PRESS DIGEST - British business - May 7

The Times

BRITISH AIRWAYS COUNTS COST OF T5 FIASCO

British Airways (BAY.L: Quote, Profile, Research, Stock Buzz) announced passenger numbers had fallen by 7.9 percent due to the chaotic opening of Heathrow's Terminal 5. The resulting cancelled flights and negative publicity are thought to have contributed significantly to the fall in passenger numbers during the month. Nick van den Brul, Exane BNP Paribas aviation analyst, said: "T5 has clearly been a big problem and it will have an impact on profits."

BLOWS RAIN IN ON ROSE AS M&S TOLD IT IS "TIME TO GET REAL"

Tony Shiret, a retail analyst for Credit Suisse, has called on Marks & Spencer (MKS.L: Quote, Profile, Research, Stock Buzz) to embark on a fundamental review of its strategy. The leading City analyst raised fresh concerns over the power wielded by Sir Stuart Rose and criticised the company for moving too downmarket. Shiret believes "issues currently facing investors have arisen because Stuart Rose has not been effectively challenged on his strategic decisions".

REBEL SHAREHOLDERS CRITICISE MOSS BROS BOARD

Rebel shareholders in Moss Bros (MOSB.L: Quote, Profile, Research, Stock Buzz), the menswear retailer, have criticised its board after Bauger, the Icelandic investment group, revealed it needed yet more time to put together a 40 million pound takeover bid for the company. It is understood a formal offer could come in two weeks time.

The Daily Telegraph

PROPERTY PRICES WILL DROP 10 PERCENT, SAYS LENDER