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BANKING & INSURANCEMortgages approval fall againNew Bank of England figures have revealed that fresh mortgage approvals for house purchases in the UK have fallen yet again, hitting their lowest level in March sin
ce the early 1990s. The numbers dropped from a seasonally adjusted 72,000 in February to the worrying 64,000 in March. The mortgage figures came on the same day that the Confederation of British Industry painted a gloomy picture of high street trading, revealing the largest fall in year-on-year retail sales volume since November 2005.
(The Herald) Read all today's banking news from scotsman.comECONOMYMPC member warns on recessionAn influential member of the Bank of England's Monetary Policy Committee has warned Britain could follow the US into recession unless there is an immediate and aggressive cut in interest rates. David Blanchflower made the comments in a speech in Edinburgh in which he also cautioned that house prices in the UK could fall by as much as a third before the worst is over. He said: "More bad news is on the way. I think it is very plausible that falling house prices will lead to a sharp drop in consumer spending. Developments in the UK are starting to look eerily similar to those in the United States six months ago. There has been no decoupling of the two economies: contagion is in the air. The US sneezed and the UK is rapidly catching cold. The credit crunch is starting to hit and hit hard." Commenting on the role of the MPC in avoiding the worst of the global economic fall out, he added: "Our main priority now is to ensure we conduct monetary policy in such a way that he UK doesn't slip into recession, causing us to significantly undershoot the inflation target. It isn't too late."
(The Scotsman) Read all today's economics news from scotsman.comENERGY & UTILITIESCairn in profits surgeDespite a fall in production Cairn India, owned by Edinburgh's Cairn Energy, has reported a near 300 per cent increase in profits in the first half of 2008. Consolidated profit before tax for the Bombay listed company stood at $45.8 in the three months to March 31, up from $15.7 million in the first quarter of last year. The announcement comes as the group revealed it was confident of first production from its Rajasthan fields coming online in 2009. The project has been dogged by delays but is now approaching a workable solution which is expected to see it produce up to 175,000 boepd. Chief executive Rahul Dhir commented: "We are delighted that the (field development plan] for Bhagyam, the second biggest filed in Rajasthan, has now been approved. Oil field development work in Rajasthan is well under way. The major contracts for the integrated upstream and midstream development are in place and on course to deliver first oil from Mangala in the second half of 2009."
(The Scotsman) Read all today's energy and utilities news from scotsman.comINDUSTRYSuperglass looks to cash inStirling-based insulation manufacturer Superglass saw its shares surge by nine per cent yesterday as it positioned itself to take advantage of the government's bid to reduce carbon emissions from residential properties. The group, which floated last July, also booked a 27 per cent increase in first half profits, with numbers up to £3.3 million. The news come after shareholders were becoming restive over the £12 million Superglass has invested in its Stirling plant since 2003 in anticipation of the carbon emission reduction target programme. Chief executive John Smellie commented: "We have the potential for further increases beyond that at relatively low capital cost." In a note, analysts at Brewin Dolphin added: "Interim is slightly ahead of our forecast and ahead of the prior year despite a backdrop of temporarily challenging market conditions and rising energy process. With Cert activity now increasing, we believe that the group remains broadly on track to hit full-year forecasts."
(The Scotsman) Read all today's industry news from scotsman.comTECHNOLOGYDell to cut Scottish jobsComputer maker Dell has revealed plans to cut its global workforce by five per cent, which will see 41 jobs in Scotland go. The announcement comes after the Texan firm had claimed it was ready to double its Scottish workforce to more than 1600. General manager at Dell in Scotland, Charles Quinn said: "We have seen our growth accelerate driven by the strongest portfolio of products and services in our company's history. That said, recent statements from Michael Dell, our chairman and CEO, as well as Don Carty, our CFO, made it clear there is more work to do on cost to restore competitiveness so that we can deliver long-term profitable growth." He added: "While we are still confirming the detail of these changes in consultation with staff and their representatives, we anticipate making reductions in our staffing levels across EMEA over the year of between four per cent and five per cent from a workforce of 17,5000. Within Scotland, staffing level reductions are in line with the EMEA level of between four per cent and five percent from a workforce of 830."
(The Herald)Drug group reaches agreement with Scottish GovernmentUS healthcare giant Norton has agreed a £2.8 million settlement with the Scottish Government over allegations of the fixing of medicine prices. The group has agreed to the payment on a full and final basis but has not admitted liability following the court action lodged in 2005 against a number of drug companies including the Goldshield Group which paid £750,000 in March. Health secretary Nicola Sturgeon commented: "I am very pleased that the position with Norton has been resolved to the satisfaction of the parties in these proceedings. This is a particularly welcome and encouraging development. The Scottish Government is committed to the highest standards of healthcare at all levels."
(BBC Scotland Online) Read all today's technology news from scotsman.comPROPERTYPeter Pan property for saleA Dumfries house said to have inspired the classic story Peter Pan has attracted interest from property developers after being placed on the market. The gardens of Moat Brae were credited as inspiring JM Barrie to write the fairy tale but the house is now likely to be redeveloped as a hotel or flats. The property was bought at auction for £80,000 in 2000 but is now expected to fetch more than £140,000. However, major works will be necessary with RE/MAX office owner Christine Lloyd warning: "It is about as bad as it could get. I could not get from the front to the back, the floors are giving way. But you could see what a fabulous building it had been."
(BBC Scotland Online) Read all today's property news from scotsman.com
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