Former RSA Boss Makes Haste For TSB Chair

By Mark Kleinman, City Editor

Andy Haste, the former boss of RSA Insurance, is being lined up to take the helm of TSB as it prepares for a rebirth as an independent bank on Britain's high streets.

Sky News can reveal that Mr Haste has emerged as the preferred candidate to become chairman of TSB ahead of a planned flotation on the London Stock Exchange next year.

Mr Haste, who stepped down from RSA in 2011, has not yet formally agreed to take the role, and the approval of the Prudential Regulation Authority, the UK banking watchdog, would also be required.

That consent is unlikely to be withheld, however. Mr Haste is highly regarded from his time at RSA, where he steered the company from the brink of collapse, although it has endured a rockier period since his departure with two profit warnings in the last 10 days alone.

His appointment as TSB's chairman would give a boost to the prospects of a successful flotation of what will be the UK's seventh-largest lender.

Lloyds Banking Group, which is 33%-owned by taxpayers, has to sell TSB under the orders of the European Commission in return for the state aid it received when it was bailed out in 2008.

Lloyds had planned to sell the 632 branches to the Co-operative Group, a plan which was abandoned because of the financial crisis at the mutual.

TSB was relaunched in September and has pledged to restore local banking services to British communities.

The bank has a 4.3% share of the current account market and under the stewardship of Paul Pester, chief executive, wants to increase that to at least 6%.

It will also make a series of commitments next year about executive pay and transparency of lending decisions as it tries to distinguish itself from its high street rivals, many of whom remain tainted by mis-selling scandals which pre-date the financial crisis.

Mr Haste has taken on a portfolio of jobs since leaving RSA, including the deputy chairmanship of Lloyd's of London and an ad hoc role with Advent International, the private equity firm.

Taking on the TSB role would reunite him at least temporarily with George Culmer, the Lloyds Banking Group finance director, who joined the lender from RSA.

Among the other candidates interviewed for the TSB chairmanship was Dennis Holt, a former Lloyds TSB executive.

Lloyds has lined up Citi and JP Morgan, the investment banks, to work on the TSB flotation, which is pencilled in for the middle of 2014.

Lloyds declined to comment, while Mr Haste could not be reached for comment.

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£11bn Olympics Benefit Target Met

A four-year target of raising £11bn worth of economic benefit from the London Olympics has been met in 12 months, the Government has said.

The country has benefited from new foreign investment, additional sales and firms winning contracts since last summer's events, according to a report.

The total includes £130m of contracts won by UK companies for next year's soccer World Cup in Brazil, and the next Olympic Games, in Rio in 2016

Trade and Investment Minister Lord Green said: "The delivery of London 2012 on time and on budget led to hosting nations turning to the UK to help deliver their own events with supply opportunities running into the billions.

"UK Trade & Investment has played a key role in helping British companies maximise these opportunities and the result is a £11.06bn boost to the UK economy from the Games, reaching our four-year target in just over a year."

Secretary of State for Culture Media and Sport Maria Miller said: "Last year's Games put the UK in the global spotlight and showed the rest of the world that this country is open for business.

"The economic legacy of last year's Olympic and Paralympic Games is sometimes neglected but these figures show that the financial investment made into London 2012 has already been recouped."

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JPMorgan Agrees $4.5bn Mortgage Payout Deal

US banking giant JPMorgan Chase has reached a deal to pay $4.5bn (£2.79bn) to investors for losses on mortgage securities sold before the financial crisis.

A total of 21 institutional investors to are to receive the money.

JPMorgan said the deal would settle investors' claims that the bank and Bear Stearns, which it took over at the outset of the crisis.

The agreement comes over claims it misrepresented the asset quality of 330 residential mortgage-backed securities portfolios the investors were sold.

The bank said the settlement is "another important step in JPMorgan's efforts to resolve legacy-related RMBS matters".

"The firm believes it is appropriately reserved for this and any remaining RMBS litigation matters."

The deal follows JPMorgan's agreement to pay $5.1bn (£3.16bn) to government-controlled mortgage giants Fannie Mae and Freddie Mac over low-quality mortgage bonds it sold them.

And it also comes after the institutional investors struck a deal for Bank of America to pay $8.5bn (£5.27bn) for questionable deals sold with exaggerated quality ratings.

But like the Bank of America deal, the new JPMorgan agreement still needs to be approved by trustees of the mortgage securities in the case, as well as a court.

The trustees have until January 15 to accept the deal, but the offer could be extended by another 60 days if necessary.

In a statement the 21 investors said they agree to the deal and are asking the trustees of the bond issues to accept it.

If accepted, the payout will benefit all investors claiming losses on the bonds, and not just the 21 institutions, they said.

"The Institutional Investors will participate in the settlement, like every other investor, based on the terms of the payment waterfall," they said in a statement.

The agreement would settle the investors' claims against RMBS sold by JPMorgan itself and Bear Stearns, but not by Washington Mutual bank, which JPMorgan also took over during the crisis.

JPMorgan has maintained that it took on the assets of Washington Mutual only after the bank had collapsed into the government's hands in 2008, and so it was not liable for its misdeeds.

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Barclays Bank 'To Axe 1,700 Branch Jobs'

Barclays is to slash 1,700 jobs from across its branch network, saying fewer staff are needed because more people are banking online.

The number of cashiers, personal bankers and managers employed by the bank is expected to be cut throughout 2014.

The trade union Unite described the decision as a "colossal mistake" and said it was challenging Barclays' claims that the way customers access their banking services is changing rapidly.

Dominic Hook, the union's national officer, said: "These employees deliver high levels of service that customers of the bank benefit from.

"Such a massive reduction will be very detrimental to the bank and will also be hugely challenging for the staff remaining."

Mr Hook said the union would be "pressing Barclays to reconsider" its proposal.

He said the bank had agreed to demands for a voluntary redundancy register, as well as training grants for anyone leaving Barclays and compensation for employees who reduce their working hours.

"The union will also be seeking firm assurances that there will be no compulsory redundancies following the completion of the voluntary exercise," Mr Hook said.

A spokesman for Barclays, which has more than 1,700 UK branches and employs about 140,000 people worldwide, said it was investing in new technology and improving customer service.

"This means training staff so they can provide that expert support but also reducing staffing levels in our branches where there is over capacity," he said.

"As a result of technological changes, we will be able to provide better service for our customers with fewer staff in our branches.

"Today we have outlined a voluntary redundancy scheme for those colleagues who are interested.

"We are committed to working with our impacted colleagues so that they are fully consulted and have access to the support and services they require."

Earlier this month, Barclays announced it was opening a number of seven-days-a-week branches in Asda supermarkets around the country.

On Wednesday, it announced its head of compliance Sir Hector Sants had resigned after he was placed on sick leave for stress and exhaustion.

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Spain To Make Clean Exit From Bank Bailout

Spain's decision to make a clean exit from its bank bailout has been welcomed by Eurogroup, which is made up of finance ministers from euro-using countries.

It said it showed the effectiveness of steps to deal with excessive government debt.

Earlier, it was announced that Ireland's aid programme will end in December. Spain's wraps up in January.

Jeroen Dijsselbloem, who chairs Eurogroup, said: "These economies are back on the road to recovery."

In 2012 Spain tapped €41bn (£34.5bn) from the eurozone countries' bailout fund to recapitalise banks that faltered after a property boom collapsed.

EU Economy and Euro Commissioner Olli Rehn told a news conference that the Spanish financial market had stabilised, liquidity of banks had improved and deposits were rising.

He said the key now lay in the restructuring of Spain's local savings banks.

But the Eurogroup said Madrid still had work to do.

"We call on the Spanish authorities to rigorously continue the reform momentum to address any remaining challenges regarding the economic and fiscal situation, including the high unemployment rate and the vulnerabilities stemming from the still high private and external debt," the group said in a statement after talks in Brussels.

Greece, Portugal and Cyprus remain on bailout support as a result of  troubles with too much debt.

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Nationwide Sees Half-Year Profit Up 155%

The Nationwide has reported a 155% leap in half-year underlying profits, citing more lending and a rush of new customers coming to it from high street rivals.

Dissatisfaction with the so-called big four high street banks has helped drive new customers to the Nationwide.

A total of 214,000 new current accounts were opened in the six months to the end of September, up 16% on the same period last year.

Nationwide now has 5.3 million current accounts and its market share of main standard and packaged accounts is now at an all-time high of 6%.

It is Britain's biggest customer-owned lender and the the third biggest mortgage lender.

Gross mortgage lending at the society rose 37%, to £14bn.

The building society said it made an underlying profit of £332m in the first-half, up from £130m in 2012.

Executive director Chris Rhodes said: "These results show that Nationwide continues to be the main alternative to the big banks.

"The combination of competitive products combined with a strong reputation for customer service is attracting more than 1,100 customers a day to the society."

The Nationwide's performance has been boosted an improvement in its net interest margin - the difference between the rate it offers to savers and the rate it charges borrowers.

As a building society the Nationwide seeks to serve its members' interest while generating profit to expand its business.

It says profit is then utilised to offer higher rates for savers and lower rates for borrowers.

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Bank: UK Recovery Has Finally Taken Hold

Interest Rates To Rise As Handcuffs Come Off?

Updated: 6:14pm UK, Wednesday 13 November 2013

Let's start with the good news. The economy is recovering more convincingly than at any point since the financial crisis of 2008.

And while this is hardly new news (the figures have been pointing that way for a while), the Bank of England seemed to confirm it today as it raised its growth forecast for both this year and next year.

If its predictions are borne out, next year the economy will expand by 2.8% - the highest rate since 2007.

In fact, this isn't the end of the good news. Inflation is lower than expected; unemployment is also falling faster.

Almost any metric you care to look at suggests that this is turning into a benign and pretty solid recovery. Let's leave aside for the moment the question of why it's taken so long, and why that growth is uncomfortably reliant on consumer debt.

The big question, however, is what the Bank of England does next. Not only are interest rates down at 0.5% - the lowest level on record - the Bank's new Governor, Mark Carney, committed earlier this year not to raise them until unemployment dropped beneath 7%.

Forward guidance, as the bank calls it, is best regarded as a set of self-imposed handcuffs. Until the jobless rates drops beneath that magic number seven, the handcuffs stay on and rates don't go up.

And what we learned from the bank's Inflation Report today is that the handcuffs are likely to come off a lot sooner than had been expected.

Back in August, the bank didn't expect the unemployment rate to drop beneath 7% until at least the end of 2016.

Today it revealed it now believes unemployment will drop beneath this level at the end of 2014. That's a pretty big adjustment.

There are a few obvious implications. One is that the Bank's Monetary Policy Committee will be free to start voting on higher interest rates before the next election.

But taking the handcuffs off doesn't necessarily imply the captive will actually move his hands. Rates won't necessarily rise the moment forward guidance comes to an end.

Indeed, today the Governor signalled that markets, which currently expect the bank to start lifting rates in early 2015 and to bring them up to 1.7% by the end of 2016, may be getting ahead of themselves. However, if not before the next election, rate rises are likely shortly afterwards.

With the end of forward guidance (eg the handcuff period) already on the horizon, some have construed this as evidence of the policy's failure.

After all, it only kicked in three months ago. What, they ask, was the point of it in the first place?

The bank's answer is that forward guidance has helped cement the economic recovery and that recovery has come along sooner than expected, so that it's right forward guidance will come to an end (well, in late 2014/early 2015).

To use a rather odd analogy, consider the male honeybee. It dies as soon as it fertilises the queen bee, but its death allows the rest of the colony to survive.

In the same way, forward guidance, having stimulated economic recovery, will inevitably need to expire for the rest of the economy to recover. It is, in economic terms, the supreme sacrifice.

Economists are likely to argue about the wisdom or otherwise of the policy for some time. What matters for most of us is that growth is returning to the UK and that interest rates are likely to rise a touch sooner than expected.

One final noteworthy aspect of today's Inflation Report press conference was the amount of time the Governor spent answering questions about the housing market.

There is growing concern about a bubble (or at the very least some regional bubbles) emerging in UK property prices.

Mr Carney is clearly sensitive to this - we shall have to wait until the next meeting of the Bank's Financial Policy Committee to see whether he's willing to take action on it.

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Burberry Breaks £1bn Barrier But Profit Flat

Luxury fashion group Burberry has seen its total revenue break the £1bn barrier for the first time, while profit for the group has remained flat.

The 157-year-old group, best known for its camel, red and black check pattern, made a profit before tax and one-off items of £174m in the six months to September 30.

Last month Burberry forecast a first-half profit around that level of the prior year's £173m.

Total revenue rose 17% to £1.03bn, driven by a 20% increase in retail revenue to £695m as global demand for its luxury clothing and accessories continued.

Burberry is meanwhile preparing for the exit of long-serving chief executive Angela Ahrendts, who steps down next year to take up a new job with Apple.

"We are proud to announce a first half performance that saw Burberry's revenue exceed £1bn for the first time, reflecting the continuing strength of our global brand momentum," Ms Ahrendts said.

"We remain focused on executing our retail, digital and marketing strategies in the all-important third quarter and in what remains an uncertain macro environment.

"The senior team continues to balance brand appropriate revenue growth, selective investment and infrastructure efficiencies to drive sustainable profit growth across the portfolio, especially with the significant long-term potential of our fifth product division, beauty."

Ms Ahrendts will leave Burberry in mid-2014 to take up her new position at tech giant Apple, where she will have oversight of the strategic direction, expansion and operation of both retail and online stores.

She will hand over the reins to Burberry's chief creative officer Christopher Bailey, who will retain his existing title alongside becoming the company's CEO.

Some Burberry investors have reacted cautiously to Mr Bailey's promotion arguing his two roles would not sit easily together.

However, though shares in the firm have fallen 9% over the last month, they are still up 19% so far this year.

In early trading on Thursday the Burberry share price was up 1.09%.

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Airbus Firm EADS Sees Profit Up 45% In Q3

Airbus parent company EADS has seen its profit increase by 45% in the third quarter, driven by strong commercial aircraft demand.

EADS said net profit for the July-September quarter rose to €436m (£366m), up from €301m (£252m) a year earlier.

The profit boost comes as EADS revised upward its estimate of Airbus orders for the year.

Net profit for the first nine months of 2013 rose by 36% to €1.2bn (£1bn).

The company now expects gross commercial aircraft orders for 2013 to reach more than 1,200 aircraft.

"We achieved a good improvement in revenues and profitability over the first nine months thanks largely to our civil aircraft business,"  EADS chief executive Tom Enders said.

But he warned that "significant challenges" lie ahead with respect to cash generation and the A350 XWB wide-body jet.

The A350 is being developed as a competitor to American rival Boeing and its troubled 787 Dreamliner.

Chief financial officer Harold Wilhelm said "there's still a long way to go" on the A350, with some higher costs, but that the programme remains on track for entry into service late next year.

The European jet maker said that its free cash flow, a measure of cash generated by a business, would be negative this year.

EADS estimated the negative figure for 2013 at €1.5bn (£1.25bn) because of investment into lifting production and development of programmes such as the A350 long-range wide body.

Previously, the company had said its free cash flow would break even this year, compared to positive €1.5bn last year.

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Energy Bills: Households Face 17 Years Of Hikes

Households are facing another 17 years of inflation-busting increases in energy and water bills, a spending watchdog has warned.

The National Audit Office (NAO) said consumers are being forced to pay more to stump up the cost of renewing Britain's ageing infrastructure.

It said the Government had little idea of the impact the continued price hikes would have on households or whether they would they would even be affordable.

Its findings will intensify the political debate raging over energy bills, with the Government under pressure to act after Labour promised a 20-month price freeze if they came to office.

The Treasury estimates that at least two-thirds of the £310bn of planned infrastructure investment over the next decade and beyond will come from private companies paid for, ultimately, by consumers through their utility bills.

The NAO said that such high levels of planned investment meant that the increases in charges for energy and water were now expected to continue to outstrip inflation until 2030.

It expressed particular concern about the plight of the low income households where energy and water bills accounted for 15% of spending in 2011 - almost double the overall average of 8% - while their incomes had fallen by 11% in real terms since 2002.

The head of the NAO, Amyas Morse, said that ministers needed to know at what point the continuing price rises would become too much for consumers to bear.

"Government and regulators do not know the overall impact of planned infrastructure on future consumer utility bills, or whether households, especially those on low incomes, will be able to afford to pay them," he said.

"It seems critical to know 'how much is too much', based on reliable information."

Margaret Hodge, the chairman of the Commons Public Accounts Committee, said ministers needed to work with the industry to ensure bills did not become "unmanageable" for consumers.

"I have serious concerns that government is taking decisions on infrastructure, banking on hard-pressed consumers to foot the bill, without knowing whether households will be able to afford to pay."

A Government spokesman said: "Decades of underinvestment have left the UK struggling with insufficient energy infrastructure, but we are committed to fixing the failures of previous governments, and to making the difficult decisions that will allow us to have the infrastructure we need."

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Energy Firm SSE Confirms £336.4m Profits

Energy firm SSE has confirmed a return to half year profits and a bigger payout to shareholders, just two days before its household bills are due to rise by an average 8.2%.

The company made a pre-tax profit of £336.4m in the six months to 30 September following a loss of £41m in the same period last year.

But SSE said its retail arm, which supplies energy to homes, lost money in its first half while its other two divisions - covering areas including wholesale energy production and energy distribution - were both in profit.

It reported an operating loss of £89.4m for the retail division - blaming higher wholesale gas charges and the growing cost of Government 'green' levies.

Five of the 'big six' have confirmed bill increases for the coming winter

The company said in October it was raising household gas and electricity bills by three times the rate of inflation to help counter an expected loss in the retail business.

SSE also confirmed in its latest results a 3.2% increase in its interim dividend payment to investors.

It pledged to hand out above inflation increases in its full year dividend, claiming this was vital to ensure the group is able to raise enough money to fund spending on its network.

Will Morris, group managing director of SSE's retail business, said: "Some politicians and media commentators have claimed recently that we value our shareholders more than our customers.

"Or to put it another way, we're focussed on paying them a dividend on their shares, regardless of what that means for our customers.

"Nothing could be further from the truth."

He added: "Without the investment made by shareholders, we couldn't afford to build the infrastructure or buy the equipment needed to deliver what customers need."

SSE - which trades as Southern Electric, Swalec and Scottish Hydro - revealed its customer numbers had dropped by 60,000 to 9.41 million since the end of March.

It was the first of the big six to raise its tariffs ahead of winter - with only E.ON yet to announce any increase but an announcement is expected later this month.

EDF Energy said yesterday it was increasing prices by 3.9% in January - far lower than many of its rivals - as the group said it would not pass on costs of Government green levies in anticipation of changes to how these schemes are paid for.

SSE has pledged to cut its 8.2% average increase back should ministers confirm the money will be stripped out of bills and paid for by general taxation.

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Sainsbury's First Half Profits Hit £433m

Sainsbury's has announced a 9.1% increase in first half pre-tax profit to £433m as it battles Asda to be Britain's second-biggest supermarket chain behind Tesco.

Total sales including VAT and fuel rose 4.4% over the 28 weeks to September 28 - by 4% when the effects of fuel sales were stripped out.

On a like-for-like basis, which measures continuing operations, sales rose 1.4%.

The company said its strategy focused on own brand products alongside online and convenience store growth was resonating with customers.

Online grocery sales rose by 15% in the half, while convenience store sales increased over 20%.

Sainsbury's said it had now enjoyed 35 consecutive quarters of underlying sales growth, continuing to outshine Tesco, which last month posted a 1.5% fall in first half UK trading profit.

Its share of the grocery market rose to its highest level in a decade at 16.8%.

The chain, which operates more than 1,100 supermarkets and convenience stores, has been the only one of the big four supermarkets to grow its market share amid pressure from discounters Aldi and Lidl.

Chief executive Justin King warned that customer budgets remain tight and that the economic recovery may take time to translate into stronger household confidence.

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PM Targets Overseas Funds With New Trade Body

By Mark Kleinman, City Editor

Ministers are preparing to back the launch of an inward investment body that will target key British trading partners with the aim of raising billions of pounds from overseas to fund urban regeneration projects.

Sky News has learned that the Government is to unveil plans for the Regeneration Investment Organisation (RIO), a new 'one-stop shop' for foreign direct investors in the UK, within days.

RIO would, according to people familiar with its brief, be set up to attract inward investment into urban regeneration projects in the UK at a time when foreign investors have demonstrated a continuing appetite to pour money into infrastructure assets such as airports and utilities.

The new body has been developed under the auspices of UK Trade and Investment (UKTI), the Government's principal trade promotion organisation.

Its remit has been borne out of a frustration expressed by many major overseas investors about the bureaucracy and complexity of finalising major deals in the UK, according to one insider.

RIO has already begun appointing a senior management team, including Nahid Majid, an experienced urban planner who has worked for the Mayor's Fund for London, who will be RIO's chief operating officer.

According to details posted on LinkedIn, the professional networking website, Ms Majid's role is to work with sovereign wealth funds, pension funds, developers and international governments and UK embassies.

RIO's objective, it says, is to to develop "a pipeline of credible UK large-scale regeneration investment opportunities to market to overseas investors on ministerial and key overseas visits".

"This includes prioritising and promoting high quality opportunities; assessing the commercial viability (and) due diligence of projects and their suitability for promotion to overseas investors; analysing them against investor appetite and Ministerial priorities."

It will also involve "communicating and negotiating in resolving barriers to UK project delivery with UK government/ developers, and resolving investment barriers with international investors in the developed markets, Asia, Asia Pacific and the Middle East working with our network of UK global embassies," according to the website.

Employment adverts also accessible on the internet indicate that the RIO will aim to deliver £1.5bn of inward investment to the UK, although insiders said its ultimate ambition would be to achieve much higher figures.

The launch of the RIO could be announced as soon as this week, with David Cameron, the Prime Minister, due to make a key foreign policy speech at the Lord Mayor's Banquet on Monday.

Downing Street sources declined to comment on whether the new inward investment organisation would feature in his remarks at the event.

Mr Cameron is expected to visit China next month on a trade mission that will mark a continuing thaw in relations between the two countries following his meeting with the Dalai Lama last year.

George Osborne, the Chancellor, and Boris Johnson, the Mayor of London, were in China last month on separate efforts to drum up trade, although both trips were relatively light on specific deal announcements.

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Public Pay '£56m Rip-Off' On Government Calls

More than 100 million calls by the public to Government departments were charged at premium rates - costing an estimated £56m, an influential committee of MPs has said.

A Public Accounts Committee report said of 208 million calls in 2012/13, some 63% were made to higher rate numbers with the Department for Work and Pensions (DWP) receiving 100 million of the calls and HM Revenue and Customs (HMRC) taking 68 million calls.

Committee chairwoman Margaret Hodge said: "Customers of Government services should be able to contact those services easily and cheaply. Charging customers higher rates by making them use 0845 or other high rate numbers is not acceptable, especially when the customers are often vulnerable people.

"We found that one third of customer telephone lines across central Government used higher rate numbers. Half of those lines serve the poorest people.

"Customers spent an estimated £56m on calls using higher rate numbers, from the lines run by the Department for Work and Pensions, to helplines for victim support and the Bereavement Service and the inquiries and complaints line of the Student Loans Company."

Chairwoman Margaret Hodge has said the practice is 'not acceptable'

In its report, the committee also said calls to Government departments take too long to answer. It found most departments have no targets at all, despite a normal industry benchmark demanding calls be answered within 20 seconds.

It said HM Revenue and Customs only answered 16% of calls made to its tax credit helpline on July 31, the deadline day for notifying change of circumstances.

And across the first quarter of 2013/14, average call waits at HM Revenue and Customs were seven minutes, the report said.

Mrs Hodge said: "Performance by departments varies but is often astonishingly bad. HMRC managed to answer only 16% of the calls it received on its tax credits helpline on the deadline day for notifying the department of changes of circumstances.

"Citizens should not as a matter of principle have to put up with standards of service from government which are significantly worse than industry standards."

Richard Lloyd, executive director of consumer group Which?, said it was "ridiculous" that people face a bumper bill to call a public body.

HMRC has taken 68 million calls on higher rate numbers in the past year

"The Cabinet Office must now act fast to ensure the Government and public bodies lead by example and put an end to costly calls," he added.

The DWP has already said it will phase out the use of 0845 numbers.

A Government spokesman said: "We agree that it is inappropriate for vulnerable people to pay high charges for accessing vital public services and we are clear that a more consistent approach is needed.

"The Cabinet Office now runs a cross-departmental group to consider customer telephone lines. This group has made good progress in drafting guidance on prefix number selection and establishing best practice.

"We will publish this guidance and have a standing remit to ensure it is kept up to date."

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Help To Buy Extension Boosts October Prices

There has been strong demand for homes under the Government's Help to Buy mortgage scheme extension, according to two major high street banks.

The Halifax and Royal Bank of Scotland said they received a total of £365m in mortgage applications from 2,384 would-be owners, with an average value of more than £153,000 per loan.

Help to Buy is designed to prompt loan providers into offering mortgages with deposits from 5%, but critics warn it risks causing another property bubble in Britain.

Meanwhile, the number of surveyors reporting house prices lifting across the country has surged to an 11-year high in October as the Government's new Help to Buy scheme fuels "soaring" demand from buyers.

The Royal Institution of Chartered Surveyors (Rics) said urgent action must be taken to tackle the problem of demand outstripping the supply of homes for sale, which is "nowhere near" the levels needed to cope.

Sales volumes are running at their highest levels in more than five and a half years as more people flood into the market to snap up properties, its latest UK survey found.

Rics said that 57% of surveyors reported price rises during the month, the highest percentage since June 2002, reflecting the imbalance between supply and demand.

Over the three months to October, surveyors sold just over 20 homes typically, the highest average since February 2008. They expect house prices and sales volumes to edge higher in the next three months.

Meanwhile, demand for rented property is increasing at its slowest pace in over a decade as more people make the jump on or up the property ladder, Rics reported.

A balance of 11% of those surveyed reported rises in interest from potential tenants in October, the lowest proportion in more than 10 years.

But Rics said that while the new phase of Help to Buy is "widening the net" of people who can get mortgage access, surveyors across the UK are reporting a "problematic" lack of new instructions from sellers.

Rics said that recovery is "spreading beyond the traditional economic powerhouses of London and the South East".

Meanwhile, the high value rental stock market in London faces oversupply, because of developers' rush to target rich foreign investors.

Last year more than £7bn of foreign money was ploughed into the high-end sector, while only 20% came from UK sources.

Estate agents Savills said that London now faces a shortfall of 50,000 new homes a year - equivalent to building five Olympic competitor villages each year.

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Mobile Spending 'Could Be Worth £23bn' By 2018

By Poppy Trowbridge, Business and Economics Correspondent

This year has been dubbed 'The Mobile Christmas' and with 48% growth in mobile shopping, retailers are increasingly targeting shoppers through digital devices.

British retailers will spend nearly £400m on advertising during the last three months of 2013 and consumer spending via mobiles and tablets is worth about nearly £8bn a year, according to research firm Verdict.

But over the next five years, the spread of smartphones and tablets will see our spending on these devices triple to £23bn.

Spending via mobiles and tablets is expected to triple over five years

Two thirds of that shopping is done at home, as buyers often wait until they are logged in to a secure network before purchasing items.

Matthew Rubin, retail analyst with Verdict Research, said: "While we are expecting growth in successive years, we are expecting this year to be the highest level of growth. Retailers really need to invest in their mobile websites now."

John Lewis announced its £7m Christmas television advertising campaign on Friday. The ad is set to a cover of Keane's 2004 hit Somewhere Only We Know sung by Lily Allen.

Supermarket chain Morrisons launched its Christmas TV advertising campaign during the prime-time slot of ITV's Coronation Street.

Some 20% of home shopping business at Asda is done via mobile or tablet

Asda says 20% of its home shopping business is done via a mobile or tablet, and that figure is growing by 1% each month.

The living room is becoming a key location for retailers to target consumers, as 67.2% of all online shoppers making a purchase from their home do so in their living room.

Wealthy young shoppers currently dominate mobile and tablet expenditure, but with increased access to cheaper, high-specification devices, older shoppers will have a much bigger impact over the next five years, Verdict research shows.

Still, window shopping hasn't entirely given way to digital methods yet.

Around 38% of online shoppers still research goods by viewing them in a store before purchasing them online.

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BT Sport Secures Champions League Rights

BT Sport has signed a £1bn deal to broadcast Champions League and Europa League matches for three years from 2015.

BT has agreed to pay around £299 million a season for the rights to all 350 matches in the two Uefa competitions each season.

The Champions League is currently broadcast by Sky Sports and ITV.

In a statement, Sky said: "We bid with a clear view of what the rights are worth to us. It seems BT chose to pay far in excess of our valuation.

"There are many ways in which we can invest in our service for customers. We take a disciplined approach and there is always a level at which we will choose to focus on something else. If we thought it was worth more, we'd have paid more. 

"Nothing changes until 2015 and we look forward to 18 more months of live Champions League on Sky Sports.

"We will now redeploy resources and continue to bring customers the best choice of TV across our offering."

Telecommunications company BT launched two sports channels on August 1 this year.

Gavin Patterson, BT chief executive, said: "I am thrilled that BT Sport will be the only place where fans can enjoy all the live action from the Uefa Champions League and Uefa Europa League.

"Both tournaments are world class and firm favourites with many."

16.02 | 0 komentar | Read More

Miliband Slams Payday Lenders' Kids Ads

Payday loans companies should be banned from advertising during children's TV shows, Labour leader Ed Miliband has said.

Mr Miliband used a piece in the Sun on Sunday newspaper to claim youngsters are targeted by firms keen to exploit "pester power".

Calling for them to be treated the same as gambling and junk food promotions, he said that, if the Advertising Standards Authority failed to act, a Labour government would legislate.

Accusing the companies of using "cartoon characters, trendy puppets or cute plasticine figures" to attract children, he writes: "We all know kids learn about values of family and friendship from what they watch.

Payday loan firms such as Wonga are accused of preying on children

"We also know how easily they can be influenced. That's why I really worry when payday lenders target our kids and young people.

"And that's what the evidence suggests they are doing. How else do we explain hundreds of thousands of pounds being spent by pay day lenders for adverts during children's TV programmes.

"And why else are they using cartoon characters, trendy puppets or cute plasticine figures in some of their ads?

"They aren't simply doing it to appeal directly to parents. They want to use pester power to get kids and teenagers to put pressure on their parents."

He cited a recent survey that showed more than one in three people with youngsters under 10 said their children had repeated payday loan ad slogans to them.

Father-of-two Mr Miliband is concerned about the influence of ads on kids

"The next Labour government will ask the Advertising Standards Authority to prevent irresponsible advertising by pay day lenders that targets or exploits children and young people," he said.

"This is not just about content but also the time of day when such adverts are shown. There is no justification for ever selling pay day loans during children's TV."

Martin Lewis, the founder of MoneySavingExpert.com, backed Mr Miliband's views - having previously told a Commons committee the companies' behaviour amounted to "grooming".

Bosses from the industry - which is under investigation by the Competition Commission - defended their practices when they appeared before MPs.

Henry Raine, head of regulatory and public affairs at Wonga, told the committee: "Wonga's business is aiming to lend to people who can pay us back, that's how we make money.

"The vast majority of people pay us back on time. We freeze interest after 60 days and 25% of people pay us back early."

Mr Raine said around 3% of loans, equating to around 40,000 of Wonga's 1.25 million customers, go to the 60-day period.

He said Wonga's record compared favourably with the rest of the loan industry, including credit card companies and banks.

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