BANKING & INSURANCE
HBoS unveil profits slideBanking giant HBoS has deepened the economic gloom by unveiling a 72 per cent fall in statutory pre-tax profits down to £848 million. However, there was relief in the City that the inte
rim profits were better than expected and the Edinburgh group's shares rallied 7 per cent closing up 19.2p at 290.5p. Meanwhile chief executive Andy Horny warned there were 'no sacred cows' on possible asset sales as the bank attempts to tidy up its balance sheet in the face of the continuing credit crunch. He commented: "We will look at all sensible options to improve deposit-to-loan rations. That's about running down some assets and if some buyers consider assets are worth more than they are to us then we don't rule that out." In a note, Deutsche Bank analyst Jason Napier added: "The fact that asset sales are being contemplated could be a significant positive if the right assets (West Australia Bank) are sold."
(The Scotsman) Read all today's banking news from scotsman.comECONOMY
Rates hold on the cardsThe Bank of England's Monetary Policy Committee is widely predicted to hold the interest base rate at 5 per cent when it meets next week. A poll of 76 economists returned a unanimous expectation that the MPC would resist the rampant inflationary pressures for another month and hold the rate steady, however, there was a consensus view that there would be three quarter-point cuts next year. The MPC's expected stance was strengthened by the news that the average UK house price fell by 1.7 per cent in the month of July alone, the ninth consecutive month that a fall in prices has been reported. Chief UK economist at Global Insight, Howard Archer said: "The Nationwide (house price) data indicate that there is ongoing major downward pressure on house prices from extremely weak market activity, stretched buyer affordability, and tight-lending conditions. Indeed, it seems odd-on that house prices will continue to head rapidly south given that the Bank of England reported extremely low mortgage approvals for house purchases in June, while latest survey evidence shows that house sales are depressed, buyer interest is weak, it is taking longer to sell a house and sellers are achieving a falling percentage of their asking price."
(The Herald) Read all today's economics news from scotsman.comENERGY & UTILITIES
EDF expected to make BE announcementFrench utility giant EDF is expected to announce this morning that is ready to push through a takeover of East Kilbride nuclear generator British Energy. The move would include the purchase of the British Government's 37.5 per cent stake in the generator and bring to an end months of talks and speculation as to the future of BE. According to the Herald, sources close to the deal believed a news conference would be held in Paris this morning to announced the £12.5 billion deal.
(The Herald)However, a statement issued by EDF has thrown the deal into doubt after the French group claimed conditions were no longer right for it to proceed with the takeover. The statement read: "After in depth discussion, EDF considers that the conditions for a major development in Great Britain are not met to date." A spokesman for the group has refused to comment on whether the deal, which is said to have broken over the asking price for BE, has simply been delayed or is off altogether.
(BBC Scotland Online) Read all today's energy and utilities news from scotsman.comFOOD, DRINK & AGRICULTURE
Greggs weathering economic stormBakery firm Greggs has seen like-for-like sales rise 5.8 per cent in the past six weeks as it continues to defy the economic crisis clutching many other firms. The no-frills bakery group, which operates some 170 stores north of the Border, unveiled a 7.7 per cent rise in sales to £276 million as it announced its interim results for the six months to June 14. Chief executive Sir Michael Darrington commented: "There is no doubt that the business climate has become more challenging since March. However, we are well placed to cope with this environment because of our focus on supplying the mainstream market with wholesome, tasty products and the wide variety of locations in which we trade." Shore Capital analyst Clive Black appeared to concur, adding: "Greggs will not be immune from down trading but we believe that those customers it loses to making their lunches at home should be offset by those giving the higher category players a wide berth."
(The Scotsman) Read all today's food, drink and agriculture news from scotsman.comRETAIL
Hamilton & Inches see strong demandUpmarket Scottish jeweller Hamilton & Inches has seen pre-tax profits climb 55 per cent to £886,000 in the year to March. The strong results from the luxury Edinburgh group is being taken as further evidence that wealthier members of society are avoiding the worst depredations of the continuing credit crunch. The company noted that trading in its shops in Edinburgh and Mayfair had been boosted by the extension of its range of luxury watches.
(The Herald) Read all today's retail news from scotsman.comTRANSPORT
New livery for Scottish trainsScotland's trains are set to be rebranded with Saltire livery as Scotrail pushes forward with the 'ScotRail – Scotland's Railway' branding of the network. The Scotsman has claimed the move will be carried out during routine repainting to avoid extra costs as the livery sweeps away the different colour schemes used in the east and west of the country. Stations are also set to be given a face-lift in the process with dark blue colour schemes and blue signs similar to those already being used at Glasgow Central and Edinburgh Waverley. However, the Transport Scotland scheme has not been met with universal approbation, with Labour MSP Lord George Foulkes branding the move 'independence by creep'. He added: "We saw this with the census question on whether people were Scottish or British, and rebranding the Scottish Executive as the Scottish Government. They know they can't have a straight fight on it because they would lose hands down, so they try to brainwash people into independence with a strategy of incremental changes." Gary Bogan, head of franchise futures for Transport Scotland responded: "The current range of train liveries creates confusion in the minds of passengers about whose railway it is, and who is paying for it. It does not create a unified brand image. Changes in the franchise do not coincide with when we need to repaint trains. We aim to create a brand which is independent of the franchisee. We want people to make the same connection as read buses have with London and yellow buses have with schools."
(The Scotsman)More passengers using Highland airportsA record 1.2 million passengers passed through Highlands and Islands airports in the year up to March, the operator has revealed. Highlands and Islands Airports Limited hailed the figures as a 3 per cent increase on the previous year though it also emerged the group has suffered a £724,000 trading loss for the period. HIAL chairman David Sutherland commented: "Our continuing strategic priority is to provide a safe and efficient group of airports while pursuing development opportunities which improve the air transport network serving the region. Our results for the year demonstrate that we have delivered against these targets and ensured that our airports have continued to play a central role in the economic and social life of the Highlands and Islands and Tayside."
(BBC Scotland Online) Read all today's transport news from scotsman.comPROPERTY
Edinburgh pushes housing planNew Edinburgh City Council proposals could see hundred of new homes built as the city aims to tackle the shortage of affordable housing in the city. If the scheme gets the go ahead it will see the first new council homes built in the city for nearly 20 years and would eventually result in 1,100 new homes being built in Pennywell, North Sighthill and Gracemount. Councillor Paul Edie, the authority's housing convener said: "This is the first time in a generation that the council has considered building homes which marks a major shift in strategy and defining council housing in the 21st Century. I hope the people of Edinburgh will be reassured that their council is responding to the obvious difficulties many of them face in finding a home."
(BBC Scotland Online) Read all today's property news from scotsman.com
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