Osborne Should Heed IMF House Market Warning

What would you like first: the good news or the bad?

Well, if you're George Osborne, the good news is that the long battle with the International Monetary Fund - the one that began last year when chief economist Olivier Blanchard told Sky News the Chancellor was "playing with fire" on economic policy - is over.

We knew as much in Washington earlier this spring, when Blanchard acknowledged that the Fund's forecasts for Britain had been overly pessimistic.

But today the saga has come to its end, with the Fund also giving the Chancellor's fiscal plans (those precise plans Blanchard had criticised) a ringing endorsement.

"The planned fiscal adjustment this year is appropriate," the IMF says in its annual survey of the UK economy - the so-called Article IV report.

This is a shift from last year, when the Article IV recommended that the Chancellor bring forward spending plans to try to boost the economy. So cause for celebration at the Treasury?

Not altogether, for there is also some bad news. The criticisms of the Treasury's tax-and-spend plans may have dissolved away, but they have been replaced with concerns of another variety: about the housing market.

Such concerns are hardly new: the European Commission already recommended earlier this week that the Government take action to prevent a housing bubble.

However, the Fund is a touch more authoritative - and more specific. Its suggestions are as follows: The Bank of England should leave interest rates on hold for the time being; it should impose limits on how much mortgage companies can lend homebuyers in relation to their incomes; it should also consider outright caps on loan-to-income levels and loan-to-value ratios.

On top of this, the Government should "consider whether [Help to Buy] should be modified or even remains necessary for the full three years of the policy. And as the volume of high-LTV transactions rises, the FPC will need to evaluate if the program is contributing to financial risks."

Like the Commission (and, well, every economist out there), it suggests that Britain needs to build more homes. However, there are no silver bullets in this enterprise, and it acknowledges that all of the above "can only be temporary palliatives to an underlying problem."

The best it can suggest is that the Government reconsider "unnecessary constraints on brownfield and greenfield developments; tax policies that discourage the most economically-efficient use of property; and underdeveloped rental markets with relatively short lease terms."

Some might see the final point as a note of support for the rental reforms recently suggested by Ed Miliband. The problem for politicians of every stripe is that the housing market's structural problems are no secret: but mending them will take many years.

Reforms to the planning system have been desperately needed for decades, but only now are they being implemented; changes to green belt regulations are an economist's dream but a local politician's nightmare – so are unlikely to be implemented before the election, if at all.

However, it is clear that the Chancellor would be foolhardy to ignore the tone of the IMF's report. For there is a growing risk of a housing bubble, and with it the political risk that George Osborne could be remembered not as the austerity Chancellor who got it right, but the man who generated yet another housing market bust.

16.01 | 0 komentar | Read More

IMF Sees Housing Market Threat To Recovery

Osborne Should Heed IMF House Market Warning

Updated: 11:57am UK, Friday 06 June 2014

By Ed Conway, Economics Editor

What would you like first: the good news or the bad?

Well, if you're George Osborne, the good news is that the long battle with the International Monetary Fund - the one that began last year when chief economist Olivier Blanchard told Sky News the Chancellor was "playing with fire" on economic policy - is over.

We knew as much in Washington earlier this spring, when Blanchard acknowledged that the Fund's forecasts for Britain had been overly pessimistic.

But today the saga has come to its end, with the Fund also giving the Chancellor's fiscal plans (those precise plans Blanchard had criticised) a ringing endorsement.

"The planned fiscal adjustment this year is appropriate," the IMF says in its annual survey of the UK economy - the so-called Article IV report.

This is a shift from last year, when the Article IV recommended that the Chancellor bring forward spending plans to try to boost the economy. So cause for celebration at the Treasury?

Not altogether, for there is also some bad news. The criticisms of the Treasury's tax-and-spend plans may have dissolved away, but they have been replaced with concerns of another variety: about the housing market.

Such concerns are hardly new: the European Commission already recommended earlier this week that the Government take action to prevent a housing bubble.

However, the Fund is a touch more authoritative - and more specific. Its suggestions are as follows: The Bank of England should leave interest rates on hold for the time being; it should impose limits on how much mortgage companies can lend homebuyers in relation to their incomes; it should also consider outright caps on loan-to-income levels and loan-to-value ratios.

On top of this, the Government should "consider whether [Help to Buy] should be modified or even remains necessary for the full three years of the policy. And as the volume of high-LTV transactions rises, the FPC will need to evaluate if the program is contributing to financial risks."

Like the Commission (and, well, every economist out there), it suggests that Britain needs to build more homes. However, there are no silver bullets in this enterprise, and it acknowledges that all of the above "can only be temporary palliatives to an underlying problem."

The best it can suggest is that the Government reconsider "unnecessary constraints on brownfield and greenfield developments; tax policies that discourage the most economically-efficient use of property; and underdeveloped rental markets with relatively short lease terms."

Some might see the final point as a note of support for the rental reforms recently suggested by Ed Miliband. The problem for politicians of every stripe is that the housing market's structural problems are no secret: but mending them will take many years.

Reforms to the planning system have been desperately needed for decades, but only now are they being implemented; changes to green belt regulations are an economist's dream but a local politician's nightmare – so are unlikely to be implemented before the election, if at all.

However, it is clear that the Chancellor would be foolhardy to ignore the tone of the IMF's report. For there is a growing risk of a housing bubble, and with it the political risk that George Osborne could be remembered not as the austerity Chancellor who got it right, but the man who generated yet another housing market bust.

16.01 | 0 komentar | Read More

White Van Woman 'Held Back By Sexism'

By Clare Fallon, Sky News Reporter

Campaigners are calling for more help to encourage women to enter traditionally male professions, including plumbing, building and plastering.

Despite headlines about the rise of the so-called white van woman and claims a record number of females are working in the trades, industry experts say the proportion is still worryingly low. 

According to Women and Manual Trades, a national organisation which offers support to women, only around 1% of people in skilled trade occupations are female. 

Campaigners say part of the problem is sexist abuse still suffered by some women working in male-dominated professions. 

Hattie Hasan set up Stopcocks, an all-woman plumbing company, after working in the profession for more than two decades. 

She says sexist attitudes are still a problem.

"Unfortunately even after my own 25 years in plumbing things haven't changed much ... girls are still not encouraged to get into the trades.

"Firstly they're not encouraged at school. When I was at school, I just wanted the boys to fancy me, I didn't want to be a plumber and I think that's the pressure for most girls.

Hattie Hassan, who set up her own plumbing firm, calls for more role models

"The second thing is that there are not enough role models. The more female plumbers there are the more there will be because the more people see us the more they'll realise it is a possibility for them.

"There are a lot of things that people say women can't do such as carrying heavy things but health and safety rules mean even if you're a bloke you still can't carry over a certain amount of weight.

"Also I think people seem to forget that women carry babies ... and women do that on a regular basis so I don't think there are barriers where heavy things are concerned."

She added: "The barriers for women are that once women have trained where do they go? The opportunities for getting employment in plumbing are not as widespread as they used to be. It's difficult for lads coming out, but it's even more difficult for girls.

"So really the only route for them is self-employment."

However, there are signs things may improve in the future.

Training centres where construction skills are taught report an increase in the number of women enrolling. 

At Access Training in South Wales, women account for one in 10 of those signing up for courses including plastering, plumbing and electrics.

Mary Henderson swapped her admin job for plumbing

Mary Henderson quit her office job to retrain as a plumber, saying she was fed up being patronised by workmen she had hired. 

"I feel like it's a useful thing to have a trade in this competitive, career-driven industry - it just made sense.

"I used to work in admin, from when I left school, and basically I had a lot of trouble with my own bathroom ... I wanted to do something more practical so plumbing just seemed to pop out at me."

She believes there should be more encouragement for women to get into the trades.

"I don't think practical things are pushed at children leaving education  It's not gender specific, it's just something that boys tend to fall into whereas girls are pushed into the first job that comes and then it just rolls into admin.

"I think there should be more focus on school leavers. I think it's a really good thing to have a trade and it should be suggested to students because exams are forced on them and teachers can't afford to have an interest in what they do after that."

Although she is in a minority, Ms Henderson says she is content being a woman in a man's world.

"There is slight banter and it's a little less PC than what you find in an office, but to be honest I find that refreshing rather than threatening."

16.01 | 0 komentar | Read More

AA Races Towards £4bn Stock Market Listing

By Mark Kleinman, City Editor

The AA, Britain's biggest roadside recovery group, is poised to press ahead with a £4bn flotation despite a disappointing stock market debut from Saga, its sister company.

Sky News can reveal that Acromas Holdings, the AA's parent, could announce plans for the listing through a process known as an accelerated initial public offering as soon as Friday.

The deal will involve approximately 10 City institutions acting as cornerstone investors, each of which will agree to acquire a substantial number of shares in the AA.

The fund managers expected to back the flotation, which will value the AA's equity at roughly £1.3bn, include Aviva Investors, Blackrock, JP Morgan Asset Management, Lansdowne Partners and Legal & General Investment Management.

A source said on Thursday that details of the share sale were still being finalised and that there was a chance that the deal could still be aborted.

Bob MacKenzie, a former boss of Green Flag, the car insurance provider, has been lined up to act as the company's new chairman, they added.

Deutsche Bank has been brought in to advise the company, while Cenkos Securities is acting as broker overseeing the recruitment of the major investors.

Acromas is a private equity-backed group which continues to own a majority stake in Saga, the financial services and travel specialist for the over 50s.

Shares in Saga closed up 1.6% on Thursday but have disappointed since listing last month.

Some institutions approached by Cenkos about participating in the AA deal were deterred by the motor insurer's £3bn debt mountain, which they believed was inappropriately high for a public company.

The AA, which generates hundreds of millions of pounds of free cashflow every year, is expected to outline a plan for reducing its borrowings as part of of its listing prospectus.

If the listing goes ahead, the AA could make its own public debut by the end of June, completing a change of ownership for one of the UK's biggest membership organisations.

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

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

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

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

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

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

Acromas is owned by Charterhouse, CVC Capital and Permira, three of the UK's biggest private equity groups. They acquired the AA from Centrica, the owner of British Gas nearly a decade ago, before putting it under the same corporate ownership as Saga.

The AA's principal rival, the RAC, is also racing towards the stock market, with Carlyle, its private equity owner, working on plans for a listing.

An Acromas spokesman declined to comment.

16.01 | 0 komentar | Read More

Vodafone Blows Whistle On State Snooping

By Tom Cheshire, Technology Correspondent

Security services should not be snooping on people's data just because it is technically possible, Vodafone has warned, in a report that reveals the global extent of government surveillance on the operator's customers.

It called on authorities to submit to "regular scrutiny by an independent authority", and to "amend legislation which enables agencies and authorities to access an operator's communications infrastructure without the knowledge and direct control of the operator".

In some countries, governments have "direct" and "permanent access" to Vodafone's infrastructure - so don't have to make an interception request.

"In our view, it is governments - not communications operators - who hold the primary duty to provide greater transparency on the number of agency and authority demands issued to operators," Vodafone says.

But the company made clear it would continue to comply with the requests, rather than cease its operations in a country: "If we do not comply with a lawful demand for assistance, governments can remove our license to operate, preventing us from providing services to our customers."

The report breaks down lawful intercept requests and communications data request for the 29 countries in which Vodafone operates.

Nine governments already publish this information. The UK government made 2,760 interception requests and 514, 608 communications data requests to all mobile phone operators in 2013.

By comparison, Italy made 139.962 interception requests in total and 605,601 communications requests to Vodafone alone. In the US, Verizon said it received 321,545 requests for customer information. 

Some of the figures are being disclosed by Vodafone for the first time, including those for Spain and Tanzania.

But several countries refused to reveal the number of requests they made, including Egypt, India, Qatar, Romania, South Africa and Turkey.

The report also lays bare just how much communications data - often referred to as metadata - can reveal about a person.

"It is possible to learn a great deal about an individual's movements, interest and relationships from an analysis of metadata … In many countries, agencies and authorities therefore have legal powers to order operators to disclose large volumes of this kind of communications data."

Vodafone said it was publishing the report because "questions have been asked about the role of communications operators such as Vodafone in support of those activities".

16.01 | 0 komentar | Read More

Game Makes Market Return After 2012 Collapse

Video games retailer Game Digital is back on the stock market, two years after its collapse into administration and subsequent rescue.

Game, owned by US hedge fund Elliott Advisors, announced ahead of conditional trading this morning that the offer price for its flotation would raise gross proceeds of £121m - giving the firm a market value of £340m.

The offer was said to be fully subscribed.

The Initial Public Offering on the London Stock Exchange marked a new chapter for Game after the UK and Spanish arms were rescued from administration.

Game collapsed in 2012 with shareholders receiving nothing while 2,000 staff lost their jobs.

It was a casualty of not only the-then slump in high street spending but also a business model that left it with high rent bills and little access to the digital marketplace.

A number of key suppliers, including Electronic Arts, had refused to distribute major titles to the chain over cash flow fears.

Elliot Advisors has since slashed 300 poorly-performing stores and its new management team, led by former HMV executive Martyn Gibbs, has been credited with boosting sales and profits.

Mr Gibbs said today: "Game Digital is a profitable and cash generative business with a great team, strong supplier partnerships and exciting digital growth opportunities.

"These fundamentals have enabled us to attract quality investors who we welcome into our business.

"We are a truly specialist retailer, with a loyal customer base, operating in a growing market. Our supplier partners are producing increasingly advanced  gaming content, for which we will continue to develop and facilitate new ways to buy and play."

However, there was concern raised over the timing of the flotation and Game's past history.

Speaking after an hour's trading, Mark Priest, head of index and equity markets at ETX Capital, told Sky News: "It's come in at the offer price and not done a great deal.

"It's once bitten twice shy with a company that has been in administration in the past.

"You look at yesterday's 40% fall at ASOS and the shine has been slightly taken off online retailers. I think we're going to see the same with this stock."

16.01 | 0 komentar | Read More

Euro Bank Set For Negative Interest Rates

By Ed Conway, Economics Editor

The European Central Bank is expected to become the first major central bank to introduce negative interest rates, as it seeks to fight off the threat of deflation.

The Frankfurt-based institution is widely-anticipated to cut the rate it pays on deposits from high street banks from the current rate of zero to around -0.1%, meaning it would charge them to keep money on deposit.

The move comes amid growing worries about the long-term economic health of the Eurozone.

Although many economists agree its financial system has now passed its crisis phase, there are concerns that it could be heading towards a lengthy period of deflation, marked by falling shop prices and wages.

ECB president Mario Draghi may consider Quantitative Easing

Inflation - the measure of annual price increases across the economy - was running at just 0.5% in May, well below the ECB's 2% target.

In previous speeches, the ECB's president, Mario Draghi, signalled that he would be prepared to take further measures to prevent it dropping down any more.

The ECB would not be the first central bank to experiment with negative interest rates - Sweden and Denmark have attempted similar schemes - but it would be by far the largest.

Other central banks, including the Federal Reserve and the Bank of England, have briefly contemplated such a measure, but have opted against them, for fear of damaging the financial system.

Economists said the argument in favour of negative rates would be to encourage banks to lend out cash to businesses and households rather than hoarding it at the central bank.

However, Marchel Alexandrovich of Jeffries added that negative rates alone may not be enough.

He said: "With the negative deposit rate so heavily discounted already, what may ultimately matter much more tomorrow is whether Draghi goes beyond what is generally expected and 'surprises' the markets.

"And in particular, whether he signals the ECB's readiness to do more and introduce full blown Quantitative Easing."

Thus far, Mr Draghi has stopped short of Bank of England style QE - buying up government bonds with created money - but he has dropped a number of hints in recent months that it might soon be on the menu.

16.01 | 0 komentar | Read More

City Fund Manager Calls For Tesco Boss To Go

By Mark Kleinman, City Editor

One of the City's top fund managers has urged Tesco to replace Philip Clarke, its chief executive, or face an accelerated period of "managed decline".

Speaking to Sky News, Robert Talbut, chief investment officer of Royal London Asset Management (RLAM), said that this week's disappointing trading update from Britain's biggest retailer meant that a change in its leadership team was necessary.

Tesco announced on Wednesday that like-for-like sales in the first quarter of its financial year had fallen 3.7%, a figure that Mr Clarke described as the worst he could remember during nearly 40 years with the company.

"My view is that the business needs a management team who will implement more bold actions in order to restart growth. At present we appear to have managed decline," Mr Talbut said.

Asked whether his view was that Tesco should seek to replace Mr Clarke, he said that it was.

While several institutional investors have been quoted anonymously calling for Mr Clarke to step down, Mr Talbut is among the first to do so publicly.

RLAM is not currently a major Tesco shareholder, partly because of its concerns about the company's strategy and performance, although as chairman of the investment affairs committee at the Association of British Insurers, Mr Talbut's views carry significant weight in the City.

Mr Clarke said on Wednesday that the most recent quarter had been one of significant progress but said turning around its performance would not take place in the short term.

"Our accelerated plans are making a real difference for customers and we are more competitive than we have been for many years. Since February, we have cut prices on the products that matter most, cut home delivery charges and made Grocery Click & Collect free.

"As expected, the acceleration of our plans is impacting our near-term sales performance.

"The first quarter has also seen a continuation of the challenging consumer trends in the UK, reflecting still subdued levels of spending in addition to the more structural changes taking place across the retail industry. We are determined to lead in this period of change, building long-term customer loyalty and positioning the business to win in the multichannel era."

Sir Richard Broadbent, Tesco's chairman, is also facing criticism for his stewardship of the board following the recent resignation of Laurie McIlwee, the company's finance director.

Sources said that Tesco directors were due to gather in Thailand next week for a board meeting, with the retailer's annual meeting scheduled for later this month.

Tesco could not be reached for comment.

16.01 | 0 komentar | Read More

Asos Shares Slump 40% After Profit Warning

Shares in the online fashion retailer Asos fell 40% in early trading on Thursday after it issued a profit warning.

The company - a darling for investors since its flotation in 2001 - had seen its value double in the 12 months preceding an announcement last March, which sparked a sell-off, that it planned to invest heavily in its infrastructure to help meet future demand.

In Thursday's unexpected trading update, ASOS said it would be less profitable this year due to higher promotional activity, the strong rate of growth in low-margin British products and the hit from the strong pound.

Price correct at 09:24 BST

Chief executive Nick Robinson said: "Whilst our profit performance for this financial year is not what we had hoped for due to an unusual combination of factors, our accelerated investment in technology and infrastructure to support our £2.5bn sales ambition is progressing and capex (capital expenditure) remains within guided levels."

The firm forecast its operating margin for the current financial year to come in at around 4.5% from around 6.5% due to strong sales in Britain where its margins are generally lower because of strong competition.

Retail sales in Britain in the three months to the end of May were up 43% while international sales, which tend to sell at a higher margin, were up 17% but hit by the strong pound.

The resulting stock sell-off eased as morning trading continued, with shares trading 30% lower though it still meant more than £1bn had been wiped from the value of Asos.

16.01 | 0 komentar | Read More

Pensions Changes At Centre Of Queen's Speech

By Jon Craig, Chief Political Correspondent

Sweeping reforms to boost pensions for millions of people will be the centrepiece of a Queen's Speech outlining new laws for the final year of the Coalition Government.

Changes in George Osborne's Budget will end the requirement for pensioners to buy an annuity to provide a guaranteed income and legislation is also expected on collective workplace pension schemes.

Stung by allegations of a "zombie Parliament" and claims that the coalition has run out of steam, David Cameron and Nick Clegg claim the programme will be "unashamedly pro-work, pro-business and pro-aspiration".

But there are likely to be only around a dozen major Bills, with the bulk of the 2010 Coalition Agreement now enacted and the Conservatives and Liberal Democrats keen to differentiate themselves from each other.

In a coalition bid to rebuild trust with voters after a battering at the polls last month, the Queen's Speech will include a Bill giving voters the power of recall of MPs, with a by-election being triggered if 10% of voters sign a petition.

Another pledge with far-reaching implications for millions will be a 5p charge on plastic bags in supermarkets, pledged by Mr Clegg in his 2013 Liberal Democrat party conference speech.

This will not require primary legislation, because it is already provided for in the 2008 Climate Change Act and therefore will only need the passing of regulations in Parliament to enforce it.

The major Bills expected to feature are:

:: "Tax-free childcare" worth up to £2,000 per child each year, another move championed by the Liberal Democrats

:: Extra legal protection for people carrying out good deeds against liability for health and safety risks

:: A so-called "Cinderella law", outlawing emotional neglect of children by their parents

:: A hugely controversial Bill to authorise fracking, the exploitation of shale gas

:: Regulation of pubs, highlighted by Mr Clegg and Vince Cable in their pub photocall on the eve of the Queen's Speech.

Last year's State Opening of Parliament

In their joint statement, Mr Cameron and Mr Clegg said the speech marks "the next big step in our long-term plan for Britain. Its aim: to secure the recovery for our country".

They added: "Its guiding principle: to back everyone who wants to get on in life.

"We may be two parties, with two different philosophies, but we understand one thing: countries rise when their people rise. So this Queen's Speech is unashamedly pro-work, pro-business and pro-aspiration."

On the pensions legislation, they said: "By no longer forcing people to buy an annuity, we are giving them total control over the money they have put aside over their lifetime and greater financial security in their old age."

And on the coalition's future in the final year before the election, they said: "Four years on, our parties are still governing together and still taking bold steps."

But Labour leader Ed Miliband said: "We would have a Queen's Speech with legislation which would make work pay, reform our banks, freeze energy bills and build homes again in Britain."

16.02 | 0 komentar | Read More

Tesco Sales Slump Continues In First Quarter

Tesco has reported a 3.8% fall in like-for-like sales in the UK - its worst quarterly performance under chief executive Philip Clarke.

The drop in sales also marked the third successive quarterly decline.

The first quarter UK figure, which excludes fuel and VAT, was announced 24 hours after separate industry statistics charted a continuing decline in market share for the country's biggest supermarket chain.

But Tesco moved to paint a positive picture of trading as it intensifies efforts to stop customers flocking to discounters.

Mr Clarke, who is two years into a multi-billion pound turnaround plan, blamed price cuts and a weak food market for the core UK performance but said its improved offering was making a "real difference for customers".

He said: "We are pleased by the early response to our accelerated efforts to deliver the most compelling offer for customers.

"We expect this acceleration to continue to impact our headline performance throughout the coming quarters and for trading conditions to remain challenging for the UK grocery market as a whole," he added.

Tesco, like its main rivals Asda, Sainsbury's and Morrisons, is facing a squeeze from discounters Aldi and Lidl.

It has responded by investing £200m in price cuts on "the products that matter most" - and Mr Clarke said sales volumes rose 28% in those areas during the quarter.

Tesco also hailed lower delivery and service charges for online delivery and enhanced rewards through its Clubcard Fuel Save initiative as measures that would boost loyalty.

The retailer said it had refreshed a further 100 stores in the period and expected a further 200 to be improved by the end of its first half - admitting the disruption will have a negative impact on sales.

While Tesco's continuing sales woes have held down its share price since Mr Clarke took over in 2011, he has repeatedly brushed off speculation about his future, despite little sign his £1bn turnaround plan is bearing fruit.

Tesco stock rose 1.3% in early trading on the FTSE 100 on Wednesday, with analysts saying the first quarter performance was slightly better than had been expected by many forecasters.

16.02 | 0 komentar | Read More

Mobile Phone Call Costs Set To Fall Further

The telecoms regulator is proposing further cuts to charges imposed by mobile phone operators for connecting calls to rival networks.

Ofcom said mobile termination rates - as they are known - would drop to just half a penny per minute by April 2017 under its plans.

The proposal, which should result in cheaper bills for customers, follows earlier cuts which saw rates falling from about 25p a minute in 1995 to 0.8 pence currently.

A decade ago, termination rates, which apply to calls from landlines as well as mobiles, were about 14p a minute.

This wholesale charge is part of the cost of delivering calls that providers consider when they set retail prices for consumers.

Ofcom Competition Policy Director Brian Potterill said: "The average cost of a call bundle has fallen from £40 to around £13 in real terms over the last ten years.

"We want to ensure mobile users continue to benefit from competition, which will deliver affordable services in the years ahead."

Ofcom, which said its plans would be finalised by March 2015 following a consultation period, confirmed the rates fall would affect all operators including the 'big four' of EE, Vodafone, O2 and  Three.

16.02 | 0 komentar | Read More

Cyber Attack 'To Hit In Next Two Weeks'

Computer users are being urged to protect their machines from malware which allows hackers to steal financial data.

British investigators have been working with the FBI to trace the hackers behind ongoing attacks, and the botnet system used by the targets has been temporarily disrupted.

But the UK's National Crime Agency says people have just two weeks before the system could be functioning again, and urged people to protect their computers from an expected "powerful computer attack".

Bogachev is said to use the online monikers 'lucky12345' and 'slavik'

Between 500,000 and one million machines have so far been infected worldwide, according to court documents.

US officials have accused a Russian hacker of masterminding the scam - and prosecutors say those involved have already raked in more than $100m (£60m).

The NCA is urging people to back up important files and make sure their security software and operating system are up to date.

Two pieces of malware software known as GOZeuS and CryptoLocker are responsible for the alert.

They typically infect a computer via attachments or links in emails.

If a user clicks on GOZeuS, it silently monitors activity and tries to capture information such as bank details.

"(The links or attachments) may look like they have been sent by genuine contacts and may purport to carry invoices, voicemail messages, or any file made to look innocuous," the NCA warned.

"These emails are generated by other victims' computers, who do not realise they are infected, and are used to send mass emails creating more victims."

The Cryptolocker malware is activated if the first attack is not profitable enough.

It locks a user from their files and threatens to delete them unless a "ransom" of several hundred pounds is paid.

Some 234,000 machines were hit by Cryptolocker - bringing in $27m (£16m) in payments - in its first two months, the US Justice Department said.

Computers running Windows software are said to be most vulnerable

More than 15,500 computers in the UK are infected and "many more" are at risk, according to the NCA.

Stewart Garrick, a senior investigator with the NCA, told Sky News the threat was mainly against individuals or businesses running Windows-based computers.

Thirty-year-old Russian Evgeniy Bogachev is the alleged leader of the gang behind the attacks, FBI executive assistant director Robert Anderson told a news conference in Washington DC.

US and other agents seized servers around the world this weekend and freed 300,000 computers from the infection.

"They (the FBI) have disrupted the network and taken control of it," said Sky's Tom Cheshire.

"So when the hackers try to speak to the computer that's affected, that line of communication has been cut off.

"You now have a chance to clean up. The first thing you should do is update your operating system - especially if you're on Windows, then look to scan your computer for viruses and it should be able to find it."

For more information visit www.getsafeonline.org/nca.

16.01 | 0 komentar | Read More

Mortgage Rules 'Hit Housing Market Activity'

UK house prices have risen for the thirteenth month in a row but activity may be slowing as greater restrictions are placed on mortgage lending.

The findings, released by Nationwide in its monthly house price index, recorded a 0.7% increase in average prices in May.

Nationwide said it meant that the annual pace of price growth edged up to 11.1% from 10.9% the previous month - its strongest level since June 2007 - with first-time buyers driving the recovery.

The report was released against a backdrop of fierce debate about whether the market is overheating - particularly in London.

Mr Cable will hold talks with housebuilders on Tuesday

Sky News learned on Monday that the Business Secretary Vince Cable and the Chancellor were separately to meet the bosses of major building firms this week over the continuing problem of historically low supply failing to meet the need for new homes.

Separate figures released on Tuesday morning also raised fears the housing industry was struggling to rebuild itself in the wake of the financial crisis to match demand, with activity in the construction sector measured by Markit at a seven-month low in May.

The European Union also called on the UK to build more properties to help stabilise the market.

Nationwide said it believed the biggest factor behind the steep rise in property prices was the improving economy.

Its chief economist Robert Gardner said: "There have been tentative signs that activity in the housing market may be starting to moderate, with mortgage approvals in April around 17% below January's high.

"It is too early to say whether nationally this is indicative of a cooling trend in the wider market.

"The slowdown may partly be the result of the introduction of Mortgage Market Review (MMR) measures, which may take a few months to bed down.

"The underlying pace of activity should become more evident as we move through the summer months and the impact of MMR becomes clearer.

"However, with mortgage rates close to all-time lows and labour market conditions continuing to improve, underlying demand for homes is likely to remain strong."

Nationwide believed first-time buyers were driving the recovery, though the controversial Help to Buy scheme was unlikely to be the biggest factor behind the surge.

Mr Gardner continued: "First-time buyers accounted for 48% of house purchase activity in March, a record high well above the long run average of 38%.

"Data from DCLG suggests that the Help to Buy scheme is providing support to first time buyers, who accounted for over 80% of Help to Buy loans to date.

"However, the modest numbers involved so far suggest that Help to Buy is unlikely to be the main factor behind the recent pickup in the wider housing market."

16.01 | 0 komentar | Read More

Europe Calls On UK Govt To Increase Taxes

The European Commission has urged the UK Government to raise taxes and rein in its Help To Buy scheme.

The European Union's executive body called on the Government to increase the amount it collects in taxes to help it cut the deficit, saying policy had so far been "heavily skewed" to spending cuts.

Setting out their 2014 economic policy recommendations for the UK, commissioners said the coalition should be "prioritising capital expenditure" to boost the "fragile" recovery.

Many of the recommendations concern the housing market, including a call for more houses to be built and for adjustments to Help To Buy, which many have warned is causing a potentially damaging housing bubble.

The "regressive" council tax system was also in the Commission's sights.

Mr Cameron has said the EU is "too bossy"

The Commission said: "At the moment, increasing property values are not translated into higher property taxes as the property value roll has not been updated since 1991 and taxes on higher value property are lower than on lower value property in relative terms due to the regressivity of the current rates and bands within the council tax system."

The Commission broadly praised action on extending childcare provision and reforming welfare, but said more must be done on apprenticeships and skills.

Recommendations on economic policy have been made for all countries. It comes after the European elections were dominated by anti-EU sentiment, with people protesting about the powers of the unelected European Commission.

Prime Minister David Cameron described the EU as "too big, too bossy, too interfering" last week, but a Treasury spokesman said the recommendations were "in line" with the Government's approach.

Mr Cameron is currently battling moves to appoint arch federalist Jean-Claude Juncker to president of the Commission, as he tries to renegotiate Britain's deal with the EU.

The Prime Minister reportedly warned at the weekend that the UK could quit the union if Mr Juncker was appointed.

The Commission's economic suggestions have provoked anger among politicians and some campaigners.

Matthew Elliott, chief executive of Business for Britain, said: "This is further evidence that the EU should be let nowhere near tax policy of its member states.

"Leaders in Brussels appear not have taken on board the resounding message from the recent elections that Britain wants less interference from the continent, not more."

 A Treasury spokesman said: "The Government's long-term economic plan is working, delivering economic security for hardworking people.

"The European Commission continues to support the UK Government's strategy including its commitment to deficit reduction. The Commission's recommendations are in line with the Government's approach."

16.01 | 0 komentar | Read More

Ian King Presents Sky News' New Business Show

By Ian King, Business Presenter

Business news should be for everyone. It affects everyone, after all, not just those who read the business pages avidly.

So I hope Ian King Live will demystify business, strip away the jargon and make the worlds of business, economics and markets accessible and understandable to as wide an audience as possible.

In the process, we will aim to bring Sky News viewers interviews with some of the biggest names in business, both from Britain and the rest of the world.

Ian King will present the show from The Gherkin, Monday to Thursday

There will be packages and graphics that will help clearly explain often complex subjects and the breaking news stories of the day, plus regular appearances from the unrivalled team of specialists in the Sky News team, such as Mark Kleinman, Ed Conway and Poppy Trowbridge.

Viewers will also get regular updates from Wall Street and business centres around the world.

And with the general election now less than a year away and the economy, jobs, the cost of living and the deficit all set to be key debating points, viewers can also expect plenty of interviews with the key voices in the campaign - as well as hearing from leading City experts who can help sort fact from fiction.

It all starts this Monday, 6.30pm, only on Sky News.

:: You can follow the programme on Twitter @SkyIanKingLive

16.01 | 0 komentar | Read More

Scots Independence: BAE Systems Chief's Fears

The boss of Britain's biggest defence company has become the latest business leader to warn against Scottish independence.

BAE Systems chief executive Ian King said that a "yes" vote would damage the "certainty and stability" necessary for investment.

Mr King's comments were made on a company blog, as the official campaign over independence was launched.

The defence giant currently employs 3,600 people in Scotland.

He said the company was pinning its hopes on an official decision for naval procurement, as it overhauls shipbuilding operations in Glasgow.

Mr King voiced concerns about staff pensions post-independence

Mr King said the company was "investing in facilities for the future" in Scotland "based on an expectation that the Government will make their major production decision for the next generation Type 26 frigate by the end of this year".

He said: "If Scotland became independent, we would no longer have that certainty and stability.

"We would then have to talk to our major UK customer, the Ministry of Defence, and jointly work out a plan for the future."

Supporters of the "yes" vote in the forthcoming referendum insist Scotland will be better off as an independent state within the EU.

First Minister Alex Salmond said independence will make Scottish homes £2,000 richer, while the Treasury says Scots will be £1,400 richer if they stay in the union.

But Mr King also voiced concerns about staff pensions post-independence.

He said: "If Scotland became independent and subsequently joined the European Union, our pension schemes, along with many other UK company schemes, may be caught up in EU regulations relating to cross-border pensions.

"The reality today is we can't say how our pension schemes would be affected.

"There would be a number of possible outcomes and we would use our consultation processes to discuss the options."

His comments come amid a growing business chorus questioning Scottish independence.

On Friday Kingfisher chief executive Sir Ian Cheshire, the boss of B&Q's parent firm, said there were too many uncertainties around tax, currency and Scottish EU membership.

Last month, the British Chambers of Commerce, which itself remains impartial in the debate, surveyed close to 2,500 of its members, and whilst 11% said Scotland should vote yes, some 85% preferred the union to remain.

16.01 | 0 komentar | Read More

Blair: 'Dangerous To Ignore' EU Poll Results

Tony Blair has warned Europe it would be "complacent and dangerous" if it fails to reform itself and "reconnect" with people following a surge by anti-immigration and eurosceptic parties.

He warned UKIP's victory in the UK and that of Marine Le Pen's far-Right National Front in France was a "wake-up call" on the need for change and "cannot be ignored".

Voters last month dramatically altered the make-up of the European Parliament by increasing the number of MEPs from the populist, eurosceptic Right.

In a speech to the Confederation of British Industry (CBI) in London, the former British prime minister said: "The victories of UKIP in the UK and the National Front in France and the election of parties across the continent on explicitly 'anti-the-status-quo in Europe' platforms signify something. They cannot be ignored.

"The election results matter. They are a wake-up call to Europe and to Britain. Our response in Europe, as in Britain, should be to lead, not follow."

He went on: "So when some European politicians say that despite the showing of the far-right nonetheless there is still a majority for a pro-Europe position, that is true, but it is also complacent and dangerous."

British prime minister David Cameron has promised to overhaul Britain's relationship with Europe.

David Cameron and Jean-Claude Juncker at a budget meeting in 2012

Mr Blair also appeared to criticise Mr Cameron's plans for a renegotiation and in-out referendum on Europe by 2017 and said "a new approach" should involve "minimum treaty change".

He called on pro-Europeans to "make the debate more than about the repatriation of certain competencies and rules".

Mr Blair said: "The moment is right for Europe to think carefully about where it goes from here, and how it reconnects with the concerns of its citizens and how it changes in order better to realise its ideals in a changing world.

"It has to be a debate elevated to a Europe-wide level, with Britain playing a leading role, not just a negotiation of Britain's terms of membership.

"It has to be about what is good for Europe as well as what is good for Britain."

The intervention came with Mr Cameron embroiled in a row over who should take over as the next president of the European Commission.

He has reportedly said Britain could quit the EU if Jean-Claude Juncker - the former leader of Luxembourg who he sees as a symbol of Europe's past - is elected.

According to German publication Der Spiegel, he is reported to have said: "A figure from the 1980s cannot resolve the problems of the next five years."

16.01 | 0 komentar | Read More

Retailers' Credit Union To Defy Payday Lenders

By Mark Kleinman, City Editor

Some of Britain's biggest high street names, including New Look and Next, are forming a credit union that will offer staff an alternative to the sky-high interest rates charged by payday lenders.

Sky News has learnt that RetailCure, which has also received backing from entrepreneurs such as Rymans owner Theo Paphitis, is drawing up plans to launch later this year.

The new venture has received start-up funding of £1m and will eventually be accessible to the 4.8 million people who work directly in retail or in related sectors of the economy, half of whom earn less than £8 an hour.

It will be chaired by John Lovering, a veteran retailer who has led buyouts of companies including Debenhams, Homebase and Somerfield.

Mr Lovering is also chairman of the Retail Trust, an industry charity which has been working on plans for the new credit union for some time.

Speaking to Sky News, he said: "The industry feels that we have to find a way of providing a source of cheap, reliable credit for our people.

"The three million in retail and the nearly five million in the wider industry do have a need for low-cost, value-for-money, short-term borrowing facilities, and that's what we as an industry are trying to provide."

Booker and Matalan have also agreed to support RetailCure, while John Lewis Partnership and Wm Morrison have been approached and are expected to provide financial assistance.

The launch of RetailCure comes amid a still-intense political debate about the business model employed by payday lenders, which charge interest rates that work out at more than 5,000% on an annual basis.

The high street chains' credit union will charge interest on a sliding scale from roughly 7% to nearly 28% depending upon the borrower's credit history.

Mr Lovering expects the average loan request to be lower than £5,000, and believes that RetailCure could ultimately become Britain's biggest credit union.

"We think we can build a loan-book of £50m and attract 50,000 members relatively quickly," he said.

Assuming it receives regulatory approval, savers who deposit funds with RetailCure will be protected by the same Government guarantee as that which covers high street banks.

Labour MP Stella Creasy, who has campaigned against payday loans, told Sky News: "Anything that helps people access affordable credit as opposed to some of the legal loan sharks you see on your high streets - the payday lenders and the logbook loan companies - is a welcome move."

Earlier this week, the Church of England unveiled a pilot scheme through which a new credit union network will be piloted in three of its dioceses.

That project is being led by Sir Hector Sants, the former boss of the City watchdog, which since April has had oversight of consumer credit providers such as payday lenders.

Last year, the Archbishop of Canterbury, Dr Justin Welby, said he had told the then boss of Wonga that he wanted to "compete (the company) out of existence".

The remarks sparked acute embarrassment for the Archbishop, however, when it emerged that the Church of England's pension fund was among the investors in one of Wonga's financial backers.

In its annual report this week, the Church Commissioners said they had yet to dispose of the holding because doing so would crystallise a significant loss for its pension fund.

Some industry stakeholders were sceptical about the prospects for RetailCure.

Russell Hamblin-Boone, chief executive of the Consumer Finance Association, which represents short-term lenders, said greater choice was welcome but warned that it faced significant uncertainties.

"What this body will have to do is make sure it complies with very stringent regulations that are applied to financial services.

"I would ask questions around what is going to be the collection policy, what happens if somebody leaves the retailers business still owing a debt, how are you going to collect that?"

RetailCure hopes to launch formally in November.

16.01 | 0 komentar | Read More

Spammer To Pay Damages After Court Victory

John Lewis has been ordered to pay damages for sending "spam" emails in a privacy ruling that could open the floodgates for harassed consumers.

Roddy Mansfield, who is a producer for Sky News, brought the case under EU legislation that prohibits businesses from sending marketing emails without consent.

At a county-court hearing a judge ruled the company acted unlawfully as it could not prove Mr Mansfield had agreed to receive the emails or was one of their customers.

It is the third time Mr Mansfield has secured damages for receiving unsolicited emails but the first time an individual has won damages following a ruling on the legislation.

Spam is named after a Monty Python sketch where it is served with each meal

Previous spam cases won by default include Gordon Dick who secured £1,300 for a single email from Transcom Internet Services and Steve Higgins who was awarded £810 from a home-shopping firm.

Mr Mansfield began receiving the promotional emails after registering his details with John Lewis' website which opted-him-in for marketing using a pre-ticked consent box.

But an EU law drafted in 2003 makes it an offence to send unsolicited emails unless a customer is aware they have been opted-in.

Mr Mansfield issued proceedings under the Privacy and Electronic Communications Regulations arguing it was for John Lewis to prove he consented and after a short hearing the judge ruled in his favour.

Mr Mansfield said: "John Lewis argued that because I had not opted-out of receiving their emails, I had automatically opted-in.

"But an opportunity to opt-out that is not taken is simply that. It does not convert to automatic consent under the law and companies risk enforcement action if they use pre-ticked boxes.

Almost 100 billion spam emails are sent every day

"John Lewis' lawyers then argued that because I browsed their website I had "negotiated" with them for a sale and a business relationship existed between us which would allow them to email me. The judge threw that out too."

Some 100 billion spam emails are sent to consumers every day according to Cyren's Internet Threats Trends report for 2013.

Richard Cox, who is head of anti-spam organisation Spamhaus, said: "As the Information Commissioner cannot take action on individual breaches of the law, the only way to stop this annoying type of spam is for individuals to take action themselves.

"Only the individual in each case will know whether they consented to their details being harvested for this type of activity. Hopefully it will be a warning to other UK companies not to abuse their customers' personal data."

A spokesperson for John Lewis said the case consisted of a "very specific set of circumstances" and while they disagreed with the judge's decision they would abide by the ruling.

The company said in a statement: "Mr Mansfield voluntarily gave us his email address, set up an account online and chose not to opt-out of marketing communications when that option was available to him.

"We listen carefully to what our customers tell us about how and when we communicate with them and endeavour to do so in a manner that is convenient to them.

"We're sorry Mr Mansfield was inconvenienced by our emails."

16.01 | 0 komentar | Read More

Taxi Law Change 'Puts Women At Higher Risk'

By Anushka Asthana, Sky Political Correspondent

Women are being placed at a higher risk of assault because of Government plans to allow minicab drivers to lend their private hire vehicles to family and friends when they are off duty, it has been warned.

The Local Government Association and charities are calling for plans - which have been introduced into the deregulation bill - to be halted.

They say the reform was slipped into the legislation at the "eleventh hour" with "little consultation". They want the clause deleted - a move being supported by the Labour party. 

The law already exists in London but this change will apply to the rest of England and Wales. 

At present minicabs outside the capital can only be legally driven by someone licensed through the council - who has undergone criminal, medical and background checks.

But under the new law, drivers will be able to loan their cars to anyone they choose. The idea is to help drivers by allowing family members to use their cars - as many can't afford a second vehicle.

But campaigners say it could be used by sexual predators to target victims. "We know that posing as a legitimate minicab driver is the preferred method of some quite dangerous sexual predators and we know that from the statistics in London where sexual assaults by bogus minicab drivers are worryingly high," said Rachel Griffin, director of the Suzy Lamplugh trust - which campaigns for better personal safety.

There are fears unlicensed drivers will target passengers

Councillor David Simmonds, of the LGA, added: "If we are seeing licenced vehicles that may be driven by someone other than the legitimate driver you won't know when you come out of a nightclub late at night perhaps after a few drinks whether the person who is driving that cab... is someone you can trust."

The fear is that unlicensed drivers will target vulnerable individuals who are frail or drunk using the vehicles.

Ministers say the change has been tried and tested in London. But the LGA says unlicensed vehicles are the scourge of the capital.

There were taxi-related sexual assaults across Britain last year including in places such as Cardiff, Birmingham and Nottingham. There were 37 in Manchester. In London there were 71 between April and November. The figures are not collected everywhere, so not available in comparable form.

Campaigners are asking why they can't simply allow drivers to nominate one other driver within their family, rather than having a free for all.

Transport Minister Baroness Kramer said: "The Deregulation Bill will not put taxi passengers at risk and drivers will continue to have their backgrounds routinely checked. Councils will have strong tools to assess drivers' and operators' suitability and to carry out enforcement activity.

"The Disclosure and Barring Service will allow licensing authorities to discover any new convictions during the lifetime of a driver's licence."

16.01 | 0 komentar | Read More