It’s funny how two people reading the same thing can see such different things. Looking at the latest ITEM Club forecast the Guardian talks of “Dismal Growth” whilst the Express sees hope in exports keeping us out of recession.
Elsewhere today we hear about less money for graduates, more money for the IMF and another battle between Virgin and BA.
TO GROW OR NOT TO GROW ….
GUARDIAN
'DISMAL' GROWTH FORECAST FOR UK ECONOMY
The UK narrowly avoided double-dip recession and will struggle for the rest of the year, forecasting group warns The Ernst & Young Item Club has forecast British GDP growth at a "dismal" 0.4% this year, half the 0.8% estimated by the tax and spending watchdog the Office for Budget Responsibility. The UK will struggle for the rest of the year unless businesses stop hoarding cash and start investing, the forecaster warns today.
DAILY EXPRESS
EXPORTS WILL KEEP UK OUT OF RECESSION SAYS REPORT
By Peter Cunliffe
A robust performance by Britain’s exporters has helped prevent the economy sliding into a double-dip recession, according to an influential report. Demand for British exports has helped offset the effects of the financial pressure on households which has left domestic consumer spending weak, said the study by the Ernst & Young ITEM Club.
TAXING ISSUES …..
FINANCIAL TIMES
BARCLAYS’ TAX DEALS FACE US SCRUTINY
By Megan Murphy
Barclays’ tax planning business is being investigated by a US court this week over whether a transaction designed by the bank cost the US government more than $1bn in lost tax. The US tax Service claims that Barclays created an abusive tax shelter that exploited loopholes between US and UK tax laws.
LESS MONEY & MORE MONEY ……
DAILY TELEGRAPH
GRADUATE PAY SET TO FALL TO LOWEST SINCE 2003
By Louisa Peacock, Jobs Editor
Thousands of graduates face worse starting salaries this summer than if they had left university almost 10 years ago, new figures show. Graduate salaries are expected to fall this year to their lowest level in real terms since 2003, the report from Incomes Data Services (IDS) reveals. The typical pay rate for entry-level graduate roles will be frozen at £25,000 this year compared to 2011.
DAILY TELEGRAPH
GEORGE OSBORNE READY TO OFFER £10BN EXTRA FIREPOWER FOR THE IMF
By Philip Aldrick, Economics Editor
Britain is close to agreeing a new £10bn commitment to the International Monetary Fund as it seeks to double its war-chest at its spring meeting this week. George Osborne is expected to support the IMF's calls for more money, but will only pledge the extra funds if agreement can be struck with all the major non-eurozone nations, bar the US.
OTHER NEWS …..
FINANCIAL TIMES
BANKS URGE FED RETREAT ON CREDIT EXPOSURE
By Tom Braithwaite
Wall Street banks are resisting a Federal Reserve plan to limit their exposure to individual companies and governments, warning it will cut a combined $1.2tn from credit commitments at Goldman Sachs, JPMorgan Chase, Morgan Stanley, Bank of America and Citigroup. Senior executives at the banks have argued that the plan would harm liquidity, according to people familiar with the talks.
DAILY MAIL
CONSERVATORY TAX TO BE AXED FOR BEING 'AN ATTACK ON ASPIRATION'
By Jason Groves
Ministers are to scrap plans for a ‘conservatory tax’ following a massive Tory backlash. A senior Government source told the Mail that the proposals are ‘dead in the water’. Although the Liberal Democrat-inspired plans are still out for consultation, the source said: ‘We are absolutely not going to have a conservatory tax. It is an attack on aspiration. It will be blocked.’
WWW.BBC.CO.UK
VIRGIN ATLANTIC TO APPEAL AGAINST BMI SALE TO BA
Virgin Atlantic is to appeal against the European Commission's decision to allow the owner of British Airways to buy the airline BMI. IAG, which also owns Spain's Iberia, has been given the go-ahead to buy its smaller rival from Lufthansa for £172.5m. But Virgin said that the Commission "seemingly ignored all of the strong cases" made against the deal
