Surge in claims for unclaimed assets
Consumers are increasingly turning to the British Bankers Association’s (BBA) account tracking service to claim money from dormant accounts (The Scotsman). Claims have surged more than thirty-fold due to an aware
ness drive by banks, building societies and National Savings & Investment. Customers are claiming forgotten assets worth between £350 million and £500 million, in a move also thought to be influenced by government plans to move unclaimed cash to the Central Reclaim Fund, which will then be distributed to community projects. The assets must have been left unclaimed for 15 years before qualifying for the government scheme. The BBA says dormant accounts often occur when people move home and forget to inform the bank, they find bank books when someone dies or simply think the cash is not substantial enough to worry about. Chief executive of the BBA, Angela Knight said: “Money in dormant accounts still belongs to the customer. My advice is to phone, or get online, to the BBA and we’ll help you find it. It doesn’t matter how old the accounts is, how little money is in it, or even if the branch or bank has closed, our experts are trained to track it down.”
Pensioners in £57 billion of debt
UK pensioners owe £57 billion on mortgages, credit cards and loans, a study from Scottish Widows claims (Financial Times). Research from the financial group found that almost a third of those over the age of 65 are £5,900 in debt on average. Ian Naismith, head of Scottish Widows pensions market development, said: “By the time they come to retire, a significant number still have a mortgage outstanding on their property, adding financial pressure to their hard-earned retirement fund.”
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ECONOMY
Trade missions launched for Scots firms
A new programme of trade missions to the world’s emerging economies has been launched by the Scottish Council for Development and Industry (SCDI) and Scottish Development International (SDI) (The Scotsman). The missions to Japan, Poland, India and China will give companies the opportunity to win business overseas and enter some of the world’s fastest-growing markets. Qualifying firms can apply for travel grants of between £250 for Poland and £750 for China. Senior director of trade and investment at SDI, Denis Taylor, said that, as well as greater sales and increased profits, the benefits include improved buying power and access to new ideas and technology. He added: “Opportunity does not come without risk but to minimise these risks I would urge Scottish businesses seeking to take their first steps into the overseas markets to consider these trade missions as an aid to their decision-making and to take advantage of the wide range of experiences and expert support that is on offer.” A similar programme last year generated almost £8 million of business for the 78 companies taking part. Trips this year will take place between November and March.
Rate rises prompt economy slowdown fears
A survey is warning that the UK economy will experience a significant slowdown if the Bank of England continues to increase interest rates (The Independent). The British Chambers of Commerce (BCC) predicts a fall in economic activity, as firms feel the impact of a spate of interest rate rises in recent months. It is widely predicted the bank’s Monetary Policy Committee will increase rates to 6% this year. BCC economic advisor David Kern said: “Six per cent should be the peak. We urge the MPC to avoid an overreaction, which could cause serious economic damage.”
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ENERGY & UTILITIES
High risk oil and gas firms failing to woo investors
Investors are continuing to lose interest in high risk oil and gas exploration companies, according to the latest Ernst & Young oil and gas index (Aberdeen Press & Journal). The index, which tracks the movements of oil and gas firms on the Alternative Investment Market (AIM), grew 12% in value during the second quarter of 2007. Just six oil and gas companies listed on AIM this year however, compared to 14 over the same period in 2006. Alex Carstairs, partner and head of oil and gas mergers and acquisitions at Ernst & Young, said: “Oil and gas companies need to think beyond the assets in the ground if they want to secure financial backing. Those companies that can identify and use the advantages gained from having a greater understanding of the big picture, from capital markets to resources and other asset liabilities, will take the lion’s share of the winnings.” He said the index is likely to continue growing in value, but added “the prospect of some companies running out of funding still looms large”.
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RETAIL
Suppliers believe supermarkets are too powerful
UK food suppliers believe supermarkets wield too much power, according to research from Grant Thornton (BBC Online). Some 25% of suppliers questioned for the survey claim to have had an order reduced or cancelled by supermarkets, without compensation. Two thirds of suppliers do not have formal contract terms with supermarkets, meaning they are not covered for last minute changes. The survey also found more than 40% expect more supply firms to go bust - and blame the behaviour of supermarkets for this. The British Retail Consortium meanwhile defended supermarkets, claiming suppliers are also under strain from competition and rising costs.
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PROPERTY
Commercial property sector expected to proceed with caution
The commercial property industry is feeling the squeeze from increased lending in the sector and the rising cost of debt, according to Jones Lang LaSalle Scotland (The Scotsman). The UK has experienced an overall rise in lending this year, with a 6% rise in direct real estate investment compared to 2006, hitting a record £27.2 billion. Director of Jones Lang La Salle, Alasdair Humphery said: “Over the next six months we anticipate greater caution to be displayed in the market with the level of investment activity cooling slightly in certain sectors as the availability of credit tightens.”
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The full article contains 1041 words and appears in The Scotsman newspaper.
