News digest 14 June 2013

News digest 14 June 2013

14 June 2013

Today’s digest opens with the continuing fall out over the effective ‘sacking ‘ or RBS boss Stephen Hester by chancellor George Osborne. On the investment banking side fears are growing that there will be a mass exodus as more jobs are cut, while on the retail banking side there is anger over the large exit package for the man who cut 39,000 jobs from the bank. The biggest issue is however that the bank is now leaderless, the search for a successor who could be sacked on the whim of the chancellor could be a hard one to fill, or one that requires a lot of danger money. Expect Osborne to have to try and justify another stellar salary, but the reality of his actions can be seen on the stock market. RBS shares fell eight per cent yesterday (effectfively losing some £620 million for taxpayers) and while Simon Jenkins in the Guardian says political meddling in RBS is nothing to be worried about, Jonathan Ford warns the chancellor that he should not treat RBS like his family business, seems like Osborne retains the anti-Midas touch.

And while Hester can be expected to retire to a life of riches and hunting (perhaps he should head to South West Surrey tomorrow for the #Hunt4Hunt event), the reality of Osborne’s onslaught on Britain continues with a number of the papers reporting that one in three children are living in real poverty. The FT and Telegraph add that living standards are also at their lowest level for a decade under the Con-Dem coalition, in the past year alone there has been a three per cent fall in real incomes and poverty rates for working age adults are nearing the 15 per cent level. Perhaps all those zero-hours contracts need to be challenged, commenting on the proposed government inquiry planned by business secretary Vince Cable, Unite general secretary Len McCluskey said: “Unite has long been concerned about the rise of insecure working and its dreadful social and economic impact. ‘Zero hours’ contracts are bad for Britain and will hold back the recovery… this government is looking to consumers to fuel the recovery. It won’t be done through low waged insecure jobs. How on earth can people do that when the jobs on offer leave them living hand to mouth?” Let’s see if Vince Cable’s investigation has any teeth?

And talking about lacking teeth, the government’s actions over the Thameslink contract have finally seen another nail in the coffin for UK train manufacturing. Any hope that Bombardier could take over the long delayed Thameslink contract was dashed after the deal was finally signed last night, after two long years of delays. So much for investing in the best of British, the Telegraph sums it up well citing shadow transport secretary Maria Eagle: “It is inconceivable that any other EU country would have made the same decision.” Sadly, that does seem to be the case as we have a coalition that speaks up for the higher echelons of the City and condemns ordinary workers to ever emptier high streets and poverty…

 Morning Star

 Daily Mirror




 Times (no links all stories behind paywall)

  • Rein in overzealous bosses, police chiefs appeal to May (p2)
  • Hacked off lobbyist had undisclosed role in parliament (p7)
  • Harman plan to cap media ownership (p7)
  • Energy boss’ pay rise ‘reward for failure’ (p8)
  • Labour’s addicted to meddling, not spending – Philip Collins (p25)
  • Alarmed investors follow Hester our of RBS door (p41)
  • Going gets choppy for Argos (p47)(p)




 FT (no links all stories behind paywall)

  • RBS staff at rock bottom on Hester exit (p1)
  • Carmaker’s success hits local suppliers (p1)
  • Living standards at lowest level for decade (p2)
  • Carmakers compete for drying talent pool (p3)
  • Royal Mail plans seven day delivery (p4)
  • Heathrow favours phased approach to runway growth (p4)
  • Osborne should not treat RBS like his family business – Jonathan Ford (p11)
  • Ireland allowed to delay bank tests (p16)

 Edited by Mik Sabiers

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