News digest 11 August 2010
A return to profit at Jaguar could be hit
by some production line problems, and in other transport news BAA
reports rising passenger traffic. There’s also a financial feel to
the day as Unite challenges imposed changes for branch managers at
HSBC, before growth forecasts are revised down, unemployment dips
and a fish fight may be about to break out…
Jaguar jumps – The Telegraph (b5) reports that
Jaguar Land Rover has returned to the black as better than expected
demand for the luxury carmaker’s vehicles drove the company into
profit. Sales increased by 60 per cent to 57,153 vehicles and the
company posted pre-tax profits of £233.8 million. The high demand
means that JLR now faces a shortage of engines, although a group of
Jaguar workers from the veneer centre have voted for industrial
action over a transfer from Birmingham to Coventry. The Mail (p67) also notes that Tata
is looking to build an Indian plant for its Land Rover brand to
cater to the Indian market, the company has also set its sights on
China.
BAA record – The highest ever
number of people flew via Heathrow last month as BAA announced its
traffic results. Heathrow saw a rise of 3.5 per cent, but other BAA
airports fared less well with Stansted seeing a 7.2 per cent fall
after capacity cuts by airlines. The BAA ballot result is expected
tomorrow (Express p57).
Air rage – And many papers
report on one way not to hand in your notice as a US air steward
made a rather dramatic exit – by emergency chute – after he was
abused by a passenger, he returned the compliment. The Indie (p4) highlights the
growing number of rude and abusive passengers piling pressure on
crew as airlines look to make crew work ever harder…
Banking challenge – Sweeping
changes to the terms and conditions of the bank’s branch managers
at HSBC are to be challenged by Unite. After the company said it
would impose changes to working hours and cut sick leave Unite has
written to the bank requesting a voluntary union recognition
agreement for the middle managers (Telegraph b2, Unite
press release).
Bonus tax – The Mail (p69) reports that Darling’s
one-off bonus tax raised more than six times the amount expected
generating £3.071 billion for the exchequer, government owned RBS
was fourth of 12 paying £277 million. Why not do it
again?
Bankers cut – But the
Times (p29) reports
that BarCap, the investment banking arm of the high street bank,
could be about to cut hundreds of jobs after a fall in market
activity…
But bosses benefit – While in
the Indie (p6-7) a
survey by the employment consultancy Hewitt New Bridge Street says
the average pay package of the UK’s top executives increased by
£500,000. The top gainer was Tom Albanese of Rio Tinto
and next was HSBC’s Michael Geoghan with a 240.4 per cent
rise. Many of the people that work for the companies these
executives run have faced pay freezes, increased workloads and job
cuts as their reward… did someone mention a bonus tax?
Bank forecasts – And the Bank
of England has revised its forecasts to take account of the
emergency budget. In a statement released today the bank’s
governor, Mervyn King, says the UK faces a “choppy recovery” as
growth forecasts for 2011 are downgraded by 0.9 per cent (BBC news)…
Unemployment dips - There was
however some good news in that unemployment again fell to 7.8 per
cent, although the rise was mainly driven by part time workers and
that it may soon peter out as the recovery weakens and the Mail (p1) notes there has been a
record rise in people in their 50s condemned to long term
unemployment with 170,000 job seekers over 50 unemployed for more
than 12 months.
Justice cuts – And a leaked
letter from the Ministry of Justice says that the £2 billion of
savings demanded by the treasury mean that 15,000 jobs will be at
risk, or 20 per cent of the workforce, so those unemployment
figures will quickly shoot up (Guardian p4).
Travel warning – Poor
confidence in the high street and fears over job security have seen
TUI – which owns Thomson Holidays – issue a results warning as
Brits stay at home for the holidays, the company still has 650,000
holidays to sell this summer (Telegraph b1), well at least the
Spanish air traffic controllers strike is off (Sun p9).
Gregg’s warning – The baker
has said prices at its chain of high street bakeries may have to
rise a few pence as it announced an increase in sales to £321
million, so it can’t be all bad (Mail p69).
Mackerel wars – The Indie (p13) reports on an echo
of the 1970s cod war as Iceland looks to land more mackerel, the EU
is looking at trade sanctions as tension rises…
BP deal – But the battle
between BP and Obama seems to have cooled as the company is nearing
a deal that would allow it to continue operating in the Mexican
gulf (Telegraph b1).
Green taxes – And the
Telegraph (p1) also
heralds a wave of green taxes and fines if UK firms fail to
register their energy use. They then pay for every ton of
greenhouse gas produced. Surveys have shown thousands of business
are unaware of the changes…
Marx’s inheritance – And
finally the Indie (p14)
is one of many papers that report on the wills of some of history’s
most eminent figures which have been released. Author Charles
Dickens left £80,000 (the equivalent of £7.1 million today) and
Joseph Bazalgette – who created London’s sewer system – left
£154,201 (£15 million). The Prussian born philosopher, theorist,
socialist and communist Karl Marx left £250 (£9,000), perhaps he
believed in distributing wealth, many more could learn from
him…
Edited by Mik Sabiers
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