PRESS DIGEST - Financial Times - April 9

BANK CREATES TWO-TIER MARKET

The Bank of England has inadvertently unbalanced the debt market through its purchase of around 400 million pounds in sterling-denominated corporate bonds.

The Bank's decision to only purchase high-quality debt has resulted in bonds in companies it has bought performing vastly better than ones it has not.

"The companies that could previously access liquidity via corporate bond issuance are now able to do so at slightly tighter spread levels", said Gary Jenkins, head of fixed income at Evolution.

"Whereas the great unwashed in the lower ratings categories have seen their borrowing costs rise".

PM PREDICTS 50 BILLION POUND LENDING INCREASE

Prime Minister Gordon Brown said Wednesday that British banks will provide an extra 50 billion pounds worth of lending this year, adding that a reformed City "had a great future."

The prime minister told BBC Radio 2's Jeremy Vine programme that "while lending was very difficult a few months ago and is difficult still, there is more money now available." Nationalised banks RBS (RBS.L), Lloyds(LLOY.L) and Northern Rock NRK.L have promised an extra 44 billion pounds in lending, though this will be offset by a fall in loans by foreign banks such as those from Ireland and Iceland.

SEXISM IN CITY UNDER FIRE OVER PAY GAP FIGURES

A report from the Equality and Human Rights Commission shows that women in financial services are paid 55 per cent less than men, almost twice the pay gap seen in the wider economy.

The commission found that, while women account for around half of all positions in the financial sector, the positions they hold are concentrated in lower paid, lower skilled jobs. The findings are likely to fuel a drive by Labour deputy leader Harriet Harman to include "tough measures" in the forthcoming equality bill.

COOLABI DETECTS LITERARY DEAL OVER AGATHA CHRISTIE

The intellectual property company Coolabi (COOL.L) is in talks with its contemporary Chorion to acquire the literary estate of Agatha Christie, which is worth between 30 and 50 million pounds.

Shares in Coolabi were suspended on Wednesday, when it announced to the Stock Exchange that it was in preliminary talks that may lead to a reverse takeover, as the value of the Christie estate is far in excess of the company's own market capitalisation of less than three million pounds.

REVENUES RISE FOR PLASTICS DEGRADER

Symphony Environmental Technologies (SYMU.L) made its first annual profit in 2008 since joining the Aim market in 2001.

The company, which produces an additive which causes plastic packaging to bio-degrade, reported a 42 percent rise in revenues to 5.4 million pounds last year, and has responded by increasing its number of distributors from 15 to 45.

Symphony's success has been largely motivated by growing environmental and sustainability concerns, and legislation stemming from those concerns. The business' shares rose by 25 percent on Wednesday, to close at 3.12 pence.

EVOLUTION DISPLAYS CAUTIOUS OPTIMISM

The chief executive of the investment bank Evolution (EVG.L) was positive about its trading in the first quarter of 2009.

"We're as excited about this year as any since I've been here", remarked Alex Snow, whilst warning against reading too much into only three months of trading. Exact figures are not yet available, but are thought to be much better than the disappointing figures for 2008.

Mr. Snow said that he intended to use some of the bank's cash reserves to hire more staff and make acquisitions. Shares climbed 5.75 pence to 103.75 pence.

CHERRY PICKERS PUT TANFIELD IN THE RED

Impairment charges have put the electric vehicle and aerial platform maker Tanfield (TAN.L) 88.8 million pounds in debt, after commercial demand for its "cherry pickers" fell away last summer.

The 62.5 million pound acquisition of the US aerial platform maker Snorkel in 2008 was the reason for most of the charges. The chief executive Darren Kell, however, remained optimistic, claiming that the business was well prepared for a recovery in the cherry picker market, which supplies around three quarters of revenue.

JD SPORTS DISPLAYS STAYING POWER

JD Sports, (JD.L) the UK's third-largest sportswear retailer by turnover, has cited its 2007 purchase of fashion chain Bank as one of the factors which helped it post better-than-expected profits.

Pre-tax profits were up nine per cent to 38.2 million pounds in the year to January 31, and would have been up 24 per cent were it not for the 16.3 million pound cost of exceptional charges. Chief executive Peter Cowgill said: "This is the fifth year of profit growth so we're doing something right."

PZ CUSSONS FINDS SANCTUARY IN REPEAT CUSTOM

Soapmaker PZ Cussons (PZC.L) predicts full-year results in line with analysts' expectations, having seen a surge in Christmas sales of its Sanctuary range of products and strong trading in the ten weeks to the beginning of April.

Cussons' broker Panmure Gordon expects earnings per share to grow 14 per cent in 2009. Sales and profits both grew in the UK, while the Nigerian market, where Cussons makes almost half of its revenues, saw strong growth in the home care and personal care divisions.

HOLIDAYBREAK'S AYLING TO RETIRE FROM TOP JOB

Bob Ayling, who headed British Airways(BAY.L) for four years until 2000, has stepped down as chairman of Holidaybreak, his last directorship of a British company.

Ayling was removed from high-profile roles at British Airways and the Millennium Dome Company within two months in the year 2000, and spent the next three years public speaking before taking up the role at Holidaybreak. He will be replaced by John Coleman, former chief executive of House of Fraser and current chairman of Aga Rangemaster Prepared for Reuters by Durrants.