News digest 8 November 2011
Europecontinues to hog the
headlines while the home secretary is under pressure over open
borders. MPs want to wrestle back control from the Bank Of England
while Danny misleads on pensions’ reform. Youth unemployment looks
to be rising ever higher, but fees may come down, while the police
are prepared to fire on protesters. The high street is suffering,
Coutts is to be fined while Lloyds may be forced to appoint a new
head. Ryanair zooms ahead, Boeing’s Dreamliner has some difficulty
engaging and HS2 is backed, but there could be some trouble for
Jack Dromey and Osborne is reportedly objecting to cuts to workers’
rights…
Goodbye Greece; Hello Italy –
After Greece’s politicians went some way to dealing with the
country’s debt problems - and shares on the Athens stock market
rose yesterday - the focus then switched to Italy which saw
borrowing costs hit record highs over renewed political instability
with the Italian prime minister Silvio Berlusconi denying rumours
he was set to resign; he chose to tell the world he was staying via
a Facebook update (probably in-between trying to add Christine
Lagarde and Cristina Fernández de Kirchner as friends and not that
other thing you do on Facebook). The yield on Italian 10-year bonds
rose from 6.37 per cent to a euro-era high of 6.64 per cent, before
retreating. The market’s view Italy's ability to repay its debt as
increasingly doubtful, and an Italian default on its €2 trillion
debt would have profound repercussions for not just the eurozone,
but the global economy. The question is whether Europe’s
politicians have the will to deal with the crisis - Obama has
reportedly told Europe’s leaders to get a grip - or really lack any
clue of what to do (Mirror
p14, Sun p8, Express p4, Mail p6, Times p6-7, Indie p1/4-6, Guardian p4-6, Telegraph p1, FT p6-8, Morning Star p6).
Welcome everybody – Home
secretary Theresa May was facing fresh questions over the
relaxation of passport rules after it emerged she extended a secret
relaxation of border controls without even asking about the
security implications of the move. Most of the right-wing tabloids
are up in arms calling on readers to sign the MigrationWatch
inspired epetition on immigration on the government website; more
than 100,000 have signed up. May tried to blame Brodie Clark, head
of the UK border agency, but the headline of the Telegraph (p1) sums it up with
her response to how many illegal aliens entered the UK:
‘I’m sorry, I haven’t a clue’ (Mirror p8, Sun p2, Express p2, Mail p1/8-9, Times p1, Indie p10, Guardian p1, FT p3, Morning Star p3).
Clear St Paul’s – Ahead of
remembrance services this Sunday there are calls for the Occupy
protest to be cleared away, but the main coverage returns to the
poll of City workers who realise they are too highly paid and over
half said deregulating markets led to less ethical behaviour
(Express p5, Times p15, Telegraph p6, FT p3, Morning Star p1).
Rein in the Bank of England –
And the treasury select committee has demanded radical reform of
the relationship between the chancellor and the Bank of England’s
governing body. Going back on the Labour shift to independence the
committee argues that by giving the bank more powers the ability to
operate independently of the chancellor should be curtailed. The
committee says the bank should be free from day to day
interference, but under crisis situations the chancellor should be
able to issue orders; well politicians always do what is for the
good of the country don’t they (Mail p17, Times p35, Indie p52, Guardian p28, Telegraph b4, FT p1).
Cancer claims contradicted –
The Guardian (p2) reports
that prime minister David Cameron and health secretary Andrew
Lansley’s repeated criticisms of the NHS’ record on cancer have
been contradicted by new research that shows the health service is
an international leader in dealing with the disease. Cameron and
Lansley have used low standards in cancer care to try to justify
the massive shake up of the NHS.
Danny’s deception – As
annuity valuations continue to fall piling pressure on private
sector pensions, Unite accused chief secretary to the treasury
Danny Alexander of “making extraordinary claims in
order to mislead and manipulate the public” after
research from the union’s pension experts showed how Alexander had
produced distorted figures, did not compare equal
time/contributions and also excluded the impact on the switch to
CPI, a letter from Unison members in the Guardian (p35) highlights the
reality of the offer (Mail p21, Guardian p35, Morning Star p2, Unite
release).
Government reforms could drive 600,000
off benefits – The Guardian (p7) reports researchers
from Sheffield Hallam University have said the government’s tough
new welfare reforms could force over 500,000 people off incapacity
benefit leading to widespread poverty. Findings show some 600,000
people are expected to vanish from the benefits system overall and
be left reliant on family or other sources for survival.
Work from home to save the treasury
money – The Telegraph (p14) reports on a
study from the Office for National Statistics which says more state
employees should work from home to save the taxpayer billions in
rent and reduce public sector overheads. The report has the backing
of chief cutter Eric Pickles so perhaps it’s the first stage to
getting rid off more workers…
Youth unemployment nears million
mark – TUC study of councils’ figures shows 196 out of 202
reporting a rise in 18-24 year olds unable to find work indicating
that next week’s youth unemployment figures could top the million
mark (Mirror p15, Sun p2, Morning Star p4).
Tuition fees not fixed – Yet
more confusion for those that can just about afford to go to
university as the Indie
(p1) and Telegraph (p1)
report that 27 universities have submitted last minute plans to
lower their tuition fees so they can bid to take on more
pupils.
More tests for teachers – And
education secretary Michael Gove wants to make it harder for
teachers to qualify saying he plans to introduce tests to make sure
newly qualified teachers can deal with unruly pupils (Express p30, Mail p17, Telegraph p1).
Baton rounds available for student
protests – Police say they are prepared to use plastic
bullets for the first time on the British mainland if tomorrow’s
student protests erupt into violence, nice of Scotland Yard to
respect the legitimate right to protest on the streets (Mirror p16, Mail p2, Times p7, Guardian p7, Telegraph p6).
High street suffers – Retail
sales slumped by 0.6 per cent in October as shoppers increasingly
concentrate on essentials according to figures from the British
Retail Consortium. The slowdown comes amid fears of a choppy
Christmas which could be make or break for embattled retailers
(Mirror p48, Indie p52, Guardian p28).
Hotels and bar closures climb
– The FT (p20) reports a sharp
rise in the number of hotels and bars going into administration
blamed on stricter lending by banks and fall in consumer
spending.
Premier relief – Premier
Foods has been thrown a lifeline over its debts after banks waived
a stress test which would have seen the company breach the terms of
its loan (Sun p45, Express p44, Mail p65, Times p41, Indie p54, FT p20).
Coutts faces £6 million fine
– The Telegraph (b3) and
FT (p1) report that Coutts, the
private banking arm of RBS, is set to be fined £6 million for
misselling of bonds in AIG whose assets were frozen during the 2008
financial crisis.
Long term leave of absence? -
Fears are growing among Lloyds shareholders that its chief
executive will not return and have asked for an update on the state
of Antonio Horta-Osario’s health before the end of the month
(Times p39, Telegraph b4).
Dudley on the defensive – BP
boss traded insults with China’s Cnooc yesterday over the collapsed
$7.1 billion deal to sell BP’s 60 per cent stake in Pan American
Energy of Argentina (Indie p56, Guardian p30).
Green tax to hit passengers –
The Mirror (p26) reports
that under new EU environmental laws an extra green tax is expected
to add up to seven per cent to air fares when it comes into force
in January. Chancellor George Osborne is being called on to cut
back on Air Passenger Duty in response, although expectations are
he may instead increase the air tax by a further 10 per cent in his
next budget.
Ryanair zooms ahead - Budget
airline raises its profit forecast for this financial year despite
plans to ground aircraft over the winter because of high fuel
prices. Ryanair's pre-tax profit rose 28.4 per cent to €619.6
million for the six months to the end of September, and net profit
rose to €452 million excluding exceptional costs. The company has
managed to achieve a 13 per cent rise in ticket fares (Mirror p48, Sun p21/45, Express p45, Mail p67, Times p36, Guardian p30, Telegraph b8, FT p18, Morning Star p5)
LSG recognises Unite at Manchester
Airport – Deal signed with in-flight catering company
(Unite
release).
Dreamliner does not engage –
The FT (p23) reports that Boeing’s
new 787 Dreamliner had its first operational glitch on Sunday when
pilots were unable to deploy the aircraft’s landing gear. Pilots
had to deploy the landing gear manually and the plan landed at the
second attempt.
High speed rail backed – The
Mirror (p9) and Mail (p20) report that the
transport select committee has backed plans for the High Speed 2
rail link from London to Birmingham saying it offers potential
economic and strategic benefits even if it will have a substantial
negative impact on the countryside.
GM’s Europe boss to retire –
The Telegraph (b3) and
FT (p23) report that Nick Reilly,
who helped prevent the collapse of the carmaker in 2009, will
retire in March 2012 after 37 years with the car company.
Claims and counterclaims –
And finally a couple of interesting stories as the Telegraph (p2) tries to dig the
dirt on ex Unite deputy general secretary Jack Dromey who will face
a formal investigation over whether he failed to declare his
salary, however the Sun (p2)
has a more interesting dig at George Osborne saying he has come
under fire from Downing Street for failing to back the government’s
war on red tape and plans to make it easier to sack workers, sounds
like the hand of Steve Hilton trying to limit the chancellor’s
ambitions…
Edited by Mik
Sabiers
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