Job freeze looms as firms suffer October 6, 2010 ABOUT 5,000 fewer jobs than expected will be created in the City this year as government proposals to introduce a permanent immigration cap, the 50p tax rate and regulatory uncertainty force investment banks to put the brakes on hiring. Economic consultancy the Centre for Economic and Business Research (CEBR), which tracks financial services recruitment, yesterday [...]
Cameron lashes out at banks October 6, 2010 DAVID Cameron stepped up his rhetoric against the City yesterday, using his first conference speech as Prime Minister to hit out at banks and big business. He said the tripartite system of regulation was partly to blame for the economic crisis, but that individual bankers had to take more responsibility. “Labour failed to regulate the [...]
IMF warns of risk of cutting October 6, 2010 THE government would have to revisit its plans for deep spending cuts if growth substantially disappoints, the International Monetary Fund warned yesterday. Speaking at the launch of the agency’s World Economic Outlook report, which cut the UK’s projected rate of growth from 2.1 per cent to two per cent, the fund’s chief economist Olivier Blanchard [...]
We need an investment-led recovery October 6, 2010 One of the main arguments being used by sceptics to attack David Cameron’s austerity package is that Barack Obama’s America is still attempting to pump-prime demand. If the US thinks the way out is for the state to spend more, and rack up an ever larger deficit, then why aren’t we following suit? So it [...]
Jailed Kerviel is crushed October 6, 2010 CONVICTED?fraudster Jerome Kerviel said yesterday he was “crushed” by his jail term for running up trading losses of €4.9bn (£4.3bn). In his first interview since he was handed a five year sentence, with two suspended, he said: “I’m starting to digest it, but I’m nonetheless crushed by the weight of the sanction and the weight [...]
Cuts to public sector spending set for delay October 6, 2010 PROPOSED public spending cuts are set to be delayed to enable the coalition government to spread the pain of the deficit reduction more evenly over the next few years. The forthcoming spending review on 20 October is expected to outline the revised timetable for cuts, although the Treasury has insisted it will still eliminate the [...]
WHAT THE OTHER PAPERS SAY THIS MORNING October 6, 2010 FINANCIAL TIMES BUSINESS PLEADS FOR A STRATEGY Business leaders urged David Cameron to turn his pro-enterprise rhetoric into a detailed strategy that would deliver better infrastructure and remove obstacles to growth. David Frost, director-general of the British Chambers of Commerce said corporate Britain was strongly behind the government’s effort to shrink the budget deficit but [...]
BP to develop gas fields in Azerbaijan October 6, 2010 BP is expected to close a deal with Azerbaijan’s national oil company today to explore and develop a huge natural-gas field in the Caspian Sea. The field, Shafag-Asiman, has estimated reserves of 17 trillion cubic feet, according to the State Oil Company of the Azerbaijan Republic (Socar). If confirmed, that would make it almost as [...]
Ireland rating slashed as its misery grows October 6, 2010 Ireland’s economic turmoil continued yesterday as Fitch cut its credit rating. The news came a day after Moody’s said it was considering downgrading Ireland, driving up the nation’s borrowing costs. The decision heaps further pressure on a government saddled with a debt pile set to hit a staggering €155bn (£136bn) this year – equivalent to [...]
US wades into hedge fund tussle in Europe October 6, 2010 US TREASURY secretary Tim Geithner has warned the French economy minister Christine Lagarde that curbing foreign hedge funds in Europe could cause a rift between the continent at the US government. In a letter, sent late on Tuesday and seen by journalists, Geithner increases pressure on Paris to allow concessions on new European controls for [...]