The Times

SWEDES PREPARE TO SNAP UP STAKE IN BRITAIN'S NEW NUCLEAR

REACTORS

Vattenfall, Europe's fifth-largest electricity utility, is weighing up plans for a potential multibillion-pound investment in EDF's project to construct four new reactors in the UK at Hinkley Point in Somerset and Sizewell in Suffolk. EDF, which is 82 per cent owned by the French government, is looking to offload part of its stake in the project as it aims to reduce its 34.4 billion pounds debt burden. A spokesperson for Vattenfall confirmed that the company was "open to new opportunities" in Britain. "If we decide to make an active move then we will inform the market," he added.

SURPRISE FALL IN YOUTH UNEMPLOYMENT DISMISSED AS THE 'LULL

BEFORE THE STORM'

Unemployment in Britain defied expectations that it would

rise above 2.5 million as new official figures showed joblessness at 2.47 million in the three months to July. Similarly, the number of young people out of work dropped to 946,000, surprising economists who were expecting youth unemployment to jump through the one million mark. However, David Blanchflower, a former member of the Bank of England's Monetary Policy Committee, said the figures on youth joblessness simply pointed towards the "lull before the storm". Wednesday's better-than expected data lead some analysts to revise their forecasts that unemployment would climb to three million in 2010.

BAE LEFT LICKING TS WOUNDS ON ARMOR ACQUISITION

After losing a major contract to build armoured trucks for the US Army, BAE Systems warned on Wednesday that it might have to write down a "significant" part of the 2.4 billion pounds goodwill linked to its acquisition of Armor Holdings in 2007. In a trading update, the company also denied any wrongdoing following an earlier announcement by the Serious Fraud Office that BAE could be charged over accusations of corruption in arms exports. It added that it was not possible to estimate the potential financial impact of the SFO's inquiries.
TEMPUS:

N Brown (buy)

Datatec (buy on weakness)

Air Partner (there will be better times to buy)

The Daily Telegraph

DIAGEO SALES DECLINE WORSENS AS US STOCKS CUT FURTHER

Spirits maker Diageo has reported a worse-than-expected six per cent drop in first-quarter sales, as its US customers continued to reduce the amount of stock they hold. The fall is twice the amount expected by analysts and greater than the two percent contraction of the final quarter of the last fiscal year. The company said it expects "low single-digit" profit growth this year and is on track to slash costs by 120 million pounds. Diageo's cost-cutting programme includes the closure of two sites in Scotland - a decision attacked by Scotland's First Minister.

GRADE BLAMES 'SELF-OBSESSED' MEDIA FOR ITV EXECUTIVE SAGA.

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