PRESS DIGEST - Financial Times - July 11

Financial Times

BUILDING INDUSTRY COULD AXE 60,000

Job losses across the building sector could reach 60,000 over the next few months, major industry figures said on Thursday. Mark Clare, head of Barratt Developments (BDEV.L), the housebuilder which will axe 1,200 out of its 6,700 workers, said the massive lay-offs represent only one aspect of the story, as the figure "does not take into account the secondary effect on the supply chain, comprising kitchen companies, solicitors, mortgage advisers, estate agents and so on". Meanwhile, the Bank of England has decided to keep interest rates steady at five percent in the face of high inflation and a slow economy.

DOUBTS OVER "LOOPHOLE" CALLS

Charles Vice, chief operating officer of the InterContinental Exchange, the U.S.-based owner of ICE Futures Europe, has said the attempts of the U.S. Congress to close the so-called "London Loophole" -- the regulatory gap in the way the UK's main energy futures market is run -- are "unlikely to have any effect on crude oil prices". The Commodity Futures Trading Commission, the U.S. futures watchdog, has called ICE Futures Europe to effect the same trader "position limits" that apply to U.S. oil futures exchanges. On Thursday, the Treasury committee disclosed that three ICE Futures executives will be among those who will testify at next week's meeting into the issue, which will focus on "the key factors behind the rise in oil prices, including the role of speculative activity".

REVIEW URGES PERSONAL DATA OVERHAUL

A new report, commissioned by Prime Minister Gordon Brown, is expected to call on Friday for an overhaul of the way companies and the government handle personal data, recommending that the public should have a right to know who holds information about them, and urging a crackdown on junk mail, cold calling and spam email. The official report will suggest the government should launch an investigation into firms that collect personal information and put it up for sale, as well as a ban on the selling of edited versions of the electoral roll by the town halls. Mark Walport, director of the Wellcome Trust, said: "The case for change is overwhelming. The law and its framework lack clarity."

VODAFONE FACES FOUR BILLION DOLLARS TAX BILL IN INDIA CASE

Vodafone (VOD.L) could be forced to pay a tax bill of two billion pounds if it loses in its legal dispute with the Indian government over its acquisition of a major stake in Hutchison Essar last year. In February 2007, the UK group paid 11 billion dollars to Hutchison Whampoa (0013.HK), the Hong Kong conglomerate, for a 67 percent stake in India's fourth-largest wireless operator. The country's tax department says Vodafone should have withheld two billion dollars of capital gains tax on the government's behalf, despite the UK group being the buyer. Vodafone says the deal is not taxable in India as it took place overseas. The High Court in Mumbai has concluded hearings on the case and a verdict is expected in the following weeks.

GFK GAINS HERZ BACKING FOR TNS

GfK (GFKG.DE) has secured financial backing from the Herz family for its potential all-cash bid for Taylor Nelson Sofres TNS.L, it has emerged. However, it is believed the group is also holding further discussions with other sources of finance, probably other wealthy German families, as it seeks further funding to complete the deal. George Remshagen, of Dresdner Kleinwort, estimated any GfK partner "will probably acquire a minority stake in TNS but not a stake in GfK." He expects the German market research group to launch its bid, which values TNS at more than 1.1 billion pounds, "in the coming days -- not weeks".

EUROPEAN TRIAL FOR RENOVO DRUG

Shares in Renovo (RNVO.L) climbed 7.25 pence to 39 pence on the news the biotechnology company has received positive feedback from the European medicines regulator and is to commence in the second half of 2008 a European phase III trial of its anti-scarring treatment Juvista. "This is good news for Renovo. It gives them the green light to start phase III in Europe. There was always a chance they may not have got it," said Nomura Code analyst Samir Devani.

PLUS LOOKS TO EUROPE GROWTH

The Aim-listed Plus Markets (PMK.L) has entered into non-binding heads of agreement with the Munich Stock Exchange to explore ways of coordinating exchange-regulated capital market services. A successful agreement would allow companies quoted on Plus and M:access, the Munich primary market launched in 2005, to access capital in either Germany or London through dual listing. The deal also envisages the creation of Plus-Europe, which will operate under the auspices of Munich and use the German Exchange's pan-European passport rights as a potential mechanism to enable Plus to trade all Aim stocks. Plus has yet to receive the permission of the UK's Financial Services Authority to trade every Aim stock on its platform.

APAX CO-FOUNDER BUYS INTO MILLENNIUM GLOBAL

The co-founder of Apax Partners, Sir Ronald Cohen, has purchased a stake in Millennium Global, the hedge fund manager launched in 1994 by the Anglo-Swiss former Goldman Sachs manager Michael Huttman. Sir Ronald is buying the stake from minority investors who backed the launch of Millennium, resulting in no reduction in the holdings of Millennium staff. Separately, Lord Jacob Rothschild's investment trust RIT Capital is increasing its minority stake, with Huttman declining to say how much the new investors were paying. Millennium manages 15 billion dollars, with about half of its turnover being generated from the large, but lower-margin, currency overlay products.

PHOTO-ME IN RED AFTER 20 MILLION POUNDS CHARGE

As it attempts to draw a line under a turbulent year, photo booth operator Photo-Me International (PHTM.L) has taken around 20 million pounds in charges in its full-year results. The pre-tax deficit of 21.6 million pounds, down from 15.6 million pounds of profits a year ago, came as a result of an array of additional charges related to a strategic review, depreciation and amortisation of some vending equipment and an impairment charge on the company's silver halide process, which is encountering competition from newer technologies. Sales for the year to April 30 decreased by 1.5 percent to 209.6 million pounds. The shares lost 0.75 pence at 11.75 pence.

FAT FACE ALLAYS FEARS WITH SOLID PERFORMANCE

Having been bought by Bridgepoint at the top of the market, the fashion retailer Fat face has partly allayed fears over its balance sheet after reporting solid full-year profit. Partly as a result of concern that it is over-indebted going into a consumer downturn, the nominal value of Fat Face's debt has fallen dramatically in the wake of the credit crisis. The company, for which Bridgepoint paid 260 million pounds, more than three times the chain's sales, said it was remaining on course with earnings before interest, tax, depreciation and amortisation of 26.6 million pounds in the year to May 31. Sales were driven up 16.3 percent to 126.4 million pounds by 12 store openings. Stuart Owens, chief operating officer, said: "We're still pushing the brand into new places. We're expanding with John Lewis."

Prepared for Reuters by Durrants.