Petrol Price Rise On Way As 'Floodgates Open'

Petrol prices are set to rise by up to four pence a litre in the next few days, retailers have predicted.

The rise was forecast by the Petrol Retailers Association (PRA), and would add around £2 to the cost of filling a typical family car.

It comes as forecourts pass on increased wholesale costs to motorists.

"Independent retailers have been soaking up this increase at the expense of already tight margins because they know how hard the motorist is squeezed," said PRA chairman Brian Madderson.

But he warned: "The floodgates will have to open soon."

The AA's Edmund King criticised the predicted rises

The AA forecast a smaller rise of about 2.5 pence per litre, as it accused the industry of failing to pass on falls in wholesale prices as quickly as increases.

The Office of Fair Trading will decide next week whether to launch an investigation into the fuel market.

AA president Edmund King told the Daily Telegraph: "Another new year, another new round of pump price rises after the industry failed to pass on fully wholesale price savings.

"The insight we are now getting on wholesale price movements rams home the need for this information to be out in the public domain immediately."

Throughout the whole of 2012, the average price of a litre of petrol rose by 2.75p.

Despite a fall in fuel demand across northern Europe, and an apparent glut of petrol capacity, wholesale costs have risen steeply in the four weeks since Christmas.

Industry figures show the daily average selling prices in the UK have risen by less than one pence per litre for both petrol and diesel since January 1.

Mr Madderson also said that George Osborne should abandon plans to increase fuel duty from September.

"If fuel costs continue to rise as our sluggish economy and loss of AAA credit rating weaken the pound sterling against the US dollar, the Chancellor must abandon plans to increase duty ... when he presents his Spring Budget.

"Householders and businesses will be hard pressed to cope with market fluctuations let alone more Government tax intervention."

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Nick Clegg Suggests Coalition Cut Too Deeply

Deputy Prime Minister Nick Clegg has appeared to admit that the coalition cut spending too deeply when it took power.

Speaking ahead of the release of figures that are expected to show a fresh contraction in the UK economy, he said ministers had "comforted" themselves at the time that the reduction was in line with plans drawn up by the previous Chancellor, Labour's Alistair Darling.

In an interview with The House magazine, he said: "If I'm going to be sort of self-critical, there was this reduction in capital spending when we came into the Coalition Government.

"I think we comforted ourselves at the time that it was actually no more than what Alistair Darling spelt out anyway, so in a sense everybody was predicting a significant drop off in capital investment.

"But I think we've all realised that you actually need, in order to foster a recovery, to try and mobilise as much public and private capital into infrastructure as possible."

Bank of England governor Sir Mervyn King has predicted a weaker quarter

Rachel Reeves, shadow chief secretary to the Treasury, said: "This is the first admission that this Government has made serious mistakes on the economy."

Some experts believe gross domestic product (GDP) - released later today - will have fallen by 0.1% in the final quarter of 2012.

If the economy then contracts in the current quarter the nation would be officially back in recession.

Hopes of a rebound are fading after a snow-hit start to 2013, which some estimate cost Britain more than £500m-a-day in lost output.

A fourth-quarter downturn would be a sharp reversal of the 0.9% recovery seen in the third quarter, when output was fuelled by one-off factors such as the Olympics and as the economy clawed back activity lost during the Queen's Diamond Jubilee holiday.

Bank of England governor Sir Mervyn King has already warned that the quarter would be "considerably weaker", while the IMF believes the UK contracted by 0.2% overall in 2012.

It also expects expansion of just 1% during this year.

Today's figures from the Office for National Statistics (ONS) represent the initial estimate of GDP and are subject to revision over subsequent months.

But the run of gloomy economic indicators increases the threat to the UK's prized AAA rating, with all three major ratings agencies placing the country on negative outlook.

Construction has so far been the only bright spot, according to recent industry surveys, with activity surging to a 15-month high in December.

But it accounts for only 10% of the economy and the far bigger services sector has not fared so well.

The first official estimate of fourth-quarter GDP will not include overall household consumer spending figures, which will be taken into account in the second estimate.

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Samsung Q4 Profits Surge 76% Over Smartphones

Samsung has seen its quarterly profits soar by 76%, boosted by the popularity of its Galaxy smartphones, which have outsold the iPhone for a fourth straight quarter.

Net profit for the final quarter of 2012 totaled 7.04 trillion South Korean won (£4.1bn), up from 4.01trn won a year earlier. 

Sales for the final quarter of 2012 rose 19% over a year earlier, and operating income jumped 89%.

Samsung, which overtook Apple as the top smartphone maker last year, said increased sales of the phones were the key source of its profit growth.

Its operating profit from the division that makes and sells smartphones and tablets more than doubled to 5.44trn won in Q4, up from 2.56trn won a year earlier.

Most analysts believe Samsung shipped more than 60 million smartphones, including the Galaxy S III and Galaxy Note II, during the three months ending in December, which would put the year's smartphone sales at more than 200 million.

On Wednesday, Apple said it sold 47.8 million iPhones in the quarter.

Hong Kong-based research firm Counterpoint Research said Samsung took 33% market share in the fourth quarter, compared with Apple's 21%.

But Samsung said that it now expects earnings to decline during the current quarter, because of seasonally low demand for consumer electronics, post-Christmas.

The company said the growing strength of the South Korean won may harm profits, with margins reduced as a result.

Unlike Samsung, Apple is keeping its iPhone price high

However, analysts believe that Samsung could be little affected by market demand thanks to its variety of products that range from affordable to expensive devices.

Samsung, which makes dozens of handset models a year and customises them for mobile operators, also sells cheaper smartphones.

Apple, on the other hand, which keeps its iPhone price high, might see iPhone sales plateau in coming years as more consumers snap up cheaper Android phones.

Still, Apple's business has been more profitable because of the high price of the iPhone, which generates a larger profit per sales.

Samsung is expected to introduce a new flagship smartphone in its Galaxy S series as early as April, which analysts say will shore up its bottom line.

The company said consumers seeking to replace its current handset and get a faster wireless connection will drive the demand for new models, easing concerns that sales would slow because of smartphone saturation in developed markets.  

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Spain: Unemployment For Under 25s Hits 60%

Unemployment in Spain for people under the age of 25 has now reached 60%, according to officially released figures.

Overall, Spain's unemployment rate soared to its highest level since measurements began in the 1970s as a prolonged recession and deep spending cuts left almost 6 million people out of work at the end of last year.

It rose to 26% in the fourth quarter of 2012, or 5.97 million people, according to the National Statistics Institute, up from 25% in the previous quarter and more than double the European Union average.

Spain sank into its second recession since 2009 at the end of 2011 after a burst housing bubble left millions of low-skilled laborers out of work and sliding private and business sentiment gutted consumer spending and imports.

Efforts by Prime Minister Mariano Rajoy's government to control one of the euro zone's largest deficits through billions of euros of spending cuts and tax hikes have fueled general malaise, further hampering demand.

When Rajoy took office in late 2011 there were 5.27 million jobless in Spain.

More follows...

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Apple Reports Quarterly Revenue Of $54.5bn

Apple sold 47.8 million iPhones in the last quarter of 2012 and its revenues rose to $54.5bn (£34.4bn) - but the numbers fell short of its targets.

Revenue for the first fiscal quarter of 2013 - the key Christmas shopping period from October 1 to December 31 last year - came in at a record $54.5bn (£34.4bn), but less than the $55bn (£34.7bn) forecast by Wall Street.

Earnings of $13.1bn (£8.2bn) remained flat compared to the year before, marking the first time tech giant had not boasted double-digit increases in earnings for several years.

Shares of the computing giant fell in after-hours trading, at one point plunging more than 10%.

Some analysts had expected iPhone sales to be around 50 million and revenues to be slightly higher.

Net profit came in at $13.1bn (£8.7bn).

The results are likely to rekindle questions over what Apple has in its product pipeline, and what it can do to attract new sales and maintain its rocket-like growth.

CEO Tim Cook succeeded Steve Jobs

It was the third quarter that Apple has missed revenue expectations.

Competition from Samsung and signs that the smartphone market may be close to saturation have slowed Apple's growth.

Questions remain over the company's ability to innovate after the death of iconic co-founder Steve Jobs.

But chief executive Tim Cook said he was "thrilled" with the figures and insisted the company continued to focus on innovation.

"We're thrilled with record revenue of over $54bn and sales of over 75 million iOS devices in a single quarter," Mr Cook said.

"We're very confident in our product pipeline as we continue to focus on innovation and making the best products in the world."

Apple also sold 22.9 million iPads in the quarter, in line with expectations.

But only 4.1 million Mac laptop and desktop computers were snapped up compared to 5.2 million in the same period a year ago, while Apple shifted 12.7 million iPod portable media players this year in contrast to 15.4 million during last year's first quarter.

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EasyJet Revenue Jumps 9% In Last Quarter

Low cost airline easyJet has seen total revenue for the last three months of 2012 rise by 9.2%, up to £833m.

Total revenue for its first quarter reporting period, ending December 31, was £833m.

The airline also reported that passenger numbers were up by 6.2% over the same period, to 13.7 million.

EasyJet, which said around 80% of its first half seats were now booked, expects to contain pre-tax losses over that period to between £50m and £75m, compared to the £112m loss reported in the first half of last year.

The company has engaged in an aircraft purchase programme and now operates more than 200 planes.

It has also seen growth in the number of business travellers flying with the British-based airline.

EasyJet is Europe's second-largest low cost airline, after Irish-based Ryanair.

Chief executive Carolyn McCall said: "EasyJet has made a strong start to the year due to a combination of management action, competitor capacity reductions and the benign operating environment.

"The good performance in the quarter and the structurally advantageous position that easyJet occupies in the European short-haul market means we remain confident in our outlook for the business." 

She added: "Although the economic environment remains challenging, easyJet's strong customer proposition, combined with the actions that management are taking ensures that easyJet is well positioned going forward to deliver sustainable growth and returns." 

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Old Fashioned Con Artistry Makes A Comeback

Traditional con artistry is making a comeback with cheque and procurement fraud as well as Ponzi scams on the rise.

While the spotlight has been on rogue traders and 'super' fraud cases in recent years, KPMG has found a surge in the number of individuals swindling employers, banks and the government.

The latest bi-annual Fraud Barometer reports that insider fraud is hitting corporates hard while more individuals are over-claiming benefits and evading tax.

Cases include a finance department employee who stole hundreds of thousands of pounds – leading to the closure of the company she worked for.

In another case, a family used false identities to claim £2.2m in HIV medication - which was then shipped to Africa and sold at a profit.

Identity fraud more than doubled in value from the year before to £26.3m, while counterfeit goods fraud was three times the five-year average at £22.9m.

Ponzi Schemes worth £72m came to court - also three times the level seen in 2011 and procurement fraud increased to £21.4m in 2012.

Hitesh Patel, UK Forensic Partner at KPMG, said: "In the last few years we have become used to sophisticated frauds at eye-watering values. 

"While the total value of fraud has dropped substantially in the absence of so-called fraud 'super' cases, the old-fashioned con man hasn't given up his tricks. 

"Times may be tough but the data shows that some people are unwilling to give up the lifestyles they've become accustomed to."

Fraud by either management or employees accounted for 80% of financial loss through fraud experienced by UK businesses in 2012.

Employee fraud cases rose to 35 in 2012, up from 22 the year before, with their value doubling from £12m in 2011 to £25.1m over the past year.

Tax evasion or benefit fraud cases rose to 15 from three in 2011.

Mr Patel said: "Tax evasion is one of the hot topics of the moment but an increasing assault on the social welfare budgets, particularly benefit fraud, is a real and increasing threat for the government, as shown by the latest figures. 

"Fraudulent actions of individuals in both the public and private sectors exacerbate the need to make cuts in the first place and cause more than just monetary loss: jobs can be lost and already tight government budgets are stretched further, with implications for the delivery of services."

The report also found a fall in the number of cases perpetrated by professional criminals, from 98 at the end of 2011 (valued at £1.4bn) to 79 in the 12 months to December 2012 (valued at £414m).

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Mackerel Removed From 'Sustainable List'

Mackerel has been taken off a list of sustainable fish to eat regularly, amid a fear of overfishing.

The Marine Conservation Society (MCS) said it downgraded mackerel and the fish, renowned for its omega 3 content, should only be eaten occasionally.

The removal by the MCS of mackerel from its list of "fish to eat" comes after the Marine Stewardship Council, which certifies fish stocks that are managed sustainably, suspended its certification of the north east Atlantic mackerel fishery.

Atlantic populations have moved north west into Icelandic and Faroe Islands waters, prompting their fishermen to fish more stock than was previously agreed and causing a dispute between the countries that target the fishery.

Mackerel has been a favourite fish for health-conscious Britons for a number of years.

Bernadette Clarke, fisheries officer at the MCS, said the stock has moved to follow its prey of small fish, crustaceans and squid.

"As a result, both countries have begun to fish more mackerel than was previously agreed.

"The total catch is now far in excess of what has been scientifically recommended and previously agreed upon by all participating countries - negotiations to introduce new catch allowances have so far failed to reach agreement."

The conservation group said alternatives to mackerel included herring and sardine, and if people wanted to continue to buy mackerel, they should ensure it is as sustainable as possible - for example, fish caught locally using traditional methods.

Another fish taken off the "fish to eat" list is gurnard, because of a lack of data on population levels and concerns about how stocks of the increasingly popular fish are being managed.

Many gurnard which are caught are discarded, a wasteful practice which sees useable fish thrown back into the sea, because there is still relatively low demand for them, Ms Clarke added.

But the latest version of the "fish to eat" list also shows that herring stocks, coley and Dover sole from the English Channel are all good to eat with a clear conscience.

Whiting from the Celtic Sea also appears on the list for the first time.

Cod stocks from the North Sea are still below recommended levels, the MCS said, but a number of other popular wild fish are given the green light to appear on the dinner plate, including haddock and lemon sole.

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Rose Replaces Grade As Ocado Chairman

By Mark Kleinman, City Editor

Sir Stuart Rose is to stage a dramatic stock market comeback after he was appointed today as the new chairman of Ocado, the online grocer.

I exclusively revealed that Ocado would announce Sir Stuart's appointment as the successor to Lord Grade, who was stepping down after seven years at the helm.

A statement confirmed the move shortly after it was revealed on Sky News.

Sir Stuart's arrival at Ocado represents his most prominent appointment since he stepped down as chairman of Marks & Spencer at the end of 2010.

His recruitment is a coup for the online retailer, which has yet to record an annual profit since launching a decade ago. Ocado floated on the stock market three years ago, since when its share price has fallen sharply.

Ironically, M&S was the catalyst for an increase in Ocado's share price on Monday with traders betting on rumours that the online grocer could be a takeover target for its high street counterpart.

Ocado, which is lauded for its customer service, is having to fight increasingly intense competition from the online operations of the big supermarket chains, including Tesco and J Sainsbury.

Since leaving M&S, Sir Stuart has taken on a number of part-time roles, including acting as an adviser to Bridgepoint, the private equity firm, and as a non-executive director of Woolworths Holdings, the South African retailer.

The former M&S boss, who was parachuted into the high street chain in 2004 to fend off a takeover bid from Sir Philip Green, had a fractious relationship with the company's shareholders after becoming executive chairman in 2008.

Sir Stuart is expected to take over as Ocado chairman after the company's annual meeting in May.

Ocado declined to comment before the official announcemet while Sir Stuart couldn't be reached for comment.

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