The Times
HIGH STREETS MAY BE GHOST TOWNS AFTER RECESSION ENDS
A survey by PricewaterhouseCoopers suggests that Britain's high streets could be ghost towns when the recession ends with one in five stores having closed. The growth of Internet shopping and the opening of new shopping centres, such as Westfield, in west London, and Cabot Circus, in Bristol, will exacerbate the impact of the credit crunch. PwC estimates that 3,600 shops could be seeking new tenants if 10 percent of retailers get into financial difficulty. Around 30 retailers have gone into administration this year, including chains such as Dolcis, Mk One, MFI and Rosebys.
POST OFFICES AT RISK IF THEY LOSE ACCOUNT TASK, MPS SAY
MPs fear that the post office network could face thousands of closures if it losses its contract with the Department for Work and Pensions (DWP) to operate the Post Office card account. Worries are growing that the DWP may give the basic banking account contract to PayPoint, which operates pay facilities in shops and garages. The National Federation of SubPostmasters calculates that 3,000 post offices could close because they depend on the account for business. The account is used by around 4.3 million people.
NEED TO KNOW: RETAILING
It is expected that on Wednesday the supermarket chain J Sainsbury will report a 10 percent rise in its interim profits. After intense competition between Britain's largest supermarket groups, analysts predict underlying profits will be around 270 million pounds.
The Daily Telegraph
ASTRAZENECA HOPES RAISED BY TRIALS
AstraZeneca's chief executive, David Brennan, will on Monday provide investors with details of results its two-year Crestor drug test programme which demonstrated a near 50 percent reduction in the risk of heart attacks and strokes in patients with high inflammation in the blood-stream but low to normal cholesterol levels. The results could open the way to a big new market in statins. The study, involving nearly 18,000 patients, was halted early as the benefits were so pronounced that it was considered unethical to keep treating patients with the placebo alternative.
BA EXECS IN COURT ON PRICE-FIXING CHARGES
Four past and present executives of British Airways are to appear in court this week on allegations that the airline colluded with Virgin over fuel surcharges between 2004 and 2006. The charges follow a lengthy investigation after Virgin blew the whistle on the alleged price-fixing which landed BA with a fine of 350 million pounds. The four deny the charges.
SUBWAY TASTES VICTORY ON HIGH STREET
The sandwich retailer Subway has just overtaken McDonald's to hold the largest number of outlets in Britain and Ireland. The franchise operation is now the UK's biggest seller of sandwiches, with twice the market share of nearest rival Tesco. The privately owned U.S. company has seen exponential growth in the past three years and now has 1,300 outlets in Britain and Ireland.
The Guardian
BANK LIKELY TO PREDICT 1.5 PERCENT FALL IN OUTPUT
The Bank of England is to warn that that Britain is on the brink of a deep recession as the last few months have seen a worsening of the economy. On Wednesday, the Bank is expected to cut its growth forecast in its quarterly assessment of the economy, raising the prospect of further interest rate cuts which some economist believe could fall as low as 1 percent. Separate research published on Monday shows that consumer confidence has fallen to record lows as the impact of the credit crunch is felt. In a survey by the British Retail Consortium, 84 percent of people believe that Britain is already in recession.
PREMIER LENDERS CALL IN ADVISERS OVER 1.7 BILLION POUND DEBT
It has been reported that Lloyds TSB and Royal Bank of Scotland, lenders to Premier Foods, have hired advisers Deloitte to help restructure the company's 1.7 billion pounds of debt. Premier, the owner of brands such as Hovis and Branston Pickle, was last month forced to reassure investors that it would not breach financial covenants. The company has denied speculation that it might dispose of some brands.
TRAVELODGE CUTS PRICES IN EFFORT TO SHAKE UP MARKET
Travelodge is to announce a 5 million pound package of price cuts aimed at winning customers off its mid-market rivals. Guy Parson, managing director, said the budget hotel chain was mirroring the tactics used by budget airlines where during the previous recession travellers were weaned off higher fares for good. Travelodge is cutting room prices by an average of 10 percent for the remainder of the year in 15 of Britain's biggest cities.
The Independent
BANKERS' OFFER TO KEEP HBOS INDEPENDENT IS REJECTED
Two senior Scottish bankers, Sir George Mathewson and Sir Peter Burt, approached HBOS over the weekend with a proposal to keep the group independent. The bankers maintain that HBOS no longer needs Lloyds TSB since the 11.5 billion pound cash injection provided by the government. They say the deal is neither in shareholders' nor the public's interest. Sir George and Sir Peter, who used to head Royal Bank of Scotland and Bank of Scotland respectively, proposed taking over as chairman and chief executive of HBOS. The proposal was rejected.
CBI REVEALS 29 PERCENT OF SME'S MADE CUTS
Reports published on Monday show job prospects across Britain becoming trickier as smaller manufacturers cut jobs. The CBI says that 29 percent of smaller businesses have made cuts to their workforce while 17 percent have expanded in the last quarter -- leaving a balance of minus 13 percent, the biggest quarterly fall since October 2003. According to the CapGemini/CIPD Labour Market Outlook, only 75 percent of companies are planning for new staff in the next three months, compared with 86 percent in the spring. Over a quarter of smaller businesses have contingency plans for redundancies over the coming year.
CANDYS SELL OUT OF CHELSEA BARRACKS
CPC Group, the Guernsey-based business owned by billionaire property tycoons Christian and Nick Candy, has sold its equity stake in the Chelsea Barracks luxury development scheme to joint venture partner Qatari Diar. The brothers' development and interior design business, Candy & Candy, is to continue to work on the project. CPC has also sold to Qatari Diar its stake in the plan to purchase the Grosvenor Waterfront.
Prepared for Reuters by Durrants.
Keywords: BRITAIN PRESS/BUSINESS
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