Yesterday's court ruling that insurance companies must pay out for sufferers of cancers caused by ex...
Yesterday's court ruling that insurance companies must pay out for sufferers of cancers caused by exposure to asbestos could cost the UK insurance industry up to £8bn The Scotsman says.
Five thousand people are dying of asbestos illnesses each year, but that figure is expected to rise dramatically over the next 15 years as the diseases caused have a long latency period before manifesting themselves.
And this will lead to rising insurance premiums, The Scotsman says, even as many sufferers and their families yesterday said they still expected insurance companies to dealy paying out compensation for as long as possible.
Other legal action will likely affect the providers of split capital investment trusts, The Scotsman says today, following yesterday's news that the FSA is to investigate mis-selling of splits.
The paper says Aberdeen Asset Management, Martin Currie, and Friends Ivory & Sime are likely to suffer further investigation, although BFS, Exeter, Gartmore and Jupiter are not off the hook either.
And still following the theme of legal issues, another court ruling yesterday stripped the Inland Revenue of powers to force companies and individuals to hand over correspondence with legal advisers in a ruling that sets a limit to the extent to which the government can pursue tax avoidance schemes.
The FT says the issue has been hanging like a cloud over legal advisers, who previously lost a Court of Appeals case on the issue.
The Revenue has been trying to crack down on complex tax avoidance schemes, and the case centred on supermarket Tesco and its adviser Morgan Grenfell.
Legal advisers say the win now solidifies the sanctity of confidentiality between lawyers and their clients in financial matters.
All that the Revenue can do now, the FT says, is appeal to the European Court of Justice.
The US is under pressure today, the FT says, after the world's three leading multilateral economic organisations, the World Bank, the OECD, and the World Trade Organisation warned that rising protectionism could put the world on a path to slower economic growth.
The heads of the three organisations jointly pointed the finger at the US administration's recent decisions to raise steel tariffs and push through a huge increase in agricultural subsidies.
The EU, Japan and many other countries have criticised these measures as putting the world on course for a series of tit-for-tat measures that could stymie global economic recovery.
The Times carries the parting shot from Sushil Wadhwani, the Bank of England's Monetary Policy Committee's biggest dove, who says the bank's interest rate policy has been wrong for a long time.
Wadhwani's chief complaint is that the MPC has failed to capitalise on the additional economic growth that would have been possible with even lower interest rates.
National income since 1999 would have been 0.5% higher, but with negligable inflationary effects had the bank allowed lower rates, he argues.
The attack also calls into question the validity of this week's inflation report, which many analysts said signaled the bank's intent to start tightening up on monetary policy again, leading to higher interest rates.
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