Commission and Ryanair cry ‘unfair’
Ryanair, the low-cost airline, and the European Commission launched tit-for-tat attacks, both claiming that airline competition is unfair. Ryanair said that it would take legal action against the Commission for failing to prevent European governments providing state aid to their national carriers. The budget airline complained last year that assistance given by some countries to their carriers was unfair. One example Ryanair cited is the French Government’s use of discounted airport fees for Air France. However, the Commission also has Ryanair and other low-cost carriers in its sights. (David Robertson)
Pension numbers fall
An estimated 27.5 million people were the member of an occupational pension scheme in the public and private sectors during 2006, 500,000 less than in 2004, according to the Office for National Statistics. There was also a sharp fall in active members, with 200,000 fewer workers paying into a scheme last year compared with 2004. However, membership in public sector schemes actually rose by 100,000. (PA)
Pay deal ‘excessive’
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Shareholders attending J Sainsbury’s annual meeting today have been urged to oppose a controversial pay and bonus deal offered to Justin King, the chief executive. Pirc, the corporate governance lobby group, said that it was concerned about the “potentially excessive” rewards on offer to Mr King and other executives after a failed £11 billion bid for the company by CVC, the private equity group. (Miles Costello)
Sears warns on costs
Sears Holdings, which runs the Sears and Kmart chains, forecast lower quarterly profit and said that it needs to become more relevant to consumers and to control its costs, sending its shares down more than 7 per cent. Sales at Kmart stores open at least one year fell 3.9 per cent in the first nine weeks of the 13-week second quarter. Same-store sales fell 4 per cent at US Sears outlets. (Reuters)
TV Guide hits high
Shares of Gemstar-TV Guide International hit a 12-month high after the company said that it was considering ways to maximise shareholder value, including a sale. Shares rose 62 cents, or 11.6 per cent, to $5.96 after hitting $6.11, eclipsing a previous year-high of $5.39. Gemstar-TV Guide provides television listings and technology and publishes TV Guide magazine. (AP)
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Interest rate rises
The Bank of Canada raised its key overnight rate by a quarter of a percentage point to 4.50 per cent, the highest in six years. The move is expected to keep the Canadian dollar high and cool the country’s economy. The move by David Dodge, the central bank’s governor, was anticipated in the financial community and the bank said that it may increase interest rates moderately again. (AP)
Mansion sets record
A mansion in Beverly Hills once owned by William Randolph Hearst, the publishing magnate, became possibly the most expensive residential listing in the United States when it went on the market at $165 million (£82 million). Hearst bought it in 1947 for about $120,000. The 1920s-era house and estate, which covers 6½ acres, boasts three pools, 29 bedrooms, a film theatre and a disco. (AP)
Battle for Dobbies
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Sir Tom Hunter, the Scottish entrepreneur, has requested due diligence information from Dobbies, the garden centre that he is trying to keep out of the hands of Tesco. The Wyevale owner raised hopes of a bid battle for the chain late last week when he raised his stake in Scotland’s only listed retailer to 25.77 per cent, paying £16 a share. This comes after Tesco filed a £15-a-share bid for Dobbies last month. (Sarah Butler)
Internet growth
Advertising on the internet in Britain will grow by 34 per cent this year, but that growth will slow to 30 per cent in 2008, a report said. GroupM, part of the WPP media empire, said that overall media and marketing spending would rise almost 3 per cent to £26 billion in 2007. The report said that advertising in the traditional media would underperform the economy over the long term unless it becomes easier to measure. (Reuters)
French lose out
French arms firms said they were losing exports to nations that flout an international crackdown on bribery. They also criticised French politicians for weakening France’s defence industry by failing to do their bit for exports. Speaking on behalf of France’s arms industry lobby, Charles Edelstenne, chief executive of Dassault Aviation, said: “Exports have not been mobilised as a national priority.” (Reuters)