1 Big economies’ growth forecasts cut (Katie Allen in
The Guardian) The global economy faces headwinds from a sluggish eurozone and
rising political tensions, including the uncertain outcome of Scotland's
independence referendum, a leading thinktank has warned. The Organisation for
Economic Co-operation and Development slashed its growth forecasts for advanced
economies and called on the European Central Bank (ECB) to use quantitative easing
to shore up the eurozone.
Updating its economic outlook before a G20 meeting
of finance ministers in Australia this week, the Paris-based thinktank
described continued slow growth in the euro area as the "most worrying
feature" of its new projections. Its deputy secretary-general Rintaro
Tamaki said: "The global economy is expanding unevenly, and at only a
moderate rate. Trade growth therefore remains sluggish and labour market
conditions in the main advanced economies are improving only gradually, with
far too many people still unable to find good jobs worldwide.”
The OECD now forecasts eurozone GDP will grow just
0.8% this year, down from the previous forecast for 1.2% growth made in May's
outlook. In 2015, it expects the eurozone to grow 1.1%, down from the 1.7%
forecast in May. It also cut its US GDP forecast for this year to 2.1% from
2.6%.
The OECD's gloomier outlook coincided with weaker
manufacturing numbers from both China and the US. Financial markets were shaken
after data released over the weekend showed China's industrial sector posted
the weakest growth since the financial crisis began six years ago. In the US,
manufacturing output declined in August for the first time in seven months,
reflecting a sharp fall in production at car plants after a jump in July.
2 Gaultier quits ready-to-wear clothes (BBC) French
fashion house Jean Paul Gaultier has said it will stop making ready-to-wear
clothes for both men and women. The house, controlled by Spanish perfume maker
Puig, said it would instead concentrate on exclusive custom-made clothes known
as "haute couture" and its perfume lines.
Mr Gaultier, one of the world's best known
designers, launched his business in the early 1980s. Puig bought control of the
firm in 2011 from Hermes. The firm said its final ready-to-wear collection for
spring and summer next year would be launched later this month. It did not
comment on the reasons for the closure or how many jobs were likely to be
affected.
3 India and the Scottish independence (MJ Akbar in
Khaleej Times) For an Indian who has always believed that the partition of
India was a deep, self-inflicted wound carved by a British knife, the thought
that Britain might split into two nations on September 18 is not without some
satisfaction. History is rarely synonymous with justice, but when the echo of
some form of retribution fills the air, we might sit back and enjoy the music.
London has probably never been so startled since
Lord Cornwallis returned from the American colonies with news that some upstart
called George Washington had won the war. A pithy argument became the great
persuader: Scotland was not leaving England, it was joining the world. There is
no certainty that a majority of Scots will vote for separation on the 18th. But
we can be sure about one thing: the margin will be narrow, and Great Britain,
if it survives, will become a geographical rather than a political union. Enough
Scots are now convinced that they can create a society of five million people
that will be culturally secure, and economically caring.
What odds then, that on September 18, 2024, Britain
will hold a referendum in England for English independence? Don’t dismiss the
thought. More amazing things have happened in the weave and waft of nations.
The marriage between England and Scotland is over. If divorce proceedings fail,
then it is only because one partner is offering economic terms that are unsustainable
in the long, or perhaps even the medium, run. Moreover, every divorce includes
some sort of mess that you would rather not face.
Once upon a time this marriage worked because
England and Scotland together had children both cared about, and, more
pertinently, both benefited hugely from. They were called the colonies. India
was the jewel child of the family. But that child has grown up, and gone its
own way along with siblings. The children used to visit for a while; now they
don’t bother. Indians now prefer to visit an uncle called Sam, rather than a
mummy called Elizabeth.
The parents remain prosperous enough, but they do
not have much to do with each other. Scotland, less burdened by sentiment, has
been realistic enough to signal time-out, and then pushed for separation.
England is dangling a new honeymoon, while threatening that there will never be
any alimony. We shall see what happens, but the relationship is fundamentally
dead. If they don’t bury it now, they will a little later.
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