HMV's Boss Made Redundant: Sky Sources

HMV: The Stores To Close

Updated: 10:42am UK, Thursday 07 February 2013

The 66 stores identified for closure are:

Ashton-under-Lyne, Ballymena, Barnsley, Bayswater, Belfast Boucher Road, Belfast Forestside, Bexleyheath, Birkenhead, Birmingham Fort, Blackburn, Boston, Bournemouth Castlepoint, Bracknell, Burton-upon-Trent, Camberley, Chesterfield, Coleraine, Craigavon, Croydon Centrale, Derry, Dumfries, Durham, Edinburgh Fort, Edinburgh Gyle Centre, Edinburgh Ocean, Edinburgh Princes Street, Edinburgh St James, Falkirk, Fulham, Glasgow – Fort, Glasgow – Silverburn, Glasgow Braehead, Huddersfield, Kirkcaldy, Leamington Spa, Leeds White Rose, Lisburn, Loughborough, Luton, Manchester 90, Moorgate, Newry, Newtonabbey, Orpington, Rochdale, Scunthorpe, South Shields, Speke Park, St Albans, St Helens, Stockton-on-Tees, Tamworth, Teesside, Telford, Trocadero, Wakefield, Walsall, Walton-on-Thames, Wandsworth, Warrington, Watford, Wellingborough, Wigan, Wood Green, Workington, Wrexham.

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Lloyds Eyes Branches Float Amid Co-op Doubts

By Mark Kleinman, City Editor

Millions of high street bank customers face further uncertainty amid growing concern that a takeover of more than 630 branches by the Co-operative Group will be abandoned.

I have learnt that Lloyds Banking Group, which is 41%-owned by UK taxpayers, is stepping up plans for a flotation of the branches despite having agreed an £800m sale to the Co-op last year.

The move has been triggered by doubts about the ability of the two sides to complete the deal, according to people familiar with the discussions between the two banks.

One insider said this week that the Co-op was in active talks with the Financial Services Authority (FSA) about a string of issues related to the deal, one of which was about the capital position of its banking division.

"There has been no change in the tone of the discussions with the regulator," a person close to the talks said.

Codenamed Project Verde, the 632-branch network has to be sold in return for the state aid required to rescue Lloyds at the height of the 2008 banking crisis.

If the deal does collapse, it would be the second-such abandonment following Santander UK's withdrawal from a deal to acquire more than 300 branches from Royal Bank of Scotland (RBS) late last year.

People close to Lloyds insisted that its preferred option remained the deal with the Co-op but conceded that it was accelerating preparations for a demerger of the Verde business onto the public markets.

In a statement on Friday, a Lloyds spokesman said: "We are continuing negotiations with Co-op and are making good progress in creating a stand-alone challenger bank. We expect to have a separate TSB branded bank on the UK high street from the summer."

The Co-op is likely to provide an update on the Verde talks when it announces annual results at the end of March.

A collapse of the deal would be an embarrassment to George Osborne, the Chancellor, who has hailed the takeover by the Co-op as an important step towards fostering greater competition in Britain's high street banking market.

The Verde network has well over three million customers and a market share that would alone make it Britain's seventh-biggest bank.

Growing pressure on UK lenders to bolster their capital positions from the new Financial Policy Committee of the Bank of England has, however, placed greater focus on the structure of the Verde deal, according to people close to it.

The Co-op declined to comment.

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EU Leaders Agree Historic Budget Deal

EU Budget: A Classic Compromise

Updated: 6:21pm UK, Friday 08 February 2013

Accounting sleight of hand has been used to secure the approval of member states, while the EU institutions grumble on the sidelines.

Germany hailed a "good and important" deal, for Spain it was "good news", while Italy declared the deal to be "satisfactory".

For David Cameron the negotiations, which see the budget reduced for the first time in 56 years, were a "success" but must not be "oversold".

So smiles all round, because few "red lines" were crossed.

That made it an extremely difficult task for European Council president Herman van Rompuy.

He had to make convincing cuts to the EU's seven year budget ceiling, while protecting rebates, the common agricultural policy, structural and cohesion funds (designed to give a helping hand to struggling regions) and try to boost projects aimed at plumping growth.

The negotiators were left with little wiggle room - so a programme called "Connecting Europe" got it in the neck.

That is a 50bn euro project designed to finance large-scale infrastructure projects across the union from motorways to digital highways. Its grant was slashed by a quarter.

That, together with a cut to plans to kickstart investment in poorer areas of the EU, was met with howls of outrage from the European Parliament which, under the Lisbon treaty revision, can now reject the package and send it back to the Council.

The Parliament's president Martin Schulz said the gap between the commitment ceiling (the money which can be promised to fund future projects) and the payment figure (the EU's actual credit card limit) is too high.

He warns there is a blocking majority - but as MEPs will vote on the financial framework in a secret ballot, will they really want to start the whole process again with elections looming in 2014?

But this is where the two limits help: budget hawks (UK, the Netherlands, Sweden and Germany) can say they have kept actual spending down, while the countries arguing for more financial assistance can say they limited the hit on spending commitments.

A win-win for many member states; although not in the eyes of many those in the Commission or the Parliament, who see cuts to growth and infrastructure projects as an attack on the EU's core purpose.

The political issue for David Cameron is that he appears to have made good on his promise to achieve at least real-terms freeze.

But that of course does not necessarily translate into a better deal for the British taxpayer, who will still have to fork out more cash as the EU expands east, with poorer countries needing more financial assistance.

At the post deal news conference, he said the net contributions will rise, but by less than had been feared.

This is not because we are generous to a fault. The argument runs that by putting more cash in their pockets of Europe's poorest, it benefits everyone in the single market.

But for the 27 leaders, this constitutes a box ticked. No messy annual budget rollovers and an end to the protracted negotiations which have tied up the so-called sherpas and their number crunchers for months.

It frees them up to concentrate on the even thornier issue of rescuing the single currency.

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Findus Beef Lasagne Meals 100% Horsemeat

Tests on Findus beef lasagne have revealed that some of the ready meals were made entirely from horsemeat.

Findus analysed 18 of its beef lasagne products and found 11 meals contained between 60% and 100% horsemeat, the Food Standards Agency (FSA) said.

There is no evidence to suggest the horsemeat found in the Findus beef lasagne is a food safety risk, the FSA said.

However, the agency has ordered urgent tests on the lasagne for the veterinary drug phenylbutazone. Meat from animals treated with "bute" is not allowed to enter the food chain in Britain as it may pose a risk to human health.

All food companies have been told to test their beef products, with the FSA saying it was "highly likely" that criminal activity was to blame for the contamination.

Consumers who have purchased the ready meals - produced by French food supplier Comigel on behalf of Findus - have been advised by the FSA not to eat them and return them to the shop they were bought from.

Retail giant Tesco and discount chain Aldi have already withdrawn a range of ready meals produced by Comigel over fears they contained contaminated meat.

Findus UK has already started a full recall of its lasagne products. It withdrew its 320g, 360g and 500g lasagne meals from supermarket shelves as a precautionary measure earlier this week.

It came after Comigel alerted Findus and Aldi that their products "do not conform to specification".

It advised them to remove Findus beef lasagne and Aldi's Today's Special frozen beef lasagne and Today's Special frozen spaghetti bolognese.

Shoppers who have bought the product can get a full refund, says Findus

Findus UK apologised to customers "for any inconvenience caused" - and said anyone who bought the affected lasagne products could get a full refund.

A spokesman said: "We understand this is a very sensitive subject for consumers and we would like to reassure you we have reacted immediately. We do not believe this to be a food safety issue.

"We are confident that we have fully resolved this supply chain issue. Fully compliant beef lasagne will be in stores again soon."

Tesco also decided to withdraw its Everyday Value spaghetti bolognese, which is produced at the same Comigel site.

A Tesco spokesman said: "We are aware of the results of the Findus tests and we will of course assist Findus with their recall process.

"Tests on our frozen Everyday Value spaghetti bolognese product are ongoing under our new DNA testing programme. We will inform our customers of the results as soon as possible."

The FSA, Defra and the Department of Health are working with businesses and trade bodies to enforce food safety and assess whether there are significant levels of improperly described meat in a whole series of processed beef products in the UK, including supplies to schools and hospitals.

Environment Secretary Owen Paterson said: "The presence of unauthorised ingredients cannot be tolerated ... the responsibility and for the safety and authenticity of food lies with those who produce it, and who sell or provide it to the final consumer."

Labour has accused ministers of being "asleep on the job" and has called for a police investigation into what it believes is fraud.

Shadow environment secretary Mary Creagh said she was "shocked and appalled" by the latest revelations.

She told Sky News: "The time has come for government ministers to pull their heads out of the sand and to take some swift action.

"We have had three weeks of damaging revelations about what is happening in the meat industry ... there is evidence that criminal gangs are involved in this, and frankly I cannot believe that the Government hasn't called in the police to investigate this in the UK.

"I don't see how we get to the bottom of it without getting in specialist teams and working out who is behind this fraud and why it is happening."

People must have confidence that the food they buy is properly labelled, legal and safe to eat, she added.

Anyone who has purchased a Findus beef lasagne can call the firm's UK customer care line on 0800 132584, those in the Republic of Ireland, 1800 800500, or email careline@findus.co.uk for a full refund.

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Apple Sued By Greenlight To Unlock Cash Pile

An influential investor in Apple has filed a law suit against the company in an attempt to unlock some of its $137bn (£87bn) cash pile.

David Einhorn, the head of hedge fund Greenlight Capital, demanded Apple hand investors more of its cash, which makes up nearly a third of its stock market value.

It comes ahead of the company's annual meeting, where Apple's board is likely to questioned about its falling share price.

Although still the most valuable company in the world, Apple is facing increasing competition in the smartphone and tablet markets from rivals like Samsung.

Its once rapid growth has slowed and its stock has fallen around by 35% in value since its record-high in September.

Mr Einhorn, who filed a lawsuit at the US District Court in Manhattan, is opposed to a move by Apple that would make it more difficult to issue preferred stock.

Currently, the board is able to issue preferred stock but it wants shareholders to vote on a proposal that would require shareholder approval first.

David Einhorn once called for the chief executive of Microsoft to step down

The hedge fund manager, who has a history of criticising companies publicly, urged fellow investors to reject the plan.

"Apple has $145 per share of cash on its balance sheet. As a shareholder, this is your money," Mr Einhorn said in a letter to the company.

In response, Apple said the lawsuit over the proposal was misguided.

"Contrary to Greenlight's statements, adoption of Proposal #2 would not prevent the issuance of preferred stock," it said in a statement.

The company insisted its management team and board had been in "active discussions" about returning cash to shareholders.

Apple began to be conservative with its cash following its near-collapse in the 1990s, before founder Steve Jobs returned to the company.

It has never explained its reasons for holding onto the cash other than to say its preserving its options.

But analysts expect it to come under further pressure from shareholders at the annual meeting on February 27 to start releasing some more of its money.

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EU Budget: Leaders 'Close To Deal'

European leaders have agreed the broad lines of a deal on a seven-year budget that would fix total EU spending at 960bn (£820bn) euros.

"We feel pretty confident that we have the framework for a deal," one EU official told reporters.

"The deal is not completely finalised, but we feel sure it will be done today."

The breakthrough came after 15 hours of intense negotiations between countries in the bloc.

The agreement is expected to strike a balance between the demands of northern European countries such as Britain and the Netherlands that wanted a belt-tightening EU budget, and countries in the south and east that wanted sustained spending on farming subsidies and much-needed infrastructure.

Leaders will continue negotiating in the expectation that they can sign off on a final agreement later today, the official added.

Sky News Deputy Political Editor Joey Jones, reporting from Brussels, said: "This is the make or break meeting and leaders, including David Cameron, have been given a draft that lays out the budget."

Officials said around 12bn euros (£10.2bn) would be cut from the last proposal, made at a summit in November when agreement eluded leaders, bringing the headline ceiling for spending down to 960bn over the full 2014-2020 budget.

That represents a decrease of around 3% on the last multi-annual budget - the first time a long-term EU spending plan has seen a net reduction.

While vast in headline terms, in annual terms the budget appropriation amounts to around 140bn euros (£120bn), equivalent to just 1% of total EU economic output.

The draft agreed cuts fell mainly on a new fund for cross-border transport, energy and telecoms projects, which was cut by more than 11bn euros (£9.36bn), and on pay and perks for EU officials - a top target for Britain - which were cut by around 1bn euros (£900m), officials said.

As well as the deal needing to be signed off by all EU leaders today, it must be approved by the European Parliament, an obstacle that could prove difficult.

The European Parliament president has said he will not accept excessive cuts.

Ahead of the summit, France and Britain appeared at sharp odds over the headline numbers, with Denmark, the Netherlands and Sweden lining up on Britain's side and Italy, Spain, Poland and others allied with France. Germany was left in the middle.

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RBS Hit With £390m Fine For Fixing Libor

Revealed: The Secret Libor Messages

Updated: 3:48pm UK, Wednesday 06 February 2013

Sexual references, free meals and coded discussions were all part of the communications between RBS staff and others as they abused Libor rate-setting - even after they knew investigators were on the trail.

:: August 20, 2007

Yen Trader 4: where's young [Yen Trader 1] thinking of setting it?

Yen Trader 1: where would you like it[,] libor that is[,] same as yesterday is call

Yen Trader 4: haha, glad you clarified ! mixed feelings but mostly I'd like it all lower so the world starts to make a little more sense.

Senior Yen Trader: the whole HF [hedge fund] world will be kissing you instead of calling me if libor move lower

:: December 5, 2007

Yen Trader 2: FYI libors higher again today

Yen Trader 4: 'ucksake. keep ours low if poss. don't understand why needs to go up in yen

Yen Trader 2: no reason dude[,] [Bank C] and [Bank D] went high yest

Yen Trader 4: send the boys round

Yen Manager: pure manipulation going on

:: April 2, 2008

Senior Yen Trader: i am sure some HF [hedge fund] will complain tomorrow

Yen Trader 1: tough

Senior Yen Trader: we will say we lower every tenor ..1m 3m 6m ..we feel rbs name has very good credit ..no problem getting money in

Senior Yen Trader: good way to boost share price!

:: September 15, 2008

Yen Trader 1: can we lower our fixings today please [Primary Submitter]

Primary Submitter: make your mind up[,] haha , yes no probs

Yen Trader 1: im like a whores drawers

:: August 22, 2007

Yen Manager: Hi Mate, where are u calling the 6m and 3s Libor today?

Yen Trader 1: i put in 1.05 and 1.15

Yen Manager: ok cool...is that close to consensus?

Yen Trader 1: i think my 3s are too high[,] 6s will prob be 1.13 too[,] but i wanted high fixes today

Yen Manager: ok cool[,] its all a random variable for us at this stage it is just we have some small fixings

Yen Trader 1: well let me know if you have any preferencves [sic][,] each day

Yen Manager: thx will do

:: December 3, 2007

Yen Manager: for choice we want lower libors...let the [Money Market] guys know pls

Yen Trader 2: sure i am setting today as [Yen Trader 1] and cash guy off [Primary Submitter]

Yen Manager: great set it nice and low

Yen Trader 2: 1.02 in 6m or lower

Yen Manager: yeh lower

Yen Trader 2: 1.01 then cant really go much lower than that

Yen Manager: ok

Yen Trader 2: u care for 1m and 3m too[?] looks to me like fra map pretty flat

Yen Manager: lower generally dude

Yen Trader 2: cool

Yen Manager: within the acceptable bounds

:: February 15, 2007, showing Libor collusion between RBS and UBS

Yen Trader 2: how many people can u get to put this 1m libor low

UBS Yen Trader: well us[,] [Bank E,] and a few others i think

February 21, 2007

Yen Trader 2: what ur guys calling 3s libor[?] we need to get some low fixes

UBS Yen Trader: .64[,] yes will ask for low low high[,] 1m 3m 6m

Yen Trader 2: our guy agrees but reckons it will be 67[,] not good

UBS Yen Trader: no way! …

UBS Yen Trader: […] make sure your boys set low 1m and 3m

Yen Trader 2: will try though [Yen Trader 1/backup Yen LIBOR submitter] wants high 3s and 6s

UBS Yen Trader: we want high 6's too? don't let [Yen Trader 1] keep 3m high to help [Senior Yen Trader][,] i hate that guy

:: May 7, 2008

UBS Yen Trader: Hi [Sterling Cash Trader] if this is you can you pls ask for a low 6m in jpy for the next few days[.] Hope you are ok, was good seeing you last week[.] Cheers [UBS Yen Trader]

Sterling Cash Trader: Hi mate, I mentioned it to our guy on Friday and he seemed to have no problem with it, so fingers crossed.

:: December 4, 2008, showing Swiss Franc Libor manipulative conduct within RBS

Swiss Franc Trader: can u put 6m swiss libor in low pls?

Primary Submitter: NO

Swiss Franc Trader: should have pushed the door harder

Primary Submitter: Whats it worth

Swiss Franc Trader: ive got some sushi rolls from yesterday? …

Primary Submitter: ok low 6m , just for u

Swiss Franc Trader: wooooooohooooooo[,] 0.01%? thatd be awesome

Primary Submitter: 1.33

Swiss Franc Trader: perfect[.] u r a nice man

:: January 30, 2009

Primary Submitter: libors as requested

Swiss Franc Trader: you a top dog

:: May 5, 2009

Swiss Franc Trader: can we get high 3m, low 6m pls!

Primary Submitter: maybe

Swiss Franc Trader: PPPPLLLLLEEEEEAAAAASSSSEEEEEE

Primary Submitter: ok 41 52

Swiss Franc Trader: perfect perfect

:: May 14, 2009

Swiss Franc Trader: [Primary Submitter] pls can we get super high 3m[,] super low 6m

Swiss Franc Trader: PRETTY PLEASE!

Primary Submitter: 41 & 51

Swiss Franc Trader: if u did that[,] i would lvoe [sic] u forever

Primary Submitter: 41 & 55 then …

Swiss Franc Trader: if u did that i would come over there and make love to you[,] your choice

:: June 26, 2009, :: RBS collusion with interdealer brokers

Interdealer Broker B: Hello mate, [Yen Trader 1]? You all set?

Yen Trader 1: Yeah.

Interdealer Broker B: Right listen we've had a couple of words with them, you want them lower right?

Yen Trader 1: Yeah.

Interdealer Broker B: Alright okay, alright listen, we've had a couple words with them. You want them lower, right?

Yen Trader 1: Yeah.

Interdealer Broker B: Alright okay, alright, no we're okay just confirming it. We've, so far we've spoke to [Bank F]. We've spoke to a couple of people so we'll see where they come in alright. We've spoke, basically one second, basically we spoke to [Bank F], [Bank G], [Bank H], who else did I speak to? [Bank I]. There's a couple of other people that the boys have spoke to but as a team we've basically said we want a bit lower so we'll see where they come in alright?

Yen Trader 1: Cheers.

Interdealer Broker B: Cheers no worries mate.

March 3, 2010, Former Sterling Cash Trader now employed by Interdealer Broker A

Former Sterling Cash Trader: can i pick ur brain?

Primary Submitter: yeah …

Former Sterling Cash Trader: oh[,] we hve a mutual friend who'd love to see it go down, no chance at all?

Primary Submitter: haha [former UBS Yen Trader at Bank C] by chance

Former Sterling Cash Trader: shhh

Primary Submitter: hehehe …

Former Sterling Cash Trader: gotcha, thanks, and, if u cud see ur way to a small drop there might be a steak in it for ya, haha

Primary Submitter: noted ;-)

Former Sterling Cash Trader: 8-)

:: September 19, 2008 RBS Yen Trader engaged in 'wash trades' to compensate brokers

Interdealer Broker B: can you do me a favour … you're not going to get paid any bro for this and we'll send you lunch around for the whole desk. Can you flat…can you switch two years semi at 5 3/4 , 100 yards [meaning 100 billion yen] … between UBS. Just get … take it from UBS, give it back to UBS. He wants to pay some bro. We won't bro you …

Yen Trader 1: Yeah, yeah …

Interdealer Broker B: Yeah. Yeah. 100 yards … actually can you make it 150 and I'll send lunch around for everybody?

Yen Trader 1: Yeah.

:: November 22, 2010, conduct continues after US investigatrions start

Senior Yen Trader: hey ...you think we be able to convince [Primary Submitter] to change the libor today?

Yen Trader 1: i can try ... at the moment the FED are all over us about libors

Senior Yen Trader: thats for the USD? [$]

Yen Trader 1: ye[]s

Senior Yen Trader: dun think anyone cares the JPY libor

Yen Trader 1: not yet[,] i will walk over ot [sic] them

:: November 24, 2010, reflecting feigned refusal over Bloomberg Chat, immediately followed by agreement in recorded telephone conversation

Senior Yen Trader: was wondering if it suits you guys on hiking up 1bp [base point] on the 6mth Libor in JPY ... it will help our position tremendously

Primary Submitter: how you doing with all the volatilities these days? … to be honest happy with levels we see at the moment

Senior Yen Trader: ok no prob ... wouldn't want to cause any problem ... thanks mate

A telephone conversation commences: Senior Yen Trader: Hello?

Primary Submitter: Morning, [Senior Yen Trader]? Hi, [Primary Submitter].

Senior Yen Trader: Yeah, how are you?

Primary Submitter: I'm pretty good sir. Very Good. We're just not, we're not allowed to have those conversations on [instant messages].

Senior Yen Trader: Oh, sorry about that. I didn't know.

Primary Submitter: (laughter)

Senior Yen Trader: (laughter) Oh because of the, the BBA [British Bankers' Association] thing?

Primary Submitter: Yes, exactly.

Senior Yen Trader: Ah, ok ok.

Primary Submitter: So yeah, leave it with me, and uh, it won't be a problem.

Senior Yen Trader: Ok, great.

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High Street Rescue Plan: Bid To Save Shops

By Liz Lane, Sky News Reporter

High street shops are being given a stark warning - change, or join the growing list of casualties who have collapsed in recent months.

The Government is setting up a national Future High Streets Forum to make sure other retailers do not go the way of HMV, Blockbuster, Jessops and Comet.

Leaders from retail, property and business will try to come up with ways to revitalise town centres, building on work that retail guru Mary Portas has already begun in 27 areas of England.

They will focus on getting the High Street to adapt to meet the changing needs of consumers by offering mentoring.

Local Growth minister Mark Prisk said that involves understanding the biggest threat to retailers.

"We shouldn't underestimate the challenge the online market represents," he said.

"It's a growing part of all our habits as consumers. We must make sure high streets adapt.

Retailers like HMV and Blockbuster have suffered in recent years

"Government has a role in that, at looking to make sure, as we are, that we have strong planning, but also councils have a role, businesses have a role, landlords have a role. We want to bring them all together, drive this forward."

The forum will investigate ways of improving parking, allowing commercial landlords to turn part of their building into residential property to bring more people into town centres, and making sure high streets are given priority when it comes to planning decisions.

It will also look at ways to increase the number of pop-up stores, which is something that Pam Honour, who regularly visits one in central London, welcomes.

She said: "I think it's a lovely idea. It's a nice variety if you go past this street every day, see something different every couple of weeks. Marks & Spencer changes its shop window every two days so why shouldn't a pop up shop do the same?"

Despite more of us turning to the internet to do our shopping, pop-up retailer Sophie Brittain said there was still a place for the high street.

She said: "You still kind of want the aesthetic, the touch, the feel, the smell. In our case we've got soaps and room scents and candles, but when you buy things online you can't know exactly what they're going to be like."

Another pop-up retailer, Nikki Connor, agreed, saying: "I think there's a place for both.

"People still like to go to the High Street and they still like to shop online for ease and to make sure that you get the size that you want, so I think there's room for everybody."

A £1m Future High Street X-Fund will be awarded to areas with the best ideas for rejuvenating their town centres. The winners will be announced in March.

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Strong Bookings At Thomas Cook And Tui Travel

Strong bookings in Britain have boosted performance at Tui Travel, the parent company of Thomson and First Choice.

Europe's largest tour operator said sales for this summer were up 4% compared to 2012, while bookings in January were up 2%.

A 9% hike in summer bookings in the UK, and a 10% increase in Nordic countries helped counteract falling demand in France and Germany as the eurozone's debt crisis continues.

The company said around a third of its mainstream summer holidays had been sold so far, and that it expected full-year profit to be at the top end of expectations.

But despite the strong bookings, the British company reported a 12% increase in its loss before tax to £178m in the last three months of 2012.

While revenue at Tui Travel, which returned to the FTSE 100 index in December, slipped 4% to £2.7bn.

Thomas Cook said its performance in Britain had improved

The company's chief executive Peter Long said: "Our leading position in the UK has further benefited from increased market share as a result of higher demand for our unique holidays.

"Across all our key markets demand for the overseas holiday remains strong, despite the overall economic environment.

"We are confident that our customer focused strategy is driving performance and based on current trading we expect to be towards the top end of our roadmap guidance of 7 to 10% underlying operating profit growth for the 2013 financial year."

It comes as rival firm Thomas Cook said its turnaround plan was "firmly on track".

The world's oldest travel group, which has been struggling since the start of the downturn, also reported improving sales in the UK.

It said its pre-tax loss in the three months to the end of 2012 was £151.7m - more than 15% down on the loss reported in the same period in the year before.

Over the last two years, Thomas Cook has issued a string of profit warnings and been forced to renegotiate its bank loans.

But the company's fortunes have been improving since its new chief executive took over in May.

Industry outsider Harriet Green oversaw a string of disposals to slash its debt, including the sale of its Indian business and several Spanish hotels.

Winter and summer bookings were in-line with expectations, the 172-year-old company said.

Ms Green added: "We have seen stronger operating performances in our major markets - the UK, Germany and the Nordics.

"I am particularly pleased with the improved performance in the UK as the benefits of the turnaround plan are reflected in its operating results.

"We have further strengthened our leadership team and the pace at which we are driving change gives me confidence that together we will achieve our near term objectives and much more."

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Barclays Ups Its Mis-Selling Funds By £1bn

Barclays is to increase the funds put aside for mis-selling to consumers and businesses by another £1bn, taking the total to £2.6bn.

The confirmation of the figure comes after Sky City Editor Mark Kleinman revealed the additional set aside last night.

Kleinman said: "The fund for mis-selling of payment protection insurance (PPI) has gone up by £600m and for the interest rate swaps by £400m."

Barclays is also ultimately likely to have to set aside money for potential Libor-related litigation, following its £290m in fines last summer for manipulating the interbank borrowing rate.

The announcement comes just a week before the bank's new chief executive, Antony Jenkins, unveils a blueprint for rebuilding Barclays' reputation.

Chairman Sir David Walker and Mr Jenkins are due to appear before the Parliamentary Commission on Banking Standards later today.

Mr Jenkins, who used to run the retail banking division, is likely to be grilled on why the bank - and the industry - has consistently underestimated the scale of redress for PPI claims.

Last month, the head of Britain's Financial Ombudsman Service, Natalie Ceeney, said banks only had themselves to blame for the spiralling costs of the scandal, which she said could have been contained if they had addressed the issue earlier.

The ombudsman service, which steps in when banks and their customers cannot reach an agreement on compensation, said it was receiving up to 10,000 complaints each week about PPI, and had hired 1,000 new staff to cope with the caseload.

High street banks face a collective bill of around £12bn for mis-selling loan insurance designed to protect borrowers who missed repayments due to illness or redundancy.

Consumer groups that challenged banks over the way the policies were marketed and sold won a landmark court case in 2011, opening the floodgates to thousands of compensation claims over one of Britain's biggest ever consumer scandals.

Meanwhile, complex interest rate swaps designed for small and medium-sized businesses have also become a contentious issue.

An estimated 90% of 40,000 may have been mis-sold, and payouts may reach £500,000 for each affected firm.

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Household Water Bills To Rise By 3.5%

The average household water and sewerage bill in England and Wales is set to increase by 3.5%, regulator Ofwat said.

The average cost of a water and sewerage bill will rise to £388 from April 2013 to March 2014 - 0.5% above the rate of inflation.

Customers in southeast England face the biggest rise of  £23 a year.

The South West is close behind with a £22 increase, while families in Yorkshire will pay around £12 more a year.

Customers' bills are helping to pay for a £25bn investment programme to improve the water supply.

Ofwat chief executive Regina Finn said: "Back in 2009, companies wanted bills rises of 10% above inflation.

"That didn't chime with what customers told us they wanted, so we said they could only increase bills in line with inflation.

"We understand that there is huge pressure on household incomes, and any rise is unwelcome. Inflation is driving these increases.

Ms Finn said the regulator will ensure companies keep their promises on investments.

"We will make sure customers get value for money and if companies fall short in delivering their investment promises, we will take action," she said.

"In the past seven years, we have made companies pay out around £550m where they have under performed."

The new charges will vary for households depending on their supplier and whether they have a water meter, Ofwat said.

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BP Profit Hit By Gulf Of Mexico Settlement

BP has set aside a further $4.1bn (£2.6bn) in relation to the Gulf of Mexico oil spill, as it reported a fall in profit.

It takes the company's total cost of the explosion at the Deepwater Horizon rig in April 2010 to $42.2bn (£26.8bn).

To pay for liabilities relating to the disaster, BP has sold $37.8bn (£24bn) worth of assets since the incident.

Earlier this month, the oil giant agreed to plead guilty to manslaughter over its role in the incident - which resulted in the deaths of 11 workers - and pay $4.5bn (£2.9bn) in a record criminal settlement.

A separate, civil trial in the US is expected to begin on February 25.

The company reported an 18% fall in its underlying replacement cost profit to $17.6bn (£11.1bn) last year.

In the fourth quarter, its profit was $3.9bn (£2.5bn) - a drop of more than 20% when compared to the same period in 2011.

But these results were stronger than some analysts expected, boosted by a record performance at its refining business.

Chief executive Bob Dudley said: "We have moved past many milestones in 2012, repositioning BP through divestments and bringing on new projects.

"This lays a solid foundation for growth into the long term.

"Moving through 2013 we will deliver further operational milestones and remain on track for delivery of our ten-point strategic plan, including our target for operating cash flow growth, by 2014."

The company announced a quarterly dividend of 9 cents a share, to be paid in March. 

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Exclusive: Barclays Finance Chief Lucas Quits

By Mark Kleinman, City Editor

The group finance director of Barclays is to step down amid an ongoing probe by British regulators into a controversial £7bn capital-raising that allowed the bank to avoid the Government's clutches in 2008.

I can exclusively reveal that Chris Lucas, who has been Barclays' finance director for almost six years, will retire later this year.

The bank will announce Mr Lucas's decision to leave in a statement to the stock market on Monday. Headhunters have been appointed to identify his successor.

It was unclear on Sunday whether Mr Lucas will receive any form of payoff, although insiders described this as "extremely unlikely".

Including bonuses and deferred share awards, Mr Lucas earned almost £4m in each of the last two years.

He was one of several executives who waived an annual bonus for 2012 because of Barclays' involvement in the Libor scandal but may still be in line for an award under the bank's long-term incentive plan for last year.

The news of his retirement will come at an awkward time for Barclays and its chief executive Antony Jenkins, who is attempting to rehabilitate the bank's reputation in the aftermath of a series of scandals.

Barclays has been under investigation for several months by the Serious Fraud Office (SFO) and Financial Services Authority (FSA) for various disclosure issues related to its 2008 fundraisings.

Last week, the Financial Times reported that one of the angles being probed by the authorities was whether Barclays lent the money to Qatari investors which was then used to acquire Barclays shares.

Such an action would be illegal because it would have presented a potentially false impression of Barclays' financial health and attractiveness to outside investors.

There is no suggestion that Mr Lucas or any of the three others under investigation - Richard Boath, a senior investment banker who still works at the bank; Roger Jenkins, the former head of Barclays' lucrative tax-structuring operations; and John Varley, Barclays' former chief executive - are guilty of any wrongdoing, and insiders stressed that Mr Lucas's retirement was unconnected to the inquiries.

The individuals are being investigated by the FSA, while the SFO is looking at the bank.

In July last year, Barclays said in a statement: "The FSA is investigating the sufficiency of disclosure in relation to fees payable under certain commercial agreements and whether these may have related to Barclays capital raisings in June and November 2008. Barclays considers that it satisfied its disclosure obligations and confirms that it will co-operate fully with the FSA's investigation."

A series of share placings and fundraisings in 2008 allowed the bank to raise capital privately and avoid having to take money from the British taxpayer. That enabled Barclays to retain control of its strategy and the ability to continue paying big bonuses in a way which eluded both Lloyds Banking Group and Royal Bank of Scotland.

As Barclays' finance director, Mr Lucas has been an architect of the bank's strategy during the last six years.

His earlier career included a long stint at PricewaterhouseCoopers, the accountancy firm, where for five years he was the partner responsible for auditing Barclays.

The FSA continues to have confidence in Mr Lucas's ability to do his job.

Mr Lucas's departure later this year will complete a clean sweep of Barclays' top management following its £290m fine for manipulating the interbank borrowing rate Libor last June.

Marcus Agius, the former chairman, was replaced by the City grandee Sir David Walker, while Bob Diamond, chief executive, was effectively forced out by regulators, with Mr Jenkins appointed as his successor. Jerry del Missier had only been chief operating officer for a few days when he also resigned over the Libor scandal.

It is unclear whether Barclays has already drawn up a list of either internal or external potential successors to Mr Lucas although one person close to the bank said it was possible that a replacement would be announced imminently.

Last week Mr Jenkins waived his 2012 bonus days after Sky News revealed that Sir John Sunderland, the chairman of Barclays' remuneration committee, had signalled to investors that the board wanted to award him a significant payout.

Mr Jenkins and Sir David will appear before the Parliamentary Commission on Banking Standards on Tuesday, when they are likely to be quizzed about the status of the probes into the 2008 capital-raisings, the bank's culture and the protracted mis-selling episodes which are blighting the balance sheets of the major UK banks.

Mr Jenkins will then present his strategy for Barclays alongside the bank's annual results on February 12.

Last month he told employees that they would have to abide by a strict new ethical code of conduct if they wanted a future at the company.

:: Barclays confirmed the two departures after the Sky News report and on Monday statements were released on behalf of the two executives.

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Triple-Dip Recession May Be Dodged - Report

Britain is set to avoid the feared 'triple-dip' recession, according to a new survey.

Business confidence has now strengthened to the highest level since the second quarter of 2011, the ICAEW/Grant Thornton Business Confidence Monitor (BCM) report has suggested.

The BCM survey suggests GDP will expand by 0.4% in the first quarter of the year, after the 0.3% contraction in the last quarter of 2012.

ICAEW chief executive Michael Izza said: "There was a risk that, combined with the traditional January blues, the bad weather and some high profile retail collapses, talk of a triple-dip recession could become self-fulfilling.

"These results show that we are set to avoid a third period of technical recession, but no one should be complacent.

"There is only one way out of our economic malaise, and that's to increase our economic output. Such a task isn't going to be easy, or indeed quick."

Firms have seen a 1% increase in staff in the last year and plan to increase headcount by another 1.5% over the next 12 months.

One in 10 firms say the availability of management skills is a greater challenge than a year ago, suggesting that companies may struggle to recruit the right people to lead the recovery.

However, although business confidence appears to be widespread, it is most optimistic in Wales and the South East.

The report added that the construction sector, which has been hit hard in recent reporting periods, has renewed confidence along with IT and telecommunications.

Grant Thornton LLP chief executive Scott Barnes said: "Export growth rose slightly this quarter as the global economy picked up.

"This is coupled with an improvement in both profit and turnover growth, which companies expect to increase in the year ahead.

"Despite a rise in confidence though, companies' modest plans for capital investment are a worry as this is crucial to a strong and sustained recovery."

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George Osborne To Warn Banks On Ring-Fencing

Britain's biggest banks will face "complete separation" if they flout new rules to ring-fence risky operations from savers' deposits, the Chancellor will announce today.

The new legislation will give the Government and a new banking watchdog powers to "electrify the ring-fence" if banks fail to split high street branch operations from the dealing floor.

Launching the Banking Reform Bill today, George Osborne will tell traders that there will be no more "too big to fail".

It comes after the Parliamentary Commission on Banking Standards, which was set up in the wake of the Libor rate-rigging scandal, called for a reserve power for full separation if banks did not implement reforms.

The Bill proposes different bosses for High St and Investment banks

Sky City Editor Mark Kleinman first revealed details of Mr Osborne creating special powers for regulators to break up individual banks if they flout the ring-fencing rules.

Mr Osborne had warned the Commission, against "unpicking the consensus" over reform proposals in the Bill in November, but appears to have heeded their warnings that loopholes could easily develop.

Sir John Vickers, who chaired the Independent Commission on Banking (ICB), has also said he "would not resist" a complete break up of banks if so-called ring-fencing fails to achieve its desired effect.

But the announcement will put the Chancellor on a collision course with the banks, which claim the legislation will damage London's attractiveness as a global financial centre.

Anthony Browne, chief executive of the British Bankers' Association, said: "This will create uncertainty for investors, making it more difficult for banks to raise capital, which will ultimately mean that banks will have less money to lend to businesses."

He said moving away from the universal model of banking undermined banks' ability to provide all the services businesses need.

But Mr Osborne is expected to say: "When the RBS failed, my predecessor Alastair Darling felt he had no option but to bail the entire thing out. Not just RBS on the high street, but the trading positions in Asia, the mortgage books in sub-prime America, the property punts in Dubai.

"I want to make sure that the next time a Chancellor faces that decision they have a choice. To keep the bank branches going, the cash machines operating, while letting the investment arm fail."

Under the Bill investment and high street banks will also have different bosses and a new watchdog will be set up.

Customers will also be empowered and be given the right to switch banks to another provider within a week, under sweeping reforms.

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