PRESS DIGEST - Financial Times - April 7

The Financial Times

DARLING CALLS FOR SWIFT ACTION TO TACKLE MARKET TURMOIL

Alistair Darling will send an open letter to fellow finance ministers ahead of the Group of Seven meeting in Washington this weekend calling for "a clear and detailed plan of action" for dealing with turmoil in the global financial markets. "The problems in financial markets have intensified and spread globally to create one of the strongest financial shocks for decades," he will say, before underlining the importance of "rapid implementation" of a raft of recommendations to make the international financial system more resilient.

REPORT FUELS ROW OVER ENDING OF TEN PENCE TAX RATE

A damning report by MPs is set to enflame the row over the abolition of the ten pence income tax rate, saying it is "unreasonable" for the burden of tax simplification and alleviating child poverty to be put onto relatively poor, childless individuals. John McFall, chairman of the Commons' Treasury select committee, says: "While tax simplification is a laudable aim, it seems strange that the abolition of the 10 pence starting rate of income tax disadvantages mainly low income households." Under the new regime, about 800,000 childless people with incomes less than 18,500 pounds will lose out by an average of 145 pence a week.

PUBLICITY FEARS OVER CORPORATE KILLING LAW

A survey published on Monday by leading law firm Norton Rose reveals that companies prosecuted under new corporate manslaughter rules fear bad publicity almost as much as fines that could amount to ten percent of annual sales. Norton Rose surveyed about 90 of its clients and 42 percent said they believed publicity orders - forcing companies to detail their crime to investors, suppliers or the general public - were the biggest deterrent under the new regime, only slightly less than the 45 percent who believed that fines were.

EADS ENTERS SURREY SATELLITE ORBIT

Aerospace industry sources have confirmed that EADS (EAD.PA), the European defence group, has emerged as a potential buyer of Suratellite Technology, one of the most successful spin-outs from Surrey University and the world's leading manufacturer of small satellites. The university still holds an 85 percent stake and a sale would mean a lucrative pay-day for Surrey and some of its scientists, including Professor Sir Martin Sweeting, director of the university's space centre and chairman of Surrey Satellite.

NESTLÉ SEEKS TO BOOST SALES BY PUTTING SMOOTHIE MARKET THROUGH THE BLENDER

Nestle (NESN.VX) has embarked on a joint venture with Boost Juice, the Australian chain of juice bars, to challenge Innocent Drinks' dominance of the smoothie market. The two companies are launching a new range of co-branded drinks, Boosted Smoothies, which go on sale in supermarkets this month supported by a five million pound marketing campaign. PepsiCo owned PJ Smoothies, and Innocent, lead the field in what is still one of the fastest-growing parts of the soft drinks market.

EVANS HOLDING SOLD TO ACTIVE

The Smith family, owners of the Evans bicycle chain since the 1950s, has sold a majority stake to private equity group Active, managing to complete the deal just before the April 5 deadline for changes to capital gains tax laws. It is the latest business owner or founder to have restructured or sold their investments ahead of the controversial new 18 percent rate for CGT. Active declined to put a price on its investment but it typically invests in companies with an enterprise value of three to 50 million pounds.

GLE LOOKS NORTH WITH YFM BUY

The small business and property investor owned by London's 33 local authorities, GLE Group, has acquired the Yorkshire-based venture capital and buy-out group YFM. The deal is a boost for the UK's fragile venture capital industry and will create one of the country's biggest early-stage investors, with 330 million pounds under management. MaLarge, chief executive of GLE, said the purchase was an opportunity to expand. "If you look at the portfolio, we are heavily biased towards property and wanted to balance that out by moving into other activities and geographies."

CHELSEA PROJECT PLANS LODGED