PRESS DIGEST - British business press - July 20

The Times

FEARFUL WORKFORCE CLAIMS FEWER SICK DAYS

According to research by the Chartered Institute of Personnel and Development, workers in the private sector are taking less time off sick during the recession amid fears too much time off may cost them their job. The institute's latest Absence Management Survey, to be released on Monday, found private sector workers took an average of 6.4 days off due to illness last year, down from 7.2 days in 2007. The figures for the private sector stand in sharp contrast to those of the public sector, who have an average figure of 9.6 days off sick per year, slightly down on 9.8 days for the previous year.

SPORTS DIRECT INCREASES PRESSURE OVER JJB LOAN

Mike Ashley, chief executive of the Sportswear retailer Sports Direct(SPD.L), has published a letter he believes shows a personal loan he made to Sir David Jones, the executive chairman of rival retailer JJB, was made after Jones's appointment in October 2007. The issue of the loan raises questions over a potential conflict of interests as the rival companies also have a commercial relationship. A spokesperson for JJB denied Ashley's claims saying, "This is a fairly obvious attempt to reheat a dead issue. We have ample evidence that the loan was initiated before Sir David became a director and have made Mike Ashley's lawyers aware of it all". Ashley is passing the letter to the Financial Services Authority.

CLIFFORD TAKES UP A CHALLENGE

Public relations agent Max Clifford has been hired by Your Property Club Group to spearhead a marketing campaign. Brett Alegre-Wood, chairman of the buy-to-let property club, said he had enlisted the services of Mr Clifford because: "The market is coming back around. I don't think this is total recovery, but we are heading back in". Alegre-Wood said for long-term investors property was even more attractive now values had fallen by as much as 50 per cent on new-builds.

The Daily Telegraph

WEST COAST PROPERTY LOSSES NOW TOP 250 MILLION POUND

Sir Tom Hunter's investment vehicles, West Coast Capital Trading and West Coast Capital investments, made a combined loss of 253 million pounds last year. Both holding companies, controlling West Coast's retail and property investments, have been hit by the credit crunch, forcing write-downs and even a collapse on some investments. Hunter said he was now focused in rebuilding the business and was taking a five-year view.

HAVE I GOT NEWS FOR YOU AS HAT TRICK IS WARNED OVER ITS FUTURE

Hat Trick productions has been warned that a six million pound loan "may cast significant doubt" over the future of the company. The company behind hit shows Have I Got News for You and Father Ted owe the money to private equity group August Equity, which in turn owns a 45 per cent stake in the production company. Auditors Deloitte highlighted the loan as a cause for concern in its accounts, as it can be called for payment at any moment. Hat Trick said it was confident it could raise the necessary funds if the loan did need to be repaid.

FRIENDS PROVIDENT AND RESOLUTION TO OPEN "PEACE TALKS"

Negotiations between Resolution and Friends ProvidentFP.L, due to take place on Monday, aim to settle differences between the two companies on crucial incentive, structural and shareholder issues. Problems persist over such matters as Resolution's proposed top management remuneration programme and the role of Colin Cowdery, owner of Resolution, in the combined business. It is also anticipated that Resolution will improve on its 1.6 billion pound all-share offer for Friends with a cash element and dividend commitment.

The Independent

BARCLAYS' TOP DEAL MAKER JENKINS TO QUIT THE BANK

The man largely credited with rescuing Barclays(BARC.L) from needing a government bailout last year is planning to leave the bank. Roger Jenkins engineered a deal with the Qatari Investment Authority that saw the Doha-based sovereign wealth fund inject over seven billion pounds into Barclays, shoring up its financial position and saving it from the partial nationalisation experienced by Royal Bank of Scotland(RBS.L) and Lloyds Banking Group(LLOY.L). Jenkins is expected to set up an advisory business for investors, as well as taking on some more work for Barclays as an outside consultant.

ROCK CHIEF SANDLER LINKED TO LLOYDS POST

Another name has been added to the list of possible candidates for the chairmanship of Lloyds Banking Group(LLOY.L), that of the chairman of Northern RockNRK.L, Ron Sandler. Speculation has been occurring as to the group's next chairman since Sir Victor Blank announced his departure. Other prominent names said to be on the shortlist are Sir Win Bischoff, former chairman of Citigroup, and Chris Gibson-Smith, chairman of the London Stock Exchange(LSE.L) group.

GSK TO GET SWINE FLU VACCINE SALES BOOST

The second-quarter results of the pharmaceutical company GlaxoSmithKline(GSK.L) are expected to show a boost of around 1.3 billion pounds, from the sale of its swine flu vaccine, when they are released on Wednesday. The company received a 71 million dollar order for its Relenza influenza treatment from the US government, coupled with interest from other governments who are also ordering large amounts of the vaccine. Three GSK factories have been recommissioned especially for the pandemic. Analysts predict that second-quarter revenues will rise by 14 per cent to 6.7 billion pounds.

The Guardian

FIVE PER CENT RISES EXPECTED IN NEW ARGOS CATALOGUE.

Argos is to launch a new catalogue with prices likely to be five per cent higher to account for the sterling's decline against the dollar. Despite the pound recovering some ground against the dollar in recent weeks, it remains 20 per cent below its level of a year ago, pushing up the price of all goods imported from China and the Far East. Operating profits at the retailer were down 19 per cent last year as margins dipped by 1.5 percentage points and, last month, like-for-like sales were down 2.8 per cent on last year.

TORIES OUTLINE PLANS FOR REGULATOR WITH 'CLOUT'

In a Conservative white paper on banking reform, George Osborne, the shadow chancellor, is to announce proposals for the abolishment of the Financial Services Authority and divide its responsibilities between a beefed-up Bank of England and a new consumer protection agency. The Tories will also propose a review of the competition implications of the Lloyds(LLOY.L)/HBOS merger and insist that the high street banks that engage in high-risk investment banking should pay a penalty in the form of "much higher capital requirements".

RELEASE OF LETTER FUELS ASHLEY LOAN ROW

The furore over a 1.5 million pound loan from Mike Ashley, boss of Sports Direct(SPD.L), to Sir David Jones, the chairman of rival sports retailer JJB, escalated over the weekend with the emergence of a letter signed by both men which seems to support Ashley's version of events. The loan is controversial due to a possible conflict of interest since JJB and Sports Direct International are competitors and the latter supplies JJB with about 30 million pound of stock a year.

Prepared for Reuters by Durrants