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PRESS DIGEST - Financial Times - August 27
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LONDON, Aug 27 (Reuters) -
CALLS TO POSTPONE FLEXIBLE WORKING REJECTED
The government has rejected pleas from businesses to delay the introduction of regulations which will see 4.5 million more employees gaining the right to request flexible working hours. Employers' groups had argued that the regulations should be postponed in light of the current economic slowdown. The new rules mean that from April, parents with children up to the age of 16 will have the right to ask for flexible hours. Currently, this right is restricted to parents of children aged up to six. The Department of Business said it is confident that companies will have enough time to deal with the changes.
MORTGAGE APPROVALS REMAIN NEAR RECORD LOWS
The British Bankers' Association has reported that mortgage approvals remained close to record lows last month, with weaker deposit growth and lower credit card spending indicating growing financial strains on households. The organisation's report stated that total mortgage approvals by its members reached only 22,448 in July, 65 per cent below the levels seen one year ago. The monthly increase in net lending remained steady at 4.3 billion pounds and the average value of loans for house purchases was 138,000 pounds, 11.9 per cent below last year's figure. David Dooks, the Association's director of statistics, said that the housing market is unlikely to recover whilst lending remains so low.
TAX RULING TO BRING WINDFALL FOR RANK
The VAT and Duties Tribunal has ruled that Revenue and Customs was inconsistent in the way it levied value added tax on slot machines, meaning that Rank , the gaming business, could receive a 25 million pound windfall. The case revolved around variations in the tax treatment of 'one-armed bandit' gaming machines. Deloitte, which advised Rank in the case, said the ruling could affect other gaming machine operators who could also claim tax refunds. Revenue and Customs has said that it will consider the Tribunal's overall findings before deciding whether it should appeal.
CRUNCH PUTS GAY WORKERS IN CLOSET
A new survey by recruitment specialist Joslin Rowe Associates has revealed that the proportion of City job candidates who are prepared to identify themselves as gay has fallen due to concerns about finding new work in light of the credit crunch. Almost 1,500 job applicants were queried for the poll. Tara Ricks, managing director of the firm, said: 'The City was moving away from its traditional image of white, heterosexual and male. but it looks as though progress has stalled'. She added: 'The credit crunch has made people feel less secure -- hence the falling numbers'.
BT LOOKS TO DITCH INDIAN STAKE
BT has indicated that it is considering the sale of its 31 per cent stake in Tech Mahindra, the Indian software services firm, after deciding that the holding does not fit into its long-term strategy. BT is currently keen to sell most or all of its stake in the joint venture, which has a market capitalisation of 1.2 billion pounds. It is understood that any sale would become the biggest of its kind in the Indian outsourcing sector and will create interest from both domestic and overseas private equity firms which are attempting to deploy funds in the region.
INCREASE IN PREMIUM TRAVELLERS SEES VIRGIN LIFT PROFITS
Virgin Atlantic has released its latest business figures, posting a 38 per cent rise in pre-tax profits to 60.9 million pounds. The results come as the group prepares to battle a new transatlantic alliance between British Airways and American Airlines. Virgin has previously condemned BA's attempts to enter into a joint venture with American, and is soon set to mount an advertising campaign against the proposals. The airline will also meet with US regulators to spell out its opposition to the plans. 'There are a lot of legitimate concerns about the effects this monopoly will have on other airlines,' said a Virgin spokesman.
TAYLOR WIMPEY TALK LIFTS SECTOR
Market sentiment towards the construction sector has lifted following reports that a debt lifeline is being offered to Taylor Wimpey by its creditors. Reports in the trade press suggest that Taylor Wimpey's lenders have agreed to relax loan conditions without forcing the company to issue more shares. The company has declined to comment on the matter. The news followed the release of poor sales figures from Bovis Homes , which revealed that it is currently selling less than two homes per day -- almost two thirds less than last year.
AGGREKO BUOYED BY STRONG EMERGING MARKET DEMAND
The world's largest supplier of mobile electricity generators, Aggreko , has said that a divergent global economy and accelerated demand in emerging economies has compensated for softer trading in Europe and North America. The company reported a pre-tax profits jump of 42 per cent to 67.9 million pounds on a 28 per cent advance in turnover to 408 million pounds in the six months to June 30. Chairman Philip Rogerson has said he expects the company's full-year performance to exceed expectations.
WESTFIELD AND SIMON DECLARE LIBERTY STAKES
Foreign retail real estate giants Westfield and Simon Property Group have declared stakes in Liberty International , increasing the likelihood of a bid for the FTSE 100 retail firm. Australia's Westfield announced that it now possesses a stake of just under three per cent in Liberty, which has a total market value of 3.4 billion pounds. The announcement comes just days after America's Simon declared a holding of 3.5 per cent. Market speculation has started that Simon and Westfield are now working in tandem on a joint bid, with one analyst remarking that they have both 'pulled up a seat at the table'.
RADIO REVENUE CLIMB HELPS UTV DEFY ECONOMIC WOES
UTV Media has defied the weakening Irish economy and stalling media sector, reporting strong financial growth in the first half of the year. In contrast to many other media companies, the Belfast-based television and radio group announced that revenues were up eight per cent to 62 million pounds. Chief executive John McCann said that although the Irish market is now 'soft', his company is continuing to perform well. The group's Irish radio stations contributed 11.4 million pounds to the group's total revenue.
Prepared for Reuters by Durrants
tf.TFN-Europe_newsdesk@thomson.com
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