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Wednesday newspaper round-up: UK banks, BT,

Wed, 15th Jul 2009 06:10

Alistair Darling has summoned Bank chiefs to another meeting in Downing Street to quiz them on why they are still failing to pass on interest rate cuts to their lending charges.The Chancellor admitted that despite the Government's large stakes in leading UK banks, the lenders were still yet to get cash flowing to both individuals and businesses. Mortgage rates have risen to a record level in comparison to the Bank rate of 0.5%, while corporate lending dried up earlier this summer, the Telegraph reports.Britain's pensions regulator is braced for a battle with BT over its retirement plan, the country's biggest private sector pension scheme, which could add billions of pounds to a shortfall in savings for tens of thousands of employees and pensioners. The Financial Times has learnt that the regulator has raised questions about the assumptions BT has used in valuing the scheme's liabilities. BT disclosed a shortfall in the scheme's assets of £3.97bn ($6.48bn) at the end of March.Pay at Goldman Sachs this year is set to beat the boom levels enjoyed before the financial crisis, when top executives raked in tens of millions of dollars in year-end bonuses. The prospect of bumper pay and bonuses at Goldman, which on Tuesday reported surging second-quarter profits and is a bellwether for Wall Street banks, is likely to reignite a fierce debate in the US over bankers' pay, the FT reports.One of Britain's biggest employers in the green energy industry is to cease production within hours of a government announcement today pledging as many as 400,000 green jobs by 2015. The Vestas factory in Newport, Isle of Wight, Britain's only significant manufacturer of wind turbines, will produce its last batch of seven-tonne blades, reports the Times.Glencore, the commodities trading company, has been talking to investment bankers about selling a small stake in the business to raise $1.5bn of fresh capital. Glencore, which owns a 35% stake in London-listed Xstrata, was founded in 1974 by Marc Rich, an international commodities trader. It is now run by Ivan Glasenberg, a South African trader, the Telegraph reports.A joint venture between Channel 4 and the BBC's commercial arm is on the verge of being agreed, the chief executive of BBC Worldwide said yesterday. Speaking as revenues for the corporation's commercial subsidiary passed the £1 billion mark for the first time, alongside a sharp fall in its profits, John Smith said that the two broadcasters were on the verge of an agreement, the Times reports.Fitch Ratings is paying close attention to French plans for a "special national bond" to raise up to €80bn for projects outside the normal budget. While there is no immediate threat to France's elite `AAA' rating, the agency said concerns may mount if the country fails to map out a clear path towards fiscal discipline over the next year or so, the Telegraph reports.Intel, the world's biggest chipmaker, reported its strongest pick-up in business in more than 20 years on Tuesday, giving a major lift to the PC industry and technology sector. Intel reported second-quarter revenues of $8bn, up 12 per cent on the first quarter and well ahead of analyst expectations of $7.23bn. Its profit of 18 cents a share also easily exceeded a consensus of 8 cents, the FT reports.Carphone Warehouse's telecommunications business is examining the case for becoming a television operator after buying the UK assets of Tiscali, the Italian telecoms company. Charles Dunstone, chief executive, said Carphone was studying whether its Talk Talk phone and broadband business should expand Tiscali's TV service, the FT reports.British Airways has ruled out a rights issue, but is talking to institutional investors about a convertible bond to raise the cash to survive the "biggest crisis ever" in the industry.The airline's chairman, Martin Broughton, dubbed the last 12 months an "annus horribilis" at yesterday's annual meeting, writes the Independent.Pirc, the corporate advisory body, yesterday ratcheted up the pressure on Cable & Wireless over the changes unveiled in May that could ramp up the rewards for the telecom giant's top management. Ahead of Cable & Wireless's annual meeting on Friday, Pirc expressed concerns over the company's plans to extend the period of its long-term incentive plan from March 2010 to a year later, the Independent reports.
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