scotsman.com's Scottish Business Briefing
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BANKING & INSURANCE
Royal's US employees make political donations
Fifteen employees of a Royal Bank of Scotland US subsidiary are reported to have given $35,000 (£21,000) to Stamford mayor Dannel Malloy's governorship campaign after the bank announced plans to move its $400 million US headquarters to the city (The Herald). RBS has dismissed suggestions of impropriety instead claiming its employees are exercising their democratic rights. "This is a decision they have taken as individuals," claimed an RBS spokeswoman. "Royal Bank of Scotland, of course, maintains its position of neutrality and makes no donations to political parties or political campaigns." For RBS to relocate to Stamford it requires approvals from Democrat-controlled city boards. Malloy is hoping to get the Democratic party's nomination to run for governor of Connecticut later this year. He claims his support for the RBS headquarters is "completely unrelated" to the donations.
Read all today's banking news from scotsman.com
ECONOMY
Unemployment peaks since last recession
The sharpest rise in unemployment since the last recession has boosted the number of jobless to a three-year high (The Times). The jobless count reached 1.53 million, or an unemployment rate of 5%. The unemployment level soared by 110,000 in the three months to the end of November, the biggest such rise since August 1993. The Scottish jobless total hit 83,628 in December - nearly 1,000 up on the previous month (Aberdeen Press & Journal). Other figures out yesterday show that the number of people in work in Scotland has also risen. There are 2,469,000 people employed in Scotland which is 200,000 more than nine years ago.
Scottish Enterprise in over-spend warning
Officials across the Scottish Enterprise (SE) network have been told to slash spending plans by up to 15% after its finance directors discovered it was on course for a £100 million overspend (The Scotsman). One of the SE's flagship projects already to have had the cost spotlight on it is the £45 million a year Intermediate Technology Institutes. That project has already come under fire as three of the four chief executives left amid rumours of a financial crisis. Reorganisation to keep spending on track could see the 12 local enterprise companies (LECs) stripped of company status.
Stirling women get "jobs for the boys"
Twelve unemployed women in Stirling are to be given the opportunity to take up jobs in traditionally male-dominated industries (Aberdeen Press & Journal). The Raploch Regeneration Project is offering women "trade tasters" in carpentry and joinery, plumbing, and painting and decorating in order to gain practical experience with local employers. It could result in full-time employment.
Money saved in Glasgow will stay in Glasgow
Money saved in a radical shake-up of incapacity benefit will be reinvested into helping more people off benefits and into work, Glasgow MPs have been told (The Herald). Work and Pensions Secretary John Hutton told a group of Glasgow MPs that the city, where one in five adults has been described as too sick to work, faced an "exceptional challenge" in placing the long-term unemployed into full-time jobs. Any money saved in Glasgow will be spent in the city on targeted help for those with specific barriers to finding work.
Read all today's economics news from scotsman.com
ENERGY & UTILITES
ScottishPower a Gazprom red herring
Russian utility giant Gazprom's hints that it was interested in a ScottishPower buyout have been claimed as a red herring with Centrica the real target (The Scotsman). Shares in the gas provider went up 6.5p to 288p as market sources claimed Centrica was a more likely target. ScottishPower's shares were also up by 4.5p to 520.5p. Gazprom claims it wants to supply 20% of the UK's wholesale gas market by 2015. Centrica has been the subject of merger speculation for some time as it attempts to offset its under pressure retail business with more profitable upstream assets. Gazprom's deputy chairman Alexander Medvedev claims the firm's credit rating is so good banks were happy to lend money for acquisitions (The Herald).
Blair to hear North Sea tax concerns
Prime Minister Tony Blair has agreed to meet a north east MP and hear at first hand how the North Sea oil and gas industry is being hampered by the new tax on its production companies (Aberdeen Press & Journal). West Aberdeenshire and Kincardine MP Sir Robert Smith will travel to Downing Street with a delegation of constituents and industry representatives. "I want Mr Blair to hear first hand from the industry itself how the Government can make full use of the nation's oil and gas wealth," claims Sir Robert. "The meeting will be an opportunity to impress on Mr Blair that he needs to look at how we can encourage more investment that will ensure we make full use of the nation's oil and gas wealth."
Malaysians tap into British expertise
Ten British companies, most of them Aberdeen-based, are taking part in a seminar aimed at helping Malaysia develop its recently discovered deepwater fields (Aberdeen Press & Journal). The trip is being led by Subsea UK and has brought together operators, contractors, suppliers and small-niche technology firms. The seminar in Kuala Lumpur is targeted specifically at state-owned oil firm Petronas and more than 100 of its employees will attend. Companies presenting in Kuala Lumpur include Subsea 7, MCS, DES Operations, Acteon, Expro Group and ERT Scotland.
Read all today's energy and utilities news from scotsman.com
FOOD, DRINK & AGRICULTURE
Aberdeen Angus under the hammer
A leading herd of north-east Aberdeen Angus have gone under the hammer at Thainstone Centre, Inverurie (Aberdeen Press & Journal). The dispersal of the Inchmarnoch herd run by Neil Williams of Ballaterach, Dinnet, Aboyne, was to make way for sheep production to become the number-one priority on the 2,000 acre hill farm. The sale leader, at 1,400gn was the registered in-calf cow Inchmarnoch Edwina Z027. Also taking place at the sale was a special sale of commercial beef breeding cattle. A Limousin heifer with Limousin calf at foot sold for £1,300. A Belgian Blue heifer with Limousin calf was sold for £1,000.
Coca-Cola bursts bubble in East Kilbride
Coca-Cola has blamed health conscious consumers for their decision to axe 58 jobs at its East Kilbride bottling plant (Daily Record). Managers and shop floor staff face redundancy as part of a drive to shed 170 jobs across the UK. Coca-Cola Enterprises' Jim Fox claimed growth had not been as the drinks giant had hoped. "The business environment has been very challenging as trends show a move among consumers towards health and well-being." Coca-Cola claims workers at a factory in Aberdeen would not be affected by the cuts (BBC Scotland Online).
Read all today's food, drink and agriculture news from scotsman.com
INDUSTRY
Weir Group posts upbeat news
Buoyant mining and power generation industries have helped Glasgow's Weir Group bounce back from a restructuring plan (The Scotsman). The firm, which axed 300 jobs last year, has announced full-year results will come in at the top end of expectations. Shares in the company soared 8.8% on the upbeat news, closing up 35p at 433p. The group said second-half turnover would be 10% up on the same period a year ago, while profits for the whole of 2005 would be close to £62 million. Chief executive Mark Selway claims that the group is confident it can take advantage of any UK government decision to build new nuclear power stations, saying it is well placed to grab work on both decommissioning and construction contracts.
Balfour Beatty pulls out of Mowlem contest
Construction group Carillion won the bid battle for Mowlem last night after rival contractor Balfour Beatty withdrew from the contest (The Independent). Carillion's offer of 220p per share values Mowlem at £313 million and is due to be voted on by shareholders in the two companies over the next fortnight. Carillion claims that if it completes the deal it will sell Scots-founded Balfour two Mowlem units - US construction management business Charter and Mowlem's UK rail products maker Edgar Allen - for £20 million (The Daily Telegraph).
Read all today's industry news from scotsman.com
MEDIA & LEISURE
Desmond scores £8 million more shares
Celtic Football Club's majority shareholder Dermot Desmond has increased his stake in the club to 40.45% after underwriting the latest share issue by £8 million (The Herald). The Irish businessman claims he has no inclination to instigate an outright takeover despite raising his holding from 29.9%. Celtic announced the £15 million share issue in October to improve the club's infrastructure, including a new training facility at Lennoxtown.
Read all today's media and leisure news from scotsman.com
RETAIL
Woolworths posts profits warning despite upbeat Christmas
Relief that Woolworths enjoyed a healthy Christmas was overshadowed yesterday by a warning of a double profits blow (Daily Record). The retailer said demand for products such as toys, computer games and MP3 players helped boost sales in December and a drive towards full-price sales also boosted the firm. However, shares fell 10% as Woolworths warned that a contract supplying CDs and DVDs to Tesco may not be renewed when it runs out next year. It also claimed new accounting rules could affect rental payments and profits could be expected to be about £17 million lower for this financial year.
Read all today's retail news from scotsman.com
TECHNOLOGY
Jobs get a leg up on Lewis
Western Isles employment has been given a shot in the arm with news that a new investor has taken over a high-tech factory and will re-employ nine people who lost their jobs last summer (Aberdeen Press & Journal). More jobs are expected to be created after Equatec confirmed it would reopen a vacant pharmaceutical facility at Breasclete on Lewis. The firm was formed by sister firm Equazen to advance research in the booming commercial area of fish oils. It intends to manufacture fatty acids and investigate new commercial products for omega-3 oils. The previous occupant of the Callanish facility was German pharmaceutical firm Biolitec, which left in July.
Read all today's technology news from scotsman.com
PROPERTY
Ryden house sits for Kenmore
Kenmore Property Group has appointed property specialist Ryden as regional managing agent for its entire £130 million Scottish portfolio (Aberdeen Press & Journal). The collection of all rent, service charges and insurance premiums has also been outsourced by Kenmore to Ryden. Under the agreement Ryden will manage about 30 properties in Scotland, with more than 150 tenants and a total annual rent of more than £8 million.