PRESS DIGEST - Financial Times - Aug 19
MINISTERS WARY OF RISK-SHARE PENSIONS
Ministers have decided against implementing changes to the pensions bill that the Association of Consulting Actuaries claimed would make it easier to introduce more "risk-sharing" pension schemes. Despite initiating consultations on the matter, pensions minister Mike O'Brien said he would not be making amendments when the bill reaches its final parliamentary stages this autumn. O'Brien added that legislation could be added to a welfare reform bill that has been promised for 2009 if the consultation finally backs the changes.
INDUSTRY TO FIGHT TOBACCO DISPLAY BAN
Tobacco firms and retailers are preparing to oppose proposals that would see the end of vending machines and put tobacco products out of sight by relegating them to beneath shop counters. A consultation period on the Department of Health's "future of tobacco control" document ends in September, but the Association of Convenience Stores claims that not all options have been considered. Bob Dyrbus, finance director of Imperial Tobacco (IMT.L) said: "We believe that product display restrictions are unnecessary, ill-conceived and will not deliver the government's stated objectives to reduce tobacco consumption".
HOMES FOR RENT EXCEED DEMAND
The latest figures from the Royal Institution of Chartered Surveyors reveals that the supply of rental accommodation rose at a record pace in the last three months, surpassing the rise in demand from tenants. The lettings survey showed that while people had been forced into rental accommodation due to difficulties obtaining mortgages, record numbers of homeowners were being forced to let out properties they are unable to sell. Estate agents in London and the South East have already started to see downward pressure on rents amid heightened competition between new landlords. Jane Ingram, head of lettings at Savills, said: "It has been much more of a tenants' market."
TUBE STAFF ACCUSED OF 'POLITICAL' STRIKE
Workers employed by Tube Lines who plan to stop work for 72 hours from midday on Tuesday have been accused by the firm's chief executive Terry Morgan of staging politically motivated industrial action. Morgan claims that the latest dispute over pay and conditions reflected the RMT Transport union's effort to "return all Tube work to the public sector by destroying Tube Lines". Bob Crow, RMT general secretary, said: "If Terry Morgan doubts this is an industrial dispute, he should try putting some more money and better conditions on the table."
BUOYANT BHP PRESSES RIO BID
BHP Billiton (BLT.L) strengthened its case for taking over rival Rio Tinto (RIO.L) as it unveiled record full-year profits of 23.5 billion dollars thanks to record production in key commodities and strong demand in China. Chief executive Marius Kloppers said the takeover, valued at around 127 billion dollars made "more sense than ever" as rising fuel and labour costs begin to exert pressure on the industry's profits margins. Nevertheless, the mining giant warned that the commodities sector as a whole faced challenges as "strong global demand for resources continues to provide cost challenges for the whole industry."
NATIONWIDE PLANS IRISH OPERATION TO GAIN ACCESS TO ECB FUNDING
Nationwide plans to open a savings operation in Ireland, thereby allowing it access to funding from the European Central Bank. The building society aims to attract retail savings by post, phone and online in the Republic, subject to approval from the Financial Services Authority and the Irish Financial Services Regulatory Authority. The mutual explained that an Irish division would allow it to attract deposits from outside the UK as well as giving it access to ECB funds allocated for easing credit crunch funding problems. The group pointed out that it continued to have a strong balance sheet and that its core equity Tier 1 ratio was higher than most banks.
