Co-op Admits 'Disastrous Year' Amid £2.5bn Loss

The embattled Co-operative Group has confirmed a loss of £2.5bn for 2013, in what it described as a "disastrous year".

The loss comes on the back of a £529m figure recorded in its 2012 results.

Interim group chief executive Richard Pennycook said: "2013 was a disastrous year for the Co-operative Group, the worst in our 150-year history.

"Today's results demonstrate that but they also highlight fundamental failings in management and governance at the group over many years.

"These results should serve as a wake-up call to anyone who doubts just how serious the challenges we face are."

It said most of the losses were from "discontinued operations" of its banking arm, which totaled £2.1bn.

Group sales were £10.5bn, down from the £11bn recorded in the previous year.

Profit from its food division were down 8% at £247m but it also recorded a goodwill impairment charge of £226m for its purchase of Somerfield stores.

The Co-operative Group consists of a number of divisions

However, it recorded more encouraging figures for some other divisions.

General insurance profit jumped from £13m in 2012 to £33m last year.

The pharmacy chain, which is being offered for sale, saw profit rise by about a fifth to £33m.

And its funeral services business saw sales up 3% to £370m and profit up £2m to £62m.

Co-operative Group chair Ursula Lidbetter said: "During 2013, it became apparent that our governance had fallen far short of the standards to which we aspire as a co-operative society.

"Now is the time to put that right through fundamental reform - we have to act with urgency if we are to lay the foundations for a stronger, healthier co-operative business in the future."

The group's bank division revealed a £1.5bn capital black hole last year and then in March announced a plan to raise another £400m.

Amid risks of the bank's collapse, the group reduced its stake in the institution to 30% as private equity bondholders provided capital - raising concerns of how it would maintain its 'ethical' stance.

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House Price Increases Create 'Generation Rent'

By Siobhan Robbins, Sky News Reporter

The booming housing market is causing a generation of young people to become increasingly pessimistic about their chances of getting on the property ladder, according to a new study.

Halifax's 'Generation Rent' report found that despite the launch of schemes like Help to Buy to give a boost to people with small deposits, 36% of 20 to 45-year-olds felt they have no realistic prospect of owning their home in the next five years.

Around half of those polled in England, Scotland and Wales agreed Britain will become a nation of renters in the next generation and 20% of people aged 23 to 27 said they have no desire to own their own home.

A fifth of people surveyed said they had no desire to own their own home

Caroline Hill, 23, told Sky News she would rather rent than buy.

"I can see myself being able to buy in the future but I'm just really not interested in doing so," he said.

"My parents have always been renters and I think that has had a big effect on the way I feel about it."

Danny Palmer, 27, is frustrated the market is running away from him.

"I think it's going to be really difficult for me to get onto the property ladder purely because rent these days is taking up about 40% of my salary, and that's before bills, living costs and anything else," he said.

Estate agents say high prices mean potential buyers are moving into rentals

Halifax mortgages director Craig McKinlay, said: "We may be heading towards the point where the aspiration to own a nice home will be replaced by the aspiration to simply live in one.

"It seems that people are now beginning to accept a lifetime of renting and this would not only change the way the property ladder looks in the future, it could even bring into question whether or not it will exist at all for some people."

The report warned that any future collapse in the number of first-time buyers - the "life blood" of the housing market - will have a knock-on impact on people trying to move up the property ladder.

If some existing home owners are unable to trade up because of a lack of potential buyers for their property, the market will be brought to a standstill, the report warns.

Woking estate agent Yassar Latif, said: "People who were thinking of buying, but have been let down by the rise in prices, have moved towards rentals now."

The Government has said that Help to Buy and plans to build more houses should ease the problem. But despite this, only around 30% of the people polled believed Help to Buy was working.

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British Gas Bonus Claims To Be Investigated

Claims that British Gas workers have been paid large bonuses to inflate customer bills are to be investigated by the energy regulator, Ofgem.

It comes after a former employee claimed the energy company encouraged its sales staff to sign up charities, churches and small businesses to its highest-priced tariffs in order to boost their own earnings.

British Gas has strongly denied the allegations.

The whistleblower, who worked for the company between 2010 and 2013, told the Daily Mail the firm's policies were designed "to rip off" customers.

He claimed sales agent typically earned between £4 and £37 in commission per deal if they persuaded existing customers to renew contracts.

But by moving a customer to a more expensive deal they could earn more than £400 a time, he alleged.

"People were desperate to make the salaries they had been promised, so everyone inflated the prices," he told the paper.

"Scout clubs was a favourite one; churches, charities, small businesses, where people would just go for the maximum 5p notch-up," he added.

Ofgem will investigate whether the sales activities were 'honest and fair'

A British Gas spokeswoman said: "British Gas strongly refutes any suggestion that employees are paid commission on any prices charged to residential customers."

British Gas Business managing director Stephen Beynon said his sales agents are paid commission, but he denied any suggestion that contracts were negotiated inappropriately.

"This is a highly regulated market, and every part of the sales negotiation process is closely monitored," he said.

"Sales agents in British Gas Business do receive commission, but we are reducing its importance.

"We're leading the way in addressing the variability in price that customers face in this market, and we'll continue to do so."

Ofgem said in a statement: "There are strict rules in place which require suppliers to take all reasonable steps to ensure information provided is accurate and not misleading, and that sales activities are conducted in a fair, honest, transparent and professional manner.

"Ofgem is an evidenced-based regulator and we would encourage anyone with information that an energy company is not complying with Ofgem rules to provide us with this."

The allegations come days after Ofgem fined British Gas Business for a series of failures including blocking firms from switching to other suppliers.

Ofgem said British Gas Business would pay a total penalty of £5.6m of which £800,000 would be in fines, on top of £1.3m already paid to 1,200 customers who paid higher bills because they were not notified when their contracts were due to expire.

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PayPal Warns Users Over Sharing Computers

Online payment firm PayPal has announced plans to prevent users from sharing their computers, smartphones and tablets with anyone else, even family members.

On Tuesday, the company started sending registered users email alerts of upcoming amendments to terms and conditions.

The "Notice of changes to our Legal Agreements" showed policy changes effective June 17, in an email that ran to more than 8,000 words.

A number of the amendments covered improved buyer and seller protection for users, as the company is owned by auction site eBay.

However, the firm also warns against sharing devices under a heading of "Keeping your Payment Instrument Safe", in which changes to security procedures required by users are explained.

PayPal is tightening usage terms as more people use it for transactions

Two new sub-sections have been added amid a rise in PayPal usage by people using smartphones, tablets and other portable devices, heightening the risk of misuse by people other than the rightful owner.

The first clause relates to keeping personal account details up to date and the second to pin and password security.

The second clause adds that users must agree to "Take all reasonable steps to protect the security of the personal electronic device through which you access the Services (including, without limitation, using pin and/or password protected personally configured device functionality to access the Services and not sharing your device with other people)."

No exceptions are listed and owners are in breach of their user agreement if they do not adhere to the clause.

The notification advised: "You do not need to do anything to accept the changes as they will automatically come into effect on the above date.

"Should you decide you do not wish to accept them you can notify us before the above date to close your account immediately without incurring any additional charges."

A number of the new legal clauses relate to PayPal's interaction with eBay

A PayPal statement issued to Sky News said: "We are not banning people from sharing devices.

"The new wording in our User Agreement says that users should take reasonable care when sharing devices so their PayPal account is not compromised. For example, users are advised not to log in to PayPal and then leave their computer unattended.

"This new wording is in line with many other financial services providers and similar agreements."

The existing PayPal user agreement, which runs to more than 20,000 words, was last updated in November 2013.

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Co-op Admits 'Disastrous Year' Amid £2.5bn Loss

The embattled Co-operative Group has confirmed a loss of £2.5bn for 2013, in what it described as a "disastrous year".

The loss comes on the back of a £529m figure recorded in its 2012 results.

Interim group chief executive Richard Pennycook said: "2013 was a disastrous year for the Co-operative Group, the worst in our 150-year history.

"Today's results demonstrate that but they also highlight fundamental failings in management and governance at the group over many years.

"These results should serve as a wake-up call to anyone who doubts just how serious the challenges we face are."

It said most of the losses were from "discontinued operations" of its banking arm, which totaled £2.1bn.

Group sales were £10.5bn, down from the £11bn recorded in the previous year.

Profit from its food division were down 8% at £247m but it also recorded a goodwill impairment charge of £226m for its purchase of Somerfield stores.

The Co-operative Group consists of a number of divisions

However, it recorded more encouraging figures for some other divisions.

General insurance profit jumped from £13m in 2012 to £33m last year.

The pharmacy chain, which is being offered for sale, saw profit rise by about a fifth to £33m.

And its funeral services business saw sales up 3% to £370m and profit up £2m to £62m.

Co-operative Group chair Ursula Lidbetter said: "During 2013, it became apparent that our governance had fallen far short of the standards to which we aspire as a co-operative society.

"Now is the time to put that right through fundamental reform - we have to act with urgency if we are to lay the foundations for a stronger, healthier co-operative business in the future."

The group's bank division revealed a £1.5bn capital black hole last year and then in March announced a plan to raise another £400m.

Amid risks of the bank's collapse, the group reduced its stake in the institution to 30% as private equity bondholders provided capital - raising concerns of how it would maintain its 'ethical' stance.

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House Price Increases Create 'Generation Rent'

By Siobhan Robbins, Sky News Reporter

The booming housing market is causing a generation of young people to become increasingly pessimistic about their chances of getting on the property ladder, according to a new study.

Halifax's 'Generation Rent' report found that despite the launch of schemes like Help to Buy to give a boost to people with small deposits, 36% of 20 to 45-year-olds felt they have no realistic prospect of owning their home in the next five years.

Around half of those polled in England, Scotland and Wales agreed Britain will become a nation of renters in the next generation and 20% of people aged 23 to 27 said they have no desire to own their own home.

A fifth of people surveyed said they had no desire to own their own home

Caroline Hill, 23, told Sky News she would rather rent than buy.

"I can see myself being able to buy in the future but I'm just really not interested in doing so," he said.

"My parents have always been renters and I think that has had a big effect on the way I feel about it."

Danny Palmer, 27, is frustrated the market is running away from him.

"I think it's going to be really difficult for me to get onto the property ladder purely because rent these days is taking up about 40% of my salary, and that's before bills, living costs and anything else," he said.

Estate agents say high prices mean potential buyers are moving into rentals

Halifax mortgages director Craig McKinlay, said: "We may be heading towards the point where the aspiration to own a nice home will be replaced by the aspiration to simply live in one.

"It seems that people are now beginning to accept a lifetime of renting and this would not only change the way the property ladder looks in the future, it could even bring into question whether or not it will exist at all for some people."

The report warned that any future collapse in the number of first-time buyers - the "life blood" of the housing market - will have a knock-on impact on people trying to move up the property ladder.

If some existing home owners are unable to trade up because of a lack of potential buyers for their property, the market will be brought to a standstill, the report warns.

Woking estate agent Yassar Latif, said: "People who were thinking of buying, but have been let down by the rise in prices, have moved towards rentals now."

The Government has said that Help to Buy and plans to build more houses should ease the problem. But despite this, only around 30% of the people polled believed Help to Buy was working.

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Official: Average Earnings Outpace Inflation

Average UK earnings increased by 1.7% in the year to February, above the inflation rate of 1.6%, according to official figures.

The Office for National Statistics (ONS) said it was the first time since spring 2010 that the consumer price index for inflation had not exceeded pay increases.

It said pay increases averaged 2% in the private sector and 0.9% in the public sector.

It added the number of people out of work in the UK fell by 77,000 between December and February.

The unemployment rate of 6.9% is the lowest for five years.

Business Secretary Vince Cable said: "Throughout the economic crisis, and now in the recovery, our labour market has shown itself to be resilient and flexible.

"These latest employment figures show that conditions are continuing to improve rapidly."

The improving statistics have eroded Labour's stance on the economic policies at the heart of the coalition Government.

Sky News Economics Editor Ed Conway said: "There are likely to be quibbles with the data and the timing, and many of them are perfectly legitimate.

"What's less in doubt is that wages and inflation are converging meaningfully for the first time since 2010.

"That implies the squeeze on incomes is in the process of coming to an end."

He added: "By the same token, families have had to withstand a whole five-year period of falling real wages, so in real terms they remain significantly less well-off than they were before the crisis.

"That damage will take some years to mend."

The ONS said the total jobless in the period stood at 2.24 million, with a record 30.3 million people in work.

A total of 691,000 people have gained employment in the last year, taking the rate to 72.6%.

It added the number of people claiming Jobseeker's Allowance last month fell by 30,400 to 1.14 million.

Meanwhile, the number of people in Britain defined as economically inactive, including those caring for relatives or withdrawn from the job market, fell by 86,000 in the latest quarter to 8.8 million.

Those out of work for more than 12 months was also cut by 32,000, down to 807,000.

The jobless figure for 16 to 24-year-olds has also continued to fall, down by 38,000 to 881,000 - the lowest for five years.

The ONS said 1.42 million people are working part-time on the basis of not being able to find full-time employment.

It was a drop of 17,000 over the three months, although still 10,000 higher than the same time last year.

Esther McVey, the minister for employment, told Sky News: "More young people are in work, more women are in work, wages are going up and more and more businesses are hiring.

"It's a credit to them that Britain is working again."

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Mulberry's Profit To Get A Handbagging

Luxury fashion brand Mulberry has warned its full-year profit will be below expectations.

The company said pre-tax profit for the year ended March 31 is expected to be around £14m.

The Somerset-based firm, famous for its high-end handbags, said new, lower-priced items would effect the results.

The company said: "Since the appointment three weeks ago of Godfrey Davis as interim executive chairman, a review of operations and strategy has been undertaken with the management team.

"The primary objective is to reinvigorate sales by the introduction of more affordable new product."

Although the company still plans to expand internationally, the pace of new openings has been slowed by nearly 40%.

It said for the 2014-15 fiscal year only five own store openings would occur, down from eight in the previous year.

The company said it would reduce the openings to control costs while allowing existing stores to "achieve greater traction".

Mulberry also confirmed its new UK factory is fully operational, having taken on 300 additional staff.

In January, around £400m was wiped from the company's share value after it reported a drop in its crucial Christmas period sales.

Last year, the company lost its top creative star, Emma Hill, and the group is still looking for a new chief executive after the departure in March of Bruno Guillon.

It also appears that an ongoing appetite for high-priced items is diminishing, even for its regular shoppers.

Releasing the trading update, Mr Godfrey said: "Following the recent change in management, we are focusing on achieving sales growth through the reinforcement of product offering at more affordable prices to meet the expectations of our loyal customers.

"This will have short-term financial consequences but is necessary to ensure the future strength of the Mulberry brand."

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Co-op Admits 'Disastrous Year' Amid £2.5bn Loss

The embattled Co-operative Group has confirmed a loss of £2.5bn for 2013, in what it described as a "disastrous year".

The loss comes on the back of a £529m figure recorded in its 2012 results.

Interim group chief executive Richard Pennycook said: "2013 was a disastrous year for the Co-operative Group, the worst in our 150-year history.

"Today's results demonstrate that but they also highlight fundamental failings in management and governance at the group over many years.

"These results should serve as a wake-up call to anyone who doubts just how serious the challenges we face are."

It said most of the losses were from "discontinued operations" of its banking arm, which totaled £2.1bn.

Group sales were £10.5bn, down from the £11bn recorded in the previous year.

Profit from its food division were down 8% at £247m but it also recorded a goodwill impairment charge of £226m for its purchase of Somerfield stores.

The Co-operative Group consists of a number of divisions

However, it recorded more encouraging figures for some other divisions.

General insurance profit jumped from £13m in 2012 to £33m last year.

The pharmacy chain, which is being offered for sale, saw profit rise by about a fifth to £33m.

And its funeral services business saw sales up 3% to £370m and profit up £2m to £62m.

Co-operative Group chair Ursula Lidbetter said: "During 2013, it became apparent that our governance had fallen far short of the standards to which we aspire as a co-operative society.

"Now is the time to put that right through fundamental reform - we have to act with urgency if we are to lay the foundations for a stronger, healthier co-operative business in the future."

The group's bank division revealed a £1.5bn capital black hole last year and then in March announced a plan to raise another £400m.

Amid risks of the bank's collapse, the group reduced its stake in the institution to 30% as private equity bondholders provided capital - raising concerns of how it would maintain its 'ethical' stance.

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House Price Concern As Wider Inflation Eases

There has been more good news for household budgets with confirmation that price growth eased further in March though property costs accelerated.

The Office for National Statistics (ONS) charted a fall in the Consumer Prices Index (CPI) measure of inflation to an annual rate of 1.6% - down from 1.7% in the previous month - which marked a new four-year low.

This was driven, the ONS said, by falling pressures from fuel costs.

Petrol prices were unchanged between February and March

Furniture and clothing also made downward contributions - with discounting in women's fashion leading the way.

Upward contributions to inflation came from factors including higher bills for overnight hotel stays and more expensive alcoholic spirits.

The figures raised hopes that a milestone in the UK's economic recovery could be reached as early as Wednesday, when the ONS releases the latest unemployment and wage statistics.

Many economists believe they will show pay packets rising at a faster level than inflation.

George Osborne has welcomed easing inflation figures

Earnings have not increased at a higher rate than inflation since a brief spike in March and April 2010 and have not consistently been improving since 2008.

However, separate ONS figures on Tuesday pointed to a steep rise in annual house price inflation of 9.1% over the 12 months to February.

It represented the biggest increase since June 2010 and was up sharply on the 6.8% rise measured in January as London's rapid price growth started to be mirrored outside the capital.

The performance renewed fears the UK housing market is at risk of overheating though policymakers have repeatedly pledged to remain vigilant.

The housing charity Shelter said: "Today's figures are yet more evidence that house prices are spiralling out of control.

"Apart from the lucky few who can rely on the bank of mum and dad, our runaway housing market is forcing a generation to watch a home of their own become an increasingly distant dream, no matter how hard they work or save."

European economist at Schroders, Azad Zangana, told Sky News he expected the Bank of England to intervene on house price inflation in the summer.

The TUC leader Frances O'Grady says a cost of living crisis remains

The wider inflation numbers - which strip out housing costs - were welcomed by the Chancellor.

George Osborne said: "Lower inflation and rising job numbers show our long term plan is working, and bringing greater economic security."

The general secretary of the union organisation the TUC, Frances O'Grady, said workers remained £40-a-week worse off than before the financial crisis.

UK economist at Scotiabank, Alan Clarke, said the latest CPI reading was likely to mark the low point in UK inflation as a rebound is likely to come from the impact of Easter holidays on airfares.

However, he saw real-terms wage growth accelerating to counter that effect.

He said: "At the moment, consumer spending growth is being boosted by falling savings and rising borrowing.

"If real incomes continue to improve over the coming quarters (as we expect), then spending growth will be increasingly underpinned by solid fundamentals rather than the feel-good factor associated with a booming housing market."

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Tesco Full-Year Profit Slumps 6% To £3.3bn

Tesco has reported a 6% fall in full-year group trading profit of £3.3bn.

Stripping out exceptional items incurred in the last year, pre-tax profit was down 6.9% to £3.1bn.

The UK's biggest supermarket chain also announced like-for-like sales, excluding fuel and VAT, fell 3% in the three months to the end of February 2014.

The results do not include figures for Tesco Bank, which reports separately.

Shares in the company were up more than 3% in early trades on Wednesday.

Tesco's market share hit a 10-year low of 28.6% - its lowest since 2004 - in the 12 weeks to March 30 compared with the same period the year before, according to the latest data from market researcher Kantar Worldpanel.

It remains the third biggest retailer in the world.

The company, led by chief executive Philip Clarke, is 24 months into a turnaround plan for its main UK business that has seen over £1bn invested in store revamps, more staff, new product ranges and pricing initiatives.

Mr Clarke said: "We are transforming Tesco through a relentless focus on providing the most compelling offer for our customers.

"Our results today reflect the challenges we face in a trading environment which is changing more rapidly than ever before."

He added: "We are determined to lead the industry in this period of change."

The sales drop in the last three months was the biggest quarterly drop recorded during Mr Clarke's three-year tenure.

The company said it would put customers "at the heart" of what it does in this "new era of retail".

It added the second-half of the year was particularly competitive in the UK sector.

A spokesman for Tesco said: "Our performance in the year was not where we had planned it to be."

Although it cited problems in countries such as South Korea and Thailand, the company is also looking further afield.

It recently announced it would return to the United States with its F&F clothing business.

In November, Tesco completed the sale of its loss-making US supermarkets operation Fresh & Easy to investment firm Yucaipa.

Earlier in the month the supermarket's finance director, Laurie McIlwee, resigned.

Sky News also understands Mr Clarke has decided to appoint a new chief marketing officer in place of Matt Atkinson, who has been in the role for just over a year.

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Official: Average Earnings Outpace Inflation

Average UK earnings increased by 1.7% in the year to February, above the inflation rate of 1.6%, according to officially released figures.

The Office for National Statistics (ONS) said it was the first time since the spring of 2010 that the consumer price index for inflation had not exceeded pay increases.

It said pay increases averaged 2% in the private sector and 0.9% in the public sector.

It added that the number of people out of work in the UK fell by 77,000 between December and February.

The unemployment rate of 6.9% was the lowest recorded for five years.

The ONS said the total jobless in the period stood at 2.24 million, with a record 30.3 million people in work.

A total of 691,000 people have gained employment in the last year, taking the rate to 72.6%.

It added that the number of people claiming Jobseeker's Allowance last month fell by 30,400 to 1.14 million.

Meanwhile, the number of people in Britain defined as economically inactive, including those caring for relatives or withdrawn from the job market, fell by 86,000 in the latest quarter to 8.8 million.

More follows...

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Beckham Miami Stadium Plan Gets A Kicking

David Beckham's plans to open a waterfront stadium for his new Major League Soccer (MLS) side in Miami have come under fire.

A consortium of firms have taken out newspaper adverts opposing the plan for the open-air 25,000-seater arena in the city's port.

The alliance of shipping interests and a billionaire car dealer are worried the proposed development will damage their aspiration of Miami becoming a more attractive choice for global shippers to trade via the Panama Canal.

To date, only the London-listed cruise operator Royal Caribbean had publicly spoken out against the stadium.

The consortium - calling itself the Miami Seaport Alliance - argued in the advert: "We cannot jeopardise well-paying jobs, like crane operators, longshore workers, and mechanics, for low-paying stadium jobs, such as concession sales."

The group, whose leaders include former Royal Caribbean director John Fox and ex-owner of the Philadelphia Eagles - the car dealer Norman Braman - point to $3bn (£1.8bn) of planned infrastructure investment in the port area to increase its appeal.

Beckham said last month the development of the 36-acre space beside the water would cost about $200m (£120m) and include shops, hotels and offices connected to the mainland by a pedestrian bridge.

The port's master plan sees convention, hotel and office space on the same site being considered for the stadium.

A lawyer and adviser to the Beckham camp, Neisan Kasdin, has insisted the planned stadium would not interfere with port operations while Miami-Dade mayor, Carlos Gimenez, has insisted the site is one of four under consideration.

When announcing the stadium plans last month, Beckham said he wanted to work with people who opposed the port stadium development.

He said: "Our stadium, our site is all about the skyline, it's all about the water - it opens up to that. And that's what we want people to see all around the world.

"There's always going to be snags along the way. There is going to be people who don't agree having the stadium in certain places."

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Economy Fragile As High Street Spending Falls

By Gerard Tubb, North of England Correspondent

A fall in high street spending for the second month in a row has underlined the fragile nature of the long-awaited economic recovery.

Figures from the British Retail Consortium show like-for-like sales dropped by 1.7% in March compared with the same period in 2013, with the later timing of Easter this year blamed for the fall.

Online sales rose 12.8% last month, helped by the lack of Easter holidays, which tend to drive consumers out of the house and to the shops.

Meanwhile, for the three-month period to March, food sales were down 2.7% on the year before.

The figures come a few days after economic forecasters EY ITEM Club predicted consumer spending will lead the recovery in 2014.

They expect wages to rise in real terms for the first time in six years, with pay up by 1.7% and inflation falling to 1.6%.

Consumer spending is predicted to drive the economic recovery

The conflicting reports are echoed at Browns department store in York where managing director Nick Brown says he is selling more big ticket items like furniture.

But customers are increasingly taking the option of interest free credit which reduces profit margins.

Many shoppers in the store said they did not feel any better off than they did this time last year.

Economist Nida Broughton from the Social Market Foundation warned consumers are still suffering after losing a decade of growth.

"Real wages have taken a cut of 7% since 2008 so we're nowhere near where we were.

"We're still poorer than we were. In fact real wages are at the level they were at in 2004, so we've got a lost decade to make up for."

The mixed picture for retailers was evident in results from JD Sports Fashion and Debenhams on Tuesday.

Britain's second largest department store made pre- tax profits of £85.2m in the six months to March - down 24.5% - largely because of heavy discounting at Christmas.

JD Sports said full year group profits were up 5% - helped by an exceptional performance in Sport and a reduction in the losses in its Outdoor division.

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Inflation Fall Eases Cost Of Living Pressure

There has been more good news for household budgets with confirmation that inflation eased further in March.

The Office for National Statistics (ONS) charted a fall in the headline Consumer Prices Index (CPI) to an annual rate of 1.6% - down from 1.7% in the previous month - which marked a new four-year low..

This was driven, the ONS said, by falling fuel, clothing and furniture costs.

The figure raised hopes that a milestone in the UK's economic recovery could be reached as early as Wednesday, when the ONS releases the latest unemployment and wage statistics which many economists believe will show pay packets rising at a faster level than inflation.

Earnings have not increased at a higher rate than inflation since a brief spike in March and April 2010 and have not consistently been improving since 2008.

More follows...

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Osborne Jail Threat For Offshore Tax Evaders

Wealthy people who stash money in offshore accounts to evade paying tax could be sent to jail, the government has said.

Chancellor George Osborne said new proposals could mean that people who hide their cash overseas could face criminal charges even if they did not intend to evade tax.

Mr Osborne, who is consulting on the new powers, said there would be "no safe haven" for anyone who cheats the Exchequer.

It comes after concerns that some wealthy people are costing the government millions of pounds a year by keeping money away from the glare of UK authorities.

HM Revenue & Customs will have the power to prosecute people who do not declare their foreign income, regardless of whether they intend to avoid payment.

Previously, in order to earn a conviction with a jail sentence, prosecutors had to show that individuals intended to avoid paying tax on foreign income.

Mr Osborne, who has been at the International Monetary Fund meeting in Washington, told the Financial Times: "We are changing the balance of the law so the burden of proof falls on those who are hiding their money offshore and we don't have to prove that they intended to do so."

He added: "It is totally unacceptable for people not to pay the tax that is due and the message will be clear now with this new criminal offence that if you're evading tax offshore, there is no safe haven."

HM Revenue and Customs (HMRC) has been criticised for not prosecuting enough tax evaders.

Sky News' Ecomonics Editor Ed Conway said there has been much international discussion about what can be done to clamp down on people who hide money overseas.

David Cameron has previously announced a crackdown on so-called shell companies to help combat tax evasion and corruption.

The new criminal offence and sanctions are expected to come into effect next year, but many are expected to contribute to the consultation before that can happen.

The announcement was greeted by dismay from some, with critics suggesting the law could result in people being jailed when they were genuinely ignorant of the law.

Bill Dowdell, head of tax at Deloitte, told The Times: "It's horrifying. People should not be put in prison unless you can prove intent.

"I'm shocked to find that an offence which could lead to a prison sentence could be decided on a strict-liability basis."

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Interest Rates 'To Stay Low Until End Of 2015'

Ready, Willing... But Not Able To Buy A Home

Updated: 5:54pm UK, Thursday 10 April 2014

By Huw Borland, Sky News Online

If you are like me, renting a property is getting too expensive and feels like a waste of your hard-earned cash. Becoming an owner seems like sound logic.

Up for the challenge, my partner and I spend our evenings and weekends scrolling through property websites and appealing to estate agents for help.

But the hurdles in front of us are getting higher, as we scramble towards a finish line amid a stampede of other buyers.

For people in our position, the relentless surges in house prices are like body blows to your resolve. 

But what is making our teeth grind of late is how the current buying frenzy hampers even the most basic steps toward owning a home.

It starts with an estate agent saying we cannot see a flat because too many people have already booked a viewing.

"Sorry, it'll be madness on Saturday," one agent told me after revealing how more than 70 people were set to attend an open day at a two-bed flat.

I imagined an unfortunate line of newlyweds scowling at their competitors, as they queued round a corner.

Despite practically pouncing on properties as they emerge on the market, we regularly end up on "shortlists" and are left hoping someone cancels his or her appointment.

Faced with such demand, estate agents also try to whittle down the queue of buyers by warning that a feisty bidding war is inevitable.

Gone are the days when you could try and haggle below the asking price. 

For a flat marketed at £325,000 – depressingly well above what similar properties were being offered for a year ago – we were told not to bother visiting unless we could pay more than £350,000.

The obvious strategy is to target properties that are considerably less than the top limit of what we can afford.

Hopefully, this will allow us to trade a few more financial blows when we try to fend off other buyers.

But, every month that passes, the offerings from sellers hold less value and come in at higher prices.

On a brighter note, there is always a solution.

It's just not always easy to view it.

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Glencore Sells Peru Mine To China For £3.5bn

A group of Chinese state-owned companies is to buy a copper mine in Peru from Anglo-Swiss mining giant Glencore Xstrata for £3.5bn in cash.

The purchase is the latest in a string of Chinese resource acquisitions abroad.

Glencore confirmed on Sunday it had agreed to sell its entire interest in the Las Bambas copper mine to the consortium.

The group is led by MMG, a mining company controlled by state-owned China Minmetals Nonferrous Metals.

The other state-controlled buyers are Guoxin International Investment Corporation and Citic Metal.

Sky News City Editor Mark Kleinman revealed last May that the merger between Glencore and Xstrata - demanded by the Chinese government to secure the deal - was contingent on the Peruvian mine sale.

The Chinese government's insistence on the disposal underlined Beijing's heightened awareness of consolidation in the natural resources sector, as its economy demands increasing volumes of commodities to support its expansion.

Glencore CEO Ivan Glasenberg said: "Today's announcement demonstrates our commitment to maximising value for our shareholders.

"Since we acquired Xstrata (last May), our team has taken decisive steps to de-risk Las Bambas, which has culminated in this compelling offer from the consortium.

"Our willingness to sell reflects the level of the offer and our conviction that we can utilise the sale proceeds to create additional shareholder value."

China's government-owned energy and mining companies have sought multi-billion acquisitions, hoping to profit from future domestic and foreign demand.

The deal also requires the Chinese buyers to reimburse Glencore for the cost of developing the copper mine from the start of the year until the sale closes.

The miner said that by the end of March 2014, capital expenditure and other costs incurred in the first quarter reached around £240m.

In 2013 Chinese mining and energy purchases abroad totaled £17.8bn, according to financial information firm Dealogic.

They included China National Petroleum's £2.5bn purchase of an oilfield share in Mozambique from Italy's ENI.

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Co-op Bank In Record £1.3bn Annual Loss

The struggling Co-operative Bank has reported a pre-tax annual loss of £1.3bn and said it would not return to profit for at least two years.

The bank also confirmed it would not make £4.97m deferred annual bonuses to its former bosses.

Chief executive Niall Booker said an overhaul plan known as the liability management exercise (LME) had "kept the bank alive".

Taking into account a profit made by the LME, it said the loss was reduced to £586m for the year ending December 31.

Mr Booker said: "The results today reflect the magnitude of the issues that have come to light since I jointed the Co-operative Bank ten months ago.

"It is early days but initial progress on our business plan is encouraging and we remain enthusiastic about the long-term potential for the bank."

The embattled parent mutual, the Co-operative Group, lost overall control of its banking arm to US hedge funds in December as part of its rescue plan. It now holds a 30% stake.

The Co-operative Group consists of a number of divisions

The £1.5bn funding 'black hole' was added to in March when it revealed a further £400m gap, forcing it to seek further investor funds.

The institution, which continues to market itself as having "ethical principles", said it cut assets last year by £2.1bn and reduced staff levels by 14% - around 1,000 employees.

It said it would try to restore its capital position, and refocus attention on being a bank for householders and small to medium-sized businesses.

Part of the plan includes reducing its product range, along with improving digital and branch-based banking services.

Although former executives would miss out on deferred bonuses, Mr Booker is to receive a £1.2m salary and benefits package and £1.7m bonus - dependant on the bank's future performance.

A further £1.2m is part of a long-term incentive plan that is payable over three years.

The bank's annual results were published on Friday after two earlier delays to the release.

The parent Co-op Group, which is expected to report an even larger loss later this month, also continues to struggle to find its way in an increasingly competitive environment.

 Earlier this week the former City minister, Lord Myners, quit the board amid opposition to his planned reforms of the business.

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Wet February Wipes £270m From Building Sector

Woolly weather in February caused a sharp decline in UK construction, wiping more than a quarter of a billion pounds from the sector.

The Office for National Statistics (ONS) said output fell to £5.8bn, down 2.8% from January.

Output is defined as the amount charged by construction companies to customers for value of work in the period, excluding VAT and payments to sub-contractors.

It said new work dropped to 2.6% - equivalent to £160m - while the repair and maintenance sub-sector fell by 3.1% to £110m.

The ONS said: "While most private indicators of construction activity picked up throughout 2013 and 2014, a number were seen to temporarily depart from this trend in February 2014.

"Many also cited adverse weather conditions as the primary reason for lower activity levels, especially in the house building sector."

The ONS said the February dip caused construction to stay virtually flat over the quarter.

It said between December and February, the total sector grew by only 0.3%, compared to the September to November period.

The small amount of growth over the three-month winter period was due to a 1% increase in new construction work.

During the same period repair and maintenance decreased by 0.8%, despite a slight rise of 0.3% in work for public housing.

It said the level of construction was an eighth below the best monthly peak, which was recorded in June 2011 at £6.6bn.

Construction in the housing industry was particularly affected in February because of the weather.

It fell 6.3% on January's figure and was the biggest monthly drop since March last year, when below average temperatures and snow hit the country.

But overall, while public housing was down, private new housing was up 15.3% compared to February last year.

The ONS said damage to property in February caused by storms, wind and flooding is yet to be recorded in monthly data and is expected to be reflected when March's figures are released.

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Osborne Jail Threat For Offshore Tax Evaders

Wealthy people who stash money in offshore accounts to evade paying tax could be sent to jail, the government has said.

Chancellor George Osborne said new proposals could mean that people who hide their cash overseas could face criminal charges even if they did not intend to evade tax.

Mr Osborne, who is consulting on the new powers, said there would be "no safe haven" for anyone who cheats the Exchequer.

It comes after concerns that some wealthy people are costing the government millions of pounds a year by keeping money away from the glare of UK authorities.

HM Revenue & Customs will have the power to prosecute people who do not declare their foreign income, regardless of whether they intend to avoid payment.

Previously, in order to earn a conviction with a jail sentence, prosecutors had to show that individuals intended to avoid paying tax on foreign income.

Mr Osborne, who has been at the International Monetary Fund meeting in Washington, told the Financial Times: "We are changing the balance of the law so the burden of proof falls on those who are hiding their money offshore and we don't have to prove that they intended to do so."

He added: "It is totally unacceptable for people not to pay the tax that is due and the message will be clear now with this new criminal offence that if you're evading tax offshore, there is no safe haven."

HM Revenue and Customs (HMRC) has been criticised for not prosecuting enough tax evaders.

Sky News' Ecomonics Editor Ed Conway said there has been much international discussion about what can be done to clamp down on people who hide money overseas.

David Cameron has previously announced a crackdown on so-called shell companies to help combat tax evasion and corruption.

The new criminal offence and sanctions are expected to come into effect next year, but many are expected to contribute to the consultation before that can happen.

The announcement was greeted by dismay from some, with critics suggesting the law could result in people being jailed when they were genuinely ignorant of the law.

Bill Dowdell, head of tax at Deloitte, told The Times: "It's horrifying. People should not be put in prison unless you can prove intent.

"I'm shocked to find that an offence which could lead to a prison sentence could be decided on a strict-liability basis."

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