Morning papers: Britain’s main export market no longer EU
Britain is exporting more goods to countries outside the European Union than to countries inside for the first time since the UK joined the Common Market in the 1970s, official statistics show, reports The Daily Telegraph.
Companies have focused their efforts on fast-growing economies in Latin America and Asia, as they attempt to offset the effects of the downturn in the eurozone, where demand for British-made goods is slowing.
BoE split on decision to boost QE
Two members of the Bank of England’s interest rate setting committee did not want to restart the printing presses this month, minutes of their meeting show, surprising economists who thought the decision had been unanimous, reports the Financial Times.
Seven of the nine Monetary Policy Committee members voted to buy another £50bn of gilts with newly created electronic money, a process known as quantitative easing, to try to lift the economy from its double-dip recession.
IMF calls for ‘decisive action’ as Spanish bond yields near danger level
The International Monetary Fund has warned the eurozone’s leaders to take “decisive action” as Spanish bond yields shot up to dangerous levels, signalling a fresh leg of the sovereign debt crisis, reports The Guardian.
In its annual report on the eurozone’s policies, known as an Article IV, the IMF made clear that it believes euro ministers have not yet done enough to underpin the future of the single currency.
Fixes are sought in rate scandal
Leading central bankers are banding together to come up with solutions to the Libor interest rate-rigging scandal, a sign of growing alarm at the Bank of England, the Federal Reserve and elsewhere about the widening fallout, reports The Wall Street Journal.
Mervyn King, the governor of the Bank of England, sent a letter Wednesday to other central bankers asking for a dinner Sept. 9 in Basel, Switzerland, to discuss Libor’s shortcomings, according to a person familiar with the contents of the letter. Mr. King said in the letter that it is now “very clear that radical reforms of the Libor system are needed,” this person said.
Austerity could last a decade, warns Cameron as he says he cannot see a day when the economy is not under pressure
Britain faces years more austerity, David Cameron warned last night as he admitted there was no end in sight to the Government’s programme of spending cuts, reports the Daily Mail.
The Prime Minister said that despite some recent good news, such as falling inflation, the economic situation remained ‘a lot tougher’ than had been predicted when the Coalition took office in 2010.
Lord Green ‘has questions to answer’
Lord Green, the UK trade minister and former head of HSBC, has been thrust into the political spotlight following allegations that the bank inadvertently allowed the laundering of drug and terrorist money during his time in charge, reports the Financial Times.