News and Analysis

  • RBS to axe 3,500 more jobs
    Thursday, 2nd September 2010
    BANKING
    JOHN DUNNE
    THE Royal Bank of Scotland is planning to axe 3,500 jobs from its technical and back office division. RBS has told staff that up to 12 offices could close in England, while Scotland will also be badly hit. A third of the job losses are as a result of RBS selling 318 of its branches to Santander. RBS announced about 4,000 job cuts last year as it it tries to restructure its beleaguered business. RBS had been told by the European Commission to reduce its number of branches in order to safeguard competition concerns after it was bailed out by the UK government. The jobs to be slashed include 1,... [Read more]

  • Probe launched into energy companies' "mis-selling"
    Thursday, 2nd September 2010
    ENERGY
    HARRY BANKS
    Energy regulator Ofgem is launching an investigation into whether four of the big gas and power suppliers are mis-selling products to customers. Ofgem's probe will determine if EDF Energy, RWE Npower... [Read more]
  • Construction sector growth falters
    Thursday, 2nd September 2010
    CONSTRUCTION
    HARRY BANKS
    Growth in the country's construction sector slowed markedly in August led by a loss of momentum in residential construction, according to a survey. The Markit/Chartered Institute of Purchasing and... [Read more]
  • McBride profit up despite raw materials price hike
    Thursday, 2nd September 2010
    CONSUMER
    HARRY BANKS
    McBride, Europe's biggest maker of retailer own-brand household and personal care goods, said it faced rising raw material costs and weak retail markets as it met forecasts with a 38 per cent rise in... [Read more]

  • Recruiter Hays sees profit dive by 80pc
    Thursday, 2nd September 2010
    ECONOMY
    HARRY BANKS
    Recruiter Hays posted an 80 per cent drop in full year pre-tax profit, hit by tough trading conditions in the first half. Hays, which places people in white collar jobs, said it made a pre-tax profit... [Read more]
  • House prices drop for second month
    Thursday, 2nd September 2010
    UK ECONOMY
    JOHN DUNNE
    House prices fell for the second month in a row in August, according to the Nationwide building society. Prices dropped 0.9 per cent last month, following a 0.5 per cent fall decline in July. It is... [Read more]
  • DSG on track after iPad and world cup sales boost
    Thursday, 2nd September 2010
    RETAIL
    JOHN DUNNE
    Electricals retailer DSG International said its total group sales were up three per cent after a boost from Word Cup TV sales and the success of the iPad. In an update on trading for the 12 weeks... [Read more]
  • TV wars loom as Apple takes aim
    Thursday, 2nd September 2010
    TECHNOLOGY
    STEVE DINNEEN
    Apple last night launched a revamped on-demand TV service it hopes will help it smash into the online rental market. Apple TV allows users to rent episodes of hit US shows like Glee for as little as... [Read more]
  • Surprise output rise aids stocks
    Thursday, 2nd September 2010
    ECONOMY
    KATIE HOPE
    AN UNEXPECTED surge in manufacturing growth in two of the world’s largest economies yesterday soothed fears over the prospects for the global economy. The closely watched gauge of activity in US... [Read more]
  • Blair: I freed central bank
    Thursday, 2nd September 2010
    POLITICS
    OLIVER SHAH
    FORMER Prime Minister Tony Blair claimed it was his decision to hand independence to the Bank of England in 1997 and said he set “the broad framework of the economy” during his decade in power. The... [Read more]
  • The UK’s fate: Neither boom nor bust
    Thursday, 2nd September 2010
    EDITOR’S LETTER
    ALLISTER HEATH
    Allister Heath
    A PAINFUL, extended soft patch, not a disastrous hard landing: that was the message from yesterday’s batch of global economic indicators. The US manufacturing survey improved in August, spectacularly... [Read more]
  • Hague’s adviser resigns
    Thursday, 2nd September 2010
    POLITICS
    OLIVER SHAH
    FOREIGN secretary William Hague’s special adviser resigned yesterday because of “untrue and malicious” allegations about the nature of the two men’s relationship. Hague denied suggestions Christopher... [Read more]
  • Darling admits bonus supertax failed to work
    Thursday, 2nd September 2010
    BANKING
    FORMER chancellor Alistair Darling admitted yesterday that his controversial super-tax on bankers’ bonuses failed to change the industry. The Labour MP said banks had sidestepped the 50 per cent tax... [Read more]
  • WHAT THE OTHER PAPERS SAY THIS MORNING
    Thursday, 2nd September 2010
    FINANCIAL TIMES MEAT PRICE SURGE FUELS FEARS OF FOOD INFLATION Global meat prices have hit a 20-year high as robust demand from emerging countries has coincided with a drop in production by... [Read more]
  • Tesco eyes Carrefour’s Asian assets
    Thursday, 2nd September 2010
    RETAIL
    JOHN DUNNE
    TESCO is one of at least ten bidders circling for the Asian assets of French retail giant Carrefour. The Thai, Malaysian and Singaporean operations owned by Carrefour are being offloaded – offering... [Read more]
  • JPMorgan winds down prop trading to meet Volcker rule
    Thursday, 2nd September 2010
    BANKING
    OLIVER SHAH
    WALL STREET titan JPMorgan Chase has told 20 London-based traders their jobs are at risk after deciding to wind down its global commodities proprietary trading business. JPMorgan is the latest... [Read more]
  • Jimmy Choo considers float
    Thursday, 2nd September 2010
    CONSUMER
    LUXURY fashion brand Jimmy Choo is considering a flotation as early this year, as private equity owner Towerbrook mulls the retailer’s future. Recent reports have named Goldman Sachs and Morgan... [Read more]
  • Burger King in talks with 3G
    Thursday, 2nd September 2010
    M&A
    FAST FOOD chain Burger King is in advanced talks with 3G Capital over a sale that could see the company move back into private hands. News of the ongoing discussions with the New York-based... [Read more]
  • Giant predicts property pain
    Thursday, 2nd September 2010
    INVESTMENT
    OLIVER SHAH
    HOUSE prices could crash by up to 20 per cent as interest rates rise, the outgoing head of Britain’s largest retail stockbroker warned yesterday. Peter Hargreaves, who steps down as chief executive... [Read more]
  • Hargreaves’ future is out of its control
    Thursday, 2nd September 2010
    BOTTOM LINE
    KATIE HOPE
    Bottom Line
    HARGREAVES’ fortunes are inextricably linked to that of the wider share market. The FTSE 100 rose almost 20 per cent from 1 July 2009 to 30 June this year, after being down by more than a third from... [Read more]
  • Fuld slams Fed for not saving Lehman
    Thursday, 2nd September 2010
    BANKING
    MARION DAKERS
    THE FORMER chief executive of Lehman Brothers blamed the Federal Reserve for the collapse of the notorious Wall Street bank last night, arguing that the Fed withheld vital funds in the run-up to its... [Read more]
  • Lloyds equity arm snaps up Mountain Warehouse
    Thursday, 2nd September 2010
    M&A
    MARION DAKERS
    LLOYDS Banking Group’s private equity arm has bought a 20 to 25 per cent stake in outdoor retailer Mountain Warehouse in a deal valuing the firm at £50m. Lloyds Development Capital (LDC) announced... [Read more]
  • MARKETING CAMPAIGN OF THE YEAR |
    Thursday, 2nd September 2010
    MORE than ever, in this competitive world, it’s all about brand-building at the moment. Our shortlist have all carved out a niche for themselves in the past 12 months, whether it was negotiating a... [Read more]
  • TRADER OF THE YEAR | The Shortlist Day 3
    Thursday, 2nd September 2010
    AT the top of the tree, trading is all about talent. There’s an abundance of it ?on our shortlist, added to a good deal of nerve and nous. Our top five between them manage billions and have made huge... [Read more]
  • UK factories’ activity slows
    Thursday, 2nd September 2010
    UK ECONOMY
    JESSICA MEAD
    BRITAIN’S manufacturing recovery appeared to be running out of steam in August as the boost from restocking faded and austerity measures raise concerns of subdued growth prospects, a leading market... [Read more]
  • World trade picks up again as economy begins to recover
    Thursday, 2nd September 2010
    ECONOMY
    MARION DAKERS
    WORLD trade continued to rebound strongly in the first half of this year, rising by over a quarter from year-ago levels, with emerging economies showing particularly powerful export growth, World... [Read more]
  • ECONOMIST VIEWS: DOES THE PMI POINT TO FURTHER WEAKNESS?
    Thursday, 2nd September 2010
    Jessica Mead
    AZAD ZANGANA | SCHRODERS The survey supports our view that GDP growth is likely to slow significantly in the second half of the year. The boost from the inventory cycle tends to be very short-lived,... [Read more]
  • EU braced for short-selling crackdown
    Thursday, 2nd September 2010
    FINANCIAL MARKETS
    HARRY BANKS
    EUROPEAN Union regulators would be able to ban abusive short selling of shares and naked selling of credit default swaps and sovereign debt for three months or more under a draft EU law seen by... [Read more]
  • TUI to consider buying the rest of its UK tour operator
    Thursday, 2nd September 2010
    LEISURE
    MARION DAKERS
    EUROPE’S biggest tour operator TUI is considering buying the remaining shares in British unit TUI Travel to refocus on tourism. The German group’s supervisory board is set to discuss next week... [Read more]
  • CBI: Service sector sees a slump in profitability
    Thursday, 2nd September 2010
    UK ECONOMY
    PROFITABILITY in Britain’s service sector unexpectedly fell last month and firms expect no end to the current gloom engulfing the sector, the CBI will reveal today. A net 14 per cent of consumer... [Read more]
  • City veteran to help troubled Gartmore
    Thursday, 2nd September 2010
    FUND MANAGEMENT
    OLIVER SHAH
    EMBATTLED fund manager Gartmore hired industry veteran Robert Kyprianou as a non-executive director yesterday as rumours swirled of a sell-off by its largest shareholder. Kyprianou, whose CV includes... [Read more]
  • Man United misses season ticket sales target after boycott
    Thursday, 2nd September 2010
    SPORT FINANCE
    SPORT FINANCE
    MANCHESTER United failed to reach their target for season ticket sales this summer, after a campaign by a fans’ group to boycott the tickets. The club’s chief executive David Gill said it has sold... [Read more]
  • Johnson Service Group shares surge as work wear business performs well
    Thursday, 2nd September 2010
    SUPPORT SERVICES
    laundry firm Johnson Service Group yesterday reported a 17 per cent increase in first half pre-tax profit yesterday benefiting from a strong performance from its work wear rental business. The... [Read more]
  • China is set to probe BHP’s bid for Potash Corp
    Thursday, 2nd September 2010
    MINING
    CHINA plans to launch an antimonopoly probe into BHP Billiton’s $39bn (£25.2bn) bid for Canada’s Potash Corp. The probe is another indicator that China, as the world’s biggest importer of... [Read more]
  • Delisting plan hits Accident Exchange hard
    Thursday, 2nd September 2010
    AUTOMOTIVE
    HARRY BANKS
    SHAREHOLDERS in Accident Exchange Group face significant dilution as the vehicle replacement firm nears a refinancing deal with its senior lender and plans a conversion of its unsecured notes. The... [Read more]
  • GE talks up $30bn war chest
    Thursday, 2nd September 2010
    INDUSTRIAL
    HARRY BANKS
    GENERAL?ELECTRIC could spend up to $30bn (£19bn) on acquisitions over the next two to three years while continuing to raise its dividend and buy back shares, a top official said yesterday. But John... [Read more]
  • Standard Bank poaches head of retail at Shinsei
    Thursday, 2nd September 2010
    BANKING
    SOUTH AFRICA’S Standard Bank has hired the former head of retail banking at Japan’s Shinsei Bank, the second high-profile banker to join the company in recent weeks to support expansion plans.... [Read more]
  • Man gets go-ahead to acquire GLG
    Thursday, 2nd September 2010
    HEDGE FUNDS
    MAN GROUP shareholders have given its recommended takeover of GLG Partners the green light, and the firm yesterday appointed GLG’s Emmanuel Roman as chief operating officer for the enlarged group.... [Read more]
  • BP sells assets in Malaysia to pay for US spill
    Thursday, 2nd September 2010
    BP IN CRISIS
    EMMA SADOWSKI
    BP HAS sold its Malaysian ethylene and polyethylene assets to Petroliam Nasional Berhad (Petronas) for $363m (£234.8m) to help foot the bill for the Gulf of Mexico oil spill, the worst environmental... [Read more]
  • China’s Fortune Oil buys into LNG rival Everthriving Energy
    Thursday, 2nd September 2010
    OIL
    EMMA SADOWSKI
    FORTUNE OIL has struck up an agreement with Everthriving Investment to acquire 65 per cent of the share capital in three of the Chinese company’s subsidiaries. Under the agreement, Fortune Oil will... [Read more]
  • SEC settles insider trading case for more than $17m
    Thursday, 2nd September 2010
    ENFORCEMENT
    THE US Securities and Exchange Commission has accepted more than $17m (£11m) from two men to settle federal insider trading charges related to the takeover of biotechnology company MedImmune. Stephen... [Read more]
  • Standard Life cuts costs with 500 job losses
    Thursday, 2nd September 2010
    INSURANCE
    INSURANCE giant Standard Life said yesterday it would cut around 500 jobs between now and the end of 2011. The Edinburgh-based insurance and pensions group has entered a 90-day consultation period... [Read more]
  • Pace secures loans to snap up 2Wire
    Thursday, 2nd September 2010
    TECHNOLOGY
    STEVE DINNEEN
    PACE, the world’s largest set-top box maker, has agreed loans of $450m (£291.1m) to fund its acquisition of US broadband technology firm 2Wire. A $300m term loan and $150m of revolving credit were... [Read more]
  • Vivendi rises after improving profit forecasts and reassuring over buys
    Thursday, 2nd September 2010
    MEDIA
    STEVE DINNEEN
    Vivendi, Europe’s largest telecom and entertainment group, yesterday raised its profit targets on the back of forecast-beating first-half results. The firm also reassured investors on its acquisition... [Read more]
  • Age of austerity set to boost contract work for Mouchel as local authorities seek to outsource
    Thursday, 2nd September 2010
    SUPPORT SERVICES
    OUTSOURCING firm Mouchel said yesterday the outlook for its businesses was improving as the UK government starts to farm out work to cut costs. “The medium and longer term outlook is becoming... [Read more]
  • Google and Skype face India woes
    Thursday, 2nd September 2010
    TELECOMS
    India yesterday launched a clampdown on major internet communications firms, including Google and Skype, and began accessing some BlackBerry traffic in a campaign driven by security fears. Home... [Read more]
  • CITYJET TAKES ON NEW CHIEF EXECUTIVE
    Thursday, 2nd September 2010
    DUBLIN-BASED airline CityJet has hired Christine Ourmieres as its chief executive, following Geoffrey O’Byrne White’s departure last month after 10 years at the company. Ourmieres joins from Air... [Read more]
  • Vertu drives foward aftersales surge
    Thursday, 2nd September 2010
    CONSUMER
    JOHN DUNNE
    CAR dealership Vertu Motors yesterday said it expected to hit forecasts after a surge in sales of new and used cars. The group has seen a 6.7 per cent jump in like-for-like sales volumes of new cars... [Read more]
  • Loss for Borders as sales drop again
    Thursday, 2nd September 2010
    RETAIL
    Borders yesterday reported a quarterly loss as the second-largest US book store chain cut prices and continued to grapple with lower sales amid a shift to electronic books. Like its larger bricks-and... [Read more]
  • BEST OF THE BROKERS
    Thursday, 2nd September 2010
    Best of the Brokers
    BUNZL Shore Capital rates the distribution and outsourcing firm a “buy” at 710p. The broker upgraded its forecasts for pre-tax profit for the year by £6m to £279m after interim results this week. The... [Read more]
  • Worst August in 28 years for GM and Ford
    Thursday, 2nd September 2010
    AUTOMOTIVE
    EMMA SADOWSKI
    AUTO sales in the US slumped last month to their worst August in 28 years, reflecting the end of government sales subsidies and underscoring uncertainty about the strength of the US economic recovery... [Read more]
  • CITY VIEWS: DO YOU EXPECT MORE BRITISH COMPANIES TO BE ACQUIRED BY FOREIGN PREDATORS?
    Thursday, 2nd September 2010
    EMMA SADOWSKI
    MARK SEGELOV | QUANTAINIA “If Britain wants to operate in a global market it is going to have to expect more takeovers by foreign companies, and there will be more. But Britain has to also make sure... [Read more]
  • CITY MOVES | WHO’S SWITCHING JOBS
    Thursday, 2nd September 2010
    Marion Dakers
    Baker & McKenzie The London office of Baker & McKenzie has expanded its financial services and regulatory practice with the hire of partner Ian Mason, who started at the firm yesterday. Mason... [Read more]
  • US ARMY GIVES BAE A $123m CONTRACT
    Thursday, 2nd September 2010
    BAE SYSTEMS was awarded a $123m (£79.6m) contract by the US Army to continue developing thermal weapon sights – the infrared technology used on rifles, machine guns and mounted weapon systems... [Read more]
  • Ping An buys £2.8bn stake in rival
    Thursday, 2nd September 2010
    FINANCIAL SERVICES
    Ping An Insurance Co, the world’s second-biggest insurer, agreed to buy a further 32 per cent of Shenzhen Development Bank for 29.1bn yuan (£2.8bn) for a controlling stake in the Chinese lender, Ping... [Read more]
  • Ex-Tomkins boss Hutchings is disappointed by sale price
    Thursday, 2nd September 2010
    M&A
    THE former boss of engineering group Tomkins yesterday attacked the £2.9bn takeover of the firm as “disappointing” for shareholders. Greg Hutchings, who spent 17 years with the firm, said yesterday... [Read more]
  • Manufacturing growth stalls
    Wednesday, 1st September 2010
    MANUFACTURING
    HARRY BANKS
    GROWTH in the country's manufacturing sector slowed more than expected last month, led by the weakest expansion in new orders for more than a year, a purchasing managers' survey showed. The Markit/... [Read more]
  • Vivendi ups forecast as profit rises
    Wednesday, 1st September 2010
    MEDIA
    JOHN DUNNE
    MEDIA giant Vivendi has raised its forecast for 2010 after reporting a four per cent rise in first-half profit. Vivendi saw a net profit of 1.53bn euros (£1.26bn) in the first six months of the year... [Read more]
  • China considers probe into BHP Billiton's bid for Potash Corp
    Wednesday, 1st September 2010
    M&A
    HARRY BANKS
    China may launch an antimonopoly probe into BHP Billiton's $39bn (£25bn) bid for Canada's Potash Corp, the China Business News has claimed. China will also review the merger of two Russian potash... [Read more]
  • BP to sell Malaysian interests for £236m
    Wednesday, 1st September 2010
    BP
    HARRY BANKS
    BP is to sell its ethylene and polyethylene operations in Malaysia to Petronas for $363m (£236m) in cash, continuing a disposal programme as a result of the huge financial cost of the Gulf of Mexico... [Read more]
  • Hargreaves Lansdown sees profit surge in record year
    Wednesday, 1st September 2010
    FINANCIAL SERVICES
    JOHN DUNNE
    BROKER Hargreaves Lansdown has seen pre-tax profit up 18 per cent while assets under management also surged. The company's figures, covering the year to the end of June, showed growth in every... [Read more]
  • Game up for Tomkins as buyers target UK
    Wednesday, 1st September 2010
    M&A
    OLIVER SHAH
    ONE of the City’s largest investors warned foreign predators not to view UK companies as easy pickings yesterday after Tomkins became the latest name to fall to an overseas bid. Standard Life... [Read more]
  • Fed warns of sluggishness
    Wednesday, 1st September 2010
    US ECONOMY
    MARION DAKERS
    US POLICYMAKERS warned of increasing risks to economic growth in the minutes of the Federal Open Markets Committee (FOMC) meeting released yesterday. “The softer tone of incoming economic data... [Read more]
  • David Miliband: The least bad option
    Wednesday, 1st September 2010
    EDITOR’S LETTER
    ALLISTER HEATH
    Allister Heath
    ONE of the stories of the summer has been just how far the Labour party is moving to the left, as its leadership candidates appeal to grassroot members and trade unionists angry at the perceived... [Read more]