Standard Life Profit Rises 12% To £339m

Standard Life has reported a 12% rise in its operating profit for the first half of the year.

The insurance and pension group's operating profit before tax rose to £339m as more UK workers were automatically enrolled in company pension schemes.

The group said it expects to add more than 300,000 new auto-enrolled customers this year.

Chief executive, David Nish said: "We have an excellent track record of succeeding in evolving markets and we are well placed to deal with the far-reaching reforms to the savings and retirement income rules, announced earlier this year by the UK Government."

It comes as the Scottish company reiterated its position on the upcoming referendum, saying there is still no clarity on the economic and financial concerns raised by it.

The company, which was one of the first to lay out contingency plans in the case of a 'yes' vote for Scottish independence, said it maintains its position.

In May, Standard Life said it would be prepared to move some of its operations out of Scotland if the nation voted in favour of a split from the United Kingdom.

The company said relocating parts of its business to England in the event of a 'yes' vote would be a measure taken to protect its market position.

Any relocation could put some 5,000 Scottish jobs at risk.

16.02 | 0 komentar | Read More

HP Suing Autonomy Bosses Over Alleged Fraud

Hewlett-Packard (HP) is to set to sue the former chief executive of Autonomy.

HP has accused Michael Lynch of fraud as an on-going row grows over its troubled purchase of the British software company three years ago.

The US technology giant is also suing Autonomy's former chief financial officer Sushovan Hussain, who tried to intervene in three shareholder lawsuits earlier this year.

After HP settled the case with shareholders over billions of pounds lost in its acquisition of Autonomy, Mr Hussain tried to block the settlement blaming the company for failures.

HP bought Autonomy in 2011 for $11.1bn (£6.6bn), but had to write down $8.8bn (£5.2bn) of the company's value a year later.

It went on to accuse the executives of accounting fraud and now has the backing of shareholders to launch lawsuits against them.

Filling the case at a court on Monday, HP said: "The shareholder plaintiffs who originally sued HP's directors and officers now agree that Hussain, along with Autonomy's founder and CEO, Michael Lynch, should be held accountable for this fraud."

It added: "The notion that (Hussain) should be permitted to intervene and challenge the substance of a settlement designed to protect the interests of the company he defrauded is ludicrous."

Mr Lynch and Mr Hussain have denied any wrongdoing.

The former Autonomy bosses responded: "This breathless ranting from HP is the sort of personal smear we've come to expect.

"As the emotional outbursts go up, the access to facts seems to go down.

"Meg Whitman (HP's CEO) is buying off a bunch of lawyers so she doesn't have to answer charges of incompetence and misdirection in front of a judge and jury."

16.02 | 0 komentar | Read More

F1 Boss Offers Settlement To End Bribery Trial

Formula One boss Bernie Ecclestone has offered a £60m ($100m) settlement to end his trial on bribery charges, a German court has said.

Mr Ecclestone, 83, went on trial in Munich in April over allegations that he bribed a former German banker as part of the sale of a major stake in the motor sport business eight years ago.

The state prosecutor told the court on Tuesday Mr Ecclestone's age and other circumstances supported the acceptance of a settlement.

The British billionaire could have faced up to 10 years in jail and would have had to relinquish control of a business he has built up over the past four decades.

Under German law, judges, prosecutors and the defence can agree to dismiss a case or settle it with a light punishment, although terms for such an agreement are strictly defined.   

Mr Ecclestone has previously admitted making the payment to Gribkowsky, who is now serving a jail sentence, but denied all charges of bribery.

"Gribkowsky did not tell the truth at crucial points," Mr Ecclestone told the court at the start of his trial in April.

His words were in a 100-page statement read out in German on his behalf by his lawyer Sven Thomas.

Mr Ecclestone maintains that he was the victim of coercion by Gribkowsky and that Gribkowsky was threatening to make damaging claims about his tax affairs that could have cost him and his family much of their fortune.

Presiding judge Peter Noll said "the court must review this offer in its entirety" and will rule on it later today.

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HSBC Urges Ring-Fencing Delay Amid CMA Probe

By Mark Kleinman, City Editor

One of Britain's biggest banks is urging the Government to delay a deadline for separating lenders' retail and investment banking operations amid fears that billions of pounds could be wasted on the project.

Sky News has learnt that Douglas Flint, the chairman of HSBC, has written to George Osborne, the Chancellor, and Mark Carney, the Bank of England Governor, in recent days to warn about the potential implications of a competition probe into the industry.

Mr Flint is said by Whitehall sources familiar with the letter's contents to have requested a delay to the 2019 timetable for bank ring-fencing, which was part of Sir John Vickers' Independent Commission on Banking (ICB) report in 2011.

One political insider said that HSBC was not challenging a recent announcement by the Competition and Markets Authority (CMA) disclosing that it was minded to move ahead with a full inquiry into the personal current account and small business (SME) banking markets.

However, the bank is understood to have expressed concern that the CMA could call for structural reforms which would entail the disposal of operations on which it is already spending significant sums in preparation for the introduction of ring-fencing.

The demand for a delay to the ring-fencing deadline until the outcome of a competition probe is known represents the most robust recent intervention by a major bank over one of Britain's key post-crisis reforms to the industry.

Andrew Bailey, the Prudential Regulation Authority chief executive, and Andrew Tyrie, chairman of the Treasury Select Committee and Parliamentary Commission on Banking Standards (PCBS), are also understood to have received Mr Flint's letter.

Legislation to enact the ring-fencing structure had already been passed under the Banking Reform Act, and it is unclear whether there will be any appetite among politicians or regulators to accede to HSBC's request.

Mr Flint's letter will, nevertheless, carry substantial weight in Whitehall because of his status as one of the most respected executives in the UK banking sector.

A public endorser of the ICB reforms in the past, he also chairs the board of the Institute of International Finance, a global association of financial services trade bodies.

The ICB acknowledged that segregating the retail and investment banking operations of the big UK lenders would incur billions of pounds of costs, but argued that it was the most effective way to prevent taxpayers having to step in and rescue banks during a future financial crisis.

A number of key details, including the governance of ring-fenced banks, are expected to be set out in secondary legislation during the next 12 months.

Mr Osborne has also waved through a key PCBS recommendation that regulators be given the power to enforce full separation of universal banks such as Barclays and HSBC if they breach the new rules: a reserve power that Mr Tyrie described as "electrifying the ring-fence".

Sky News has learnt of HSBC's warning to Mr Osborne the day before it reports half-year results, making it the last of the major UK banks to do so.

HSBC declined to comment on Sunday.

16.01 | 0 komentar | Read More

Portugal's Banco Espirito Santo Gets Bailout

Portugal has announced a multi-billion euro rescue plan for struggling lender Banco Espirito Santo.

4.9bn euros (£3.9bn) will be pumped into its largest listed bank which under the plans will be split into two.

A "good bank" called Novo Banco will take healthy assets, whilst a "bad bank" will be formed to take exposure to risky ones.

Depositers and senior bondholders will be protected by the creation of Novo Banco.

Junior bondholders and shareholders, which includes the Espirito Santo family, will bear the bad bank's losses.

It comes after Banco Espirito Santo reported a record loss of 3.6bn euros (£2.8bn) for the first half of the year last week.

Portugal's central bank said the money used to rescue the troubled lender will come from a bank resolution fund created in 2012, which the state will lend 4.4bn euros (£3.5bn).

It said the public would not shoulder the cost as the loan will be temporary and it expects the state to be reimbursed when Novo Banco is eventually sold to private investors.

Carlos Costa, the central bank's governor, said: "The plan carries no risk to public finances or taxpayers."

A setback for Portugal, it comes just months after the country emerged from a 78bn euro (£62bn), three-year bailout from the European Union and the International Monetary Fund.

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HSBC Sees Pre-Tax Profit Drop 12% To £7.3bn

HSBC's pre-tax profit dropped by 12% to £7.3bn in the first half of the year.

For the same period in 2013, the bank made £8.3bn.

It comes as HSBC said it has increased its provision for payment protection insurance (PPI) compensation by £115m.

Last week Lloyds Banking Group and Barclays upped their compensation pots for the mis-selling of PPI.

More follows...

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High Street Revival 'Has Shown Little Impact'

By Frazer Maude, Sky News Correspondent

The self-titled "Queen of Shops" has come under fire after her Government-backed bid to revive the High Street has shown little impact.

Wolverhampton was one of 12 town centres chosen to pilot retail guru Mary Portas' High Street revival. It got a £100,000 share of the £1.2m in funding.

That helped finance the opening of five retail outlets. Three of them have been a success, one has diversified, and the fifth went under.

Nick Pitt, manager of the local shopping centre, chaired the Wolverhampton Portas Project. He sees it as a success for the town centre.

"A hundred thousand pounds is good value. And it rallied businesses around to come together in a very selfless way to help people get into business," he told Sky News.

"It was quite a humbling experience. I see people who'd never had the opportunity before to have their own shop and now they have.

"And those people are still helping us now to help other people get into business. And we're determined to do it again."

The celebrity trouble shooter was brought in by the Government two years ago to breathe new life into our struggling High Streets.

But some of her key recommendations, like a reduction in business rates and free parking, were ignored.

Some £1.2m in funding was set aside two years ago to boost business

Labour MP and chair of the Government's Business Select Committee, Adrian Bailey, is critical of the scheme, saying: "Overall, and I would emphasise it time and time again, you will not change the basic problems of the High Street just by putting in these sort of pilots.

"You've got to change the business rates and those obstacles which are deterring people from moving into the High Street in order to provide an imaginative variety of retail offers that people will want to buy into."

Mary Portas was not available for interview, but her CEO David Wood issued a statement to Sky News on her behalf.

It said: "We think there's some justified criticism of the way Government originally implemented the programme and the lack of infrastructure to support the town teams.

"There's also justified criticism of the way the majority of the recommendations were accepted but nothing was done - for example we spoke in the report about parking, business rates, landlords, town-centre-first planning approvals and the like but little was done."

Penny Maudaunt, the newly appointed High Streets Minister, says the scheme has been successful.

"There has been a huge amount of really good work that's gone on locally," she said.

"The pilots have been experiments. There have been a lot of good ideas, some ideas that may not have worked so well, but there are a number of ideas that have worked very well for particular areas and what we have to do is replicate that in other High Streets."

But many businesses say the areas that need tackling are the very ones that Ms Portas highlighted months ago, and which the Government ignored.

16.02 | 0 komentar | Read More

Brady And Ex-M&S Boss To Get Tory Peerages

By Mark Kleinman, City Editor

David Cameron is to hand peerages to The Apprentice star Karren Brady, the former Marks & Spencer (M&S) boss Sir Stuart Rose and a multimillionaire Conservative donor in a wave of appointments that could revive a festering row about membership of the House of Lords.

Sky News can exclusively reveal that Ms Brady and Sir Stuart have been lined up as Conservative members of the upper house.

A Government insider said that Michael Farmer, a co-treasurer of and long-standing donor to the Tories, is also expected to be made a peer when the new list is unveiled.

The appointments of Ms Brady and Sir Stuart will bring two of Britain's most prominent businesspeople into the Lords at a time when the main parties are battling to secure high-profile support from business leaders in the run-up to next year's General Election.

Mr Farmer is less well-known outside the City but earned the nickname 'Mr Copper' after making a fortune from the commodities markets.

He has donated several million pounds to Conservative coffers in recent years and became co-treasurer of the party in 2012.

Another source said Joanna Shields, the former Facebook executive who went on to run Tech City, the London-based hub for technology businesses, had also been mentioned in recent days as a potential appointee, although her presence on the final list could not be verified.

Ex M&S boss Sir Stuart Rose (left, middle) has also been lined up as a peer

The timing of an announcement is unclear, although sources indicated that it could come as soon as next week.

Around 20 new peers are expected to be appointed, with the majority selected by Mr Cameron and Nick Clegg, the Liberal Democrat leader.

New members of the Lords are subjected to a strict vetting process, which the Government source said had now been completed in relation to the latest nominees.

The forthcoming arrivals will increase membership of the Lords to more than 850, reinforcing its status as the second-largest legislative chamber in the world, behind only China's National People's Congress.

The frequent appointment of new peers has sparked criticism about the cost to taxpayers and the ability of the Lords to function effectively as a legislative scrutineer.

It has also led to rows about the propriety of handing peerages to prominent party supporters and donors.

A number of leading business figures, including Lord Myners, the former M&S chairman, and Lord Davies, who ran Standard Chartered, were parachuted into the Lords during the banking crisis and took on ministerial roles.

Both Ms Brady and Sir Stuart have appeared at Conservative annual conferences in recent years, with the West Ham United boss also taking on a role as small business adviser to the Government.

Sir Stuart, who has taken on a string of jobs since leaving M&S including the chairmanship of Ocado, the online grocer, has also been advising the Government on NHS reform.

Reports this week said that Michael Cashman, the ex-EastEnders actor, would be one of three new Labour members of the Lords, while David Willetts, the former universities and science minister, and the former energy minister Greg Barker are said to be in line for peerages after the next election.

A Downing Street spokesman declined to comment, while none of the prospective new peers could be reached for comment.

16.02 | 0 komentar | Read More

Campaigners Call For 'Staycation' Tax Cut

By Frazer Maude, Sky News Reporter

Campaigners fighting for a reduction in VAT for the tourism industry say it could offer the UK economy a £4bn boost.

The popularity of domestic holidays, or 'staycations' has been fuelled by the recession.

In fact a recent survey by Barclays projects that they may be worth over £108bn to the UK economy by 2017, and that our spend on holidays at home will increase by 25% over the next four years.

But tourism chiefs say the UK isn't competing on a level playing field with the rest of Europe.

In France, Germany, Spain and Italy, VAT paid by tourists is set at 7 or 10%. Here it's 20%.

Cuts in the rates in Europe have shown to be successful, and those campaigning for the same to happen here say a cut to 5% would boost investment, jobs and visitor numbers.

Patrick Dempsey, managing director of Whitbread Hotels and Restaurants, said: "We fully support the initiative to cut tourism tax. A cut would deliver a huge financial boost for tourism around the UK and 120,000 new jobs with 8,000 already being created by Premier Inn by 2018."

'Staycations' in the UK were made more popular by the recession

Another report shows that the UK is ranked 138 out of 140 countries for price competitiveness, and is one of only four countries in the EU not to reduce tourism VAT.

Graham Wason, chairman of the Cut Tourism VAT Campaign, said:  "This new research is the economic proof the Treasury has asked for to prove what every other country in Europe knows - that cutting VAT on holidays is profitable for governments.

"Many of our coastal towns are ignored but cutting VAT would help them thrive. More than 60 cross-party MPs have signed our parliamentary motion and more than 1,000 companies and groups are backing the campaign."

But there is little sun on the horizon from the Government.

The Treasury told Sky News in a statement: "The Government recognises the importance of the tourism and hospitality industry, and is providing additional support to businesses in a number of ways.

"For example, from April 2014 businesses and charities have been able to benefit from up to £2,000 off their employer national insurance contributions bill and over £1bn of business rates support has been provided, benefiting all ratepayers.

"While we keep all taxes under review, we do not have any plans to introduce a VAT cut for the tourism sector."

The campaigners won't be deterred, and say they will continue to lobby the Government for the same breaks that their European rivals are getting.

16.02 | 0 komentar | Read More

BA Owner IAG Announces Profits Of £182m

International Airlines Group, the owner of British Airways and Iberia, has announced a half year operating profit of £182m (€230m).

The company says the results are £208m (€230m) better than 2013, when it made a £26m loss.

IAG's chief executive, Willie Walsh, told Sky News the turnaround in Iberia had been "stunning" and said it was buying eight Airbus A350-900 aircraft for the airline, as well as eight A330-200 planes.

Mr Walsh said: "Iberia has taken significant steps to restructure its business and the progress made so far means that we can bring new long haul aircraft into the airline's fleet.

"These orders demonstrate our commitment to make Iberia competitive."

More than 3,000 jobs have been cut at the Spanish airline and nearly 1,600 more losses have been announced.

IAG's second quarter operating profit was £301m (€380m), up some £107m (€135m) on last year, as the lucrative spring and summer seasons deliver a big increase in passenger numbers.

Thousands of jobs have been cut at Spanish carrier Iberia

Mr Walsh also told Sky that BA and Iberia were both taking action over the current outbreak of the ebola virus in some African countries.

"Anyone flying into the areas is provided with a briefing from our health services," he said.

"That's a comprehensive briefing which outlines all the issues that people should be aware of.

"I'm satisfied that the measures at the airports where outbreaks have been identified are working, and are working well."

Mr Walsh also defended baggage handling company Swissport, which has been criticised over problems at Gatwick Airport.

Some passengers have faced long delays collecting their bags, with some told to go home without them.

He said: "I think Swissport is a good company - they provide us with services around the world ... To be fair to them, it's not all their fault because Gatwick was affected by some adverse weather which meant schedules were running well off plan and aircraft were arriving at a time where they did not have resources in place.

"I apologise to any of our customers who've been affected by the services provided to us by Swissport.

"But ... all the handling agencies at Gatwick are working to ensure all that all of our customers, and customers of other airlines can get away on their holidays."

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