BANKING & INSURANCETesco enters the high street banking frayTesco has concluded a £950 million deal to buy out Royal Bank of Scotland from the two companies' joint venture Tesco Personal Finance. The move is bein
g seen as a step towards the supermarket giant readying itself to take on the high street banks in the battle for consumer current accounts and insurance business. The group has announced it is now preparing to set-up its own full-service retail bank which will offer telecoms, internet shopping and other services as well as traditional banking. Tesco chief executive Sir Terry Leahy said: "With a renewed focus on growth in the UK and internationally we can unlock the true potential of Tesco's retailing services. Services are bigger and faster-growing than food. As consumers look to make every pound work harder, it's a good time for Tesco to expand its presence."
(The Scotsman)HBoS shares tumble on BBVA pull outSpanish bank BBVA has distanced itself from reports it was interested in making a takeover bid for HBoS and prompted a further fall in the troubled Edinburgh banking giant's share price. Shares finished 7.3 per cent down at 287.5p on the back of the comments from BBVA chief executive Jose Ignacio Goirigolzarri. He said: "We have clear and defined priorities and that hasn't changed. We are focused on generating organic results within the group and our priority is to keep on with the integration (of our four banks) in the United States."
(The Herald) Read all today's banking news from scotsman.comECONOMYTreasury bids to free mortgage logjamThe Treasury is due to make an announcement today explaining how it intends to revitalize the UK's struggling mortgage market. The announcement comes in response to a report from former HBoS chief executive Sir Jams Crosby which is expected to predict problems for lenders for years to come. It is believed Crosby will raise the possibility of a new liquidity scheme that will allow banks to swap new mortgage debts for government securities which they can then use to secure more funding as well as the introduction of a kitemark for mortgage securities in a bid to improve their credibility and boost confidence. The Treasury has confirmed it will make a statement on the issue despite the report only being the HBoS chief's interim findings.
(The Herald) Read all today's economics news from scotsman.comINDUSTRY
Swinney to meet on paper millFinance minister John Swinney has met with north-east Fife politicians over the potential closure of the Curtis Fine Papers mill. The mill near St Andrews has been forced into administration and with the closure bringing fierce criticism from Sir Ming Campbell and MSP Iain Smith who have accused the Scottish Government of not doing enough to respond to the potential loss of 260 jobs. Some 180 jobs have also gone at the Guardbridge plant after administrators KPMG stepped in after several unsuccessful attempts were made to sell the company. A spokesman for the Scottish Government responded to the criticism: "We are doing everything we can to help the staff at Curtis Fine and our main concern is to ensure that everything possible is done to assist those affected. Finance Secretary John Swinney will meet with local representatives today to see what more can be done. The Partnership Action for Continuing Employment initiative will provide those who have been made redundant with tailored help and support to enable them to access alternative employment opportunities."
(BBC Scotland Online) Read all today's industry news from scotsman.comMEDIA & LEISUREBeanscene in administrationGlasgow-based coffeeshop chain Beanscene has been placed in administration, it has been announced. Administrators KPMG are currently looking for a buyer for the business which currently operates 14 outlets across Scotland. KPMG have claimed the coffee chain found itself struggling after it built up an overhead base its 14 shops could no longer maintain and despite restructuring and new backers earlier in the year has failed to fight its way out of trouble. Joint administrator Blair Nimmo commented: "The opportunity now exists to acquire a strong brand name, based on quality coffee delivery in a relaxed ambience. We remain hopeful that we can find a buyer for the business and effect a quick sale of the company and its assets." Founder Gordon Richardson who left the board four months ago added: "I'm gutted to hear that Beanscene has gone into administration. A very passionate and talented team of people worked exceptionally hard, tirelessly, for nine years to create a truly unique brand with lasting appeal in a very competitive marketplace. I'm currently looking at options with a view to restructuring the Beanscene brand and business, my belief in which remains bulletproof."
(The Herald) Read all today's media and leisure news from scotsman.comRETAILPlanning consent handed to supermarket plan
A plan to build a new superstore on the site of a Stirling small business hub has been given a provisional greenlight by Stirling Council. The development on Stirling Enterprise Park would see a 3000 square metre store rise on the site currently occupied by small businesses. The application has been forwarded to Scottish Ministers by the local authority with the proviso that the businesses currently occupying the site would be given assistance to find a new base. The council's planning chair, Cllr Alasdair MacPherson said: "By taking this decision we have safeguarded the small businesses within STEP (Stirling Enterprise Park) as no development will take place until such times as these businesses are relocated in premises that best suit their needs. This is also an ideal opportunity to secure local jobs in both the construction phase and future routes into employment in the new retail development."
(BBC Scotland Online) Read all today's retail news from scotsman.comTECHNOLOGY
Thus wins green contractGlasgow telecommunications group Thus has clinched a £12 million contract to link 'green' data centres in Iceland with the rest of the world. The ScottishPower spin-off is currently embroiled in a takeover battle with Cable & Wireless which has already offered Thus shareholders 180p per share for the group. However, it is still seeking new business and announced the deal which will see it provide Farice which operates the high-speed cable network between Iceland and the UK with 200 gigabits per second of capacity. The cables are being installed in anticipation of Iceland's growth as centre for green data storage and server farms which are powered via geo-thermal and hydroelectric energy.
(The Scotsman)Wolfson must cut spending, claimAnalysts at Dresdner Kleinwort have warned Wolfson Microelectronics to cut its spending if it hopes to increase earnings per share. The warning came in a note published by the brokerage yesterday ahead of the Edinburgh group's interim results today. The analysts claimed that increasing sales would prove difficult after Wolfson lost its lucrative link with Apple and that the only surefire way to improve stock value would be to cut spending. It added that Wolfson does, however, 'remain a very attractive acquisition target at current levels with cash making up over 40 per cent of current market capitalisation.'
(The Scotsman) Read all today's technology news from scotsman.com
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