Forbes list
Bloated billionaires
The latest Forbes List of the most wealthy people in the world runs contrary to the wider struggles many are experiencing in the global economy. The list of billionaires welcomed 210 new members in 2012 as the number of people with 10-figure dollar fortunes to their name swelled to 1,246, despite the tough economic conditions. Familiar names continue to dominate the upper echelons of the list with Carlos Slim of Mexico holding on to the top slot, followed by Microsoft founder Bill Gates. Spanish clothing entrepreneur Amancio Ortega, who owns 60 per cent of Inditex that owns the Zara chain, leapfrogged into the top three at the expense of US investment legend Warren Buffett.
Nuclear no
Plans at risk
The UK's new nuclear build programme is hanging by a thread with talks between the government of proposed developer EDF Energy described as being at 'crisis point', as the two sides try to come to an agreement over the level of subsidy available to potential developers. EDF is reported to be scaling back on its project for new nuclear reactors at Hinkley Point in the UK and has already made plans to lay off around one fifth of its workforce related to the project. The talks are believed to be stalled on the level of return the subsidy would allow EDF from its new nuclear projects with the Treasury said to be playing hard ball. Talks are likely to conclude one way or another within two weeks.
Services hope
Growth rebound
The UK's economy showed signs of a fight back in February after a snow-blighted start to the year. The dominant services sector enjoyed a rebound in activity in the second month of the year according to the latest purchasing managers index for the sector. In beating forecasts of a score of 51, the services sector rose to 51.8 in February, up from 51.5 in January. A score above 50 indicates expansion in the sector. The number of new businesses entering the sector also saw an uptick, which indicates improving conditions and job creation. The services sector data was accompanied by improving retail sales figures and went some way to dispelling the gloom from poor readings by the construction and manufacturing sectors for February.
See "Triple dip" threat remains
China concern
Wen bows out
Premier Wen Jiabao bowed out from his role as president of the People's Republic of China this week with a warning that the country faced significant challenges in maintaining its GDP growth rate at the preferred 7.5 per cent level. Wen warned that hitting this year's 7.5 per cent target was "a goal we will have to work hard to attain" due to downward pressures on economic growth and excess production capacity. China's GDP growth in 2012, at 7.8 per cent, was its slowest rate of growth for 13 years, but most commentators predict that the years of double-digit growth are behind China as it seeks to rebalance its economy for a changed global economy.
Bonus beating
Osborne alone
Chancellor George Osborne was sent back from Brussels with his tail firmly between his legs this week after being completely isolated on the subject of caps on bankers' bonuses. A vote of the EU finance ministers ended up 26-1 in favour of applying caps to bonuses for the banking sector, with Mr Osborne the only dissenter on the basis that he felt the caps had not been discussed thoroughly enough. Policy will be firmed up over the next month based around the proposal that bonuses be limited to 100 per cent of salary or 200 per cent with the approval of shareholders.
RBS break up call
King plan
The outgoing governor of the Bank of England, Sir Mervyn King, has called for the break-up and sale of the 82 per cent government-owned Royal Bank of Scotland. The governor said that the current situation, whereby the government effectively owns the bank but it is run at arm's length by an independent board, is "nonsense" and that the bank's assets should be split between "good" and "bad" assets and the constituent parts sold off in a bid to recoup some of the £45bn poured into propping up the business.
