PRESS DIGEST - Financial Times - Sept 1

DOMESTIC DEMAND OFFERS GROWTH HOPES

Coal production in Britain is set to increase in 2008 as prices rise and generators' realise the value of indigenous deposits. The news is a fillip for an industry which has seen output and working mines both fall to their lowest level since the 1950s. Chief executive of UK Coal (UKC.L), Jon Lloyd, noted that customers were prepared to pay for British coal as supplies were more reliable than those sourced overseas, while Dorothy Thompson, chief executive of Drax (DRX.L), said, "the logistics are cheaper and easier to manage". Power companies have already indicated their desire to turn towards local supplies, with UK Coal mining almost four million tonnes in the first half and predicting output exceeding five million tonnes in the second.

BUSINESS ANGER AT EU TEMPS RULING

EU plans to allow temporary workers the same pay structure as full-time employees after a qualifying period of just twelve weeks will lead to a substantial drop in the use of agency staff, says Eversheds, in a report published today. The agreement, made by the TUC, CBI and government has already prompted an angry response from small and medium-sized business, who have predicted an increase of up to 25 percent in HR costs.

VODAFONE SLAMS CURB ON RATES

Vodafone (VOD.L) has launched a stinging attack on the European commissioner for telecoms, Viviane Reding, after she suggested that the market could move to a US wholesale model where users face duplex charging. Reding had made the suggestion as part of the European Commission's proposed reform of mobile termination rates. Research commissioned by Vodafone found that mobile phone users would oppose the new charges, while an estimated 40 million Europeans might give up their contract as prohibitively expensive. However, both a spokesman for Reding, and independent analysts remain sceptical of Vodafone's claims.

LSE SLASHES FEES IN BATTLE AGAINST EMERGING RIVALS

The London Stock Exchange will unveil steep cuts in trading fees and other trader incentives today as European exchanges continue to fight for ground lost to new entrants to the market, such as Nasdaq OMX Europe. Three different platforms offering pan-European equities trading will be launched over September and October, following the European Commission's enactment of Mifid securities trading rules last year. The LSE will abolish tariff charges totalling 8.5 pence, and introduce zero fees for "passive executions" in an attempt to attract a growing market of "algorithmic traders" to the exchange.

OPPOSITION MOUNTS TO BA PLANS

Confidential submissions made by British Airways (BAY.L) and American Airlines (AMR.N) will be made available to at least seven major airlines as well as the US Department of Justice, after affidavits were lodged with the US Department of Transport as the pair continue their joint-venture campaign. The anti-trust immunity application filed in mid-August is the two airlines' third attempt at a joint business agreement, following heavy resistance to previous applications in 1997 and 2001. However, the arrival of "open skies", the current economic downturn and the precedent-setting deal for members of the Skyteam alliance may smooth the campaign path this time around.

RAMADAN REFRESHES SALES OF VIMTO

Nichols (NICL.L), the UK beverage company which owns the Vimto brand, will welcome the start of Ramadan today. The soft drink, which originated as a health tonic in 1908 to cater to the demands of the temperance movement, enjoys popular status in the Muslim world as a post-fast pick-me-up. Chairman, John Nichols, noted that strong first-half sales of Vimto were boosted by Ramadan's early occurrence this year, and had helped the company outperform the FTSE all-share index, despite tough domestic trading for its Panda and Sunkist brands.

EDMONDS LISTS CANE PRODUCER

Phil Edmonds will launch his fourth African company on Aim today. BioEnergy Africa will target global demand for ethanol and has already raised 8.6 million pounds ahead of today's listing. Edmonds indicated that development was already under way and good returns were anticipated for investors within a sustainable framework "that ensures ecological development is maintained in tandem with creating employment for local communities".

SEVERFIELD-ROWEN PLANS A LATE MOVE INTO INDIA

Steel fabrication materials supplier, Severfield-Rowen (SFR.L), which supplied the girders for Wembley stadium and Heathrow T5, is to outline plans for a joint venture in India later this year. Chief executive, Tom Haughey, has admitted that the impact of the worsening economy on the UK construction industry, where Severfield' has 100 percent exposure, cannot be ignored, but said: "Our order book now stands at 431 million pounds compared with 300 million pounds eighteen months ago." Low exposure to the residential sector, coupled with domestic spending in power, health, education, air and rail projects "should keep the company busy", he said.

Prepared for Reuters by Durrants