News digest 18 August 2011
The digest opens with a faster than
expected rise in unemployment and new that there is more chance of
a double dip. There’s tough justice for rioters, and hackgate
remains in the headlines. As the bank holiday approaches so does
rail chaos, but Virgin goes from strength to strength, Europe is
still in economic trouble while advice on pensions is poor,
although consultants serving the MoD are in the money while Europe
looks to Australia for a drink, as Russia decides that Carlsberg is
probably not the best lager in the world…
Dole queues lengthen – The
jobless total almost hit the 2.5 million mark as unemployment rose
by 38,100 in the three months to June, almost four times higher
than expected, and an extra 37,100 people claimed jobseekers
allowance last month. Unemployment among women has soared to its
highest level since Thatcher was in power and youth unemployment is
close to one million, or 1 in 5 of all young people are without
work. A few of the papers also focus on the fact that of new jobs
created in the last year many have gone to foreign workers. Unite
general secretary Len McCluskey said: "George Osborne's
disastrous economic policies will put Britain in a coma and it will
to take a lot more than a few enterprise zones to wake the country
up. As the cuts continue to bite things can only get worse
... unemployment is going up, growth is flat and business
investment has fallen. The coalition government and the deficit
hawks need to look at alternatives that boost the
economy." (Mirror p1/15, Sun p2, Express p1/2, Mail p8, Times p14-15, Indie p1/4-5, Guardian p5, Telegraph p2/b1, FT p1/3, Morning Star p4, Unite
release)
On way to double dip – The
Telegraph (b1) reports on
tables from the Bank of England which show that it is now more
pessimistic about the UK economy than when the country was in
recession, and the bank thinks there is now a 10 per cent chance of
a double dip in the UK economy.
No rise in interest rates –
And many of the papers also report on the news that hawks in the
Bank of England have abandoned calls for a rise in interest rates
as the Monetary Policy Committee voted unanimously to keep interest
rates on hold earlier this month, in fact the next move may be
downwards (Sun p43, Express p2, Mail p65, Times p33, Indie p34, Guardian p29, Telegraph b1, FT p1).
Tough or rough justice – Most
of the focus on the aftermath of the riots is again on sentences
and whether they are too harsh. Cameron is told to leave sentencing
to the courts and some papers expect a host of appeals. The
Indie (p9) contrasts
cases that are riot and non-riot related highlighting the four
years for creating a Facebook page with a sentence equivalent to
that of a heroin dealer caught with drugs to the value of £1.3
million, another woman was jailed for six months for stealing a
£3.50 bottle of water. Elsewhere a sit in to try and prevent the
first eviction of a family due to involvement of one member is
expected to be staged in Wandsworth today as more rough justice is
meted out, very few are asking what the long term repercussions of
knee jerk reactions will be? (Mirror p6-8, Sun p6-7, Express p4-5, Mail p10-11, Times p6-9, Indie p1/8-9, Guardian p1/4-7, Telegraph p1/10, FT p2, Morning Star p1/5)
Lies, dirty tricks and a
dominatrix – Hackgate continues with the Indie (p2-3) interviewing the
former dominatrix Natalie Rowe who was involved in a tabloid sting
about chancellor George Osborne who claims she was hacked by the
News of the World. Some of the papers also report that former Met
chief Sir Paul Stephenson was cleared of any misconduct in the
phone hacking enquiry while Cameron calls into question his own
judgment saying he would not have hired Coulson if he had
“known all the things I know now”, begs
the questions did he bother asking any questions before he hired
Coulson… (Sun p2, Mail p12, Times p13, Guardian p14-15, Telegraph p4/b1)
Extra questions – And energy
secretary Chris Huhne is back in the hot seat as many papers report
that the CPS has asked Essex police to provide further details
relating to allegations that he asked his then wife to take his
speeding points (Mirror p4,
Express p2, Mail p8, Times p4, Guardian p9, Telegraph p15, FT p2).
Turbines to be made in Kent?
– Also on the energy front and the Guardian (p30) reports wind
turbine manufacturer Vestas has confirmed that it is considering
building a factory in Britain within the next year once it has
gained sufficient orders for its news offshore wind turbine. Up to
2,000 jobs could be created in Sheerness, Kent if the orders come
through.
Oil leak worsens – Shell
admits leak could be four times worse than initial estimates; some
200 tonnes have leaked but fears there may be another 660 tonnes in
the affected pipeline (Guardian p9, Telegraph b4, FT p2).
Uproar over energy price
hikes – The FT (p3)
reports that the political climate turns against the ‘big six’
utilities as Labour starts to look to force suppliers to auction
off more of their electricity on the wholesale market as a means to
reduce price levels for angry consumers (Morning Star p3).
Rolls-Royce roars but Bombardier in
the balance – The Guardian (p33) finishes its
special report on Made In Britain contrasting the success of
Rolls-Royce and asks why the government can’t back Bombardier which
is to rail what Rolls-Royce is to the aerospace sector?
Yet more rail chaos – And as
the bank holiday approaches the Telegraph (p6) is first to
highlight more chaos on the tracks as more than 3,000 replacement
buses will be in place the weekend after next.
On the up – But while
travellers struggle its good news for Virgin Trains as the operator
reported a rise in revenues of 11 per cent to £753 million for the
year to March (Mail p19,
Indie p37, Telegraph b2).
Up, up and away - Exeter
based budget airline FlyBe saw 8.3 per cent rise in revenues to
£160.4 million in the last quarter (Sun p43, Express p54, Mail p67, Indie p38, FT p16).
Take care – And still in
aviation the Indie
(p35) says Virgin Atlantic is reported to be introducing emotional
warnings for in-flight films. ‘Tearjerkers’ will be supposedly be
signposted; there’s no news if Air France will follow suit after
actor Gerard Depardieu’s latest variation on in-flight
entertainment (all papers).
Hail a Chinese cab – Still on
transport and the Express
(p54) and Telegraph (b2)
report that black cab maker Manganese Bronze has signed a deal with
Shanghai partner Geely – which makes black cabs and other vehicles
– to distribute the Chinese maker’s vehicles in the UK.
Get on the bus – The Sun (p26-27) takes what it call the
trip of a lifetime on a 11A bus round trip that goes all the way
around Birmingham, the route was named a must see tour by travel
magazine Hidden Europe.
On the way down – Talking of
Europe and the fall out from the EU summit continues as stock
markets remain spooked by the threat of a Tobin tax on financial
transactions as well as whether EU leaders have done enough to stem
the pressure on eurozone finances (Express p51, Mail p2, Times p39, Indie p30, Guardian p29, Telegraph b1, FT p5).
Tainted advice – From the
eurozone to personal finances and the Mail (p1) splashes on a report by
accountants KPMG that says one in four employees has now been lured
by the promise of thousands of pounds to abandon their gold-plated
final salary pensions while the Mirror (p43) and Mail (p20) report that mortgage
arrangement fees have rocketed by 20 per cent in the past year as
banks use the arrangement fees to bankroll flattering interest
rates.
Overcharged? – And on to
government savings and the Times (p17) reports that the
MoD is paying advisers up to £5,000 a day on how to cut costs, the
more usual – and still high - rate for expert advice is half
that.
Where have they gone? – The
Mail (p4) looks at the
‘bonfire’ of the quangos one year on and notes that while 200 were
lined up for the chop, just 49 have actually been abolished.
Action required – Sir James
Dyson is interviewed in the Mail (p66) where he blasts city
bankers for ruining the economy and said cultural change was
needed to make Britain a great manufacturing nation and stresses
innovation and the success of his bladeless fans.
Scottish Power to create 1,500
jobs – Building on the need for renewables the Scottish
energy group Workers needed for upgrade to group’s electricity
network over next decade (Mail p66, FT p2).
Time for some amber nectar -
SABMiller tries to snap up Foster’s. European brewer launches
hostile bid for Australian Foster’s Group by making direct £6
billion offer to shareholders (Sun p43, Express p54, Mail p67, Times p39, Indie p36, Guardian p31, Telegraph b4, FT p14/15).
East loses interest in
Carlsberg – And finally a blow to the Danish brewer as its
shares fell almost 17 per cent yesterday following news that
drinkers in Russia – which account for 40 per cent of its sales -
deserted the brand after hike in prices; well it has been two years
since this correspondent was last in Moscow (Times p39, Guardian p31, Telegraph b2, FT p19).
Edited by Mik Sabiers
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