Actual finance blog

Premier Mario Monti convened a Cabinet meeting in Rome on Sunday to discuss emergency austerity and growth measures aimed at saving the euro currency from collapse.

Monti is under extreme pressure to come up with speedy and credible measures that will persuade markets to stop betting against the common currency.

The Cabinet was originally scheduled to meet Monday, but was moved up following Monti’s weekend of meetings with political parties, unions, business groups and consumer lobbies.

The premier hasn’t disclosed details of his rescue plan, but has said it includes both austerity cuts and measures to boost growth in Italy’s anemic economy. He has promised it would be socially equitable, and that it would go after those who hadn’t paid their share of taxes before.

With the meeting still under way, Monti’s office issued a statement saying the package was still under discussion.

The various parties briefed have said the package likely includes reinstating an unpopular home property tax abolished by Berlusconi, raising the sales tax and the income tax at the highest brackets by a few percentage points, and requiring Italians to work more than the 40 years now needed to receive a pension.

The head of Italy’s industrial lobby said Sunday that the survival of the common euro currency depends on Italy’s coming up with very strong austerity and growth measures _ followed by a concerted effort at the European level so that Italian sacrifices are not in vain.

Confindustria President Emma Marcegaglia told reporters after meeting with Monti that the measures are “very heavy.”

The coming days “will decided if the euro will survive or not no fax payday loans. The first move to save the euro is in Italian hands, with a very strong measures,” Marcegaglia said. The measures will be “fundamental to saving Italy and to saving the euro.”

Italian borrowing costs have spiked, which could spell disaster if Italy is unable to keep up on payments to service its enormous debt of euro1.9 trillion ($2.57 trillion), or 120 percent of its GDP.

Unlike Greece, Portugal and Ireland, which got bailouts after their borrowing rates skyrocketed, the eurozone’s third-largest economy is considered to be too big to bail out. An Italian default would be disastrous for the 17-member eurozone and reverberate throughout the global economy.

Union head Raffaele Bonnani, however, urged Monti to reconsider raising the pension age across the board, saying that workers in hard labor should be allowed to retire without added requirements, and that women who join the work force after raising children might have to work well into old age if the 40-year seniority requirement were raised.

But he said he was against calling a general strike at this sensitive moment, and would instead pursue a policy of negotiation with the government.

Marcegaglia said the measures were concentrated on raising taxes _ and to balance that she called for an immediate look at ways to cut political and bureaucratic spending. “This kind of fiscal pressure is not sustainable,” she said.

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Shops in India have closed their doors in observance of a nationwide strike to protest the government’s decision to allow big-box retailers in the country.

Hundreds of traders marched on New Delhi streets Thursday demanding the Cabinet revoke its decision. The strike was only partially observed in New Delhi, Mumbai and other cities.

The government provoked furor last week by deciding foreign retailers could own up to 51 percent of supermarkets and 100 percent of single-brand stores. Shopowners fear that the entry of companies such as Wal-Mart and Tesco will crush local mom-and-pop stores.

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President Barack Obama has signed legislation giving tax breaks to companies that hire unemployed veterans, telling businesses “if you are hiring, hire a veteran.”

Obama says Monday that the legislation will help about 850,000 veterans who are currently unemployed and tens of thousands who will be returning from Iraq and Afghanistan in the coming months.

The bill passed Congress last week with rare bipartisan support.

The brief moment of unity was overshadowed by the apparent failure of lawmakers from both parties on a special panel to reach an agreement on $1.2 trillion in savings ahead of a Wednesday deadline low fee payday advance.

The legislation signed by Obama creates tax breaks for companies that hire jobless veterans and helps provide vets with job training and counseling. It also repeals a 2006 law that would require the federal, state and local governments to withhold 3 percent of their payments to contractors.

The veterans’ legislation is the first proposal included in Obama’s $447 billion bill to win congressional approval.

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Egyptian riot police firing tear gas and rubber bullets stormed into Cairo’s Tahrir Square Saturday to dismantle a protest tent camp, setting off clashes that killed one protester, injured hundreds and raised tension days before the first elections since Hosni Mubarak’s ouster.

The scenes of protesters fighting with black-clad police forces were reminiscent of the 18-day uprising that forced an end to Mubarak’s rule in February. Hundreds of protesters fought back, hurling stones and setting an armored police vehicle ablaze.

The violence raised fears of new unrest surrounding the parliamentary elections that are due to begin on Nov. 28. Public anger has risen over the slow pace of reforms and apparent attempts by Egypt’s ruling generals to retain power over a future civilian government payday advance lenders.

Witnesses said the clashes began when police dismantled a tent camp commemorating the hundreds of protesters killed in the uprising and attacked about 200 demonstrators who had camped in the square overnight in an attempt to restart a long-term sit-in there.

Police fired rubber bullets, tear gas and beat protesters with batons. A 23-year-old protester died from a gunshot, said Health Ministry official Mohammed el-Sherbeni. At least 676 people were injured, he said.

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The International Monetary Fund says China’s banks face growing risks due to a credit boom and it urged Beijing to reduce the government role in lending decisions.

The report Tuesday adds to warnings by industry analysts that China’s banks face a possible rise in bad loans and other problems after a flood of lending helped it rebound quickly from the 2008 global crisis.

The IMF cited possible risks from a fall in soaring real estate prices, a rise in bad loans due to crisis-related lending and growing imbalances in an economy that relies heavily on exports and investment direct payday lenders.

The IMF urged Beijing to move further toward using interest rates instead of direct orders to regulate lending.

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Olympus Corp. said Thursday it is postponing an earnings announcement set for next week amid an accounting scandal that has wiped out about four-fifths of its stock price and tarnished Japan’s corporate image.

The Japanese camera and medical equipment maker said in a statement Thursday that it cannot submit its earnings report for the April-September period on Nov. 14 as planned due to an ongoing review by a company-appointed investigation panel.

In response, the Tokyo Stock Exchange placed Olympus stock on supervisory status, warning that it could be removed from the stock exchange if it fails to release its earnings within a month, or by Dec. 14.

Olympus has been battered by a scandal over a $687 million payment for financial advice and expensive acquisitions of companies unrelated to its mainstay businesses.

On Tuesday, the company said top executives used the payment and acquisitions to hide massive losses, reversing denials of any wrongdoing. Its British CEO Michael Woodford first raised the concerns last month, calling for Olympus executives to resign _ and was then promptly fired by the board.

Olympus said it will do its “utmost” to submit the earnings report by Dec. 14, and said it was cooperating with the “strict and thorough investigation” being conducted by the independent committee. Results of the probe are expected in early December.

“We deeply apologize for causing trouble to our shareholders, investors, customers and anyone else who are affected by the matter,” Olympus said online pay day loans.

The company’s shares have plunged to 484 yen Thursday from 2,482 yen on Oct. 13, the day before Woodford’s dismissal.

Olympus dismissed Executive Vice President Hisashi Mori on Tuesday, saying he was involved in the cover-up along with Tsuyoshi Kikukawa, who abruptly resigned as chairman last month in an attempt to placate angry shareholders.

Shuichi Takayama, who took over as president in late October, has said he can not disclose the size of the losses or any other detail because all data had been handed over to the independent panel.

The Tokyo-based company had denied wrongdoing over the $687 million payment to the Wall Street financial adviser as part of a $2 billion purchase of U.K.-based Gyrus Group Plc. The payment represented more than a third of the acquisition price. Fees for advisers are normally 1 to 2 percent of the deal value.

Business groups and analysts have said the scandal reflects weaknesses in Japan’s corporate governance including too few independent directors on company boards.

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ROME

ATHENS—Greece’s prime minister launched efforts to form a coalition government to run the country for the next four months, arguing Saturday the move is vital to securing a mammoth new debt deal and demonstrating commitment to remaining in the eurozone.

George Papandreou won an early morning confidence vote in the Socialist-led parliament on a pledge that he was willing to step aside and form a cross-party caretaker government. But it remains unclear whether the main opposition conservatives and other parties will take part in the talks and drop a demand for an immediate general election.

Hours after winning the vote, Papandreou met with President Karolos Papoulias.

“Cooperation is necessary to guarantee — for Greece and for our partners — that we can honor our commitments,” Papandreou said at the start of Saturday’s hourlong meeting.

“I am concerned that a lack of cooperation could trouble how our partners see our will and desire to remain in the central core of the European Union and the euro,” he said.

Papandreou, midway through his four-year term, was forced into the move by his austerity-weary Socialist party after he abandoned a disastrous proposal to hold a referendum on a new European debt deal. The idea was quickly scrapped this week after throwing world markets into renewed turmoil and drawing an angry reaction from European leaders.

Frustrated with Greece’s protracted political disagreements, the country’s creditors have threatened to withhold the next critical 8 billion euros ($11 billion U.S.) loan installment until the new debt deal is formally approved in Greece.

Greece is surviving on a 110 billion euros ($150 billion U.S.) rescue-loan program from eurozone partners and the International Monetary Fund no fax cash advances. It is currently finalizing a second mammoth deal: to receive an additional 130 billion euros ($179 billion U.S.) in loans and bank support, with banks agreeing to cancel 50 percent of their Greek debt.

“My immediate aim is to do everything I can to create a broad cooperation government … I am not tied to my post,” Papandreou said.

“Cooperation is required for the country. We must not go to elections at this moment because it would have catastrophic consequences for the Greek economy and the livelihoods of Greek citizens,” he said. “The (new debt) agreement is very significant and will relieve much of the burden on the Greek citizen.”

Socialist party officials insisted any new government would need until late February to secure the second deal, warning that a snap poll could scuttle it. They insisted Saturday that Papandreou’s offer to step aside was sincere, and called on Antonis Samaras, leader of the conservative New Democracy party, to urgently reconsider his party’s position.

“If Mr. Samaras were willing to back a new government, the prime minister would resign today,” Yiannis Magriotis, a deputy public works minister, told private Skai television.

Prominent political analyst Ilias Nicolacopoulos argued it would be difficult for Samaras to avoid the coalition talks altogether — even if he remains reluctant to share power with Papandreou.

“There will be a tough game of poker — all of last week was a poker game — to determine what type of government can be formed,” he told AP television.

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A new study contends that Scott Air Force Base has an annual economic impact on the St. Louis area of more than $3 billion, up from $2.1 billion cited in a similar study done a decade ago.

The study was commissioned by Scott and the Leadership Council Southwestern Illinois and was conducted by Woolpert LLC. Its findings were made public on Tuesday.

The study concludes that more than 136,000 area residents benefit directly from Scott either through employment at or retirement from the air base or through jobs that provide goods and services to the base. Scott is the largest employer south of Springfield in Illinois. It also is the sixth largest employer in the St credit score. Louis area, according to the Post-Dispatch employer database.

Scott has nearly 5,800 active duty military and 2,000 Air National Guard and Air Force Reserve members stationed there. The base also employs more than 3,100 federal civilian employees and more than 2,400 non-appropriated fund contract civilians and private business employees.

(EDITOR’S NOTE: The story was updated to correct the relative size of Scott Air Force Base among local employers.)

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It’s the plane that is supposed to change the experience of flying.

No more stuffy noses, dry throats or severe fatigue. Larger windows to provide a stronger connection to the world outside. And mood lighting that can either ease jet lag or turn the plane into a nightclub at 40,000 feet.

And for the most part, Boeing’s 787 succeeds. Flying it is more enjoyable. But it’s still flying. Just because the plane is new doesn’t mean the food will taste better or you won’t be stuck in front of a kicking kid.

There has been plenty of hype surrounding the 787, a long-range plane marketed as The Dreamliner that carried its first passengers Wednesday on a four-hour flight from Tokyo to Hong Kong. It has been called “revolutionary” and “a game-changer.”

And, indeed, a sleek design makes the plane stand out the moment you step on board. A higher ceiling _ at least the perception of one _ reduces claustrophobia. And natural light pours in, creating a welcoming feeling.

Maybe that 10-hour flight won’t be so bad after all. Maybe.

The biggest benefit should come from features that fight jet lag. Those couldn’t really be experienced by the 240 reporters and aviation enthusiasts who made the relatively short inaugural flight.

They include a doubling of the humidity, to 16 percent, and bringing the cabin’s pressure closer to what it feels like on the ground. Planes are normally pressurized to 8,000 feet, higher than any point on the East Coast. Air inside the 787 is made to feel the equivalent of 6,000, slightly higher than Denver. The pressure and humidity changes should lead to fewer headaches and leave passengers with more energy after long trips.

The short flight also didn’t provide for a test of the full impact of LED lights that slowly change color, another feature designed to fight fatigue. The impact was felt when the cabin lit up in a funky rainbow display, turning the plane into something out of “Saturday Night Fever.” Add some loud music and it’s not too hard to imagine a bachelor or bachelorette party at 40,000 feet.

The lighting concept is being rolled out on other aircraft, including new models of the narrow-body 737. European aircraft maker Airbus also offers something similar on new A320s.

Another feature a passenger should notice on the 787 is the windows. The plane’s strong carbon-fiber frame, which allows for the humidity and pressure improvements, enables windows 30 percent larger than those on traditional aluminum-body planes small personal loans.

Just don’t expect window shades. Boeing replaced them with an electronic tinting feature. Click a button below the window and it slowly starts to darken. The window never becomes completely blacked out _ you can still see out _ but enough light is blocked to make sleeping possible. Not that anybody was trying to sleep during the boisterous inaugural flight. At the very least, you can picture little kids playing with the windows for hours.

Boeing also tackles the problem of crowded overhead bins. Getting bags into the bins, and opening and closing them when they are heavy and full, was easier than on any other plane.

The plane’s manufacturer says they are the largest bins on any plane, with enough room for one carry-on bag per passenger. While the bins are much larger, the only way that seemed feasible was with identically rectangular bags stacked in optimal order.

The plane is also supposed to be much quieter, both for passengers inside and people on the ground. Engines with a wave pattern in the metal lower the roar, although Boeing won’t say by how much.

And a lighter plane allows for more padding to protect passengers from noise and vibration. Wednesday’s flight seemed quieter, but a handheld sound meter registered noise levels similar to Boeing’s 777. (Maybe those soothing lights were playing tricks on the mind.)

The most-promising feature of the 787 will come on later models: a turbulence-dampening system. Accelerometers in the plane’s nose will register a sudden drop and sent a signal through fiber-optic cables to the wings. What would have been a 9-foot drop is cut to 3. No other plane has this technology.

Airlines have already purchased almost 800 of the original 787 because of promised fuel savings and the ability to open up new routes. Japan’s All Nippon Airways is the first to fly it. United Continental will be the first in the U.S. sometime late next year.

There are some features that Boeing can’t control. Individual airlines determine how much legroom passengers get. They also pick between a roomy eight-across seating arrangement or a more cramped nine-across layout.

All Nippon has eight seats in each row and installed a double armrest for the middle seats, providing a few extra inches of personal space.

And in the end, isn’t that all we want?

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