The Chancellor will give a green light today to more takeovers of big-name British businesses by acquisitive multibillion funds controlled by foreign governments, reports The Times .
Amid rising concern in the West over secretive “sovereign wealth funds” controlled by China, Russia and other Asian and Middle East states, Alistair Darling will insist that Britain not erect barriers to thwart these powerful new players on the global business stage.
The Chancellor will use his first keynote speech since taking over from Gordon Brown to argue that the British economy has benefited greatly from inward investment.
He will say that the UK must continue to welcome overseas investors in its businesses, whether through mergers, equity stakes or other capital backing, and that Britain will strive to hold the line against growing protectionist pressures emerging in other leading economies against sovereign funds.
THE DOLLAR HAS TUMBLED to its lowest level ever against the euro and to a 26-year low of $2.06 against the pound as financial turmoil sent US markets tumbling to their worst day’s performance in over four months, reports The Telegraph.
US stocks were left spiralling along with the American currency on fears of broader economic contagion from the sub-prime property slump.
The benchmark Dow Jones Industrial Average plummeted 226.50 points to 13,716.90.
The fall caused London markets to tumble dramatically late in the day. The blue chip FTSE 100 fell 125.7 points to 6498.70, while the FTSE 250, which consists largely of UK-based firms rather than multinationals, plummeted 198.20 points to 11,584.
BRITAIN’S LEADING EMPLOYERS’ ORGANISATION urged the Bank of England yesterday to put further interest rate increases on hold after its latest snapshot of manufacturing showed rising interest rates and higher energy costs putting the brakes on industry's expansion, reports The Guardian.
Unveiling its quarterly industrial trends survey, the CBI said the outlook for order books, output and business optimism had deteriorated over the past three months and that the Bank should be cautious about further rises in the cost of borrowing.
Ian McCafferty, the CBI's chief economist, said the Bank's nine-strong monetary policy committee should take time to "study the data over the summer and early autumn" after raising interest rates in five quarter-point moves to 5.75% since August last year.
City expectations - that the rate would need to be raised to 6.5% or higher - "might need to be revised" in the light of what was happening to industry, Mr McCafferty added.
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Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till