UK firms cut advertising spend in Q2 – survey

July 12 (Reuters) – British companies cut their marketing budgets in the second quarter and sentiment dropped to its lowest level for a year, a survey showed on Monday, suggesting the rebound in economic activity is waning.

The survey of around 300 British companies for the IPA/BDO Bellwether report found that advertising budgets for nearly all categories were revised down.

“The downward revision to marketing budgets in the second quarter is disappointing as it fails to build on the return to growth seen earlier in the year and highlights the fragility of the UK economic recovery,” said Chris Williamson, chief economist at Markit and author of the report.

“Companies are exercising increased caution in their expenditure in the face of likely slower economic growth in the second half of the year.

“However, it is encouraging to see that marketing spend is still set to increase for the year as a whole compared to 2009, albeit to a lesser extent than signalled in the first quarter.”

The report also said the rate that companies cut their budgets was much slower than that seen at the height of the economic downturn.

Almost 20 percent of the companies reported a cut to their spending, compared with 15 percent that increased the rate.

Some 25 percent of marketing executives described themselves as pessimistic about the financial prospects for their company, compared with 20 percent in the first quarter.

Of the different categories, main media spend was revised down in the quarter following a modest upgrade in the previous quarter. Spending on the Internet increased slightly however the rate of growth was the slowest for three quarters.

“The second quarter BDO/IPA Bellwether report reveals a cautious and uncertain picture,” Andy Viner, the head of media at BDO said. “After a strong rebound in Q1, optimism and confidence appear to be waning.

“It is clear that there are increasing signs that uncertainty over economic prospects continue and that corporates remain focussed on cost control against a backdrop of the risk of a double dip.”

(Reporting by Kate Holton; Editing by Erica Billingham)

Mining projects at risk over resources tax

There is a warning that Australia’s mining projects could become the most highly taxed in the world if a Federal resources rent tax is not implemented carefully.

Accounting firm BDO Australia has raised concerns that the Commonwealth’s Henry Tax Review could recommend the scrapping of state mining royalties.

They would be replaced by a 40 per cent resources rent tax.

BDO director Russell Garvey says a shift to a resources rent tax for the mining sector must be adaptable so it does not push Australia out of the international market.

“Questions would arise in terms of where would the tax cut in.

“Clearly the mining sector would prefer it to cut into prospective or future projects if it was to apply to projects that have already been priced up or feasibility studies done.”

Anti Naxal operations in West Bengal

Lalgarh/ Kolkata, Mar 27 (ANI): The government offices in Lalgarh have been closed following operation ”Green Hunt” by the state and central forces in West Bengal.

All the government offices here are closed that includes the offices of the Block Development Officer (BDO), the ration department and the forest range.

Authorities have contended that the offices have been closed for security reasons and thwart possible attack by Maoists.
Maoists are doing their best to provoke villagers, who find it difficult to carry on their routine activities due to the closure of government establishments.

“We are facing too much trouble. We can”t do any work from BDO office. We are poor people and farmers. All our relevant paperwork has come to a standstill,” said Hiren Mahato, a local farmer.

“Ration card – exchange card, certificates for children, all are pending,” he added.

Lalgarh is regarded as the stronghold of suspected Maoist rebels and it has witnessed a spate of violent and bloody incidents over the past couple of months.

Meanwhile, in Kolkata some leftist groups demonstrated against anti-Maoist ”Green Hunt” operation.

“We are opposing it because this is aggression against the people,” said Communist Party of India (Marxist-Lenin) General Secretary Santosh Rana.

“The government wants to hand over a large area of land and forest and what-not to multinationals and, for that purpose, it is being launched. So, we are opposing it,” Rana added. (ANI)

Lover of collapsed MG Rover director paid 1.7-mn pounds for a year’s work

London, Sep 12 (ANI): MG Rover’s director paid his lover 1.7 million pounds for a year’s work, according to a report on the collapse of the car manufacturing giant.

In May 2000, the Phoenix consortium-John Towers, Nick Stephenson, Peter Beale and John Edwards-acquired the business for a nominal 10 pounds from BMW.

BMW ensured that MG Rover could survive for a few years. But from the outset, it was clear that it had no long-term future unless it could find a substantial business partner within the motor industry.

The report into the demise of the giant compiled by Gervase MacGregor, a partner at the accountants BDO Stoy Hayward, and the barrister Guy Newey QC condemns the consortium which made a fortune out of the collapsed car maker, The Independent reports.

They reported that the four directors supplied inaccurate and misleading information about Rover’s finances to MPs, and singled out evidence Beale gave to the Commons trade and industry select committee.

They expressed concern over the plainly excessive fee of almost 1.7 million pounds paid to Dr Qu Li for advice she gave the Phoenix management about potential business partners in China.

For some of the time Dr Li was paid by Rover, she and Stephenson were having an affair. The report protested about the poor “corporate governance” of the Phoenix team: some board members were not invited to several board meetings and inaccurate minutes were taken of discussions.

Despite the failure of MG Rover between 2000 and 2005, the Phoenix Four continued to pay themselves generously right up to the group’s demise in 2005.

Towers, who led the buyout, was paid 8.96 million pounds, Stephenson 8.98 million pounds and Edwards received 9.02 million pounds. Beale, who is accused of misleading the parliamentary inquiry into the company’s collapse, was paid 8.98 million pounds over the four years, while Howe pocketed 5.71 million pounds.

The report cleared ministers of blame for MG Rover’s demise. (ANI)

Self-help groups bring self-reliance among Tripura women

Agartala, May 26 (ANI): Women members elected to the village council in Tripura have taken a lead in paving the way for a large number of poor women to become self-reliant.

Jaynagar Gram Panchayat under Jirania block of West Tripura district is a Self-Help Group (SHG), which reaches out to the rural poor, especially the womenfolk to create employment opportunities for them.

With the joint effort of 11 women members, the SHG generates allied productive vocations for the poor families.

Besides Jayanagar Gram Panchayat (the village council), there are several other SHGs that are operational in the block. They provide ample support to the needy families and have also been active in other spheres such as education, drinking water, road connectivity and community health programmes.

“Our SHG consists of 11 women. From preparing incense sticks, packaging to marketing all is done by women. Another 200 women work with us and have become self-employed. They earn money by making incense sticks which are made out of locally available raw materials,” said Mithu Chakraborty, a Self-Help Group member, Jirania, Tripura

Although the Self-Help Groups exist only at the village level, the fact is that these women members of the village councils have played a stellar role in empowerment of women. Their initiatives have also helped in poverty alleviation at grass root level.

“We have constructed many roads, small bridges for connectivity and at every location created SHG’s (Self-help groups) for employment and earning sources for the villages particularly the women so that they can earn for their family and develop,” said Juhlera Khatun, Panchayat member in Jirania, Tripura

“All members are women member and they are doing extremely good in different development work. We’re hopeful that our women are not lagging behind in any field in our block,” said Asim Saha, Block Development Officer (BDO) of Jirania in Tripura

This is evidence enough to prove the willingness, determination and capability of women of the state.

Women, who until recently were housewives and used to do domestic chores, are today adding to the family income by their efforts.

“Earlier, there was no electricity. But now with the help of this self-help group condition of roads has improved. Even today we have water supply, schools and old age pension for the aged people,” said Sabitri Debnath, a village woman. By Pinaki Das (ANI)

Philippines’ Aboitiz Power plans non-deal roadshow

MANILA, April 16 (Reuters) – Philippine electricity producer Aboitiz Power Corp (AP.PS) said on Thursday it will be holding a non-deal roadshow in Singapore and Hong Kong next week, after pricing its bonds to raise up to 3 billion pesos ($63 million).

Aboitiz Power has said it will use proceeds from the sale of the three- and five-year bonds to partly fund its acquisition of the Tiwi-Makban geothermal power plant from state-run National Power Corp.

The company’s management will be in Singapore on April 20 and 21 and in Hong Kong on April 22 to update foreign institutional investors and fund managers about its 2008 financial results as well as its strategy and outlook, the power firm told the stock exchange.

On Tuesday, the company said its three-year fixed-rate bonds would carry an 8.0 percent coupon per annum, while the other series, with a maturity of five years and one day, would have a coupon of 8.7 percent, representing a premium of around 200 basis points over the best bids for comparative local Treasuries PDSTSY.

The unit of Philippine conglomerate Aboitiz Equity Ventures (AEV.PS) plans to raise 1.5 billion pesos, with an oversubscription allowance of the same amount, from the offer which began Wednesday and will run until April 24.

Aboitiz Power has tapped BDO Capital and Investment Corp, BPI Capital Corp, First Metro Investment Corp (FMIC.PS) and ING Bank Manila branch as joint lead managers.

($1 = 47.685 pesos)

(Reporting by Manolo Serapio Jr.)