Morning papers: Clegg wants Budget to target the rich
The morning papers brought to you by Investment Adviser: Monday January 16 2012.
Nick Clegg is demanding a “tax the rich” Budget in March to head off growing fears that the Coalition will lose public support because its deficit-reduction programme is seen as unfair on ordinary families, reports the Independent.
Downgrades fan fresh euro fears
The cascade of rating downgrades that hit France and eight other eurozone nations last week casts fresh doubts over the monetary union’s ability to bail itself out of financial crisis and rescue its most vulnerable member, Greece, reports the Wall Street Journal.
Osborne promises extra cash for IMF
George Osborne will promise today to help struggling eurozone countries by increasing Britain’s contributions to the International Monetary Fund (IMF), admitting that “risks faced by the global economy have increased significantly over the past year,” according to the Financial Times.
Greece’s creditors seek end to deadlock
Greece’s international creditors are considering an appeal to the French and German leaders to break a deadlock in negotiations over the size of the losses to be taken by banks and other bondholders as part of a €100bn (£82.8bn) deal seen as crucial to bringing the country’s debt under control, reports the Financial Times.
Rates on hold ‘until 2016’
Interest rates will stay on hold at their record low until 2016, according to a leading forecaster, amid warnings that the UK has already double-dipped back into recession, reports the Daily Telegraph.
Faltering lenders threaten to knock US recovery hopes
Faltering performances from Bank of America, Goldman Sachs, Morgan Stanley and Citigroup, which all report fourth-quarter earnings this week, could dent optimism over the pace of US corporate recovery, reports the Financial Times.
Draghi rate cuts fail to boost confidence
The euro is losing the relationship with riskier assets that underpinned the currency in 2011 as the deepening sovereign debt crisis reduces the creditworthiness of even the biggest economies in the region, reports Bloomberg.
Eurozone banks’ ECB borrowing set to soar
Eurozone leaders’ borrowing of long-term central bank funds is expected to more than double to more than €1trn (£828bn) next month when struggling banks will be handed another lifeline by European authorities, reports the Daily Telegraph.
Sarkozy calls for reforms after loss of French AAA
Nicolas Sarkozy has promised a rush of economic reforms after France’s credit-rating downgrade was condemned by his political opponents as the mark of failure for his economic policies, reports the Guardian.
British manufacturers rely on overseas growth
A worsening economy will force British manufacturers to look overseas for growth in 2012, according to a survey of senior executives, reports the Independent.