BANKING & INSURANCEPressure grows on HornbyAnalysts are expecting interim results at HBoS to exert more pressure on the banking giant's chief executive Andy Hornby. The City is awaiting Wednesday's results, confi
dent the figures will show a slump in profits for the Edinburgh banking group with the bank also having to accept it is no longer the UK's largest mortgage lender. HBoS is expected to reveal as much as a 60 per cent fall in profits to £1.2 billion as well as impairment charges relating to the struggling housing market and rising repossessions. Analyst at Collins Stewart, Alex Potter commented: "Earnings will be far less closely watch than movements on writedowns, as well as management's willingness to engage in self-help." Another analyst told the Scotsman: "Arrears are rising and that points to a big upswing in foreclosures further down the line."
(The Scotsman)Swiss Re linked Barclays bidSwiss Re is believed to be carrying out due diligence on a Barclay subsidiary as it considers a takeover bid. Barclays Life Assurance manages the life insurance, pension plans and investment payments of more than 70,000 customers with more than £7 billion under management. Swiss Re is believed to be interested in making a move for the Barclays division after it missed out in the battle for Resolution. Barclays are said to be ready to offload the division as it no longer writes news business and is now seen as non-core operation for the banking giant. The move is the latest in a recent flurry of consolidation activity in the sector which has seen Resolution taken over by Pearl Assurance and Swiss Re themselves snapping up fund from Zurich Financial Services.
(The Scotsman) Read all today's banking news from scotsman.comECONOMYMcColl calls for economic controlJim McColl, one of Scotland's most successful businessmen, has called for the Scottish Government to take control of the economy. The Clyde Blowers chief is part of an 11 member council of advisers set up by First Minister Alex Salmond in a bid to tackle the country's 'systemic economic mediocrity'. He commented: "Don't underestimate the power of innovation, just thinking out of the box about how you can do better with the powers you have got. That's what the Scottish Government have to do just now. They have to make the best use of the powers they have got while seeking to have some more." He added: "I find it works much better when you give as much autonomy as you can to a business unit and give the management freedom to manage that business and use their talents. Personally I would not want to work for a large group where I was given certain restrictions on what I could do. So obviously the more freedom you have to manage the economy, the better you can manage it."
(BBC Scotland Online) Read all today's economics news from scotsman.comENERGY & UTILITIES
EdF plan to sweeten BE dealEdF, the French utility giant believed to be ready to complete a takeover deal for nuclear energy generator British Energy, is expected to sweeten the deal for existing shareholders. The group is ready to pay £12 billion for BE and is now widely predicted to be on the verge of offering current shareholders a share of future profits. The French group is thought to have already lined up Centrica, the British Gas parent to take a 25 per cent stake, as it attempts to close a deal for the East Kilbride generator.
(The Herald) Read all today's energy and utilities news from scotsman.comFOOD, DRINK & AGRICULTURETraditional pubs founderingNew figures from the British Beer and Pub Association have revealed that traditional local pubs are facing an 'unprecedented threat' from soaring costs and stay-at-home drinkers. Beer sales in UK pubs have fallen 10.6 per cent in the last year according to the new data with some 107 million fewer pints sold between April and June this year compared to the same period last year. The figures come after it was estimated that up to 350 pubs have closed in Scotland in the past two years with some predicting the trend will spell the end of 'traditional' pubs. Director of the Campaign for Real Ale, Ian Brocklebank commented: "There's no doubt the threat faced by traditional pubs is unprecedented, and it's a threat we are taking very seriously indeed. The big price different between supermarkets and pubs is a massive problem. Supermarkets are able to sell alcohol at almost loss-leader prices – there's no way pubs can do that. He added: "There are issues that we are raising with the government around beer tax and the possibility of making locally-brewed ales exempt from VAT. There are several local campaigns to keep the traditional British pub, but what we are looking at is a national approach." Secretary of the Scottish Licensed Trade Association, Colin Wilkinson commented: "About 400 pubs have closed since the introduction of the smoking ban, but it's not just down to that. We have things like rents, rates and fuel costs. But the main thing I would say is the price of alcohol in supermarkets. We have become a nation of take-home drinkers in Scotland, where we consume cheap alcohol from the big retailers. There are 759 supermarkets in Scotland, and they take 45 per cent of all alcohol sales in the country."
(The Scotsman) Read all today's food, drink and agriculture news from scotsman.comMANAGEMENTGrant Thornton expandLeading second tier accounting firm Grant Thornton has expanded its corporate finance team. The move is being seen as a vote of confidence for the prospects of the Scottish mergers and acquisitions market in the face of the growing global credit crunch and marker slowdown in Scotland. The company has added two senior specialists to its Scottish team with both joining from operations based in London.
(The Herald) Read all today's management news from scotsman.comPERSONAL FINANCEMoneyquest to close Edinburgh officeOnline mortgage-brokers Moneyquest is set to close its Edinburgh office and shed up to 50 jobs. The Glasgow-based group responded to claims it was looking into a large scale redundancy exercise by confirming it was currently halfway through a consultation on the scale of the job losses but the fate of the Edinburgh office was sealed. Spokesperson Chris Lynch said: "We are having to downsize. We are not immune to the market conditions, it is the same for everybody else, we are trying to reduce numbers as much as we can without losing jobs. We have taken the decision to streamline the business back, to safeguard as many jobs as possible."
(The Herald) Read all today's personal finance news from scotsman.com
The full article contains 1161 words and appears in scotsman.com newspaper.
