Rates, wages and Formula One
Updated on 05 December 2008
Today's morning meeting focuses on the aftermath of yesterday's interest rate cut and the tell-tale signs of the world downturn.
There is "lots of anger" at the Treasury over the number of banks who will be passing on the interest rate cut on mortgages.
"If you remember, we did a piece about this last time rates were cut, when banks said they couldn't afford to cut any more. We knew this was coming."
"The interesting thing is can the government make them."
"They can't expect the banks to just chuck all their money out there."
"You have to ask what is the point of cutting interest rates further if it's not going to be passed on."
The other side of the story is what happens to savers with the interest rates cuts. Gordon Brown has "hinted" that they may make changes to the ISA regulations to compensate.
There is also the ongoing confusion about the plans for mortgage repayment holidays that Brown announced earlier in the week.
"There's still a huge amount of detail unknown."
"They're now all getting the same engine off the shelf, so for Honda why bother. It's not their engineering."
The impact of the world economic downturn has also hit motor racing today, with Honda pulling out of Formula One.
"It is the ultimate ridiculous luxury sport, so it is inevitable it will be hit first."
"They're now all getting the same engine off the shelf, so for Honda why bother. It's not their engineering."
"But it's not just about Formula One, it's really about advertising." A decrease in advertising revenue may also impact on other sports.
"Do AIG still sponsor Man United?"
"Yes, but for how much longer?"
A protest is also being organised today by War on Want outside the AGM of Primark's parent company over the amount workers get paid abroad to make the clothes the company sells, after a new report criticises Primark, Tesco and Asda.
"Clothes are inevitably going to cost more anyway with the value of the pound decreasing - and with ships being hijacked off the coast of Somalia."
"How do you set a wage in a country like Bangladesh?"
"They may already have a minimum wage."
"How out-of-kilter are they if you contrast with, say, coffee bean growers in Kenya."
"Clothes are inevitably going to cost more anyway with the value of the pound decreasing."
"And with ships being hijacked off the coast of Somalia."
The aftermath of the conviction of Karen Matthews for the kidnap of her daughter Shannon is also on the agenda today, with the local MP calling for an enquiry into social services as Shannon was taken off the risk register.
"The question is whether this is a Haringey situation."
"It's not - there was five years in between her being taken off the register and this happening."
"This is more about what the police did after the kidnapping - is there any review of the police investigation?"
"We were all taken in [by Karen Matthews]. This happened in the wake of the disappearance of Madeline McCann, so the police may have treaded softly to avoid the mistakes of the Portuguese police."
"In the aftermath of Baby P people really want to dump on Social Services. Is this just terribly convenient?"
