Monday newspaper round-up: Iraq, Putin, Mortgage lenders

23rd Jun 2014 07:30

An oil-price spike driven by the worsening crisis in Iraq could derail Britain's recovery, drive up government borrowing, put household finances back under pressure, and damage global growth. With Islamist fighters from Iraq and the Levant taking new ground on the border between Iraq and Syria on Saturday, oil analysts have warned that prices could rise by up to 30% if the conflict escalates. An increase of that scale could knock half a percentage point off GDP growth and add more than a quarter point to inflation, according to the government's own forecaster. - The Times Russian President Vladimir Putin said the only way for Ukraine to bring an end to an insurgency in the east would be to open an unconditional dialogue with separatist leaders. While he reiterated his support for a recently declared cease-fire by Ukrainian government troops, Mr. Putin stopped short of saying that Russia would try to rein in the separatists it has been accused of arming. - The Wall Street Journal EuropeThe boss of the Financial Conduct Authority has lashed out at banks for their 'disappointing' interpretation of new rules for mortgage lenders. Its Mortgage Market Review, which was designed to curb risky lending, forces banks to question customers' spending habits before offering a loan. But the Mail revealed last week that some banks were preventing homeowners from switching to cheaper deals, citing the more stringent rules. - The Daily Mail Britain's recovery has become entrenched and the Bank of England should start to raise interest rates in the coming months to reflect the stronger economy, according to one of its most dovish policymakers. David Miles, one of the nine members of the Bank's Monetary Policy Committee (MPC) that sets interest rates, described the recovery as "resilient", "firm" and "sustainable", and said it was increasingly likely he would vote to raise rates from a record low of 0.5% before leaving the committee next May. Writing in The Telegraph, Mr Miles said increases which stemmed from firmer UK growth was "good news" for the economy. - The Daily TelegraphAn emergency £2bn bailout of the NHS is being demanded within the government amid high-level fears of an approaching crisis in patient care. Ministers have been given dire warnings about the consequences of a raid on hospital budgets next year. Experts are predicting longer waiting times and staff cuts as hospitals slide into the red without extra funds from the Treasury. - The Times Morrisons has opened up another front in the supermarket price wars by cutting the cost of 135 more products. The supermarket chain, which is under sustained pressure to halt its declining sales, announced a range of price cuts to woo back customers. Chief Executive Dalton Philips, who has faced criticism over the group's performance, insisted that the move would help slash household shopping bills. "These are permanent price cuts, not promotions, and they won't be the last," he said on Sunday. - The GuardianAB