ECONOMYUK manufacturing on the edge of recessionA new KPMG survey has revealed the outlook for UK manufacturing is worse than at first feed and may see the sector slipping into recession. The twice yearly survey
of 3700 companies in 11 European countries showed expectations of activity, profits, employment and investment in UK manufacturing were all sharply in decline – only in Spain and Ireland was optimism about economic conditions found to be lower. Chief economist at KPMG Andrew Smith commented on the findings: "UK manufacturing is staring recession in the face. The survey points to a bleak outlook for manufacturing output, employment and company profits, confounding hopes that the weak pound would give the sector a boost." And he added there was little hope of relief from a cut in interest rates: "Unfortunately, there is little prospect of relief from lower interest rates at home. Manufacturers will intend to pass on burgeoning input costs, which will keep the (Bank of England) Monetary Policy Committee on inflation alert."
(The Herald)RBS survey adds to economic gloomThe new Royal Bank of Scotland Purchasing Managers Index has added to the economic gloom gathering in the UK. The survey revealed that while the slowdown may be less evident in Scotland than elsewhere in the UK, businesses north of the Border are still suffering as the credit crunch continues to bite. The PMI figures for July showed outout, new orders and backlogs all declining at survey-record rates while employment contracted at the second-fastest pace in the survey's history. Head of microeconomics at RBS, David Fenton said: "The economic downturn gathered pace in July. Business activity fell to a series low. It will be of small consolation to Scottish businesses, but the slowdown has been less marked than in the rest of the UK. More encouragingly, the recent decline in oil prices should ease the upward pressure on companies' input costs."
(The Scotsman) Read all today's economics news from scotsman.comENERGY & UTILITIESCentrica may offer cash sweetenerBritish Gas parent Centrica is rumoured to be ready to offer a cash component in a bid to complete a deal for British Energy. The group had been in talks with EDF to launch a joint bid for the nuclear generator but was also making noises about proposing a full merger with the East Kilbride group. However, that suggestion was quickly quashed by the Government which revealed it favoured a company with experience in the development of new nuclear technology – an element lacked by both Centrica and British Energy. Now it is rumoured Centrica is considering including a cash element in the deal in the hope it will be able to cover all of the Government's £4 billion stake in British Energy. Sources have claimed Centrica has 'room to manoeuvre' thanks to its strong balance sheet and lack of debt should it decide to make a cash move for BE.
(The Scotsman)Birnie named chief exec at Subsea groupAlistair Birnie has been appointed as the chief executive of Subsea UK, the group which champions the UK's £4 billion subsea oil and gas industry. The global head of technology for subsea controls at Aker Solutions and chairman of the Society for Underwater Technology in Aberdeen will succeed David Pridden in the post on October 1. Subsea UK chairman Bill Edgar commented: "David has done a tremendous job in establishing Subsea UK as a credible organisation, with a high national national profile which delivers for its members on a variety of levels. He has initiated a range of programmes that will have a tangible impact on the sector." Birnie himself added: "Subsea UK has come a long way in four years, and my aim to further build on the success, ensuring that we work towards global recognitions for the collective expertise, skills and technology of our member companies. We need to maintain our position and ensure that we project our experience onto the global stage."
(The Herald) Read all today's energy and utilities news from scotsman.comMEDIA & LEISUREBusiness banking Trump golf planBusiness groups across Scotland have joined forces to urge the Scottish Government to give the green light to US tycoon Donald Trump's plan for a £1 billion golf resort in Aberdeenshire. The Menie Estate scheme was called in by the Scottish Government when it was turned down Aberdeenshire Council and was the subject of a recent public inquiry. Now CBI Scotland, the Federation of Small Businesses and the Scottish Chamber of Commerce are calling for the hotel and golf course development to be given the go ahead. Scottish Chambers of Commerce chief executive Liz Cameron commented: "With declining business and consumer confidence having a material effect on our economy, growth rates are becoming dangerously shallow and our economy needs every boost it can get at the moment. We are urging the government to make the right decision and to make it swiftly." David Watt, executive director of the Institute of Directors Scotland added: "Scotland's future significantly depends on developments such as this and it should be warmly welcomed by politicians and the general public as well as the business community. Right now, no-one should need any more convincing of the overwhelming economic case."
(BBC Scotland Online) Read all today's media and leisure news from scotsman.comTECHNOLOGYProStrakan raises £4 millionGalashiels-based pharmaceutical company ProStrakan has raised €5 million after selling its stake in Belgian drug development company Galapagos. The deal sees the Borders firm sell off the 7 per cent holding in the Benelux group just two years after it acquired the stake when it sold Paris-based drug development business ProSkelia. A spokesman for ProStrakan confirmed the deal had been done but the price paid for the stake will not be revealed until the drug group publishes its interim results on August 25.
(The Scotsman) Read all today's technology news from scotsman.comTRANSPORTBA look to compromiseBA is believed to be ready to give away a series of transatlantic flight slots as it attempts to win US support for a tie-up with American Airlines. It is thought the airline giant is prepared to surrender hundreds of flight to pave the way for an alliance between itself, American Airlines and Iberia, Should the Alliance become a reality, it will give the consortium dominance in the transatlantic market with 46 per cent of all slots and 62 per cent of all passengers. The move is not the first time BA has attempted to tie up a deal with American Airlines but only now does it appear ready to bow to demands from US authorities to give up a raft of flight slots before the deal can be completed. Virgin boss Richard Branson has reacted angrily to the possible tie-up claiming the high frequency of flights on the new transatlantic network would 'make it impossible for other carriers to compete for time-sensitive corporate or business-travellers'. He added: "Airlines everywhere are struggling with the current price of oil, but the solution to their problems should not lie in an anti-competitive agreement which will inevitably lead to less competition and higher fares."
(The Herald) Read all today's transport news from scotsman.com
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