US rate cut surprises papers

The cut in US interest rates took the papers, like the markets, by surprise.

The Sun calls it "one of the most dramatic moves anyone can remember" by the head of the Federal Reserve.

But financial commentator Samuel Brittan, of The Financial Times, warns against indulging in too much crystal ball gazing.

He argues that it is in the nature of big crises to be unforeseen.

Mr Brittan quotes Winston Churchill, who said every young politician had to possess the "ability to foretell what is going to happen tomorrow, next week, next month, and next year. And to have the ability afterwards to explain why it didn't".

Economic outlook

Undaunted, several papers see choppy economic waters ahead.

"The softest landing can be bumpy", observes The Times, which points out Britain too will suffer if America runs into bad times.

The Independent comments that "in politics, timing is all".

The paper also believes Bill Clinton "may consider himself lucky to be out of it," while few would envy "the task of economic management" that George W Bush now takes on.

The Guardian has little faith any good will come from Washington - describing the cabinet chosen by Mr Bush as "a hardline team with dangerous views about the world".

Euro tales

But The Guardian's distinguished political columnist, Hugo Young, has little doubt what the year's big story will be - and it is not Mr Bush. It is the Euro.

"The election...is already decided," he writes. "The struggle that is real and unpredictable will come after."

He sets out his theory that the coming months will see a battle royal between Gordon Brown, aka "the tortoise", and Tony "the hare" Blair.

New Year blues

Many people are finding it difficult to return to the daily grind after the Christmas and New Year break.

The Daily Mail tells us "up to three million Britons have still not returned to work."

Some, it says, are legitimately on holiday, while others are stringing out the festive period by calling in sick.

Prince at play

The combination of hot sunshine in Thailand, a luxury yacht, Prince Andrew and what the Daily Star calls "a bevy of topless babes" is one few papers can resist.

The Daily Express says "he allowed himself to be photographed".

"A distinct improvement on the grizzled ratings formerly under his command," concludes the Mail.

The Mirror agrees, stating: "It was never like this in the Navy."

Good lord!

It is left to one reader of The Times to question the reliability of everything we read in our newspapers.

Lord Stokes has written to the paper because it had referred to him as the "late Lord Stokes".

"Although I may sometimes be late," he comments, "I am still very much alive."