Stansted Airport Is Sold For £1.5bn

The company formerly known as BAA is to sell Stansted airport to the Manchester Airports Group for £1.5bn.

The deal will mean that BAA - now known as Heathrow Airport Holdings - will be responsible for just four UK airports compared with its original seven.

The remaining ones are Heathrow, Southampton, Aberdeen and Glasgow.

Colin Matthews, chief executive of Heathrow, said: "Stansted Airport and its people have been part of our company for a long time.

"It has been named by passengers as 'the world's best airport for low-cost airlines' for two consecutive years at the Skytrax World Airport Awards, and we are proud of its achievements.

"We wish the new owners every success and are confident the airport will continue to flourish.

"We will continue to focus on improving Heathrow, Glasgow, Aberdeen and Southampton airports."

Heathrow Airport Holdings has been forced to sell the airport after a ruling by the Competition Commission last year.

The company did not challenge the decision in the Supreme Court but maintained that the ruling "fails to recognise that Stansted and Heathrow serve different markets".

The sale of Britain's third busiest airport is expected to close by the end of February

Manchester Airports Group owns and operates Manchester, East Midlands and Bournemouth airports.

It had been one of the bidders for Gatwick when BAA put it up for sale but it lost out to American private equity group Global Infrastructure Partners which now also runs Edinburgh.

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Boeing Dreamliner Deliveries Halted

Boeing 787 Dreamliner Timeline

Updated: 1:50am UK, Saturday 19 January 2013

The turbulent history of the Boeing 787 Dreamliner:

Jan 19, 2013: Boeing says it is stopping deliveries of the Dreamliner to airlines.

Jan 18, 2013: US Federal Aviation Administration (FAA) officials arrive in Japan to examine a 787 and its melted battery pack after an All Nippon Air (ANA) emergency landing two days earlier

Jan 17, 2013: The European Aviation Safety Agency,  FAA and Qatar Airways ground Dreamliners under their regulatory control

Jan 16, 2013: Japan Air Lines Co Ltd (JAL) follows suit and suspends Dreamliner flights from Japan over safety concerns

Jan 16, 2013: ANA grounds all 17 of its 787s after four of its aircraft suffer problems

Jan 16, 2013: ANA 787 Dreamliner makes emergency landing in Takamatsu, Japan, after smoke appears in cabin

Jan 11, 2013: The Federal Aviation Authority announces a review of the 787 design and systems

Jan 11, 2013: ANA discovers engine oil leak after a domestic flight lands at Miyazaki

Jan 11, 2013: A separate ANA flight to Matsuyama reported a crack appearing in the pilot's window

Jan 9, 2013: ANA cancels a Boeing 787 Dreamliner flight due to a brake problem

Jan 8, 2013: Japan Air Lines (JAL) grounds a jet at Boston Logan International Airport after a 787 leaks 150 litres of fuel

Jan 7, 2013: A fire erupts in a battery pack in another JAL Dreamliner at Boston

Dec 13, 2012: Qatar Airways grounds one of its Dreamliners because of a faulty generator

Dec 5, 2012: The FAA orders inspections of all 787 Dreamliners in service in the US

Dec 4, 2012: A United Airlines 787 is forced to make an emergency landing in New Orleans after a generator fails

July 23, 2012: ANA grounds five Dreamliners due to an engine component issue

Feb 22, 2012: Boeing says around 55 Dreamliners may be affected by a flaw in the fuselage

Oct 26, 2011: The Dreamliner makes its maiden flight with paying passengers on board an ANA jet

Sep 26, 2011: Boeing delivers its first 787 Dreamliner to Japan's ANA, three years late

Jun 23, 2010: Boeing postpones the first flight of the Dreamliner because of a structural flaw

Dec 15, 2009: The passenger jet 787 Dreamliner takes off on its maiden test flight

Apr 9, 2008: Boeing says there will be a revised plan for the first 787 flight and initial deliveries

Dec 11, 2008: Boeing announces further delays due to strike action by machinists Sept-Nov

Oct 19, 2007: Boeing says there will be a six-month delay to deliveries due to assembly issues

Jul 8, 2007: The first assembled 787 goes on display to media, employees and customers

Jul 18, 2006: Boeing says it is making "solid progress" on the 787 Dreamliner programme

Jan 28, 2005: Boeing gives its new commercial airplane an official model designation number - 787

Jan 29, 2003: Boeing announces the launch of a new aircraft called the 7E7

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Horse Abattoir Film Reveals Welfare Breaches

By Jason Farrell, Sky Correspondent

Sky News has uncovered shocking animal welfare conditions at a UK horse abattoir.

They include animals being beaten, neglected and illegal procedures in the process of slaughtering British horses destined for European food markets.

It comes amid public anger that some of our biggest supermarkets have been selling beef burgers and other products that contained horse meat.

Sky News visited the Red Lion Abattoir near Nantwich in Cheshire after concerns were raised by Animal Welfare Group Hillside Animal Sanctuary.

Investigators at Hillside fitted secret cameras which filmed horses being beaten with an iron rod to encourage them into the pens. 

Some were then crammed into the slaughter pens in pairs and, on one occasion, a group of three, before being stunned together.

The video revealed horses hit with sticks to goad them into slaughter pens

In harrowing images the horses fall on top of each other. Under The Welfare of Animals Act 1995, horses should not be slaughtered in sight of one another because of the distress it causes.

Furthermore we found that sick or injured horses were left untended overnight, rather than put down immediately.

As a result of the investigation, two slaughter men have had their licences revoked. Craig Kirby, head of approvals and veterinary advice at the Food Standards Agency (FSA) told Sky News: "As soon as we got the footage and reviewed it we took immediate action to revoke the slaughter men's licences.

"That means they cannot work to slaughter animals again. We will also look to gather further evidence to see if we can prosecute."

Former Government Chief Veterinary Officer Keith Meldrum, who viewed the footage, said he was shocked by what he described as "appalling" welfare breaches.

"We see three animals stunned at the same time and it is totally illegal and contrary to welfare slaughter regulations," he said.

"It's a significant welfare problem for a number of reasons. It's harder to render them unconscious in a group and they have a higher chance of regaining consciousness before you've completed the procedure."

Another incident filmed included a horse that appeared to come round from the stun while being hung upside down before being bled. Mr Meldrum described it as "totally and completely unacceptable".

FSA statistics released to Sky News show a dramatic increase in the number of UK horses slaughtered every year, from 3,859 in 2007 to 8,426 in 2012.

Some 8,426 horses were slaughtered in the UK in 2012

Depending on the size and breed they are bought for anything between £100 to £300 and can fetch around 700 euros on the European meat markets.

The animals come from a variety of backgrounds. Some are former pets, others come from show jumping or the race track.

A report last year from the British Horseracing Authority found: "The number of thoroughbreds reported dead to the Horse Passport Issuing Authority rose by 580 - an increase of 29% - from 1994 to 2574 horses.

"Of these, 1127 horses either in training, breeding or out of training were reported as killed in abattoirs - and reported to the Government Meat Hygiene Service - from 499 horses in 2010, an increase of 126%."

However, in a statement to Sky News, the BHA added: "This is a wider equine issue and not an issue for the British racing industry, which is one of the country's most highly regulated equine pursuits.

"However, if there are allegations that any horse, whether thoroughbred or not, is being inhumanely treated in an abattoir we would fully support any investigation and subsequent action, if appropriate."

During the investigation, Hillside Animal Sanctuary rescued one racehorse called Underwriter by bidding against the abattoir at auction. They discovered it had a distinguished career.

John Watson, from Hillside, said: "It's not just ill and old horses being killed. There are very many fit and healthy horses, horses with foals, pregnant mares, and thoroughbreds that are being treated badly.

"It blows away the myth of humane slaughter, and there is a misery in that place that is palpable."

Red Lion Abattoir said they had revoked the license of two slaughtermen

Hillside's lead investigator, who did not want to be identified, added: "What we've found has shocked us deeply; animals left with horrendous injuries and horses shot on top of each other.

"In all the years I've been doing this work, without doubt it's the most harrowing experience I've come across. All the horses in there had their heads hung down."

The Red Lion Abattoir told us it views animal welfare and public health with paramount importance.

In a statement it said: "In attendance at the The Red Lion Abattoir are three full time Food Standards Officers comprising of an official veterinarian and full-time meat hygiene inspectors throughout production."

It said the incidents were "not the norm, but of an isolated nature" and they have taken disciplinary action against the individual featured.

The statement continued: "I agree horses should individually enter the stunning area and most certainly not three at a time.

"However, small horses and ponies having spent years together as companions are difficult to separate. Horse lovers would understand that.

"My opinion and that of other veterinarians is it is better to keep those types together to reduce the stress, providing swift dispatch is achieved."

The Red Lion Abattoir also insisted it meat was not part of the recent supermarket burger scandal.

The horses there are destined to be served in European food markets. The scandal this time is the way they are treated, in the last moments of their lives, in a licenced British abattoir. 

Roly Owers, Chief Executive of World Horse Welfare, viewed the footage and said: "The breaches, from what we've seen, are throughout; from the care of the animals to the slaughter process.

"Horses are intelligent animals. When they see an animal stunned in front of them you can only imagine the distress that animal is going through. There are, without doubt, welfare issues here and it is plain illegal."

The RSPCA said "The footage is shocking and upsetting to watch."  They have requested a full copy of the film with a view to investigating.

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Exclusive: Barclays Boss Sets Out Values Plan

By Mark Kleinman, City Editor

Barclays employees who do not wish to adhere to a strict new ethical code of conduct should quit the bank and find jobs elsewhere, its chief executive warned today as he began attempting to rebuild its tarnished reputation.

In a message sent this morning to Barclays' 140,000 staff around the world, Antony Jenkins said that Barclays had to become "a values-driven business" if it wanted to be "a valuable business" in future.

I have obtained a copy of the memo to employees, which outlines five core values by which staff should abide in the wake of the bank's involvement in a string of scandals. These are, according to Mr Jenkins, respect, integrity, service, excellence and stewardship.

He gave Barclays' workforce an ultimatum that this set of standards would be used to judge the performance of every employee.

"I have no doubt that the overwhelming majority of you, no matter in which area of the business or country you work, will enthusiastically support this move. But there might be some who don't feel they can fully buy in to an approach which so squarely links performance to the upholding of our values," he said.

"My message to those people is simple: Barclays is not the place for you. The rules have changed. You won't feel comfortable at Barclays and, to be frank, we won't feel comfortable with you as colleagues."

Today's memo is the most significant statement so far from Mr Jenkins about how he intends to run the bank.

While it contains few concrete details about Barclays' strategic direction, it is likely to be warmly welcomed by City investors who had become increasingly concerned about the cavalier bonus-led culture that was perceived to have evolved under his predecessor, Bob Diamond.

Mr Jenkins took over in August from Mr Diamond, who quit Barclays days after it was fined £290m by regulators in the UK and US for the role it played in manipulating the key interbank borrowing rate Libor.

He conceded that 2012 was a tough year for banks' image, saying that the industry over the course of two decades "had lost its way" and had become "too aggressive, too focused on the short term, too disconnected from the needs of our customers and clients, and wider society. We were not immune at Barclays from these mistakes."

Mr Jenkins said the bank's top executives had agreed "a single cross-business Purpose for Barclays... [which] is helping people achieve their ambitions - in the right way. Put simply this is the answer to the question 'What is Barclays for?' and it should guide our every action".

And he acknowledged that rebalancing Barclays' commitment to its various stakeholders was "vital to our future as an institution".

The new chief executive will flesh out more detail about his commercial priorities alongside Barclays' annual results on February 12.

In his message to staff, Mr Jenkins pledged to set out a blueprint for the bank "for at least the next decade" when he announces the results of the strategic review.

This morning's memo offers a clear hint that he will withdraw Barclays from areas of business, such as commodities trading, where there is reputational risk to the bank. Rich Ricci, the head of Barclays' investment banking arm, is undertaking a separate review which will contribute to Mr Jenkins' statement next month.

The comments of Barclays' new boss will be scrutinised across the banking sector and Westminster. Political critics of banks will recognise Mr Jenkins' description of Barclays' "tendency at times, manifest in all parts of the bank, to pursue short-term profits at the expense of the values and reputation of the organisation".

He said that this approach had "damaged our ability to make long-term sustainable returns" and he warned that "the notion that there must always be a choice between profits and a values-driven business is false".

"There is no choice between integrity and profit in this business, and to pose them as opposites fundamentally misunderstands the problems the banking sector faces," he wrote. "This is the difference between generating short-term profits and long-term shareholder value."

By setting out such a distinctive benchmark for the behaviour of Barclays' staff, Mr Jenkins is making a daring bet that he can transform the culture of one of the world's biggest banks. Like its peers, it has been caught up in the mis-selling of payment protection insurance and interest rate swaps, for which it has set aside approximately £2.5bn in potential compensation.

And it means that the Barclays boss will be under pressure to punish future transgressions by staff in a way that other bank chiefs may not feel obliged to.

Mr Jenkins said in the message that more than 1000 Barclays staff would be asked in the coming weeks to disseminate details of the new set of values across the bank's operations.

Mr Jenkins has already attempted to demonstrate his determination to repair Barclays' reputation by hiring Sir Hector Sants, former chief executive of the Financial Services Authority, to oversee compliance and government relations at the bank.

Under Mr Jenkins' brief stewardship, Barclays' share price has soared, although it remains a long way short of levels achieved before the onset of the 2008 banking crisis.

Mr Jenkins' attempt to define a new ethical code at Barclays pre-empts an independent review of the bank's culture and business practices being undertaken by the eminent City lawyer Anthony Salz.

Mr Salz was appointed by the Barclays board last summer following the Libor fines, and is expected to report in April, ahead of its annual meeting.

Shareholders will be seeking evidence that Mr Jenkins is putting his money where his mouth is by redressing the balance between distributions to investors and employees. Last year, Barclays paid about £1.2bn in staff bonuses but only £700m in dividends, a decision which angered leading shareholders.

Insiders yesterday dismissed suggestions that the bank had already decided on bonus payments for 2012, saying that Barclays' remuneration committee, headed by Sir John Sunderland, had yet to make formal proposals to the board.

"Performance assessment will be based not just on what we deliver but on how we deliver it. We must never again be in a position of rewarding people for making the bank money in a way which is unethical or inconsistent with our values," Mr Jenkins said today as he pledged to introduce the new approach during the coming year.

He said that 2013 would not be an easy year for Barclays but added: "If we combine the right values with the right strategy, we will build a more successful business, not just this year but in the years and decades that follow."

Barclays declined to comment on the message today.

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Rio Tinto Sacks Boss Amid £9bn Write-Off

The boss of one of the world's biggest miners has been sacked as the company takes a $14bn (£8.75bn) writedown relating to his acquisitions.

London-listed Rio Tinto's share price dived by 4.5% when the FTSE 100 opened for business on news of the writedown.

Tom Albanese, who joined Rio two decades ago, will be replaced by the company's iron ore boss Sam Walsh.

Mr Albanese, who became chief executive in 2007, had until now largely survived the consequences of his damaging $38bn (£23.7bn) acquisition of aluminium group Alcan that same year.

The deal was seen as at the 'top-of-the-market' when Rio was under pressure from rivals to bulk up or be acquired.

The group has since seen years of losses in aluminium and took a $8.9bn (£5.6bn) charge a year ago.

Rio also bought Mozambique-focused coal miner Riversdale in 2011.

Doug Ritchie, who led the acquisition and integration of the Mozambique coal assets when he was head of Rio's energy division, has also stepped down.

Rio said on Thursday the non-cash impairments would include a charge of around $3bn (£1.9bn) relating to the Mozambique business, as well as reductions in the carrying values of Rio's aluminium assets of up to $11bn (£6.9bn).

Chairman Jan du Plessis said "The Rio Tinto Board fully acknowledges that a write-down of this scale in relation to the relatively recent Mozambique acquisition is unacceptable.

"We are also deeply disappointed to have to take a further substantial write-down in our aluminium businesses, albeit in an industry that continues to experience significant adverse changes globally."

Mr Albanese added: ""While I leave the business in good shape in many respects, I fully recognise that accountability for all aspects of the business rests with the CEO."

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Comet Effect: Sales Up At Currys And PC World

Dixons reports strong sales across the UK and Ireland over the Christmas period, as "phenomenal" sales of tablets help boost its results.

The owner of Currys and PC World said like-for-like sales were up 8% over the 12 weeks to January 5, and were 11% higher in northern Europe.

Sales fell 8% in central and southern Europe, which is facing tough austerity measures and high unemployment, although the company said it was trading "ahead of weak local markets" in Italy and Greece.

The company's chief executive Sebastian James said customers had responded well to its range of products, offers and service.

Electronics retailer Comet collapsed in November 2011

"Our key multi-channel businesses delivered an encouragingly strong result during the Christmas period, particularly in the UK & Ireland and in Northern Europe," he said.

"Tablet sales were phenomenal across our markets, which was good to see but which impacted overall headline margins somewhat.

"White goods were also strong, particularly in the UK."

Dixons is sure to have benefited from the collapse of its rival Comet in November last year, which kicked off a string of high street casualties over the festive season.

Since the new year, camera retailer Jessops and entertainment chain HMV have both called in administrators.

Blockbuster, the DVD rental chain, collapsed on Thursday in the face of increasing competition from its online rivals.

Meanwhile, Argos said that 42% of its sales over the Christmas period were online, as it reported a 2.7% hike in like-for-like sales in the 18 weeks to January 5. 

DVD rental chain Blockbuster became the latest high street casualty

The store's owner, Home Retail Group, said it is working to "reinvent" the chain as a "digital retail leader", noting that sales on mobile phones were up by 125%. 

Sales of electronics - led by tablets - white goods and toys were all strong, it said. 

But Homebase, also owned by Home Retail Group, reported a fall in like-for-like sales of almost 4% over the period as weak consumer confidence hit sales of big ticket items.

Struggling baby and maternity retailer Mothercare reported an even larger fall in sales as it closed 11 more stores.

Over the 13 weeks to January 12, like-for-like sales in the UK fell 5.9% at the business, which also owns ELC (Early Learning Centre).

But its chief executive Simon Calver insisted the retailer had made "solid progress".

"Our three-year Transformation and Growth plan remains on track," he said.

"We are working towards transforming the UK while growing international products." 

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Boeing Dreamliners Grounded By Japan Airlines

Boeing 787 Dreamliner Timeline

Updated: 4:05am UK, Wednesday 16 January 2013

The turbulent history of the Boeing 787 Dreamliner:

Jan 16, 2013: Japan Air Lines Co Ltd (JAL) follows suit and suspends Dreamliner flights from Japan over safety concerns

Jan 16, 2013: ANA grounds all 17 of its 787s after four of its aircraft suffer problems

Jan 16, 2013: ANA 787 Dreamliner makes emergency landing in Takamatsu, Japan, after smoke appears in cabin

Jan 11, 2013: The Federal Aviation Authority announces a review of the 787 design and systems

Jan 11, 2013: All Nippon Airways (ANA) discovers engine oil leak after a domestic flight lands at Miyazaki

Jan 11, 2013: A separate ANA flight to Matsuyama reported a crack appearing in the pilot's window

Jan 9, 2013: ANA cancels a Boeing 787 Dreamliner flight due to a brake problem

Jan 8, 2013: Japan Air Lines (JAL) grounds a jet at Boston Logan International Airport after a 787 leaks 150 litres of fuel

Jan 7, 2013: A fire erupts in a battery pack in another JAL Dreamliner at Boston

Dec 13, 2012: Qatar Airways grounds one of its Dreamliners because of a faulty generator

Dec 5, 2012: The Federal Aviation Administration orders inspections of all 787 Dreamliners in service in the US

Dec 4, 2012: A United Airlines 787 is forced to make an emergency landing in New Orleans after a generator fails

July 23, 2012: ANA grounds five Dreamliners due to an engine component issue

February 22, 2012: Boeing says around 55 Dreamliners may be affected by a flaw in the fuselage

October 26, 2011: The Dreamliner makes its maiden flight with paying passengers on board an ANA jet

September 26, 2011: Boeing delivers its first 787 Dreamliner to Japan's ANA, three years late

June 23, 2010: Boeing postpones the first flight of the Dreamliner because of a structural flaw

December 15, 2009: The passenger jet 787 Dreamliner takes off on its maiden test flight

April 9, 2008: Boeing says there will be a revised plan for the first 787 flight and initial deliveries

December 11, 2008: Boeing announces further delays due to strike action by machinists Sept-Nov

October 19, 2007: Boeing says there will be a six-month delay to deliveries due to assembly issues

July 8, 2007: The first assembled 787 goes on display to media, employees and customers

July 18, 2006: Boeing says it is making "solid progress" on the 787 Dreamliner programme

January 28, 2005: Boeing gives its new commercial airplane an official model designation number - 787

January 29, 2003: Boeing announces the launch of a new aircraft called the 7E7

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Car Crisis: Demand Crashes Across Europe

European car registrations fell by over 8% in 2012 according to official figures, as the crisis for carmakers in the region shows no sign of slowing.

Over the last year, demand for new vehicles reached its lowest level recorded since 1995, with sales falling in most major markets.

A total of just over 12 million units were registered in 2012, the European automotive industry association ACEA said.

In December, new car sales declined by 16% in the European Union - the steepest monthly slip since 2008.

Two fewer working days on average helped send registrations tumbling by over 14% in France, 16% in Germany and more than 20% in both Italy and Spain.

Greece – where the eurozone's debt crisis originated – saw one of the steepest falls in new car sales at 33%.

It comes as tough austerity measures and record-high jobless figures in the eurozone hit consumers' ability to purchase new cars.

The UK continued to be the only significant market to see an increase in new car sales, which were up by 3.7% last month.

Recently released figures showed car registrations in Britain were at a four-year high in 2012 - but still around 50% below pre-financial crash volumes.

Carmakers worst hit by last month's slump were the US' General Motors and Ford, which both saw sales fall around 27%.

But Korea's Hyundai and Kia - which offer affordable cars with long warranties - reported an increase in registrations of 10.5% and 6.8% respectively.

French company Renault saw a slump of 19% a day after it announced plans to cut 7,500 jobs by 2016.

The redundancies - which the carmaker said was in response to falling demand - make up 14% of Renault's French staff.

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HMV Collapse: Interest In Buying Retailer

The administrator for collapsed HMV has already had 'very positive' expressions of interest in the iconic entertainment retailer.

Deloitte, formally appointed on Tuesday evening, told Sky News a few parties had made contact in the wake of the chain's demise.

While all 223 UK stores are continuing to trade, the administrator confirmed its review of the business was continuing and there was no prospect of the company's decision to stop accepting gift cards or vouchers being overturned.

However the 'blue cross sale', which began last weekend, would remain in place.

In its initial statement last night confirming it was now running HMV, Deloitte said it was actively seeking a buyer.

Nick Edwards, Joint Administrator and restructuring services partner at Deloitte, said: "HMV is an iconic retailer and continues to be a very popular brand, but as we have seen with many high street retailers, the market is changing rapidly and conditions are currently very tough.

"Following our appointment, we are working closely with management and staff to stabilise the business in order to continue trading whilst actively seeking a purchaser for the business and assets. We appreciate the cooperation and support from the staff, customers, suppliers and landlords at what is clearly a difficult time."

HMV employs 4,123 staff and analysts say it is inevitable that some will lose their jobs, even if the chain is bought out.

The retailer had long been criticised for an over-exposure to the high street and its late move into online. The consumer spending squeeze only exacerbated the shift in shopping habits and it missed the terms of its bank loans as a result.

Nevertheless Trevor Moore, the group's chief executive, told Sky News on Tuesday afternoon that he was "absolutely confident" about the future of HMV but added: "It does require a number of significant changes in the business, and those changes we're very clear about."

He said: "We would hope to find a prospective buyer that could work with us to enable me to deliver those changes and ensure that HMV - which is one of the consumer's 10 most favourite stores in the UK, remains on the high streets that we operate in."

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Last-Minute Christmas Shopping Boosts Burberry

Burberry reports a rise in revenue of almost 10% as its wealthiest customers continue to spend despite the economic downturn.

The luxury brand said revenue was £613m in the three months to December 31 - up 9% on an underlying basis.

Comparable sales rose 6% at the 157-year-old retailer, driven by the popularity of its iconic trench coat and accessories.

But wholesale revenue at Burberry fell an underlying 5% as a result of lower sales to some accounts across Europe.

The company's chief executive Angela Ahrendts said it had benefited from a "particularly strong week" in the run up to Christmas.

"In an otherwise difficult quarter, core outerwear, men's and digital all outperformed," she said.

The pre-Christmas rush also helped online grocer Ocado's performance

"We expect the external global environment to remain challenging, but see continued opportunities to drive productivity in our existing business, while investing for growth in under-penetrated regions, product categories, channels and mediums."

Burberry, which has over 200 stores across the world, said sales growth remained low across America and Europe – but was especially weak in Italy.

The brand's popularity in Hong Kong and China helped boost sales growth in Asia, with saw double-digit growth.

Meanwhile, online grocer Ocado also reported strong Christmas trading.

Total sales in the six weeks to January 6 were up over 14% to £91.6m - and were 17% higher in the week before Christmas.

Tim Steiner, chief executive of Ocado, said it had been "a very good festive season" for the company. 

"We are pleased to have helped record numbers of customers enjoy Christmas without the stresses and strains of visiting a physical supermarket," he said.

"Christmas has amplified the fact that shopping online for groceries is of increasing importance for consumers."

"In 2013, we will substantially increase our capacity with the opening of our second fulfilment centre, and so we hope to make it possible for many more customers to escape crowded aisles, checkouts and car parks."  

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BBA Targets Body To Strike Off Rogue Bankers

By Mark Kleinman, City Editor

A tough new code of conduct for bank employees and an independent body that would have powers to ban rogue bankers are among a series of tough measures proposed to restore public trust in the beleaguered industry.

I have obtained a copy of a submission made by the British Bankers' Association (BBA) to the Parliamentary Commission on Banking Standards, which was set up in the wake of the Libor rate-rigging scandal last summer.

The creation of a Banking Standards Review Council, which would be underpinned by statutory or regulatory support, is one of a series of options presented by the lobbying group.

In its submission, the BBA suggests as a starting point that reforms should look at strengthening the existing infrastructure, which would involve extensive co-operation with the Financial Conduct Authority (FCA), the new regulator that will become operational later this year.

The current system is focused on an Approved Persons Regime, which the BBA argues could be strengthened by ensuring that all banking sector roles with significant responsibility for risk or customer-facing activity would be covered. This would include anyone with a wholesale markets function, such as employees who help to set Libor benchmark rates.

The BBA says that "setting up a 'register of bankers' that individuals could be removed from or some sort of 'blacklisting' [may be necessary] with the aim of preventing an individual from working in the banking sector (and perhaps all of financial services)".

The BBA assesses two main options for an entirely new system: one would represent a "top-down approach [focused] on organisations as a whole and seeks to raise standards by requiring them to take steps to improve the oversight, monitoring and control of employees". This approach would be overseen externally by a body which the BBA proposes to call the Banking Standards Review Council.

That new organisation, the BBA suggests, "would need to be independent of the industry - by which we mean an independent non-banking chairman and a majority of non‐banking members, including customers of banking services and the public interest, but with industry support and input".

As well as overseeing bankers' behaviour, it could also operate a whistle-blowing system for bank employees.

Employees of both UK and overseas banks would have to adhere to a code that would be modelled on the Lord George Principles of Business Conduct, which include a duty "to act honestly and fairly at all times when dealing with clients, customers and counterparties and to be a good steward of their interests".

But, the lobby group warns, the creation of a new body could effectively mean moving to a "three peaks" regulatory system which duplicated the existing regime and risked causing "unnecessary and confusing complexity".

The BBA also highlights in its submission a "bottom-up approach...focused on professional standards [of] the individuals operating within the industry and seeks to raise their technical competencies and ethical standards. This approach is a feature of other professions, including the medical, legal and accounting sectors".

It could involve establishing a Professional Standards Board and could be "separate to the potential Banking Standards Review Council envisaged under the 'top-down' approach, or be one and the same".

Anthony Browne, the BBA's Chief Executive, is due to appear before the Parliamentary Commission later on Monday, where he is expected to discuss the options contained in the lobbying group's submission.

The options were formulated by a taskforce involving major UK banks including Barclays and Royal Bank of Scotland, along with two European banks and one American lender which are among the BBA members. KPMG, the professional services firm, was also involved.

As Sky News revealed last week, the chairmen of the six British-based banks have met to discuss the proposals, about which they did not reach a unanimous view. Hinting at the level of debate between them, the BBA submission admits that "it may be that the answer to strengthening ethical and professional standards lies in large part with the new regulator".

Some of the bank chairmen have argued during private discussions that they should wait until the FCA has outlined its approach to tackling banking standards-related issues before establishing a new body, while others believe a new organisation should be set up as soon as possible.

People familiar with the BBA's submission said it had decided to present the pros and cons of each proposal because it did not want to appear to be prescriptive at a time when the group has been discredited by its role as the overseer of the Libor-setting process.

"There was a feeling that a single option proposed by the BBA would be discounted by the Parliamentary Commission because of the difficult time the BBA is having at the moment," said one person familiar with the submission process.

The BBA said that tough new oversight of bankers' behaviour would not necessarily deter banks from investing in the UK.

"A well-formulated proportionate approach to any Code and Council should, in fact, enhance the attractiveness of the UK as a place to do business.

"If the application of the Code raised standards of professional conduct and enhanced trust it should attract companies, capital and clients to the market. In this respect, parallels can be drawn with the UK law and judicial system, which draws people to London by virtue of the confidence in which it is held," its submission says.

The BBA declined to comment further ahead of Mr Browne's evidence session.

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HMV Collapse: Gift Cards And Vouchers Invalid

HMV has confirmed it will not be accepting gift cards or vouchers from customers as the retailer prepared to collapse into administration.

The company confirmed its intentions following a board meeting last night, as exclusively revealed by Sky's City Editor Mark Kleinman.

In its statement, HMV - which employs 4,350 people - said its 238 stores would remain open while administrators Deloitte sought a buyer.

It added that trading in HMV's ordinary shares had ceased.

The statement said: "On 13 December 2012, the Company announced that as a result of current market trading conditions, the Company faced material uncertainties and that it was probable that the Group would not comply with its banking covenants at the end of January 2013.

HMV was late to the online shopping revolution and suffered as a result

"The Company also stated that it was in discussions with its banks. "Since that date, the Company has continued the discussions with its banks and other key stakeholders to remedy the imminent covenant breach.

"However, the Board regrets to announce that it has been unable to reach a position where it feels able to continue to trade outside of insolvency protection, and in the circumstances therefore intends to file notice to appoint administrators to the Company and certain of its subsidiaries with immediate effect.

"The Directors of the Company understand that it is the intention of the administrators, once appointed, to continue to trade whilst they seek a purchaser for the business."

"It is proposed that Nick Edwards, Neville Kahn and Rob Harding, partners of Deloitte LLP, will be appointed as the administrators of the Company and certain of its subsidiaries.

HMV, which has struggled for several years in the face of online competition, had announced last week an additional sale at its stores in a last ditch effort to raise cash but its £176.1m debt pile was too great for the move to have much impact.

Last year the company sold off its most profitable arm, its live music business, as it attempted to slash what it owed.

In January 2011 suppliers including Universal Music came to HMV's rescue with a deal which helped the retailer shed some of its debt but they are understood to have dismissed requests for more financial help earlier this month.

Analysts suggest the business model was already doomed - squeezed by internet retailers and supermarkets whose scale enable them to offer CDs and DVDs at cheaper prices.

More follows...

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Jessops: Camera Chain Closing All Stores

Camera retailer Jessops is clearing stock from its stores after administrators announced it was unable to continue trading.

PricewaterhouseCoopers (PwC), which was appointed to the group on Wednesday, has begun the process of shutting the firm's entire network of 187 stores with the loss of 1,370 jobs

The administrators said further job losses are likely at the group's head office in Leicester.

Jessops is the first high-profile retail casualty of 2013, after suffering from online competition and a boom in camera phones in recent years hitting demand for digital cameras.

Administrator Rob Hunt said PwC had held "extensive discussions" with suppliers, but it was apparent that Jessops could not continue to trade.

A sign on the door of a Jessops shop in Birmingham

He said stock would be collected from the shops and taken to a warehouse, where it would be returned to suppliers.

As a result of the closure of the shops, Mr Hunt added that customers would not be able to return products.

Jessops was forced to call in the administrators this week after talks between the company and its lender and suppliers broke down following a poor Christmas.

Jessops had struggled since 2007, when it underwent a major overhaul with a swathe of store closures.

It came close to collapse two years later, before being rescued by its main lender HSBC in a controversial debt-for-equity swap that saw it taken off the stock market.

The camera giant's collapse comes after consumer electricals chain Comet hit the wall last year, sparking more than 6,000 job losses.

There was speculation that suppliers such as Canon were considering injecting cash into Jessops last year to help prop the business up, but no deal materialised.

The group last year also suffered the loss of its chief executive Trevor Moore, who left to head up HMV, as well as its chairman David Adams.

Martyn Everett was then appointed as chairman and Neil Old was promoted to lead the business as chief operating officer.

The firm began life in 1935 when Frank Jessop opened his first shop in Leicester.

Mr Hunt added that it was "an extremely sad day for Jessops and its employees".

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David Cameron Faces Party Battle Over Europe

David Cameron is facing a challenge to hold his party together as battle lines are drawn over Europe.

With just over a week until the Prime Minister's key speech on Britain's relationship with the EU, Tory Europhiles have launched a fight-back against demands for an in-out referendum.

Cabinet minister Ken Clarke will share a platform with Labour peer Lord Mandelson later this month to stress the benefits of remaining in the union.

The move comes after fellow Conservative Lord Heseltine warned that the economy would suffer if Mr Cameron took a "punt" and committed to a national poll on membership.

Around 20 Tory MPs have also apparently signed a letter, due to be published this week, warning of "massive damage" if the UK leaves the EU.

Rumours have been circulating that Downing Street has given tacit approval to efforts to highlight the dangers of an exit.

In an unusual intervention last week, senior US diplomat Philip Gordon openly stated that America wanted Britain to remain in the EU.

Prominent business figures including Sir Richard Branson and PR guru Roland Rudd have also spoken out about the potentially dire consequences of severing ties.

Sources told the Mail on Sunday (MoS) that Mr Cameron believes it is "mad" to think that Britain can go it alone.

Michael Heseltine says the economy will suffer if a referendum is called

And Tory backbencher Robert Buckland, who has organised the pro-membership letter, said he had been informed that Number 10 regarded his efforts as "helpful".

"There is a silent majority out there who do not want Britain to leave the EU," he told the MoS.

"The danger for the Tories is that because the right-wing Eurosceptics are making the most noise, we could slide towards the exit door of the EU."

Mr Buckland added: "I have been told No 10 views my efforts as being helpful. The Prime Minister is a Eurorealist. He wants us to stay in the EU while having a debate about the terms of our membership, but it must not be used as a Trojan horse to get us to leave."

According to the Observer, Mr Clarke and Lord Mandelson are spearheading a new organisation, the Centre for British Influence through Europe.

The group, due to launch at the end of the month, will apparently support a cross-party "patriotic fightback for British leadership in Europe".

However, Tory Eurosceptics are determined to maintain pressure on Mr Cameron, buoyed by Chancellor George Osborne's recent comments that the UK can only stay in the EU if it changes.

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Insurers To Claw Back Cost Of UK Floods

By Isabel Webster, West Of England Correspondent

The clean-up from the 2012 floods is expected to cost insurers over £1bn and push premiums up for a fourth consecutive year.

Eight thousand properties were flooded last year, according to the Environment Agency, as flooding remains Britain's greatest risk.

Residents and business owners in the town of Braunton in Devon experienced flash floods in the days before Christmas.

Pub landlord Mark Ridge, from the London Inn, is expecting to claim in excess of £160,000.

He had initially thought the damage could be repaired in a fortnight but has now been told he will have to close until Easter.

"It soon became apparent that it was a rip-out job, strip the whole pub, and get the insurances involved," said Mr Ridge.

The flood-damaged London Inn in Braunton

"That's everything from the buildings, to contents, stock, loss of earnings, staff wages have to be claimed for as well. All of which we have to pay for first and then claim back - so it's not an easy task."

Four of the top five wettest years on record have been since the year 2000 which is putting pressure on the Government and insurers to renew their 10-year deal to provide universal cover for all homes, including those in flood prone areas.

Mohammad Khan, a partner at PricewaterhouseCoopers (PwC), said: "The weather events of 2012 have dented insurers' profits and will probably lead to renewal premiums rising by up to 5% for those unaffected by the floods and by up to 50% for those flooded.

"The UK floods therefore, have also brought into sharp focus the current standoff between the insurance industry and the Government on the renewal of the Flood Principles - agreement needs to be reached in 2013."

The negotiations over continued cover from insurers, in return from assurances from the Government including the managing of flood risks and robust planning controls, will continue until June.

Last year's flooding is expected to push up insurance premiums

Matt Cullen, from the Association of British Insurers, warned: "We've calculated following some extensive research that if we don't reach agreement with the Government over what replaces the Statement of Principles then around 200,000 homes in flood-proned areas could struggle to access cover."

But the Government has played down the likelihood of such a situation.

A Defra spokesperson said: "We want to find a lasting solution that secures the affordability and availability of flood insurance for the first time, without placing unsustainable costs on wider policyholders or taxpayers.

"Our primary role is to prevent flooding in the first place. We are on course to spend £2.3bn on preventing flooding and coastal erosion over this four-year period."

PwC said it estimates the cost of the floods to the insurance industry in 2012 to now add up to around £1bn.

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