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BANKING & INSURANCEFSA warns sector on high feesThe Financial Services Authority has warned the financial services companies they face paying higher fees to the industry regulator. The warning comes as the watchd
og brings in new, more costly regulatory measures in the wake of the Northern Rock crisis. FSA chief executive Hector Sants issued the warning during the regulatory group's annual public meeting yesterday and also cautioned the FSA was likely to exceed its budget in the financial year 2008-09 as it deals with the increased costs. Sants said: "The last year has been difficult for the FSA. Perhaps more challenging since its creation then years ago. You should be in doubt we regret the events surrounding Northern Rock. But respected and durable institutions grow stronger in times of adversity." A spokeswoman for the FSA said of the increased fees: "We are not proposing the change in fees for 2008-09 but it has implications for costs in 2009-10." Meanwhile, a spokesman for the Association of British Insurers added: "We will monitor the situation, and are happy to speak to the FSA over any proposed changes to the structure of fees. Insurers are committed to effective regulation and are keen to support it."
(The Scotsman) Read all today's banking news from scotsman.comENERGY & UTILITIESEDF on course for BE takeoverEDF, the French utility giant, is believed to be on the verge of agreeing a deal to takeover British Energy. The deal, which is likely to top £12 billion, is expected to be announced in the next few days and will bring to a close the long-running speculation over the future of the East Kilbride nuclear power generator. It had been thought that a joint bid from EDF and British Gas parent Centrica would be most likely to succeed, but it is now likely the initial deal will be purely with the French group with Centrica becoming involved at a later stage. BE has confirmed it is in 'advanced discussions' with a suitor but has so far refused to confirm the identity of the interested party. Analyst at Brewin Dolphin, Elaine Coverley commented: "When Centrica first got involved, they asked the government for preferential treatment (the UK government holds a 35 per cent stake in BE) as the only British bidder and they didn't get that, so the government is clearly not bothered. I think a deal with EDF is definitely the best thing for British Energy because they need to be involved in new nuclear in some shape or form and are not in a position to do that themselves."
(The Scotsman)ScottishPower credited for Iberdrola growthSpanish group Iberdrola have credited recent acquisition ScottishPower for being 'one of the principle engines' of its growth. The praise came after Iberdrola announced the Scottish division's performance had been 'better than expected' with energy production up 8 per cent in the first half of the year and energy distribution increasing 3 per cent in the same period. Iberdrola finance manager Jorge Marin commented: "Seven or eight years ago, Iberdrola was almost 100 per cent located in Spain. For the first time in Iberdrola's history, the group has produced more than half its energy outside of Spain."
(The Scotsman) Read all today's energy and utilities news from scotsman.comFOOD, DRINK & AGRICULTUREPernod warns on Scotch in ChinaPernod Ricard has warned that sales of Scotch whisky are on the wane in China. The French group owns Chivas Regal and Ballantine's and is one of many drinks producers who have identified China as a key growth market, especially for whisky. Pernod saw whisky sales fall in China despite a 29 per cent rise in sales of its wider product range. Managing director Pierre Pringuet commented: "We estimate that whisky consumption has declined in China. We said last year that, after a sharp increase in that market place in 2001 to 2005, we saw the market plateauing at the end of 2006. The feeling we have is that there has been a little decline in the rate to -2 per cent for the last 12 months." He added: "It is difficult to predict but I think there is a future for whisky and it is up to us to propose something to the Chinese consumer that would be aspirational for them."
(The Herald) Read all today's food, drink and agriculture news from scotsman.comINDUSTRYCurtis collapsesCurtis Fine Papers, the 135 year old paper maker, has been forced to call in administrators. Some 180 jobs have gone at the St Andrews mill which has been in operation since 1873 when whisky baron William Haig began production at Guardbridge. Joint administrator and head of restructuring for KPMG in Scotland, Blair Nimmo said: "Following significant losses in recent years, there had been an improvement in trading over the last year. Despite this, a number of external factors acted against the business, including significant increases in energy and raw material costs and a general decline in the availability of credit. In addition, the company had planned to sell a surplus area of land to raise funds. However, this was not possible following difficulties currently being experienced by the real estate markets. The company explored several opportunities to sell the business, but these were not successful. The administrators have unfortunately had no option but to cease the production of paper."
(The Herald) Read all today's industry news from scotsman.comMANAGEMENTRolls Royce boost jobs confidenceEngines giant Rolls Royce has revealed strong growth in earnings and increased confidence that 2000 jobs in Scotland's central belt will remain safe. The group revealed it was set fair to achieve forecasts with an 8 per cent increase in profits in the face of the continuing credit squeeze and spiralling fuel costs impacting on airlines which are key customers for Rolls Royce. Chief executive Sir John Rose commented: "The youth, scale and geographical diversity of our civil aerospace installed base, along with our broad portfolio, will help mitigate the consequences of uncertain conditions in the airline industry." The company's aviation plants in Scotland currently employ more than 2000 people at Inchinnan and East Kilbride.
(The Herald) Read all today's management news from scotsman.comPROPERTYSolar group looks at Hyundai factoryCalifornian solar panel manufacturer Zoom Diversified is said to be in advanced talks over buying the redundant Hyundai factory in Dunfermline. The building has been empty since it was built in the 1990s but the US firm is believed to have targeted the plant as a potential base for its domestic solar panel operation. The group are awaiting the award of a research and development funding package before closing the deal, according to sources questioned by the BBC. The new operation could create as many as 600 jobs. A spokeswoman for site owner Freescale said: "Negotiations have been ongoing for quite a long time. The site currently has not been sold and ongoing negotiations are confidential so we are not going to comment on speculation."
(BBC Scotland Online) Read all today's property news from scotsman.com
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