BANKING & INSURANCEHBoS left reeling by share fallHBoS was forced to issue a statement confirming its planned rights issue was fully underwritten and on track yesterday after a wider market sell-off saw its share
price plunge below the discounted rate being offered to investors. The banking giant is building up to a £4 billion cash call on shareholders and concerns have been raised that market conditions may force a u-turn similar to that of Bradford & Bingley which pulled its offer at the last minute. At one stage yesterday HBoS stock fell to 262p, well below the 275p per share rights issue price, as the FTSE shed value throughout the day. However, HBoS has insisted the issue will go ahead as planned. Commenting on the wider fears for the market, CMC Markets dealer Jimmy Yates said: "The FTSE has broken below the 5,800 level and this really has the potential to open up the way for a slide right down to the March lows around 5,400 unless traders manage to find some cheer in the near term."
(The Herald)RBS shrugs off market concernsEdinburgh banking giant Royal Bank of Scotland has insisted it is 'very much open for business' despite the deepening economic gloom and difficult market conditions. The NatWest owners heartened the market by revealing no further writedowns on investment hit by the credit crunch – the bank has already been forced to accept £8.4 billion in writedowns since the economic downturn was sparked by the sub-prime crisis in the US. In a bid to reassure the market, RBS chief executive Sir Fred Goodwin commented: "Whilst we remain very much open for business, our risk appetite is tempered by a cautious stance in relation to short term economic factors and market conditions." The money markets will be further heartened by the news the bank expects to make around £9.6 billion in pre-tax profits despite the credit crunch with Goodwin adding: "It's clear that things are changing out there, and the risk environment is changing, and that is reflected in the business that we are doing. We're not looking at the end of the world here." Responding to the statement, head of UK equities at Hargreaves Lansdowne, Richard Hunter said: "Today's statement does not particularly add any new news, which in itself has not been greeted negatively given the wider economic picture. Trading reportedly remains satisfactory muted by the ongoing credit squeeze. The ABN integration is proceeding slightly ahead of plan, whilst the sale of the insurance arm will continue to cast a shadow on the stock, dependent on the eventual outcome and the amount received."
(The Herald) Read all today's banking news from scotsman.comMANAGEMENTRevenue offices may closeNew proposals from HM Revenue and Customs could see tax offices across Scotland close. Up to 19 offices could close by 2011 under the proposals, with those in Perth, Inverness, Wick and Galashiels included in the possible cull. A staff consultation process is now under way as part of a UK wide review of the service and is expected to end in August of this year. A spokesman for HMRC said: "It is purely and simply an accommodation review to see how best we can do our business. The whole estate is being looked at, it's just housekeeping. It is not about jobs. Nobody has lost their job so far."
(BBC Scotland Online)Entrepreneur to urge Scottish firms to go globalAlan Savage, the chief executive of engineering recruitment firm Orion, is set to urge Scottish firms to go global in order to tackle tough market conditions. Savage will make the remarks when he hands over his crown as Scottish Entrepreneur of the Year this evening. He told the Scotsman: "It's important that Scottish business owners look at opportunities to globalise their business so that they are not dependent on one country." He added: "You have to have an eye on what you are doing today but you also have to look a good two or three years in front. That is what we try to do. We are diversifying into aerospace, rail and civil construction, where we have substantial numbers of people. It is not all oil and gas."
(The Scotsman) Read all today's management news from scotsman.comMEDIA & LEISURETrump costs soarThe public inquiry into Donald Trump's proposed golf development in Aberdeenshire has been told the American tycoon may have to spend £600 million on the resort before it begins to turn a profit. The assessment came from Iain Webster who was commissioned to assess the financial case for the scheme, he added the £1 billion scheme represented a 'risky' proposition. A public inquiry into the development was sparked after the golf course and housing scheme on the Menie Estate was denied planning permission by Aberdeenshire Council only to be called in by the Scottish Government for a full reporter's inquiry. The inquiry also heard yesterday from lead architect on the golf course element of the controversial plan, Martin Hawtree. He told the inquiry: "In the end we will have produced a golf course situated within the dunes, it will be the most natural golf course we can produce. Once the golf course is there then new things will happen. We believe it will produce a very fine piece of environment."
(BBC Scotland Online)Nature tourism must payThe owner of the Rothiemurchus Estate has called for Scotland to capitalise on the unique opportunities offered by nature tourism. The estate near Aviemore is currently featuring on the BBC's Springwatch and Phillipa Grant, wife of the 17th Laird Johnnie, has reported an upsurge in interest from potential visitors. She commented: "It's generated a huge amount of interest. We've been lucky that the weather has been on our side. This part of the world looks beautiful but the weather has made it look exceptional. The challenge now is to work with VisitScotland, Wild Scotland and the local destination management organisation to translate this into actual wildlife-watching business. That is how the success of Springwatch will be measured. We need to have the right products and put together the total package of accommodation and travel to make it attractive. We must make this work for the Highlands, and Scotland, and not just Rothiemurchus."
(The Scotsman) Read all today's media and leisure news from scotsman.comTRANSPORTAirports report jump in international travelNew figures have revealed an increase in international travel at Scotland's airports with half a million new passengers travelling in the past year. Data from BAA Scotland showed an increase of 6.7 per cent in passenger numbers to 8.7 million in the 12 months to May at Glasgow, Edinburgh and Aberdeen airports. However, the total number of passengers using the airports was down by 3.8 per cent. BAA Scotland spokesman Donald Morrison commented: "Passenger numbers will inevitably fluctuate from month to month, but the bigger picture shows the market in Scotland remains resilient in the face of global pressures, with international travel continuing to soar and record numbers of passengers using Scotland's airports. These are testing times for airlines around the world, with soaring fuel prices resulting in higher ticket prices and dampening demand for air travel."
(The Herald) Read all today's transport news from scotsman.comPROPERTYShare slump hits housebuildersBarratt, one of Britain's largest housebuilders, has been forced to deny it was set to breach its banking covenants after its shares slumped yesterday. The firm saw its market value plummet 20.7 per cent yesterday on top of a 24 per cent fall the previous day and fears were voiced that the 40 per cent drop would see it unable to raise sufficient funds with a rights issue and be forced into a debt-for-equity swap. A rush statement from the company read: "The company remains comfortable with market consensus forecasts for completions numbers (18,300) and profit before tax and exceptional charges (£395m)."
(The Scotsman) Read all today's property news from scotsman.com
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