Here is the Thursday, October 16th, 2008 edition of what’s making news and interesting reads from around the world. Also please note that off to the left there are two widgets with updates on news from Asia and the world in a separate page: Around Asia & Around the World New Feeds.
Britain’s Credit Crunch Leads to a Sharp Rise in Unemployment
The number of people out of work rose at the fastest rate since the recession of the early 1990s in the three months to August, prompting fears that the jobless total will break through the 2 million level by Christmas. In the latest sign of the damage to the real economy caused by the 14-month credit crunch, the Office for National Statistics said the jobless total on the broad Labour Force Survey measure jumped by 164,000 in the three months to August from the previous three months – the biggest rise since June 1991 – to stand at just under 1.8 million. This is the highest level for nearly a decade. The jobless rate leapt to 5.75% from 5.2%, also the largest change since 1991. “These numbers are truly horrendous and much worse than I had feared,” said David Blanchflower, a labour market expert and member of the Bank of England’s monetary policy committee. He told the Guardian his earlier prediction that unemployment would rise to 2 million by Christmas now looked conservative. “Unemployment will be above 2 million by Christmas.” The full story in the UK Guardian.
G8 Summit on World Finance Reform
France, Britain and Germany have won backing from the G8 group of industrialised nations for a world summit to reform the global financial system. The plan was put forward at an emergency European Union summit to discuss the financial crisis. French President Nicolas Sarkozy, whose country currently holds the EU presidency, suggested the reform summit be held in New York, where he says everything began. More from Euro News.
Thailand and Cambodia Open Fire
Fighting erupted between Thai and Cambodian soldiers on Wednesday in a disputed border area surrounding the 11th-century Preah Vihear temple. Both sides claim the other shot first in the latest flare-up in a dispute that broke in July. More from the Asia Times.
World Markets Fall Sharply
Stock markets plunged anew on Wednesday, nearly wiping out the record gains of Monday and sending another wave of wealth destruction washing over American households. The government’s rescue of the banks has been widely embraced, but the frenzied selling, which pushed the Dow Jones industrial average down 733 points, underscored how the economy’s troubles are too broad to be fixed by the bailout of the financial system. More from the New York Times.
Merkel Address German Parliament
In a speech before parliament, German Chancellor Angela Merkel on Thursday made the case for a planned €500 billion financial system bailout. Meanwhile, the EU moved to ease accounting rules for banks and German politicians sought to cut a deal with Iceland over frozen deposits. More from Der Spiegel.