1 Germany rejects Greece plea for loan extension
(Jennifer Rankin & Helena Smith in The Guardian) Germany and Greece are on
a collision course ahead of crucial bailout talks on Friday after Berlin
knocked back a Greek compromise proposal and insisted the country stick to its
existing austerity plan.
Setting the scene for a make-or-break meeting in
Brussels, the eurozone’s largest economy dismissed as “not substantive” a
proposal from Greek finance minister Yanis Varoufakis,which appeared to have
all but capitulated to creditors’ demands. The rebuff from Berlin came just
hours after Greece filed a formal request to its eurozone partners to extend
its loan agreement, in the hope of averting a cash crisis.
A Greek government spokesman insisted that the
eurogroup had only two options: either to accept or reject the Greek request.
“It will then be clear who wants to find a solution and who doesn’t.” The
European commission welcomed the Greek proposal – widely seen as a climbdown on
some of Greece’s key demands – as a positive sign that could pave the way for
compromise.
But in a sign of divisions within the EU, Germany
said the Greek plan failed to meet eurozone ministers’ demands that Greece
stick to its bailout programme – a set of conditions laid out on Monday at an
acrimonious meeting in Brussels that failed to end the deadlock. Greece needs
unanimous backing from the other 18 eurozone finance ministers to secure a
deal.
2 French inflation turns negative after five years
(BBC) Inflation in France, the eurozone's second-biggest economy, turned
negative in January, adding to worries over deflation in the eurozone. Prices
fell 0.4% from a year earlier, with energy costs down 7.1% following the drop
in global oil prices. It is the first time in more than five years that
inflation in France has turned negative.
Last month, the European Central Bank announced a
stimulus programme to try to boost growth and avoid deflation. Figures released
last month suggested deflation in the eurozone was gathering pace, with prices
across the currency bloc in January down 0.6% from a year earlier.
While falling energy costs have provided a one-off
cut to prices, the worry is that weak economic growth in the eurozone will lead
to deflation becoming entrenched. Falling prices can be harmful to an economy
if it leads to consumers and businesses delaying spending and investment
decisions in the hope of lower prices in the future. The last time annual
inflation was negative in France was in October 2009, when it hit -0.2%.
3 Walmart to raise wages (Straits Times) Global
retail giant Walmart, which has faced criticism over low wages and skimpy
benefits for years, has announced it would raise wages for 500,000 workers in
the US. The largest single employer in the US said salaries for about 40 per
cent of its US staff would be lifted to at least $9 an hour in April, $1.75
above the federal minimum wage. By Feb 1, 2016, US staff will be paid at least
US$10 an hour.
The company also unveiled a training and education
programme that will allow employees to earn a high school degree at no cost as
well as pursue higher education at more affordable prices.
There was criticism by labour unions and other
groups that the company's low wages have pressured some staff to seek public
assistance to make ends meet. President Barack Obama has also made the issue of
low pay and a growing income gap across the country a key policy focus.
Walmart said the increased spending on wages and
education would weigh on future profits. The new programme will shave 20 cents
per share from earnings in fiscal 2016. Walmart projected fiscal 2015 earnings
of $4.70-$5.05 a share compared with the $5.19 expected by analysts.
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