PRESS DIGEST - Financial Times - Oct 29

The Financial Times

EU FINANCE DIRECTIVE EXPECTED TO CAUSE CONFUSION FOR THE UNPREPARED

The Markets in Financial Instruments Directive is about to become law throughout Europe on Thursday. But even though the Mifid scheme has been in the planning stages for years it is understood many countries and companies are still far from implementing it, leaving them unsure about the scale of potential problems that could be thrown up. Mifid had been designed to create a single market for financial services and level investment opportunities by opening the industry to cross-border competition. Only three out of 27 countries, Britain, Romania and Ireland, have managed to meet the January 31, 2007 deadline.

BA RISKS PILOTS' IRE ON EU-U.S. ROUTES

It is understood British Airways (BAY.L: Quote, Profile, Research, Stock Buzz) is risking industry strife over its plans to fly direct between continental Europe and the United States. The BA board will meet on Thursday to discuss the initiative, called Project Lauren, despite the unrest of pilots. The scheme is said to be an important element of the airline's response to the U.S.-EU "open skies" treaty. BA is keen to take advantage of business opportunities offered by the treaty which comes into effect in March.

GROCERY PROBE ADDS TO REFORM PRESSURE

The grocery industry is said to be readying itself for potential commercial and political fallout from the Competition Commission's inquiry into the sector. The commission has indicated it has already spotted possible changes that could be made in areas such as supply chains and local dominance, although the organisation is unlikely to recommend radical change to the industry when it publishes its findings in the next few days. Despite the fact the report is yet to be published, it has already caused tensions between Tesco (TSCO.L: Quote, Profile, Research, Stock Buzz) and other supermarkets, who have accused the UK's largest supermarket chain of using market power to stifle competition.

OFFICIAL PAY FIGURES MAY UNDERPLAY RISE

"Experimental" pay figures published by the Office for National Statistics indicate average earnings may be rising faster than official figures have previously reported. It is thought this revelation could have important implications for the Bank of England's monetary policy committee, which has already stated earnings growth is an important inflationary benchmark when setting interest rates. The experimental report showed annual increases since January have been above the 4.5 percent level thought likely to trigger inflationary concerns at the Bank.