PRESS DIGEST - British Sunday business press March 21

The Sunday Telegraph

NORMAN: UK FACES 'NATIONAL CRISIS'

Archie Norman, the chairman of broadcaster ITV (ITV.L), has said that the UK faces an economic "national crisis" more severe than the situation faced at the end of the 1970s by Margaret Thatcher. In his first interview since becoming the company's chairman, Norman also warned that slower growth and lower employment would last for years if the crisis was not confronted quickly. Calling for cuts to the BBC's 3.7 billion pound annual budget, he added that regulations on advertising pricing were threatening the future of commercial broadcasting by ITV, Channel 4 and Five.

SCHRODERS PRESSES GULFSANDS

Fund manager Schroders (SDR.L) is urging Gulfsands Petroleum to open discussions with Indian Oil Corporation (IOC), after India's largest company by revenue tabled an unsolicited 400 million pound takeover bid last week. Schroders is the London-listed oil explorer's largest shareholder, with a 21 per cent holding spread across three of its funds, and Andy Brough, who manages one of the funds, has previously said he would be interested in selling Gulfsands above 300 pence. Gulfsands, whose next audited reserves report is due at the end of the month, has rejected the approach, IOC's third in the last year, and Brough suggested that one reason its management might hold back from talks would be if oil reserves were higher than previously thought.

PEARL CLOSE TO FULL LSE LISTING

According to a source close to the situation, Pearl Group is working on a full London listing in the next three months. The insurance group, which will rebrand as Phoenix Group prior to the listing, is expected to lose its primary listing on the Amsterdam-based Euronext market over the course of next year. The group is also thought to be close to resolving a dispute with bondholders, including Aviva (AV.L), Axa (AXAF.PA) and Fidelity, who had threatened to block a potential fund-raising by telling their equity departments not to buy shares.

The Independent on Sunday

ANGER AT LLOYDS OVER DANIELS'S PROFITS CONFUSION

Fund managers have criticised Lloyds Banking Group (LLOY.L) chief executive Eric Daniels over his recent comments on the bank's finances. At last month's results presentation, Daniels refused to say if Lloyds would make a profit this year. However, Daniels announced last week that the bank would return to profit in 2010, meaning shares jumped over eight per cent on Friday. One analyst who sold Lloyds shares before the increase said Daniels "should have been more upbeat" at the presentation. Lloyds may sell all or part of its 60 per cent stake in asset manager St James's Place Capital (SJP.L) this week.

NEXT PROFITS TO PUT RIVALS IN THE SHADE

Clothes retailer Next (NXT.L) is likely to reveal that it has beaten many of its high street rivals when it announces full year results on Wednesday. Pre-tax profits are predicted to have risen by 66 million pounds to 635 million pounds, with profits at Next's retail arm up about 12.4 per cent to 325 million pounds. Next, led by chief executive Simon Wolfson, has just become the 27th British sponsor of the London 2012 Olympics. Elsewhere, analysts forecast a tough year for supermarket Sainsbury (SBRY.L), due to give a fourth-quarter trading update on Thursday.

PRICE IS NOT RIGHT AS CENKOS ENDS TAKEOVER TALKS WITH JM FINN

Following failed approaches for both Close Brothers (CBRO.L) and Ardent Partners in the last three years, City brokerage Cenkos is understood to have been unsuccessful in its recent attempt to acquire JM Finn. It is thought that the independent broking and fund management group was unimpressed by the price being offered by Cenkos and chose to end discussions. The sector is set for a long-anticipated wave of consolidation, with interdealer broker Prebon Tullett (TLPR.L) said to be in takeover talks with an unnamed party.