ECONOMYRate cut unlikely on factory prices New figures released by the Chartered Institute of Purchasing and Supply are set to increase the pressure on the Bank of England's Monetary Policy Committee to hold inte
rest rates at their current level when they meet next week. The new data revealed factory prices are rising at their fastest rate for the last nine years while raw material inflation is at its second highest level since records began. Paul Dales of Capital Economics believes the news spells trouble for the manufacturing sector, he commented: "We think that the manufacturing sector will soon enter a recession. Admittedly, this is unlikely to make the MPC cut rates any faster, especially when price pressures are still strengthening." Economist at CEBR Jorg Radeke added: "This will further reduce the chance of an interest rate cut when the Bank of England meets next week."
(The Scotsman)Salmond winning over Scottish businessThe business community is beginning to believe in the SNP according to a new survey carried out by the Scotsman. Moves including cutting rates for small business and accessing tolls on the Forth and Tay road bridges have improved the parties popularity with the business community north of the Border with 39 per cent of the 648 businesses questions now more in favour of independence than 12 months ago. Meanwhile, 57.5 per cent of the respondents said they thought the SNP was doing a good or excellent job with only 18.2 per cent disappointed in their performance. Iain McMillan director of CBI Scotland commented: "The Trump issue was very important because it gave a signal, after the terrible decision by the council committee, that Scotland is open for business and whatever the political fallout, businesses viewed the SNP's actions very positively. We have been very impressed that the Scottish Government has set growing the economy as one of its top priorities."
(The Scotsman) Read all today's economics news from scotsman.comMANAGEMENTCorsie quits eponymous groupRichard Corsie has quit as chief executive of the Corsie Group and left his finance and sales director in charge of the board of Haddington-based leisure services company. The former world bowls champion's resignation comes two days after company chairman David Mathewson also left the company, joining Vikram Lall and Jim Aitken who both resigned in recent weeks.
(The Herald) Read all today's management news from scotsman.comRETAILThresher calm on Scottish closuresA review of UK operations is to see the wine retailer Thresher Group close 30 of its Scottish stores, it has been revealed. The group is to sell off the loss making outlets from its 240 strong portfolio north of the Border and has already disposed of a Haddows in Helensburgh and a Victoria Wines in Galashiels. Company chief executive Yvonne Rankin commented: "We do what most retail estates do. We are closing our loss-making stores and also reviewing stores that aren't in the right place any longer." She added: "It is really working through the customer focus groups, reviewing data and performance, and at that point we'll finalise plans for the Scottish brand. It would be a real shame to focus on 30 closures. We are going to open new stores and reinvigorate our brand."
(The Scotsman)Ossian sells InternacionaleThe sale of fashion outlet chain Internacionale by beleaguered retail group Ossian has been confirmed. However, the Au Naturale chain is to slip into administration with the expected loss of some 1500 jobs. Ossian's non-executive chairman David Brock told the Herald: "I can confirm that Internacionale has been sold, but I'm afraid I'm not at liberty to say to whom at this stage. There are regulatory issues that must be dealt with. I can tell you that this deal has saved almost 1000 job, and I'm very pleased about that." However, the news was not so good for Au Naturale, with Brock adding: "I'm afraid it is most likely to end in administration." It has been suggested that Visage Retail is the name in the frame for Internacionale but the South Shields based group has refused to comment on the claims.
(The Herald)Trespass to focus on retailThe Trespass outdoor clothing empire of Afzal and Akmal Khushi has seen profits all for the second year running, however, the brothers remain confident business will pick up with the opening of new stores. The pair's international sportswear company Jacobs & Turner booked profits of £5,975,851 or the year to June 2007, a fall of 22 per cent. In the directors report the brothers wrote: "Additional shops have been opened during the year which attract additional set-up costs and also require greater administration costs. These additional costs and those costs associated with maturing shops opened in previous years have led to a decrease in operating margins, but as shops mature the directors expect this to reverse."
(The Herald) Read all today's retail news from scotsman.comTRANSPORTDelta backs JFK flightsAmerican airline Delta has insisted flights from Edinburgh to New York's JFK airport are a viable proposition as it launches a link between the two cities. Delta are now going head to head with rivals Continental on the route and some industry analysts believe they may have bitten off more than they can chew. Consultant at Mott MacDonald Lawrie Price commented: "BA recently pulled their operations to New York from Manchester – which has more than twice the number of passengers as Edinburgh – which suggests the market is tough. While the summer market might be buoyant they may find they struggle a bit more in the winter months with two operators on the same route." Nick van den Brul of BNP Paribas was, however, more confident: "There are connections into Edinburgh from other cities in Europe with the Air France alliance that Delta has – while New York is Delta's second largest hub to access the rest of the States. I don't think they will have a problem." UK commercial director for Delta Armin Venencie added: "This route underlines Delta's commitment to Scotland and underlines the ties between Scotland and New York."
(The Scotsman)Skye Ferry to cash in on Hollywood roleThe ferry link between Glenelg and Kylerhea is set to cash in on its appearance in the romantic comedy Made of Honour. Both the ferry service and Eilean Donan Castle feature in the film starring Patrick Dempsey and Michelle Monaghan. Ferry company representatives are now due to join cast members to form a guard of honour at Vue Cinema in Inverness for the film's premiere.
(BBC Scotland Online) Read all today's transport news from scotsman.com
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