Taylor Wimpey Ups Housebuilding By 11%

Housebuilder Taylor Wimpey has increased its construction rate by 11% in the first six months of the year.

The company said it completed 5,766 homes in the first half, with an average selling price of completed properties at £206,000.

The average price was up 10% on the same period last year.

In a trading statement, the company said it expected to see profit margin increase to around 16% in the period.

The company said: "Customer confidence remains good - with increased employment security and a more affordable and accessible mortgage market underpinning demand."

The boost to building comes amid concerted calls to reduce the imbalance between supply and demand in the sector.

The Bank of England (BoE) has warned that the biggest instability to the UK economy is surging house prices in some areas.

Recent home price data has indicated a growing regional divide between price growth.

While London has seen prices rise by around a fifth in a year, some regions have seen prices remain flat.

In April, new home loan rules were brought in to ensure mortgagees would be able to afford increased repayment if the BoE base rate increases.

The Mortgage Market Review stress testing has cooled loan approvals in the latter part of the first half, and forced lenders to closely scrutinise applicants.

A new cap has also been placed on the number of approvals given to those seeking high loan-to-income ratios.

The BoE has kept the base rate at an historic low of 0.5% since 2009, but there has been an increasing concern that it will increase, either later this year or early in 2015.

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Travellers To US Face Losing Uncharged Devices

Uncharged mobile phones, tablets and laptops will not be allowed on US-bound flights after a warning al Qaeda could be planning to blow up an airliner.

The US Transportation Security Administration (TSA) said passengers at certain international airports may be asked during security screening to turn on their electronic devices.

If they do not have power the devices will not be allowed on planes, said the agency.

The TSA would not specify which airports would be subject to the extra screening.

US officials fear new 'phone bombs' could evade detection. Pic: File

However, Britain's Department for Transport warned UK passengers: "If your device doesn't switch on, you won't be allowed to bring it onto the aircraft."

US security officials said last week they fear bombmakers from the Yemen-based al Qaeda in the Arabian Peninsula (AQAP) have worked out how to turn phones into explosive devices which can avoid detection.

American authorities had already singled out Apple iPhones and Samsung Galaxy handsets for extra security checks.

In a statement on Sunday, the TSA said: "As the travelling public knows, all electronic devices are screened by security officers. 

"During the security examination, officers may also ask that owners power up some devices, including cell phones.

The latest measures may spell more queuing for passengers

"Powerless devices will not be permitted onboard the aircraft. The traveller may also undergo additional screening."

Homeland Security Secretary Jeh Johnson recently ordered the TSA to implement extra security measures at some international airports with direct flights to the US.

"We know that there remains a terrorist threat to the United States. And aviation security is a large part of that," he told NBC.

The restrictions would apply to US-bound direct flights from Europe, the Middle East and Africa, the officials said.

US authorities are also concerned that hard-to-detect bombs could be built into shoes or other items of clothing.

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Network Rail '£53m Fine' For Low Punctuality

Network Rail (NR) has "failed to deliver" on punctuality for major routes over the past year, according to the industry regulator.

The Office of Rail Regulation (ORR) said that during 2013/14 Network Rail saw long-distance and major commuter line punctuality was 86.9%.

The ORR said the figure "fell significantly short" of the average punctuality target of 92%.

The watchdog said that as a result, NR has been ordered to return £53.1m to the Treasury.

The ORR said NR "did not deliver all of its plans to improve performance" for long-distance punctuality, in the five years to the end of March.

It added: "And, particularly in the early years of the (five-year) funding period, had insufficient knowledge of the condition of its key assets, such as earthworks, electrical equipment and drainage".

Routes around the capital were slightly better than across the country but still fell short of expectations.

London and South East England (LSE) passenger services in 2013/14 saw punctuality levels of 89.6% against a target figure of 93%.

The ORR added: "As a result of missing its funded obligations, and to address issues which have disrupted services for passengers, the company has committed extra funds to improve the resilience of the rail network in LSE.

"Plans expected to include projects costing at least £25m must be in place by December 2014."

Between 2009 and 2014, the ORR said around 73,100 additional late trains over and above funded obligations, while for the LSE area there were some 265,500 additional late trains.

However, the ORR said NR did achieve infrastructure targets, bringing in rail enhancement plans on time and within budget.

NR chief executive Mark Carne, who joined in February, said: "We accept that we have fallen short of the regulatory targets for train punctuality and that this is, in part, down to our failure to reduce infrastructure faults quickly enough.

"At the same time, the sharp increase in passenger demand has led us to run more trains at peak times, even when we know this will lead to a more congested railway and punctuality targets may suffer."

Meanwhile, there has been a pledge to spend up to £90m to improve free railway internet wifi access across England and Wales, in part funded by the fine imposed on NR over punctuality failures.

Passengers on busy routes will be able get wifi connections said to be at least 10 times faster than those currently available.

Commuters on routes into London from Bedford, Brighton, Kent and Portsmouth are expected to benefit, along with those using services into Leeds, Sheffield and Manchester.

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CBI's Rake Bows Out Of Race For Barclays Job

By Mark Kleinman, City Editor

The CBI president Sir Mike Rake has bowed out of the race to become the next chairman of Barclays, even as the bank attempts to contain the fall-out from a string of new regulatory probes.

Sky News has learnt that Sir Mike told Sir John Sunderland, the non-executive director leading the search, in the last couple of weeks that he no longer wished to be considered as a potential successor to Sir David Walker.

Headhunting sources said that Sir Mike, who also chairs BT Group, had concluded that he would be unable to commit to other roles if he became chairman of Barclays.

His decision makes it likely that Barclays will opt for an external appointment to replace Sir David at a critical point of the turnaround strategy being implemented by Antony Jenkins, the bank's chief executive.

In May, Mr Jenkins outlined plans to cut around 20,000 jobs by the end of 2016 in an attempt to improve the performance of its investment bank and deploy capital where it can generate more productive returns.

Since then, however, his efforts have continued to be hampered by new regulatory investigations.

Last month, the New York attorney-general Eric Schneiderman accused Barclays of misleading investors in its 'dark pool' - a private stock-trading platform - and issued a civil lawsuit against the bank.

Just weeks earlier, Barclays was fined £26m by the City watchdog after one of its traders was found to have sought to manipulate the daily gold price-fix.

The bank also faces months of uncertainty about the outcome of a Serious Fraud Office inquiry into fees paid to Middle Eastern investors during the financial crisis.

The ongoing regulatory woes make the appointment of a credible figurehead as Barclays' chairman especially important.

Sir David joined just under two years ago and vowed to assist with an overhaul of culture and standards at the bank.

He insisted, however, that he would only be prepared to stay for three years, and in February Spencer Stuart, a search firm, was appointed to identify his successor.

One of Britain's most prominent businessmen, Sir Mike has been on the board of Barclays since January 2008, becoming senior independent director in 2011 and then deputy chairman in July 2012.

His decision to withdraw from the search for a new chairman has echoes of the summer of 2012, when Barclays was reeling from the Libor rate-rigging scandal that triggered a £290m fine and the departure of chairman Marcus Agius and chief executive Bob Diamond.

Sir Mike also pulled out of the race then, with Sir David Walker, another City grandee, eventually getting the nod.

The fact that Sir John had assumed oversight of the recruitment process for a new chairman had been interpreted in the City as a signal that Sir Mike was keen on the role; searches for public company chairs are typically overseen by the senior independent director.

Institutional shareholders in Barclays are understood to have expressed mixed views about Sir Mike's candidacy.

Some are understood to have been unhappy at the prospect of him replacing Sir David because of his vocal support in the past for Mr Diamond's leadership of the bank.

His six-and-a-half years on the Barclays board had also led a number of investors to demand a fresh pair of eyes to replace Sir David, particularly in the wake of a new row over pay at this year's annual meeting.

Just over one-third of shareholders decided not to support Barclays' remuneration report, reflecting anger at the payment of a £2.4bn bonus pool despite a slump in annual profits.

Sir Mike's withdrawal from the search for a new chairman leaves Tim Breedon, the former boss of Legal & General, as one of the few potential non-executives who could step up to replace Sir David.

It is unclear which external candidates are under consideration for the chairmanship.

Barclays declined to comment on Saturday, while Sir Mike could not be reached.

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Watchdogs Pursue 'Debt Letter' Tactics

The City watchdog has urged people to send it copies of letters from debt recovery companies purporting to be working on behalf of high street names.

The Financial Conduct Authority's request comes amid reports that some banks and utility companies have sent 'bullying letters' to those in arrears over payments.

The letters may appear to be written by outside debt agencies, with only a passing mention of an in-house connection between debt collector and creditor.

The City regulator told Sky News: "The FCA is unable to comment on the activities of individual firms, but we are aware of these reports.

"We would request that anybody who has further information about this type of practice passes it onto the FCA."

The Solicitors' Regulation Authority (SRA) said it was investigating a number of complaints that have given it "cause for concern".

SRA executive director Richard Collins said: "We will shortly be issuing guidance for in-house solicitors on our existing requirement that publicity must not be misleading.

"This will make it clear that they cannot use forms of words that give the impression that they are an independent law firm and not employed solicitors."

Lloyds Banking Group confirmed that it owned a Scottish-based subsidiary, Blair Oliver & Scott Ltd (BOS), which was used for sending out letters.

The bank insists BOS, which operated from 1991 to 2013, did not undertake legal recoveries - only debt collection.

It told Sky News: "Blair, Oliver & Scott Ltd ... functioned as a debt collection company collecting debts owed to companies within what is now Lloyds Banking Group (previously HBOS plc and Bank of Scotland groups) in relation to a range of accounts including Bank of Scotland and Halifax overdrafts, loans and credit cards.

"It also acted as a debt collection agent for companies outside the Group such as utilities companies."

RBS previously used independently regulated in-house law firm Green & Co, along with Triton Credit Services.

An RBS spokesperson said: "Our customers should never be in any doubt about who they are communicating with.

"We have reviewed our policies in this area and will stop the use of any solicitor or debt collection brand names in correspondence with our customers that could cause confusion."

A Barclays spokesperson said its in-house firm was being wound down and told Sky News: "All debt collections are now carried out under the Barclaycard name, following a decision we took in April this year to end the use of separate companies.

"Mercers Debt Collections Ltd previously managed some collections work on behalf of Barclaycard but it was made clear to customers that they were a company within the Barclays Group and collecting on our behalf."

The Student Loan Company (SLC) was recently revealed to have used a similar tactic, since 2005, over university tuition fee arrears beyond three months.

On July 1, SLC said: "We (have) developed new letters which removed reference to the Student Loans Company as a 'client' and increased the font size of the footer which said 'Smith Lawson & Company is a trading name of the Student Loans Company Limited.'"

The revelation of apparent widespread use of the third party letters comes after payday loan firm Wonga issued fake legal letters to 45,000 customers.

The FCA made Wonga pay more than £2m in compensation for the practice carried out over a number of years, including charging some borrowers administration fees.

The Law Society said Wonga's action may have amounted to blackmail. Shortly afterwards, City of London police said it would reopen its 2013 examination into Wonga's activities.

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Tory Donor Ross In Frame To Chair Ofsted

By Mark Kleinman, City Editor

David Ross, the co-founder of the Carphone Warehouse high street chain, is a leading candidate to become the next chair of Ofsted, the education watchdog.

Sky News can exclusively reveal that Mr Ross, who has donated hundreds of thousands of pounds to the Conservative Party, is among a number of names being considered for the role by Michael Gove, the Education Secretary.

If Mr Ross is offered the post, it could ignite a political row with Labour at a time when Ofsted's handling of the 'Trojan Horse' schools extremism row has sparked furious divisions within the Government.

It could also spark opposition from within the Coalition - David Laws, a Liberal Democrat, is Mr Gove's deputy at the Department for Education (DfE).

Mr Gove decided in February not to renew the term of Baroness Sally Morgan, the current Ofsted chair and a Labour Peer, triggering claims - denied by Mr Gove - that the leadership of one of Britain's most important quangos was being damaged by political interference.

More recently, the education watchdog has been ordered to step up school inspections in the wake of the Trojan horse affair in Birmingham.

An investigation into some schools in the city saw five of them downgraded to inadequate and placed in special measures amid claims of takeovers by hardline Muslims.

Mr Ross is principally known for his involvement in the creation of Carphone Warehouse, which he set up during the 1980s with Sir Charles Dunstone.

In recent years, he has also become a prominent figure in the education sector, sitting on the council of Nottingham University and founding a series of academy schools through the David Ross Education Trust.

Friends of Mr Ross describe him as being "incredibly passionate" about education.

Academic results at the schools in his network were improving significantly since he began working with them, according to a spokesman.

Havelock Academy in Grimsby was Mr Ross's first academy, opening in 2007. His network now stands at 25 academies, educating 8,500 children at primary and secondaries, with a special school and a grammar school also part of the group.

Mr Ross's status as a donor to the Conservatives is nonetheless likely to be contentious if he does land the Ofsted role.

The precise sums given by Mr Ross are unclear but they are understood to amount to several hundred thousand pounds over the last decade.

A source close to the businessman said he had not given a "substantial" sum for some years.

Asked in February about whether Theodore Agnew, a financier who has also given substantial sums to the Tories, was a contender for the role, Mr Gove said that no candidate "should be ruled out on the grounds of political allegiance".

It is unclear whether Mr Agnew is being considered for the Ofsted chairmanship alongside Mr Ross, or who the other remaining candidates are.

The Carphone Warehouse co-founder, whose fortune is estimated at £892m by The Sunday Times Rich List, also made headlines in 2009 when he was cleared by City regulators of any impropriety over the mortgaging of some of his shares in the retailer.

DfE officials are being assisted in the selection process by GatenbySanderson, a recruitment firm.

A spokesman for Mr Ross declined to comment. The DfE also refused to comment.

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Asda To Cut More Than 1,350 Jobs Within Weeks

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

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

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

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

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

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

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

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

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

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

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

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

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

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Amazon Under Scrutiny Over EU Tax Affairs

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

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

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

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

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

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

Amazon's warehouse working conditions have been criticised

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

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

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

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

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

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

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

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

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

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

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Dow Jones Closes Above 17,000 For First Time

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

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

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

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

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

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

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

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

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

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Flexible Isas Offer £15,000 Tax-Free Saving

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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