Britannia Radio

Cameron says some heart-warming things here but doesn't grasp the 
real essentials here at all! There's a second poll here finding that 
that borrowing is very definitely bad idea with 73%  wanting reduced 
spending instead .  Nowhere have the Tories yet woken up to this sea 
change.  The public are way ahead of them!  And the public is - RIGHT!

The news on the US economy is hardly cheering and Obama's team are 
keeping their fingers crossed for Congressional approval of their 
plans.  It's not a foregone conclusion by any means.

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POLITICS HOME   30.1.09
Public "opposed to Brown's borrowing plan"

A majority of the public are opposed to government increasing 
borrowing to boost economic activity during the recession, according 
to a new poll.

In a survey by ComRes for the BBC, 60% of people disagreed that the 
government should increase borrowing to boost the economy, with only 
33% on favour. In addition, 73% felt that any tax cuts should be paid 
for by reduced government spending, rather than increased borrowing.

Elsewhere in the poll there was slightly better news for the Prime 
Minister as he and Alistair Darling were seen as most trusted to 
steer Britain through the recession, while only a third of people 
felt he should take "a lot" of the blame for current problems./
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GUARDIAN   30.1.09i . David Cameron
Cameron hails Thatcher in his call for 'truly popular capitalism'
Conservative leader to unveil ideas at dinner in Davos hosted by the 
bankers UBS
. Andrew Sparrow, senior political correspondent

David Cameron will tonight set out a vision for a "truly popular 
capitalism" in a speech calling for greater equality and a government 
focus on "recapitalising the poor rather than just the banks".

In a speech at the World Economic Forum in Davos, Switzerland, the 
Conservative leader will argue that the global recession should not 
encourage policymakers to stop supporting business and free market 
principles.

But he will argue that it is "time to place the market within a moral 
framework". Citing the example of America in the 1950s and Britain 
under Margaret Thatcher, he will say that capitialism works best when 
it serves the interests of ordinary people.

"The best chapters in our economic history are those that embrace the 
many, not the few," Cameron will say, hijacking New Labour's 
distinctive "many, not the few" campaign slogan.

"In America in the 1950s, there was a sense that everyone could have 
a slice of the pie. In the 1980s, Margaret Thatcher led an ownership 
revolution that gave millions a new stake in our economy. That was 
truly popular capitalism and we've never needed it more than we do 
today."

Cameron, who will be speaking at a dinner hosted by the bankers UBS, 
will defend business.
"We must stand up for business because it's businesses, not 
governments or politicians, that create jobs, wealth and opportunity. 
It's businesses that drive innovation and choice, and help families 
achieve a higher standard of living for a lower cost," he will say.

But he will also argue that there are times when government has to 
confront the interests of big corporations.
"We must also stand up to business when the things that people value 
are at risk," he will say. "So it's time to place the market within a 
moral framework - even if that means standing up to companies who 
make life harder for parents and families.
"It's time to help create vibrant, local economies - even if that 
means standing in the way of the global corporate juggernauts."

And Cameron will call for more equality: "It's time to decentralise 
economic power, to spread opportunity and wealth and ownership more 
equally through society ... and that will mean, as some have put it, 
recapitalising the poor rather than just the banks."

In a jibe at bankers, he will go on: "Our financial system boasts 
people so bright they've created financial instruments beyond even 
their own understanding. Now they need to use those talents to help 
the poorest build assets."

Tory sources said Cameron's comments about "recapitalising the poor" 
were consistent with Conservative policies such as the council tax 
freeze and the commitment to help low-income families who have lost 
out from the abolition of the 10p rate of income tax.

In a speech last year, the shadow chancellor, George Osborne, said 
government should focus on "raising the incomes and the aspirations 
and the opportunities for the millions of people who are stuck on low 
incomes".

But Labour and the Liberal Democrats have cast doubt on the sincerity 
of this pledge because other Tory policies, such as the increase in 
the inheritance tax threshold, seem specifically designed to help the 
rich, not the poor.

Cameron arrived in Davos on Wednesday night. During his two-day stay, 
he has held a meeting with Tony Blair and had talks with leaders from 
around the world, including the prime ministers of Turkey, Denmark, 
Sweden and Kenya.
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BBC Online      30.1.09  at 4.38pm
Obama calls recession a disaster

President Obama has called the contraction of the US economy in the 
final quarter of 2008 a "continuing disaster" for the American people.

US economic output fell 3.8%, the worst quarterly contraction in more 
than 26 years, official figures have shown.

Much steeper than the 0.5% fall between August and October, it is 
also the first time the US has seen consecutive quarterly economic 
declines since 1991.

More US workers lost their jobs in 2008 than any year since World War 
II.

The latest sign of the worsening US recession comes as President 
Obama's stimulus plan passes through Congress.

During 2008 as a whole, the US economy grew just 1.3%, down from 2% 
in 2007, and the slowest growth since 2001, the Commerce Department 
said.

Grim reading
The performance of the US economy between October and December was 
the worst since the first quarter of 1982.

+++++++++++++++++++++
  This is a much more severe global downturn that had been anticipated
Scott Brown, Raymond James & Associates
+++++++++++++++++++++

Although the 3.8% decline was not as bad as the 5.4% drop expected by 
the markets, analysts said the report still made grim reading.

Spending on durable goods such as cars, furniture and domestic 
appliances plunged 22.4% during the quarter, the biggest drop in this 
figure since 1987.
The amount spent on food and clothing dropped 7.1%, the steepest 
quarterly decline since 1950. Overall consumer spending was down 3.5%.

Overall exports fell by 19.7%.

Meanwhile, business equipment and software spending was down 27.8%, 
with spending by homebuilders down by 23.65%.
Nigel Gault, chief US economist at Global Insight, said the figures 
"did not look healthy".

Fellow analyst Scott Brown, chief economist at Raymond James & 
Associates agreed, saying the details "were pretty terrible".
"This is a much more severe global downturn that had been 
anticipated," said Mr Brown.

Stockpiling orders?
Other commentators said the decline in fourth quarter GDP would have 
been much worse, were it not for a big increase in firms stockpiling 
goods they effectively couldn't sell.
"The headline GDP figure was better than expected but this is very 
much an illusion supported by an unexpected increase in business 
inventories," said Sal Guatieri, senior economist at BMO Capital 
Markets.

The data came as heavy equipment firm Caterpillar said it was cutting 
as extra 2,110 jobs.

Last month, the National Bureau of Economic Research, the country's 
business cycle dating committee, said the US entered the current 
recession in December 2007.

Global oil prices were up in Friday afternoon trading, lifted by 
growing signs producers cartel Opec will cut production, and the fact 
that the US GDP figure was - at least on the face of it - not as bad 
as expected.

US light crude was up $1.34 to $42.78 a barrel, while London Brent 
had added $1.70 to $47.10.

Stimulus package
President Barack Obama's $819bn (£572bn) economic stimulus package 
passed through the House of Representatives on Thursday by a vote of 
244 to 188.

No Republicans backed the plan, saying it was too expensive and would 
not work.

The Senate debates the plan next week, and it could face stiff 
opposition as the Democrats have a slimmer majority in the upper 
chamber.

After Thursday's vote, President Obama urged members of Congress not 
to "drag our feet or allow the same partisan differences to get in 
our way".
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ECONOMIC (and other)  'Shorts'   30.1.09
TIMES
= Obama thinks bank losses will cost $2 trillion
President hopes to launch new scheme next week, comprising a 'bad 
bank' and guaranteeing lenders' distressed deb

FINANCIAL TIMES
=Moody's warns it may downgrade Ireland
Triple A rating under threat as economy struggles
=Sharp slowdown in corporate lending
Bank data highlight credit constraints

BBC ONLINE
=Eurozone jobless at two-year high
Unemployment across the nations that share the euro rose to its 
highest level in more than two years last month, as more firms laid 
off staff.
The eurozone unemployment rate totalled 8% in December, according to 
the latest official European Union data, up from a revised 7.9% in 
November.

SKY NEWS
=The Sunday Times has released a secretly-filmed video apparently 
showing Labour peer Lord Truscott discussing how a law could be 
changed in exchange for cash. In the video, Lord Truscott tells 
reporters posing as businessmen: "I can work with you ... identifying 
people and following it ... meeting people, talking to people to 
facilitate the amendment and making sure the thing is granted."

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POLITICS HOME    30.1 09
COMMENTS
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Daily Politics, BBC 2 12:34
Robinson accepts "failure on our part" over financial regulation

Geoffrey Robinson, Former Paymaster General

In an admission from Mr. Robinson he said that it was a "failure on 
our part" not to regulate the financial markets [at last -cs]  and 
also said Gordon Brown "never over-emphasised" that the UK was well 
placed to weather the economic crisis  [He said it repeatedly and was 
still doing so last week -cs]

He dismissed questions on moves to give subsidies to workers and 
said: "We choose instead to target our help, which is a form of 
subsides - on green technologies. In the motor industry, this will 
release pressures on other sections of the market, to help with 
massive pressures of R&D".

He added:  "I would say the Prime Minister has never over-emphasised 
that we are best placed to weather the economic crisis."

He rejected suggestions that Gordon Brown should take a significant 
share of the blame for the current economic difficulties.

"It is a silly game to look to the past and blame people, though I 
admit a failure on our part was not to regulate the financial markets 
as much as we could have over the past 10 years."

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World at One, BBC Radio 4 at 13:29
Lord Davies: We need international cooperation, not protectionism

Lord Mervyn Davies, Minister for Trade

Lord Davies called for a "common approach" to the global economic 
crisis and warned against a retreat to protectionism.

"This financial crisis has highlighted to everyone, we need a common 
approach to our global economic system. It is important all countries 
come together to discuss the future of the IMF. We can't afford not to.

"A common approach to bank regulation may be too optimistic, but we 
need to come to some sort of agreement about regulation," he said.

He added: "The danger at the moment is increased protectionism - this 
is a huge mistake.

"We, the Government, have put in measures to stabilise the market, 
helping small to medium enterprises and the consumer. But we need to 
make sure we remain an open market."

He said despite pressures on the steel and car industries in the 
short term, Asian markets presented "a huge opportunity for British 
business".

Lord Davies also described getting credit flowing in the car industry 
as a "challenge" but resolvable: "It is a challenge, we've got to 
recreate the securitisation of the market. But I think we've shown, 
as a Government, we're sorting the problems out one by one and we'll 
resolve them.

"As Lord Mandelson said eloquently, this isn't a bailout but we're 
supporting the industry through this critical time.