ECONOMYBusiness investment downBusiness investment in the UK fell by a further 1.9 per cent in the second quarter according to new figures from the Office of National Statistics. The new data revealed investment
had fallen from £36.5 billion in the first quarter to £35.8 billion in the three months to June 30. The fall comes after the 1.8 per cent drop from the fourth quarter of 2007 and the first quarter of 2008, the first time business investment has fallen in consecutive quarters since 2001. Alysoun Stewart, head of entrepreneurial advisory services at Grant Thornton commented: "The process of belt-tightening has begun in earnest as business investment falls for a second quarter after a period of steady increase. Non-essential investment is already on hold for many UK businesses as costs are reined in, but on the flipside this will certainly have an ongoing negative impact on the UK manufacturing sector as a significant proportion of what is manufactured in the UK is used in the production of other goods, both here and abroad. We are likely to see another 12 to 18 months of falling business investment in response to economic conditions, but with this drop in investment comes the very, real danger of UK businesses falling behind competing firms abroad, particularly in the fast-growing nations of the developing world."
(The Herald) Read all today's economics news from scotsman.comENERGY & UTILITIESWood Group seals Australian dealAberdeen oil and gas firm the Wood Group has completed a deal to buy Australian oil and gas safety training company, Marine & Offshore Group. The value of the deal has not been confirmed but it is known that the Australian firm generated some $9 million in revenue in the year to June 30 and holds gross assets worth $8.3 million. Under the deal the company will retain its name and chief executive with 200 staff being transferred into Wood Group's Engineering and Production facilities division. Wood Group director Les Thomas welcomed the deal and said: "We see their service as complementary and supportive of our international expansion plans."
(The Scotsman)Error delays wind farm inquiryThe public inquiry into plans for a wind farm on Drone Hill in the Borders has been halted after it emerged the plans for the development had been placed for public inspection in the wrong library. The blueprints should have been in Eyemouth library but were in fact placed in Duns – the error has now seen the inquiry halted until September 30. A statement from Scottish Borders Council said: "Supporting documents relating to this inquiry were deposited in Duns library rather than Eyemouth library – which had been the location agreed at a pre-inquiry meeting. It is unclear at this stage how the mistake happened but we are looking into this."
(BBC Scotland Online) Read all today's energy and utilities news from scotsman.comFOOD, DRINK & AGRICULTUREStills arrive at RoseisleThe construction of Scotland's first new distillery in more than 18 years is pushing ahead at Roseisle, Moray. A consignment of 14 new stills has arrived at the distillery in which Diageo is investing some £40 million as part of a £100 million investment in Scotland by the drinks giants. The distillery is expected to begin operations by early 2009 and will feature cutting-edge sustainable technology.
(The Herald) Read all today's food, drink and agriculture news from scotsman.comRETAILHigh street sales upNew Office of National Statistics figures have revealed retail sales rose last month despite analysts' expectations. Last month saw one of the highest levels of price increases in almost a decade but sales were up 0.8 per cent. On a year on year basis sales were up only 2.1 per cent, while this is the lowest rate of increase since February 2006 it is still stronger than was expected for the period. However, the public have been warned to not read too much into the sudden, unexpected rise which does not 'reflect reality'. Strategic adviser to the retail practice at Deloitte, Richard Hyman said: "Don't be fooled by the inevitable ebbs and flows of the statistics. Whether one looks at major retailers at the value and luxury ends of the market or in the middle, it is crystal clear that everyone is feeling the pinch and no-one is immune. For retailers, the gap between costs and sales growth is getting increasingly uncomfortable. Given the difficulty in persuading people to spend more, there is a compelling need to revisit cost models."
(The Scotsman)Tesco face defeat on Annan store planDumfries and Galloway Council's planning department have recommended a proposal for a new Tesco store in Annan for refusal. The council have been advised to reject the scheme in favour of an outline superstore plan being proposed nearby by regeneration group Katalyst. A spokesman for Tesco said the supermarket giant was disappointed with the decision and contended that the site it was hoping to develop was superior to that being promoted by the regeneration group. Tesco Scottish Corporate Affairs Manager Doug Wilson added: "The Tesco and Katayst sites are neighbouring out-of-centre locations, with little to chose between them If there is no operator to take a supermarket project forward, it is clear that, if approved, Annan will be left to suffer retail leakage or the foreseeable future."
(BBC Scotland Online) Read all today's retail news from scotsman.comTECHNOLOGYProStrakan promises return to the blackChief executive of Galashiels drug company ProStrakan has promised the company will return to the black in 2009 as it continues to push into the US market. Wilson Totten commented: "We will certainly become profitable during the course of next year at the operating level,and probably also at the pre-tax level." The statement came after the drugs group announced an operating loss of £7.6 million for the six months to the end of June.
(The Herald) Read all today's technology news from scotsman.comTRANSPORTMenzies confident despite profits slumpJohn Menzies saw profits fall by more than 20 per cent this year as the slowing global economy struck at the heart of the business. Cargo and passenger volumes across Europe and the US saw half-year profits fall from £15.3 million to £11.4 million. However, management at the firm remain confident it would hit its predicted profits by the end of the year, with the analysts forecasting full year figures of more than £36 million. Finance director Paul Dollman commented: "We think we can drive the business forward, despite the fact volumes are going backwards. We are not going forwards as fast as we thought we were going to go, but we are going forwards." He added that while the aviation sector was suffering, Menzies expected the second half to benefit from expansion across the globe. Dollman said: "The US market is off, the UK and Europe is definitely down, but India is still growing. One of the strengths of our geographic footprint is we have got some growth markets as well as some going off. In the second half, there will be less start-up costs and the US is actually getting slightly better in the second half. We have taken cost out around the world in anticipation of orders coming off. We are determined to outrun the impact of lower volume."
(The Scotsman) Read all today's transport news from scotsman.com
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