Glance-PRESS DIGEST - Financial Times - Nov 11

MOVE TO PROTECT PENSIONS OF HIGH EARNERS BLOCKED The High Court has rejected attempts by pension fund trustees to buy annuities that would cover additional benefits that are higher than those guaranteed by the Pensions Protection Fund (PPF). The court case centred on the trustees of a pension scheme whose sponsoring employer entered administration in 2004. Lawyers said the ruling meant that trustees would be unable to take riskier business investment decisions in the future on the basis that "if it all goes wrong the PPF will pick up the pieces". MAGIC CIRCLE LEGAL BILLS UNDER FIRE A survey of more than 40 legal firms to be published in Legal Week magazine has found that leading "Magic Circle" lawyers often fail to provide predictable and value-for-money bills. The poll of corporate clients ranks the five traditional prestige firms -- Clifford Chance, Linklaters, Freshfields Bruckhaus Deringer, Allen & Overy and Slaughter and May -- below average, highlighting increasing tensions over the issue of legal fees between big businesses and their solicitors. The findings reflect the rise in power of company in-house lawyers and cost-cutting measures triggered by the credit crunch. TRADE DEFICIT FLAT AS DOMESTIC DEMAND GROWS The Office of National Statistics has reported that the trade deficit increased marginally in the third quarter as import volumes rose faster than exports. The deficit shrank by 208 million pounds ($346.5 million) to 8.4 billion pounds in the three months to September, compared with a 1.2 billion pound decline in the second quarter. Import volumes increased at an almost 14 per cent annualised pace in the quarter, compared to a 10 percent rise in exports amid a pick-up in global trade. CITY JOB VACANCIES RISE 15 PERCENT TO HIGHEST THIS YEAR Financial recruitment specialist Morgan McKinley has revealed that new job opportunities in the City increased by 15 percent last month to the highest level this year. Employment vacancies rose to 4,410, compared with 3,843 in September. Although the October figure was 19 percent below the equivalent level a year ago, the drop was the smallest seen for 16 months. Andrew Evans, managing director of Morgan McKinley's financial services division, said that while progress during 2009 had been "slow and somewhat unsteady", employers' confidence in hiring had "slowly but surely" started to return. TOP SHAREHOLDER'S STANCE UNCLEAR AS NAT EXPRESS LAUNCHES CASH CALL National Express will today launch a 370 million to 375 million pounds rights issue, a move which will draw a lie under weeks of speculation over the company's future. The rights issue will be fully underwritten, with Merrill Lynch and Morgan Stanley taking the lead and a syndicate of other institutions accounting for the balance. Shares will be issued at a 40 percent discount to the ex-rights price. There remains some uncertainty over whether the Cosmen family, which is the company's largest shareholder, will back the rights issue. The Cosmen family has reservations about the bus and rail operator's strategy and has been canvassing shareholders and investors over the past week, urging them to consider a merger with Stagecoach . REVENUE PRESSURE BESETS SAINSBURY Figures from market research group Nielson reveal that sales at Sainsbury's rose 4.7 percent in the 12 weeks to Oct. 31, the lowest rate of expansion of the four big supermarkets and less than Tesco's 5.6 percent. Figures from rival TNS Worldwide showed Sainsbury's sales growing at 4.4 percent and Tesco's growing at 4.8 percent. However, figures from TNS of total till roll showed Sainsbury growing at 5.6 percent while Tesco had only a 4.7 percent growth. Sainsbury declined to comment on the figures but Tesco said on Tuesday that it was continuing to converge with rivals. LLOYDS BANKING CUTS 5,000 JOBS Lloyds Banking Group has announced that it will cut 5,000 jobs as it integrates its wide-ranging businesses. 2,820 of the cuts will come from group operations, which include collections, IT and payment services, the remaining jobs losses will be split between the insurance and mortgage businesses. Unite has reacted angrily to the cuts, saying they demonstrated "the depth of corporate arrogance within this taxpayer-supported bank." Rob MacGregor, national officer at Unite, said: "This country's financial sector should be looking towards the future, rather than continuing to slash jobs without proper consideration of how to rebuild the public's confidence in our tarnished banking sector." YELL TO RAISE 660 MILLION POUNDS FOR DEBT DEAL Yell is to raise 660 million pounds in a share issue the proceeds of which it will use to cut debt to 3.5 billion pounds, the publisher has also committed to pay back a further 260 million pounds over the subsequent 18 months. Yell, advised by JPMorgan and Rothschild, will pay about 80 million pounds in fees. On Tuesday, Yell also reported a fall in interim profits of more than two thirds to 38.7 million pounds on revenue which dropped four percent to 983 million pounds. Earnings per share fell 70 percent to 3.3 pence. Shares in the company closed at 46.25 pence, down 1.75 pence. BABCOCK EYES RAPID GROWTH Babcock has said that it expects pressures on defence budgets around the world to speed up its international expansion as governments consider outsourcing to reduce costs. The engineering support services company's portfolio is dominated by long-term contracts to support the Royal Navy, although it does already have some exposure to international markets through work on submarines in Australia and Canada. The company has also won a contract to provide flying training for the South African Air Force. For the six months to September 30, Babcock reported pre-tax profits up from 50.9 million pounds to 66.1 million pounds. Revenue fell from 942 million pounds to 935 million pounds. Shares on Tuesday closed at 619.5 pence, down 22.5 pence. PRIVATE EQUITY GROUPS ON THE GRID FOR BRITISH CAR AUCTION British Car Auction (BCA), Europe's largest vehicle reselling network, has attracted bids from a number of private equity groups. Bridgepoint, Cinven, BC Partners and Clayton Dublier & Rice are all expected to submit final offers next month that will value the company at between 400 million and 500 million pounds. BCA, which sells over 12,000 vehicles a week at physical and Internet auctions, was bought by private equity group Montagu in 2006 for 450 million pounds. Prepared for Reuters by Durrants ($1=.6002 Pounds) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved.

The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.