Scottish Business Briefing - Wednesday 04 November, 2009

Published on Wednesday 4 November 2009 08:46

WELCOME to scotsman.com's Scottish Business Briefing. Every morning we bring you a comprehensive round-up of all news affecting business in Scotland today.

BANKING & INSURANCE

RBS shares plunge as City reckons Lloyds is bank settlement winner

THE City responded to the restructuring of the banks yesterday by hammering Royal Bank shares and buying Lloyds, in what was seen as a poor outcome for RBS and a less hostile settlement for its rival (Scotsman). While Lloyds closed top of the FTSE-100 risers' list, RBS was the worst performer, leaving chief executive Stephen Hester clearly unhappy that his ability to revive the bank's fortunes had been made more difficult by the European Commission verdict. Shares in Royal Bank of Scotland shed 7 per cent, while Lloyds put on 2.7 per cent.

Read all today's banking news from scotsman.com

INDUSTRY

Weak pound working in Weir's favour

WEIR Group, the Glasgow-based engineering giant, yesterday upgraded its profits forecast for the second time this year, with full-year earnings now expected to come in at almost 180 million (Scotsman). Keith Cochrane – who this week took over as chief executive from Mark Selway – said "good levels of activity" in the North Sea and North America oil and gas sectors had compensated for a "soft" market in Dubai.While revenue in the 13 weeks to 25 September was "adversely" affected by lower workflows during the first half of the year, the weakness of the pound continued to act in the group's favour.

Jobs hope as GM scraps Vauxhall sale

GENERAL Motors last night scrapped plans to sell off Vauxhall to a Canadian car parts firm in a move which could save thousands of British jobs (Scotsman). A previously agreed takeover of GM Europe by Magna had threatened more than 10,500 jobs across Europe – including 6,000 in Britain. But in a deal between German chancellor Angela Merkel and the prospective buyers, the sale would have retained jobs in GM's German Opel factories. Now GM has decided to scrap the sale, holding out hope that Vauxhall jobs in the UK will be saved.

Read all today's industry news from scotsman.com

RETAIL

M&S to sell 400 brands at stores

Marks and Spencer has confirmed it will start selling branded goods at its stores across the UK (BBC). It will mean 400 household brands, such as Kellogg's and Coca-Cola, will be sold alongside M&S' own products in areas such laundry, beer and pet food. The decision comes after successful trials in stores in the north-east and south-east of England. The announcement came as M&S reported profits of 306.7m for the six months to September. The figure was little-changed on the profit of 307.8m made in the same period last year.

Survival plan sees bank take stake in troubled Blacks chain

BANK of Scotland, now part of Lloyds Banking Group, is set to take a 5 per cent stake in embattled retailer Blacks Leisure as part of a rescue deal that preserves more than 4,000 jobs (Scotsman). The stake, which is subject to shareholder approval, is one strand of a major overhaul of the outdoor leisure chain, which suffered a 18.1 million loss in the first half of the year.Blacks, which began life in Greenock in 1861 as a sail-making business, is seeking to "ensure the survival" of almost 300 shops and save 4,300 jobs through a company voluntary arrangement (CVA) with creditors.

Read all today's retail news from scotsman.com

TRANSPORT

Stagecoach warns trading 'tough'

STAGECOACH, the train and bus operator pursuing troubled rival National Express, has warned that trading remains tough, particularly in its rail business (Scotsman). The group, whose efforts to merge with National Express were last week rebuffed, said in a trading update that revenue growth "remains below the rates observed in recent years". The downbeat news came as it emerged that the Department of Transport (DoT) is to take control of National Express' East Coast mainline franchise on 12 December. The move means that the franchise is unlikely to gain a new commercial owner before mid-2011, analysts said.

Read all today's transport news from scotsman.com

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