Next Annual Profits Set To Outdo M&S Again

Next has raised its forecast for annual sales and profits as Britain's second largest clothing retailer reported a 10.7% increase in half-year sales.

The Group upped its profit guidance by £25m and now expects to make between £750m and £790m for the full year to January.

Last year the retailer saw pre-tax profits of £695m, overtaking fashion rival M&S.

Representing growth of 11% to 17%, Next's new forecast is set to extend its lead on M&S further in the sector.

It is the second time in three months that the chain has raised its performance expectations, after enjoying two consecutive quarters of strong sales.

Store sales rose by 7.5%, while Next Directory sales were up 16.2%.

Favourable weather and new store openings also helped growth and it now predicts full year sales to rise between 7% to 10%.

The retailer has 500 stores in Britain and Ireland and about 200 stores in more than 40 countries overseas.

Shares in Next rose by around 2% in early Tuesday trading, following the announcement of its better-than-expected results.

16.02 | 0 komentar | Read More

Centrica To Pay New Boss Less Than Laidlaw

By Mark Kleinman, City Editor

Britain's biggest energy supplier has struck a deal to pay its new chief executive less than his predecessor as it seeks to avoid igniting a new political row about the sector.

Sky News has learnt that Centrica, the owner of British Gas, is poised to announce within days that Iain Conn, who will be installed as the company's new boss this week, will earn both a lower base salary and overall potential reward package than Sam Laidlaw.

Mr Conn's remuneration package will nevertheless be substantial.

City sources said on Tuesday that he would be paid an annual salary of just over £900,000, compared to Mr Laidlaw's base salary of £950,000.

The new chief executive will also be eligible for a share incentive award in his first year at Centrica worth the same amount as his basic pay, which would be deferred until 2016, they said.

Further long-term share awards could also be quantified, although one fund management source said Mr Conn's maximum potential reward would be "considerably lower" than Mr Laidlaw's prospective £6.969m.

Leading shareholders in Centrica are understood to have been briefed on the proposals in the last few days, with an announcement confirming Mr Conn's arrival expected at or before its half-year results on Thursday.

Future awards are likely to be finalised ahead of Centrica's annual meeting next year, as part of a scheduled review of the company's remuneration policies.

People close to the situation said the decision to pay Mr Conn less than Mr Laidlaw reflected the fact that it would be the incoming boss's first job as a FTSE-100 chief executive, as well as the determination of Centrica's board to avoid a further political row.

BP confirmed last week that Mr Conn was leaving after almost 30 years, including a decade on the board.

The oil giant said it had decided to treat him as a "good leaver", meaning he would continue to be eligible for share awards accrued during his career there.

While these theoretically could have been worth more than £15m, as revealed by Sky News in May, their eventual value is likely to be closer to £5m.

Mr Conn will join Centrica at a challenging time, with the Competition and Markets Authority about to launch a full probe of the industry and Ed Miliband, the Labour leader, pledging a price freeze if his party wins next May's general election.

Mr Laidlaw could have earned almost £7m last year, but received less than a third of that sum after donating his £851,000 bonus to charity because of the ongoing row over energy prices.

The new chief executive's other priority will be to identify a new finance director and leadership team for British Gas.

Analysts at Royal Bank of Canada said they expected that the combination of warm weather in the UK, negative publicity and greater competition would result in a 25% fall in profits at British Gas's residential arm.

"On a (year-on-year) basis North American activities are forecast to fare even worse, with polar vortex costs and a margin squeeze in residential energy likely to lead to a fall in [pre-tax profit] of over 50%.

"Overall, we expect a decline in all seven operating divisions of (Centrica) in the H1 results."

16.02 | 0 komentar | Read More

BP Warns Of Impact Of Sanctions On Russia

Oil giant BP has voiced fears that any further international sanctions imposed on Russia could have an "adverse impact" on the company.

It said the plan to tighten economic restrictions by the west, over the ongoing Ukraine crisis, may harm its relationship and investments in Russia's state-owned oil firm Rosneft.

The comments from BP come as it released its second quarter results, showing a profit of $3.635bn (£2.14bn).

The 28-member European Union is set to finalise a new raft of measures on Tuesday to block Russian banks' access to its markets. New sanctions have also been imposed by Japan, which Russia's foreign ministry said would harm their bilateral relations.

BP owns 19.75% of Rosneft, which is Russia's largest oil company, and the source for almost 9% of its annual profits.

BP is a top-tier FTSE 100 firm and a key company for UK pension funds to invest in.

In 2011 BP signed an Arctic exploration deal with Rosneft

On Monday, Russian foreign minister Sergei Lavrov said his country had no intention of imposing tit-for-tat sanctions.

Mr Lavrov said: "I assure you, we will overcome any difficulties that may arise in certain areas of the economy, and maybe we will become more independent and more confident in our own strength."

His comments came as a panel of judges in The Hague ordered the company to pay $50bn (£29.4bn) in damages to shareholders of the now defunct oil firm Yukos.

They said that officials under President Vladimir Putin manipulated the legal system to bankrupt Yukos, which was formerly owned by Mikhail Khodorkovsky.

Yukos, once Russia's largest oil company, was broken up after Mr Khodorkovsky was arrested in 2003.

It was declared bankrupt and auctioned off - with Rosneft buying most of its assets.

Rosneft said that it expected no claims to be made against the company in connection with the Hague court ruling, which Russia contests.

It said it was not a defendant in the case and that the ruling would not have a negative impact on its "commercial activity and assets".

On Tuesday, Russia's foreign ministry announced that new sanctions imposed by Japan would harm their bilateral relations.

16.02 | 0 komentar | Read More

Delays Expected Over Passport Staff Strike

Would-be travellers waiting for new passports are at risk of further delays as Passport Office staff go on strike today.

Members of the Public and Commercial Services Union (PCS) are walking out over staff shortages and pay issues, dating as far back as 2010.

The Home Office has criticised the union for the timing of the strike, saying it could affect people's summer holidays.

Last month, it redeployed hundreds of staff to deal with a backlog of 30,000 applications, with some people waiting up to two months for passports that are meant to be processed within three weeks.

It said that about 360,000 passport applications are currently going through the system.

A worker revealed the scale of the passport processing backlog in June

Appearing before a committee of MPs in early July, Passport Office chief executive Paul Pugh said 170,000 passports were being issued each week, and he expected the number to increase by 10,000 a week "over the summer".

The Passport Office said it had faced the highest demand in applications for the last 12 years.

But PCS general-secretary Mark Serkwotka said: "The staffing crisis in the Passport Office has been obvious for everyone to see and it shouldn't have taken a committee of MPs to force the chief executive to meet us to discuss it.

"We are still a long way off getting a commitment from the agency that it will work with us to put the proper resources in place to ensure these backlogs do not reoccur year after year."

In June, the Passport Office boss admitted there are 480,000 passport applications "outstanding", as union representatives said the agency had "lost control" of the backlog.

Mr Pugh told the Home Affairs Select Committee they had received 3.6 million passport applications since January this year, which was significantly higher than usual.

The passport backlog controversy went viral on social media in June, after a worker posted pictures of the scale of the delay in the Liverpool office.

Home Secretary Theresa May then suggested the Passport Office may be brought under the control of Home Office ministers.

16.01 | 0 komentar | Read More

National Parks To Be Protected From Fracking

Fracking will be allowed in national parks and areas of outstanding beauty only in "exceptional circumstances", ministers say, as new bidding for shale exploration licences opens.

The policy is part of new guidance published by Government which is aiming to offer up vast swathes of Britain for fracking.

The Government has committed to going "all out for shale", claiming development of the gas and oil resource is needed to improve energy security, and boost jobs and the economy.

But opponents say the high-pressure injection of water risks polluting water supplies, damaging the environment and causing minor earthquakes, and argue further fossil fuels should not be extracted due to climate change.

Business and energy minister Matthew Hancock said: "The new guidance will protect Britain's great National Parks and outstanding landscapes, building on the existing rules that ensure operational best practices are implemented and robustly enforced.

"Ultimately, done right, speeding up shale will mean more jobs and opportunities for people and help ensure long-term economic and energy security for our country."

Where an application in National Parks is refused and the developer launches an appeal, Communities Secretary Eric Pickles will consider whether to make the final decision himself to ensure the policy is being properly applied.

But Greenpeace campaigner Louise Hutchins warned: "Eric Pickles' supposed veto power over drilling in National Parks will do nothing to quell the disquiet of fracking opponents across Britain.

"Ministers waited until the parliamentary recess to make their move, no doubt aware of the political headache this will cause to MPs whose constituencies will be affected."

Friends of the Earth energy campaigner Tony Bosworth said: "Today the risk of fracking has spread. This threat to the environment and public health could now affect millions more people.

"Those who thought that fracking would only happen in other places will now worry about it happening on their doorstep."

The shale exploration licences which can be applied for from now provide the first step to start drilling, but do not give an absolute agreement to drill.

Planning permission, permits from the Environment Agency and agreement from the Health and Safety Executive will be required for further drilling.

16.01 | 0 komentar | Read More

Airline Insurance Soars Amid Spate Of Crashes

The global airline industry faces the prospect of huge insurance premium increases, amid a spate of crashes.

The warning comes as the sector is forecast to see annual losses hit more than £1.2bn - the most expensive year since the 9/11 attacks in 2001.

The insurance industry has warned of huge premium increases on aircraft cover, as war is now seen as a threat to commercial flight paths.

The soaring premiums follow a hostile attack on Malaysia Airlines flight MH17 over eastern Ukraine, which killed almost 300 people on July 17.

The UN condemned the "horrendous shooting down" of the airliner and said it may be seen as a "war crime".

Recent conflicts in the Middle East and parts of Africa have increasingly turned underwriters' attention to "war" insurance policies.

On July 24, an Air Algerie flight AH5017 was crashed in a remote region of Mali, close to the border with Burkina Faso, with the loss of 116 lives.

Nearly 300 people died when MH17 was shot down in eastern Ukraine

And a day before a TransAsia Airways flight in Taiwan crashed in bad weather, killing 48 passengers.

Mystery still surrounds the disappearance in March of Malaysia Airlines MH370, which is believed to have crashed in the Indian Ocean with 239 people on board.

Airlines face sudden policy changes in relation to hostile attacks and could include cover cancellations with just days' notice.

The Financial Times said that some companies are demanding exact flight path details and may reconsider cover for flights over areas of conflict.

As the aviation industry is hit with insurance hikes, Malaysia Airlines is expected to see the highest increases, amid reports that it may seek to rebrand itself after losing the two aircraft this year.

Lloyd's of London, the world's oldest insurance market, said it expects to see a bill running into hundreds of millions of pounds this year due to recent airline disasters.

16.01 | 0 komentar | Read More

UK Economy Emerges From Six-Year Downturn

Official figures show the UK economy has emerged from six years of lost growth to return to its pre-crisis peak.

The Office for National Statistics (ONS) said Britain's economy was now bigger than it was before the financial crisis as gross domestic product (GDP) expanded by 0.8% in the second quarter of the year.

The performance matched that of the previous quarter, although today's figure is only a first estimate and subject to revision.

It meant that on an annual basis, growth was 3.1% higher than was measured in the same period last year, leaving total output 0.2% higher than in the first quarter of 2008 - its previous peak.

Consumer spending is still driving growth

The measure of GDP per head - taking account of a growing population and weaker productivity - remains below the peak.

In its April to June calculations, the ONS charted 1% quarter-on-quarter growth in the service sector - which accounts for 75% of total UK GDP - while industrial production rose 0.4%.

However both construction and agriculture made negative contributions of 0.5% and 0.2% respectively. Both were hit by the effects of a very wet winter and spring.

The construction sector was damaged by a weak May

The ONS said only the service industry was now bigger than it was before the crisis, with industrial output and construction still 10% smaller.

Chancellor George Osborne said: "Thanks to the hard work of the British people, today we reach a major milestone in our long-term economic plan."

He tweeted: "We owe it to hardworking taxpayers not to repeat the mistakes of the past.

"Economy bigger than previous peak in 2008 but long way to go - the Great Recession was one of deepest of any major economy & cost UK 6 years."

However many people reacted to the news with scepticism. Posts of Sky News' Facebook page suggested not everyone feels Britain is out of the economic doldrums.

Ed Balls accuses ministers of creating a cost of living crisis

:: Robert Futsal Brassett: "They may declare it. But it don't feel like it."

:: Dorothy Dougan "Just in time for the General Election how fortuitous. So do we all get pay rise now?"

:: Jax Bell - "So NOW can we all get a decent pay rise,MPs 11% everyone who is on benefits/pension 2.5% Working people in North East 1%. Worst Government Leaders in British History"

:: Josephine Hargreaves - "Really? Come out into the real world & talk to the ordinary people to see if its over!"

:: Kerry Livesey - "Good news but let's hope the low paid workers benefit"

The pace of the recovery will feed into expectations about the timing of an interest rate rise by the Bank of England though its governor Mark Carney recently suggested it would be tied to improved data on wage growth.

While employment has soared in recent months, salary growth has fallen to 0.3% year-on-year and continues to lag inflation - last measured at 1.9%.

The scenario that has left the Bank fearing the impact of any rate rise on consumers, whose spending remains the biggest driver of economic growth.

Labour's shadow chancellor, Ed Balls, said of the latest GDP figures: "At long last our economy is back to the size it was before the global banking crisis - three years after the US reached the same point.

"But with GDP per head not set to recover for three more years and most people still seeing their living standards squeezed, this is no time for complacent claims that the economy is fixed.

"Wages after inflation are down over £1,600 a year since 2010, housebuilding under this government is at its lowest level since the 1920s and business investment is lagging behind our competitors.

"Labour's economic plan will make Britain better off and fairer for the future."

16.01 | 0 komentar | Read More

Housing Shortage Sees More Tenants Evicted

By Mark White, Home Affairs Correspondent

Increasing numbers of private tenants are being evicted or exploited by landlords cashing in on the increase in house prices and the shortage of rented accommodation, according to latest figures.

Citizens Advice (CAB) saw a 38% rise in the number of people turning to the charity for help with eviction notices served on them, despite being up to date with their rent.

CAB recorded 5,000 cases across the country in 2013/2014 where tenants complained about being forced from their homes, even though they were not in arrears. That figure is up from 3,750 the previous year.

Problems in London and the South East are particularly acute, the charity said, where many house prices are the highest in the country.

Private tenant Ryan Herran told Sky News he was being forced from his Muswell Hill home of five years, because he complained about damp and mould in the property and demanded his landlord fix the problem.

After months of wrangling with the owner, he was eventually served with a section 21 eviction order.

"I was actually in shock for a couple of days because I've always been a good tenant and always paid my rent and never engaged in anti-social behaviour," he said.

"I did ring up the property management company and they told me they don't have to give a reason under the section 21 eviction notice. They said they felt they were doing me a favour by at least giving me two months notice."

Mr Herran believes his eviction is motivated by spite and certainty on the part of the landlord that he would easily be able to find another tenant.

The number of tenants seeking help over eviction has nearly doubled

Roger Harding from the homelessness charity Shelter said: "Sadly landlords can evict for no reason, even if you've been keeping up with the rent. 

"We've found many worrying examples where landlords have evicted people simply because they don't want to have to deal with repair issues and that's something we want to see outlawed."

During January to March 2014 house prices rose by 18% in London and 10% in the South East, compared to the same period the previous year.

CAB's figures reveal those rises were mirrored by an increase in private tenants reporting they had been served with eviction notices, despite being up to date with their rent.

The charity said the number of tenants in London and the South East seeking help over eviction notices between January and March 2014 was 900, compared with 400 over the first quarter of the year before.

Landlord Richard Blanco rents out properties across six London boroughs and is also a member of National Landlords Association. He said private landlords are often unfairly maligned.

"There's a small minority of rogue landlords who might try and increase rents but really the most sensible business model for landlords is to maintain the property well and to have a good relationship with tenants and to try to ensure tenants stay as long as possible," he said.

Mr Blanco said, contrary to widespread belief, more than three quarters of private tenants have not faced an increase in rents over the past 12 months.

The Government is in the process of introducing new legislation which it hopes will strengthen the rights of private tenants and help protect them from exploitation, or unjustified eviction.

16.01 | 0 komentar | Read More

Gatwick Passengers Suffer Baggage Delays

Hundreds of people arriving into Gatwick Airport's south terminal have faced long delays in picking up their luggage, with many being told to go home without it.

An airport spokesman said the overnight disruption was caused by "resourcing issues" involving baggage handlers Swissport.

"Due to resourcing issues with the baggage handlers Swissport there were overnight issues and delays with passengers' luggage," he said.

"Gatwick provided extra staff to help the airlines and their baggage handlers improve their service, as well as providing welfare and water for passengers waiting in the baggage areas, but we are sorry for the delays they faced.

"Baggage operations are now returning to normal."

Passengers of four airlines have been advised to go home without their luggage.

Gatwick said it provided extra staff for airlines to help reduce the delays

Officials at the airport informed passengers of British Airways flights who had waited more than an hour on their bags being returned, and those on Monarch, Thomas Cook or Thompson flights who had been waiting 90 minutes or more, that their luggage would be forwarded to their home address.

It is understood easyJet passengers have also been affected but had not been advised to leave without their baggage.

Some passengers took to social media sites to voice their frustrations over the delays - some up to five hours.

Julian C Adams tweeted: "Such shocking service at Gatwick airport! Waiting for the arrival of baggage for over 2 hours now! #shouldhaveflowntoheathrow."

Sophie Wood ‏tweeted: "3 hrs in #gatwick baggage handling ... Apparent Lack of staff appalling shambles #Gatwick#idiots."

Oliver Webb wrote: "‏@2 hour delays at #gatwick for baggage reclaim. #Swissport to blame apparently. No info from airport staff. Rubbish."

16.01 | 0 komentar | Read More

UK Economy Emerges From Six-Year Downturn

Official figures show the UK economy has emerged from six years of lost growth to return to its pre-crisis peak.

The Office for National Statistics (ONS) said Britain's economy was now bigger than it was before the financial crisis as gross domestic product (GDP) expanded by 0.8% in the second quarter of the year.

The performance matched that of the previous quarter, although today's figure is only a first estimate and subject to revision.

It meant that on an annual basis, growth was 3.1% higher than was measured in the same period last year, leaving total output 0.2% higher than in the first quarter of 2008 - its previous peak.

Consumer spending is still driving growth

The measure of GDP per head - taking account of a growing population and weaker productivity - remains below the peak.

In its April to June calculations, the ONS charted 1% quarter-on-quarter growth in the service sector - which accounts for 75% of total UK GDP - while industrial production rose 0.4%.

However both construction and agriculture made negative contributions of 0.5% and 0.2% respectively. Both were hit by the effects of a very wet winter and spring.

The construction sector was damaged by a weak May

The ONS said only the service industry was now bigger than it was before the crisis, with industrial output and construction still 10% smaller.

Chancellor George Osborne said: "Thanks to the hard work of the British people, today we reach a major milestone in our long-term economic plan."

He tweeted: "We owe it to hardworking taxpayers not to repeat the mistakes of the past.

"Economy bigger than previous peak in 2008 but long way to go - the Great Recession was one of deepest of any major economy & cost UK 6 years."

However many people reacted to the news with scepticism. Posts of Sky News' Facebook page suggested not everyone feels Britain is out of the economic doldrums.

Ed Balls accuses ministers of creating a cost of living crisis

:: Robert Futsal Brassett: "They may declare it. But it don't feel like it."

:: Dorothy Dougan "Just in time for the General Election how fortuitous. So do we all get pay rise now?"

:: Jax Bell - "So NOW can we all get a decent pay rise,MPs 11% everyone who is on benefits/pension 2.5% Working people in North East 1%. Worst Government Leaders in British History"

:: Josephine Hargreaves - "Really? Come out into the real world & talk to the ordinary people to see if its over!"

:: Kerry Livesey - "Good news but let's hope the low paid workers benefit"

The pace of the recovery will feed into expectations about the timing of an interest rate rise by the Bank of England though its governor Mark Carney recently suggested it would be tied to improved data on wage growth.

While employment has soared in recent months, salary growth has fallen to 0.3% year-on-year and continues to lag inflation - last measured at 1.9%.

The scenario that has left the Bank fearing the impact of any rate rise on consumers, whose spending remains the biggest driver of economic growth.

Labour's shadow chancellor, Ed Balls, said of the latest GDP figures: "At long last our economy is back to the size it was before the global banking crisis - three years after the US reached the same point.

"But with GDP per head not set to recover for three more years and most people still seeing their living standards squeezed, this is no time for complacent claims that the economy is fixed.

"Wages after inflation are down over £1,600 a year since 2010, housebuilding under this government is at its lowest level since the 1920s and business investment is lagging behind our competitors.

"Labour's economic plan will make Britain better off and fairer for the future."

16.02 | 0 komentar | Read More