Labour’s fateful party conference

An internet poll of Labour supporters published today suggested 54 per cent would favour a new leader for the next election. In an interview with Sky news, the Prime Minister said that ministers would "fail the country" if they did not unite behind him in the face of the economic crisis. It is a call that is likely to be repeated during Conference — but will not diminish doubts about his ­leadership.
Many commentators have suggested that Mr Brown's speech on Monday is make-or-break. This is probably an exaggeration: the speech is unlikely to be either so brilliant that it disarms his critics, or so lacklustre that it triggers a leadership ­challenge.

This week, we have seen signs of deep discontent in the Cabinet and a rebellion by a few backbenchers and one minister. But there is still no declared, plausible alternative candidate. So the greater danger for Mr Brown is rather that this conference does nothing to stop the sense of drift, of his control of events ebbing away. A more potent trigger for a challenge is likely to be if Labour loses the ­Glenrothes by-election in November.

With the Conservatives 28 points ahead of Labour in the polls, Mr Brown badly needs to show that he has a plan. The economic meltdown could ­conceivably help him. His performance this week may have been well received — assisted as it was by spin — but the afterglow is unlikely to last.
As with the US presidential election, economic meltdown has changed the complexion of Labour's leadership woes. But even those considerations may not override the sense of crisis: the Prime Minister has now to convince his party that he has a real vision for Labour and can persuade voters he is a winner.

City clampdown

It is generally acknowledged that the febrile ­market conditions recently, certainly in finance stocks, has been aggravated, though not caused, by short selling. As a result, the Financial Services Authority, the London regulatory body, has ­instituted a ban in the short-selling of stocks in the financial sector for four months, to be revised after one month.

The hope is that this will bring a measure of ­stability to the sector while other measures from governments - not least the federal rescue plan for banks announced in the US today - take effect.
Short-selling — or borrowing stock, then selling it, in the hope of rebuying it when the price is lower — is a legitimate tactic in normal trading conditions. It is a bet on the market, often driven by underlying concerns about a company.
The practice can, in normal times, lead to more rational share pricing and can, as the Chancellor said, "help actually in providing funds, liquidity, for companies".

But these are not normal times. Indeed, some short-sellers may have added to instability by spreading false rumours about under-threat ­companies in the hope of further depressing prices — an illegal, but hard-to-detect practice. The FSA could also consider outlawing naked short-selling, or selling stock without actually possessing it. But for now, it has done the right thing.

Bike it after 2012

One part at least of the sporting element of the Olympics legacy has been guaranteed — for cyclists. As the result of a new £12 million deal, the velopark facilities on the Olympic site will be available to schools, community groups and the best cyclists for 25 years. This is the kind of coherent Games legacy for which this paper is campaigning. Now it remains to find good, long-term use for the other purpose-built venues of 2012.