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
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
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
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
Italy has been forced to pay record interest rates in a 10bn euro ($13bn; £9bn) auction of treasury bills. The rate of interest for the new debts due to be repaid in six months was 6.504%, compared with 3.535% in the last comparable sale on 26 October.
The rate for two-year borrowing was 7.814%, up from 4.628% last time.
The Bank of Italy stressed that demand for the bonds had been high, with demand for the debts outstripping supply by 50%.
But the European Economic and Monetary Affairs Commissioner Olli Rehn dismissed the idea that the eurozone crisis could lead to a break up of the single currency.
“It is clear that the leaders of the euro area have underlined very firmly that they will do whatever it takes to ensure that the future of the euro is solid and stable,” he said.
“Italy is a founding member state of the European Union and a founding member of the euro and a central part of the euro and it will remain so in the future.”
(BBC)
November 27, 2011 at 6:46 pm
Newly-appointed Italian Prime Minister Mario Monti is due to outline austerity measures aimed at steering the country out of its debt crisis.
He will present his plans to the Italian senate ahead of a confidence vote in the upper house.
Mr Monti, who has unveiled a cabinet of technocrats, has revealed little about his plans, but they are expected to follow demands made by the EU.
He has said he is convinced that his new government will restore confidence.
Mr Monti is tasked with reducing public debt of 1.9tn euros ($2.6tn; £1.6tn) and restoring economic growth.
(BBC)
November 17, 2011 at 3:02 pm
The euro zone looks for some respite Wednesday, with Italy due to unveil a technocrat-led cabinet and a new Greek coalition expected to win a confidence vote, as Europe battles to prevent its debt woes from dragging down the world economy.
Former EU commissioner Mario Monti is set to inform Italy’s president that he has assembled a new government, whose most pressing task will be to get a fractious political class to agree to painful structural reforms designed to rescue its debt-laden finances.
In Athens, new prime minister Lucas Papademos expects an easy win in a confidence vote, but rebuilding Greece’s shattered finances will be a daunting task with his national unity government already split over new austerity measures.
With financial markets skeptical that unelected technocrats will have the political clout to impose unpopular reforms, the two-year debt crisis risks engulfing the entire currency bloc and hurting global growth.
Asian shares and the euro fell Wednesday as signs that rising borrowing costs were affecting AAA-rated France stirred fears that even core euro zone members may not escape contagion from the region’s debt crisis.
(Reuters)
November 16, 2011 at 1:44 pm
The Australian airline Qantas is to ground all international and domestic flights with immediate effect due to an industrial dispute. A statement said all employees involved in the strike would be locked out from Monday evening and flights grounded from 0600 GMT on Saturday.
Aircraft currently in the air will complete their flights, but there will be no further departures.
Chief executive Alan Joyce called his decision “unbelievable”.
The airline has been hit by a series of costly strikes.
Baggage handlers, engineers and pilots have been involved in the action costing the company A$15m (US$16m) a week. Total costs are estimated at A$68m, the company said.
The airline issued a statement on its Facebook page saying customers booked on Qantas flights should not go to the airport until further notice.
Tensions between the unions and the Qantas management started in August after the airline announced a restructuring and outsourcing plan.
The union members have voiced their concerns against the proposal, saying it would result in job cuts at the airline’s Australian operations.
(BBC)
October 29, 2011 at 12:47 pm
European Union leaders are gathering for an emergency summit in Brussels designed to finalise details of a plan to tackle the eurozone debt crisis. Inconclusive weekend talks focused on a deal to force banks to secure capital to offset future losses, as well as increasing the firepower of the bailout fund for troubled eurozone countries.
There are fears that the Greek debt crisis could spread to Italy and Spain.
Italy has been asked to provide details of its plans before the summit begins.
The ruling coalition led by Prime Minister Silvio Berlusconi is reported to have reached a last-minute limited deal on economic reforms – including the contentious issue of increasing the pension age.
His coalition partner, Northern League leader Umberto Bossi, said late on Tuesday: “In the end we have found a way. Now we will see what the EU says.”
Rome’s EU partners had demanded action to tackle Italy’s huge public debt prior to the meeting in Brussels.
Before heading for Brussels, German Chancellor Angela Merkel faces a vote in parliament on increasing the bailout fund’s firepower without involving more German taxpayers’ money. The measure is expected to pass but the key question is whether Mrs Merkel will need to rely on opposition support.
(BBC)
October 26, 2011 at 12:58 pm
