Showing posts with label AFP. Show all posts
Showing posts with label AFP. Show all posts

Friday, June 29, 2018


BUCHAREST - NBR: Placing gold operations arbitrage or speculative involve counterparty risk and it increased with the crisis gloală said Friday Mugur Isăescu Governor National Bank of Romania (BNR), a conference of press. "The gold held by the central bank to the account opened at the Bank of England, which is a custodian solid financially and reputation is always our gold, so there is NETeller through various operations and is available to us at any time. Placing gold operations arbitrage or speculative involve counterparty risk and it increased with the crisis gloală. an eventual recovery by operations, as suggested in some discussion in the media, through television, would involve a form of alienation, even if stock would remain deposited with the Bank England ", said Isarescu.  "We have not considered that such a period is better to resort to such operations for gains that otherwise are small. Not worth, so to speak.   Not only that but I did not, at least not us has it occurred to play gold in păcănele as suggest a character. "
He referred to the Romanian gold held by the Russians. "I see that Hungary has repatriated gold abroad. Well Hungary has three tons of gold. They held abroad or kept them in Budapest was the same thing, why would not we increased our stock of gold, enough big as Poland? If we take into account that we have a gold stock stored elsewhere with the relevant documents, but still unrecognized, I think our stock of gold is high enough but we are ready to buy at competitive conditions to be hereinafter yellow metal. As a proportion of gold in total international reserves, are beyond the means ", said BNR governor.

Sunday, November 1, 2015

Two European airlines announced they would no longer fly over the Sinai Peninsula on Saturday after a Russian passenger plane crashed in this troubled area of Egypt, killing all 224 people on board.  Lufthansa and Air France promised to avoid the airspace over the Sinai until it was clear why disaster had overtaken Flight KGL9268 operated by Metrojet, a small Russian airline. They were later joined by Emirates, which also announced its aircraft would be kept away from the Sinai peninsula "until more information is available". The Airbus A321 took off from Egypt’s Red Sea resort of Sharm el-Sheikh at 5.51am local time, bound for St Petersburg. The aircraft vanished from radar screens 23 minutes later, while flying at 31,000ft. The crash was the deadliest aviation disaster in Egypt's history...However, the Egyptian authorities said the pilot of the aircraft had reported a mechanical failure and asked to land at the nearest airport. Experts cautioned that it was too early to say what had caused the disaster and that Isil lacked weapons that could bring down an airliner at such an altitude...“Flight radar data makes clear there was a flight upset, but we have no idea why. There are loads of terrorist factions operating in the area and many affiliated to Islamic State. The Egyptians work very hard on security at Sharm el-Sheikh because if you wanted to destroy the tourist economy that would be the likeliest target. However the plane was too high for a shoulder launched missile, but it was 2,000 feet lower than MH17.”  Voicing caution about the possibility of a missile destroying the plane, Mr Learmount added: "In this case the aircraft appears to have come down in one piece, unlike MH17.”  But Maksim Sokolov, the Russian transport minister, dismissed Isil’s claim, saying: “It can’t be considered accurate”.  Nonetheless, Lufthansa and Air France decided to avoid Sinai until the cause of the crash was established. “We took the decision to avoid the area because the situation and the reasons for the crash were not clear," said a Lufthansa spokesperson. British Airways, however, said it would continue to fly over Sinai. “The safety and security of our customers and crew is always our top priority, and we would never operate a flight unless it was safe to do so,” said the airline. “Our safety team continually liaises with the appropriate authorities around the world, and we conduct very detailed risk assessments into every route we operate.”

Monday, December 17, 2012

I have a feeling that this whole economic situation is going to end up with a "boy who cried wolf" scenario....there have been so many "crisis" stories since 2007 that no one cares any more, then one day we will wake up and the Euro will be on its knees ....then the media will be happy because there will be an actual crisis to report on !
In the mean time...A "French expansionary policy' would have to be paid for with German, Dutch, Finnish money. These payees may agree if as part of the package deal there was real external control at a federal level over spending in France (and Spain, Portugal, Italy, Greece) and as a result of this control see a roll back of many aspects of the huge government spending in France where 65% of GDP is direct government spending. What the payees want is a reform of rigid labor markets and money to be spent on supporting projects that will employ people and not on cradle to grave government largesse beloved of French socialists. On the other hand, the French ideal is an agreement where they get pots of other peoples money to allow them to carry on exactly as they where doing and even expand the dirigiste state more. Mr Hollande made lots of election promises (eg hiring 65000 more teachers that he now he is President he knows France cannot afford. He would love Germany to pay. France (and others) will never give up an iota of sovereignty over their economy, so don't expect the Germans and others to agree to mutualize debts....Well...It is really all a big scam. Governments borrowing money that they know they wont pay back, banks doing the same, senior politicians and banksters all know that they will be retired soon, into the sunset with their golden pensions and pots of cash. They wont be around to live in the hell they have created. Meanwhile, the workers, the poor, the unemployed, the pensioners will all pay the price of rising unemployment, failed social systems and rising crime. Eventually there will be an overthrow of the current system, but the crooks will all be gone to Dubai, USA or some other capitalist entity that doesnt ask questions about how they got their money. I live in the UK, the poverty is visibly worse every day and our politicians do nothing. Same everwhere I guess. Pity. Within weeks of taking office at the start of the year he was flooding Europe's banks with €1tn in cheap, short-term credit. Was that the same cheap loan scheme that was known as LTRO? Long Term Refinancing Operation? Either way Angela seems to have it well under control. She will play it her way, loosen the purse strings as and when necessary. The Germans really couldn't give a damn but if, in their desperation, the EU wishes to place the future of Europe in her lap, who is she, a mere frau, to refuse? Interesting times. Time for us to think about where's the EXIT maybe?

Monday, September 26, 2011

£1.7 trillion 'firewall' fund readied to save euro - I think this is a lot of "Hot Air" !

"We are in a precarious situation," International Monetary and Financial committee chair Tharman Shanmugaratnam. "We face a confluence of sovereign debt and banking risk with the epicentre of that being in the euro area, but it is underpinned and complicated by the fact that we also face a weakening global economy." Greece is at the forefront of the crisis that has struck a number of countries on the 17-nation euro zone's periphery. Debt-laden Italy, the third-biggest euro zone economy, has also been struggling to retain investor confidence. Mr Shanmugaratnam said IMF leaders "will do what it takes" to prevent an escalation of the financial crisis and to avoid the possibility of a prolonged period of stagnation in larger economies, which would in turn affect overall growth of the global economy. IMF head Christine Lagarde confirmed the fund's consensus on the causes of the crisis, and the steps that need to be taken to solve it. "There was no denial, there was no finger-pointing," said Ms Lagarde. Although the meetings of top finance officials were dominated by worry about a possible debt default by Greece, which might cause a domino effect in other highly indebted euro zone countries, Ms Lagarde said steps were already being taken. "If you look at financial regulation, if you look at crisis management, if you look at improved governance, for instance, in the euro zone, if you look at strengthening the capital of the banks, a lot has already happened," she added.

Wednesday, August 24, 2011

“Economists are pessimists: they've predicted 8 of the last 3 depressions”

Bank of America continued its tailspin on Tuesday as shares in the largest US bank tumbled by another 6.4% to their lowest level since March 2009, fuelling fears of a second banking crisis. As concerns mounted that BoA will need to take huge additional write-offs on bad mortgages, the cost of insuring the group's debt jumped to record levels and investors became increasingly concerned that the financial system could be facing a fresh credit crunch. BoA's share-price fall followed a 7.9% drop on Monday, which took the stock to less than half its value at the start of the year – a decline that wiped about $65bn from its market capitalisation. "It does sap investor confidence to see a bank of this stature struggling so mightily," said David Dietze, chief investment strategist at Point View Financial Services in New Jersey. "It casts a shadow over the entire financial sector and puts a negative spin on the growth picture," added Nick Kalivas, of MF Global Research in Chicago. Dennis Dick, of Bright Trading in Detroit, said: "Every day it's the same story. BoA keeps leading the charge down on financials and every trader is probably using that as an indicator to trade the rest of the financials too." Investors continued to offload BoA's shares on fears that its huge exposure to the rapidly declining US housing market and European sovereign debt mean it will need to make much bigger provisions for bad debts. This would force the bank to raise billions of dollars in additional cash to restore its capital ratios, a move that could push the bank's shares considerably lower.

Wednesday, August 10, 2011

The rise in demand lifted the prices of Italian and Spanish bonds, cutting their yields which represent the return to investors and the cost to the governments issuing them. The news from the debt markets, however, did little to prevent turmoil on Europe's stock markets which extended their earlier, heavy losses before climbing back in response to the positive opening on Wall Street. Sentiment was initially depressed by the release of data showing a slowdown in German export growth. The Federal Statistical Office said exports in June were up by 3.1% to €88.3bn($126bn) on the year, the lowest increase in 16 months. Since the introduction of the euro, Germany's export-led economy has become even more crucial to European growth than it was before. "In June we got to feel the first indications of the decreasing global economic dynamism," said Anton Börner, the head of Germany's exporters' association, who warned that the effect of a slowing US economy would "be felt in the coming months". The Bank of France's monthly industrial survey showed both corporate order books and factory utilisation rates falling for the second month in a row in July.

Friday, July 15, 2011

The US faces the prospect of a "catastrophe" as President Barack Obama stands firm against Republican demands for deep spending cuts without any tax increases as the condition for raising the country's borrowing limit and avoiding a debt default. With Washington gripped by a growing sense that it may be too late to avert a crisis, the president has said he will give the increasingly rancorous negotiations until the end of next week to reach agreement on the terms for raising the US's $14.3 trillion (£8.9tn) debt ceiling. The White House has said that if there is no agreement by 22 July, then discussion about budget cuts and taxes should be abandoned in favour of legislation dealing solely with raising the debt ceiling before the borrowing limit is reached on 2 August. But the Republicans have rejected legislation without agreement on budget cuts. With European leaders also facing a potentially ruinous debt crisis, a leading Wall Street figure described the prospect of a US default as catastrophic. Jamie Dimon, chief executive of JP Morgan, one of Wall Street's biggest banks, said: "No one can tell me with certainty that a US default wouldn't cause catastrophe and wouldn't severely damage the US or global economy. And it would be irresponsible to take that chance." On Wednesday, Ben Bernanke, the chairman of the Federal Reserve, warned of a "huge financial calamity" if a political agreement is not reached. He told Congress a default would "send shockwaves through the entire financial system". Hours later, the credit ratings agency Moody's warned that it may downgrade the US's AAA credit rating, saying there is a "rising possibility" that no deal will be reached by next month's deadline. (source the guardian.uk)

Friday, July 8, 2011

Jean-Claude Trichet, president of the European Central Bank, tightened the screws on Greece, Portugal and Ireland on Thursday by pressing ahead with an increase in interest rates, and insisting the single currency's weakest members must avoid a default at all costs. Trichet also attempted to keep Portugal away from the abyss by pledging to keep accepting its bonds, despite some rating agencies regarding such securities as no better than junk. This stance pushed shares higher across Europe and helped the euro to strengthen, as fears abated that Portuguese banks would soon struggle to finance themselves. Speaking after the ECB's governing council met in Frankfurt, Trichet warned eurozone governments against pursuing any plan that the credit ratings agencies would deem a default. "Our message is no credit event, no selective default, no default. As simple as that." The ECB is nervous that a default would trigger billions of pounds-worth of complex financial instruments such as credit default swaps, and destabilise the European banking sector. Trichet's staunch defence of the ECB's stance came as he announced a quarter-point increase in interest rates, to 1.5%, to clamp down on inflation, despite some of the single currency's members – including Greece – remaining deep in recession. Trichet said he would "monitor very closely" price developments – usually regarded as code for another rate rise in the pipeline, though not at the next meeting. The ECB is tightening policy in response to above-target inflation, driven by the strong recovery in the eurozone's largest member, Germany, as well as other northern economies including France. Inflation across the eurozone hit 2.7% in June. Analysts said higher borrowing costs would make life even harder for the struggling "peripheral" economies of Greece, Portugal, Ireland, Italy and Spain, which are all imposing tough austerity measures to deal with budget deficits, at the same time as coping with sickly economic growth, or outright recession.

Thursday, July 7, 2011

Eurozone finance ministers are sharply divided over how to handle the spiralling Greek debt crisis, Dutch finance minister Jan Kees de Jager revealed as he attacked France's plans for a new rescue package. Speaking in London after a meeting with the chancellor, George Osborne, de Jager said it was "illusory" to hope that Europe's banks would voluntarily bear their fair share of the costs of a new bailout for Athens, and that President Sarkozy's current proposals let Greece's private sector creditors off too lightly. Any evidence of a fresh split among European policymakers will increase anxiety in the financial markets, which were rattled on Wednesday by news that ratings agency Moody's had downgraded Portugal's debt to junk status. "We do have concerns about the French scheme," de Jager said. "I think it's illusory to think of such a scheme as voluntary, so we have to work on solutions so that banks reach a level playing field." As a non-eurozone member, Britain is on the sidelines of talks about a new bailout for Greece, but de Jager said Osborne was "very close to our position". The cost of insuring Portuguese government debt through credit default swaps hit a record high after the downgrade, while the yield on Portuguese 10-year bonds jumped by more than a percentage point to 12.07%, ratcheting up the pressure on Lisbon. European commission president José Manuel Barroso criticised Moody's announcement, saying: "In this context, and the absence of new facts on the Portuguese economy that could justify a new assessment, yesterday's decisions by one rating agency do not provide for more clarity. They rather add another speculative element to the situation."

Tuesday, July 5, 2011

German and French proposals to restructure up to €30bn (£28bn) of Greek government debts were thrown into disarray after ratings agency Standard & Poor's said they amounted to a "selective default". The decision placed Germany and France on a potentially disastrous collision course with the European Central Bank (ECB). The proposals would have seen investors inject billions of euros into Greece by rolling over maturing Greek debt into new 30-year bonds. They are part of a broader €110bn rescue package, the details of which have yet to be finalised. The debt-swap proposals were designed to meet Berlin's demand that investors bear some of the costs of the bailout, since the terms of the agreement meant bondholders would end up out of pocket. However, because the proposals left bondholders nursing losses, S&P yesterday ruled that they would amount to a default on the debt. This sets up Germany and France for a clash with the ECB. The proposals are contingent on Greece not defaulting on its debt, because the central bank has said it will not accept defaulted bonds as collateral for loans. But any deal that satisfies German demands that bondholders take a share of the losses is doomed to failure since, based on the S&P ruling, it would trigger a default.

Monday, July 4, 2011

Juncker said Greece needed to adopt a process similar to the Treuhand agency, used by Germany to sell off 14,000 former East German firms between 1990 and 1994 – even though Treuhand failed to deliver any profit, oversaw huge job losses and eventually closed its books with a deficit. But he did appear to acknowledge that the Greeks were hostile to foreign officials appearing to take charge: "One cannot be allowed to insult the Greeks. But one has to help them. They have said they are ready to accept expertise from the eurozone." Athens, together with European leaders and the IMF, must now start work on a second €110bn bailout for Greece, which must be finalised by September and is likely to include private-sector involvement. The European commission conceded on Saturday, after the two-hour Eurogroup teleconference agreed the fifth tranche payout, that any plan to cut Greece's debt of 160% of economic output would be at risk of being derailed by internal unrest or external economic conditions. Growth just one percentage point below expectations, it said, would push Greece's debt to 170% of GDP, and rising, past 2020. For the first time, the commission's report also discusses debt restructuring, including a possible 40% "haircut" – a forced reduction in the value of Greek bonds – which would devastate Greek banks and, the report warns, could reverberate on Ireland, Portugal and Spain.

Sunday, July 3, 2011

Analysts are increasingly questioning the French and German governments' plan for holders of Greek bonds to swap them for new loans as part of a fresh aid package. The Greek prime minister, George Papandreou, met his side of the rescue bargain last week by winning MPs' approval for radical new austerity measures, including €50bn of privatisations, public sector wage cuts and widespread civil service job losses. But eurozone ministers have so far failed to agree details of a new rescue, expected to be up to €110bn. The debt-swap proposal, which French and German banks have agreed to, involves offering new 30-year loans in exchange for expiring bonds, to meet Germany's demand that investors bear some of the costs of a new Greek bailout. But analysts say it is likely that ratings agencies could still brand the plan a default. That would trigger chaos in world markets, as investors were forced to slash the value of their Greek debts - and could also lead to Portugal and Ireland, the other bailed-out eurozone states, having their debts downgraded. Simon Derrick, chief currency strategist at BNY Mellon, said: "When you compare the French plan to what the ratings agencies have said, it looks as though they would make it a default." Standard & Poor's said no final decision would be made on the scheme until the full details were published but pointed out a recent statement setting out the reasons a debt-swap might still constitute a default. "While an exchange offer for longer-dated bonds may appear to be 'voluntary', we may conclude that investors have been pressured into accepting because they fear more adverse consequences were they to decline the exchange offer," S&P said.

Saturday, July 2, 2011

Global economic recovery slips into lower gear as industrial activity dips - A sharp bounce in stock markets following agreement in the Greek parliament to pursue EU-sponsored austerity measures became more muted after it became clear a global slowdown in manufacturing was firmly under way. "Over the past two months, [euro-zone manufacturing] output growth has weakened to the greatest extent since late-2008," said Chris Williamson, chief economist at Markit, which compiled the surveys. The US was the only bright spot, adding to expectations the economy may be recovering from a recent slowdown. The US Institute for Supply Management said its index of national factory activity rose to 55.3 from 53.5 the month before. The reading beat expectations for a decline to 51.8, according to a Reuters poll of economists. The UK's Markit/CIPS purchasing managers' index showed a bigger than expected drop to 51.3 from 52 in May, revised from 52.1. David Noble, chief executive at the Chartered Institute of Purchasing & Supply, said: "The UK's manufacturing sector is slipping into 'growth-lite' mode, a far cry from the strong expansion seen earlier in the year." For the second quarter as a whole, the average PMI reading of 52.6 is the lowest since the recovery began in the autumn of 2009. Export orders and employment slowed to the weakest growth rate since last September. Rob Dobson, senior economist at Markit, said: "It is worrying to see that slowdown is not just being driven by the demise of domestic market strength, with growth in new exports having also slowed since the start of the year as the global economic recovery drifts into a softer patch." Input price inflation slowed sharply to the slowest rate in one-and-a-half years, reflecting recent falls in the cost of oil and other commodities. Output price inflation – measuring the prices charged by manufacturing – was the weakest since last December.

Friday, July 1, 2011

Total Lloyds job cuts now almost 45,000 - Lloyds Banking Group boss announces 15,000 job cuts - António Horta-Osório stamped his mark on Lloyds Banking Group on Thursday, cutting 15,000 jobs and pledging to revitalise the Halifax brand in an effort to help taxpayers make a profit on their £20bn investment in the bailed-out bank. On a bleak day for employment in the banking industry, HSBC also cut 700 jobs at its UK arm to save £9m – a sum officials at Unite noted was the same as the bonus of chief executive Stuart Gulliver. While unions were furious about the scale of the job losses at Lloyds – which are now on track to touch 45,000 as a result of the rescue of HBOS during the 2008 crisis – the City applauded the actions of Horta-Osório, who was presenting the outcome of a strategic review he conducted after taking the helm of Lloyds on 1 March. The Portuguese-born banker, who was lured from Spanish bank Santander, was at first unrepentant about the scale of the job cuts although later admitted: "I do regret that we have to do this. I would prefer to put this bank back on its feet without reducing staff." But, he insisted the cuts were essential. "We have to do this. This bank has lost money, it's losing money this year on an after-tax basis. "We have to get this bank back on to its feet to support the UK economy and we have to pay taxpayers' money back," he said.

Thursday, June 30, 2011

Research published today by Ricoh Europe reveals that European businesses could be missing out on potential profit increases of €46 billion, due to the existing, inefficient methods used to process information. TheRicoh Process Efficiency Index shows that employees across Europe responsible for managing business critical document processes spend approximately 362 million hoursof their time per year on the function, which amounts to an overall business cost of €147 billion. The Index examines how European organisations are managing their business critical document processes; those that occur regularly and repeatedly and have a direct impact upon businesses interactions with clients and employees. For example, purchase orders, patient records or invoices. The study also identifies the areas for improvement and the economic return that those improvements could deliver. Carsten Bruhn, Executive Vice President, Ricoh Europe said: "This report is essential reading for every European CIO. It highlights that if European businesses are to meet the challenge of competing with emerging markets, it is essential that they look at the efficiency of their business critical document processes." "The Index clearly illustrates how outdated, manual processes have multiple impacts on the business. For example, if critical information is processed using traditional hard-copy methods, business risk is enhanced as they are less likely to be backed-up. They are also easier to lose, making them more prone to security breaches. It is also inevitable that employees are spending unnecessary time processing business documents, instead of focusing on the core business transactions and customer service."

Wednesday, June 29, 2011

GREECE - The votes are just in, and the €28bn (£25bn) austerity bill has been passed, but Greece's troubles are still a long way from being resolved. What has the Greek parliament just voted through? The programme covered €28bn of spending cuts and tax rises, and permission for €50bn of asset sales. Measures include cuts to public sector pay, a new solidarity levy on income, and cutbacks in government spending. Here's a full rundown of the key measures. Does this mean victory for prime minister George Papandreou? Not yet. The Greek parliament will reconvene on Thursday to vote on an enabling law that will allow the government to speed up the pace of reform. This will also include a specific breakdown of some of the fiscal measures, including the tax changes and a €50bn privatisation programme. Analysts believe this could be even tighter than Wednesday's vote, given Papandreou's narrow majority. Why did MPs agree to these measures? Greece has been struggling to meet the conditions of the original €110bn rescue loan agreed with the EU and the International Monetary Fund last year. Eurozone finance ministers had insisted on tougher austerity measures in return for the next slice of the package, worth €12bn. What would happen if Greece did not receive the €12bn? More than €6bn of Greek government bonds mature in July, meaning they must be repaid then. Another €6.6bn matures in August. Greece cannot roll the debt over by issuing new bonds, as the financial markets are now demanding ludicrously high interest rates on Greek government borrowing. The €12bn tranche of aid is already earmarked to cover these payments – without it, an immediate disorderly default looked inevitable.

Tuesday, June 28, 2011

French finance minister Christine Lagarde has become the new head of the IMF after the fund's board confirmed her appointment following a meeting in Washington. Lagarde, who takes over from Dominique Strauss-Kahn, is the first woman to hold the post. She will begin her five-year term on 5 July. After the board's announcement, Lagarde tweeted: "The results are in: I am honored & delighted that the Board has entrusted me with the position of MD of the IMF!" Official confirmation came after the US hadformally endorsed Lagarde's candidacy. Treasury secretary Tim Geithner said: "Minister Lagarde's exceptional talent and broad experience will provide invaluable leadership for this indispensable institution at a critical time for the global economy. We are encouraged by the broad support she has secured among the fund's membership, including from the emerging economies." French president Nicolas Sarkozy was quick to show his support for his compatriot. He said in a statement: "The French presidency rejoices that a woman is taking on this important international role." Chancellor George Osborne hailed Lagarde's appointment as "good news for the global economy and for Britain." He said: "She is the best person for the job, which is why Britain was one of the first countries to propose her. She has been a strong advocate for countries tackling high budget deficits and living within their means." Lagarde has the support of most European countries, and is seen as an ideal candidate to handle the IMF's ongoing bailout of weak eurozone countries. Many observers felt the time had come for a non-European to take the post, but despite initial coolness towards her candidacy China and Russia backed Lagarde's appointment. Along with the US, she has the explicit support of nations including Indonesia and Egypt, representing more than half the IMF's 24 voting board members. The executive board represents the 187 members of the IMF.
EUOBSERVER / BRUSSELS - European lenders are considering the 'first draft' of a plan put forward by French banks for a rollover of some 70 percent of the banks' holdings of Greek debt. Unveiled by French President Nicholas Sarkozy on Monday (27 June), the plan would involve private bondholders agreeing to re-invest back in Greece half the amount of their holdings as they matured, swapping the debts for new longer-dated bonds. The maturity on the new bonds remains up for discussion, with some German sources saying the suggested extension to 30 years is too long, but the aim is to partially free the country from having to repay its debts in the near term, relieving some pressure from the insolvent nation. A further 20 percent of debts coming due would be invested in triple-A bonds via a special purpose vehicle. EU nations are hoping to convince private creditors to engage in such voluntary rollovers amounting to around €30 billion, representing just under a third of the amount of a potential second bail-out of the country. The French scheme was considered alongside other options at a meeting in Rome on Monday night of some of the most powerful figures in international banking, with executives flying in to talks with eurozone and European Central Bank representatives regarding the voluntary rollover.

Monday, June 27, 2011

CITIZEN ADVICE - The economic downturn is pushing consumers into the hands of con merchants and rogue traders who have "never had it so good", Citizens Advice warned this week. The national charity says the current economic conditions have led to an unprecedented boom in that exploit people's need to save money on bills, increase their income, and find work and affordable housing. It says there is a growing problem with unscrupulous employers advertising fake "jobs" that require fees to be paid in advance. Increasingly, it adds, "phantom flats" are offered to would-be tenants, who are then asked to prove they can pay the rent by transferring money to the landlord: money they never see again. It also warns that some money transfer services and classified ad websites can sometimes be channels for fraud. The warning chimes with Guardian Money's postbag, which is increasingly seeing complaints about bogus websites offering desirable products such as cameras at low prices. Fraudsters set up the sites, trade for a short time and then disappear with the cash. If a camera or pair of designer jeans looks too cheap, there is usually a reason why, say police. Meanwhile, as the summer music festival season gets underway, fans are being urged to be on their guard against sophisticated online rip-offs run by organised gangs of "cyber criminals", in which they are duped into buying fake or non-existent tickets. Experts at Get Safe Online, a government-backed initiative, are warning that the problem will get worse as the wave of events provides rich pickings for the fraudsters. More than one in 10 people (or their friends and family) say they have already been a victim of an online ticketing scam. According to Get Safe Online, criminals are increasing efforts to dupe consumers into visiting fake ticket websites. They are passing off their operations as supposedly genuine businesses, and are often willing to make significant investments for high returns. For example, they will often pay for search advertising (such as Google AdWords) so their fake sites appear at the top of event search results. And they even enlist professional web designers so that their sites appear genuine. One method used by scammers is targeting band websites, forums and social networking sites. Posts will be displayed from "fans" claiming they have bought tickets from a certain site and encouraging those not yet successful in getting theirs to visit it. More consumers are then driven to the fake site.

Sunday, June 26, 2011

GREECE, WHO'S EXPOSURE IS IT ? - It's not the direct exposure, it's the indirect exposure and the implications of an unruly default that I would be worried about. French and German banks bought Greek bonds, and they took out insurance against default. Who did they take out that insurance with? The US and UK banks. There has to be a loser – who's the loser?" A fresh bailout for Greece will go ahead on condition that its parliament votes for new austerity and reform programmes. It is expected to total about €110bn, with about €30bn coming from bondholders, €30bn from privatisations and the rest from eurozone members and the IMF. Persuading the private sector to play a part is seen as crucial to the chances of averting a Greek disaster and was a key part of German chancellor Angela Merkel's pitch in Brussels. Without this, EU leaders fear Greece will default, triggering payouts on a web of complex financial insurance products and creating chaos in world markets as investors struggle to work out who owes what. Some analysts fear default could create a "Lehman moment", like the aftermath of the collapse of the giant US investment bank in 2008, when investors lost confidence in each other and the world financial system froze up. At the inaugural press conference for the Bank of England's new financial policy committee, governor Sir Mervyn King described the deteriorating situation in the eurozone as a "mess" and warned that, although Britain's banks own a relatively small number of Greek bonds – about £3bn worth – there could be dramatic knock-on effects if a default resulted in a loss of confidence throughout the global financial system. That gives Treasury officials a strong incentive to ensure that the banks sign up. Without a voluntary agreement from investors, the powerful credit ratings agencies will declare that Greece has defaulted, spreading chaos. US Federal Reserve governor Ben Bernanke last week urged European governments to resolve the Greek crisis or risk threatening "the European financial system, global financial system, and European political unity".