BANKING & INSURANCEStandard urged to deal with FriendsAnalysts at ABN Amro have urged Edinburgh finance giant Standard Life to look into a deal with Friends Provident despite the punishment it suffered at the han
ds of the market after its failed attempt to buy Resolution. Amro's Youssef Ziai commented in a note entitled 'Standard Friends?' that there was more logic in a merger between Standard and Friends Provident than with Resolution. He commented: "An acquisition of an open-for-business company could help prove to the doubters that for Standard Life the logic behind the Resolution deal was not its own shortage of cash."
(The Scotsman) Read all today's banking news from scotsman.comECONOMYEconomy north of the Border should swerve the worstThe Fraser of Allander Institute has predicted economic growth north of the Border will slow less sharply than the rest of the UK. However, the Strathclyde University think-tank also believes the SNP target of matching UK-wide expansion by 2011 will not be met, with the country not experiencing the same strong rebound. The institute has forecast net job creation throughout the slowdown, which will inevitably hit Scotland with growth falling to 1.9 per cent this year before decelerating to 1.7 per cent in 2009 – the UK-wide growth rate is expected to fall to 1.8 per cent and 1.6 per cent respectively. The rebound in UK growth is expected to hit 2.5 per cent in 2010 and 2.6 per cent in 2011. The institute commented: "With UK growth now predicted to be around 2.6 per cent in 2011, the FAI predicts that is unlikely on present information that the Scottish Government's target of parity with UK growth by 2011 will be met. The growth of consumer spending moderates (in Scotland) but not as much as in the UK in view of the relative strength of both the housing and labour markets in Scotland."
(The Herald)MPC minutes hint at rates riseThe minutes of the last meeting of the Bank of England's Monetary Policy Committee indicate the bank may be ready to push through an increase in the base rate. However, economists have continued to insist that the cost of borrowing will remain at its current level when the committee meets again next month. The committee voted 8-1 for the rate to remain unchanged this month, with only arch-dove David Blanchflower voting for a further quarter point cut. The recently released minutes revealed that some members considered a hike, adding that some felt recent upward price pressure "had been sufficient to consider whether an immediate rise in bank rate was warranted."
(The Scotsman) Read all today's economics news from scotsman.comINDUSTRYRosyth project in the spotlightScarborough Muir Group, the firm behind a £500 million proposal to redevelop Rosyth waterfront, has claimed it is being baulked by Forth Ports. The group has called for an explanation from Fife Council and the Scottish Government as to why they are supporting Forth Ports over their refusal to reach agreement over a masterplan for the development of the waterfront. The developers say they have held a number of meetings with Forth Ports and Babcock to discuss how they can co-exist. Spokesman for Scarborough Muir, Mark Cummings said: "In doing so, we have acted in good faith in an attempt to break the impasse that arbitrarily restricts mixed-use development on our vacant land at Rosyth waterfront and the enjoyment of the waterfront by the people of Rosyth. This land is now ready for development having been successfully remediated by us over the past 10 years and any further development would build on the success Scarborough Muir has had in attracting 1500 jobs to the area." A spokesman for Forth Ports responded: "The Fife structure plan designates the area for industrial use and we believe this provides the most effective route for the growth of the port and supporting the development of Rosyth. While we have made our position clear on land use, we are happy to talk to adjoining land owners as there is potential for port and industrial-related activity in the area."
(The Herald) Read all today's industry news from scotsman.comRETAILRetail sales slow downJ Sainsbury sales figures have further highlighted the slowdown in consumer sales and disappointing analyst expectations. The supermarket giant posted like-for-like sales growth for the 12 weeks to June 14 of 3.4 per cent both undershooting expectations and trailing its rivals. Chief executive Justin King remained confident in the face of the results, commenting: "Whilst we anticipate the environment will remain challenging, we operate from a strong financial position and our expectations for the full year remain unchanged." Head of UK equities at Hargreaves Lansdown stockbrokers Richard Hunter added: "Whilst Sainsbury's cautious comment about the consumer environment simply echo those of all around it, the company is having an equal challenge from its rivals. The recent strength of competitors' performances has left the perception that there is much better value elsewhere within the sector."
(The Herald)Food sales boost retail figuresDespite the continuing gloom in the retail sector, sunny weather in May is believed to have boosted retail sales growth north of the Border. Like-for-like sales in Scotland rose 2.4 per cent in May according to new figures published by the Scottish Retail Consortium. However, despite the upbeat figures analysts have warned the new figures do not suggest an end to curbed consumer spending claiming an increase in the price of food over the period had pushed sales higher. Professor of marketing at the University of Edinburgh, Professor John Dawson commented: "We have got to factor in that the figures show change year-on-year – and that suggests what we are beginning to see is price increases coming through. This means the sales rise is not quite as strong as it may seem. Retailers are having to pass some of the rising costs on to the consumer." However, Fiona Moriarty, director of the Scottish Retail Consortium responded: "Scottish like-for-like sales growth rose at its fastest rate since February as summer weather finally arrived in early May. Food and drink were the main drivers of overall sales growth. The sun encouraged people to buy summer fruit, barbecue food, beers and wines but sales figures were also boosted by increases in some food prices. The appeal of a number of new stores and warm weather brought Scottish customers out to buy summerwear giving clothing retailers their best performance since December but generally shortage of spare cash kept non-food sales weak."
(The Scotsman) Read all today's retail news from scotsman.comPROPERTYRevamp for Edinburgh Old TownScottish ministers have cleared proposals for a £300 million scheme to overhaul Edinburgh's Old Town. The Caltongate complex development will not go to a public inquiry and Edinburgh City Council can now issue planning permission for the scheme which includes a luxury hotel, an office complex and 200 homes. A spokesman for the Scottish Government said: "Scottish ministers do not consider it necessary to take over the decision-making role from Edinburgh City Council for the range of applications associated with the Caltongate development project. We have therefore cleared the applications back to the council to determine as they see fit." Edinburgh City Council leader Jenny Dawe added: "The Caltongate development will play a huge part in securing the economic, social and cultural life of the city centre and I am pleased that we can now take this matter forward."
(BBC Scotland Online) Read all today's property news from scotsman.com
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