Cameron warns of risk of new Great Depressionlink
The world could slide into a 1930s-style depression, David Cameron has claimed, as the G20 summit struggled to find common ground on the best way to boost the global economy.British officials played down the prospect of a resolution of the escalating dispute between China and the US over the value of their currencies.
The leaders, meeting in the South Korean capital, Seoul, are finding it difficult to recapture the spirit of unity which was achieved at the London summit 19 months ago, at which they agreed a $1trillion (£625bn) stimulus package for the world economy.
Speaking ahead of the detailed negotiations overnight, Mr Cameron warned of disaster if disputes over currency levels – vital for making nations' exports competitive – meant that the world's major economies looked inwards.
The main flashpoint has been the recriminations between the United States and China. Washington is accusing Beijing of keeping the value of its currency, the yuan, artificially low to give its exports a huge competitive advantage.
The Chinese, who have lent the US nearly $800bn, are resisting the pressure and believe the US has been hyprocritical in pumping $600bn (£375bn) into its coffers – a move also apparently designed to keep the dollar low.
Yu Jianhua, an official with China's Ministry of Commerce, said that Beijing didn't want a confrontation with the US over currencies or trade issues, but that Washington "should not politicise the yuan issue; should not blame others for its domestic problems and should not force others to take medicine for its own disease".
The US Treasury Secretary, Timothy Geithner, denied the charge: "We will never seek to weaken our currency as a tool to gain competitive advantage or to grow the economy."
He renewed his criticism of China for stoking inflation by its strict controls on money supply. Asked what his biggest anxiety was for the G20, Mr Cameron replied: "A return to what happened in the 1930s: protectionism, trade barriers, currency wars, countries pursuing beggar-my-neighbour policies; trying to do well for themselves but not caring about the rest of the world. That is the danger.
"So it's in our interest to keep world trade moving; to keep those trade barriers down. That's our interest at the G20 and we will pursue it very, very vigorously."
Mr Cameron insisted the G20 meeting – where the "big battle" would be combating isolationism – was vital. But he warned against expectations of solving such problems as reconciling the huge debts accumulated by western countries with the large surpluses of money built up by developing nations – notably China. He said the G20 was not going through an "heroic phase".
UK officials said there was no prospect the issues would be solved at this summit – or others in the near future – but that at least negotiations prevented the world's biggest economic powers from retreating into isolation.
Russian officials said they were "especially worried by attempts by a number of countries to take unilateral decisions to weaken their currencies" to stimulate growth.
President Obama said he was confident leaders would agree a programme for promoting balanced growth.
A communiqué is expected today. But the problems ahead in agreeing anything but the most anodyne form of words were spelt out by Montek Singh Ahluwalia, the Indian chief G20 negotiator: "I don't think you should be too demanding... such policy coordination has never been attempted."
Mr Cameron held a series of bilateral meetings with fellow leaders, including South Korea's President Lee Myung-bak, Russian President Dmitry Medvedev and Indian Prime Minister Manmohan Singh, in the run-up to the official opening of the summit.
He accepted an invitation to visit Russia next year, which will be the first by a British Prime Minister for six years. It comes with the hope of thawing relations, which have been deep-frozen following the murder of Alexander Litvinenko, a prominent critic of Vladimir Putin, in London in 2006.
* Household wealth in the United Kingdom fell faster during the recession – set off by the 2008 banking crisis – than at any other time in the past 60 years, the Official for National Statistics revealed yesterday.
Gross Domestic Product per head of population – which is the standard indicator used to measure how well an economy is doing – fell by 5.5 per cent in a single year, the largest fall since 1949, taking the economy back to its 2004 level.
G20: Those rows in full
Currency wars
The Fed's injection of $600bn into the US economy a week ago was a declaration of war. The Americans argue, unofficially, that their move is belated retaliation for the Chinese refusal to let the yuan float upwards. It signals that the US is ready to "print" as many dollars as it takes to keep the dollar low, US exports competitive and those from China, Germany and Japan less attractive to US consumers. The only good news is it might just stem the rise of protectionism in America.
For a counter-attack the Chinese have an impossible choice; start buying those dollars, selling their yuan to push the value of the dollar back up – in the knowledge that the US can just print even more and, eventually, overpower them. That will leave China with $2 trillion-plus of badly devalued US Treasury bills and other dollar assets. Or they can let their exports get more expensive, sacrificing growth and jobs. President Obama argues that a healthy US market is good for everyone; China, Indonesia and Brazil think otherwise. India is a rare American ally.
The Chinese, Germans, Russians and Japanese have also ridiculed a US proposal to cap trade surpluses. Mervyn King of the Bank of England was more gently dismissive. The Koreans are OK with it. The UK, by the way, got its devaluation of sterling in early – down 20 per cent on its 2007 peaks – and can afford to be more relaxed, for now.
Chances of agreement Nil, until the French take over the G20 next year.
Financial regulation
The glacially slow process of dealing with the "too big to fail" banks should make progress. The "Basel III" rules will make banks hold more reserves for when they get into trouble. The 30 most important banks in the world – the "sifis" or systemically important financial institutions – will be made to write "living wills" so they can be wound down without global meltdown.
Chances of agreement Unusually high.
Other business
Monty Python's Argument Clinic has nothing on Seoul. Some "bilaterals" around the G20 will be ugly. The Japanese want the Russians to give them the Kuril Islands back; the Chinese and Japanese are in bitter dispute over the Spratlys. The Russians resent US failure to ratify the Start nuclear arms treaty. The Doha trade talks (born 2001) have become a blame game.
Chances of agreement Let's just say it's good to talk.
EARTH-DIRECTED ERUPTION: Active sunspot 1123 erupted during the early hours of Nov. 12th, producing a C4-class solar flare and apparently hurling a filament of material in the general direction of Earth. Click on the image to play a three and a half hour (0000 - 0330 UT) time lapse movie of the event:link
Coronagraph images from NASA's twin STEREO spacecraft show a coronal mass ejection (CME) emerging from the blast site and heading off in a direction just south of the sun-Earth line. The cloud could deliver a glancing blow to Earth's magnetic field sometime on Nov. 14th or 15th, sparking auroras. Stay tuned for refined predictions later today when SOHO images of the CME become available.
Woman impaled by branch as tree falls in Wakefield
link
The woman was freed from the car by firefighters
Police said the tree crashed down on the outskirts of Wakefield on Thursday evening.
The incident blocked Aberford Road near the junction with Beaumont Street.
The woman was taken to nearby Pinderfields Hospital for treatment after being freed from the car. Another person was also hurt.
A police spokeswoman said officers were called to scene on the A642 – which is the main Wakefield to Rothwell route – just before 2030 GMT.
She said: “It looks like there are two injured parties – one seriously injured.”
A West Yorkshire Fire Service spokeswoman described the seriously injured woman as having been “impaled” by a branch.
She said: “This was a tree fallen onto a car and one female, impaled by a branch, was extricated by fire service personnel and passed into the hands of the ambulance service.”
The spokeswoman said three fire crews were called to the scene.
http://www.bbc.co.uk/news/uk-england-bradford-west-yorkshire-11738053
High winds and rain batter the UK
by admin on Nov.12, 2010, under National News
Forecasters say the winds will start dying down
The worst hit areas have been northern England, north Wales and Northern Ireland with gusts of 70mph (113km/h).
Planes had to be diverted from Leeds-Bradford Airport and 6,000 people in Northern Ireland were without power after winds brought down power lines.
In Stanley, West Yorkshire, a tree fell on a car injuring two people – one was impaled on a branch and her condition was described as serious.
The tree came down at 2020 GMT and the woman was released from the wreckage by firefighters before being taken to Pinderfields Hospital.
Leeds-Bradford airport was badly affected with one flight from Dublin forced to divert to Liverpool after making three unsuccessful attempts to land. Other planes were forced to fly on to Manchester.
The BBC Weather Centre said the weather was at its worst overnight but winds were forecast to slowly ease off through the day.
North-west England, Yorkshire and the Humber, Northern Ireland and Anglesey have been hardest hit.
Exposed areas
In Northern Ireland, about 6,000 people were left without electricity on Thursday night as severe weather disrupted power networks.
Northern Ireland Electricity (NIE) said on Friday morning that 700 homes were still without power.
The main areas affected were Dungannon and Omagh in County Tyrone. Enniskillen in County Fermanagh was the worst-affected with 1,500 homes left without electricity.
The Royal Navy warship HMS Monmouth has been enduring storm force 10 winds in the Bristol Channel between Porthcawl and Lynmouth.
The ship’s commanding officer, Commander Tony Long, said the 170 crew on-board were coping well and he planned to remain out overnight, hoping for a drop in the wind on Friday morning.
“A few of the younger sailors are still trying to find their sea legs, conditions are quite lively,” he said.
Ferry services were also disrupted, and there were reports of fallen trees and power cables in Monmouthshire and Camarthenshire, and flooding around Neath.
Fire crews on the Isle of Wight are dealing with flood-related incidents at about 100 homes, mostly in Ryde, following heavy rain on Wednesday night.
Flight and ferry crossings to the Isle of Man have also been cancelled.
http://www.bbc.co.uk/news/uk-11734050
Met Office issues severe gales warning
by admin on Nov.11, 2010, under Local News
Severe gales of up to 80mph (129km/h) could hit parts of England, Wales and Northern Ireland overnight, the Met Office is warning.
A spokeswoman said “very, very strong winds” were expected and could cause disruption and damage to trees.
Weather warnings are in place for north-west England, Yorkshire and Humber, Northern Ireland and Anglesey.
Roads, bridges and ferry services in Wales were affected on Thursday morning by strong winds and localised flooding.
West to southwesterly winds are forecast to strengthen during the late afternoon, building to a peak by the middle of the night, of up to 80mph (129km/h) in north-west England and north Wales, and 70mph (113 km/h) in Northern Ireland.
They will eventually ease off slowly through Friday morning.
The Highways Agency said it had issued an amber alert for high-sided vehicles, caravans and motorbikes travelling in north-east and north-west England because of the increased risk from strong winds.
“Drivers should allow extra time for journeys and take particular care in exposed and raised areas such as bridges by slowing down and leaving extra room for braking,” regional operations manager John McTaggart said.
The Dartford-Thurrock river crossing in Kent, the QEII Bridge, was closed on Thursday afternoon for safety reasons.
Bridge closed
BBC weather forecaster Nick Miller said exposed coasts and hillsides, especially across the Pennines, would feel the brunt of the gales, although even inland areas could experience 60mph (97km/h) winds.
Showers are also expected during the afternoon and overnight across much of the UK, with the heaviest rain likely in Scotland and Northern Ireland.
Strong winds and rain on Thursday forced the closure of the old M48 Severn Bridge crossing to high vehicles, and the introduction of speed restrictions on the A55 Britannia Bridge at Anglesey and along the south Wales stretch of the M4.
Ferry services were also disrupted, and there were reports of fallen trees and power cables in Monmouthshire and Camarthenshire.
Flight and ferry crossings to the Isle of Man have also been cancelled.
http://www.bbc.co.uk/news/uk-11734050
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