World financial news

The worst drought in Texas’ history has led to the largest-ever one-year decline in the leading cattle-state’s cow herd, raising the likelihood of increased beef prices as the number of animals decline and demand remains strong.

Since Jan. 1, the number of cows in Texas has dropped by about 600,000, a 12 percent decline from the roughly 5 million cows the state had at the beginning of the year, said David Anderson, who monitors beef markets for the Texas AgriLife Extension Service. That’s likely the largest drop in the number of cows any state has ever seen, though Texas had a larger percentage decline from 1934 to 1935, when ranchers were reeling from the Great Depression and Dust Bowl, Anderson said.

Anderson said many cows were moved “somewhere there’s grass,” but lots of others were slaughtered. He said that in Texas, Oklahoma, New Mexico, Louisiana and Arkansas, about 200,000 more cattle were slaughtered this year, a 20 percent increase over last year.

That extra supply could help meet increased demand from China and other countries, but the loss of cows likely will mean fewer cattle in future years.

“Consumers are going to pay more because we’re going to have less beef,” Anderson said. “Fewer cows, calves, less beef production and increasing exports.”

The U.S. Department of Agriculture estimates that beef prices will increase up to 5.5 in 2012, in part because the number of cattle has declined. That follows a 9 percent increase in beef prices in the past year.

Oklahoma, the nation’s second-largest cattle producer, also saw about a 12 percent drop in cows, Oklahoma State University agriculture economist Derrell Peel said.

Anderson said beef production nationally will be down 4 percent next year.

In Texas, the problem is primarily due to the worst single-year drought in the state’s history. From January through November the state got just 46 percent of its normal rainfall of about 26 inches.

The drought was the result of a La Nina weather pattern, which brings drier than normal conditions to the southwestern states paydayloans. Forecasters have said La Nina is back, meaning another dry year for Texas, Oklahoma and other nearby states.

The lack of rain coupled with blistering summer heat caused pastures to wither, leaving rancher with the choice of buying feed for the cattle or selling them.

Betsy Ross, a 75-year-old rancher from the small central Texas community of Granger, said she sold all but 80 of the 225 grass-fed animals she had in January. With feed costs up 40 percent and her pasture parched, Ross said she didn’t have any other option.

“It’s not a profitable year, heavens no,” she said. “If you can’t keep them on grass when they’re grass fed you’re not going to make any money.”

About 200 miles north in Sulphur Springs, Texas, part-time rancher Dwyatt Bell said producers in his part of the state sold off up to half their herds. Bell said high prices for cattle have helped offset increases expenses, but many ranchers still are struggling to stay afloat.

“It’s been a rough year,” he said.

Across Texas, the drought has caused an estimated $5.2 billion in losses to farmers and livestock producers, and that figure is expected to rise

Nationally, the number of cows has dropped by an estimated 617,000 this year, a 2 percent decline from the 30.9 million animals on Jan. 1. That number would be larger, but states in northern plains such as North Dakota, South Dakota and Nebraska, increased their cow herd.

Anderson said it’s unclear whether high beef prices would hurt U.S. sales or limit exports. The U.S. is the world third largest consumer of beef per capita at 85.5 pounds per year. Uruguay is first at 137 pounds per capita.

“Exports have been the strongest part of beef demand all year and they’re expected to remain so but higher prices should constrain their growth,” he said.

Source

Virgin America CEO David Cush believes flying doesn’t have to be painful. He remembers when boarding a plane was exciting and wants to bring back that joy.

That is why every job applicant, including pilots, flight attendants and baggage handlers, takes a personality test. He wants employees who are hard-wired with positive outlooks on life.

Virgin America, which is partly owned by Richard Branson, the founder of the edgy British airline Virgin Atlantic, doesn’t aim to be the biggest carrier. It only flies between big cities, such as Los Angeles, Chicago and Boston, serving about 5 million passengers annually _ a tiny fraction of the size of major airlines like Delta and United.

But Cush wants Virgin America to be recognized for superior quality _ and he appears to be succeeding. The airline, based near San Francisco, has routinely ranked at the top of customer surveys.

The past month has been a little rocky, though. Since the airline switched to a new reservation system on Oct. 28, customers have not been able to change or cancel flights online or select seats on Virgin America’s website. Instead, they’ve had to call the airline or wait until they got to the airport. Cush emailed a letter to the 56,000 passengers affected apologizing for the problem and the airline says it hopes to have it fully resolved by the first week in December.

Virgin America’s fleet is made up of brand-new Airbus A319s and A320s, fuel-efficient aircraft that seat 119 and 146. Each is equipped with TVs for every passenger, colorful mood lighting and Wi-Fi. Instead of flight attendants dictating meal times, passengers buy food when they want it by pressing a few buttons on their TV.

“If you talk to people about what is most frustrating about air travel, what comes out is the loss of control,” Cush says. “We’ve been pushing to give people control again.”

Virgin isn’t the first U.S. airline to use TVs and friendly service to attract customers. Cush acknowledges some copying as he works to create the California version of New York-based JetBlue.

“JetBlue came around and had a different type of service. That opened my eyes,” he says.

But his quest to create a fun airline has been stymied by more serious concerns like high fuel prices and a recession whose impact is still being felt.

Since it started flying in August 2007, Virgin America has lost $661.4 million. Cush expects to become profitable in 2012, a year later than originally planned.

The privately held company is owned by a New York hedge fund, Richard Branson’s Virgin Group and private investors, including Donald J. Carty, the former head of American Airlines’ parent company, AMR Corp.

Cush, 51, spent most of his career at American and left to head up Virgin America just four months after the airline started flying.

The Shreveport, La.-native is a graduate of Southern Methodist University _ yet a giant Louisiana State University football fan.

In his spare time, Cush likes to swim and fish. In college, he was a DJ, spinning Bruce Springsteen and Pink Floyd tunes.

Cush visited The Associated Press in New York. Below are excerpts, edited for clarity, of the interview where he spoke about the health of American, his favorite seat and why risk-taking is necessary to survive.

Q: How is Virgin America different?

A: The biggest difference is our in-flight entertainment system. It’s a nine-inch screen _ larger than JetBlue. We’ve got live TV, on-demand movies, about 3,000 MP3s. We have food and drink on-demand. We’re the only airline in the world that has it. You order from the seatback, swipe your credit card. They see seat 12C wants a turkey sandwich and a Heineken and bring it to you on a tray. Carts aren’t blocking the aisles.

Q: Who came up with that?

A: This was designed before my time but as I tell people, as time goes on and memories fade it will become my idea.

Q: How much more are people willing to pay for these services?

A: The model is getting them to pay the same amount with a much lower production cost.

Q: How can you attract business travelers when your miles can’t be redeemed for Hawaii, Europe or other places you don’t serve?

A: The mile problem will be solved early next year. We have basic agreements with Virgin Atlantic and Virgin Australia that will be fully reciprocal. We also have agreements with Cathay Pacific, Singapore and Emirates that will develop into frequent flier relationships.

Q: In Dallas, you’re telling fliers to “dump your older airline for a younger, hotter one.” American responded by slashing fares to San Francisco and Los Angeles. Can you survive this fare war?

A: We’ll survive. At current fares, it will not be a profitable route but it wouldn’t be such a loss-making one where we would consider any type of reduction. You have to be in Dallas-Fort Worth if you’re going to be a business airline.

Q: In one ad you refer to American as running a cattle car. If you feel that way, how could you have worked there for 22 years?

A: It wasn’t always that way. The industry, out of survival, did a lot of things. One of the reasons I left was because I didn’t think the industry had to operate that way.

Q: Why did you get into the business?

A: I don’t think anyone knows why they get in unless they are a pilot or an aviation enthusiast. I wanted to live in Dallas. American was a big employer. Young, single, the ability to fly around anywhere you wanted to, it all sounded pretty good. Once you get in, you find it so intellectually demanding that you can’t see yourself doing anything else.

Q: Do you think that American is on the right path?

A: It’s hard to tell. There’s a culture there that is perhaps a bit risk-averse. In the past, it was always an airline that was willing to accept risk. The industry’s consolidated around it and all of a sudden American finds itself in third place. I don’t know if they have the answer. I do know their top guys. They’re smart, capable but at some point you need to stick your neck out a little bit if you’re going to get out of a rut.

Q: Are you a risk-taker?

A: Absolutely. But I don’t take unnecessary risk and I always have an exit strategy.

Q: Mile for mile, airplanes burn more fuel than cars, trucks or trains. Do you think this poses a problem for the industry?

A: If we don’t find a way to clean up air travel, we’ll become a pariah. We’ll be what the coal companies used to be.

Q: You’re in 14 markets. Where would you like to fly to next?

A: We’ve been trying to get into Newark, (N.J.) since the day we started. This is a huge policy issue _ slots and gates are tied up by legacy carriers. The economics of keeping us out of Newark are huge for United so they’ll fly unprofitable (regional jets) just to occupy slots. When we go into markets, fares drop by 30 or 40 percent.

Q: When you fly your own airline you always pick the second row of coach. Why?

A: I get to watch the interaction between our in-flight teammates and the customers in first. It’s a nice seat, 4A.

Q: A window.

A: I’m a window guy. Our in-flight entertainment system has Google Maps. You zoom in when you see something on the ground you’re interested in.

Q: How would you describe yourself as a boss?

A: I’m probably a tough guy to work for. I’m pretty demanding and part of the reason is the airline business is a demanding business. We have very little margin for error in building this into a successful company. We have 2,500 people that rely on us for a paycheck.

Q: Do you ever get overshadowed by Richard Branson?

A: All the time. People want to talk to him, they want to see him. When he’s around, I’m just the hired help.

Q: How much patience do you have for unprofitable routes?

A: We stopped service to two different places. One because we needed the aircraft, that was Orange County, (Calif.). We didn’t see that as a big strategic need. The other is Toronto. We misjudged the market.

Q: Did you fire the guy who pushed that route?

A: That was me, so no.

Q: In ten years, do you see Virgin America being a full-blown national airline?

A: That’s not our goal. The biggest discipline we need to have is not outgrowing the model. That means maybe 100, 150 aircraft, probably no more. The goal would be to be consistently profitable, the highest quality airline where we can hopefully make a few hours of people’s day a little bit nicer.

Q: Will you go public?

A: As much as it’s nice being private _ because you don’t have to manage to the short term and there are a lot of burdensome regulations that come from being public _ ultimately we need to (do an initial public offering.) It’s a capital-intensive business. We need to tap public markets and our investors want to take some money off the table. It could be 2013 if the market is ready.

Q: How do you unwind after leaving the office?

A: I do a lot of yoga. It’s a nice way to separate the mind from what you’ve gone through all day.

Source

Boeing is starting to fly right.

An Indonesian airline’s commitment to buy $21.7 billion worth of new planes is the latest good news for the company after a year when some things could have gone better.

Earlier this week, Emirates Airlines ordered $18 billion worth of 777s. Both deals come shortly after Boeing finally began delivering its two newest planes, the next-generation 787 and the latest version of the iconic 747.

Just a year ago, the outlook was dicier.

The new 787 was already running nearly three years late when an electrical fire on a test plane in November 2010 forced it to suspend flight tests. The revamped 747 was running late, too. And Airbus announced plans to put a new engine on its A320, making the plane more fuel efficient and a more potent competitor to Boeing’s 737.

The Airbus move forced Boeing to switch gears and offer a new-engine version of its 737 rather than build an all-new plane as it had originally expected to do.

Boeing needed some successes, and it found them in Asia and the Middle East, where rising wealth is turning more people into travelers.

Boeing expects demand for 11,450 planes in the Asia-Pacific region over the next 20 years, more than in any other part of the world. That number includes planes made by Boeing and competitors such as Airbus and new entrants into the market. Airbus has already booked 1,268 firm orders for its A320neo, so named for its “new engine option.”

The commitment by Indonesia’s Lion Air announced on Thursday is for 230 Boeing 737s. Lion Air also has options for 150 more planes, valued at $14 billion, bringing the deal’s total potential value to $35 billion.

The order would be Boeing’s largest ever in terms of both volume and dollars.

“This order is a big deal,” RBC Capital Markets analyst Robert Stallard wrote in a research note to clients. The deal “gives a meaningful boost to Boeing’s backlog.”

Most of the planes are the 737 Max, a new version of Boeing’s most popular plane with more fuel-efficient engines. It won’t be delivered to its first customer until 2017. Boeing has said it has about 600 commitments for the 737 Max.

But the Lion Air deal is not a certainty. The airline still has to finalize the order, and it’s struggling no teletrek payday advance. The Jakarta Post reported in August that Lion Air was ordered to ground 13 planes so it would have more in reserve because it had too many late flights.

“There’s always a risk that a deal’s going to fall through,” Citi analyst Jason Gursky said. “It’s a brutal industry, and when we go through periods of slower economic growth, there will be failures. It’s Boeing’s job to pick the winners and losers. But I think they’re pretty agnostic right now as to who they sell to.”

Gursky said Boeing went on “order holiday” in 2011 because it didn’t have a product to sell. That has changed now that it decided to put a new engine on the 737. He expects Boeing’s deliveries to increase by 27 percent next year, compared with a 9 percent increase at Airbus.

“That’s why we think this year is going to be the year of Boeing,” he said.

Even before Lion Air announced its plans, Boeing has been ramping up production to try to meet demand for the 737 as well as the 777, a larger plane used mostly on international routes. It already has a backlog of 2,191 737s that have been ordered by airlines around the world but not yet built.

Boeing already completes about one 737 every day in Renton, Wash. It is raising that to 42 per month in 2014. It has not yet said whether the 737 Max will be assembled in Renton or somewhere else, perhaps in South Carolina, where it is opening a second assembly line for its new 787.

Boeing already employs some 80,000 people in Washington state. Gursky, the analyst, has written that the biggest risk to Boeing’s planned rate increases appears to be its ability to hire the thousands of new workers it will need.

Lion Air already has orders for 125 more Boeing 737-900ERs. Its fleet currently stands at 73 planes, according to Airfleets.net. Sixty-five of those are Boeing 737s.

Also Thursday, Boeing said that aircraft leasing company Aviation Capital Group had ordered 20 of its 737-800s and committed to buy 35 of the planned 737 Max.

Shares of Chicago-based Boeing fell 25 cents Thursday to close at $66.09.

Source

Prime Minister-designate Mario Monti of Italy says he is ready to present his new government to the president on Wednesday after winning wide backing from political, business and union leaders.

Monti expressed his “serenity” and “conviction” in Italy’s ability to overcome the difficult phase of its economic crisis. He told reporters Tuesday evening that he had received assurances from various parties that they would endure sacrifices for the greater good of the country.

The economics professor tapped to head Italy’s next government has been holding intense talks for two days, seeking support for his mission to steer the eurozone’s third-largest economy through its debt crisis.

Monti’s government must then win confidence votes in both houses of Parliament, expected later this week.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

ROME (AP) _ Italy’s prime minister-designate is ready to present his new government on Wednesday after winning wide backing from political, business and union leaders for his Cabinet and economic reforms during intense consultations aimed at steering the euro zone’s third-largest economy through its debt crisis.

Italian news reports said Monti would present details of his government on Wednesday morning. Monti’s government must then win confidence votes in both houses of Parliament, expected this week.

Monti, a respected economist and former European commissioner, is under pressure to quickly reassure markets that Italy will avoid a default that could tear apart the 17 countries that use the euro currency and push the global economy back into recession.

Monti, 68, has already shown his determination to press through deep reforms by making it clear he intends to serve until regularly scheduled elections in 2013, rejecting calls for an early vote.

On Tuesday, after rounds of meetings, Monti garnered support from the center-left Democratic Party, Silvio Berlusconi’s People of Freedom party and the Confindustria, a powerful business lobby.

“We strongly support the birth of this government because for us it is the last chance to regain credibility,” Confindustria leader Emma Marcegaglia said.

Union leader Raffaele Bonanni said Monti was close to completing his Cabinet at the time of their meeting Tuesday afternoon.

“Monti told us that he has reached an agreement with the main political forces that will give him a consistent parliamentary majority that will support him and he will very quickly be in a position to present the list of ministers,” said Bonanni, leader of the powerful CISL union no credit check payday loans.

Despite reports of progress, European markets closed lower Tuesday as investors worried that politicians might pull their support in the future if austerity measures proved unpalatable.

Amid the uncertainty, the yield on Italy’s 10-year bonds jumped again to 6.94 percent. Last week’s spike above 7 percent _ a level considered unsustainable in the long term _ raised fears Italy would eventually need a bailout like Greece, Ireland and Portugal.

But a financial debacle in Italy raises a whole new set of problems, because the country is considered too big for Europe to bail out.

Monti was asked to form a government Sunday after Berlusconi resigned amid weeks of market turmoil over Italy’s stagnant growth and high public debt, which at euro1.9 trillion ($2.6 trillion) is nearly 120 percent of GDP.

Many of those debts are coming due soon, with Italy having to roll over more than euro300 billion ($410 billion) of its debts next year alone.

Monti met Tuesday with the head of the Democratic Party and Angelino Alfano, leader of the Peoples of Freedom party.

“We think, in light of the facts and after this latest conversation, that Professor Monti’s attempts are destined to turn out well,” Alfano told reporters afterward.

Previously, his party had conditioned its support on the shape of Monti’s cabinet, his government agenda and the duration of his term.

Pierluigi Bersani, head of the Democratic Party, pledged support and placed no timeframe on Monti’s tenure.

Only the Northern League, Berlusconi’s allies, have refused to support his government. They wanted early elections this spring, something Monti has rejected.

The EU, meanwhile, says said new measures will be necessary for Italy to balance its budget as promised by 2013. The eurozone avoided contracting in the third quarter, thanks mainly to Germany and France, but is widely expected to fall into recession imminently as a result of its raging debt crisis.

Monti says Italians will have to make some sacrifices to get through the crisis but “not tears and blood.”

Source

Nicaraguan president and one-time Sandinista revolutionary Daniel Ortega appears headed for victory Sunday in an election that his critics say could be the prelude to a presidency-for-life.

Since returning to power in 2007, the 65-year-old Ortega has boosted his popularity in Central America’s poorest country with a combination of pork-barrel populism and support for the free-market economy he once opposed.

Now, riding on a populist platform and World Bank praise for his economic strategies, he seeks a third term _ his second consecutive one _ after the Sandinista majority on the Supreme Court overruled the term limits set by the Nicaraguan constitution.

With nearly 50 percent of voter support and an 18-point lead over his nearest challenger in the most recent poll, Ortega could end up with a mandate that would not only legitimize his re-election but allow him to make constitutional changes guaranteeing perpetual re-election.

He leads his closest competitor, opposition radio station owner Fabio Gadea of the Liberal Independent Party, by 18 points. Conservative Arnoldo Aleman, a former president and perennial candidate, has 11 percent support in the poll taken between Oct. 10-17 with a margin of error of 2.8 percentage points.

Ortega led the Sandinista movement that overthrew dictator Anastasio Somoza in 1979, and withstood a concerted effort by the U.S. government, which viewed him as a Soviet-backed threat, to oust him through a rebel force called the Contras.

The fiery, mustachioed leftist ruled through a junta, then was elected in 1984 but was defeated after one term in 1990. After two more failed runs, he softened his rhetoric, took a free-market stance, and regained the presidency in the 2006 election.

To his supporters, he is just plain Daniel, while opponents say that in his new incarnation, he has espoused “Orteguismo,” a politics of personality based on Christianity, socialism and free enterprise.

In his most recent term, Ortega has built wide support among the youth and the poor in a country of 5.8 million people, more than 40 percent of whom live on less than $2 a day.

He also has maintained ties to the U.S. even as he has grown closer to Venezuelan socialist President Hugo Chavez, signed the Central American Free Trade Agreement and cultivated Nicaragua’s large business sector. Per capita income, one of the lowest in Latin America, has grown steadily since 2006, according to the World Bank, which has praised Ortega’s macroeconomic policies as “broadly favorable.”

Still, he has been helped immensely by Chavez, who according to estimates has provided at least $500 million a year in discounted oil and outright donations.

Many warn his success comes at democracy’s expense. Claims of widespread fraud in the 2008 municipal elections led Washington to cancel $62 million in development aid.

The 2006 election drew more than 18,000 election observers. This time election observation is much more difficult and local observers are being denied credentials.

The European Union and the Organization of America States have negotiated access to Sunday’s vote. The Carter Center, whose Nicaragua delegation was led by former President Jimmy Carter in 2006, has elected not to observe because of the restrictions.

Source

Ireland announced a deepening austerity drive Friday, committing itself to cut euro3.8 billion ($5.2 billion) from its 2012 deficit and to keep increasing taxes and slashing spending through 2015 to meet the terms of its international bailout.

Finance Minister Michael Noonan said the rising level of cuts and tax increases outlined in his 2012-15 fiscal plan are needed for Ireland to claw its 2015 deficit back within 3 percent of gross domestic product, the key target in last year’s bailout deal.

“The large gap that still exists between government spending and revenue must be closed,” Noonan told a Department of Finance press conference. “Continuing to run big deficits and engaging in the high levels of borrowing required to fund them is simply not viable. To do so would result in unsustainable debt and a long-term loss of sovereignty.”

Ireland in November 2010 was forced to negotiate a potential euro67.5 billion ($92 billion) credit line from the European Union and International Monetary Fund after the nation reached the brink of bankruptcy over its runaway bank-rescue program. Ireland already has drawn down nearly half of that funding. EU and IMF monitors have lauded Ireland’s commitment to fight its deficits as part of the deal.

Even before seeking international aid, Ireland was the first of Europe’s debt-struck nations to impose emergency austerity budgets after its ill-regulated banks began to buckle in 2008 amid imploding property markets in Ireland, Britain and the United States. Irish banks were exceptional risk-takers in all three markets. The government ended up nationalizing five banks at a cost to taxpayers expected to top euro70 billion ($100 billion).

The planned 2012-15 cuts run deeper than previously expected, in part, because Ireland has trimmed its growth forecasts in line with continued depression in consumer demand and rising uncertainty in its key American and European export markets.

Ireland lowered its 2012 growth projection to just 1.6 percent versus previous expectations of 2.5 percent. Average growth for 2013-15 also was reduced from 3 percent to 2.8 percent, a figure that many economists said still looked too rosy.

Friday’s plan presumes that consumer demand will not recover soon in a country where households often are fearful of losing their jobs, mired in negative-equity mortgages, and struggling to pay rising bills on reduced incomes.

It expects consumer demand to keep declining a further 1 percent next year, versus a previous assumption of flat growth. And demand in 2013 now is expected to be flat, versus previous hopes of a 1 percent uptick.

Noonan said deficit reduction in 2012, to be detailed in his budget Dec. 6, would involve euro1.6 billion in tax increases and euro2.2 billion in spending cuts.

He said a further euro3.5 billion would be cut from the 2013 deficit, euro3.1 billion in 2014, and euro2 billion in 2015. In total, the planned euro12.4 billion in deficit cuts over the next four years would involve euro4.65 billion in tax increases _ or more than euro1,000 for every man, woman and child in Ireland.

Such cuts, he said, were forecast to reduce Ireland’s deficit for 2012 to 8.6 percent of GDP; for 2013 to 7.5 percent; 2014 to 5.1 percent; and 2015 to 2.9 percent.

Noonan conceded that the cutting and tax hikes were suppressing economic growth, but said Ireland had no choice but to bite the bullet hard. He said Ireland’s unemployment rate, currently near a 17-year high of 14.4 percent, would improve only once consumer spending grows from 2014 onward.

“The likelihood is that exports will remain the only significant source of positive momentum in the economy for the next couple of years,” he said, referring to Ireland’s 1,000-strong stable of foreign high-tech companies, which generate a growing proportion of tax revenues but relatively few jobs.

Business leaders welcomed the size of the planned deficit cuts as necessary, but warned that the government should press harder for spending cuts, rather than hiking taxes.

“International evidence shows that tax-based austerity is more harmful to economic growth and employment than current expenditure reductions,” said Danny McCoy, director of the Irish Business and Employers Confederation, the main lobbying group for Ireland’s more than 7,000 businesses.

Source

Laclede Group Inc. posted a wider fiscal fourth-quarter loss on weaker results from its Missouri natural gas utility.

The net loss for the three months ended Sept. 30 was $2.8 million, or 13 cents a share, compared with a loss of $1.6 million, or 7 cents a share, for the same period last year, the St. Louis-based company said in a statement.

Laclede Gas, the utility that sells natural gas to 630,000 customers in St. Louis and surrounding Missouri counties, recorded a $5.4 million loss compared with $4.8 million in the fourth quarter of fiscal 2010. The utility typically has a loss for the summer quarter when natural gas demand is weakest.

Meanwhile, the company’s wholesale gas marketing unit, Laclede Energy Resources, saw profit rise to $3.2 million from $3 million.

Source

A top bank lobbyist insisted Saturday that banks and the eurozone are far from reaching a deal to cut Greece’s debt, despite claims by eurozone finance ministers that they will ask banks to take steeper losses on their Greek bonds.

Although the ministers did not say how much of a cut they are aiming for, a report from Greece’s international debt inspectors suggested that the value of Greece’s bonds may have to be slashed as much as 60 percent to get the country solvent enough to repay its debt.

The ministers on Saturday sent their chief negotiator, Vittorio Grilli, to start discussions with banks and other private investors on a new deal for Greece.

However, Charles Dallara, the managing director of the Institute of International Finance, which has been leading the negotiations, said in an interview with The Associated Press that an agreement remained elusive.

“We’re nowhere near a deal,” he said.

Banks in July agreed to accept 21 percent losses on their Greek bonds. However, eurozone leaders have since reopened the deal and Greece’s international debt inspectors _ the so-called troika of the European Commission, the European Central Bank and the International Monetary Fund _ have said that Greece’s economic situation has deteriorated dramatically since the summer.

They said that under the July deal, Greece would need an extra euro252 billion ($347 billion) in loans from the eurozone and the IMF _ on top of the euro110 billion ($152 billion) it has been relying on to pay bills since May 2010.

But Dallara said new plans to slash Greece debt would still leave the country as “a ward of Europe” for years.

He declined to say how much in losses banks would be willing to accept, saying only “we would be open to an approach that involves additional efforts from everyone payday loan no faxing.”

Dallara was in Brussels, where eurozone finance ministers have been meeting for two days of talks.

Earlier Saturday, an EU official said EU finance ministers neared agreement on forcing banks to raise just over euro100 billion ($140 billion) to ensure they have enough cushion to weather further losses on their Greek bonds as well as market turmoil.

Strengthening banks and slashing Greece’s debts are critical to solving Europe’s crisis, which is now threatening to engulf larger economies like Italy and Spain and is blamed for dampening growth across Europe and even the world.

“The crisis in the eurozone is doing real damage to many of the European economies, including Britain,” George Osborne, Britain’s chancellor of the exchequer, said as he headed into Saturday’s meeting. “We have had enough of short-term measures, sticking plasters that get us through the next few weeks.”

The European official said EU leaders meeting Sunday should sign off on forcing the continent’s biggest banks to raise just over euro100 billion in capital. The official spoke on condition of anonymity because the discussions between ministers were still ongoing.

The figure is likely to disappoint some analysts. A report by the International Monetary Fund has called for up to euro200 billion ($280 billion) to be poured into banks.

The new rules would force systemically important banks to raise their core capital ratios to 9 percent, compared with just 5 percent to 6 percent they needed to pass EU stress tests this summer. The ratio measures the amount of capital banks hold compared to their risky assets.

Source

The launch of the iPhone 4S was executed at the Toronto Eaton centre with usual military precision and near-religious fervour. Already, some products are sold out.

On Friday morning the store front was a sort of shrine, decorated with flowers and multicoloured post-it notes bearing messages for the late leader, Steve Jobs.

“Thanks for my Christmas gifts,” wrote Ashley. “Thank you Steve Jobs you are in the iClouds now,” wrote another.

“iSad,” said someone else.

More: Five reasons to avoid the new iPhone 4S

More: Apple co-founder Wozniak first in line for new iPhone

More: Glitches raise ire of iPad, iPhone users

The line began Thursday. Mo Bastaki, a 22-year-old accountant, arrived around 6 p.m. This launch is special, says Bastaki, “It’s the last product Steve was alive for.”

But Bastaki, along with some hundred other people, was thrown out of the centre into the rain at 2 a.m.

When they were let back in three hours later, it was a Lord of the Flies affair payday loans. “All these guys who weren’t in line, got in line,” he says.

For some, the exercise is a cultural one. “We come here to feel the environment,” says Xianwen Zhang, a 22-year-old Chinese student from Zhejiang studying with his friends at Humber College, “This does not happen in China.”

It’s a business opportunity for others. One American woman (who wished to stay anonymous) is buying 16 phones for her Russian friends, who pay her to fly back and deliver the goods. “I get to see my brother and friends,” she says.

At six in the morning, blue-shirted Apple employees gave out white tickets, embossed with a perfect silver Apple on top. A ticket equals one phone.

In under two hours, the 32 g white phone had sold out. “If you were thinking white,” said Apple employee Brandon R to people at the end of the line, “maybe think black.”

Source

Greece’s international debt inspectors have completed their review of the government’s reforms, saying Tuesday that if their conclusions are adopted by the eurozone and IMF, Athens is likely to receive the next batch of its bailout loans in early November.

The inspectors from the International Monetary Fund, European Commission and European Central Bank, collectively known as the troika, said Greece’s deficit targets for 2011 were “no longer within reach,” but that additional measures announced were adequate for 2012.

They said additional measures would likely be needed for 2013-2014, and that they should “focus on the expenditure side.”

Greek authorities “continue to make important progress, notably with regard to fiscal consolidation,” the troika said in a joint statement.

“To ensure a further reduction in the deficit in a socially acceptable manner and to set the stage for a recovery to take hold, it is essential that the authorities put more emphasis on structural reforms in the public sector and the economy more broadly.”

Greece has been dependent since May last year on a euro110 billion ($150 billion) bailout package from other eurozone countries and the IMF. Without the next euro8 billion loan installment, the country has said it would run out of funds to pay salaries and pensions in mid-November.

Mired in a recession that is deeper than originally expected, Greece’s economy is now only expected to recover from 2013 onwards, the troika said.

“There is no evidence yet of improvement in investor sentiment and the related increase in investments, in part because the reform momentum has not gained the critical mass necessary to begin transforming the investment climate,” it said free credit report and score. It noted, however, that exports were rebounding.

The debt inspectors said the Greek government had achieved a “major reduction” in the deficit despite the recession. However, it said, “the achievement of the fiscal target for 2011 is no longer within reach, partly because of a further drop in GDP, but also because of slippages in the implementation of some of the agreed measures.”

Additional measures the government recently announced _ which include extra taxes and suspending about 30,000 civil servants on partial pay _ “should be sufficient to bring the fiscal program back on track and ensure that the deficit target of euro14.9 billion will be met.”

The troika said that delays in the country’s privatization effort combined with worse market conditions would lead to “significantly lower” revenue than expected this year, but that the government was still committed to raising euro35 billion through privatizations by the end of 2014.

“Ensuring that the privatisation fund remains independent from political pressures remains key for success in this area,” it said.

Once the other eurozone countries and the board of the IMF approve the troika’s review, “the next tranche of euro8 billion … will become available, most likely, in early November.”

Source