TSB Shares Up 11% On First Day Of Trading

Shares in retail bank TSB jumped more than 11% in value after public trading in the Government-back lender started.

The list price of 260p was quickly up to more than 290p, 11.5%, within minutes of trades commencing at 8am.

In early afternoon trades on Friday the price had climbed further, to 294p, before easing back to 290p at the close.

The initial pricing of 260p, slightly above the mid-range estimate, valued the new retail bank at £1.3bn.

Lloyds Banking Group originally planned to offer 25% of TSB shares but upped the figure to 35% after keen interest was shown by investors.

A total of 175 million shares have now been offered to the public.

Lloyds is still 25%-owned by the British taxpayer after a multi-billion bailout in the financial crisis.

Lloyds chief executive Antonio Horta-Osorio said: "The successful initial public offering of TSB is an important further step for Lloyds Banking Group as we act to meet our commitments to the European Commission.

"The significant investor demand for shares in TSB, which reflects investors' confidence in the prospects for the business, has meant that we have been able to set the offer size at 35%.

"TSB has a national network of branches, a strong capital base, robust liquidity and significant economic protection against legacy issues."

EU regulators ordered to Lloyds to sell 631 branches in 2009 over competition concerns, and must now sell the remaining holding by the end of 2015.

The original buyer of the branches was to be the Co-op Bank, until a £1.5bn capital black hole was discovered in the mutual's books.

The share price range was initially set at between 220p and 290p, on June 9.

At the time, Lloyds said in a statement that the float would commence around June 24.

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TNT Plan 'Cuts £200m From Royal Mail Revenue'

Royal Mail has warned that delivery plans by rival TNT could reduce its revenue by £200m in coming years.

It said TNT Post UK's expansion strategy would cost it £200m in the 2017/18 financial year.

It told regulator Ofcom that "absent intervention" would risk damaging its ability to reach a pre-tax profit margin of 5% to 10%.

Direct deliveries from rivals undermine the universal service because of "cherry picking", according to the Royal Mail, because they are not bound by similar stringent requirements.

In the formal submission to Ofcom, Royal Mail requested an immediate review of direct delivery in Britain.

It also asked the watchdog to impose any necessary regulatory changes to safeguard the universal service to households and businesses.

The submission to the regulator follows on from previous statements made by Royal Mail.

It says it is already trying to manage an annual decline in letter volumes of around 5%.

TNT has grown local market share of 14% in areas of operation and plans to cover 42% of UK addresses by 2017, the submission said.

The iconic red delivery service was privatised last autumn and the Government maintains a 30% stake.

An Ofcom spokesperson said: "We will consider the report Royal Mail has given us carefully.

"Protecting the universal service is at the heart of Ofcom's work, and our current evidence clearly shows that the service is not currently under threat.

"We would assess any emerging threat to the service quickly, in the interests of postal users."

In response, Communication Workers Union deputy general secretary Dave Ward said: "Ofcom's primary duty is to protect the universal service which allows us to send a letter to Belfast, Bristol or Brighton all for the same price.

"If Ofcom does not carry out an immediate review of the impact of direct delivery on universal service, it will have failed in its duty."

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Cashless High Street Ditches Notes And Coins

By Becky Johnson, North of England Correspondent

Shoppers will find their cash is worthless in one Manchester suburb as only cards will be accepted by stores on the high street.

As part of a social experiment, shops along fashionable Beech Road in Chorlton will only take payments on plastic.

It comes as research shows people are increasingly using cards instead of notes and coins.

Many of the shops, bars and restaurants on the road are independently owned.

Mary Paul, of the Beech Road traders' association, said: "Businesses can see the way things are going with more money being taken on cards across the board, so this is a very interesting glimpse into the future for all of us."

This month the British Retail Consortium (BRC) revealed cash use has fallen by 14% in the last five years.

Card use is increasing rapidly, with debit cards currently being used for 32% of transactions compared to 30% last year.

Some experts predict physical currency will cease to exist within 20 years.

Shops on Beech Road in Chorlton are trialling plastic-only payments

Helen Dickinson, director general of the BRC, said: "Customers are taking advantage of new ways to shop and pay. The availability of contactless cards, handy express stores and self-service tills, as well as online sales, has increased the use of debit cards for smaller payments in place of cash."

Mark Latham, product and innovation director at Handepay, the card payment provider behind the idea to trial a cashless high street, added: "Britain is at the forefront of countries heading towards becoming cashless because the public are always eager to embrace new technology.

"Recent research showed most Londoners would welcome a cash-free society as they're so used to paying for everything with cards.

"There's now an expectation that card payment is available everywhere - it takes us aback as consumers if it isn't.

"Business owners love it too as it cuts down on queues, reduces lost sales and gives them more time to interact with their customers.

"All evidence shows consumers spend more too, as they're no longer limited to just the cash in their pockets."

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Tax Blunder By HMRC Means Millions Owe Money

By Darren McCaffrey, Sky Politics Reporter

Millions of people will be forced to hand money to the Government after paying the wrong amount of tax because their bills were miscalculated.

The blunder by HM Revenue and Customs (HMRC) relates to the Pay As You Earn system (PAYE) last year.

Around 3.5 million people are thought to have paid too little tax as a result of the errors and will now have to pay the money over the coming years.

A further two million paid too much and will be able to claim it back by the end of the tax year, next April.

The estimated average mistake for individuals is around £300.

While errors are made every year, 2013-14 has seen an increase on the previous year with 5.5 million people affected compared to 5.2 million the year before.

This is despite the introduction of a £270m scheme designed to make the tax system more effective.

The HMRC's new Real Time Information (RTI) programme allows employers to report wage changes on a weekly or monthly basis.

This should ensure the process of making tax payments is more accurate.

A spokesman for HMRC defended the current system: "Most people pay the right tax throughout the year, but there will always be a small percentage of the 41 million people in PAYE who have underpayments or overpayments at year end."

He added: "The effect of Real Time Information is not reflected yet as it has not bedded in but, over time, RTI will help to reduce the number of cases that have to be reconciled."

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TSB Shares Up 11% On First Day Of Trading

Shares in retail bank TSB jumped more than 11% in value after public trading in the Government-back lender started.

The list price of 260p was quickly up to more than 290p, 11.5%, within minutes of trades commencing at 8am.

The initial pricing of 260p, slightly above the mid-range estimate, valued the new retail bank at £1.3bn.

Lloyds Banking Group originally planned to offer 25% of TSB shares but upped the figure to 35% after keen interest was shown by investors.

A total of 175 million shares have now been offered to the public.

Lloyds is still 25%-owned by the British taxpayer after a multi-billion bailout in the financial crisis.

Lloyds chief executive Antonio Horta-Osorio said: "The successful initial public offering of TSB is an important further step for Lloyds Banking Group as we act to meet our commitments to the European Commission.

"The significant investor demand for shares in TSB, which reflects investors' confidence in the prospects for the business, has meant that we have been able to set the offer size at 35%.

"TSB has a national network of branches, a strong capital base, robust liquidity and significant economic protection against legacy issues."

EU regulators ordered to Lloyds to sell 631 branches in 2009 over competition concerns, and must now sell the remaining holding by the end of 2015.

The original buyer of the branches was to be the Co-op Bank, until a £1.5bn capital black hole was discovered in the mutual's books.

The share price range was initially set at between 220p and 290p, on June 9.

At the time, Lloyds said in a statement that the float would commence around June 24.

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Shire Pharmaceuticals Rejects £27bn AbbVie Bid

Management for Shire Pharmaceuticals has unanimously rejected a £27bn ($46bn) informal bid from US drug giant AbbVie.

The London-listed drug firm rejected the takeover bid because it undervalued the group.

Shire said in a statement: "The board of Shire decided unanimously to reject the proposal on the basis that it fundamentally undervalued the company and its prospects."

AbbVie had earlier revealed a 4626-pence-per-share proposal.

Shire has no single controlling shareholder and has been seen as a likely takeover target for US drugmakers.

It specialises in the treatment of rare diseases business and has an attractive tax base, by being domiciled in Ireland.

Early London trading in Shire shares were up more  than 13% after news of the AbbVie bid was announced.

Shire said the offer denied shareholders full benefits of its future strategy.

The firm said it expected to more than double its 2013 annual product sales to £5.8bn ($10bn) by 2020 and told shareholders not to take action in relation to the takeover bid.

It also warned about concerns of the US firm shifting its tax domicile in the UK.

The concerns mirror those raised about the recent failed attempt by Pfizer to buy UK rival AstraZeneca.

Industry experts said they believed Abbvie would need to boost its offer to above £50-per-share for a deal to take place.

Jefferies analysts said in a briefing note: "We see limited product portfolio synergies, hence assume cost savings, tax benefits, diversification, and Shire's attractive growth to be the merger and acquisition drivers."

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GM Ignition Fault 'May Have Killed 100 People'

Up to 100 deaths could be linked to a faulty ignition switch in GM cars that the firm failed to rectify for more than a decade, says a US lawmaker.

Representative Diana DeGette, a Colorado Democrat, mooted the figure as she grilled GM chief executive Mary Barra at a congressional hearing on Wednesday. 

The number is higher than the 13 people the company says died in crashes linked to the problem, and nearly double the death toll of 53 cited in lawsuits.

GM engineers had known about the defective switch since 2001, but the firm did not recall the vehicles until this year.

Wheelchair-bound Trenton Buzard was paralysed in a GM crash

The US government fined GM $35m (£20m) last month, but critics pointed out that amounted to less than a day's revenue for the car-maker.

In her second appearance on Capitol Hill over the scandal, Ms Barra told the House committee lessons had been learned.

"I never want anyone associated with GM to forget what happened," she said in her prepared remarks.

A Wisconsin car crash, linked to the GM fault, that killed two teenagers

"This is not another business challenge. This is a tragic problem that should never have happened and must never happen again."

Earlier this week the car-maker announced a new recall of 3.36m vehicles because of ignition switch problems, on top of the 2.6m Chevrolet Cobalts, Saturn Ions and other cars recalled in February.

The House Energy and Commerce Subcommittee on Oversight and Investigations asked why it had taken GM so long to act.

Rep. Diana DeGette holds up the faulty switch at a hearing in April

Its members questioned whether the company's culture could change, and if this month's dismissal of 15 employees was really enough.

The lawmakers also said that a report paid for by GM into the scandal had failed to answer key questions.

The 315-page report, made public on June 5, blamed the faulty ignition switch on a rogue engineer.

Family members of a GM crash victim wipe away tears at a news conference

"It does not fully explain why stalling was not considered a safety issue within GM," Ms DeGette said. 

"And most troubling, the report does not fully explain how this dysfunctional company culture took root and persisted."

The lawmaker said senior executives, including Ms Barra, should have acted sooner.

Representative Fred Upton read a 2005 email from a GM employee who recommended a "big recall".

Family members of victims in front of GM's Detroit headquarters

The firm also failed to act on reports it received in 2007 and 2010 about the malfunction.

The defective ignition was prone to turning off, causing the engine to shut down and disabling the air bags.

Ms Barra told the hearing that she had been encouraging people to speak up about potential safety issues.

The company had issued 44 recalls of 18 million cars in the US this year, she added, as part of a tougher approach to safety.

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Fed Cuts Asset Purchases Amid Inflation Fear

The US Federal Reserve has cut the pace of monthly asset purchases by $10bn (£5.8bn), as it dampens fears of inflation rising.

The Fed said its quantitative easing programme would now be set at $35bn (£20.6bn) a month.

The US dollar weakened against its major rivals as the Fed said it would maintain interest rates at the current low level and not quicken the pace for raising them.

Fed boss Janet Yellen said recent data shows a modest acceleration of inflation, but added that unemployment was still too high.

Speaking at a post-meeting news conference, she said there was "no mechanical formula" for when the Fed will lift rates.

It is expected to maintain benchmark rates at the current level well into 2015, averting a big rise in prices.

Ms Yellen said: "The recent evidence we have seen, abstracting from the noise, suggests that we are moving back gradually over time towards our 2% objective and I see things roughly in line with where we expected inflation to be."

She made the comments at her second news conference since taking over the chair role from predecessor Ben Bernanke.

Despite the negative reaction from foreign exchange markets, equities rallied to a record close as bond prices strengthened.

The Fed reduced its growth forecast for 2014, partially based on the harsh winter that affected US businesses.

A number of household names, including fast food chains, have previously reported first quarter resulted that were dampened by a bitterly cold winter across many parts of the US.

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Home Loan 'Slowdown' As New Rules Take Effect

There has been a "slowdown" in new home loan advances because of increased lender scrutiny, according to the Council of Mortgage Lenders (CML).

It said gross mortgage lending held steady in May at an estimated £16.5bn - identical to April's lending figure.

Tighter rules governing mortgages were initiated in late April, known as the Mortgage Market Review (MMR).

The new rules were designed to make sure borrowers had the capability to meet repayments if interest rates rise in the future.

CML chief economist Bob Pannell said: "Market indicators point to a slowdown in activity levels, in part associated with new mortgage rules, but it is unclear how lasting this will be.

"Implementation of the new regulatory regime is likely to have disrupted the normal patterns of activity, creating statistical 'fog' around the published figures.

"As this lifts over the coming months, a clearer picture as to any lasting impact of the MMR rules on lending activity should emerge."

MMR guidelines have seen prospective borrowers quizzed by lenders over their monthly outgoing expenditure.

Questions have covered gym membership fees, how much is spent monthly on toiletries, and the ratio of fresh produce to non-perishable food items.

Some applicants have spent more than seven hours on the telephone answering questions as part of the process.

The CML covers around 95% of lenders operating in Britain and it records mortgage advances.

A mortgage approval is the firm offer to a customer of a specific amount of credit secured against a particular property, whereas  mortgage advances are the total amount of a loan actually provided to the buyer, by the lender.

More follows...

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Zoopla To Be Valued At £919m On Flotation

Zoopla, the property website, will have a market value of £919m after it set the offer price for its share sale.

The firm - majority owned by Daily Mail And General Trust - said shares would be priced at 220p each in the Initial Public Offering (IPO).

That offer was in the lower half of the range it had previously announced of between 200 and 250p and represents 38.3% of the company's issued share capital.

No new shares are being issued and the offer is only be open to financial institutions, such as banks and pension funds, alongside estate agents and developers.

Zoopla was founded by Alex Chesterman

Conditional trading began on the London Stock Exchange at 0800 BST.

Alex Chesterman - the founder and chief executive of Zoopla - said: "We are delighted with our successful listing."

"We have received a significant level of institutional investor support in our business which once again underlines the growth potential of Zoopla Property Group."

It had initially been predicted that the sale could have valued the company at more than £1bn - a mark that attracted plenty of attention - though the decision to go for a price in the lower half of the range was seen as a cautionary nod towards rocky rides for other recent IPOs.

Zoopla, which is the UK's second-largest property website with 40 million monthly users, launched in 2008 and the bulk of its revenues come from estate agency fees.

Analysts have pointed to a potential for earnings growth at Zoopla as it currently rakes in less cash per transaction that its bigger rival, Rightmove.

But both websites are facing a potential threat from a new rival - backed by estate agencies.

More than 500 estate agents joined forces in February, planning to combat what they said was an "anti-competitive duopoly".

Agents' Mutual claim Rightmove and Zoopla keep putting their prices up and reaping huge profits against those made by small estate agents.

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Amazon To Reveal '3D Smartphone' Today

Smile! Hundreds Of New Emojis To Be Released

Updated: 10:23am UK, Tuesday 17 June 2014

They say a picture paints a thousand words - now there are going to be 250 more to choose from when you send a text.

A major release of new Emojis - the symbols and images you can include in texts and emails - is due in July.

The characters are part of an update of Unicode, the standards that regulate how text appears across different platforms.

The 250 new additions will include a hand with a middle finger raised, a sure-fire way to bring some text conversations to a close.

But the release does not just include insults - there are a series of weird and wonderful Emojis to choose from too.

They include a squirrel, a spider web, fax icon, oil drum, ballot box, rolled-up newspaper, a chipmunk, bullhorn and a weightlifter.

The last major Unicode update - which is agreed between Microsoft, Apple and Google - was in 2010.

Other than the middle-finger Emoji, images of the new symbols have not yet been released.

However, a text description of each one can be found on the emoji website.

Emojis are found on Apple and Android products, and Windows 8 PCs and tablets, such as the Surface, among others.

They are also available on applications such as Facebook and Whatsapp.

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MPs Warn Of 'Taxpayer Risks' From Help To Buy

The Government has dismissed a study by MPs which found the first part of its Help to Buy scheme poses a long-term risk to the taxpayer.

The Public Accounts Committee (PAC) said the policy - under which Government equity loans finance as much as 20% of the purchase price of homes worth up to £600,000 - risks creating a £10bn portfolio that will impose a "heavy administrative burden" for decades.

While the spending watchdog said the scheme was introduced smoothly and had helped 13,000 home buyers within nine months of its creation, it accused the Department for Communities and Local Government (DCLG) of violating Treasury guidelines by failing to carry out any assessment of alternative options.

Committee chair, Labour's Margaret Hodge said: "This means it has committed to spending up to £10bn on supporting Help to Buy without establishing whether it represents the most effective way of using taxpayers' money to achieve its objectives.

Thousands of people have used Help to Buy to get on the property ladder

"The department will not carry out a comprehensive evaluation of the scheme until 2015, by which time billions of pounds will already have been spent.

"That evaluation needs to ask three things: whether more people purchased properties than would have done without the scheme; whether builders built more houses than they would have built otherwise; and what effect the scheme could be having on house prices."

The PAC urged DCLG to assess the scheme's effectiveness in regional and local markets - finding that while it had proved popular in northern England and parts of the Midlands it had little impact in the South East and London where demand for property was at its highest.

Responding to the findings, housing minister Kris Hopkins insisted it was supporting the economy.

He said: "The Government completely rejects this report which sacrifices thorough analysis of Help to Buy in favour of a grandstanding headline.

"The Help to Buy equity loan scheme is building more homes and supporting the economy - in fact we estimate the wider economic benefits could be as much as £1.8bn.

"It is also offering excellent value for money for taxpayers' and to suggest otherwise and try and use the scheme to score cheap political points is absurd.

"Since the scheme's launch, house building is up a third and now at its highest level since 2007. And over 27,000 people across the country have used Help to Buy to get on the property ladder with a fraction of the deposit they would normally require, with cities including Leeds, Durham and Manchester seeing some of the biggest numbers of sales."

Labour housing spokeswoman Emma Reynolds said: "The report from the Public Accounts Committee raises concerns that the Government has not fully assessed value for money or how many new homes will be built as a result of this scheme.

"For such a significant investment, it is shocking that so little assessment has been made of the impact.

"With the number of homes being built at the lowest level in peacetime since the 1920s, it's clear that this Government isn't up to the job of tackling the housing shortage."

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Maiden Chinese 'Green Bond' To List In London

By Mark Kleinman, City Editor

An arm of the World Bank is to list the first 'green bond' denominated in China's currency in London in a move that will be hailed by ministers as a boost for the City's global status.

Sky News has learnt that the International Finance Corporation (IFC), which is the World Bank's private sector-focused investment arm, plans to raise about RMB 500m (£47m) to invest in climate-related projects.

Although modest in scale, it will represent a milestone as the first renminbi-denominated green bond issued by the IFC, and will see it listed on the London Stock Exchange.

An announcement about its completion is expected to be made by the Washington-based institution on Tuesday to coincide with the visit to the UK by Li Keqiang, the Chinese Premier, City sources said.

The news is expected to be hailed by David Cameron and George Osborne as a vital step in positioning London as the premier offshore centre for financing using the Chinese currency, they added.

That message is likely to be given particular emphasis because of the extent to which the UK's financial markets have come under scrutiny amid probes into manipulation of critical benchmarks such as foreign exchange and Libor.

The IFC is a major global development institution which taps financial markets to invest in projects across the developing world, and was influential in creating so-called Panda bonds in China and Dim Sum bonds in Hong Kong.

In March, it issued a RMB1bn (£94m) bond in London - also the first of its kind - which it said would support the internationalization of the Chinese currency.

At the time, the Chancellor said:

"Nearly two-thirds of all Renminbi activity outside of greater China takes place in London and IFC's decision to issue in London provides yet more evidence that the capital is the western hub for Renminbi.

"The Government will continue to work very closely with the private sector and the Chinese and Hong Kong authorities to build a thriving RMB market in London."

The proceeds of 'green bonds' are set aside to invest in renewable energy and energy-efficient projects, and are designed to help address the vast funding gap for such initiatives.

Sources familiar with the latest IFC deal said there had been significant interest from investors.

The IFC's RMB 'green bond' issue will form part of a package of City-focused deals designed to underpin its pre-eminence as a global financial centre.

China Construction Bank is to be designated as the first offshore clearing bank for the Chinese currency, while Industrial & Commercial Bank of China will be given permission to establish a wholesale branch in London.

UK-based companies are also expected to be given new assistance in financing China-focused transactions through a separate Government deal involving the Export Credit Guarantee Department, sources said.

Other trade and business deals announced during Premier Li's visit will include major projects and supply agreements involving BP and Shell, as Sky News revealed on Monday.

A Treasury spokesman declined to comment.

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Chinese Visit To Bring In Deals Worth £17bn

By Mark Stone, China Correspondent, in Beijing

A raft of commercial deals between the UK and China totalling more than £17bn will be agreed later in the first visit to Britain by a Chinese leader for over three years.

China's Premier Li Keqiang is accompanied by a delegation of more than 150 business leaders and top level Communist Party officials.

He is holding talks with David Cameron at a UK-China summit and a news conference will provide a rare opportunity to question the Chinese leadership.

Mr Li will also be given a guard of  honour and have an audience with the Queen at Windsor Castle in a move which has angered critics of China's record on Human Rights and political freedoms.

Campaign group Free Tibet has written to Buckingham Palace requesting the meeting with the Queen is cancelled.

"A meeting [between the Queen and] a leader of the world's largest authoritarian state at a time of increased repression inside its borders does not appear to be in the interests of the monarchy, the United Kingdom, or those resisting oppression across the world," the letter read.

Britain's Deputy Prime Minister used unusually direct language and risky timing to describe China's people as being "politically shackled to a doctrine which is a one party state, a communist state".

The visit is Li Keqiang's first to the UK since he became China's Premier

"Of course we can't agree on large scale and systematic human rights abuses which still continue in China to this day: the many journalists who are persecuted, the very widespread use of the death penalty," Nick Clegg said at his weekly press conference yesterday.

Mr Clegg added that despite these concerns, he hoped to have "very productive discussions" with the Chinese leadership.

The commercial deals, which Sky News understands have been under negotiation right up until the last minute, should cover trade and investment across a variety of sectors including energy, transport, finance, health and education.

China's sovereign wealth funds could help to finance major British infrastructure projects including the HS2 high speed rail link and the next generation of nuclear power stations. China is understood to be putting its largest share of European investment into the UK. 

Britain's two biggest oil companies, BP and Shell, will unveil multibillion-pound deals, and an arm of the World Bank is to list the first "green bond" denominated in China's currency in London.

Britain has also announced a new streamlined visa service for Chinese travellers.

The UK is not part of the visa agreement which allow overseas visitors to travel to twenty six countries in Europe which means that 90% of Chinese tour operators say they leave the UK off their itinerary every year.

The visa application process will now be simplified, allowing tourists to apply using the same form as other European countries. Chinese visitors will also be able to use an Irish visa to travel to the UK. 

China's growing middle class and the rebalancing of its economy from export to domestic consumption also presents Britain with huge opportunities.

British fashion giant Burberry opened its largest Asian store in Shanghai in April. The company's China strategy has helped boost global revenues.

In the automotive sector, Jaguar Land Rover has seen staggering success across China with 130 dealerships in 90 cities. The company is now Indian-owned, but the cars are made in the UK.

"The thesis now is that the UK is entering a sweet spot. Chinese consumers increasingly recognise the UK's value as a brand," said Duncan Clark, an investment adviser with 20 years' experience in China.

"They are buying luxury goods, they're buying higher quality services as well including education and training - areas that the UK excels in."

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'Supermarket Price War' Helps Inflation Ease

The first annual fall in food prices since 2006 has helped the rate of inflation tumble to a four-and-a-half year low of 1.5%.

The Office for National Statistics (ONS) said the dramatic easing in the annual rate of price growth in May, which was not forecast by economists, was possibly explained by a supermarket price war.

The major 'big four' chains of Tesco, Asda, Sainsbury's and Morrisons are scrapping for market share in a bitterly contested fight for business that has seen heavy discounters like Aldi and Lidl gaining ground.

The ONS charted an annual 0.6% fall in food prices in May.

It said a broad range of goods including drinks and clothing also fell in value.

The body credited the effects of a late Easter on travel costs fading as well.

More follows...

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Energy Provider Switching Time Is Cut In Half

The energy regulator has confirmed the amount of time it takes to switch gas and electricity supplier is to be cut by half.

Ofgem says it has agreed with the industry that switching times will fall to three days plus a 14-day cooling off period from December 31.

The watchdog plans to impose next day switching from 2018 at the latest.

The move is aimed at making it easier for households to change energy supplier and save money.

Recent research showed that two-thirds of energy customers had never switched and many of the tariffs they held were often old and costing homes up to £200 extra annually.

Ofgem chief executive Dermot Nolan said: "Consumers can change their bank in seven days, their mobile phone in just a couple, but have to wait significantly longer to switch their energy supplier.

"We hope this will give consumers more confidence to get out there and start shopping around."

Currently switching takes around five weeks, which includes a statutory two-week cooling off period that came into force in June.

Ofgem said next day switching would only be possible when old IT systems were upgraded.

The reforms were welcomed by consumer groups and price comparison websites.

Ann Robinson, director of consumer policy at uSwitch.com, said: "Today's announcement is exactly the sort of game-changer that is needed to encourage consumers to engage with the energy market.

"By speeding up the time it takes to switch energy supplier, households will feel the benefits of moving to a new tariff even sooner.

"With half of households yet to switch their energy supplier, it is clear there are barriers that need to be broken down. For many of these, it will be a question of confidence and fear of the unknown."

The latest Government figures show that 1.3 million electricity customers and 866,000 gas customers changed supplier in the final quarter of 2013.

Ministers have been encouraging households to switch as a way of forcing competition on suppliers in a market dominated by six major firms.

However, smaller suppliers are starting to capture a greater share - thanks largely to a lower cost base which enables them to offer lower tariffs.

'Big six' firms - which came under renewed pressure last week to cut bills after steep falls in wholesale gas prices - insist their profits are fair as they must make money to invest in the country's generation and distribution infrastructure.

Energy Secretary Ed Davey said: "Energy companies have already confirmed they will meet my challenge to halve switching times by the end of the year, but I want to see them get to 24-hour switching as soon as possible.

"We are already seeing more people switching to get the best deal on their energy, and many are switching away from the 'big six' to smaller suppliers.

"Making the process much quicker will encourage more to shop around, increasing competition and driving down energy bills."

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Hand Over The Dough! Domino's Pizza Hacked

Hackers who cracked the Domino's Pizza database say they have stolen the details of more than 600,000 customers – including their favourite toppings.

Later, a hacker known only as Rex Mundi said the full details would be released today unless the firm paid him or her €30,000.

Mundi said the "vulnerable" shared servers of Domino's Pizza in France and Belgium were compromised, with a range of customer details stolen.

The hacker than added that they even stole details of customers' favourite pizza toppings, "because why not?"

A threatening tweet posted on Sunday

But Domino's Pizza executive Andre ten Wolde said the ransom demand would not be paid, according to a Dutch newspaper, and a complaint had been filed with a court in Paris.

He stressed that financial data such as credit cards, had not been stolen.

"There are clear indications that something is broken on our server," he said.

In a message posted to an online clipboard, Mundi said: "Earlier this week, we hacked our way into the servers of Domino's Pizza France and Belgium, who happen to share the same vulnerable database.

"And boy, did we find some juicy stuff in there! We downloaded over 592,000 customer records (including passwords) from French customers and over 58,000 records from Belgian ones.

"That's over six hundred thousand records, which include the customers' full names, addresses, phone numbers, email addresses, passwords and delivery instructions. (Oh, and their favorite pizza topping as well, because why not)."

The hacker later posted a tweet saying: "If Domino's Pizza doesn't pay us (on Monday) and we publish your data, you have the right to sue them. Speak to your lawyer."

16.01 | 0 komentar | Read More

Russia 'Restricts' Ukraine Gas On Unpaid Bill

Russia has reportedly stopped gas supplies to Ukraine after it missed a deadline imposed by Moscow to pay almost half its $4.5bn (£2.7bn) bill.

State-owned Gazprom said Ukraine's Naftogaz had failed to pay $1.9bn of its debt by its 0600 GMT (0700 BST) deadline and, as a result, the company would have to pay up front for its gas in future.

It also suggested deliveries for June remained uncovered.

Gazprom said: "Today, from 10:00 a.m. Moscow time, Gazprom, according to the existing contract, moved Naftogaz to prepayment for gas supplies.

"Starting today, the Ukrainian company will only get the Russian gas it has paid for," it said.

Major gas pipelines to Europe pass through Ukraine

A source at Gazprom was quoted by the news agency Reuters as saying that it had now "restricted" supplies while the company filed a lawsuit in Stockholm demanding immediate payment of the full amount.

It was unclear whether Ukraine was getting any supply from Russia but it was thought unlikely as Gazprom insisted that Kiev maintain Russian pipeline supplies to Europe and made no attempt to siphon gas to fuel its own infrastructure.

The developments follow the failure of EU-sponsored talks in Kiev aimed at reaching a settlement between Russia and Ukraine.

Naftogaz boss Andriy Kobolev has failed to agree terms with Russia

The European Commission said it was "convinced" a solution to the bitter dispute was possible, averting a deepening of the wider crisis over Ukraine's future that has seen East/West relations deteriorate to levels not seen since the Cold War.

It is understood that differences between Russia and Ukraine remain on future prices and on the amounts outstanding.

The EU had proposed a compromise package requiring Ukraine to pay $1bn immediately with the balance settled through six additional payments by the year's end.

More follows...

16.01 | 0 komentar | Read More

Interest Rate Rise 'Signals End Of Crisis'

George Osborne Acts To Curb Housing Bubble

Updated: 1:25am UK, Friday 13 June 2014

By Jon Craig, Chief Political Correspondent

Barely a few minutes into his Mansion House speech, George Osborne said: "So while I know this is my fifth speech to you as Chancellor, I hope it is not my last."

I'll bet he does!

But whether he's back this time next year addressing the bankers and City money men and women, or listening to Ed Balls make it, could depend on the success or not of the measures he announced in this year's speech.

He wouldn't admit it. But the Chancellor now appears to accept that the threat of a "housing bubble" in London and some other parts of the country is a potential problem.

He doesn't want interest rates to rise before next year's general election to curb house price inflation. We know that from no lesser source than Her Majesty the Queen last week.

"To strengthen the economy and provide stability and security, my ministers will continue to reduce the country's deficit, helping to ensure that mortgage and interest rates remain low," she said right at the outset of her speech at the State Opening of Parliament.

So instead, the Chancellor plans to give the Bank of England powers to curb big mortgages being offered to people who can't afford the repayments.

Excuse me, though. Aren't many of the big lenders doing that already? Some lenders are limiting loans to four times salary and scrapping loans of more than £500,000. There has been a clampdown on interest-only mortgages too.

But the price of an average house rose by £223 a day last month and by 16% over the past year. It's not as if Mr Osborne hasn't been warned.

For months, the Liberal Democrat Business Secretary Vince Cable has been warning about a "housing bubble". But until now he has been slapped down by the Tory Chancellor.

Not any more. Mr Osborne told his City audience: "If London prices were to continue growing at these rates that would be too fast for comfort."

In other words, the Chancellor now recognises what critics of his Help to Buy scheme have been telling him: there is a problem in the capital, particularly, and elsewhere.

It doesn't take a genius to work out why: demand massively outstrips supply. So Mr Osborne is proposing to relax planning laws on so-called "brownfield sites", while protecting the green belt in those Tory constituencies in the shires.

Relaxing planning laws? How many times have we heard that before from senior Conservative politicians? The "Nimbys" in the leafier parts of Britain have other ideas.

To tackle the supply and demand problem in the capital, the Chancellor is promising "new housing zones across London backed by new infrastructure". Thousands of new homes for London families is the promise. We've heard a lot about that before, too.

No wonder Ed Balls MP, Labour's Shadow Chancellor, said: "George Osborne is still failing to tackle the root cause of the housing crisis which is that we are not building enough homes to match rising demand.

"And the danger of the Chancellor's failure to act on housing supply is that we see a premature rise in interest rates to rein in the housing market which ends up hitting millions of families and businesses."

A rise in interest rates before the election? No chance, Mr Balls.

But despite Mr Osborne's attempts to cool the housing market to avoid a rate rise before voters go to the polls in May 2015, I predict the so-called "housing bubble" will lead to interest rates going up after the election.

Whoever it is delivering the Mansion House speech this time next year.

16.02 | 0 komentar | Read More

Carney Boosts Lloyds Plan For £1.3bn TSB Float

By Mark Kleinman, City Editor

The state-backed Lloyds Banking Group is this weekend considering increasing the price at which it sells shares in TSB, its high street subsidiary, amid strong demand from investors.

Sky News has learnt that Lloyds could announce early next week that it is revising the 220p-290p range for the flotation of TSB by raising the bottom end to approximately 240p.

Investment banking sources said Lloyds would make a decision after consulting its advisers during the next couple of days.

One insider said that the Mansion House address by Mark Carney, Governor of the Bank of England, had bolstered sentiment among City investors for TSB shares, with further interest registered on Friday.

Mr Carney said it was conceivable that interest rates would rise from their historic low of 0.5% sooner than markets expected, implying that a rate hike could come before the end of this year.

That would potentially benefit TSB, the profitability of which is geared to interest rates to a greater degree than most of its high street rivals.

One insider said the City's assumptions about TSB's profitability, outlined in its prospectus last week, might need to be revised given the boost to margins on mortgages and current accounts which could result from an early rate rise.

At the 255p mid-point of the 220p-290p range announced last Monday, TSB would be valued at £1.275bn, roughly 15% below its book value of just over £1.5bn.

The expectation that shares in the UK's seventh-largest lender will be sold for less than its book value disappointed some City analysts.

Yet even at that level, Lloyds would still attract a price for TSB that is significantly higher than the £750m which the Co-operative Group planned to pay for the 631-branch network before a deal collapsed last year.

The prospectus revealed that TSB made an after-tax profit of £172m last year on revenue of £798m, although the earnings figure included a £105m tax gain.

Banking sources also said that approximately 60,000 retail investors had applied for shares, lured by the offer of free bonus stock.

That figure could increase significantly by Tuesday, when the window for retail applications closes.

Lloyds is selling between 25% and 27.5% of TSB in the flotation.

It is required to offload the remainder by the end of next year under a state aid deal agreed with Brussels following the bank's taxpayer bail-out in 2008.

Lloyds, which is being advised by Citi, JP Morgan, UBS, Investec, Royal Bank of Canada and Rothschild, declined to comment.

16.02 | 0 komentar | Read More

Retailers Set Goals On World Cup Success

By Emma Birchley, Sky News Correspondent

England fans are not the only ones hoping the players can find the back of the net as their World Cup campaign finally gets under way.

Retailers too are banking on success.

The Centre for Retail Research has estimated that every time England scores - shops, restaurants and pubs will benefit to the tune of almost £200m.

At Sainsbury's, designers started working on the merchandise more than a year ago.

Corporate affairs director Alex Cole said: "The longer England stays in the tournament, the more excuse we have got for parties as a nation.

"But also the sun is really important so the sunnier it is the more likely we are to say, yes, we will have a BBQ and get some people round to watch the match with us."

The further in the competition England progress, the better for retailers

But it is not just sales of sausages and beer that soar. TVs are selling well. So too are souvenirs and sportswear.

Takeaway pizzas are expected to sell in their millions but many people will head straight from work to bars or restaurants to watch the matches.

Phil Collinson, manager at Rileys Sports Bar in central London, is expecting 30,000 fans to come through the doors during the tournament.

"It's our responsibility to make sure everyone from all the different nations has the chance to see the matches," he said. "It will be an incredible atmosphere and great to be part of."

Reaching the final 16 is expected to see the takings by retailers, bars and restaurants rise by more than £1.3bn while a place in the final would be worth almost £2.6bn to the economy.

Michael Jarman says success equals spending

With England taking on Italy in their first game, it can mean split loyalties if you are running an Italian business in the heart of London.

But while there is no surprise who Lorenzo Mariotti, manager of the restaurant Little Italy in Soho, wants to win, he knows the importance of the home nation staying in the competition.

"We really need both teams to play well and go (as) far as they can and hopefully meet in the semi-final or final," he said. "It will be the most great game of the World Cup."

Former footballer and city trader Michael Jarman says success in the tournament will see football fans out spending.

"You find the general morale and momentum of the UK consumer is going to be more upbeat, a bit more optimistic," he said.

"You then have the new football season starting. Naturally there will be a better feel-good factor."

16.02 | 0 komentar | Read More