News digest 18 June 2013

News digest 18 June 2013

18 June 2013

Many of the papers remain focused on the G8 meeting in Northern Ireland with the UK and US adding to pressure on Russia’s president Vladimir Putin to cave in and allow the rebels to be armed. The Mirror sums it up as ‘G8 leaders turn heat on Putin’ while the Express headline says ‘Last chance for peace in Syria’ although when did sending arms to a conflict zone ever result in peace, sounds more like a recipe for prolonged war.

Prime minister David Cameron also looks to be pushing a Syria deal as a key outcome for the summit after the deal on global tax transparency looks less likely, the Times says a ‘shares loophole’ has weakened the demand for global tax transparency, more likely big business has made its displeasure known.

And talking of displeasure as Tory MP Dominic Raab says half of Whitehall should be axed, chancellor George Osborne is pushing his latest attack on public sector workers. The Mirror reports that Osborne has indicated that pay increases based on length of service and passing of tests for public sector workers will be stopped and is also signalling that another 500,000 civil servants could lose their jobs. Unite’s Gail Cartmail branded it a “sledgehammer attack on public sector workers” and is quoted in the Mirror: “[Public sector workers] will be 15 per cent worse off by the end of the government’s term in office – and that doesn’t even include the proposed attack on pay progression. Picking the pockets of workers will not lead to economic prosperity – it will lead to more misery.” As ever, ordinary workers pay.

And from ordinary workers to ordinary pensioners as the latest banking shake up continues. This time the Co-op is to be subject to a bail-in as it looks to deal with a £1.5 billion capital hole. About £300 million in new Co-op shares will be listed in the London stock exchange effectively ending the bank’s mutual status. What’s more bondholders – many of them institutions investing on behalf of pensioners, but also 7,000 small investors - will end up taking part of the ‘haircut’ which will see the value of their investment drop. Management will have to see if the required 80 per cent of bondholders back the plan, but the Co-op as you know could soon be gone.

 Morning Star

 Daily Mirror





Times (no links all stories behind paywall)

  • Cameron leads ambush on Putin over Syria (p1)
  • Childcare at risk as Gove faces £2 billion education cut (p3)
  • Shares loophole weakens UK’s demand for global tax transparency (p8)
  • A&E ‘phone before you go’ plan (p15)
  • Bondholders share pain of bail in at Co-op (p35)
  • AstraZeneca plans Cambridge transplant (p38)




 FT (no links all stories behind paywall)

  • Co-op bank listing to end mutual status (p1/23)
  • Pensions industry in line for shake-up (p2)
  • Johnson warns against arming Syria ‘maniacs’ (p3)
  • Labour seeks to seize education reform agenda (p4)
  • Court cleaners strike in living wage campaign (p4)
  • Putin faces isolation over Syria (p8)
  • Smiths names former 3M head as chair (p18)
  • Private equity leads way in ‘tax efficiency’ (p19)
  • Siemens cheered by changes to Us train design rules (p20)
  • Airbus confident of rising above Boeing (p20)
  • BAE to conclude talks on fighter jet supply (p22)

 Edited by Mik Sabiers

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