PRESS DIGEST - Financial Times - Jan 5

The Financial Times

DELAY LIKELY TO NUCLEAR LEGAL CHALLENGE

Plans for a new wave of nuclear power stations face several months of uncertainty after Greenpeace said it may take that long to decide whether to make a fresh legal challenge to the decision. The government is about to publish the results of a second period of public consultation on whether ageing reactors should be replaced by new stations. Ministers say market research revealed 44 percent of 1,000 people polled were in favour of new stations, with 36 percent against.

DATA POINT TO CLOSE CALL ON DECISION OVER RATES

Further evidence of a housing slowdown and falling business confidence may make next week's decision on interest rates a close call, although a survey from the Chartered Institute of Purchasing and Supply and research group NTC showed there has been an improvement in service sector activity. MPC members will also take into account downbeat data from a Bank of England survey of credit conditions which shows lenders have "materially" tightened lending to households and expect to do so further.

THREAT TO GROWTH OF PROPERTY JOBS

Jobs in the commercial property market are coming under threat due to the sharp downturn in values and the effects of the credit crunch. Investment banks, including UBS and Bear Stearns, have cut staff in areas such as real estate debt packaging and UK commercial property lending. Property recruitment consultants report staff hirings have dried up in many areas as the UK market stalls. November saw the worst monthly return on record for commercial property with total return on the monthly IPD index down by 3.6 percent.

DEBT CHARITIES WARN OF RISE IN PERSONAL DEBT LEVELS

Debt charities are forecasting personal debt levels are likely to soar in 2008 as more Britons struggle to secure low cost loans and meet higher mortgage repayments. More than one million borrowers are estimated to be coming off fixed-rate mortgages and will be forced to sign up for more expensive deals. Stricter lending standards and a scarcity of deals on new loans and balance transfers are likely to pose challenges for borrowers with high debt levels. Creditors wrote off at least 1.3 billion pounds in bad debt last year as more people entered into individual voluntary arrangement agreements.