BANKING & INSURANCE
Citigroup to shed 53,000 jobsBANKING giant Citigroup today said it planned to shed 53,000 jobs with losses falling "particularly heavily" in London and New York (
Scotsman). The cut – along with previously announced job losses of around 22,000 – will leave it with a global total of 300,000 employees in the near term. Citigroup employs around 12,000 people in its UK businesses, the majority in London and Derby, where its online bank Egg is based. Some of the job losses could be achieved through natural staff turnover. The company has posted four straight quarterly losses, including a loss of 2.8 billion US dollars (£1.9 billion) during the third quarter this year. Citigroup said staff numbers were being reduced by 20% from a peak of 375,000 at the end of 2007. It said it expected its expenses to be down 20% from peak levels once the job cuts have taken effect. The company also said it planned a "significant reduction in risky assets" going into 2009. Citigroup had a "very strong" capital position, it added.
Read all today's banking news from scotsman.comECONOMY
Shares in bail-out banks battered on fears investors will snub new issuesBANKING shares were battered again yesterday, with more than £4 billion slashed from the value of the three banks set to be bailed out by the UK government (
Scotsman). HBOS, Lloyds TSB and Royal Bank of Scotland were three of the worst performers on another difficult day for the FTSE 100 index, which shed100.8 points to 4,132.2. All three banks are offering investors new shares under the government's £37 billion recapitalisation plans. City experts last night warned that the latest falls were partly fuelled by fears that most institutional investors would snub the new issues. They said share prices were also being hammered because the sector was "squarely in the firing line" of the gathering UK recession.
Credit crunch blamed as loans value triples at DSLDSL Business Finance, the not-for-profit business support agency based in Glasgow, yesterday said the value of its loans had more than tripled over the past five months as a direct result of the credit crunch (
Herald). The group, which provides unsecured loans to small businesses that traditional banks are unlikely to lend to, said that while lending to businesses has "virtually come to a standstill around the world", Scottish firms are turning in increasing numbers to DSL Business Finance. DSL, which runs a £1.5m loan fund, said it had issued £50,500 in loans to small and start-up firms in May, but by September that monthly figure had jumped to £160,000. It also said that the average value of a DSL loan jumped from £11,000 last year to £21,000 this year, and that during the five-month period, it had approved more than £480,000 worth of loans.
Read all today's economics news from scotsman.comINDUSTRY
Macfarlane says rising profits are in the bag as it packs off 50 more staffMACFARLANE Group yesterday predicted it was on track to increase profits this year after cutting about 50 jobs as demand for its products has reduced (
Scotsman). The Glasgow-based packaging group, which is expected to report sales of about £130 million this year, revealed that it had taken pre-emptive cost-cutting measures. Chief executive Peter Atkinson said that since the start of the second half of the year, Macfarlane had reduced head count by about 50 from the group's packaging distribution business. The business operates from 18 sites across the UK, one of which is in Scotland. The job losses are spread across most of the sites. Only about 15 staff were made redundant, with the remaining reduction coming from not replacing departures and "performance related issues". News that the company was on track to increase profits this year sent shares in Macfarlane up 3p or 20.7 per cent to 17.5p. Brokers forecast the company would make a pre-tax profit of about £3.8m in 2008, a big rise on the £2.5m in 2007.
Read all today's industry news from scotsman.comRETAILShoppers with stars in their eyes deliver net gain ASOS, the fast-growing online clothing retailer, is to target dedicated followers of fashion overseas in a bid to achieve £1 billion a year in sales (
Scotsman). The firm, whose name stands for As Seen On Screen, has become one of the biggest internet retailing success stories since its launch eight years ago. Targeting net-savvy 16- to 34-year-olds with clothing and accessories based on those worn by celebrities, it boasts almost two million registered users. Unveiling a 68 per cent jump in interim profits and a 107 per cent surge in sales, chief executive Nick Robertson said it was realistic to think the group could achieve an annual turnover of £1bn ten years from now. "I think that is achievable," he told The Scotsman. "You've got to compare us with the internet growth, not high street growth." Asos banked £4.1 million profits for the six months to 30 September. Sales topped £65.7m, with the momentum continuing in the first seven weeks of the second half, up 104 per cent against 107 per cent in the first half.
Read all today's retail news from scotsman.comTRANSPORTCampaign to derail terminal grows Plans to build one of Europe's biggest rail freight terminals on land close to a former landfill site in Lanarkshire have met with fierce local opposition (
BBC). Kilgarth Development Company (KDC) wants to convert almost two million sq ft of grassland between Coatbridge and Glenboig into a huge rail freight hub. Local people have formed an action group to object to the proposals. Now residents from further afield have voiced concern about an increase in the number of trains passing their homes. KDC said the £100m project, which would see between six and eight storage sheds constructed on the 91 hectare site, could create up to 1,000 jobs for the area. A planning application was recently submitted to North Lanarkshire Council. If approved, the scheme would also see the creation of a road that would link the site with the M73 running through Gartcosh and across the railway line into Kilgarth.
Read all today's transport news from scotsman.comScotsman Business ClubGet to the heart of the issues affecting Scottish business at www.scotsman.com/businessclub. Features include blogs from The Scotsman's formidable team of business writers - including Bill Jamieson, Martin Flanagan, Peter MacMahon and Scott Reid, a diary of forthcoming company announcements and networking events and video interviews with leading business experts covering a wide range of useful topics."
