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Standard Chartered researchers say premature fiscal tightening could cause double dip recession....Read more...| RBS brings heat to the Treasury |
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| UK Economic |
| Written by Gary Howes |
| Tuesday, 30 June 2009 08:55 |
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UK Economic News Roundup: RBS is in the morning news as it is reported to be at the centre of a green lawsuit aimed at the Treasury. Environmental groups have launched what could be a landmark lawsuit against the Treasury to force it to ensure that taxpayers’ money invested in RBS (LON:RBS) supports only projects that satisfy minimum green and human rights standards. The move is the latest sign of how the government’s stakes in some of Britain’s biggest commercial banks could affect the companies’ operations and could prompt such banks to try and buyout the government stake as quickly as possible. Three groups of environmentalists – the World Development Movement, Platform and People & Planet – are behind the case, which has been lodged at the High Court, the FT writes. FirstGroupFirstGroup (LON:FGP), Britain’s largest rail and bus company, insisted on the logic of combining with rival National Express to create the country's largest operator, despite its rival dismissing an initial approach. First, which is valued at £1.8bn on the stock market, has approached National Express, which is valued at £444m and is weighed down by £1.2bn of net debt and problems with the East Coast rail franchise, the Telegraph writes. UK Bank warningNeelie Kroes, the European Union competition commissioner, is on Tuesday set to warn UK banks for a second time within a week that they may have to make disposals as a condition for the granting of state aid. Ms Kroes’s tough message to the British Bankers’ Association conference emphasises the hard line that the EU is ready to take with UK banks that have received state aid – notably Lloyds Banking Group and Royal Bank of Scotland, the FT reports. The Organisation for Economic Co-operation and Development has waded into the pre-election war of words over the public finances, urging the Government to impose swingeing spending cuts. In its annual survey of the British economy, the Paris-based institution told the Government to slash the size of its deficit far more than it currently intends or face major problems in the coming years, the Telegraph writes. Royal MailPlans to inject capital into Royal Mail that would avoid the need to sell part of the postal group have been discussed by senior Labour MPs and ministers in recent weeks, The Times has learnt. The talks emerged as Lord Mandelson, the Business Secretary, cast more doubt over the timing of legislation that would mean a 30 per cent stake in the postal group being taken out of government hands. |










