Wednesday, October 20, 2010

French Strikes Reach 7th Day; Japanese Economy at Standstill; China Hikes Interest Rates; Leaked Docs say 10% of UK Public Sector Workers to be Fired

Global imbalances in a number of countries are back on the front burner. Here is a roundup of news from France, China, Japan, and the UK.

France hit by new wave of strikes over pension reforms

The BBC reports France hit by new wave of strikes over pension reforms http://www.bbc.co.uk/news/world-europe-11570828

Almost half a million people have taken to the streets of France in a sixth national day of action against planned pension reforms, officials say. Strikes have hit transport and education, 4,000 petrol stations have run dry and police have clashed with protesters in several cities.

Shops were looted in Lyon and cars were set on fire in a Paris suburb. President Nicolas Sarkozy appealed for calm but insisted he would press ahead with plans to raise the retirement age.

The BBC's Christian Fraser, in Paris, says there is a feeling that the demonstration could turn angry, with a noticeable change in atmosphere since last week.

Strikes Hit Refineries

The BBC reports French strikers intend to keep going for seventh day http://www.bbc.co.uk/news/world-europe-11580492

The scale of disruption has begun to affect large parts of society, with strikes at France's 12 oil refineries hitting fuel supplies hard. Prime Minister Francois Fillon announced plans to end the shortages by asking oil companies to share their reserves to replenish stocks at petrol stations.

Overnight, police lifted the blockade at three fuel depots in Le Mans, La Rochelle and Donges. However, AFP news agency later reported that strikers had again blocked the depot at Donges.

Officials said 379 secondary schools were either blockaded by pupils or had suffered some disruption, the highest number since the protests began at the start of September. In some areas, schools became a focus for violence. Outside a secondary school in the Paris suburb of Nanterre, youths threw stones at police who responded with tear gas.

For the second day running, cars were overturned and set alight in Lyon. There were also disturbances in Mulhouse and Montbeliard in eastern France.

China Hikes Rates to Curb Asset Bubbles

Bloomberg reports China Could Increase Rates More http://noir.bloomberg.com/apps/news?pid ... wvpMUx2Lf4

The central bank of China yesterday unexpectedly increased borrowing costs for the first time since 2007, lifting the benchmark one-year lending rate to 5.56 percent from 5.31 percent. Policy makers there are trying to curb lending and prevent an asset-price bubble.

“This move is consistent with their broader policies,â€