The British Government Has Given Up On Cutting The Deficit | ||
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The latest UK public finance figures are just out, and they're not pretty. The government borrowed $64.7 billion in the first 7 months of the year: £3.7 billion more than it did in the same period last year, a 6.1% increase and more than analysts expected. That's despite the economy growing and the government's official target to slash the deficit. So it's fair to ask: is prime minister David Cameron's government even really trying to cut public spending any more? This chart (above) shows how much the government has been borrowing over each 12-month period, and how the trajectory might have been if chancellor or the exchequer George Osborne and the Treasury had stuck to its original pace.
The £101 billion borrowed in the 12 months to October is barely different to the £104 billion borrowed in the 12 months before that: at this pace the deficit would take about 35 years to eliminate. It's now not clear that the government will hit its own targets for reducing spending this year, despite pretty decent economic growth. That's in comparison to the US, where the public deficit has been dramatically reduced. By amazing coincidence, there is a general election next year. Governments tend to dislike enacting cuts right in front of a vote. This is all just loading up problems for the next government, and possibly the one after that. The public spending reductions pencilled in for the next parliament are huge, and every time figures like these come out, they get a little bit bigger. Join the conversation about this story »  | ||
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It's clear what happened: the government began with quite rapid spending cuts, but the direction of travel changed at around the beginning of 2012. Borrowing rose a little, and when reductions resumed, they were much steadier. CHINA SLASHES RATES | ||
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The People's Bank of China, one of the world's most secretive central banks, just slashed interest rates. The one-year deposit rate just got cut 0.25 points to 2.75% And the refinancing rate was slashed 0.40 points to 3.60%. That's according to the Financial Times. This is all in the face of a slowing economy. China's once-famous growth rates have dropped, and the government is now pursuing a 7.5% annual rise in GDP. Some economists think even that rate is too high. China's house prices are also dropping in the vast majority of the country, which is likely to throw some cold water over the economy. Interest rate cuts could go at least some of the way to counteracting that, or at least reducing the slump. Join the conversation about this story »  | ||
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Venice declares war on noisy suitcases | ||
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Rome (AFP) - Famed for the serene silence of its timeless nooks and crannies, Venice is about to get even quieter ... by banning noisy suitcases on wheels. Residents of Italy's floating city have had up it to here with the round-the-clock rumble of luggage being dragged across cobblestoned alleyways and bridges by a large proportion of the 27 million visitors who flock there every year. And their mounting irritation has prompted city authorities to draw up draft rules which will, from next year, see tourists become liable for fines of up to 500 euros ($627) if they fail to switch to noise-free wheels which are either made of rubber or air-filled -- or simply opt to carry their luggage to and from their hotels. The ban also targets trolleys used by workers for the final leg of goods deliveries to businesses and residences within the city and local officials appear to be counting on bag manufacturers coming up with Venice-friendly models. Italian media said residents of the car-free city would be exempted from the ban although there was no mention of the provision, which would be of questionable legality, in a statement issued by the local council on its plans. "The rule is designed to respond to the numerous citizens who have in recent years complained to the local council about the serious irritation caused by stuff being moved about at times of the day and night when the law provides for protection against noise pollution," the statement said. Officials also said that cushioned wheels were required to protect the city's ancient paving. "We have also had numerous expressions of concern about the gradual deterioration and wear and tear of our paving and bridges which had survived intact for centuries," the council statement said.
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European stocks are surging after Draghi's dovish speech | ||
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Mario Draghi just pushed European markets out of bed with a dovish speech, and every index is climbing significantly: France's CAC 40 is up 0.98% Germany's DAX is up 1.46% The UK's FTSE 100 is up 0.43% Italy's FTSE MIB is up 1.33% Spain's IBEX is up 1.80% Asian markets closed up: Japan's Nikkei finished 0.33% higher and Hong Kong's Hang Seng closed up 0.37%. US futures climbed with European stocks: the Dow is 49 points up, and the S&P 500 is 6 points higher. We're waiting on a speech at the same conference from the Bundesbank's Jens Weidmann, who is one of the most notable hawks making policy at the ECB. Other than that, it's a quiet day for data, with only the Kansas Fed's manufacturing index coming from the US, out at 4 p.m. GMT. Join the conversation about this story »  | ||
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The 10 Things You Need To Know In Advertising Today | ||
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Before you head off for the weekend, make sure you're up to date with all the important advertising stories this Friday. 1. Google is going to let users pay to get rid of ads on certain sites. Google Contributor will allow users to pay between $1 and $3 per month to stop seeing Google AdSense banners. The money will be distributed between Google and participating sites, which so far include Urban Dictionary, The Onion and Mashable, among others. 2. Take a look at the new football field-long mega billboard taking over Times Square in action in this video. Google will become the first advertiser appearing on the screen from November 24. 3. The John Lewis penguin Christmas ad is boosting sales of a completely unrelated chocolate bar. McVitie's Penguin Biscuits have seen sales soar 75% since the ad launched, according to figures from supermarket Waitrose. 4. The hugely popular UK tabloid website MailOnline has revealed why it is changing its name to DailyMail.com in the US. Its publisher has admitted US advertising executives were confused and that there is more brand recognition around the Daily Mail, the name of the print newspaper. 5. In a last minute change to the schedule, Facebook is turning away from the annual New Fronts event organized by the Interactive Advertising Bureau (IAB) in the US due to a lack of original digital programming, according to Adweek. The weeklong event of parties and presentations, which has been running for seven years, is a chance for digital media companies to show off their upcoming content and advertising opportunities in a similar way to TV, to lock in upfront commitments from advertisers. However, the focus of the event has shifted from just showing off ad formats, to originally programming. 6. AdAge explores why the Washington Post built its own ad server for its Amazon tablet app. The Post looked at several third-party ad servers, but ended up building its own because it wanted to avoid the "spinning wheels" you often see as ads load on other apps and websites. 7. Digiday has spoken to the CMO of wearables company Fitbit, which has just launched its first TV and print ad campaign. Tim Rosa discusses the threat of the Apple Watch, looking after customer data and why the wearable market is such a tough nut to crack. 8. Uber has hired a law firm to review the company's privacy policy, after a BuzzFeed report alleged an exec at the company had accessed a reporter's Uber location data without their permission. Hogan Lovells will be conducting an "in-depth review" of the company's existing data privacy program and recommend enhancements. 9. Marketing Week has a useful repository of all the latest Christmas advertising news. The "Christmas Collection" features brands including Burberry, John Lewis and Coca-Cola. 10. Exchangewire has called 2014 the year of "consolidation" in the adtech industry. Martech firms buying their way into the ‘traditional’ ad tech space spells major competition, on the horizon for both pure-play ad tech firms, as well as agencies, according to Exchangewire's sources. Join the conversation about this story »  | ||
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Wright leads Australian Masters, Scott trails by six | ||
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Melbourne (AFP) - Australia's Michael Wright consolidated his lead at the halfway stage of the Australian Masters as Adam Scott failed to make much headway at Melbourne's Metropolitan on Friday. Starting the day tied for the lead, Wright carded a four-under 68 to be two shots clear of the field on nine-under 135. World number two Scott, chasing his third straight Masters title, trailed Wright by six shots in joint 11th spot. The 2013 Augusta Masters champion posted a four-under 68 to lie three-under on 141 heading into the weekend rounds. "I felt, certainly, on the front nine, there was a low round out there," Scott said. "If it's similar conditions tomorrow, with three par-5s on the front nine, someone is going to turn low, it's possible." "But, I still have to hit a lot of good shots and make a lot of putts to do it." Scott is using the Masters as preparation for next week's showdown with world number one Rory McIlroy in the Australian Open in Sydney. Wright was a model of consistency, backing up his five-under 67 in the first round to capture the outright lead after he was one of four players to lead after the opening 18 holes. "This is a golf course where you've got to play the course, I'm not concerned what he's (Scott) doing," said Wright, who has won three tier-two Australasia PGA events. "Obviously, he's a fantastic player and I would expect him to play well over the weekend but I expect myself to play well too." Australian Paul Spargo went around in five under to be two shots behind Wright and local professional Richard Green also produced a 67 to move to six under. Spargo is tied with Melbourne amateur Todd Sinnott, who backed up his impressive opening round. Americans Kyle Stanley (69-73), Boo Weekley (72-72) and Zac Blair (70-75) all made the cut. Join the conversation about this story »  | ||
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