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UK Bank Bosses Land Â£3m In Annual Bonuses

Written By Unknown on Sabtu, 21 Februari 2015 | 16.01

By Mark Kleinman, City Editor

The chief executives of Britain's biggest high street banks will be handed more than £3m in annual bonuses for 2014 but will see their payouts curbed after another year in which their employers faced heavy regulatory fines.

Sky News can exclusively reveal that the boardroom pay committees at Barclays, HSBC and Lloyds Banking Group are finalising the bonus awards, which will be announced alongside the lenders' annual results during the next ten days.

News of the payouts, which will include a £1.3m bonus for Stuart Gulliver, the chief executive of HSBC, will come just weeks before the General Election campaign gets under way.

Insiders said that Mr Gulliver's bonus had been cut from last year's £1.83m, with a substantial proportion of the reduction attributable to the £216m fine from the City watchdog for control failings in HSBC's foreign exchange operations.

Mr Gulliver was paid a basic salary of £1.25m and a "role-based allowance" worth £1.7m introduced to mitigate the impact of new European pay rules in 2014.

In total, he was awarded a remuneration package in 2014 of about £7.4m including pension contributions and other benefits, HSBC's annual report will disclose on Monday.

Mr Gulliver made a public apology last weekend over the re-emergence of a tax evasion scandal at HSBC's Swiss private banking arm and is focused on cleaning up the affair, which dates back a decade, according to one insider.

His annual bonus is expected to be the largest paid to a UK bank chief executive for 2014.

Sky News understands that the Barclays boss Antony Jenkins will receive an annual bonus of approximately £1m, roughly 50% of his maximum entitlement.

A bank insider pointed out that during 2014, Barclays improved its capital and leverage positions - both measures of its financial soundness - while removing £1.7bn from the bank's cost-base, sending sent its shares up by around a third over the last year.

Mr Jenkins is expected to accept the award, the first time he has done so since taking over as chief executive in 2012, taking his total pay for 2014 to in the region of £5m.

City analysts are forecasting that Barclays' profits will be higher than in 2013, while as Sky News reported earlier this week, the bank's overall bonus pool will fall from just under £2.4bn to less than £2bn.

At Lloyds, Antonio Horta-Osorio's annual bonus will be just under £1m, according to an insider.

The figure would have been higher based on Lloyds' performance but was cut to reflect the bank's £220m fine for its role in the Libor rate-rigging scandal, a source said.

Mr Horta-Osorio, who was recruited by the Treasury in 2011 to run bailed-out Lloyds, is also in line for a long-term share award dating back three years that would be worth around £7m.

Lloyds hopes to announce next week that it has gained permission to pay a dividend to shareholders for the first time since the banking crisis.

The chief executives' annual bonuses account for only part of their overall remuneration packages.

Under reforms introduced by the European Banking Authority (EBA) last year, material risk-takers in banks now have their variable pay capped at 100% of their fixed pay, or twice that sum if shareholders have explicitly approved the move.

Investors in Barclays, HSBC and Lloyds have all approved the higher threshold, while RBS fought an unsuccessful private battle with the Treasury which culminated with it only being able to pay out bonuses equivalent to an employee's salary.

The new rules have led to almost all major banks operating in Europe, including the big four UK institutions, introducing 'role-based allowances' to contend with the European cap.

These count towards fixed pay but can be adjusted on an annual or in some more cases more frequent basis, leading to a review by the EBA which may announce further restrictions on their payment in the coming weeks.

Mr Jenkins' allowance is £950,000, which gives him aggregate fixed pay of £2.05m, while at Lloyds, Mr Horta-Osorio is paid a £900,000 allowance on top of his £1.061m salary.

The figures are clouded by the changing value of bank shares, which means that long-term awards made three years ago can be worth markedly more or less than they were at the point of their allocation.

The exception to the structure of the bank chiefs' pay deals will be Ross McEwan, who runs Royal Bank of Scotland (RBS).

He is paid a £1m salary and from this year will receive a £1m role-based allowance, but is not entitled to an annual bonus following a decision by the taxpayer-backed lender to cease making such payments in order to minimise the prospect of a yearly public row over his remuneration.

Mr McEwan is, however, eligible for long-term share awards equivalent to the sum of his fixed pay.

None of the banks would comment ahead of the publication of their financial results or remuneration figures.

16.01 | 0 komentar | Read More

New Look Fashions Plans For Â£2bn Flotation

By Mark Kleinman, City Editor

The high street fashion retailer New Look has recruited bankers to work on a stock market listing that could value it at as much as £2bn.

Sky News has learnt that the company this week appointed JP Morgan, the Wall Street investment bank, to work on options for a flotation.

The hiring will fuel expectations that New Look's owners are actively preparing to take it public five years after it aborted an identical move amid challenging markets.

JP Morgan is working alongside Goldman Sachs, which is working with New Look to identify other potential investors for the company.

The chain, which trades from more than 800 stores in 21 countries around the world, is the UK's second-biggest women's value clothing and accessories retailer, according to Kantar Worldpanel, a research firm.

New Look has been owned since 2004 by Apax and Permira, two private equity firms, along with Tom Singh, its founder.

According to third-quarter financial results released last week, New Look saw like-for-like sales in the UK declined by 1%, a dip that it attributed to unseasonably warm weather.

The company is continuing to expand internationally, as well as attempting to grow its menswear business.

It now has nearly 20 shops in China although it retreated from Russia and Ukraine because of continuing instability in the two countries.

Anders Kristiansen, its chief executive, described New Look's trading performance as "robust...against a challenging backdrop".

"It was a record online sales performance over the Christmas period with all channels well-prepared for peaks in demand around Black Friday, Cyber Monday and Boxing Day, whilst our high street presence came into its own as we handled a surge in demand for our Click & Collect and Order in Store offerings," he said.

Mr Kristiansen said last week that New Look was a company "ready to float" although he added that a decision to do so rested with the chain's owners.

New Look's examination of a stock market listing makes it one of several well-known companies looking at such a move.

Sky News revealed earlier this week that Center Parcs had hired bankers to work on a flotation which would value it at about £2.5bn.

New Look declined to comment.

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Eurozone Agrees To Extend Greek Bailout

Eurozone finance ministers have agreed to extend Greece's rescue loans - although not by as long as the government wanted.

The deal, which will enable Athens to continue paying its bills, was reached at talks in Brussels which were delayed for four hours as ministers worked on a draft accord.

Jeroen Dijsselbloem, the eurozone's top official and the Dutch finance minister, said Athens had asked for a six-month extension but this was rejected.

"Four months is the appropriate delay in terms of financing and future challenges," he said.

The agreement was clinched just a week before Greece's €240bn (£178bn) bailout expires, leaving just enough time for some member country parliaments to endorse it.

As part of the deal Greece must provide a list of economic and other reforms based on the current bailout programme by Monday.

This will be reviewed on Tuesday by the European Central Bank, the International Monetary Fund and the European Commission.

If the three institutions do not believe the proposals go far enough, the list will be revised with a view to it being agreed by the end of April.

Greek Finance Minister Yanis Varoufakis said the deal would mark a new era for Athens and its relations with the European Union.

"Today was a pivotal moment because Greece for five years now has been lonely, isolated in the Eurogroup. Today that isolation has broken," Mr Varoufakis said.

He said Greece had not used any threats or bluff to get the agreement and added it was a small step in a new direction for the country.

Markets reacted positively to the deal, with the Dow and S&P 500 surging to fresh records on Wall Street.

Mr Dijsselbloem said it was a "first step in this process of rebuilding trust" between Greece and its euro partners and allows for a strategy to get the country "back on track."

"Trust leaves quicker than it comes," he said.

Mr Dijsselbloem worked flat out on Friday to secure an agreement as Germany insisted Greece stick with the austerity commitments included in its bailout programme.

The fraught discussions focused on a new package of concessions beyond those contained in the formal request for a loan extension submitted on Thursday.

Greece has ruled out another bailout like the existing one, saying the people who swept the anti-austerity Syriza party to power last month would not tolerate it.

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Gallery: Art War On The Streets Of Athens

Athens has become a Mecca for street artists as anger grows over the impact of Greece's bailout deal with Europe

Wall paintings have sprung up all over the city reflecting the general frustration at rising unemployment and falling living standards

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Childcare Costs Can Mean 'It Doesn't Pay To Work'

Written By Unknown on Kamis, 19 Februari 2015 | 16.01

By Becky Johnson, North of England Correspondent

The cost of childcare is rising so quickly that for many families "it simply does not pay to work", a report has concluded.

The price of a part-time nursery place for a child under two has gone up by almost a third in the last five years with parents now being forced to pay more than £6,000 a year.

The annual survey, carried out by the Family and Childcare Trust, found that on average in England, Scotland and Wales sending a child to nursery for 25 hours a week costs £115.45.

That is 5.1% more than last year and 32.8% more than in 2010.

Parents who employ child minders are also paying more. The average cost of £104.06 per week is up 4.3% on last year.

"The reality is that for too many families it simply does not pay to work," the report said.

At Kidz R Us day nursery in Salford, Greater Manchester, parents told Sky News that paying for childcare takes up a significant portion of their income.

Mother-of-three Jennifer Lee said: "I'm a full time teacher and my partner's a fireman. You'd expect with two decent salaries to be able to cope financially, but it is difficult."

Amy Cooke said more than half her salary goes on paying for part-time childcare for her 15-month-old daughter Lilah.

If she has any more children or if nursery prices rise further she may have leave her job.

"I'd probably have to give up work and do it that way because my entire wage would go on childcare, so it wouldn't be worth it."

Stephen Dunmore, chief executive of the Family and Childcare Trust, has welcomed Government investment in childcare but says more needs to be done.

"In spite of several positive initiatives, including more funding for free early education, the childcare system in Britain needs radical reform," he said.

"In the run-up to the General Election this May we want to see all political parties commit to an independent review of childcare. Britain needs a simple system that promotes quality, supports parents and delivers for children."

The issue of childcare costs is likely to feature highly in the coming months, with politicians keen to use today's report to score political points.

Labour's shadow minister for childcare and children, Alison McGovern MP, said "These figures lay bare the extent of David Cameron's failure - he is badly letting down working families.

"Since 2010 the failing Tory plan has seen the costs of childcare soar. On top of this, there are over 40,000 fewer childcare places and wages are down £1,600 a year on average."

A spokesperson for the Department for Education said: "This report only relates to the prices parents pay after they receive the Government's offer of 15 hours of free childcare.

"It therefore neglects the record amount of fully funded childcare we are giving - savings worth a maximum of almost £9,000 per child."

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ECB Extends Funding For Greek Banks - Reports

The European Central Bank has decided to increase its emergency funding to Greek banks, it has been reported.

"The increase has been approved," a bank source, who declined to be identified, told the AFP agency.

The source added the ceiling for emergency liquidity assistance - or ELA - to the banks had been raised from €65bn to €68.3bn (£50.3bn).

According to the source, the Greek central bank had requested an extension of roughly € 10bn.

Banks need extra funds as depositors continue to extract cash on fears the country's banking system will collapse if it fails to agree a new loan deal and it has to leave the euro.

Athens is expected to request on Thursday a six-month eurozone loan to replace its current bailout, which expires at the end of the month.

On Monday, it rejected a plan to extend its current €2 40bn (£178bn) bailout deal, describing it as absurd.

The offer came with more than 400 austerity measures - including shrinking pensions and lowering the minimum wage - conditions the Greek government blames for the country's failure to recover.

There are fears if a new deal is not agreed in principle this week, Greece could have difficulty servicing its debts.

That could lead to more capital being pulled out of Greek banks and a so-called messy default, which could see a return to the drachma.

Greece's finance minister Yanis Varoufakis said its request for a loan extension will be worded in such a way as to be acceptable to all parties.

He said it "will be written in a way that covers both the Greek side and the president of the Eurogroup," referring to Dutch finance minister Jeroen Dijsselbloem.

Mr Varoufakis said he was hopeful of a positive outcome by the end of the week.

Earlier, the Greek parliament elected veteran politician Prokopis Pavlopoulos as the country's new president.

The 64-year-old's election ends an impasse over the choice of president that triggered early general elections last month.

The latest developments come after a government source accused Germany of "arrogance" in its approach to the debt negotiations.

It followed German finance minister Wolfgang Schaeuble dismissing talk of a loan extension as unacceptable.

He told broadcaster ZDF: "It's not about extending a credit programme but about whether this bailout programme will be fulfilled, yes or no."

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British Gas Blames Warmth For 23% Profit Fall

The company that owns British Gas has blamed warm weather for a 23% slump in profits at its residential supply business.

Centrica reported earnings of £439m during 2014 at the division, which supplies gas and electricity to homes - down from £571m in the previous year.

Total British Gas profits, which includes boiler services to households, fell 20%.

Centrica's share price slumped more than 8% when the FTSE 100 opened after it confirmed the extent of the wider energy market woes on its business had forced it to slash investment and its dividend.

The company said the profit declines at British Gas primarily reflected lower consumption in a "record warm year".

It said average dual fuel profit per household fell £10 to £42, with average actual household energy bills "around £100 lower than in 2013" at £1,152.

The number of households taking its energy fell 2% in 2014 to 14.8 million.

A previously announced 5% cut to its standard gas tariff is due to take effect on 27 February as critics of the industry continue to question whether industry-wide bill reductions go far enough to reflect the recent dives in wholesale energy costs.

Raw gas prices have lost 30% of their value over the past 12 months.

The British Gas results were announced just 24 hours after the Competition and Markets Authority (CMA) confirmed it was examining the use of standard tariffs as a default for customers of the big six firms, suggesting households that had failed to switch supplier were paying up to £234 more annually for their energy.

The so-called big six, made up of British Gas, SSE, Scottish Power, E.ON, EDF and npower, insist they welcome the CMA's investigation to help restore trust in profit levels.

Centrica reported a group statutory loss before tax of £1.4bn against profits of £1.6bn in the previous year.

The performance was mainly driven by significant writedowns on a number of its exploration and production assets, with North Sea capital investment trimmed by 40% in reaction to Brent crude oil costs diving by up to 60%.

Adjusted operating profits fell 35%.

Chief executive, Iain Conn, said: "2014 was a very difficult year for Centrica and the recent fall in oil and gas prices creates further challenge.

"We are cutting investment and costs in response. However, it is with regret that, along with reducing capital expenditure and driving efficiency beyond planned levels, we have taken the difficult decision to rebase the dividend by 30%, commencing with the final distribution for 2014.

"In addition, given the changed external environment we are reviewing the longer term strategy, and will conclude this by the interim results in July.

"Despite the obvious current challenges, I am confident in the quality of Centrica's team and the platform which has been established, and I believe the group is well-placed to take advantage of the longer term trends in the global energy markets.

"Our priorities remain to serve our customers competitively and with integrity, to develop new offers and services, to provide secure and reliable energy supplies and to deliver long-term value for shareholders".

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Rolls-Royce To Develop Sports Utility Vehicle

Written By Unknown on Rabu, 18 Februari 2015 | 16.01

The luxury carmaker Rolls-Royce has announced it will develop its first sports utility vehicle (SUV) designed to "cross any terrain".

The announcement was made via an open letter from Rolls-Royce chairman Peter Schwarzenbauer.

The company has revealed few details about the new model, but said it decided to develop a luxury off-roader following consultations with clients.

"Many discerning customers have urged us to develop this new car - and we have listened," the company said in a statement.

"At Rolls-Royce Motor Cars we are uniquely focused on the desires of our customers and are driven by our own thirst to innovate.

"So we challenged our engineers and design team, led by director of design Giles Taylor, to create a different and exceptional new car."

The vehicle will be developed at the company's base in Goodwood.

Rolls-Royce has gradually expanded its range of vehicles beyond luxury limousines such as the Phantom model, released in 2003.

The smaller Ghost II became available in late 2014, and the Wraith Coupe entered showrooms in 2013.

Last month, Jaguar Land Rover announced the creation of 1,300 new jobs after the company said it would develop its first SUV vehicle in Britain.

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Gallery: Rolling Back The Years

The first design sketches of a new Rolls-Royce to be launched in 2010 have been released by the luxury car company. Known as the RR4, the new vehicle will be smaller than the existing Phantom and will be powered by a new engine unique to Rolls-Royce.

It's a far cry from the oldest-surviving Rolls. This 1904 10 horsepower two-seater dates from the company's first year of production.

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Tesco Appoints New Chairman 'At Critical Moment'

Troubled supermarket Tesco has appointed John Allan as its new chairman, replacing Sir Richard Broadbent.

Mr Allan, who takes up his role on 1 March, is currently on the boards of electrical retailer Dixons Carphone and Royal Mail but will step down from those posts.

He said of the Tesco job: "I'm very pleased to be taking on this role at such a critical moment for the business and look forward to working with the new executive team and the board."

Mr Allan will be paid £650,000 a year as part of a three-year contract with Britain's biggest supermarket chain.

He is also chairman of property company Barratt Developments and payment processing firm Worldpay, but is expected to continue in those roles.

Sir Richard announced his resignation in October after a £263m accounting blunder involving rebates to suppliers.

The fall-out from the affair led to the suspension of eight executives, and a shake-up of Tesco's commercial practices that partly caused a £500m profit warning in December.

Tesco's sales have also been hit, with the company facing tough competition from discount stores like Aldi and Lidl.

Under Tesco's new chief executive Dave Lewis, the firm has cut jobs, introduced price reductions across hundreds of lines, and said it would close 43 loss-making stores.

It has also scrapped plans to build 49 more shops.

Last week, industry figures suggested Tesco had returned to sales growth for the first time in a year.

Statistics for the 12 weeks ending 1 February by Kantar Worldpanel showed a 0.3% increase in sales compared to the same period last year, with the chain attracting an additional 236,000 shoppers.

However, it was not all good news for Mr Lewis, who took over in September following the departure of Philip Clarke.

Despite the increase in sales, Tesco's overall market share fell to 29%, down by 0.2 percentage points compared with last year as the effects of the supermarket price war continued to be felt.

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Energy: Big Six Profit From Switching Failure

A competition inquiry into the energy market has found suppliers routinely charging loyal customers up to £234 more per year.

The Competition and Markets Authority's (CMA) update on its continuing probe into the sector also contained criticism of the energy regulator's powers - as reported by Sky News on Tuesday evening - saying excessive regulation at Ofgem may be creating barriers to new market entrants.

The key finding in the CMA's updated Issues Statement for consumers concerned the power of switching supplier, with the regulator declaring that long-term customers - many deemed vulnerable - were paying a higher price for failing to move between energy companies.

It said 95% of dual fuel customers of the so-called big six suppliers could have saved an average of between £158 and £234 a year by switching.

It found British Gas, SSE, Scottish Power, E.ON, npower and EDF, earned 12% more from a customer on a standard - instead of fixed - dual fuel tariff.

The report stated: "The evidence that we have seen to date also suggests that the gross margins that the six large energy firms earn are higher for customers on the SVT (Standard Variable Tariff) than for those on non-standard tariffs over the last three years."

While the Issues Statement does not contain any formal conclusions by the CMA, the ongoing designation of industry regulation as a key focus will embarrass Ofgem at a time when its leadership is under intense political pressure.

Labour has vowed to freeze prices for 20 months if it wins the General Election in May, a pledge which sparked fury among big six suppliers.

They recently cut standard gas tariffs by up to 5.1% in response to a 30% dip in wholesale prices but argue raw energy makes up less than 50% of a bill and they have to pay up to three years up front for their supplies.

They point to the growing cost of green levies and network costs.

Crucially for the big six suppliers, the CMA found that their average profit margin across gas and electricity was 3.3%, with gas being the more profitable of the two.

But the report questions whether the market is working for consumers as almost half of households have been with the same supplier for more than 10 years.

This week, the Government launched a campaign with the slogan "Power To Switch", which is designed to encourage consumers to shop around to find cheaper energy deals.

Provisional findings of the CMA's inquiry will be published in May.

It is expected to stop short of recommending that the big six firms split their generation and supply arms - as some critics have demanded - to give greater clarity on profits.

Energy UK, the industry body which speaks for suppliers, said: "The energy industry continues to support the work of the Competition and Markets Authority and has already introduced a range of voluntary measures, moving towards greater openness and transparency.

"Today is the next stage in the process with conclusions expected later this year.

The industry will review today's releases over the coming weeks with a view to engaging further with the investigation. Individual members will be able to contribute to the debate as the rest of the investigation progresses."

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Is Greece Edging Closer To Euro Exit?

Written By Unknown on Selasa, 17 Februari 2015 | 16.01

No-one expected the Eurogroup summit to end all the differences between Greece and the eurozone countries behind its bailout.

But, equally, no-one really expected it to end in the kind of acrimony we saw earlier in Brussels.

In the event, what we have witnessed is yet another demonstration of what happens when the euro collides with democratic politics.

It all comes back down to the key issue Syriza campaigned on in the Greek elections last month: ending the current €240bn bailout programme and replacing it with something more humane.

Most of Greece's euro counterparts have insisted that to do so is simply impossible - that if Greece wants to borrow more cash and continue to enjoy financial support from the European Central Bank, it must sign up to an extension of the existing programme, due to expire at the end of the month.

However, doing so represents what Yanis Varoufakis, the Greek finance minister, has described as a red line.

Instead, he would rather agree to a separate "bridging loan" without the full conditions attached to the existing bailout (but with, he insists, "some conditionality, to build trust").

He claims that he was privately given such a promise by the European Commissioner in charge of the economy, Pierre Moscovici, last week.

But, in Mr Varoufakis' rendering, at the Eurogroup meeting on Monday afternoon, Mr Moscovici's draft proposal was replaced by Eurogroup head, Jeroen Djisselbloem, with something else entirely - an alternative communique that pledged that Greece should continue with the existing programme.

A copy of this document, with Mr Varoufakis' disapproving penmarks scrawled all over it, was leaked to the press.

In chaotic scenes, the meeting broke down within minutes.

Given it was billed as the make-or-break moment for the euro, the collapse of talks looks, on the surface of it, to be deeply worrying.

However, the reality is that Monday's deadline was always a self-imposed one.

The talks will continue in the coming days, and there is likely to be another Eurogroup meeting to confirm things as soon as something can be hatched behind the scenes.

But with every setback, worries grow that Greece could be edging slowly towards a possible default - or indeed a chaotic exit from the single currency.

There are still many more levers to be pulled by both sides between now and then. But the fact that a key meeting could break down so easily is a reminder that things will hardly be plain sailing in the coming weeks.

In other words, things are likely to get even worse before they get any better.

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London Population Growth Drives Homebuyers Out

By Jonathan Samuels, Sky News Correspondent

London's population is set to reach a record high of 8.6 million people, with housing expected to be a major General Election issue.

With limited space and prices that have gone through the roof, one survey suggests bricks and mortar could be as significant as the NHS in the ballot this May.

According to research by estate agents Your Move and Reeds Rains, one in six tenants (16%) say housing is the issue most likely to affect their vote.

Sky News visited what has been billed as the smallest house currently on the market in the UK. The tiny one-room home in Islington is just over 150 square feet, with an asking price of £275,000.

You have to climb on to the kitchen surface to get into bed, the dining room is a pull-out table, and you can touch opposite walls at the same time.

"Obviously the price is quite absurd but I don't think the project is absurd," says architect Chris Dyvik, who took inspiration from caravans and boats.

"You might see similar types of compact units being built. People need to be creative in London to survive with these housing prices."

It is unlikely anyone would live in such a place for more than a few nights at a time, but the fact that such a small space can command such a big asking price means questions continue to be asked about London's property bubble.

Last year, some 60,000 30-somethings left London, the highest number ever. Soaring house prices have put homes out of reach for most first-time buyers.

According to the Office for National Statistics, 67% of the 25 to 34 age group were homeowners in 1991. By 2012 this had dropped to 43%.

George Cheetham got fed up with prices going up and up during the buying frenzy in London last year.

"Week-by-week, house prices grew," he said.

"You'd go for a viewing in the same street one week and by the next it had gone up by about £10,000."

He moved to Bristol, buying a three-bedroom flat with a garden, something which would have been impossible in the capital.

"It just didn't seem a realistic market to buy in, it was very easy for us to say enough is enough" he said.

Soaring prices have been partly driven by foreign investors.

Estate agent Savills estimates up to 70% of newly-built properties in central London are bought by foreign investors, with many flats in prime locations lying empty.

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Gallery: Property: What £1m Can Buy You

We take a look at what £1m can buy you around the UK. For example this one bedroom flat in Chelsea's Lennox Gardens, London, at exactly £1m. All photos courtesy of rightmove.co.uk

The modestly-sized flat is being sold in one of London's most sought-after areas. Pic: rightmove.co.uk

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Greece Facing 'Disaster' As Talks Break Down

Greece has been warned of an impending "disaster" after crisis talks between the country's finance minister and Eurozone counterparts broke up without agreement in Brussels.

The country rejected a draft proposal put forward by European finance ministers that would see an extension of Greece's international bailout package.

Dutch finance minister Jeroen Dijsselbloem, who chaired the meeting, says Athens now has until Friday to request an extension or risk seeing the bailout expire at the end of the month.

If that happens the Greek state and its banks could face a looming cash crunch.

Greece's finance minister, Yanis Varoufakis, said negotiations will continue, adding he has "no doubt" an agreement will be reached that would be "therapeutic to Greece and for Europe".

But he added his country will not implement recessionary measures such as pension cuts and VAT hikes.

Greece's anti-austerity Syriza government recently swept to power on a promise to scrap the bailout as it stands.

But with Greece running out of money, Maltese finance minister Edward Scicluna said the country faces "disaster" unless it extends the bailout, which is due to end on 28 February.

"Greece has to adjust, to realise the seriousness of the situation," he said.

"It all depends on the realisation by Greece of the real seriousness of the situation because time is running out."

Mr Dijsselbloem said a "positive outcome" was still possible if Greece asked for the extension by the end of the week.

He said further talks are dependent upon Greece requesting a bailout.

"Given the timelines we have... we can use this week but that is about it," he said.

"The general feeling in the Eurogroup is still that the best way forward would be for the Greek authorities to seek an extension of the programme."

Many in the financial markets think a failure to secure agreement will leave Greece little option but to leave the euro.

European stock markets fell on Tuesday in reaction to the deadlock, with Greek banks suffering losses of up to 10% in early trading.

Mr Varoufakis and other European finance ministers are scheduled to remain in Brussels for routing talks on the EU economy today.

Sky's Economics Editor Ed Conway said: "The talks have broken down in rather acrimonious fashion.

"The ball is once again in Greece's court. European finance ministers leaving the talks said it was now up to Greece and its prime minister and ministers to request an extension to the deal.

"Otherwise the Eurogroup are not going to continue talking and there is the real prospect increasingly of Greece either defaulting or leaving the euro.

"The big problem is that Greece is potentially going to run out of money quite soon."

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Ex-HSBC Boss Lord Green To Quit Industry Body

Written By Unknown on Senin, 16 Februari 2015 | 16.01

Lord Green is to step down from a financial services industry body amid claims HSBC enabled tax avoidance while he was in charge.

A former trade minister in the coalition government, the peer will step down as chairman of TheCityUK's Advisory Council with immediate effect.

He was the chairman of HSBC from 2006 to 2010, and is facing considerable pressure to answer questions about the behaviour of the bank's Swiss division.

Sir Gerry Grimstone, who will be succeeding Lord Green in his TheCityUK role, said: "Stephen Green is a man of great personal integrity who has given huge service to his country and the City.

"He doesn't want to damage the effectiveness of TheCityUK in promoting good governance and doing the right thing, so has decided to step aside from chairing our Advisory Council."

Sir Gerry also stressed that Lord Green's departure "was entirely his own decision".

In a speech to the Welsh Labour conference in Swansea, Ed Miliband warn that "he will not back down" in his campaign on tax avoidance.

The Labour leader also launched a fresh attack on the Prime Minister, who he claimed is "turning a blind eye" to the practice, which mainly benefits the rich and powerful.

Mr Miliband welcomed Lord Green's decision to step down.

He said: "I think it is right that he has done that. I think the bigger question is David Cameron and the questions he has got to answer.

"He has still not accounted for why he appointed Lord Green in the first place, when it was already public knowledge about what happened at HSBC.

"He has still not explained whether over the three years or so that Lord Green was a minister, whether he actually asked about what was going on about HSBC when it was public knowledge.

"The questions are mounting for David Cameron to answer."

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HSBC Issues Apology Over Banking Standards

HSBC has taken out adverts in national newspapers offering "sincerest apologies" over past activities at its Swiss operations.

In the open letter to its customers, shareholders and colleagues, HSBC's group chief executive Stuart Gulliver described recent media coverage about practices at the Swiss Private Bank eight years ago as a "painful experience".

However, the Business Secretary has said he wants greater assurances about tax transparency.

Vince Cable told Sky's Murnaghan programme that what emerged is "striking and unacceptable" - and he has called on former HSBC boss Lord Green to answer specific allegations about the business.

The full-page HSBC advert states: "We would like to provide some reassurance and state some of the facts that lie behind the stories.

"The media focus has been on historical events that show the standards to which we operate today were not universally in place in our Swiss operations eight years ago.

"We must show we understand that the societies we serve expect more from us. We therefore offer our sincerest apologies."

The bank added that since 2008 it had established a "much tighter central control around who are our customers".

It said it had also implemented tougher standards around tax transparency.

Earlier this week Mr Gulliver sent a memo to the bank's staff saying the revelations were painful and frustrating.

The adverts come amid a political row over tax avoidance, with Labour leader Ed Miliband on Saturday vowing to carry out an inquiry into the UK's tax authority should his party win power in the next General Election.

Mr Miliband argued that people not paying their fair share of tax had left "a £34bn hole in the nation's finances".

Promising an "aggressive" review into Her Majesty's Revenue and Customs (HMRC) if his party wins in May, Mr Miliband pointed to suspicions of "sweetheart deals" with wealthy firms.

And the shadow chancellor, Ed Balls, has told Sky News a "crackdown" is needed because there had only been one prosecution out of more than a thousand cases of tax avoidance at HSBC's private Swiss arm.

"Was that because the Conservatives were back-peddling, brushing it under the carpet? Was it because the HSBC boss had now become a minister? Was it because their donors were involved in that HSBC activity? I think we need answers from David Cameron and George Osborne, and we need them soon," he added.

This week, Mr Miliband seized on allegations about tax avoidance by HSBC clients to brand Prime Minister David Cameron a "dodgy Prime Minister, surrounded by dodgy donors".

Speaking on Sky News, Mr Cable said: "I think the worst period we went through was 10 years ago, when all the leading banks were offering industrial-scale tax avoidance to British citizens to avoid British tax - and they were doing it out of London.

"There are still things happening that should definitely not be happening."

After a week of clashes between Mr Miliband and Mr Cameron, the former Tory chancellor Ken Clarke said there needs to be agreement on a "more sensible and defensible" system for funding political parties.

Mr Clarke told The Observer newspaper that the Conservatives should break their reliance on wealthy donors and embrace the need for more state funding of politics.

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Rival Firm Snaps Up Zolfo Cooper In Â£60m Deal

By By Mark Kleinman, City Editor

The consolidation of London's professional services industry will accelerate this week when a division of Zolfo Cooper, an adviser on corporate restructurings, is snapped up in a deal worth just under $100m (£65m).

Sky News has learnt that AlixPartners, a New York-based advisory firm, is close to agreeing a takeover of the UK and European arm of Zolfo Cooper, an independent player in a sector increasingly dominated by global heavyweights.

Insiders said that AlixPartners had scheduled a board meeting on Sunday to approve the deal, with an announcement about the transaction expected as early as Monday.

If completed, the takeover will bring together two of the most prolific City advisers on the restructuring of companies which have run into financial or operational difficulties.

Zolfo Cooper has in recent weeks been working on a deal to secure the future of Intertain, the leisure group behind the Walkabout chain of bars.

The company is owned by Better Capital, the investment vehicle set up by Jon Moulton, who was forced to place another of his companies, City Link, into administration on Christmas Eve.

Zolfo Cooper's European operations are operated using the firm's name under licence from the US firm of the same name.

The takeover of its London-based operations is expected to crystallize significant payouts for its partners, although they are likely to remain with the combined group.

Among the firm's other assignments are the restructuring of Stemcor, the steel trading company which is part-owned by Margaret Hodge, the Labour MP who chairs the Commons Public Accounts Committee.

Last year, Zolfo Cooper also worked on a deal which saw dozens of Strada restaurants change hands.

For AlixPartners, the acquisition will be an important step towards achieving a five-year target of becoming the "leading global advisory, consulting, and interim management firm specialising in restoring, protecting, and enhancing corporate performance and value".

Employing more than 1200 people, AlixPartners is itself majority-owned by CVC Capital Partners, the private equity group which is the largest shareholder in Formula One motor racing.

CVC took control of AlixPartners in June 2012, with the financial terms of the deal remaining undisclosed.

Private equity investors have shown increased interest in professional services groups, while the big four accountancy firms have also been diversifying their offering by swallowing specialist players in areas such as cyber-security, investor relations and restructuring.

AlixPartners and Zolfo Cooper both declined to comment on Sunday.

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ITV's Norman Courted Over Tesco Chairmanship

Written By Unknown on Minggu, 15 Februari 2015 | 16.01

By Mark Kleinman, City Editor

Tesco has approached the former Conservative MP Archie Norman about becoming its chairman as the UK's biggest retailer nears a decision on a crucial component of its revival plan.

Sky News has learnt that Tesco has been holding "active talks" with Mr Norman about taking over from Sir Richard Broadbent, although he is not the only candidate in the frame for the role.

The company, which is in the process of shedding thousands of jobs as it attempts to rebuild its reputation in the wake of a commercial trading scandal, is said to be keen to decide on its next chairman by the end of the month.

John Allan, the former chairman of Dixons Retail, also remains in talks with Tesco's board about the job, according to a person close to the process.

Mr Norman's name has been associated with the impending vacancy ever since Sir Richard indicated last autumn that he would step down this year.

Now the chairman of ITV, he spent eight years as a Conservative MP during the party's last period in Opposition.

He made his name as a businessman while chief executive and then chairman of Asda between 1991 and 2000, with subsequent roles including chairmanships at Energis and HSS, the tool-hire chain.

Mr Norman would be a popular choice among Tesco shareholders, many of whom have bemoaned the lack of retail experience on its board.

One hurdle to Mr Norman taking the role could be his existing range of international business interests, which include chairing the London operation of Lazard, the investment bank, the toy retailer Hobbycraft, and serving as a director of Target and Coles in Australia.

If he took the Tesco job he would almost certainly have to relinquish some of these positions.

Tesco's recruitment process remains fluid and it still remains possible that another person could become its new chairman.

A decision could be announced as early as next week.

Sir Ian Cheshire, the former chief executive of DIY retailer Kingfisher, was also approached about the job but withdrew from the process after preliminary talks.

Sir Richard's intention to step down emerged after Tesco overstated profits by £263m because of its inaccurate booking of revenue from suppliers.

The Serious Fraud Office has launched a formal criminal investigation, which sources say is likely to take about a year to conclude, while the Groceries Code Adjudicator and the Financial Reporting Council are undertaking separate inquiries

Tesco suspended nine executives over the affair, four of whom have left the company, with most of the rest now reinstated.

The retailer's next chairman will have to grapple with the fallout from the supplier scandal as well as helping Dave Lewis, the new chief executive, navigate what analysts say is the toughest environment for big food retailers for many years.

Last month, Mr Lewis outlined proposals to relocate Tesco's head office, close dozens of stores and terminate its defined benefit pension scheme in an effort to save costs.

He also plans to sell a stake in Dunnhumby, its customer loyalty arm, and has announced a long-term price-cutting initiative across hundreds of core grocery items.

Sky News revealed two weeks ago that Mr Lewis had begun a cull of head office staff which is expected to involve thousands of job cuts.

The debate over Tesco's decline was recently reignited when Sir Terry Leahy, the former chief executive, blamed his successor, Philip Clarke, for "a failure of leadership".

A series of profit warnings last year led to Mr Clarke being sacked, but analysts pointed out that some of Tesco's least successful initiatives in recent years, including its expansion into the US and China, had taken place during Sir Terry's tenure.

Earlier this month, Tesco said it would pay more than £2m in "liquidated damages" to Mr Clarke and Laurie McIlwee, its former finance director, after concluding that there was no legal basis for withholding the payments.

The process of recruiting a new chairman is being led by Patrick Cescau, Tesco's senior independent director, along with JCA Group, a City headhunter.

Tesco and Mr Norman declined to comment.