ECONOMYBCC and SCC at loggerheads over recession claimsThe British Chambers of Commerce have claimed the UK is set to enter a technical recession next year, however, the Scottish Chambers of Commerce have respond
ed by suggesting the economy north of the Border may dodge the bullet. The BCC believe the UK economy will suffer two consecutive quarters of negative growth over the next six to nine months claiming the longer the Bank of England resists calls to cut interest rates, the greater the danger to the economic future. Economic adviser to the BCC, David Kern commented: "Our quarterly economic forecast highlights a significant worsening in UK economic prospects. There is now a distinct possibility of technical recession. A marked slowdown in UK activity is highly likely over the next 18 months, even if interest rates are cut in line with our central forecast. But, if the MPC decides not to cut rates in the next three to six months, growth prospects would be worse than in our central scenario." Meanwhile, the SCC have responded by suggesting the Scottish economy is not suffering the same economic difficulties as the rest of the UK thanks in part to the high rate of employment and the continuing increase in manufacturing exports. Liz Cameron, chief executive of the SCC said: "We have equalled or exceeded UK growth rates in each of the last three quarters. Whilst no-one is pretending everything is rosy, we do not feel that Scotland is inevitably heading for recession. We do, however, concur with the conclusions of the BCC statement that interest rates should come down. The traditional mechanism of raising the cost of money to curb inflation is not going to achieve that goal at this time – in fact it might just fuel inflation as the pressures that are causing price rises will not be alleviated by greater interest rates, being escalating commodity prices in the face of burgeoning world demand and the squeeze on credit." And added: "The last thing we need right now is any other pressure slowing the economy."
(The Scotsman)Lloyds TSB warns of falling business confidenceLloyds TSB has warned that business confidence has hit a record low, increasing concerns the UK is heading for a major recession. Confidence hit the lowest level in the six years of the bank's business survey in July, with the decline most pronounced in the service sector though there was also an obvious decline in industrial confidence. Trevor Williams, the bank's chief economist claimed business is being squeezed the rising cost of raw materials and weakening exports. He added: "These pressures, together with the bleak outlook for domestic growth, are taking an inevitable toll on firms' confidence in their own ability to do business. There's a strong relationship between business confidence and the actual performance of the economy. And, with so many firms remaining downbeat, we can expect UK economic growth to remain weak well into next year."
(The Herald) Read all today's economics news from scotsman.comENERGY & UTILITIES
Cairn begins Greenland explorationCairn Energy has begun seismic testing in Greenland as it looks to push back the frontiers on one of the last untapped oil resources. The Edinburgh oil explorer has shifted its focus since dermerging its Indian business and was awarded six exploration licences around the west coast of Greenland in January. A spokesman for the oil firm would say only that it was too early for any feedback from the tests that began this month.
(The Scotsman)Ministers launch electricity bulk buy planThe Scottish Government has unveiled a scheme to bulk buy electricity for the public sector in the hope of saving taxpayer money as energy prices continue to surge. The new contract is set to come into in force next autumn with bulk buys on the wholesale market expected to begin in early 2009. Finance secretary John Swinney commented: "As energy prices are rising, this government will take all practical steps to protect the public purse. The national procurement of electricity will be important in minimizing the impact of spiralling prices on the public sector."
(BBC Scotland Online) Read all today's energy and utilities news from scotsman.comPERSONAL FINANCEGlasgow stockbroker plans trackerFormer Clydesdale Bank client investment manager, Rob Davies is seeking £60 million to launch an innovative tracker fund. Davies is set to model his fund on that launched by entrepreneur Jim Fisher a decade ago, the fund currently manages £180 million. Davies commented: "We were marketing when Northern Rock happened I did have indications for several million pounds, and to be fair people did the right thing – since then the market has gone down 20 per cent. The fund is not about market timing, and you just don't know what is round the corner. You can't put everything on ice and just leave it, and I managed to raise a bit of money last year and get it away."
(The Herald) Read all today's personal finance news from scotsman.comRETAILSands reveal expansion plansConvenience store chain David Sands has revealed expansion plans as it appointed a non-family member to take care of the day-to-day running of the business for the first time. The chain which operates 26 stores in Fife, Kinross and Perthshire has confirmed the appointment of Ewen Chisholm as chief operating officer and predicted sales would hit £32 million this year, up from £28 million in the previous 12 months. Managing director David Sands is now set to step back from the running of the firm to concentrate on the buying and integration of new stores into the chain. He said: "There seem to be a lot of opportunities around and we want to cash in on as many of these as possible." And added: "Around two-thirds of our customers walk to our shops, which means they are not affected by higher petrol prices and, in some ways, we may be taking advantage of the fact that people no longer want to travel to out-of-town supermarkets as much In these times, people want a friendly store as well as one which has good choice and is also good value." Chisholm, the new man at the helm added: "In the last 12 months, I've got to know the David Sands business well and can see scope for further growth. My knowledge of the Scottish convenience store marketplace will help me identify these future opportunities. Having worked with convenience chains and groups across the UK in the last year and closely examined best practice, I would hope to look at ways of incorporating some of those 'best in class' ideas into the David Sands business. A look at these other retail operations, however, confirms that David Sands is punching well above its weight – and the business enjoys an excellent reputation among its peers."
(The Scotsman) Read all today's retail news from scotsman.com
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