REPEAT-PRESS DIGEST - Financial Times - Feb 5

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Financial Times

BUYERS SOUGHT FOR PUBLIC DEBT AS BANK BOWS OUT

The Bank of England has made the decision to put its quantitive easing programme on hold. The initiative was designed to stimulate economic growth by buying up bonds - mainly gilts - and the Debt Management Office, which is responsible for issuing a record number of bonds to pay off the public deficit, is now expected to face difficulty in finding buyers. DMO chief executive Robert Stheeman has said that the agency will continue to use new methods of issuing debt, including syndications.

PROJECT CANVAS TRIGGERS INDUSTRY ALARM

The Digital TV Group, a consortium of broadcasters, technology providers and set top box manufacturers, has expressed widespread industry concern about a new venture which aims to market a 200 pound set-top box, bringing internet services to the television later this year. Project Canvas, a joint venture between the UK's public sector broadcasters and two of the country's broadband providers, has won initial approval from the BBC Trust but, in a submission to the BBC Trust's consultation, the DTG, whose members include Sony (6758.T), BSkyB (BSY.L) and Virgin Media [VMEDL.UL], expressed concern that Canvas' members had not engaged fully with the industry. The BBC Trust's final ruling is due in the next few months.

BUSINESS ATTACKS LIMITS ON PRODUCT PLACEMENT

Government plans to restrict product placement on commercial television shows have drawn accusations of "nanny stateism" from the advertising industry. Last September's decision to allow product placement had been seen as a shot in the arm for the struggling industry, but next week culture secretary Ben Bradshaw will announce restrictions on the placement of alcohol and high fat, salt and sugar products. Hugh Burkitt of the Marketing Society has said that the government failed to grasp the difference between marketing individual brands and promoting eating or drinking in a more general way.

PACE OF GROWTH IN HOUSE PRICES SLOWS

There are signs that the pace of the housing market recovery may be slowing -with a number of recent indicators supporting the view. The closely watched Halifax survey revealed that January saw house prices rise 0.6 per cent, the slowest pace in six months, and down from December's figure of 0.8 per cent. Fewer estate agents have been reporting price rises, while the Bank of England reported a fall in mortgage approvals in December for the first time in 13 months. Nationwide's house price index showed house price rises falling to 0.5 per cent in December, from 1.4 per cent a month in July and August.

LIBERTY TO SPLIT SHOPPING CENTRES FROM LONDON PROPERTY PORTFOLIO

Liberty International (LII.L), Britain's largest shopping centre owner, is to undergo one of the largest corporate restructurings ever seen in the UK's listed real estate sector. The firm is in the final stages of splitting its 2.8 billion pound business in a demerger process overseen by Rothschild. Liberty's 6.1 billion pound UK property portfolio will be divided into two listed companies. Its shopping centres, worth 4.4 billion pounds, will be split off into a new real estate investment trust, while the other new business will own the company's 1.7 billion pounds of London properties.

UNION SAYS IT IS 'NOT MILES APART' FROM BA

The Unite union has indicated emerging signs of a settlement in the dispute between airline British Airways (BAY.L) and its cabin crew. On Thursday, Unite's national officer for aviation, Steve Turner, said that although the two sides still disagreed over BA's decision to remove at least one crew member from most of its long-haul flights, he was optimistic that the dispute could be resolved. BA is preparing to announce record pre-tax losses on Friday for the three months to the end of December. Analysts believe its full-year pre-tax loss will approach 600 million pounds.

DOUBT CAST ON EMI'S VIABILITY

Accountants KPMG have questioned EMI's ability to continue as a going concern in a report exposing the fragile state of Terra Firma's 4.2 billion pound investment in the music company. A review of accounts for the year to March 2009 show Terra Firma will face another "significant shortfall" against a test on covenants in its loans by March 2011, even if it is successful in its present attempt to raise 120 million pounds in equity funds from investors. EMI's accountants also pointed out that investors may need to add an additional sum of 10 million pounds to 200 million pounds to finance its pension scheme, which is currently in deficit and the subject of a dispute with trustees.

RESOLUTION EYES MOVE ON RBS BRANCHES

London-listed investment vehicle Resolution Group and US private equity group Blackstone have emerged as frontrunners alongside National Australia Bank in bidding for bank branches being sold by Royal Bank of Scotland (RBS.L). According to industry insiders, the disposal of 318 branches by RBS is likely to be an arduous task. The Australian bank has received support from backers seeking a foothold in the UK banking market, while most of the major UK banks have been prevented from entering bids on competition grounds.

GALA STARTS TALKS OVER DEBUT BOND

UK gambling group Gala Coral is holding negotiations over a possible 500 million pound bond issue, which would see it reaching out to institutional investors to help refinance two billion pounds of bank debt. Industry sources say the bond issue will only happen if the company's restructuring talks are favourable. Gala has been in discussions with the Royal Bank of Scotland (RBS.L), Credit Suisse and Deutsche Bank (DBKGn.DE) about a potential debut bond, but no plans have been finalised. The mooted plan comes ahead of a meeting with Gala's banks on Tuesday to review proposals by a group of holders of its mezzanine debt to take control of the company.

MCBRIDE ADVANCES ON THRIFTY SENTIMENT

McBride (MCB.L), a leading supplier of private-label household and personal care products, posted a near-fourfold rise in interim profits spurred by strengthening demand for retailer-branded goods. The firm, which supplies retailers ranging from Tesco (TSCO.L) and Waitrose in the UK to Carrefour (CARR.PA) in France, saw pre-tax profits advance from five million pounds to 22.5 million pounds. Chief executive Miles Roberts said sales reflected a growing willingness by consumers to sample own-brand products, which increasingly compete with established brands on quality and price.

Prepared for Reuters by Durrants