News digest 6 May 2011
Lots happening in today’s digest, the
election results are still coming in and it’s bad news for the Lib
Dems, but also not so good for all of us as the economy faces more
pressures, fights over strikes could be breaking out on the tube,
but there’s good news for the motor industry, but bad for Flybe as
shares take a dive, Lloyds racks up more losses over PPI, while
Thanet Earth is challenged over working conditions as commodities
see falls, and could Clegg learn from Tommy Cooper…
It’s a wipe-out – Bad news
for Lib Dems across England as the election results show whole
scale losses. Clegg was routed in his back yard with Labour winning
control of Sheffield, Labour also gained Hull, Bolton, Lincoln and
Hyndburn councils and took North Warwickshire from the Tories.
Early results point to heavy losses for the Liberal Democrats in
the English councils, but the Tories have held their ground in
England. Not so good news for Labour in Scotland where disaffected
Lib Dems have switched to the SNP who could be on course for an
overall majority. Labour have made gains in Wales, with Plaid
Cymru's deputy leader losing her seat in Llanelli although chances
for Labour to gain a majority are on a knife edge. There is also a
by-election in Leicester South and mayoral contests in Leicester,
Mansfield, Middlesbrough, Torbay and Bedford all expected to be
declared later today (Sun
p4, Express p4, Mail p6-7, Times p1/12-13, Indie p8-9, Guardian p3, Telegraph p1/6, FT p3).
Tiny turnout? – The AV result
is also not expected until later today, but with estimates of just
a 20 per cent turnout all indications point to a ‘no’ kicking any
chance of electoral reform into touch for another generation
(Sun p4, Express p4, Mail p6-7, Times p1/12-13, Indie p8-9, Guardian p1/4-5, Telegraph p6, FT p1).
Staying on hold – Monetary
Policy Committee leaves interest rates unchanged at 0.5 per cent
(Indie p37, Guardian p29, FT p4).
Activity slows – After the
slowing confidence in manufacturing earlier this week the latest
data shows a slump in the services sector as the cuts start to
bite. High street retailers are also becoming increasingly
concerned about consumer confidence; could this mean the economy is
headed for a prolonged slump? (Sun p2, Times p42, FT p4)
No future – The Morning Star (p1) leads
with a swift U-turn by health minister Simon Burns who contradicted
himself over the possible sell-off of St Helens & Knowsley NHS
Trust which is in the midst of a cash crisis. Local Labour MP Dave
Watts challenged the minister brandishing a leaked document that
showed a joint venture with a private provider was one of the
options being considered, the hospital is high performing but has
been hit by having to pay high PFI costs as well as £20 million in
cuts.
Olympic emergency – And the
Guardian (p15) reports
that the Health protection Agency, due to be abolished next year,
says emergency services may be hit if there are serious incidents
during the London Olympics. With the Con-Dem cuts health
professionals are also exiting NHS trusts leading to concerns for
public health and safety just as the world’s eyes focus on
London.
Fisticuffs on the tube – A
few of the papers continue the coverage of Boris Johnson’s call for
a majority ballot for strikes as Transport secretary Phillip
Hammond is said to want to get London Underground to agree a no
strike deal with the RMT, the idea would be to offer a bribe of an
above inflation pay rise, but he then says that legislation may be
needed saying that union’s seem to be “spoiling for a
fight.” The CBI also wades in and is joined by Tebbit
who introduced Thatcher’s strike laws (Sun p2, Mail p5, Telegraph p8).
Overtaking Toyota – From
trains to cars and General Motors reported a trebling in profits
for the first three months of the year. The company hopes to oust
Toyota as the world’s biggest car producer just two years after
filing for bankruptcy (Telegraph b8, FT p17).
Research the key – The
FT (p17) says Jaguar Land Rover
will invest £5 billion in a new quality drive as it aims to catch
up with its leading German rivals, the money is to be spent mainly
on product development and new equipment at the company’s three UK
plants.
Carrier trouble – And from
cars to planes and Flybe shares dived 25 per cent yesterday after
the airline issued a profits warning saying it faced pressures from
slowing consumer spending, taxes on travel and high oil prices
(Sun p48, Express p65, Mail p74, Times p45, Guardian p32, Telegraph b3, FT p18).
Lloyds’ losses – And shares
in Lloyds also dipped after the state supported bank said it will
take a £3.2 billion charge to refund customers who were forced to
buy payment protection insurance. Analysts have downgraded profit
forecasts for the bank with concerns that it may not end the year
in profit, pushing back the timing of any likely sale of the
government’s 41 per cent stake (Sun p48, Express p65, Mail p19, Times p41, Indie p22, Guardian p31, Telegraph b1, FT p1/19).
Eyeing up Northern Rock – The
mutual Yorkshire building society has added to government pressure
for the remutualisation of Northern Rock after is said it is
interested in the bank (Times p47, Guardian p33).
Go back to the drawing board
– Is the call from Vivian Robinson QC, the Serious Fraud Office’s
senior counsel who resigned this week. He says government plans to
split the SFO are both ‘dangerous’ and ‘disastrous’ and could
disrupt ore than 10 fraud cases on the body’s books at the moment
(Times p47).
Good results for Morrison –
Away from banking and there’s some good news from supermarket
Morrison which has reported a 2.5 per cent rise in sales, beating
expectations in a tough market (Sun p48, Express p68, Mail p74, Times p49, Indie p40, Guardian p32, Telegraph b3, FT p20).
Bad practice at Thanet Earth
– And Unite steps up its campaign against alleged exploitation at
Kent based supermarket supplier Thanet Earth which provides fruit
and veg to leading supermarkets. Unite has submitted evidence to
the Ethical Trading Initiative and Gangmasters Licensing Authority
about poor working conditions. Sharon Graham, Unite's director of
organising, summed up the campaign: "Thanet Earth and
its supermarket buyers need to engage with Unite over the alleged
abuses of workers. Thanet Earth claims to be an ethical employer,
but the workers are telling a very different story. The
supermarkets claim to take seriously their ethical
responsibilities, but we can see no evidence of
that.” (Morning Star p4, Unite
release).
Your move – M&S deputy
chairman Sir David Michels is to stand down following the arrival
of Sir Mark Bolland as chief executive last year, the deputy had
hoped to gain the chair but missed out (FT p20).
Earnings warning – And across
the pond Kraft lowered its earnings outlook for the year and said
first quarter profits fell by 57.6 per cent as the costs of the
Cadbury acquisition took their toll (FT p21).
Nice one – But the drinks
sector is doing better as both Pernod Ricard and Diageo announce
improved sales. Diageo says sales have risen by 7 per cent in value
terms, while volumes have increased by just 2 per cent, good demand
in China is supporting both companies (Times p51, Telegraph b8).
Oil price plummets – But oil
prices have dipped below $100 amid fears that the commodity price
bubble may be about to burst, silver prices have been slashed by 25
per cent and copper, aluminium and lead have also fallen (Indie p42, Guardian p29, FT p1, Morning Star p6).
What do you call… - And on a
lighter note the Mail
(p21) reports that when it comes to telling jokes the secret of
making a bad joke seem good is all in the teller’s reputation. So
if Nick Clegg tells you the election has been good for the Lib Dems
in the voice of Tommy Cooper you’ll know why…
Edited by Mik
Sabiers
The digest will take a
short rest while Communications returns to the second floor of
Theobald’s Road,
normal service will be resumed shortly.
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