Fortnum Boss Warns of Scots Vote 'Disaster'

By Mark Kleinman, City Editor, in Dubai

The chief executive of Fortnum & Mason, the upmarket London-based grocer has warned that a 'yes' vote in the Scottish independence referendum would be a "disaster" for the country.

Speaking exclusively to Sky News, Ewan Venters, a Scot by birth, said that a break-up of the United Kingdom would create a damaging period of uncertainty for businesses.

"I think it would be a disaster. The UK is better as one. We are a small enough island as it is, we don't need to become smaller," he said.

"The consequences of an independent Scotland and an independent England could be very unfavourable economically. That uncertainty is not what the country needs."

Mr Venters, who has run the Queen's grocer since 2012, is one of the most senior English-based Scottish businessmen to articulate his views about the implications of the referendum vote which takes place in September.

A former executive at companies including J Sainsbury and Selfridges, which is owned by the same family as Fortnum & Mason, Mr Venters also criticised the fact that he would not be allowed to take part in the vote.

"It is very disappointing that Scots like myself are not allowed a vote, when someone could be from any nation, move to Scot and be allowed a vote.

Fortnum & Mason is a favourite of the Royal Family

"It is an ill-conceived set-up of the referendum by those in the establishment who know that many of those who have moved away from Scotland to build careers elsewhere are in favour of the union remaining intact."

He is the latest in a growing number of executives and companies to speak out on independence.

In recent weeks, Alliance Trust, Standard Life and Royal Bank of Scotland have highlighted contingency planning being undertaken to prepare for a 'yes' vote.

In its annual report published this week, the defence contractor BAE Systems also said a vote in favour of independence could be disruptive.

Mr Venters, 41, was speaking in Dubai during a trip to mark the opening of Fortnum & Mason's first overseas store, opposite the Burj Khalifa, the world's tallest skyscraper.

Fortnum & Mason, which operated solely from its shop on London's Piccadilly for more than 300 years, was founded in 1707, the year that the Act of Union binding England and Scotland came into being.

Mr Venters wants the Dubai store, which has been developed in conjunction with AKI, a local partner, to be the first step in a carefully and gradually orchestrated expansion of the business.

"It is a very important milestone because customers from this region are hugely important at our Piccadilly store," he said.

"Fortnum has a long history of taking products to customers around the world," he said, which included exporting Christmas hampers to 112 countries towards the end of last year.

Dubai was chosen as Fortnum's first international outpost because of the Emirates' status as the most important luxury retail centre in the world, behind London, he added.

"Tea is the most popular drink after water here. As tea merchants for more than three centuries, we felt it was important to be here," he said.

Mr Venters cautioned against expectations that the Dubai opening would lead to a chain of Fortnum & Mason stores opening around the world, although he has now overseen the launch of two outlets in little more than six months.

Last autumn, the company opened a shop next to the Eurostar terminal at London's St Pancras station, with sales understood to be performing strongly.

"We will carefully consider other opportunities in what I call surging economies rather than emerging markets.

"This is a good moment to look at taking firmer positions in the world on a gradual basis."

"Over half of our business is made up of consumers living in the UK. That trend has increased in recent times as we have tried to make it more relevant to domestic consumers," Mr Venters said.

He described Britain's economy as "two-tier", with London the dominant force, adding that this week's Budget statement by George Osborne was "business-friendly and broadly friendly to working people of Britain by ensuring there's more money in people's pockets".

Mr Venters also waded into the debate about the future of Britain's troubled high streets, calling for a significant increase in residential development in order to stimulate wider usage.

"The opportunity for the high street has never been so good. The drive to buy more online means people are shopping on a more frequent basis.

"With some proactive housing policies on high streets and sensible movement on business rates, there is no reason why you couldn't start to see a revival."

16.01 | 0 komentar | Read More

China 'Targets Foreign Firms To Boost Research'

Chinese investors are targeting hi-tech foreign firms to gain vital knowledge on research and development (R&D) techniques.

That is the reason behind a sharp rise in foreign investments, according to an article in the English language People's Daily - seen as an official source of Chinese government thinking.

In the report author Hao Jie said there was a "logic" behind a huge boost in key markets abroad.

"The rapid increase in China's investments in the US has its internal logic.

Outsourcing US hi-tech tasks has also helped China build IT know-how

"As the world's biggest mature market, with the most advanced technologies and the strongest R&D capability, the US will continue to attract Chinese investment.

"Areas with the greatest investment potential include infrastructure, energy, and middle and high end manufacturing."

She said that the investments helped Chinese companies improve their own R&D ability and "get closer to American consumers through developing local logistics and distribution channels".

Foreign direct investments (FDI) in the US have increased quickly in recent years.

Before 2011 private investments in the US were less than a third of the total, rising to 54% in 2012 and 76% last year.

A Chinese food firm agreed to buy the US' biggest pork processor for $1.2bn

Total investment in America doubled last year to a record $14bn (£8.5bn), according to the Rhodium Group.

Europe, as America's key mature competitor, has also been a hot spot for Chinese firms for investment and trade.

According to Eurostat, China's stock across the EU grew almost threefold in 2011, to €15bn (£12.5bn).

FDI has been seen as a way around certain restrictions placed on Chinese firms getting a direct foothold in Western countries.

Chinese direct investment was also ploughed into the US energy sector

China's telecoms giant Huawei has been thwarted in its attempts to establish foreign arms.

In 2012, Australia banned it from involvement in its $36bn (£22bn) national broadband network on security grounds.

Its founder was said to be linked to China's military and Australia's security agency Asio opposed its bidding.

Later that year, the US House Intelligence Committee said Huawei "cannot be trusted" to be free of Beijing's influence and recommended limitations on its involvement in public networks.

Chinese companies on US soil have been called a security threat

In July, a former CIA boss said Huawei spied on behalf of China, a claim the company denied.

Huawei already has a major foothold in Britain, but last December it was announced intelligence agency GCHQ would be given a greater role at the company's Cyber Security Evaluation Centre.

Since then intelligence agencies from the US, Australia and Britain have themselves come under increasing public scrutiny over their alleged spying activities on global telecommunications, in the wake of revelations by ex-NSA worker Edward Snowden.

16.01 | 0 komentar | Read More

Business Round-Up And Week Ahead

Sky's Naomi Kerbel offers a round-up of what's coming up in the week's business news.

:: Monday March 24

On Monday, the Chancellor's budget "perk" to reduce beer duty by a penny comes into effect. 

:: Tuesday March 25

Energy provider, SSE will cut its dual fuel prices by 3.5% on Tuesday. The company's prices rose by 8.2% on average on November 15, 2013.

:: Wednesday March 26

On Wednesday, teachers who are members of the National Union of Teachers are due to strike against changes to their pay and pensions. 

:: Thursday March 27

It is a big day for Sky News Business on Thursday. At 7pm, Jeff Randall will host his final Jeff Randall Live business programme.

:: Friday March 28

On Friday, the ONS will deliver final growth figures for the fourth quarter in the UK. The last estimate showed growth of 0.7%.

Tweet your business stories to @SkyNKTweets

16.01 | 0 komentar | Read More

Hitachi In UK Move To Shunt HS2 Rail Rivals

Japanese engineering giant Hitachi is to move its rail division's decision-making hub to Britain, in an attempt to shunt its European rivals.

The shift is also seen as an attempt to lay a track for plans to bid for the High Speed Two (HS2) contracts.

Alistair Dormer, who has headed its London-based European rail section, will be responsible for refocusing the division away from a Japanese viewpoint to a greater global perspective.

"Europe is one of the largest rail markets in the world and has a lot of potential for new growth," an Hitachi spokesperson told Sky News.

"Passenger numbers are rising and it gives us a stronger focus in capability and business opportunities."

The announcement comes a day after Chancellor George Osborne told Parliament in his Budget speech that Britain has "under-invested for decades" in infrastructure.

The HS2 future project has been opposed by environmental groups

Mr Osborne said: "We've been reminded again this week of the benefits high-speed rail will bring to the north of our country and I'm determined it goes further north faster."

The company is building a new plant in Newton Aycliffe, County Durham, after winning a £1.2bn contract for 270 next generation intercity carriages.

That order, won last year, is part of the larger £5.8bn Intercity Express Programme.

Its 395 class high-speed trains have been in operation since December 2009 on lines from London to Kent, where it also has maintenance facilities in Ashford.

Its factory will initially employ 750 people and it hopes to increase the company's rail section workforce by 60%, taking the global total to 4,000.

Existing Intercity rolling stock is being replaced by Hitachi's new trains

Business Secretary Vince Cable called it a "huge vote of confidence for Britain".

"It's further testament to the Government's industrial strategy which is giving companies of Hitachi's stature the confidence to invest in the UK in an expanding rail sector," he said.

Hitachi is an engineering and electronics conglomerate with more than 320,000 staff, and its total profit for the last quarter of 2013 reached £725m.

It has a long rail history, making its first steam locomotive in 1920 and an electric version four years later - it also created the famous hi-tech Japanese 'bullet train' in 1964.

Rail has become an increasingly important issue in Britain amid expansion plans and contracts going to foreign firms.

Canadian-owned Bombardier, which has facilities in Derby and Germany, has won a £1bn Crossrail contract for 65 trains on the London line.

Germany's Siemens has also won a £1.6bn deal to build 1,140 state-of-the-art carriages for use on the Thameslink rail line.

Rival Bombardier has won a large contract for London's Crossrail

France's Alstom Transport is also a major player in Europe's high-speed rail infrastructure.

Britain's rail use has grown significantly in recent decades.

Although it remained roughly static between 1950 and 2000 at 20 billion passenger miles annually, it has nearly doubled since then.

16.01 | 0 komentar | Read More

Ukraine Crisis: EU Sanctions For More Russians

Faces Caught In The Middle Of US-Russia Spat

Updated: 8:45pm UK, Thursday 20 March 2014

The fresh wave of US sanctions against Russia include banning some of the country's richest and most influential businessmen - and President Vladimir Putin's closest friends - from entering America.

Among the individuals targeted with and travel bans and freezing of US assets are billionaire brothers Arkady and Boris Rotenberg.

The co-owners of SMP Bank and SGM Group, a major supplier of construction services to Russian gas giant Gazprom, were judo sparring partners with Mr Putin.

The pair - friends of Mr Putin since childhood - also made billions in Sochi Olympics-related contracts.

Financier Yuri Kovalchuk, the largest shareholder of Bank Rossiya, is a personal banker for senior Russian officials - including, reportedly, Mr Putin. He is another close friend - and a neighbour - of the president.

They have known each other since the early 1990s when Mr Kovalchuk was deputy mayor of St Petersburg.

The bank - also on the hit list - serves some of the country's wealthiest officials and controls two big insurance firms - Sogas and SK Transneft.

High-level Kremlin officials including Mr Putin's chief of staff Sergei Ivanov and deputy chief of staff Alexei Gromov are also targeted, as well as Vladimir Yakunin, chairman of the board of the Russian state-owned company Russian Railways and a close confidant of the president.

Gennady Timchenko, a prominent businessman and owner of the private investment group, Volga Group, which specialises in investments in energy, transport and infrastructure assets is also named by the US.

President Putin's spokesman said some of the names on the list caused "nothing but extreme bewilderment" - and Russia immediately responded with its own list of sanctions on American officials.

These included Obama aides Caroline Atkinson (deputy assistant and deputy national security adviser for international economics), Daniel Pfeiffer (senior adviser and assistant ), and Benjamin Rhodes (assistant and deputy national security adviser for strategic communications and speechwriting), as well as senators Mary Landrieu, John McCain and Daniel Coats.

Mr McCain, the former Republican presidential candidate, and Mr Putin have long been engaged in a bitter personal feud.

During their last war of words in September 2013, the US senator accused Mr Putin of corruption, repression and self-serving rule in an opinion piece for a Russian website in response to a letter Mr Putin wrote in The New York Times, urging America not to use military force in Syria.

In an opinion piece headlined "Russians Deserve Better Than Putin", Mr McCain also accused the president of being "a friend to tyrants and an enemy to the oppressed" for siding with Syria's President Bashar al Assad.

Back in December 2011, Mr Putin let his views be known on Mr McCain after the US politician tweeted "Dear Vlad, The #ArabSpring is coming to a neighbourhood near you" at a time of huge protests across Moscow.

When pressed about the tweet during a televised phone-in, the Russian president hit back, calling the senator "nuts".

"Mr McCain fought in Vietnam. I think he has enough blood of peaceful citizens on his hands. It must be impossible for him to live without these disgusting scenes anymore," he said.

Mr Putin added: "Mr McCain was captured and they kept him not just in prison, but in a pit for several years. Anyone [in his place] would go nuts."

Earlier this month, Speaker of the House John Boehner, also on the Russian list, called Mr Putin a "thug" over its actions in Crimea, according to The Enquirer.

The Republican told the Cincinnati newspaper it was "time to stand up to Putin", adding: "At what point do you say enough is enough? We are at that point."

He, and Senators Landrieu, McCain and Coats hailed their inclusion on the Russian list as a "badge of honour", while the White House refused to comment.

16.01 | 0 komentar | Read More

Petrol Prices Drop To A Three-Year Low

UK petrol prices are at their lowest level for three years, according to a new survey of the nation's forecourts.

The AA said in mid-March the average pump price was 129.46p per litre.

That was down 6.47% on the same time last year, when the average for petrol was 138.42p.

The motorists' group added that recent wholesale cuts might see a further drop for petrol of 2p a litre.

It added that diesel prices are at their lowest level for nearly two years.

It said diesel-users on average were paying 136.59p in mid-March - the lowest since July 2012.

On Wednesday, the Chancellor announced in his Budget that the September fuel duty rise would not be brought in.

The AA said that the cheapest fuel prices were in Yorkshire and the Humber, with the most expensive in Northern Ireland.

The West Midlands and London were best for diesel at 136.3p while Scotland was the most expensive, where motorists on average were charged, it said, 1p more a litre.

Although headline prices have dropped, real wages have not kept pace.

The Office for National Statistics said inflation over the last four years had in effect turned a 2% annual wage increase into a 8% fall in real terms.

Last year, the Office for Fair Trading (OFT) said price variations can occur in regional areas where competition was higher.

It said: "Petrol and diesel tend to be cheaper in local areas that have a greater number of local retailers, in particular areas where there are supermarket forecourts."

The OFT has previously found that fuel is often significantly more expensive at motorway service stations.

"In August 2012, for example, prices were on average 7.5p per litre higher for petrol and 8.3p per litre higher for diesel than at other UK forecourts," it said in last year's report.

16.01 | 0 komentar | Read More

Budget 2014: The Key Points You Need To Know

The Chancellor George Osborne has delivered his fifth budget. Here are the key points.

Savings

:: Tax-free ISAs to be boosted to £15,000 per year from July. Junior ISAs up to £4,000 a year.

:: Stocks and shares ISAs can be tranferred to new single ISA scheme.

:: Premium Bonds cap lifted from £30,000 to £40,000 in June, and to £50,000 next year.

:: 10p rate of tax for savers to be abolished.

:: Zero tax band to cover £5,000 of savings.

Reliefs

:: Alcohol escalator to be scrapped for all alcohol duties, instead a rise with inflation.

:: Scottish whisky duty to be frozen as it is "a huge British success story".

:: Cut of 1p in duty per pint of beer.

:: Export finance lending interest rate to be cut by a third and lending doubled to £3bn.

:: From 2015, all long haul air passenger flights carry same, lower, band B tax rate.

:: Right to Build scheme for builders of their own homes including £150m of finance to support it.

:: New £200m fund for councils "to bid for" to fix potholes across Britain.

:: Additional £140m help for flood damage.

:: September's fuel duty rise will not be brought in.

Taxes

:: Duty on fixed-odds betting terminals to rise to 25%.

:: Horse race betting levy to be extended to bookmakers based offshore.

:: Bingo duty will be halved to 10% "to protect jobs and protect communities".

:: Tobacco duty to remain at 2% above inflation and escalator will not be stopped.

:: Increased disclosed tax avoidance schemes scrutiny for the wealthy.

:: City fines over Libor rate-rigging to continue going to military charities and emergency service charities.

:: From midnight anyone buying home over £500,000 through corporate entity to pay 15% stamp duty to "avoid abuse".

:: "We will expand the tax on residential properties worth over £2m to those worth more than £500,000."

:: Private jets, previously not taxed, will see tax levied on flights.

Income Tax

:: Personal tax allowance rises to £10,500 next year, giving average saving of £800.

:: 40p tax rate threshold to rise from £41,450 to £41,865 from next month and then up by further 1% to £42,285 next year.

:: Transferable tax allowance for married couples rising to £1,050.

Pensions

:: All retirees on defined contribution pensions to be offered free, impartial, face-to-face advice.

:: No need for pensioners to buy annuities if they do not wish to.

:: Removal of all remaining tax restrictions on how pensioners have access to their pension pots.

:: Income requirement for flexible draw-down from £20,000 to £12,000, raised cap draw-down limit from 120% to 150%.

:: Lump sum small pot level lifted five-fold to £10,000.

:: Almost doubling total pension savings as a lump sum to £30,000.

:: £20m  to be spent in next two years working with consumer groups over pension advice.

:: New Pensioner Bond paying market leading rates, issued by National Savings and Investments, open to everyone aged 65 or over. Available from January next year.

 

Spending and Welfare

:: Foreign aid to be 0.7% of national income.

:: Public sector spending reduction to reach £1bn by 2015-16.

:: A permanent cap on welfare, excluding state pension, set at £119bn in 2015-16, rising in line with forecast inflation to £127bn in 2018-19.

Growth

:: Independent OBR growth forecast revised upwards to 2.7%, up from 2.4% in Autumn Statement.

:: Growth next year is also revised up to 2.3%, then 2.6% in 2016 and 2017, with growth expected to return to long-term trend of 2.5% in 2018.

:: 1.5 million new jobs forecast in next five years.

Borrowing

:: Deficit this year of 6.6% reduced to 5.5%  next year, then expected to be 4.2%, 2.4% and finally 0.8% in 2017-18. Following year forecast surplus of 0.2%.

:: Expect to borrow £108bn this year, £12bn less than forecast last year. No borrowing from 2018-19.

:: OBR forecasts public debt to be 74.5% of GDP this year; 77.3% next year; peaking at 78.7% in 2015-16 - lower than the 80% previously forecast - before falling to 78.3% in 2016-17, then falling to 76.5% and then 74.2% in 2018-19.

:: The new £1 coin to thwart forgery and "In honour of our Queen".

Jobs

:: Support for more than 100,000 new apprenticeships.

:: New Alan Turing Institute for computing "big data" to boost Britain's IT prowess.

Business

:: New allowance for ultra high pressure, high temperature oil field for North Sea oil and gas.

:: Tax relief of up to 25% for touring theatrical productions.

:: VAT relief on fuel for air ambulances and inshore rescue boat services across Britain, and a new air ambulance for London.

:: Accept recommendation to move collection of Class 2 NICs into self-assessment, abolishing for 5 million people "this wholly unnecessary bureaucracy".

:: Corporation tax - high street stores will get £1,000 off their rates, and businesses the £2,000 Employment Allowance.

:: From next year, corporation tax to drop from 21% to 20% and under-21s taken out of the jobs tax.

:: Business rates discounts and enhanced capital allowances will be extended for another three years.

16.01 | 0 komentar | Read More

Dubai-Based Oil Firm Banks On London Float

By Mark Kleinman, City Editor, in Dubai

A company spun out of one of the groups found guilty of contributing to the 2010 Gulf of Mexico oil spill has lined up bankers to pursue a listing on the London Stock Exchange.

Sky News understands that Shelf Drilling, whose assets were previously owned by the oil services giant Transocean, has picked Morgan Stanley and at least one of Goldman Sachs, HSBC and Royal Bank of Canada to oversee the listing.

Shelf was formed in 2012 with the purchase of more than three dozen rigs from Transocean for roughly $1bn.

The company is run by David Mullen, the former boss of Wellstream Holdings, which was also listed in London, and is owned by three private equity firms - Castle Harlan, Champ and Lime Rock.

Shelf's decision to pursue the listing in the UK underlines the prominence of London as a venue for raising capital in the oilfield services sector.

In January, the company issued a statement confirming that it was examining an initial public offering of shares but did not name its banking advisers or the likely listing destination.

Employing approximately 3,500 people, Shelf operates shallow-water rigs in south-east Asia, India, West Africa, Egypt, Saudi Arabia and Italy.

It counts Chevron, ExxonMobil, Petrofac and Saudi Aramco among its major customers, and is already understood to have seen a significant financial return since carving out its assets from Transocean two years ago.

Transocean pleaded guilty last year to a range of offences relating to the Gulf of Mexico oil spill, for which it agreed a $400m (£240m) settlement with the US Department of Justice.

BP, which has been forced to pay tens of billions of pounds for restitution and the clean-up following the spill, this week announced that it had won permission to bid again for exploration contracts in the Gulf of Mexico.

Shelf could not be reached for comment.

16.01 | 0 komentar | Read More

Next Looks Good As Annual Profit Rises 11%

High street fashion retailer Next has seen its annual underlying pre-tax profit rise by 11.8%, to almost £700m.

The clothing retailer, which is Britain's second biggest in the sector, said growth in its online and catalogue business was behind the strong figures.

The firm has more than 500 stores in the UK and Ireland, along with around 200 outlets in some 30 other countries.

Next said total pre-tax profit to the end of January was £695.2m.

The figure was in keeping with analysts' expectations and compared to £621.6m in the previous financial year.

Its strongest growth was in the combined catalogue and online 'Directory' division, which grew revenue by 12.4% to £1.341bn.

The Directory business generated 50% of operating profit, meaning the division had an operating margin of 26.7%.

This compares very favourably to the core retail segment that generated 48% of operating profit at a margin of only 15.6%.

Total revenue and sales were up 5.4% to £3.74bn and the company increased its dividend by 23% to 129p.

It forecast sales growth this financial year of between 4% to 8%, with a pre-tax profit estimate of around £750m.

"In the year ahead we expect the fourth quarter to provide tough comparatives and it will be hard to beat," the company said.

"Accordingly, we are budgeting very cautiously for the final quarter."

Shares in Next have risen around 61% over the last 12 months.

The firm added: "However, conditions are likely to remain far from buoyant and there are real risks to the sustainability of the current recovery."

Sky News City Editor Mark Kleinman recently revealed that high street fashion rival Marks and Spencer had appointed two brothers responsible for streamlining Next's sourcing supply chain.

16.01 | 0 komentar | Read More

Treasury Sources Tight-Lipped On Budget

Budget 2014: New £1 Coin Is Blast From The Past

Updated: 8:51am UK, Wednesday 19 March 2014

By Jon Craig, Chief Political Correspondent

George Osborne will use his Budget to announce a major change for the nation's pockets, with a new pound coin to be introduced in 2017.

The new coin, aimed at stamping out forgeries and counterfeits, will replace the £1 coin that was introduced more than 30 years ago and resemble the pre-decimalisation 12-sided "threepenny bit".

According to the Treasury, the new coin will be the most secure in the world.

The new coin will be revealed in a Budget the Chancellor hopes will provide the springboard for a Tory victory at next year's General Election.

Mr Osborne will raise the rate at which people start paying income tax to £10,500, which he claims will benefit all but those on incomes of over £100,000.

But he will reject calls from senior Tories to raise the threshold at which people start paying tax at 40p in the pound, already due to increase to £42,286 next year.

Labour has already started its response putting up posters this morning claiming: "hard-working people are £1,600 worse off with the Tories."

Speaking on Wednesday morning, Ed Miliband said: "I hope we don't see complacency from the Chancellor today because I think so many families across the country are incredibly hard pressed. They are seeing their wages falling, they faced 24 Tory tax rises since 2010.

"What I hope we see from the Chancellor is an understanding of the difficulties families are facing an a response to make life easier and better for them."

The Chancellor will have to respond to Labour's charges that the Tories are out of touch, ordinary families are facing a cost of living crisis and only the rich are benefiting from the economic recovery.

Mr Osborne posted on Twitter on Wednesday morning: "Today I will deliver a Budget for a resilient economy - starting with a resilient pound coin."

Mr Osborne will go on the attack against Labour, claiming the opposition was to blame for the economic crisis when in government and has been proved wrong in opposing the Coalition's austerity measures.

"This will be a Budget for a resilient economy," a Treasury source told Sky News.

"The Government's long-term economic plan is providing economic security by dealing with our record deficit and helping businesses create new jobs at record rates.

"As a country, we have held our nerve, the plan is working, but the job is very far from done. Britain is still borrowing too much.

"We have to invest more and export more, and support growth in every region of our country and all parts of our economy."

The new £1 coin is backed by organisations including the Automatic Vending Association, which said the cost for adapting existing machines would be "minimal".

Kelvin Reynolds, of the British Parking Association, added: "Parking operators have long expressed concerns about a rise in counterfeit £1 coins and the inconvenience this causes to motorists when coins are rejected by parking payment machines and the losses incurred as a result."

The current £1 coin has been in circulation for much longer than the normal lifecycle of a modern British coin.

Its technology is no longer suitable for a coin of its value, leaving it vulnerable to ever more sophisticated counterfeiters.

The Royal Mint estimates about 3% of all £1 coins - around 45 million in total - are now forgeries, although in some parts of the UK, the number is as high as 6%.

Around two million counterfeit £1 coins are removed from circulation annually - a direct cost to the banks and cash handling centres, as well as the economy.

As with all British coins, the new-look £1 piece will feature the Queen's head on one side.

A public competition will be held to decide the design for the reverse, or "tails", side.

Introduced in 1937, the threepenny bit was in the first group of coins ever to feature the portrait of HRH Queen Elizabeth II.

It was the first British coin to use a 12-sided shape, which enhanced its popularity during the Second World War as its distinctive size and shape made it the easiest coin to recognise during the blackout.

16.01 | 0 komentar | Read More

Osborne Close To Landmark China Banking Deal

By Mark Kleinman, City Editor

George Osborne is closing in on a landmark deal that would see the City become one of the world's most important offshore centres for trading the Chinese currency.

Sky News understands that the Government hopes to announce by the end of the month the establishment of a London-based clearing bank that would act as a hub for offshore renminbi (RMB) payments.

The move would be significant because of the rapid growth in the volume of international RMB transactions as China's financial system and economy have become less insular.

The Chancellor has made it clear that increasing the City's share of trading in the China's currency represents a vital growth opportunity.

A London-based institution would effectively "oil the wheels" of the clearing process, reducing transaction and settlement costs, a source said.

A number of the country's vast state-owned lenders, including Bank of China and Industrial and Commercial Bank of China, have been vying to be appointed as Beijing's clearing bank in London, according to insiders.

A decision about the chosen institution could be made public within days.

The Treasury is understood to have been hoping to get a deal wrapped up in time for Wednesday's Budget statement, although that was now unlikely, a City source said.

In a speech in Hong Kong last month, Mr Osborne said the UK and China had an economic "two-way relationship of equals".

"Gone are the days when the British finance minister was only interested in securing greater market access to China.

"Now almost two thirds of all RMB payments outside of China and Hong Kong take place in London," he said.

The Chancellor said he was unashamed about having secured agreements establishing a swap line with China's central bank and allowing Chinese banks to apply to set up UK-based wholesale branches.

"Now London firms are able to invest directly in Chinese stocks and shares in RMB - something that's just not currently possible anywhere else in the West - thanks to our agreement with the Chinese Government last year.

"Ultimately what we all want to see is RMB being used more and more as a currency of choice in the world.

"The UK and Chinese Governments are in active discussions about the appointment of a renminbi clearing bank in London."

City sources cautioned that the Prudential Regulation Authority (PRA), the banking oversight arm of the Bank of England, would also need to approve any deal.

The PRA is leading the consultation on rule changes that would mean Chinese banks operating in the UK as branches rather than subsidiaries, effectively entailing lighter-touch regulation by the UK authorities.

16.01 | 0 komentar | Read More

Budget 2014: New £1 Coin Is Blast From The Past

By Jon Craig, Chief Political Correspondent

George Osborne will use his Budget to announce a major change for the nation's pockets, with a new pound coin to be introduced in 2017.

The new coin, aimed at stamping out forgeries and counterfeits, will replace the £1 coin that was introduced more than 30 years ago and resemble the pre-decimalisation 12-sided "threepenny bit".

According to the Treasury, the new coin will be the most secure in the world.

The new coin will be revealed in a Budget the Chancellor hopes will provide the springboard for a Tory victory at next year's General Election.

The new £1 coin will have 12 sides and is due to enter circulation in 2017

Mr Osborne will raise the rate at which people start paying income tax to £10,500, which he claims will benefit all but those on incomes of over £100,000.

But he will reject calls from senior Tories to raise the threshold at which people start paying tax at 40p in the pound, already due to increase to £42,286 next year.

Labour has already started its response putting up posters this morning claiming: "hard-working people are £1,600 worse off with the Tories."

Speaking on Wednesday morning, Ed Miliband said: "I hope we don't see complacency from the Chancellor today because I think so many families across the country are incredibly hard pressed. They are seeing their wages falling, they faced 24 Tory tax rises since 2010.

"What I hope we see from the Chancellor is an understanding of the difficulties families are facing an a response to make life easier and better for them."

Labour's poster response

The Chancellor will have to respond to Labour's charges that the Tories are out of touch, ordinary families are facing a cost of living crisis and only the rich are benefiting from the economic recovery.

Mr Osborne posted on Twitter on Wednesday morning: "Today I will deliver a Budget for a resilient economy - starting with a resilient pound coin."

Mr Osborne will go on the attack against Labour, claiming the opposition was to blame for the economic crisis when in government and has been proved wrong in opposing the Coalition's austerity measures.

"This will be a Budget for a resilient economy," a Treasury source told Sky News.

"The Government's long-term economic plan is providing economic security by dealing with our record deficit and helping businesses create new jobs at record rates.

"As a country, we have held our nerve, the plan is working, but the job is very far from done. Britain is still borrowing too much.

"We have to invest more and export more, and support growth in every region of our country and all parts of our economy."

The new £1 coin is backed by organisations including the Automatic Vending Association, which said the cost for adapting existing machines would be "minimal".

Kelvin Reynolds, of the British Parking Association, added: "Parking operators have long expressed concerns about a rise in counterfeit £1 coins and the inconvenience this causes to motorists when coins are rejected by parking payment machines and the losses incurred as a result."

The current £1 coin has been in circulation for much longer than the normal lifecycle of a modern British coin.

Its technology is no longer suitable for a coin of its value, leaving it vulnerable to ever more sophisticated counterfeiters.

The Queen's head will continue to feature on one side of the coin

The Royal Mint estimates about 3% of all £1 coins - around 45 million in total - are now forgeries, although in some parts of the UK, the number is as high as 6%.

Around two million counterfeit £1 coins are removed from circulation annually - a direct cost to the banks and cash handling centres, as well as the economy.

As with all British coins, the new-look £1 piece will feature the Queen's head on one side.

A public competition will be held to decide the design for the reverse, or "tails", side.

Introduced in 1937, the threepenny bit was in the first group of coins ever to feature the portrait of HRH Queen Elizabeth II.

It was the first British coin to use a 12-sided shape, which enhanced its popularity during the Second World War as its distinctive size and shape made it the easiest coin to recognise during the blackout.

16.01 | 0 komentar | Read More

Media Boss Desmond Eyes £700m Channel 5 Float

By Mark Kleinman, City Editor

The media tycoon Richard Desmond is considering a stock market flotation of Channel 5 even as bidders firm up offers of up to £700m for the terrestrial broadcaster.

Sky News has learnt that Mr Desmond is working with investment bankers from Goldman Sachs on the possible listing.

The exploration of a flotation raises the prospect of Mr Desmond, one of Britain's most colourful media owners, heading a public company for the first time in his long career.

City sources said Goldman had taken the idea of a listing of Channel 5 to Mr Desmond in recent weeks and that he had agreed to allow the Wall Street bank undertake work on it.

Goldman is understood to have begun sounding out institutional investors and received a broadly favourable response, although their ultimate appetite to buy shares in the TV business would depend on the valuation attached to Channel 5.

The analysis of a listing is at an earlier stage than a concurrent sale process being run by  Barclays' investment banks, which has drawn interest from more than 20 potential buyers.

Among those initially competing in the sale process were BSkyB, the owner of Sky News, and US media groups including Discovery Networks, Scripps, the owner of UKTV, and Viacom.

It is unclear whether any of the bidders are prepared to meet Mr Desmond's reputed £700m asking price, or whether a flotation of Channel 5 is being used as a 'stalking horse' option to maintain tension in the bidding process.

Banking sources said that seven parties remained in the auction last week, with that number expected to be narrowed further in the next few weeks.

Among the media and communications groups which are not currently in the process are BT and ITV, with the latter having publicly ruled out any interest in a takeover.

Mr Desmond has turned around the financial performance of Channel 5 since he paid just over £100m for the broadcaster of Big Brother and its celebrity offshoot in 2011.

The tycoon, who also owns the Daily Star and Daily Express and their Sunday sister newspapers, has cut costs and improved the performance of Channel 5's advertising sales operation.

He has also been assessing the sale of the Health Lottery, which he owns, believing that any buyer would have a ready-made platform for submitting a competitive bid for the National Lottery licence when it enters its next tendering process.

A spokeswoman for Mr Desmond's Northern & Shell holding company declined to comment while none of those understood to be interested in bidding for Channel 5 would comment.

16.02 | 0 komentar | Read More

MPs Attack Sale Of Royal Mail Postcode Database

The Government has been slammed for selling a valuable database of every British postcode and address in last year's flotation of the Royal Mail.

Ministers were strongly criticised for including the register, which contains 1.8 million postcodes and all 28 million addresses, to help boost the share price in the initial public offering (IPO).

The cross-party Commons Public Administration Committee said the Postcode Address File (PAF) was a "national asset" which should have been retained and made publicly available to benefit businesses and the economy.

It said the PAF's sale achieved only "short-term gain" in last autumn's IPO and was an "unacceptable and unnecessary consequence of privatisation".

The committee said losing the database to the private sector has the potential to thwart economic innovation and growth.

Unions were highly critical of the Royal Mail privatisation

Committee chairman Bernard Jenkin said: "The sale of the PAF with the Royal Mail was a mistake. Public access to public sector data must never be sold or given away again."

The PAF holds all known Royal Mail delivery points in the UK.

The committee said an immense amount of work went into collecting the database and said it was of "huge direct value" to the economy.

The Royal Mail flotation was widely criticised for having an undervalued opening price.

The Government sold shares last October for 330p each, valuing the company's equity at £3.3bn.

Shares rose to more than 500p within a week of the sale, drawing more criticism of the float price.

Sky News City Editor Mark Kleinman later revealed investment bank JP Morgan had previously told the Government that the Royal Mail could be worth near to £10bn - 200% up on the float price.

Business Secretary Vince Cable opposed a planned pay rise the firm's boss

The PAC added: "The Postcode Address File was included in the sale to boost the Royal Mail share price at flotation.

"This takes an immediate but narrow view of the value of such data sets."

"The PAF should have been retained as a public data set, as a national asset, available free to all, for the benefit of the public and for the widest benefit of the UK economy.

"Its disposal for a short-term gain will impede economic innovation and growth. This was an unacceptable and unnecessary consequence of privatisation."

16.02 | 0 komentar | Read More

Vodafone Shares Up In £6bn Spanish Ono Deal

Mobile phone giant Vodafone has seen its share price rise, after agreeing to buy Spanish cable operator Ono for £6bn.

Vodafone's shares were up almost 2% in early Monday trades in London.

The deal comes after it sold off its US joint-venture stake to Verizon for $108bn (£69bn).

"The combination of Vodafone and Ono creates a leading integrated communications provider in Spain and represents an attractive value creation opportunity for Vodafone," chief executive Vittorio Colao said.

"Demand for unified communications products and services has increased significantly over the last few years in Spain, and this transaction ... will accelerate our ability to offer best-in-class propositions in the Spanish market."

The deal is due to be completed in the third quarter of this year, subject to regulatory approval.

Ono has nearly 2 million customers but has struggled to compete in Spain with rivals such as Telefonica and Jazztel, which bundle in-home services.

British-based Vodafone already has about 14 million customers in Spain, but has faced fierce competition.

It has previously admitted southern Europe has been a problem region for growth in the wake of the eurozone crisis.

Sky News City Editor Mark Kleinman earlier revealed Vodafone initially approached Ono over the sale last February but was rebuffed at first.

Ono is owned by a large group of investors, including the private equity firms Providence Equity Partners, Thomas H Lee Partners, CCMP Capital Advisors, and Quadrangle Capital.

16.02 | 0 komentar | Read More

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.

16.01 | 0 komentar | Read More

RBS Delays AGM Over Dividend Share Talks

By Mark Kleinman, City Editor

Royal Bank of Scotland (RBS) is to delay its annual shareholder meeting by several weeks as it seeks to cancel a special Government-owned share that prevents it paying dividends.

Sky News has learnt that RBS has decided to hold its 2014 AGM in late June amid advanced talks between the Treasury and the European Commission about the fate of the so-called Dividend Access Share (DAS).

Last year's AGM took place in May, while the event was traditionally held as early as April.  The decision by directors of RBS to delay the 2014 meeting was taken in the last few days.

The DAS was put in place as part of the £45.5bn taxpayer bail-out of RBS in 2008, and removing it would be a crucial step on the bank's long journey back to normality.

Doing so, however, will not be cheap for the state-backed lender.

The DAS, which confers enhanced dividend rights on RBS ahead of ordinary shareholders, was valued in the Treasury's books on March 31 last year at just under £1.5bn.

People close to the talks between the Treasury and Brussels said there was a realistic chance that an agreement could be reached by the end of June about the terms under which the DAS could be bought out without breaching state aid rules.

The cancellation of the DAS requires a vote that would only involve RBS's minority shareholders because of its status as what is known as a related-party transaction, meaning that the Government cannot vote on it.

The value of the DAS fluctuates based on a range of market data, including the RBS share price, the expected volatility of the stock over various time periods and the riskiness of the B-shares in RBS owned by the Government.

RBS's shares closed on Friday at 299.5p, suggesting that the cost of cancelling the DAS could be recorded at a lower level at the end of the month than it was last year.

That is because the cost reduces as RBS's share price rises, with a provision for cancelling the DAS altogether if the market price of RBS's ordinary shares exceeds 650p for at least 20 out of 30 consecutive trading days.

"The theoretical valuation does not necessarily reflect the price RBS would be prepared to pay to remove the DAS," the Treasury said in its annual report last year.

The DAS effectively acts as a block on dividend payments to ordinary investors because at least £1.8bn must be paid to the Treasury before any payout to other shareholders can take place.

Ross McEwan, the new RBS chief executive, is keen to resolve the issue of the DAS and said last month that "discussions with the UK Government...are well-advanced. A successful restructuring of the DAS will represent a significant step towards the normalisation of RBS's capital structure".

Insiders cautioned that the delay to the AGM did not offer a guarantee that the outstanding issues could be resolved in time and it remained uncertain whether the DAS-related resolution would be put to a vote on the same day.

The intention to do so is designed to avoid the cost of staging a separate investor meeting on another date.

Even if there is a vote on the DAS in June, the payment of the cancellation fee might not take place until ordinary dividends start being paid again.

With RBS not forecast to be profitable until 2016 and regulatory approval required for a resumption in dividend payments, that could mean the Treasury faces a three-year wait for the money.

News of the AGM delay comes weeks after Mr McEwan unveiled an annual loss of £8.2bn for 2013, and announced plans for an overhaul of RBS to focus it more clearly on improving service to personal and small business customers.

Delaying its AGM will also provide RBS with more time to resolve an issue that has provoked significant debate in Westminster: whether it should seek shareholder approval to pay out higher bonuses under new European rules.

Ed Miliband, the Labour leader, has demanded that the Government should block any attempt by RBS executives to secure approval for payments of up to twice the level of employees' salaries in bonus awards.

Mr McEwan has said that RBS needs the ability to pay competitively, implying that the bank will seek approval for the higher threshold, since every one of its rivals has said that they intend to do the same.

RBS declined to comment.

16.01 | 0 komentar | Read More

Childcare Tax Break: Details To Be Unveiled

Details of a planned £1,200 childcare tax break for families is expected to be unveiled in next week's Budget, according to Sky sources.

Help with the expense of childcare is one of the things people have been pressing for said Sky's Political Correspondent Anushka Asthana, and is part of the Government's drive to help families as well as business.

Figures recently revealed the cost to families for part-time childcare is more than the monthly mortgage repayment.

It follows a consultation on tax breaks for families, and will replace the current childcare voucher system which means everybody who is working, including the self-employed, will be able to qualify for it.

The current voucher system depends on whether an employer agreed to it, and at the moment only 5% do.

It came as Chancellor George Osborne warned  of more "difficult decisions" to come in Wednesday's Budget.

Writing in The Sun on Sunday, he confirmed he will use his Commons statement to outline details of the Government's promised cap on welfare payments.

Details of the cap on welfare payments will also be unveiled in the Budget

And he underlined the need to "not waver" from plans to tackle the budget deficit and deal with Britain's debts.

He wrote: "That plan has delivered economic stability and low mortgage rates for families and it has laid the foundations for economic recovery."

But the deficit remained too high, which was why workers in the public sector faced another year of pay restraint and welfare spending would be capped from 2015.

"None of these decisions are easy, but the alternatives are worse," he wrote.

In a sideswipe at his opponents, Mr Osborne said: "Ed Balls and Ed Miliband haven't learned any lessons from the last time they crashed the British economy.

"The question is simple: Why would you give the keys back to the people who crashed the car?"

But Mr Balls, Labour's shadow chancellor, accused Mr Osborne of being "out of touch", and argued ordinary people had yet to see any improvement in their standard of living.

16.01 | 0 komentar | Read More