Thursday January 8, 03:42 AM
Glance-PRESS DIGEST - Financial Times - Jan 8
The Financial Times
HALF-POINT RATE CUT EXPECTED
The Bank (NASDAQ: TBHS - news) of England is expected to cut interest rates by
at
least a half a percentage point, bringing rates down to 1.5
percent or less. Chancellor of the Exchequer Alistair Darling
has said the closer the rate comes down to zero, the more likely
it will become that the Bank of England will have to work 'hand
in hand' with the Treasury to prevent deflation. The Bank has
long accepted if rates fell close to zero and other measures
were insufficient, it would have to pursue a policy of
'quantitative easing' and request Treasury approval to print
more money, meaning in effect the Bank would lose its
independence.
CARMAKERS RENEW APPEAL FOR CREDIT
The motor industry has renewed calls for the government to
intervene to boost the availability of credit, as the latest
figures show car sales declining to the lowest levels in more
than a decade. Paul Everitt, chief executive of the Society of
Motor Manufacturers and Traders, said: 'Further action to ease
access to finance and credit across the economy is essential if
long-term damage to valuable industrial capability is to be
avoided.' New car registrations fell 21.7 percent in December
compared with the previous year.
LLOYDS TOPS GAY-FRIENDLY BUSINESS POLL
Lloyds TSB has been ranked the most gay-friendly
business in the UK. It appears top in an annual index of
employers compiled by Stonewall, the gay equality charity. David
Shields, director of workplace programmes at the charity, said:
'Stonewall research shows that gay people perform much better at
work when they can be themselves. This is a time when staff
performance is crucial to employers weathering financial
difficulties.'
BAE TO ENTER INDIAN ARMED FORCES VENTURE
BAE Systems (LSE: AP16.L - news) is setting up a joint venture with
Mahindra & Mahindra in India focused on armoured vehicles. The
decision was announced on Wednesday. Chief executive Ian King
described it as 'the first step' in the group's 'plans to
(develop) long-term businesses in India in multiple sectors
across the breadth and depth of the company's global
capabilities in land, sea, air and security'. The defence firm
recently identified India as its seventh 'home market'.
ROLLS-ROYCE SIGNS HAYNES
Aero-engine maker Rolls-Royce has appointed Lawrie
Haynes as president of nuclear to spearhead its push into the
UK's resurgent nuclear market. A former chief executive of
British Nuclear Group, Haynes will oversee both the submarine
and civil nuclear business and will report directly to Sir John
Rose, chief executive. The company predicts the global civil
nuclear market could be worth 50 billion pounds a year in 15
years' time.
SCOTTISH & SOUTHERN RAISES 479 MILLION POUNDS
Scottish & Southern Energy placed about 40 million
shares on Wednesday, raising 479 million pounds. The equity
issue came as the company put the finishing touches to plans for
a 300 million pound investment in two wind farms. The large
number of new shares affected sentiment in the City and the
share price suffered, falling 104 pence to 1159 pence. Ian
Marchant, chief executive, said the money raised would give the
group 'the ability to make opportunistic bolt-on acquisitions
should they arise' as well as strengthening the balance sheet
and providing funds for investment.
ALEXON LOOKS TO PROFIT GROWTH
The clothing retailer Alexon reported falling sales
and lower gross margins but raised its forecast for full-year
operating profit after trading picked up in December. Its
broker, Dresdner Kleinwort, bumped up its profit forecast from
2.2 million pounds to three million pounds for the year to
January 3. Sales fell 10.5 percent in the 23 weeks to January 3,
while the gross margin narrowed one percent. The shares closed
two pence up at 18.5 pence.
SKYEPHARMA GETS EUROPEAN NOD
Shares in SkyePharma (LSE: SKP.L - news) added 9.5 pence to 150 pence on
news that its time-release Geoclock technology has been approved
by European regulators for use in an arthritis medicine. The
technology was partnered to Nitec, the Swiss biotechnology
group, which used it to reformulate an existing treatment for
arthritic stiffness. Ken Cunningham, chief executive, said:
'This validates the technology, and allows us to look forward to
(using it in) a second product.'
WOES AT VICORP AND QONNECTIS
Profit warnings were issued on Tuesday by two Aim-listed
software companies. Shares in Qonnectis (LSE: QTI.L - news) fell 34 percent
to 0.23 pence after it warned of a sales shortfall in the first
half and said it could not 'at this stage determine whether
these missed sales will be secured in the second half'. Vicorp
said delays in the signing of some contracts had affected
trading and reported a 'general reduction in procurement' in its
sector - call centre software - at the end of last year.
However, it predicted 'further uptake in voice self-service' in
the economic downturn following some sales leads. The shares
were steady at 0.58 pence.
AFINION SALES LIFT FOR AXIS-SHIELD
Axis (Stockholm: AXIS.ST - news) -Shield, the medical diagnostics company, said it would
report revenue growth of about 26 percent to 84 million pounds
this year after sales of its Afinion testing equipment
increased. It has now shipped more than 4,000 of the machines,
which are used by GPs to screen blood samples for diabetes
indicators, removing the need for them to be sent for laboratory
analysis. The shares closed 2.5 pence down at 310 pence.
Prepared for Reuters by Durrants
Keywords: PRESS DIGEST Financial Times Jan 8
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