The pound rose against the euro as U.K. Chancellor of the Exchequer George Osborne outlined budget cuts designed to start redressing the government budget deficit, the largest among the Group of Seven nations.
Sterling gained against nine of its 16 most-traded peers. Osborne, who became Chancellor on May 11, announced 6.25 billion pounds ($9 billion) of spending cuts today. He will set out broader plans in an emergency budget on June 22. Concern Britain will struggle to cut the deficit helped drive the U.K. currency 3.4 percent lower this year, according to Bloomberg Correlation- Weighted Currency Indexes. The euro tumbled 6.6 percent, the indexes show, as concern deepened the region’s debt crisis has yet to be solved.
“The market’s giving the new government a reasonable stay of execution, wanting to see how definitive they are in the budget-deficit stakes” said Jeremy Stretch, a senior currency strategist at Rabobank International in London. “The 6 billion pounds of cuts today are a step in the right direction. For now, markets are cautiously rewarding sterling.”
The U.K. currency appreciated 1.2 percent to 85.91 pence per euro as of 10:36 a.m. in London. The pound traded at $1.4459, from $1.4460 last week. It weakened to $1.4231 on May 20, its lowest level since March 30, 2009.
The pound may strengthen to 75 pence per euro this year as government debt has a smaller drag on growth in the U.K. than in the euro region, Standard Bank Plc said.
No Debt Crisis
“We do not believe that the debt crisis in the euro zone means that there will be a debt crisis in the U.K.,” said Steven Barrow, head of G-10 currency research at Standard Bank in London . “The government’s budget deficit may be higher than most in the euro zone, but high deficits alone do not spell debt downgrades.”
Government bonds were little changed, with the 10-year gilt yield at 3.55 percent. The two-year yield was at 0.88 percent.
The U.K. government plans to sell index-linked gilts due 2050 through banks this week. The Debt Management Office, which handles bond sales for the Treasury, said May 14 that HSBC Holdings Plc, JPMorgan Chase & Co., Goldman Sachs Group Inc. and UBS AG had been asked to sell the securities in a so-called syndicated transaction.
Gilts have returned about 5 percent this year, compared with gains of 6.3 percent for German government bonds and 4.4 percent for U.S. Treasuries, according to indexes compiled by Bank of America Merrill Lynch.
Monday, May 24, 2010
Monday, April 26, 2010
Tories to create Economic Crime Agency
The Tories say the new body would toughen up the Government’s stance on white collar crime.
The ECA would take over the powers and responsibilities held by the SFO, FSA, Fraud Prosecution Service, the Revenue & Customs division and the OFT.
.Under the Tory proposals companies would be made liable for the actions of rogue traders and fraudsters working within the firm. At present, companies can claim innocence of crimes perpetrated by employees.
The Conservatives have already pledged to scrap the FSA, should they gain power, and replace it with a Consumer Protection Agency to regulate IFAs with prudential regulation passed to the Bank of England.
Shadow Chancellor George Osborne (pictured) told The Sunday Telegraph: “We are very, very bad at prosecuting white-collar crime. We have six different government departments, eight different agencies a complete alphabet soup and the result is that these crimes go unpunished. There is £30bn worth of fraud taking place in the British economy each year.”
“Frankly, robbing someone of their pension through some con is almost as bad as mugging them in the street. But because it’s a crime that takes place behind a computer screen, or at the end of a telephone, it doesn’t get followed up and prosecuted.”
The Tories plan to concentrate on economic issues this week, ahead of the third and final leaders’ debate on Thursday evening where the debate will focus on economic issues.
The ECA would take over the powers and responsibilities held by the SFO, FSA, Fraud Prosecution Service, the Revenue & Customs division and the OFT.
.Under the Tory proposals companies would be made liable for the actions of rogue traders and fraudsters working within the firm. At present, companies can claim innocence of crimes perpetrated by employees.
The Conservatives have already pledged to scrap the FSA, should they gain power, and replace it with a Consumer Protection Agency to regulate IFAs with prudential regulation passed to the Bank of England.
Shadow Chancellor George Osborne (pictured) told The Sunday Telegraph: “We are very, very bad at prosecuting white-collar crime. We have six different government departments, eight different agencies a complete alphabet soup and the result is that these crimes go unpunished. There is £30bn worth of fraud taking place in the British economy each year.”
“Frankly, robbing someone of their pension through some con is almost as bad as mugging them in the street. But because it’s a crime that takes place behind a computer screen, or at the end of a telephone, it doesn’t get followed up and prosecuted.”
The Tories plan to concentrate on economic issues this week, ahead of the third and final leaders’ debate on Thursday evening where the debate will focus on economic issues.
Tuesday, March 30, 2010
Friday, March 19, 2010
South China's industrial heartland of Guangdong to raise minimum wage by average of 21% to range of $96 to $150 a month
The minimum wage in South China's industrial heartland Guangdong Province, is to be raised by 21 per cent on average to a range from RMB 660 renminbi to 1,030 ($96 to $ 150) a month from May 1st in a bid to attract migrant workers, local authorities said Thursday.
Guangdong, north of Hong Kong, in the Pearl River delta region, which is responsible for a third of China’s exports and would rank as one of the world’s 10 largest exporters if it were a country, is finding it harder to attract migrant labour as other regions develop. So on Thursday, it was announced by the Guangdong Provincial Human Resources and Social Security Department that the minimum wage of both full-time and part-time workers will be raised.
The adjusted minimum wage is divided into five categories ranging from RMB660 to 1,030 yuan/renminbi ($96 to $ 150) a month, depending on the financial situation in different cities in the province. The move came a month after the country's second biggest exporter, Jiangsu Province, raised its minimum wage by about 12 per cent to 960 yuan ($140.64) from the current 850 yuan ($124). East China's Fujian Province increased its minimum wage by 24.5 per cent from March 1st. China is making huge investments in its rail network and last December, it launched the world’s fastest passenger train service between Guangzhou, Guangdong's provincial capital, and the central city of Wuhan, covering 1,100km in just three hours. The railway investment will result in more balanced regional development.
"A 20 per cent raise is a big jump because many other provinces offer around 10 per cent. That's because Guangdong wants to stand out from among other competitors," Lü Xuejing, professor of social security at Capital University of Economic Business, told the Global Times Thursday.
"However, I don't think the adjustment is attractive enough as it doesn't make much of a difference to work as a farmer at home or as a migrant worker far from home in Guangdong," she said.
She explained that the higher minimum wage might attract some older migrant workers but won't appeal to skilled workers who are less willing to do manual work.
According to the Beijing Times, Beijing will raise its monthly minimum wage levels by 10 per cent from the current RMB 800 ($117.2) possibly next month.
Wage pressure is coinciding with pressure on China to raise the value of its currency.
"It is unfair and harmful to continuously depreciate a country's own currency and ask other countries to revalue their currencies in the meantime," Foreign Ministry spokesman Qin Gang said at a regular press conference on Thursday in Beijing.
The China Business News news service reported Friday that the Ministry of Commerce and the Ministry of Industry and Information Technology are expected to disclose the results of a study on the effects of yuan exchange-rate appreciation on exporters by April 27th..
Zhang Wei, deputy director of the China Chamber of International Commerce, is quoted as saying the Ministry of Commerce's yuan stress test involves over 1,000 companies in 12 industries.
Zhang Wei, vice chairman of the China Council for the Promotion of International Trade, said at a press briefing in Beijing on Thursday that exporters in labour-intensive sectors such as garments and furniture worked on margins as low as 3 per cent, he said. "If the yuan rises, these companies will face the immediate risk of going bust as their profit margin is already very narrow," Zhang told reporters. "So for these companies, the consequences would be disastrous."
Guangdong, north of Hong Kong, in the Pearl River delta region, which is responsible for a third of China’s exports and would rank as one of the world’s 10 largest exporters if it were a country, is finding it harder to attract migrant labour as other regions develop. So on Thursday, it was announced by the Guangdong Provincial Human Resources and Social Security Department that the minimum wage of both full-time and part-time workers will be raised.
The adjusted minimum wage is divided into five categories ranging from RMB660 to 1,030 yuan/renminbi ($96 to $ 150) a month, depending on the financial situation in different cities in the province. The move came a month after the country's second biggest exporter, Jiangsu Province, raised its minimum wage by about 12 per cent to 960 yuan ($140.64) from the current 850 yuan ($124). East China's Fujian Province increased its minimum wage by 24.5 per cent from March 1st. China is making huge investments in its rail network and last December, it launched the world’s fastest passenger train service between Guangzhou, Guangdong's provincial capital, and the central city of Wuhan, covering 1,100km in just three hours. The railway investment will result in more balanced regional development.
"A 20 per cent raise is a big jump because many other provinces offer around 10 per cent. That's because Guangdong wants to stand out from among other competitors," Lü Xuejing, professor of social security at Capital University of Economic Business, told the Global Times Thursday.
"However, I don't think the adjustment is attractive enough as it doesn't make much of a difference to work as a farmer at home or as a migrant worker far from home in Guangdong," she said.
She explained that the higher minimum wage might attract some older migrant workers but won't appeal to skilled workers who are less willing to do manual work.
According to the Beijing Times, Beijing will raise its monthly minimum wage levels by 10 per cent from the current RMB 800 ($117.2) possibly next month.
Wage pressure is coinciding with pressure on China to raise the value of its currency.
"It is unfair and harmful to continuously depreciate a country's own currency and ask other countries to revalue their currencies in the meantime," Foreign Ministry spokesman Qin Gang said at a regular press conference on Thursday in Beijing.
The China Business News news service reported Friday that the Ministry of Commerce and the Ministry of Industry and Information Technology are expected to disclose the results of a study on the effects of yuan exchange-rate appreciation on exporters by April 27th..
Zhang Wei, deputy director of the China Chamber of International Commerce, is quoted as saying the Ministry of Commerce's yuan stress test involves over 1,000 companies in 12 industries.
Zhang Wei, vice chairman of the China Council for the Promotion of International Trade, said at a press briefing in Beijing on Thursday that exporters in labour-intensive sectors such as garments and furniture worked on margins as low as 3 per cent, he said. "If the yuan rises, these companies will face the immediate risk of going bust as their profit margin is already very narrow," Zhang told reporters. "So for these companies, the consequences would be disastrous."
Thursday, March 11, 2010
The IRS Can Help in Disastrous Times
There's no way to plan for a disaster. But there is recovery help from an unexpected source: the Internal Revenue Service.
In most instances, you can count unforeseen casualty losses as itemized deductions. Of course, you have to fill out extra paperwork and keep good records.
For 2008 and 2009 tax years, however, some changes were made to provide extra tax help, including a standard deduction option, for individuals whose losses were the result of a major disaster.
Whether your claim is a more routine loss or the result of a presidentially declared disaster, you won't recover dollar for dollar the financial loss you suffered. But every little bit helps. For major disasters, it's usually worth the effort to claim the tax write-off.
What counts as a casualty?
First, your loss must meet IRS deductibility guidelines. The agency classifies a casualty as the damage, destruction or loss of property resulting from a sudden, unexpected or unusual event. The losses can result from natural or man-made disasters.
Natural wear and tear isn't a casualty loss. The IRS won't accept claims for lost property, termite damage to your home or the death of your prize elm tree due to disease.
Figuring the deduction amount
After you've established that your loss is allowable, it's time to figure out exactly how much you can deduct. The IRS sets two limits: First, you must reduce your loss amount by $100, and the remainder then must be more than 10 percent of your adjusted gross income. You also have to subtract any insurance money you got for the loss.
MORE FROM BANKRATE.COM
Current DateTime: 01:17:42 11 Mar 2010
LinksList Documentid: 35461541
Roth IRA Stock Trades Won't Bother IRSHow to Fix Your Credit Score, Step By StepInteractive Map: Where the Jobs Are
For example, after collecting from your homeowners' insurance, you were out of pocket $6,000 in damages from a flood. You subtract $100 from that $6,000 loss, giving you $5,900. Then you subtract 10 percent of your AGI, which for our example, let's say, is $50,000, giving you an amount of $5,000. That leaves you a casualty loss claim on your tax return of $900 ($6,000 - $100 - $5,000 = $900).
You need Form 4684 to figure and report your casualty loss and Schedule A to itemize your loss deduction. Attach both of these to your individual income tax return Form 1040. You don't have to include supporting documents with your return, but you need those records to help you complete Form 4684 and to verify your expenses and losses, if the IRS ever questions the deduction.
Then you have to figure out the "real money" value of your deduction. Deductions don't directly translate into tax dollars saved, so a casualty deduction of $5,000 won't get you a five grand refund. Rather, deductions reduce your taxable income. The less taxable income you have, the smaller your tax bill. After you determine your casualty loss deduction, you must refigure your taxes using the new taxable income amount to see just how much of a refund you'll get.
In most instances, you can count unforeseen casualty losses as itemized deductions. Of course, you have to fill out extra paperwork and keep good records.
For 2008 and 2009 tax years, however, some changes were made to provide extra tax help, including a standard deduction option, for individuals whose losses were the result of a major disaster.
Whether your claim is a more routine loss or the result of a presidentially declared disaster, you won't recover dollar for dollar the financial loss you suffered. But every little bit helps. For major disasters, it's usually worth the effort to claim the tax write-off.
What counts as a casualty?
First, your loss must meet IRS deductibility guidelines. The agency classifies a casualty as the damage, destruction or loss of property resulting from a sudden, unexpected or unusual event. The losses can result from natural or man-made disasters.
Natural wear and tear isn't a casualty loss. The IRS won't accept claims for lost property, termite damage to your home or the death of your prize elm tree due to disease.
Figuring the deduction amount
After you've established that your loss is allowable, it's time to figure out exactly how much you can deduct. The IRS sets two limits: First, you must reduce your loss amount by $100, and the remainder then must be more than 10 percent of your adjusted gross income. You also have to subtract any insurance money you got for the loss.
MORE FROM BANKRATE.COM
Current DateTime: 01:17:42 11 Mar 2010
LinksList Documentid: 35461541
Roth IRA Stock Trades Won't Bother IRSHow to Fix Your Credit Score, Step By StepInteractive Map: Where the Jobs Are
For example, after collecting from your homeowners' insurance, you were out of pocket $6,000 in damages from a flood. You subtract $100 from that $6,000 loss, giving you $5,900. Then you subtract 10 percent of your AGI, which for our example, let's say, is $50,000, giving you an amount of $5,000. That leaves you a casualty loss claim on your tax return of $900 ($6,000 - $100 - $5,000 = $900).
You need Form 4684 to figure and report your casualty loss and Schedule A to itemize your loss deduction. Attach both of these to your individual income tax return Form 1040. You don't have to include supporting documents with your return, but you need those records to help you complete Form 4684 and to verify your expenses and losses, if the IRS ever questions the deduction.
Then you have to figure out the "real money" value of your deduction. Deductions don't directly translate into tax dollars saved, so a casualty deduction of $5,000 won't get you a five grand refund. Rather, deductions reduce your taxable income. The less taxable income you have, the smaller your tax bill. After you determine your casualty loss deduction, you must refigure your taxes using the new taxable income amount to see just how much of a refund you'll get.
Wednesday, January 13, 2010
Obama to announce TARP fee on banks on Thursday
Obama's announcement will come as U.S. unemployment is stuck in double digits and public anger is growing over big bonuses that some financial firms are poised to resume paying, barely a year after the height of the global financial crisis that made the bailout necessary.
The Obama administration official said the amount of money raised from the fees would not exceed $120 billion since this was the higher end of conservative estimates of the cost of the Troubled Asset Relief Program, or TARP.
U.S. Treasury officials expect TARP losses to be much lower than that sum, and over the course of years the fee will pay back any costs of the $700 billion taxpayer bailout, the administration official said.
TARP was created by President George W. Bush's administration to shore up the financial system during the financial meltdown, which plunged the United States into the worst recession in 70 years and has pushed unemployment to 10 percent.
The proposal of a TARP fee has been under discussion since August and Obama felt it was important to find ways to make sure taxpayers got all the money back sooner than was required under the law, the administration official said.
A number of big U.S. banks have already repaid the capital they received under TARP. The legislation that created TARP calls for taxpayer losses to be recouped by 2013.
A financial industry source in Washington told Reuters that many options on how to structure such a fee were being discussed, including basing it on the amount of a financial firm's liabilities.
The source, speaking anonymously because the fee has not officially been proposed, said government officials are also discussing exempting automakers and insurer American International Group from the fee, even though these companies are expected to represent a large chunk of the bailout losses.
The Obama administration official said the amount of money raised from the fees would not exceed $120 billion since this was the higher end of conservative estimates of the cost of the Troubled Asset Relief Program, or TARP.
U.S. Treasury officials expect TARP losses to be much lower than that sum, and over the course of years the fee will pay back any costs of the $700 billion taxpayer bailout, the administration official said.
TARP was created by President George W. Bush's administration to shore up the financial system during the financial meltdown, which plunged the United States into the worst recession in 70 years and has pushed unemployment to 10 percent.
The proposal of a TARP fee has been under discussion since August and Obama felt it was important to find ways to make sure taxpayers got all the money back sooner than was required under the law, the administration official said.
A number of big U.S. banks have already repaid the capital they received under TARP. The legislation that created TARP calls for taxpayer losses to be recouped by 2013.
A financial industry source in Washington told Reuters that many options on how to structure such a fee were being discussed, including basing it on the amount of a financial firm's liabilities.
The source, speaking anonymously because the fee has not officially been proposed, said government officials are also discussing exempting automakers and insurer American International Group from the fee, even though these companies are expected to represent a large chunk of the bailout losses.
Monday, November 30, 2009
Cyber Monday sales up
Retail Web sites kept amping up the deals Monday, the first day after Thanksgiving weekend's strong online sales, to try to maintain the momentum.
Meanwhile, a research firm that tracks business at stores reported tepid sales and customer traffic for Friday and Saturday that confirmed a so-so start to the season for the bricks-and-mortar world.
Though the Web is only about 10 percent of the holiday shopping pie, it's seen most of the growth so far this year — an encouraging sign after last year's first online sales decline.
Subscribe to:
Posts (Atom)