Global News Journal

Beyond the World news headlines

from Global Investing:

Never Mind The Bankers

Malcolm McLaren, the man who gave us The Sex Pistols, has found the real punks -- bankers. In an interview with Britain's The Observer, he says punk was not just about spiky hair and ripped t-shirts.

"It was all about destruction, and the creative potential within that. It turns out that the bankers may have been the biggest punks of all."

McLaren says we are now at a transformative moment.

"We're at the end of the culture of desires; we may be going back to a culture of necessity."

God Save The Queen

from Pakistan: Now or Never?:

“Plan C” – Pakistan turns to the IMF.

Pakistan has agreed with the International Monetary Fund (IMF) on a $7.6 billion emergency loan to stave off a balance of payments crisis. 

Shaukat Tarin, economic adviser to the prime minister, said the IMF had endorsed Pakistan's own strategy to bring about structural adjustments. The agreement is expected to encourage other potential donors, who are gathering in Abu Dhabi on Monday for a "Friends of Pakistan" conference.

Bailing out Russian oligarchs


Posted by Guy Faulconbridge

Not all of Russia’s rich businessmen are queuing up for a loan under a government rescue package offering billions of dollars in state funds to bail out oligarchs who have been badly hit by the global financial crisis.

Russian billionaires Oleg Deripaska and Mikhail Fridman this week got a total of $6.5 billion in loans from a state-owned bank to help them cover foreign debts secured against stakes in major Russian companies, according to industry sources.

Russia talks to foreign investors – in private


Posted by Gleb Bryanski

Foreign investors who filed into a Moscow hotel on Wednesday anxious to hear what Russia’s anti-crisis tsar First Deputy Prime Minister Igor Shuvalov had to say about the future of the market were disappointed to find he had not shown up.

They had many questions: the stock market is down around 70 percent since May peak, gold and forex reserves are have fallen below $500 billion for the first time in eight months as Russia props up the rouble and the economic outlook is uncertain.

What will be the shape of the world’s new financial order?


A man protests outside the New York Stock Exchange October 13, 2008. Governments around the world bet hundreds of billions of dollars to rescue failing banks on Monday, sending world stocks soaring and giving Wall Street its biggest one-day gain ever. REUTERS/Shannon Stapleton (UNITED STATES)The global financial crisis has produced broad agreement that the world needs a new financial architecture, but world leaders are a long way from reaching agreement on what shape it should take.

Many countries have rescue plans to support banks and unfreeze credit markets. The United States has set in motion reforms to change the relationship between Washington and Wall Street.

Leaders unite over financial crisis, but is it enough?


Italy’s Prime Minister Silvio Berlusconi (C) gestures as he arrives with Greece’s Prime Minister Costas Karamanlis (2nd L) to attend a meeting at the Elysee Palace in Paris October 12, 2008. France’s President Nicolas Sarkozy and leaders of euro zone countries hold an emergency meeting in Paris to agree on specific, pan-European measures to prop up the battered financial sector and halt market panic. REUTERS/Eric Feferberg/PoolEuropean leaders have finally got their act together. After weeks of looking divided over how to tackle the global financial crisis, they agreed on joint measures at  emergency talks in Paris. 

Their meeting followed talks in Washington at the weekend involving G7 finance ministers and officials from the International Monetary Fund and the World Bank at which governments pledged to support the financial system. U.S. President George W. Bush said he was confident the world’s major economies could overcome the challenges.

‘Palin-speak’ catches on in Europe


palin.jpgPoliticians are always looking for new ways of dealing with the press and public. These days, for example, it is quite common for them to say they “misspoke” about something – a neat way of admitting to a mistake without actually doing so. This was made popular by the Richard Nixon’s old press secretary Ron Ziegler who would famously say something one day then announce “I misspoke myself” the next day. Such statements, Time magazine reported in 1973, were “not incorrect, not misinformed, not untrue – simply inoperative, like batteries gone dead”.Is it now possible that press-shy Republican vice presidential candidate Sarah Palin has come up with a new technique set to be emulated far and wide? During her debate with Democratic counterpart Joe Biden last week, she responded to one question by saying she was not going to answer it because she wanted to talk about something else.
Probably coincidental, but British finance minister Alistair Darling did much the same thing on Wednesday as he was part nationalising Britain’s bank. “I think I heard enough to be able to answer you, or put it another way, here is the answer I am going to give anyway, regardless of what your question might be!,” he said in response to one question.

Can it be long before we hear someone say “I am going to Palin that one” or “I’ll take a Palin on that”?

EU response to financial crisis-every man for himself


eu.jpgThe European Union has come under sharp criticism for having a fragmented approach to the financial crisis. It is exemplified by Ireland’s go-it-alone decision to guarantee all accounts and Germany’s surprise announcement after a meeting of leading members that it was taking unilateral action too.

Relief, then, that the 27 member states issued a statement on Monday that they would do what it takes to bolster citizens’ savings and build financial stability. Only problem was, they could not coordinate the announcement. First Italian Prime Minister Silvio Berlusconi released it, then Portugal. Only after a while did French President Nicholas Sarkozy weigh in. He does head the current EU presidency after all.

U.S. Economic Crisis a Hot Topic on Chinese Blogs

By Oiwan Lam

Thomson Reuters is not responsible for the content of this post – the views are the author’s alone.

According to a New York Times report in early September, the Chinese Central Bank has invested over $1 trillion in U.S. Treasury bills, bonds and debt securities. Of that, $376.3 billion has been put into the mortgage backed securities of Fannie Mae and Freddie Mac, 21% of the Chinese government’s foreign currency reserve.

Financial Crisis: has the world changed?


1929.jpgThere are moments when tectonic plates shift and history changes course.

Sometimes those shifts are barely perceptible — the Treaty of Versailles that ended World War One but also bred German resentment and the rise of Nazism; the Yalta conference that helped create the United Nations as a guardian of peace but also led to the Iron Curtain that divided Europe for nearly half a century; and the Great Depression (arguably the greatest catastrophe of the 20th century, says Martin Wolf).

It is only when we look back we see the world has changed.

Are we at such a point now? 

John Gray in The Observer speaks of a shattering moment in America’s fall from power. Germany’s Finance Minister Peer Steinbrueck has said the United States has lost its financial superpower status. French President Nicolas Sarkozy has said we need to rebuild the whole financial system from scratch, as they did at Bretton Woods. The Telegraph called for a ‘better capitalism’.