HANDS-OFF POLICY FOR BANKS

Sir Philip Hampton and John Kingham, the men who are to manage the state's 37 billion pound stake in the UK's part-nationalised banks, have stated that they will operate at "arm's length" with no boardroom representation, since their task is to "manage the taxpayer's investments, not to mange the bank." Their approach contradicts Alistair Darling's assertion that the taxpayer would have "appropriate representation" on the boards of Royal Bank of Scotland and the merged Lloyds TSB. HBOS, with the government making the necessary appointments. The lack of direct representation will upset MPs who believe the government should use its influence as a shareholder to keep the banks in check.

OVER 17,000 LOSE JOBS IN ONE WEEK
BT's announcement on Thursday of plans to axe 10,000

jobs has taken the total redundancies announced by UK companies this week to over 17,000. Redundancies at BT and JCB, which is cutting 400 jobs, follow revelations of 2,200 job losses at Virgin Media, 1,000 at Taylor Wimpey and 1,300 at Yell . Many of the job cuts were blamed on the recession, while some, such as those at BT and Virgin Media, were attributed to long-overdue restructuring. John Cridland, deputy director-general at the CBI, blamed the round of job cuts on a "dramatic and rapid" drop in confidence that had affected demand in the past six to eight weeks.

DROP IN TOURISM SPARKS CALL FOR MARKETING BOOST

VisitBritian, the national tourism agency, has called for

urgent action to help promote the UK's tourist destinations after figures from the Office of National Statistics revealed that visitor numbers in the last quarter dropped three percent lower to 9.3 million and spending decreased by two percent to 5.1 billion pounds. The agency has called for a public-private partnership to fund a marketing campaign to promote Britain to tourists, particularly those from the US. Chief executive Tom Wright said the impact of the recession on the industry could be considerable unless action is taken, pointing out that the fall in sterling and the 2012 Olympics represent ideal opportunities to promote Britain.

TENDER AXED TO SAVE POST OFFICE CARD

Ministers cancelled a one billion pound procurement on

Thursday, leaving the Post Office without competition for the five-year contract to run a card account for 4.5 million people and avoiding the uproar that would have resulted from the closure of 3,000 more post offices. James Purnell, the work and pensions secretary, told MPs that bidders will be compensated for the costs incurred by the rescinded tender, but refused to disclose its terms or the cost of the recompense. Citibank, the main rival to the Post Office for the contract, said in a brief statement that it was "disappointed with the decision".

LADBROKES RESILIENT IN FACE OF SPREADING GLOOM

Betting operator Ladbrokes has defied the economic gloom surrounding the UK economy by posting a ten percent increase in group profits in the four months to October 31. The company's gross win - the amount it retains from wagers after paying out on winnings - rose 12 percent compared with the same period last year. Gross win from Ladbrokes' retail gaming machines climbed 14 percent higher, while high rollers accounted for 17 million pound profit. However, gross win from over-the-counter bets dropped by two percent and the group also saw poor results in the last two weeks due to Uefa Cup and Breeders Cup results.

Prudential is cutting final bonus rates on around 1.8 million with-profit policies by up to ten percent due to the "continuing poor investment environment". The total value of its with-profits fund has fallen 13 percent and its decision falls in line with similar moves by its industry peers. Nevertheless, the group will not bring down its annual bonus rates or alter its approach to market value reductions for those wishing to cash in their investment early. Prudential chief actuary David Pelsham pointed out that despite market volatility, the group has "delivered what it said it would - smoothed returns to policy-holders, who will see only a small change in their year-on-year policy values."

JCB IS FORCED TO CUT EXTRA 398 JOBS

Construction equipment maker JCB has announced 398 more

redundancies less than three weeks after axing 180 jobs. Chief executive Matthew Taylor blamed a slowdown in global building activity and pointed out that previously buoyant markets in areas such as the Middle East and Latin America were amongst the worst hit. Industrial analysts had hoped that the group's exposure to emerging markets would have provided a protective buffer to the economic downturn in Europe. The new round of job losses is likely to upset the company's relations with its employees. GMB union has said it was consulting with members on their next course of action.

RIGHTMOVE GRIM ON MEMBERSHIP

Property search website Rightmove has warned that its estate agency membership dropped by 15 percent in the year to October, with most of them falling victim to the collapse in the housing market. Membership stood at 10,700 at the end of October, down from a high of around 12,600 a year ago. Average revenue per advertiser edged higher than in the first half due to an increase in adverts for rental property. The company warned that the housing market continued to be challenging, with agents withdrawing from the market due to the low volume of transactions.

Marshalls, seller of natural stone and concrete landscaping products, has blamed the disappointing summer weather and the downturn in the housing market for faltering demand. The company, which sponsors the Chelsea Flower Show, said it would cut costs and reduce capital expenditure in the face of grim prospects for its domestic business. The company's like-for-like sales for the four months to the end of October fell by ten percent to 128 million pounds as distributors of its products sought to cut inventories in anticipation of weakening demand.

CRUNCH SPREADS TO CREDIT CARDS

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