Thursday Newspaper round up.

The US Federal Reserve renewed its efforts to support the still weak American economy today, unveiling a fresh round of bond buying and, in a landmark move, tying critical interest rate decisions to the health of the jobs market. The move came as Ben Bernanke, America’s top monetary policymaker, lamented the “enormous waste human and economic potential” as the country struggles to get back on its feet following the Great Recession. He spoke after the Fed said it would only begin raising interest rates from near zero levels struck during the financial crisis when the jobless rate falls below 6.5 per cent. It also tied policy to concrete inflationary thresholds, setting a new, more transparent precedent for the way monetary policy decisions are made in the world’s largest economy. [The Independent]

The International Energy Agency (IEA) has raised its estimates for oil demand next year but says soaring shale production in America should ensure there are no shortages in supply. Improving economic conditions in China and the US is likely to result in about 865,000 barrels of extra crude demand during 2013, to reach total consumption to 90.5m barrels a day, according to the IEA’s latest oil report. That figure is more than 110,000 barrels more than estimated just four weeks ago even though the IEA believes demand will remain sluggish in the first half of the year. [The Guardian]

European finance ministers have agreed a deal to give the European Central Bank new powers to police eurozone banks, embarking on the first step in a new phase of closer integration to help underpin the euro. Following months of tortuous negotiations, finance ministers from the European Union’s 27 countries agreed to hand the ECB the authority to directly supervise the eurozone’s biggest banks and intervene in smaller banks at the first sign of trouble. [The Telegraph]

James Harding, Editor of The Times, resigned yesterday, saying it had become clear to him that News Corporation wanted to appoint a new editor. He announced to staff that he had telephoned Rupert Murdoch, chairman and chief executive of News Corporation, yesterday morning offering to resign, and that his offer was accepted. Mr Harding’s departure comes at a key moment for the future of the newspaper industry, with negotiations at a critical stage over the implementation of Lord Justice Leveson’s recommendations on press regulation. [The Times]

Facebook is expanding its efforts to introduce real-money gaming to millions of British users after announcing a deal with the online gambling company 888 Holdings. The American social network said that it had reached an agreement to introduce a range of bingo, casino and slot games on its website. British users of Facebook aged over 18 can bet up to £500 using their credit or debit card to win jackpots of tens of thousands of pounds. [The Times]

Two of Deutsche Bank’s top executives have been drawn into a tax fraud inquiry by German prosecutors, casting further dark clouds over the country’s largest bank. Police and investigators raided the bank’s headquarters as part of a probe into tax evasion, money laundering and obstruction of justice involving carbon trading. Jürgen Fitschen, the bank’s co-chief executive, and Stefan Krause, chief financial officer, are involved because they signed the bank’s value-added tax statement in 2009, Deutsche said. [Financial Times]

Bank of England chief economist Spencer Dale yesterday warned that the UK faces a “long and painful” recovery as wages grow more slowly than prices, and admitted there is little the monetary policy committee (MPC) can do to help. A combination of rising raw material costs, a weak pound and higher university tuition fees and VAT has kept inflation above 2 per cent since December 2009 and it is expected to remain so until the second half of 2014.[The Scotsman]

Join the Forum discussion on this post

You may also like...