BANKING & INSURANCE
Santander rules out HBoS bidAbbey National owner Santander has ruled itself out of making a takeover bid for HBoS just days after Spanish rival BBVA had made a similar statement. Shares in the Edinburgh banking
giant fell on the back of the news, ending 5.1 per cent down on 272.75p after falling more than 7 per cent on Monday when BBVA said it was no longer interested. Santander is currently bidding to complete a deal for Alliance & Leicester and seemed reluctant to embroil itself in another takeover saga. Santander chief executive Alfredo Saenz said: "We are not interested in HBoS. We have what we want (in the UK). We are very happy with Abbey and Alliance & Leicester fits into that well. If the offer (for Alliance & Leicester) is successful, we will be facing an integration period ahead."
(The Herald) Read all today's banking news from scotsman.comE-BUSINESS
Iomart bids to be back in blackGlasgow interent services firm Iomart has fallen into the red on the back of a slump in revenues. However, the company has issued a rallying cry, claiming it is on the lookout for acquisitions as it bids to shift the focus of its business. The firm has recently disposed of its internet directory search business Ufindus in a £20 million deal with BT and it set to concentrate on the data centre and managed hosting services end of the business. The latest set of accounts revealed a £175,000 pre-tax loss for the year to the end of March compared to a £218,000 pre-tax profit in the previous year, but chief executive Angus MacSween described the fall as 'a planned loss' and predicted a return to the black for next year. He added: "We made a loss because of £3 million in start-up costs associated with the four data centres we acquired last year. We are now in a very strong position and our shareholders are very pleased. Generally, we are also very pleased."
(The Herald) Read all today's ebusiness news from scotsman.comECONOMY
Recession fears fuelled by retail sales dataA new CBI survey has revealed the level of retail sales in the UK fell at their fastest rate since comparable records began in 1983, sparking more fears the economy is heading inexorably for recession. The concerns were heightened by new data showing the level of fresh mortgage approvals had hit yet another all time low. In the CBI survey, 61 per cent of UK retailers said their sales in the first half of July had fallen on the previous. Chief UK economist at Global Insight, Howard Archer commented on the figures: "The extremely weak CBI survey heightens concern that the UK economy could contract in the third quarter and significantly bolsters the case for the Bank of England to hold off from raising interest rates despite current elevate inflation levels and risks. Indeed, it very much boosts the case for the next move in interest rate to be down. However, the Bank of England will almost certainly want to see clear evidence that markedly weaker consumer spending it under-mining companies' pricing power before cutting interest rates. The Bank of England is likely to be influenced by the weakness of the CBI report as it has recently attached significant importance to the survey evidence on retail sales given doubts about the reliability of the hard (official) retail sales data."
(The Herald) Read all today's economics news from scotsman.comENERGY & UTILITIES
Jobs promise at wind firmNatural Power, the southern Scotland wind power generator, is set to create 50 new jobs with the opening of its new office space in Dalry. First Minister Alex Salmond was on hand to officially open the new office and announce a £22 million investment in nine new turbines at the Crystal Rig development near Dunbar. The First Minister said: "I am delighted that Natural Power is growing as a company and growing in Scotland. It is hugely important to the rural economy of the south west of Scotland that such companies have their headquarters in places like Dalry. I wish both Natural Power and Crystal Rig a long and prosperous future in renewable energy in Scotland."
(BBC Scotland Online) Read all today's energy and utilities news from scotsman.comMEDIA & LEISURE
Profits up as Macdonald warns of cost-cuttingScotland's largest private hotel operator, Macdonald Hotels has posted a steady rise in full year sales and profits but has warned that it must look at further cost-cutting as it anticipates a 'sustained period of very difficult trading'. Despite an 11 per cent increase in operating profits, the firm which runs nearly 50 four and five star hotels and resorts across the UK and Spain revealed the continuing credit crunch had taken its toll on growth. Deputy chief executive Gordon Fraser commented: "We are very encouraged with the underlying results and the impact of the hotels disposal on the company. This year, our growth rate is slower but turnover is still up 3 per cent and operating profit up 6 per cent on a like-for-like basis." He added: "We are managing to grow sales but we have to look at our cost base as well. Wastage and inefficiency can creep into any business. We are looking at things on a hotel-by-hotel basis. A hotel like Holyrood is impacted very much by the level of business it gets from the financial sector, particularly the two major banks in Edinburgh, and there's a feed from that into hotels like Inchrya and Houston House. I think we've felt the impact of the credit crunch more in Scotland than England."
(The Scotsman) Read all today's media and leisure news from scotsman.comTECHNOLOGY
Wolfson face job cutsMicroelectronics firm Wolfson is set to cut jobs at its Edinburgh headquarters as it struggles against the ever increasing economic headwinds. The firm is facing a major loss after its largest customer, Apple, decided to use a rival producer's chips in its next generation of iPods and iPhones. Now chief executive Dave Shrigley has warned the company is being forced to tighten 'the belt a notch' as it predicted thirds quarter revenues would be at least $4 million below predictions. Shrigley said: "The economic uncertainty has increased as we've gone through the year and so we've taken a more cautious." The chief exec has referred to quantify the number of jobs that will go at the former Edinburgh University spin out, saying only a 'relatively moderate' number would go. He added: "The way I'm describing this is tightening the belt by a notch; this is not a major heaving away of capability or a fundamental restructuring of the company. We believe there's a very big, very exciting market out there. We're going through uncertain times but the company is fundamentally well positioned."
(The Scotsman)KeyPoint raises £4 million for marketingGlasgow software company KeyPoint Technologies has raised some £4 million in second round funding as it bids to market an innovative multi-lingual predictive software package. The group has revealed the first smartphones using its Adaptxt system will be unveiled in the Autumn though the company has refused to name the handset manufacturer set to incorporate the technology in its phones. Speaking of the funding, chairman Peter Waller said: "It will allow us to take the product forward and allow us to beef up the marketing and sales part of business and fulfil our initial contract. There is quite a long time between signing a contract with these organisations and getting these products into the market. It's a fairly cash intensive business. So we have to design, develop, modify and get it to the client. We don't get paid a substantial amount of money until those clients release it in the market."
(The Scotsman) Read all today's technology news from scotsman.com
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