Good morning all, it's a frosty start to the morning but before i begin my usual routine i came across a couple of interesting stories:
Deflation risk as prices to fall
The RPI measure of UK inflation is expected to be negative - a sign of falling prices- when data is released later on Tuesday.
Economists expect the Retail Prices Index (RPI), which includes housing costs, to have declined for the first time in 49 years.
If so, it will raise fears the UK is facing a damaging bout of deflation.
British Airways may be heading for Spain
The Government would not stop British Airways becoming a Spanish company as a result of a merger with Iberia, the Transport Secretary said yesterday.
BA and Iberia, the Spanish flag carrier, are believed to be near to agreeing merger terms in talks that have been continuing since July.
It is thought likely that the airlines would continue to operate as separate brands under a new operating company after the merger. However, it is not clear whether this parent company would be based in Spain or in Britain.
Geoff Hoon, the Transport Secretary, said yesterday: “We would be completely at ease if the companies took this decision [to base in Spain].”
Not surprising as Geoff Hoon is in bed with BAA which is spanish! Anyway i digress i'll leave that debate for the Jet blast part of the forum.