News digest 19 June 2013

News digest 19 June 2013

19 June 2013

The top story in the papers is the G8 summit in Lough Erne, Northern Ireland which ended with a declaration where the G8 leaders committed themselves to "fight the scourge of tax evasion" and backed calls for peace talks aimed at ending the conflict in Syria to be held in Geneva "as soon as possible”. However, in looking at the detail it seems the main thrust of the conference remained focused on solving the crisis in Syria – worsened after prime minister David Cameron put Russian president Putin’s nose out of joint - and much less time on dealing with the ever rising count of tax avoiders and evaders. A few homilies about how governments should share information and change the rules - rather than will – is unlikely to have any real effect, and the main response from the papers is the deal will probably have enough holes for the big companies to skirt around. Nice one Dave will probably be the refrain from the big bosses…

The other main story in the papers is the long awaited report from the parliamentary commission on banking standards which calls for major delays to banker bonuses and also threatens reckless bankers with jail. Amid all the detail on the dangers of the City’s masculine culture, lack of accountability and anger over stellar salaries, the commission also notes on the danger of political meddling. Speaking of which at tonight’s Mansion House speech chancellor George Osborne is expected to push for the split of RBS in two with the aim of selling off the good bank while lumping taxpayers with the debt. Lloyds also looks like it is being lined up for sale. Unite general secretary Len McCluskey said: "The commission has flunked a golden opportunity to recommend that the government explores the full nationalisation of RBS [which] could become the dynamo which helps drive the UK out of the economic doldrums through lending and support to businesses and communities. The commission [also] had an open goal to help rein in City excess and it missed. Tinkering at the edges is not enough. The differences between the pay of the highest and lowest paid in Britain's biggest banks is completely unacceptable. Spreading reward more evenly across the banks would embed a culture of fairness and responsibility." Let’s see if Osborne and Bank of England governor-to-be Mark Carney are listening.

There is however one shift at the Bank of England with the news that Carney has made his first appointment, namely Charlotte Hogg as the bank’s chief operating officer, she’ll be responsible for the day to day running of the bank, although there’s no mention if that’s just so Carney can spend his time counting the money, rather as inflation remains stubbornly above trend and growth stubbornly below he’ll need to hit the ground running…

Morning Star

  • Price rises pile pain on struggling workers (p1)
  • MoD axe looms (p2)
  • Over 70 per cent of ex-Remploy workers still jobless (p2)
  • Safety cuts increase risk of new Piper alpha (p2)
  • Social housing staff walk over ‘savage’ pay cuts (p3) – Nicky Marcus cited
  • G8 conference: Declaration on tax evasion ‘falls short’ (p3)
  • Prentis rails against hypocritical Tories (p4)
  • Anti-austerity bus arrives in Liverpool (p5)

 Daily Mirror

  • Education faces £2 billion budget cut (p2)
  • Jail reckless bankers (p2)
  • Lloyds heads for sell-off (p2)
  • Cover up over NHS deaths (p4)
  • G8: Putin the boot in (p10-11)
  • Union fight £1,000 ‘charge for justice’ (p20)
  • Real Britain Ros (p29) – in association with Unite
  • Memo warned of Co-op risk (p42)
  • easyJet faces new clash with Stelios (p42)




 Times (no links all stories behind paywall)

  • West tries to engineer Damascus coup (p1)
  • Soaring pension bill creates £3 billion headache for Osborne (p2)
  • Bupa hit hardest by surge in complaints (p11)
  • Heathrow bosses treat public like idiots, says Boris (p13)
  • Osborne to change tack and split RBS (p35)




 FT (no links all stories behind paywall)

  • Banking review hits out (p1/2)
  • G8 leaders promise tax clampdown (p1)
  • Employers report battle to recruit qualified staff (p4)
  • MoD hopes to avoid further forces cuts (p4)
  • Don’t blame the havens – tax dodging is everyone else’s fault – John Kay (p11)
  • HP unveils management shake up (p15)
  • EU car sales slowest since 1993 (p19)
  • EADS leaves door open to BAE tie-up (p18)
  • Lloyds boss denies pressure to select Co-op bid (p20)
  • easyJet faces Stelios’ wrath (p21)

 Edited by Mik Sabiers

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