Tuesday newspaper round-up: House prices, Microsoft, Centrica

14th Jul 2009 06:16

Property values are set to rise in the next three months as a lack of homes props up prices, estate agents believe. The number of agents expecting house prices to increase in the coming months outnumber those predicting further falls for the first time since May 2007, according to figures published today by the Royal Institution of Chartered Surveyors (RICS), the Times reports.The FT adds that inquiries by would-be homebuyers at estate agents are translating more frequently into purchases, a further sign that the housing market is improving, according to RICS.Steve Ridgway, the chief executive of Virgin Atlantic, admitted yesterday that he had been aware that his airline had conspired to fix prices with its rival British Airways. The Virgin boss is the most senior executive to be named in relation to allegations that BA and Virgin fixed the price of fuel surcharges between July 2004 and April 2006, the Times reports.A group of Lloyds shareholders are demanding that the Government reveal details of discussions between Gordon Brown and Sir Victor Blank, chairman of Lloyds TSB, prior to the merger of Lloyds and HBOS. Lloyds Action Now (LAN), which is seeking to take legal action against the bank's directors over the merger, has asked Sir Gus O'Donnell, Cabinet Secretary, to disclose details of conversations between the Prime Minister and Sir Victor during a flight back from a trade delegation to Israel last July and a dinner two months later, the Telegraph reports.The market for business class travel, which has been in free-fall since the start of the recession, could take at least five years to recover, the head of British Airways' American operations has said. "BA's view is that it will take quite a long time, potentially more than five years, before the full value of the business market returns," according to Simon Talling-Smith, executive vice president for BA in the Americas, the Times writes.US shares were driven higher after leading Wall Street analyst Meredith Whitney urged clients to buy Goldman Sachs ahead of the investment bank's second-quarter results. Ms Whitney, who shot to fame by correctly predicting the carnage in the financial sector, upgraded the investment bank to "buy" from "neutral", predicting that the shares could rise 30%, the Telegraph reports.Meanwhile, executives at Goldman Sachs sold almost $700m worth of stock following the collapse of Lehman Brothers last September, according to filings with the Securities and Exchange Commission. Most of the sales occurred during the period in which the investment bank enjoyed the support of $10bn from the troubled asset relief programme, the FT writes.Microsoft has escalated its battle with arch rival Google, reacting to an assault on one of its core businesses with the announcement of a free online version of its widely used Office software, to be launched next year. While likely to take only a small bite out of Office revenues in the short term, the move represents one of the most radical steps yet by Microsoft as it tries to refocus its software business around the internet, according to analysts, the FT reports.Centrica, the owner of British Gas, raised its stake in Venture Production last night after investors controlling almost 13% of the oil and gas producer rejected the utility group's £1.3 billion takeover bid. Centrica said that it had snapped up a further 1.3 million shares to raise its stake in Venture from 29% to 29.9%, the Times writes.Magna International, the Canadian car parts group, hopes to sign a formal deal to buy Vauxhall within days. Although Magna was chosen in May as preferred bidder for General Motors' European business ? which includes Opel on the Continent and Vauxhall in Britain ? it made clear that a deal depended on due diligence. Yesterday, however, Ripplewood, the American private equity firm, said that RHJ International, the industrial holding group based in Brussels that is effectively its European business, was in advanced talks with GM about buying a stake in Opel and Vauxhall, the Times reports. The founder of Primark is to step down as managing director in September when Paul Marchant, the chain's chief operating officer, will become chief executive of Associated British Food's discount fashion retailer. Arthur Ryan, who is also Primark's chairman, is expected to stay on for a period to chair the retailer before retiring, reports the Independent.