Date: Monday 21 Jun 2010
Official forecasts will show George Osborne’s emergency Budget hitting growth and costing jobs in the short term, government sources said last night, but the austerity measures will also create a brighter climate for the economy by the end of the parliament, the FT reports.
In a tough Budget that seeks to overachieve on plans to eliminate the deficit, Treasury ministers accept that the new and independent Office for Budget Responsibility will mark down the growth and jobs forecasts as government spending falls and taxes rise, the FT adds.
George Osborne's emergency budget on Tuesday will offer new firms in Britain's run-down regions a £900m tax break to hire workers, as the government seeks to boost private sector job creation in parts of the country most vulnerable to public spending cuts. The chancellor will seek to temper his austerity package by announcing that any company set up outside London, the south-east or the eastern region will not have to pay employer National Insurance contributions (NICs) for its first year in business, the Guardian reports.
Harvey McGrath faces a last-ditch battle to save his job as chairman of Prudential this week as more top shareholders call for him to step down over the failed bid to buy AIA in Asia. Fidelity, the Pru’s fifth-largest shareholder, is expected to urge Mr McGrath to resign when it holds a face-to-face meeting with him today. Fidelity, which owns 2.5% of the Pru, is understood to believe that Tidjane Thiam, the chiefexecutive should also step down, once a new chairman has been appointed, the Times reports.
An internal BP document released on Sunday showed that the company has estimated that oil could pour from its broken well in the Gulf of Mexico at the rate of 100,000 barrels a day, nearly double the current reckoning by the US government. An undated document showing the estimate was released by Congressman Ed Markey, the chairman of an energy sub-committee in the House of Representatives, the Telegraph reports.
BP plans to shore up its battered finances against the escalating clean-up costs of the Gulf of Mexico oil spill by raising around $50bn (£33bn) and pursuing its main partner through the courts. As the oil major came under renewed attack at the weekend for its handling of the Deepwater Horizon blow-out, it emerged that BP's 25% joint-venture partner in the leaking Deepwater Horizon well, Anadarko, has refused to contribute to the multi-billion dollar clean-up bill. BP has threatened legal action, the Telegraph reports.
Global markets are braced for a possible sell-off in US Treasury bonds after China said over the weekend that it will allow the yuan exchange rate to adjust against the dollar, ending a two-year currency freeze that has led to trade clashes with Washington and Brussels. China's Central Bank said the economic recovery had opened the way for a return to "flexibility" but ruled out an immediate one-off rise in the yuan. The currency will be allowed to fluctuate within a widened band of 0.5pc each day against a basket of currencies, the Telegraph reports.
British business leaders are demanding contingency plans from the Government, comprising new union laws, to cope with the surge in industrial action they expect after public sector cuts to be announced in the Budget tomorrow. The CBI will warn today that the country faces debilitating union strike action that could cripple Britain’s essential public services, the Times reports.
The CBI, Britain's biggest business lobby group, is set to outrage unions this morning with the release of a report demanding sweeping new curbs on the right to strike. The report – Making Britain the Place to Work – calls for new laws on strike votes to force unions to secure the support of 40% of a balloted workplace for strike action, in addition to a majority of those who actually vote, the Independent adds.
Tullett Prebon, the inter-dealer broker, has suffered a setback in its long-running dispute with New York rival BGC Partners after a US judge threw out its lawsuit. London-based Tullett had accused BGC of a hiring raid on 77 of its partners that it claims cost the business $387m (£260m) in market value. It was using the state of New Jersey's racketeering laws to establish liability and claim damages, the Telegaph reports.
The sale of the UK’s only dedicated high-speed rail line is to be launched as early as Monday, with the company that runs the Channel tunnel and several large infrastructure investors expected to join the bidding. The privatisation of High Speed One – which runs the line between St Pancras International station and the Channel tunnel – is part of a programme of asset sales announced by the previous government in an effort to restore public finances, the FT reports.
In a tough Budget that seeks to overachieve on plans to eliminate the deficit, Treasury ministers accept that the new and independent Office for Budget Responsibility will mark down the growth and jobs forecasts as government spending falls and taxes rise, the FT adds.
George Osborne's emergency budget on Tuesday will offer new firms in Britain's run-down regions a £900m tax break to hire workers, as the government seeks to boost private sector job creation in parts of the country most vulnerable to public spending cuts. The chancellor will seek to temper his austerity package by announcing that any company set up outside London, the south-east or the eastern region will not have to pay employer National Insurance contributions (NICs) for its first year in business, the Guardian reports.
Harvey McGrath faces a last-ditch battle to save his job as chairman of Prudential this week as more top shareholders call for him to step down over the failed bid to buy AIA in Asia. Fidelity, the Pru’s fifth-largest shareholder, is expected to urge Mr McGrath to resign when it holds a face-to-face meeting with him today. Fidelity, which owns 2.5% of the Pru, is understood to believe that Tidjane Thiam, the chiefexecutive should also step down, once a new chairman has been appointed, the Times reports.
An internal BP document released on Sunday showed that the company has estimated that oil could pour from its broken well in the Gulf of Mexico at the rate of 100,000 barrels a day, nearly double the current reckoning by the US government. An undated document showing the estimate was released by Congressman Ed Markey, the chairman of an energy sub-committee in the House of Representatives, the Telegraph reports.
BP plans to shore up its battered finances against the escalating clean-up costs of the Gulf of Mexico oil spill by raising around $50bn (£33bn) and pursuing its main partner through the courts. As the oil major came under renewed attack at the weekend for its handling of the Deepwater Horizon blow-out, it emerged that BP's 25% joint-venture partner in the leaking Deepwater Horizon well, Anadarko, has refused to contribute to the multi-billion dollar clean-up bill. BP has threatened legal action, the Telegraph reports.Global markets are braced for a possible sell-off in US Treasury bonds after China said over the weekend that it will allow the yuan exchange rate to adjust against the dollar, ending a two-year currency freeze that has led to trade clashes with Washington and Brussels. China's Central Bank said the economic recovery had opened the way for a return to "flexibility" but ruled out an immediate one-off rise in the yuan. The currency will be allowed to fluctuate within a widened band of 0.5pc each day against a basket of currencies, the Telegraph reports.
British business leaders are demanding contingency plans from the Government, comprising new union laws, to cope with the surge in industrial action they expect after public sector cuts to be announced in the Budget tomorrow. The CBI will warn today that the country faces debilitating union strike action that could cripple Britain’s essential public services, the Times reports.
The CBI, Britain's biggest business lobby group, is set to outrage unions this morning with the release of a report demanding sweeping new curbs on the right to strike. The report – Making Britain the Place to Work – calls for new laws on strike votes to force unions to secure the support of 40% of a balloted workplace for strike action, in addition to a majority of those who actually vote, the Independent adds.
Tullett Prebon, the inter-dealer broker, has suffered a setback in its long-running dispute with New York rival BGC Partners after a US judge threw out its lawsuit. London-based Tullett had accused BGC of a hiring raid on 77 of its partners that it claims cost the business $387m (£260m) in market value. It was using the state of New Jersey's racketeering laws to establish liability and claim damages, the Telegaph reports.
The sale of the UK’s only dedicated high-speed rail line is to be launched as early as Monday, with the company that runs the Channel tunnel and several large infrastructure investors expected to join the bidding. The privatisation of High Speed One – which runs the line between St Pancras International station and the Channel tunnel – is part of a programme of asset sales announced by the previous government in an effort to restore public finances, the FT reports.
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