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BANKING & INSURANCERoyal & Sun not interested in RBS assetsInsurance group Royal & Sun Alliance has denied any interest in buying up parts of Royal Bank of Scotland's insurance business. The speculation comes at
RBS prepares to sell off £5 billion of its assets as it attempts to bolster its balance sheet in the face of the continuing credit crunch. However, Royal & Sun appear to have ruled themselves out of the auction with chief executive Andy Haste commenting: "There is still potential for this year and next year on the bolt-ons. I certainly wouldn't call RBS a bolt-on (acquisition). By those I mean the kind of deals you've seen us do up to now, funded out of our own resources."
(The Herald) Read all today's banking news from scotsman.comECONOMYMPC no to rate cutThe Bank of England's Monetary Policy Committee has decided against making a second cut in the interest base rate following last month's .25 per cent cut. However, the majority opinion among analysts is that the central bank's committee will make a cut next month as signs of a slowing economy continue to pile up. The Scottish Council for Development and Industry welcomed the MPC decision yesterday, with chief economist Iain Duff commenting: "This is the right decision, with the committee having to balance inflationary pressure against slowing growth. The MPC also has to take into account the impact of the strength of the pound. Whilst the weakness of sterling is a help to exporters, it stokes inflation by pushing up the cost of imported goods such as food." Meanwhile Liz Cameron, chief executive of the Scottish Chambers of Commerce was hoping for further cuts: "This decision by the MPC was not unexpected, but we hope that interest rates will continue on their downward path again soon. However, it is the rising costs of energy which is rapidly becoming the number one economic concern for Scottish businesses. At a time of year when businesses should be expecting energy prices to fall back, record oil prices are resulting in energy bills rising rather than falling. Indeed, one of our member businesses has reported a £100,000 per month price rise for their gas consumption, adding further pressures on (profit) margins at an already economically challenging time."
(The Herald) Read all today's economics news from scotsman.comENERGY & UTILITIESIberdrola may make joint bid for BESpanish power giant Iberdrola is rumoured to be plotting a joint bid with British Gas owner Centrica for nuclear generator British Energy. The Basque parent company of ScottishPower previously appeared to rule itself out of the race for the East Kilbride group but according to an 'insider' may still make the joint bid. The insider told the Scotsman: "The company is still considering its options on this and it understands that this may not be a final deadline in any case. Making a bid with a partner is very likely and, looking at the options around, Centrica would be an obvious choice." Centrica is seen as the preferred partner for several European energy groups including EDF and RWE, it is thought that a partnership with a British firm would be more amenable to the government which is still a significant stakeholder in BE.
(The Scotsman)Water lily plan for GlasgowGlasgow-based ZM Architecture is promoting a plan to site lily-pad shaped solar panels on the River Clyde which it hopes the city council will allow to go to trial. The concept has won the International Design Awards Land and Sea Competition and the firm are confident the concept will both reduce the city's carbon footprint and increase activity on the river. AM director Peter Richardson said: "We are delighted to be recognized for our commitment to providing alternative energy solutions are excited about the potential of the idea in a range of contexts."
(BBC Scotland Online) Read all today's energy and utilities news from scotsman.comINDUSTRYBPI warns on rising costsGreenock based British Polythene Industries has warned that rising costs and the relative weakness of sterling is beginning to hit margins and will see first-half results fall below expected levels. However, the group, which plans to shift operations from Essex to Cowdenbeath, has some seen brighter trading elements come to the fore. Company chairman Cameron McLatchie admitted that though sales to the construction industry ad fallen, BPI was seeing a significant increase in demand from the agriculture sector. He added: "Firstly, European profits are being increased by the translation effect into sterling. Secondly, currency movement is improving the competitiveness of our UK manufacturing operations, and recently we have been successful in regaining work previously lost to European producers." On the trading levels he commented: "Improved volumes were not matched by bottom-line results, as we have continued to be affected by the lag in passing on raw material cost increases and also by substantial increases in the costs of energy. As a result, our profit before tax in the first quarter was below the same period last year."
(The Scotsman)Freescale in the doldrumsFreescale Semiconductor has admitted for the first time that it is unlikely to find a buyer prepared to continue operations at its East Kilbride fabrication plant. The Texan company's plans to abandon the site were revealed last year since when the group has been making confident noises about locating a buyer who would take on the plant as a going concern. The news came in a briefing to employees at the site with the Texan firm admitting 'continuing efforts to market the fab as a going concern have not led to a sale. A spokeswoman told the Herald: "We did go into detailed negotiations with various parties but none of them led to a sale. It is going to remain on the market. If anything did happen in the 11th hour, it is still for sale."
(The Herald) Read all today's industry news from scotsman.comMEDIA & LEISUREKelvingrove Scotland's top attractionKelvingrove Art Gallery and Museum has once again been named as Scotland's busiest tourist attraction by VisitScotland. The Glasgow museum attracted some 2.23 million visitors last year placing it ahead of Edinburgh Castle which was the most popular paid attraction with 1.2 million visitors.
(BBC Scotland Online) Read all today's media and leisure news from scotsman.comTECHNOLOGYProStrakan handed positive test boostBorders pharmaceutical group ProStrakan has seen its US operation boosted by positive results from clinical trials of its testosterone gel Fortegel. The US Food and Drug Administration had previously found the product to show testosterone levels above acceptable levels but new trials have now cleared the product. Though the results do not guarantee approval success for the gel could significantly improve forecasts for the Galashiels company. ProStrakan management hope the gel, aimed at tackling male hypogonadism could eventually rake in more than $100 million a year in sales.
(The Scotsman) Read all today's technology news from scotsman.com
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