News digest 13 October 2011
The digest opens with yet another rise in
unemployment, but the defence secretary still hangs onto his job.
Bombardier workers want the Thameslink deal reversed, while
Mandelson says government should intervene and the Lords are too
timid or tired to save the NHS, banks balk at capital demands while
BAA is fined over queues and there bad news in foods while bosses
use the fear factor to make staff work for free…
Unemployment at 17-year high
– Britain’s jobless total hit 2.57 million yesterday as the number
out of work rose by 114,000 between June and August. Unite general
secretary Len McCluskey said: ”The policies that David
Cameron is recklessly pursuing is akin to a drunken captain of an
ocean liner, steering straight towards the rocks, heedless of the
many warnings of the unwilling passengers. [The] unemployment
figures are a scandal, particularly for young people who are also
suffering record high unemployment levels.”
Jobless aged under 25 hit 991,000, a rate of 21.3 per cent,
public sector jobs fell by 110,000 while just 41,000 private sector
jobs were created and the number of women out of work rose to 1.07
million. Challenged by Labour leader Ed Miliband at PMQs prime
minister David Cameron refused to reverse the cuts and said it was
necessary to keep the UK’s credit rating (Mirror p8-9, Sun p10-11, Express p2, Mail p2, Times p6-7, Indie p11, Guardian p2/32-33, Telegraph p20/b2, FT p3, Morning Star p1/3,
Unite
release).
UK’s credit raring ‘at risk of
downgrade’ – Strangely enough the Mail (p73) and Telegraph (b3) report Legal &
General Investment Management said a downgrade of the UK’s AAA
credit rating is at ‘severe risk’ because government debt is on ‘an
explosive path’ as its estimates official growth forecasts are
unrealistic.
Fox’s friends attack ‘aide’ –
The battle to save defence secretary Liam Fox started to unravel as
his friends started to distance themselves from Adam Werritty while
some papers tried to stir up unsubstantiated rumours over the
closeness of the relationship between Fox and his friends. All the
papers again feature coverage and in a sign that the story is
taking over from his duties yesterday Fox had to cancel a press
conference in Paris. Interestingly Werritty is called a ‘Walter
Mitty’ character by these so called aides, a phrase that David
Cameron also used at PMQs, could the briefings be from closer to
home? (Mirror p7, Sun p8, Express p7, Mail p6-7, Times p1/12-13, Indie p2-3, Guardian p1/4-6, Telegraph p1/4, FT p1, Morning Star p3)
Lords refuse to rescue the
NHS – The so-called revising chamber of parliament
yesterday instead voted to back the government’s Health and Social
Care bill rather than listen to the hundreds of thousands of people
that called for greater scrutiny. Only two Lib Dem peers voted
against the government as Labour signalled the battle against the
bill will continue as it progresses through parliament (Mirror p6, Times p8/31, Indie p1, Guardian p23, Telegraph p6, FT p2, Morning Star p3).
Train fight still on track –
Bombardier workers got the backing of both Labour and Tory MPs as
they took their jobs fight back to Westminster and called on
transport secretary Philip Hammond to rethink the deal and award it
to Britain’s last train maker (Mirror p19, Sun p50, Express p2, Morning Star p5).
The state should invest in
industry – Talking of which the Indie (p61) features an
interview with former business secretary Peter Mandelson who
continues to highlight the benefits of an active industrial policy
and argues how government can make a difference to industry without
having to pick winners.
News Aslef leader – And the
Morning Star (p5)
reports that Mick Whelan was elected leader of the railway workers’
union Aslef, beating Simon Weller by just over 200 votes.
Vanishing seats - From
winners to losers and the Sun (p2) and FT (2) report a couple of the papers
report on the boundary changes to Scottish constituencies which
could see Labour’s Douglas Alexander, the Lib-Dems Danny Alexander
and the only Tory MP David Mundell all losing their seats.
Pension age climb-down – The
Mirror (p9) and Express (p1) report that prime
minister David Cameron has paved the way for a climb-down on plans
to raise the pension age for women as he indicated the government
was looking at ‘transitional arrangements’ although fears remain
they will not go far enough.
Pensions ripe for misselling
– And the Times (p45)
reports that ‘bad guys’ are expected to prosper from the
government’s proposals for compulsory workplace pensions while the
Mail (p19) lays into
public sector pensions in local government creating a mythical cost
to council tax payers.
Rents raised – And the
Mirror (p9) reports that the
housing crisis is worsening as housing costs spiral and people are
having to move to cheaper areas away from family and
friends.
Occupy the City – The
Sun (p51) and Mail (p25) report the Occupy
campaign is to cross the Atlantic to London with plans for hundreds
of protesters to march on the streets near the London Stock
Exchange this Saturday.
Banks balk at capital demands
– Top European banks have indicated that they would consider
selling assets rather than raising new capital if compulsory
demands from the EU increase the capital they need to hold too far.
EU commission president Jose Manuel Barroso is trying to soften up
banks as the EU looks at ways to boost the size of the bailout
fund, although Merkel and Sarkozy are still struggling to agree
(Sun p2, Express p, Mail p73, Times p50, Indie p58, Guardian p35, Telegraph b1, FT p1/4).
BAE squeezed in states – Back
to business and US defence budget cuts are expected to dent the
defence giant’s performance (Express p51, Mail p75, Indie p62, FT p19).
BAA fined over queues – And
slow moving security lines have seen the airport operator hit with
a £500,000 fine from the Civil Aviation Authority after figures
provided by BAA did not match those taken by auditors (Times p25, Indie p26, Telegraph p11).
Aer Lingus may allow special
dividends – The FT (p19)
reports the Irish airline has asked shareholders to approve
technical adjustments to the balance sheet that would enable it to
pay special dividends in future.
Rolls-Royce agrees engine
tie–up – The Telegraph (b2) reports
Rolls-Royce has agreed a deal with US engine maker Pratt &
Whitney to build engines for mid-sized passenger planes.
PepsiCo resists split– The
FT (p22) also reports that the
board of the soft drinks giant is confident of resisting pressure
to split in two despite similar moves by rivals like Kraft.
Premier pops – The FT (p18) says Premier Foods share price
fell 19 per cent yesterday after a broker downgraded the target
price for the company to a penny-per-share due to its debts of
close to £1 billion.
Northern gloom – The Times (p45) says Northern Foods
has reported a full year loss of £13.2 million.
Fighting for Farepak debate –
Victims of the Farepak scandal want to force a debate on the
collapse of the hamper company as more than 120,00 people are still
out of pocket to the tune of £36.9 million (Mail p73, Morning Star p3).
Working for free – And
finally the Mirror (p58)
reports that bosses are taking advantage of the downturn and the
resultant ‘fear factor’ of people scared about losing their jobs.
According to a report by Aviva millions of workers are putting in
unpaid overtime with a survey saying 60 per cent of employees work
90 minutes or more than their set hours with 40 per cent saying
their boss kept loading them with more work…
Edited by Mik
Sabiers
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