THE NEWS IN BRIEF - THE GOOD AND THE BAD: UK TO AVOID RECESSION BUT OUR CREDIT RATING COULD BE DOWNGRADED. UNEMPLOYMENT HIGHEST FOR 17 YEARS. CLAIM THAT GOLDMAN SACHS IS “MORALLY BANKRUPT” AND THE MAGIC MIRROR THAT HELPS YOU TRY ON CLOTHES.
THE GOOD AND THE BAD …..
GUARDIAN
UK LOOKS SET TO AVOID DOUBLE-DIP RECESSION … WITH DEBT-FUELLED RECOVERY
By Phillip Inman
The better off are dipping into savings while poorer families are turning to pay-day loan companies. Wage inflation (excluding bonuses) is running at an annual rate of 1.7% – price inflation is almost double at 3.6%. What kind of consumption-driven recovery are economists cheering when wages are growing more slowly than the cost of a weekly shop? The answer is a debt-fuelled recovery. Like a Tour de France cyclist who only had a croissant for breakfast, the UK economy must dip into personal reserves to keep going.
DAILY TELEGRAPH
UK COULD LOSE COVETED AAA RATING, WARNS FITCH
By Jonathan Sibun, Louise Armitstead
Britain's hopes of retaining its prized triple-A credit rating were dealt a blow last night after Fitch said the country was more likely than not to be downgraded. In a major setback for George Osborne ahead of next week’s Budget, Fitch said the “risks and uncertainty” surrounding the Coalition’s debt reduction plans were “material”.
BAD NEWS FOR JOBS AND PENSIONS….
DAILY MAIL
UNEMPLOYMENT AT HIGHEST SINCE 1995
By Ed Monk
The number of people without work rose by 28,000 from November to January, taking the unemployment rate to its highest level for more than 16 years. Data from the Office for National Statistics (ONS) also showed higher numbers claiming unemployment benefits and the private sector creating mostly part-time roles to make up for losses in the public sector.
THE SUN
800 JOBS AT THREAT IN MINES ROW
By Steve Hawkes, Business Editor
BRITAIN'S biggest coal mine was threatened with closure yesterday — as bosses declared war on their own workers. UK COAL "went nuclear" in a bitter fight with staff at Daw Mill colliery in Warwickshire. In a statement yesterday, UK Coal said productivity at Daw Mill was still below budget despite union leaders agreeing to new working terms and conditions three months ago.
DAILY EXPRESS
NEW EU RULES WRECK PENSIONS
By Andrew Johnson and Sarah O’Grady
Pension savers are facing a double whammy of pain because of new European Union rules, one of Britain’s top insurers warned yesterday. New “unisex” regulations will mean lower pensions for men while much- criticised solvency controls on how insurers invest money could push up pension costs for everyone, say experts
THE REST OF THE NEWS…..
GUARDIAN
GOLDMAN SACHS DIRECTOR QUITS 'MORALLY BANKRUPT' WALL STREET BANK
Juliette Garside and Jill Treanor
Greg Smith resigns as executive director of Goldman's European equity derivatives business after devastating attack. Wall Street bank Goldman Sachs has suffered a severe blow to its reputation after one of its bankers announced his resignation in the New York Times by declaring his employer "morally bankrupt". Questions were immediately raised about the relationship between the firm and its clients – whom the departing employee, Greg Smith, said were described as "muppets" by his superiors.
FINANCIAL TIMES
BO XILAI REPLACED AS CHONGQING CHIEF
By Jamil Anderlini
Bo Xilai, the maverick Chinese politician who until recently was a frontrunner for promotion to the top decision-making body of the ruling Communist party, has been dismissed as party secretary of Chongqing municipality. Mr Bo has been replaced by Zhang Dejiang, a North Korean-trained economist and vice-premier, according to the official Xinhua news agency and sources close to the Chinese leadership.
THE SCOTSMAN
FASHION BOSS VOWS TO REVIVE CHAIN
By Graeme Evans
French Connection’s UK stores slumped to an £8.2 million loss today after a grim winter for the fashion chain. Founder and chief executive Stephen Marks described conditions as the worst he has known, adding that he would take action to revitalise the UK operation. He said it was increasingly difficult for the chain, which has been on the UK high street for 40 years, to maintain its full-price stance as it has done previously.
AND FINALLY …..
DAILY TELEGRAPH
MAGIC MIRROR TO TAKE STRESS OUT OF SHOPPING
Store managers are hoping a magic mirror that tries your clothes on for you will help take the stress out of shopping - and lure consumers back from the internet. The new device, which goes on display at Manchester's Trafford Centre tomorrow, allows shoppers to sample clothes from a number of retailers all in one place. Using 3D technology, the mirror can superimpose dresses, skirts and tops over a live picture of a shopper's body as they move in front of a camera placed on top of the screen, the Daily Mail reported.
