ECONOMYInflation jumps againThe level of benchmark UK inflation surged to 4.4 per cent in July while the old retail prices index measure hit a 17 year high. However, the jump in inflation did little to encourage
city analysts that a cut in interest rates was on the horizon with most predicting the Bank of England's Monetary Policy Committee would hold it steady at 5 per cent. Ross Walker, UK economist at Royal Bank of Scotland, commented: "In terms of (monetary) policy, I never thought there was much chance of a hike (in base rates) and I still don't. Of course, they (the MPC) would have know these (inflation) numbers before the August decision. It may transpire in a week's time we had a five-four vote, but I think it will be another one-seven-one. I think what today's numbers mean is the chances of a cut this year have certainly receded. The peak (for inflation) probably isn't going to come until October. We won't get those numbers before the middle of November. They (the MPC) may want to play Santa Claus in December but I doubt it."
(The Herald) Read all today's economics news from scotsman.comENERGY & UTILITIESWeir to cash in on new nuclear plansWeir Group, which revealed a large rise in its first half turnover, is set to benefit from the Government's plans to build a new generation of nuclear power stations. The Glasgow-based engineering group's energy generation arm is lining up to get involved in the drive to create new stations. Chief executive Mark Selway said: "A number of governments are recognizing they either need to upgrade (nuclear] facilities, or build new facilities. Our customers are people like Areva and GE and we tend to be specified because of the specialist nature of the product we produce." The firm has already produced nuclear safety valves for a new factory in Massachusetts and for facilities in China, valves it provides through key nuclear sub-contractors including Areva and General Electric. Engineering analyst with Arbuthnot Securities, Michael Blogg commented: "Weir is picking up business outside the UK and one day, presumably, there will be business in the UK as well, if the Government gets its act together."
(The Scotsman) Read all today's energy and utilities news from scotsman.comPERSONAL FINANCEScots unaware of pension levelsResearch by Aegon UK has revealed that nearly four in ten Scots don't know how much income they will receive from their pension savings. The survey found that while 35 per cent of Scottish people between the age of 50 and 65 anticipate getting less than £10,000 a year from their pension savings, 39.6 per cent simply have no idea what their income will be. Scots tend to be less optimistic about retirement compared with their counterparts elsewhere in the UK, with a quarter seeing it as the start of old age as compared 11 per cent in the south-east of England – more than 10 per cent believe they will have no choice but to keep working beyond retirement. Head of pensions policy at Edinburgh-based Aegon, Rachel Vahey commented: "The best way to enjoy and plan for your retirement is to know what your expected income is. People receive yearly updates from their pension plans giving this information so it's easy to keep on top on this. In a way the level of retirement income isn't the most important aspect – it's making sure that people aren't surprised to find out how much they have to live on."
(The Scotsman) Read all today's personal finance news from scotsman.comRETAILOrtak reveals plans for two new storesOrtak, the jewellery maker and retailer, has revealed plans to open two new outlets as it defies the gloom currently stalking the high street. The two new branches, in Glasgow and Livingston, will take the Orkney firm's portfolio to 14 stores and reinforce its position as one of the largest employers on Orkney. The announcement of the expansion came as Ortak revealed a 9.8 increase in retail sales between January and July of this year, with the total hitting £3.15 million with profits up to £224,000 for 207. Retail director Yvonne Carr said: "We are always one step ahead of the competition when it comes to current trends as we design and create our products from our manufacturing base in Orkney. Largely a gift item, jewellery is weathering the current storm due to the importance of special occasions and we've noticed a strong increase in self-purchasing as, despite the current climate, customers continue to enjoy personal indulgences." Director of the Scottish Retail Consortium, Fiona Moriarty added: "Ortak is bucking all tends when it comes to retail growth , with every high street sector recording tougher times as the credit crunch bites. Ortak is a quintessential Scottish company which is flying the flag for retail not only in Scotland but also at a UK level."
(The Scotsman) Read all today's retail news from scotsman.comTECHNOLOGYMaxima shares upShares in Maxima Holdings, the IT company which was once part of Glasgow's Weir Group, have climbed on the back of a 24 per cent rise in full-year pre-tax profits. The group believe that the current economic turmoil will produce more opportunities for acquisitions which has bought 11 companies since it was listed on AIM in 2004. Chief executive Kelvin Harrison commented: "We continue to be confident that our high levels of recurring revenues from our large, diverse and stable client base will provide a foundation for continued growth and that we will accrue the expected benefits from recent acquisitions during the year."
(The Herald) Read all today's technology news from scotsman.comPROPERTYRok shifts focusBuilding and maintenance group Rok has revealed plans to close its commercial property division with the loss of 200 jobs despite unveiling a 22 per cent rise in first-half profits and a higher dividend. The firm, which owns Tulloch Homes in Inverness and the Pitkerro plumbing business, has taken the decision to shut its commercial property division after it recorded a £2.9 million loss in the same period the company as a whole booked profits of £12.4 million. Company chairman Stephen Pettit commented: "Rok's strategy remains unchanged but our business mix is evolving to focus on activities such as repairs, refurbishment and response maintenance which will produce higher margins in the economic environment, in which we expect to be operating in over the next few years. Our core building and maintenance operations have continued to perform strongly demonstrating that our strategy of locally delivered services on a national scale is a compelling proposition for our customers. The decision to close and make full provision for our development operation enables us to put the issues associated with it firmly behind us and gives us confidence that there will be no further adverse financial impact from this operation."
(The Herald)Scottish house prices up againHouse prices in Scotland continue to rise despite the slump elsewhere in the UK, according to a new survey from Lloyds TSB Scotland. The Scottish House Monitor revealed the average house price in Scotland was up 1.6 per cent to the end of July which would see a 9.3 per cent rise on an annual basis. However, the new figures also revealed that the number of house purchases north of the Border has fallen by 27 per cent on last year. Chief economist at Lloyds TSB Scotland, Professor Donald MacRae commented: "The price boom of the last five years may well have passed into history but so far the effect of its demise is to slow the number of transactions rather than cause a drop in prices. The Scottish housing market is demonstrating its traditional resilience in the face of an economic downturn."
(BBC Scotland Online) Read all today's property news from scotsman.com
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