(GRG.L) Greggs PLC Buy/Sell

HIGH STREET DISCOUNTS HIT WEB SALES

According to a study by IMRG, which represents online retailers, and Capgemini, the IT services company, discounting by retailers on the high street is eating into the growth in online spending.

Internet sales rose by 1.9 per cent between August and September, the lowest monthly growth recorded since the launch of the survey in 2000.

Capgemini's head of retail, Chris Webster, said, "This is the lowest growth we have seen, for two main reasons: people weren't buying their seen, for two main reasons: people weren't buying their autumn/winter clothes because September was so warm; and because of promotional activity on the high street."

HARMAN VOWS TO END MEN-ONLY BOARDS

Harriett Harman told MPs at a Commons Treasury Committee inquiry into sexism in the City that the government would have to look at measures to combat the 'nightmare' of men-only boards at City companies if businesses fail to take action voluntarily.

The women's minister said that she hoped Sir David Walker's review of corporate governance, due to be published next month, would promote gender equality in the board room as an important factor in risk management.

KING CALLS FOR BANKS' FUNCTIONS TO BE SPLIT

On Tuesday, Bank of England governor Mervyn King called for the splitting of banks into separate utility companies and risky ventures in order to prevent their becoming "too important too fail".

The call for a break-up places King in opposition to the Treasury and the Financial Services Authority, which have both specifically rejected the idea of breaking up banks.

International regulatory trends are also geared towards raising the quantity and quality of capital at financial institutions rather than breaking them up.

INCHCAPE RAISES FORECAST AFTER SCRAPPAGE DEALS

In its third quarter trading statement, Inchcape said that its full year results will be "significantly better" than expected, although the car dealer cautioned that the market looked less robust going into 2010.

For the three months to September 30, turnover fell 13.4 per cent compared with the same period last year. However, this represented a 2.2 per cent increase on figures for the second quarter, indicating that the market may be bottoming out.

HEYWOOD'S RESTRUCTURING HOPES LEFT IN TATTERS

On Tuesday, Heywood Williams entered into a pre-pack administration agreement. Under the terms of the pre-pack, 80 per cent of the building products manufacturer will be owned by the company's lenders - who in return will write off 40 per cent of the company's debt claims.

The agreement will also see the company provided with six million pounds in fresh funding, 10 per cent of which will be contributed by Heywood's directors and 10 per cent from the company's 1,000 employees.

GREGGS PLOTS BOLD EXPANSION

Greggs has announced plans to increase the company's current rate of expansion by opening 600 new stores over the next few years.

The bakery chain expects to spend up to 300 million pounds on expansion in the next five years, financing the investment through cash.

Like-for-like sales at the company rose 0.2 per cent during the 16 weeks to October 17, in line with management expectations but slightly below some analysts' forecasts.

QATARIS SELL 3.5 PER CENT STAKE IN BARCLAYS FOR 1.4 BILLION

POUNDS

Qatar Holding, Barclays' biggest shareholder, sold a 3.5 per cent stake in the bank on Tuesday in a deal worth 1.4 billion pounds.

The Qataris made a 615 million pound profit on the deal and may use the funds to increase their 26 per cent stake in UK supermarket group J Sainsbury.

Credit Suisse placed 379 million Barclays shares in the market at 360 pence, a six per cent discount on Monday's closing price. Shares closed down almost five per cent at 363.75 pence.

PRUDENTIAL CONSIDERS SEPARATE ASIA LISTING

UK insurer Prudential is thought to be conducting a preliminary assessment of the likely benefits of a separate listing in Shanghai or Hong Kong.

The firm saw strong demand for a 750 million dollar hybrid capital raising in Asia this year and a listing could be used to raise capital to further the bank's ambitions in the region.

HSBC is expected to be the first foreign company to list in Shanghai after regulations are reformed next year.

CADBURY BRACED FOR KEY UPDATE

A third-quarter trading update from Cadbury is expected to show strong top-line sales growth. Analysts believe that Cadbury will use the Wednesday update to bolster its defence case against Kraft, which has until November 9 to submit a bid for the confectioner.

Bernstein Research analyst Andrew Wood believes that Cadbury could highlight its value as a standalone group by raising its guidance on full-year organic revenue to the "middle" of the four-to-six per cent range.

PEARSON RAISES FULL-YEAR GUIDANCE

Pearson, owner of the Financial Times, raised its full-year earnings guidance on Tuesday after its education business showed "substantial" growth in digital services.

Sales for the nine months to September were up 20 per cent, or two per cent at constant exchange rates. Operating profit for the period was up 19 per cent, three per cent at constant rates.

Pearson revised its forecast for full-year adjusted earnings per share from the 57.7 pence predicted in July to "at or above 60 pence per share".

Prepared for Reuters by Durrants
Keywords: PRESS DIGEST Financial Times

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