Christine Lagarde warns against ‘complacent’ Europe
On Oct.14 reporters asked Olli Rehn, the European Union commissioner for Economic and Monetary Affairs, what he thought about the budget stalemate in Washington. Perhaps it is now the time for the U.S. policymakers to go Dutch, he said. As stock markets in Europe swung with every setback in the negotiations in Washington, statements from European politicians began to move closer to panic. Speaking on Bloomberg Television on Oct.10, Christine Lagarde, French head of the International Monetary Fund, curtly described the consequences of a possible default as very negative and made a plea for leadership. John Bruton, the former Irish prime minister, is less diplomatic. A bond, after all, is a promise, he writes in an e-mail. Military might is not much use if you gain the reputation of not keeping your promises. Former German Finance Minister Hans Eichel says hes speechless that a global power behaves in such a manner, and that theres such a schism and hate in the system that it can steamroll over the interests of that global power and the rest of the world. Like others on the continent, Eichel is both livid and bewildered. How, Europe asks, could America have screwed this up so badly? Easy. European countries know how to absorb obstreperous new minority parties into politics without letting them paralyze the government. Washington has no history of doing to determined obstructionists what the Hague did to Wilders. Political parties mirror a countrys enduring divides. The U.S. splits along the Mason-Dixon line. The U.K.
Wednesday’s proposal by the 28-nation bloc’s executive arm would force airlines to buy Post to Facebook EU seeks carbon tax for all flights over Europe on USATODAY.com: http://usat.ly/1aQMdzo Incorrect please try again A link has been posted to your Facebook feed. Sent! A link has been sent to your friend’s email address. 1 To find out more about Facebook commenting please read the Conversation Guidelines and FAQs EU seeks carbon tax for all flights over Europe The Associated Press 7:40 a.m. EDT October 17, 2013 A passenger plane after takeoff from Switzerland’s Geneva International Airport on March 11, 2010. (Photo: AFP/Getty Images) SHARE 8 CONNECT 32 TWEET 1 COMMENTEMAILMORE BRUSSELS (AP) – The European Commission wants to impose carbon emission charges for all flights using Europe’s airspace. Wednesday’s proposal by the 28-nation bloc’s executive arm would force airlines to buy carbon emission permits for all flights within Europe but also for the parts of intercontinental flights that use the bloc’s airspace. OTHER NEWS: Lufthansa 747-400 heads to Tulsa for disassembly That means, for example, that a U.S. airline flying from New York to Frankfurt would have to buy pollution rights under the EU emission trading system for the part of the route within Europe’s airspace. The proposal still requires approval from the European Parliament and the bloc’s member states. The Commission hopes it will enter into force next year.
Stifel Nicolaus analyst Mark Swartzberg also said SABMiller was “navigating better than Diageo”. Diageo, the world’s biggest spirits company as well as the maker of Guinness and Red Stripe beers, posted a 3.1 percent rise in sales for its first quarter, ended Sept. 30, which analysts said fell short of their expectations for a 4 percent rise. Sales rose 5 percent in the previous quarter. Meanwhile Remy, which generates 40 percent of its operating profit from cognac sales in China, said wholesalers were reducing inventories after sales fell short of expectations during the Chinese New Year. Remy said revenue declined 5.3 percent on a like-for-like basis to 294.4 million euros ($397.2 million) in the three months to Sept. 30, its second quarter, compared with a 2.3 percent decline in the previous quarter. Remy’s shares were down 3 percent at 71.48 euros by 1239 GMT, when shares in Diageo were up 0.3 percent at 1944 pence and shares in SABMiller were up nearly 4 percent at 1358 pence. Despite the slowdown in the last three months, Diageo stood by its medium-term outlook calling for annual sales growth of 6 percent. But several analysts questioned whether the maker of Johnnie Walker whisky and Smirnoff vodka would be able to meet it. “We would be sceptical of Diageo delivering that … and expect consensus sales estimates to drop,” said analysts at Liberum Capital. While Diageo’s sales in the last quarter rose 10.9 percent in Latin America and the Caribbean and 5.1 percent in North America, they grew only 1.3 percent in Africa, Eastern Europe and Turkey and 0.6 percent in Asia Pacific – markets whose growth drinks firms have been relying on as austerity-hit Western Europe struggles.
Europe’s Top Hotel Says Glut to Thwart Revival: Corporate India
(IH) , the owner of the Taj chain, are among operators pressing ahead with their expansion plans, undeterred by the worst economic slowdown in a decade. The number of rooms in Indias top eight cities is set to increase 19 percent this year from 73,000, according to Cushmans estimates. Saving Costs Revenue per room fell 9.4 percent to 3,143 rupees ($51) in the second quarter from the previous three months, data from the property broker showed. The decline is primarily due to the slow recovery in demand and the pace of addition to rooms, Akshay Kulkarni, regional director for hospitality at Cushman said. The short-term outlook for the industry is a bit challenging with economic and political issues in the backdrop of a slow global economy, Kulkarni said. Additionally, travel in the corporate segment seems to be wary as companies are focused on saving costs. Supply outstripped demand by 41 percent as of 2012, and the estimate for 2016 is 39 percent, data from Cushman showed. (EIH) , the owner of the Oberoi brand of hotels, have halved in the past three years, according to data compiled by Bloomberg. Indian Hotels jumped 3.3 percent yesterday in Mumbai to 50.30 rupees, while EIH rose 0.2 percent to 54.60 rupees. No Scope Indian Hotels reported its first annual loss since at least 1997 in the year ended March 31 as sales growth slowed to the least in three years, according to data compiled by Bloomberg. EIH had its smallest profit since 2005. I dont see any scope for room-rate increases over the next couple of years, said Sumant Kumar, an analyst with Elara Securities (India) Pvt. in Mumbai . Theres an oversupply in this space and demand is not picking up as corporate side expenditure is muted given the economic scenario. Indias $1.8 trillion economy expanded 5 percent last fiscal year, the slowest pace since 2003, as companies and businesses curtailed travel budgets. Occupancy rate at luxury hotels fell to 59.9 percent in the year through March 2012 from 73.8 percent in 2006, according to data provided by the Federation of Hotel and Restaurant Associations of India . Slowing economic growth hasnt discouraged the operators from betting on Indias potential.
WRAPUP-Americas help Europe’s drinks makers offset Europe and Asia
Youth unemployment in Spain and Greece is above 50%; while rates in Portugal, Italy and Ireland are all above 30% (CNN) — The head of the International Monetary Fund is warning European governments against complacency despite the region returning to growth earlier this year for the first time since 2011. Speaking at the Fund’s headquarters in Washington DC, managing director Christine Lagarde told CNN’s Richard Quest that member states cannot afford “fatigue” on their commitments to create jobs and to shore up the region’s banks. Europe out of limelight Europe has been spared some market scrutiny recently, as headlines shifted to the U.S. debt ceiling negotiations and the Federal Reserve’s bond-buying program. Europe’s energy challenges Solving Portugal’s economic woes Lagarde said that leaders in the currency union will be eager to remain out of the limelight. Is Serbia ready for EU membership? And last year European finance ministers approved a 39.5 billion euro ($51.6 billion) lifeline for Spain’s banks, struggling after the property bubble went bust. In return for state aid, creditors have imposed strict rules on debtor nations, forcing them to carry out harsh austerity measures. However, that strategy has come under question. Mujtaba Rahman, Europe director at Eurasia Group, said Germany may believe austerity is working but “clearly there’s a strand that believes otherwise.” Some eurozone economies, he noted, believe they have improved after easing off on austerity. Tackling youth unemployment Lagarde, a former French finance minister, also highlighted youth unemployment as the biggest priority on the policy-making agenda. She said: “Countries have to do their job; the IMF will help the process as well so we have to partner goodwill, the money available and political determination to focus on the right issues.” Youth unemployment in Spain and Greece is above 50%, where strict austerity programs are in place, while rates in Portugal, Italy and Ireland are all above 30%. Widespread unemployment has led to anti-austerity protests in the worst-hit nations with many demonstrations turning violent.