ECONOMYIMF hopeful on economic recoveryThe International Monetary Fund appears more hopeful for the future of the global economy than other commentators. According to the group, the world economy was 'in a tough
spot' but the outlook has improved despite a slowdown during the first quarter, a slowdown which was not as severe as at first feared. The IMF upped forecasts for the UK and US during its prediction of global economic growth touching 4.1 per cent in 2008, an increase from the 3.7 per cent forecast in April's quarterly World Economic Outlook report. In the new report, UK growth was expected to increase to 1.8 per cent for 2008 and 1.7 per cent in 2009. Growth in the US is expected to slow to 1.3 per cent, however, the original estimate stood at 0.5 per cent. The IMF believe that demand from advanced and emerging economies had proved resilient enough to shrug off the recent global economic turmoil and will kickstart the global economy once more.
(The Scotsman) Read all today's economics news from scotsman.comENERGY & UTILITIESBE hit by £50 million repairs billBritish Energy has estimated it will be faced with costs of up to £50 million to repair two of its reactors at Hartlepool and Heysham. The East Kilbride utility group admitted the repair costs will be 'significantly higher' than it had initially expected and that there would be some measure of 'slippage' in the programmes to repair the units. Chairman Sir Adrian Montague told shareholders at the group's AGM: "This is a complex project involving many engineering disciplines (and] a variety of contract partners, and now we anticipate, given this complexity, that there will be some slippage in our programme." A spokesman for BE added: "With electricity prices rising, British Energy recognizes the importance of bringing the two stations back online, therefore much of the additional costs associated with this project are to do with additional manpower required to complete the work safely and within a reasonable timescale."
(The Scotsman)ACS in talks to increase Iberdrola stakeSpanish construction group ACS is reportedly in talks to sell its 45.3 per cent stake in Union Fenosa as it bids to increase its holding in ScottishPower owner Iberdrola. The group currently holds a 12.5 per cent stake in the Basque power giant and is eager to up its slice, however, it has yet to reach a deal with a number of European power companies to which it has offered its Union Fenosa stake. A statement from ACS read: "The ACS Group, always representing the government's policy, has been holding conversation with various operators from the energy sector with a view to reshaping the Spanish map." Union Fenosa would cost €5 billion in the current market and any buyer would be obliged to make a full takeover offer in line with Spanish regulations.
(The Herald) Read all today's energy and utilities news from scotsman.comINDUSTRYFirst Engineering pay off directorFirst Engineering are believed to have handed well-known Scottish businesswoman Janette Anderson a £300,000 pay-off when she resigned from the business now known as Babcock Rail. The 44 year-old resigned as a director on December 31, though her departure appears not have been announced to the public. The apparent pay off came to light from new accounts lodged by the Blantyre-based business. Announcing the results for the year to March, parent company Babcock International stated: "After a disappointing performance in the first half, a significant restructuring of the business was implemented and actions were taken to address management weaknesses. As a result, the business returned to profit in the second half, delivering a small profit for the full year with a more robust and stable platform to move forward."
(The Herald) Read all today's industry news from scotsman.comMEDIA & LEISUREBlacks see profits downProfits are outdoor retailer Blacks Leisure has seen its profits pegged back despite a surge in the sale of tents and camping equipment. The group, which began as a sailmaker in Greenock, recorded a fall in sales of 5.4 per cent in the 19 weeks to July 12, apparently dragged down by the 15.5 per cent slump in sales in the group's surfwear arm Freespirit and O'Neill. However, camping sales are currently 6.1 per cent ahead of last year on a like-or-like basis as more people holiday in Britain. Company chief executive Neil Gillis commented: "Our sales rise has almost entirely been driven by camping. What we are seeing now is a lot more people taking holidays in the UK."
(The Herald) Read all today's media and leisure news from scotsman.comRETAILUK shoppers spend £145 million onlineThe downturn in high street shopping has seen UK shoppers turn to the internet, spending more than £145 million online every day. Online sales rose to £26.5 billion in the first six months of the year, with internet shopping increasing by 38 per cent since January compared to the same period in 2007. The report by IMRG and Capgemini appeared to show the online retail sector bucking the trend for harsh retail trading conditions since the global economic turmoil began to bite on the high street. IMRG director of operations, David J Smith commented: "Certainly, when there has been a downturn in the wider economy, people go to the internet looking for bargains, especially in the clothing sector. However, we are seeing that it is the high end and the lower end that are benefiting the most, while the mid-market is not seeing the same sort of increase." IMRG chief executive James Roper added: "Tight budgets and poor weather keep people at home where they can shop online for bargains. Clothing and footwear sales were the biggest losers in physical stores in June." However, Fiona Moriarty director of the Scottish Retail Consortium was not convinced that online sales would replace physical stores: "The IMRG figures tend to be on the high side, as they include a range of things such as holidays and car parking, which are not regarded as traditional retail spending. While internet retailing is growing, around 90 per cent of retail spending is still done in the traditional way, namely in shops. With one or two exceptions, the biggest online retailers are also the biggest traditional retailers, so the internet is just another way for them to reach customers."
(The Scotsman) Read all today's retail news from scotsman.comPROPERTYCouncil will not bid for stadiumDumfries and Galloway Council has ruled out making a bid for the Raydale Park football ground in Gretna. The stadium is still in the hands of administrators after Gretna FC slipped out of the Scottish Football League despite their vertiginous climb to the SPL. The council have now ruled out making a bid for the ground but have pledged to support any community efforts to maintain the stadium as a leisure facility for the area.
(BBC Scotland Online) Read all today's property news from scotsman.com
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