UK Weekend Focus: 19 July 2009

Here is a set of articles worth reading and pondering about over the weekend.  It seems that Swine Flu has shifted into high gear with an increasing number of people conking out and GSK to make heavy dough in the process.  The UK government is lining up vultures banks to flog off its Llyods and RBS stake; handsome cheddar has already been distributed to the punters managing these stakes.

The Times Online reports that the gaping sieve known as the Final-salary Pension Scheme is coming to an end, as if we didn't already know about this revelation.  The article is a glaring and interesting read about the issues and losses being faced by the Pension Protection Fund, which reported an increase of circa 10% just between the month of May and June.

Another must read of this week is a post by Mr. Ambrose Evans-Pritchard that is drawing glaring parallels between the Irish welfare state and other western nations (yes I mean US, Britain and Europe).  He discusses how budget deficits are spiraling away to war-time levels and doesn't hold any punches back in arriving to his conclusions, as usual.

Reading Material

• UK Financial Investments (UKFI) is lining up banks to help in Lloyds and RBS sales - Credit Suisse and Citi are chosen as main advisers, other investment banks will be "allowed" to bid. The process will be managed by John Compton who is an ex-Merrill banker. (Telegraph)
• General Motors re-opens bidding for Opel and Vauxhall - Almost 5000 workers could be at risk in UK. (Telegraph)
• Final-salary schemes on its way of the Dodo - not a surprise at all for anyone following the pension market developments. (Times Online)
• James Purnell: I lost faith in Gordon Brown months ago - the former cabinet member is late to the party, most of us lost confidence just months after his election starting with the way he handled the Floods crisis. (Guardian)
• Nissan and Toyota plan to produce electric cars in UK - expecting an announcement from Nissan on Monday. (FT)
• Swine Flu is spreading its tentacles - as many as 100,000 people may have contracted Swine Flu in the UK. (Guardian, The Independent)
• Swine Flu vaccine supplies threatened - if those pesky Foreign Governments start flexing their export control muscles. (Times Online)
  Allied Carpets on its way down the kitchen sink - about 1,100 jobs are at risk. (Times Online)
• Britain's caught with its pants down - dumping toxic waste in others backyard. (Times Online)
• City firms plot to avoid 50pc tax - Private Equity firms looking to work around the 50% income tax rate - creative bunch! (Telegraph)
• Glaxosmithkline (GSK) cash registers ringing loud - Swine Flu pandemic is the new cash cow! (Telegraph)
• Tories say break up the big banks - the shadow chancellor wants to scrap the tri-partite system. (Times Online)
• UK economy set for biggest fall since 1945 - according to the Ernst & Young Item Club using the Treasury's forecasting model (The Independent)
• Iceland lawmakers warming up to the EU - the prime minister wants to join the EU for "stable exchange rates and interest rates"! (The Independent)

Interesting Charts

• Quarter-on-Quarter GDP of UK since 1955 - looks worse than the long-term chart of Live Hogs! (Guardian)
• Jobless Map of Britain - unemployment according to Claimant Count numbers - each slide gets worse! (Guardian)
• Negative Equity Map of UK Homeowners - circa 16% (1 in 6) prime mortgages in UK have fallen into negative equity (Guardian)

Comments

[Shaza (not verified)]

In the Southern Hemisphere Swine Flu has severly targeted mainly:

1. People with pre-existing medical conditions ie cancer and diabetes
2. Prenant women and their unborn babies
3. People that have a a BMI of around 40

If it progresses this way to the N. Hemisphere the death rates are low. BUT, that said, the thing has only just revealed itself, hopefully a vaccine is immenet, I don't care who get the cash as long as there is a safe and effective vaccine!