PRESS DIGEST - Financial Times - Aug 18

ENDLESS SUMMER SALES MASK LOWER MARKDOWNS

Figures from TNS Worldpanel indicate that there is a much lower level of discounting in stores than there was last year. While discounting has become more spread through the year, the Office for National Statistics says that there have been fewer overall price cuts in the clothing, footwear, furniture, household equipment and maintenance sectors.

For example, in women's outerwear, prices last July were 6.6 lower than the previous month, this year they were only 5 per cent lower.

FAMILIES '13 POUNDS A WEEK WORSE OFF'

Supermarket chain Asda is claiming that rising costs are making British families 13 pounds a week worse off. Asda says that rising food, utility, housing and transport prices have cut families' disposable incomes by nine per cent over the past year, leaving them with just 130 pounds a week to spend on entertainment and recreation.

HEDGING BECOMES FOOD AND DRINK TO THE MAKERS OF CONSUMER.

Consumer goods and food companies are overhauling the way in which they purchase and hedge commodities after having been affected by increases in the prices of raw materials.

For the first time, companies are starting to use commodity trading houses to hire traders and are buying complex financial trading systems.

This move suggests that executives have realised that commodity markets are undergoing a structural change driven by rising demand from emerging markets.

BROWN URGED TO INCREASE TAX ON RICHEST

The health minister Ivan Lewis has called on Gordon Brown to increase the tax on higher earners in order to protect the middle class.

Mr Lewis said that the only way Labour could win the next election was by protecting the living standards of the 'mainstream majority', if this necessitated a higher tax on the wealthy - those earning over 250,000 pounds - then so be it.

A 'windfall tax, enhanced government support for mortgages, a stamp duty holiday and higher taxes for the highest earners may be necessary and popular' to help 'those people who work long hours for their two holidays a year, leisure club membership (and) meals out,' he said.

GROUPS REIN IN NON-EXECS PAY RISES

An annual survey conducted by PwC reveals that pay rises for non-executive directors slowed again last year even though companies expected them to do more for their fees.

The consultancy reported that fees rose by 15.6 per cent over the past year compared to 16.7 in 2006-07, and 25 per cent in 2005-06. Median average annual fees for a FTSE 100 non-executive chairman stood at 313,000 pounds and 65,000 pounds for a non-executive director.

PwC said that actual annual increases would in many cases have been smaller since, for many, pay was reviewed only every third year.

WOOLWORTHS REBUFFS BAUGER

Woolworths WLW.L rejected on Sunday an attempt by Bauger to break up the group and acquire its stores. The plan would see the stores split from the group's wholesale and DVD publishing divisions.

Woolworths says that the offer for the stores, believed to be in the low tens of millions of pounds, undervalues the business and that the restructuring is impractical. The retailer said that the proposal 'required the company to retain all the pension liabilities for current and former employees of the retail business. This is unacceptable to the board.'

Shares in Woolworths closed up on Friday at 6.65 pence, valuing the group at 100 million pounds.

BID INTEREST IN AIRPORTS SURGES.

Rival groups are preparing bid approaches for UK airports owned by BAA FER.MC as the UK airports operator completes its complex 13 billion pound refinancing package on Monday.

The interest in the airports has been triggered by a Competition Commission preliminary report to be published this week which is expected to recommend the break-up of BAA's monopoly ownership of the main London and Scottish airports. Potential bidders include Manchester Airport Group, Global Infrastructure Partners and Hochtief

BP SETS TIMETABLE FOR DUDLEY DECISION

It is likely that BP (BP.L) will discuss as early as next month whether Robert Dudley can remain chief executive of TNK-BP.

Mr Dudley fled Russia last month citing harassment and mid-level talks are under way over what to do about TNK-BP's management, as are talks on whether BP should agree to an IPO of TNK-BP.

Last week, a Moscow court suspended Mr Dudley as chief executive of TNK-BP for two years, a ruling which BP says it will appeal against. The court decision came amid a battle for control over the 50-50 partnership between BP and TNK-BP's Russian shareholders who have repeatedly raised concerns regarding the company's failure to adhere to Russian laws.

BRIT EYES CHANGE OF DOMICILE

Brit Insurance (BRE.L) has appointed Ernst & Young to advise it on a possible move out of the UK to a more favourable tax regime.

The insurer has not singled out any particular areas of interest, but Bermudas, the Cayman Islands, Ireland and Switzerland are among those that offer preferable tax rates to the UK.

Amlin (AML.L), the biggest UK-listed Lloyd's insurer, has also threatened to leave the UK and several other Lloyd's insurers have moved their head offices abroad. Businesses have called on the Treasury to simplify and reduce corporation tax and the Treasury has put on hold plans to tax overseas profits.

VETERAN RICHARD PYM TO LEAD B&B

Richard Pym, the former head of Alliance & Leicester ALLL.L, has been appointed chief executive at Bradford & Bingley BB.L. Mr Pym, who is also chairman of Halfords (HFD.L) and non-executive chairman of Old Mutual (OML.L), joins B&B in the wake of its 400 million pounds rights issue which had been dogged by problems since its launch in May.

The fundraising closed on Friday with investors taking up only 20 per cent of the shares on offer.

Prepared for Reuters by Durrants