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.
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
The documentary Russell Brand: Addiction to Recovery resulted in an immediate boost in donations and inspired the managing director of Bury St Edmunds based Chevington Finance and Leasing to offer the charity £106,000 over three years.
Russell Brand attended Focus12, the Bury St Edmunds abstinence-based alcohol and drug rehabilitation centre, in 2003 and is now a patron of the charity, describing it as ‘a really excellent example of a small cost effective rehab that can help people change in dramatic ways’.
Chip Somers, Focus12’s chief executive, said: “Russell’s documentary and his work this year to raise the profile of abstinence based recovery has got people talking about addiction in a different way, and made them realise that there is a viable alternative to simply giving up on addicts, or parking them on methadone.
“We are blown away by the generosity of Chevington — this financial support will make a huge difference to us as a charity and will certainly mean we can continue to stay open and help those who need us for longer. Raising funds for a recovery charity has never been harder than it is at present, every day is literally a struggle to keep afloat and we are very grateful.”
Clive Morris, Managing Director of Chevington Finance and Leasing said: “My wife and I were incredibly touched by last night’s documentary, which inspired us to endorse the local treatment centre Focus12, and we have today agreed funding assistance for the charity of £106,000 over the next 4 years.
“We believe that as a successful, responsible and reliable company we have a duty to help local charities survive this recession and the work that Chip Somers and his team do is fantastic and we fully endorse their abstinence based programme and have seen what a difference it makes to people’s lives.”
With an invite-only door policy and super secret location, Boiler Room is London's most exclusive music venue. But elitism isn't the premise for its clandestine nature—in fact, anyone with an Internet connection can easily join in the fun. Using a simple webcam, the crew behind Boiler Room livestreams each set for the world to see free of charge, and each month more than a million viewers tune in to see performances by artists like James Blake, The xx, Roots Manuva, Neon Indian, Juan Maclean and more.
We recently chilled out to the smooth sounds of Brooklyn's How To Dress Well before rocking out to revered musician Matthew Dear, who brought down the house with an intense 40-minute DJ set. Keep an eye out for our interview with Dear, but for now you can get a little more insight into the underground music scene's most talked about livestream show by checking out our interview with assistant musical programmer and Boiler Room host Nic Tasker.
That is quite an important aspect of it, purely because it means when you do shows you don't get a lot of groupies, pretty much everyone in the room is either a friend of ours or one of the artist's. It helps to create a more relaxed atmosphere for the artist and I think they feel less pressure. They're also just able to chill out and be themselves more rather than having people being like, "Hi can I get your autograph?" If the artists are relaxed usually you get the best music.
It's definitely a social place. All the people that come down, most of them we know and they're all our friends. So they come down, hang, have a drink and just chill out, basically. From our very set-up, we do it with a webcam, we're not a highly professional organization but I think that's kind of the charm of it. The main thing is people come down with the right attitude.
I guess that depends on the artist. We never say anything. Literally, whatever they want to do—we're kind of the platform for them to do whatever they want, so if Matthew Dear wants to come and play an hour of noise with no beats, he can do that. That's fine with us, and I think that's why artists like coming to play for us. We're not like a club where you have to make people dance, we don't give a shit if people dance. It's nice if they do and it makes it more fun, but some nights you just get people appreciating the music, which is equally fun.
No, not particularly, it's just whatever we're feeling. Thristian [Boiler Room's co-founder] has the main say on musical direction, but it's a massive team effort. In London there's five of us, New York there's two, LA there's one and Berlin there's two.
It definitely depends on the act and what kind of music they do. With live bands we found what works nicely is having them opposite each other because it's like they're in rehearsal, like they're just jamming. Which is again trying to give them that chilled out feel that they're just at home jamming and there happens to be a camera there. For some of our shows we've had over 100,000 viewers. When you think of those numbers it's quite scary, but when you're in the room and it's all friends it creates that vibe that people don't mind. You can imagine if you had all those people in front of you it would be a very different situation.
It's never crossed my mind like that, but I can see why you think that. I like to think of us as the new music broadcaster, kind of the new MTV, but obviously we operate in the underground scene mainly. But I like to think that what we do is as revolutionary as what they were doing. We're always growing into something new.
We have had visual people in doing 3D mapping, and that's something we're looking forward to progressing—doing more with the visuals. We've got the upstairs as well, we're starting to do breakfast shows with some high profile DJs, we're going to be doing that regularly. Each will have an individual format. The next step is progressing the US shows, we're alternating weekly between New York and LA, so the next step is to take Boiler Room to America
Breaking Free of the Co-dependency Trap presents a groundbreaking developmental road map to guide readers away from their co-dependent behaviors and toward a life of wholeness and fulfillment.UK Citizens
This is the book that offers a different perspective on codependency and is strongly recommended by Dream Warrior Recovery as part of a solution based recovery. This bestselling book, now in a revised edition, radically challenges the prevailing medical definition of co-dependency as a permanent, progressive, and incurable addiction. Rather, the authors identify it as the result of developmental traumas that interfered with the infant-parent bonding relationship during the first year of life.US Citizens
Drawing on decades of clinical experience, Barry and Janae Weinhold correlate the developmental causes of co-dependency with relationship problems later in life, such as establishing and maintaining boundaries, clinging and dependent behaviors, people pleasing, and difficulty achieving success in the world. Then they focus on healing co-dependency, providing compelling case histories and practical activities to help readers heal early trauma and transform themselves and their primary relationships.
Maybe. But it's really hard to see how even our parents and grandparents didn't get nightmares from ...
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.
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.
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."
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.
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."
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.
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.
The Scottish psychologist R.D. Laing once said: True guilt is guilt at the obligation one owes to oneself to be oneself. False guilt is guilt felt at not being what other people feel one ought to be or assume that one is. Moderate feelings of guilt are beneficial because they encourage the individual to do the right thing. If nobody felt guilty about anything it would likely lead to a fearful world and it could even threaten the survival of the human species. There is also a more negative form of guilt which is excessive and harmful. This refers to a situation where the individual carries a sense of guilt around with them most of the time. The reasons for why the individual may become a victim of excessive guilt include: They have a poor self image. It can be a sign of mental health difficulties. Some people fall into negative thinking and this tends to include guilt. The individual has been a victim of physical or sexual abuse. Unhealthy relationships can leave people with feelings of guilt. Excessive stress. Alcohol or drug abuse.
Nadine Stewart was convinced she was going to die. Just ten minutes after setting off for a pop concert with her sister, she felt a tingling sensation in her arms and pain in her chest.
‘I knew I was having a heart attack,’ says Nadine, 41, a customer services adviser from Morecambe, Lancashire. ‘I begged my sister to take me to A&E: I ran in and screamed that I was having a heart attack.
‘They put me on a monitor and my heart was fine — what I had suffered was a panic attack. I have no idea to this day what caused it, but it terrified the life out of me.’
Nadine Stewart has to do everything nine times or fears her husband will die
But worse was to come. ‘Afterwards, I developed a fear that if I didn’t do something nine times, something terrible would happen to me, my husband Paul or a member of my family.’ says Nadine.
‘If I made a drink I had to stir it nine times. If I locked the door I had to check it nine times and if I used a cloth to wipe a surface I’d have to wipe it nine times. I don’t know why it was nine. I realised I was being utterly irrational. But every time I tried to curb it — such as only stirring my drink three times — I’d begin to panic.'
Nadine had Obsessive Compulsive Disorder (OCD), recognised by the World Health Organisation as one of the top ten most disabling disorders in terms of its effect on quality of life.
Last month both the British actress Emily Blunt and the MP Charles Walker revealed they suffered from it, with Walker admitting he had to do everything in multiples of four — and felt the need to wash his hands hundreds of times a day.
They are not alone. Around a million people in the UK are thought to be undergoing treatment for OCD, the majority of them women. Women are twice as likely as men to develop anxiety disorders such as OCD — and high-achieving perfectionists are particularly at risk.
‘There are two parts to OCD, the obsession and the compulsion,’ explains Joel Rose, of charity OCD Action. ‘The obsession is a thought that pops into your head, about harm coming to someone you love or you causing harm to someone.'
‘Everyone has these thoughts but most of us ignore them and get on with our lives. Someone with OCD will develop a compulsive ritual as a reaction to them. It can be continually washing their hands or something invisible like repeating the same phrase over and over in their heads.'
‘The time spent on these compulsions lengthens with time. A severe OCD sufferer might spend six or seven hours a day washing their hands in the hope nothing terrible happens to their children.’
The cause of the condition is not known, though a stressful event in someone’s life may trigger an underlying problem.
Nadine has never pinpointed the root of her troubles — though they began in the year she started a new job, moved house and got engaged. ‘I had no reason to feel anxious,’ she said, ‘though I suppose there was a lot of change.
‘I became scared of choking to death so I stopped eating and lost three stone in less than three months. I couldn’t leave the house without Paul, and even then it would take me three hours to pluck up the courage.’
Someone who can empathise with Nadine is Jeni Scott, 31, who’s had OCD for three years.
It began when her father had a heart attack and her mother was diagnosed with cancer, soon after Jeni left university.
‘I became obsessed with doing things in order,’ says Jeni, a tutor from Newport, Wales. ‘I started making lists but it had everything on it such as “get up, have shower, make a cup of tea” and if I didn’t stick to it I would punish myself by denying myself a treat.
Actress Emily Blunt, star of Five Year Engagement, has revealed she suffers from OCD
‘I developed a phobia of being in the rain in the wrong clothes and had to take a backpack with spare bra, pants, coat, shoes and umbrella everywhere with me. I’d carry antibacterial gel in my bag and use it every ten minutes. I’ve still no idea why I did it, I just found it helped me.’
Aisha Faisal, from Reading, Berkshire, also suffers from OCD — and it’s getting worse. ‘I developed it in my teens when my mother fell ill and I had to clean the house,’ the 26-year-old says. ‘Now I’m obsessed with everything being super-clean. I wash my hands 14 or 15 times a day, I shower for an hour at a time and wash the shower head and bath thoroughly before I step in.
‘If someone touches me, I cringe. My neighbour touched my scarf to tell me it was pretty and I had to have a shower and put all my clothes in the wash.’ Aisha, who has three children under four, admits her obsession extended to giving birth.
‘Each time I had Caesarean sections — the thought of having a natural birth makes me feel physically sick.’ She made the surgeons assure her everything had been scrubbed thoroughly before each operation. Understandably, her OCD worries the rest of her family. ‘My husband Ali finds it very hard to see me like this. I won’t let him touch me when he comes in from work: he has to shower and put on clean clothes before he can hug me.'
‘With three young children, being clean is impossible and I bathe them twice a day in the winter and sometimes four times a day in the summer if they’re hot and sticky.’
As a result of her obsession her own hands are red raw and she suffers from eczema. ‘I have been to the GP but it’s very difficult to treat. I know I must do something soon, because my eldest daughter, who is four, is picking up on my behaviour and I feel very guilty about that.'
‘The other day she came in from the garden and said she was dirty so needed to get out of her clothes and I washed her and cleaned her thoroughly. My husband can’t believe our electricity bill because the washing machine is on constantly.’
While Aisha is still in the grip of OCD, Jeni and Nadine have overcome the condition. According to the NHS, the two recognised forms of treatment are Cognitive Behaviour Therapy (CBT), which helped Jeni, and anti-depressants.
But Nadine used another therapy called The Linden Method — a two-day workshop costs £995 — when she reached her lowest point early last year.
‘I was unable to work, leave the house or answer the phone,’ she says. ‘My vision became blurry, my hands would spasm and I’d get pains like rheumatism. I began to think: “What’s the point in living?” yet I was too scared to kill myself.’
The Linden Method — which has also helped OCD sufferers Jemma and Jodie Kidd — works by convincing the sufferer’s sub-conscious that they are safe.
‘I’m a different person,’ says Nadine. ‘I can leave the house, I’m applying for jobs, taking up hobbies and it’s transformed my relationship with Paul.
‘He says it’s like having a wife in a wheelchair who can walk again. Except I feel I can not only walk, I can fly.’
Hearing: Former chief executive Bob Diamond left Barclays over the matter, before appearing before MPs this week
A criminal investigation has been launched into alleged rigging of the Libor rate within the banking industry, the Serious Fraud Office (SFO) confirmed today.
SFO director David Green QC formally accepted the Libor issue for investigation after Barclays was fined by the Financial Services Authority (FSA) last week for manipulating the key interbank lending rate which affects mortgages and loans.
The claims ultimately led to the resignation of Barclays boss Bob Diamond and have become the focal point of a fierce political debate over ethics in the banking sector.
The investigation could ultimately lead to criminal prosecutions and bankers facing charges in court.
The SFO's update came after it revealed earlier this week that it had been working closely with the FSA during its investigation and would consider the potential for criminal prosecutions.
The Government department, which is responsible for investigating and prosecuting serious and complex fraud, said on Monday the issues surrounding Libor were "complex" and that assessing the evidence would take time.
Under fire: Barclays former chairman Marcus Agius (right) with former CEO Bob Diamond (centre), and former chief executive John Varley (left)
As the SFO prepares its investigation, Labour leader Ed Miliband continued to push for an independent inquiry into the banking scandal despite MPs rejecting the demands.
The Labour leader said that while the party would cooperate with a parliamentary investigation, its remit was too "narrow" and a judge-led probe was still needed.
Mr Miliband also defended the conduct of Ed Balls after the shadow chancellor engaged in a bitter war of words with his opposite number George Osborne in the Commons.
The widely used diabetes drug metformin comes with a rather unexpected and alluring side effect: it encourages the growth of new neurons in the brain. The study reported in the July 6th issue of Cell Stem Cell, a Cell Press publication, also finds that those neural effects of the drug also make mice smarter. See Also: Health & Medicine Brain Tumor Stem Cells Nervous System Mind & Brain Brain Injury Intelligence Neuroscience Strange Science Reference Neural development Stem cell treatments Diabetes mellitus type 2 Embryonic stem cell The discovery is an important step toward therapies that aim to repair the brain not by introducing new stem cells but rather by spurring those that are already present into action, says the study's lead author Freda Miller of the University of Toronto-affiliated Hospital for Sick Children. The fact that it's a drug that is so widely used and so safe makes the news all that much better. Earlier work by Miller's team highlighted a pathway known as aPKC-CBP for its essential role in telling neural stem cells where and when to differentiate into mature neurons. As it happened, others had found before them that the same pathway is important for the metabolic effects of the drug metformin, but in liver cells. "We put two and two together," Miller says. If metformin activates the CBP pathway in the liver, they thought, maybe it could also do that in neural stem cells of the brain to encourage brain repair. The new evidence lends support to that promising idea in both mouse brains and human cells. Mice taking metformin not only showed an increase in the birth of new neurons, but they were also better able to learn the location of a hidden platform in a standard maze test of spatial learning. While it remains to be seen whether the very popular diabetes drug might already be serving as a brain booster for those who are now taking it, there are already some early hints that it may have cognitive benefits for people with Alzheimer's disease. It had been thought those improvements were the result of better diabetes control, Miller says, but it now appears that metformin may improve Alzheimer's symptoms by enhancing brain repair. Miller says they now hope to test whether metformin might help repair the brains of those who have suffered brain injury due to trauma or radiation therapies for cancer.
Spain's tourism industry is bracing itself for a painful slowdown in bookings this summer, driven by a steep decline in local tourism, according to the country's leading hotel association. Reservations by Spanish vacationers for the month of July are 30% lower than last year, amid persistently high unemployment and a protracted economic recession, said Juan Molas, president of the Spanish Confederation of Hotels and Tourist Accommodations. An influx of visitors from Russia and other countries in Eastern Europe has compensated somewhat for the decline in local tourism, but weak local demand is expected to weigh on an industry that accounts for about 11% of Spain's annual economic output. Hotel owners are concerned that the government may raise the industry's value-added tax to 18% from the current 8%, in a bid to reduce its yawning budget deficit, making Spain less attractive to foreign tourists compared with other less expensive destinations "If the VAT rises to 18%, it will be absolutely catastrophic for the sector," Mr. Molas said at an event Thursday in Madrid. Spain's government is working to secure €100 billion ($126 billion) in aid for its struggling banking sector from the European Union and plans to meet with EU officials next week to discuss new measures to improve its public finances. Prime Minister Mariano Rajoy has already implemented €45 billion in austerity measures, but weak tax revenue threatens to undermine his administration's goal of trimming its shortfall this year to 5.3% of gross domestic product from 8.9% last year. Sentiment in the hospitality industry is at its lowest level since 2009, according to an index developed by the hotel association and consulting firm PwC. Based on a survey of hotel firms, 57% of operators expect international tourism will hold steady this year, while 76% expect domestic tourism to decline. "The parts of the country that will suffer the most are those that cater to national tourists," Mr. Molas said.
Holidaymakers in Spain this summer are facing a surprise new airport tax imposed by the Spanish government as it tries to balance its books. Some airlines are passing the new departure tax on to passengers, even if they booked their flights months ago. Some passengers have received emails telling them either to pay an extra charge of up to seven euros (£6) per person - or to cancel their flights. Other airlines are deciding whether to absorb the cost themselves. The budget airline Ryanair said Spain's 2012 budget, passed into law at the end of June, obliged airlines to pay increased taxes. Spain is implementing drastic measures to try to slash its budget deficit to 5.3% from 8.5% in 2011. It has been promised bailout funds of up to 100bn euros for its banks, but wants to avoid a full state bailout. Retrospective The European travel agents' association ECTAA said the amount of the extra levy varied depending on which airport people used. It said the average rise in the tax was 18.9%, but at some of the larger airports it would almost double. For instance, at Madrid-Barajas the tax would rise from 6.95 euros to 14.44, while at Barcelona's El Prat airport it would rise from 6.12 euros to 13.44. Ryanair said it would pass the cost on to passengers, even those who had already paid in full for their flights, because the tax applied "retrospectively to customers who booked flights before 2 July 2012 and are travelling from 1 July onwards". It said for bookings made on or after 2 July, the increased tax would have been included in the price. The Spanish low-cost airline Vueling is also passing on the cost. It sent emails to passengers giving them seven days to cancel their flight, or the extra payment would be debited automatically from the card they used to book. British Airways and Iberia told the BBC they had not yet decided whether to pass on the cost or absorb it. ECTAA said in a statement it was "dismayed" by the rise, which was imposed "without proper consultation of airport users nor appropriate implementation time". It said travel agents faced a "technical and financial nightmare to recover the extra charge".
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.
On Tuesday night WikiLeaks founder Julian Assange applied for political asylum at the Ecuadorian Embassy in London after failing in his bid to avoid extradition to Sweden to face sex crime allegations. The 40-year-old Australian is currently inside the building in Knightsbridge, having gone there on Tuesday afternoon to request asylum under the United Nations Human Rights Declaration. The country's foreign minister Ricardo Patino told a press conference in the South American country that it was considering his request. In a short statement last night, Mr Assange said: "I can confirm that today I arrived at the Ecuadorian Embassy and sought diplomatic sanctuary and political asylum. This application has been passed to the Ministry of Foreign Affairs in the capital Quito. I am grateful to the Ecuadorian ambassador and the government of Ecuador for considering my application." The computer expert, who was on £200,000 bail after failing in several attempts to halt extradition, attracted several high-profile supporters including Ken Loach and socialite and charity fundraiser Jemima Khan, who each offered £20,000 as surety. Other supporters included Bianca Jagger and veteran left-winger Tony Benn. The Swedish authorities want him to answer accusations of raping a woman and sexually molesting and coercing another in Stockholm in August 2010 while on a visit to give a lecture. Assange, whose WikiLeaks website has published a mass of leaked diplomatic cables that embarrassed several governments and international businesses, says the sex was consensual and the allegations against him are politically motivated. The Supreme Court last month ruled in favour of a High Court ruling that his extradition was legal. Last week the Supreme Court refused an attempt by him to reopen his appeal against extradition, saying it was "without merit". He had until June 28 to ask European judges in Strasbourg to consider his case and postpone extradition on the basis that he has not had a fair hearing from the UK courts. A statement issued on behalf of the Ecuadorian Embassy said Mr Assange would remain at the embassy while his request was considered.
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 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.
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.
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.
