8th September 2011
From the New York Times, if history is a guide, the odds that the American economy is falling into a double-dip recession have risen sharply in recent weeks and may even have reached 50 percent.
A market update from the Financial Times, markets are cautiously positive, with traders apparently reluctant to chase the previous session's rally with the same vigour ahead of a slew of headline risks.
News from the UK:
From the Financial Times, David Cameron has given the strongest signal yet that he will back recommendations to build a firewall around Britain's retail banking operations, but he wants to delay the implementation of the structural upheaval for a number of years.
While Business leaders are urging the Bank of England to authorise another £50bn of quantitative easing when its monetary policy committee meets today in order to boost bank lending and prevent the economy slipping back into recession, says the Guardian.
How low interest rates have affected the consumer, from the BBC, savers have lost out on £43bn but mortgage borrowers have gained £51bn owing to low interest rates.
The Telegraph is reporting, public sector pay has been creeping up despite a so-called freeze on wages, while private sector pay rises have fallen further, the latest figures reveal.
Also from the Telegraph, British councils and the UK bank bail-out fund will defend their right to get back the entire £5bn they lost in the Icelandic banking crash against a group of hedge funds and other creditors who claim they should get a share of the money.
Thinking about the future of the UK, from the Guardian, investment in innovation is needed to secure the UK's future, which is why we are launching the Big Innovation Centre
News from the eurozone:
The European Central Bank is expected to signal a change in policy direction on Thursday, halting an interest-rate rise cycle just five months after it started as the euro zone debt crisis weighs on the economy, reports Reuters.
And from the Wall Street Journal, Greece's Socialist government is scrambling to cut public spending after receiving stark ultimatums from euro-zone governments that further rescue money will be withheld if Athens doesn't deliver on promises to reduce its budget deficit.
More bad news from ratings agencies: Fitch Ratings warned on Thursday that it might downgrade China's credit rating within two years as the country's banks struggle with debt loads following a lending surge to help lift the economy during the 2008 financial crisis, from Reuters.