PRESS DIGEST - Financial Times - Jan 30

Financial Times

CAMERON ACCUSED OF RETREAT ON PROMISE TO CUT SPENDING EARLY

David Cameron faced accusations on Friday of watering down his pledge that a Conservative government would make early cuts to the UK's 178 billion pound deficit. The Conservative leader came under fire after he said savings this year would not be "particularly extensive". The remarks, made at the World Economic Forum in Davos, were quickly seized on by Labour ministers who accused him of indecision. Cameron's softer tone reflects anxiety among Conservative officials that aggressive deficit reduction rhetoric could play into Labour's hands if there are signs the UK is slipping into a double-dip recession.

ALLIANCE BOOTS ANNOUNCES CLOSURE OF FINAL-SALARY PENSION SCHEME

Alliance Boots [ABN.UL], the health and beauty retailer and pharmaceutical wholesaler, has signalled plans to shut its final salary pension scheme to existing members. The group said it was consulting staff on closing its UK defined benefit scheme to future accruals for its 15,000 active members. Executive chairman Stefano Pessina denies the move is a cost-cutting measure after its high-profile private-equity backed buy-out two and a half years ago.

BANKS AND INSURERS LINK UP TO TRADE LONGEVITY AND LIFE RISKS

In an effort to create a tradeable, liquid market in longevity and mortality risks, Deutsche Bank (DBKGn.DE), Royal Bank of Scotland (RBS.L) and JPMorgan have announced a link-up with Legal & General (LGEN.L), Axa (AXAF.PA), Edi Truell's Pension Corp, Prudential (PRU.L) and Swiss Re RUKN.VX. The move represents the first significant co-operative push to set up standardised products. It comes as UK corporate and pension schemes become more focused on longevity as the financial crisis made companies more aware of the extent of their pension liabilities, and the need to find ways to lower risks.

UK COAL LOSSES TO HIT 115 MILLION POUNDS

UK Coal's (UKC.L) stagnant share price was sent lower as the mining and property group said its losses would widen by 100 million pounds in 2009. The troubled company's shares fell 4.5 pence to 61.5 pence as it reduced estimates of full-year coal production for the second time since 2009. UK Coal now expects production to be roughly seven million tonnes, compared with 7.9 million tonnes last year. The company faced severe technical and geological problems in its underground mines in the second half of 2008.

ISE CHIEFS SAY IRISH OPACITY MUST BE STOPPED

According to Deirdre Somers, chief executive of the Irish Stock Exchange, Ireland has for too long accepted "opaque" appointments to some company boards and the running of companies as "personal fiefdoms". Somers said radical change in Ireland's corporate governance would never happen unless there was not only "clear government leadership" but also a break by firms with past practices.

INVESCO VICTORY IN OMEGA BATTLE

Omega Insurance (OIH.L), the Lloyd's of London insurer, is to make wholesale changes to its board after coming under pressure from Neil Woodford, fund manager of Invesco Perpetual, which holds a 29 per centstake. Omega said it would convene a meeting to vote on proposals to replace its chairman and other directors. John Coldman, former chairman of reinsurance broker Benfield, is on course to be appointed as Omega's chairman following the vote, which will be held in March.

NORTHRIDGE TO APPOINT DEBENHAMS CHAIRMAN

Debenhams (DEB.L), the department store operator, will appoint tobacco industry veteran Nigel Northridge as chairman to replace John Lovering. Northridge is chairman of bookmaker Paddy Power, and a non-executive director at Aggreko (AGGK.L), Inchcape (INCH.L) and Thomas Cook (TCG.L). He will become chairman of Debenhams, which operates 144 department stores in the UK and Ireland, on April 1. However, some analysts have questioned his level of retail experience. Its shares edged 0.15 pence to reach 67.5 pence.

TALKTALK TO LAUNCH TELEVISION AND MOBILE SERVICES

TalkTalk, Carphone Warehouse's (CPW.L) subsidiary, is planning to launch new television and mobile phone services as the telecoms group seeks to step up its challenge to rivals. Charles Dunstone, chief executive of Carphone Warehouse, outlined the plans on Friday as the company published documents about the demerger of its telecoms and retail interests. TalkTalk, which is due to gain a stock market listing in March, has identified TV and mobile services as new sources of growth. Its broadband rivals already have TV services, and the market is rapidly maturing.

NEW LOOK MOVES CLOSER TO LISTING

New Look, the fashion retailer taken private in 2004 by Permira and Apax Partners with founder Tom Singh, could set out its intention to float as early as next week. The move would fly in the face of doubts about its chances of listing in an initial public offering valuing it as high as 1.8 billion pounds. According to people familiar with the process, the feedback from investors had been positive. However, they also acknowledged that institutions would be looking to get the best price.

Prepared for Reuters by Durrants