PRESS DIGEST - Financial Times - Oct 25

The Financial Times

TENSIONS DOG BUSINESS AND GREENS

The target set by the European Union that 20 percent of energy should come from renewable sources by 2020 this week re-ignited the long-running Whitehall battle between environmental campaigners and business as the two groups competed for the government's attention. The Department for Business, Enterprise and Regulatory Reform, for instance, sees the renewable energy target as a threat to investment in the nuclear industry. However, the Department for Environment, Food and Rural Affairs supports investments in both the renewable and the nuclear power sector. This week the issue has been the clash between two different systems for reducing carbon emissions.

CGT CASTS SHADOW OVER NO.10 BUSINESS COUNCIL

The ongoing row over capital gain tax has overshadowed the inaugural meeting of Gordon Brown's high-profile business council. The creation of the advisory body, which includes such business leaders as Sir Richard Branson and Sir Alan Sugar, was portrayed as evidence of Labour's willingness to listen to entrepreneurs. At the council meeting the CGT was off the scheduled agenda and the government refused to go into any details on what was discussed at the meeting.

FORMER INDEPENDENT INSURANCE EXECUTIVES JAILED

Some fomer Independent Insurance executives have been given various jail terms for their roles in causing one of the biggest corporate collapses of the decade. Michael Bright, former head of the company, was given a seven-year jail term, Dennis Lomas, former finance director, was sentenced to four years and Philip Condon, former deputy managing director, received three years for their roles in a scam that hid hundreds of millions of pounds of losses from investors, policy holders and employees. Independent Insurance's collapse in 2001 shocked the stock market.

LONDON OFFICE RENTALS SLOW

A report published by the commercial agent Colliers CRE has found net stock absorption -- the change in the amount of office space occupied over a set period of time -- fell 23 percent compared to a year ago and 21 percent since the end of 2006. The West End saw absorption down 32 percent since the end of 2006. The study, however, supports the view there is occupier demand to sustain the glut of new development completing in the next five years.