THESE are uncertain times for the world economy. Discovery of a £2.5bn black hole in the accounts of one of America's biggest companies does not instill confidence.

The accounting scandal at WorldCom and the fragility of financial markets continue to leave a question market over the carefully calculated forecasts of recovery in this country.

Manufacturing, a key component of our regional economy, faces an anxious future. This sector, more than any other, is susceptible to the vagaries of global markets and fluctuations in exchange rates.

For manufacturers in these uncertain times, low interest rates are one of the few factors in their favour. To increase them may have grave consequences for them and the region.

We understand, however, concerns over rising property prices, particularly in the South-East. Unless the heat is taken out of the housing market, inflationary pressures will build up with damaging consequences for the UK economy.

But for the sake of regions like ours, largely immune from the housing boom and not enjoying the same level of prosperity as the Home Counties, it is to be hoped that interest rates are not increased.

While more expensive mortgages will curb house prices in the South-East, higher interest rates will impair the chances of manufacturing recovery in the North-East.

The Treasury has, at its disposal, fiscal measures such as Stamp Duty, which can control the housing market.

Such a surgical strike is preferable to the blanket bombing tactic a rise in interest rates entails.

Jubilee hopes

IT is sad to see Pete Sampras and Andre Agassi bow out of Wimbledon so early in the proceedings. They have been great champions who have graced the show courts for a decade.

The Americans are adamant they will be back next year. But it is an inescapable fact that they are both coming to the end of glittering careers while a new generation of stars are emerging.

For the moment we are left with hope that during this brief interregnum, as happened in 1977, a Briton can be crowned Wimbledon champion in Jubilee year.