Unemployment in Europe Remains Stubbornly High

Unemployment in Europe Remains Stubbornly High
By DAVID JOLLY
Published: January 8, 2014

PARIS — Europe’s labor market remained stagnant in November, official data showed Wednesday, suggesting the region’s economy will continue treading water in the new year.

The unemployment rate in the euro zone remained at 12.1 percent, a level it has held since April, Eurostat, the European Union’s statistics agency, reported from Luxembourg.

The jobless rate was in line with economists’ expectations. It had risen from just under 10 percent in early 2011 to the current record level. Eurostat had previously reported that the rate hit 12.2 percent this summer, but that figure has been revised.

For the full European Union, made up of 28 member states, the jobless rate was unchanged at 10.9 percent. Eurostat estimated that 26.6 million across Europe were unemployed and seeking work, 19,000 more than in October.

More than five years after the global financial crisis erupted, Europe’s economy remains on fragile footing. Consumers are wary of spending, lending to businesses is contracting, and investment, not surprisingly, is weak.

Richard Barwell, an economist in London with Royal Bank of Scotland, estimated before the jobless data were released that the euro zone’s gross domestic product grew by just 0.2 percent in the fourth quarter of 2013. That would be equivalent to a 0.8 percent annualized rate.

Mr. Barwell forecasts that the euro zone will manage quarterly growth of about 0.3 percent in the first quarter of the new year.

There have been some hopeful signs in Europe lately, including a survey of purchasing managers by Markit Economics, which showed output near the highest it has been for two-and-a-half years. Ireland met strong demand upon its return to the international bond market Tuesday after exiting its bailout.

Among the lowest unemployment rates in Europe were in Austria, with 4.8 percent, and Germany, with 5.2 percent. Among the highest was Spain at 26.7 percent. In Greece, which is several months behind in its reporting, the rate was 27.4 percent.

There were 17 euro zone members for the period when the data were tabulated. Eurostat will begin including information for the newest member, Latvia, which joined at the start of the year, in the January data.

The report arrived on the eve of a policy meeting of the European Central Bank’s Governing Council. The central bank in November surprised markets by cutting its benchmark interest rate to 0.25 percent from 0.5 percent, and economists say it is too soon to expect the bank to move on rates again this week.

But the jobless data, and the danger of deflation, will be important topics for discussion in Frankfurt. Consumer prices in the euro zone rose in December at an annual rate of only 0.8 percent, Eurostat reported on Tuesday — far below the E.C.B.'s inflation target of 2 percent.

Outgoing Singh under pressure to deliver on reform pledge

India’s reform agenda:

What Singh could tackle before the election

● Reduce wasteful fuel subsidies so as to cut the fiscal deficit, without reducing productive capital expenditure.
● Introduce a nationwide goods and service tax (a value added tax) to replace the complicated different indirect taxes that vary dramatically from state to state.
● Clear roadblocks to domestic coal mining, and develop cost-effective transportation infrastructure so as to reduce dependence on imported coal.
● Reform India’s labour laws to make it easier for companies to lay off workers and encourage companies to take on long-term employees.
● Cut red tape to make it easier for companies to do business.

January 8, 2014 7:20 am
Outgoing Singh under pressure to deliver on reform pledge
By Amy Kazmin in New Delhi

Announcing his plans to leave the public stage after India’s imminent parliamentary elections, Manmohan Singh, the 81-year-old prime minister, insisted he would use the final few months of his tenure to push the country’s stalled economic reform agenda as best he could.

“Reform is not an event, it is a process,” he said on Friday. “So long as we are in power, we will continue to push the cause of reform wherever there is scope for it, and if circumstances permit us to go forward.”

Many Indians dismiss such talk as little more than wishful thinking, saying the premier has no political capital, or energy, left – and that the system will now be bogged down in inertia, as the bureaucracy awaits its new political masters after an election that must take place by May at the latest.

“It’s a dead end situation for the government, and it’s been that way for some time,” said one New Delhi-based economist, who asked not to be identified. “His stock is extremely low, and his ability to push any initiative right now is truly limited.”

But others insist that Mr Singh, and the Congress-led government, could still use their final months in power to take tough decisions that would stabilise precarious public finances, and help revive confidence – and restart the stalled investment cycle.

“In some senses, the prime minister is now liberated,” said Sanjaya Baru, who served as Mr Singh’s media adviser during his first term. “He said he is not going to seek another term, and the party is unlikely to win the next election. This gives him some space to act.

“It’s like a dying man suddenly becomes energetic before death.”

But many Indians have already written off Mr Singh’s decade-long tenure in office as a lost opportunity to push economic and governance reforms that could make it easier to do business, encourage domestic and foreign investment, and put India on a trajectory of higher economic growth.

In recent years, India’s investor sentiment has soured and growth has slowed – the result of slow decision-making, overlapping and conflicting regulations, and confused policies.

At the start of 2013, about $285bn worth of proposed investments in crucial infrastructure projects like power, coal mining, natural gas and roads were all stalled due the government’s institutional gridlock.

In June, New Delhi established an urgent task force to assess large-scale projects – involving investments of $170m and above – and obtain the necessary clearances for them to proceed. As of mid-December, the task force said it had approved 122 projects worth about $65bn.

Industry groups, and investors, expect Mr Singh’s administration to keep pushing on project clearances until the end. “It’s a small step forward,” said Rohini Malkani, chief economist of Citigroup. “It’s not going to result in growth recovering sharply, but at least it’s a step in the right direction.”

In another sign that it had not yet given up the ghost, the government in December abruptly removed the environment minister, Jayanthi Natarajan, who was seen as a major obstacle to large-scale investments, due to her reluctance to make decisions on controversial projects. Her replacement, Veerapa Moily,
promptly vowed to expedite decision-making in the ministry.

India’s reform agenda: What Singh could tackle before the election

● Reduce wasteful fuel subsidies so as to cut the fiscal deficit, without reducing productive capital expenditure.
● Introduce a nationwide goods and service tax (a value added tax) to replace the complicated different indirect taxes that vary dramatically from state to state.
● Clear roadblocks to domestic coal mining, and develop cost-effective transportation infrastructure so as to reduce dependence on imported coal.
● Reform India’s labour laws to make it easier for companies to lay off workers and encourage companies to take on long-term employees.
● Cut red tape to make it easier for companies to do business.

“There has been quite a bit of movement and that gives us a lot of hope,” said Chandrajit Banerjee, director-general of the Confederation of Indian Industry, which has asked that the investment threshold for projects to be referred to the special task force be reduced by half – to $85m.

“You cannot expect major legislative reforms to happen in this period, but it would be important if they can push forward on the clearance of projects which has started happening.”

He said the administration was also now drafting the “implementing regulations” of two crucial new laws, the new companies act, and the land acquisition act, already passed by parliament. The nitty-gritty details of these rules are likely to have a major impact on business and sentiment.

“It would be very important to ensure that these rules are in keeping with the best interests of industry and investors,” Mr Banerjee said. “This can easily be done.”

Among India’s pending legislative agenda is a major overhaul of the archaic tax system, including the adoption of a new value added tax, but there is little optimism that tax reform – which requires opposition consent – will be rolled out before the election.

Other crucial challenges include the need to reduce fuel subsidies to stabilise the government’s precarious finances, without curbing capital expenditure. Most believe Mr Singh will be constrained by the Congress party, now increasingly being directed by 43-year-old Rahul Gandhi, as he prepares to lead the party in
a bitter electoral battle.

“If there is any change to be made, or action to be taken, its coming from Rahul’s side,” said the New Delhi-based economist. “The PM has not been in a decision-making role for a long, long time.”

Yet India’s big business groups insist they have not lost hope that Mr Singh will use whatever time he has left to take tough decisions that would help strengthen India’s macroeconomic foundations.

“If this government is still in the business of governing, they would take decisions,” said YK Modi, a past president of the Federation of Indian Chambers of Commerce and Industry. “Mr Singh is still the prime minister until May or June. He can do wonders in the next four months.”

Mahinda Rajapaska visits President Peres in Jerusalem to offer his help in resolving the Israeli-Palestinian conflict.

Sri Lankan president makes first-ever visit to Israel 
By GREER FAY CASHMAN
01/09/2014 12:37

President Shimon Peres greets Sri Lankan President
Mahinda Rajapaska in
Jerusalem Photo: Mark Neiman/GPO

  Mahinda Rajapaska visits President Peres in Jerusalem to offer his help in resolving the Israeli-Palestinian conflict. President Shimon Peres greets Sri Lankan President Mahinda Rajapaska in Jerusalem

 In the past, Nelson Mandela, the former and recently deceased president of South Africa, wanted to help Israel and the Palestinians to resolve their conflict. Now, Sri Lankan President Mahinda Rajapaska wants to help in that direction as well.

Rajapaska, who is on an official visit to Israel and the Palestinian Authority, is his country’s first head of state to come to Israel even though diplomatic and other ties between the two countries have existed almost as long as their independence, which in each case was gained in 1948.

In welcoming his Sri Lankan counterpart to his residence on Thursday, President Shimon Peres hailed him as a great leader who was successful in bringing peace, reconciliation and restoration to his people “which is not a small achievement.”

Acknowledging that his guest was well aware of the difficulties of bringing peace to people who have long experienced hostility and violence, Peres told Rajapaska that Israel follows his achievements with great admiration.

“You have come here as a leader with an impressive record. You have invested your heart and mind and days and nights in peace, and you are seeing the fruits. You have come to a region still in search of peace and reconciliation. Israel is determined to make peace.”

Reviewing the seven wars in which Israel had triumphed and noting the peace agreements that Israel had reached with Egypt and Jordan, Peres conceded that while the peace is not perfect, “we prefer an imperfect peace to a perfect war.”

Israel has to conclude the first chapter of peace by concluding an agreement with the Palestinians, before it can hope for peace all over the Middle East, he said, adding that Israel wants to use the potential of peace and of a modern economy and science to help not only its own people, but also the Palestinians.

Peres noted that despite having limited territory, Israel had built up a flourishing economy which answers the needs of the Israeli population, and also enables Israel to help others. “We did not gain land, but we gained knowledge,” he said.

Peres also related to Israel’s sometimes rocky relationship with Sri Lanka, which he said, had its ups and downs, and commented that it was better to forget the downs and remember the ups.

Responding to president’s remarks, Rajapaska said that his country supports peace for all people. Sri Lanka had suffered thirty years of war with terrorists and had enjoyed peace only in the last four years, he said.

In that brief period, it has succeeded in eradicating terrorism and developing economically. It released 14,000 former combatants from prison, some who had been child soldiers, and sent them back to society, he said.

Moreover, 300,000 displaced people had been resettled, minefields had been neutralized, railway lines, roads, hospitals and schools had been built, electricity had been installed and the people in the new areas had been given water. The cost factor had been US$400 billion. In addition people from the army had
been recruited for the police force.

Mahinda Rajapaska’s visit to Israel is characterized as official rather than state. For this reason there were no Sri Lankan flags in the streets on the route leading from his hotel to the President’s Residence; there was no honor guard and no army or police band to play the national anthems of both countries. There was

however, the usual police motor cycle escort. There was also the red carpet, with Peres waiting at the edge to greet the smiling Rajapaska as he literally leapt from the car to meet him.

Rajapaska did not always entertain a warm attitude towards Israel according to an article by Upul Joseph Fernando which was published on Wednesday in The Sri Lanka Guardian.

Referring to a period in 1970 in which Sri Lanka had severed its ties with Israel, Fernando quoted Rajapaska as saying in a speech at that time: “The establishment of diplomatic relations with German Democratic Republic (GDR) and the Provincial Revolutionary Government of Vietnam, and also abrogation of diplomatic ties with Israel are encouraging signs that the government is committed to a non-aligned foreign policy, which is the aspiration of the people."

More importantly, Fernando continued, “When the Palestine Friendship Association was established in 1975 Mahinda became its first President. In this capacity, Mahinda worked assiduously to raise awareness about the Palestinian problem among the people of this country and mobilize support and sympathy for their
cause”

Even though the government closed the Israeli embassy he wrote, the government was buying weapons from Israel through an Israeli agent, who curiously was selling the same kind of equipment to the LTTE.

Future efforts to reopen the Israel Embassy, he added, were opposed by Rajapaska.

The article also mentions help that Sri Lanka received from Mossad, even during those periods in which diplomatic relations had been cut.

For the time being, Sri Lanka has mended its fences with Israel and the two countries have a very good relationship, particularly on matters of defense.

Rajapaska met on Wednesday with Prime Minister Binyamin Netanyahu and the two agreed to expand bilateral relations, especially in agriculture and water technology.

Unlike most official visitors to Israel, Rajapaska met with Palestinian Authority leaders before calling on Netanyahu and Peres.

There are some 7,000 Sri Lankans working in Israel, primarily as caregivers.

http://www.jpost.com/Diplomacy-and-Politics/Sri-Lankan-president-makes-first-ever-visit-to-Israel-337608

Retailers hit by Christmas slowdown

Retailers hit by Christmas slowdown
By Andrea Felsted, Senior Retail Correspondent
Last updated: January 9, 2014 FTimes

A trio of Britain’s biggest retailers underlined the challenges on the high street with Wm Morrison, Marks and Spencer and Tesco all reporting disappointing Christmas trading.

In an unexpected update, Wm Morrison reported terrible Christmas trading, with like-for-like sales down by 5.6 per cent in the six weeks to January 5, and cautioned that full-year profits would be towards the bottom of the range, putting pressure on Dalton Philips, chief executive.

Mr Philips had said he expected positive trading over Christmas, after more than a year of underlying sales declines.

The update sent shares in Morrison down 5.7 per cent to 239p as shares across the supermarket sector fell. Tesco, which also reported a fall in like-for-like sales, fell 3 per cent to 318p and J Sainsbury, which reported a small rise in like-for-like Christmas sales on Wednesday, was down 2.3 per cent.
Marks and Spencer also announced a worse than expected 2.1 per cent fall in sales of clothing and homewares in its third quarter.

The performance compares with analysts’ forecasts that ranged from flat sales of general merchandise from stores open at least a year, to a decline of 1.5 per cent.
It also follows a decline of 3.8 per cent in the third quarter of the 2012-13.

Marc Bolland, chief executive, blamed an “exceptional, unusual and unseasonable” October together with heavy discounting on the high street.

He insisted that M&S had held its nerve, but had promoted in response to the market, despite the retailer running a series of promotions throughout the autumn.

“We were not the one that stirred the pot. We were the ones that clearly responded,” he said.

The third quarter decline represents the 10th consecutive quarter of underlying clothing falls, despite M&S revamping its womenswear ranges in an efforts to revive its fortunes.

However, Mr Bolland, responding to questions about his own future, said: “It’s all about the business for me, and, and I think the business is taking the right steps.”

However, M&S said like-for-like general merchandise sales rose 0.5 per cent in the eight weeks to December 24, after it promoted heavily.

Concern has been rising over clothing trade at M&S after the retailer began discounting heavily before Christmas.

It also comes after Mr Bolland was upbeat when M&S reported interim results in November, sending the shares up 5 per cent on the day. On Thursday its shares rose 2 per cent to 454p.
Like-for-like food sales rose 1.6 per cent in the third quarter, below the consensus of analysts’ forecasts of a 2 per cent rise.

However, Mr Bolland insisted the food performance was “stellar”.

Tesco, Britain’s biggest retailer which has been battling to turn round its UK business, also said UK like-for-like sales fell 2.4 per cent in the six weeks to January 4.

Brokers to Tesco had forecast a 2 per cent decrease in like-for-like sales.Philip Clarke, chief executive described the performance as “disappointing”.Tesco said profit for the year would be in line with “current market expectations” but said the range had been lowered to between £3.16bn and £3.42bn.
“With hindsight, we were a little to optimistic,” said Laurie McIlwee, finance director.The reduction in guidance will put further pressure on Mr Ilwee, who has become a lightning rod for some investors, concerned that the group does not have a good enough handle on its forecasts.

Some senior investors have been concerned that Tesco will be forced to cut prices aggressively to counter the rise of the so-called hard discounters, Aldi and Lidl, who are making rapid inroads into the UK grocery market. This could lead to a further reduction in the operating margin, from the current 5.2 per cent,
already lowered in a profit warning two years ago from its historic level of 6 per cent. Mr Clarke, said: “The margin doesn’t have to be 5.2 per cent forever.”

Rajapaksa seeks more time to address Tamil issue

INTERNATIONAL » SOUTH ASIA
JERUSALEM, January 9, 2014 Updated: January 9, 2014 18:23 IST
Rajapaksa seeks more time to address Tamil issue

Under international spotlight over alleged rights violations during the last phase of war with the LTTE, Sri Lankan President Mahinda Rajapaksa on Thursday sought more time to deal with the Tamil issue.

Defending his government’s efforts in rehabilitating the Tamil-dominated northern region, Mr. Rajapaksa said, “We always support peace... and we will keep supporting peace for all people.”

“In Sri Lanka we also fought thirty years of war against terrorists. So the whole development process, the economy went down. We suffered for thirty years but now we have peace for the last four years. In 2009 we managed to eradicate terrorism,” he said.

“Though we have eradicated terrorism, now we have to face the international community, which is pressurising us,” the Sri Lankan leader told his Israeli counterpart Shimon Peres.

Ruing the continuous condemnation of his country’s human rights record at international forums, Mr. Rajapaksa said that his country would need some time to deal with their demands.

“Now our issue is that some of the countries are criticising though there are no bombs blasting in our country.

Every March or every six months in Geneva we are facing a confrontation with these countries. Some of the Western countries are bringing resolutions in the Human Rights Commission,” he said in reference to resolutions brought in the UNHCR.

“What we say is that we want time because in three to four years these issues cannot be sorted out,” Mr. Rajapaksa argued.

The UN Human Rights Council (UNHRC) in March had adopted a US-sponsored resolution against Sri Lanka over its rights record, with 25 countries including India voting in favour of the document.

The resolution had urged Sri Lanka to reconcile with the Tamils and address outstanding issues of rights accountability.

Elaborating on steps taken by his government to develop the northern peninsula region and to integrate Tamils into the mainstream, the Sri Lankan President said that his government has spent almost USD 400 million in developing the region.

“Within these four years, we have developed the north economically and we have released 14,000 prisoners, rehabilitated them, sent them back to the society. We believe that the society can rehabilitate people more than the government,” Mr. Rajapaksa stressed.“We took that risk and released all the combatants.

There were child soldiers. We released them within three months. There were nearly 3,00,000 displaced people. We have settled them now. There were mines so we had to de-mine the places,” he pointed out as confidence building measures undertaken by his government.

“You were really successful in bringing reconciliation to your people...it is not a small achievement...we followed your example with great admiration. It was an extraordinary lesson in history,”  Mr.Shimon Peres 

“We have built railway lines, roads, gave them electricity, water, drinking water, new hospitals, schools, so I think 400 million US dollars have been spent to develop north,” the Sri Lankan President emphasised.

In order to integrate the minority Tamil population into the political mainstream, Mr. Rajapaksa said that there were local government elections in the region and that the Tamils also participated in the Presidential elections.

He even hinted at reshuffling his Cabinet to accommodate the minority population.

“So we have done lots of development in those areas for people and we have recruited from the youth to the Sri Lankan army and in the police. We believe in one country and peace for all the people in Sri Lanka”, Mr. Rajapaksa asserted.

 Mr. Peres, speaking before Mr. Rajapaksa at the meeting, lauded Sri Lanka’s efforts in overcoming internal challenges.

“Your country faced so many difficulties but you were able to overcome them,” the Israeli President said.

“You were really successful in bringing reconciliation to your people...it is not a small achievement...we followed your example with great admiration. It was an extraordinary lesson in history,” he added.
====================

Sri Lanka : President Rajapaksa Meets Israeli Prime Minister Benjamin Netanyahu
Thu, 2014-01-09 08:09 — editor
 Jerusalem, 09 January, (Asiantribune.com):

During the bilateral talks between President Mahinda Rajapaksa and Israeli Prime Minister Benjamin Netanyahu this afternoon (Jan. 08) at the Prime Minister's Office in Jerusalem, Sri Lanka and Israel agreed.
President Mahinda Rajapaksa and Israeli Prime Minister Benjamin Netanyahu held bi-lateral discussions at the Prime Minister’s Office in Jerusalem Wednesday (Jan. 08). President Rajapaksa arrived in Jerusalem today as the final stop on his Middle East visit.

President Rajapaksa arrived in Jerusalem from Bethlehem Wednesday morning together with First Lady Shiranthi Wickremasinghe Rajapaksa for the final stop in their visit to three Middle Eastern countries. President Rajapaksa is the first Sri Lankan head of State to visit Israel since its inception.

In the area of agriculture, Israel agreed to provide technological assistance, including support to expand the scope of utilizing the drip irrigation system in Sri Lanka. Israel is known for the drip irrigation technology that it invented for the agricultural sector to cope with the water crisis in the region. Another water-related

technology that was discussed was desalination, a process through which potable water is produced from sea water.

Information technology and employment were other areas identified for strengthening cooperation between the two countries. Currently, there are approximately 7,000 Sri Lankans working in Israel as caregivers. The two leaders agreed to work towards increasing employment in this sector as well as seasonal

employment in agriculture. Israel pointed out that Israeli farmers are quite satisfied with quality of Sri Lankan employees working in the country.

Before the conclusion of the meeting, President Rajapaksa also thanked Israel for the tsunami assistance it provided.

"Thank you for the humanitarian assistance provided to Sri Lanka in the aftermath of the 2004 tsunami,” President Rajapaksa said.

Israel made financial donations and provided relief goods, food and clothing, field kitchens and a mobile medicine clinic for the Sri Lankan tsunami survivors.

Israeli National Security Advisor Mr. Yossi Cohen, Chief of National Information Directorate Mr. Liran Dan, Israel’s Non-Resident Ambassador to Sri Lanka in New Delhi Mr. Alon Ushpiz and Ambassador of Israel to the United States Mr. Ron Dermer were present at the discussion.

The Sri Lankan delegation comprised of Minister of External Affairs Prof. G. L. Peiris, Monitoring MP of the Ministry of External Affairs Mr. Sajin de Vass Gunawardena, Parliamentarian Mr. Roshan Ranasinghe, Secretary to the President Mr. Lalith Weeratunga and Sri Lanka’s Ambassador in Israel Mr. Sarath Wijesinghe.

- Asian Tribune –

அபாஸ் ஈழத்துக்கு மட்டுமல்ல பாலஸ்தீனத்துக்கும் துரோகியே!

MR conferred with “Star of Palestine” award
MONDAY, 06 JANUARY 2014

The Government of Palestine today conferred President Mahinda Rajapaksa with the “Star of Palestine” – the highest award of the State of Palestine.

“The relations between Sri Lanka and the State of Palestine are exceptional and we remain committed to extending our fullest support to the State of Palestine and the friendly people of Palestine,” President Rajapaksa said during the conferment ceremony.

President Rajapaksa, on behalf of the people of Sri Lanka, conferred the “Sri Lanka Mitra Vibhushana” awards on former Palestinian President Yasser Arafat and current President Mahmoud Abbas.

The President, First Lady Shiranthi Wickremasinghe Rajapaksa and a Sri Lankan delegation are currently visiting the Middle East engaging in state visits to Jordan, Palestine and Israel.

External Affairs Minister Prof. G.L. Peiris, Monitoring MP of the Ministry of External Affairs Sajin de Vass Gunawardena, Parliamentarians Kamala Ranatunga and Roshan Ranasinghe, Secretary to the President Lalith Weeratunga and Sri Lanka’s Ambassador in  Jordan Gamini Rajapakse were among the Sri Lankan delegation.