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ECONOMYInflation fears spike rate cutA surge in benchmark inflation from 2.5 per cent to 3.0 per cent in April has increased concerns over the UK economy and decreases the likelihood of a further cut in the inter
est base rate. The pound could reasonably have been expected to have risen on the back of the inflation spike; however cumulative concerns over the fate of the UK economy saw it fall. UK economist at consultancy Capital Economics Paul Dales commented: "This could be the first sign that retailers are starting to pass on the rise in costs seen towards the start of the inflation pipeline over the last year. Looking ahead, it now looks likely that CPI inflation will rise to 3.1 per cent in May, triggering a letter from the Bank Governor to the Chancellor. And it could yet rise some way further thereafter. Eventually, and once energy effects fade, we think that the consumer slowdown will force retailers to absorb higher costs in their margins, resulting in a sharp fall in inflation. This will allow the MPC to cut rates sharply. But in the meantime rates will continue to fall rather slowly – June no longer looks like such a done deal – exacerbating the economic slowdown."
(The Herald) Read all today's economics news from scotsman.comINDUSTRYBabcock unveils 50 per cent profits hikeRosyth dockyard owner Babcock International has seen its profits rise by more than 50 per cent, booking profits of some £95.5 million. The defence and engineering group, which is currently upgrading the Fife dockyard, also runs the Faslane naval base and recently acquired Plymouth's Devonport facility. Babcock is expected to be handed a hefty slice of the contract to build the UK's two new aircraft carriers and is awaiting the final announcement of the contract details.
(The Scotsman)Peri-dent plans job cutsDental floss maker Peri-dent has revealed plans for up to 60 job cuts at its plant in Tweedbank. The Borders facility is under threat after a complete review of the European firm's operations – currently the oral care product manufacturer employs 220 staff at its Scottish plant.
(BBC Scotland Online) Read all today's industry news from scotsman.comMANAGEMENTSick leave costing £1.6 billionNew figures from the Confederation of British Industry claim that almost one absence from work in ten is taken without a legitimate reason and cost the UK economy some £1.6 billion. The survey by the business group also revealed that those employed in the public sector took an average of nine days off sick per year while those working in the private sector took only 5.8. The CBI's report claimed that if public sector workers matched their private colleagues the UK economy would save £1.4 billion. Assistant director of CBI Scotland David Lonsdale explained: "The CBI's absence survey reveals that a third of employers consider special events such as major football games to be a likely cause of unwarranted absence. Employers do not want genuinely ill staff dragging themselves into work when they should be recovering. However, it is hugely unfair on colleagues when people who are fit enough to work phone in sick and award themselves an extra day's leave." Deputy general of STUC, Dave Moxon responded: "There is no comparison in the report between sickness absence in the UK and amongst our UK competitors. If there had been it would show that the UK's performance, particularly in relation to short-term absence, is strong. Time and again the CBI return to the old chestnut of sickness absence being more pronounced in the public sector. A more careful look at the figures reveals that the public sector performs well on short-term absences but is less likely to take pre-emptive action to terminate the employment of someone who is longer-term sick."
(The Scotsman) Read all today's management news from scotsman.comRETAILHunter gains backing in Dobbies fightSir Tom Hunter is being backed by Mackays Stores owner Iain McGeoch in his court dispute with Tesco and Dobbies garden centres. Scotland's richest man is attempting to block Dobbies' plans to launch a £150 million share issue which will severely dilute the entrepreneur's holding in the retail chain. McGeoch has filed an affidavit in relation to the case and the Herald has claimed the testimony has been filed in support of Hunter in his battle with Tesco, the supermarket giant which owns the garden group. A spokesman for McGeoch said: "I can confirm that Iain McGeoch has submitted an affidavit in this case."
(The Herald) Read all today's retail news from scotsman.comTECHNOLOGYMED bullishEdinburgh technology firm MicroEmissive Displays has issued a profits warning after it admitted that monthly profitability, which it had predicted for later this year, would not now kick in until next year. The maker of the world's smallest television screens saw half the value of the company wiped off as its shares plunged to a record low of 12.25p on the back of the announcement. Chief executive Bill Miller defended his firm: "We have done what we always said we would do, albeit slightly later than we thought. I think we're being overly punished (by the market). Last year we shipped about 5000 units, this year we've shipped 100,000 units already and we're growing quarter by quarter. That's not a business or technology that is dying or has nowhere to go. Quite the opposite... the order book is growing and there is definitely demand."
(The Scotsman)Ardana in the mireDrug development firm Ardana is continuing to flounder as a spokeswoman admitted the company could run out of money by July. The company was placed up for sale in February and the spokeswoman said directors remained confident that they would be able to sell the firm or its products before the cash ran out completely. The group has claimed to be in negotiation with several interested parties; however, it has refused to give details on the potential suitors or the deals being offered.
(The Herald) Read all today's technology news from scotsman.comPROPERTYHousing association snaps up Peter Pan houseMoat Brae, the Dumfries house said to have inspired Peter Pan creator JM Barrie, has been sold to the Loreburn Housing Association. The association plans to commemorate the building's history in any development of the riverside property. LHA chief executive officer Ahsan Khan said: "It's great news that Loreburn has been able to secure this important building for the town. We would like to preserve as much of the garden as possible because that is the real link with JM Barrie. I would also like to see some sort of link to Peter Pan – a visitor centre or something like that."
(BBC Scotland Online) Read all today's property news from scotsman.com
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