PRESS DIGEST - British business - Dec 28 =4

Guardian

GRIM MORTGAGE DATA MAKES CUT IN LOAN RATES MORE LIKELY

Calls for another interest rate cut in early 2008 are likely to be fuelled by data released by the British Bankers Association on Thursday, which showed that although mortgage approvals in November recovered slightly from the all time low recorded in October, the figure of 44,811 was still the second-lowest on record. The weak November data "provides yet further evidence that housing market activity is now slowing markedly in the face of stretched affordability, as well as the tightening lending practices resulting from the credit crunch", according to Howard Archer of Global Insight.

SHELL TAPS INTO COAL METHANE IN CHINA

Shell (RDSa.L) (RDSb.L) has purchased a 55-percent equity stake in a pioneering project to meet some of China's soaring demand for energy using methane gas from underground coal seams. Lim Haw-Kuang, executive chairman of Shell companies in China, said: "We are confident that our upstream technologies and expertise can unblock the vast potential of coal-bed methane in the country."

AMAZON GOODS FLYING OFF THE VIRTUAL SHELVES

Despite fears of a downturn on the high street next year, online retailer Amazon (AMZN.O) is upbeat about the future of web shopping following its busiest Christmas since opening in 1995. Internet shopping accounts for 5 to 7 percent of all retail spending, and Brian McBride, Amazon's UK managing director, expects this to rise to 20 percent over the next few years and said the company was "planning for continued growth."

Prepared for Reuters by Durrants