News digest 27 August 2010
It’s a political start to the digest as
there’s more on the Labour leadership and questions over cash for
access to the Conservatives. There’s a bit of trouble in the
transport sector, but some good news in the air before cuts come
back on the agenda even as many companies are reporting good rises
in profits.
Labour leadership – The
Mirror (p6-7) has an
interview with Unite backed Ed Miliband; last night Unite sent an
email urging its 400,000 eligible members to vote for Ed Miliband
for the leadership. Meanwhile the Guardian (p14) reports that the
other three candidates are turning their fire on the Miliband
brothers as the contest seems more of a two horse race in the final
days of the campaign.
Double dip danger – On the
back of a revised increase in GDP figures this morning - the UK
economy grew by 1.2 per cent in the second quarter – Ed Balls has
warned of the danger of a double-dip due to Osborne’s regressive
budget (Guardian p14).
Many papers report on the improved company figures, but the
Telegraph (b1) cautions
theire is likely to be an economic storm ahead, go figure.
Dine with Dave – As runaway
tycoon – and former Tory party donor Asil Nadir returns to face the
music after a 17 year exile - the cash for access row rumbles on.
The Mail (p2) reports
that for £50,000 donors can dine with Dave, no mention of how much
more you have to pay not to dine with him…
Migration watch – The latest
figures show that 196,000 people came to the UK last year making
the country one of the most densely populated in Europe. The 20 per
cent rise in net migration saw a surge of foreign students, but
with warnings of skills shortages business secretary Cable has
called for caution about border controls. The FT (p3) however says that Cameron will be
under pressure to reveal details of his proposed cap, suppose he
could just close all the ports…
Don’t sell
Dover – Talking of which Unite’s submission to the
consultation on the future for Dover Port challenges the government
to keep the port in the public sector. Julia Long, Unite national
officer, stated: “The proposed privatisation of Dover is against
the national interest. It is a disastrous idea and should
proceed no further. The UK is an island nation. We need a
first class sea port like Dover to be in public hands. There is
simply too much at stake to leave the running of this vital link to
Europe in the hands of those who will milk this national treasure
for profits at the expense of the travelling public and British
commerce.” (Unite
press release)
Rail rumpus – And there’s
more trouble on the tracks as the Guardian (p28) reports that chief
exec Ian Coucher has been cleared in an internal enquiry over
expenses, while the board and chairman are not seeing eye to eye.
The Telegraph (b3)
reports that the former rail regulator Tom Watson claims the
company is not working and should be broken up as a precursor to
privatisation, don’t seem to remember that working too well for
privatised rail services…
SAIC eyes GM – Chinese car
manufacturing group is expected to invest in GM shares when the
planned float happens, although GM is looking at ways to bar
hostile takeovers (FT p18).
Toyota Corolla
recall – While yet more bad news for Toyota as it
announces it needs to recall 1.1 million vehicles in the US over
issues of a crack in solder points (Sun p29).
Virgin spreads its wings –
But better news in the air – and despite the general 11 per cent
fall in UK air transport in the first quarter – Virgin Atlantic has
said it plans to increase its Caribbean flights by 20 per cent from
next year. Overall aviation figures show global passenger demand
jumped by 9.2 per cent in July (Indie p31).
Jet engine trouble – A patent
dispute between Rolls-Royce Engines and Pratt & Whitney is
heading for the courts (FT
p13).
Pilot error- And the Sun (p17) also reports on a pilot
with fat finger syndrome. Shocked passengers on a BA flight were
soothed by cabin crew after the pilot pressed the wrong button and
an automated announcement said the plane would have to make an
emergency landing in the sea. BA has apologised for the ‘undue
distress’.
More job cuts – Most of the
papers follow up on the cuts at RBS, the company is to close half
its insurance offices, Glasgow, Peterborough and Bristol all hit
(Mail p93).
Voluntary cuts – And the
Guardian (p14) paints
Cameron’s big society as a complete con as an audit by the Labour
party shows that the government is cutting £734 million from
voluntary projects.
Contract changes – And the
FBU is to begin balloting London fire-fighters over forced changes
to contracts, ballot result on 17 September (Morning Star p3).
No safety in offices – And
Lord Young pre-empts his report into health and safety saying
safety laws are costing jobs and that they are needed in hazardous
industries, but not in offices, classrooms and shops, nice
(Telegraph p6).
Argos
outlook – Back on the high street the Guardian (p33) has an interview
with the Argos managing director Sara Weller on her plans to turn
the group around.
HP ups bid – The continuing
jostle for cloud computing company 3Par sees HP up its bid to $27,
higher than Dell’s latest $24.30 offer (Times p49).
Another good bet – Back in
the City William Hill has reported a 13 per cent jump in profits to
£103 million (Mirror
p76).
Diageo jump – And drinks
group Diageo also reported a 12 per cent rise in profits to £2.2
billion, the company gained from a wage freeze as well as expansion
in export markets, especially for Johnnie Walker whisky which was
the best performer for the group, so good they shut the plant
(FT p14).
Co-op cheer – And the Co-op
has announced a 17 per cent increase in profits to £260 million,
but according to the Sun
(p60) its forecasts gloom ahead with no recovery for the UK economy
before 2011.
IMI high – And engineering
group IMI Norgren saw a 68 per cent jump in profits to £133.5
million, gaining from a restructuring (Telegraph b3).
New oil industry – No not a
new invention, but a shift in priorities. The days of big oil
companies may be over as companies are now looking to set up
different vehicles covering riskier exploration or the more stable
growing field exploitation (FT
feature p15).
Strike breaking – And finally
on the international front the friction between South Africa’s
government and unions could see the alliance between the two groups
break down, 1.3 million state workers are on their ninth day of
strikes and Cosatu – South Africa’s equivalent of the TUC – has
said it has filed notices for strike action in the manufacturing
and mining sector. Unions are demanding an 8.6 per cent pay rise
(Guardian p27).
Edited by Mik
Sabiers
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