PRESS DIGEST - Financial Times - Sept 9

Wednesday September 9 2009

LABOUR MARKET GLOOM LIFTED BY HIRING PICK-UP

According to a survey of 400 recruitment companies conducted by the Recruitment and Employment Confederation and KPMG, the jobs market is improving for the first time in 17 months. The August survey showed a rise in permanent appointments as well as a slight increase in temporary appointments. However, the survey recorded another month of declining pay rates, but at the slowest rate for 10 months. The availability of candidates to fill vacancies also continues to grow but at its slowest pace for a year.

THREAT TO UK CREDIT RATING REDUCED

Ratings agency Moody's will announce on Wednesday that Britain's AAA credit rating is unlikely to be downgraded, despite the fact that the country's budget deficit will soon be the worst among advanced economies. A cross-party consensus on the need to reduce public spending means that the rise in debt should be affordable, Moody's will say. Meanwhile, figures from the National Institute of Economic and Social Research show that the UK economy expanded in the three months to August, the first quarterly increase since May last year.

PENSION SHORTFALLS APPROACH 200 BILLION POUNDS

The aggregate deficit of UK pension schemes approached 200 billion pounds ($328.1 billion) last month as gilt yields declined. The Pension Protection Fund's 7800 Index put the total deficit at 194.6 billion pounds at the end of August, up from 179 billion pounds at the end of July. Global stock market gains saw the value of total assets increase by 3.3 percent, but this was more than offset by the 5.2 percent rise in liabilities that followed a fall in yields on government bonds. PPF data show that 85 per cent of UK schemes are in deficit.

FSA HANDS BARCLAYS CAPITAL 2.5 MILLION POUND FINE

Barclays'(BARC.L) investment arm, Barclays Capital, has been fined 2.45 million pounds by the Financial Services Authority for inaccurately reporting 57.5 million transactions to the regulator. The FSA said on Tuesday that on 85 percent of equities trades and 100 percent of other trades, Barclays had either failed to report the trades entirely or had provided inaccurate data. The fine is the largest seen in a transaction reporting case, and the eighth-largest ever imposed by the regulator.

RBS TO SELL AIRCRAFT LEASING ARM

Royal Bank of Scotland(RBS.L) has appointed Goldman Sachs to examine options for its aircraft leasing operations, which are among the largest such operations in the world with 100 airline customers in 40 countries. The leasing division was placed in a non-core unit earlier this year alongside 230 billion pounds' worth of risky loans. RBS would not comment on any plans for a disposal, but Goldman's appointment is thought to signal a desire to sell quickly as the market recovers.

LSE CHIEF SAYS BAIKAL PLATFORM MAY NOT WORK

London Stock Exchange(LSE.L) chief executive Xavier Rolet has admitted that Baikal, the LSE's dark pool platform, may not work. Rolet hinted that Baikal may fail to generate money, but that it could be used to "compete in other areas" as there was "potential for Baikal to do more than just what it's designed to do". Baikal is currently in the midst of a phased launch that began in June and Rolet said that potential changes to the way in which dark pools are regulated "could make venues like Baikal extremely attractive -- or totally unattractive".

KINGFISHER'S E-SLIP DELIVERS FILLIP

Kingfisher Group(KGF.L) has blamed an 'administrative error' for the external circulation of draft figures relating to its soon to be published interim results. The accidental release prompted the retail group to publish indicative half-year trading figures in advance of next week's results. Kingfisher said on Tuesday that the figures would show the company making adjusted profit of between 285 million pounds and 290 million pounds for the six month period ending in August, which compares to consensus analyst forecasts of around 268 million pounds for the period.

DEBENHAMS SIGNS UP HOT DESIGNER

Debenhams(DEB.L) is expected to announce an expansion of its Designers at Debenhams range along with its pre-close trading update next week. A collection from fashion designer Henry Holland is expected to be added to the range accompanied by a second designer collaboration, both due to be in stores for spring and summer next year. Consensus of analyst forecasts predict pre-tax profits of 121 million pounds for the fashion retailer in the year to August 30, with like-for-like sales expected to be down, although margins are expected to be improved by a shift from concessions to own-bought goods.

ASHTEAD TUMBLES 77 PERCENT BUT SEES REASONS FOR OPTIMISM

Ashtead(AHT.L) declared a 77 percent fall in pre-tax profits to 8.2 million pounds during the first quarter, compared with 35.2 million pounds for the same period the previous year. Analysts had predicted a fall of around 80 per cent, prompting shares to rise 8.95 pence to 88.95 pence. The equipment rental group said a drop in equipment sales had offset an increased share of the rental market as smaller rivals came unstuck in the challenging environment. Chief executive, Geoff Drabble, said, "There are two tough quarters ahead but we are very near the bottom."

NATIONAL EXPRESS OPTIONS NARROW

Stagecoach(SGC.L) has announced that it will only proceed with the acquisition of parts of National Express(NEX.L) if the transactions are conducted in conjunction with the current private equity offer for the company. Insiders at National Express have suggested selling off individual assets as an alternative to selling the whole business to a consortium comprising the Cosmen family and CVC Capital Partners. Last week, the consortium offered an improved 500 pence-a-share offer for the group. "Our discussions are with the consortium," Stagecoach said, adding to its promise not to bid for National express as a whole.

Prepared for Reuters by Durrants ($1=.6095 Pound)