Morrisons Suffers Staff Payroll Data Theft

Data from supermarket chain Morrisons' staff payroll system, including bank account details, has been stolen and published on the internet, the company has confirmed.

In an email sent to staff and seen by Sky News, the company called it an "illegal theft" of data.

The information has since been taken off the website that published the details.

A data disk was also sent to a regional newspaper with the stolen data.

The theft included names, addresses and bank account details of an unspecified number of staff. It employs around 100,000 people.

The email warned that "this affects colleagues from all levels of the organisation".

Morrisons, which became aware of the theft on Thursday, said: "Initial investigations suggest that this theft was not the result of an external penetration of our systems.

"We can confirm there has been no loss of customer data and no colleague will be left financially disadvantaged."

The email warning was sent to senior staff who were asked to inform workers

So-called insider threats have become a serious concern for companies in recent years, due to the volume of data stored and its accessibility.

Sky News has confirmed that the data watchdog, the Information Commissioner's Office (ICO), has been alerted to the theft and may launch a probe.

An ICO spokesman said: 'We have been made aware of reports that Morrisons have suffered a potential data breach, and we will be making enquiries."

Morrisons, which is Britain's fourth biggest supermarket group, said it had called in police and cyber crime experts.

The criminal inquiry into the data theft from Bradford-based Morrisons is being led by West Yorkshire Police.

Detective Chief Inspector Nick Wallen said: "We are aware of the situation and are supporting Morrisons and their investigation into these matters."

It has also started communications with banks handling staff accounts and a credit rating agency, and has set up a helpline for employees.

The group has come under pressure recently over its performance in the ultra-competitive sector.

On Thursday, it launched a counter-attack in the supermarket price war after losing more than just ground to its rivals in its last financial year.

The chain, which has struggled amid strong challenges from discounters and because of its slow response to the online grocery and convenience markets, confirmed a pre-tax loss of £176m for 2013/14 after a profit of £879m in the previous 12 months.

Like-for-like sales fell 2.8% in the period, and its share price suffered a 10% drop on Thursday.

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Co-op Warned Of Collapse Without Overhaul

The Co-operative Group has been warned it will collapse unless drastic steps are taken to overhaul a "massive failure" of governance.

Former City minister Lord Myners made the warning in a damning interim review of the group's operations.

Lord Myners rounded on the Co-op's board because of oversight failings and inadequate experience for such a large organisation.

He was "deeply troubled by the disdain and lack of respect for the executive team" held by some board members.

Euan Sutherland has left the Co-op

Lord Myners added that some members, elevated from within the Co-op, had "simply not been up to their task".

He said: "The Co-operative Group suffers from acute systemic weaknesses in its governance framework that over many years have gravely damaged the organisation."

"Unless the group takes urgent steps to reform its governance so that it generates sustainable economic value, it will run out of capital to support its business."

Lord Myners was commissioned by the Co-op to conduct the governance review.

He decided to publish his findings earlier than expected after the shock resignation of chief executive Euan Sutherland.

Mr Sutherland quit on March 10 and said the Co-op was "ungovernable" with some board members thwarting reform attempts.

Lord Myners, who is also a new board member at the Co-op, said it was only due to Mr Sutherland and his executive team that the group remained viable.

His report revealed a board that was lethargic to change and potentially hostile to operational management.

He said: "There is a phrase frequently used in Co-operative Group circles that the executive should be 'on tap but not on top'"

Following Mr Sutherland's resignation on Monday the Co-op board agreed to the main recommendation by Lord Myners' review that it should be abolished in favour of a new "plc" style board, responsible for taking commercial decisions.

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Investors Line Up To Back £4bn AA Listing

By Mark Kleinman, City Editor

A powerful group of City investors is lining up to back a £4bn-plus deal that would entail a change of ownership for the AA, Britain's biggest roadside recovery group.

Sky News can reveal that Cenkos Securities, a London-based investment bank, has tabled a proposal to the AA's parent company for it to list on the London Stock Exchange.

The offer, which has been made in recent days, would resurrect a technique known as an accelerated initial public offering (IPO), which gained traction more than a decade ago but which has only been used infrequently in recent years.

Sources close to the situation said that Cenkos had approached major institutional investors including Aviva, BlackRock, F&C Investments, JP Morgan Asset Management and Threadneedle about a transaction that would involve them acquiring stakes in the AA through a new stock market-listed company.

It is not clear which of the firms has formally committed funds to the bid yet.

The AA is part of Acromas Holdings, a private equity-backed group which also owns Saga, the financial services and travel specialist for the over-50s which is pursuing its own £3bn flotation.

The Cenkos-led proposal for the AA was not solicited by Acromas and it is unclear whether it is likely to be formally considered by the company's current owner given its focus on Saga's listing.

Acromas has been expected to retain ownership of the AA for some time, given the scale of its borrowings relative to its earnings.

The AA has net debt of about £3.2bn, putting its borrowings on a multiple of 7.6 times the level of its earnings before interest, tax, depreciation and amortisation.

In the third quarter of last year, the AA reported sales of £244m, with earnings up 8.2% to £104m.

The AA, which has styled itself as "the fourth emergency service", has 4m personal members and 9m business customers, giving it a 40% share of the roadside insurance market.

Some City observers believe that a separate listing of the breakdown recovery group may be difficult because of its debts and a financial mechanism known as a whole business securitisation that was undertaken last year.

The accelerated IPO was first used in the City more than a decade ago by Collins Stewart, the investment bank which a group of Cenkos executives left to set up.

The technique involves a more rapid listing process during which the sponsoring investment bank agrees to buy the shares before selling them on to other investors.

Like Saga, the AA has turned to new leadership, appointing Chris Jansen, a former British Gas executive, as its new boss.

The AA has taken advantage of strong financing markets by launching a £350m bond, the proceeds of which are being used to repay a chunk of Acromas's vast debt-pile.

Acromas is owned by Charterhouse, CVC Capital and Permira, three of the UK's biggest private equity groups, which acquired the AA from Centrica, the owner of British Gas.

The AA's principal rival, the RAC, is also expected to be the subject of a change of ownership in the next couple of years, with Carlyle, its private equity owner, likely to seek a stock market listing for the company.

Sky News disclosed on Thursday that Acromas is close to hiring Goldman Sachs and at least three other banks to work on a flotation that will put Saga on course for inclusion in the FTSE-100 index.

As many as half of the shares on offer, equating to hundreds of millions of pounds, could be sold to ordinary retail investors, meaning Saga is likely to vie with Royal Mail's privatisation for the status of the City's biggest retail offering for years.

A sale of part of the Government's remaining stake in Lloyds Banking Group, expected this year, will include a retail offering that will dwarf those of Saga and Royal Mail.

Cenkos and Acromas declined to comment.

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Winter Floods Lead To £446m Insurance Payout

The devastating winter floods are likely to result in more than £446m being paid out to people whose property and businesses were damaged.

Insurers say some £276m will be paid out to around 9,000 homeowners whose properties were flooded, £149m will go towards covering 3,100 claims from businesses and £22m will go to owners of flooded vehicles.

The Association of British Insurers (ABI) figures amount to the equivalent of £6.7m being paid out every day between December 23 and the end of February.

The wet weather meant temporary accommodation was needed for more than 2,100 flooded households, at a projected cost of £24m to insurers.

Areas in Gloucestershire were flooded for miles around

The ABI said flood victims have so far received emergency payments of £27m.

Loss adjusters have made more than 6,500 visits to assess damage and organise emergency payments or repair work.

ABI director general Otto Thoresen said: "The flood waters may have mostly receded, but for many the distress of being flooded remains raw.

"Insurers and loss adjusters are playing a crucial role in the recovery process.

Michael Dennett's boatyard near the River Thames was badly-flooded

"A badly flooded property can take months to become habitable again, so insurers continue working around the clock to ensure that the drying out process is completed as quickly and as safely as possible."

Mr Thoresen continued: "While of course this was a serious and significant bad weather event the current flood damage costs remain well below the severe floods of 2007 when insurers paid out £3bn to customers."

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Panasonic Pays China Pollution Wage Premium

The extent of China's pollution crisis has prompted Panasonic to pledge extra wages for its staff there.

The Japanese electronics giant's move - thought to be a world-first for a major international firm - was announced as part of a wider deal with the government, which saw major firms, including Panasonic and Toyota, agree to boost workers' salaries in Japan for the first time in years.

That agreement was made amid concern that a looming rise in sales tax in Japan will further damage consumer spending.

A Panasonic spokesman confirmed the pollution-linked pay premium for its workers in China but declined to give further details or say how many such workers it has in China.

It is understood to employ 70,000 people in the country, although only expatriate staff will benefit from the premium.

So-called hardship pay is not unusual for employees of foreign firms sent to work to China, but Panasonic is believed to be the first to announce a premium to compensate for hazardous air.

A Panasonic document said: "As for the premium for expatriates to compensate for a different living environment, the company will have a special review for those sent to Chinese cities."

It referenced so-called PM 2.5 - small particles which easily penetrate the lungs and have been linked to hundreds of thousands of premature deaths.

Last weekend, a top Chinese environment official said air quality was below national standards in almost all China's major cities last year.

Chinese cities are regularly cloaked in a smoggy haze, with many residents donning masks to avoid taking in the toxic air.

The authorities have repeatedly pledged action, announcing plans to shut down 50,000 small coal-fired furnaces this year, clean up major coal-burning power plants and remove six million high-emission vehicles from the roads.

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Morrisons Plots Price Cuts After Annual Loss

Morrisons has launched a counter-attack in the supermarket price war after losing far more than ground to rivals in its last financial year.

The chain - which has struggled amid strong challenges from discounters and because of its slow response to the online grocery and convenience markets - confirmed a pre-tax loss of £176m for 2013/14 after profits of £879m in the previous 12 months.

Like-for-like sales fell 2.8% in the period.

The £176m annual loss was largely explained by a £903m writedown relating to the value of its stores and its purchase of online children's wear retailer Kiddicare, which it now plans to sell following a poor financial performance.

Its share price fell 10% on opening on the FTSE 100 in response to the figures - with its plans to turn its fortunes around seemingly failing to impress.

Sainsbury's and Tesco also saw steep falls in their values because of the implications of the price war - Tesco having fired a new salvo the previous day with a fuel offer.

Morrisons said a £1bn pound programme of property disposals over three years would fund a major investment in its customer offer.

There would be £300m spent on its proposition during the current financial year.

Chief executive Dalton Philips said Morrisons was investing the money to improve value and "defend and strengthen our competitive
position."

The Yorkshire-based chain has been losing sales to hard discounters Aldi and Lidl faster than the rest of its so-called "big four" rivals.

Its annual results said of the discount market challenge: "It is currently worth £9.5bn (up 20%) over the prior year.

"This reflects a fundamental shift in the market and one that is likely to be structural rather than cyclical.

"It is a challenge that we will address in 2014/15."

Morrisons also said it would do more to engage in the convenience sector as shoppers adopt more of a "little and often" approach at the expense of big basket weekly shops.

Its online grocery offer - in partnership with Ocado - only began at the start of the year.

More follows...

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UK Economy 'To Reach 2008 Peak In Summer'

The size of the UK economy will surpass its pre-recession peak by the summer, according to an upgraded forecast from the British Chambers of Commerce.

The business lobby group believes the UK will grow by 2.8% this year and that the second quarter will see gross domestic product rise to the level seen in the first quarter of 2008.

A year ago, the BCC predicted the pre-recession peak would not be reached until 2016.

The group's director general, John Longworth, said Britain's economic recovery is gaining momentum.

"Businesses across the UK are expanding and creating jobs, and our increasingly sunny predictions for growth are a testament to their drive and ambition," he said.

The BCC expects the first increase in interest rates will happen in the autumn next year - one quarter earlier than previously envisaged, before rising to 1.5% in the second half of 2016. GDP will be 2.5% next year and in 2016.

The BCC boss says unemployment remains a 'major issue'

But Mr Longworth warned business investment is likely to remain below pre-crisis levels for some time to come.

"Major issues remain, such as the unacceptably high level of youth unemployment," he added.

"We urge the Chancellor to use this month's Budget wisely by incentivising businesses to hire young people so that the next generation of workers are not left behind.

"We just hope that as the general election gets closer, politicians are not tempted to abandon a drive for long-term economic security in favour of short-term vote winners.

"No government over the next decade can afford to get distracted - and our leaders must do everything in their power to ensure the economy goes from being merely good, to being truly great."

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Energy Bills To Show Codes To Help Consumers

By Rhiannon Mills, Sky Correspondent

Homeowners are being offered a new way to potentially save money on their energy bills - QR (or quick response) codes.

The Department for Energy and Climate change wants all energy companies to add the codes to their bills to give customers an easier way of finding out how much they have spent on gas and electricity.

Ed Davey says the move will make a 'real difference'

The codes are small box shapes with unique combinations of black and white dots, and are similar to barcodes, providing easy access to information through your smartphone.

In order to read them, customers will need to download a QR reader app on their phones.

This is the latest announcement from the Government to help consumers get a better deal, with collective switching and simpler tariffs already introduced.

Secretary of State for Energy and Climate Change Edward Davey said: "We're determined to make energy markets work better for consumers - and despite all the evidence showing that QR codes on bills would make a real difference to people, energy companies still haven't done anything about it.

"That's why we're acting to make sure people have a quick, straightforward way to compare the best deal for them with a simple swipe of their phone.

"With so many of us using smart phones and tablets nowadays it would be strange if we weren't using the latest technology to help us save money at home."

The big six energy companies have all raised prices in recent months

The Government says studies have shown that the technology would be helpful for customers, but there has been no voluntary move by the energy sector to introduce QR codes, therefore it is taking action under the Energy Act to modify the energy company licences to have QR codes included as part of energy bills.

Energy UK, which represents the industry, told Sky News: "Energy companies are working hard to streamline tariffs, improve customer information and encourage choice so people have all they need to compare and switch.

"And it's working - around quarter of a million customers switch every month and nearly a million did last November and December alone."

Despite concerns from some campaign groups, ministers insist the QR codes will also benefit vulnerable consumers or those who do not use smartphones, because people with smartphones will be able to help friends and family less comfortable with technology.

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Revealed: Oxford Is 'Most Expensive City'

Oxford is the UK's least affordable city, a study finds, because homes there cost eleven times the average local wage.

According to the report, by Lloyds Bank, the average cost of a property in the university city was almost £341,000.

Winchester, Truro, Bath and Brighton made up the top five list of 'least affordable' places to live, while Westminster in central London came in seventh place.

Although property prices in Westminster are among the highest in the UK, relatively high earnings in the heart of London stopped Westminster from coming higher on the list.

High wages combine with high property prices in Westminster

The study suggested that city living had become less affordable over the last year - largely a result of stagnant wage growth and  surging house prices.

It said that the price of a home in a large town or city grew by 5% over the last year to reach £184,215 on average - or 5.8 times someone's average earnings.

Stirling in Scotland and Londonderry in Northern Ireland were named as the UK's most affordable cities to live in, with house prices in those areas typically costing 3.3 times and 3.6 times local earnings respectively.

Derry was among the most affordable places to live

Glasgow, Belfast, Lisburn, Bradford, Lancaster and Salford all featured among the most affordable urban areas to live.

York was the only northern city to make the line-up of the UK's least affordable cities, at number 20.

A home in York costs nearly six times average wages, while one in nearby cities like Hull and Sheffield would set someone back just over four and-a-half times their earnings.

The report pointed to the large numbers of people living in Oxford who commute to London to work as part of the reason why house prices there are particularly out of step with local wages.

A year ago, a house in Oxford cost 9.8 times local earnings.

The UK housing market has picked up sharply in some areas over the last year amid Government schemes such as Help to Buy which have unleashed a wave of fresh demand into the property market from people who had previously struggled to get access to a mortgage.

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China Solar Panel Firm 'In Bond Default'

China has suffered what has been called its first corporate bond default, as the government tries to make its financial system more market-orientated.

A Shanghai-based manufacturer of solar panels paid only part of the 90 million yuan (£9m) in interest due on Friday for bonds issued in 2012.

Chaori Solar Energy Science and Technology had earlier warned it would struggle to make the payment.

According to two bondholders hit by the default, only 3% of the due amount was paid.

The solar industry has been heavily criticised in the past for levels of state subsidies.

Competitor nations including the United States, and Germany - Europe's largest solar user - have been vociferous critics of Chinese state support in the sector.

Manufacturers in the US and Germany have struggled as cheaper Chinese panels flooded their markets.

Beijing has previously bailed out troubled companies in an attempt to maintain confidence in its credit markets.

However the ruling Communist Party has promised to make the domestic market more productive and competitive.

Chinese citizens have complained that bailouts have not encouraged a need for risk aversion by big businesses.

Legal representatives for the bondholders hit by the default said they would pursue the money owed.

Lawyer Gan Guolong said: "The default today is already an established fact. We will definitely help recover bondholders' interests through relevant legal action."

A commentary published by the official Xinhua news agency hinted that government policy over defaults was hardening.

"The episode should help reduce the moral hazard caused by the widespread assumption that an almighty government will always bail out underwater investments with taxpayers' money," Xinhua said.

"That, after all, is the market playing its own decisive role."

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US Jobs Up As Part-Time Work Hits New Record

The number of new jobs in the United States accelerated in February, as the number of part-time workers in the month reached an all-time high.

The rise of 175,000 jobs helped ease fears of an economic slowdown.

The dollar rose sharply on the news and the Federal Reserve is now expected to continue tapering its quantitative easing stimulus package.

The US Labor Department said the 35% job jump comes on the back of 129,000 new positions in January.

The unemployment rate, however, rose 0.1% to 6.7%. The previous figure was at a five-year low.

"This bodes well for the economy since there were massive head winds," Adam Sarhan, chief executive at Sarhan Capital in New York, said.

"This report plays perfectly into the Fed's script of tapering."

US shares opened higher on the data. The British pound dropped at first against the dollar before recovering.

The dollar also hit a six-week high against the yen.

Analysts had expected harsher figures as snow and ice hampered economic activity across swathes of the US.

Economists had expected non-farm payroll numbers rising by only 149,000 jobs.

Revised figures for December and January were also released, showing 25,000 more jobs being created in that period than previously thought.

Last month's weather did impact average working hours, with February being the lowest level since January 2011.

Economists now expect a reversal once the weather improves.

A smaller survey of households, from which the unemployment rate is derived, showed that 6.9 million people with jobs reported they were working part-time.

That was the highest reading for February since the series started in 1978.

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TV Licence Dodgers May Not Be Prosecuted

Pressure Grows Over TV Licence Prosecutions

Updated: 1:18pm UK, Saturday 08 March 2014

By Anushka Asthana, Political Correspondent

What crime led to 180,000 people being hauled in front of magistrates in 2012, resulted in 70 prison sentences and accounted for one in nine of all cases heard by the courts?

OK, OK, I know you've read the news story and realise the answer is failure to pay a television licence fee.

Magistrates have long objected to being asked to deliver criminal records to these offenders, who tend to be poor, are often older and about two-thirds of whom are women.

They think it is an over-reaction and a waste of court time.

Instead, they want to divert cases to the civil system, along with parking offences or failure to pay your gas bill.

So could their argument be gathering steam in Parliament?

An amendment calling for the change by Conservative MP Andrew Bridgen is gathering support from across the political divide with a variety of motivations.

Some object to the "poll tax" nature of the fee - a £145.50 levy on the rich and poor is clearly regressive.

Others feel that criminal sanctions including prison are simply not the right response, particularly given the vulnerability of those it affects.

Then there is the idea of easing pressure on courts and prisons appeals across the political system.

And finally, there are those who simply detest the BBC.

The corporation itself would be uneasy about the change because of fears it would reduce the incentive to pay.

Even a 1% rise in evasion would cost £35m, which the Beeb tells us is equivalent to 10 local radio stations (or, to put a different spin on it, 11 Jeremy Clarksons).

What is notable about this story is that Chris Grayling, the Justice Secretary, has called Mr Bridgen's intervention "really interesting".

He says Maria Miller, the Culture Secretary, agrees and both departments will be doing some "serious work on the proposal".

In reality, any such change would be discussed as part of BBC Charter renewal.

The next round is due to be completed by the end of 2016, with talks starting around 18 months beforehand.

That means the middle of next year - probably not until after the General Election.

The magistrates, it seems, will have to wait.

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