PRESS DIGEST - Financial Times - Feb 12

Financial Times

RETAIL DATA TO DAMP PROSPECTS OF RATE CUTS

The British Retail Consortium is set to release an official report indicating high street sales were stronger than expected in January, leading to expectations the Bank of England will think again about embarking on interest rate cuts. Official reports on Monday said the price of goods leaving factories in the UK rose by 5.7 percent in the year to January. Separate trade figures show import price inflation rose by 3.5 percent in December, up from 1.9 percent in November.

TUC ACTS TO THWART US 'UNION BUSTERS'

TUC general secretary Brendan Barber has said British employers have started to hire aggressive US-style "union busting" consultants in an attempt to persuade workers against joining trade unions. The TUC and its US equivalent, the American Federation of Labor and Congress of Industrial Organizations, will join forces to halt the efforts of employers on both sides of the Atlantic to demonise trade unions.

GRADUATE JOBS MARKET SHRINKS

A survey by Deloitte indicates the graduate recruitment market is showing signs of slowing, leading to increased competition among graduates, with a 22 percent increase in applications to its own programme. The "Big Four" professional services firm takes on 1,400 graduates and undergraduates every year in the UK, and in the past it has received ten applications for every vacancy. Deloitte opened its graduate process three months earlier than in 2006, and had received 2,400 applications by its October opening date.

FSA PRESSED TO END SECRECY ON CFD HOLDINGS

Various investment institutions in the UK have called for the Financial Services Authority to impose more straightforward rules concerning the disclosure of contracts for difference and other derivatives. These organisations have become concerned about proposals by the FSA to allow some investors safe harbour from fully disclosing their holdings of CFDs. FSA rules demand disclosure of equity stakes of more than three percent.

OILEXCO GAINS ON ENCOURAGING APPRAISAL OF NORTH SEA FIND

Shares in Oilexco OIL.TO increased by 18 percent by the end of trading on Monday after the company announced encouraging appraisal results from its big oil find in the North Sea's Huntingdon Field. It is thought this oil field could be the biggest find in the UK sector of the North Sea since 2004, with an estimated 200 million barrels of reserves. Oilexco is hoping to fast track development options and will put a plan to the Department for Business, Enterprise and Regulatory Reform by the middle of the year.

HSBC CONSIDERS DISPOSAL OF FRENCH BRANCH NETWORK

HSBC(HSBA.L) has reported it is considering the sale of all or part of its French retail banking operations as part of a review of operations with the aim of selling off underperforming parts of the business. Goldman Sachs has been appointed to advise on options for the French retail operations which HSBC acquired after the 11 billion euro acquisition of Credit Commercial de France in 2000. It is thought the sell-off would underline HSBC's lack of interest in Societe Generale, its French rival.

TAKEOVER RUMOURS REVITALISE STRUGGLING OXFORD BIOMEDICA

Shares in Oxford BioMedica have increased by 27 percent after speculation the group is about to be bought by Sanofi Aventis(SASY.PA). Analysts have suggested any offer for the UK biotechnology company would be at the 50 pence level, valuing the company at around 280 million pounds. However, this is less than the 385 million pounds Sanofi could have to pay the biotech company under the terms of a licensing deal for TroVax.

ST MODWEN FEELS ONSET OF PROPERTY SLUMP

Brownfield development specialist St Modwen Properties (SMP.L) has reported it has achieved a fifteenth successive year of record profits, but went on to warn investors 2008 would be more difficult because of a downturn in the property markets. The company has reported a 20 percent increase in its net asset value per share to 387 pence in the year to the end of November, but it only saw an increase in seven percent in the second half due to the onset of the slump in property values, and the effect this had on the company's portfolio.

SUPPLIER ISSUES HIT SMITHS' TRADING

Engineering conglomerate Smiths Group(SMIN.L) has reported supplier issues in its medical equipment division affected trading. Two specific supplier problems in the critical care part of its medical unit, held back performance. The group's trading statement for the six months to February 2, stated overall sales and profit growth was in line with expectations. Shares in the group fell 14 pence to end trading at 933.5 pence as the negative news overshadowed the organisation's first trading update under new chief executive Philip Bowman.

FIDESSA HAILS FERTILE MARKET

The bank trading technology group, Fidessa, has reported it has yet to see any spending slowdown from critical financial services customers, after hailing its transformational 2007. Chief executive, Chris Aspinwall, said some customers would come under pressure from market conditions, but added the group had yet to see any impact in its sales pipeline. Mr Aspinwall said company fortunes were dependent on whether customers decided if they wanted to trade equities.

Prepared for Reuters by Durrants.