Unemployment in the eurozone hit a record high at the end of last year, the Eurostat agency has said.
The jobless rate in the 17 countries that use the single currency was 10.4% in December, unchanged from November’s figure which was revised up from 10.3%.
Some 16.5 million people were out of work in the eurozone in December, up 751,000 on the year before.
The highest unemployment rate remains in Spain (22.9%), while the lowest is in Austria (4.1%).
Unemployment has been rising throughout 2011, as the debt crisis in the region has continued. In December 2010, the unemployment rate in the euro area was 10%.
(BBC)
January 31, 2012 at 5:51 pm
Inappropriate spending cuts could “strangle” growth prospects, the head of the IMF has warned. Austerity programmes must be tailored to each economy, Christine Lagarde said, and not be “across the board”.
The International Monetary Fund has been one of those stressing the need for countries to cut their debts, but some fear this could hit growth.
The correct response to the eurozone debt crisis has been a major debate at World Economic Forum in Davos.
“We are not suggesting there should be fiscal consolidation across the board,” Ms Lagarde stressed.
“Some countries have to go full-speed ahead to do this fiscal consolidation, but other countries have space and room. They should explore what to do… in order to help themselves.
“It has to be tailor-made.”
One of those expressing concerns about the possible implications of fiscal consolidation at the gathering at the Swiss ski resort was US Treasury Secretary Tim Geithner.
He told the annual meeting of political and business leaders on Friday that there was a risk of a recessionary “cycle” from austerity measures.
(BBC)
January 29, 2012 at 6:20 pm
Spain’s unemployment figure passed the five million mark in the last quarter of 2011, official figures show. The National Statistics Institute said 5.3 million people were out of work at the end of December, up from 4.9 million in the third quarter.
The rate rose from 21.5% in the third quarter to 22.8% – the highest rate in nearly 17 years.
Spain already has the highest jobless rate in the 17-nation eurozone and is expected to slide back into recession.
The 22.8% rate is more than twice the average unemployment rate of the eurozone, which stood at 10.3% in November, according to data released earlier this month.
(BBC)
January 28, 2012 at 11:09 am
South Korea’s Samsung Electronics has announced a 17% rise in profits in the last three months of 2011, as smartphone sales boosted earnings. Net profit for the quarter was 4 trillion won ($3.6bn; £2.3bn), up from 3.42tn won in the same period the previous year, Samsung said.
However, for the whole of 2011 net income was down 15% compared with 2010.
Samsung’s parent group is planning $42bn (£26.8bn) in capital investment this year.
(BBC)
January 27, 2012 at 7:15 am
The International Monetary Fund (IMF) has warned of a 20-30% oil price spike if Iranian exports are disrupted. The IMF warned that if the West imposed financial sanctions on Iran, it would be tantamount to an oil blockade, and the shock to the market could be as bad as from Libya’s revolution last year.
Iran produces 5% of global oil output.
Moreover, if Iran goes ahead with a threat to blockade oil exports via the Straits of Hormuz in the Gulf, the IMF said the shock could be even greater.
About a quarter of all oil produced globally, and some 40% of all oil exports – including those from Iraq, Kuwait and Saudi Arabia – are shipped through the Straits each year.
“A blockade of the Strait of Hormuz would constitute, and be perceived by markets to presage, sharply heightened global geopolitical tension involving a much larger and unprecedented disruption,” the Fund said in a regular note to the Group of 20 leading industrialised countries.
(BBC)
January 25, 2012 at 9:37 pm
The government is to increase the fleet of Sri Lankan airlines to 27 by 2015, Minister of Civil Aviation Priyankara Jayaratne stated. In addition the number of sea planes will be increased up to 5, he added.
(JNW)
January 11, 2012 at 3:32 pm
A “smart” internet-connected television that has the ability to have its hardware upgraded every year has been unveiled by Samsung. The device has a slot at which allows new kit to be added to boost processing performance and add new features.
The innovation may help reassure shoppers concerned about their screen becoming outdated.
The move is aimed at helping the South Korean tech giant retain its lead as the world’s best-selling TV maker.
(BBC)
January 10, 2012 at 8:57 am
A 380 aircraft has landed at the Bandaranaike International Airport (BIA) for the first time for refuelling on its way to Dubai, Minister of Civil Aviation Services Priyankara Jayaratne said. A 40 % increase has been recorded in aircraft landings in the BIA during 2011, when compared to year 2010, he disclosed.
(JNW)
January 9, 2012 at 12:33 pm
EU member states have agreed in principle to ban imports of Iranian crude oil to put pressure on the country over its nuclear programme. The move is expected to be announced formally at an EU foreign ministers’ meeting at the end of January.
The US, which recently imposed fresh sanctions on Iran, welcomed the news.
Iran has dismissed the threat of new sanctions and denies Western claims that it is trying to develop a nuclear weapons programme.
Iran has also denied that a record low of its currency this week was linked to punitive US measures against its banks.
Oil prices on international markets rose on news of the EU agreement.
(BBC)
January 5, 2012 at 10:54 am
European leaders have warned of a difficult year ahead, as many economists predict recession in 2012. German Chancellor Angela Merkel said Europe was experiencing its “most severe test in decades” but that Europe was growing closer in the debt crisis.
France’s President Sarkozy said the crisis was not finished, while Italy’s president called for more sacrifices.
Growth in Europe has stalled as the debt crisis has forced governments to slash spending.
(BBC)
January 2, 2012 at 9:11 am
South Africa’s Sun City resort will invest $800 million in a tourism project in Sri Lanka, the head of the island nation’s state-run Tourism Board said.
Sun City resort is run by South African gaming and hotels group Sun International Ltd.
It will be the largest ever investment in the country’s leisure sector, which is booming since the end of a 25-year war in May 2009.
“Sun City of South Africa is now going to make an $800 million investment in a 200-acre private property,” Nalaka Godahewa, head of the Tourism Board told Reuters in an interview.
The investment will be made on Sri Lanka’s hotel city in Katana, a coastal town located 15 km north of the commercial capital, Colombo, he said.
“That decision is finalized. That is one of the biggest investment.”
The government said in July it was expecting at least $1.5 billion in foreign investment in a proposed “tourist city” that includes four five-star hotels, shopping and a convention centre in Katana.
Sri Lanka has seen a remarkable rise in its post-war leisure industry with tourist arrivals expected hit a record 820,000 and revenue to rise to a record $800 million, jumping 25 percent and 39 percent from a year earlier, respectively.
“Next year, more than the number, we are concerned about the revenue. So the expectation is to hit $1 billion revenue and perhaps 950,000 arrivals,” Godahewa said.
He expects 1.3 million tourist arrivals in 2013 and 1.6 million in 2014, gradually reaching the country’s 2016 target of 2.5 million visitors with a target revenue of $1,000-$1,100 per tourist.
Godahewa also said the Tourism Board is seriously considering security issues after a British tourist was killed last week.
“We have asked the defence authorities and all the security establishments to be supportive in protecting tourists as it is going to be a $1 billion industry.”
In January Sri Lanka signed agreements with Hong Kong-based Shangri La Asia for a $500 million complex with high-end retail facilities, deluxe apartments and a 500-room luxury hotel in Colombo and a 300-room city resort on approximately 100 acres in Hambantota on the southern coast.
(Reuters)
December 31, 2011 at 8:52 am
Boeing Co beat out Lockheed Martin to retain its position as the prime contractor for the U.S. long-range missile shield, the Pentagon said.
The U.S. Defense Department said it was awarding Boeing a $3.48 billion, seven-year contract to develop, test, engineer and manufacture missile defense systems.
A team led by Lockheed Martin Corp and Raytheon Co had vied with Boeing to expand and maintain the Ground-based Midcourse Defense, or GMD, hub of layered antimissile protection.
Boeing partnered with Northrop Grumman Corp to retain the work.
(Reuters)
December 31, 2011 at 8:45 am
The US Congress has approved a short-term renewal of a payroll tax cut, a day after House Republicans caved in to overwhelming pressure on the issue. The bill extends the tax cut as well as unemployment insurance for two months.
Lawmakers held voice votes on the deal, requiring only a few members to be present.
A joint conference committee will work on a year-long deal after the holiday recess. Mr Obama signed the bill before leaving for Hawaii for the holidays.
In a statement at the White House, he urged Congress to work on a longer extension to the package “without drama, without delay” in the new year.
(BBC)
December 24, 2011 at 8:56 am
Eurozone banks have rushed to take out cheap three-year loans offered by the European Central Bank, borrowing 489bn euros ($643bn; £375bn). The central bank had originally hoped to lend up to 450bn euros to stop another credit crunch crippling the banking system.
Over 500 banks raced to borrow from the scheme, which was far beyond market expectations.
The euro rose sharply on the news, but then fell back later.
When the plan was announced, French President Nicolas Sarkozy said banks could use the money to invest in eurozone sovereign debt.
However, analysts were uncertain if banks will use the money in this way.
(BBC)
December 22, 2011 at 6:08 am
Ratings agency Fitch has affirmed France’s top-notch AAA credit rating but has revised its outlook on the country to “negative” from “stable”. A negative outlook usually means a downgrade is possible in 12-18 months. Fitch said the change in outlook was prompted by the heightened risk of government liabilities arising from the eurozone’s debt crisis. The agency also said it was considering downgrading ratings for Belgium, Spain, Slovenia, Italy, Ireland and Cyprus.
(BBC)
December 17, 2011 at 8:01 pm
Five islands off Kalpitiya amounting to 500 acres are to be allocated to Qatar for tourism promotion activities, Senior Minister Sarath Amunugama said. Addressing a media briefing held in Colombo today(13), he said the islands will be allocated under the initiative of developing Kalpitiya as a tourist zone. Parallel to this, the Expressway from Katunayaka to Colombo, which is to be completed by the end of year 2012, will be extended upto Kalpitiya.
(JNW)
December 13, 2011 at 12:33 pm
Import duties for potatoes have been reduced to Rs.15/- with immediate effect, the Ministry of Finance said. Earlier Rs.35/- were charged as import duties for potatoes, it said.
(JNW)
December 12, 2011 at 5:12 pm
