BANKING & INSURANCERBS to cut jobsRoyal Bank of Scotland is in the process of drawing up plans to slash jobs across its global banking network. The Edinburgh financial giant said the thousands of expected cuts we
re 'unfortunate, but inevitable' and resulted from 'integration synergies' following the £56 billion take over of Dutch bank ABN Amro and the increasingly serious effects of the global credit crunch. So far there are believed to be no plans to cut jobs in either the RBS or NatWest retail operations but cuts are likely to hit the wholesale banking sector of the bank which is also planning a £12 billion rights issue to bolster its balance sheet. A spokeswoman for RBS said: "Since the acquisition of ABN, we have consistently said that, as we brought our two wholesale banking businesses together, there would be job losses over the course of the next two years. This is unfortunate, but inevitable. In light of current conditions in some parts of the global credit markets, we are also looking at the appropriate size of our businesses affected by this downturn."
(The Scotsman)HBoS to follow RBS in rights issueHalifax Bank of Scotland is today expected to tell shareholders it will be following the lead of Edinburgh rival RBS and launching a fund raising rights issue. City traders are confidently predicting the announcement of a £4 billion rights issue as well as the write-off of up to £3 billion in assets affected by the global credit crunch. However, a number of analysts have called for the bank to resist the temptation of a rights issues which they see as a dilutive quick fix, the naysayers would rather see chief executive Andy Hornby announce a suspension of dividends arguing that even severe writedowns will see the bank enjoying better capital ratios than RBS. Resolution Asset Management fund manager Ralph Brook-Fox commented: "Even once you take into account the diluting effect of the rights issue it is going to leave the stock looking cheap."
(The Herald) Read all today's banking news from scotsman.comENERGY & UTILITIESGrangemouth strike overWorkers have returned to the Grangemouth oil refinery following the 48 hour strike which many feared could lead to crippling fuel shortages across Scotland. Though the workforce has now returned, it is thought the stoppage could lead to a delay of up to seven days before the vital plant returns to full operation. Meanwhile, union Unite has refused to rule out further action over the pensions dispute at the Ineos plant. Business secretary John Hutton is no due to visit the site in a bid to mediate in the dispute. Speaking before the visit he commented: "This strike has caused disruption and inconvenience to the public and it has cost the economy dear. It is no accident that Scotland has managed to continue about its business. Praise is in order for the many people and organisations who have acted responsibly and worked to minimize disruption. Now is the time for Ineos and Unite to get back to the negotiating table. This is what I will be saying at my meeting and ACAS stands ready. This is where the dispute must end."
(BBC Scotland Online) Read all today's energy and utilities news from scotsman.comFOOD, DRINK & AGRICULTUREEnd of the road for S&NScottish & Newcastle has ceased to exist from today after the long-running takeover by Heineken/Carlsberg was completed. The former brewing giant's last remaining brewery, Caledonian, will now pass into Dutch hands after S&N completed a takeover of the Deuchars makers just weeks before the formal takeover by the foreign consortium. Shares in S&N were delisted from the Stock Exchange in London as of 8am this morning.
(The Scotsman)Pay cut for Irn Bru chairmanRobin Barr, the chairman of Irn Bru makers AG Barr, has seen his pay cut by 14 per cent despite the soft drink giant weathering last year's appalling summer. The company recorded an 11.4 per cent increase in underlying profits last year and, indeed, the majority of the group's board enjoyed pay rises according to the group's annual report.
(The Herald) Read all today's food, drink and agriculture news from scotsman.comTRANSPORTStagecoach toasts figures with eco-bus orderPerth-based bus operator has revealed an order for 220 new buses which meet the new Euro 5 emission standards. The order, which is being made ahead of the introduction of the new standards in September 2009, comes as the transport group unveiled a trading statement showing expected earnings per share for the year to April will stand at 'around 20p'. Shares in the group were up 12.4 per cent to 248.75p on the back of the confident statement. Stagecoach claims to have seen no impact from the economic slowdown hitting the markets and said increased fuel costs are actually helping to increase the number of customers seeking their services. A spokesman commented: "What we are seeing is some of the current economic factors, such as fuel costs, are making people reconsider their transport decisions, in particular or commuting. That, combined with congestion and an increasing awareness of environmental issues, has resulted in more people switching from car to public transport."
(The Scotsman)£8 million upgrade for clockwork orangeThe Glasgow subway system is set to a £8 million overhaul which will be used to improve customer safety, upgrade facilities and give many of the stations an aesthetic facelift. The announcement comes as Strathclyde Partnership for Transport revealed a rise in the number of passenger journeys to the end of March 2008 of more than a million – passenger numbers are now up to 14.5 million. The recently announced improvements are part of an overall modernisation programme which will also see more than £2.5 million invested in digital radio systems for the trains to allow improved communications between staff and emergency services. SPT director of subway operations David Wallace commented: "We are constantly making improvements to the subway. We can't provide an overnight change but we've started the modernisation process and step by step we'll provide passengers with a better journey experience more in tune with 21st century standards."
(BBC Scotland Online) Read all today's transport news from scotsman.com
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