PRESS DIGEST - Financial Times - April 11

DARLING BANK CRISIS WOES SUBSIDE

Next week, Alistair Darling will begin to prepare his second Budget, buoyed by the belief within the Treasury that the March bank bail-out may finally have stabilised the banking system.

Treasury officials report that Darling has recently held far fewer meetings with staff from the department's financial stability wing, with one saying, "That is usually a good indicator that things have settled down."

Officials warn that there may be further 'aftershocks', but are confident that they have developed an expertise in dealing with such problems.

CLASSIC CAR-PARTS TRADE REALLY MOTORING

The market for parts of classic cars is thriving, with low interest rates driving many enthusiasts to consider the upkeep of their antique vehicles a more worthwhile investment than putting money in a savings account.

The weak state of the pound against the euro is also helping as the cost of shipping deliveries of car parts to car enthusiasts on the Continent has decreased dramatically. In contrast to most businesses, the West Midlands-based Parts4 Group has recruited five new staff to the 43 already at the company in order to cope with the increased demand.

DELIVERY GROUPS REAP ONLINE BENEFIT

Resilient online shopping amidst a generally gloomy retail market means that distribution companies specialising in business-to-consumer deliveries are preparing for rapid growth in the sector.

The trend toward purchasing over the internet has only been increased by the recession, with consumers looking for better prices on the internet and retailers eager to reduce running costs and more easily manage stock levels.

Home Delivery Network has predicted growth of 23.4 per cent over the next four years and claims to handle 300,000 parcels a day.

RECRUITMENT GROUPS WARY ABOUT CALLING AN END TO THE RECESSION

Recruiters remain cautious about the possibility of a recovery in the jobs market, with the chief executives of the four largest recruiters in the UK - Hays (HAYS.L), Michael Page (MPI.L), Robert Walters and SThree (STHR.L) - all warning that the downturn is likely to get even harsher before any revival.

All the firms have reported drastic falls in revenues. Nevertheless, some institutional funds are optimistic about the sector and believe that the present would be a good time to buy stocks, saying that greater flexibility in labour markets and the generally sound management at recruitment firms make them a useful investment.

BARCLAYS FACES TOUGH ISHARES QUESTIONS

It is expected that Barclays (BARC.L) will face further questions from shareholders over its decision to sell iShares after the buyer, CVC Capital Partners, said that the exchange traded funds business would be a good candidate for a stock market initial public offering when stock markets recover.

iShares was sold by Barclays with the bank looking to avoid turning to the UK government for capital. Barclays shares rose 12.5 per cent to 177.5 pence on Thursday's announcement of the deal.

QINETIC'S PLAN TO FREEZE WORKERS' PAY SPARKS THREAT OF STRIKE.

Defence research group Qinetic (QQ.L) has been hit by threats of strike action following the announcement that it will freeze the basic pay of its UK employees in 2009.

Defence trade union Prospect claims that the announcement was made 'unilaterally' by Qinetic and without prior warning. Prospect will seek authority from its executive committee to canvas its members next week, and deputy general secretary said that the intent is "to ballot for industrial action."

INTEREST CHARGES DENT MAN UTD

Successful Premier League and European campaigns helped boost turnover and profits at Manchester United in the year to June 2008, but interest charges on the club's 524 million pound debts saw its holding companies post a loss.

Revenue at the club was up 45 million pounds to 257 million pounds while pre-tax profits were up 6 million pounds to 66 million pounds.

However, the club's immediate holding company, Red Football Joint Venture, posted a pre-tax loss of 45 million pounds, while its ultimate holding company, Red Football, recorded a 21 million pound loss.

MISYS SEES BIG GROWTH IN SHARE SALES

UK banking and healthcare software company Misys (MSY.L) has announced strong growth in its third-quarter sales. The company said that it is winning new business from banks in emerging markets and that it has won ten new customers for its treasury and capital markets software.

Chief executive Mike Lawrie said: "As money shifts away from London and New York to other parts of the world, banks in those regions are looking to upgrade their technology to handle new functions." Revenues in the three months to the end of February were up 70 per cent on the previous year, at 193 million pounds. Orders doubled to 121 million pounds.

HBOS OPENS DOORS TO 100 PER CENT MORTGAGES

HBOS HBOS.L has become the first British bank to offer 100 per cent mortgages to customers in over a year. Although the deal is only available to existing HBOS customers with tracker mortgages who have no equity left at the end of their present deal, it is believed that other lenders may soon follow suit.

However, the widespread return of 100 per cent mortgages is considered to be unlikely by most in the industry.

HOLIDAY RITUAL OF FIXING ROADS AND RAIL BENEFITS HILL & SMITH

Hill & Smith, (HILS.L) a supplier of steel highway barriers on motorways, has become one of the beneficiaries of the UK's attempts to improve its transport infrastructure.

The company is to install 32 kilometres of road barriers on the M25 as part of the five billion pound lane-widening scheme. Hill & Smith is reaping the benefits of its involvement in such infrastructure projects; the business saw revenues increase from 329 million pounds to 420 million pounds last year, with profits rising from 31 million pounds to 39 million pounds.

Prepared for Reuters by Durrants