Link to the article
Last Modified: 17 Feb 2009
By: James Blake
A key measure of inflation hits its lowest level for nearly half a century. So why is the weekly shopping so expensive?
Economists had predicted a sharp drop in inflation, but the official figures revealed a surprisingly small fall.
On the government's preferred measure of inflation, the consumer price index, prices rose 3 per cent in January - that was just a small drop from December's rise of 3.1 per cent.
And the retail prices index, which includes housing costs, fell from 0.9 per cent to 0.1 per cent, taking Britain to the brink of deflation.
Tuesday, 17 February 2009
RBS: no rewards for failure
Link to the article
Last Modified: 17 Feb 2009
By: Gary Gibbon
RBS cash bonuses are down 90 per cent on last year, to £175m, putting the pressure on Lloyds to follow suit. Gary Gibbon reports.
The Royal Bank of Scotland, which is now largely owned by the government, announced the cut shortly after the chancellor, Alistair Darling, insisted bonuses would be slashed to "the absolute legal minimum".
Mr Darling said he wanted to see a cultural change within the bank, although the Tories called it "too little, too late".
It will increase the pressure on Lloyds, the other bank bailed out by the taxpayer, to follow suit.
Last Modified: 17 Feb 2009
By: Gary Gibbon
RBS cash bonuses are down 90 per cent on last year, to £175m, putting the pressure on Lloyds to follow suit. Gary Gibbon reports.
The Royal Bank of Scotland, which is now largely owned by the government, announced the cut shortly after the chancellor, Alistair Darling, insisted bonuses would be slashed to "the absolute legal minimum".
Mr Darling said he wanted to see a cultural change within the bank, although the Tories called it "too little, too late".
It will increase the pressure on Lloyds, the other bank bailed out by the taxpayer, to follow suit.
Monday, 16 February 2009
How will your spending change?
Link to the article
Last Modified: 16 Feb 2009
By: Channel 4 News
Buisness leaders predict that household spending will fall, unemployment will rise to three million, and wage increases will shrink as the economy falls deeper into recession.
In its latest dire warning on the economy, the Confederation of British Industry (CBI) - which represents 240,000 firms in the UK - said the economy will shrink by 3.3 per cent in 2009, compared with its November forecast of a 1.7 per cent contraction.
As part of its forecasts, the CBI also says that government will have to borrow almost £100bn more than previously forecast as it tries to bring a deeper-than-expected UK recession under control.
See below for the CBI's predictions of how the recession will affect your money:
* Household will spend less with consumption falling by 2.7 per cent in 2009 and a further 0.2 per cent in 2010, compared to a 1.7 per cent increase in spending in 2008.
* Household will save more with the ratio of income saved increasing from 0.8 per cent in 2008 to 2.8 per cent in 2009 and 4.5 per cent in 2010.
* Inflation is predicted to fall with the Consumer Price Index predicted to be 1.0 per cent in 2009 compared to 3.6 per cent in 2008. The Retail Price Index is expected to fall to -2.9 per cent in 2009 compared with +4.0 per cent in 2008, which may affect pensions and wage negotiations.
* Unemployment will increase to 2.59 million in 2009 and hitting 3.00 million people in 2010.
* Average earnings will increase at a smaller rate, with earning including bonuses increasing by 1.7 per cent in 2009 compared to 3.5 per cent in 2008.
Last Modified: 16 Feb 2009
By: Channel 4 News
Buisness leaders predict that household spending will fall, unemployment will rise to three million, and wage increases will shrink as the economy falls deeper into recession.
In its latest dire warning on the economy, the Confederation of British Industry (CBI) - which represents 240,000 firms in the UK - said the economy will shrink by 3.3 per cent in 2009, compared with its November forecast of a 1.7 per cent contraction.
As part of its forecasts, the CBI also says that government will have to borrow almost £100bn more than previously forecast as it tries to bring a deeper-than-expected UK recession under control.
See below for the CBI's predictions of how the recession will affect your money:
* Household will spend less with consumption falling by 2.7 per cent in 2009 and a further 0.2 per cent in 2010, compared to a 1.7 per cent increase in spending in 2008.
* Household will save more with the ratio of income saved increasing from 0.8 per cent in 2008 to 2.8 per cent in 2009 and 4.5 per cent in 2010.
* Inflation is predicted to fall with the Consumer Price Index predicted to be 1.0 per cent in 2009 compared to 3.6 per cent in 2008. The Retail Price Index is expected to fall to -2.9 per cent in 2009 compared with +4.0 per cent in 2008, which may affect pensions and wage negotiations.
* Unemployment will increase to 2.59 million in 2009 and hitting 3.00 million people in 2010.
* Average earnings will increase at a smaller rate, with earning including bonuses increasing by 1.7 per cent in 2009 compared to 3.5 per cent in 2008.
Mini workers turn on union bosses
Link to the article
Last Modified: 16 Feb 2009
By: Darshna Soni
Workers at Mini sacked with just one hour's notice, many with no pay-off, were so angry they pelted union leaders with fruit, accusing them of betrayal.
Eight hundred and fifty agency staff were dismissed at the end of their shift at the plant in Cowley, which is cutting production to just five days a week.
BMW has built the Mini into a hugely successful brand, especially overseas, but it has not been immune from the crisis across the industry, with a 35 per cent slump in sales last month.
Last Modified: 16 Feb 2009
By: Darshna Soni
Workers at Mini sacked with just one hour's notice, many with no pay-off, were so angry they pelted union leaders with fruit, accusing them of betrayal.
Eight hundred and fifty agency staff were dismissed at the end of their shift at the plant in Cowley, which is cutting production to just five days a week.
BMW has built the Mini into a hugely successful brand, especially overseas, but it has not been immune from the crisis across the industry, with a 35 per cent slump in sales last month.
Can the Colonel save our jobs?
Link to the article
Last Modified: 16 Feb 2009
By: Helene Cacace
More4 News finds it is not all doom and gloom in the job market as KFC says it is creating up to 9,000 jobs.
It would seem to be the one area of the economy that is expanding like a junk food addict's waistline.
But if fast food is our only growth industry, where does that leave the government's drive for healthy eating?
Helene Cacace reports.
Last Modified: 16 Feb 2009
By: Helene Cacace
More4 News finds it is not all doom and gloom in the job market as KFC says it is creating up to 9,000 jobs.
It would seem to be the one area of the economy that is expanding like a junk food addict's waistline.
But if fast food is our only growth industry, where does that leave the government's drive for healthy eating?
Helene Cacace reports.
Sunday, 15 February 2009
Author attacks 2012 Olympic legacy
Link to the article
Last Modified: 15 Feb 2009
By: Channel 4 News
Hackney resident and celebrated author Iain Sinclair reports for Channel 4 News on how developments for the 2012 Olympic Games are destroying east London.
His new book, Hackney, That Rose-Red Empire, comes out this week but has already caused controversy.
Sinclair was banned from launching the book, which explores Hackney's past, in a local library.
The book, and his report for Channel 4 News, also looks to the future, namely the 2012 Games - and Sinclair is not a fan.
He says it will destroy the history and community of East London.
However Olympics minister Tessa Jowell has come out fighting against Sinclair's criticisms, saying that 75p in every £1 spent on the Olympics is spent on regeneration.
Last Modified: 15 Feb 2009
By: Channel 4 News
Hackney resident and celebrated author Iain Sinclair reports for Channel 4 News on how developments for the 2012 Olympic Games are destroying east London.
His new book, Hackney, That Rose-Red Empire, comes out this week but has already caused controversy.
Sinclair was banned from launching the book, which explores Hackney's past, in a local library.
The book, and his report for Channel 4 News, also looks to the future, namely the 2012 Games - and Sinclair is not a fan.
He says it will destroy the history and community of East London.
However Olympics minister Tessa Jowell has come out fighting against Sinclair's criticisms, saying that 75p in every £1 spent on the Olympics is spent on regeneration.
Saturday, 14 February 2009
Cost of helping jobless spirals as Labour's popularity declines
Link to the article
Last Modified: 14 Feb 2009
By: Gary Gibbon
Extra spending to help the unemployed does not appear to be making the Labour government any more popular. Gary Gibbon reports.
But all this spending is not making the government any more popular, as the impact of job losses is felt most in Labour heartlands like Sheffield.
A poll for tomorrow's Independent on Sunday puts Labour on just 25 per cent, their lowest showing yet.
That is despite new schemes like the Flexible New Deal, using private sector firms to help the long term unemployed find work.
It was designed to help cities like Sheffield, blighted by job losses in the 1980s.
Our political editor Gary Gibbon went to find out whether it is making a difference.
Last Modified: 14 Feb 2009
By: Gary Gibbon
Extra spending to help the unemployed does not appear to be making the Labour government any more popular. Gary Gibbon reports.
But all this spending is not making the government any more popular, as the impact of job losses is felt most in Labour heartlands like Sheffield.
A poll for tomorrow's Independent on Sunday puts Labour on just 25 per cent, their lowest showing yet.
That is despite new schemes like the Flexible New Deal, using private sector firms to help the long term unemployed find work.
It was designed to help cities like Sheffield, blighted by job losses in the 1980s.
Our political editor Gary Gibbon went to find out whether it is making a difference.
Friday, 13 February 2009
New low for EU economy
Link to the article
New official data from Eurostat indicates the Eurozone economy shrank by 1.5% in the previous quarter and 1.2% on the year.
John Moylan has been looking at the figures.
New official data from Eurostat indicates the Eurozone economy shrank by 1.5% in the previous quarter and 1.2% on the year.
John Moylan has been looking at the figures.
Interview: Lord Turnbull
Link to the article
Last Modified: 13 Feb 2009
By: Krishnan Guru-Murthy
Krishnan Guru-Murthy interviews Lord Andrew Turnbull, former head of the civil service about lavish hospitality invitations received by civil servants; and also about his view of the current banking crisis.
"We used to be criticised for being introverted and out of touch. Nowadays we have tried to develop people who are outward facing, listening, explaining - in contact with their constituencies but not captured. The business constituency is obviously one of those, if you are going to be touch with them - they make extensive use of hospitality.
"You have a choice. You can either stay in your cell and pray, or you can go out and join them.
"You need to think clearly. It must not be too lavish.
"A good starting point is to stay away from private yachts."
Lord Turnbull on the banking crisis
"You're making the mistake of starting in the middle of the story. The perception that it started with greedy, wrongly incentivised bankers. This story, as Adair Turner's excellent economy lecture tells you, starts way, way back.
"It starts with the global imbalances between the US and China; it starts with inflation targeting which took no account of asset prices and it goes right back to the Clinton administration's active promotion of sub-prime lending. All that happens before you get to the banking story.
"Now what it is, is a collective failure that all sorts of people - the regulator, the bankers, the economic policy makers. They believed in a particular view of the world and the things which should have acted as restraints in all this - the regulators, rating agencies, accounting, corporate governments - none of that worked, because of the power of consensus.
"It was a bit like Y2K. Why did we all believe Y2K? We all went along with each other. A very strong collective belief came about.
"The best source of this is Alan Greenspan. He had a view that banks would not be so foolish as to destroy themselves. But then he said in a rather plaintive sense, 'I'm terribly sorry but that was not right.'
"And that was the collective view that things were all going well. There was a sense that a bubble was developing (although Greenspan said 'you cannot prick bubbles you can only pick up the mess'). But no-one believed that it was a bubble of the proportions that we now have.
"And so to focus solely on the banking centres is a pretty inadequate discussion.
"Go and read Adair Turner's lecture, go and read the Group of Thirty report, chaired by Paul Volcker and then you will get a much wider appreciation of this whole story."
Last Modified: 13 Feb 2009
By: Krishnan Guru-Murthy
Krishnan Guru-Murthy interviews Lord Andrew Turnbull, former head of the civil service about lavish hospitality invitations received by civil servants; and also about his view of the current banking crisis.
"We used to be criticised for being introverted and out of touch. Nowadays we have tried to develop people who are outward facing, listening, explaining - in contact with their constituencies but not captured. The business constituency is obviously one of those, if you are going to be touch with them - they make extensive use of hospitality.
"You have a choice. You can either stay in your cell and pray, or you can go out and join them.
"You need to think clearly. It must not be too lavish.
"A good starting point is to stay away from private yachts."
Lord Turnbull on the banking crisis
"You're making the mistake of starting in the middle of the story. The perception that it started with greedy, wrongly incentivised bankers. This story, as Adair Turner's excellent economy lecture tells you, starts way, way back.
"It starts with the global imbalances between the US and China; it starts with inflation targeting which took no account of asset prices and it goes right back to the Clinton administration's active promotion of sub-prime lending. All that happens before you get to the banking story.
"Now what it is, is a collective failure that all sorts of people - the regulator, the bankers, the economic policy makers. They believed in a particular view of the world and the things which should have acted as restraints in all this - the regulators, rating agencies, accounting, corporate governments - none of that worked, because of the power of consensus.
"It was a bit like Y2K. Why did we all believe Y2K? We all went along with each other. A very strong collective belief came about.
"The best source of this is Alan Greenspan. He had a view that banks would not be so foolish as to destroy themselves. But then he said in a rather plaintive sense, 'I'm terribly sorry but that was not right.'
"And that was the collective view that things were all going well. There was a sense that a bubble was developing (although Greenspan said 'you cannot prick bubbles you can only pick up the mess'). But no-one believed that it was a bubble of the proportions that we now have.
"And so to focus solely on the banking centres is a pretty inadequate discussion.
"Go and read Adair Turner's lecture, go and read the Group of Thirty report, chaired by Paul Volcker and then you will get a much wider appreciation of this whole story."
Thursday, 12 February 2009
MPs question Brown over banking crisis
Link to the article
Last Modified: 12 Feb 2009
By: James Blake
As MPs question the prime minister over the banking crisis, he appears to blame the financial regulator for its oversight of HBOS.
The prime minister has told MPs that the bank regulator, the Financial Services Authority, had given HBOS a clean bill of health for its financial strategy before the appointment of its former chief executive to the regulator.
Sir James Crosby yesterday resigned as deputy chairman of the FSA after it emerged that a former employee had claimed he had been sacked by Sir James for warning that Halifax Bank of Scotland was taking too many risks.
Called to give evidence to the cross-party liaison select committee of MPs this morning, Gordon Brown said the treasury had not been aware of the investigation and that Sir James's appointment to the FSA had been recommended by an independent panel.
Last Modified: 12 Feb 2009
By: James Blake
As MPs question the prime minister over the banking crisis, he appears to blame the financial regulator for its oversight of HBOS.
The prime minister has told MPs that the bank regulator, the Financial Services Authority, had given HBOS a clean bill of health for its financial strategy before the appointment of its former chief executive to the regulator.
Sir James Crosby yesterday resigned as deputy chairman of the FSA after it emerged that a former employee had claimed he had been sacked by Sir James for warning that Halifax Bank of Scotland was taking too many risks.
Called to give evidence to the cross-party liaison select committee of MPs this morning, Gordon Brown said the treasury had not been aware of the investigation and that Sir James's appointment to the FSA had been recommended by an independent panel.
Wednesday, 11 February 2009
Bankers 'sorry' but not 'responsible'
Link to article at Channel 4
Last Modified: 10 Feb 2009
By: James Blake
Four of the men at the centre of the banking crisis deny being "personally responsible" for what happened and say they have all lost money.
The four bankers in the firing line were Lord Stevenson of Coddenham, the former chairman of Halifax Bank of Scotland, Andy Hornby, the bank's former chief executive, as well as Sir Fred Goodwin, the former chief executive of the Royal Bank of Scotland and Sir Tom McKillop the former chairman.
It was the "s-word" that everyone wanted and expected, as bank bosses finally said "sorry" in public this morning for the chaos that led to the massive taxpayer bailout.
The apologies came as they faced hostile questioning from MPs on the treasury select committee.
Last Modified: 10 Feb 2009
By: James Blake
Four of the men at the centre of the banking crisis deny being "personally responsible" for what happened and say they have all lost money.
The four bankers in the firing line were Lord Stevenson of Coddenham, the former chairman of Halifax Bank of Scotland, Andy Hornby, the bank's former chief executive, as well as Sir Fred Goodwin, the former chief executive of the Royal Bank of Scotland and Sir Tom McKillop the former chairman.
It was the "s-word" that everyone wanted and expected, as bank bosses finally said "sorry" in public this morning for the chaos that led to the massive taxpayer bailout.
The apologies came as they faced hostile questioning from MPs on the treasury select committee.
Interview: Barclays CEO John Varley
Link to the article at Channel 4
Last Modified: 09 Feb 2009
By: Faisal Islam
Barclays group chief executive John Varley talks to Faisal Islam about the decision for executive directors not to be paid bonuses for 2008.
He called for "adjustments" to be made to "compensation structures in the industry", stating that "willingness to take risks was definitely fuelled by the banks".
Last Modified: 09 Feb 2009
By: Faisal Islam
Barclays group chief executive John Varley talks to Faisal Islam about the decision for executive directors not to be paid bonuses for 2008.
He called for "adjustments" to be made to "compensation structures in the industry", stating that "willingness to take risks was definitely fuelled by the banks".
Barclays Bank says no bonuses for senior executives
Link to the article at Channel 4
Last Modified: 09 Feb 2009
By: James Blake, Faisal Islam
As Barclays announces a £6bn profit for 2008, bank chief executive John Varley tells Channel 4 News he is already cutting back on reward payouts.
Barclays Bank has said it will not give bonuses to its senior executives this year, despite making a profit last year.
Britain's fourth biggest bank announced it made £6bn last year, but that was well down on the year before. And the chief executive, John Varley, said none of its directors would be given a bonus.
Treasury Minister Yvette Cooper said bankers had a "moral responsibility" to forego their bonuses this year, as pressure grows on the government to do more to curb executive pay.
Last Modified: 09 Feb 2009
By: James Blake, Faisal Islam
As Barclays announces a £6bn profit for 2008, bank chief executive John Varley tells Channel 4 News he is already cutting back on reward payouts.
Barclays Bank has said it will not give bonuses to its senior executives this year, despite making a profit last year.
Britain's fourth biggest bank announced it made £6bn last year, but that was well down on the year before. And the chief executive, John Varley, said none of its directors would be given a bonus.
Treasury Minister Yvette Cooper said bankers had a "moral responsibility" to forego their bonuses this year, as pressure grows on the government to do more to curb executive pay.
Rates cut amid warning of a 'severe and synchronised' downturn
Link to the article at Channel 4
Last Modified: 05 Feb 2009
By: Faisal Islam
The Bank of England base rate is cut by half a per cent to stand at just 1 per cent, the lowest level ever, as Faisal Islam reports.
The Bank of England today warned of a "severe and synchronised" economic downturn spreading across the world.
But with rates now heading towards zero, attention is switching to what else the bank can do to keep boosting the economy.
Last Modified: 05 Feb 2009
By: Faisal Islam
The Bank of England base rate is cut by half a per cent to stand at just 1 per cent, the lowest level ever, as Faisal Islam reports.
The Bank of England today warned of a "severe and synchronised" economic downturn spreading across the world.
But with rates now heading towards zero, attention is switching to what else the bank can do to keep boosting the economy.
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