BRITBUST

Bolivia nationalized the company that runs the three largest airports in Bolivia because the government claims the company did not invest in improving the airports.

2013-02-19T04:06:00.001-08:00

Servicios de Aeropuertos Bollivianos SA (Sabsa) is a division of Spain's Abertis Infraestructure SA but Sabsa is also partly owned by Aena Aeropuertos SA based in Madrid. Bolivian president Evo Morales said that the privatization of Sabsa in 1997 was equivalent to "robbery" and "looting". He claimed that since that time the company's profits have been exorbitant and investments "ridiculous".

real estate company Reyal Urbis filed for insolvency after failing to renegotiate debt with its creditors.

2013-02-19T03:51:00.001-08:00

Spain's property market crash claimed another victim on Tuesday, as real estate company Reyal Urbis filed for insolvency after failing to renegotiate debt with its creditors.

The move takes the property developer, which had 3.6 billion euros ($4.8 billion) of debt at the end of September, closer to becoming Spain's second-largest bankruptcy after Martinsa Fadesa, which defaulted on 7 billion euros of debt in 2008.

Dozens of property companies have collapsed in Spain, where house prices have fallen around 40 percent since their 2007 peak. With the country locked in a deep recession, analysts expect prices to fall further still.

Spain's banks were crippled by the property market bust, eventually requiring the state to agree a European bailout for its lenders of almost 40 billion euros last year. Indebted property firms have asked banks for debt relief but patience is wearing thin among lenders saddled with soured property assets.

Reyal Urbis is 70 percent owned by construction magnate Rafael Santamaria and its creditors include Santander, BBVA, Bankia and Banco Popular.

The company, which valued its property portfolio at 4.2 billion euros in June 2012, said it would continue to operate as permitted by Spanish insolvency laws.

Its insolvency petition now goes to court and its fate will be in the hands of a judge.

Reyal Urbis said Santamaria would remain at the helm of the company and he still hoped Reyal Urbis could reach a deal with its creditors, given "the good will of all negotiating parties".

The company had until Feb. 23 to reach a debt restructuring deal with the banks or file for insolvency. Sources close to the matter told Reuters on Friday that creditors had rejected the company's 3.6-billion-euro proposal.

Trading in the company's shares was suspended on Tuesday, Spain's stock market regulator said. The stock had plunged 99 percent since June 2007 to close at 0.124 euros on Monday.

At the end of 2011, Reyal Urbis owned some 888 finished homes in a country where over a million homes lie empty. The company also had 8 million square metres of land for development and 237,000 square metres of commercial property, including offices, shopping centres, industrial property and hotels.

Ms Sandiford to be executed for drug trafficking.

2013-01-22T02:22:00.001-08:00

Lindsay Sandiford was arrested in May last year after she tried to enter the Indonesian holiday island with illegal drugs worth £1.6 million hidden in her suitcase.

Local prosecutors had called for the 56-year-old housewife to be jailed for 15 years. But today there were gasps in the Bali courtroom when a panel of judges announced Ms Sandiford would be executed for drug trafficking.

As the shock verdict was announced, Ms Sandiford, from Gloucestershire, slumped back in her chair in tears before hiding her face with a brown sarong as she was led out of the courtroom.

Merry Christmas

2012-12-16T06:11:00.001-08:00

2012-12-10T01:10:00.001-08:00

Emotional eating is when people use food as a way to deal with feelings instead of to satisfy hunger. We've all been there, finishing a whole bag of chips out of boredom or downing cookie after cookie while cramming for a big test. But when done a lot — especially without realizing it — emotional eating can affect weight, health, and overall well-being.

Not many of us make the connection between eating and our feelings. But understanding what drives emotional eating can help people take steps to change it.

One of the biggest myths about emotional eating is that it's prompted by negative feelings. Yes, people often turn to food when they're stressed out, lonely, sad, anxious, or bored. But emotional eating can be linked to positive feelings too, like the romance of sharing dessert on Valentine's Day or the celebration of a holiday feast.

Sometimes emotional eating is tied to major life events, like a death or a divorce. More often, though, it's the countless little daily stresses that cause someone to seek comfort or distraction in food.

Emotional eating patterns can be learned: A child who is given candy after a big achievement may grow up using candy as a reward for a job well done. A kid who is given cookies as a way to stop crying may learn to link cookies with comfort.

It's not easy to "unlearn" patterns of emotional eating. But it is possible. And it starts with an awareness of what's going on.

ARE YOU ADDICTED TO BUSYNESS ARE YOU A SOCIAL MEDIA ADDICT

2012-12-04T04:32:00.001-08:00

ARE YOU ADDICTED TO BUSYNESS ARE YOU A SOCIAL MEDIA ADDICT

You may be lost in the addiction to busyness if…

Your usual response to “how are you?” is “so busy”, “crazy busy” or “busy but good”
You spend time worrying about how busy you are going to be tomorrow
You get angry when your spouse or friends aren’t as busy as you
Your busy life keeps you up at night thinking about everything you didn’t get done
You make a point of letting people know that you stay at the office after hours
You check email several times a day
You zone out during conversations thinking about everything you have to do
You volunteer for things you don’t care about
You spend time complaining about how busy you are
You make list after list to make sure you don’t forget anything during your busy day
You allocate time each day to clean your desk or organize your stuff
You regularly eat in your car
You use a phone in the car because “it’s the only time you have to talk”

During experiments on the axons of the Woods Hole squid (loligo pealei), we tested our cockroach leg stimulus protocol on the squid's chromatophores.

2012-08-25T04:00:00.001-07:00

The results were both interesting and beautiful. The video is a view through an 8x microscope zoomed in on the dorsal side of the caudal fin of the squid. We used a suction electrode to stimulate the fin nerve. Chromatophores are pigmeted cells that come in 3 colors: Brown, Red, and Yellow. Each chromatophore is lined with up to 16 muscles that contract to reveal their color.

Paloma T. Gonzalez-Bellido of Roger Hanlon's Lab in the Marine Resource Center of the Marine Biological Labs helped us with the preparation. You can read their latest paper at:http://rspb.royalsocietypublishing.org/content/early/2012/08/13/rspb.2012.1374

STAR WARS DETOURS™ Trailer

2012-08-25T03:43:00.001-07:00

Vintage Ads Most Disturbing Household Products

2012-08-11T21:26:00.001-07:00

Maybe. But it's really hard to see how even our parents and grandparents didn't get nightmares from ...

#13. Three-Legged Dingo Boots

vintageadbrowser.com

The Message:

Here are some boots that you should buy, because famous people wear them. Three of them.

The Horror:

Wait, what?

Yes, amazingly, the fact that this ad stars a pre-murder O.J. Simpson is the second-creepiest thing about it. And you can squint and try to read the text all you want -- it makes no reference whatsoever to the fact that their spokesperson has three legs. There's no cute slogan like "Boots so comfortable, you'll wish you had another foot!" Nope. It's like some guy in the art department just said, "Eh, I don't like how you can't really see the chair, let's just add another leg to fill that space."

We know what you're thinking: "Cracked, this is obviously a subtle 'big dick' joke. 'Third leg?' Get it?" But, no, it turns out this was a whole campaign they did with various celebrities, some of whom are women:

eBay
Like, uh ... this famous lady right here.

But O.J. seems to be the most frequent star of the "Third Leg" campaign, which apparently lasted for years. Note how his afro shrinks as he gets more comfortable with his new appendage:

The picture in that third ad would have been perfect for the cover of his book.

Please don't blame us for the inevitable nightmare in which O.J. is running after you, in the dark, those three boots pounding down the pavement after you with a noise like a wounded horse.

#12. Lord West Suits Will Impress Your 7-Year-Old Date

vintageadbrowser.com
"I like my women like I like my code names: 007."

The Message:

Women of all ages dig men in tuxedos!

The Horror:

According to the text, this dinner suit is for "sophisticated traditionalists," a euphemism we weren't previously aware of for "child molesters." Because there's no other way to interpret this picture. That's not tenderness on their faces. That's hunger. If you told us that they're a father and daughter, that would only make it creepier.

And it turns out that this is only the worst example in a whole series of ads associating little girls with selling tuxedos.

eBay
The style is best described as Godfather meets Lolita.

Can you imagine the pitch meeting that led to this campaign? Picture Don Draper from Mad Men standing before his clients, selling them on this idea:

"Class. Elegance. Making out with little girls. These are the values your company represents."

"Did ... did you say 'making out with little girls,' Don?"

"Yes," replied Don with perfect confidence.

"OK, just making sure."

Sitting at the end of the table, Peggy looks at Don and smiles. He did it again.

#11. Man in Tuxedo Carefully Considers Naked Child

library.duke.edu
"Told you it was bigger. Now pay up."

The Message:

Regular soap sinks in the bathtub, causing children to take longer in washing themselves and their fathers to get angry and spank them. Prevent child abuse by buying Ivory Soap -- it floats.

The Horror:

OK, they're clearly just fucking with us at this point. Remove the text and the message becomes clear: "In the old days, child predators used to dress way better than they do now." But let's put the pedophilia overtones aside for the moment and examine the text.

Was the elaborate scenario described under the picture (involving childhoods ruined by non-floating soap) really such a common problem in the '20s, or was this based on the painful personal experiences of whoever commissioned this ad? We're betting on the latter option. Note that the father's body language doesn't say "I'm going to spank you" -- he's clearly pondering which part of the kid's body to break first.

"Maybe the 28th trimester isn't too late for an abortion."

#10. "Are You Sure I'll Still Be a Virgin?"

thesocietypages.org
"If you didn't think band camp counted, I don't see why you'd think this would."

The Message:

Don't worry, teens, you can use Tampax tampons without losing your virginity.

The Horror:

Be honest: How many of you looked at this picture and immediately recognized it as a Tampax ad? And how many looked at it and thought it depicted a teenage girl being sexually propositioned? It's not just us, is it?

This ad would have looked 90 percent less sordid if both people involved were clearly visible. Instead, the second teenager is for some reason sitting on the floor of the porch with her back to us, so we can't see how young, or scared, she is. But, of course, all of that is purely from our own depraved imagination. The real ad is simply about two teenagers debating whether or not inserting a tampon counts as sex.

#9. Escaped Convicts Love Revell Authentic Model Kits

vintageadbrowser.com
"Is this the new plan, boss?"
"I've spent all day plotting against Superman; this is 'Lex Time'."

The Message:

Hey kids! Check out these sweet model kits!

The Horror:

There's only one possible scenario in which this picture could have come to exist: The photographers were getting ready to shoot this ad when they realized that the boy who was supposed to be holding up the models in the picture never showed up for work. Panicking, the man from the ad agency looked around the studio.

"Dmitri, can you come here for a second?" he said to the guy who fixes the lighting. "Stand here and hold this model. Yes, that's great. You'll play the boy in this ad."

"But sir," said the photographer, "Dmitri was just released from jail. In fact, he's still wearing the prison jumpsuit."

"No, no, he's perfect. Look at him. Look at that childlike innocence in his face."

"Could you open the top button maybe, show a little chest hair?"

"Perfect."

#8. Our Competitors = Surgical Ass Torture

vintageadbrowser.com
"Don't worry, sir, the gloves are just to establish atmosphere."

The Message:

Using cheap toilet paper can lead to medical complications.

The Horror:

... which in turn can lead to rubber-gloved hands inserting clamps in your anus. Better play it safe and go with Scott Tissues.

This attempt to traumatize customers into buying their product with threats of anal torture was part of a whole marketing campaign created during the Great Depression in which Scott Tissues' slogan went from "Wipe your butt with us" to "Wipe your butt with us, or die in a world of asshole pain."

Of course, it was all bullshit: There's no such thing as "toilet tissue illness," it was just a thing they made up to convince people to keep buying tissues at a time when they were lucky enough if they had a toilet.

#7. "Before You Scold Me, Mom ... Maybe You'd Better Light Up a Marlboro"

deceptology.com

The Message:

Before you beat your baby for stealing your favorite hat, have a cigarette and relax yourself. Then beat the baby.

The Horror:

How many times did this months-old child have to be punched before it learned to pick up the Marlboros and offer them to mommy to calm her down? If that's not the saddest thing you've imagined all week, you're dead inside. This is actually one in a series of ads from the '50s, back when Marlboro was targeting mommies instead of rugged cowboys. Sometimes the babies actually seem to be guilting their moms into smoking more.

tobacco.stanford.edu
"You turned me into an addict when I was a fetus, now deal with it."

Oddly enough, the version of this ad aimed at fathers doesn't involve scolding, but a pompous baby in a basket defending daddy's rather feminine cigarette tastes (note the reference to "beauty tips" at the bottom).

tobacco.stanford.edu
This is the kind of debate babies have all the time.

Brad Pitt is reportedly utilising his free time to plan his wedding with Angelina Jolie.

2012-08-05T02:39:00.001-07:00

The 48-year-old has taken charge of preparations for the wedding that is expected to take place end of September. He has flown in a team of builders to renovate the home he shares with Jolie in southern France.

"Angelina isn`t so bothered about when they tie the knot, it`s Brad who is piling on the pressure," a website has quoted a source as saying.

"He wants the main house to be finished when the event takes place, even though the close friends and relatives who are invited aren`t the types to care. He wants everything to be absolutely perfect," the source added.

Invasion of the pickpockets

2012-07-19T17:23:00.001-07:00

Britain is in the grip of a pickpocketing epidemic as Eastern European gangs descend on London ahead of the Olympic Games.

A surge in sneak street thefts means more than 1,700 people fall victim every day – an increase of nearly a fifth in only two years, according to official crime figures released yesterday.

At the same time, police warned that professional gangs from Romania, Lithuania and even South America who operate in capitals across Europe are heading to Britain, intent on cashing in on unwitting tourists at London 2012.

How they do it: A member of the pickpocket gang approaches a BBC reporter investigating the rise in thefts ahead of the Olympics

Keeping him occupied: The man speaks to the victim on the pretense of needing directions while another gang member approaches from behind

A BBC investigation exposed the tactics used by Romanian thieves, who were previously operating in Barcelona, to dupe their victims.

The criminals boasted of their ‘one-second’ theft techniques which leave targets unaware that anything has happened until it is too late. They can make £4,000 a week taking wallets, smartphones and laptop bags. The goods are then shipped back to Romania and sold on the black market.

Scotland Yard has made more than 80 arrests already and warned thieves the capital will be a ‘hostile environment’ in the coming weeks.

The Met has even drafted in a team of Romanian police officers to deal with the problem and patrol in the West End of London and Westminster during the Games. They will not have arrest powers.

Distracted: An accomplice (left) then plays drunk so he can get close enough to the target to strike

Sleight of hand: The 'drunk' man jostles around with the BBC reporter, making it harder for him to notice what is going on

Rich pickings: The sneering thief walks away with the wallet from the unsuspecting victim

Teamwork: The thief quickly hands the wallet to another member of the gang, who spirits it away

Mayor of London Boris Johnson said: ‘These Romanian officers will prove to be a huge asset in cracking down on certain criminal networks who are targeting tourists in central London.’

Official statistics released yesterday showed pickpocketing thefts rose 17 per cent in the past two years.

In 2011/12, a total of 625,000 people fell victim, the Crime Survey of England and Wales showed.

That is an increase of more than 102,000 since 2009/10.

The vast majority of the total are classified as ‘stealth thefts’, but in 83,000 cases the victims’ possessions were ‘snatched’.

Barclays boss Bob Diamond resigns

2012-07-03T00:15:00.001-07:00

Barclays chief executive Bob Diamond has resigned with immediate effect. The move comes less than a week after the bank was fined a record amount for trying to manipulate inter-bank lending rates. Mr Diamond said he was stepping down because the external pressure on the bank risked "damaging the franchise". Chairman Marcus Agius, who said on Monday he was stepping down, will take over the running of Barclays until a replacement is found. "I am deeply disappointed that the impression created by the events announced last week about what Barclays and its people stand for could not be further from the truth," Mr Diamond said in a statement. He will still appear before MPs on the Treasury Committee to answer questions about the Libor affair on Wednesday. "I look forward to fulfilling my obligation to contribute to the Treasury Committee's enquiries related to the settlements that Barclays announced last week without my leadership in question," Mr Diamond said. Last week, regulators in the US and UK fined Barclays £290m ($450m) for attempting to rig Libor and Euribor, the interest rates at which banks lend to each other, which underpin trillions of pounds worth of financial transactions. Staff did this over a number of years, trying to raise them for profit and then, during the financial crisis, lowering them to hide the level to which Barclays was under financial stress. Prime Minister David Cameron has described the rigging of Libor rates as "a scandal". The Serious Fraud Office is also considering whether to bring criminal charges.

Beware of missed call to check SIM cloning

2012-07-02T00:04:00.001-07:00

Next time if you get a missed call starting with +92; #90 or #09, don't show the courtesy of calling back because chances are it would lead to your SIM card being cloned. The telecom service providers are now issuing alerts to subscribers —particularly about the series mentioned above as the moment one press the call button after dialing the above number, someone at the other end will get your phone and SIM card cloned. According to reports, more than one lakh subscribers have fallen prey to this new telecom terror attack as the frequency of such calls continues to grow. Intelligence agencies have reportedly confirmed to the service providers particularly in UP West telecom division that such a racket is not only under way but the menace is growing fast. "We are sure there must be some more similar combinations that the miscreants are using to clone the handsets and all the information stored in them," an intelligence officer told TOI. General Manager (GM) BSNL, RV Verma, said the department had already issued alerts to all the broadband subscribers and now alert SMSes were being issued to other subscribers as well. As per Rakshit Tandon, an IT expert who also teaches at the police academy (UP), the crooks can use other combination of numbers as well while making a call. "It is better not to respond to calls received from unusual calling numbers," says Tandon. "At the same time one should avoid storing specifics of their bank account, ATM/ Credit/Debit card numbers and passwords in their phone memory because if one falls a prey to such crooks then the moment your cell phone or sim are cloned, the data will be available to the crooks who can withdraw amount from your bank accounts as well," warns Punit Misra; an IT expert who also owns a consultancy in Lucknow. The menace that threatens to steal the subscriber's information stored in the phone or external memory (sim, memory & data cards) has a very scary side as well. Once cloned, the culprits can well use the cloned copy to make calls to any number they wish to. This exposes the subscribers to the threat of their connection being used for terror calls. Though it will be established during the course of investigations that the cellphone has been cloned and misused elsewhere, it is sure to land the subscriber under quite some pressure till the time the fact about his or her phone being cloned and misused is established, intelligence sources said. "It usually starts with a miss call from a number starting with + 92. The moment the subscriber calls back on the miss call, his or her cell phone is cloned. In case the subscribers takes the call before it is dropped as a miss call then the caller on the other end poses as a call center executive checking the connectivity and call flow of the particular service provider. The caller then asks the subscriber to press # 09 or # 90 call back on his number to establish that the connectivity to the subscriber was seamless," says a victim who reported the matter to the BSNL office at Moradabad last week. "The moment I redialed the caller number, my account balance lost a sum of money. Thereafter, in the three days that followed every time I got my cell phone recharged, the balance would be reduced to single digits within the next few minutes," she told the BSNL officials.

France brings in breathalyser law

2012-07-01T17:25:00.001-07:00

New motoring laws have come into force in France making it compulsory for drivers to carry breathalyser kits in their vehicles. As of July 1, motorists and motorcyclists will face an on-the-spot fine unless they travel with two single-use devices as part of a government drive to reduce the number of drink-drive related deaths. The new regulations, which excludes mopeds, will be fully enforced and include foreigner drivers from November 1 following a four-month grace period. Anyone failing to produce a breathalyser after that date will receive an 11 euro fine. French police have warned they will be carrying out random checks on drivers crossing into France via ferries and through the Channel Tunnel to enforce the new rules. Retailers in the UK have reported a massive rise in breathalyser sales as British drivers travelling across the Channel ensure they do not fall foul of the new legislation. Car accessory retailer Halfords said it is selling one kit every minute of the day and has rushed extra stock into stores to cope with the unprecedented demand. Six out of 10 Britons travelling to France are not aware they have to carry two NF approved breathalysers at all times, according to the company. The French government hopes to save around 500 lives a year by introducing the new laws, which will encourage drivers who suspect they may be over the limit to test themselves with the kits. The French drink-driving limit is 50mg of alcohol in 100ml of blood - substantially less than the UK limit of 80mg.

The number of Britons arrested overseas is on the rise, official figures have shown.

2012-07-01T06:43:00.001-07:00

The Foreign Office (FO) handled 6,015 arrest cases involving British nationals abroad between April 2011 and March 2012. This was 6% more than in the previous 12 months and included a 2% rise in drug arrests. The figures, which include holidaymakers and Britons resident overseas, showed the highest number of arrests and detentions was in Spain (1,909) followed by the USA (1,305). Spanish arrests rose 9% in 2011/12, while the United States was up 3%. The most arrests of Britons for drugs was in the US (147), followed by Spain (141). The highest percentage of arrests for drugs in 2011/12 was in Peru where there were only 17 arrests in total, although 15 were for drugs. The FO said anecdotal evidence from embassies and consulates overseas suggested many incidents were alcohol-fuelled, particularly in popular holiday destinations such as the Canary Islands, mainland Spain, the Balearics (which include Majorca and Ibiza), Malta and Cyprus. Consular Affairs Minister Jeremy Browne said: "It is important that people understand that taking risks abroad can land them on the wrong side of the law. "The punishments can be very severe, with tougher prison conditions than in the UK. While we will work hard to try and ensure the safety of British nationals abroad, we cannot interfere in another country's legal system. "We find that many people are shocked to discover that the Foreign and Commonwealth Office cannot get them out of jail. We always provide consular support to British nationals in difficulty overseas. However, having a British passport does not make you immune to foreign laws and will not get you special treatment in prison."

Police study Murdoch's 'secret' iPhone account

2012-06-17T23:37:00.001-07:00

Scotland Yard detectives investigating phone hacking at the News of the World are examining the call records of four newly discovered Apple iPhones issued to senior executives at News International. The smartphones, issued by O2 in a contract beginning in October 2009, included a handset given to James Murdoch, the former chairman and chief executive of News Corp Europe. Despite billing for the phones totalling nearly £12,000 between June last year and May this year, neither Operation Weeting nor the Leveson Inquiry was told of the existence of the smartphone accounts. Phone text messages and emails sent and received by News International executives and advisers have provided some of the most controversial evidence heard by Lord Justice Leveson's inquiry into press practices and ethics. It had been assumed that the email and text traffic from key News International executives was centred solely on their company BlackBerry account with Vodafone. In accounts seen by The Independent, issued through 02's corporate customer services at Arlington Business Park in Leeds, Mr Murdoch's iPhone account is listed as "active". Mr Murdoch is said to have told 02 that he specifically wanted a "white iPhone" when the smartphone was issued to him in the summer of 2009. Katie Vanneck-Smith, listed as News International's chief marketing officer, also has an active account. Two other NI executive numbers are described as disconnected. Between June last year – just before The Guardian revealed in July that the mobile phone of murdered schoolgirl Milly Dowler had been hacked into – and the beginning of the Leveson Inquiry in November, the NI iPhone accounts were billed for £9,650. Last night, Labour MP Tom Watson said people would be "shocked" to learn that the smartphones had been issued to key NI executives, while the company's disclosures focused only on the BlackBerry Vodafone accounts. Mr Watson said he hoped that News Corp's Management and Standards Committee, which is responsible for all matters relating to phone hacking, would enforce its own promise of full transparency and appropriate disclosure, by revealing all the data and logs held on the discovered phones to both the police and the Leveson Inquiry. Last night, a spokeswoman for News International, said: "Mr Murdoch fully co-operated with the Leveson Inquiry. It is ridiculous to suggest that James Murdoch keeps or kept a 'secret phone'." Meanwhile sources close to the Leveson Inquiry have denied that Lord Justice Leveson threatened to quit his judicial investigation following comments made in February by Michael Gove. The Education Secretary told a gathering of political journalists that the inquiry into press ethics and practices was creating a "chilling atmosphere" towards press freedom. During Prime Minister's Questions in the Commons the day after Mr Gove's lobby speech, David Cameron appeared to back his cabinet colleague's view. Concern that Mr Gove might be the Prime Minister's advance messenger prompted Lord Justice Leveson to call the Cabinet Secretary, Sir Jeremy Heywood. Whitehall sources say Lord Justice Leveson wanted to learn directly from Mr Cameron whether his inquiry was wasting public money on an ultimately futile exercise or whether his initial remit stood. Although the reassurances from No 10 took two days to arrive, sources claim there was no threat from the judge to resign from his own inquiry.

Bank of England meets amid talk of £50bn stimulus

2012-06-07T00:27:00.001-07:00

Bank of England policymakers meet today to decide whether to change interest rates or to pump in more money into the ailing economy, with leading economist saying they may opt to inject a further £50bn of stimulus.

Europe is on the verge of financial chaos.

2012-06-07T00:17:00.001-07:00

Global capital markets, now the most powerful force on earth, are rapidly losing confidence in the financial coherence of the 17-nation euro zone. A market implosion there, like that triggered by Lehman Brothers collapse in 2008, may not be far off. Not only would that dismantle the euro zone, but it could also usher in another global economic slump: in effect, a second leg of the Great Recession, analogous to that of 1937. This risk is evident in the structure of global interest rates. At one level, U.S. Treasury bonds are now carrying the lowest yields in history, as gigantic sums of money seek a safe haven from this crisis. At another level, the weaker euro-zone countries, such as Spain and Italy, are paying stratospheric rates because investors are increasingly questioning their solvency. And there’s Greece, whose even higher rates signify its bankrupt condition. In addition, larger businesses and wealthy individuals are moving all of their cash and securities out of banks in these weakening countries. This undermines their financial systems. 423 Comments Weigh InCorrections? Personal Post The reason markets are battering the euro zone is that its hesitant leaders have not developed the tools for countering such pressures. The U.S. response to the 2008 credit market collapse is instructive. The Federal Reserve and Treasury took a series of huge and swift steps to avert a systemic meltdown. The Fed provided an astonishing $13 trillion of support for the credit system, including special facilities for money market funds, consumer finance, commercial paper and other sectors. Treasury implemented the $700 billion Troubled Assets Relief Program, which infused equity into countless banks to stabilize them. The euro-zone leaders have discussed implementing comparable rescue capabilities. But, as yet, they have not fully designed or structured them. Why they haven’t done this is mystifying. They’d better go on with it right now. Europe has entered this danger zone because monetary union — covering 17 very different nations with a single currency — works only if fiscal union, banking union and economic policy union accompany it. Otherwise, differences among the member-states in competitiveness, budget deficits, national debt and banking soundness can cause severe financial imbalances. This was widely discussed when the monetary treaty was forged in 1992, but such further integration has not occurred. How can Europe pull back from this brink? It needs to immediately install a series of emergency financial tools to prevent an implosion; and put forward a detailed, public plan to achieve full integration within six to 12 months. The required crisis tools are three: ●First, a larger and instantly available sovereign rescue fund that could temporarily finance Spain, Italy or others if those nations lose access to financing markets. Right now, the proposed European Stability Mechanism is too small and not ready for deployment. ●Second, a central mechanism to insure all deposits in euro-zone banks. National governments should provide such insurance to their own depositors first. But backup insurance is necessary to prevent a disastrous bank run, which is a serious risk today. ●Third, a unit like TARP, capable of injecting equity into shaky banks and forcing them to recapitalize. These are the equivalent of bridge financing to buy time for reform. Permanent stability will come only from full union across the board. And markets will support the simple currency structure only if they see a true plan for promptly achieving this. The 17 member-states must jointly put one forward. Both the rescue tools and the full integration plan require Germany, Europe’s strongest country, to put its balance sheet squarely behind the euro zone. That is an unpopular idea in Germany today, which is why Chancellor Angela Merkel has been dragging her feet. But Germany will suffer a severe economic blow if this single-currency experiment fails. A restored German mark would soar in value, like the Swiss franc, and damage German exports and employment. The time for Germany and all euro-zone members to get the emergency measures in place and commit to full integration is now. Global capital markets may not give them another month. The world needs these leaders to step up.

Corporate sentiment about the UK's economic prospects collapsed in May

2012-06-06T06:13:00.001-07:00

Tumbling 47 points from a positive reading of 26pc to -21pc – meaning most respondents were pessimistic about the outlook. The reading will worry the Treasury, which is counting on companies to release for investment some of the £750bn they are hoarding. The drop in confidence, though, will only encourage them to wait. Although sentiment about the UK in general turned negative, companies were still fairly upbeat about their own trading prospects, with the reading in May falling just eight points to 35pc. Profit margins also improved marginally, with the balance rising two points to -15pc. Overall, however, the May survey pointed to weak growth of 0.2pc in the second quarter of the year – excluding the effect of the extra day's bank holiday for the Diamond Jubilee, which may have knocked as much as 0.5 percentage points off growth. Sentiment also remained above the levels seen at the end of 2011 and during the height of 2008 financial crisis. Trevor Williams, chief economist at Lloyds Bank Wholesale Banking and Markets, said: "The renewed concern around the eurozone is clearly having an impact on businesses' sentiment towards prospects for the UK economy and, to a lesser extent, to their own prospects."

A Facebook crime every 40 minutes

2012-06-04T22:44:00.001-07:00

A crime linked to Facebook is reported to police every 40 minutes. Last year, officers logged 12,300 alleged offences involving the vastly popular social networking site. Facebook was referenced in investigations of murder, rape, child sex offences, assault, kidnap, death threats, witness intimidation and fraud.

Prince Philip in hospital

2012-06-04T12:42:00.001-07:00

The Duke of Edinburgh has been taken to hospital with a bladder infection and will miss the rest of the Diamond Jubilee celebrations. Buckingham Palace said Prince Philip, 90, had been taken to the King Edward VII Hospital in London from Windsor Castle as a "precautionary measure". The Queen is still expected to join 12,000 others at the Jubilee concert which is under way at the palace. The prince will remain in hospital under observation for a few days. The prince had appeared to be in good health when he accompanied the Queen on Sunday on the royal barge the Spirit of Chartwell, which formed part of the rain-drenched Jubilee river pageant. He and the Queen stood for most of the 80-minute journey, as they were accompanied by 1,000 boats travelling seven miles down the river to Tower Bridge.

Luka Rocco Magnotta, the 'Canadian Psycho,' arrested in Berlin

2012-06-04T12:34:00.001-07:00

Luka Rocco Magnotta was arrested in Berlin Monday after a four-day international manhunt that spanned three countries. The 29-year-old Canadian wanted over a horrific Montreal ice pick murder and decapitation of a Chinese student that he allegedly filmed and posted to the Internet, was arrested in or near an Internet cafe, Berlin police said. Montreal police confirmed they are aware of the reports that Magnotta was arrested, but said they are still in the process of contacting their Berlin counterparts. The arrest comes after French authorities said they were investigating a tip that Magnotta travelled from Paris to Berlin via bus on the weekend. “Somebody recognized him and (then) all the police recognized him,” Berlin police spokesperson Stefan Redlich told CP24 Monday. Handout (Click to enlarge) Magnotta's alleged victim is Lin Jun, a 33-year-old Concordia University student from Wuhan, Hubei, China. He was last seen on May 24, police said, and reported missing on May 29. Redlich said police were called in by a civilian who spotted Magnotta and he was arrested after police asked for his identification at about 2:00 p.m. local time in Berlin. Reuters is reporting it was an employee of the cafe, Kadir Anlayisli, that recognized Magnotta. The cafe is on Karl Marx Strasse, a busy shopping street filled with Turkish and Lebanese shops and cafes in the Neukoelln district of Berlin. German television quoted the owner of the cafe saying Magnotta was surfing the Internet for about an hour before his arrest. Redlich said Magnotta has been taken into custody without incident and will go in front of a judge Tuesday. Canadian officials are expected to start the extradition process for Magnotta in the near future.

Rush for safe havens as euro fears rise

2012-05-31T00:24:00.001-07:00

US benchmark borrowing costs plunged to levels last seen in 1946 and those for Germany and the UK hit all-time lows as investors took fright at what they see as a disjointed policy response to the debt crisis in Spain and Italy. In a striking sign of the flight to haven assets, German two-year bond yields fell to zero for the first time, below the equivalent rate for Japan, meaning investors are willing to lend to Berlin for no return. US 10-year yields fell as low as 1.62 per cent, a level last reached in March 1946, according to Global Financial Data. German benchmark yields reached 1.26 per cent while Denmark's came close to breaching the 1 per cent level, hitting 1.09 per cent. UK rates fell to 1.64 per cent, the lowest since records for benchmark borrowing costs began in 1703. "They are extreme levels because we are in an extremely perilous situation. People just want to put their money somewhere where they think they will get it back. People may soon be paying Germany or the US to look after their money," said Gary Jenkins, head of Swordfish Research, an independent credit analysis company. The flight to safety came as the situation in Italy and Spain, the eurozone's third- and fourth-largest economies, deteriorated further. Italy held a disappointing debt auction and saw its benchmark borrowing costs rise above 6 per cent for the first time since January. The euro fell 0.8 per cent against the dollar to under $1.24 for the first time in two years. Confusion over how the Spanish government's rescue of Bankia, the stricken lender, will be structured led the premium Madrid pays over Berlin to borrow to hit fresh highs for the euro era at 540 basis points. Analysts said the elevated level meant that clearing houses could soon raise the amount of margin, or collateral, that traders need to post against Spanish debt, a move that led to the escalation of crises in Portugal and Ireland. The European Central Bank has made clear to Spain that it cannot use the bank's liquidity operations as part of a recapitalision of Bankia. However, the central bank said on Wednesday it had not been officially consulted on the plans. Equity markets globally fell on the eurozone fears with bourses in Paris, Frankfurt and London all dropping 2 per cent. But Nick Gartside, international chief investment officer for JPMorgan Asset Management, noted that while US bond yields had halved since April last year the S&P 500 equity market was at the same level. "One of those two markets is mispriced. Core government bonds are an efficient market and they are ahead," he added. Investors said borrowing costs for the US, UK and Germany were likely to continue to fall amid a worsening economic backdrop and the threat of more central bank intervention. Wealth managers have been moving client assets into currency havens in recent weeks, with the Swiss franc and the US dollar among the biggest beneficiaries "Risk aversion, a rapidly slowing global economy and unusually low policy rates will pin these short and intermediate maturity bonds at unprecedented low levels for quite a while," said Mohamed El-Erian, chief executive of Pimco, one of the world's largest bond investors. Mr Gartside said he could easily see German rates going below 1 per cent, following a path that only Japan and Switzerland have taken among major economies, while the US and UK could dip under 1.5 per cent. Markets are increasingly resigned to more turmoil until policy makers take more radical action. The two most popular plans of action for investors are for the ECB to buy Spanish and Italian bonds in unlimited size or for eurozone countries to agree on a fiscal union involving the pooling of debt. "You have to throw everything at it. Spain is just too big for half measures. The next intervention has to be not just massive in size but it has to show a total commitment," said Mr Jenkins. He recommends that the ECB set targets either for the premium Spain and Italy pay to borrow over Germany or for their yields.

Euro break-up 'could wipe 50pc off London house prices'

2012-05-31T00:03:00.001-07:00

Property prices in the capital’s most sought-after postcodes have been driven up by investors moving funds out of assets held in euros to buy into what is seen as a “safe haven” alternative. Foreign money seeking a refuge from the wider economic turmoil accounted for 60pc of acquisitions of prime central London property between 2007 and 2011, according to a report by Fathom Consulting for Development Securities. If the shared currency broke up completely, London property would initially be boosted by the continued flight towards a safe haven, the report predicts. But, once the break-up had taken place, demand for these assets as an insurance against this event would start to ebb. “Although fears about a messy end to the euro debt crisis may account for much of the gain in prime central London (PCL) prices that has taken place over the past two years, we find that a break-up of the single currency area is also the single greatest threat to PCL,” said researchers.

Leveson - The Hunt is on

2012-05-30T23:43:00.001-07:00

Up until now, Lord Justice Leveson has only held the future of the British press in his hands. Today, despite all his protests to the contrary, his inquiry may determine the fate of the culture secretary, Jeremy Hunt. The judge insists that it is not his job to put any minister in the dock and that he certainly will not be giving his verdict on whether there have been any breaches of the ministerial code. Nevertheless, the prime minister has made it clear that he sees today's hearing as the moment when Mr Hunt must defend his much criticised handling of News Corp's £8bn bid for total control of BSkyB. The culture secretary has, I'm told, submitted more than 160 pages of internal memos, emails and text message transcripts to the Leveson Inquiry. I understand that he will insist that, despite having originally been a cheerleader not just for Rupert Murdoch but also for his bid, he acted in ways which frustrated it rather than accelerated it once he was made the minister in charge. He will claim that he referred it to the broadcasting regulator Ofcom when told by officials that it wasn't necessary to do so. He is likely to face questions about why he did not follow Ofcom's advice to refer the bid to the Competition Commission. He is likely to reply that he was given legal advice that he had first to consider News Corps offer to spin off Sky News so as to deal with so-called plurality issues. The culture secretary is likely to be asked how he can claim to have been unaware of the scale or nature of the contact between News Corp and his political adviser, Adam Smith - who resigned once his flood of emails and texts were revealed. I understand that Jeremy Hunt originally believed that his adviser had done nothing wrong and told friends he would resign himself rather than letting a junior official resign for him. The prime minister shows no sign yet of wanting to force him out - believing that however bad things may now look, Mr Hunt didn't actually do anything wrong or anything which helped the Murdochs and their bid. Labour argue that - even before today's hearing - it is evident the culture secretary should go as he is in breach of the ministerial code for failing to supervise his adviser, and for misleading the House of Commons when he wrongly asserted he had published all contacts between his department and News Corp - as well as claiming never to have intervened to affect the outcome of the bid.