News digest 22 August 2011
The digest starts with a backlash for the
Tories over the Bombardier betrayal before its back to the riots
and Blair wades in. Cameron goes on another holiday and then
promptly comes back while market sentiment is worsening, UK
productivity is falling, bosses are in a bad mood, consumer
confidence is crashing, families face financial pressure but
Osborne thinks the UK is a safe haven. Elsewhere Lansley thinks its
time to replace the NHS with an app, council chiefs are getting pay
rises, but bins are not being collected, there’s a pay row at
Stagecoach, Autonomy is against a Cadbury law and while Foster’s
tries to butter up its shareholders ex business secretary Peter
Mandelson is looking for a new home…
Ballot box backlash over
Bombardier – A
Survation poll published in today’s Mirror (p11) shows that the betrayal
over Bombardier could derail the re-election hopes of the Con-Dem
government after voters in the area backed the local Labour MP for
Derby North while saying they would turf out South Derbyshire Tory
MP Heather Wheeler. Unite general secretary Len McCluskey said:
"Voters are united on this - they want the government
to do what is the best for Britain. In the case of Bombardier
they are clear that this means thinking again on the Thameslink
contract.”(Guardian p22, Morning Star p1/5,
Unite
release)
Riots: Blair wades in –
Former prime minister Tony Blair castigates David Cameron over his
‘Broken Britain’ argument and the Con-Dem’s poor response to the
riots, although there is less coverage than in recent days
(Mirror p6, Sun p19, Express p7, Mail p8, Indie p10/18-19, Guardian p10-12, Morning Star p2).
Back from holiday – No sooner
has David Cameron shot off to Cornwall for another bout of holiday
relaxation (Mirror p11,
Express p5, Mail p25, Times p3, Indie p7, Guardian p12) - having hoped to
leave deputy Nick Clegg in charge to deal with events in
Libya and elsewhere (FT p2) – then
he has rushed back to London to deal with the developments in Libya
last night.
Tripoli almost taken – Rebels
enter Libyan capital amidst fierce fighting as end game nears, main
focus remains on Libya but unrest in Israel is looking precarious
with possibility of foreign action to deal with domestic troubles
(Mirror p1/4-5, Sun p1/7, Express p4, Mail p1/6, Times p1/4-7, Indie p1-3, Guardian p1-2/4-5, Telegraph p1/4-5, FT p2, Morning Star p7).
China’s five year
plan – The Telegraph (b5) starts a new
series on the Chinese economy looking at opportunities for UK and
foreign companies as the country’s economic ‘miracle’
continues.
Market jitters – Investors
and traders are braced for another week of turmoil on the markets
as concerns over the eurozone debt crisis and a global downturn
weigh on sentiment. Germany’s chancellor Angela Merkel is still
against the idea of eurobonds and argued that the solution was to
slash public debt and boost competitiveness (Express p44, Mail p2, Indie p31, Guardian p21, Telegraph p1/b1, FT p1).
Failing to compete – The
Sun (p2) and Times (p36) report that
Britain’s workers are less productive than their counterparts in
the US, France and Germany according to a report from the IPPR.
Hopes of an export led recovery were dealt a blow after a survey by
Barclays Corporate showed nearly three quarters of firms have no
plans to do business overseas in the next decade.
Factory price rises – The
Indie (p32) reports
British manufacturers are struggling against soaring material
prices according to a report from the EEF.
Bosses confidence at two year
low – The Mail
(p54) and Times (p36)
report business confidence at its lowest ebb since summer 2009. UK
business confidence monitor dipped from 13.7 to 8.1 over the third
quarter with the government saying regulation is the problem.
Pensions under pressure –
Some £250 billion has been wiped off pension funds as a result of
the debt crisis (Times p31, FT p1/15).
Family finances under
pressure – Household finances are under greater strain now
than at the height of the recession according to new figures issued
today, the Markit report says nearly 40 per cent of households have
seen their financial position worsen in the past month (Sun p8, Indie p4, Guardian p21).
Safe haven risk – Chancellor
Osborne accused of complacency after his claim that the British
economy is a ‘safe haven’ after recent economic indicators show the
economy has stalled (Times p8, FT p3).
More spent on sackings than finding
work for young people – The Mirror (p13) reports that the
Department for Work and Pensions spent £60 million trying to help
16-24 years olds in to work, but at the same time it spent £71
million making 1,563 people redundant.
Easy GCSEs – Quite a few
papers claim that education is easier as figures show the number of
students taking five core subjects including English, maths, two
sciences, a humanity and a language fell from 50 to 22 per cent
between 1997 and 2010 (Sun p2, Express p2, Mail p12, Telegraph p2).
Replace the NHS with an app –
The Times (p17) says
secretary of state Andrew Lansley will say the NHS should start
using smartphone apps to treat and manage patients, but the stress
is to be on patients monitoring their own health and taking
remedial action.
End time off – The Tories are
banging the anti-union drum again this time with Tory backbencher
Dominic Raab who claims union reps in the Home Office are being
given time off – and £7 million - to campaign against police cuts
(Express p30, Mail p4).
Council chiefs see pay rises
– The Telegraph (p1)
reports that two thirds of Britain’s highest paid council chiefs
won pay rises last year despite government orders to slash their
salaries.
Bin and gone – The Mirror (p17) reports more than half
of all households no longer have weekly bin collections as 21
councils have axed weekly services since the Con-Dem coalition took
power.
Charge for delays – Councils
to be encouraged to declare war on utility companies that dig up
busy roads during rush hour (Indie p14, FT p2).
New single seater car – The
FT (p13) reports that Volkswagen
plans to reveal a zero-emission a single-seater car within the next
two weeks.
Stagecoach pay row – The
Telegraph (b1) reports
that PIRC, a leading investor group, is urging shareholders to vote
against company pay package.
Lloyds wants rules relaxed –
The FT p13) reports that Lloyds is
in talks with regulator to lighten the capital burden for potential
buyers of its branch network.
Autonomy against Cadbury law
– The Guardian (p22)
reports that the boss of IT group Autonomy, Mike Lynch, says that
there is no need for a Cadbury law to restrict foreign takeovers of
UK companies. Surely nothing to do with the £7.1 billion takeover
of his business by HP which will probably see him benefit
handsomely, but what about hostile takeovers?
Foster’s to up dividend – The
Telegraph (b1) reports
the drinks firm is preparing to dole out cash payouts to
shareholders in an attempt to stave of SABMiller’s hostile bid.
Shell plugs leak – Government
inspectors are now preparing to interview key players involved in
the North Sea oil leak which was sealed last Friday (Telegraph b3).
A new home for Peter – And
finally Peter Mandelson – who was forced to leave government back
in 1998 over a loan to buy a London home – is reported to have
offered £8 million for an exclusive townhouse in London. So much
for once bitten, twice shy (Mirror p4, Sun p2, Express p27, Mail p13, Telegraph p9, Morning Star p5).
Edited by Mik
Sabiers
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