Scotsman.com Business - RBS picks up a bargain

Scotsman.com Business - RBS picks up a bargain: "RBS picks up a bargain HAMISH RUTHERFORD"

RBS

573.5-7.5p

S&N

580p +7.50p

BARGAIN of the day could go to Royal Bank of Scotland, as it revealed that it and its consortium were already part-way down the road in their battle to buy ABN Amro, after building up a stake of more than 3 per cent. They're likely to build on that, too, RBS said.

The move seems to make decent sense on one level. Last week ABN's shares fell heavily on fears over trouble in the markets.

At these times it cannot hurt to exude a level of outward confidence. If Sir Fred Goodwin is really as sure as he makes out that his side is the right one, then buying up ABN shares at a time when they are so cheap is simply saving money.

The value of Barclays' offer rises and falls with the value of its shares, which have fallen in recent times. Yesterday, it too fell under the subprime radar after Panmure Gordon analyst Sandy Chen said that his focal point among UK banks for credit market concerns was Barclays.

He added that he thought there "was a material risk that some of [investment arm] BarCap's counterparties may be in trouble".

The consortium still appears to be in poll position in analysts' eyes, as much for the fact that it is paying more cash than anything else. But both sides are certainly struggling to maintain anything like market confidence in their bids - in a market that has changed dramatically in the past month.

The consortium members' market caps may be falling, but the gap between their bid and Barclays' is widening, leading to the obvious accusation that, again with the benefit of hindsight, they could end up paying more than they need to. There is also growing uncertainty among the markets that Fortis, hit by the subprime crisis and raising a mountain of cash, will be able to come up with its share. Santander is also now believed to be facing exposure to the subprime problems.

With RBS's partners needing to raise so much money at a time when the market it tight, it is hardly surprising that ABN's share price has hardly rocketed on the stake-buying news.

Perhaps it isn't time to panic just yet, but any move that can save a bit on what will be the world's largest ever financial services transaction should surely be welcomed.

In more backhand good news for RBS, perhaps, it seems the factors that have created the opportunity for it to get hold of ABN shares, on what seems to be the cheap, are likely to continue. No matter what the bulls might tell you, the latest troubles are by no means over.

The credit crunch/subprime picture seems to be worsening in New York. Wal-Mart, the biggest retailer of them all, is warning that consumers are likely to spend less this year, and more hedge funds and trusts are struggling to cope with the lack of demand for their services.

Central banks have been pouring a mountain of cash into the markets in the past week, and yet in that time the FTSE 100 is down more than 2 per cent.

With so many of the City's top dogs on holiday at present, the picture they return to could be vastly different to that of a fortnight ago. Stock markets, confronted with such vast extra funding to the financial system, should be soaring. Instead, the Dow fell yesterday, as did the FTSE.

Problem over? I don't think so.

Coke embarks on global 2008 Olympics offensive - Brand Republic News - Brand Republic

Coke embarks on global 2008 Olympics offensive - Brand Republic News - Brand Republic: "Coke embarks on global 2008 Olympics offensive"

LONDON - Coca-Cola is launching a global ad campaign to promote its sponsorship of the 2008 Olympic Games in Beijing.

A TV ad featuring Olympians and NBA basketball stars LeBron James and Yao Ming will show how Coca-Cola and the Olympics can unite people and cultures.

James, co-captain of Team USA Basketball, and Ming, a member of Team China Basketball, will act as Coca--Cola's Olympic ambassadors to demonstrate how East and West will unite during the Games. The ad will form part of Coca-Cola's global 'Coke side of life' campaign.

James, who has been sponsored by Coca-Cola since 2003, has been involved in ad campaigns for Sprite and Powerade in the US.

Ming's association with Coca-Cola was announced in July, when the brand unveiled its Coca-Cola Olympic star team, a group of athletes who will be involved in various promotional activities in China prior to and during the 2008 Games.

Coca-Cola has been an Olympic partner since 1928 and is the exclusive non-alcoholic beverage provider to the Games until 2020.

In the UK, Coke has strong links with football, sponsoring the Football League, the UEFA Championships and the FIFA World Cup.

England and Manchester United star Wayne Rooney is the firm's brand ambassador and has featured in ads for Coke Zero.

The brand is currently seeking the UK's best street footballers as part of its 'Street striker' competition, which encourages teens to upload videos to its football website.

Insurance Age - NU's profits halve due to flood losses

Insurance Age - NU's profits halve due to flood losses: "NU's profits halve due to flood losses Norwich Union's general insurance and health profits for the first six months of 2007 have halved in the wake of recent flood losses to £284m (2006: £560m)

Net written premium was also reduced from £3.13bn in 2006 to £2.95bn according to results published this morning.

Overall parent Aviva reported - general insurance and health profit down 34% to £560m across the group and reiterated exceptional UK weather losses of £235m. Net written GI and health premium worldwide was down 4% to £5.5bn.

Despite the losses Aviva’s combined operating ratio at 97%, was ahead of ‘meet or beat’ commitment of 98% but way below last year’s 92%. The UK COR was 102%. RAC’s contribution of the UK result increased to £75m (2006: £46m.

In its statement Aviva said: “The result includes an adverse weather impact of £235m (2006: £125m benefit), with an estimated £175m arising from the June floods and £60m relating to the storms of 18 January. This impact has been mitigated by a benefit of £245m (2006: £140m) releases from the 2006 accident year and prior. We continue to apply our reserving policy consistently and our reserves remain at very strong levels.

Aviva continued: “The result has been achieved against a backdrop of challenging conditions across our core insurance markets. In personal motor we have achieved rate increases of 8% (2006: between 2% and 5% increase) and our focus on writing profitable business is reflected in a combined operating ratio of 103%, 2% better than the same period in 2006.

“Homeowner rates have increased by 5% (2006: 6% increase). Overall commercial rates have fallen by around 3% (2006: 3% decrease), although we are seeing increased market stability in commercial motor rates.”

Elsewhere Aviva said following the launch of a dedicated retention centre in Norwich Union Direct in November 2006 its customer ownership initiative is now live for all motor claims and provides a single point of contact for customers who experience a claim.

Additionally, it added it is working to develop closer ties with large commercial brokers. “The success of such initiatives is reflected in very strong retention rates across all classes of business and improving customer satisfaction scores. Our focus on cost control is reflected in the reduction in expense ratio from the 2006 full year figure of 13.9% to 13.6%, with our cost and efficiency programme, which is on track to deliver its anticipated benefits of £125 million from 2008, contributing to this improvement.

“The increase compared to the same period in 2006 reflects a combination of our investment in the business and pressure on volumes. We have seen an increase in our commission ratio to 24.3% (2006: 21.9%) driven by lower volumes of commission-free direct business and the impact of consolidators in our intermediary business.”

"

Norwich Union seeks to make savings in review - Brand Republic News - Brand Republic

Norwich Union seeks to make savings in review - Brand Republic News - Brand Republic: "Norwich Union seeks to make savings in review by Ed Kemp Marketing 07-Aug-07, 08:30 LONDON - Financial-services group Aviva is to review the direct business for its entire Norwich Union Insurance portfolio as part of wide-ranging cost-cutting measures.

The insurance brand has told existing agencies to cut fees or risk losing the business, according to insiders.

The UK's biggest insurer, Norwich Union had been in the midst of a pitch for its NU Life business, but that now hangs in the balance as the firm plans to draw up a roster of direct shops for its other insurance brands, including Motoring, Life, Home and Healthcare.

The company overhauled its direct roster last May as part of a statutory review.

Its current agencies include TDA, Tri-Direct, Fox Murphy and Kitcatt Nohr Alexander Shaw.

Earlier this month, Norwich Union announced that it was to raise its insurance premiums following last month's floods, which cost parent firm Aviva about £340m. However, the company said rising prices were also driven by the increasing costs of home repair.

The increase followed last year's decision by Norwich Union to hike its motor insurance premiums by an average of 16%.

The company recently launched an £8m ad campaign through Abbott Mead Vickers BBDO. It shows a series of accidents, including a hailstorm smashing a greenhouse, with a voiceover explaining that it can't stop bad luck, but can make it easier to cope with whenever it happens .

Calls to Norwich Union were not returned.

"

Leader - What next for RBSI?

Leader - What next for RBSI?: "[August 02, 2007] Leader - What next for RBSI? (Post Magazine Via Thomson Dialog NewsEdge) The speculation that Royal Bank of Scotland Insurance is looking to develop its direct commercial offering, which currently stands at vans only, into the area of small to medium-sized enterprises, is the latest rumour to envelop the embattled group.

The insurance giant, which will post its interim results tomorrow, has recently been subject to considerable speculation about its joint venture with Tesco Personal Finance - with the supermarket understood to be underwhelmed by its recent insurance results. Another report linked RBSI with a trade sale to venture capitalists, but that is another story.

Tesco is believed to favour a move to an aggregator model, as it will offer customers wider choice. However, RBSI-owned Direct Line has made headlines recently with a television campaign warning customers about the pitfalls of using aggregators, and it has steadfastly refused to offer its quotes to these insurance providers, making a point of this in its advertising.

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All these whispers come at a time when RBSI, like many of the UK's leading providers, finds itself at another crossroads in an increasingly competitive market, especially in personal lines.

Four years ago, when faced with a slowdown in the growth of its leading brand Direct Line, RBS purchased Churchill in order to grow its volume, but another move for a significant personal lines player - if that is indeed the answer - would probably face opposition from the Competition Commission.

Opportunity knocks

With Churchill, RBSI inherited a commercial broker-only insurer in NIG, which, contrary to many people's expectations, it decided to keep after realising that the commercial market offered significant opportunity - especially for a bank that already had more than a million business customers.

Incidentally, RBSI had already inherited a commercial broking arm through the acquisition of NatWest, and lo, it came to pass that RBS Business Insurance Services was born, which the bank hoped to revitalise using NIG's experience. Three years on and market insiders have described the venture as "massively" unsuccessful, given its potential. At the same time, NIG's heartland, the commercial broking market has become more competitive with the birth of the super consolidators driving up commission levels.

All this brings us back to the idea that RBSI, whether through Churchill and Direct Line - or both - could seek to gain a stranglehold over the direct commercial market. If it did so, it would have a ready made call centre - the RBS BIS centre in Bristol - at its disposal.

It also has the expertise from NIG, although how that would stack up with its broker-only selling point could prove a sticky issue. One suggestion is that RBSI could sell NIG, especially if it decided to spin the same line about middle men in its aggregator campaign into the SME sector.

All of this is based on speculation and rumour, and how much of it will eventually stack up is unknown. What is certain is that RBS is unlikely to do nothing and, as such, rumours will continue to abound."

Diet Coke Plus to target health-conscious consumers - Brand Republic News - Brand Republic

Diet Coke Plus to target health-conscious consumers - Brand Republic News - Brand Republic: "Diet Coke Plus to target health-conscious consumers"

by Nikki Sandison Brand Republic 01-Aug-07, 09:15
LONDON - Coca-Cola is entering the healthy drinks market by launching Diet Coke Plus in the UK, which contains added vitamins as well as being sugar-free.
The drink is aimed at Diet Coke fans, who are mainly women in their 20s and 30s, and claims to help them to "keep up with today's hectic lifestyle".
Diet Coke Plus, which is already available in the US and Belgium, will launch in the UK from October 2007 with an extensive marketing campaign including TV, print, outdoor advertising and PR.
This is the first time Coca-Cola has added health benefits to one of its sparkling drinks in the UK.
Diet Coke Plus will be available in two variants, one with vitamins B3, B12 and vitamin C, and the other containing antioxidants with added green tea and vitamin C.
Coca-Cola claims the 350ml bottle contains 52.5% of the recommended daily allowance of those vitamins, and helps maintain a "healthy immune system".
Cathryn Sleight, marketing director for Coca Cola Great Britain, said: "The launch of diet Coke Plus is in response to consumer feedback around their changing lifestyles and needs.
"Diet Coke Plus offers two great ways for consumers to enjoy their favourite diet Coke break while getting a bit extra to see them though the day."

Powerade ad banned on health and safety grounds - Brand Republic News - Brand Republic

Powerade ad banned on health and safety grounds - Brand Republic News - Brand Republic: "Powerade ad banned on health and safety grounds"

by Jennifer Whitehead Brand Republic 01-Aug-07, 08:30
LONDON - A TV ad for Powerade has been banned by the advertising watchdog because it featured a cyclist not wearing reflective clothing and cycling without any lights.
The ad was created by McCann-Erickson and shot in a fly-on-the-wall style, following a man training for his first triathlon.
One viewer complained that the cyclist appeared to be riding at either dusk or dawn, and that cars on the same road he was riding on could be seen with headlights on.
The viewer complained that the ad might be seen to be condoning behaviour "prejudicial to health and safety", because the cyclist was not wearing safety clothing or using lights.
McCann Erickson said that the ad had actually been filmed during the afternoon but that because it was shot without lighting equipment, it looked later in the day. It assured the Advertising Standards Authority that safety precautions had been observed when filming, and that the bike was fully visible to traffic.
However, the ASA decided to uphold the complaint. It said "the ad could give the impression that reflective clothing or lights were not required when cycling in conditions of poor visibility".
The ad was found in breach of the CAP Broadcast Code rule regarding health and safety. Powerade owner Coca-Cola has already said it has no plans to show the ad again.

Post Online - Esure appeals mouse on wheels court decision

Post Online - Esure appeals mouse on wheels court decision: "Esure appeals mouse on wheels court decision "

The two-year patent fight between Esure and Direct Line is set to continue as Esure appealed a recent High Court decision, Post learnt.
Earlier this month, a High Court judge found in favour of Direct Line in the patent fight over a “mouse on wheels.” The court believed that the use of Esure's patent would take unfair advantage of, or be detrimental to, Direct Line's similar mark. However, the Court did not think that Direct Line successfully proved confusion in the minds of the public would ensue.
Esure told Post it had appealed the decision to the Court of Appeal.
Commenting on the High Court decision, a spokeswoman for Esure told Post: “The judge agreed with Esure on the substantive point that there would be no likelihood of confusion between Esure's mouse on wheels and Direct Line's telephone on wheels, so we are disappointed with the final decision.”

RBS hands task to John Brown - Brand Republic News - Brand Republic

RBS hands task to John Brown - Brand Republic News - Brand Republic: "RBS hands task to John Brown"

by Craig Smith Marketing 31-Jul-07, 08:30
LONDON - RBS Group has hired John Brown to publish a magazine for RBS and NatWest customers, in the biggest retail bank programme of its kind.
The title will go to between 3m and 4m customers quarterly from 2008, making it one of the top-three circulating titles in the UK.
John Brown won the work through the Association of Publishing Agencies' Ask service. Although neither the APA nor John Brown would comment, it is understood that six agencies competed for the business.

The content of the title will differ depending on whether the recipient banks at RBS or NatWest.John Brown, which already publishes Private Banking for RBS, produced test versions called Sense ahead of the pitch. It was sent to 500,000 retail customers in March and July to test response against the RBS group's direct work.