Greece crisis: will there be a Europe bailout?

Link to the article: Channel 4 News

By Channel 4 News

As workers in Greece strike for 24 hours in protest at harsh economic measures to control debt, Faisal Islam believes Germany and France are "cooking up" a bailout.

Public sector workers in Greece are beginning industrial action in the first major test of the government's commitment to push through tough measures to tackle a major debt crisis.

Business reporter John Sparks, who is in Athens, writes: "The strikes began early this morning. Flights were halted just after midnight, state schools and tax offices have been shut and state-run hospitals are now running on emergency staff.

"Unions ended weeks of caution after Greece's new socialist government introduced vicious cuts — like cutting public sector pay, slashing early retirement rights, and even tapping the country's powerful orthodox church for more taxes.

"The stoppage has been organised by Aday, an umbrella union representing civil servants.

"The largest private sector labour organisation in Greece, the GSEE union, is planning another strike on 24 February.

"But it remains unclear whether the protests will represent the start of a serious labour backlash against the new measures or a demonstration of union dissatisfaction in a country where strikes are common."

Bank chief King warns of tough times ahead

Link to the article: Channel 4 News

By Channel 4 News

Britain's economy continues to "bump along the bottom", the Bank of England governor warned today - and coming out of the recession would be slower than he thought three months ago.

Mervyn King lowered November's predictions about the pace of recovery, although he did say that "a gradual recovery in output may now be in prospect".

Today's Bank of England inflation report predicts inflation will spike at around 3.5 per cent early this year before falling back below its 2 per cent target level.

Mr King said that help for the British economy in the form of £200bn in quantitative easing, along with extremely low interest rates, had helped counter the crisis in the banking industry.

The bank has called a halt to the quantitative easing programme for now, although Mr King said it was too early to say whether printing more money to boost supply would be resumed again in the future.

But there is likely to be more tough times ahead for consumers. It has already been a poor start to the year for high street retailers, thanks to the wintry weather, with sales down on 2009.

Now today's report warns that fear of higher taxes could lead people to put more money into their savings, rather than spending to bolster the economy - and that means bad news for employment, which could fall still further if demand doesn't recover as quickly as companies are expecting.

The weak upturn was flagged up last month when figures showed Britain only just managed to clamber out of recession, with growth in the last quarter of 2009 a disappointing 0.1 per cent. Last week the bank said economic performance was "sluggish" and hinted that recovery would be "gradual".

Prospects for inflation, said the bank, remain "unusually uncertain". More evidence, perhaps that, like the weather, it's becoming far more difficult to make accurate forecasts about the future state of the economy.

Climate economist's email security breach

Link to the article; Channel 4 News

By Tom Clarke

Exclusive: Channel 4 News can reveal that renowned climate change economist, Lord Stern, had his email targeted by a virus.

The British government's climate change guru, Lord Stern, has had his emails sabotaged, Channel 4 News can reveal.

Lord Stern, author of the influential Stern Review on the economics of climate change and vocal advocate of the danger of man-made climate change, recently left government to head the London School of Economic's Grantham Institute for Climate Change.

The Institute confirmed to Channel 4 News that Lord Stern's email account was targeted last week.

A trojan horse computer virus was embedded in his account which then sent itself to other contacts in the economist's inbox.

Toyota announces worldwide Prius recall

Link to the article: Channel 4 News

By Channel 4 News

The Toyota Motor Corporation is to recall around 436,000 hybrid cars worldwide, including the 2010 Prius model, because of braking problems.

The move is the third major recall since September. Around 8,500 Prius cars sold in the UK will be affected because of a braking problem.

Part of a worldwide 400,000-vehicle recall the problem affects models that went on sale last year involving the third generation of the hybrid electric-petrol Prius.

There have been about 200 complaints in Japan and the US about a delay when the brakes were pressed in some conditions. Toyota said the problem related to what it described as "inconsistent brake feel" during slow and steady braking on bumpy road surfaces when the anti-lock system is activated.

Apologising to customers, Toyota GB said the recall would consist of a software upgrade in the anti-lock braking system.

The beleaguered company added that there had been no accidents linked to this issue in Europe.

The world’s largest car maker is already under fire for two other recalls covering more than eight million vehicles worldwide, due to problems with slipping floormats and sticky accelerator pedals.

Taxes up, pay cut in Greek austerity drive

Link to the article: Channel 4 News

By Channel 4 News

Unions in Greece call a series of strikes after the country's finance minister announced plans to increase the retirement age, raise fuel taxes and cut public sector pay.

Greece's Socialist government revealed its austerity measures in an attempt to cut a deficit that has ballooned to nearly 13 per cent of the country's national income.

That is more than four times what Eurozone rules allow.

Finance Minister George Papaconstantinou said his proposals would save the state 800 million euros this year.

"The time has come for major changes. The country can't afford to wait any longer," Papaconstantinou said.

"Everybody needs to contribute clearly to the big effort to save our economy."

Read Faisal's blog on the situation in Greece

The government has unveiled new bills on public sector wages and taxation.

Higher earners will face the biggest tax burden, and the prime minister and his government will not get a pay rise this year.

The government has also announced a freeze in public sector salaries. The pension age will also rise by 2 years.

There are also higher taxes on fuel, tobacco and alcohol, along with tough new tax evasion measures.

A majority of Greeks support tough measures to reduce the government's deficit, but the powerful ADEDY public sector union will tomorrow stage a 24-hour stoppage in protest at the cuts.

Toyota car recall to cost $2bn

Link to the article: Channel 4 News

By Channel 4 News

Toyota expects costs and lost sales from its largest ever car recall to total $2bn - but raises its outlook by posting its strongest profit in six quarters.

Toyota has been forced to recall more than 8 million vehicles worldwide following safety fears over defective accelerators.

"Toyota's recall this time is unlike any other in auto industry history," analyst Lee Sung-Jae said.

"The scale is huge to begin with, and this deals a fatal blow to the very core value Toyota represented - that is the quality of its cars."

The world's biggest car manufacturer is currently working to recall up to 1.8 million cars across Europe - including over 180,000 in the UK - in the crisis.

The Japanese company has said the problems are "rare" but is recalling vehicles and writing to the owners to arrange repairs. Millions more are being recalled across the US and Japan.

Can coal clean up its act?

Link to the videon: BBC Newsnight

Can we tap the world's vast coal reserves without catastrophic effects on the climate? A British project promises clean coal, but could this £2 billion scheme to build one of the world's biggest carbon capture and storage plants in the north of England be an expensive gamble which might not pay off?

Justin Rowlatt reports.

Broadcast on Tuesday 2 February 2010.

UK protest as Kraft takes Cadbury

Link to the video: Reuters Video

Feb 2 - Kraft set to seal Cadbury's deal, as workers fear future job losses and march on parliament in London.

Penny Tweedie reports.

Toyota CEO apologises for recalls

Link to the article: Reuters Video

Feb 1 - President of Toyota's U.S. division apologised Monday for faulty accelerator pedals that caused 1.8 million cars across Europe to be recalled amid concerns over safety.

Maryam Behmard reports.

Has the promise of the internet gone sour?

Link to article: BBC Newsnight

Kirsty Wark is joined by virtual reality pioneer and computer scientist Jaron Lanier, who has published a 200 page manifesto entitled You Are Not a Gadget, and by Charles Leadbeater a former British government advisor on the internet, and author of Cloud Culture, an upcoming report on the future of the net.

Broadcast on Monday 1 February 2010.

Virus threat to social networking sites

Link to the article: Channel 4 News

By Benjamin Cohen

Internet users have known about the danger of viruses for years - but now they are a major issue for social networking sites like Facebook and MySpace, writes Benjamin Cohen.

We've been warned about the dangers of viruses and malware (essentially dodgy software) being distributed by email and the web for years.

But it's only now becoming a major issue for those of us using social networks like Facebook, MySpace and LinkedIn.

No more moon landings for in-debt America

Link to the article: Channel 4 News

By Sarah Smith

President Obama shelves plans to return the US to the moon as America argues over how to cut its record $1.5 trillion budget deficit. Sarah Smith reports.

£1.5 trillion is how far the US will be collectively in debt by the end of 2010. The White House knows that people are very, very angry about the record breaking deficit. The shock by-election result in Massachusetts showed them that.

So Obama is under massive pressure to slash government spending - but knows he has to do it in a way that does not make the American economy even worse.

And, of course, everyone has their own ideas about what to cut. Republicans pillory Obama for putting the country in debt - but they are also upset that he wants to end Bush tax cuts for the wealthiest to help address that debt.

Apple iPad: what is it and who is it for?

Link to the article: Channel 4 News

By Benjamin Cohen

Is the Appple iPad, launched yesterday, simply a small computer or a larger version of Apple's already successful iPhone? Benjamin Cohen assesses the new must-have gadget.

So after all the weeks of speculation, it's here: the Apple iPad.

Probably more ink and blog coverage has been spilt over this product launch than any before. Part of the reason is the normal Apple PR blitz but part a fascination with what exactly this product is.

The last two big product launches have made sense. They're easy to understand. The iPod was a popularised version of the up and coming mp3 music player, the iPhone a popularised version of the already available touch screen smart phones.

Is this a popularised version of the already available tablet computers? Perhaps, but then isn't this product just a large-sized iPhone (or indeed iPod Touch)? If it is a tablet, well, what on earth are tablets for?

Some tablets are used by retailers for stock taking, and others used by logistics companies to monitor the delivery (and signing for) of post and stock. Traffic wardens use them to issue parking fines, and my taxi driver is using one while I write this.

But the iPad isn't really aimed at any of these very specialised markets. Apple is aiming it at me and you and, potentially, people like my grandparents. I always make it a rule to ask them their opinion of any story I'm working on, because unlike me they don't have an endless fascination with gadgets. My Granddad's response: "I'm not quite sure why I'd need one. But I liked you in the back of the car in your report."

Taking the measure of economic recovery in Yorkshire

Link to the article: BBC Newsnight (Paul Mason)

The UK economy has emerged from recession after the longest period of contraction since World War II. However, the recovery is weaker than expected, just 0.1% of growth in the last three months of 2009.

Paul Mason reports from Yorkshire.

UK limps out of recession by 0.1 per cent

Link to the article: Channel 4 News

By Channel 4 News

As Britain's economy creeps back into growth - by the narrowest of margins - does the UK now face the possibility of a double-dip recession?

It is the day UK plc moved back into a period of growth; the much-awaited figures which tell us the worst is behind us and full recovery awaits. Except no-one is celebrating, least of all in Westminster.

The figures, released this morning by the Office of National Statistics (ONS), say it all. The economy expanded by a tiny 0.1 per cent in the last quarter of 2009.

It means the UK has barely crawled out of recession. The marginal growth between October and December did end a record six straight quarters of decline, but fell far short of the 0.4 per cent advance expected.

It is worth pointing out that the figure is only an estimate, and may be revised higher, but the result has been greeted with widespread disappointment.