THE BEGINNING OF THE NEW RECESSION AND THE ANNIVERSARY OF THE END OF THE OLD. THIS DAY MARKS END OF RECESSION IN 1993. FIRST FOR STRIKE SINCE 1970s
AND TWO THOUSAND JOBS TO GO AT HSBC
THE DAILY DOZEN OR SO OF THE MOST EYE CATCHING FINANCIAL NEWSPAPER ARTICLES
LONGEST SLUMP IN PEACETIME AS BRITAIN SLIDES INTO RECESSION
By James Kirkup, Deputy Political Editor
Britain is suffering the longest peacetime slump in a century. The Office for National Statistics surprised the City by announcing that the economy shrank by 0.2 per cent in the first quarter of 2012, the second consecutive fall. Britain has suffered a longer and deeper decline than almost every other advanced economy. The ONS said the contraction meant that the economy was 4.3 per cent smaller than it was before the financial crisis, which began in 2007.
OSBORNE HOLDS FAST DESPITE DOUBLE DIP
By Chris Giles, George Parker And Jim Pickard
George Osborne said he had no intention of easing the government’s deficit reduction plan after the economy plunged into a double-dip recession and the longest downturn for more than a century. The chancellor blamed the eurozone for Britain’s economic plight, which has left output 4.3 per cent below the 2008 peak..
DOUBLE-DIP PUTS PRESSURE ON THE BANK OF ENGLAND FOR FURTHER QE
By Hugo Duncan
Pressure was last night mounting on the Bank of England to restart the printing presses after it emerged that Britain suffered its first double-dip recession since the 1970s. The slump – the first double-dip since 1975 – triggered a fierce debate over whether the Bank should extend its £325billion quantitative easing (QE) programme
ON THIS DAY – 1993: RECESSION OVER – IT’S OFFICIAL
The government has reacted with relief to news that Britain’s economy grew by 0.2% in the first three months of this year, and declared the longest recession since the 1930s officially over.
…. THE OTHER NEWS ….
FED SEES ECONOMY RECOVERING GRADUALLY
By James Politi and Robin Harding in Washington
Federal Reserve officials predicted lower unemployment rates and suggested the appropriate time for interest rate hikes was sooner than previously thought. They expect growth in gross domestic product between 2.4 and 2.9 per cent this year, higher than the 2.2 per cent to 2.7 per cent projections published in January.
BRUSSELS TO RELAX 3PC FISCAL TARGETS AS REVOLT SPREADS
By Ambrose Evans-Pritchard
The European Commission is preparing a major shift in economic strategy, fearing that excessive budget cuts will inflict unnecessary damage on eurozone countries. Officials believe they have enough legal leeway to relax budget deficit targets for eurozone states without violating the Stability and Growth Pact, though the plans risk a serious showdown with Germany.
FORD FACES THREAT OF FIRST STRIKES SINCE 1970S
By Dan Milmo, industrial editor
Unite union will ballot 2,500 members at Ford UK over plans to close final salary scheme to newcomers and lower starting pay
RBS BOSS STEPHEN HESTER HITS BACK AT THE ‘HOSTILE COMMENTARIAT’
By Juliette Garside
Speaking at the Manchester Business School, Hester said he had ‘underestimated how intense, critical and long lasting’ the spotlight would be on the bank. He said it was “uncomfortable” to work there and suggested the government’s 82% stake in the bank was slowing down its recovery. He also hit back at the “commentariat” of politicians, media and commentators whose outcry forced him to waive his near £1m annual bonus, saying his motivation for staying on at RBS was to “prove the critics wrong”.
HSBC TO SLASH 2,000 UK JOBS
By Steve Hawkes, Business Editor
Managers face axe in ‘wipeout’
Britain’s most profitable bank will today axe more than 2,000 jobs to slash costs.
HSBC chief exec Stuart Gulliver’s move will wipe out layers of middle management in the giant’s corporate banking and high street arms. It is the biggest round of cuts by the bank in Britain since the credit crisis began.
HEATHROW GAINS BUT BAA AT A LOSS
BAA said record passenger numbers at Heathrow had helped it lift first-quarter sales. The Spanish-owned group, whose other airports include Stansted and Aberdeen, said Heathrow handled 15.7million passengers in the three months ended March 31, 4.4 per cent up on this time last year with transatlantic flights in greatest demand.
NEW PENSION RULES WILL LIFT STANDARD LIFE WHILE Q1 SALES DEFY FORECASTS
By Gareth Mackie
Standard Life yesterday predicted it will benefit from a raft of regulatory changes as it reported a smaller-than-expected dip in its first-quarter sales. Investec analyst Kevin Ryan said: “The star was the core UK business, which was down 9 per cent at £3.6bn but ahead of consensus of £3.3bn.”