ECONOMYMPC set to hold interest ratesThe Bank of England's Monetary Policy Committee is widely predicted to maintain base interest rates at their current level when they meet today. The combination of rapidly det
eriorating growth and surging inflation currently engulfing the UK economy is expected to stay their hand despite widespread calls for an immediate cut in the base rate. There was little comfort from the International Monetary Fund yesterday when managing director Dominique Strauss-Kahn refused to be drawn on whether the global financial crisis had run its course. She said: "It's very difficult to say if the biggest part of the financial crisis is already behind us or not. What is sure is that the consequences for the real (economy) sector, of the financial crisis, are still in front of us." She added: "In developed countries, central banks have taken it (inflation) into account and have the correct monetary policy stance. In emerging countries and some low-income countries, in some of them at least, inflation is out of control. That means monetary policy probably has to be tightened in coming weeks or coming months."
(The Herald)9000 jobs will go this year, claimScotland could see 9000 job losses this year as the economic gloom continues to deepen, but may yet avoid a recession. Tony Mackay of Mackay Consultants predicted that up to 4500 jobs could go in the housebuilding sector while more jobs could be lost in financial services. However, Mckay commented in his monthly report on the Scottish economy: "We need to maintain a close watch on short-term trends, particularly consumer spending, over the next few months. Nevertheless, on present evidence, I am confident the Scottish economy will not go into recession." Insolvency expert with Johnston Carmichael, Matt Henderson agreed with the sentiment and said: "It's 50-50 that the British economy will fall into recession, but the more we talk about it, the more it's likely to happen. It starts to be a self-fulfilling prophecy. Once the idea enters our common vocabulary, then it starts to happen. It can be very hard to maintain morale when the word is that we are heading for recession and that we are all doomed." David Lonsdale, assistant director of CBI Scotland added: "It is still far from certain that the economy will fall into recession, though we are heading into choppier economic waters and do think the dip in the growth rate may well last for up to 18 months. Some sectors, such as energy exporters, are doing well, but others such as house-building and hauliers are finding it very tough."
(The Scotsman) Read all today's economics news from scotsman.comTECHNOLOGYAxeon revels in soaring fuel costsDundee battery technology firm Axeon Holdings is benefiting from the continued upward movement of fuel prices. The Tayside group has revealed the increasing cost of fuel has seen an acceleration of interest in its electric vehicles but added that orders are 'relatively uncertain in the short term'. A company statement said: "We remain cautious about the rate of sales build up in 2008 and 2009, but believe that in the medium term the market may be bigger than previously expected. The rise in oil prices accelerates the economic case for electric vehicles and the general thrust of government and global policy is moving in favour of electric and plug-in hybrid vehicles." Chief executive Hamish Grant added: "Our customers continue to forecast double digit growth rates of demand of our battery products. The increase in the number of customers prototyping vehicles using our battery technology augurs well for the future."
(The Herald)Universities receive outside work boostUniversities in Scotland pulled in more than £300 million in external income last year, new figures have revealed. According to the Higher Education Business and Community Interaction survey, Scottish higher education institutes benefited to the tune of £312.7 million from external sources, marking a 21 per cent increase on the previous year. The figures include revenue from spin-outs, external research contracts, consultancy and training and lend credibility to the argument that Scottish business is starting to take advantage of the nation's universities. A spokesman for Universities Scotland commented: "A number of people have suggested universities need to show their economic impact if they are to make a strong case for more funding. This study shows that Scotland is out-performing everybody and is transforming the relationship between business and universities. This is precisely the sort of evidence that shows why investment has got to be a priority. This report doesn't surprise us and shouldn't surprise anyone with an interest in Scotland's prosperity."
(The Scotsman)Iomart to specialiseGlasgow-based IT services company Iomart is set to become a specialist web-hosting company after the sale of its business directory. The £20 million deal will the Ufindus arm of the business transfer to BT and saw shares in the AIM listed firm jump by nearly nine per cent. The deal was welcomed by Iomart chief executive Angus MacSween who said the sale 'in this more uncertain environment, reflects the quality of the business that has been built up and crystallises its value for shareholders."
(The Scotsman) Read all today's technology news from scotsman.comTRANSPORTBus routes will run despite fuel issuesScottish Borders Council has pledged to maintain bus route despite two firms pulling out as the cost of fuel continues to spiral. Both Munro's of Jedburgh and Mobility Assist have pulled out of a number of routes in the area in the face of the rising cost of fuel. Under European law the council is unable to enter into new deals covering the new routes until July 16. A statement from Scottish Borders Council read: "At that time, new contracts for all services will be awarded and any changes to bus operators will then be confirmed in a further announcement. All service timetables will remain unchanged and no bus service will be lost."
(BBC Scotland Online) Read all today's transport news from scotsman.comPROPERTYTwo more housebuilders confirm job lossesBovis Homes and Redrow have joined the panoply of housebuilders announcing job cuts as the credit crunch continues to savage the housing sector. The two housing giants are set to cut some 750 jobs in a bid to cope with the deepening depression in the housing market. Chief executive of Kent-based Bovis Homes group revealed yesterday that the current slump in the sector feels 'an awful lot worse' than the previous collapse in the market in the early 1990s. The choke in the housing market began last summer but has been substantially increased by the reluctance of banks to provide the cheap credit on which many buyers depended. Analyst at Landbanski, Simon Brown said: "The current position is out of the control of Redrow and its peers and shows no sign of abatement. It will be interesting to see what Barratt have to see."
(The Herald) Read all today's property news from scotsman.com
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