BANKING & INSURANCEStandard post healthy figuresStandard Life defied the economic gloom by posting healthy first-half profits, the Edinburgh life giant saw underlying first half-profits rise by some 18 per cent.
The group was boosted by the annuity reinsurance deal with Canada Life which saw profits rise to 51 per cent thanks to the £6.7 billion agreement. The new figures saw life insurance and pension sales climb five per cent, which was largely in line with industry, however, SL required 14 per cent less capital to fund its funds and Standard Life Investments held its third-party funds steady at £47.5 billion in face of challenging market conditions. Indeed, chief executive hailed Standard Life Investment as 'one of the select few companies who have maintained or improved their asset base during the last six months.' However, Crombie refused to be drawn on whether Standard Life would be drawn into a bidding war for Friends Provident and commented that 'if there was an opportunity to gain scale in a particular area of operations, a product line that we don't have, a new route to market, or a customer base, we would like to work with – these are all things that would interest us."
(The Herald)Investors withdraw millions from F&CInstitutional investors have withdrawn millions from F&C Asset Management after it emerged the respected fund manager, which is heavily involved in Scotland, had seen funds under management slump. Up to £4 billion was moved out of the company following the news that the group's funds under management had fallen by seven per cent to £96.5 billion. The fall comes amid uncertainty over the future of the group which was formed by the merger of Foreign & Colonial and Isis Asset Management – F&C's largest shareholder Friends Provident has put its 52 per cent stake up for sale and sparked concerns as to the future direction of the fund manager.
(The Scotsman) Read all today's banking news from scotsman.comECONOMY
Borrowing costs up as credit crunch continuesA new survey has revealed that more than a third of Scottish companies have seen their borrowing costs increase since the credit crunch began to bite. Some 37 per cent of firms reported a rise in the cost of credit in the survey by Siemens Financial Services compared to 25.3 per cent in the UK as a whole. However, the survey also showed that 27.5 per cent of firms in Scotland did not expect the global financial turmoil to affect their business in a meaningful way. Sales director at Siemens Financial Services, Derek Ryan said: "Scotland's economy is considered to be more open to the world economy than the English or Welsh economies, with exports playing a much higher level of importance. The construction sector in Scotland would have been hit by the tightening of credit. The most efficient businesses are those that treat cash as a scarce commodity even when it is not."
(The Scotsman) Read all today's economics news from scotsman.comINDUSTRYDonaldson see sales fallThe owners of Scottish timber firm James Donaldson and Sons are predicting another profitable period despite a slump in sales to national housebuilders. The group expect a further surge in earnings in the new financial year after they announced a rise in pre-tax profits of 44 per cent up to £3 million in the year to March. The first quarter of the year saw sales to national firms fall by 25 per cent in a trend which is expected to continue in the next 12 to 18 months, however sales to publicly funded and affordable housing developments have increased in line with the increase in the such projects being given the go ahead. Chief executive Neil Donaldson commented: "The work that has been done to place us on a solid footing, such as ensuring robust margins, is going to be at the heart of how we grow in what are turbulent economic conditions."
(The Herald) Read all today's industry news from scotsman.comTECHNOLOGY
IBM Greenock operation accepts Government grantThe award of a Regional Selective Assistance grant to the IBM United Kingdom operation in Greenock has reignited the debate over the Government offering grants to safeguard Scottish jobs. The grant offered to the IT giant is reported to have 'safeguarded' 613 jobs, but claims have been made that that the £1.3 million cash offer is little more than a crutch. The debate was ignited by a £1 million grant to HSBC which was likened to offering an 'OAP bus pass' to a firm that could 'pay the full fare'. Defending the acceptance of the new award, the Enterprise Secretary Jim Mather stated: "Encouraging investment and job creation is an essential ingredient of achieving increased, sustainable economic growth in Scotland. The latest quarterly report demonstrates that Regional Selective Assistance is an important tool in helping business projects come to fruition at a time of global economic uncertainty. RSA complements other initiatives by the Scottish Government to create the more competitive business environment this country needs. Other economic policies introduced, such as cutting and scrapping business rates for 150,000 businesses, will help breathe life into Scotland and see the benefits of growth felt in all communities."
(The Herald) Read all today's technology news from scotsman.comTRANSPORTBorders rail timetable setWork on the new Borders rail line is expected to begin in 2011 with the £295 million project set to be completed in 2013. The announcement was made by Transport Minister Stewart Stevenson who called the setting of the timetable a 'milestone' in a project he expected to attract 'interest from a number of companies'. Scottish Borders Council leader David Parker welcomed the announcement: "Other areas in the UK, with much smaller populations, continue to depend on their rail links. The future health of the Borders is depending, in part, on greater accessibility – both to the area, and to wider parts of Scotland."
(BBC Scotland Online)Salmond promises improved links to northFirst Minister Alex Salmond has pledged to reduce the rail journey time between Edinburgh and Inverness by 35 minutes as well as improve safety on the A9. Possible improvements to the rail line include the addition of more loops as well as signalling improvements. The First Minister commented: "The faster train journey between the capital city and the capital of the Highlands will undoubtedly attract even more visitors and businesses to the area. Equally, we have been clear in our commitment to invest in the A9 on a continuing basis. Key sections of the A9 have already seen improvements, with a programme of further works currently being taken forwards."
(BBC Scotland Online)No to Sabbath sailingsFerry firm Caledonian MacBrayne has rule out sailings to Lewis and Harris on the Sabbath. The decision was taken by the Cal Mac board despite the introduction of a controversial trial service by the Scottish Government. The sailings had proved unpopular with campaigners who feared the trial would lead to scheduled link to the mainland.
(The Scotsman) Read all today's transport news from scotsman.com
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