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BANKING & INSURANCELeading banks could take on B&B sharesRoyal Bank of Scotland and HBoS could end up owning a slice of Bradford & Bingley after they agreed to act as sub-underwriters on the buy-to-let specialist
s on its recent cash call. Shareholders representing only 27.84 per cent of the bank's capital took up the offer of new stock in the recent B&B rights issue, leaving the underwriters to pick up the remaining 600 million shares. Citibank and UBS are the chief underwriters but six leading high street banks, including the two Scots groups, agreed to act as sub-underwriters and now look set to share £328 million of stock.
(The Scotsman) Read all today's banking news from scotsman.comECONOMYDownturn is good for someAccountants and insolvency experts appear to be benefiting from the current economic downturn as they recruit extra staff to deal with the increasing number of firms unable to fight free of the credit crunch. Edinburgh-based accountancy firm Johnston Carmichael is just one practice expanding in the current climate, moving to a larger office and increasing its headcount by 40 per cent. Insolvency practitioner at Johnston Carmichael, Matt Henderson commented: "We believe spring 2009 will be the peak and we are expanding accordingly. I, and also members of my staff, have had a lot more calls from recruitment consultants than usual, suggesting other firms are doing the same and that there are more jobs around." The recent change in bankruptcy legislation making it easier for individuals to declare themselves bankrupt is also expected to begin having an effect. Eileen Maclean of the R3 accountancy trade group added: "We are expecting it to get busier over the next few months. It has been fairly steady up to now, but given the general economic climate we are expecting things to change. When the marketplace is busy, one of the first signs is a lot of movement in the industry – it suggests there are jobs out there and people aren't as worried about hanging on to the job they've got."
(The Scotsman) Read all today's economics news from scotsman.comENERGY & UTILITIESMine plan recommended for approvalAn application to operate a new open cast mine in the south of Scotland has been recommended for approval. The scheme from ATH Resources would see the development at Rigg near Kirkconnel and is expected to create some 100 new jobs. The plan will inevitably be called in by the Scottish Government for a final decision but Dumfries and Galloway Council's planning department ate backing the development. Concerns have so far been raised by SEPA over the potential for flooding while Scottish Natural Heritage are calling for restrictions to be imposed to protect native water voles.
(BBC Scotland Online) Read all today's energy and utilities news from scotsman.comMANAGEMENTPost offices marked for closuresThe Post Office have ear-marked dozens of post offices across Edinburgh, the Lothians and the south of Scotland for closure. A six week consultation period has begun on the possible closure of 26 offices and he downgrading of a further 32 offices as the Post Office continues its hugely controversial rationalisation regime. The Post Office's network development manager for Scotland, Sally Buchanan commented: "Taking the decision to close any Post Office branch is always very difficult and we know will cause concern to many of our customers. We want to ensure everyone who uses, relies on or has any concern with Post Office services is both fully aware of the proposed changes, and able to give views on them."
(BBC Scotland Online) Read all today's management news from scotsman.comPERSONAL FINANCEPersonal loan rates soarThe cost of personal loans has soared to a seven year high as lenders continue to increase rates in the face of the credit crunch. The best rate currently available on the borrowing of £5000 over three years is now 7.6 per cent, believed to be the highest buy rate since 2001. Analyst at moneyfacts.co.uk, Michelle Slade commented: "In the last few years the market for personal loans has been extremely competitive as lenders and borrowers cashed in on the availability of cheap credit. Increased competition pushed prices down and lenders continually undercut each other in order to top best-buy tables."
(The Scotsman) Read all today's personal finance news from scotsman.comRETAILWoolworth shares up on bid rejectionShares in retail giant Woolworths surged yesterday, climbing 20 per cent at one point, as the chain rejected a takeover offer from Iceland founder Malcolm Walker. Woolworths claimed it had rejected the bid as they felt it undervalued the group's assets while also involving an impractical level of restructuring and increased pension liabilities. Walker has so far refused to reveal how much he offered for the group, though industry sources put the offer at 'tens of millions' of pounds. Should a takeover prove successful it would add some 815 stores to the Iceland empire which is owned by Icelandic group Baugur which already holds 10 per cent of Woolworths.
(The Herald) Read all today's retail news from scotsman.comPROPERTYHomeowners choose to rent rather than sellA new Royal Institution of Chartered Surveyors survey has revealed that more and more homeowners are choosing to rent out their properties than sell as the housing market continues to slump. The survey revealed the buy-to-let market is heating up at its highest rate for a decade – the report revealed that 43 per cent of surveyors had recorded an increase in the number of new landlord instructions. It was also revealed that the number of landlords selling their properties at the end of leases has fallen. It is thought the increasing market is due to the restrictions currently hitting the mortgage market forcing would-be buyers to rent until the banks loosen the purse strings on property lending. RICS spokesman James Scott-Lee commented: "The lettings market is booming, with many vendors opting to rent their property while sales in the housing market continue to dry up." The picture in Scotland is not quite as clear cut, with only 15 per cent of surveyors reporting an increase in landlord instructions. However, the number of unsold properties entering the Scottish letting market is believed to be on the increase.
(The Scotsman)Skandia don't agreeSavings group Skandia appears to have set itself in opposition to the Royal Institute of Chartered Surveyors by predicting a slump in the buy-to-let market. The unit of insurance group Old Mutual is predicting the market could slump by up to 70 per cent as concerned investors flee what is being seen as an increasingly risky investment option. The report did suggest the sector would expand enormously in the short term, however, it then expects the market to contract sharply.
(The Herald) Read all today's property news from scotsman.com
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