BANKING & INSURANCE
New blow for RBS in insurance saleEdinburgh banking giant Royal Bank of Scotland has suffered another setback in its bid to sell its multi-billion insurance arm. Swiss group Zurich has pulled out of the bidding
for the division which includes the Direct Line and Churchill brands. Analysts have shown little surprise at the Zurich decision and suggested that RBS is pricing many potential bidders out of the market. Analyst at MF Global, Mamoun Tazi commented: "The bad news is that no-one is interested in buying it at such a high price like £7.5 billion."
(The Scotsman) Read all today's banking news from scotsman.comECONOMY
Bank holds ratesThe Bank of England's Monetary Policy Committee yesterday held the UK interest base rate at 5 per cent. The decision caused little surprise in the city where it was seen as the only option open to the central bank as it battles slowing growth and increasing inflation. Head of group economics at Royal Bank of Scotland, Stuart Porteous said: "I can't think of a better example of what it means to be stuck between a rock and a hard place. Recent news on the growth front has been disappointing, sometimes dishearteningly so, while inflation has show no signs of subsiding. Until a stronger case can be made for a decisive move in either direction, the MPC will do what it has done today – keep rates on hold." Liz Cameron, chief executive of Scottish Chambers of Commerce added: "This decision to keep interest rates on hold is not unexpected and demonstrates the increasingly fine line which the Bank of England is having to tread in order to balance its duty to control inflation with the need to promote economic growth. Scottish businesses are feeling a number of pressures from rising energy costs, rising transportation costs and the high cost of raw materials. Business confidence has taken a hit this year and it is important that we keep the Scottish economy on track."
(The Herald) Read all today's economics news from scotsman.comENERGY & UTILITIES
Orion in deal with TalismanInverness recruitment group Orion has secured a £75 million deal with Talisman Energy to manage the oil and gas operator's contractors working in its engineering, support service and technical divisions. The five year deal will also see Orion co-ordinate Talisman's recruitment of contractors and handle responses to job adverts. Orion chairman Alan Savage commented: "Orion Group and Talisman Energy will be working hand-in-hand over the next five years, as both companies look to expand within their respective markets. There will be a transfer of talent between the two organizations and there is certainly scope to increase the number of staff working on the project in the near future." He added: "This deal will have an immediate impact on Orion Group and we are focused on the opportunities that will arise over the next five years. We have a dedicated team working with Talisman Energy to ensure that its expectations are not only met, but exceeded, and we're confident that the relationship will bring mutual rewards and successes."
(The Scotsman) Read all today's energy and utilities news from scotsman.comMEDIA & LEISURE
Cross country championships boost city economyEdinburgh benefited from staging the World Cross Country Championships to the tune of £4.6 million according to a new report. The championships in March garnered £3.2 million from visitors from outside Scotland with some 66 per cent of the 17,000 spectators revealing they would have not have been in Edinburgh but for the event. Chief operating officer for EventScotland, Paul Bush said: "Edinburgh provided the perfect stage for this world class event, adding to Scotland's continuing success in securing and delivering major events. A sporting event like the World Cross Country Championships has the potential to generate not only additional visitors for its duration, but helps to increase the number of repeat visits. In this case it is likely to bring new visitors through the worldwide broadcast to an estimated 20 million people in 166 countries."
(BBC Scotland Online) Read all today's media and leisure news from scotsman.comTECHNOLOGY
McLaughlin to lead Cisco in ScotlandTechnology group Cisco has appointed Donald McLaughlin to run the company's operations north of the Border. The new appointment sees McLaughlin replace Gordon Thomson who is moving to become director of sales strategy and planning. McLaughlin commented: "As a Scot myself, I'm delighted to take on this role. Cisco's business in Scotland has grown massively and I am looking forward to building on this success."
(The Herald) Read all today's technology news from scotsman.comTRANSPORT
FirstGroup books 'fantastic' yearBus and rail operators FirstGroup has reported surging revenue in its UK business in the first quarter of the new financial year. It has also hailed 'excellent progress' in its North American business where it is building on the acquisition of Greyhound owner Laidlaw. Shares in the Aberdeen group rose 3.6 per cent to 560.5p yesterday on the back of news that like-for-like passenger revenues in the UK division were up 6.4 per cent in the first quarter. A statement from the company read: "During 200708, trading was strong across all of our businesses and we continue to see the positive results of our focus on customer service, quality and operational performance. In North America we have made excellent progress in delivering our integration plans. We have achieved our early priorities in consolidating the business."
(The Herald)Landslip closes road for monthsThe A7 south of Langholm could be shut for up to eight weeks after a landslip closed the busy main road. The main route to the Borders and Cumbria was closed after the torrential rains sweeping Scotland while a further landslip also closed the road to the north of the town. Langholm councillor Denis Male commented: "As I understand it about a mile north of Auchenrivock a large amount of earth from the new bypass has slipped down onto the old A7, totally blocking it. This means absolute disaster for the business community of Langholm."
(BBC Scotland Online) Read all today's transport news from scotsman.comPROPERTY
Applecross latest developer to sufferApplecross is the latest housebuilder to feel the pinch of the credit crunch after being forced to cut development plans and slash its workforce. The Edinburgh based upmarket firm confirmed it had shelved four development projects within the Capital and will no longer be pushing into the English market. Most seriously, the firm is also expected to cut at least 20 jobs over the coming months as the slowdown in the housing market begins to impact on the top end of the sector. Applecross managing director Colin Cumberland commented: "We continue to experience some demand from loyal Applecross customers but not to the level predicted. There has been a very acute drop in the number of transactions. We have had to rethink our plans to break into new locations and this will affect headcount. Our work on current developments remains constant and unaffected." Meanwhile, Barratt has confirmed it will cut up to 40 jobs in its Scottish operation by merging the support functions at its Edinburgh and Aberdeen offices – a further 45 jobs will also go at the group's Glasgow office.
(The Scotsman) Read all today's property news from scotsman.com
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