BANKING & INSURANCE
Banks circle HBoS Australian assetsTwo of Australia's biggest banks are believed to be considering bids for Halifax Bank of Scotland's Australian businesses. Commonwealth Bank of Australia and National Australi
a Bank are both said to have looked seriously at acquiring the retail operations of the HBoS owned Bank West, though it is thought they are less keen on taking on HBoS' other Australian operations. Bank West currently holds some 860,000 customers across the country while the other HBoS business – BOS International, Capital Finance and St Andrew's – take care of corporate banking.
(The Herald)Job loss fears at Dresdner KleinwortIt is feared that up to 1200 jobs could go at Dresdner Kleinwort if a £7.3 billion takeover bid by Germany's Commerzbank is successful. The bank is currently owned by insurance giant Allianz but Commerzbank is said to be in the final stages of talks to become the new owner with details expected to emerge this week. According to reports in the weekend press, the deal will see Commerzbank winding down DK's proprietary trading operations as well as radically reducing its equity research business while traders, bankers and IT staff are also expected to go with the London office being closed.
(The Herald) Read all today's banking news from scotsman.comECONOMY
Aberdeen development a major boost, says SalmondFirst Minister Alex Salmond has hailed the construction of a hotel and office development in Aberdeen as a major boost for the economy and evidence of the nation's resilience in the face of global economic turmoil. The First Minister made the comments during the ground-breaking ceremony for the £75 million development being driven by the Hazeldene Group. He commented: "This is a tremendously exciting development for Aberdeen and for Scotland. This project is a welcome boost for the construction industry, for employment and to Aberdeen's commercial attractiveness. It is a significant investment, which shows that the Hazeldene group recognizes Scotland's potential for sustainable economic development. This government is determined to focus all our efforts on helping to realise that potential."
(BBC Scotland Online) Read all today's economics news from scotsman.comFOOD, DRINK & AGRICULTURE
Whisky industry bucks downturnThe financial market turbulence appears to have had little effect on the Scotch whisky industry after it was revealed exports were up 14 per cent to more than £1.3 billion in the first half of 2008. The provisional figures from the Scotch Whisky Association show the actual volume of exports fell but an increase in value of shipments was recorded. The news is being taken as another sign that the sector is proving particularly resilient against the continuing credit crunch. A spokesman for the Scotch Whisky Association commented: "The latest figures show the Scotch whisky industry's international market spread, exporting to 200 countries, is mitigating against challenging international economic conditions. As a number of companies have said, whilst consumers may be reluctant to buy a new car or property, they continue to buy and enjoy premium spirit drinks such as whisky." Diageo chief Paul Walsh believes the strength of emerging markets is also helping to buoy the sector, he said: "It is true that emerging markets have their own economic challenges, but many are not as tied as they once were to the United States and its economic challenges. Looking at the current (economic] problems, we take comfort from the fact that in the past downturns, such as the Asian financial crisis of the late 1990s, whisky sales may decline in individual markets steeply in the short term ut are very resilient because of the global spread of markets."
(The Scotsman) Read all today's food, drink and agriculture news from scotsman.comINDUSTRY
Engineering takes a hitNew figures from Scottish Engineering have revealed the sector in Scotland has suffered its first fall in orders for nearly five years. Firms operating in the oil and gas sector appear to be getting by but machine shops and mechanical engineering groups are suffering according to the trade figures. The quarterly report also paints a bleak picture of manufacturers' margins being squeezed by price hikes in the marketplace as fuel, energy and raw material costs continue to spiral. Chief executive of Scottish Engineering, Peter Hughes commented: "We should probably not be surprised that, for the first time in almost five years, the overall order intake in the Scottish Engineering manufacturing sector is being reported as negative. While it is noted that price levels had been increased both in home and export markets, margins continue to be severely pressed on the back of significantly higher input process." Hughes also feared that the 'honeymoon period' being enjoyed by firms with recently acquired Eastern European workers may be coming to an end. He added: "Anecdotal evidence is suggesting that while overall we have been extremely impressed by the work ethic they have brought with them, there is some sign of deterioration and this is made worse by the decision of a growing number of these workers returning to their home countries."
(The Scotsman) Read all today's industry news from scotsman.comPROPERTY
McCarthy & Stone to seek refinanceRetirement home builder McCarthy & Stone is believed to be on the verge of agreeing a £800 million refinance package as it battles against the economic downturn. The group, in which Sir Tom Hunter holds an 8 per cent stake, is said to have been in talks with its banks for some months over the possible restructuring of loan payments and repayment timetables. A 'source' was quoted in the Scotsman: "M&S is not 100 per cent there yet on the refinancing, but it is a very solid business so everybody is pretty relaxed about the situation. It is getting there with the banks." Meanwhile, one analyst told the Scotsman: "To be frank, lots of housebuilders will have been talking about their covenants with their banks given what's happened in the sector. M&S is in a better position than some of its peers in these negotiations because it is seen as more robust than most in trading terms, given its customer demographic and the 'grey pound'. They will want to put the talks behind them, however."
(The Scotsman)Buccleuch adapting to property changesOne of Scotland's richest men, the Duke of Buccleuch, has revealed in his first report as chairman of the sprawling Buccleuch Estates how the business is coping with 'unprecedented difficulties in financial markets'. Richard Scott, the 10th duke, took over the running of the estates following the death of his father and he admitted the company was in the process of adapting to 'one of the fastest corrections in the property industry experienced in recent times.' He said: "Whilst recognising that we will have been affected by falling property values we remain confident that the majority of our assets remain robust in the context of their historic acquisition prices, strong cash flow and our ability to add value."
(The Herald) Read all today's property news from scotsman.com
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