Glance-PRESS DIGEST - Financial Times - Nov 13

PAY GAP FOR WOMEN NARROWS TO 22 PERCENT Figures published by the Office for National Statistics show the gender pay gap in Britain narrowed by 0.5 percentage points to 22 percent last year. The pay gap for the public sector narrowed by one point to 21 percent, but in the private sector it increased by 0.7 points, leaving women being paid an average of 28.8 percent less than men. Harriet Harman, minister for women and equality, said she welcomed the overall narrowing but insisted it was "disappointing to see the private sector fall even further behind the public sector." RED TAPE DELAYS NEW COMPANIES The Conservative Party has accused the government of making a "complete mess" of the implementation of the Company Act 2006 after it was revealed that thousands of new start-up companies are witnessing a delay in their applications. John Penrose, the shadow business minister said: "It's appalling that with so many businesses going bust every single day the government is making it so much harder for new ones to start up". In response to the accusation, Ian Lucas, the business minister, said the delays are down to "data processing issues, customer and staff lack of familiarity with new requirements, and initial issues with system performance." MYNERS BACKS INSURERS OVER EU CAPITAL RULES Lord Myners, the City minister, is calling for the government to renegotiate proposed EU regulation in order to protect the rights of British pensioners. Speaking at the Association of British Insurers on Thursday, Myners said: "The government has a social duty to the pensioners and future pensioners of the UK, and the industry has a robust technical basis for its concerns." The EU's Solvency II rules, due to take effect in 2012, are intended to set the capital requirements of insurers at a uniform rate, but the industry fears that complicated changes to annuity rates will discourage people from saving. COSTS CUTS BOOST BT'S EARNINGS BUT PENSION DEFICIT CASTS SHADOW BT reported better than expected results, which it credited to an aggressive cost cutting strategy. However, the growing pension deficit is likely to overshadow the company's claims that it has made significant progress towards a turnaround. BT is Britain's market leader in fixed-line phones but it also has the largest defined benefit scheme. It is thought a legal move by BT pension trustees to gain clarity on the scope of the "crown guarantee" could help the telecommunications company to lower its top-up payments to the pension scheme. RESURGENT STOCK MARKETS HELP 3I BOUNCE BACK Private equity firm 3i reported a return of 81 million pounds in the six months to September on Thursday, after posting a record 2.15 billion pound loss in the year to March. The group's portfolio was boosted by recovering equity markets but the effect was offset by falling earnings, weaker sterling and a pension charge. 3i shares have more than doubled in value from their March lows and investors reacted to Thursday's news by taking profits. Shares fell 11.4 pence to close trading at 267.5 pence. BA AND IBERIA PREPARE FOR LANDING ON MERGER Despite questions over synergies and savings, the proposed merger of British Airways and Spanish carrier Iberia looks set to go ahead.

Shares in both airlines leapt in Thursday's trading as investors anticipated the tie-up. The trend towards consolidation has long been a feature of an airline industry overburdened with capacity and the recession has made the case even more pressing, but analysts question whether the current economic climate will see the proposed deal achieve the same synergies enjoyed by previous mergers. DANISH FRONTAGE -- DEBENHAMS STEPS INTO MAINLAND EUROPE Debenhams has agreed the acquisition of leading Danish department store chain Magasin du Nord in a 12.3 million pound deal. Analysts said that the acquisition -- Debenhams' first in mainland Europe -- would be earnings neutral in year one, but would contribute around eight million pounds in the second year. Debenhams has been seeking opportunistic buys since June's 323 million pound fund raising. WAITROSE CLAIMS SALES BOOST FROM M&S ADS Showing its strongest sales results for three years Waitrose will report on Friday that total sales rose by 17.1 per cent in the week to Nov. 7, compared with the previous year. A report available on the supermarket chain's website concludes that sales received a boost from M&S's ad campaign featuring a comparison of prices. Richard Hodgson, commercial director, said: "Maybe we should be thanking the M&S marketing department for highlighting both the quality and value of our Essential Waitrose range in their high-profile advertising." TRINITY MIRROR SANGUINE DESPITE REGIONALS' PAIN Newspaper publisher Trinity Mirror said it has experienced an "improvement in the rate of decline in revenues" despite the economic downturn resulting in one of its flagship daily newspapers relaunching as a weekly. Meanwhile, regional newspapers, which were traditionally more profitable than national titles, have fared worse with advertising sales for regionals tumbling by 32 percent in the year to date, while national advertising sales dropped by only 11 percent. Regional titles are not expected to see profitability return to pre-recession levels but Trinity told analysts that group margins could recover by 1-2 percent. BRIDGES VENTURES DIPS TOE INTO ETHICAL PROPERTY Bridges Ventures has signalled a move to develop its interests in ethical property. The social investing venture capital firm has completed the first round of fundraising for a new investment vehicle which will buy property benefiting either the environment or society. Michele Giddens, executive director of Bridges Ventures, said: "This builds off Bridges Ventures' experience in regeneration. We are excited about the potential for this fund to combine highly attractive financial returns for investors with the important social and environmental impacts." Prepared for Reuters by Durrants COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved.

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