PRESS DIGEST - Financial Times - Aug 22

NUMBER OF EUROPEAN MIGRANTS SEEKING JOBS IN THE UK PLUNGES

Home Office figures published on Thursday reveal that the number of eastern and central Europeans registering to work in the UK has dropped to its lowest level since the A8 accession countries became part of the European Union. The development seems to have caused by the falling value of the pound and improved job prospects in the A8 countries. British economists have argued that UK unemployment could be eased if large numbers of migrant workers returned home, but the labour has also been a source of demand for goods and services that has helped boost the economy.

SURGE IN FUEL PRICES PILES ON THE PRESSURE

The pressure on household budgets increased on Thursday after Scottish and Southern Energy (SSE.L: Quote, Profile, Research, Stock Buzz) and Eon EONG.DE reacted to sharp rises in wholesale prices for gas and electricity by raising bills by 25 percent and 22 percent respectively. The moves follow similar price hikes by EDF Energy (EDF.PA: Quote, Profile, Research, Stock Buzz) and Centrica (CNA.L: Quote, Profile, Research, Stock Buzz), which will help push inflation higher. Consumer groups warned that the rises would force more people into fuel poverty. Both SSE and Eon said the price rises had been planned for some time and were not linked to increases in wholesale prices as a result of threats to Norwegian supplies.

RETAILERS SCEPTICAL OF RISE IN SALES FIGURES

Figures from the Office of National Statistics indicate that UK retail sales soared unexpectedly by 0.8 percent in July. The increase was partly counterbalanced by a downward revision in June's sales, which fell by 4.3 percent from May. The statistics also suggested that retailers were managing to pass on some their rising costs to customers. Retailers remained sceptical about how accurately the numbers reflected business reality. Stephen Robertson, director general of the British Retail Consortium, claimed that the trade body's own research showed falling year-on-year sales: "Few retailers will recognise this positive picture".