BANKING & INSURANCERBS consortium sells off Amro assetsThe consortium which bought up Dutch bank ABN Amro has sold off a number of the bank's private equity assets in a deal with Goldman Sachs. The consortium of
Royal Bank of Scotland, Fortis and Santander are believed to have realised €200 million from the deal which involves assets in companies in Scandinavia, Britain and the Netherlands. The cash from the sale will be split equally between the members of the consortium and will see RBS net in the region of £50 million. A spokesman for RBS said: "Fortis, RBS and Santander have sold a large portion of ABN Amro's private equity interest to a consortium led by Goldman Sachs."
(The Scotsman) Read all today's banking news from scotsman.comECONOMYMixed news on inflationThere was mixed news on inflation with official factory gate prices rising at their fastest rate since records began while producers' material and fuel costs fell unexpectedly in July. Office of National Statistics figures revealed manufacturers' output prices rose by 0.4 per cent in July to hit an annual inflation rate of 10.2 per cent. The huge leap in output prices was being blamed on soaring oil prices which eventually hit $147 a barrel before receding sharply. Paul Dales of Capital Economics commented: "Admittedly, producers' raw material costs are still rising at extremely rapid rates. But the recent sharp falls in oil, wholesale gas and food prices suggest that price pressure right at the start of the inflation pipeline may be close to a peak." Global Insight's Howard Archer added: "The Bank of England will probably be modestly relived overall with the July producer inflation data, but it is very far from out of the inflation woods yet."
(The Herald) Meanwhile, there was some optimism as material and fuel costs continued to fall after peaking in July. The ONS producers' input index revealed material and fuel costs fell by a seasonally adjusted 0.6 per cent between June and July, marking the biggest drop since January 2007. Paul Dales said: "While pipeline price pressures on the UK remain very strong, there is some tentative evidence that they may be close to a peak. Producers are clearly raising their selling prices at rates much faster than those consistent with the 2 per cent CPI (annual consumer prices index) inflation target in the long run. However, there was some evidence that the relentless rise in cost pressures seen over the last year may be coming to an end. For the first time (since August 2007), producers' raw material costs fell in July." He added: "The sharp falls in oil, gas and wholesale food prices seen in recent weeks suggest that price pressures right at the start of the inflation pipeline may be close to a peak. So while the MPC will remain on guard for signs that the sharp rises in pipeline price pressures seen over the last year are feeding through into inflation on the high street for some months yet, there does at last seem to be some light emerging at the end of the inflation tunnel."
(The Herald) Read all today's economics news from scotsman.comINDUSTRYParsons Peebles wins Babcock contractRosyth firm Parsons Peebles Generations has been awarded a £1.5 million contract by Babcock Marine linked to Babcock's major aircraft carrier contract. The firm which produces bespoke motors and generators expects the news contract, as well as £2.2 million in orders from two major US energy groups, to safeguard the jobs of its 40 strong workforce. Managing director William Paterson commented: "We have invested heavily in the company in terms of equipment and IT infrastructure which has seen the business return to a healthy position by offering bespoke products to the global market."
(The Herald) Read all today's industry news from scotsman.comMANAGEMENTDawson nets £1.7 million from Dorma saleKinross textile company Dawson International has completed the £5 million sale of luxury linen company Dorma to Dunelm. The loss making company has been sold as the textile firm attempts to reduce its debt with the sale expected to realise a net gain of £1.7 million. Chief executive Andy Bartness said Dorma had continued to lose money despite an improvement in trading 'reflecting a decline in some of its traditional markets such as mail order and independent retailers.' He added: "This transaction enables us to focus on the growth area of the business and generates cash both through the net consideration for the brand the liquidation of working capital."
(The Scotsman) Read all today's management news from scotsman.comRETAILStart up funding for recycling schemeFinanciers have agreed to back a Scottish chemicals industry veteran in his bid to cash in on retailers' need to boost their green image. Anton Davis has secured £450,000 in funding from the Highland Venture Capital business angel network and the Scottish Coinvestment fund as he aims to produce a new green film from a plant in East Kilbride. Ecopet Extrusion will be the first Scottish business to recycle Polyethylene Terephthalate bottles to produce food grade film and sheeting. The company is expected to have 13 employees when manufacturing begins later this month.
(The Herald)Retail sales still slidingThe British Retail Consortium has revealed that high streets sales are still on the slide after sales in July failed to beat the weather-hit performance of last year. Sales were down 0.9 per cent on a like-for-like basis with the previous year and have now fallen in four of the past five months. Trading in the same period last year was hit by torrential rain with July one of the worst sales months of the year, however, the continuing inflationary pressures and economic chaos have had more of an effect than monsoon conditions. Director general of the BRC, Stephen Robertson commented: "Frivolous shopping is off the agenda as most customers concentrate on value and durability and there are few signs the slowdown has yet bottomed out."
(The Scotsman) Read all today's retail news from scotsman.comPROPERTYBuilders welcome hedge fund buy upShares in battered Barratt Developments have surged by some 34 per cent after Boston-based hedge fund Polaris Capital Management had stepped in to buy up a significant tranche of shares. Barratt had led the downturn in the value of housing developers when it was heavily shorted by hedge funds but the new bid which takes the Boston-based fund's holding up to a 6 per cent threshold has renewed optimism in the sector. The move by Polaris is being taken as an indication that more funds believe the sector to be undervalued and ripe for investment. Portfolio manager at Polaris, Bernard Horn, was quoted earlier this week saying the risk of bankruptcy at Barratt was 'extremely low' and that 'hysteria and panic have overtaken calm analysis of the valuations of UK house builders'.
(The Scotsman)Greenlight for Hawick developmentA plan to build 10 new flats in the centre of Hawick has been given the go ahead despite local concerns the development will overlook the town's 1514 monument. Scottish Borders Council's planning department recommended the scheme for approval and councillors gave the green light to the project which will transform the Hawick Sport and Social Club.
(BBC Scotland Online) Read all today's property news from scotsman.com
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