PRESS DIGEST - Financial Times - June 26

Financial Times

BANKING ACT WILL BEEF UP FSA'S ROLE

The new Banking Act is expected to give the Financial Services Authority responsibility for maintaining financial stability, making the body partly responsible for a function that is presently part of the Bank of England's remit. The move follows criticism that the Bank of England did not do enough to warn of the impending banking crisis and comes at a time when Bank Governor Mervyn King is asking to be granted new powers to ensure stability. It is suggested the changes, which will be revealed in the government's white paper on banking, could add to tension between King and the Chancellor of the Exchequer.

REVENUE OFFERS SECOND AMNESTY FOR OFFSHORE FUNDS

High Street banking customers are being offered another chance to come clean about undisclosed foreign accounts as HM Revenue & Customs is to offer a second amnesty on offshore funds. The amnesty will coincide with an influx of information triggered by a blanket disclosure notice affecting offshore accounts across the entire banking industry and those who come forward will receive reduced penalties.

BILLIONS LOST TO INTERNET CRIME

Whitehall officials have revealed the extent of the threat posed by cyber crime, with the cost to the UK economy said to be "billions of pounds a year". The announcement came as the government unveiled its new cyber strategy, including plans for a new Cyber Security Operations Centre. The new facility will be attached to GCHQ, which will liaise with its U.S. counterpart, the National Security Council, after America set up a similar defence body. The CBI has said the test for business would be "whether the new bodies result in a genuinely more coordinated approach".

BA STAFF VOLUNTEER TO WORK FOR NO PAY

In response to an appeal from chief executive Willie Walsh, nearly 7,000 British Airways (BAY.L) staff have volunteered to take pay cuts, with around 800 volunteering to work for no pay. The pay cuts would take the form of unpaid-leave or part-time work and it is estimated the temporary changes would save BA around ten million pounds this year. The Unite union has criticised BA, saying that unfair pressure was placed on staff. The airline, which posted a record 401 million pound pre-tax loss in the year to March, is already locked in negotiations with staff over permanent changes to working practices.

BP CHAIRMAN-ELECT KEEN TO KEEP GREEN ISSUES AT HEART OF AGENDA

Carl-Henric Svanberg, BP's (BP.L) chairman-designate, has said environmental concerns will continue to be at the forefront of the oil group's agenda. Noting the growing world population, he is quoted as saying: "If we continue to do things in the world in the same way as we do today, it will not be so easy for this planet to cope with that. So we have to find more intelligent solutions and the energy industry is in the centre of that." Although more active than many of its peers, BP has been criticised by green campaigners for failing to live up to its "beyond petroleum" slogan.

WILLIAM HILL CLOSER TO MOVING ONLINE TRADE OFFSHORE

William Hill (WMH.L) seems more likely to move its online and telephone gambling services offshore, after chief executive Ralph Topping told the FT that the bookmaker faced increased competition from foreign rivals enjoying less prohibitive tax regimes. The admission reflects growing concern in the racing industry that William Hill could lead an exodus of UK betting firms. The group has already closed 20 UK shops this year and Topping has previously referred to relocation as a "live issue". The Culture Department is said to be reviewing remote gambling regulations in a bid to level the playing field between UK firms and their foreign counterparts.

COSTAIN ORDER BOOK SURGES ON PUBLIC SECTOR WINS

Construction group Costain (COSG.L) has benefited from a 20 percent increase in its forward order book to 2.4 billion pounds after securing a series of public sector contracts. The company's deals since the beginning of the year include a 397 million pound contract with the Greater Manchester Waste Disposal Authority and a 200 million pound road maintenance contract for the Highways Agency. Costain said it continues to profit from its "strategic focus on targeted blue chip customers in chosen sectors". The public sector accounts for 80 percent of Costain's revenue.

U.S. ACQUISITION ALLSCRIPTS HELPS TO BOLSTER MISYS