Morning papers: King stands by inflation targeting

The governor of the Bank of England has called for it to shed some of the burden of reviving Britain’s economy, suggesting the UK government should do more to support the “disappointingly slow” recovery, reports the Financial Times.

Sir Mervyn King’s comments came just hours after the Bank of Japan bowed to political pressure to overcome deflation and spur growth in the world’s third-largest economy.

HMV handed lifeline after debt deal

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Collapsed music and movies chain HMV could be saved after restructuring firm Hilco took over the retailer’s debts from its lenders Lloyds and Royal Bank of Scotland, reports the Guardian.

It is the first step towards rescuing the iconic music and DVD business after it collapsed into administration last week under debts of £176m. Buying the debt gives Hilco effective control of the business and buys time for the administrators.

Mario Draghi: ‘Darkest clouds over eurozone have passed’

The eurozone can begin 2013 with more confidence than last year but it is up to governments to carry the bloc forward with reforms while the European Central Bank (ECB) delivers stable prices, ECB president Mario Draghi said on Tuesday, reports the Daily Telegraph.

Mr Draghi’s pledge in July last year to do “whatever it takes” to preserve the euro and his follow-up plan for a new ECB bond-purchase programme helped bring the eurozone back from the brink of break-up.

Hundreds of Barclays and Rolls-Royce jobs under threat

Two of the UK’s highest profile employers, Barclays bank and Rolls-Royce, have signalled that hundreds of jobs are on the line after launching formal consultations on cost-cutting, reports the Guardian.

All 9,000 staff in the investment banking arm of Barclays received an email informing them that a consultation had begun, which could lead to redundancies, as part of an on-going review instigated by the group’s new chief executive Antony Jenkins. Rolls-Royce, one of the UK’s biggest manufacturing names, also announced plans to cut 378 jobs at an aircraft and marine engine plant in Ansty, near Coventry.

Adam Posen takes a big swing at ‘autocratic’ Bank Governor

A former member of the Bank of England’s Monetary Policy Committee has launched a ferocious attack on the Bank’s culture and the autocratic nature of the governor, reports The Times.

Adam Posen claimed yesterday that the Court — the directors — of the Bank of England was “excessively weak” and allowed Sir Mervyn King to get away with whatever he wants.

World unemployed ‘set to hit a record 202 million’

The global dole queue will stretch to a record 202m this year as another 5m people are thrown out of work around the world, the International Labour Organisation warned today, reports the Independent.

The UN jobs watchdog predicts an even bigger rise in unemployment this year than the 4.2m increase seen last year, taking the global jobless rate to 6 per cent.