Finance News

Aircraft carriers are a vital part of the Royal Navy’s fleet

Seven UK firms have won contracts totalling 91.5m to build parts for the Navy’s two new aircraft carriers.

Corus, based in Scunthorpe, will get 65m to provide steel for HMS Queen Elizabeth and HMS Prince of Wales.

Five other English firms, in Dorset, Greater Manchester, Surrey, Suffolk and Lancashire, will build products ranging from control towers to landing aids.

Scottish firm MacTaggart Scott & Co, in Mid Lothian, will get 13m to build aircraft lifts for the 3.2bn ships.

On Thursday the Ministry of Defence (MoD) signed contracts to build the 919ft (280m) long carriers, the biggest in the UK’s history.

(Read the full post about ‘Companies win £91m ship contracts’…)

Handing over cash gives you a contract with the retailer, Which? says.

High street shop staff are fobbing off customers and giving them misleading advice about their rights, according to the consumer organisation Which?

Consumers are often told to take their complaint to the manufacturer, when it is the retailer’s responsibility to sort it out, Which? said.

One marketing expert told the BBC that bad advice is often due to a lack of training or the management’s attitude.

The government is planning to simplify consumer protection laws.

It says this should mean both consumers and shops are clear about what to expect.

(Read the full post about ‘UK shops ‘misleading customers’’…)

The cost of housing - including fuel bills - is one of the largest rising costs.

The cost of living for pensioners has outstripped inflation over the past 10 years, a study suggests.

Pensioners have seen the cost of the goods and services they use rise by 36% in the past decade, said life insurer Clerical Medical.

However retail price inflation has risen by 32% in this time, it added.

The rising cost of housing, council tax and maintaining property were the biggest reasons, the study said, along with alcohol and tobacco.

Only footwear and clothing is cheaper than it was in 1998, the report added.

(Read the full post about ‘Pensioners ’see higher cost rise’’…)

LONDON - Bradford & Bingley PLC said Friday it is revising its plans to raise new capital after U.S. private equity fund Texas Pacific Group pulled out of its agreement to invest more than $350 million in the mortgage banker.

TPG withdrew after Moody’s rating service downgraded Bradford & Bingley’s long-term debt ratings from A3 to Baa1.

(Read the full post about ‘TPG pulls out of Bradford & Bingley plan (AP)’…)

Jerome Kerviel says the bank was fully aware of his transactions

French bank Societe Generale has been fined 4m euros (3.2m; $6.3m) for allowing one of its staff to be in a position to operate as a rogue trader.

The French banking regulator pointed to “grave deficiencies” in SocGen’s internal controls that allowed the losses which cost the firm 4.9bn euros.

The losses have been blamed on 31-year-old trader Jerome Kerviel.

An independent report earlier accused the bank of being “negligent” in not identifying the problem.

In a statement released on Friday, the Banking Commission said that SocGen’s staff monitoring did not focus enough on fraud issues.

(Read the full post about ‘SocGen hit by rogue trader fine’…)

There are fears that BHP and Rio combined would be too powerful

The European Commission has opened an in-depth probe into mining giant BHP Billiton’s $170bn (85.7m) unsolicited bid for rival company Rio Tinto.

A tie-up between BHP and Rio would create a firm with a third of the world’s iron-ore market, raising fears that it would be too powerful.

The EU listed its concerns but said BHP would be able respond, adding the findings had not been pre-judged.

Rio has fended off the offer, saying it did not meet the value of its assets.

Besides iron ore, the commission raised concerns over the markets for coal, uranium, aluminium and mineral sands, saying the proposed takeover could result in higher prices and reduced choice for customers of the two companies.

(Read the full post about ‘EU probe into BHP targeting Rio’…)

Oil at $150 a barrel is not far away say analysts

The price of oil fell back on Friday, on hopes Iran would react positively to proposals to resolve a dispute over its nuclear development programme.

However, prices stayed near the highs of more than $146 seen on Thursday.

US light, sweet crude was down $1.28 at $144.01 a barrel, while London’s Brent was down $1.49 at $144.59.

The US, China, Russia, Germany, the UK and France have offered Iran trade and other incentives if it suspends its uranium enrichment programme.

Iran said it had responded to the proposals, and had delivered its answer to the European Union’s foreign policy chief Javier Solana, without giving any further details.

(Read the full post about ‘Iran optimism steadies oil price’…)

Nipping fears of a busted deal in the bud, Canadian telecommunications company BCE finalized the terms of its 51.7 billion Canadian dollar ($50.9 billion) sale to a takeover group led by the Ontario Teachers’ Pension Plan.

On Friday, BCE (nyse: BCE - news - people ) said funding for its sale to an investor group led by Teachers’ Private Capital, has been finalized at the original purchase price of 42.75 Canadian dollars ($42.12) a share and is expected to close by Dece. 11. Teachers’ Private Capital is the investment unit of the Ontario Teachers’ Pension Plan.

(Read the full post about ‘BCE Confirms Titanic Takeover’…)

ZURICH (AFP) - Swiss banking giant UBS, hit hard by the subprime crisis, on Friday said it would break even or report a slight loss for its second quarter thanks to a substantial tax credit. (Read the full post about ‘Subprime-hit UBS says could break even second quarter (AFP)’…)

Potato only makes up 42% of the ingredients of Pringles

Pringles, the popular snack food in a tube, are not potato crisps, a High Court judge has ruled.

Their packaging, “unnatural shape” and the fact that the potato content is less than 50% helped Mr Justice Warren make his crunch decision.

As a result, Pringles, in all flavours are free from Value Added Tax (VAT).

Manufacturer Procter & Gamble (P&G) is likely to save millions of pounds as a result of the decision - with customers also likely to pay less.

Spud impact

P&G had gone to court to challenge a VAT and Duties Tribunal decision that the Pringle was subject to the standard 17.5% rate of VAT because it was it was “a potato crisp product”, which are, unlike most food, subject to the tax.

(Read the full post about ‘Court rules that Pringles ‘are not potato crisps’’…)