ECONOMYRate cut looks more likelyBank of England governor Mervyn King appears to be coming round to the idea of an interest rate cut this month after commenting that the central bank "cannot allow the economy to
slow too sharply". Addressing the Bank of Israel in Jerusalem yesterday, King seemed more amenable to an immediate cut, prompted by increasing concerns about climbing inflation. He said: "Our inflation target is symmetric. We are not aiming for inflation below two per cent, but at two per cent. So even though some slowdown in the growth of rate of economic activity is likely to be necessary to ensure that inflation returns to the target, we cannot allow the economy to slow too sharply, lest a margin of spare capacity is produced that pulls inflation down below the target next year. We face a difficult balancing act."
(The Herald) Read all today's economics news from scotsman.comENERGY & UTILITIESCairn considers exploration spin offCairn Energy is considering allowing its exploration arm Capricorn to spin off and be floated in its own right. The Edinburgh oil production firm believes the exploration group could fetch several hundreds of millions of pounds and chief executive Sir Bill Gammell said that while there is no pressure for a separate listing "at some point it'll go out and fly under its own wings". Delivering Cairn's results for 2007, Gammell commented: "From a group perspective it may well be later this year, but we have given any commitment and we're not under any pressure (to de-merge Capricorn) at the moment. When it (Capricorn) does emerge, it will be based on people's hopes and aspirations for it technically, as well as taking a view on the management which has run Cairn all these years."
(The Scotsman)Energy Cranes soldLMS Capital has sold its controlling stake in Energy Cranes International in a deal which valued the Aberdeen oil services firm at £142 million. Close Brothers has completed the deal in a move which further signals the financiers' enthusiasm for the oil and gas sector. Funding for the deal was secured from a consortium of banks led by Royal Bank of Scotland and will see Close Brothers assisting Energy Cranes on an acquisition spree as it bids to expand its operations.
(The Herald)MP calls for greater safety measuresAberdeen North Labour MP Frank Doran is set to move a backbench bill calling for safety officers on off shore installations to be protected when they raise concerns over risks to workers. The bill comes as concerns increase at the prevalence of the 'not required back' culture operating off shore which allows platform managers to effectively dismiss employees of a contractor supplying workers if they raise concerns at safety standards without facing an employment tribunal. Doran warned: "There is not a lot of incentive for people to get involved in safety issues when this can happen." He added: "The current situation is a recipe for disaster."
(Aberdeen Press & Journal)
Read all today's energy and utilities news from scotsman.comFOOD, DRINK & AGRICULTUREEnd of the line for S&NShareholders in Scottish & Newcastle shareholders have voted overwhelmingly in favour of accepting the £7.8 billion takeover bid from a Carlsberg/Heineken consortium. The decision, which saw 99.65 per cent of shareholders back the move, brings to an end more than 250 years of brewing history for the Edinburgh giant. Reflecting on the decision, S&N chairman Sir Brian Stewart commented: "Though today may be an end, it is also a beginning; a new opportunity for our people across the globe, including many still based here in Scotland, to grow within a larger worldwide group." The Court of Session is expected to give the takeover the go ahead later this month and the new owners will take control on April 28. Under the deal Carlsberg will take control of the S&N operations in China, France, Greece and Vietnam as well as assuming ownership of the brewer's 50 per cent stake in the hugely lucrative BBH in Russia – Heineken will be handed the UK, Portugal, Finland, Belgium and Ireland arms of the business. Some 250 jobs in the UK are believed to be at risk following the decision, with between 100 and 150 of those jobs in Edinburgh. Addressing shareholders, the chairman said: "While there is sadness at the passing of two and a half centuries of brewing history, the prevalent emotion today is pride – pride in our people in building such a valuable and desirable global business and pride that we achieved a strong price for shareholders in increasingly weak global markets."
(The Scotsman) Read all today's food, drink and agriculture news from scotsman.comMEDIA & LEISUREEmergency league meeting as Gretna flounderThe Scottish Premier League has called an emergency meeting for this morning as concerns grow that Gretna FC may not survive the day. The Scotsman has reported that while 22 players and several members of the backroom staff were made redundant last week, the struggling football club is still accruing losses and administrator David Elliot of Wilson Field is thought to be ready to wind up the club. Secretary of the SPL, Ian Blair said: "We are in an intensive care situation with Gretna and we are in constant communication with the administrator in an attempt to solve the situation as best as we possibly can." Gretna's relegation from the SPL was confirmed at the weekend following a 2-0 loss to St Mirren and, should the club go under, it is possible that all points won or lost against the Raydale club would be declared null and void.
(The Scotsman) Read all today's media and leisure news from scotsman.comTRANSPORTMenzies moves into SwedenJohn Menzies has continued the expansion of its popular airport ground-handling business with the acquisition of a Swedish rival. The Scottish firm has paid £8.75 million for Novia Sverige which currently operates out of Stockholm and Gothenburg. The deal follows the acquisition of Finnair's ground-handling operations in Sweden and Norway last year. The ground-handling and airport services arm of the distribution company has proved to be the star of John Menzies' stable in recent months with the wing providing strong profits.
(The Herald) Read all today's transport news from scotsman.comPROPERTYStewart Saunders enter liquidationEdinburgh estate agent Stewart Saunders has gone into liquidation after suffering the depredations of the global credit crunch and the stuttering housing market. One of the Scotland's largest independent agencies, Saunders has been forced to axe all ten staff and has been taken over by liquidator Tenon Recovery. Liquidator Tom MacLennon commented: "The closure of such a respected brand as Stewart Saunders is a clear indication that the housing market is in some difficulty. The much documented credit crunch and rapid tightening of lending criteria by mortgage companies has clearly affected consumer confidence and sales. Estate agents across Scotland will be concerned by this closure."
(The Scotsman) Read all today's property news from scotsman.com
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