FEARS FORCE IMMIGRATION CAP RETHINK
Senior Conservative ministers are forcing a rethink on the party’s flagship immigration policy to make it more business-friendly after warning that a rigid cap on migrants could damage the British economy. Theresa May, home secretary, will next week launch a consultation on the migration plan, with a promise to reflect the concerns of the City, industry and cabinet colleagues in drawing up the final scheme. Michael Gove, education secretary, and David Willetts, universities secretary, are among those who have warned that a rigid cap could call into question the coalition’s claim that “Britain is open for business”.
AIG CHIEFS AT ODDS OVER FAILED SALE OF ASIAN ARM
The failed sale of one of AIG’s crown jewels has strained relationships at the top of the US insurer, increasing tensions between Robert Benmosche, the chief executive, and Harvey Golub, the chairman, according to people close to the situation. The rift between AIG’s two senior executives has triggered concerns within the board and among officials in the US government, the controlling shareholder, who fear one of the two men might leave less than a year after their appointment.
ROLLS-ROYCE WARNS ON ENGINE DELAYS
Rolls-Royce has warned of “severe disruptions” to its engine manufacturing work because of new European rules that could threaten production lines at the world’s biggest aircraft maker. In a letter to its 7,000 global suppliers sent last month, the company said that there was a danger of a “non-availability” of vital substances that could endanger the production of its aerospace engines.
BANKS TOLD TO CURB BONUSES SO THEY HAVE MORE CASH TO LEND
British banks come under fresh pressure today to curb bonuses and dividends so that they can boost their capital levels. The Bank of England, which also warns of a “conflagration risk” if Europe’s sovereign debt crisis blows up again, urges banks to “double their efforts to contain discretionary distributions to shareholders and staff”.
BBC SAYS 117 EXECUTIVES EARN MORE THAN THE PRIME MINISTER
The BBC pays more than the Prime Minister’s £142,500 salary to 100 senior managers, the corporation has said for the first time. Robert Johnston, who, as reward director, is the arbiter of the pay and perks of staff and is paid £183,750 a year, confirmed that 117 BBC staff earn more than David Cameron.
The Daily Telegraph
TOYOTA INVESTOR TELLS CHIEF EXECUTIVE AKIO TOYODA TO STOP WEEPING
Stop crying so much. That was the message to the chief executive of Toyota from one of his shareholders yesterday. At the annual general meeting of the world’s largest car maker, an investor told Akio Toyoda: “Mr Toyoda, you’ve been all over the media this year and you’ve gone teary-eyed on several occasions. For a man of your position, this is unacceptable. Please keep your chin up and try not to weep.”
MAJOR BUS OPERATORS' GRIP PUSHING UP FARES
Millions of bus passengers are paying over the odds because of the grip major operators have on services across the country, Government research has found. Bus travel accounts for two thirds of public transport journeys.
WALL STREET JOURNAL
AIRCRAFT ORDERS PUSH DOWN DURABLE GOODS
Demand for US durable goods was pushed down by civilian aircraft in May, casting a shadow on an otherwise positive report. Separately, the number of US workers filing new claims for unemployment benefits declined last week by more than analysts were expecting. Durable-goods orders, after five consecutive monthly gains.
VOLVO CLOSE TO HIRING VW EXECUTIVE AS CEO
Swedish auto maker Volvo is close to hiring Stefan Jacoby, the chief of North America for Volkswagen, to be its chief executive officer, a person familiar with the matter said. Volkswagen said it has installed interim leaders for its top North American posts, but added it is still negotiating to try to keep Jacoby.