BANKING & INSURANCE
HBoS to takeover Clydesdale?Analysts have begun speculation that HBoS may hand over its Australian operations to National Australia Bank in return for the Clydesdale. The speculation arose as it was confirmed H
BoS is considering asset sales as it seeks to reduce its funding requirements and build on the recent £4 billion cash call which ended in embarrassment. Analysts from Deutsche Bank suggested: "An asset swap with NAB might be a good solution for both sides. Though we wouldn't rule out HBoS making a concession on price or terms in order to conclude a cash deal, we believe an alternative would be for HBoS and NAB to exchange offshore assets (NAB's Clydesdale and Yorkshire for HBoS Australia)."
(The Herald)Pearl to cut jobsJobs are set to go at Pearl Group's Glasgow and Peterborough offices after it was announced the two offices are to be consolidated into a single office in Birmingham. Pearl currently employ 270 staff in Glasgow and 180 in Peterborough and the group claimed it hoped to keep the total job losses to 300 through relocation. Chief executive Jonathan Moss said: "We need to build a business which is vibrant and efficient both today and into the future. This move helps us do this by creating a single main site of scale."
(BBC Scotland Online) Read all today's banking news from scotsman.comECONOMY
Finance leaders fear recessionA survey of Scottish company finance executives has revealed that two thirds feels the UK is already in or will soon be in recession. The Institute of Chartered Accountants Scotland poll found that 22.5 per cent felt the economy was already in recession, while some 42.5 per cent believe a recession this year is 'very likely'. Worryingly, only 1.3 per cent of those questioned for the poll published in CA Magazine expected the current liquidity crisis to ease by the end of the year, with a further 13.1 per cent predicting light would appear at the end of the tunnel in the first half of 2009. Chief executive of Icas, Anton Colella commented: "All FDs (finance directors) list availability of finance high up on their main challenges for 2008 – something that has not appeared in previous surveys, so liquidity remains a key issue." Assistant director of CBI Scotland, David Lonsdale added: "The expectation is things will get tougher before they get better and it wouldn't take too much for the economy to experience a technical recession. That is why we have been calling on the government, at every level, to ensure all new policies are tested against a single benchmark: will it aid Scots businesses in creating wealth and jobs."
(The Scotsman) Read all today's economics news from scotsman.comINDUSTRY
Dawson posts improved resultsThe future of the Todd & Duncan spinning mill in Kinross remains in the balance despite parent company Dawson International reporting improved results in the first half of the year. The cashmere group revealed it was still considering 'all possible options' for the mill as it reported an operating loss of £1.1 million for the half year. Dawson chairman Mike Hartley commented: "I am encouraged by the performance of all of our businesses in the first half of 2008. Despite challenging economic conditions turnover has increased from £40.1 million to £41.7 million and the first half operating loss before non-recurring items has reduced from £3.8 million to £1.1 million with all divisions improving their results."
(The Herald) Read all today's industry news from scotsman.comMEDIA & LEISURE
Service sector continues to shrinkThe shrinkage in the services sector has continued for a fourth consecutive month, according to new figures from the Chartered Institute of Purchasing and Supply. Overall activity in the sector stood at 49.2 according to the latest services index, which, while better than expected, is still below the flat rate figure of 50. The survey revealed that new business is also continuing to slow, though less rapidly than previously. Meanwhile, many of the respondents complained that spending among clients 'remained on hold' due to the downturn in the property market and the ongoing credit crunch. Senior economist at Markit Economics, Paul Smith offered some hope: "The rise in the headline index provides some hope that the downturn of recent months may have passed its lowest point. However, it would seem a little premature to herald this given the continued downside risk to growth that exists."
(The Scotsman) Read all today's media and leisure news from scotsman.comRETAILScottish prices on the riseThe new survey from the Scottish Retail Consortium has shown that shop prices are rising faster in Scotland than in the rest of the UK. However, the SCR also revealed that the cost of bread, milk and other goods is Scotland remains lower than in Britain as a whole due to previous price falls. August saw prices in Scotland rise some 4.3 per cent on the same month last year, the rise in the UK as a whole stood at 3.8 per cent. SCR director Fiona Moriarty said: "Although shop prices are rising faster in Scotland that doesn't mean Scottish prices are higher than in the rest of the UK. The sharp price falls experienced in Scotland throughout the first half of 2007 mean Scottish prices are up only 2.4 per cent since the end of 2005. That compares with 2.8 per cent for the whole UK, clear evidence that competition is intense and retailers are delivering a favourable deal for Scottish customers." On an wider economic basis, Global Insight's Howard Archer suggested the figures would have an impact on the Bank of England's Monetary Policy Committee due to make a decision on interest rates today. He added: "The further sharp rise in the shop-price deflator in August is not good news for the Bank of England. While shop prices continue to be pushed up primarily by high food prices, the Bank of England will also note that non-food prices rose year-on-year for a third month running in August, and at an increased rate, after extended falls."
(The Scotsman) Read all today's retail news from scotsman.comTECHNOLOGYKelvin Connect sells stakeGlasgow University spin out Kelvin Connect has agreed to sell a £1 million stake in the business to Airwave. Kelvin Connect hope the move will allow rapid expansion of the business, which provided police in Scotland with electronic notebooks, across the UK. It is expected that the Hillington based company will now boost its workforce from nine to 60 by the end of 2010. Kelvin Connect's chief executive Simon Hardy commented: "This is a very significant deal for us because it deepens our partnership with Airwave and it will generate a huge amount of business for us throughout the UK. The £1 million we get from the equity stake will allow us to expand our operations to support this new business."
(The Herald) Read all today's technology news from scotsman.comTRANSPORTTrams firm on recruitment driveThe company behind the Edinburg tram project is seeking to boost its workforce with some 50 new recruits. Bilfinger Berger currently boasts a workforce of 70 but is bidding to increase staffing levels as the £500 million transport project accelerates. Managing director Richard Walker commented: "The Edinburgh Tram project is one of the most exciting and challenging infrastructure developments currently happening anywhere in the UK. We already have an excellent team in place in Edinburgh and, with the construction phase of the project gathering momentum, we are now in a position to ramp up our recruitment. This project will deliver the world class tram system which Scotland's capital deserves and we're delighted that we are able to support the local economy by boosting employment in the city."
(BBC Scotland Online) Read all today's transport news from scotsman.com
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