Terry Murden: US and them, a tale of two different recessions

With the private sector unable to find jobs for those being displaced in public sector cutbacks it is no wonder that UK unemployment is rising and is at its highest since 1994. The jobless rate among the young is even worse with more looking for work since 1992.

The Scottish Government can no longer argue that its policies are producing marginally better economic performance than the rest of the UK now that the rate of unemployment here is higher.

Scottish ministers, of course, rely heavily on Westminster to drive the economy and do not have a silver bullet of their own. But empty rhetoric does not work either. The failure of any minister to turn up to a presentation on a youth unemployment initiative in Edinburgh on Tuesday indicates how little they’re prepared to go the extra mile to show whose side they are on.

At least the markets had something to cheer, responding positively to the US jobs news as a sign that the recovery may be taking hold.

We’ve been here before, of course. False dawns, and all that. But the figures, together with reasonable data on manufacturing and strong results from FedEx, helped spur a much-needed bout of buying on Wall Street and reversed the 360 points loss on the Dow over the past three days on worries that Europe’s latest plan to keep its currency union intact would fail.

Ashley has the key to unlock the high street...

LOVE him or loathe him, Mike Ashley, owner of Newcastle United football club and majority shareholder in Sports Direct, is making pots of cash in the troubled retail sector. He clearly knows something that has escaped everyone else.

Much of it is down to his stack ’em high, sell ’em cheap policy, a sort of old-style Tesco for the sportswear world. Sports Direct is certainly heading the pack in a sector which has its share of strugglers, notably JJB.

Yesterday’s half-time figures weren’t without fault. Underlying pre-tax profits came in slightly below expectations and analysts are a little nervous about the prospect of a bid for the troubled Blacks Leisure, following a previously failed attempt.

Such worries will have a dampening effect on the shares but looking ahead to next year there is potential upside in the Olympics and the Euro 2012 football championship. Sports Direct will pick up trade should any of its rivals fall by the wayside.

...but elsewhere it begins to look grim for retailers

THE decline of the high street has never been out of the headlines this past year and the review by television presenter Mary Portas highlighted its difficulties and what could be done about it. But whatever qualifications she may have to identify the problems and find solutions, it hardly needs stating that our town centres are battling some indomitable forces.

Figures yesterday showed a continuing decline and it is fair to say that those retailers which have combined their high street presence with an effective online service have managed to do better than most. But a survey of online retailers also shows a slower than expected rate of growth, perhaps a surprise to those, including Ms Portas, who see online sales as the biggest threat to the high street.

It provides firmer evidence that the retail squeeze is across the board, that consumers are not simply switching their spending from shops to mouse.

The stores, however, need help and customers. They are offering some alarmingly large discounts, even at the top end of the market with Harvey Nichols among those promoting huge bargains.

Such promotions are said to be on a par with 2008 when the credit card boom went bust.

The Christmas rush was going to be slow to take off, if at all, and shoppers were likely to find the sales starting well before the traditional Boxing Day bonanza.

Retailers will struggle in the Christmas after-market to beat the offers they have on at present which could point to a disappointing January.