Quotes of the Day
He survived the strike. Now Venezuelan President Hugo Chávez is striking back. Openly working to choke off the supply of money and imports to businessmen who oppose him, last week Chávez imposed strict currency controls on the bolivar, setting the local currency at 1,600 to the dollar — 17% higher than its last trading rate. "Not one dollar to the coup-mongers," Chávez ordered the army captain who will administer the controls. While foreign companies will be allowed to send their profits home, the government will now set prices and limit who can conduct transactions in foreign currency — a powerful weapon in a country that imports over 60% of its goods. But as the President embarks on his "year of the revolutionary offensive," the nation is rapidly plummeting into the abyss. Economic activity is expected to shrink by over 14% this year, hundreds of businesses now labeled enemies face ruin, and the oil industry — once one of the world's best run — will not soon recover from the two-month general strike that has already cost $4 billion in exports. Chávez's strict controls may succeed in clinching his grip on power. But when he is finished there may be very little left to rule.
See Also: Latin America News
The Grape Name Robbery
The American wine writer Robert Parker is feared and respected in the €20 billion French wine business because his reviews can make or break a vintage — even a château. But now he's in the awkward position of discovering that his good name has been misused for allegedly fraudulent purposes. Police in Bordeaux last month took into custody Parker's French translator and tasting coordinator, Hanna Agostini, charging her with fraud and breach of trust. It was part of a bigger investigation into the alleged embezzlement of €800,000 by a former employee of Belgium's Geens Group, which owns several wine estates in Bordeaux. Agostini is alleged to have made out invoices for consulting work to Geens on Parker's official stationery, implying that the master critic endorsed Geens wines. She says the invoices are forgeries. In a statement, Parker says Agostini has "an impeccable record of workmanship and honesty." But he adds that he learned she was working for him while consulting for winemakers including Geens; that showed "negligent judgment" and he told her to stop. Jean-Pierre Steiner, the investigating officer, says Parker isn't part of the case. "It's like somebody steals your car and uses it for a robbery," Steiner says. Parker says the case "has placed me in a very delicate situation." As for Geens wines: he says Agostini gave him about two dozen to taste over recent years; all but three rated "mediocre."
Still Not Working
Economic news from Europe is worsening as quickly as its unemployment lines lengthen. Last week Germany's jobless rate leapt to 11.1% — its highest in nearly five years and the eleventh consecutive monthly rise. But those troubles are not unique. As France's second-largest airline, Air Lib, was grounded, putting 3,200 jobs at risk, new figures showed that the entire euro-zone service sector is shedding jobs at the fastest rate in over four years. There was some welcome good news, however. In a rare moment of bonhomie, Britain's Tony Blair, France's Jacques Chirac and Germany's Gerhard Schröder agreed to get the E.U.'s job market on track by liberalizing markets and knocking down competition barriers. Even Italy, which has the lowest percentage of adults working in the E.U., passed a law that will bring major job-market reforms by promoting private employment agencies, job sharing and temporary work. But with union resistance expected, E.U. leaders may still fear they'll be on the dole next.
We're Shorting Phil Spector This Week
Fame is a fickle commodity, and thanks to
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Jude Law | 140% | £10.02 | |||
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Hugh Grant | 129% | £7.94 | |||
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Michael Jackson | 189% | £7.96 | |||
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Jack Nicholson | -47% | £3.42 | |||
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Ms.Dynamite | -56% | £6.06 | |||
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Kylie Minogue | 93% | £12.11 | |||
THE BOTTOM LINE
"No one should mistake this for good news"
PETER WYMAN, president of the Institute of Chartered Accountants in England and Wales, on the Bank of England's surprise interest-rate cut from 4% to a 38-year-low of 3.75%
- Blaine Greteman and Peter gumbel
- Venezuela's embattled president strikes back