PRESS DIGEST - Financial Times - March 17

The Financial Times

MORE THAN ONE MILLION JOBS TO GO

About 1.3 million British jobs will be lost in the next two years, Oxford Economics, the consultancy, has forecast. The North and Midlands are expected to feel the pain as steeply as London. The leading economic forecaster said the capital will still suffer the most, with a 3.4 percent drop in output, followed closely by the West Midlands with a 3.3 percent drop. Wales and the north of England are not expected to be far behind, posting 3.2 percent and three percent falls respectively. The consultancy said London and the Southeast will regain pre-crisis employment levels within five years but that the West Midlands, Wales and the north of England could take more than a decade to recover.

HALF OF CHARITIES SUFFER FROM DOWNTURN

A new poll of 1,000 charities is to reveal on Tuesday that more than half of the sector's organisations have been hit by the financial downturn. The Charity Commission, the sector's watchdog, is to report that 52 percent of the charities surveyed suffered tougher times in February compared with 38 percent only five months earlier, while 30 percent were found to be experiencing a decline in income as a result of the financial crisis. Dame Suzi Leather, who chairs the Commission, described the impact of the recession on charities as "widening and deepening", adding that some organisations "still face that double whammy of a drop in income as well as an increased demand for services".

HOME OWNERS FORCED TO BEAR SHARP RENT FALL

Gumtree's latest rental index has unveiled a 2.2 percent average drop in rents since the beginning of 2009 as home owners unable to sell their properties have been forced to rent them out. The website said that more than 50 percent of landlords surveyed have only started renting out houses in the past two years, adding that areas with bigger numbers of buy-to-let properties, including Oxford and Glasgow, were the hardest hit. Gumtree's report comes after Savills said on Monday it could take longer than anticipated for house prices to recover.

GIRDERS DISMANTLED: BOARD DYNASTY OVER AT IRN-BRU MAKER

Robin Barr, chairman of AG Barr (BAG.L) for 31 years, is stepping out from the business that his great-grandfather founded 134 years ago, leaving the management of Scotland's most famous soft drinks maker entirely to non-family members for the first time. Ronnie Hanna, a non-executive director for five years, will take over Barr's responsibilities. AG Barr, which has become very popular in Scotland following the launch of its Irn-Bru brand, produces Tizer, Strathmore water and Orangina.

AVIVA MOVES TO CURB SHORT-SELLING ACTIVITY

Aviva (AV.L) is weighing up stopping stock lending to hedge funds, in a move that indicates the UK's biggest insurer's belief that it has been targeted by short sellers and that the recent plunges in its share price were related to aggressive moves by hedge funds. Finance director Philip Scott, who on March 6 sounded out 20 top European insurers about a temporary withdrawal from equity stock lending, said: "The days when insurers report (results) suddenly become days when everyone is volatile." He said businesses were particularly in danger from investors taking short positions at the beginning of the day and closing them off during the day.

BUSES RESILIENT AT STAGECOACH, RAIL SUFFERS

Stagecoach (SGC.L), the transport group, has conceded its rail operations are not "immune to the impact of the current tough economic climate" as it unveiled on Monday a 6.7 percent increase in revenue growth, against an 8.2 percent rise in the first half to October 31. Analysts said the figures meant that rail passenger growth had dropped five percent in the second half so far, as the decline in GDP as well as rising unemployment were taking a toll on train operators. In an interim management statement, the company, which has launched an aggressive cost-cutting campaign, pledged to maximise revenue and squeeze operations further. Stagecoach said its overall financial position remained robust with its bus division holding up well.

PROPERTY WRITEDOWNS FORCE FORTH INTO THE RED

Underlying operating port profits at Forth Ports (FPT.L) reached a record 47.6 million pounds on revenue of 184 million pounds in 2008, compared to 38.7 million pounds on 159 million pounds the year before, the company has said. However, a net 222 million pounds of write-offs in the group's property portfolio plunged it into a pre-tax loss of 30.7 million pounds on 186 million pounds revenue. The company planned a significant dividend cut, prompted by worries over future property values combined with concerns about the UK economic climate. The suggested final will be 12 pence, to give a full-year payout of 28.6 pence, down from 47.7 pence.

SHIPBROKER WARNS OF CHALLENGE FROM GLOBAL RECESSION