Europe and U.S. should consider stimulating growth: IMF's Lagard (Reuters)

BERLIN (Reuters) – IMF chief Christine Lagarde said in an interview released on Sunday that Europe and the United States should consider stimulating economic growth, if the situation permits, to offset a crisis of confidence hitting the global economy.

"Looking at Europe, we recommend countries to adjust their austerity programs to a changed situation and consider measures to drive growth," news weekly Der Spiegel reported her as saying.

"If the United States launches a credible middle-term adjustment program, there is possibly room to abandon the short-term austerity measures and to introduce some measures to drive growth," she added.

Lagarde caused a stir last weekend when she urged policymakers to force Europe's banks to boost their capital or risk derailing a fragile global recovery, a call she reiterated in the interview.

European politicians last week rejected the call, which would involve raising up to 200 billion euros ($290 billion) in new capital, adding to fears that policymakers may be underestimating the severity of the debt crisis.

Turning to Germany, Europe's largest economy, Lagarde said its state finances were recovering well, hinting that Berlin may be well positioned to stimulate growth if it is hit by a downturn.

"It all depends on the circumstances, of course. If exports -- the foundation of the German economy -- collapse, the government could push back."

"If Germany stimulates domestic demand, it is good for the German economy and for its neighbors," she added, when asked if Germany should stimulate demand.

(Writing by Brian Rohan; Editing by Jon Loades-Carter)

View the original article here

Zoellick: Governments should deal with global debt woes (Reuters)

CANBERRA (Reuters) – The World Bank called for national governments to seek long-term debt curbs on Tuesday to solve the current sovereign debt crises in Europe and the United States, but said it was too early for special action by the Group of 20 nations.

World Bank President Robert Zoellick also said it was time to push a free trade agenda, warning against rising protectionism as nations seek to solve their debt crisis.

"This is really at a stage where you still have sovereign governments having to make decisions in Europe," Zoellick told reporters in the Australian capital Canberra on Tuesday.

"It really is going to be the responsibility of each of those sovereign entities to make the calls on how they are going to face not only the short-term challenges, often assisted by their central banks, but also go to the medium and long term," he said.

Euro zone policymakers have been battling to contain a debt crisis that threatens to enter a dangerous new phase by engulfing larger nations on the region's periphery, with the European Central Bank stepping in last week to buy Italian and Spanish bonds in a bid to calm nervous markets.

But the idea of so-called "Eurobonds" or joint euro zone bonds has been fiercely opposed by Berlin, which is fearful such a step would push up German borrowing costs and reduce incentives for weaker euro zone members like Greece to reform their economies.

FIN MINISTERS CALL FOR POLITICAL RESOLVE

Zoellick's comments came as finance ministers of five nations - Canada, Britain, South Africa, Singapore and Australia - wrote a joint article to urge global action to restore confidence and for governments to do more to restore finances.

The ministers also said more political resolve was needed to strengthen bank balance sheets.

"Credible fiscal plans and stronger banks must be matched by more progress on global rebalancing," the ministers wrote in an article published in the Financial Times.

"In any coordinated global effort, all countries must make their contribution. Surplus countries and leading emerging economies have to keep up the momentum of structural reforms that support domestic consumption and global demand. A slowdown in these reforms at a time of decelerating global growth risks adding to the spiral of global decline."

Members of the G7 group of leading industrial powers on August 7 promised to take whatever action was needed to steady global financial markets, including joint action in foreign exchange markets if needed.

Finance ministers and central bankers from the G20 group of nations have also promised to take all steps necessary, in a coordinated way, to support financial stability and foster economic growth.

After meetings with Australian Treasurer Wayne Swan and Prime Minister Julia Gillard in Canberra, Zoellick said the loss of market confidence in economic leadership the United States and Europe, coupled with a fragile economic recovery, had pushed markets into a new danger zone.

"What markets are looking to is a long-term action plan that goes beyond discretionary spending," he said of the United States. "So far, we've been able to kind of hold off the dogs of protectionism, but as you get slowdown, these risks can build."

European banks were rocked last week by concern about a squeeze for short-term funding, with tougher and more costly financing and a retreat by U.S. money market funds prompting lenders to turn to the ECB for more cash. France's banks were hit particularly hard.

Zoellick said the appreciation of China's yuan currency would be a positive in helping restore global economic stability and tackling China's inflation

"That could help deal with some of the inflation rate and is also a contributor, I think, to some of the stability in the international system," Zoellick said.

(Editing by Michael Perry and Ramya Venugopal)

View the original article here

To fight obesity, even babies should exercise (AP)

LONDON – In a new campaign against obesity, the British government issued guidelines on Monday saying that children under the age of 5 — including those who can't even walk yet — should exercise every day.

In its first such guidelines for children that young, the health department said kids under 5 who can walk should be physically active for at least three hours a day. Officials also said parents should reduce the amount of time such kids spend being sedentary while watching television or being strapped in a stroller.

The three hours of activity should be spread throughout the day. Officials said the children's daily dose of exercise is likely to be met simply through playing but could also include activities such as walking to school.

For babies who can't walk yet, the government said physical activity should be encouraged from birth, including infants playing on their stomachs or having swimming sessions with their parents. The government said children's individual physical and mental abilities should be considered when interpreting the advice.

"It's vital that parents introduce children to fun and physically active pastimes to help prevent them becoming obese children, who are likely to become obese adults at risk of heart disease, diabetes and some cancers," Maura Gillespie, head of policy and advocacy at the British Heart Foundation, said in a statement.

Nearly a quarter of British adults are obese, and experts estimate that by 2050 about 90 percent of adults will be heavy.

According to a 2008 health survey that used devices to measure how much people actually exercised, officials found only about five percent of Britons meet the government's minimum physical activity advice — about 150 minutes of moderate to vigorous exercise every week, including some every day.

For children aged 5 to 18, Britain recommends at least one hour of exercise, but that should include intensive activities to strengthen muscles and bones.

In the U.S., the Centers for Disease Control and Prevention advises children and teenagers to get about one hour or more of physical activity every day.

According to the Institute of Medicine, an independent organization in Washington, D.C., toddlers should get at least 15 minutes of exercise for every hour they spend in child care.

View the original article here

Foes say Chavez's health should not be mystery (AP)

By CHRISTOPHER TOOTHAKER, Associated Press Christopher Toothaker, Associated Press – 1?hr?51?mins?ago

CARACAS, Venezuela – Opposition leaders accused Hugo Chavez on Sunday of failing to fully inform Venezuelans about his health, saying the president's condition following surgery in Cuba should not be shrouded in secrecy.

Despite assurances from top government officials and close relatives that Chavez is recuperating following surgery more than two weeks ago, the president's silence and seclusion since the operation have spurred growing speculation about how ill Chavez may be.

Opponents say Chavez and his aides should be more straightforward.

"The uncertainty regarding Hugo Chavez's health and considerable speculation over the real illness affecting him reveal the government's serious constitutional violations," said Miguel Angel Rodriguez, an opposition lawmaker.

Under Venezuela's Constitution, Chavez must "give us the diagnosis, talk to us about the treatment and answer questions," Rodriguez said in a statement.

Venezuelan officials have said Chavez is recuperating, but have provided few details.

Chavez's Twitter stream has been active, but it has not provided any information about his health. Three messages appeared within 30 minutes Saturday afternoon, including one mentioning visits by Chavez's daughter Rosines and grandchildren.

"Ah, what happiness it is to receive this shower of love!" the Twitter message read. "God bless them!"

Nobody has heard Chavez speak publicly since he told Venezuelan state television by telephone on June 12 that he was quickly recovering from the surgery he had undergone two days earlier for a pelvic abscess. He said medical tests showed no sign of any "malignant" illness.

It remains unclear when he will return to Venezuela.

Chavez's mother, Elena, wished her son a speedy recovery on Sunday.

"May the power of God heal him and bring him to me," she told state television.

The vice president must take the president's place during temporary absences of up to 90 days, according to the constitution. Some opposition politicians have suggested that Vice President Elias Jaua should replace Chavez until he recovers, a move that Jaua has ruled out.

If Chavez were to relinquish power, some analysts believe his political movement would crumble or split.

"No one else is really ready to step in and take charge," said Michael Shifter, president of the Inter-American Dialogue, a Washington-based think tank. "The current situation shows how precarious one-man rule is: Everything hinges on the whims of a single individual."

"A search for a successor to Chavez would significantly scramble the country's politics," Shifter added. "A fierce power struggle within Chavismo would almost certainly ensue."

Infighting also would likely break out within Venezuela's loosely knit opposition, which plans to hold a primary to pick a presidential candidate for next year's election.

"The opposition would also be thrown off balance," Shifter said. "Their single-minded focus on Chavez has kept them more united in recent years."

View the original article here