News digest 18 March 2011
The digest starts with a foreign focus
again as Libya is added to the tragedy in Japan. Back in the UK and
falling consumer confidence see economic clouds darkening, UK
pensions are paltry, Lloyds cuts more jobs, loss making RBS
provides bigger bonuses, Cable cuts time for training and BA ramps
up Atlantic flights...
War on Gaddafi – UN agrees no
fly zone over Libya – with multiple abstentions – which could see
air strikes against Libyan air forces - and also air defences
on the ground – start shortly unless Gaddafi agrees to a ceasefire.
Can the UK afford it with the deficit and is Cameron falling into
the trap of using foreign affairs to deflect domestic troubles and
being defined by anything other than cuts? (Mirror p8, Sun p1/4-5, Express p2, Mail p1, Times p1/6-7, Indie p1-6, Guardian p1-3, Telegraph p1, FT p1).
Japan still in crisis –
Workers are still trying to save the nuclear reactor as foreign
countries call on their nationals to leave Tokyo and the crisis
enters its second week. On behalf of union members working in the
civil nuclear industry in the UK Unite has sent a message of
support and solidarity to Japanese colleagues battling the very
challenging environment. A ‘suicide squad’ continues to try to cool
the reactors as radiation levels continue to spike (Mirror p4-7, Sun p8-9, Express p9, Mail p8-11, Times p12-15, Indie p8-11, Guardian p4-7, Telegraph p1-5, FT p1/6, Morning Star p, Unite
release).
Slump in consumer confidence
– The Telegraph (b1)
reports the worst consumer confidence figures since records began
in May 2004 as Osborne’s actions blamed for driving confidence
levels to below that of during the recession, increasingly
households expect to rein back spending and try to save more
especially with the inflation outlook. The Indie has an interview with
Alistair Darling showing how close to the brink the UK banking
industry was. The Times
(p39) quotes deputy governor of the Bank of England Charlie Bean as
saying the recovery is under threat – saying these are ‘hazardous
times’ especially if interest rates rise while in the Indie (p35) the FSA says
interest rate rises should worry banks as customers struggle with
the squeeze on earnings, pay freezes or cuts and higher pension
contributions…
Paltry pensions – The
Express (p4) and Mail (p6) both report on an
international survey of pensions, the UK has the third worst
pension standing at just 31.9 per cent of the average salary, only
Mexico and Ireland have worse ones, while Saudi Arabia comes top,
closely followed by Iceland and Greece. Effectively unless you have
substantial savings when you retire your standard of living will
drop by two thirds…
Premium pay off – The
Mail (p35) reports former
South Somerset chief executive Philip Dolan has disputed claims
that he received a £500,000 pay off when his job was merged with
the neighbouring authority; he only got £429,000. It is expected to
take three years for the council to recoup the payoff in terms of
overall savings…
Lloyds lay offs – And yet
more Lloyds Banking Group jobs go even though the company boasted
£2.2 billion in profits just days ago. Said Unite’s David Fleming:
“The news that Lloyds Banking Group is to cut a further
570 jobs and outsource another 600 jobs will be met with despair by
the bank’s staff … this decision represents a total failure by
Lloyds to recognise that this turnaround is the outcome of the work
of its staff.” (Mirror p14, Sun p46, Express p17, Mail p81, Times p43, Indie p40, Guardian p29, Telegraph b2, Unite
release).
RBS bonanza – 323 senior
bankers pocket £375 million pool of bonuses with top earner Ellen
Alemany who heads up the loss making US business, she takes away
£5.9 million. RBS is 83 per cent state owned and the bank lost £1.7
billion last year, after losses of £3.6 billion in 2009 and £35
billion in 2008. Can you find a clearer case of rewarding failure?
(Mirror p14, Sun p6, Express p17, Mail p6, Times p43, Indie p35, Guardian p28, Telegraph b1, FT p20).
MoD jobs could be saved –
Back to government and defence secretary Liam Fox tells unions that
he is looking for alternative ways to cut costs defence costs which
could save up to a third of the 25,000 civilian jobs in danger
(Guardian p18).
No time off for training –
And Lib Dem Vince Cable expected to announce the right to request
time off for training in small firms is to be removed, that will
really help upskill the UK workforce (Mirror p19, Mail p2, Times p43, Indie p13, Guardian p11, Telegraph b1, FT p1, Unite
release).
Supply chain concerns – As
the Sun (p20) and Express (p13) report that fuel
prices are still rising, and the (Indie p41) said UK car
production jumped 15 per cent in February, there are fears that the
ongoing crisis in Japan could see shortages of components bringing
production to a halt, although the main carmakers have enough stock
for six weeks and are looking for alternative supplies (Telegraph b1/5, FT p20).
Ghosn under scrutiny – After
the spying row the head of Renault, Carlos Ghosn, is being closely
watched by the French government, the carmaker’s largest
shareholder (FT p24).
Airbus probe – And the
FT (p24) reports that the
Franco-German aircraft maker has now been placed under formal
investigation over the crash of an Air France passenger jet in
2009.
Hourly to New York – And the
Times (p47) and
Guardian (p29) highlight
the news that BA and American Airlines have now integrated their
transatlantic schedules, meaning flights will leave Heathrow every
hour between 1pm and 8pm as the airlines create a transatlantic
shuttle service, no more red-eye…
Ed’ache? – From red eye to
red Ed, according to the Sun
(p2) and FT (p10) one person who
may want to get away from it all is Ed Miliband who has come out
worst in a poll of party leaders. Cameron continues to command the
top spot with 47 per cent liking him, while only 36 per cent liked
Miliband. The research shows Clegg was liked by 40 per cent, hmm,
what’s the phrase - lies, damned lies and statistics….
Edited by Mik Sabiers
Subscribe to this post's comments using
RSS
Comments
