PRESS DIGEST - Financial Times - April 10

Financial Times

CONCERNS GROW AS BANKS SEEK MORE FACILITIES FOR BORROWING

British banks took steps on Wednesday to increase their borrowing facilities with the central bank to protect themselves from further lending chaos. This move has caused the Bank of England to fear the credit crisis has now entered a new and more serious phase. With growing concerns that the instability of the banking system could suddenly leave banks desperate for cash, British banks sought to increase the reserves they hold on deposit at the Bank this month.

NINTENDO DEAL PUTS IPLAYER ON THE BOX

The BBC's [BBC.UL] iPlayer, the catch-up TV service, is coming to regular sets for the first time. The deal with Nintendo (7974.OS) highlights the industry's determination to bring online viewing to the living room. The BBC's group controller for future media and technology, Erik Hughers, said: "It is important for us to get the iPlayer into the living room." As well as being the latest platform for the iPlayer, the partnership proves the potential of Internet-enabled games consoles to bring online TV out of the bedroom and back into the heart of family life.

MORTGAGE BROKERS SET TO FEEL THE PINCH

Mortgage brokers are facing a reduction in businesses and commissions as the housing market falls and mortgage approvals decline. Many of those falling victim to the credit squeeze are small firms that are thinly capitalised and employ just a handful of staff. This is because they continue to face high overheads for employees and office space, even if commission levels plummet.

CLEARING BANKS WEATHER STORM

The winners and losers of the British mortgage market have become clear as the credit card squeeze intensified over the past few months. The biggest losers are likely to be the 21 new entrants which moved into the mortgage market just two years ago. The executive director of the Intermediary Mortgage Lenders' Association, Peter Williams, said: "Specialist lenders targeted certain markets such as the self-certified mortgage or subprime markets and often used the wholesale markets. This is very difficult now."

STRONG OUTPUT FIGURES BOOST OPTIMISM

The Office of National Statistics revealed that in February, UK manufacturers registered a 0.4 percent increase, boosting the overall index of production by 0.3 percent. George Buckley, economist at Deutsche Bank, said: "Manufacturing is a pleasant surprise." However, both manufacturing and the production index in which it sits are known for being volatile. Nevertheless, economists are hoping that cuts in interest rates will help fuel demand for exports of UK goods.

RESHUFFLE AT THE INDEPENDENT AIMED AT ENDING ERA OF LOSSES

In an attempt to end years of losses for The Independent, Roger Alton will be named the editor of the newspaper on Thursday. Simon Kellner, its editor for the past 10 years, is to be promoted to managing director and editor-in-chief of the daily and Sunday titles. Kellner will also be responsible for making commercial and editorial departments work more closely together. Kellner said: "Our only safe harbour is to make the paper profitable, and until we do that we can't rest."

RWE OUTFLANKS EDF IN 11 BILLION POUND CASH OFFER FOR BRITISH ENERGY

RWE (RWEG.DE) has made an indicative all-cash offer to close to 700 pence a share for British Energy BGY.L. The German utility company proposed the deal which could value the UK's nuclear operator at 11 billion pounds. According to sources close to the situation, RWE is carrying out due diligence and has now been granted access to British Energy's data room. British Energy is still considering whether to sell to one bidder or a consortium, and it has yet to trigger a "formal" auction for the company.

POUND FALLS TO RECORD LOW AGAINST EURO