Britain on the make
In a possible indication that the domestic economic recovery is gathering momentum, statistics from the Office for National Statistics (ONS) show that UK manufacturing easily outstripped forecasts for February. Manufacturing output expanded by 1.0 per cent in the month - the biggest increase since last September. Though foul weather hampered North Sea oil & gas production in the early part of this year, it was the UK's factories that were the stand-out performers, with output up by 3.8 per cent on the same month in 2013. The figures bolstered sterling, along with news that British employers have been forced to increase the salaries they offer to new permanent staff at the fastest rate in nearly seven years - a sign that they're struggling to fill vacancies.
High street takeaway
Knight on the toon
House of Fraser has become the latest in a long line of iconic high street names to fall under the control of foreign buyers, as it emerged that China's Sanpower successfully pitched a deal that valued the chain at more than £450m. The Chinese conglomerate was going for full ownership, but could only secure an 89 per cent holding as Scottish retail tycoon Sir Tom Hunter sold the remainder to Mike Ashley, Sports Direct founder and owner of Newcastle United. The deal prompted House of Fraser to threaten legal action against Sir Tom and Mr Ashley. (see Director Dealings pg 69)
Holcim Lafarge tie-up
Deal cemented
Holcim of Switzerland announced that it will buy France's Lafarge in an all-share merger deal that will create the world's biggest cement producer, with over $44bn in annual sales. It's the biggest M&A in Europe this year, with the merged business based in Switzerland, but with dual-listings in Zurich and Paris. Naturally, regulators are certain to reject the deal unless the companies hive-off a significant portion of their assets on the continent - around 15 per cent, according to Lafarge executives.
Nigeria ousts South Africa
Statistical surge
Nigeria has replaced South Africa as the largest economy in Africa, based on the Abuja government's first comprehensive economic survey. It's not only oil receipts that have placed the continent's most populous country in pole position, but also its rapidly growing telecommunications and banking sectors. Nigeria's National Bureau of Statistics revealed that nominal gross domestic product (GDP) measured $510bn (£305bn) in 2013, 89 per cent bigger than previously thought, and $190bn in advance of South Africa's. It means that Nigeria's economy is 26th biggest in the world, comparable in size to Norway's or Sweden's.
Rate swap settlement
Barclays avoid the dock
In a case that has been keenly followed by City analysts, Barclays (BARC) has decided to settle a court action brought about by Guardian Care Homes, which alleged that the bank had mis-sold its two interest rate swaps worth £70m that were affected by the benchmark Libor. It's believed that the settlement will involve Barclays restructuring a loan worth about £40m to Graiseley - the owner of Guardian Care. Regrettably, the settlement rules out the possibility of Bob Diamond taking the stand, but the likes of UBS and Rabobank will be breathing a sigh of relief - for now.
Boris' drug deal
Golden triangle
London mayor Boris Johnson has initiated a £4m bid to exploit a 'golden triangle' of life science linking the capital, Oxford and Cambridge. The aim of the project is to develop a cluster of medical research centres that will rival financial services in its importance to the UK economy. MedCity has been awarded a £2.92m grant from the Higher Education Funding Council for England and £1.2m from the mayor of London's office. Though the region has world class educational and research facilities, it doesn't have same access to venture capital sources that have driven the development of biotech across the Atlantic.
Taking civil liberties
P.A.Y.S.
HM Revenue's new wheeze to let the taxman raid the bank accounts of individuals that officials believe owe tax to the state is "extremely worrying and excessive" as well as potentially illegal, according to the Institute of Chartered Accountants. The move would give HM Revenue the power to siphon unlimited amounts of cash from individuals' bank accounts without a judge's approval if officials believe they owe more than £1,000 in unpaid tax. Once the money is taken out of their accounts, taxpayers will have 14 days to get in touch and set up a payment plan, otherwise officials will keep what they have taken. So much for Magna Carta.
