Liechtenstein deal 'to net £1bn'

A breakthrough deal to recover lost tax from Britons holding bank accounts in Liechtenstein will net £1bn, Chancellor Alistair Darling has said. HM Revenue & Customs struck an agreement last month with the Alpine tax haven to exchange information. Up to 5,000 British investors are thought to have funds in secret accounts in the country - which would mean an average pay-back of £200,000.

The Revenue has requested details of 100,000 offshore accounts worldwide. Tackling offshore evasion tax evasion and tax havens was "not only fair" but "particularly important... especially at a time when we expect public spending in the period ahead to be tighter", Mr Darling told the CBI Scotland annual dinner.
www.bbc.co.uk

Posted by Skyline College

G20 pledges tougher bank action

Finance ministers from the world's most powerful economies have agreed a series of measures to try to regulate the global banking system. They want a system that rewards long-term performance rather than short-term risk-taking. However the G20 meeting in London did not agree on specific limits on the amounts individual bankers get paid. Britain, the US and Canada opposed the idea, but the Financial Stability Board is to examine the issue.

It will report back to the summit of G20 leaders in Pittsburgh, Pennsylvania later this month. The G20 countries agreed on measures requiring banks to disclose the pay and bonuses of their highest-paid employees and to allow bonuses to be "clawed back" if decisions which seemed successful later go wrong.
Source: www.bbc.co.uk

Posted by: Skyline College a premium MBA, BBA, Mass Communication and Travel & Tourism institute in Delhi and Gurgaon.

Further decline in Indian exports

India's exports declined at an annual rate of 28% in July, the 10th month in a row of falls, after the weak global economy continued to hit demand. The country exported $13.6bn (£8.2bn) of goods and services during the month, the official figures showed. At the same time, India's imports were down 37% to $19.6bn in July. Last week, the Indian government announced a series of measures to help exporters, including tax breaks and better access to finance. The latest export figures come a day after the Central Statistical Organisation said the country's economy expanded at an annual rate of 6.1% between April and June, up from 5.8% from January to March, lifted by government stimulus spending.
Source: www.bbc.co.uk

Posted by: Skyline College a premium MBA, BBA, Mass Communication and Travel & Tourism institute in Delhi and Gurgaon.

Airline losses 'hit $1bn a month'

Airlines are likely to have lost more than $6bn (£3.7bn) in the first half of 2009, according to the International Air Transport Association (Iata). This figure - an average of $1bn a month - is double the amount Iata said in December that airlines would lose during the whole of 2009. Airlines made losses between April and June, when they would usually make 50% of their annual profits, Iata said.

Meanwhile, budget airline SkyEurope has filed for bankruptcy. The loss-making Slovakian airline, which was set up in 2001, has suspended all flights with immediate effect. And American Airlines has said it is cutting 921 flight attendant jobs as it deals with a downturn in passengers, and lower revenue.
Source: www.bbc.co.uk

Posted by: Skyline College a premium MBA, BBA, Mass Communication and Travel & Tourism institute in Delhi and Gurgaon.

Central banks back new regulation

Central bankers have backed new measures to strengthen supervision of the global banking industry. A meeting of the Bank for International Settlements (BIS), which consists of the world's central banks, pledged to increase bank's capital requirements. The plans should substantially reduce the probability and severity of economic and financial stress, the BIS said. But the BIS did not set out a timeline for implementation of the proposals.

The measures will be outlined in detail by year-end and be introduced in a way that does not impede the recovery of the real economy. The BIS meeting comes just after the finance ministers from the Group of 20 richest nations meeting in London backed a system that rewards long-term performance rather than short-term risk-taking.
Source: www.bbc.co.uk

Posted by Skyline College

Downturn in US economy 'ending'

US Federal Reserve policymakers are increasingly confident the downturn in the US economy is ending, minutes from their latest meeting show. The assessment by recently re-appointed Fed Chairman Ben Bernanke and his colleagues struck a more upbeat tone than the last assessment in late June. But there was uncertainty about how quickly the economy would grow in 2010.

Unemployment, which is set to move above 10% this year, may impact on consumer behaviour, they warned. However the Fed said that consumer spending appeared to be levelling out and that the housing market was becoming more solid, while manufacturing was stabilising. The prospects for US exporters will also brighten, as the economies of other countries improved, the policymakers added.
Source: www.bbc.co.uk

(Post by Skyline College www.skylinecollege.com)

Boost for eurozone recovery hopes

Eurozone economic activity rose in August for the first time in 15 months, according to an influential survey. The latest Purchasing Managers' Index (PMI) figure rose to 50.4, raising hopes that the eurozone could soon emerge from recession. Any score above 50 shows an increase in economic activity. This is the first time the index has been above this benchmark score since May 2008. But separate figures show that retail sales in the eurozone fell in July.

Also on Thursday, the European Central Bank kept its main interest rate on hold at 1%. The disappointing retail sales figures also cast doubt on a quick recovery. Sales in the 16 countries that use the euro fell by 0.2% in July compared with the previous month, defying expectations of a rise in consumer spending. Weak sales of food, drink and tobacco, down 0.5%, caused the overall drop, the official Eurostat figures showed. There was no change in sales of other goods.
3rd September 2009, www.bbc.co.uk

Global Economy Update

(A weekly update on Global Business )

Skyline Business School