BANKING & INSURANCEHopes revived for business banking as Lloyds TSB hails 'phenomenal fit'LLOYDS TSB has raised hopes that at least some of HBOS's substantial business banking presence north of the Border could b
e retained when the takeover of the Scottish bank is completed (
Scotsman). Business leaders yesterday raised said the takeover would have "serious implications" for customers who value HBOS's corporate banking operation. Unveiling terms of the £12 billion deal yesterday, Lloyds TSB executives would not give details of what would happen to the Bank of Scotland Corporate operation, led by the well-respected Peter Cummings. Bank of Scotland Corporate has come under fire in recent months for its increasing exposure to the housing and retail sectors and was reportedly attempting to sell its investments. But hopes that some jobs would be protected were raised when Lloyds TSB said there was an "absolutely phenomenal" fit between Lloyds Development Capital (LDC) and the private equity business of HBOS. Lloyds TSB chief executive Eric Daniels yesterday paid tribute to the businesses skills at Bank of Scotland and said a combined private equity business would be "maximised".
Read all today's banking news from scotsman.comECONOMYFSA bans short-selling financial stocksSHORT-SELLING of financial stocks was banned in Britain on Thursday, in a desperate effort by the City watchdog to shore up the stricken financial system (
FT). The ban, announced by the Financial Services Authority in a surprise move Thursday night, will prevent investors from creating or adding to short positions in banks, insurers and other financial companies. Short-sellers – particularly hedge funds – who profit from falling prices have been blamed for the plunging shares of HBOS and other banks. The new rules prompted UK bank shares traded in New York to soar, with most jumping more than 10 per cent within minutes of the announcement and Barclays rising more than 20 per cent. Traders said the ban was likely to cause a relief rally in financial shares on Friday, which coincides with a so-called "triple witching hour" when large numbers of options expire. However, hedge funds warned that by making it impossible to hedge investment risk during a rights issue or placing, the rules would push up the cost to banks of raising new capital. Shares could also become more expensive to trade, as hedge funds provide less liquidity to the market.
Read all today's economics news from scotsman.comFOOD, DRINK & AGRICULTURENo medals for Pernod Ricard as Olympics fail to boost salesPERNOD Ricard, Scotland's second-biggest whisky producer with brands including Ballantine's and Chivas Regal, has failed to get the boost it expected from the Beijing Olympics (
Scotsman). The French drinks giant said operating profit at its core business – excluding Sweden's Vin & Sprit (V&S), the owner of Absolut vodka acquired this year – would rise 8 per cent in the year to June unless there was a "a severe deterioration in the global business environment". Several analysts said they expected operating profit growth of at least 10 per cent with a market consensus of 9.7 per cent. The group, whose brands include Malibu and Beefeater gin, posted a 5.2 per cent rise in full-year profit from recurring operations, helped by growth in the Americas and resilience in its home market. It said profit from recurring operations topped 1.52 billion (£1.2bn) in the 12 months to 30 June, roughly in line with forecasts.
Read all today's media and leisure news from scotsman.comRETAILShops show surprise rise in sales – but government data questionedSHOPPERS defied the credit crunch last month, snapping up clothes and footwear and pushing high street sales sharply higher, according to new government data (
Scotsman). The Office for National Statistics (ONS) said UK retail sales volumes were 1.2 per cent higher in August than July – in complete contrast with forecasts for a drop of 0.4 per cent. That left sales in August standing 3.3 per cent higher than a year ago. Textiles, clothing and footwear sales leapt 4.1 per cent on the month to stand 8.8 per cent higher than in 2007, the ONS said. Summer promotional activity and parents kitting out their children for the new school year helped keep the tills ringing. However, analysts cast some doubt on the figures while the British Retail Consortium (BRC) said they were at odds with its own evidence of "tough" high street trading. The robust sales figures could dilute the case for a cut in interest rates, although central bank policymakers are still expected to trim borrowing costs before the end of the year as they balance rising inflation with a severe slowdown in the economy.
Fashion chain in good shape to sail through the hard timesCRUISE, the branded clothing chain, has provided further evidence that sections of the retail market are still in good shape by confirming plans to open new outlets in England after making a great start to the current financial year (
Herald). Writing in the latest accounts for the Glasgow-based company, directors said Cruise planned to beef up its presence in England with new stores in Bristol and Leicester despite predictions that retailers are in for an especially torrid time south of the border. Against the backdrop of a sharp slowdown in the formerly red-hot housing market in the south of England, retailers have complained that it has been getting increasingly hard to get consumers to part with their cash. Discounters like the Aldi and Lidl grocery operations have benefited from people moving downmarket in an attempt to save cash. The company, which focuses on selling high-end clothes produced by the likes of Dolce & Gabbana, appears to be benefiting from a trend that has seen niche operators that cater for the affluent continuing to do well.
Read all today's retail news from scotsman.comTRANSPORTAirport delays Highland show move EDINBURGH Airport has revised expansion plans which will delay the planned relocation of The Royal Highland Showground until after 2020 (
BBC). The BAA airport said it had been forced to change its longer-term plans in light of rising costs of relocating the showground in five years time. RHASS accused BAA of cherry picking what and when to buy, to avoid paying the full cost of the relocation. The plans require 25.5 hectares of additional land.This would be outside the airport's current boundary. The showground was originally due to have relocated by 2013. The expansion plans do not include building another runway and are being put in place to cater for rising passenger numbers using the international gateway. Forecasts predict the current passenger number of 9.1 million will rise to 12.7 million by 2013 and to 17.6m by 2020.
Read all today's transport news from scotsman.com
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