BANKING & INSURANCECredit crunch claims first victimsBoth HBoS and Aberdeen Asset Management are set to cut staff as the credit crunch claims its first major financial casualties north of the Border. Edinburgh ba
nking giant HBoS has revealed it will be forced to cut 90 jobs from its corporate banking operation amid fears that a series of cuts could lead to as many as 5000 financial jobs going in Scotland. Some 92 employees of Bank of Scotland Corporate were called in yesterday morning to be told they would be made redundant, though some may be redeployed it is expected the majority, including some at director level, will lose their jobs. A statement from HBoS read: "Bank of Scotland Corporate constantly reviews its operations to ensure that it has the right level of staff to meet the needs of the business. We have decided to potentially reduce staffing levels by around 90 posts in various locations across the UK. The relevant teams have seen significant growth in recent years and currently employ around 1000 people in total." The news came as Aberdeen Asset Management revealed plans to cut staffing costs by at least £15 million. Finance director Bill Rattray commented: "During the good times, asset managers typically build up a little bit of fat in their cost base. We're addressing that a bit more aggressively during difficult times."
(The Scotsman)AAM makes major property dealDespite being forced to make job cuts, Aberdeen Asset Management has made a £130 million acquisition with the takeover of Goodman Property Investors. The initial deal will see AAM pay £89 million in cash for the firm with up to an additional £40.9 million based on the value of Goodman's assets when the sale is completed over the next two years. The deal will see AAM become one of the top ten largest property management companies in the world and saw the firm placing 65 million new shares on the market yesterday to help raise funds for the acquisition. Bill Rattray, finance director at AAM conceded the commercial property sector may fall in the short term it would prove a good long term platform for the asset managers. He added: "We would subscribe to the view that there may still be some downside in UK commercial property (in the short term] but in the longer term this gives us a good platform to build on."
(The Scotsman) Read all today's banking news from scotsman.comECONOMYConsumer confidence dentedThe Nationwide Building Society has released new data showing the continuing financial turmoil has further dented consumer confidence. The building society's consumer confidence index dropped by seven points during April to 70, its lowest level since it was first launched in May 2004 and 20 per cent lower than the previous April. Nationwide chief economist Fionnuala Earley commented: "Food and fuel prices remain high and, with house prices no longer rising, it is unlikely that consumer confidence will pick up very quickly."
(The Scotsman)Service sector slumpsThe normally buoyant UK service sector has seen its growth flatline in April raising further questions about the continued momentum of the economy. The latest survey from the Chartered Institute of Purchasing and Supply showed growth in the sector falling to its slowest pace since the Iraq invasion in March 2003, a situation UK chief economist at Global Insight Howard Archer described as 'very worrying'. The greatest concern is that the news comes amid signs of significant deterioration in consumer confidence, the retail sector, the housing market and manufacturing. Archer commented: "This is a very worrying survey. Following on from recent weaker data ad surveys relating to consumer confidence, retail sales, the housing market and manufacturing activity, essentially stagnant service sector activity in April puts serious pressure on the Bank of England to cut interest rates again on Thursday despite current elevated inflation concerns. It now looks an extremely close call and, while we suspect that a majority of MPC members will still be reluctant to enact back-to-back interest rate cuts at this stage, the odds are stacked in favour of interest rates being down to 4.75 per cent by June."
(The Herald) Read all today's economics news from scotsman.comENERGY & UTILITIESIberdrola prepares BE bidSources have claimed ScottishPower parent company Iberdrola is putting the finishing touches to a bid for nuclear generator British Energy. The deadline for offers falls on Friday and Iberdrola is believed to be among a group including French firm EDF, German utility giants RWE and British Gas owner Centrica which will present bids for the partly government-owned group. A spokesman for Iberdrola commented on the speculation: "We are studying this but still have not taken a decision. We will decide over the coming week." It is thought that RWE have already made indicative all-cash bid of just under 700p per share, valuing British Energy at £11 billion with further sources claiming EDF is set to bid substantially below that level in the hope that its expertise in nuclear generation will carry the day.
(The Herald) Read all today's energy and utilities news from scotsman.comMANAGEMENTHBJ Gateley in expansionScottish law firm HBJ Gateley Wareing has revealed a deal to takeover over specialist maritime practice Holmes Hardingham. The move will further bolster HBJ's position in the lucrative London shipping sector and will see Holmes Hardingham combined with shipping firm Shaw and Crot which HBJ took over last year. Senior partner at the Scottish firm, Malcolm McPherson commented: "This provides a significant opportunity to offer an integrated, high-quality legal service in shipping, aviation, road transport and logistics to meet the demands of our growing global client base."
(The Herald)Sepa staff vote for strikeStaff at the Scottish Environment Protection Agency have voted for industrial action in their continuing dispute with management over staff being given three months notice unless they accept new terms and conditions. Unison Scottish organiser John Keggie said: "This is a clear rejection of management's attacks on staff pay and conditions and we would hope that Sepa will see sense and withdraw their threats of imposition. We are always available for discussion with the employers, but staff are deeply frustrated and need more than words."
(BBC Scotland Online) Read all today's management news from scotsman.comPERSONAL FINANCELothian Pension Fund joins UN schemeThe Lothian Pension fund is the first to sign up the UN agreement on responsible investing which sees funds managed in an environmentally and socially conscientious manner. Chairman of the pensions and funds trusts committee at the £3 billion fund, Tim McKay commented: "This is a very positive move which is consistent with the policies of the fund. Our main aim always has to be investing employee and employer contributions in the best financial interests of members. However, this is a logical step forward given our views on responsible investment. We look forward to working with other signatories to the principles to improve decision making on matters that affect us all."
(BBC Scotland Online) Read all today's personal finance news from scotsman.com
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