BANKING & INSURANCEUK banks thrown £400bn lifelineBritain's largest banks were preparing on Wednesday to boost their capital reserves after the government launched a dramatic £400bn rescue plan to restore confide
nce among financial institutions and avert a severe economic slowdown (
FT). The three-pronged plan, rushed out on Wednesday morning after officials worked through the night to finalise it, could see the government investing as much as £50bn in the banking industry while offering guarantees over as much of £250bn of new bank debt and adding £100bn to the existing Bank of England short-term loan scheme.
Read all today's banking news from scotsman.comECONOMYNew talent campaign for businessA campaign to highlight Scotland's untapped talent is due to be launched at a reception for businesses (
BBC). Scotland's Got Talent has been designed to encourage businesses to look at people such as the long-term unemployed or those from disadvantaged groups. The campaign runs until March 2009 and is aimed at showing the "clear business benefits" of recruiting people companies might not normally consider. It has been supported by the Scottish Government.
Read all today's economics news from scotsman.comFOOD, DRINK & AGRICULTUREDrambuie chief sparks war of words over 'bloodbath' THE head of Drambuie yesterday predicted that the alcohol business will suffer a Christmas sales "bloodbath", sparking a row within the industry (
Scotsman). Phil Parnell, chief executive of the Broxburn-based liqueur company, warned that the economic downturn would have a strong impact on sales of lower-price spirits such as gin, vodka and whisky. Parnell's remarks prompted a sharp response from some in the industry, who predicted that it would be the more up-market brands, including Drambuie, which suffer in the festive season. Speaking as his firm reported flat sales and turnover for the year to June, Parnell said that the firm's "volumes in the UK" were "holding well". But he added: "Christmas is probably going to be a bit of a bloodbath.
Read all today's food, drink and agriculture news from scotsman.comRETAILSainsbury's slides as investor dumps sharesSAINSBURY'S last night confirmed that property tycoon Robert Tchenguiz had sold his 10 per cent stake in the supermarket group (
Scotsman). The announcement came after a day in which shares in the company slumped, promoted by rumours that Tchenguiz – one of the grocery giant's biggest shareholders – was dumping his holding. Shares in Sainsbury's, Britain's third-largest supermarket, fell despite the firm yesterday reporting that like-for-like sales excluding fuel rose 4.3 per cent in the 16 weeks to 4 October, ahead of City forecasts of a 3.9 per cent rise. The stocks hit a four-year low, crashing 18 per cent in early trade, before recovering slightly later in the day, as speculation over Tchenguiz's move grew. After the markets closed last night, Sainsbury's confirmed that Tchenguiz's investment vehicle Razino had sold its entire holding of 88 million shares, or 5 per cent of the firm.
Read all today's retail news from scotsman.comTRANSPORTRail strike suspended after talks A second 24-hour Scottish rail strike due to start at midday on Thursday has been suspended (
BBC). Following a nine-hour meeting with Network Rail and the conciliation body Acas, the Rail Maritime and Transport (RMT) union suspended the walkout. An RMT spokesman said progress had been made and the union's executive would consider a full report before making a statement later in the week. A total of 450 signal workers were due to take part in the strike action. A 24-hour walkout on Tuesday severely disrupted rail services and caused traffic chaos throughout Scotland. The row centres on rota changes and compulsory safety assessments. The RMT insists employers have failed to move on its demand to stop last-minute changes to rotas. Network Rail said it had made concessions on that issue but safety assessments remained the sticking point. Both sides met at the Acas offices in Glasgow at 1400 BST and ended the meeting just before 2300 BST.
Stagecoach prepares for downturnPerth-based bus and rail company Stagecoach has confirmed it is drawing up cost-cutting plans as transport businesses, previously seen as insulated from a downturn, begin considering the impact of an unexpectedly long and deep recession on the sector (
Herald). Stagecoach has started identifying "soft costs" in the business, chief executive Brian Souter said, which could be trimmed if the company came under pressure. Several rivals including Go-Ahead, owner of the Gatwick Express, are also thought to have constructed contingency plans for a downturn. Souter is adamant the company, which claims 14% of the UK bus market and 25% of rail, is benefiting from a "modal shift" from cars to public transport, in particular buses. But the company, which has 30,000 employees, believes that in hard times, and Souter maintains it would have to be a "depression not a recession" for Stagecoach to get hurt, it could shave costs. Cutbacks on off-peak services and marketing costs are among those that Souter believes he could look at if spiralling unemployment hits revenues.
Read all today's transport news from scotsman.com
The full article contains 889 words and appears in scotsman.com newspaper.
