PRESS DIGEST - Financial Times - April 30

KING CONDEMNS CITY BONUSES AND PLEDGES TO CURB EXCESSES

The bonuses paid to City bankers were attacked by the Governor of the Bank of England during a session of the Commons Treasury committee on Tuesday. Mervyn King launched an unusually fierce assault on the bonus culture, saying the current difficulties faced by banks were due to their compensation packages, which created incentives that were not in their own long-term interests. "I would like to think that would change," he said, adding that he wanted the Bank "to try to curb the excessive build-up of risk-taking and credit creation which was seen ahead of the recent crisis."

BANKS FACE ADVICE BAR IN FSA SHAKE-UP

Lobby groups have warned that banks risk being barred from offering customers advice on retail investments under proposals being considered by the Financial Services Authority. On Tuesday, the City regulator published an interim report on its review of how long-term savings products such as life assurance and private pensions are sold. If adopted, the FSA's changes would mean anyone calling themselves an independent financial adviser would not be able to accept incentive payments from fund managers or insurers. Peter Tyler, head of the British Bankers' Association's retail team, said the proposals were problematic because "that service that the banks operate for the mass market will be curtailed or prohibited".

HIGH TAXES AND RED TAPE HURT UK

A new survey of company directors reveals that red tape and high taxes have made Britain a less attractive place to do business than a decade ago. The Institute of Directors, which carried out the survey ahead of its annual convention in London on Wednesday, found that 49 percent of directors think the UK is less competitive than 10 years ago and 53 percent expect the position to deteriorate further over the next decade. The top three areas identified for improving competitiveness were reducing regulation, lowering taxes and improving education and skills.

AVIVA ABANDONS 200-YEAR-OLD FLAGSHIP BRAND

Aviva(AV.L), the UK's biggest insurer, is planning to abandon the Norwich Union name as it looks to expand further outside its home territory and compete with big international rivals. The 200-year-old flagship brand, one of Britain's best-known, will be ditched within the next two years and replaced by the Aviva brand. Denying the decision would damage the insurer's domestic business, Andrew Moss, the chief executive, said: "At the moment, of course, the Norwich Union name is recognised better in the UK than Aviva is. That will not be the case as we go through the transition."

COST PRESSURES BEAR DOWN ON WETHERSPOON

JD Wetherspoon(JDW.L), the high street pubs group, said that cost pressures will continue to bear down on its operating margin in spite of sales having stabilised. Analysts welcomed results that were not as bad as expected, with the group announcing like-for-like sales for the third quarter that fell 0.1 percent. They are down 1.5 percent on the year to date. The shares, which have lost two-thirds of their value in the past 12 months, rose six pence to close at 275 pence.