Industry news

A new release of the Scottish Infrastructure Investment Plan is expected to be outlined today. The plan will set out all major capital spending projects, including health, transport and infrastructure projects.

The previous version of the infrastructure invest plan detailed projects totalling £12. 8 billion, with the total expected to rise.

Deputy First Minister Nicola Sturgeon, told the BBC: “we'll look at a range of programmes which are longer-term, which there is less certainty about because of the timescales involved, but it is nevertheless important to give detail of what our intentions and our ambitions are so that industry can be prepared."

The release of data from France has revealed a dramatic drop in manufacturing, with activity falling over four months in January at rates similar to those at the height of the global financial crisis.

This has led to fears that future poor economic forecasts within the Eurozone could render France’s public finances unsustainable.

Economists have predicted that France’s economy will remain stagnant over the 2013.

Manufacturing accounts for 11 percent of France’s economy and has been vulnerable to the global recession, performing poorly in comparison to its German neighbour.

BT have won another two government funded superfast broadband contacts, so far ensuring a 100 percent take of all government broadband contracts.

The two new contracts will see BT provide increased broadband capabilities across Devon and Somerset, with the aim to provide high speed broadband to 90 percent of all residents by 2016.

The project has been valued at £94 million with a further £35.6 million coming from another fibre optic project in Wiltshire and South Gloucestershire.

Communications minister Ed Vaizey said: "It's projects like Connecting Devon and Somerset, the largest of all the English local authority projects, that will help achieve the government's aim for the UK to have the best broadband in Europe by 2015."

Indian outsourcing company HCL Technologies has been awarded a multi-million dollar contract to provide R&D over a ‘multi-year period’.

HCL will provide engineering, prototype designs and IT services to UK based avionics company Cobham.

Tom Garvey, vice president of operations at Cobham's Avionics and Surveillance Division, said: “We expect that this relationship with HCL Technologies will support our agility and further boost growth."

The deal by Anheuser-Busch Inbev (ABI) to buy Mexican based brewery company Grupo Modelo, has been faced with a competition suit from the US Justice Department.

Bill Baer, assistant US Attorney General said: “The department is taking this action to stop a merger between major beer brewers because it would result in less competition and higher beer prices for American consumers."

ABI already owns half of Grupo Modelo and have entered into a multi-million purchase to complete a full takeover however the suit now throws the deal into question.

H&M are planning rapid growth in China with the addition of 325 stores in 2013, the clothing giant are also planning store growth within the US.

As the second-biggest fashion retailer with 2,800 stores globally, the Swedish based company is looking to develop in new markets, with markets such as China having already shown high levels of potential for western businesses looking for expansion.

The plans come after a posted rise in annual profits despite a drop in profits in the fourth quarter during 2012 in a challenging market for high street retailers.

With a 20.6 percent rise in profits during the third-quarter, the release of Mahindra Satyam’s results, along with expansion and high profits from industry leaders such as Infosys show acceleration in outsourcing markets.

Satyam had been impacted by continued payments resulting to fraud claims stemming from its running by Ramalinga Raju. But with action concluded, the business is now able “to focus even more on the business-ready solutions for our customers," said Vineet Nayyar, chairman.

"We continue to strengthen our industry and alliance partnerships and explore multiple avenues for growth, including mergers and acquisitions”, said CP Gurnani, CEO.

The increase in reported profits by outsourcing leaders comes on the back of predictions of growth within the US and renewed demands for outsourced services, projects including Medicare have fuelled anticipation for future business.

A MPs’ transport committee pointed to the Department for Transport and the civil service for a catalogue of “major failures” and “irresponsible decisions”.

The failure has been estimated to have cost taxpayers around £50 million with no outcome. The West Coast procurement failure and findings of the committee are embarrassing to the government at a time when the public sector is trying to develop internal procurement capabilities and in turn publicly criticises the private sector for lesser failings.

Louise Ellman, chairwoman of the committee, said: “This episode revealed substantial problems of governance, assurance, policy and resources inside the Department for Transport”, adding “This was compounded by major failures by civil servants, some of whom misled ministers."

Shares have fallen by 4 percent at AstraZeneca after the drug giant posted a fall in sales.

Sales dropped in the last three months by 16 percent from a combination of expired drug patents, few new drug releases and rising operating costs.

"Our performance in 2012 reflects a period of significant patent expiry and tough market conditions globally", said CEO, Pascal Soriot said in a statement.

The company has predicted that 2013 will see reduced earnings as operating costs are predicted to continue to rise.

Businesses including BT, Capgemini, Cisco, HP, John Lewis, the Metropolitan Police, Microsoft, Morrisons, O2, Royal Mail and UBS have joined together under the title of the Tech Skills Partnership to bid for public skills funding.

The creation of the partnership, with the backing of the UK’s skills council, is seeking to gain funding from a pot of £340 million, from the Employer Ownership of Skills Pilot.

The funding is designed to promote industry skills and develop economic growth with industry support. Previous examples of industry support can be seen in the expertise that the ICT industry brought to the creation of the UK’s new ICT curriculum.