Tesco Shares Slump As Trading Woes Deepen

Tesco's share price took its biggest one-day hammering in more than two years on Friday after it slashed its profit forecast following a sales slump.

The supermarket chain, which has seen its position as the UK's market leader slowly eroded amid a price war with rivals, underlined the sense of internal crisis by announcing that its new chief executive Dave Lewis would now start work on Monday September 1 - a month early.

He replaces Philip Clarke who paid the price for a string of problems with the company's UK offering.

Tesco, which now issued three profit warnings this year, said Mr Lewis would review all aspects of the business and Mr Clarke would be available to him as a source of information though he would relinquish his position on Friday.

The chain now expected trading profit for 2014/15 to be in the range of £2.4bn to £2.5bn, compared with an analyst forecast of around £2.8bn.

Dave Lewis will review Tesco's business

The group also cut its interim dividend by 75% to 1.16p-per share - a move that will hit many pension funds - and confirmed that its store refresh programme which was ordered by Mr Clarke as part of efforts to improve Tesco's customer appeal, would be slowed.

It said the move would hold back £400m from its planned annual capital expenditure.

Tesco said: "The combination of challenging trading conditions and ongoing investment in our customer offer has continued to impact the expected financial performance of the group."

Chairman Sir Richard Broadbent added: "The board's priority is to improve the performance of the group.

"We have taken prudent and decisive action solely to that end."

Tesco's shares opened almost 9% lower at one stage before recovering some of that ground - while those of its rivals also suffered when the FTSE 100 opened for business.

Sainsbury's lost more than 5% while Morrisons' value slipped by 3.5%.

Hard discounters are challenging the dominance of the 'Big Four'

Asda is owned by US retailer Walmart and not listed in London.

The problems at Tesco underline a big challenge for the so-called 'Big Four' from hard discounters.

According to industry figures by Kantar Worldpanel released earlier this week, Tesco sales declined 4% in the 12 weeks to August 17 compared to the same period last year.

Kantar estimated the drop in sales cost Tesco £300m.

Tesco's turnaround efforts have included a new fuel offer

Morrisons has also been suffering in the battle with Aldi and Lidl, with Asda the only member of the Big Four to be growing its share.

Analysts have speculated that the savings Tesco is planning could allow it to cut prices further to tackle the discount threat.

Nicla Di Palma of Brewin Dolphin told Sky News: "Refreshing the stores and cutting costs are the two priorities. They need to get customers in."

Mike Dennis of Cantor Fitzgerald believed it could go further: "Tesco's investment in margin and recovery plan could easily wipe-out the majority of its main competitors' trading margins, forcing them to reduce their dividends and capital expenditure and also forcing the discounters back to a loss making position, as they were in 2009".

16.02 | 0 komentar | Read More

PPI Scandal: Lenders To Re-Open 2.5m Claims

The City regulator says banks and other lenders are to reassess more than 2.5 million payment protection insurance (PPI) complaints.

The Financial Conduct Authority (FCA) says the claims, which were made in 2012 and 2013, may have either been unfairly rejected or paid too little.

It intervened after investigating falling 'uphold' rates in relation to complaint volumes.

The scandal has resulted in 13 million complaints in total since 2007 - with victims receiving more than £16bn in redress since the FCA started tracking payments in 2011.

The sum is widely tipped to have risen above £20bn.

Lloyds has set aside more than £10bn for PPI compensation

The FCA added that seven-in-ten claims had been upheld in the consumer's favour since the scandal broke.

Martin Wheatley, its chief executive, said: "Making sure anybody previously mis-sold PPI is treated fairly now, and paid redress where its due, is an important step in rebuilding trust in financial institutions.

"In around two-and-a-half million complaints this was not necessarily the case so, at our request, firms will be looking at these complaints again.

"The process is now working well; in just over three years £16bn has been put back into the pocket of the consumer - that is unprecedented.

"Given the enormity of this exercise it is no surprise that there have been some issues along the way but our approach is delivering a good result for consumers."

The FCA issued its update as the Financial Ombudsman Service remains jammed with complaints about PPI.

It has received over one million complaints from people unhappy with the response from their provider, equal to about a quarter of all rejected complaints.

The cash which has found its way back to PPI mis-selling victims has been credited with boosting the UK's economic recovery - particularly the car and property markets - but also wider consumer spending.

:: In a separate announcement Coutts, the private bank that counts the Queen among its clients, has set aside £110m to compensate thousands of customers who may have been sold unsuitable investments.

Its review of advice to clients dated back as far as 1950.

Coutts confirmed the news days after its parent firm, Royal Bank of Scotland, was fined £14.5m for "serious failings" in its advice to mortgage customers from June 2011 to March 2013.

16.02 | 0 komentar | Read More

Lib Dems Promise Six Weeks' Paternity Leave

The Liberal Democrats will promise fathers an extra four weeks' paternity leave under new manifesto plans due to be announced.

The policy would extend the total parental leave to 58 weeks by extending fathers' current entitlement of two weeks to six.

Under the plans, the law would be amended to provide parental rights to cover six weeks reserved for working fathers and six weeks for working mothers.

The remaining time would be available to share between partners.

For same-sex couples, each partner would be entitled to six weeks' reserved leave, with the rest available to share.

The policy goes further than the Coalition's introduction of shared parental leave from next April.

Business and Equalities Minister Jo Swinson said shared paternal leave plays an essential part in building a stronger economy and a fairer society.

"It allows couples to choose how to split time off work to look after their new baby," she said.

"Extending paternity leave is an important next step to encouraging new dads to spend more time with their child in those vital early weeks and months after birth.

"When parents share caring responsibilities, more equality in the workplace will follow.

"It is a nonsense to think it is only the mother's job to look after children. Parenting is a shared responsibility."

A Lib Dem spokeswoman said the policy would also encourage fathers to spend more time with their children.

"It's very important to us. We have done lots in government so far to make sure fathers get more rights," she said.

"This is just the extra step in encouraging them to spend more time with their children."

16.02 | 0 komentar | Read More

Malaysia Airlines Shake-Up After Planes Lost

The impact on Malaysia Airlines from the disappearance of MH370 and shooting down of MH17 has forced it to cut 6,000 jobs.

The tragedies - in March and July respectively - compounded long-running losses at the airline which prompted it to confirm a restructuring of its business.

It said 30% of its workforce would go under the plans, which would also see the company going into private hands again for a minimum of three years.

Its majority owner, the Khazanah Nasional state fund, said Malaysia would be taken off the stock market by the end of the year so it could undergo the painful changes - with the bill estimated at $1.9bn (£1.15bn).

Khazanah forecast a return to profitability within three years of its de-listing.

On Thursday, Malaysia announced its second-quarter net loss had widened in the wake of the mysterious disappearance of Flight MH370 with 239 people aboard - 153 of them Chinese - after flying far off course from Kuala Lumpur to Beijing.

It warned that the shooting down of MH17 over Ukraine - while not reflected in its financial figures for March to June - would be reflected in its earnings for the rest of the year as passenger numbers fell.

Khazanah Managing Director Azman Mokhtar said: "Recent tragic events and ongoing difficulties at Malaysia have created a perfect storm that is allowing this restructuring to take place".

More follows...

16.02 | 0 komentar | Read More

Tesco Shares Slump As Trading Woes Deepen

Tesco's share price has taken its biggest one-day hammering in more than two years after it confirmed it was slashing its trading profit forecast following a sales slump.

The supermarket chain, which has seen its position as the UK's market leader slowly eroded amid a price war with rivals, said its new chief executive Dave Lewis would now start work on September 1 - a month early.

He replaces Philip Clarke who paid the price for a string of problems with the company's UK offering.

Tesco, which issued a profit warning in July, said Mr Lewis would review all aspects of the business.

It now expected trading profit for 2014/15 to be in the range of £2.4bn to £2.5bn, compared with an analyst forecast of around £2.8bn.

Dave Lewis will review Tesco's business

The group also cut its interim dividend by 75% to 1.16p-per share - a move that will hit many pension funds and confirmed that its store refresh programme - ordered by Mr Clarke as part of efforts to improve Tesco's customer appeal - would be slowed.

It said the move would hold back £400m from its planned annual capital expenditure.

Tesco said: "The combination of challenging trading conditions and ongoing investment in our customer offer has continued to impact the expected financial performance of the group."

Chairman Sir Richard Broadbent added: "The board's priority is to improve the performance of the group.

"We have taken prudent and decisive action solely to that end."

Tesco's shares opened almost 9% lower - while those of its rivals also suffered when the FTSE 100 opened for business.

Sainsbury's lost more than 5% while Morrisons' value slipped by 3.5%.

Asda is owned by US retailer Walmart and not listed in London.

The problems at Tesco underline a big challenge for the so-called 'Big Four' from hard discounters.

According to industry figures by Kantar Worldpanel released earlier this week, Tesco sales declined 4% in the 12 weeks to August 17 compared to the same period last year.

Kantar estimated the drop in sales lost Tesco £300m.

Morrisons has also been suffering in the battle with Aldi and Lidl, with Asda the only member of the Big Four to be growing its share.

16.02 | 0 komentar | Read More

Water Bills Set To Fall Over Next Five Years

Water bills are on course to fall 5% on average in real terms over the next five years - if the industry regulator gets its way.

Ofwat confirmed its draft determination for household water and sewerage bills for the 2015-2020 period while announcing its plans would also see the rollout of a £43bn investment programme.

The price controls - for all 18 water companies in England and Wales - are set by the regulator because of the industry's regional monopoly structure.

A final ruling will be made in December but the regulator said its draft decision would result in a series of benefits for customers.

They included an average 40% reduction in the time lost to supply interruptions, fewer instances of sewer flooding and cleaner water at more than 50 beaches.

So-called 'fatbergs' have become a growing city sewer problem

Ofwat said a saving of at least 340 million litres a day through tackling leakage and promoting water efficiency would be enough to serve each home in Birmingham, Liverpool and Leeds put together.

Most companies put forward lower bills in business plans submitted in June, with the exception of Thames Water and Dee Valley Water.

Thames, the country's biggest water firm, argued it needed more money to modernise London's Victorian-era pipe network.

It is planning a 15-mile 'super sewer', which would halt the release of raw material into the river at times of high rainfall and sewer volumes.

The regulator has challenged the estimated cost of £4.2bn.

Ofwat chief executive Cathryn Ross said today: "This is good news for customers - with bills held down and better service.

"Our challenge to companies has resulted in the sector's biggest ever customer conversation.

"Delivering for customers rather than ticking regulatory boxes will drive what companies do over the next five years. Some will find this tough, but companies which really stretch themselves will reap the benefits of increased customer trust and confidence."

16.02 | 0 komentar | Read More

Leaders Clash Over Currency In Scotland Debate

First Minister Alex Salmond and Better Together leader Alistair Darling have clashed on using the pound in a fiery final debate on Scottish independence.

The 90-minute debate, held in front of an audience of 200 at Glasgow's Kelvingrove Museum and Art Gallery, offered both men a key opportunity to appeal to voters ahead of the referendum on September 18.

North Sea oil, the National Health Service, welfare reform and Trident nuclear missile submarines at Faslane were also at the centre of the BBC-hosted face-off.

Mr Salmond ventures out from behind his rostrum to make a point

Answering questions on the currency union, Mr Salmond said: "No one can stop us using the pound sterling, it's an internationally tradeable currency.

"I'm seeking the best option for Scotland, so our prosperous economy keeps the pound sterling."

Mr Darling replied: "You are taking a huge risk if you think it is just all going to fall into place.

"I think the currency union would be bad for Scotland because our budget would have to be approved not by us, but what would then be a foreign country."

Mr Darling attacked his opponent as having "no plan B" on currency union

Both men also clashed over a "plan B" if a currency union failed, with Mr Salmond claiming he had three alternative options, including a Scottish currency, a flexible currency union and a fixed exchange rate, and also hinting at a refusal to meet debt obligations if a formal agreement could not be reached.

Mr Darling also admitted Scotland could still use sterling, even if an agreement failed.

During the debate, Mr Salmond used the tactic of walking out from behind his rostrum to answer questions put by members of the audience.

Sky News Political Editor Faisal Islam tweeted: "The first minister has gone walkies, abandoning the rostrum, whilst riffing on currency union... Sensational!"

North Sea oil was at the centre of the debate again

Mr Darling questioned North Sea oil revenue figures provided by the Yes campaign, and said: "You are promising all sorts of things on the basis of a revenue that is very volatile.

"To rely so much on something ... it is gambling our children's future which is totally unacceptable."

Both men had promised to create a fairer Scotland in their opening statements at the start of the debate.

Mr Salmond said: "We are a rich nation, a resourceful people. We can create a prosperous nations and a fairer society, a real vision for the people of Scotland.

"This is our time, it's our moment, let us do it now."

Polls put the Better Together campaign in the lead ahead of the referendum

The former Chancellor replied: "I know people want change, but they also want security on jobs, on pensions, on their children's future.

"A good line is not always a good answer, it's answers now we need."

He had questioned Mr Salmond on currency plans for an independent Scotland in the first TV debate on August 5.

Mr Salmond also targeted his opponent's links to the Westminster establishment, accusing the life-long Labour politician of being "in bed with the Tory party".

Mr Darling drew on his experience as Chancellor to warn of the risks of going it alone - including over-reliance on unpredictable oil revenues and vulnerability to economic turmoil like that of the 2008 global financial crisis.

Voters have to register to cast postal ballots by September 3, meaning some could cast their votes within days.

After the debate, a Sky News poll carried out on Twitter saw more than 2,000 retweets for a Salmond win, compared to under 500 claiming Darling had topped the debate.

A Guardian/ICM poll gave the debate to Mr Salmond with 71% of the vote.

Mr Darling was widely judged to have won the first.

A poll of polls, carried out by Sky News before the debate, put 39% in favour of Scottish independence, with 50% against and another 11% undecided.

16.01 | 0 komentar | Read More

Burger King Faces US Tax Backlash On Takeover

Burger King's plan to buy a Canadian coffee and doughnut chain and shift its tax base there has been met with boycott threats among some US customers.

While investors in both Burger King and Tim Hortons showed great appetite for the deal - with shares in both firms rising more than 20% on Monday - some of the burger chain's US customers found the so-called tax inversion aspect - the shifting of a firm's tax base to another country - hard to swallow.

While a tie-up would create the world's third-largest fast food restaurant firm with 18,000 restaurants in 100 countries and about $22bn in sales, it would also significantly cut Burger King's tax burden.

A recent report by KPMG found total tax costs in Canada are 46.4% lower than in the United States.

President Barack Obama and Congress have criticised inversions because they mean a loss of tax revenue for the US government.

Facebook users vent their fury on Burger King's page

White House spokesman Josh Earnest would not comment on Burger King's announcement on Monday, but said the president generally believed it was unfair for companies to pursue a tax inversion merely to pay less in taxes.

By Tuesday morning, Burger King's Facebook page had more than 3,000 mostly negative comments about the potential deal.

One customer, Monica Marsh, wrote: "I eat at Burger King about twice a month or so, but if you buy Tim Hortons and move your headquarters to Canada to reduce how much you pay in American corporate taxes, I will reduce how much I spend of my American dollars and find a new burger joint to frequent."

A representative for Burger King, Miguel Piedra, said the comments on Burger King's Facebook page represented a small fraction of the company's more than seven million followers on the social media site.

Burger King is not the first company to face fallout over a tax inversion.

Pharmaceutical firm AbbVie and Valeant Pharmaceuticals have recently pursued such deals to cut their costs.

Earlier this month, Walgreen abandoned plans to pursue a tax inversion after negative publicity about the planned move.

16.01 | 0 komentar | Read More

Scotland Debate: The Facts Behind The Arguments

Full Fact - an independent fact checking organisation - checks the statements made by both sides during the second Scottish referendum debate.

CURRENCY:

Alex Salmond: "No-one can stop us using the pound sterling, it's an internationally tradeable currency."

Full Fact: He is not wrong - an independent Scotland could continue to use the pound without the agreement of the UK government. Salmond would prefer to keep it in a formal currency union, aiming to give the Scottish government some influence over interest and exchange rates. That would require the agreement of the UK government, something that's been ruled out by all main UK parties. If there is no agreement, Scotland is left with three other options: it could keep the pound informally without agreement, adopt the euro or introduce a new Scottish currency.

PENSIONS:

Full Fact: Scottish government proposals mean the new state pension could be more generous in an independent Scotland. It would keep some pension benefits that are being stopped and may not increase pension age to 67 as soon as in rest of the UK. The new state pension level would initially be as high or higher than the UK amount and would have the potential to increase by more each year than in the UK.

One reason they think this could be affordable is that pensioners in Scotland have a lower life expectancy than those in the rest of the UK. Nevertheless, it all costs money and it could be more because Scotland's population is ageing faster than in the rest of the UK.

TAXES:

Full Fact: In terms of taxes generated per person, Scotland either generates just under the UK average or significantly over the UK average, depending on the oil and gas division.

Spending per person in Scotland is also higher than the UK average.

That is because it runs at a deficit which means it spends more than it generates in taxes - much like the UK does and like 26 other countries in the OECD did in 2013.

REPRESENTATION:

Full Fact: Alex Salmond signed off by saying it was an opportunity for people in Scotland finally to get the government they voted for. He has a point: if you look at Scotland alone, Labour's won every general election since 1959. Meanwhile in Westminster the Conservatives and Labour divided the spoils evenly, winning six elections each, and two hung Parliaments.

TRUST:

Full Fact: We asked Ipsos MORI Scotland how easy or difficult people were finding it to get trustworthy information about the referendum. They polled 1,006 Scots between July 28 and August 3. The reaction to these results on twitter suggests the debate didn't solve the problem.

16.01 | 0 komentar | Read More

Current Account Exodus At Troubled Co-op Bank

The troubled Co-op Bank has revealed it lost almost 30,000 current account customers in the first half of its financial year.

The bank, which was forced to raise almost £2bn to plug a capital black hole last year, reported significantly lower losses of £75.8m for the period compared to the same time during 2013 and said its wider financial position was improving despite "deep-rooted" problems remaining.

It shed 13% of its permanent staff, closed 46 branches over the six month period and said it lost 28,199 current account holders, although its net customer number losses has since slowed, it said.

It blamed "negative publicity and significant competitor activity" for the near-2% fall.

Sky News reported on Thursday night that the bank was facing demands from some of its biggest shareholders to accelerate an overhaul of its operations and commercial strategy - as losses were expected to continue for two years.

But in its results statement, chief executive Niall Booker said Co-op Bank had made progress since its rescue from near-collapse - a deal that saw the supposedly ethical bank give up control to US hedge funds.

The bank said its capital position had been strengthened following a £400m capital-raising.

Mr Booker said: "Considering the scale of the challenge we faced a year ago, we are encouraged by the progress made to ensure the stability of the bank.

"The core bank continues to remain stable. In the first half of the year more people switched into the bank than in the second half of 2013.

"Although we have also seen an increase in the number of people switching out of the bank, the net numbers remain small relative to our total number of current account customers whose continuing loyalty is deeply appreciated.

"Recent trends suggest this net outflow of retail customers has slowed."

The bank's problems have been at the centre of a wider crisis for the Co-operative Group, which reported a £2.5bn loss for 2013 as its exposure to the bank hit earnings.

A report on the bank's near collapse and subsequent rescue, which saw the group's stake reduced to just 20%, pinned the blame on toxic loans inherited from its disastrous merger with the Britannia building society in 2009 amid a series of management and cultural failures.

In May, the Co-op Group's members backed radical plans by the former City minister Lord Myners to sweep away its existing 20-strong board and replace it with a more plc-style structure, staffed by professionally-trained directors.

16.01 | 0 komentar | Read More

Draghi: ECB Ready To Spur On Euro Economy

The boss of the European Central Bank (ECB) has revealed it is ready to do more to boost a shaky recovery in Europe.

But Mario Draghi warned EU member governments they must still join in efforts to reduce unemployment, which remains stubbornly high.

Mr Draghi said: "I am confident that the package of measures we announced in June will indeed provide the intended boost to demand, and we stand ready to adjust our policy stance further."

So far the ECB has cut interest rates, offered cheap loans to banks and is weighing up asset purchases to help stimulate the 18-member eurozone.

The ECB has already pumped unprecedented amounts of liquidity into the banking system back in 2011 and 2012, but instead of lending the money on to businesses banks tended to park the cash with the ECB instead.

In June, the ECB created a negative interest rate to encourage banks to lend more.

Mr Draghi also said certain longstanding practices in some countries are helping to keep unemployment high.

He said freer wage adjustments and workforce levels would encourage companies to hire.

Mr Draghi made the comments as part of his speech at the US Federal Reserve conference in Jackson Hole, Wyoming.

Meanwhile, US shares eased on Friday after the Jackson Hole speech by Fed boss Janet Yellen left investors unsure on the possibility of a rate rise in coming months.

She said the financial crash complicated the Fed's ability to assess the US job market and made it harder to determine when to adjust interest rates.

Ms Yellen's remarks failed to offer strong signs that indicate she is moving away from the view of support through ultra-low interest rates.

The timing of a Fed rate increase remains unclear, though many economists foresee an increase by mid-2015.

16.01 | 0 komentar | Read More

Ecclestone Return Heralds New F1 Board Revamp

By Mark Kleinman, City Editor

Formula One (F1) motor racing is preparing for further governance changes as the sport's boss, Bernie Ecclestone, retakes his boardroom seat following a £60m bribery trial settlement.

Sky News understands that Lehman Brothers Holdings Inc, which administers the estate of the bankrupt Wall Street investment bank and is F1's third-largest shareholder, is poised to name Sean Mahoney as its board representative.

Mr Mahoney, a former Goldman Sachs and Deutsche Bank executive, is expected to join the board of Delta Topco ahead of the next scheduled meeting of directors in September.

His arrival will follow a change of the director nominated by Waddell & Reed, a US-based fund manager, which recently named Michael Avery to represent its substantial minority stake in F1.

A director of Delphi Automotive, Mr Mahoney will replace Peter Sherratt, a former Lehman executive, at an important time for F1's ownership.

The Lehman estate is keen to sell its roughly 15% stake in F1, and has been approached by the US media groups Discovery Communications and Liberty Global about a possible deal.

Mr Ecclestone, who stood down from the Delta Topco board earlier this year pending the outcome of his bribery trial in Germany, will resume his place on the board after settling with prosecutors.

Speaking at Belgium's Spa-Francorchamps circuit on Friday ahead of this weekend's Grand Prix, Mr Ecclestone said he hoped to continue running F1 for as long as possible, adding that being reinstated to the board would make "no difference".

CVC Capital Partners, the private equity firm which took control of F1 in 2005, still owns approximately 35% of the sport but is likely to sell that stake or mount a renewed attempt to float the company in the next 12 months.

Last month, Delta Topco's board approved a £585m dividend payout financed through a renegotiation of the company's borrowing arrangements.

Another of F1's minority shareholders, Norway's vast sovereign wealth fund, has faced domestic criticism over its investment in the sport because of its mandate to own shares only in public companies or those which have concrete intentions to list on a stock exchange.

CVC declined to comment on Friday while Mr Mahoney could not be reached.

16.01 | 0 komentar | Read More

Current Account Exodus At Troubled Co-op Bank

The troubled Co-op Bank has revealed it lost almost 30,000 current account customers in the first half of its financial year.

The bank, which was forced to raise almost £2bn to plug a capital black hole last year, reported significantly lower losses of £75.8m for the period compared to the same time during 2013 and said its wider financial position was improving despite "deep-rooted" problems remaining.

It shed 13% of its permanent staff, closed 46 branches over the six month period and said it lost 28,199 current account holders, although its net customer number losses has since slowed, it said.

It blamed "negative publicity and significant competitor activity" for the near-2% fall.

Sky News reported on Thursday night that the bank was facing demands from some of its biggest shareholders to accelerate an overhaul of its operations and commercial strategy - as losses were expected to continue for two years.

But in its results statement, chief executive Niall Booker said Co-op Bank had made progress since its rescue from near-collapse - a deal that saw the supposedly ethical bank give up control to US hedge funds.

The bank said its capital position had been strengthened following a £400m capital-raising.

Mr Booker said: "Considering the scale of the challenge we faced a year ago, we are encouraged by the progress made to ensure the stability of the bank.

"The core bank continues to remain stable. In the first half of the year more people switched into the bank than in the second half of 2013.

"Although we have also seen an increase in the number of people switching out of the bank, the net numbers remain small relative to our total number of current account customers whose continuing loyalty is deeply appreciated.

"Recent trends suggest this net outflow of retail customers has slowed."

The bank's problems have been at the centre of a wider crisis for the Co-operative Group, which reported a £2.5bn loss for 2013 as its exposure to the bank hit earnings.

A report on the bank's near collapse and subsequent rescue, which saw the group's stake reduced to just 20%, pinned the blame on toxic loans inherited from its disastrous merger with the Britannia building society in 2009 amid a series of management and cultural failures.

In May, the Co-op Group's members backed radical plans by the former City minister Lord Myners to sweep away its existing 20-strong board and replace it with a more plc-style structure, staffed by professionally-trained directors.

16.02 | 0 komentar | Read More

Draghi: ECB Ready To Spur On Euro Economy

The boss of the European Central Bank (ECB) has revealed it is ready to do more to boost a shaky recovery in Europe.

But Mario Draghi warned EU member governments they must still join in efforts to reduce unemployment, which remains stubbornly high.

Mr Draghi said: "I am confident that the package of measures we announced in June will indeed provide the intended boost to demand, and we stand ready to adjust our policy stance further."

So far the ECB has cut interest rates, offered cheap loans to banks and is weighing up asset purchases to help stimulate the 18-member eurozone.

The ECB has already pumped unprecedented amounts of liquidity into the banking system back in 2011 and 2012, but instead of lending the money on to businesses banks tended to park the cash with the ECB instead.

In June, the ECB created a negative interest rate to encourage banks to lend more.

Mr Draghi also said certain longstanding practices in some countries are helping to keep unemployment high.

He said freer wage adjustments and workforce levels would encourage companies to hire.

Mr Draghi made the comments as part of his speech at the US Federal Reserve conference in Jackson Hole, Wyoming.

Meanwhile, US shares eased on Friday after the Jackson Hole speech by Fed boss Janet Yellen left investors unsure on the possibility of a rate rise in coming months.

She said the financial crash complicated the Fed's ability to assess the US job market and made it harder to determine when to adjust interest rates.

Ms Yellen's remarks failed to offer strong signs that indicate she is moving away from the view of support through ultra-low interest rates.

The timing of a Fed rate increase remains unclear, though many economists foresee an increase by mid-2015.

16.02 | 0 komentar | Read More

Ecclestone Return Heralds New F1 Board Revamp

By Mark Kleinman, City Editor

Formula One (F1) motor racing is preparing for further governance changes as the sport's boss, Bernie Ecclestone, retakes his boardroom seat following a £60m bribery trial settlement.

Sky News understands that Lehman Brothers Holdings Inc, which administers the estate of the bankrupt Wall Street investment bank and is F1's third-largest shareholder, is poised to name Sean Mahoney as its board representative.

Mr Mahoney, a former Goldman Sachs and Deutsche Bank executive, is expected to join the board of Delta Topco ahead of the next scheduled meeting of directors in September.

His arrival will follow a change of the director nominated by Waddell & Reed, a US-based fund manager, which recently named Michael Avery to represent its substantial minority stake in F1.

A director of Delphi Automotive, Mr Mahoney will replace Peter Sherratt, a former Lehman executive, at an important time for F1's ownership.

The Lehman estate is keen to sell its roughly 15% stake in F1, and has been approached by the US media groups Discovery Communications and Liberty Global about a possible deal.

Mr Ecclestone, who stood down from the Delta Topco board earlier this year pending the outcome of his bribery trial in Germany, will resume his place on the board after settling with prosecutors.

Speaking at Belgium's Spa-Francorchamps circuit on Friday ahead of this weekend's Grand Prix, Mr Ecclestone said he hoped to continue running F1 for as long as possible, adding that being reinstated to the board would make "no difference".

CVC Capital Partners, the private equity firm which took control of F1 in 2005, still owns approximately 35% of the sport but is likely to sell that stake or mount a renewed attempt to float the company in the next 12 months.

Last month, Delta Topco's board approved a £585m dividend payout financed through a renegotiation of the company's borrowing arrangements.

Another of F1's minority shareholders, Norway's vast sovereign wealth fund, has faced domestic criticism over its investment in the sport because of its mandate to own shares only in public companies or those which have concrete intentions to list on a stock exchange.

CVC declined to comment on Friday while Mr Mahoney could not be reached.

16.02 | 0 komentar | Read More