Dixons And Carphone Warehouse Merger Agreed

Dixons Carphone Eyes The World Of Future Tech

Updated: 11:53am UK, Thursday 15 May 2014

By Tom Cheshire, Technology Correspondent

It all sounds pretty retro.

The new company to be formed by the merger of Dixons and Carphone Warehouse will be called Dixons Carphone - very 1980s.

And one of its businesses is PC World - which feels slightly more recent, but is still about as dated as an episode of Friends.

But the £3.7bn merger could be the future of how we buy technology in the UK.

And it's all about internet-enabled toasters.

Let me explain.

For some time now, technologists have been prophesying the "internet of things".

This is the quasi-nirvana whereby physical objects in the real world - including toasters, but also cars, thermostats, washing machines, front doors - all become part of the network of networks that is the internet.

These devices all talk to each other, machine-to-machine, and are all controllable digitally - from the web, your smartphone or Google Glass. (The Sonos home music player, built into ceilings but controlled from your smartphone, is an existing example of this.)

According to research firm Gartner, 26 billion "things" will join the internet by 2016.

Tom Coates' house is what the internet of things looks like in the real world. A British designer working in San Francisco, he has installed sensors around his home - and given his house a Twitter account, @houseofcoates.

Weighing scales, light switches and thermostat all chip in, resulting in tweets like: "Tom just weighed himself. I'm going to leave it up to him to tell you if it's good news though."

The house is a playful first step towards an internet of things. It's easy to imagine where to goes next: lawn sprinklers which turn on if the house detects it has been days without rainfall, toasters that start toasting when your morning alarm goes off, lights that turn off when you're not in the room - or the weighing scales to go online and order healthier food if Mr Coates' weight increased too much. Then beyond.

Mr Coates is an early adopter. Recently he wrote: "For me the most important change is the move from Internet of Things concept cars and interaction design experiments, to a new world where the things we're building are simply, cleanly useful."

He cites Nest - the smart thermostat and alarm maker recently bought by Google - as an example of this.

At tech show CES this year, Samsung also showed off smart fridges and washing machines.

And this is where Dixons Carphone comes in. After all, you need somewhere to buy all this gear.

Carphone Warehouse has long excelled at reinventing itself with each wave of mobile technology, from carphones through mobiles, smartphones, tablets and the wearables to come.

The next stage is the integration of these mobile devices with the household - the territory of Currys and PC World.

The new company will be able to offer not just standalone products, but integrated, personalised systems.

It might help with some of the more complex installations in your house.

Rather than catching up with new consumer tech habits, Dixons Carphone is looking to get ahead of them.

16.01 | 0 komentar | Read More

E.ON To Pay Customers £12m Over Mis-Selling

Energy Complaints Soar By Staggering 224%

Updated: 1:53am UK, Monday 07 April 2014

Complaints about energy companies have trebled in the first quarter of this year, according to the energy sector's ombudsman who is calling for "increased transparency".

The record figures showing a 224% rise in the first three months of this year come after regulator Ofgem said it was referring the energy sector to the Competition and Markets Authority for a full-scale competition inquiry.

Between January and March, complaints trebled to 10,638, compared with 3,277 received during the same period last year.

More than 2,000 consumers complained about not receiving bills, 1,474 people made complaints about billing charges, and over 1,000 consumers criticised the quality of customer service.

The numbers suggest that 2014 will see more complaints overall, as there were 17,960 complaints made over a 12-month period last year.

Chief Energy Ombudsman Lewis Shand Smith said: "Consumer frustration and dissatisfaction is something that we hear about every day, and we welcome any attempts by Ofgem to make the energy market fairer.

"With energy complaints trebling in the first quarter of this year and problems relating to billing the greatest concern, increased transparency is something that should be addressed."

A spokeswoman for Energy UK, the trade body that represents the industry, said most customers had no problems with their energy company, but accepted that sometimes things go wrong.

She added: "If a customer has any concerns relating to their bills, they should contact their provider as soon as they can, and if possible have an up-to-date meter reading to hand which will ensure their bill is as accurate as possible.

"Energy companies work very hard to resolve problems and most complaints are fixed within a few working days with no more than a phone call."

The spokeswoman said there were new rules in force which made matters "more open and clear for customers including: explaining bills so people understand what they are paying; making it easy to switch; ensuring customers are on the right deals; and simplifying tariffs".

But Richard Lloyd, executive director of Which?, the consumer watchdog, said the rise in complaints was "further proof that the energy market is broken".

He added it was "right" that the energy sector had been referred for a full-scale investigation.

A Department of Energy and Climate Change spokeswoman said the figures were "worrying", and added: "We would advise consumers to shop around and switch to find a better deal, whether on cost or customer service."

16.01 | 0 komentar | Read More

New Indian Prime Minister Modi Hails Victory

Opposition candidate Narendra Modi declared the "good days are coming" after sweeping to power in historic elections in India.

Though the final results have yet to be confirmed, Mr Modi took to Twitter to declare victory for his Hindu Bharitya Janata Party (BJP).

He tweeted: "India has won. Good days are coming."

Outgoing Prime Minister Manmohan Singh has called Mr Modi to congratulate him.

India's Election Commission says that for the first time in 30 years a party appears to have enough seats to form a majority government in what is the world's second most populous country.

The BJP currently has 272 seats - meaning they won't need to form a coalition in the lower house of parliament.

Narendra Modi declares victory on Twitter

The result ends 10 years of Congress Party rule and follows what the BJP describe as a "people's revolution".

"This is the beginning of change, a people's revolution and the start of a new era," senior BJP leader Prakash Javadekar told AFP.

Sky's Neville Lazarus is outside the BJP headquarters in New Delhi and described the celebrations as "euphoric".

"They were expecting the number of seats to be high, but not this high," he said. "It's a vindication of Narendra Modi and his campaign.

"There is a mood of change in this country because the Congress Party has been reeling from the economic slowdown and corruption charges."

Narendra Modi is blessed by mother, Hira Ba, on the day of his victory

Mr Modi has been the top official in Gujarat state for a decade.

The 63-year-old is the son of a tea seller and has played on his humble roots during the election campaign, with references to his mother riding a rickshaw to cast her ballot.

His apparent victory comes despite controversy over links to the paramilitary Hindu nationalist group Rashtriya Swayamsevak Sangh (RSS) - which some describe as neo-fascist.

As chief minister of Gujarat, Mr Modi was criticised for failing to apologise for religious riots in 2002 in which at least 1,000 people died - mostly Muslims.

Celebrations outside a counting centre in Siliguri

He has denied any role in the violence and the Supreme Court declared he had no case to answer.

However, suspicions prompted the United States to deny him a visa in 2005, while Britain maintained a diplomatic boycott on Mr Modi until 2012.

More follows...

16.01 | 0 komentar | Read More

Japanese Rush To Beat Sales Tax Increase

Japan's economy grew at its fastest rate for almost three years in the first quarter as firms and consumers rushed to beat the implementation of a sales tax rise.

Official figures showed GDP growth at an annualised rate of 5.9% - or 1.5% on the previous quarter.

Economists suggested the performance was mostly down to efforts to avoid extra tax.

Japan raised its sales tax to 8% from 5% on April 1 and the move is expected to have resulted in a quarter-on-quarter GDP contraction in the current quarter though a quick rebound is forecast for the second half of the year.

Prime Minister Shinzo Abe, who took office in 2012, has sought to get Japan's growth back on track through a combination of heavy government spending, ultra-loose monetary policy and economic reforms.

His so-called "Abenomics" formula is credited with boosting corporate profits and helping Japan escape from a long-time deflationary rut.

Price increases are slowly moving toward a 2% official inflation target, thanks to the flood of money in the economy and to higher costs for imports due to a weakening in the Japanese yen.

The recovery in the US and Europe may help Japan increase exports, so far an area that has lagged expectations as soaring import costs for energy, food and industrial components have outpaced increases in demand for Japanese products overseas.

16.01 | 0 komentar | Read More

Interest Rate To Remain Low For 'Some Time'

Affordability Gap: Figures In Detail

Updated: 11:45pm UK, Tuesday 13 May 2014

The 10 most affordable and least affordable areas to buy a property in England and Wales.

They are listed by their affordability gap - the ratio between average house prices and average earnings of locals in each area.

The first figure is the average house price in that area, the next is the average local earnings, and the third is the affordability gap - calculated by dividing the first figure by the second...

Top Ten    

Kensington and Chelsea £935,000 £42,957  21.8  

Westminster £748,500   £38,355  19.5  

Camden £595,000   £37,372  15.9  

Hammersmith and Fulham £550,000 £34,778  15.8

Islington £450,100 £34,876  12.9 

Elmbridge £444,500 £36,161  12.3 

Wandsworth £450,000   £36,618  12.3 

Richmond upon Thames £475,000   £38,860  12.2 

Hackney £378,500   £31,023  12.2 

Brent £340,000  £27,950  12.2 

Bottom Ten   

Wigan £105,000   £25,589  4.1

Neath Port Talbot £93,750   £23,462  4.0

Stoke-on-Trent £88,000   £22,620  3.9

Merthyr Tydfil £86,000   £22,396  3.8   

Rhondda, Cynon, Taff £93,000   £24,872  3.7

Pendle £85,000   £22,932  3.7

Barrow-in-Furness £92,500   £27,794  3.3

Blaenau Gwent £70,000   £21,034  3.3

Copeland £115,000   £35,105  3.3

Burnley £71,500   £24,612  2.9 

16.01 | 0 komentar | Read More

Dixons And Carphone Warehouse Merger Agreed

The owner of Currys/PC World, Dixons Retail, and Carphone Warehouse have confirmed an all-share 'merger of equals' to capitalise on the growing digital market.

While the combined entity, to be known as Dixons Carphone, will continue to sell traditional products associated with each brand there will be a focus on capturing demand for mobile connectivity with electrical products in the home - the so-called 'Internet of Things'.

The group sees the mobile phone as a remote control for the household.

Sebastian James - the current CEO at Dixons Retail - told Sky News: "Today, most people are using the phone to control their audio systems and increasingly it will be security systems and lighting and heating and that's beginning already.

"I think we'll be the only people, together, who can really tell that story end-to-end for our customers."

It was estimated the 50/50 deal - subject to shareholder approval - would save the combined group up to £80m annually from 2017/18 and value the firm at more than £3.7bn.

The two companies currently have almost 2,900 stores - 1,300 of them in the UK.

There will be initial cuts but jobs 'will be created in the long term'

The UK store portfolio would not be cut, they argued, because Currys/PC World stores were largely out of town while Carphone operations were concentrated on the high street.

Carphone chairman Sir Charles Dunstone, who is set to become chairman of Dixons Carphone, confirmed he expected the deal to create jobs in the long term.

Growth of 4% in the combined group's current workforce of 43,500 people by the end of 2016 was forecast, though the increase would be partially offset by the combination of operational and support function cuts causing a 2% drop in the total workforce - 870 posts.

Sir Charles said: "We are incredibly excited about the opportunity today's news brings to our organisations, our consumers and our investors.

"Both Carphone and Dixons have a huge commitment to delivering the consumer the very best service, product and advice around the connected world.

"We have a deep respect for each other and we see the merger of these two great companies as an opportunity to bring our skills together for the consumer and create a new retailer for the digital age.

"We are also creating jobs and we see many opportunities for further growth."

16.01 | 0 komentar | Read More

Property Boom Leaves Many Unable To Buy

By Ed Conway, Economics Editor

The proportion of English and Welsh homes selling for over £1m has more than doubled during the Great Recession, in the latest evidence of the property market boom.

In London a record 7% of all home sales listed by the Land Registry in the year to March were for £1m or more - a sharp increase from the 3% level when Britain slid into recession in 2008.

Overall, the number of homes sold for £1m or more over the past year has surpassed 10,000 for the first time - with just over 11,000 £1m sales in the year to March.

This compares to around 9,000 at the peak of the pre-crisis boom.

Sky News analysis has also uncovered the affordability gap between different local authorities has reached unprecedented levels, driven up by a combination of high house prices and falling real wages.

Darker areas show the higher house price to earnings ratios in England

The numbers come as the Bank of England prepares to deliver its quarterly Inflation Report, at which it is expected to signal growing consternation about the property boom.

With the economy recovering faster than many had expected and house prices pushing ever higher, the Bank is widely expected to lift interest rates within a year - and may add further checks on housing market lending as early as next month.

Across the country as a whole, some 1.4% of homes sold in the past year went for £1m or over, another record, and more than double the 0.7% at the beginning of 2008.

Analysts said even these Land Registry figures may understate the extent of the £1m-plus property market, since they exclude many properties bought through corporate vehicles.

The vast majority of these sales - 7,692 of the 11,341 properties sold for £1m or over in England and Wales over the past year - were in London.

However, because wages have not kept pace with rising house prices, the capacity of families to afford bricks and mortar has diminished.

Although one closely-watched measure of housing affordability - house prices vs earnings - remains below its pre-crisis peak, it has risen to unprecedented levels in London.

In Kensington & Chelsea, average property prices hit 22 times the average earnings of local residents last year - a doubling in the past decade.

They are also at 20 times earnings in Westminster, and 12 times earnings in inner London as a whole.

By contrast, prices in Burnley remain 2.9 times the average earnings in the local area, down sharply from the 4 times earnings peak reached in 2007.

The statistics, which are derived from Land Registry and Office for National Statistics data, illustrate the scale of differences in house price performance throughout the country.

Although London boroughs dominate the top of the unaffordability rankings, there are exceptions.

For some tenants, the prospect of buying a property is ever less likely

Elmbridge in Surrey is Britain's sixth most unaffordable district, with prices 12.3 times local earnings.

Sitting at ninth and tenth in the rankings are Hackney and Brent, where although absolute prices are lower than many other parts of the capital, local earnings are also comparatively lower.

The upshot is that for many of those renting in such areas, the prospect of buying a property is becoming ever less likely.

The most affordable homes are primarily in Wales and in northern parts of England.

The figures underline the suspicion among economists that although ever less affordable house prices pose a serious social threat, they are not yet widespread enough to prompt a broad-based economic crisis in the UK.

The Bank has warned that, left unchecked, this could yet be a risk.

16.01 | 0 komentar | Read More

British GSK Executive Accused Of China Bribery

By Mark Stone, China Correspondent, In Beijing

The British former head of GlaxoSmithKline's (GSK) China unit has been accused of bribery.

Chinese investigators claim Mark Reilly ordered his salespeople to bribe doctors and hospital officials to use the drug company's products.

A statement released by police in the central city of Changsha said that resulted in "illegal revenue" of more than £100m.

Mr Reilly and two Chinese executives have also been accused of bribing government officials in Beijing and Shanghai.

A Ministry of Public Security official told a news conference in Beijing that GSK departments "offered bribes to hospitals and doctors as well as personnel to boost their sales".

GSK responded to the developments with a short statement: "We take the allegations that have been raised very seriously.

"They are deeply concerning to us and contrary to the values of GSK.

"We want to reach a resolution that will enable the company to continue to make an important contribution to the health and welfare of China and its citizens."

Mr Reilly, who left China in July last year only to return in September to assist the investigation, has since been prevented from leaving the country.

A spokesman from the Chinese Public Security Bureau told Sky News that he remained in China but would not be drawn on whether Mr Reilly would now be arrested.

The British Embassy in Beijing, which has been across the allegations against GSK since they first emerged, referred all questions to GSK.

"We are aware of recent developments in the case but cannot comment whilst it is still ongoing.  We are in close contact with GSK". an embassy spokesman said.

China is a key growth market for large drug-makers, which are counting on the country's swelling middle class to offset declining sales in Western countries.

Before the scandal, GSK's China sales had risen 14% year-on-year in the three months to end-June, but revenue in the country plunged 61% in the third quarter and 29% in the final quarter of 2013.

The crackdown reflects a growing determination by Chinese authorities to stamp out corporate bribery and corruption, which can drive up prices for consumers.

16.01 | 0 komentar | Read More

Quarterly Jobs Growth Hits 43-Year High

The unemployment rate has hit its lowest level since February 2009, helped by a record number of people finding work over the quarter.

The figures - released by the Office for National Statistics (ONS) - showed a record 283,000 secured a job in the three months to March, with self-employment driving the performance.

It meant, the ONS said, that more than 30.4 million people are now in work - the highest since records began in 1971.

It helped total unemployment fall by 133,000 to 2.21 million during the period, giving the UK an unemployment rate of 6.8%.

The total number of self-employed rose to a record 4.5 million. 

But there was disappointing news on pay in the figures.

Average earnings increased by 1.7% in the year to March, slightly ahead of the latest CPI inflation rate of 1.6% but below the expectations of economists.

The figure is closely-watched by the Bank of England for evidence people will be able to absorb rising mortgage costs when it begins to raise bank rate - currently expected in Spring 2015.

The ONS also confirmed the 18th consecutive monthly reduction in Jobseeker's Allowance claimants - by 25,100 in April to 1.12m. 

The performance was welcomed by the Government.

Minister for Employment Esther McVey said: "As the recovery takes hold, more people are able to get a job or set up their own business and become the employers of tomorrow.

"Each and every person who has made a new start or hired someone new is helping to make Britain a more prosperous and confident place to be.

"We will continue to support those in and out of work who want to get on and fulfil their ambitions for a more secure future."

Prime Minister David Cameron tweeted:  "There's more to do, but it's welcome unemployment is down again.

More jobs means more financial security for people."

More follows...

16.01 | 0 komentar | Read More

Npower Tops Citizens Advice Complaints Table

Energy giant Npower topped a 'big six' complaints list, at the same time it announced inflation-busting price hikes.

The Citizens Advice Bureau (CAB) said that between October and December, it received 10 times as many complaints as the best performing rival, SSE.

Late last year German-owned Npower wrote to 3.4 million customers, after it suffered a sharp rise in customer complaints over billing failures.

This followed an announcement imposing the highest price hikes of the major suppliers, at 10.4%.

CAB said Npower received 306 complaints per 100,000 customers in the period. It has a total of 5.9 million customers.

The figure was three times as many as the second worst for customer complaints, Scottish Power, which received 100 complaints for every 100,000 customers.

In January, Npower retail director Roger Hattam issued a second apology, over complaints it received due to a new billing system, with some customers hit with inaccurate charges.

At the time, Consumer Futures revealed Npower had attracted nearly half of all complaints of 'big six' firms between July and September, at 253 per 100,000 customers.

CAB said complaints against the company jumped by 300% between January 2012 and December 2013.

It slammed the rise as "unacceptable" adding that some customers were financially damaged over Npower's billing failures.

Complaints included direct debits being stopped, late billings and new accounts not being set up correctly.

CAB chief executive Gillian Guy said: "Things are getting worse not better for Npower customers.

"It is unacceptable that Npower has not yet sorted out the serious failings in its billing systems and customer service which are causing so many complaints and serious problems for its customers."

In a statement to Sky News, Npower retail director Roger Hattam said: "We wrote to all our customers during this period last year apologising for the impact on them of issues we have had with the implementation of our new billing system.

"We are making good progress in dealing with the root causes of this, but remain totally committed to resolving any problems this has created for our customers."

In late January, Npower was slammed by both watchdog Ofgem and the Department of Energy and Climate Change over a 14-page report it issued trying to explain cost structures of household bills and green taxes.

16.01 | 0 komentar | Read More

CBI Says Home Loans To Rise In Early 2015

Homeowners will come under more pressure early next year with the prediction that interest rates are to rise.

According to the Confederation of British Industry (CBI), the UK base rate will jump from the current historic low of 0.5% to 0.75% in the first quarter.

The CBI had earlier predicted a rate rise in the third quarter of 2015. It declined to say how many homeowners or businesses might be affected by rising interest rates next year.

The Office for National Statistics said that in 2010 more than 9 million UK households had property debt.

The Council of Mortgage Lenders (CML) said that in February 22,200 first-time buyers received loans, 26,200 home-movers and 14,300 buy-to-let applicants.

In December the CML said the recent period of falling loan arrears may be coming to an end, and forecast a 6.66% rise in defaults, to 160,000, next year.

CBI director-general John Cridland said property values were expected to rise by 8.2% in 2014 and 5.1% next year, prompting more fears of prices overheating.

"We have to remain alert to the risks posed by unsustainable house price inflation, and the (Bank of England) Financial Policy Committee is poised to act when necessary," he said.

"Housing has come back under the spotlight as annual house price inflation figures have reached double digits on some measures.

"While housing transactions are still running almost 30% below their last peak in 2006, they are picking up steadily."

London house prices have climbed a quarter above their pre-crash peak, partially prompted by foreign buyers in the prime property segment.

"Outside London, prices remain around 2% below peak figures with an even greater difference when you move outside the South East," Mr Cridland said.

The predictions come amid increased scrutiny of mortgage applications by lenders, in response to a market review by the Financial Conduct Authority.

Mortgage providers are seeking reassurance that applicants will have sufficient income to cover any potential rises in interest rates.

The FCA said new rules were "hardwiring common sense" into the market.

Mortgage broker firm John Charcol said families are the most likely to face scrutiny under the new regime, as their outgoings were potentially greater.

Spokesman Ray Boulger said: "The most common reason to knock people back is childcare costs.

"It's particularly bad if people have more than one child or if they are under school age."

16.01 | 0 komentar | Read More

AstraZeneca Takeover: MPs Question Bosses

Unions have warned MPs any takeover of AstraZeneca by US drugs giant Pfizer would lead to job losses and damage scientific skills in Britain.

Speaking at a hearing of the Business, Innovation and Skills Committee on Pfizer's £63bn approach to the British-based firm, Tony Burke, of the union Unite, said the firm had a terrible track record on job losses.

He told MPs the US-based pharmaceutical company had cut 65,000 jobs globally since 2005 and that when Pfizer had closed down a UK site, in Sandwich, it had been difficult for workers to get agreement on consultations.

Mr Burke said that there had been a meeting at which staff at AstraZeneca had voice significant concern about their jobs. The firm employs 6,700 in the UK.

He said that of particular concern was the research and development area where Pfizer had made significant cuts, while AstraZeneca has shown greater commitment.

Allan Black of the GMB union questioned Pfizer's suggestions of a five or 10-year legally binding guarantee of commitment to research and jobs and said he felt the drugs company would be unlikely to sign such a document.

Pfizer claims the newly created giant will mean improved treatments

Pfizer's chief executive Ian Read, who will be questioned later today, wrote to David Cameron giving a guarantee 20% of research jobs would stay in the UK, two AstraZeneca directors would be able to join the board and that the company would pay tax in the UK.

In a memo to the committee Mr Read said this was a legally binding guarantee for five years. However, MPs were told that under Takeover Panel rules the guarantee would only be binding for a year, any remaining time would be voluntary.

Mr Black said their was significant concern over AstraZeneca's manufacturing plant in Macclesfield because a drug made there was not widely marketed in the US and there were fears Pfizer would, therefore, not wish to invest in it.

The unions said Pfizer had not responded to requests for a meeting.

MPs are seeking cast iron guarantees on British jobs from drugs giant Pfizer if its attempted takeover of AstraZeneca is successful.

Mr Read's assurances have been dismissed as "vague" and "insufficient" by the Nobel Prize winner and President of the Royal Society Sir Paul Nurse.

He has written a letter to the committee ahead of two days of parliamentary hearings on Tuesday and Wednesday, which will see the chief executives of both firms quizzed.

Sir Paul said greater assurances were needed on the future of the British pharmaceutical industry and the jobs of scientists, and that there should be a 10-year legally binding agreement on what Pfizer would do.

The offer has revived bitter memories of when American food giant Kraft abandoned jobs pledges after buying Cadbury in 2010.

The committee's Labour chairman Adrian Bailey said Pfizer's track record of buying foreign firms and closing them down "gives no confidence that they will deliver on the assurances that we have made".

Mr Read said the new £150bn firm would be able to bring better products to patients with improved treatments for conditions such as cancer, heart disease and diabetes.

If it goes ahead then it would be the biggest ever foreign takeover of a British company.

AstraZeneca has refused to engage with the Viagra makers on the takeover and dismissed the offer as "inadequate".

Under takeover rules, having indicated its interest to shareholder, Pfizer now has until May 26 to make a formal offer, although one is widely expected later this week.

David Cameron has come under pressure from Labour to subject the takeover to a public interest test.

A public interest test is usually reserved for matters of national security or financial stability and it would be difficult to argue as these rules were not applied for takeovers of British car manufacturers.

More follows ...

16.01 | 0 komentar | Read More

Moulton Fund Eyes Better Future For Kiddicare

By Mark Kleinman, City Editor

The investment fund headed by Jon Moulton, the City financier, is among a pack of bidders vying to win control of Kiddicare, one of the UK's biggest maternitywear retailers.

Sky News understands that Better Capital is one of the bidders through to the second round of an auction of the business, which is owned by the supermarket chain Wm Morrison.

The sale has attracted the interest of a number of so-called turnaround specialists, understood to include Hilco, the owner of HMV, R Capital and Endless, whose investments include Crown paints.

Amazon and Tesco are also said to have requested access to information about Kiddicare, although analysts have said that it is unlikely that either will make a formal offer.

Morrison's, which has been hit by a prolonged slump in trading, is expected to have to pay a multimillion dowry to the acquirer of Kiddicare.

In March, Morrison's said that Kiddicare was "a business whose performance has been disappointing and which is no longer strategic", adding that it had taken a £163m charge on the maternitywear specialist.

A sale could include all ten of the stores operating under the Kiddicare name, or could involve the closure of some of the sites prior to a deal being completed, insiders said.

Morrison's bought Kiddicare for £70m in 2011, arguing that the online business would aid its own transition to becoming a multi-channel retailer.

It then acquired ten failed former Best Buy electrical goods stores set up as part of a joint venture with Carphone Warehouse.

The supermarket chain received a £40m payment from Carphone because of the stores' onerous rent obligations, but the shops have struggled, while Morrisons' subsequent technology agreement with Ocado has rendered the use of Kiddicare's systems redundant.

The Kiddicare auction, which is being handled by Rothschild, the investment bank, comes weeks after Dalton Philips, Morrison's chief executive, waived his annual bonus for last year following the announcement of a £176m loss.

The company also warned that profits in 2014 would be about half the level they reached in 2012.

Last week, it said that trading had deteriorated further, although it is fighting back against fierce competition from the likes of Aldi and Lidl with a price-cutting campaign across 1200 products.

In addition to its slump into the red, Morrison's has recently been forced to deal with the theft of personal data from 100,000 of its employees.

A Morrisons spokesman declined to comment, while none of the turnaround funds could be reached for comment on Monday.

16.01 | 0 komentar | Read More

CBI Says Home Loans To Rise In Early 2015

Homeowners will come under more pressure early next year with the prediction that interest rates are to rise.

According to the Confederation of British Industry (CBI), the UK base rate will jump from the current historic low of 0.5% to 0.75% in the first quarter.

The CBI had earlier predicted a rate rise in the third quarter of 2015.

The Office for National Statistics said that in 2010 more than 9 million UK households had property debt.

The Council of Mortgage Lenders said that in February 22,200 first-time buyers received loans, 26,200 home-movers and 14,300 buy-to-let applicants.

CBI director-general John Cridland said property values were expected to rise by 8.2% in 2014 and 5.1% next year, prompting more fears of prices overheating.

"We have to remain alert to the risks posed by unsustainable house price inflation, and the (Bank of England) Financial Policy Committee is poised to act when necessary," he said.

"Housing has come back under the spotlight as annual house price inflation figures have reached double digits on some measures.

"While housing transactions are still running almost 30% below their last peak in 2006, they are picking up steadily."

London house prices have climbed a quarter above their pre-crash peak, partially prompted by foreign buyers in the prime property segment.

"Outside London, prices remain around 2% below peak figures with an even greater difference when you move outside the South East," Mr Cridland said.

The predictions come amid increased scrutiny of mortgage applications by lenders, in response to a market review by the Financial Conduct Authority.

Mortgage providers are seeking reassurance that applicants will have sufficient income to cover any potential rises in interest rates.

The FCA said new rules were "hardwiring common sense" into the market.

Mortgage broker firm John Charcol said families are the most likely to face scrutiny under the new regime, as their outgoings were potentially greater.

Spokesman Ray Boulger said: "The most common reason to knock people back is childcare costs.

"It's particularly bad if people have more than one child or if they are under school age."

16.01 | 0 komentar | Read More

Insider Trading 'Scam' Uncovered On LinkedIn

An alleged insider trading scam was busted when a LinkedIn connection was spotted between a senior bank boss and a government statistics employee.

National Australia Bank (NAB) director Lukas Kamay is accused of making bets on the Australian dollar just seconds before announcements of economic news, the Sydney Morning Herald reported.

Foreign exchange broker Owen Kerr spotted that Kamay was LinkedIn friends with an employee at Australia's Bureau of Statistics called Chris Hill, and was making money from inside information.

Mr Kerr said: "That was when it suddenly clicked that this guy was only trading ABS data and had a man on the inside.

"(The trades) were really an all-or-nothing bet and not something someone would normally rationally make."

He tipped off police and a nine-month surveillance operation was launched, which ended with the arrests of Kamay and Hill on Friday.

Hill is alleged to have provided confidential information - including housing and building approval figures - before it was released at 11.30am on selected days.

It has been reported that up to $7m AUS (£3.9m) was made by Kamay, who allegedly offered Hill a bribe of $50,000 AUS (£27,750) to disclose the inside information.

Kamay now faces seven criminal charges.

The assets of both men have been frozen, including Kamay's luxury apartment.

NAB has pointed out that "no NAB money, no NAB customer money or NAB systems" was used in the alleged scam.

16.01 | 0 komentar | Read More

Amazon Paid £10m Tax On £4.3bn UK Sales

Online retailer Amazon paid a UK corporation tax bill of £10m last year, despite sales in Britain reaching £4.3bn, it has been revealed.

Amazon.co.uk saw a 56% rise in profit to £17m during 2013, along with a 13% rise in UK revenue.

The company reports most of its European profit through a tax-exempt Luxembourg partnership.

Amazon has faced previous criticism for its complex tax structures, through which sales are logged in the European location despite goods being sourced, stored and sold within Britain.

In a statement to Sky News, the company insisted it paid all applicable taxes in jurisdictions that it operates within.

It said: "Amazon EU serves tens of millions of customers and sellers throughout Europe from multiple consumer websites in a number of languages dispatching products to all 28 countries in the EU.

"We have a single European headquarters in Luxembourg with hundreds of employees to manage this complex operation."

Other large multinationals, including Google and Starbucks, have been grilled alongside Amazon by MPs on the Public Accounts Committee.

Amazon.co.uk is funded by its Luxembourg-based affiliates.

Executies from Amazon, Google and Starbucks were grilled by MPs in 2012

The rates of such inter-company remuneration are usually agreed with the UK tax authority, but HM Revenue and Customs (HMRC) declined to comment on the tax paid by Amazon.

In 2013, intercompany fees paid to Amazon.co.uk Ltd rose 40% to £449m.

This led to Amazon's current tax bill for 2013 being its biggest ever.

"It's possible Amazon may have come under pressure from HMRC to adjust their inter-company agreements," Prem Sikka, Professor of Accounting at Essex University, told Reuters.

16.01 | 0 komentar | Read More

'Zombie Bank Accounts Cost Savers £4bn A Year'

Savers are losing more than £4bn pounds a year by having their money in poor-paying accounts, according to consumer group Which?

The group found more than a third of accounts closed to new customers, dubbed 'zombie accounts', paid 0.5% interest or less.

This compares with the best-paying Isa savings accounts which offer up to 2.75%.

Three-quarters of people surveyed thought banks did not do enough to help savers get a good deal.

Which? also found more than a third of people had not switched their main savings account because they did not think it would make a difference.

The group's analysis suggested there was a difference of £4.3bn a year between the amount savers would have received if they were all paid the average interest rate and the amount they would have received if they all had money in a top-paying account.

According to Which?, 82% of the 1,999 easy access savings accounts and cash Isas on the market in March were zombie accounts.

Nearly four in 10 (39%) of those accounts paid 0.5% interest or less and 16% paid 0.1% or less.

Which? said the savings market could be "confusing", with some accounts paying very different rates of interest despite having similar names.

It wants banks to move people's money into one default easy access or Isa account at the end of fixed terms.

Which? executive director Richard Lloyd said: "With many savers never switching because they don't think it will make a difference, savings providers should do more to help their customers get the best deal.

"They need to be clear about interest rates, let people know when bonus rates come to an end and make it easier for people to switch Isas."

Andrea Leadsom, the economic secretary to the Treasury, said: "The Chancellor announced a number of measures to help and support savers, notably increasing the cash Isa limit to £15,000, at this year's Budget.

"These changes will give savers more flexibility and choice."

16.01 | 0 komentar | Read More

Billionaire Britain: New Nation Of Super-Rich

Top 25 Billionaires In Britain

Updated: 12:54am UK, Sunday 11 May 2014

The top 25 names on the 2014 Sunday Times Rich List, including their total fortune and the change from last year.

1. Sri and Gopi Hinduja, £11.9bn, up £1.3bn

2. Alisher Usmanov, £10.65bn, down £2.65bn

3. Lakshmi Mittal and family, £10.25bn, up £250m

4. Len Blavatnik, £10bn, down £1bn

5. Ernesto and Kirsty Bertarelli, £9.75bn, up £2.35bn

6. John Fredriksen and family, £9.25bn, up £450m

7. David and Simon Reuben, £9bn, up £719m

8. Kirsten and Jorn Rausing, £8.8bn, up £3.691bn

9. Roman Abramovich, £8.52bn, down £780m

10. The Duke of Westminster, £8.5bn, up £700m

11. Galen, Hilary and George Weston and family, £7.3bn, up £650m

12. Charlene de Carvalho-Heineken and Michel de Carvalho, £6.365bn, down £635m

13. Mohamed Bin Issa Al Jaber and family, £6.16bn, up £1.645bn

14. Carrie and Francois Perrodo and family, £6.14bn, new

15. German Khan, £6.08bn, new

16. Sir David and Sir Frederick Barclay, £6bn, up £3.65bn

17. Hans Rausing and family, £5.9bn, up £1.18bn

18. Nicky Oppenheimer and family, £4.57bn, up £785m

19. Earl Cadogan and family, £4.2bn, up £525m

20. Joseph Lau and family, £4.03bn, down £570m

21. Sir Philip and Lady Green £3.88bn, no change

22. Denis O'Brien, £3.854bn, up £486m

23. Mike Ashley, £3.75bn, up £1.45bn

24. Sir Richard Branson and family, £3.6bn, up £86m

25. Idan Ofer, £3.43bn, new

16.01 | 0 komentar | Read More