PRESS DIGEST - Financial Times - Nov 11
MOVE TO PROTECT PENSIONS OF HIGH EARNERS BLOCKED
The High Court has rejected attempts by pension fund trustees to buy annuities that would cover additional benefits that are higher than those guaranteed by the Pensions Protection Fund (PPF). The court case centred on the trustees of a pension scheme whose sponsoring employer entered administration in 2004. Lawyers said the ruling meant that trustees would be unable to take riskier business investment decisions in the future on the basis that "if it all goes wrong the PPF will pick up the pieces".
MAGIC CIRCLE LEGAL BILLS UNDER FIRE
A survey of more than 40 legal firms to be published in Legal Week magazine has found that leading "Magic Circle" lawyers often fail to provide predictable and value-for-money bills. The poll of corporate clients ranks the five traditional prestige firms -- Clifford Chance, Linklaters, Freshfields Bruckhaus Deringer, Allen & Overy and Slaughter and May -- below average, highlighting increasing tensions over the issue of legal fees between big businesses and their solicitors. The findings reflect the rise in power of company in-house lawyers and cost-cutting measures triggered by the credit crunch.
TRADE DEFICIT FLAT AS DOMESTIC DEMAND GROWS
The Office of National Statistics has reported that the trade deficit increased marginally in the third quarter as import volumes rose faster than exports. The deficit shrank by 208 million pounds ($346.5 million) to 8.4 billion pounds in the three months to September, compared with a 1.2 billion pound decline in the second quarter. Import volumes increased at an almost 14 per cent annualised pace in the quarter, compared to a 10 percent rise in exports amid a pick-up in global trade.
CITY JOB VACANCIES RISE 15 PERCENT TO HIGHEST THIS YEAR
Financial recruitment specialist Morgan McKinley has revealed that new job opportunities in the City increased by 15 percent last month to the highest level this year. Employment vacancies rose to 4,410, compared with 3,843 in September. Although the October figure was 19 percent below the equivalent level a year ago, the drop was the smallest seen for 16 months. Andrew Evans, managing director of Morgan McKinley's financial services division, said that while progress during 2009 had been "slow and somewhat unsteady", employers' confidence in hiring had "slowly but surely" started to return.
TOP SHAREHOLDER'S STANCE UNCLEAR AS NAT EXPRESS LAUNCHES CASH CALL
National Express(NEX.L) will today launch a 370 million to 375 million pounds rights issue, a move which will draw a lie under weeks of speculation over the company's future. The rights issue will be fully underwritten, with Merrill Lynch and Morgan Stanley taking the lead and a syndicate of other institutions accounting for the balance. Shares will be issued at a 40 percent discount to the ex-rights price. There remains some uncertainty over whether the Cosmen family, which is the company's largest shareholder, will back the rights issue. The Cosmen family has reservations about the bus and rail operator's strategy and has been canvassing shareholders and investors over the past week, urging them to consider a merger with Stagecoach (SGC.L).
