BIG SOCIETY PLAN “WILL NOT PLUG CUTS GAP”
The Big Society Bank and other social finance initiatives will not be enough to replace charitable projects hit by government spending cuts, according to figures compiled by the Financial Times and the Young Foundation think-tank. Geoff Mulgan, former strategy director at Number 10 and head of the Young Foundation, said: “There are a lot of fertile ideas about [raising money] and things are starting to happen. But even on the most optimistic scenarios there is a vast gap between the scale of new money coming into social ventures and the sheer speed and scale of the spending cuts.”
STUDENT LOAN COST FEARS SPARK TUITION FEES THREAT
Ministers have warned universities that the government will seek new power to contain tuition fees if too many institutions attempt to raise their charges close to the maximum.
CAIRN TAKES TOUGH LINE ON OILFIELDS SALE
Cairn Energy, the UK-listed oil and gas company, has hardened its stance in its battle to secure the Indian government’s approval for its proposed $9.6bn sale of oilfields in Rajasthan, rejecting conditions being placed on the transaction. The directors of Cairn’s Indian subsidiary on Thursday said they “cannot accept” any interference that might change the value of the sale of a controlling stake in the company to UK-listed Vedanta. They said uncertainty over the deal was affecting the business.
EUROFIGHTER TO OFFER INDIA A ROLE
The Eurofighter consortium is prepared to offer India a manufacturing role, as the international race intensifies to supply 126 jet fighters worth $11bn to New Delhi.
INQUIRY SOUGHT TO STOP AIRLINES CASHING IN ON CARD PAYMENTS
Budget airlines could face an official inquiry into “rip-off” credit and debit card charges after the Which? consumer group lodges a “super-complaint” next month. The charity is using its statutory powers to ask the Office of Fair Trading to investigate the fees, which can reach hundreds of pounds for some transactions.
CHANNEL 4 PLANS TO BECOME
CHANNEL 6 WITH LOCAL NEWS
Channel 4 will bid to become the host broadcaster for the government’s new network of city-based television stations. It is understood to be considering plans to overhaul one of its digital channels, E4 and More4, or their timedelayed “+1” counterparts, to act as a national “spine” for a host of local news providers.
The Daily Telegraph
SPAIN ORDERS DRASTIC CAJA CLEAN-UP TO WIN CONFIDENCE AND FIGHT OFF EMU DEBT CONTAGION
Spain has imposed draconian rules on its saving banks and is preparing for part-nationalisation of the industry to restore confidence and boost the country’s defences against contagion from the debt crisis in Portugal. The weaker banks, or “cajas”, must raise Tier 1 core capital to 10 per cent by September if they depend on wholesale capital markets for over a fifth of their funding or if less than a fifth of their shares are in private hands.
INTERNATIONAL MONETARY FUND DIRECTOR DOMINIQUE STRAUSS-KAHN CALLS FOR NEW WORLD CURRENCY
Dominique Strauss-Kahn, managing director of the International Monetary Fund, has called for a new world currency that would challenge the dominance of the dollar.
THE WALL STREET JOURNAL
FOR UK BANKS, A CALAMITY IS BORN
UK bank regulators are launching a new type of “stress test” that forces banks to consider unlikely but potentially disastrous scenarios like a flu pandemic or disruptions to the country’s food-supply chain. The latest exercise, which the UK’s Financial Services Authority instructed banks to start conducting in mid-December, is dubbed a “reverse stress test”.
BLOCKBUSTER HEADS TOWARD SALES BLOCK
Blockbuster is preparing to put itself up for sale after creditors disagreed on plans to give the movie-rental chain more cash to help it exit bankruptcy protection, people familiar with the matter said. Blockbuster now plans to seek buyers instead of reorganising in bankruptcy court and could ask a judge to approve bidding procedures as soon as next week.