Noisy city: Cacophony in Caracas sparks complaints












CARACAS, Venezuela (AP) — This metropolis of 6 million people may be one of the world’s most intense, overwhelming cities, with tremendous levels of crime, traffic and social strife. The sounds of Caracas‘ streets live up to its reputation.


Stand on any downtown corner, and the cacophony can be overpowering: Deafening horns blast from oncoming buses, traffic police shrilly blow their whistles and sirens shriek atop ambulances stuck in bumper-to-bumper traffic.












Air horns routinely used by bus drivers are so powerful they make pedestrians on crosswalks recoil, and can even leave their ears ringing. Loud salsa music blares from the windows of buses, trucks with old mufflers rumble past belching exhaust, and “moto-taxis” weave through traffic beeping high-pitched horns.


Growing numbers of Venezuelans are saying they’re fed up with the noise that they say is getting worse, and the numbers of complaints to the authorities have risen in recent years.


One affluent district, Chacao, put up signs along a main avenue reading: “A honk won’t make the traffic light change.”


“The noise is terrible. Sometimes it seems like it’s never going to end,” said Jose Santander, a street vendor who stands in the middle of a highway selling fried pork rinds and potato chips to commuters in traffic.


Prosecutor General Luisa Ortega recently told a news conference that officials have started “putting an increased emphasis on promoting peaceful coexistence” by punishing misdemeanors such as violations of anti-noise regulations and other minor crimes. That effort has translated into hundreds of noise-related cases in recent years.


Some violators are ordered to perform community service. For instance, two young musicians who were recently caught playing loud music near a subway station were sentenced to 120 hours of community service giving music lessons to students in public schools.


Others caught playing loud music on the street have been charged with disturbing the peace after complaints from neighbors. Fines can run as high as 9,000 bolivars, or $ 2,093.


On the streets of their capital, however, Venezuelans have grown used to living loudly. The noisescape adds to a general sense of anarchy, with many drivers ignoring red lights and blocking intersections along potholed streets strewn with trash.


“This is something that everybody does. Nobody should be complaining,” said Gregorio Hernandez, a 23-year-old college student, as he listened to Latin rock songs booming from his car stereo on a Saturday night in downtown Caracas. “We’re just having fun. We’re not hurting anybody.”


Adding to the mess is the country’s notoriously divisive politics, which regularly fill the streets with marches and demonstrations.


On many days, the shouts of protesters streaming through downtown can be heard from blocks away, demanding pay hikes or unpaid benefits.


And the sporadic crackling of gunfire in the slums can be confused for firecrackers tossed by boisterous partygoers.


It’s difficult to rank the world’s noisiest cities because many, including Venezuela’s capital, don’t take measurements of sound pollution, said Victor Rastelli, a mechanical engineering professor and sound pollution expert at Simon Bolivar University in Caracas. But Rastelli said he suspects Caracas is right up there among the noisiest, along with Sao Paulo, Mexico City and Mumbai.


Excessive noise can be more than simply an annoyance, Rastelli said. “This is a public health problem.”


Dr. Carmen Mijares, an audiologist at a private Caracas hospital, said she treats at least a dozen patients every month for hearing damage caused by prolonged exposure to loud noises.


“Many of them work in bars or night clubs, and their maladies usually include temporary hearing loss and headaches,” Mijares said. For others, she said, the day-to-day noise of traffic, car horns and loud music can exacerbate stress and sleeping disorders.


Several cities have successfully reduced noise pollution, said Stephen Stansfeld, a London psychiatry professor and coordinator of the European Network on Noise and Health.


One of the most noteworthy initiatives, Stansfeld said, was in Copenhagen, Denmark, where officials used sound walls, noise-reducing asphalt and other infrastructure as well as public awareness campaigns to fight noise pollution.


But such high-tech solutions seem like a remote possibility in Caracas, where streets are literally falling apart and aging overpasses regularly lack portions of their guard rails. Prosecutors, angry neighbors and others hoping to fight the noise will have to persuade Venezuelans to do nothing less than change their loud behavior.


For Carlos Pinto, however, making noise is practically a political right.


The 26-year-old law student and his friends danced at a recent street party to house music booming from woofers in his car’s open trunk, with neon lights on the speakers that pulsed to the beat.


When asked about the noise, he answered: “We will be heard.”


___


AP freelance video journalist Ricardo Nunes contributed to this report.


___


Christopher Toothaker on Twitter: http://twitter.com/ctoothaker


Latin America News Headlines – Yahoo! News


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Microsoft CEO defends its innovation record, financial results












BELLEVUE, Washington (Reuters) – Microsoft Corp Chief Executive Steve Ballmer defended his company’s record on innovation and financial performance at the annual shareholders’ meeting, but conceded that he should have moved faster to get into the booming tablet market dominated by Apple Inc‘s iPad.


Bill Gates, co-founder and now chairman of the world’s largest software company, was one of the first to champion tablet-sized devices more than 10 years ago, but Microsoft failed to come up with a product that worked as well as the iPad. Gates was silent throughout the meeting, attended by about 450 shareholders.












“We’re innovating on the seam between software and hardware,” said Ballmer, asked why his company had fallen behind rival Apple. “Maybe we should have done that earlier.”


A month ago, Microsoft launched the Surface tablet – its first own-brand computer – but has not revealed sales figures.


In the tablet market, “we see nothing but a sea of upside,” Ballmer said, an acknowledgement that until now Microsoft has effectively had zero presence in the tablet market.


“I feel pretty good about our level of innovation,” he added.


Ballmer said smartphones running Microsoft’s new Windows software were selling four times as much as they did at this time last year. Microsoft has never given sales numbers of Windows phones, primarily made by Nokia, Samsung and HTC.


Windows currently has 2 to 4 percent of the global smartphone market, according to various independent data providers. Its overall market share will not likely grow in proportion to its own sales, given that sales of other smartphones – mostly running Google’s Android system – are also growing quickly.


Ballmer, flanked by Gates and Chief Financial Officer Peter Klein, was asked by several shareholders to explain Microsoft’s lackluster share price, which has been stuck for a decade, and has been outperformed by Apple and Google Inc stock in recent years.


“I understand your comment,” he told one shareholder. He went on to explain that Microsoft had “done a phenomenal job of driving product volumes” and was focusing on profiting from that growth.


He suggested that whether investors recognized that value at any given time was out of his hands.


“The stock market‘s kind of a funny thing,” he said, adding that Microsoft had handed back $ 10 billion in dividends and share buybacks to investors in the last fiscal year.


Several shareholders at the meeting in Bellevue, an upscale suburb of Seattle, complimented the executives on how they had grown and managed the company.


Microsoft’s shares rose almost 18 percent during fiscal 2012, which ended in June of this year, compared with a 3 percent rise in the Standard & Poor’s 500.


Despite such fluctuations, Microsoft’s shares stand around the same level they did 10 years ago.


To see a graphic on U.S. tech share price performance, 1990 to present, click on http://link.reuters.com/rug53t


(Reporting by Bill Rigby; Editing by Gary Hill)


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Some women overwhelmed by cancer treatment options












NEW YORK (Reuters Health) – More than one in five women with early-stage breast cancer in a new study said they were given too much responsibility for treatment-related decisions – and those patients were more likely to end up regretting the choices they made.


The findings don’t mean women should not be fully informed about their treatment options, researchers said, but rather that doctors may need to find new strategies to communicate with patients, especially those who are less educated.












“Some women may feel overwhelmed or burdened by treatment choices, particularly if they are not also given the tools to understand and weigh the benefits and harms of these choices,” researchers led by Jennifer Livaudais wrote in the Journal of General Internal Medicine.


Her team from the Mount Sinai School of Medicine in New York surveyed 368 women who had just had surgery for early-stage breast cancer at one of eight New York City hospitals, and again six months later.


The majority said they typically had trouble understanding medical information and less than one-third knew the possible benefits of surgery, radiation and chemotherapy, Livaudais and her colleagues found.


Lack of both “health literacy” and knowledge about treatment benefits was common among the 21 percent of women who said they had too much responsibility for decision-making – as well as among the seven percent who felt they didn’t have enough responsibility.


Women who were poor, non-white or didn’t finish high school were also more likely to feel that they had either too much or too little say in their treatment.


Close to two-thirds of women on both ends of the spectrum had some regret about their original treatment decisions six months down the line. That compared to one-third of women who originally said they had a “reasonable amount” of decision-making responsibility.


One in eight women will be diagnosed with breast cancer at some point in her life, according to the National Cancer Institute, with a higher risk among those with certain genetic mutations.


Dr. Steven Katz, who has studied cancer-related decision-making at the University of Michigan in Ann Arbor, said that compared to past years, doctors now have better ways to tailor treatment to individual patients. But that also means treatment options are based on more convoluted information.


“The treatments are linked in complicated ways, and the information that doctors draw on to make recommendations has increasingly become more and more complex,” Katz, who wasn’t involved in the new research, told Reuters Health.


He said that for patients trying to make the best treatment choices, the smartest thing they can do is have a team of doctors – an experienced surgeon, a medical oncologist, a radiation oncologist and a plastic surgeon – all working on their case and sharing ideas.


“Of course if they have strong preferences for retaining a breast and having radiation yes (or) no, those are really important decisions for a patient to think about,” Katz said.


“There are very strong reasons to engage women at the very highest level regarding those values and preferences.”


“The purpose (of the study) was not to say women shouldn’t be provided with these treatment options, but that the information really needs to be tailored better,” Livaudais, who is now at the University of California, San Francisco, told Reuters Health.


She recommended doctors ask each patient how much responsibility she feels comfortable taking going into treatment.


“Some patients prefer… for the information to be presented in simpler terms, or for the physician to recommend something to them,” Livaudais said.


SOURCE: http://bit.ly/11d6IlW Journal of General Internal Medicine, November 2012.


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Tunisia secures more loans as protests hit deprived town












TUNIS (Reuters) – Tunisia, struggling to ease economic difficulties that have provoked unrest since its democratic revolution, said on Wednesday it had secured more international lending to cover its 2013 spending.


Tunisia’s new, elected Islamist-led government has sought to revive the economy in the face of a decline in trade with the crisis-hit euro zone and disputes between secularists and hardline Salafi Islamists over the future direction of the North African Arab state.












At least 200 people were injured when Tunisians demanding jobs clashed with police on Tuesday and Wednesday in the city of Siliana in a region on the edge of the Sahara desert that has long complained of economic deprivation.


The state news agency TAP said Tunis had clinched a $ 500 million loan from the African Development Bank, after the World Bank approved a $ 500 million loan on Tuesday, and a government minister told Reuters finances were now in order for 2013.


“Next year our public expenditure is essentially covered, thanks also to lines of credit for a total of $ 1 billion from the World Bank and the African Development Bank,” Investment Minister Riad Bettaieb said on the sidelines of a meeting with a European Union business delegation.


“So we are not planning to ask for further international support from the International Monetary Fund (IMF),” he said.


But he said Tunisia could ask the IMF for a standby credit line worth $ 2.5 billion for 2014 and beyond. “We are considering asking the IMF for a precautionary line of credit to give a guarantee for our financing needs … around $ 2.5 billion.”


The loans, the World Bank’s second since the “Arab Spring” uprising that toppled autocrat Zain al-Abidine Ben Ali in January 2011, aim to support economic recovery by improving the business and financial sectors and reforming social services.


BLINDED BY BIRDSHOT


In Siliana on Wednesday, police fired tear gas and rubber bullets to disperse crowds who rallied for a second day.


A medic from Siliana Hospital who did not wish to named said more than 200 people had been injured in the clashes. A journalist from France 24 television told Reuters he and a colleague had been hospitalized for wounds from birdshot apparently fired by riot police.


State media said 17 people had been blinded by birdshot wounds to the eyes. Residents blocked the entrances to the city, setting tyres alight on roads.


Many protesters called for the resignation of local officials, saying the authorities had failed to release development funds for their region.


Iyed Dahmani, a politician from the Republican Party in the town, said the national guard – an interior ministry-run security force – had deployed tanks to help restore order.


Interior Minister Ali Larayed appeared on state television to call for calm. “I ask people in Siliana to calm down, to protest calmly and accept dialogue,” he said, accusing leftist politicians of inflaming the situation.


But state TV also showed Prime Minister Hamadi Jebali saying he would not remove the unpopular governor of the region: “I won’t accept sacking him; he will stay in place.”


Jebali has accused both Salafis and liberal elites of harming Tunisia’s economy and image through their conflict with each other. His Ennahda party has tried to present itself as a middle way between liberals and Salafis.


The protests are the fiercest since hardline Salafi Islamists attacked the U.S. embassy in Tunis in September over an anti-Islam film made in California. That violence left four people dead.


(Writing by Andrew Hammond)


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Rapper PSY wants Tom Cruise to go ‘Gangnam Style’












BANGKOK (AP) — The South Korean rapper behind YouTube’s most-viewed video ever has set what might be a “Mission: Impossible” for himself.


Asked which celebrity he would like to see go “Gangnam Style,” the singer PSY told The Associated Press: “Tom Cruise!”












Surrounded by screaming fans, he then chuckled at the idea of the American movie star doing his now famous horse-riding dance.


PSY’s comments Wednesday in Bangkok were his first public remarks since his viral smash video — with 838 million views — surpassed Justin Bieber‘s “Baby,” which until Saturday held the record with 803 million views.


“It’s amazing,” PSY told a news conference, saying he never set out to become an international star. “I made this video just for Korea, actually. And when I released this song — wow.”


The video has spawned hundreds of parodies and tribute videos and earned him a spotlight alongside a variety of superstars.


Earlier this month, Madonna invited PSY onstage and they danced to his song at one of her New York City concerts. MC Hammer introduced the Korean star at the American Music Awards as, “My Homeboy PSY!”


Even President Barack Obama is talking about him. Asked on Election Day if he could do the dance, Obama replied: “I think I can do that move,” but then concluded he might “do it privately for Michelle,” the first lady.


PSY was in Thailand to give a free concert Wednesday night organized as a tribute to the country’s revered King Bhumibol Adulyadej, who turns 85 next month. He paid respects to the king at a Bangkok shopping mall, signing his name in an autograph book placed beside a giant poster of the king. He then gave an outdoor press conference, as screaming fans nearby performed the pop star’s dance.


Determined not to be a one-hit wonder, PSY said he plans to release a worldwide album in March with dance moves that he thinks his international fans will like.


“I think I have plenty of dance moves left,” he said, in his trademark sunglasses and dark suit. “But I’m really concerned about the (next) music video.”


“How can I beat ‘Gangnam Style’?” he asked, smiling. “How can I beat 850 million views?”


___


Associated Press writer Thanyarat Doksone contributed to this report.


Asia News Headlines – Yahoo! News


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Welcome to the Twisted Age of the Twitter Death Threat












Never believe anyone who tells you that the Internet is all nice or all terrible. Just like real life, there are good people and bad ones here. The majority of people behave badly occasionally and decently most of the time. Yes, there are some truly horrible people lurking and behaving in ways consistent to their form, but the thing is, we’re complicated creatures, online and off. So I don’t buy into theories that the Internet is all nice anymore than I believe all commenters are trolls. Still, there is something worrisome going on online, and if you were the Chicken Little type (which none of us here are, obviously), you might be covering your head and hiding from the Twitterverse. It’s this matter of death threats online. 


RELATED: After His Vulgar Assault on Jenny Johnson, Chris Brown Quits Twitter












The most recent example of this, of course, is the recent Chris Brown/Jenny Johnson nastiness. Brown has his share of on- and offline haters, but he has plenty of adamant supporters, too. This became apparent when Johnson, a comedian who’d been on a Twitter crusade of sorts against Brown since his physical attack on Rihanna, after a stream of tweets intended to shame/provoke the singer, finally hit pay-dirt with a response (other than Brown blocking her at one point). Over the weekend, Chris Brown tweeted: “I look old as fuck! I’m only 23,” to which Johnson tweeted, “I know! Being a worthless piece of shit can really age a person.” (That tweet’s been retweeted by Johnson followers more than 7,000 times.)


RELATED: The Internet–Not All It’s Cracked Up to Be


You probably know what happened next, even if you don’t: After a pretty gross back-and-forth that doesn’t make either side look great, Brown deactivated his account. But his followers started to pile on, threatening Johnson with—what else?—death. There is no irony here about the followers of a guy who beat his girlfriend offering up a stream of brutish death threats; it is only sad. 


RELATED: Is Twitter for Girls?


Enter the age of the online death threat. It’s scary, yeah, because it’s a death threat. Humans rarely like being threatened with an end to their basic essence, no matter the delivery method for that announcement. And yet, on Twitter, this becomes such a weird, surreal concept: It’s deeply impersonal (these people don’t even know each other and probably never will; NONE of them know each other, likely), fueled by a false kind of rage spawned by the way the Internet works (one side gets self-righteously mad, another side self-righteously madder, and repeat). Fortunately, in most cases, the threat is also incredibly unlikely to be fulfilled. That doesn’t make it pleasant. One might be prone to try to laugh away the kind of death threats Johnson received, from people she doesn’t know (people who don’t know Chris Brown either), who might not recognize her on the street, who most likely live nowhere near where she does and probably also don’t plan to actually kill her. Yet a death threat is pretty much the ultimate “I hate you,” and it’s worth wondering, when “I hate you” doesn’t serve to deliver the message strongly enough and we start saying “I’m going to kill you”/”you deserve to die,” how far has humanity gone down some sick drain?


RELATED: Only Six Percent of Americans Use Twitter


As David Knowles writes for The Daily in a piece titled “Twitter Terror,” Johnson is hardly the first person to be threatened on Twitter. President Obama, Mitt Romney, Ellen Page, Tom Daley, and Taylor Swift can claim this dubious badge of fame, too. The list goes on. But before the little bird was the death-threat method of the year, death threats would arrive to famous people, politicians, and those in the public eye, particularly controversial figures, as a matter of course—on paper, perhaps by telephone, and in the movies, via the weird scrawlings or puzzle-piece letter constructions of madmen. Of course, there’s no handwriting to decipher on Twitter, there are only assumptions of power and education based on icons and followers, word choice and spelling, what the person says and has said, as well as their affiliations. But again, probably, the people threatening Jenny Johnson shouldn’t scare her (if you’re really going to try to kill someone and are dumb enough to publicize it on Twitter, that’s a clear benefit to your intended victim). If there’s anything to be afraid of, it’s this idea that death threats are this kind of new online norm. I think part of that fear, the fear that this is just a regular thing nowadays, is what subconsciously creates the need in us to assume a such a horrified shock-and-outraged position about such death threats. Knowles quotes digital media expert Jeanette Castillio as calling “the Twitterverse … a very uncivil place.” Is it any more uncivil than anywhere else, though? The Internet hardly created hate, or hate-speak, or bullying. Further, do we only increase the levels of that incivility by freaking out about what a bunch of random people are raging about behind the protection, and often anonymity, of Twitter?


RELATED: Friday’s Top Tweets


As Knowles writes, also, Twitter does have a rule against this sort of thing; people aren’t supposed to “publish or post direct, specific threats of violence against others.” Still, like everything online, there is too much information, and not enough time for comprehensive monitoring. Knowles adds, “A small percentage of violent tweets are investigated by police, but even then Twitter is reluctant to betray what it believes is a sacred duty to protect a user’s privacy.” 


That’s the other thing about online threats: They manage to be so incredibly cowardly, and an utterly ineffectual form of communication—until, suddenly, the media is paying attention to said threats and in some ways legitimizing them. I’m honestly not sure what the media’s role should be in acknowledging tweets of the sort that Brown and Johnson and Brown’s followers and Johnson exchanged. Sometimes it seems like that old “ignoring” tactic your mom taught you could work out to everyone’s benefit—and yet these things are bound to go viral; badly behaving celebrities are something TMZ taught us people want to know about. These things are also, when discussed calmly and rationally, fodder for good conversations about how we live now.


Like a rude comment, a Twitter death threat is a way of hiding in your comfy-safe basement in your comfy-safe boxers and saying really gross things to someone in the hopes that they will get upset. These people are bullying, or hope to bully. Which means we shouldn’t take the bait, a thing far more difficult to do than say. Turning the other cheek was hard in real life, too, and you never know, better safe than sorry. But more important than preventing “actual Twitter murders” (which I dare say and hope will not become the norm), it’s worth paying attention to this ratcheting up of the hate ante as a new kind of communication norm. A cynical person would say we no longer need to touch people, instead, we reach out to them online. We no longer need to talk on the phone, we simply tweet or email or text. We certainly don’t write letters, and we hardly write on paper. Instead we blog and Tumbl and Instagram and Facebook. And so, when we get angry, irrationally or otherwise, we take to those methods of communication to speak out, retaliate, vow revenge. The most worrisome thing about the Twitter death threat, I think, that if it’s just something people do now. I don’t want to be in the Age of the Twitter Death Threat. It makes me pretty nostalgic for the good old days of the handwritten love letter, actually. 


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AIDS fighting spirit flagging, will miss 2015 targets: charity












WASHINGTON (Reuters) – The world has lost momentum in the fight against the AIDS epidemic, with millions of new people infected last year, the ONE foundation said in a report given on Tuesday.


The conclusion contrasts with a UN report last week, which found that an end to AIDS was in sight due to better access to drugs.












But ONE says “the beginning of the end of the AIDS” remains out of reach, as the number of people newly infected each year still exceeds those who get treated for the first time.


Global leaders last year committed to the “beginning of the end of AIDS” by 2015.


Progress over the past decade has cut the death toll for the disease, mainly due to better access to drugs that can both treat and prevent the human immunodeficiency virus (HIV) which causes AIDS, the United Nations said in its annual report last week.


But while access to treatment has improved, in 2011 there were 2.5 million new cases of HIV. That is more than double the target of having only 1.1 million people newly infected each year, said ONE, a charity co-founded by Irish rock star Bono, that is dedicated to fighting poverty and preventable disease.


There were 34 million people living with AIDS at the end of last year.


At current rates, the world will not reach targets to reverse the spread of AIDS until 2022, seven years behind schedule, according to ONE.


“We recognize the world has done wonders in (fighting AIDS) in the last 10 years. But 2015 is around the corner,” said Michael Elliott, ONE’s chief executive.


“Here’s a moment to put your pedal to the metal and go for it.”


Much of the gap is due to funding cuts in major donor countries. The UN estimates there is about a $ 6 billion AIDS funding gap each year. Countries also have not coordinated a global strategy to tackle the AIDS epidemic, such as targeting treatment to groups at highest risk.


The ONE report examined funding for AIDS from the Group of Seven major developed countries, as well as the political leadership and strategy.


The United States has taken the lead in funding and tackling AIDS. President Barack Obama last year set a new target for AIDS treatments, and called on other nations to also boost their commitments.


The United Kingdom and France are not far behind, but Germany and Canada are lagging relative to their peers. And Japan and Italy are in the last two places, mainly due to Japan’s earthquake in 2011 and Italy’s economic woes.


Elliott said fiscal issues should not stop countries from donating to fight AIDS, since development aid is such a small portion of most countries’ budgets — an argument ONE has made consistently during the global recession.


“You have to be an unfeeling idiot, which we’re not, to fail to recognize that the last few years have been tough economic times for people in many places all over the world,” he said.


“(And) Italy may have fiscal problems. But it’s not going to solve its fiscal problems on the back of development assistance.”


But with major donors embroiled in austerity programs, low and middle-income countries have stepped up, and now provide more than half of the financing for AIDS, ONE said.


In the future, emerging economies like Brazil and China should take the lead on AIDS programs, ONE said.


“It’s very important that people recognize this is a global fight,” Elliott said. “It’s not a fight that should be carried on the backs of the very generous American and British taxpayer.


The report, which comes ahead of World AIDS Day on December 1, will be posted online at www.one.org/policy.


(Reporting by Anna Yukhananov; Editing by Leslie Gevirtz)


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King warns euro risk has grown















Sir Mervyn King: “Mark Carney was the outstanding candidate”



The risk posed by the eurozone has grown, the departing Bank of England governor Sir Mervyn King has warned.


The governor said problems in the eurozone, as well as the US and Asia, lay behind the Bank’s recent pessimism about UK growth prospects in 2013-14.


Speaking to MPs, he defended the Bank’s decision to pass interest earned on the UK gilts it owned back to the Treasury.


He also said the Bank would be in “very good hands” with his recently announced successor as governor, Mark Carney.


Mr Carney was named by Chancellor George Osborne on Monday as his surprise choice for the new Bank of England head.


Currently the governor of the Canadian central bank, Mr Carney will serve for five years and will hold new regulatory powers over banks.


The UK should take pride, Sir Mervyn said, in not only that it could search the world for the best candidate, but that the country was able to produce a “truly outstanding shortlist” from among its own citizens.


‘Slow and protracted’


In evidence to the Treasury Committee, the Bank governor said that Mr Carney – under whom the Bank will be taking on new responsibilities to oversee the health of the country’s banks – faced a difficult task.


“There is a great deal of adjustment to be made in the financial sector, a great deal of adjustment to be made in the economy as a whole,” he said.


“It may be unreasonable to expect anything other than a slow and protracted recovery absent a further fall in the real exchange rate.”


The Bank of England and most City economists say that UK banks must increase their reserves against potential future losses and work their way through problem loans, while the UK economy needs to boost its exports and investment.


The string of difficulties still faced by the UK explained why the Bank chose earlier this month to downgrade the chances of the country experiencing a significant rebound in growth over the coming two years.


“It would take a rather unusual combination of circumstances to see growth of 4% or above in 2013 or 2014,” Sir Mervyn said, adding that the recovery would be much more protracted than has typically been the case after previous recessions.


He confirmed that the Bank’s decision earlier this month to downgrade its forecasts was due to a change of heart amongst the Monetary Policy Committee, rather than any recent economic developments.


“I think there are times where you debate something and you finally decide: ‘Well look, our judgment really has to change now’,” he said.


Global economy doubts


The governor said that the biggest drag on the UK came from the weakness of the global economy.


Continue reading the main story

It is impossible to escape the conclusion that Mr Osborne wants to give a bit of shake to the Bank of England’s culture”



End Quote



Despite recent positive indications from China and from the US housing market highlighted in the Bank’s latest inflation report, the governor expressed doubts.


“I think the staff probably take a more upbeat view on the prospects of the Chinese economy than I would be inclined to,” he said.


He also divulged that private conversations with US colleagues led him to doubt the sustainability of the US recovery.


But he expressed his strongest concerns about the eurozone, claiming that – despite a lull in market anxiety over the euro’s future – the situation on the continent has become worse over the past year.


“The longer the problem goes on, the bigger the adjustment will need to be,” he said, pointing to the continued build-up in debt as southern European governments struggle to regain competitiveness and get their budgets under control.


The governor said that, while the UK economy continued its own adjustment process, the Bank’s ability to stimulate recovery would be limited, although he foresaw that further quantitative easing – purchases by the Bank of government debt – may be warranted.


However, he noted that one of his successor’s most difficult tasks may be to decide when to start raising interest rates or reversing quantitative easing.


“There’s a very difficult policy judgment to be made down the road, first as to when we start tightening monetary policy, and then how rapidly we tighten monetary policy,” he said.


Public accounts


The governor was also questioned by MPs about the Bank’s decision this month to hand back to the Treasury the surplus income that it earns on government debts it holds as a result of its quantitative easing policy.


He admitted that the timing of the announcement could have been handled better – particularly because the Bank’s private knowledge of the agreement had influenced its decision at a committee meeting a few days before the announcement to hold fire on further quantitative easing.


However, he said that the decision did not affect monetary policy or the Bank of England’s independence, although he was concerned it could create the appearance that the Bank was acting under the Treasury’s influence.


The move would not have any meaningful impact on taxpayers, Sir Mervyn said, and all it would achieve was a change in the way that the government reports its borrowing.


“This is about presentation of public accounts, and I do not want to dissuade you from looking into that and raising it with the Treasury, but it is a matter for the Treasury,” he said.


“They are entitled to publish their accounts in the way that they want. And you’re entitled to challenge them about whether those accounts are misleading or not.”


BBC News – Business


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Rugby-England add flyhalf Burns to squad for All Blacks’ test












LONDON, Nov 27 (Reuters) – England called up uncapped Gloucester flyhalf Freddie Burns on Tuesday to their squad for Saturday’s test against New Zealand in place of the injured Toby Flood.


Flood sustained ligament damage to a big toe during the 16-15 loss to South Africa at Twickenham last Saturday.












Owen Farrell, whose last start was in the first test in South Africa this year, is set to replace Flood in the starting XV against the world champions.


Lock Courtney Lawes, who missed England’s first three tests of the November series because of a knee injury, has also been included in the 23-man squad. Two other locks, Mouritz Botha and Tom Palmer, have been omitted.


After beating Fiji in their opening match, England have lost to Australia and the Springboks and now face a daunting match against the All Blacks who are unbeaten in 20 tests since the start of their victorious World Cup campaign last year.


“For those in Saturday’s squad the message is clear – last week we went toe to toe with the second best team in the world and felt we should have won,” England head coach Stuart Lancaster said in a statement.


“Now we have a chance to take on the number one side in front of a passionate Twickenham crowd, who have been fantastic throughout the Internationals, and it is a challenge we will meet head on.” (Reporting by John Mehaffey; Editing by Ken Ferris)


Australia / Antarctica News Headlines – Yahoo! News


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ChannelAdvisor says eBay sales up 57 percent early on Cyber Monday












(Reuters) – ChannelAdvisor said client sales on eBay Inc‘s online marketplace jumped 57 percent from a year before early on Cyber Monday.


The sales growth rate was five times higher than during the same period last year, said ChannelAdvisor, which helps merchants sell more on websites including Amazon.com Inc and eBay.com.












Client sales on Amazon.com were up 52 percent during the first part of Cyber Monday, ChannelAdvisor also reported.


(Reporting By Alistair Barr; Editing by Gerald E. McCormick)


Internet News Headlines – Yahoo! News


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