Belfast Telegraph

George Soros does sterling work at Davos forum

By Margaret Canning

Another day of speeches at the World Economic Forum in Davos, Switzerland, and more brickbats for the UK economy.

Speculator George Soros warned Prime Minister David Cameron to recant on some of the harsh measures in the comprehensive spending review, the day after Nouriel Roubini suggested that the UK could still be at risk of a double-dip recession.

Mr Soros was even more explicit: "I think they may be right in embarking on it but I think they will probably have the sense that they will have to modify it when the effects are felt. I don't think it can possibly be implemented without pushing the economy into recession."

Could Cameron heed the warning? The businessman's speculative punts on the pound triggered John Major's decision to withdraw sterling from the exchange rate mechanism in the 1990s, so perhaps not.