News digest 10 November 2011
The digest opens with more on Europe
before its back to strikes and demonstrations in London and the
home secretary is still at risk. There’s good news on union rights
on both sides of the pond but while GM does well in the US, it
European operations may be hit and Ford in Europe could face its
first strike since the 1970s, FlyBe scales back, HSBC could head
off and a private firm takes control of a NHS hospital while the
pressure on James Murdoch is mounting…
Germany fiddles as
Rome burns – The eurozone debt crisis continues to
dominate the papers. Yesterday Italian bond yields recorded their
biggest one-day rise since the launch of the euro amid fears
investors have lost confidence in Italy, the world’s third largest
debt market. Yields broke though the seven per cent crisis level
and policymakers struggled to come forward with a solution as
Germany held back from backing a bail-out without closer fiscal
union. The issue now is whether France gets sucked in, if French
yields start to rise then the stability of the whole euro project
would be in question. Markets continues to fall and the euro
weakened against the dollar although remained almost unchanged
against sterling as fears the eurozone crisis will hit the UK
economy weigh on UK economic sentiment. Looks like the odds on a
double dip and second global recession are shortening (Mirror p4, Sun p8-9, Express p1, Mail p1/6-7, Times p6-7, Indie p1/4-8, Guardian p1/4-8, Telegraph p1/4-7, FT p1/6-8, Morning Star p7).
Trade gap hits 13 year high –
UK deficit rises to worst level since records began with trade in
goods hitting a record low of £9.8 billion in September. Although
the UK had a services trade surplus of £5.9 billion, the goods
deficit drove the net trade deficit to £3.9 billion, up from £2.7
billion in August, and worse is expected to come (Sun p2, Indie p58, Guardian p7, Telegraph b2).
Slight lift in pay but rises still
below inflation – The Mirror (p63) reports that the
average private sector worker saw a 2.5 per cent pay rise last
month, up from 2.2 per cent the previous month, however inflation
stands at 5.6 per cent. Public sector workers that saw an increase,
many are in the midst of a pay freeze, saw increases of just 2.2
per cent.
School heads vote for first strike in
141 years – Members of the National Association of Head
Teachers could join millions of other public sector workers on
strike on 30 November after 75.8 per cent voted in favour of strike
action on a turnout of 53.6 per cent. Next week the Unite, FDA,
Prospect, NASUWT and GMB public sector pensions ballots close
(Mirror p6, Sun p2, Express p2, Mail p10, Indie p9, Guardian p15, Telegraph p13, FT p1, Morning Star p3).
Students march as police out in
force – Up to 5,000 demonstrators took to London’s streets
to protest against tuition fees and the ‘privatisation’ of higher
education in the country. There was a mini battle of Trafalgar as a
group of protestors that attempted to set up a tent protest in
Trafalgar Square saw their encampment cleared within 90 minutes and
many demonstrators complained of intimidation and heavy handed
policing ranging from the threatened use of plastic bullets to
warnings (Mirror p10,
Sun p15, Express p5, Mail p12, Times p1/9, Indie p2-3, Guardian p12-13, Telegraph p12, FT p2, Morning Star p3).
Police smash electricians’
protest – The police were also accused of heavy handed
tactics after construction workers were attacked by baton-wielding
officers as they also marched through the streets of London to
protest over plans by employers ton force through 35 per cent pay
cuts and deskill the industry. Addressing the protest, Unite
general secretary Len McCluskey who addressed thousands of workers
from across the country said: “Balfour Beatty will be
the first of the rogue firms to feel the anger of its workers, who
have already shown real guts in their battle to defend their
livelihoods. Our members are enraged over the use of bully boy
tactics to usher in an era of de-skilling across the sector as well
and massive pay cuts.” (Morning Star p1, Unite
release)
May still at risk – Home
secretary gets backing of prime minister David Cameron and her
party, but is still shaky. Former Labour home secretary Alan
Johnson said that the UK border force chief Brodie Clark would win
his constructive dismissal case although the crux of the issue will
be whether the official exceeded his powers, all depends on whether
the pressure builds further (Mirror p9, Sun p2, Express p2, Mail p10, Times p16-17, Indie p10, Guardian p1/24-25, Telegraph p10, FT p2, Morning Star p3).
Cameron blocks donations’ cap
– The Indie (p2) says
that the prime minister has blocked the £10,000 ceiling on
donations to political parties after the Tory party withdrew its
support for a blueprint drawn up buy the Committee on Standards in
Public Life. Although the cap had been developed in part to deal
with union donations, the Tory leadership had fears over funding
for the Conservatives from rich friends in the City.
Cameron rejects fire at will
– The FT (p3) has a more detailed
overview of the prime minister’s response to developing a strategy
to inject life into the stalled economy and his rejection of the
fire at will plans, battles are raging in Whitehall over what to do
next as Cameron’s aide Steve Hilton attacks Osborne amid more
debate on how reducing workplace rights will help stall the
recovery rather than lead to more jobs and growth.
Ohio rejects restricted union
rights – And some good news for the Democrats and trade
unionists as the referendum on limiting employee rights was roundly
rejected by 62 to 38 per cent; US trade unions are expected to use
the win to press for labour rights in key battleground states ahead
of the 2012 presidential election (Indie p33, Guardian p30, FT p11, Morning Star p6).
GM turns profit again – Still
in the US and the Guardian
(p39) reports that the US’ largest carmaker earned $1.7 billion in
the last quarter, its seventh quarterly profit in a row, but the
FT (p23) reports that there are
fears of fresh cuts to the carmaker’s European units.
Ford talks in slow lane – A
year long row over pensions at Ford could see the first strike at
the carmaker’s UK operations since the 1970s. Unite national
officer Roger Maddison said: "Our members have made it
crystal clear that they fiercely oppose the closure of the final
salary scheme to new entrants … We call upon Ford management to
restart negotiations with an open mind, rather than demanding
changes to long standing agreements that could lead to Ford's first
strike since the 1970s." (Sun p53, Morning Star p2, Unite
release)
FirstGroup profits on track –
Better news on the trains as FirstGroup said profits from its rail
division surged, although demand for bus travel is being hit by the
worsening economy. Profits rose by 56 per cent to £127.8 million
(Mail p73, Times p49, Indie p58, Guardian p37, Telegraph b4, FT p19).
FlyBe scales back – Regional
airline argues that UK traffic has reached its peak and said it
would reduce capacity by six per cent over the winter, UK revenues
rose by seven per cent to £329 million (Sun p53, Express p75, Mail p75, Times p55, Indie p62, Guardian p35, FT p22).
Virgin versus BA – The
Mail (p75) interviews
Virgin Atlantic chief executive Steve Ridgway on the airline’s spat
with BA and also his thoughts on the Lufthansa sale of BMI to
IAG.
HSBC heads off? –
International bank - and its staff - could soon be packing their
bags as the bank unveiled a set of poor results as revenues tumbled
36 per cent to £1.9 billion. The bank is seriously considering
shifting its headquarters if banking sector reforms weigh too
heavily on the bank, with worries the bank levy could cost the bank
over £1.5 billon on an annual basis (Sun p52, Mail p72, Times p49, Indie p58, Guardian p37, Telegraph b4, FT p19).
Insurer outsources staff –
Unite has attacked plans by insurer Friends Life over plans to
transfer 1,900 workers to an outside firm. David Fleming, Unite
national officer, said: “The 1,900 staff at Friends
Life now face another period of great uncertainty as the prospect
of a transfer to Diligenta is explored. Equally employees remaining
with Friends Life will face uncertainty as this company heads
remorselessly from one cost cutting exercise to
another.” (Mirror p63, Unite
release)
Admiral all at sea – Insurer
shocks city with surprise profit warning due to a spike in personal
injury claims wiping nearly £840 million off the company’s share, a
29 per cent fall (Mirror
p63, Sun p53, Express p74, Mail p75, Times p45, Guardian p40, Telegraph b10, FT p21).
Kesa sells Comet for £2 –
High street chain sold after parent Kesa said it had found a buyer
for the loss making business (Mirror p63, Sun p52, Express p74, Mail p73, Times p45, Indie p59, Guardian p35, Telegraph b3, FT p22).
Radiation and its risks – The
FT (p13) has an in depth analysis
over nuclear power and the risks of radiation and the possibility
of building new plants around the world.
NHS takeover – The Times (p5) and Telegraph (p1) report that a
private company to take over ‘failing’ UK hospital. Hinchingbrooke
Hospital in Cambridgeshire will be handed over to private
healthcare provider Circle today in what could be the first of many
instances of the private sector taking greater control of NHS
services.
Murdoch on the line – And
from one failed takeover to extra pressure on the Murdoch empire.
The once mighty media conglomerate continues to be buffeted about
hacking, spying and more and James Murdoch is up in front of the
Commons culture committee which wants to know if he misled
parliament when he previously gave evidence (Times p5, Indie p8-9, Guardian p17, Telegraph p2, FT p4).
Edited by Mik Sabiers
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