US firm averts French explosion

A threat to blow up another French factory has not been defused

A US construction equipment firm has agreed to pay extra compensation to French workers who had threatened to explode gas canisters at their plant.

Staff at JLG Industries in Tonneins, south-western France, made the threat in order to get better redundancy terms for 53 workers.

It is the third such incident in which workers have threatened violence against employers.

Elsewhere, French workers have taken managers hostage in “boss-nappings”.

The French Employment Minister, Laurent Wauquiez, described the tactics as “blackmail”.

In the JLG deal, the 53 affected workers were each guaranteed 30,000 euros (£26,000; $42,000) in severance pay.

JLG Industries is a subsidiary of the US company Oshkosh, which makes cranes and work platforms.

Meanwhile, a tense stand-off continues at the bankrupt New Fabris car plant in Chatellerault, south-west of Paris, where workers have also made a threat to blow up the factory.

They have given a 31 July deadline for Renault and Peugeot, which provided 90% of the plant’s work, to pay them 30,000 euros each.

Renault and PSA Peugeot said it was not their responsibility to pay workers.

The BBC’s Emma Jane Kirby in Paris says there is an acute sense of injustice in France at the moment, with many workers complaining that while their bosses continue to reap company benefits and bonuses, they are paying for this economic crisis with their jobs.

Apple boss ‘had liver transplant’

Steve Jobs had taken medical leave until the end of June

Apple boss Steve Jobs received a liver transplant about two months ago and is expected to return to work later this month, a US newspaper has reported.

The Wall Street Journal said the Apple chief executive would be returning to his job on schedule, but may initially work part-time.

Neither Mr Jobs nor a company spokeswoman confirmed the report, the newspaper said.

Mr Jobs ceased his normal management role more than five months ago.

In January, he announced that he was being treated for a “hormone imbalance”, and had been losing weight throughout 2008.

Mr Jobs co-founded Apple in 1976. He left in 1985, before returning in 1997 and becoming full-time chief executive in 2000.

He is seen to have played a crucial role in Apple’s growth.

The company’s share price has recently risen and fallen in step with rumours or news about his health.

He has already survived a pancreatic cancer that was diagnosed in 2004.

Biden appeals to G20 protesters

Joe Biden (right) asked protesters to give G20 leaders a fair hearing

US Vice-President Joe Biden has called for G20 protesters to give governments a chance to tackle the economic crisis.

At a G20 warm-up meeting in Chile, Mr Biden said heads of state would agree proposals to remedy the crisis at next week’s meeting in London.

As they spoke, tens of thousands of protesters marched in the UK capital and in Germany, France and Italy.

US billionaire George Soros told the news the G20 meeting was “make or break” for the world economy.

“Unless they do something for developing world there will be serious collapse in that part of the world,” Mr Soros said.

Massive security operation

At a news conference in Vina del Mar, Mr Biden said he hoped the protesters would give the politicians a chance.

“Hopefully we can make it clear to them that we’re going to walk away from this G20 meeting with some concrete proposals,” he said.

British Prime Minister Gordon Brown said he understood why people were demonstrating in the UK.

“We will respond to [the protest] at the G20 with measures that will help create jobs, stimulate business and get the economy moving,” he said.

But Brazil’s President Luiz Inacio Lula da Silva told the Chile meeting that everyone was suffering from the recklessness of those who had turned the world economy into “a gigantic casino”.

“We are rejecting blind faith in the markets,” he said.

In London on Saturday, demonstrators demanding action on poverty, jobs and climate change called on G20 leaders to pursue a new kind of global justice.

Police estimated 35,000 marchers took part in the event.

A series of rallies are planned for Wednesday and Thursday by a variety of coalitions and groups campaigning on a range of issues from poverty, inequality and jobs, to war, climate change and capitalism.

There have been reports that banks and other financial institutions could be targeted in violent protests.

British officials have put a huge security operation in place.

‘We won’t pay’

Before the London summit, Mr Brown has been visiting a number of countries trying to rally support for his economic plans.

In Chile on Friday he said people should not be “cynical” about what could be achieved at the summit, saying he was optimistic about the likely outcome.

But in an interview, German Chancellor Angela Merkel dampened expectations of a significant breakthrough.

She said one meeting would not be enough to solve the economic crisis and finish building a new structure for global markets.

In Berlin, thousands of protesters took to the streets on Saturday with a message to the G20 leaders: “We won’t pay for your crisis.”

Another march took place in the city of Frankfurt. The demonstrations attracted as many as 20,000 people.

In the Italian capital, Rome, several thousand protesters took to the streets.

In Paris, around 400 demonstrators dumped sand outside the stock exchange to mock supposed island tax havens.

G20 protesters marching in London

Children are also joining the heavily-policed march

Thousands of people are marching through London demanding action on poverty, climate change and jobs ahead of next week’s G20 summit.

The Put People First alliance of 150 charities and unions are marching from Embankment to Hyde Park for a rally.

Speakers will call on G20 leaders to pursue a new kind of global justice.

Police say protests over the coming week are creating an “unprecedented challenge”. Campaigners have rejected claims the march could turn violent.

Marchers gathered near Embankment spoke of “a carnival atmosphere”.

“The sun is shining – there are lots of banners and flags and everyone is in good spirits,” said Chris Jordan, an Action Aid campaigner.

A huge security operation is being launched before and during the G20, at which world leaders will discuss the global financial crisis among other issues.

Prime Minister Gordon Brown has said he is optimistic that a consensus can be reached on how to tackle the problem but other leaders are less convinced.

In an interview with Saturday’s Financial Times, German Chancellor Angela Merkel dampened expectations of a significant breakthrough.

She said one meeting would not be enough to solve the economic crisis and finish building a new structure for global markets.

Ahead of the summit, there are fears that banks and other financial institutions could be the focus for violent protests.

Organisers of Saturday’s Put People First march say police have no evidence anyone intends to take part in violence or disrupt the march, which has been organised in full co-operation with the authorities.

Commander Simon O’Brien, one of the senior command team in charge of policing security, said: “It’s fair to say that this is one of the largest, one of the most challenging and one of the most complicated operations we have delivered.

“G20 is attracting a significant amount of interest from protest groups. There is an almost unprecedented level of activity going on.

“The unprecedented nature is about the complexity and scale of the operations over a number of days.”

TUC general secretary Brendan Barber, who is due to address the rally, said there was no room for violence at the march.

“If there are other groups who want to cause trouble, I don’t want to see them anywhere near our event,” he told the Today programme.

He said he wanted to see G20 leaders agree a plan of action to deal with the financial downturn.

“Where I hope we will see a consensus emerge is in the recognition that unless they act together, then the problems are only going to get worse.

“This, unlike any other recession, is a recession right across the world.”

The Energy and Climate Change Secretary Ed Miliband, who has met some of the groups taking part, said he expected “the vast majority” to stage a peaceful protest.

He said he agreed it was important for the G20 to make commitments on helping the environment as well as the economy.

“There are some people who will say you can either tackle the economic crisis or the climate crisis.

“But the truth is that both come together with this idea of a Green New Deal, of investing in the jobs of the future, which are going to be in the green industries of the future.”

‘Better world’

Actor Tony Robinson suggested the talk of violence was distracting from protesters’ demands for greater government commitment on the environment and local communities.

Jake Corn, from Cambridge, said he was joining the march to show his support for a more sustainable future.

“We feel this is an important moment with the G20 coming here. We want to get our message across to as many people as possible,” he said.

Italian trade unionist Nicoli Nicolosi, who had travelled from Rome, said: “We are here to try and make a better world and protest against the G20.”

Saturday’s march will be followed by a series of protests on Wednesday and Thursday by a variety of coalitions and groups campaigning on a range of subjects, from poverty, inequality and jobs to war, climate change and capitalism.

In the run-up to the summit, Prime Minister Gordon Brown has been visiting a number of countries seeking support.

On Friday, during a visit to Chile, he said people should not be “cynical” about what could be achieved at next week’s summit, saying he was optimistic about the likely outcome.

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Jews lose hold on Antwerp diamond trade

There used to be tens of thousands of diamond cutters in the Belgian port of Antwerp. Now there are only a few hundred.

Traditional methods are coming under threat from globalisation

It is within the city’s Jewish community that most of the jobs have been lost – particularly among the Hasidic Jews who adhere strictly to religious laws.

Out of about 2,000 Hasidic families in Antwerp, 1,000 are now headed by a man who has no job.

Unemployment of 50% would cause great hardship among any group of people. But for Hasidic Jews it brings special problems.

Women do not usually work – they raise large families, with nine children on average – and the children are often given private religious education.

Jobs move abroad

In fact, diamonds still make a lot of money in Antwerp – but it is shared among a small elite.

Setting up as an independent dealer has become almost impossible.

But Alan Majerczyk, a director of the Antwerp Diamond Bourse, denies there is any prejudice against any particular group.

“It’s a multi-racial environment and we all get along well – it’s an example to the outside world,” he says.

“Like any other industry, we couldn’t afford to pay the heavy labor costs in Europe, so the polishing moved to India and China, but at a certain stage the goods come back. Antwerp gets 80% of all the rough trade and 50% of the polished diamonds.”

Africa, too, has taken some of Antwerp’s jobs. Nations where diamonds are mined, like Botswana, now insist the lucrative cutting process is also done within the country.

The use of lasers to cut the diamonds has also reduced the number of jobs.

Most of the Jews who work in the diamond trade are self-employed, which allows them to observe the Sabbath and religious holidays.

Nowadays, though, the industry is increasingly dominated by huge businesses like de Beers, which made nearly $500m (£280m) profit last year.

Some of the Jewish men who have been left without work are now starting to retrain in other professions.

Sam Friedman believes it is vital for men from his Hasidic community to gain new skills, and so he offers them night classes in accounting, languages and computers.

“Training and education are very important for the Hasidic people to get a job, because in the Jewish schools they only learn about Jewish law and Jewish history but not about general things,” he says.

“So it’s very important after religious school to train some more so that you can find a job.”

Cultural clash

Even among other Orthodox, non-Hasidic Jews, there is a major debate over education.

Tradition-minded parents often do not let their children go to university, partly for fear that its secular environment will taint their religious beliefs.

Marcel Engelstein is a successful businessman in Antwerp who believes the changes in the diamond industry present an opportunity for positive change.

Alan Majerczyk says Antwerp still has a future in diamonds

“We have here a community connected to Israel – which has developed a lot of hi-tech businesses. We can use our brain power to bring the companies here,” says Mr Engelstein.

“The Hasidic and Orthodox people are using their brains all the time when they are learning the Talmud [religious law and history].

“So it’s very easy to teach them new things. They need a bit of guidance and a bit of will power, of course, but I think we can really get them to do that.”

Some people already have learned new skills – like Daniel Verner, a young man who is making a name for himself locally as an architect.

His father used to work in diamonds and his brothers still do. But he decided to go to university and then set up his own business.

“Twenty years ago people would proclaim you crazy for not going into diamonds, and today it’s just the opposite,” he says.

“When people try to look for jobs outside diamonds they gain respect, because everybody knows the situation is much more difficult today than it was back then.”

Mr Verner believes that loosening the links between the Jewish community and the diamond trade will transform the society.

“Everybody is going to have a different life, different schedules and different interests, so even when we talk together it’s going to be on different subjects. For sure it’s going to change,” he says.

Global economy woes shake markets

Japanese shares felt the force of the economic uncertainty

Fears about a global economic slowdown, heightened by worsening US job figures, have continued to undermine stock markets around the world.

London’s FTSE 100 index lost 2.3% – taking its weekly decline to 7% – its biggest since July 2002.

Markets in Paris and Frankfurt fell by 2.5% as economy concerns spread.

On Wall Street the Dow Jones index clawed back early losses to edge higher despite figures showing the US economy shed 84,000 jobs last month.

But the benchmark US index still had its worst week since May.

Earlier, Japan’s main share index fell nearly 3% while markets in Hong Kong, China, Australia and India all slid 2%.

‘Ugly’ data

The US labor market figures – which showed the unemployment rate rising to 6.1% – were a further jolt to investors who have had to swallow a slew of poor economic data in recent days.

Economists had been expecting 75,000 jobs to be lost while the government also revised upwards.

“This was an ugly number that pretty much confirms that our economy continues to trend downward,” said Jack Ablin, chief investment officer of Harris Private Bank.

“This just knocks the legs out of any hope of seeing much economic improvement right now.”

‘Uncertainty’

Amid the uncertainty, few investors are willing to buy Masayuki Otani, Securities Japan

The FTSE 100 closed down 2.3% at 5,240.70 points. The last time it lost so much value in a week was more than six years ago in the wake of financial scandals such as Enron and WorldCom.

Markets in Paris and Frankfurt continued their recent downward trend, both the Cac-40 index and the Dax-30 dropping about 2.5%.

The Dow Jones index, which lost 3% on Thursday, rose 32.73 points, or 0.3% to 11,220.96, but still ended down 2.8% on the week.

“Given the fact we were down so much yesterday we’re seeing a bit of a reflex rally with investors wanting to take advantages of some of the bargains,” said Bucky Hellwig, senior vice president at Morgan Asset Management.

The Nasdaq index slipped 3.16 points, or 0.1% to 2,255.88, ending the week 4.7% lower.

Earlier Japan’s benchmark Nikkei index fell 361.54 points to 12,196.12 amid a widespread sell-off of shares in Asia.

The Hang Seng index fell more than 3% in Hong Kong while markets also fell sharply in China, Australia and India.

“Amid the uncertainty, few investors are willing to buy,” said Masayuki, Otani, chief market analyst at Securities Japan.

“Several bad things happened at once,” he added, explaining the fall.

Gloom

Worries about inflation have prevented central banks in Europe from cutting interest rates to help forestall a slowdown.

But analysts believe this could change soon with economic forecasts across Europe looking increasingly gloomy.

The European Central Bank cut its 2009 growth forecast from 1.5% to 1.2% on Thursday while the UK economy stalled in the second quarter.

In a separate development, the Russian rouble fell against the dollar a day after Russia’s central bank intervened to support the currency amid concerns about a flight of foreign capital after the conflict with Georgia.

The central bank sold up to $4bn in reserves, the Financial Times reported, after the rouble slipped to its lowest level since February 2007.

US rules out new economic package

Jobs are being lost in the service, business and manufacturing sectors

The United States government says it does not see an immediate need for new measures to stimulate the US economy despite a sharp rise in unemployment.

The latest figures show a rate of 6.1% – the highest since December 2003.

A White House spokeswoman said that while the figures were disappointing, the existing economic stimulus plan was having the impact intended.

A call for more action had been made by the Democratic Party presidential candidate, Barack Obama.

A higher-than-expected 84,000 jobs were lost last month, which together with the unemployment rate has added to concern about the US economy and its ability to stave off a recession.

In a further blow, the Labor Department revised upwards job loss figures for each of the past two months.

The Federal Reserve said earlier that economic activity remained “weak”.

A separate report by the Mortgage Bankers Association said that almost one in 10 US homeowners were behind with their mortgage payments or was in foreclosure procedures.

The 9.2% default rate between April and June was up from 8.8% in the previous quarter, and nearly double the rate one year ago.

‘Convincing evidence’

The number of jobs lost last month was significantly higher than the 75,000 forecast by economists.

All sectors of the economy were affected with manufacturing worst hit, shedding 61,000 jobs.

This is more convincing evidence that the economy is still in trouble Gary Thayer, Wachovia Securities

The labor market has worsened noticeably in recent months, reflected by the fact that it is now apparent that more jobs were lost in June and July than was previously thought.

Revised figures show that in June, 100,000 jobs were lost while in July 60,000 jobs disappeared. This was up from the 51,000 figure initially forecast for both months.

“It seems unemployment in the US really is accelerating,” said the BBC’s North America business correspondent, Greg Wood.

“There do not seem to be many sectors of the US economy which are hiring.”

‘Clearly deteriorating’

In the first eight months of 2008, 605,000 jobs have been lost.

Employers have now reduced their payrolls for eight straight months, with the dramatic downturn in the housing market and the credit crunch hurting all sectors of the economy.

“This is more convincing evidence that the economy is still in trouble,” said Gary Thayer, senior economist at Wachovia Securities.

“The economy is clearly deteriorating.”

Political focus

Both candidates in November’s Presidential election are under pressure to come up with concrete proposals to help the growing number of people out of work and families battling against rising living costs.

Although the US economy grew a robust 3.3% in the second quarter, businesses are struggling to cope with the high cost of raw materials and energy, fragile consumer confidence and weaker export markets.

The Federal Reserve, which meets to decide on interest rates next week, has warned that the US is facing the twin threats of weak growth and rising inflation.

The bleak employment picture means the Fed is unlikely to raise rates in the foreseeable future while further cuts seem equally unlikely against a background of rising inflation.

“The jobs number is weak again but we think this probably is not the time to panic,” said Steve Goldman, strategist at Weeden & Co.

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US jobless rate near 5-year high

Jobs are being lost in the service, business and manufacturing sectors

The unemployment rate in the US is at its highest level in nearly five years after a higher-than-expected 84,000 jobs were lost last month.

The jobless rate has risen to 6.1%, the highest since December 2003, adding to concern about the US economy and its ability to stave off a recession.

In a further blow, the Labor Department revised upwards job loss figures for each of the past two months.

The Federal Reserve said earlier that economic activity remained “weak”.

Worse than thought

The number of jobs lost last month was significantly higher than the 75,000 forecast by economists.

All sectors of the economy were affected with manufacturing worst hit, shedding 61,000 jobs.

This is more convincing evidence that the economy is still in trouble Gary Thayer, Wachovia Securities

The labor market has worsened noticeably in recent months, reflected by the fact that it is now apparent that more jobs were lost in June and July than was previously thought.

Revised figures show that in June, 100,000 jobs were lost while in July 60,000 jobs disappeared. This was up from the 51,000 figure initially forecast for both months.

In the first eight months of 2008, 605,000 jobs have been lost.

Employers have now reduced their payrolls for eight straight months, with the dramatic downturn in the housing market and the credit crunch hurting all sectors of the economy.

“This is more convincing evidence that the economy is still in trouble,” said Gary Thayer, senior economist at Wachovia Securities.

“The economy is clearly deteriorating.”

Political focus

Both candidates in November’s Presidential election are under pressure to come up with concrete proposals to help the growing number of people out of work and families battling against rising living costs.

Although the US economy grew a robust 3.3% in the second quarter, businesses are struggling to cope with the high cost of raw materials and energy, fragile consumer confidence and weaker export markets.

The Federal Reserve, which meets to decide on interest rates next week, has warned that the US is facing the twin threats of weak growth and rising inflation.

The bleak employment picture means the Fed is unlikely to raise rates in the foreseeable future while further cuts seem equally unlikely against a background of rising inflation.

“The jobs number is weak again but we think this probably is not the time to panic,” said Steve Goldman, strategist at Weeden & Co.

Australia suffering ‘man drought’

Australia’s coastal regions have been hit by man shortages

An analysis of new census figures has shown that Australia is suffering from an unprecedented “man drought”.

The statistics have revealed that there are almost 100,000 more females than males in Australia.

The problem is worse in the coastal cities, where women have moved seeking better jobs and lifestyles, while many men have gone overseas.

Thirty years ago Australia was with flush with men thanks to immigration policies that favoured males.

That position has been reversed because thousands of Australian men in their 20s and early 30s have gone overseas either to travel or to work.

It has caused a gender imbalance that is having far-reaching implications.

Town and country

Major cities in Australia now have concentrated groups of unattached women, along with dwindling numbers of the opposite sex.

Demographer Bernard Salt says the exodus of young men to foreign countries is leaving its mark.

“If you go into the United Arab Emirates census you’ll find there is around 12,000 Australians living in Dubai, mostly male, mostly in the 25 to 34-year age group.

“Here is an example of one country that has drawn out a specific age demographic out of Australia which has contributed to the ‘man drought’.”

But the situation outside of the larger towns and cities is very different.

Vast numbers of women have abandoned the countryside seeking better jobs or education in metropolitan areas. They have left behind communities overloaded with younger males.

In the town of Glenden in the northern state of Queensland there is one single female for every 23 men.

Demographers have compiled a so-called “Love Map” that shows how the various clusters of unattached men and women are distributed across the Australian continent.

McCain and Obama spar over taxes

The economy and oil have been key issues for both candidates

Barack Obama’s senior economic adviser Austan Goolsbee has accused John McCain of proposing huge tax cuts for rich people and large corporations.

Mr Obama’s tax cuts for “ordinary Americans” would be three times larger than Mr McCain’s, he promised.

Mr McCain’s economic adviser, Doug Holtz-Eakin, countered that Mr McCain’s tax cuts would help firms create jobs.

Speaking to the BBC World Service, both advisers clashed on how to end the US dependence on foreign oil.

In a debate between both advisers on the Business Daily program, Mr Goolsbee said: “Barack Obama’s tax cuts for ordinary Americans are three times larger than John McCain’s.””The way that John McCain’s package ends up being three to four trillion dollars more is that they give humungous tax cuts to high income people and large corporations.”

Small firms

In fact John McCain has no plans for cuts in personal income tax. But he does propose to cut the rate of corporation tax from 35% to 25% in an effort to revive the ailing US economy.

Mr Holtz-Eakin told the BBC: “In this economy in the past six months with over 400,000 jobs lost we’ve seen the small businesses – those with less than 50 employees – add 283,000 jobs.”

He underlined the importance of not damaging those small businesses: “keep them in a position where they don’t have onerous health care costs and mandates to provide expensive benefits to their employees.”

Barack Obama says he will spend $50bn immediately to jump start the economy and introduce tax credits for working families.

He is also proposing to invest $150bn in clean energy over the next decade, creating 5 million new jobs.

Energy policies

Mr Goolsbee said the US had to make a commitment to wean itself off its dependence on oil.

John McCain believes that we have a dangerous exposure to imported oil Doug Holtz-Eakin, economic adviser to John McCain

“It is the mentality of the past eight years to listen to the oil companies that got us into this mess and we have to have a different energy policy to get out of it.”

Mr Holtz-Eakin denied that John McCain would follow the same energy policy as George W Bush.

“John McCain believes that we have a dangerous exposure to imported oil,” he said.

“It is his primary objective to put the United States in a position where it is no longer strategically exposed by this dependence.

“The first and foremost objective is to change the way Americans drive,” he added.

Foreclosures

Mr Goolsbee warned that more Americans would lose their homes unless there were tighter controls on the mortgage industry.

He said failure to address the fundamental challenges of oversight of the housing market – an issue that Senator Obama identified 18 months ago – could prompt “a second wave of the foreclosure crisis in the United States.”

Mr Holtz-Eakin said that John McCain would not be afraid to speak out in favor of free trade, even at a time when American jobs were being lost.

“Globalization is an opportunity.”

However he added: “Not everyone automatically gains from globalisation, and we do have an obligation to help those workers who do not instantly benefit to get an opportunity for the future.”