London 2012 Exec Gives John Laing IPO Boost

By Mark Kleinman, City Editor

An official who helped steer London's staging of the 2012 Olympic Games is to join the board of John Laing, the infrastructure investor, as it prepares for a stock market listing valuing it at more than £1bn.

Sky News understands that Jeremy Beeton, who was director-general of the Government Olympic Executive, will be one of several non-executive directors named this week ahead of what would be the largest City float so far this year.

John Laing, which is owned by Henderson, the asset management group, is expected to raise tens of millions of pounds by selling new shares if it successfully completes its listing.

The company's most prominent projects include the second Severn river crossing and the new Alder Hey children's hospital in Liverpool.

Mr Beeton's appointment will be announced alongside that of David Rough, the former deputy chairman of Xstrata, who courted City controversy by rubber-stamping huge executive pay awards when it merged with Glencore in 2013.

An insider said that Mr Rough would not chair the remuneration committee of John Laing.

Anne Wade, a former executive at the fund management giant Capital International, will also be appointed to John Laing's board, a source said on Saturday.

Mr Beeton was paid a bonus of more than £200,000 for his role working on the London Olympics.

In July 2012, he was approved by Whitehall's Advisory Committee on Business Appointments – which seeks to prevent conflicts of interest for public servants who move to the private sector – to take roles at Macquarie, the Australian bank and infrastructure investor, and PricewaterhouseCoopers, the accountancy firm.

Macquarie was this week reported to be pursuing a possible takeover bid for John Laing, although insiders said this weekend that the company was "focused on an initial public offering".

John Laing was listed on the stock market until 2007, but had experienced a traumatic time after costs spiralled out of control during work on the Millennium Stadium in Cardiff.

Henderson has been keen to explore an exit for some time.

John Laing's new chief executive, Olivier Brousse, believes its shares will be attractive to new investors because of the scope to export the public-private partnership (PPP) around the world.

"There is a lot of interest in John Laing because of the potential to scale it up," he told The Times last month.

"For us it is about getting more funds to grow the business — 2015 will bring the answer and then we can decide on new sectors and new countries."

John Laing has already developed a presence in Australia and Mr Brousse describes the US market as "our new frontier".

The valuation of John Laing when it lists will depend on the demand for new shares and the broader market sentiment at a time when currency moves by the Swiss central bank and concerns about global economic growth have caused some jitters among investors.

John Laing is a separate company to John Laing Infrastructure Fund, which is already listed and which recently attempted to bid for a large chunk of Balfour Beatty, the troubled construction group.

A John Laing spokesman declined to comment.

16.01 | 0 komentar | Read More

Final Whistle For West Ham Shirt Sponsor

Foreign exchange broker Alpari UK has entered insolvency following market turmoil over Switzerland's shock decision to unpeg its currency from the euro.

Within minutes of the early morning announcement on Thursday, the currency spiked around a third against the single European currency and the dollar while Swiss shares tanked more than 8%, prompting confusion and anger across trading room floors.

The move was seen as a bid by Switzerland's central bank to prepare the ground for quantitative easing in the eurozone - expected to be announced next week in an attempt to halt a slide towards deflation and boost economic activity.

Alpari is understood to have more than 200,000 clients and it said the majority had sustained losses.

It was not the only brokerage to take a massive financial hit in the wake of the turmoil with another firm in New Zealand also going out of business.

At the time of the market meltdown, Alpari's chief market strategist had declared the Swiss action "completely irresponsible" given recent support for the peg by the central bank.

Alpari said today: "The recent move on the Swiss franc caused by the Swiss National Bank's unexpected policy reversal of capping the Swiss franc against the euro has resulted in exceptional volatility and extreme lack of liquidity.

"This has resulted in the majority of clients sustaining losses which has exceeded their account equity.

"Where a client cannot cover this loss, it is passed on to us. This has forced Alpari (UK) Limited to confirm today, 16/01/15, that it has entered into insolvency.

"Retail client funds continue to be segregated in accordance with FCA rules."

The currency peg, which was introduced in September 2011, was an attempt to halt the rise of the franc against the euro at a time when the eurozone debt crisis was at its height.

The strong franc was then particularly problematic for Swiss exporters, who were forced to drastically cut prices to remain competitive.

In an effort to contain the franc's future appreciation and limit any damage to the Swiss economy, the central bank also lowered a key interest rate to -0.75 to dissuade banks from parking their cash at the national bank, opting instead to invest in the Swiss economy.

West Ham, which signed its shirt sponsorship deal with Alpari UK two years ago, refused to comment on the company's financial woes.

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Delays As Eurostar Services Resume After Fire

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Video: Eurotunnel Services Resume

Passengers are being warned to expect delays on Eurostar services after a lorry fire left thousands stranded on both sides of the Channel.

Passenger services and the Eurotunnel Le Shuttle car service were stopped on Saturday after the vehicle caught fire on the French side of the railway's south tunnel.

The incident led to long queues at St Pancras station in London as services were cancelled. Queues have formed again at the station, where Sky's Charlotte Lomas-Farley reports this morning's first Eurostar train has now departed.

There were also delays and queues in Paris.

A Eurotunnel spokesman said services resumed at 2.45am UK time.

1/7

1. Gallery: Travel Chaos In London And Paris

   This is the scene at St Pancras International station in London as Eurostar services are cancelled in both directions

The company said trains would not be running on Saturday

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Large queues of passengers have formed - but they are being told they will be unable to travel

]]>

It is a similar scene at Gare du Nord station in Paris - this board shows all services have been cancelled

]]>

Passengers are having to make alternative arrangements

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Passenger service Eurostar says it plans to run a full service today, but only "for passengers who have an existing reservation for this date".

Trains are expected to be delayed by between 30 minutes and an hour.

The company added that people whose trains were cancelled on Saturday are advised not to arrive at stations unless they had already been re-booked.

A Eurostar spokesman said: "All passengers who are booked to travel tomorrow, Sunday 18 January, should check in as normal half an hour before departure.

"Eurostar services tomorrow are already very busy and availability is limited."

Earlier, Eurotunnel spokesman John O'Keefe said a "smouldering load" was found in the trailer of the lorry.

The alarm was triggered after CO2 detectors were activated in one tunnel, Eurotunnel said.

Video: Passengers Hit By Eurostar Alert

A Kent Police spokesman said: "A lorry fire has led to the closure of both bores of the Channel Tunnel.

"The fire was at the French end of the tunnel and is being dealt with by the French authorities.

"There are no reported injuries."

In March, hundreds of Eurostar passengers were delayed after a lightning strike triggered a fire in a building close to the entrance to the tunnel in Kent.

Although there was no damage to the track, four trains in and out of England were affected.

Three eventually reached their destination but the fourth, which had been heading to Paris, was forced to turn back to London.

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We use cookies to give you the best experience. If you do nothing we'll assume that it's ok.

Video: Eurotunnel Services Resume

Passengers are being warned to expect delays on Eurostar services after a lorry fire left thousands stranded on both sides of the Channel.

Passenger services and the Eurotunnel Le Shuttle car service were stopped on Saturday after the vehicle caught fire on the French side of the railway's south tunnel.

The incident led to long queues at St Pancras station in London as services were cancelled. Queues have formed again at the station, where Sky's Charlotte Lomas-Farley reports this morning's first Eurostar train has now departed.

There were also delays and queues in Paris.

A Eurotunnel spokesman said services resumed at 2.45am UK time.

1/7

1. Gallery: Travel Chaos In London And Paris

   This is the scene at St Pancras International station in London as Eurostar services are cancelled in both directions

The company said trains would not be running on Saturday

]]>

Large queues of passengers have formed - but they are being told they will be unable to travel

]]>

It is a similar scene at Gare du Nord station in Paris - this board shows all services have been cancelled

]]>

Passengers are having to make alternative arrangements

]]>

Passenger service Eurostar says it plans to run a full service today, but only "for passengers who have an existing reservation for this date".

Trains are expected to be delayed by between 30 minutes and an hour.

The company added that people whose trains were cancelled on Saturday are advised not to arrive at stations unless they had already been re-booked.

A Eurostar spokesman said: "All passengers who are booked to travel tomorrow, Sunday 18 January, should check in as normal half an hour before departure.

"Eurostar services tomorrow are already very busy and availability is limited."

Earlier, Eurotunnel spokesman John O'Keefe said a "smouldering load" was found in the trailer of the lorry.

The alarm was triggered after CO2 detectors were activated in one tunnel, Eurotunnel said.

Video: Passengers Hit By Eurostar Alert

A Kent Police spokesman said: "A lorry fire has led to the closure of both bores of the Channel Tunnel.

"The fire was at the French end of the tunnel and is being dealt with by the French authorities.

"There are no reported injuries."

In March, hundreds of Eurostar passengers were delayed after a lightning strike triggered a fire in a building close to the entrance to the tunnel in Kent.

Although there was no damage to the track, four trains in and out of England were affected.

Three eventually reached their destination but the fourth, which had been heading to Paris, was forced to turn back to London.

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1. Indonesia: Foreigners Executed By Firing Squad
2. UK To Host Summit To Tackle Islamic State
3. Qatar Migrant Worker Claims 'A Dirty Game'
4. Murdered Artist: Police To Begin DNA Screening
5. Fish Factory Fire Raged For Over 10 Hours

16.01 | 0 komentar | Read More

MP's Fury Over Delay To HBOS Crisis Report

By Mark Kleinman, City Editor

A member of the influential Treasury Select Committee criticised City regulators on Friday amid signs of a further delay to the completion of an inquiry into the near-collapse of HBOS in 2008.

Speaking to Sky News, Mark Garnier MP said the further delay, which is likely to mean publication of the report will not take place until at least the summer of this year, undermined the principle of the inquiry.

The Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) said last July that they aimed to publish their final report by the end of 2014, more than two years after work on it got underway.

Sky News revealed in December that the watchdogs would fail to hit that deadline because of the lengthy process which allows those criticised in official reports to lodge objections.

The regulators' report was initiated after concerted pressure from the Treasury Committee, which will be determined to scrutinise the findings and recommendations of the final document.

However, one parliamentary source said on Friday that there was now "little or zero chance" of the report being finalised before March 30, when the select committee system will be dissolved ahead of May's General Election.

Select committees can take up to three months to be re-formed after an election, meaning that a reconstituted Treasury committee may not be operating before mid-August.

"The whole point of these inquiries is to learn the lessons of the past," Mr Garnier said.

"If the regulators take so long that it is nine months behind its own deadline, you end up not learning those lessons in a timely fashion."

It is now more than six years since HBOS had to be rescued by a £20bn capital injection from taxpayers into Lloyds Banking Group, which took over the mortgage lending giant.

To date, only one former HBOS executive, Peter Cummings, has faced regulatory censure.

In 2012, he was fined £500,000 and banned for life from working again in financial services after being accused of failing to "exercise due skill, care and diligence".

The HBOS report's preparation has already been snared by repeated controversy, initially when the then Financial Services Authority said it had no intention of publishing such a review.

A process known as Maxwellisation, which allows people criticised in official reports to challenge regulators' comments, was launched last summer but is proving painstakingly slow, according to insiders.

Officials said last summer that because the report would rely on confidential information "previously provided by HBOS and other relevant parties, their consent will also be legally required before publication of this information."

Among the individuals expected to face criticism in the report are James Crosby, the bank's chief executive during a rapid period of expansion, and Andy Hornby, who ran the company immediately preceding its bail-out.

A separate review handled by Andrew Green, a leading QC, will examine whether regulators has reached an appropriate judgement in relation to enforcement actions against individuals.

It will "offer an opinion...as to whether the regulators should consider afresh whether any other former members of HBOS's senior management should be subject to an investigation with a view to prohibition proceedings," regulators said during the summer.

Andrew Tyrie, the Conservative MP who chairs the Treasury Select Committee, declined to comment on the latest delay.

He is expected to stand for a further term as the Committee's chairman if he is re-elected as an MP in May.

The PRA declined to comment.

16.01 | 0 komentar | Read More

Final Whistle For West Ham Shirt Sponsor

Foreign exchange broker Alpari UK has entered insolvency following market turmoil over Switzerland's shock decision to unpeg its currency from the euro.

Within minutes of the early morning announcement on Thursday, the currency spiked around a third against the single European currency and the dollar while Swiss shares tanked more than 8%, prompting confusion and anger across trading room floors.

The move was seen as a bid by Switzerland's central bank to prepare the ground for quantitative easing in the eurozone - expected to be announced next week in an attempt to halt a slide towards deflation and boost economic activity.

Alpari is understood to have more than 200,000 clients and it said the majority had sustained losses.

It was not the only brokerage to take a massive financial hit in the wake of the turmoil with another firm in New Zealand also going out of business.

At the time of the market meltdown, Alpari's chief market strategist had declared the Swiss action "completely irresponsible" given recent support for the peg by the central bank.

Alpari said today: "The recent move on the Swiss franc caused by the Swiss National Bank's unexpected policy reversal of capping the Swiss franc against the euro has resulted in exceptional volatility and extreme lack of liquidity.

"This has resulted in the majority of clients sustaining losses which has exceeded their account equity.

"Where a client cannot cover this loss, it is passed on to us. This has forced Alpari (UK) Limited to confirm today, 16/01/15, that it has entered into insolvency.

"Retail client funds continue to be segregated in accordance with FCA rules."

The currency peg, which was introduced in September 2011, was an attempt to halt the rise of the franc against the euro at a time when the eurozone debt crisis was at its height.

The strong franc was then particularly problematic for Swiss exporters, who were forced to drastically cut prices to remain competitive.

In an effort to contain the franc's future appreciation and limit any damage to the Swiss economy, the central bank also lowered a key interest rate to -0.75 to dissuade banks from parking their cash at the national bank, opting instead to invest in the Swiss economy.

West Ham, which signed its shirt sponsorship deal with Alpari UK two years ago, refused to comment on the company's financial woes.

16.01 | 0 komentar | Read More

Npower Fuels Debate Over Energy Price Cuts

By Mark Kleinman, City Editor

Npower, one of the UK's biggest energy suppliers, has stoked the political row over utility pricing, blaming the Government for favouring smaller peers and "political factors" for influencing commercial decision-making.

In a letter to Matthew Hancock, the Energy Minister, Npower's chief executive said the scope for reflecting recent falls in wholesale gas and oil prices in consumers' bills was limited by politicians' intervention in the market.

"Political factors have...become increasingly significant over the last few years, particularly as we approach the UK general election," Paul Massara wrote in the letter, a copy of which has been passed to Sky News.

"Any change in prices in the short term will inevitably have to take account [of] potential outcomes after May this year."

Although he did not refer to it explicitly, Whitehall sources said Mr Massara was drawing attention to the Labour leader Ed Miliband's plan for a 20-month price freeze if his party wins the election.

Video: October: Winter Energy Warning

Mr Hancock had written to the six largest gas and electricity suppliers to demand that they pass on recent wholesale price falls to consumers.

He is due to meet them separately in the next few weeks for further talks.

Earlier this week, Eon - which, like Npower, is German-owned - announced that it was shaving 3.5% off the cost of its standard gas tariff, equivalent to £24 off a typical household's annual bill.

Other energy companies have signalled privately, however, that the threat of a price freeze has made it commercially risky to cut prices ahead of the election.

On Wednesday, Labour was defeated in a House of Commons vote to secure support for powers for the regulator, Ofgem, to be able to force companies to reduce consumer bills in line with wholesale price movements.

Labour was forced to adapt the language of its energy policy, insisting that the freeze was actually intended to be a cap, although it continues to use the original language in online material promoting one of its flagship policies.

Mr Massara's letter rejected a comparison drawn by Mr Hancock between the approach to price reductions of the 'Big Six' and smaller suppliers.

"The proportion of customers on fixed-price contracts is much higher for smaller independent suppliers than it is for large suppliers.

Video: Npower On Profit And Pricing

"This allows them to claim that they are reducing prices when in fact they are simply offering a new lower price fixed-price contract for new customers, in the same way we do, which may in part explain your perception that they may have moved earlier."

Mr Massara added that "actions by both Government and the regulator means that small supplier have significant benefits in terms of exemptions from licence conditions and also in terms of passing through the cost of social and environmental levies."

The Npower chief executive also pointed to the impact on global energy markets of unrest in the Middle East and the conflict in Ukraine during the last year.

And he reiterated the argument of energy bosses that a substantial proportion of customers' bills related to network charges and the widespread introduction of smart meters, the costs of which analysts expect to increase this year.

"In the case of our domestic standard tariff, we buy forward in the market to protect our customers from volatile swings in wholesale energy costs, both up and down," he wrote.

Mr Massara also said that "the recent fall in wholesale price is being actively looked at...and we...take into account competitive pressure".

He added that the company would write to standard tariff customers in the next fortnight to outline alternative pricing plans.

Npower refused to comment on the letter.

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Mobile Owners 'Overpay By £5.4bn Annually'

UK mobile phone customers are collectively overpaying £5.4bn to mobile phone firms annually because they are on the wrong contract for their requirements, it has been claimed.

The consumer group Which? said firms must improve contract pricing transparency or risk being referred to the industry regulator, Ofcom.

It said customers are being charged for texts, minutes and data they do not use or are billed for extra charges because their phone package is too small.

The consumer group found 72% of mobile customers could save an average of £159 a year by switching to a contract which better suited their needs, while 77% could save at least £50 a year.

Which? executive director Richard Lloyd said: "It's shocking that consumers are overpaying by billions of pounds for mobile phone contracts that just don't suit their needs.

"Mobile phone companies must do more to help people get the best deal, making switching hassle-free and ensuring that pricing is transparent."

Research for Ofcom showed that 48% of mobile customers have never switched supplier.

A Which? poll for its Unlock Better Mobile Deals campaign found just 28% of people trust mobile phone services.

It wants providers to take voluntary action by unlocking handsets automatically for free, allowing customers greater control over their tariff.

The consumer group also suggests that companies should notify customers at least a month before the end of their contract and provide information on the best deals, with the monthly cost of the handset separated from the service charge.

Which? said some providers were already simplifying the billing and switching process but customers should shop around to ensure they get the best deals for them.

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BP Gulf Spill Fine Estimate Cut By Billions

BP is to face a maximum fine of $13.7bn (£9bn) under a US law after the Gulf of Mexico oil spill in 2010 was ruled smaller than the country's government had claimed.

The reduced bill, which was approximately $4bn less than the UK firm had been facing, was a result of a legal hearing which determined that 3.19 million barrels-worth of oil leaked following the Deepwater Horizon disaster in 2010.

The worst offshore spill in US history remains the subject of several legal cases but the decision helped BP's US-listed shares rise 1% in after-hours trading as investors breathed a sigh of relief.

That rise in value was also reflected on the FTSE 100 when trading began on Friday.

The ruling by federal magistrate Carl Barbier followed a previous finding in September that BP could be fined a statutory limit of up to $4,300 for each barrel spilled for gross negligence under Clean Water legislation.

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1. Gallery: BP Deepwater Horizon Oil Spill

   Fire boat response crews battle the blazing remnants of the off shore oil rig Deepwater Horizon in the Gulf of Mexico on April 21, 2010.

The oil drilling rig burned for 36 hours in the Gulf of Mexico and then sank.

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Amazon Tax Deal May Break State Aid Rules

Amazon's tax deal with Luxembourg may breach state aid rules, according to the findings of a preliminary investigation by the EU.

The inquiry was launched in October amid accusations the arrangement with the online retailer in 2003 allowed it to channel profits through the country in return for low tax rates, thus avoiding higher rates of tax in the EU nations where the profits were achieved - including Britain.

The probe has sparked searching questions of EU Commission president Jean Claude Juncker, who may be asked what he knew of the arrangements struck during his 19 years as prime minister of Luxembourg.

The EU's competition regulators said: "The Commission's preliminary view is that the tax ruling ... by Luxembourg in favour of Amazon constitutes state aid."

Amazon told Sky News that it has received "no special tax treatment from Luxembourg".

"We are subject to the same tax laws as other companies operating here," the statement said.

Luxembourg, which is facing a separate competition probe on its dealings with Fiat, is not the only EU nation feeling the heat on its tax dealings with multi-national firms.

Starbucks' relationship with the Netherlands and Ireland's arrangement with Apple are also being scrutinised.

Amazon is among global firms to have faced fierce criticism in the UK over its tax contribution.

In May 2014, it was revealed Amazon paid a UK corporation tax bill of £10m in its last financial year, despite sales in the country of £4.3bn.

Amazon.co.uk reported a 56% rise in profit to £17m in 2013.

Its statement to Sky News at the time of the publication of the results said it paid all applicable taxes in jurisdictions that it operates in.

It said: "Amazon EU serves tens of millions of customers and sellers throughout Europe from multiple consumer websites in a number of languages dispatching products to all 28 countries in the EU.

"We have a single European headquarters in Luxembourg with hundreds of employees to manage this complex operation."

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BP Due To Cut North Sea Jobs As Oil Costs Dive

BP is expected to tell its 3,500 North Sea oil staff today that some are to lose their jobs as its looks to save costs amid the plunging cost of oil.

Sky sources say 300 jobs are involved. BP is due to brief workers in Aberdeen today on its plans, which it had previously said would result in $1bn (£630m) of restructuring costs this year, 

BP is keen to ensure its business in the North Sea remains competitive and sustainable for the long term as Brent crude costs hover below $50 per barrel - down from $115 last June.

The company said on Wednesday: "It has been well signalled around the industry that costs have been rising and we need to respond to toughening market conditions in line with our competitors and move our cost structure into a competitive and sustainable position."

It was due to make its announcement 24 hours after the governor of the Bank of England, Mark Carney, warned that falling oil prices represented a "negative shock" for the Scottish economy - but a "net positive" for the UK as a whole, given benefits for consumers.

Shell and Tullow Oil are among other oil firms which have scaled back their investments.

Tullow reported on Wednesday that its gross annual profits were expected to fall by more than half on 2013 - and it was taking a writedown of $600m due to asset revisions.

It also raised the prospect of major job losses - warning that: "A major internal review of Tullow's organisation is ongoing which will lead to substantial long-term cost savings and efficiencies across the group."

Tullow added that it expected to announce the details at its full-year results on 11 February.

Its share price rose 3.2% in early trading when markets opened for business on Thursday while BP saw a 2.3% boost.

While mining and energy stocks generally recovered some ground following sharp falls on Wednesday, investors tend to like news of cost-savings because they protect profits.

Unions however warned of the potential for long-term damage to the country's energy capacity as a result of falling investment.

The RMT claimed tens of thousands of jobs were at stake.

Its general secretary, Mick Cash, said: "In the wake of the current price slump, RMT is demanding that Westminster and the Scottish Parliament adopt a crisis management approach to ensure sustained production, maintenance of infrastructure, retention of skills, and a robustly regulated regime in the future.

"If immediate action isn't taken then we risk turning today's crisis into longer term damage that would threaten the very core of our offshore industry.

"This is no time for playing politics when the security of UK energy supplies is on the line."

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