Asda To Cut More Than 1,350 Jobs Within Weeks

Asda is to cut a total of 1,360 within the next three months, it has been confirmed.

The supermarket chain, which is owned by US-based Walmart, had previously said there would be job losses but it did not reveal the number of cuts.

The plan will affect the management structure across its 578 UK stores.

The retailer said the redundancies will help create more flexible store management.

It said this would include greater emphasis on online services, removing so-called back office administration and increase the number of workers on the shop floor.

Asda chief executive Andy Clarke outlined a proposal to restructure store management last May.

At the same time, store staff were told of the new proposals, which were set to affect 4,100 people.

A formal 45-day consultation period then followed the announcement.

Asda was formerly equal second in the supermarket size ranking, alongside Sainsbury's, but has been losing ground with the rise of the deep discounters Aldi and Lidl.

Market leader Tesco has also seen its dominance whittled away by the discounters and the drift of some shoppers to the premium offerings of M&S and Waitrose.

Mr Clarke said: "Every supermarket must adapt to the intense changes in UK retailing or they will get left behind.

"We spotted this nearly two years ago, responding with a new strategy and taking time to thoroughly examine our structures, test scenarios, talk to our colleagues and adjust our proposals accordingly.

"This thorough process has helped us to reach this difficult decision today."

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Amazon Under Scrutiny Over EU Tax Affairs

Online retail firm Amazon is facing a potential investigation by EU officials over its Luxembourg tax hub.

The EU's competition commission has demanded that the country's Grand Duchy hand over documents of the tax status given to Amazon, including any potential state aid.

The retailer has come under increasing scrutiny over structures that allow customer revenue from member states to be assessed for taxation purposes at its Luxembourg hub.

According to the Financial Times, the company has 800 staff at its headquarters, where £13.6bn in EU sales were logged last year, thereby reducing its effective tax rate by 8%.

It quoted an EU official as saying: "We are looking into what kind of arrangement Luxembourg has with Amazon."

The US firm has come under criticism in the EU over warehouse working conditions, purchasing power over suppliers and claims it has a damaging effect on other retailers.

Amazon's warehouse working conditions have been criticised

Amazon is the latest firm to see its tax status come under scrutiny amid a clampdown on favourable conditions given to certain multinational corporations.

EU investigations have already been launched into Apple in Ireland, Starbucks in the Netherlands and Fiat Finance in Luxembourg.

Starbucks has since announced a decision to move its EU headquarters to Britain.

Luxembourg has the highest per capita GDP in the world, according to the International Monetary Fund, while the World Bank and United Nations rank it third highest.

G20 member countries have agreed to greater cross-border tax information exchange, in a principle supported by the Organisation for Economic Co-operation and Development.

The EU intends to implement new rules about 'transfer pricing', where local divisions must buy goods and services from a parent firm located in another jurisdiction.

Westminster's Public Accounts Committee (PAC) chair Margaret Hodge previously called Amazon's finance arrangements an "extremely aggressive tax avoidance strategy".

She told the newspaper: "We welcome this examination of Amazon's tax affairs and hope the investigation contributes to putting an end to profit-shifting.

"I only wish the British authorities would be so assertive."

In 2012, the PAC questioned top executives from Amazon, Starbucks and Google over their tax strategies and effective UK tax rates.

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Dow Jones Closes Above 17,000 For First Time

The US stock index made up of some of the biggest global firms has closed at above 17,000 for the first time ever.

Shares soared after a US jobs report showed unemployment was at its lowest rate in six years.

The government said on Thursday morning that the American economy added 288,000 workers in June, far more than analysts expected.

The Dow - a group of 30 big corporations from American Express to Walt Disney - closed up 92 points at 17,068. 

The S&P 500 - the index more closely tracked by investors - also closed at a record level, hitting 1,985.

The Nasdaq, meanwhile, ended at its highest since 2000.

Trading closed early on the eve of America's July 4 holiday, and the results leave investors with much to celebrate.

The Dow Jones' climb means that the index has gained more than 10,000 points since the depths of the US recession in 2009.

"Right now the story is onward and upward," Neil Massa, senior trading at John Hancock Asset Management, told AP news agency.

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Flexible Isas Offer £15,000 Tax-Free Saving

Some of the barriers to saving with Individual Saving Accounts (Isas) have been stripped away from today as they become more flexible and the annual allowance rises.

Savers will be able to stash up to £15,000 each year - money they can hold in stocks and shares, cash or any combination of the two.

The New Isas - or 'Nisas' as they are being called - were demanded by campaigners who had long complained about only being previously allowed to save up to half of their annual Isa allowance in cash and the remainder in stocks and shares.

The new flexibility rules apply to all existing Isas as well as new accounts opened from today.

At the same time the annual subscription limits for Child Trust Funds (CTFs) and Junior ISAs are increasing to £4,000 to enable families to save more for their children in a tax-advantaged way.

The Chancellor George Osborne, who announced the changes in his Budget statement, said today: "We want to support savers at all stages of their life and make sure they have greater flexibility and choice over how they access their savings.

"That's why as part of our long-term economic plan we announced a radical package of measures at Budget - reducing taxes for the lowest income savers, reforming ISAs and giving people flexibility over their pensions.

"Today's introduction of the New ISAs is a big boost for millions of people, giving them greater economic security by putting aside money in savings."

Over 23 million adults - roughly half of the UK adult population - currently have an ISA.

But despite the greater freedom for savers, comparison websites have warned that the typical potential returns on offer for Nisas have deteriorated since the Budget - with cash elements particularly weak.

Rachel Springall, spokeswoman for Moneyfacts.co.uk, said that since March, the average rate on offer on a one-year fixed-rate Isa had fallen from 1.58% to 1.48%.

She said: "The falls in rates will likely cause much disappointment for savers who did not see a fruitful Isa season this year and have pinned hopes on the new limits to provide new deals so they can boost their income.

"Challenger banks appear to be leading the way with decent Isa deals lately.

Kevin Mountford, head of banking at MoneySupermarket.com, added: "The current rates on offer are stagnant and uncompetitive."

He said savers would need to be prepared to shop around to get the best deals.

Figures released by the British Bankers' Association (BBA) last week showed a plunge in people ploughing their savings into Isas compared with a year ago.

The BBA's report said: "There has been a lower take-up of Isas this year, with £5.3bn being deposited with high street banks during March to May, compared with £9bn in the same months of 2013".

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BNP Paribas Fined $9bn For Sanctions Busting

French bank BNP Paribas has agreed to pay a fine of $8.83bn (£5.16bn) after pleading guilty to sanction-busting charges in a New York court.

According to prosecutors, the bank evaded sanctions imposed by the US by facilitating transactions involving Sudan, Cuba, and Iran between 2004 and 2012.

The fine is almost as much as the bank's full-year pre-tax income of $11.2bn (£6.6bn).

BNP - France's biggest bank - is also likely to receive a year-long suspension from making dollar payments on behalf of clients in some businesses; an untested and potentially severe penalty.

The New York State Department of Financial Service proposed the ban as one of the conditions for not revoking the bank's licence to operate in New York.

US authorities have been examining whether BNP Paribas evaded sanctions by stripping identifying information from wire transfers so they could pass through the financial system unnoticed.

The bank evaded sanctions banning transactions with Sudan, Cuba and Iran

"BNP Paribas went to elaborate lengths to conceal prohibited transactions, cover its tracks and deceive US authorities," Attorney General Eric Holder said.

"These actions represent a series breach of US law."

 Assistant District Attorney Ted Starishevsky: "This conduct, this conspiracy was known and condoned at the highest levels of BNP."

Lawyers for BNP briefly appeared in court and pleaded guilty to one count of falsifying business records and one count of conspiracy.

French President Francois Hollande appealed directly to US President Barack Obama to demand that any penalties were fair and proportionate, however Mr Obama said it was a matter for the courts.

The bank is expected to be given six months to pay up, to allow it to implement restructure plans which could include lowering its dividend and raising funds by selling billions of euros of bonds next week, according to reports.

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Data Roaming Charges Cut By More Than Half

By Tom Cheshire, Technology Correspondent

The cost of accessing the internet on your phone abroad in EU countries falls by more than half today, with a new cap on data roaming charges.

The tariff, introduced by the European Commission, limits the price of one megabyte of data to 20 cents (16p) – a 55% decrease from this time last year.

Mobile providers must also offer travellers reduced text messages at 6 cents (5p), incoming calls at 5 cents per minute (4p) and outgoing calls at 19 cents per minute (15p).

However, British travellers will still pay considerably more abroad than at home.

In the UK, data costs around £10 per gigabyte. Under the new cap, a gigabyte downloaded abroad would cost £42.

The price cut comes before a major telecoms reform, due to take effect from December 15 next year.

Under the reforms, data roaming will be scrapped altogether in the EU and accessing internet data on a smartphone will cost as much abroad in the EU as in the UK.

The changes have been agreed by the commission and now must be ratified by EU member states.

Neeli Kroes, vice-president of the European Commission, said: "This huge drop in data roaming prices will make a big difference to all of us this summer.

"But it is not enough. Why should we have roaming charges at all in a single market? By the end of this year I hope we see the complete end of roaming charges agreed."

Some operators have warned that scrapping roaming could cost the telecoms industry £5.6bn before 2020.

But other mobile operators including Three have pressed ahead, offering free roaming in many EU countries, well in advance of the new rules.

The new rates apply only to EU member states – countries like Switzerland and Turkey are not affected, nor are countries outside Europe.

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Juncker 'Committed To Addressing UK Concerns'

Jean-Claude Juncker has told David Cameron he is "fully committed" to addressing the UK's political concerns in Europe.

The pair spoke after the Prime Minister telephoned Mr Juncker to congratulate him on securing the nomination for the EU's top job.

Last week, Mr Cameron had attempted to block the arch-federalist, who he claims is not the right man to force through the continent's reforms.

But writing in The Daily Telegraph after speaking to Mr Juncker, the Prime Minister said the pair could "do business" if there were concessions to Britain.

A Downing Street spokesman said: "The Prime Minister congratulated Mr Juncker on running a successful campaign and securing the Council nomination.

"They discussed how they would work together to make the EU more competitive and more flexible.

"The PM welcomed Mr Juncker's commitment of finding a fair deal for Britain and Mr Juncker said that he was fully committed to finding solutions for the political concerns of the UK.

Jeremy Hunt labelled Mr Juncker's backers "cowards"

"The PM wished Mr Juncker well with the hearings in the European Parliament and they agreed to speak further at the next European Council on 16 July."

The PM was one of just two leaders who opposed Mr Juncker as the next European Commission president.

The Tories have promised a referendum on EU membership should they win the next general election.

Health Secretary Jeremy Hunt labelled Mr Juncker's backers "cowards" and believes electing the former Luxembourg leader can only make a vote to quit more likely.

Labour said the failed negotiations over the appointment had been a "catastrophe" for Britain.

The party is attempting to keep up the pressure on the PM over the defeat, and Ed Miliband will get an opportunity to grill him in the Commons about the issue on Monday afternoon.

Labour claims the loss has taken the UK closer to the "exit door" which it believes could put three million jobs and tens of thousands of businesses at risk.

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BNP Paribas Fine To Be Announced In US Court

French bank BNP Paribas is expected to be hit with the biggest ever fine against a European bank later today, stemming from violations of United States law.

The US Justice Department will reveal the settlement, believed to total almost $9bn (£5.3bn), at a Manhattan Federal Court.

Sources have hinted that the penalties may also include temporary bans on some US denomination foreign exchange activity.

BNP Paribas, which is France's largest bank, is expected to be hit with a reduced dividend, lowered investment bank earnings and tighter capital ratios as a result.

The bank is set to plead guilty so that it can continue operations in the US, and retain its New York state banking licence.

The US Justice Department is planning a news conference in Washington to reveal further details of the offences, which are believed to relate to activity primarily with Sudan between 2002 and 2009.

On June 27, BNP chief executive officer Jean-Laurent Bonnafe sent staff an internal memo warning of a "heavy penalty".

He added: "However, the difficulties that we are currently experiencing must not affect our plans for the future."

The bank originally planned for a fine of around $1.1bn (£645m) but the expected fine almost matches its 2013 full-year pre-tax income of $11.2bn (£6.6bn).

French President Francois Hollande appealed directly to US President Barack Obama over penalties being fair and proportionate, however Mr Obama said it was a matter for the courts.

Legal action against BNP was taken over breaking sanction rules stipulated by the Office of Foreign Assets Control.

The bank has seen its share value drop by around a fifth this year, after it made an allowance for a $1.1bn (£650,000) fine.

It is expected to be given six months to pay the fines, to allow it to implement restructure plans.

In 2012, HSBC paid more than $1.9bn (£1.1bn) in penalties for violations over sanctions and secrecy law, in what was then a record fine.

HSBC was found to have allowed Mexican drug cartels launder hundreds of millions of dollars inside the US.

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Mortgage Approvals Fall To 11-Month Low

UK mortgage approvals have dropped to their lowest level since June last year, according to the Bank of England.

It said 61,707 loans were agreed in May, down from the April figure of 62,806.

New capping rules, known as the Mortgage Market Review, were brought in at the end of April to ensure borrowers have sufficient ability to increase repayments if rates rise.

More follows...

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Parcelforce Starts Seven-Day Delivery Service

Parcelforce, the express parcels business of Royal Mail, will today become the first national parcels carrier in Britain to deliver on Sundays.

The business said it anticipates the new service will be of particular benefit to online shoppers.

Among the first retailers to sign up is the department store Fortnum and Mason.

Iain Anderson, director of communications agency Cicero Group, said the move was about Royal Mail "sharpening up its act".

He told Sky News: "This is all about parcels not letters and what Royal Mail really see as an opportunity to hold onto market share.

"There is a lot of competition and seven-day trading is about making sure they maintain and, if they can, grow their market share.

"The significance of this is that by 2017 the vast majority of revenues and profits are going to be coming from parcels.

"This is all about making sure they can continue that trajectory because the letters business, for all mail providers with the growth of email, is in long-term decline."

The Communication Workers Union said it had reached an agreement that Sunday working would be voluntary, while negotiations will be held on new shift patterns.

National officer Terry Pullinger said: "Talks with Parcelforce management established a very important principle as far as employment security is concerned and we are delighted that we have had an assurance that permanent employees will be used to deliver this new exciting innovation to customers."

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Rates 'May Return To Pre-Recession Levels'

Homeowners should expect interest rates to return to their pre-recession levels within a decade, the Deputy Governor of the Bank of England has warned.

Last week the Bank's Governor Mark Carney suggested that even once borrowing costs rise, the "new normal" for them to settle at would be around 2.5% - significantly lower than the long-term average of 4-5%.

But in an exclusive interview with Sky News Sir Charlie Bean, the Bank's longest-serving senior policy maker, said that this lower rate was only caused by a range of temporary factors.

Sir Charlie said that in the "long term", meaning beyond five or ten years, it could easily rise again towards 5% - the level traditionally considered "neutral".

"It might be reasonable to think that in that long term you would go back to 5% but it's probably quite a long way down the road," he said.

Sir Charlie's comments will be welcomed by savers who have suffered ever since the Bank lowered interest rates to just 0.5% five years ago.

However, they may also alarm millions of mortgage holders who may struggle to make their repayments.

The deputy governor, whose term comes to an end on Monday, also said that markets' expectations that the first increase in interest rates would come at the turn of the year seemed "reasonable".

He added: "The market has rates going up to 2.5% over the next three years. That seems like broadly sensible judgement."

Sir Charlie also admitted that in the run up to the crisis he, along with other economists, was "not sufficiently cognisant of the risks building up in the financial system".

However, he said that he was leaving the Bank in safe hands, and the economy far more resilient than when he arrived in 2000.

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All Staff Get Rights To Work From Home

By Emma Birchley, Sky News correspondent

The right to request flexible working arrangements is about to be extended to apply to all staff and not just parents and carers.

From Monday, workers who have been in their job for six months will be able to ask for flexitime, to job share or to work from home.

The change will extend flexible working rights to around 20 million people.

Many businesses who already offer it say it increases staff motivation and productivity and reduces absence.

Workers may be able to avoid painful commutes to work

It has been an option for all employees at the small advertising agency Osbornenash in Norwich since they set up three years ago - and it has paid off.

Managing director Carole Osborne said: "For us as a business it has helped because we want to be able to recruit the best staff that we possibly can ... it's important that we are flexible around their lives and then also that they can be flexible around what we as a business offer our clients."

The company's senior art director, Neil Wright, has two young daughters and is able to change his hours to suit his family life.

"Obviously family is important to everyone particularly having two children and my wife also works full time," he said.

"It's very valuable to be able to balance life and work equally."

The team at Osbornenash support flexi hours

But employment lawyer Fraser Younson, a partner at Squire Patton Boggs, fears it could leave bosses with tough decisions about whose request to prioritise.

Flexibility will not be an option for all businesses and there are various grounds on which they can reject an application.

Christopher Soule, from the Federation of Small Businesses, said that one reason might be if the request worked out as too expensive for the employee's company.

But Mr Soule believes that many companies will embrace the opportunities.

"About 70% of our members already do some kind of flexible working," he said.

"It will make people think about whether it will help their business and improve their business and improve their staff relations."

Workers will have the right to appeal if the decision does not go their way and apply again 12 months later.

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