PRESS DIGEST - Financial Times - July 14

Financial Times

DARLING LAUNCHES GROUP TO BOLSTER CITY'S GLOBAL EDGE

Chancellor of the Exchequer Alistair Darling will co-chair a new financial services global competitiveness group with Citigroup chairman Sir Win Bischoff as part of a five-group scheme aimed at bolstering the Treasury's links with the City and ensuring the capital retains its status as a leading international financial centre. The group will hold monthly meetings to analyse trends in the international financial services sector, examining issues like the effect of the subprime crisis and the rise of financial hubs such as Dubai and Mumbai. A number of leading financial services executives will collaborate with ministers, regulators and civil servants in the five working teams, focusing on competitiveness, professional services and capital-raising.

MORTGAGE REVIEW WILL BRING NO JOY

The interim Treasury mortgage review, which is to be published within weeks, is not expected to bring consolation to the beleaguered sector, as it will only assess the problems of the market and will not proceed to any recommendations. But Treasury officials have said Sir James Crosby, who is spearheading the study, is likely to make specific proposals in the autumn pre-Budget report. His autumn recommendations are likely to become part of a wider strategy.

TASKFORCE TO BOOST APPRENTICESHIPS

Ministers have launched the London Apprenticeship Taskforce in a bid to boost weak mid-level skills in the capital. It will include one person each from the Corporation of London and a City business, as well as other employers, local government representatives and education leaders. According to skills minister David Lammy, who will chair the new taskforce, London has fewer apprenticeships compared to any other part of England, despite being the country's financial powerhouse. Helen Hill, policy director at the London Chamber of Commerce, said:: "It is vital that apprenticeships are in sectors where the workers are actually needed (in order to) match the economic needs of the capital."

DAWNAY DAY'S THIRD ASSET SALE

Dawnay Day, the financial group owned by Guy Naggar and Peter Klimt, is looking to offload its investment banking division in a bid to raise cash after a series of heavy losses on investments. The group has brought in Alan Bloom, head of Ernst & Young, to restructure parts of its portfolio of holdings, including investments in financial services and real estate. Sources close to Dawnay Day have reiterated that none of the group's ventures are in administration, yet a growing number of companies and holdings are expected to be put up for sale amid fears the group is the latest victim of the credit crunch.

ENDEMOL REFUSES TO RULE OUT ITV BID

John de Mol, co-founder of Endemol EDMLFEUR.PZ, has not ruled out a bid for ITV (ITV.L), the UK network which owns one of Europe's three largest production houses and its free-to-air channels. He said: "I wouldn't want to exclude it. (But) the alternatives are that we just follow the strategy we (have) had for 12 years." A large number of groups are believed to be interested in ITV after the network posted a sharp fall in its share price. De Mol said TV production companies should opt for the private road in order to avoid the "listed disease" of being misunderstood by investors.

REED SEEKS DAVIS REPLACEMENT

Publishing company Reed Elsevier (REL.L) (ELSN.AS) has hired headhunter Anna Mann to search for a replacement for chief executive Sir Crispin Davis, who is due to retire next year. Mann is examining both internal and external candidates, with chairman Jan Hommen heading the nominations committee. Sir Crispin has transformed Reed during his near decade-long tenure, changing its corporate structure and reinventing it as a purveyor of online information for professionals. The company said on Sunday it "was determined to ensure a smooth and professional succession plan".

HOUSING INDUSTRY BRACED FOR EXPECTED WOLSELEY WARNING

Wolseley (WOS.L), the building, heating, and plumbing supplier, is expected to issue some downbeat news this week, which could include an announcement of future job cuts. The company has already shed around 10 percent of its workforce over the past 18 months and its annual profit estimates vary wildly due to its volatile trading. In May, Wolseley warned of difficult trading and has since set out plans for cost-cutting measures that will cost 50 million pounds. Some analysts have said the company may require a rights issue if trading continues to worsen.

LLOYDS TSB'S PRIVATE EQUITY ARM SET TO EXPAND IN ASIA