European court ruled on Tuesday that such as system would have a “chilling effect” on the press. Goldsmith said he believed the solution to the injunction problem was that “parliament should design proper privacy laws” so that “the media can do the job we want them to do, without fear, but that they don’t invade people’s privacy unless there’s good reason”. He conceded the gagging orders were “an overreaction” on the part of wealthy celebrities and politicians, but said their existence was “an inevitable one” given repeated attempts by tabloids to write about people’s personal lives. Noting that David Cameron has said we need to have “a discussion and a debate” about whether to introduce a privacy law, Goldsmith added: “The PM has said he wants parliament to take the initiative, and he’s right. I hope he follows through with it.” Hunt, though, reacted cautiously to the idea of introducing a privacy law, telling reporters it was important to examine the alternatives. “We need to get into a situation where regulation and legislation is up to speed with changes in technology and that we get the balance right between the rights of an individual and the rights we all cherish for freedom of expression.” The MP for Richmond Park & North Kingston took out a court order in 2008, as he sought to prevent the media from reporting that he, his sister Jemima Khan and his then wife Sheherazade had had their personal email accounts hacked. Goldsmith, his former wife – whom he divorced in 2010 shortly after becoming an MP – and his sister all took out an injunction in December 2008 to prevent the publication of personal emails that had been offered by an unnamed individual to a national newspaper. The court order was varied in March of this year to allow the identities of the three who had taken out the injunction to be made public. Describing the decision to go to law, the MP said: “The emails were private, and even the tabloids seemed to accept that there was no justification for publishing them.” Goldsmith agreed to allow his anonymity to be waived this year because “I do not want or need” it to be maintained – before going on to add that it was appropriate to keep the identity of the hacker secret because of the “person’s mental state”. Mr Justice Tugendhat ruled in March that the hacking of the emails was “a flagrant breach of the law of confidence” but “having regard to medical evidence” about the “fragile” individual who hacked into the accounts, the high court judge kept that person’s identity secret. Reacting to that ruling, Goldsmith told the Guardian: “It is a perfect example of where a superinjunction is justified and right.” Possibly after confusion relating to this case, Jemima Khan was separately – and wrongly – named as having taken out a gagging order to prevent “intimate photos” of herself and Jeremy Clarkson being published. Khan said the rumours were “untrue and upsetting” – although they remain in circulation on Twitter. The politician’s criticism found some support from media owners and editors. Evgeny Lebedev, the son of Alexander Lebedev, the owner of the Independent and the Evening Standard, said British newspapers had to be “wary of abusing our freedom” and needed to conduct themselves with responsibility. He added: “If we slip up, the judges and politicians will enforce the restrictions that will not be so different from those in regimes where there are institutional straitjackets, preventing the freedom to report.” Alan Rusbridger, the editor of the Guardian, warned that the problem with examining laws affecting freedom of speech was that reform was often proposed in a piecemeal fashion. “It is increasingly difficult to look at one of the laws affecting free speech in isolation from the other – and from the sort of standards and expectations that are going to be widely debated in society in relation to government, the state, the internet and business.” Privacy Privacy & the media Twitter Superinjunctions Internet Dan Sabbagh guardian.co.uk

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Pressure rises for privacy law reform

Goldsmith and Hunt speak out after identities of celebrities alleged to have taken out injunctions are revealed on Twitter Political pressure mounted for privacy law reform after a cabinet minister warned that Twitter had been “making a mockery” of celebrities’ attempts to gag the media – and a high-profile Conservative backbencher who once took out his own injunction called on parliament to develop a privacy law. Jeremy Hunt, the culture secretary, who is responsible for the media, said he would “sit down” with Ken Clarke, the minister of justice, to review the regulatory environment because “a crazy situation” had emerged “where information is available freely online which you are not able to print in newspapers”. Zac Goldsmith, the multimillionaire MP, spoke for the first time about his decision to take out an injunction, arguing that they were necessary because, he said, some newspapers were unwilling “to distinguish between what is in the public interest and what is merely of prurient interest to some of the public”. Their comments came after the identities of several celebrities who have taken out injunctions preventing the mention of their name in the context of sexual indiscretions were revealed on Twitter. Public interest in the identity of the individuals – who cannot be named by the Guardian under the court orders – was so great that Twitter had its busiest ever day of traffic. Meanwhile, on the same day, Max Mosley, the former Formula One boss outed by the News of the World for participating in a sado-masochistic orgy, lost his legal challenge to force newspapers to warn people before publishing stories exposing their private lives, after a European court ruled on Tuesday that such as system would have a “chilling effect” on the press. Goldsmith said he believed the solution to the injunction problem was that “parliament should design proper privacy laws” so that “the media can do the job we want them to do, without fear, but that they don’t invade people’s privacy unless there’s good reason”. He conceded the gagging orders were “an overreaction” on the part of wealthy celebrities and politicians, but said their existence was “an inevitable one” given repeated attempts by tabloids to write about people’s personal lives. Noting that David Cameron has said we need to have “a discussion and a debate” about whether to introduce a privacy law, Goldsmith added: “The PM has said he wants parliament to take the initiative, and he’s right. I hope he follows through with it.” Hunt, though, reacted cautiously to the idea of introducing a privacy law, telling reporters it was important to examine the alternatives. “We need to get into a situation where regulation and legislation is up to speed with changes in technology and that we get the balance right between the rights of an individual and the rights we all cherish for freedom of expression.” The MP for Richmond Park & North Kingston took out a court order in 2008, as he sought to prevent the media from reporting that he, his sister Jemima Khan and his then wife Sheherazade had had their personal email accounts hacked. Goldsmith, his former wife – whom he divorced in 2010 shortly after becoming an MP – and his sister all took out an injunction in December 2008 to prevent the publication of personal emails that had been offered by an unnamed individual to a national newspaper. The court order was varied in March of this year to allow the identities of the three who had taken out the injunction to be made public. Describing the decision to go to law, the MP said: “The emails were private, and even the tabloids seemed to accept that there was no justification for publishing them.” Goldsmith agreed to allow his anonymity to be waived this year because “I do not want or need” it to be maintained – before going on to add that it was appropriate to keep the identity of the hacker secret because of the “person’s mental state”. Mr Justice Tugendhat ruled in March that the hacking of the emails was “a flagrant breach of the law of confidence” but “having regard to medical evidence” about the “fragile” individual who hacked into the accounts, the high court judge kept that person’s identity secret. Reacting to that ruling, Goldsmith told the Guardian: “It is a perfect example of where a superinjunction is justified and right.” Possibly after confusion relating to this case, Jemima Khan was separately – and wrongly – named as having taken out a gagging order to prevent “intimate photos” of herself and Jeremy Clarkson being published. Khan said the rumours were “untrue and upsetting” – although they remain in circulation on Twitter. The politician’s criticism found some support from media owners and editors. Evgeny Lebedev, the son of Alexander Lebedev, the owner of the Independent and the Evening Standard, said British newspapers had to be “wary of abusing our freedom” and needed to conduct themselves with responsibility. He added: “If we slip up, the judges and politicians will enforce the restrictions that will not be so different from those in regimes where there are institutional straitjackets, preventing the freedom to report.” Alan Rusbridger, the editor of the Guardian, warned that the problem with examining laws affecting freedom of speech was that reform was often proposed in a piecemeal fashion. “It is increasingly difficult to look at one of the laws affecting free speech in isolation from the other – and from the sort of standards and expectations that are going to be widely debated in society in relation to government, the state, the internet and business.” Privacy Privacy & the media Twitter Superinjunctions Internet Dan Sabbagh guardian.co.uk

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