PRESS DIGEST - Financial Times - March 15

Financial Times

CLEGG PROMISES 'GOOD SENSE' OVER DEFICIT

Liberal Democrat leader Nick Clegg told a conference of party faithful on Sunday that he could be trusted in a hung parliament to protect Britain's financial standing. Clegg declared the party to be the "guarantor of good sense" on cutting the deficit. He also accused Labour of being "in denial" over the need for cuts, and the Conservatives of running a "political version of a protection racket" for warning its defeat would result in financial crisis.

BAE LAUNCHES LATE BID TO WIN 1 BILLION POUND SCOUT CONTRACT

A last-ditch bid will be made by BAE Systems BA.L, the defence group, on Monday to build the British Army's next generation of Scout armoured vehicles. Defence Minister Quentin Davies is set to announce US group General Dynamics (GD.N) as the winner of the one billion pound contract. But BAE is prepared to revise the terms of its bid, consolidating the production work in Newcastle. The company has told the Ministry of Defence that the move would cancel 400 redundancies and create 400 jobs.

NEW RULES TO HELP CREDIT CARD USERS

New rules for credit card issuers will be announced by the government on Monday, changing how repayments are allocated to allow customers to pay off more expensive debt first. The move could save customers millions of pounds a year. Currently, customers' interest costs are hampered by repayments being generally applied to the cheapest debt first. Card companies will also be banned from raising interest rates for borrowers who are struggling to repay, and from increasing credit limits without notification.

MOBILE OPERATORS HOPE TO THWART 4G PLANS

Government plans to increase the availability of internet access on mobile phones are facing a legal challenge from telecommunications companies. Parliament is due to decide whether to approve a law before the end of the month that will give the go-ahead to a large auction of radio spectrum in the first half of 2011. Vodafone (VOD.L) and O2 believe the auction is unlikely to be fair, and are calling for an immediate examination to amend current proposals.

CBI WANTS WORKING HOURS STAGGERED

The CBI employers' group is calling for radical changes to the way staff work and commute to avoid future gridlock on the roads. The body says a "staggered" commute, car-sharing and working from home would all help ease congestion. Road congestion costs the economy seven billion to eight billion pounds a year, and vehicle traffic has grown by a quarter in just 20 years. The cost to the economy is likely to more than double by 2025 unless more action is taken, warns the CBI.

RECRUITERS SIGNAL HOPE FOR GRADUATES

Incomes Data Services, the pay monitoring group, has released research pointing to a resurgence of graduate recruitment by the financial sector this year. The recession saw many recruiters slashing vacancies across the financial sector last year. But the private sector is expected to respond to the recovery in the economy by increasing their uptake of graduates. According to the research, hiring by financial companies is set to soar by more than 15 per cent.