News digest 7 November 2011
Today’s digest opens with a financial edge
as the Greek bail-out could get the go ahead although its goodbye
to George Papandreou. As stock markets still shake, Lloyds is hit
by stress, casino bankers at RBS get bonuses but Ed Miliband backs
the 99 per cent while America and China attack workers’ rights and
Danny Alexander attacks union leaders. The government’s immigration
and aviation policies are under close watch, unlike UK borders,
construction workers are on the way to London while Birmingham’s
refuse collectors may stay at home and there’s a question about
costs for Cameron’s refurb at Downing Street…
Greece agrees coalition –
Prime minister George Papandreou is to stand down shortly, a
government of national unity charged with fixing Greece’s
precarious finances will be formed this week so that the €130
billon bail-out can go ahead; elections are expected to be held in
the new year after the bail-out has been secured and more austerity
measures implemented. Eurozone finance ministers are expected to
discuss the political chaos in Athens and plans to stop the crisis
spreading across southern Europe, and especially to Italy. There
are concerns that by openly discussing the exit of Greece from the
eurozone the genie is out of the bottle for future crises, but back
in the UK prime minister David Cameron’s eurosceptic wing is agog
over the possibility that the UK will have to stump up £40 billion
to the IMF plan as part of the bailout (Mirror p4, Sun p6, Express p4, Mail p2/8, Times p1/4-8, Indie p6-7, Guardian p1/6-7, Telegraph p1/b1-3, FT p1-3, Morning Star p3).
Stock markets under pressure
as confidence drops – Falling confidence from
small firms is expected to weigh on market sentiment with fears of
the double dip building. The CBI’s quarterly survey of small and
medium sized firms fell for the second successive quarter with a
balance of -26 for firms reporting on business optimism (Express p44, Times p52, Guardian p23, Telegraph b3).
Lloyds under scrutiny – City
braced for sharp fall in profits at Lloyds Banking Group as trading
figures are revealed this week. The state backed bank is also
struggling to develop a strategy to deal with the absence of its
exhausted chief executive Antonio Horta-Osario. There are rumours
that Lloyds may actually start actively looking to consider
appointing a stand-in especially as finance chief Tim Tookey is due
to quit in February next year (Express p44, Mail p59, Times p41).
RBS casino bankers to get rich
rewards – The (Sun
p2) and Mail (p12) report
that bonuses of some £500 million are to be shared out at
bailed-out bank Royal Bank of Scotland despite plunging profits and
a dismal summer for the groups’ investment banking arm.
Anger grows over Goldman
‘error’ – The FT (p3)
reports that the row over a tax deal between Revenue & Customs
and Goldman Sachs has taken a new twist after it uncovered an error
in the settlement meaning there is still some £5-8 million of
uncollected interest to be paid.
City workers overpaid – The
Mirror (p4) reports on
research from think tank the St Paul’s Institute which found that
many bankers believe their pay is too high when compared to
teachers or nurses, tell us something we don’t know...
St Paul’s protest continues –
Some of the right wing papers continue to look for non stories to
attack the Occupy protesters, and the Telegraph (p2) calls on the
church to stop its attacks on the City while the Guardian (p1) reports with claims
that that certain City property deals benefit a firm linked to the
lord mayor of London raising fears of a conflict between business
and the City of London Corporation (Express p15, Times p6, Indie p5, Morning Star p2).
Ed backs St Paul’s protesters
- Labour leader Ed Miliband signals his support for the Occupy
protesters. In an interview with the Indie (p4-5) he outlines the
dangers of social exclusion at both the top and bottom of society
arguing that the elite one per cent are too detached from what is
happening in society. He then goes on to attack prime minister
David Cameron of defending the interests of the top tier and
accuses him of being unable to understand or stand up for the
remaining 99 per cent.
Showdown over workers’ rights in
Ohio – As Occupy protests spread across the US the
FT (p6) reports on a battle
between public sector unions and Ohio’s governor John Kasich as the
state is due to vote on a referendum that limits state workers
collective bargaining rights and will force them to pay more
towards healthcare and pension costs.
China attacks
workers’ rights – From one side of the world to the other
and the Mail (p8) seizes
on comments from head of China’s state overseas investment arm, Jin
Liqun, who said that Europe’s labour laws make workers slothful;
and China has a greater record of workplace safety and support does
it? Think Tank Open Europe also bangs the anti workers’ rights drum
saying EU rules cost £8.6 billion a year and could create 140,000
‘new’ jobs by getting rid of restrictions on all workers’’ working
hours, equality for agency workers and employment rules.
Alexander attacks unions – As
some reports show that the teaching unions may be nearing a
compromise deal regarding pensions chief secretary to the treasury
Danny Alexander yesterday accused some union leaders of being
“hell-bent” on strikes and said he plans
to appeal over union leaders’ heads directly to public sector
workers outlining his paltry proposals. So much for negotiating in
good faith (Sun p2, Times p11, Indie p21, Guardian p15, Telegraph p14).
Ministers sanctioned looser border
controls – A whistleblower from the UK Border and
Immigration Agency said that staff warned managers about relaxing
the rules on immigration which may have allowed extremists and
criminals to enter Britain (Sun p2, Express p2, Mail p10, Times p1, Indie p19, Guardian p9, Telegraph p1/4, FT p3, Morning Star p5).
Drop the NHS bill – The
Mirror (p14) announces that
a last ditch bid to call a halt to the planned overhaul of the NHS
is being launched by Labour. An online petition opens tomorrow at
http://www.dropthebill.com/.
M5 fireball probed – Health
and safety experts are analysing the causes of the collision that
saw seven people die and 51 injured (Mirror p1-3, Sun p7, Express p8, Mail p4-7, Times p8, Indie p11, Guardian p4, Telegraph p4, FT p2, Morning Star p2)
Airport expansion plans
flawed – From road to the air and the Times (p39) reports airline
bosses have ridiculed government forecasts that envisage small
regional airports dealing with the rise in the UK’s passenger
demands.
Carlyle eyes Edinburgh – The
FT (p19) reports the private
equity group Carlyle is leading a consortium that is preparing to
bid for Edinburgh airport.
easyJet goes upmarket? – The
FT (p19) also interviews easyJet
chief executive Carolyn McCall who remains coy over plans to
expand, but does highlight a shift towards higher quality
service.
Qantas offers free flights –
Australian airline plans to give away free tickets in a desperate
bid to win back customers hit by its decision to ground its entire
fleet of aircraft (Indie p54, Guardian p23).
BP blow – From Australia to
Argentina and BP’s $7 billion Argentina deal has collapsed meaning
the oil giant is unable to offload its holding in Pan American
Energy (Times p35,
Telegraph b1, FT p17).
Private equity eyes Greencore
– Continuing the overseas theme and US private equity firm Clayton
Dublier & Rice approached Dublin based sandwich maker Greencore
about a possible takeover (Times p39).
Construction workers head to
London – Thousands of workers will descend on London this
Wednesday to protest against the continuing assault on pay and
terms and conditions (Morning Star p2, Unite
release).
100,000 back Remploy – And
the Morning Star
(p3) also reports that ministers will today receive a 100,000 name
petition demanding a reprieve for a string of Remploy factories
across the country.
Bonuses as jobs axed – The
Telegraph (p16) reports
Luton borough council has been criticised for treating staff to
nearly £750,000 in bonuses to 259 employees while making hundreds
of others redundant.
Birmingham’s binmen
told to finish later – The Telegraph (p15) reports that Tory
councillor Graham Green has attacked the city’s refuse collectors
over potential strike action over planned changes to their working
arrangements; unless the council agrees to negotiate a wave of
strike action could start from 28 November.
Marching to Downing Street -
The Morning Star
(p1) splashes with the completion of the second Jarrow crusade
which finished over the weekend with marchers handing over a
petition to Downing Street.
Cameron’s charges – And
Downing Street is where today’s digest ends as the Mirror (p5), Sun (p2) and Morning Star (p5) all
report on some financial questions for the prime minister. Cameron
has been told to reveal details of the bathroom makeover of his
Downing Street flat after the entire annual budget for improvements
to the listed property has already been spent…
Edited by Mik Sabiers
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