PRESS DIGEST - Financial Times - Aug 10

Financial Times

HMV CHIEF RULED OUT OF ITV RACE

Although he has been hotly tipped as a frontrunner for the job of ITV (ITV.L) chief executive, HMV's (HMV.L) Simon Fox has vowed to stay on as head of the music and DVD retailer, with a view to see out the company's three-year restructuring scheme, currently in its second year. HMV's recent turnaround has been attributed to Fox, whose tenure as chief executive began in 2006. With sales down 16 percent at the start of 2007, the retailer has managed to reverse the trend, reporting a 14 percent rise in Q4 2008. With Fox out of the picture, the favourite for the top job at ITV is likely to be Tony Ball, the former BSkyB chief executive. Ball is also a non-executive director with BT and the chairman of Kabel Deutschland.

FSA CHIEF REBUKES MINISTERS OVER BANK BONUSES

It should be up to politicians and not regulators to decide whether bankers' bonuses need to be restricted, according to Financial Services Authority head Hector Sants. As the public's opinion of City bonus culture remains outraged, with 80 percent of 1,200 voters in a PoliticsHome survey regarding the restoration of big bonuses in a negative light. Sants said the FSA should not have to make judgments on individual bankers' pay, but instead monitor the total pay bill of institutions.

HOPES RISE FOR FINANCIAL SECTOR

For the first time since the start of 2008, there has been a 10 percent rise in financial companies seeking UK regulatory authorisation during the second-quarter. Of the 282 new registrants, independent financial advisers comprised the single largest group seeking Financial Services Authority regulation, closely followed by financial advisory services such as corporate finance boutiques, fund managers and private equity shops. Responding to the figures, compiled by IMAS Corporate Advisers, some optimistic analysts are hoping the data signals a bounce-back from the financial crisis. However, with the number of firms cancelling their FSA authorisation standing at 631, IMAS's Bruce McIntyre is more cautious, saying: "It's too strong to say that we have green shoots but it is obviously a step in the right direction."

BLACKSTONE EYES HILTON DEBT SHAKE-UP

Blackstone is weighing up a number of possibilities for a debt restructuring of hotel group Hilton. With debt repayment deadlines set at four years, the private equity group is keen to change Hilton's capital structure, exploring aspects such as debt-for-equity swaps. However, asset sales have been ruled out. Blackstone bought Hilton for 26 billion dollars in 2007, although the value of the holding is thought to have been written down by somewhere in the region of 50 percent since the purchase. The hotel industry has been hit particularly hard during the economic downturn as both private and corporate customers look to make savings.

COMPANIES SCRAMBLE TO TACKLE CORRUPTION

An Ipsos Mori survey commissioned by KPMG has found four out of ten listed companies have started internal corruption investigations in the past three years, compared with 27 percent in 2007. Cross-border investigations by the U.S. Securities and Exchange Commission and Department of Justice were cited as reasons for the rise in internal inquiriesl.

DEUTSCHE BAHN RULES OUT NATEX BID

Chiltern Railways' owner, the German state-owned rail operator Deutsche Bahn [DBN.UL], has ruled out a bid for National Express (NEX.L), suggesting instead that it may look into competing for rail franchise tenders as they become available. The group is currently bidding for the contract to run the Tyne and Wear Metro alongside rival bidders Serco-Ned, MTR and the Tyne and Wear passenger transport executive Nexus. The franchise for the Metro, which is due for a 300 million pound upgrade and was the best-performing rail operator in the UK last year, will last between seven and nine years, commencing in April 2010.

MINNOWS PROVE UPBEAT ON STAFFING

In spite of the economic downturn, a survey conducted by Vantis reveals about half of UK SMEs expect to maintain the same level of staff next year. The findings were based on the responses of 100 UK owner-managed companies employing an average of 100 staff. Just eight percent of respondents believe they will have to cut employee numbers, while 26 percent believe they will require further staff during 2010. Tempering the upbeat mood of the survey, 78 percent suggested their margins would either remain the same or would fall. Cash flow was shown to be the most common concern among small businesses.

EDINBURGH OUTPERFORMS RIVAL CITIES

Despite its two biggest employers, Royal Bank of Scotland (RBS.L) and HBOS HAL_pa.L, being embroiled in the financial crisis, Edinburgh is economically outperforming other UK cities during the recession. Its house prices, city-centre footfall and new businesses being incorporated were better than other similar-sized UK cities, according to city councillor Tom Buchanan, with sectors such as tourism and education remaining strong. In spite of unemployment for the year up to June rising by 77 percent, Edinburgh's jobless rate of 3.1 percent remains below the Scottish overall rate of four percent and 4.1 percent for the whole of the UK. The Edinburgh Chamber of Commerce has also launched Skillsbank, an online database to match the skills and experience of redundant professionals with firms needing managerial support.

Prepared for Reuters by Durrants