G20 rejects extra help for debt-strapped Europe - Italy agrees to IMF scrutiny
At one of the most disarrayed G20 summits ever, Italy agreed Friday to submit to rare scrutiny by the International Monetary Fund to boost confidence that it will carry through necessary fiscal reforms, the latest step in Europe's struggle to avoid economic chaos.
The summit, however, failed to win promises of additional money from outside countries to shore up the Eurozone's debt bailout fund, and new jitters about Italy's ability to withstand its rising borrowing costs began to overshadow a tentative agreement — widely hailed just a week ago - to rescue Greece from defaulting on its sovereign obligations.
In the end, vague offers to increase the firepower of the International Monetary Fund - at some later date - were all the Eurozone leaders were able to take home after two days of tumultuous talks.
With their own finances already stretched from bailing out Greece, Ireland and Portugal - and the United States and other allies wrestling with their own problems - the Eurozone had been looking to the IMF to help line up more financing to prevent the debt crisis from spreading to larger economies like Italy and Spain.
crucial to the eurozone
Italy's fate in particular is crucial to the Eurozone because its economy - the third largest in the currency union - would be too expensive to bail out. The implications for the world economy are stark: The debt crisis that has rocked the 17-nation Eurozone threatens to push the world economy into a second recession.
European leaders could point to one potential catastrophe averted: They stared down Greece's prime minister and berated him into scrapping a referendum that threatened their European bailout plan. Greece's politics are in upheaval as a result, but the shaky bailout plan appears back on track - for now.
"We want Europe to work," French President Nicolas Sarkozy said on French TV when the summit was over. "I think today we can have confidence ... but that's not to say our troubles are behind us."
In the end, the Greek question completely derailed Sarkozy's aim of using the summit to show that Europe had sorted out its debt problem once and for all - and possibly convince some of them to pitch in to the rescue effort.
In the space of days, the already shrunken list of goals set out by France to close out its year as head of the G20 was scrapped, replaced by a nearly constant stream of shocking new developments and reversals in Europe's long-running attempt to get control of Greece's debt crisis.
IMF scrutiny
The need to reassure bond markets led Italy to agree to submit to IMF scrutiny.
The IMF said it will monitor Italy's financial reform efforts, a humbling step for one of the world's biggest - but also most indebted - economies.
To solve the political deadlock that threatens to bring down his government and slow down implementation of reforms, Berlusconi said he had asked the IMF to check up on the country's progress in implementing the measures with periodic, public reports.
The most likely way the Eurozone could still get additional financing is through a special account under the auspices of the IMF, into which individual countries could make payments.
Those investments in turn could then be used to boost the Eurozone's own bailout fund, the €440 billion (US$606 billion) European Financial Stability Facility. That way, countries such as the United States, which think Europe should pay for its own financial problems, wouldn't have to put any money in. And countries like Russia and Brazil, which have expressed interest in investing in the Eurozone, could.
But Merkel and IMF chief Christine Lagarde both said not a single country at the two-day meeting made a firm commitment to participate.
That reality was perhaps best illustrated at the height of the summit last Thursday evening when hundreds of journalists dropped what they were doing in the basement of Cannes' Palais des Festivals and gathered around television screens to watch a live transmission from the Greek parliament in Athens, where Prime Minister George Papandreou was speaking.
The week of unending drama in Athens horrified its European partners, spooked global markets and overshadowed the summit in Cannes. The threat of a Greek default or exit from the common euro currency has worsened the continent's debt crisis.
When the week started, Europe had finally reached an intricate, ambitious and fragile deal to try to rescue Greece and stop the crisis from spreading any further.
Most of US unemployed no longer receive benefits
The jobs crisis has left so many people out of work for so long that most of America’s unemployed are no longer receiving unemployment benefits. Early last year, 75 per cent were receiving checks. The figure is now 48 per cent—a shift that points to a growing crisis of long-term unemployment. Nearly one-third of America’s 14 million unemployed have had no job for a year or more. Congress is expected to decide by year’s end whether to continue providing emergency unemployment benefits for up to 99 weeks in the hardest-hit states. If the emergency benefits expire, the proportion of the unemployed receiving aid would fall further.
The ranks of the poor would also rise. The Census Bureau says unemployment benefits kept 3.2 million people from slipping into poverty last year. It defines poverty as annual income below US$22,314 for a family of four. The proportion of the unemployed receiving benefits usually falls below 50 per cent during an economic recovery. Many have either quit jobs or are new to the job market and don’t qualify. Today, the proportion is falling for a very different reason: Jobs remain scarce. So more of the unemployed are exhausting their benefits. Yet for a growing share of the unemployed, a vote in Congress to extend the benefits to 99 weeks is irrelevant. They’ve had no job for more than 99 weeks. They’re no longer eligible for benefits.
Their options include food stamps or other social programmes. Nearly 46 million people received food stamps in August, a record total. That figure could grow as more people lose unemployment benefits. So could the government's disability rolls. Applications for the disability insurance program have jumped about 50 per cent since 2007. "There's going to be increased hardship," said Wayne Vroman, an economist at the Urban Institute. The number of unemployed has been roughly stable this year. Yet the number receiving benefits has plunged 30 per cent.
AP
BP’s US$7b Argentine sale collapses
BP’s US$7 billion deal to sell its stake in South America’s Pan American Energy has collapsed because of legal issues, the would-be Chinese and Argentine buyers said on Sunday. China's biggest offshore oil producer CNOOC Ltd and Argentina’s Bridas, which is half-owned by CNOOC, had agreed a year ago to buy BP's 60 per cent stake in oil and gas group Pan American Energy LLC (PAE). But the deal ended up being cancelled after a November 1 deadline to complete the transaction was missed. Bridas cited “legal issues and the way BP handled the transaction” for the deal's cancellation.
BP said the deal hinged on Bridas obtaining Argentine anti-trust and Chinese regulatory approvals and that those permissions had not been won. “Securing these approvals was the sole responsibility of Bridas,” BP said. “For reasons known only to them, Bridas has now chosen to terminate the transaction,” BP added. BP said in a statement on Sunday it will repay a deposit of US$3.5 billion received for the PAE stake at the end of 2010, which would not impact its level of gearing. Late last month, CNOOC said Bridas Corp had not obtained the necessary regulatory approvals to complete the US$7 billion bid. It had said November 1 was the deadline after which either party would have the right to terminate the agreement.
Bridas emphasized that the Chinese and Argentine governments had voiced support for the deal and said the cancellation "was not influenced by the European financial crisis, nor by any measure taken by Argentina.” Argentine President Cristina Fernandez, known for interventionist economic policies, has introduced rules requiring oil firms to repatriate all export receipts. BP said it “will now be considering all its strategic options regarding PAE,” while Bridas said it would be willing to continue negotiations despite the deal’s cancellation. Bridas already owns 40 per cent of PAE, which BP has described as Argentina’s second-largest producer of oil and gas.
Lawsuit challenges tuition charges to Caribbean immigrant children
Attorneys here have filed a federal suit arguing that scores of American students who were born in the United States as children of undocumented Caribbean and other immigrants are being wrongly denied the right to pay in-state tuition at Florida’s colleges and universities.
The lawsuit, filed by the Southern Poverty Law Centre, states that the policy is not something that was ever outlined in Florida law, but was instead adopted administratively by the Florida Department of Education and the Board of Governors that supervises state universities.
The lawsuit describes the policy as a clear violation of the equal-protection clause of the US Constitution.
“Being classified as a non-resident more than triples the cost of tuition. As a result, many talented American students must either forego higher education or incur extraordinary costs,” according to the lawsuit.
It was unclear how many other states have similar tuition rules, though at least two other states —California and Colorado — have rescinded those policies in recent years.
Colorado’s attorney general, in reversing the policy, found that in-state tuition is technically a benefit for the student — not their undocumented parents.
The suit names several South Florida students as plaintiffs, including Noel Saucedo, who had a full-tuition scholarship at Miami Dade College reduced to almost nothing after he could not prove his parents were here legally.
Saucedo now attends school part-time because he cannot afford out-of-state tuition rates, the suit says.
Other students, faced with the higher tuition rates, dropped out of school, the Southern Poverty Law Center said.
Southern Poverty Law Center attorneys could not provide an exact number of Florida students being affected, but they estimated that it may be in the thousands.
At community colleges, including Miami Dade, the in-state tuition cost of a full semester is roughly US$1,200, while the out-of-state cost is about US$4,500.
At Florida International University, paying out-of-state tuition over the duration of a four-year degree adds about US$50,000 to the total bill.
Representative Reggie Fullwood, a Jacksonville, Florida, Democratic state lawmaker has filed a bill that would grant in-state tuition to students whose parents are undocumented immigrants.
The lawsuit and the proposed legislation have focused attention on a little-known issue in Florida, where immigration activists have long concentrated on passage of a federal Dream Act.
The proposed Dream Act has languished in the US Congress for years. It would legalize certain undocumented immigrants who have been accepted into college or the military.
The Dream Act remains a hot-button political issue. Advocates for a stricter, hard-line immigration policy say passage would reward those who entered the country illegally.
At a recent Republican presidential primary debate, Texas Governor Rick Perry got hammered for his support of a state law that allowed undocumented immigrants to qualify for in-state tuition.
Michael A. Olivas, who teaches immigration and higher education law at the University of Houston, said he was “astounded” by Florida’s actions.
“There’s no asterisk on citizenship,” Olivas said, adding “either you are or you are not.”
Trade unions reject LIAT meeting
The trade unions representing regional carrier LIAT’s workers have turned down the airline’s invitation for talks today to discuss possible job cuts, as the carrier moves to trim its workforce to 800 employees by year-end.
In a letter to the airline that was faxed to the media, Grenadian trade unionist Senator Chester Humphrey – who chairs the group of ten unions in LIAT’s network – said unions would not be discussing the mass termination of LIAT employees as an isolated matter.
LIAT had invited unions, which represent its employees, throughout the region to a meeting today to discuss a programme of staff reduction over the next two months, which is aimed at reducing staff to sustainable levels.
The union groups instead opted to attend a meeting of the cash-strapped regional carrier’s shareholder governments with its board of directors.
At that meeting, the unions said, they would be willing to discuss a comprehensive restructuring plan for the airline which will include an assessment of the airline’s team, staffing levels and an in-house mechanism for resolving industrial disputes.
LIME bleeds $1.3 billion in 2Quarter
TELECOMMUNCIATIONS provider LIME Jamaica reported a net loss of $1.3 billion over the second quarter ending September 30, 2011, but found a silver lining in a 11 per cent increase in mobile revenues and a three per cent growth in its postpaid mobile subscriber base.
Total revenues at LIME declined by three per cent to $4.5 billion over the period under review compared to the corresponding quarter last year. Operating expenses increased by 10 per cent to $2.5 billion, which the firm said was mainly due to a 29 per cent increase in staff costs as a result of a one-off retroactive pay increase.
However, while acknowledging that market conditions continue to be challenging, LIME Jamaica said it is responding with strategic commercial moves and internal initiatives which should have a positive impact on performance as the company enters the second half of its fiscal year.
During the quarter, the telecoms company said it saw its Average Revenue Per User (ARPU) for mobile increase by 26 per cent, driven by increases in prepaid voice and data ARPUs of 25 per cent and 92 per cent respectively. The company is also reporting a 30 per cent increase in enterprise and data revenue as it continues to compete aggressively in the corporate and government arena. And while broadband revenues dipped by 11 per cent; LIME said its FLIPTop promotion, which it said "offers the most affordable laptop in Jamaica" along with its internet service, is at the forefront of the company's strategy to drive Internet penetration and reverse this decline.
"The recently completed quarter highlights the fact that we still have a lot of work to do on the road back to profitability. However, the good news is that our mobile business continues to capture an increasing share of this market's value with an 11 per cent increase in service revenues driven by increased voice ARPUs and growth in data," said LIME Jamaica managing director Garry Sinclair.
"We successfully initiated our residential broadband penetration drive toward the end of the quarter, with the introduction of our 'FLIPtop' computer offer. The intention is to drive revenue growth by offering customers improved broadband propositions to encourage higher adoption rates," he added.
LIME also expects that the signing of a historic Memorandum of Understanding (MOU) with its Trade Unions will drive efficiency and facilitate more effective cost management which should reflect on performance going forward.
"We are very proud of the MOU signed with our Unions during the period and expect that the enlightened positions taken by our union partners will result in considerable cost efficiencies, increased productivity and enhanced revenue performances in the immediate future," said Sinclair.
The company is also encouraged by the recent announcement by former prime minister, Bruce Golding which indicated the Government intends to address imbalances in the legislative framework which it said currently governs the telecoms industry.
"The recent announcement by the former prime minister regarding proposed legislative and regulatory changes has opened up the possibility for a much more competitive market for mobile phone services. We are therefore cautiously optimistic and remain vigilant in our quest to ensure that the contemplated legislation is enacted and that the relevant regulators exercise their mandate in the interest of increased competition and consumer choice," Sinclair said.
Source: jamaicaobserver
Cuban dissidents share ordeal with US lawmakers
Three Cuban dissidents, jailed in a 2003 crackdown and imprisoned until their exile last year to Spain, have brought their story to United States lawmakers.
The three were sponsored by European Union politicians who hope to build a trans-Atlantic coalition to increase international pressure on Cuba.
The prisoners are: an independent journalist, Normando Hernández González; Regis Iglesias Ramírez of the Varela Project and former Nueva Prensa Cubana Director, José Luís García Paneque.
All three were arrested by Cuban authorities as part of Fidel Castro’s crackdown on dozens of dissidents and activists in what became known as the “Black Spring” of 2003.
T&T, Switzerland sign visa accord
Minister of Foreign Affairs and Communications Dr Surujrattan Rambachan and Ambassador of Switzerland to T&T Markus Alexander Antonietti recently signed an agreement on mutual visa exemption for holders of diplomatic, official or service passports on behalf of their respective countries. The agreement will facilitate the pursuit of initiatives by T&T in the areas of trade, investment, tourism and culture, among others.
This is the second agreement to be signed between T&T and Switzerland since 2010, as an agreement on the Reciprocal Promotion and Protection of Investments was signed between both countries in October 2010. T&T and Switzerland have enjoyed a very fruitful relationship since the establishment of diplomatic relations some 48 years ago, in 1963.
Chinese to make House call in Barbados
Barbados’ expanding relationship with the People’s Republic of China got a further boost with the arrival of a high-level delegation yesterday afternoon.
The delegation, led by Changzhi Cheng, vice-chairman, standing committee of the National People’s Congress, was met by Minister of Transport and Works John Boyce and Minister of Foreign Affairs Senator Maxine McClean.
Cheng and his team are in Barbados to learn more about Parliament and how it works. They are scheduled to visit Parliament during tomorrow’s sitting and will attend a reception hosted by Speaker Michael Carrington. Several tours and meetings with other Members of Parliament are also on the agenda.
McClean pointed to visits to China in the past year to open an embassy, an official visit by Prime Minister Freundel Stuart and a cultural presentation during the Shanghai Expo last year.
Two Uncompromising Collectives Threaten Progress In NBA Labor Discussions
With the NBA owners and players set to meet this weekend for labor negotiations, factions within each group may threaten any progress from being made at all this weekend, according to The New York Times.
The NBA owners are supposed to meet at 10 a.m. to discuss their stances on the ongoing collective bargaining negotiations, several hours prior to their meeting with the players, The Times reports. One group of 10-14 owners, reportedly led by Charlotte Bobcats owner and former player Michael Jordan, will vote against any more financial compromises to the players.
On the other side of the table, a group of 50 NBA players are reportedly threatening to dissolve the NBA Players Association if the union makes any more concessions on player salaries. The group of players took part in a conference call last evening with an anti-trust attorney about the possibility of decertifying, according to a report from Yahoo!’s Adrian Wojnarowski.
For the Players Association to decertify it would need to have a petition signed by thirty percent of the union to force a vote. Then, a majority of the union would have to vote to decertify.
One of the major final pieces of a collective bargaining deal is an agreement on the split of basketball related income. While some within the negotiations are reportedly ok with splitting the income 50-50, there are collectives on each side that steadfastly oppose such a deal.
BUT
After 8 hours of NBA labor meetings Saturday, the two sides took a disastrous step backward when David Stern put a Wednesday ultimatum to the Players Association. Stern's ultimatum occurred at 2 a.m. Sunday morning, blindsiding the union and putting the 2011-12 season in more jeopardy then ever of being cancelled despite the presence of federal mediator George Cohen. Stern said if the union does not reconsider and accept this proposal by Wednesday, it will pull it off the table and submit a less-favorable offer, retreating to 47 percent for the players and a flex cap (a fancy name for a hard salary cap). The players appeared backed into a corner and admitted it is unlikely talks will resume by Wednesday's Stern-imposed deadline. "Today is another sad day for our fans," union president Derek Fisher said. "We've been given an ultimatum and our answer is that's not acceptable to us." The ugly turn of events prompted the union's top negotiator, attorney Jeffrey Kessler, who rarely speaks to the press, to erupt at the NBA, saying the owners are trying to intimidate the players.