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Bank 'Gloomier' As Economy Woes Hit Markets

Written By Unknown on Sabtu, 18 Oktober 2014 | 16.01

The Bank of England's chief economist has spoken of his concerns for the UK's economic outlook as it writhes in both "agony and ecstasy" alongside weaker global growth.

Andy Haldane told a business audience the Bank may need to keep interest rates lower for longer than previously thought to reduce the chance of the economy slipping into long-term stagnation.

He cited greater financial and political risks and the danger that wages and productivity might continue to fail to recover as forecast.

"Put in rather plainer English, I am gloomier," he said.

"This implies interest rates could remain lower for longer, certainly than I had expected three months ago."

His remarks came at the end of a week in which stock markets tumbled and pushed back their expectations for the timing of the first UK rate rise to towards the back end of next year.

Video: Investing? Stocks, Savings Or ISAs?

Fears of recession in the eurozone, weakness in the US and China and an end to the US Federal Reserve's quantitative easing (QE) programme contributed to the sell-off that saw £50bn wiped from the value of the FTSE 100 in just two days.

The London market was over 1% higher on Friday and the pound lost half a cent against the dollar in the wake of Mr Haldane's comments.

He said Britain's economy was "writhing in both agony and ecstasy" amid the volatility and raised the spectre of "secular stagnation", meaning a long period of negligible growth as a result of the world's woes.

"If there is genuine uncertainty about the path of the economy, the optimal policy response may be to avoid the worst outcomes", he said.

The UK's economy has been growing steadily this year - outperforming the G20 - with growth of 0.9% measured in the second quarter and unemployment falling to a 6% rate.

But wage growth remains muted and inflation is falling - with both factors a problem for a recovery largely built on consumer spending.

While they formed part of Mr Haldane's argument on UK policy, the country's economic performance is in stark contrast to that of its biggest trading partner, the eurozone.

The IMF recently forecast a 40% chance of eurozone recession - with even Germany on the brink - as the area battles low inflation, high unemployment and higher risks associated with the west's sanctions against Russia over Ukraine.

It was revealed on Thursday that five nations using the single currency had slipped into deflation while Greece's borrowing costs rose to 9% - a level seen as unaffordable again amid concerns relating to its bailout programmes.

The European Central Bank is under pressure to launch its own programme of QE to provide stimulus.

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Virgin Money Delays Float Amid Market Chaos

By Mark Kleinman, City Editor

Virgin Money is extending the timetable for its £2bn stock market listing because of market volatility which has prompted the collapse of several high-profile City deals.

Confirming a report by Sky News the bank, which is part-owned by Sir Richard Branson's Virgin Group, issued a statement on Friday saying that it will delay a plan to sell shares on the London Stock Exchange until after the end of this month.

"Virgin Money continues to progress its plan for an initial public offering, mindful of market conditions. It now expects admission to occur later than October 2014 and as soon as constructive market conditions allow," the company said.

Its chief executive, Jayne-Anne Gadhia, said:

"Virgin Money continues to perform strongly and we remain focused on delivering a successful initial public offering as soon as market conditions allow."

In a statement issued on 2 October, Virgin Money had said that it expected admission of its shares to the London market to take place before the end of October.

Sources insisted that the plan to raise £150m by selling shares in the company was still on track to take place following positive initial discussions with potential investors.

Earlier this week, Aldermore, another so-called challenger bank, said it was abandoning its flotation because of the tough equity market conditions which have seen the FTSE-100 have its worst week for many months.

Scotland's rejection of independence in last month's referendum and Virgin Money's strong recent trading had persuaded the bank's board to press ahead with a flotation this year, rather than waiting until 2015.

Virgin Group and WL Ross, a US-based investment vehicle, collectively own just over 90% of the bank, plan to educe their stakes in order to comply with listing authorities' requirements relating to the number of shares which must be freely floated.

Virgin Money declined to comment.

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UK Banks To Take Forex Fines Hit Within Weeks

By Mark Kleinman, City Editor

Some of Britain's biggest banks will set aside hundreds of millions of pounds in the next few weeks as they prepare to settle with regulators after a probe into the manipulation of foreign exchange markets.

Sky News has learned that Barclays, HSBC and Royal Bank of Scotland (RBS) are all preparing to allocate substantial provisions ahead of a prospective deal with the Financial Conduct Authority (FCA).

Insiders said that at least one of the banks was likely to set aside a much higher figure than its anticipated FCA fine amid ongoing discussions with authorities in the US.

They added that the foreign exchange probe would see well over £500m set aside by the three banks in aggregate when they report third-quarter results within the space of a few days at the end of the month.

The provisions, which will follow similar moves this week by Citigroup and JP Morgan, follow crunch talks held between the banks and the FCA in September.

Sky News exclusively revealed details of those discussions, although sources said the aggregate penalty for the six banks in settlement talks was likely to be lower than the £2bn indicated at the time.

The so-called omnibus settlement, which the banks have been keen to coordinate with the FCA, will be the largest group penalty ever imposed by the City watchdog.

The FCA will find the banks guilty of a string of systems and control failures in their foreign exchange businesses following the emergence of concerns that currency markets had been manipulated in a similar way to interbank borrowing rates such as Libor.

The six banks, which also include UBS, are likely to finalise their settlement with the FCA by the end of next month, although the timetable could slip.

One executive said the fact that the regulator had indicated the scale of potential fines meant they were under pressure from auditors to set aside provisions in their third-quarter numbers.

The UK banks are still discussing internally whether to top up their warchests for regulatory settlements to encompass other national regulators as well as the FCA.

One source said at least one major British lender would also increase its compensation tab for mis-selling payment protection insurance in the coming weeks.

Barclays, HSBC and RBS declined to comment.

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Apple Unveils New iPads And Launches Apple Pay

Written By Unknown on Jumat, 17 Oktober 2014 | 16.01

Apple has launched two new iPads - featuring Touch ID fingerprint sensors and a camera 'burst mode'.

The iPad Air 2 and iPad Mini 3 were unveiled by Apple hours after their details were apparently leaked by mistake on the technology giant's website.

But many online commentators speculated that the leak was deliberate, and designed to overshadow the launch of Google's new operating system called Lollipop.

The new features are relatively minor, however.

Touch ID has been a feature of new iPhones for more than a year, while burst mode - letting a user take multiple shots within a split second of each other on the Air model - is not a huge breakthrough.

Video: Sept: Complaints Of Bendy iPhone 6

The iPad Mini will also get an iSight camera - the front-facing camera used for selfies and FaceTime calls.

But Ernest Doku, from uSwitch.com, was underwhelmed, saying: "One problem Apple faces is that, without a finite network contract to concentrate their minds, tablet owners need more persuading to upgrade than phone users.

"Launching new tablets every year with minor improvements won't do it. Only giant leaps forward will provide the wow factor needed to drive new sales in an increasingly saturated market."

Extra features complement the boosted processor power and better camera optics which come with each new iDevice iteration.

Video: Sept: Hundreds Queue For New iPhone

The iPad Air range is Apple's main tablet and starts at $499 (£312) - while the iPad Mini has a reduced size and costs $399 (£249).

Pre-orders for the two new devices will begin on Friday.

The company also announced that its mobile payment service, Apple Pay, will begin rolling out on Monday - but only in the US.

Another 500 banks have apparently signed up to support a feature that competes with PayPal and other online systems.

Video: Sept: Supersize iPhone 6 And Watch

Meanwhile, Apple confirmed that its desktop computer, the Mac, is also receiving an update to mark its 30th birthday.

The new iMac will have a Retina 5K display - which at 14.7 million pixels makes it the company's version of HD.

"This is the strongest product line-up we've ever had," said CEO Tim Cook.

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Global Markets Q&A: What Is Causing The Fall?

Volatile trading has continued into a second day after weak growth reports sparked a big sell-off earlier this week. But what has caused the markets to get jittery?

:: Why are markets plunging?

Good question. As ever with global markets, there's no straightforward answer, but here are three likely factors: first, the economy in the eurozone is doing worse than many expected, so you would expect share prices, which have raced away in recent months, to come down.

Second, with the eurozone facing a possible recession, threatening to drag the rest of the world into a slump, and with China and other emerging economies weaker, it's not clear who will play the role of global economic powerhouse in the coming year.

Third, there are some who fear that the share price gains of the past few years are simply a temporary sugar high fuelled by central banks pumping cash into the system.

Video: Market Sell-Off: What Is To Blame?

:: But the UK is outperforming the G20, isn't it? So are we immune?

As a small, open, highly-financialised economy, Britain is highly sensitive to changes in the international economy – and nowhere more so than the euro area.

Just over 50% of UK goods exports go to the EU, compared with just over 13% to the US and just over 4% to China.

Indeed, economists think if there is a recession in the euro area that could cause annual UK GDP growth, currently more than 3% a year, to drop into negative territory.

:: To what extent has the ebola outbreak contributed to growth and investor concerns?

It has certainly added to the sense of unease, alongside the rise of Islamic State, the growth of extremist political parties in the EU and the prospect of a UK referendum on EU membership.

It is difficult to pinpoint precisely how much influence each factor has on confidence.

:: A core concern worldwide is low inflation. Surely weaker price increases is a good thing for me?

Well strictly speaking higher inflation tends to be good for debtors and bad for savers.

But the worry here is less about investors and more about what low inflation is telling us about the growth prospects of the eurozone.

Twelve of the 28 EU member states have zero inflation or deflation (falling prices), and falling prices (and wages) are usually a sign of an economy which is facing a pay cut and struggling to generate growth.

:: The eurozone looks to be heading towards recession again. Who is to blame?

For the time being, this is a different crisis to the existential crisis we saw a couple of years ago (where it looked like the single currency was about to break apart).

But now the eurozone's long-standing weaknesses (poor demographics, high public spending, unreformed labour markets) are coming back to haunt it.

Video: Market Jitters: US Growth 'To Win'

Those kinds of problems - as rife in France and Italy as other smaller, Mediterranean economies - will take years to resolve, and there is little sign politicians are getting any closer to doing so (certainly in France).

:: Germany is Europe's biggest economy. Why is it now suddenly facing a downturn?

Partly because its neighbours aren't doing all that well. Partly because it has been more affected than most by sanctions on Russia. Partly it has been affected by the relative strength of the euro in the past few years.

But there are also complaints that its government hasn't done enough to get growth going.

The International Monetary Fund, among others, believes it should be spending more on infrastructure to help kick-start economic activity.

:: Greece was the first euro nation to get a bailout during the debt crisis. Why is it still struggling when other nations such as Ireland have recovered?

Actually in some senses it is doing a lot better than expected.

Next year, according to the IMF, Greece will grow faster than any other eurozone economy apart from Ireland.

However, for one thing, unemployment remains eye-wateringly high. Second, and most worrying as far as markets are concerned, the coalition government looks weak, and could conceivably collapse in the coming months.

That brings its capacity to exit its bailout programme into question.

:: What measures/actions would you suggest to get the world economy moving forward?

As a mere journalist I would tend to leave such judgements to actual policymakers and economists.

However a few ideas that have been suggested include: quantitative easing (eg money creation) from the European Central Bank - though that is fraught with difficulties, notably the refusal of the Bundesbank to co-operate.

Clearly some euro members desperately need to reform their public sectors. But unfortunately there are no easy answers for the current malaise, which is why markets remain so concerned.

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Bank 'Gloomier' As Economy Woes Hit Markets

The Bank of England's chief economist has spoken of his concerns for the UK's economic outlook as it writhes in both "agony and ecstasy" amid weaker global growth.

Andy Haldane told a business audience the Bank may need to keep interest rates lower for longer than previously thought to reduce the chance of the economy slipping into long-term stagnation.

He also cited greater financial and political risks and the danger that wages and productivity might continue to fail to recover as forecast.

"Put in rather plainer English, I am gloomier," he said.

"This implies interest rates could remain lower for longer, certainly than I had expected three months ago."

His remarks came at the end of a week in which stock markets tumbled and pushed back their expectations for the timing of the first UK rate rise to towards the end of next year.

Fears of recession in the eurozone, weakness in the US and China and an end to the US Federal Reserve's quantitative easing programme have contributed to the sell-off that has seen £50bn wiped from the value of the FTSE 100 in just two days.

The London market was 1% higher on Friday and the pound lost half a cent against the dollar in the wake of Mr Haldane's comments.

"If there is genuine uncertainty about the path of the economy, the optimal policy response may be to avoid the worst outcomes", he said.

The UK's economy has been growing steadily this year - outperforming the G20 - with growth of 0.9% measured in the second quarter and unemployment falling to a 6% rate.

The performance is in stark contrast to the country's biggest trading partners, with the IMF recently forecasting a 40% chance of eurozone recession - with even Germany on the brink - as the area battles low inflation.

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Jobless Total Back Below Two Million Mark

Written By Unknown on Rabu, 15 Oktober 2014 | 16.01

The latest unemployment figures show the jobless total below the two million mark for the first time since 2008.

The Office for National Statistics (ONS) said unemployment fell by 154,000 in the three months to August to 1.97 million, with the jobless rate falling by more than expected to 6% - its lowest level since October 2008.

But the figures also highlighted continuing concerns about wage growth - measured at just 0.7% on an annual basis between June and August.

It meant that earnings were still failing to keep pace with inflation despite annual living cost increases being calculated on Tuesday at just 1.2%.

The ONS statistics also showed that growth in employment had slowed to its weakest pace since May 2013 though it took the total in work to a new UK record of 30.7 million.

The fall in the number of people claiming unemployment benefit in September was the smallest since April last year, down 18,600 month-on-month.

There are fears the UK's economic recovery risks being damaged by renewed weakness globally - with some economists forecasting a new recession in the UK's biggest market, the eurozone.

Unemployment has fallen by 538,000 over the past year, the biggest annual reduction since records began in 1972.

The crisis in youth unemployment - which covers 16-to-24-year-olds in the ONS figures - continued to ease and fell by 88,000 over the quarter to 733,000.

There were 162,000 unemployed 16-and-17-year-olds, down by 11,000 on the previous three months.

But the number classed as economically inactive increased by 113,000 in the latest quarter to more than nine million - a figure that risks damaging the Government's attempts to bring down the UK's welfare bill.

More follows...

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Shire Shares Slump 27% As AbbVie Hesitates

Shares in FTSE 100 pharmaceutical firm Shire have fallen 27% on opening amid renewed doubts that AbbVie's proposed takeover will go ahead because of new US tax rules.

Investors took flight - wiping £8.5bn from Shire's value in a matter of minutes - after Chicago-based AbbVie said it would reconsider its recommendation to shareholders to back the planned £55bn (£32bn) takeover of Shire.

The move followed a decision by the US authorities last month to impose new rules in a bid to prevent firms moving their tax bases overseas to ease costs.

London-listed Shire responded to AbbVie's announcement by releasing a statement saying it believed AbbVie should proceed, despite the change to the tax regulations, arguing a change of heart would cost AbbVie $1.6bn (£1bn) in fees to Shire.

Its release said: "The board of Shire believes that AbbVie should proceed with the recommended offer on the agreed terms in accordance with the Cooperation Agreement.

"The board will meet to consider the current situation and a further announcement will be made in due course.

"The Board of Shire notes that, in the event that the AbbVie Board adversely changes its recommendation and AbbVie stockholder approval is not obtained (or another triggering event occurs), a break fee of approximately $1.635bn would be payable by AbbVie to Shire."

AbbVie's proposed acquisition of Shire was not solely driven by tax benefits, it also wanted to reduce its reliance on Humira, the world's top selling arthritis drug which loses US patent protection in 2016.

Under the terms of the cash and stock offer that was agreed in July AbbVie would own 75% of the new entity - giving Shire investors a greater stake than the 24% previously proposed.

Shire had rejected four earlier offers.

Its best selling product is hyperactivity drug Vyvanse, which achieved revenues of $1.2bn (£753m) last year.

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Apple And Facebook Pay To Freeze Staff Eggs

Facebook and Apple are giving female staff the opportunity to delay plans to start a family by paying for them to freeze their eggs.

The firms are covering up to $20,000 (£12,600) for the procedure and annual storage costs, according to reports.

The employment perk is expected to help the companies attract more women into the male-dominated sector, in the face of concerns over workforce diversity.

It is also set to be seen as a further sign of the so-called "perk arms race" as Silicon Valley firms battle to recruit and retain top talent.

Facebook recently began covering the costs of egg freezing and Apple will begin in January, NBC said.

In a statement, Apple said it "cares deeply about our employees and their families, and we are always looking at new ways our health programs can meet their needs.

"We continue to expand our benefits for women, with a new extended maternity leave policy, along with cryopreservation and egg storage as part of our extensive support for infertility treatments," the firm said.

"We also offer an adoption assistance program, where Apple reimburses eligible expenses associated with the legal adoption of a child."

However, experts point out freezing eggs is a relatively new procedure that does not guarantee a successful pregnancy.

Corey Whelan, of the American Fertility Association, said: "It's really, really important for women to know it's not a guarantee of motherhood.

"Some women consider it an iron-clad insurance policy. It's not."

The procedure is gaining popularity as more women put motherhood on hold.

A post on the online forum eggsurance.com says: "Women today are at a cultural and generational crossroads. We have the same career expectations and demands as men.

"As our biological clocks tick away, we must establish ourselves in the workplace, find the right mate and become financially secure enough to establish a family."

Microsoft reported earlier this month that only 29% of its staff were women, while at Google it was 30%.

Some 31% of Facebook employees are women, but just 15% are in technical jobs.

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Ireland To End Regime Of Cheap Corporation Tax

Written By Unknown on Selasa, 14 Oktober 2014 | 16.01

By David Blevins, Ireland Correspondent

Ireland is poised to signal the end of a controversial scheme that has enabled multinational companies to drastically reduce the amount of tax they pay.

Sources claim the country's finance minister, Michael Noonan, will close the loophole known as "double Irish" when he delivers his country's budget in Dublin later.

Foreign firms have saved billions of euros by transferring income from an operating company in Ireland to another Irish-registered company in an off-shore tax haven.

Apple, Google, Microsoft and Facebook - all of which are thought to have benefited - will be granted a four year window to adapt to any change.

The European Commission has been investigating tax deals between Ireland and Apple and provisionally found that they were generous enough to amount to state aid.

Video: EU Gets Tough On Apple And Ireland

Brussels has urged the Irish Government to end the controversial tax policies or face a full-blown investigation which carries the risk of multi-million euro penalties.

Earlier this month, the chancellor, George Osborne, told the Conservative Party Conference that the UK would crack down on tax strategies deployed by technological companies.

He said: "Some of the biggest companies ... go to extraordinary lengths to pay little or no tax here. We will put a stop to it."

Video: Ireland Exiting Financial Rehab

The G20 has already commissioned the Organisation for Economic Cooperation and Development to produce a package of tax reforms to end such avoidance schemes.

But one of biggest names in Ireland - the U2 frontman, Bono - has defended the tax laws for "bringing our country the only prosperity we've known".

He said: "We are a tiny little country, we don't have scale, and our version of scale is to be innovative and to be clever.

Video: Tax Expert On EU Apple Accusations

"That's how we got these companies here ... We don't have natural resources, we have to be able to attract people," he told The Observer newspaper.

Ireland's finance minister is also expected to counter anger over proposed water charges and cut the top rate of income tax from 41% to 40%.

The budget is seen as critical, not just for the economic recovery, but in terms of the coalition government's fate in the next general election.

Video: Facebook Profits Triple

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Twitter: Bank To Use Social Media To Send Cash

By Tom Cheshire, Technology Correspondent

One of the largest banks in France will today unveil plans to let its customers - and those of other banks - send money through Twitter.

Groupe BPCE will be the "first banking group to offer individuals a payment solution where they can transfer money with a simple Tweet", according to CEO Jean-Yves Forel.

It is understood that Twitter has not been involved in creating the service, which was built by Group BPCE's S-Money subsidiary, which has also built mobile and SMS payment systems.

But Olivier Gonzalez, CEO of Twitter France, said: "We warmly welcome this innovation developed by Groupe BPCE and the service it provides to Twitter users in France by integrating its S-Money service into a live, public, conversational dimension characteristic of Twitter."

Twitter is experimenting with its own payment system, known as Twitter Buy, which allows customers to buy products straight from the social media platform. Burberry has signed up.

Video: Twitter's Struggle To Fly High

Technology giants are becoming increasingly interested in online and mobile payments.

Facebook is said to be working on its own payments system, operated through its Messenger app.

And this week Apple Pay is expected to launch, letting users pay for goods and services online and in the physical world using their phone.

In the UK, mobile operator EE has been operating its Cash On Tap app - which works in a similar way to Apple Pay, using Near Field Communication (NFC) for payments including the London Underground - for some months.

Video: Twitter: Tool For Good Or Evil?

Near Field Communication is a form of short-range wireless communication that allows electronic devices, like debit cards or mobile phones, to talk to other computers or networks.

In April, nine banks and building societies adopted Paym, which lets users send money using just a phone number.

Group BPCE has yet to reveal the details, but the service will likely require an extra layer of identification for security - similar to sending money by SMS or on a smartphone app.

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Over-55s To Use Pension Pots Like Bank Accounts

People reaching the age of 55 are to be given more flexibility over what they can do with their pension pots as they approach retirement.

Chancellor George Osborne will announce today that the over-55s will be able to withdraw several lump sums instead of just one.

The move is part of an ongoing restructuring of pensions, which the government wants to move away from the traditional annuities-only system.

Some of the changes that will be in the Pension Tax Bill were announced in the Budget, but the Chancellor is now unveiling more proposals.

From April individuals approaching retirement and pensioners will be able to take a series of lump sums, rather than being forced to withdraw all their money in one go.

Video: Expert On Pension Scheme Charges

The changes raise the prospect that pensioners could fund their retirement by using their pension pots almost as bank accounts or by investing in other assets like property or shares.

Until now, people who retired were only able to take 25% of their pension as a tax free lump sum in cash in one go. The rest had to be spent on a product like an annuity.

Now, pensioners will be able to take multiple lump sums, with a quarter of each withdrawal tax free.

The remaining 75% of each withdrawal will be taxed at whatever rate they are required to pay based on their annual income.

Video: Pensions: 'We Trust People'

The government is also planning to do away with the taxation of any pension contributions that have been unused and a person wants to pass on to their relatives.

Previously any inheritance of unallocated pension funds was taxed at 55%.

Mr Osborne said: "People who have worked hard and saved all their lives should be free to choose what they do with their money, and that freedom is central to our long term economic plan.

"From next year they'll be able to access as much or as little of their defined contribution pension as they want and pass on their hard-earned pensions to their families tax free.

Video: What The Budget Means For Savers

"For some people an annuity will be the right choice whereas others might want to take their whole tax free lump sum and convert the rest to drawdown.

"We've extended the choices even further by offering people the option of taking a number of smaller lump sums, instead of one single big lump sum."

Pensions campaigner Ros Altmann said: "The Government's changes have the potential to help millions of pension savers make better use of their pension funds.

"Being free to access their money freely as they need to, rather than being forced to buy particular products will be very popular."

Video: 'Pensions Reform - Not Enough'

The Government announced earlier this year that around 320,000 people would get the freedom to access pension pots flexibly without suffering punitive tax rates.

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Road Hauliers In Christmas Deliveries Warning

Written By Unknown on Senin, 13 Oktober 2014 | 16.02

By Lisa Dowd, Midlands Correspondent

Hauliers are warning that a national shortage of lorry drivers could hit deliveries to shops and stores in the run-up to Christmas.

They say the cost of obtaining a licence and strict EU rules are putting off many would-be drivers.

"What we're concerned about is that as things start to ramp up around Christmas... there just simply won't be enough drivers available to make all the deliveries that are needed," said Natalie Chapman of the Freight Transport Association.

According to the organisation, 40% of lorry drivers are 50 or over, while just 1% are under the age of 25.

Chris Stevenson, 24, from Bloxwich, told Sky News he is desperate to become a lorry driver.

"It's the freedom of the job really. Seeing a bit of the country, maybe seeing a bit if the world, doing continental driving, you can get around a bit - (it) beats being stuck in one place all the while."

However, three unsuccessful attempts to get his HGV licence have cost him £2,500 so far.

John Heighway, transport manager at Devaneys Haulage, says such costs and the image of the profession have resulted in too few young people wanting to join it.

"It's quite desperate really. We could have enough work for an extra 10 vehicles.

"But we just don't have the drivers to cover it, so we just have to turn work down which is something we don't like doing."

That is great news for agency staff like Martins Svarcs from Latvia, who is working for the West Bromwich-based company.

"I'm working every day, five days a week, nine hours driving a day, so I'm happy."

But even temporary workers cannot fill all the vacant posts.

Hauliers say the problem is being made worse by EU rules which require experienced drivers to undertake further costly training - or face a large fine.

Roy Reynolds, 68, from Wolverhampton had been driving for 41 years and like many others decided to quit.

"Now regulations are coming in where you've got to go back to the classroom.

"I don't feel that I need to do that with the experience that I've gained over a number of years. It just seems pointless, so I decided to retire."

16.02 | 0 komentar | Read More

Osborne Puts Stake In Eurostar Up For Sale

Chancellor George Osborne has said the Government is seeking bidders for its 40% stake in the Eurostar rail service to help reduce Britain's public sector debt pile.

Potential buyers have until the end of the month to make expressions of interests.

The Government said it expects to reach "definitive agreements" in the first quarter of 2015.

The sale forms part of the Government's plan to sell £20bn of corporate and financial asset sales by 2020.

Mr Osborne said: "I am determined that we go on making the decisions to reform the British economy and tackle our debts. So we will proceed with the potential sale of the UK's shareholding in Eurostar today.

Video: Eurostar: The Opposition Responds

"Ensuring that we can deliver the best quality infrastructure for Britain and the best value for money for the taxpayer are key parts of our long term economic plan.

"As part of our aim to achieve £20bn from assets sales by 2020, the sale proceeds would make an important contribution to the task of reducing the public sector debt."

Labour has warned it could follow the Royal Mail privatisation as a "rushed and under valued" sell-off.

Mary Creagh, shadow transport secretary, said: "Eurostar is a national strategic asset that is set to grow and to return increased profits to the UK taxpayer with new routes to Geneva, Lyon, Marseille and Amsterdam.

"After the staggering incompetence of the Royal Mail sale fiasco, which lost taxpayers a billion pounds, people will worry that this is yet another rushed and undervalued sell-off.

"City adviser UBS made millions from Royal Mail and is advising on the Eurostar sale. Lord Myners is still conducting his review into government privatisations after Royal Mail, and ministers should await his report before any sale begins.

Video: Treasury Sec: Why Sell Eurostar?

"The National Audit Office should urgently conduct a value-for-money inquiry before this sale proceeds. We must ensure that taxpayers are not ripped off again by bungling ministers and poor financial advice from the City."

Rail, Maritime and Transport union general secretary Mick Cash said: "This is a gross act of betrayal of the British people by a right wing government hell bent on selling off the family silver regardless of the real cost."

Since services began in 1994, Eurostar has carried over 145 million passengers, with over 10 million in 2013 alone, while sustaining traffic growth every year for the last decade.

The Government put the stake up for sale last December as part of a plan to privatise state assets.

The French state train company SNCF owns 55% of Eurostar and Belgium's SNCB holds 5%.

16.02 | 0 komentar | Read More

FTSE 100 Directors' Earnings Up 21% In A Year

A steep rise in long-term incentives meant directors at FTSE 100 companies earned 21% more in the last financial year, a report has found.

The study by employment research specialists Incomes Data Services (IDS) suggests average annual earnings for directors was £2.43m, with chief executives picking up £3.34m.

IDS said earnings pegged to long-term incentive plans, which include share options, rose by 44% and bonuses were up 14% in 2013/14.

Basic salaries gained only 2.5% over the period.

The figures highlight attempts, in the wake of the financial crisis, to end the potential for rewarding failure as share options are linked to long-term performance targets.

But they still contrast sharply with levels of pay across the UK's workforce, with official statistics showing a fall of 1.6% over the same 12 month period - with annual pay growth, including bonuses, most recently being measured at just 0.6%.

The report was released as hundreds of thousands of health workers went on strike in protest at the Government's decision not to give them a 1% pay rise.

Research by Sky News found the total pay package of the best paid CEO in the FTSE 100 index last year, Sir Martin Sorrell of WPP, equals the combined salaries of 1,403 newly qualified NHS midwives.

Editor of the IDS pay report, Steve Tatton, said: "FTSE 100 directors have seen their total earnings jump sharply in the last year, fuelled by a rise in the value of share-based awards.

"Bonus payments have also recovered strongly following a downturn last year.

"The pattern of pay growth highlights the complex make up of directors' remuneration.

"Salary rises may be modest but this can be more than made up for by the receipt of incentive payments.

"When such incentives pay out, they can pay out substantial sums, giving a significant boost to directors' earnings."

Chief executives at media, marketing and telecoms companies earned most in 2013/14, IDS said, with an average £6.98m.

CEOs at retail and distribution companies were found to be the lowest in the rankings with a median of £1.31m.

The report also showed the gap between chief executive pay and the rest of the workforce had widened significantly.

Heads of FTSE 100 companies earned 120 times more than full-time employees on average, against a 47% difference in 2000.

16.02 | 0 komentar | Read More

FTSE Slips To One-Year Low On Growth Fears

Written By Unknown on Minggu, 12 Oktober 2014 | 16.01

The FTSE has closed at its lowest level in nearly a year with a crisis of confidence over the global recovery.

It came as there were warnings about a triple-dip recession in the Eurozone at the IMF's annual conference in Washington.

Data from Europe's biggest economy, Germany, points towards a serious slowdown, with exports falling 5.8% in August - the biggest monthly fall in five years.

The FTSE 100 Index ended the week 91.9 points lower at 6340.

It leaves London's top 100 listed companies worth £140bn less than they were just over a month ago, and at their lowest ebb since last October.

Video: The Week's Big Business Stories

Worries about the global economy, particularly in Europe and Asia, have been accompanied by a wave of selling in energy and commodity stocks due to a sharp fall in the price of oil.

The Ukraine crisis and spread of the deadly ebola virus have also added to fears.

Wall Street saw its worst week since May 2012, with the Dow Jones industrial average down to 16,544.

Germany's Dax was down 2%, extending its losses for the week to 4%, and France's Cac 40 fell by more than 1% on Friday.

On Wednesday, the IMF downgraded global growth for this year and next, and lowered its assessments of Germany, France and Italy.

However, it kept its UK growth estimate for this year static at 2.7%.

That prompted Chancellor George Osborne to warn: "I'd be the first to say we're at a critical moment because the Eurozone risks slipping back into recession and crisis and that is already having an impact on the UK."

Around 50% of UK exports go to the EU.

16.01 | 0 komentar | Read More

Fears UK Will Be Hit By New Euro Recession

By Ed Conway, Economics Editor, in Washington

The euro crisis is back. But this time it's different.

That's the general gist of the discussions at the International Monetary Fund meetings in Washington this week.

For this time around the meetings - a key opportunity for policymakers to catch up on the state of the global economy - have coincided with a fresh bout of fear over the euro area.

This isn't the same kind of crisis the single currency faced a couple of years ago, when there were genuine worries that it might break up.

Instead, the concern is that it simply hasn't recovered fully from the recessions of recent years. Worse: it may soon slump back into another recession.

Why? In large part because of long-term problems in the continent: weak growth, poor demographics and unreformed regulatory systems.

The problem is that this time around there is even less clarity about what to do about it.

Video: IMF's Delicate Dancing Act

The French are determined to borrow and spend more to try to boost growth.

So are the Italians. The problem is that doing so will mean they will break the supposedly iron-clad fiscal rules laid down by eurocrats in the teeth of the crisis.

The Germans are determined to keep control of their public finances, but are being urged by most of their neighbours to spend a bit more and boost demand. Though no-one is courageous enough to tell them to their face.

That's the real reason why the IMF has spent most of the past week telling European countries to spend more on infrastructure.

You only have to watch our interview with IMF deputy managing director David Lipton to see how delicate a dancing act the Fund is having to perform here.

Meanwhile everyone, including George Osborne, has been looking towards the European Central Bank, indicating that they might be wise to consider going all in and doing full-scale quantitative easing.

Except that the ECB and central banking insiders insist they have already done enough - and that it's up to the politicians to do more.

Video: Economic Issues Linked To Conflict

In other words, it's all a bit of a mess. Europe is sliding towards a possible triple-dip recession and no-one seems to be able to decide what to do about it.

Now, to be fair, this episode doesn't have the same level of fear as the 2008 financial crisis or the subsequent euro malaise.

There are no rioters on the streets in Greece and Madrid.

But in another sense this is a far deeper problem: another recession in Europe could be contagious, knocking a serious chunk off Britain's growth prospects.

There is no fix - and no easy answer.

This comes as the world faces a whole barrage of other issues: ebola, which World Bank president Jim Yong Kim has focused on this week; the rise of IS, Islamic State, which IMF Middle East head Masood Ahmed warns has economic as well as social root causes.

All of which helps explain why markets are so jittery at the moment.