PRESS DIGEST - Financial Times - Aug 18

ENDLESS SUMMER SALES MASK LOWER MARKDOWNS

Figures from TNS Worldpanel indicate that there is a much lower level of discounting in stores than there was last year. While discounting has become more spread through the year, the Office for National Statistics says that there have been fewer overall price cuts in the clothing, footwear, furniture, household equipment and maintenance sectors.

For example, in women's outerwear, prices last July were 6.6 lower than the previous month, this year they were only 5 per cent lower.

FAMILIES '13 POUNDS A WEEK WORSE OFF'

Supermarket chain Asda is claiming that rising costs are making British families 13 pounds a week worse off. Asda says that rising food, utility, housing and transport prices have cut families' disposable incomes by nine per cent over the past year, leaving them with just 130 pounds a week to spend on entertainment and recreation.

HEDGING BECOMES FOOD AND DRINK TO THE MAKERS OF CONSUMER.

Consumer goods and food companies are overhauling the way in which they purchase and hedge commodities after having been affected by increases in the prices of raw materials.

For the first time, companies are starting to use commodity trading houses to hire traders and are buying complex financial trading systems.

This move suggests that executives have realised that commodity markets are undergoing a structural change driven by rising demand from emerging markets.

BROWN URGED TO INCREASE TAX ON RICHEST

The health minister Ivan Lewis has called on Gordon Brown to increase the tax on higher earners in order to protect the middle class.

Mr Lewis said that the only way Labour could win the next election was by protecting the living standards of the 'mainstream majority', if this necessitated a higher tax on the wealthy - those earning over 250,000 pounds - then so be it.

A 'windfall tax, enhanced government support for mortgages, a stamp duty holiday and higher taxes for the highest earners may be necessary and popular' to help 'those people who work long hours for their two holidays a year, leisure club membership (and) meals out,' he said.

GROUPS REIN IN NON-EXECS PAY RISES

An annual survey conducted by PwC reveals that pay rises for non-executive directors slowed again last year even though companies expected them to do more for their fees.

The consultancy reported that fees rose by 15.6 per cent over the past year compared to 16.7 in 2006-07, and 25 per cent in 2005-06. Median average annual fees for a FTSE 100 non-executive chairman stood at 313,000 pounds and 65,000 pounds for a non-executive director.