Rates 'May Return To Pre-Recession Levels'

Homeowners should expect interest rates to return to their pre-recession levels within a decade, the Deputy Governor of the Bank of England has warned.

Last week the Bank's Governor Mark Carney suggested that even once borrowing costs rise, the "new normal" for them to settle at would be around 2.5% - significantly lower than the long-term average of 4-5%.

But in an exclusive interview with Sky News Sir Charlie Bean, the Bank's longest-serving senior policy maker, said that this lower rate was only caused by a range of temporary factors.

Sir Charlie said that in the "long term", meaning beyond five or ten years, it could easily rise again towards 5% - the level traditionally considered "neutral".

"It might be reasonable to think that in that long term you would go back to 5% but it's probably quite a long way down the road," he said.

Sir Charlie's comments will be welcomed by savers who have suffered ever since the Bank lowered interest rates to just 0.5% five years ago.

However, they may also alarm millions of mortgage holders who may struggle to make their repayments.

The deputy governor, whose term comes to an end on Monday, also said that markets' expectations that the first increase in interest rates would come at the turn of the year seemed "reasonable".

He added: "The market has rates going up to 2.5% over the next three years. That seems like broadly sensible judgement."

Sir Charlie also admitted that in the run up to the crisis he, along with other economists, was "not sufficiently cognisant of the risks building up in the financial system".

However, he said that he was leaving the Bank in safe hands, and the economy far more resilient than when he arrived in 2000.

18.56 | 0 komentar | Read More

Parcelforce Starts Seven-Day Delivery Service

Parcelforce, the express parcels business of Royal Mail, will today become the first national parcels carrier in Britain to deliver on Sundays.

The business said it anticipates the new service will be of particular benefit to online shoppers.

Among the first retailers to sign up is the department store Fortnum and Mason.

Iain Anderson, director of communications agency Cicero Group, said the move was about Royal Mail "sharpening up its act".

He told Sky News: "This is all about parcels not letters and what Royal Mail really see as an opportunity to hold onto market share.

"There is a lot of competition and seven-day trading is about making sure they maintain and, if they can, grow their market share.

"The significance of this is that by 2017 the vast majority of revenues and profits are going to be coming from parcels.

"This is all about making sure they can continue that trajectory because the letters business, for all mail providers with the growth of email, is in long-term decline."

The Communication Workers Union said it had reached an agreement that Sunday working would be voluntary, while negotiations will be held on new shift patterns.

National officer Terry Pullinger said: "Talks with Parcelforce management established a very important principle as far as employment security is concerned and we are delighted that we have had an assurance that permanent employees will be used to deliver this new exciting innovation to customers."

18.56 | 0 komentar | Read More

All Staff Get Rights To Work From Home

By Emma Birchley, Sky News correspondent

The right to request flexible working arrangements is about to be extended to apply to all staff and not just parents and carers.

From Monday, workers who have been in their job for six months will be able to ask for flexitime, to job share or to work from home.

The change will extend flexible working rights to around 20 million people.

Many businesses who already offer it say it increases staff motivation and productivity and reduces absence.

Workers may be able to avoid painful commutes to work

It has been an option for all employees at the small advertising agency Osbornenash in Norwich since they set up three years ago - and it has paid off.

Managing director Carole Osborne said: "For us as a business it has helped because we want to be able to recruit the best staff that we possibly can ... it's important that we are flexible around their lives and then also that they can be flexible around what we as a business offer our clients."

The company's senior art director, Neil Wright, has two young daughters and is able to change his hours to suit his family life.

"Obviously family is important to everyone particularly having two children and my wife also works full time," he said.

"It's very valuable to be able to balance life and work equally."

The team at Osbornenash support flexi hours

But employment lawyer Fraser Younson, a partner at Squire Patton Boggs, fears it could leave bosses with tough decisions about whose request to prioritise.

Flexibility will not be an option for all businesses and there are various grounds on which they can reject an application.

Christopher Soule, from the Federation of Small Businesses, said that one reason might be if the request worked out as too expensive for the employee's company.

But Mr Soule believes that many companies will embrace the opportunities.

"About 70% of our members already do some kind of flexible working," he said.

"It will make people think about whether it will help their business and improve their business and improve their staff relations."

Workers will have the right to appeal if the decision does not go their way and apply again 12 months later.

18.56 | 0 komentar | Read More

888poker Cancels Suarez Sponsorship Deal

Luis Suarez: A Huge Talent But Trouble

Updated: 6:06am UK, Friday 27 June 2014

By Paul Kelso, Sports Correspondent, in Rio de Janeiro

To his countrymen, Luis Suarez is an unambiguous character.

He is the boy from an impoverished quarter of Salto who became a hero; a natural who plays with the ferocious pride and raw spirit that embodies the national self-image.

You do not have to be Uruguayan to admire his luminous talent. Watching him score the goals that eliminated England in Sao Paulo last week it was impossible not to admire the certainty of his play, the single-minded ability not just to try but to deliver.

But it is equally hard to ignore his recidivist, violent streak, and nor should we try.

Uruguay has rushed to his defence this week, but none of the conspiracies or indulgences offered by his countrymen can sweeten Suarez's offences.

Three times on a professional football field he has bitten an opponent. It is conduct we train out of pets and children, assuming that adult humans do not need to be reminded.

Who knows where it comes from. An army of experts have had their say in the last few days, offering explanations ranging from the Freudian to the footballing.

For everyone, save Suarez, the answer is largely irrelevant. What matters for his club and country is what happens next.

For Liverpool it is a pressing question. The club and its fans love Suarez but they have good reason to feel let down.

They backed him ham-fistedly through the Patrice Evra racism storm, and then with far more assurance and self-awareness following his assault on Branislav Ivanovic.

Last season they seemed to get a return on that pastoral care. Suarez was focused and fabulous, his goals fully deserving a clean sweep of player of the year awards from his fellow pros and the journalists his teammates now accuse of conspiring, and supporters groups.

Anfield fully expected to return to the barricades for Suarez this summer, but they anticipated the attack would come from Real Madrid and Barcelona, once more hunting his signature.

Instead, they will welcome back a player who will not be available until November and will attract only negative vibes in the meantime. Restoring trust on both sides will be a major challenge for manager Brendan Rogers.

There is perhaps only one group for whom Suarez's inexplicable conduct is good news.

It is not often that Fifa has been able to scale the moral high-ground in recent times but the swift, decisive judgment against Suarez offered them a chance they were not going to miss.

Fifa president Sepp Blatter resisted repeated invitations from Sky News to offer a word on Suarez's ban but the message of his silence was clear. The World Cup show has been a wow. Presented with a pantomime villain Fifa banished him to the wings.

For once, few will argue it was the right move.

18.56 | 0 komentar | Read More

Bitcoin Extortion Plot Targets Pizza Restaurants

Businesses are being served with 'notice of extortion' letters demanding bitcoins to avoid negative online reviews.

A number of US pizza restaurants have reported receiving the printed letters, which include a number of threats for non-payment of the demand.

As well as negative reviews on Yelp.com, the culprit threatens to carry out denial of service attacks on telephone lines and cause mercury contamination of food.

The letter reads: "Because many of the actions we take are catastrophic and irreversible, it is advised (to) pay ... before the deadline is reached."

Some of the threats were posted by business owners to the website Reddit.

Users suggested the attackers could be traced using a technique which makes it possible to identify the make and model of printer used to create the document.

The letters demand payment of one bitcoin, worth £339, within a month, after which the demand rises to three bitcoins.

In Grand Rapids, Michigan, pizza store owner Mike Raymond received a letter but refused to pay up.

He said: "At first, I'm looking at it and I'm thinking, 'Oh, it's one of my friends playing a joke on me.'"

When he realised it was a real threat, he decided not to pay.

"There are food costs and finance, labour and the rising cost of gas," he said.

"Do you really need to have somebody now threatening you with extortion?

"They're taking your lunch money and we're not going to let them."

18.56 | 0 komentar | Read More

Bulgaria Warning Over 'Organised Bank Attack'

Bulgaria's central bank has issued an unprecedented warning over an attempt to destabilise the country through an organised attack on the banking system.

It promised to do all it could to protect money held in accounts by Bulgarian citizens.

The bank issued a request for all state institutions to work collectively to protect financial stability.

It said legal action should be taken against those spreading "untrue and ill-intentioned rumours" about the health of the nation's banks.

The bank said in a statement: "In recent days there has been an attempt to destabilise the state through an organised attack against Bulgarian banks without any reason."

It added that the First Investment Bank had been a major target.

Shares in the bank on Friday morning were down a fifth, and the plunge came on top of a similar drop on Thursday.

A representative for First Investment Bank reassured investors and said it was in "excellent condition".

Last week, customers unnerved by reports of shady deals involving Corporate Commercial Bank - known as KTB - rushed to withdraw their deposits.

The run prompted the central bank to seize control of the lender and shut down its operations.

KTB, the country's fourth biggest bank, suffered a 20% drain on funds over six days and highlighted financial fragility in newer EU member states.

Tycoon Tzvetan Vassilev blamed media attacks and the country's prosecution service for sparking the run on his bank, which shareholders decided against rescuing.

It is now likely to be nationalised.

The ratio of non-performing loans in Bulgaria is expected to top 18% this year, as the economy continues to wallow from risky credit issued during a mid-2000 boom.

18.56 | 0 komentar | Read More

Zero-Hours Contracts Face New Controls

Plans to tackle abuses of zero-hours contracts by allowing people to work for more than one employer have been attacked as insufficient by unions.

The business secretary Vince Cable said the reforms, aimed at outlawing so-called exclusivity clauses, would tackle "unscrupulous" employers who had had been abusing the flexibility offered by zero-hours.

Unions and campaign groups have long demanded that the contracts, under which workers do not know if they have work from one week to the next, should be banned but Mr Cable told Sky News they have a place, provided they are "fair".

He said: "It has become clear that some unscrupulous employers abuse the flexibility that these contracts offer to the detriment of their workers.

"Today, we are legislating to clamp down on abuses to ensure people get a fair deal.

"Last December, I launched a consultation into this issue. Following overwhelming evidence we are now banning the use of exclusivity in zero-hours contracts and committing to increase the availability of information for employees on these contracts.

"We will also work with unions and business to develop a best practice code of conduct aimed at employers who wish to use zero-hours contracts as part of their workforce".

The Government said the ban would benefit 125,000 zero-hours contract workers estimated to be tied to an exclusivity clause and allow workers to look for additional work to boost their income.

Frances O'Grady wants measures to guarantee incomes

While the move was largely welcomed by business lobby groups, Labour suggested that ministers had allowed the controversial contracts to soar out of control.

Shadow business secretary Chuka Umunna said: "Under David Cameron's government we've seen a rising tide of insecurity.

Zero-hours contracts, which were once a niche and marginal concept, have become the norm in parts of our economy as families have been hit by the cost-of-living crisis.

"The Government has watered down people's rights at work and have failed to match Labour's plans to outlaw zero hours contracts where they exploit people.

"Labour will ensure that people at work get a fair deal and proper protections so they are not forced to be available around the clock, are paid if shifts are cancelled at short notice and are able to demand a full contract if, in practice, they are working regular hours".

TUC general secretary Frances O'Grady added: "The ban is welcome news but it's not nearly enough to really tackle the problem.

"A lack of certainty is the real issue. Far too many employees have no idea from one week to the next just how many hours they'll be working or more importantly how much money they'll earn.

"This makes managing households budgets stressful and organising childcare very difficult indeed.

"The one change that would really make a difference would be for employers to have to guarantee their staff a minimum number of paid hours each week".

But John Longworth, director general of the British Chambers of Commerce, argued: "Maintaining the UK's flexible labour market is crucial to keeping unemployment down.

"Zero-hours contracts are vital for a successful jobs market, but they must be fair and work for all parties".

18.56 | 0 komentar | Read More

Home Building Being Hit By Skills Shortage

By Becky Johnson, North of England Correspondent

A serious shortage of skilled construction workers is impacting on the industry's recovery.

Experts have told Sky News that thousands of workers need to be recruited and trained in order to meet intense demand for new housing.

A shortage of homes is among the factors fuelling rapidly rising house prices.

Last year just 108,190 houses were completed in England, fewer than half the 220,000 the Home Builders Federation says are needed to keep up with demand.

However, there currently aren't enough skilled workers. During the recession 390,000 workers left the industry according to the national training organisation, the CITB.

Fewer apprentices have joined the sector since 2008, resulting in an aging work force. A further 410,000 workers are due to retire in the next five years.

Mark Aldcroft, who manages a new build site near Stockport, told Sky News: "Definitely bricklaying and roofers, we're struggling to get an influx of them.

"Sometimes we can't get enough of the joinery industry because they're being pulled from pillar to post, various other contractors and house builders.

"Inevitably it does cause delays," he said.

Jay Culbert, who works as a labourer, said he has noticed fewer young people coming into the industry.

He told Sky News: "People have obviously steered away from it because they were unable to make a career in this when we suffered the recession.

"I think people have steered toward those jobs that require more thinking rather than obviously physical, manual labour."

Mike Bialyj from the CITB said there will "undoubtedly" be an impact on the housing sector.

He told Sky News: "One in 20 companies were forecasting that their business could be damaged or even irreparably damaged due to the skills shortage, so we really do need to make sure we fill the gap."

Tomorrow, the Bank of England Governor Mark Carney will outline his plans to take the heat out of the housing market.

It comes as research from charity Shelter shows that rising prices mean 80% of properties for sale in England are now unaffordable for the average working family.

In an exclusive interview with Sky News last month Mr Carney said: "The issue around the housing market in the UK … is there are not sufficient (numbers of) houses (being) built."

Asked if more houses need to be built, Mr Carney replied: "That would help us out."

18.56 | 0 komentar | Read More

Wonga Penalised £2.6m For 'Fake Legal Threats'

Britain's biggest payday lender, Wonga, has been ordered to pay £2.6m in compensation to customers threatened with bogus legal letters.

The Financial Conduct Authority (FCA) said 45,000 customers were hit by unfair and misleading debt collection practices, which included customers in arrears being sent letters by non-existent law firms threatening legal action.

In some instances, Wonga also added charges to customers' accounts to cover the administration fees associated with sending the letters, the FCA said.

The watchdog said the failings, which took place between October 2008 and November 2010, saw Wonga, and other companies within its group, pile pressure on customers to make loan repayments that many could not afford.

It uncovered communications to customers in arrears under the names "Chainey, D'Amato and Shannon" and "Barker and Lowe Legal Recoveries", leading customers to believe their outstanding debt had been passed to a law firm or other third party.

The FCA said neither Chainey D'Amato and Shannon nor Barker and Lowe existed.

Those affected will get at least £50 in compensation each

Clive Adamson, director of supervision at the FCA, said: "Wonga's misconduct was very serious because it had the effect of exacerbating an already difficult situation for customers in arrears.

"We are pleased that Wonga has been working with us to put matters right for its customers and to ensure that these historical practices are truly a thing of the past."

The company, which made nearly four million loans to over one million customers, has been ordered to pay compensation to each person affected by the failures.

The FCA said the compensation could result in some borrowers' outstanding debts being cut rather than a cash payment being made.

All 45,000 customers who were sent letters will be offered a flat rate of £50 for their distress and inconvenience.

On top of this, those who were charged fees, thought to total £400,000, for the fake legal letters will be refunded.

The FCA will ensure Wonga contacts every victim

The scandal is a huge PR blow to Wonga, a company that had consistently distanced itself from criticism of an industry repeatedly under fire over loan totals, advertising, repayment fees and poor treatment of customers.

Tim Weller, interim Wonga CEO following the departure of its founder Errol Damelin earlier this year, said: "We would like to apologise unreservedly to anyone affected by the historical debt collection activity and for any distress caused as a result.

"The practice was unacceptable and we voluntarily ceased it nearly four years ago."

Wonga added that it had identified "certain system errors" which had resulted in the miscalculation of some customers' balances, which meant some had overpaid, although a greater number underpaid.

The lender said existing customers who had overpaid would receive the money back with interest while the others would not be asked to pay the shortfall.

Martin Lewis, founder of the MoneySavingExpert.com website, said of the bogus legal letters: "This just shows that while Wonga hires expensive marketing, PR and public affairs consultants to try to position itself as 'the good guys in a bad industry', it's all a sham.

"I'm glad to see the FCA taking action. I hope this is just the first move against a dirty, dangerous industry."

On the question of whether Wonga could be taken to court by victims, Dean Nicholls, consultant at Gordon Dadds Solicitors told Sky News: "The hallmark of fraud is dishonesty. This was clearly dishonest, causing financial loss and distress to those affected.

"Although the affected individuals could seek redress through the court, in view of the seriousness of the misconduct the regulator has stepped in, to make sure those affected receive fair compensation."

18.56 | 0 komentar | Read More

Innocent Bottler Drinks To £1bn Buyout Deal

By Mark Kleinman, City Editor

The bottling group which works with well-known brands such as Innocent Drinks and Sunny D is preparing to kick off an auction that could value it at well over £1bn.

Sky News understands that shareholders in Refresco Gerber have hired JP Morgan, the investment bank, to oversee a so-called dual-track process that will examine the merits of a sale or stock market flotation.

Investors in the company include 3i, the British-based private equity group, which owns 20%, and an Icelandic consortium which abandoned a previous attempt to sell it during the global financial crisis in 2009.

Sources said on Tuesday that private equity firms such as Blackstone and Kohlberg Kravis Roberts were among the likely bidders for Refresco Gerber.

Both have invested in the sector before, with Blackstone among the bidders last year for GlaxoSmithKline's Lucozade and Ribena brands, which were eventually sold to the Japanese drinks group Suntory.

Refresco Gerber, which is based in Rotterdam, employs nearly 5,000 people including hundreds of UK-based staff.

Its operations across Europe include bottling contracts for brands such as Ocean Spray and Del Monte, and its retail customers, for which it produces own-label juices and other drinks, include Asda, J Sainsbury, Tesco and Waitrose.

Other shareholders in Refresco Gerber include Hanover Acceptances, an investment company owned by Manfred Gorvy, a South African-born financier. The Financial Times reported last month that he was unlikely to be willing to sell his stake in the company.

A deal valuing Refresco Gerber at more than £1bn including debt would yield a healthy return for 3i, which has improved its performance under Simon Borrows, who was parachuted in as chief executive two years ago.

In total, the company produces about 1.4 billion gallons (6.5 bilion litres) of juice and other drinks annually.

Refrescoe Gerber was formed from a merger last year of Gerber Emig and Refresco with the aim of creating a Continental powerhouse offering customers a full range of logistics services in addition to production and bottling.

A London flotation of the business remains a possibility although some bankers believe a sale is far more likely.

3i and JP Morgan both declined to comment.

18.56 | 0 komentar | Read More

Living Wage: 'National Scandal' Of Working Poor

The number of workers living in poverty is a "national scandal" and measures must be taken to pay people a better wage, according to a report.

Unless the Government makes a commitment to helping to increase pay to a living wage people will continue to rely on food banks and loans they cannot afford, the Living Wage Commission has said.

It recommends a number of ways of enabling firms to pay £8.80 an hour in London and £7.65 outside the capital – the amount it says is necessary to ensure a socially acceptable quality of life.

The current minimum wage is £6.31 an hour.

Commission chairman Archbishop of York John Sentamu, said: "Working and still living in poverty is a national scandal. For the first time, the majority of people in poverty in the UK are now in working households.

"The campaign for a Living Wage has been a beacon of hope for the millions of workers on low wages struggling to make ends meet. If the Government now commits to making this hope a reality, we can take a major step towards ending the strain on all of our consciences. Low wages equals living in poverty."

It has suggested higher taxes and reduced in-work benefits in private firms could be used to increase the pay of half a million public sector workers.

The commission said the Government needed to set a goal for the voluntary take up of the living wage to encourage firms to increase pay.

Dr Adam Marshall, director of policy and external affairs at the British Chambers of Commerce, said: "Some businesses simply cannot afford to pay a living wage just yet - which is why the Commission rejected a compulsory living wage.

"The task now is to support as many employers as possible to make this transition, because paying the living wage can benefit employers as well as their staff."

Unions have cautioned that despite signs of economic recovery, wages are still lagging behind the increase in the cost of living.

Business Secretary Vince Cable warned that if were firms to pay the living wage it could affect the number of jobs on offer and that Government tax cuts had helped make people better off.

He said: "The only real way of achieving sustainable increases in living standards is by focusing on economic growth, employment and reducing taxes for the low paid. This is exactly what we are doing."

18.56 | 0 komentar | Read More

Bank Of England Governor Tempers Rate Rise

The governor of the Bank of England has tempered his thoughts on a base rate rise coming sooner rather than later.

Mark Carney told the Treasury Select Committee (TSC) that there is additional spare capacity in the UK labour market that can be absorbed before the rate, used as a benchmark for home loans and saving, is increased.

Mr Carney stressed that the timing of any rate rise is not as important as the fact any increase in the base rate will be "limited and gradual".

The pound strengthened on foreign currency markets, up against both the dollar and euro in late morning trades.

He also stressed the importance of real wage growth to the recovery, saying "wage data is still softer than expected".

Mr Carney said the latest data is giving the impression that a pick up in earnings growth could be imminent.

He told the committee that he expects the base rate, in five years' time, to be "materially below" the historic average of 5%. It currently sits at an historic low of 0.5%.

TSC member and Labour MP Pat McFadden said the bank's shifting position on rates was like an "unreliable boyfriend - one day hot, one day cold".

In recent days Mr Carney has hinted that a rate rise may occur in coming months. Many analysts expected a rise before the end of 2014.

Deputy governor Charlie Bean also told MPs that all of the bank's Monetary Policy Committee members were struck by the markets' high degree of certainty before June 12's Mansion House speeches, where hints on a rise were given.

Mr Carney's TSC comments come as new figures have been released showing the impact of the Mortgage Market Review rules start to bite.

The sector most affected has been those trying to get a better deal with current providers or swapping to another lender for a more competitive rate.

The number of homeowners re-mortgaging their properties has dropped 11% in a month, according to the British Bankers' Association (BBA).

It said approved re-mortgages in May reached 18,206, down 11% on April's figure of 20,448.

The BBA said in comparison, the number of house purchase mortgages remained virtually flat in May, at 41,757.

On Monday, big homebuilders and property management firms were hit as investors started to shift out of the sector, fearing a slowdown in construction.

18.56 | 0 komentar | Read More

Cashless High Street Ditches Notes And Coins

By Becky Johnson, North of England Correspondent

Shoppers will find their cash is worthless in one Manchester suburb as only cards will be accepted by stores on the high street.

As part of a social experiment, shops along fashionable Beech Road in Chorlton will only take payments on plastic.

It comes as research shows people are increasingly using cards instead of notes and coins.

Many of the shops, bars and restaurants on the road are independently owned.

Mary Paul, of the Beech Road traders' association, said: "Businesses can see the way things are going with more money being taken on cards across the board, so this is a very interesting glimpse into the future for all of us."

This month the British Retail Consortium (BRC) revealed cash use has fallen by 14% in the last five years.

Card use is increasing rapidly, with debit cards currently being used for 32% of transactions compared to 30% last year.

Some experts predict physical currency will cease to exist within 20 years.

Shops on Beech Road in Chorlton are trialling plastic-only payments

Helen Dickinson, director general of the BRC, said: "Customers are taking advantage of new ways to shop and pay. The availability of contactless cards, handy express stores and self-service tills, as well as online sales, has increased the use of debit cards for smaller payments in place of cash."

Mark Latham, product and innovation director at Handepay, the card payment provider behind the idea to trial a cashless high street, added: "Britain is at the forefront of countries heading towards becoming cashless because the public are always eager to embrace new technology.

"Recent research showed most Londoners would welcome a cash-free society as they're so used to paying for everything with cards.

"There's now an expectation that card payment is available everywhere - it takes us aback as consumers if it isn't.

"Business owners love it too as it cuts down on queues, reduces lost sales and gives them more time to interact with their customers.

"All evidence shows consumers spend more too, as they're no longer limited to just the cash in their pockets."

18.56 | 0 komentar | Read More

TSB Shares Up 11% On First Day Of Trading

Shares in retail bank TSB jumped more than 11% in value after public trading in the Government-back lender started.

The list price of 260p was quickly up to more than 290p, 11.5%, within minutes of trades commencing at 8am.

In early afternoon trades on Friday the price had climbed further, to 294p, before easing back to 290p at the close.

The initial pricing of 260p, slightly above the mid-range estimate, valued the new retail bank at £1.3bn.

Lloyds Banking Group originally planned to offer 25% of TSB shares but upped the figure to 35% after keen interest was shown by investors.

A total of 175 million shares have now been offered to the public.

Lloyds is still 25%-owned by the British taxpayer after a multi-billion bailout in the financial crisis.

Lloyds chief executive Antonio Horta-Osorio said: "The successful initial public offering of TSB is an important further step for Lloyds Banking Group as we act to meet our commitments to the European Commission.

"The significant investor demand for shares in TSB, which reflects investors' confidence in the prospects for the business, has meant that we have been able to set the offer size at 35%.

"TSB has a national network of branches, a strong capital base, robust liquidity and significant economic protection against legacy issues."

EU regulators ordered to Lloyds to sell 631 branches in 2009 over competition concerns, and must now sell the remaining holding by the end of 2015.

The original buyer of the branches was to be the Co-op Bank, until a £1.5bn capital black hole was discovered in the mutual's books.

The share price range was initially set at between 220p and 290p, on June 9.

At the time, Lloyds said in a statement that the float would commence around June 24.

18.56 | 0 komentar | Read More

Ramada Owner Was £6bn InterContinental Suitor

By Mark Kleinman, City Editor

The owner of the Ramada hotel chain was the mystery suitor behind a recent £6bn takeover offer for the FTSE-100 hospitality provider InterContinental Hotels Group (IHG), Sky News can reveal.

Wyndham Worldwide Corporation, which is the world's biggest hotel operator with 7,500 sites, made a preliminary offer to acquire IHG in a deal that would have united leading industry brands such as Holiday Inn, Travelodge, Knights Inn and Crowne Plaza.

Sources said this weekend that Wyndham's initial approach to combine with IHG, which was made earlier this year, had been rebuffed and was no longer live, but suggested that it could subsequently be revived.

Wyndham is understood to have been examining a merger with IHG as a means of pursuing a so-called inversion, under which its tax domicile would have switched to the UK to take advantage of favourable corporate tax rates.

Such deals have become an important driver of trans-Atlantic mergers and acquisitions activity.

Pfizer recently failed with an attempt to buy its British rival AstraZeneca for roughly £70bn after provoking a hostile reaction from its target and Westminster politicians, who were angered that the offer was partly predicated upon tax benefits.

This week, Shire, a London-listed and Irish-headquartered pharmaceuticals group, rejected a £26bn offer from AbbVie, a US-based company which wants to use a deal to relocate its tax base.

Inversion have also sparked anger in the US, with several leading politicians vowing to pursue legislative measures to prevent American companies relocating overseas.

It is unclear how Wyndham, which has a market value of $9.5bn (£5.6bn) and is the world's biggest hotel group by number of properties, was proposing to structure an offer for IHG, which is valued at just under £6bn.

Sky News revealed in May that IHG's board had met to consider an approach from an unnamed suitor but rejected it on the grounds that it was too low.

The report prompted a shareholder in the UK-based group, Marcato Capital Management, to call for IHG to examine merger opportunities.

"We believe that a combination with a larger hotel operator would have compelling strategic and financial merit and represents a unique opportunity to reshape the global hospitality industry," it said.

"We strongly encourage InterContinental Hotels Group's board of directors to explore such a combination and engage advisers to conduct a formal process to ensure it evaluates the full range of opportunities available to maximise value."

Since then, IHG's management has shown little appetite to heed the request. Sources close to the company pointed to its recent strong performance as evidence that it had no need to seek a suitor.

The British group is chaired by Patrick Cescau, a former boss of Unilever, and run by Richard Solomons, who has pleased investors with a series of large capital returns.

These have been generated by the sale of many of its flagship hotel properties, including most recently sites in San Francisco and New York, as IHG shifts its business model to hotel management rather than ownership.

IHG still owns the LeGrand Paris and InterContinental Hong Kong, but is also expected to sell these properties and return hundreds of millions of pounds more to shareholders.

It has also been accelerating the expansion of its pipeline of new hotels, with 237 locations opened last year and 444 more added to its roster of future openings.

The company operates about 5% of the world's hotel rooms but has more than twice that volume of the industry's known slate of new rooms.

Last year, IHG reported pre-tax profits of £600m, a 10% rise on the previous year.

Its future growth will be driven by emerging markets, with Hualuxe, a premium brand aimed at Chinese customers, launched in 2012.

IHG declined to comment while Wyndham was unavailable.

18.56 | 0 komentar | Read More

TSB Shares Up 11% On First Day Of Trading

Shares in retail bank TSB jumped more than 11% in value after public trading in the Government-back lender started.

The list price of 260p was quickly up to more than 290p, 11.5%, within minutes of trades commencing at 8am.

In early afternoon trades on Friday the price had climbed further, to 294p, before easing back to 290p at the close.

The initial pricing of 260p, slightly above the mid-range estimate, valued the new retail bank at £1.3bn.

Lloyds Banking Group originally planned to offer 25% of TSB shares but upped the figure to 35% after keen interest was shown by investors.

A total of 175 million shares have now been offered to the public.

Lloyds is still 25%-owned by the British taxpayer after a multi-billion bailout in the financial crisis.

Lloyds chief executive Antonio Horta-Osorio said: "The successful initial public offering of TSB is an important further step for Lloyds Banking Group as we act to meet our commitments to the European Commission.

"The significant investor demand for shares in TSB, which reflects investors' confidence in the prospects for the business, has meant that we have been able to set the offer size at 35%.

"TSB has a national network of branches, a strong capital base, robust liquidity and significant economic protection against legacy issues."

EU regulators ordered to Lloyds to sell 631 branches in 2009 over competition concerns, and must now sell the remaining holding by the end of 2015.

The original buyer of the branches was to be the Co-op Bank, until a £1.5bn capital black hole was discovered in the mutual's books.

The share price range was initially set at between 220p and 290p, on June 9.

At the time, Lloyds said in a statement that the float would commence around June 24.

18.56 | 0 komentar | Read More

Cashless High Street Ditches Notes And Coins

By Becky Johnson, North of England Correspondent

Shoppers will find their cash is worthless in one Manchester suburb as only cards will be accepted by stores on the high street.

As part of a social experiment, shops along fashionable Beech Road in Chorlton will only take payments on plastic.

It comes as research shows people are increasingly using cards instead of notes and coins.

Many of the shops, bars and restaurants on the road are independently owned.

Mary Paul, of the Beech Road traders' association, said: "Businesses can see the way things are going with more money being taken on cards across the board, so this is a very interesting glimpse into the future for all of us."

This month the British Retail Consortium (BRC) revealed cash use has fallen by 14% in the last five years.

Card use is increasing rapidly, with debit cards currently being used for 32% of transactions compared to 30% last year.

Some experts predict physical currency will cease to exist within 20 years.

Shops on Beech Road in Chorlton are trialling plastic-only payments

Helen Dickinson, director general of the BRC, said: "Customers are taking advantage of new ways to shop and pay. The availability of contactless cards, handy express stores and self-service tills, as well as online sales, has increased the use of debit cards for smaller payments in place of cash."

Mark Latham, product and innovation director at Handepay, the card payment provider behind the idea to trial a cashless high street, added: "Britain is at the forefront of countries heading towards becoming cashless because the public are always eager to embrace new technology.

"Recent research showed most Londoners would welcome a cash-free society as they're so used to paying for everything with cards.

"There's now an expectation that card payment is available everywhere - it takes us aback as consumers if it isn't.

"Business owners love it too as it cuts down on queues, reduces lost sales and gives them more time to interact with their customers.

"All evidence shows consumers spend more too, as they're no longer limited to just the cash in their pockets."

18.56 | 0 komentar | Read More

Ramada Owner Was £6bn InterContinental Suitor

By Mark Kleinman, City Editor

The owner of the Ramada hotel chain was the mystery suitor behind a recent £6bn takeover offer for the FTSE-100 hospitality provider InterContinental Hotels Group (IHG), Sky News can reveal.

Wyndham Worldwide Corporation, which is the world's biggest hotel operator with 7,500 sites, made a preliminary offer to acquire IHG in a deal that would have united leading industry brands such as Holiday Inn, Travelodge, Knights Inn and Crowne Plaza.

Sources said this weekend that Wyndham's initial approach to combine with IHG, which was made earlier this year, had been rebuffed and was no longer live, but suggested that it could subsequently be revived.

Wyndham is understood to have been examining a merger with IHG as a means of pursuing a so-called inversion, under which its tax domicile would have switched to the UK to take advantage of favourable corporate tax rates.

Such deals have become an important driver of trans-Atlantic mergers and acquisitions activity.

Pfizer recently failed with an attempt to buy its British rival AstraZeneca for roughly £70bn after provoking a hostile reaction from its target and Westminster politicians, who were angered that the offer was partly predicated upon tax benefits.

This week, Shire, a London-listed and Irish-headquartered pharmaceuticals group, rejected a £26bn offer from AbbVie, a US-based company which wants to use a deal to relocate its tax base.

Inversion have also sparked anger in the US, with several leading politicians vowing to pursue legislative measures to prevent American companies relocating overseas.

It is unclear how Wyndham, which has a market value of $9.5bn (£5.6bn) and is the world's biggest hotel group by number of properties, was proposing to structure an offer for IHG, which is valued at just under £6bn.

Sky News revealed in May that IHG's board had met to consider an approach from an unnamed suitor but rejected it on the grounds that it was too low.

The report prompted a shareholder in the UK-based group, Marcato Capital Management, to call for IHG to examine merger opportunities.

"We believe that a combination with a larger hotel operator would have compelling strategic and financial merit and represents a unique opportunity to reshape the global hospitality industry," it said.

"We strongly encourage InterContinental Hotels Group's board of directors to explore such a combination and engage advisers to conduct a formal process to ensure it evaluates the full range of opportunities available to maximise value."

Since then, IHG's management has shown little appetite to heed the request. Sources close to the company pointed to its recent strong performance as evidence that it had no need to seek a suitor.

The British group is chaired by Patrick Cescau, a former boss of Unilever, and run by Richard Solomons, who has pleased investors with a series of large capital returns.

These have been generated by the sale of many of its flagship hotel properties, including most recently sites in San Francisco and New York, as IHG shifts its business model to hotel management rather than ownership.

IHG still owns the LeGrand Paris and InterContinental Hong Kong, but is also expected to sell these properties and return hundreds of millions of pounds more to shareholders.

It has also been accelerating the expansion of its pipeline of new hotels, with 237 locations opened last year and 444 more added to its roster of future openings.

The company operates about 5% of the world's hotel rooms but has more than twice that volume of the industry's known slate of new rooms.

Last year, IHG reported pre-tax profits of £600m, a 10% rise on the previous year.

Its future growth will be driven by emerging markets, with Hualuxe, a premium brand aimed at Chinese customers, launched in 2012.

IHG declined to comment while Wyndham was unavailable.

18.56 | 0 komentar | Read More

TSB Shares Up 11% On First Day Of Trading

Shares in retail bank TSB jumped more than 11% in value after public trading in the Government-back lender started.

The list price of 260p was quickly up to more than 290p, 11.5%, within minutes of trades commencing at 8am.

The initial pricing of 260p, slightly above the mid-range estimate, valued the new retail bank at £1.3bn.

Lloyds Banking Group originally planned to offer 25% of TSB shares but upped the figure to 35% after keen interest was shown by investors.

A total of 175 million shares have now been offered to the public.

Lloyds is still 25%-owned by the British taxpayer after a multi-billion bailout in the financial crisis.

Lloyds chief executive Antonio Horta-Osorio said: "The successful initial public offering of TSB is an important further step for Lloyds Banking Group as we act to meet our commitments to the European Commission.

"The significant investor demand for shares in TSB, which reflects investors' confidence in the prospects for the business, has meant that we have been able to set the offer size at 35%.

"TSB has a national network of branches, a strong capital base, robust liquidity and significant economic protection against legacy issues."

EU regulators ordered to Lloyds to sell 631 branches in 2009 over competition concerns, and must now sell the remaining holding by the end of 2015.

The original buyer of the branches was to be the Co-op Bank, until a £1.5bn capital black hole was discovered in the mutual's books.

The share price range was initially set at between 220p and 290p, on June 9.

At the time, Lloyds said in a statement that the float would commence around June 24.

18.56 | 0 komentar | Read More

Netto's Sainsbury Deal Takes On Aldi And Lidl

Sainsbury's is to take on cut-price retailers Aldi and Lidl in a tie-up with Denmark's Netto chain.

Netto is making a return to the UK market in a trial format that appears to mirror the discount store concept used by the German rivals.

A computer generated image suggests the new Netto concept will use similar mid-size outlets, rather than larger properties.

The trial will consist of 15 Netto stores that will be opened by the end of 2015, with the first outlets opened in the north of England later this year.

If successful, a country-wide rollout will take place.

The Danish brand exited the UK market in 2010, however since then the ultra-competitive supermarket sector has seen a dramatic rise in budget-end profitability.

According to IGD, the UK discount sector is worth £10bn and expected to rise to £20bn within five years.

Netto is owned by Dansk Supermarked. Sainsbury's and Dansk are to plough a split-share of £25m into the project.

Each expects to incur a loss of around £7.5m up to March 2015 on the investment.

Dansk CEO Per Bank said: "It's great to be bringing a new twist to the rapidly growing UK discount sector.

"We'll offer market-leading value to customers with the freshness and innovation that customers rightly associate with Denmark."

Sainsbury's CEO designate Mike Coupe added: "We are very excited about helping to bring the new Netto to British shoppers.

"This joint venture provides a great opportunity for us to gain exposure to the high growth discount market for the first time in partnership with Dansk Supermarked, whose expertise and values are a strong complement to our own.

"If successful, this trial has the potential to open up a new long term growth opportunity for us complementing our fast expanding convenience, online and non-food businesses, as well as our existing supermarket estate."

18.56 | 0 komentar | Read More

TNT Plan 'Cuts £200m From Royal Mail Revenue'

Royal Mail has warned that delivery plans by rival TNT could reduce its revenue by £200m in coming years.

It said TNT Post UK's expansion strategy would cost it £200m in the 2017/18 financial year.

It told regulator Ofcom that "absent intevention" would risk damaging its ability to reach a pre-tax profit margin of 5% to 10%.

Direct deliveries from rivals undermine the universal service because of "cherry picking", according to the Royal Mail, because they were not bound by similar stringent requirements.

In the formal submission to Ofcom, Royal Mail requested an immediate review of direct delivery in Britain.

It also asked the watchdog to impose any necessary regulatory changes to safeguard the universal service to households and businesses.

The submission to the regulator follows on from previous statements made by Royal Mail.

It says it is already trying to manage an annual decline in letter volumes of around 5%.

TNT has grown local market share of 14% in areas of operation and plans to cover 42% of UK addresses by 2017, the submission said.

The iconic red delivery service was privatised last autumn and the Government maintains a 30% stake.

An Ofcom spokesperson said: "We will consider the report Royal Mail has given us carefully.

"Protecting the universal service is at the heart of Ofcom's work, and our current evidence clearly shows that the service is not currently under threat.

"We would assess any emerging threat to the service quickly, in the interests of postal users."

In response, Communication Workers Union deputy general secretary Dave Ward said: "Ofcom's primary duty is to protect the universal service which allows us to send a letter to Belfast, Bristol or Brighton all for the same price.

"If Ofcom does not carry out an immediate review of the impact of direct delivery on universal service, it will have failed in its duty."

18.56 | 0 komentar | Read More

Virgin Trains To Boost West Coast Mainline

Virgin Trains has promised to boost rail service on the West Coast mainline network, after winning an extension to its franchise.

It said "significant improvements" would be brought in as part of the franchise continuation until March 2017.

The increases will include conversion of first class to standard seating, free super-fast Wi-Fi and new services.

Virgin previously lost the franchise to FirstGroup as part of a new 13-year West Coast contract.

However the award process was stopped by the Department for Transport (DfT) over irregularities in the bidding process.

The decision allowed Virgin to run the line on a temporary basis until November.

Virgin is to pay £430m to the Government during the new extended contact, at a rate of £155.3m a year.

That is a 58% increase on the £98.1m a year paid in the temporary contract.

The West Coast service carries more than 30 million passengers a year between London, the West Midlands, Greater Manchester, Merseyside, Strathclyde and Lothian.

The operator said 21 trains would have a first class carriage reconfigured to standard class, boosting seating capacity by 2,100 per day.

It also plans to launch a direct services between Shrewsbury, Blackpool and London before Christmas.

The Office of Rail Regulation has previously rejected an application by Virgin to run additional services because of limited capacity.

Virgin will fit 76 of its Pendolino and Super Voyager trains with 4G superfast Wi-Fi.

Transport Secretary Patrick McLoughlin said: "This deal will provide thousands more seats and better journeys for the tens of thousands of passengers who use these services every day.

"The West Coast provides a vital artery between London and Scotland and it is crucial we do everything we can to improve services on this much-used route."

Virgin Trains executive chairman Patrick McCall added: "We're delighted to have reached a deal after some tough negotiations with the DfT.

"It puts the problems of 2012 firmly behind us, and shows the clear benefits of a well-run franchise system."

18.56 | 0 komentar | Read More

Npower Risks Telesales Ban Over Billing Woes

By Poppy Trowbridge, Consumer Affairs Correspondent

The energy regulator has given 'big six' supplier nPower until August to remedy "major billing issues" amid a threat of massive penalties over customer service failings.

Ofgem said nPower will be required to publish monthly progress updates until the problems are resolved.

The watchdog also announced it has launched an investigation into nPower's customer service failings.

It said that if it was found to have broken rules on customer service it risks fines of up to £300m - 10% of its sales - as a result.

It is the first case opened under the regulators' new standards of conduct and could lead to a financial penalty or redress payment if they are found to have broken rules.

With about 15% of the market, nPower has struggled with its billing system for the past year.

Many customers have been left not knowing what they owed and when as delays in billing mounted.

Npower has topped the 'big six' complaints table every quarter since the end of 2012, amid promises to improve service.

Ofgem senior partner in charge of enforcement Sarah Harrison said: "Ofgem has been monitoring nPower's service closely and we have been increasingly concerned about the slow progress to tackle failings.

"Npower's recovery plan has not delivered as far and fast as is necessary.

"Our analysis of complaints data also raises some serious concerns which will be thoroughly examined in our investigation."

In December, nPower was fined £1m by Ofgem and banned from door-to-door selling.

Since then the energy giant has halved the number of billing problems, according to Ofgem.

In response to the Ofgem decision, nPower chief executive Paul Massara said: "We are committed to getting things right for our customers but recognise that despite the progress we have made our current billing standards have fallen short of where everyone wants them to be.

"We are happy to provide the assurances agreed with Ofgem, with whom we share the same objective of getting our customer service to where it needs to be.

"We will cooperate with Ofgem on the investigation they have announced.

Mr Massara added: "We are confident that the measures we are already taking and the additional resource announced today will bring our customer service back to normal levels of performance by the end of August.

"If we have not met this late bill target by then, we will suspend all outbound telesales activity to new customers and not sell additional fuels to existing single fuel customers until we do."

18.56 | 0 komentar | Read More

Home Loan 'Slowdown' As New Rules Take Effect

There has been a "slowdown" in new home loan advances because of increased lender scrutiny, according to the Council of Mortgage Lenders (CML).

It said gross mortgage lending held steady in May at an estimated £16.5bn - identical to April's lending figure.

It was, however, 12% up on the figure recorded in May last year.

Tighter rules governing mortgages were initiated in late April, known as the Mortgage Market Review (MMR).

The new rules were designed to make sure borrowers had the capability to meet repayments if interest rates rise in the future.

CML chief economist Bob Pannell said: "Market indicators point to a slowdown in activity levels, in part associated with new mortgage rules, but it is unclear how lasting this will be.

"Implementation of the new regulatory regime is likely to have disrupted the normal patterns of activity, creating statistical 'fog' around the published figures.

"As this lifts over the coming months, a clearer picture as to any lasting impact of the MMR rules on lending activity should emerge."

MMR guidelines have seen prospective borrowers quizzed by lenders over their monthly outgoing expenditure.

Questions have covered gym membership fees, how much is spent monthly on toiletries, and the ratio of fresh produce to non-perishable food items.

Some applicants have spent more than seven hours on the telephone answering questions as part of the process.

The CML covers around 95% of lenders operating in Britain and it records mortgage advances.

A mortgage approval is the firm offer to a customer of a specific amount of credit secured against a particular property, whereas  mortgage advances are the total amount of a loan actually provided to the buyer, by the lender.

Expectations have risen recently that the Bank of England will raise the base rate, currently at an historic low of 0.5%, gradually this year.

18.56 | 0 komentar | Read More

Nokia 'Blackmailed For Millions Of Euros'

Nokia paid several million euros to criminals who threatened to sabotage its smartphone operating system, it has been reported.

It was claimed in a local TV report that the Finnish phone giant left the cash in a car park for the blackmailers to collect – as police looked on.

But the crooks managed to slip the police tail after picking up the money, and are still at large.

Detective Chief Inspector Tero Haapala, from Finland's police service, confirmed the force was investigating a case of alleged blackmail.

The Nokia N97 running the Symbian software in 2008

He said: "We are investigating felony blackmail, with Nokia the injured party."

The TV report claimed that hackers managed to get hold of the security encryption key for a key part of Nokia's Symbian software, and threatened to make it public.

If the hackers had done so, anyone could have written additional code for Symbian, including possible malware.

Nokia contacted police before agreeing to deliver the cash to a car park in Tampere, central Finland.

After the money was picked up, police lost track of the culprits.

The blackmail attempt happened in 2008, but has only just been revealed.

Nokia later moved to Microsoft's Windows software in its smartphones, and its phone arm has since been sold to the software giant.

18.56 | 0 komentar | Read More

MPs Warn Of 'Taxpayer Risks' From Help To Buy

The Government has dismissed a study by MPs which found the first part of its Help to Buy scheme poses a long-term risk to the taxpayer.

The Public Accounts Committee (PAC) said the policy - under which Government equity loans finance as much as 20% of the purchase price of homes worth up to £600,000 - risks creating a £10bn portfolio that will impose a "heavy administrative burden" for decades.

While the spending watchdog said the scheme was introduced smoothly and had helped 13,000 home buyers within nine months of its creation, it accused the Department for Communities and Local Government (DCLG) of violating Treasury guidelines by failing to carry out any assessment of alternative options.

Committee chair, Labour's Margaret Hodge said: "This means it has committed to spending up to £10bn on supporting Help to Buy without establishing whether it represents the most effective way of using taxpayers' money to achieve its objectives.

Thousands of people have used Help to Buy to get on the property ladder

"The department will not carry out a comprehensive evaluation of the scheme until 2015, by which time billions of pounds will already have been spent.

"That evaluation needs to ask three things: whether more people purchased properties than would have done without the scheme; whether builders built more houses than they would have built otherwise; and what effect the scheme could be having on house prices."

The PAC urged DCLG to assess the scheme's effectiveness in regional and local markets - finding that while it had proved popular in northern England and parts of the Midlands it had little impact in the South East and London where demand for property was at its highest.

Responding to the findings, housing minister Kris Hopkins insisted it was supporting the economy.

He said: "The Government completely rejects this report which sacrifices thorough analysis of Help to Buy in favour of a grandstanding headline.

"The Help to Buy equity loan scheme is building more homes and supporting the economy - in fact we estimate the wider economic benefits could be as much as £1.8bn.

"It is also offering excellent value for money for taxpayers' and to suggest otherwise and try and use the scheme to score cheap political points is absurd.

"Since the scheme's launch, house building is up a third and now at its highest level since 2007. And over 27,000 people across the country have used Help to Buy to get on the property ladder with a fraction of the deposit they would normally require, with cities including Leeds, Durham and Manchester seeing some of the biggest numbers of sales."

Labour housing spokeswoman Emma Reynolds said: "The report from the Public Accounts Committee raises concerns that the Government has not fully assessed value for money or how many new homes will be built as a result of this scheme.

"For such a significant investment, it is shocking that so little assessment has been made of the impact.

"With the number of homes being built at the lowest level in peacetime since the 1920s, it's clear that this Government isn't up to the job of tackling the housing shortage."

18.56 | 0 komentar | Read More

Zoopla Valued At £919m As Flotation Starts

Property website Zoopla had a market value of £919m following its share sale.

The firm - majority owned by Daily Mail And General Trust - said ahead of conditional trading that shares would be priced at 220p each in the Initial Public Offering (IPO).

That offer was in the lower half of the range it had previously announced of between 200 and 250p and represented 38.3% of the company's issued share capital.

No new shares were being issued and the offer was only open to financial institutions, such as banks and pension funds, alongside estate agents and developers.

Zoopla was founded by Alex Chesterman

Conditional trading began on the London Stock Exchange at 0800 BST and shares rose 5% in early dealing.

Alex Chesterman - the founder and chief executive of Zoopla - said: "We are delighted with our successful listing."

"We have received a significant level of institutional investor support in our business which once again underlines the growth potential of Zoopla Property Group."

It had initially been predicted that the sale could have valued the company at more than £1bn - a mark that attracted plenty of attention - though the decision to go for a price in the lower half of the range was seen as a cautionary nod towards rocky rides for other recent IPOs.

Zoopla, which is the UK's second-largest property website with 40 million monthly users, launched in 2008 and the bulk of its revenues come from estate agency fees.

Analysts have pointed to a potential for earnings growth at Zoopla as it currently rakes in less cash per transaction that its bigger rival, Rightmove.

But both websites are facing a potential threat from a new rival - backed by estate agencies.

More than 500 estate agents joined forces in February, planning to combat what they said was an "anti-competitive duopoly".

Agents' Mutual claim Rightmove and Zoopla keep putting their prices up and reaping huge profits against those made by small estate agents.

18.56 | 0 komentar | Read More

EU Gas Fears As Russia Cuts Ukraine Supply

Russia has stopped gas supplies to Ukraine after it missed a bill payment deadline, prompting fears European Union imports will be hit.

State-owned Gazprom said Ukraine's Naftogaz had failed to pay the $1.9bn of its $4.5bn (£2.7bn) debt by the 0600 GMT (0700 BST) deadline set by Moscow and, as a result, the company would have to pay up front for its gas in future.

It also suggested deliveries for June remained uncovered.

Gazprom said: "Today, from 10:00am Moscow time, Gazprom, according to the existing contract, moved Naftogaz to prepayment for gas supplies.

"Starting today, the Ukrainian company will only get the Russian gas it has paid for," it said.

Major gas pipelines to Europe pass through Ukraine

A source at Gazprom was quoted by the news agency Reuters as saying that it had now "restricted" supplies while the company filed a lawsuit in Stockholm demanding immediate payment of the full amount.

The EU gets about one third of its gas from Russia and around half of that comes through pipelines that cross Ukraine.

Gazprom said supplies for the EU were still being sent through the country despite the dispute.

Naftogaz boss Andriy Kobolev has failed to agree terms with Russia

"The gas for European consumers is being delivered at full volume and Naftogaz Ukraine is required to transit it," Gazprom spokesman Sergei Kupriyanov told reporters.

The developments follow the failure of EU-sponsored talks in Kiev aimed at reaching a settlement between Russia and Ukraine.

The European Commission said it was "convinced" a solution to the bitter dispute was possible, averting a deepening of the wider crisis over Ukraine's future that has seen East/West relations deteriorate to levels not seen since the Cold War.

The EU had proposed a compromise package requiring Ukraine to pay $1bn immediately with the balance settled through six additional payments by the year's end.

Alexei Miller, Gazprom's chief executive, accused Kiev of adopting an "unconstructive" position at the talks and of using blackmail to try to get an "ultra-low" price.

The EU said it would try to get both sides together again for talks later this month, warning that a lack of a deal could have an impact on European supplies heading into the winter months.

18.56 | 0 komentar | Read More

London Property Prices Falling Says Rightmove

Rightmove has claimed that asking prices in London have fallen this month as concerns over the affordability of homes in the capital deepen and more properties are put up for sale.

The property website declared that the market has come "off the boil", citing tougher mortgage rules and the prospect of rising interest rates alongside a 23% jump in the number of homes on the market.

London has been a particular concern among policymakers for the past year - with buyers forced to enter bidding wars for houses in a market lacking supply - conditions which have tipped purchasers into borrowing even more.

It was concern about loan-to-income ratios which prompted the Chancellor to agree new powers for the Bank of England to cap mortgages last week to help avoid the prospect of another market bust.

But Rightmove's report followed other recent studies which found evidence of cooling conditions.

Mark Carney has warned rates may rise earlier than the market expects

It said that asking prices across England and Wales were at a "virtual standstill", rising by just 0.1% or £272 on the previous month to reach £272,275 on average.

While London recorded a 0.5% monthly decrease in asking prices, Rightmove said they were still up by 14.5% compared with June 2013 to now stand at an average £589,776.

The North West saw the sharpest month-on-month fall in asking prices, with a 1.8% slide.

Miles Shipside, director of Rightmove, said of the London market: "Some sellers will be looking to cash in and possibly get a lot more house for their money further out, but they may have missed the peak in the rush to realise their gains as parts of London appear to have hit the upper limit price buffer."

Mr Shipside said that while there has generally been a jump in property supply across the country, estate agents' stock levels are still "well below" those seen last year.

Rightmove said that, in addition to more houses on the market, stricter mortgage lending rules which came into force in April had already hit demand.

The rules mean that lenders have to question mortgage applicants in more detail about their spending habits, to make sure their home loan would be affordable, both now and when interest rates start to rise.

The governor of the Bank of England, Mark Carney, warned last week that the base rate - set by the bank's Monetary Policy Committee - could rise earlier than the market expects.

18.56 | 0 komentar | Read More

FCA Fines Pair £3.8m For Misleading Investors

Credit Suisse and Yorkshire Building Society have been ordered to pay fines totalling almost £4m for promising unrealistic returns in an investment scheme.

The Financial Conduct Authority (FCA) said the marketing for the product - known as Cliquet - targeted investors with a limited knowledge of financial markets who paid in £797m.

It ordered Credit Suisse International (CSI) to pay £2.4m while Yorkshire Building Society (YBS), which distributed the product on Credit Suisse's behalf, was told to hand over £1.4m.

The FCA said it was the first time it had fined the producer and distributor of a product at the same time.

The watchdog's remit is to prevent mis-selling in the wake of several high profile scandals to hit the financial services industry, including payment protection insurance and interest-rate swaps.

Its director of enforcement, Tracey McDermott, said: "These promotions were a serious breach of the requirement to be clear, fair and not misleading.

"CSI and YBS knew that the chances of receiving the maximum return were close to zero but they nevertheless highlighted this as a key promotional feature of the product.

"This was unacceptable", she concluded.

The FCA said both firms are to contact customers who bought the product between November 2009 and June 2012 to offer the chance of exiting it without penalty and, where applicable, receive an interest payment.

18.56 | 0 komentar | Read More

Interest Rate Rise 'Signals End Of Crisis'

George Osborne Acts To Curb Housing Bubble

Updated: 1:25am UK, Friday 13 June 2014

By Jon Craig, Chief Political Correspondent

Barely a few minutes into his Mansion House speech, George Osborne said: "So while I know this is my fifth speech to you as Chancellor, I hope it is not my last."

I'll bet he does!

But whether he's back this time next year addressing the bankers and City money men and women, or listening to Ed Balls make it, could depend on the success or not of the measures he announced in this year's speech.

He wouldn't admit it. But the Chancellor now appears to accept that the threat of a "housing bubble" in London and some other parts of the country is a potential problem.

He doesn't want interest rates to rise before next year's general election to curb house price inflation. We know that from no lesser source than Her Majesty the Queen last week.

"To strengthen the economy and provide stability and security, my ministers will continue to reduce the country's deficit, helping to ensure that mortgage and interest rates remain low," she said right at the outset of her speech at the State Opening of Parliament.

So instead, the Chancellor plans to give the Bank of England powers to curb big mortgages being offered to people who can't afford the repayments.

Excuse me, though. Aren't many of the big lenders doing that already? Some lenders are limiting loans to four times salary and scrapping loans of more than £500,000. There has been a clampdown on interest-only mortgages too.

But the price of an average house rose by £223 a day last month and by 16% over the past year. It's not as if Mr Osborne hasn't been warned.

For months, the Liberal Democrat Business Secretary Vince Cable has been warning about a "housing bubble". But until now he has been slapped down by the Tory Chancellor.

Not any more. Mr Osborne told his City audience: "If London prices were to continue growing at these rates that would be too fast for comfort."

In other words, the Chancellor now recognises what critics of his Help to Buy scheme have been telling him: there is a problem in the capital, particularly, and elsewhere.

It doesn't take a genius to work out why: demand massively outstrips supply. So Mr Osborne is proposing to relax planning laws on so-called "brownfield sites", while protecting the green belt in those Tory constituencies in the shires.

Relaxing planning laws? How many times have we heard that before from senior Conservative politicians? The "Nimbys" in the leafier parts of Britain have other ideas.

To tackle the supply and demand problem in the capital, the Chancellor is promising "new housing zones across London backed by new infrastructure". Thousands of new homes for London families is the promise. We've heard a lot about that before, too.

No wonder Ed Balls MP, Labour's Shadow Chancellor, said: "George Osborne is still failing to tackle the root cause of the housing crisis which is that we are not building enough homes to match rising demand.

"And the danger of the Chancellor's failure to act on housing supply is that we see a premature rise in interest rates to rein in the housing market which ends up hitting millions of families and businesses."

A rise in interest rates before the election? No chance, Mr Balls.

But despite Mr Osborne's attempts to cool the housing market to avoid a rate rise before voters go to the polls in May 2015, I predict the so-called "housing bubble" will lead to interest rates going up after the election.

Whoever it is delivering the Mansion House speech this time next year.

18.57 | 0 komentar | Read More

Carney Boosts Lloyds Plan For £1.3bn TSB Float

By Mark Kleinman, City Editor

The state-backed Lloyds Banking Group is this weekend considering increasing the price at which it sells shares in TSB, its high street subsidiary, amid strong demand from investors.

Sky News has learnt that Lloyds could announce early next week that it is revising the 220p-290p range for the flotation of TSB by raising the bottom end to approximately 240p.

Investment banking sources said Lloyds would make a decision after consulting its advisers during the next couple of days.

One insider said that the Mansion House address by Mark Carney, Governor of the Bank of England, had bolstered sentiment among City investors for TSB shares, with further interest registered on Friday.

Mr Carney said it was conceivable that interest rates would rise from their historic low of 0.5% sooner than markets expected, implying that a rate hike could come before the end of this year.

That would potentially benefit TSB, the profitability of which is geared to interest rates to a greater degree than most of its high street rivals.

One insider said the City's assumptions about TSB's profitability, outlined in its prospectus last week, might need to be revised given the boost to margins on mortgages and current accounts which could result from an early rate rise.

At the 255p mid-point of the 220p-290p range announced last Monday, TSB would be valued at £1.275bn, roughly 15% below its book value of just over £1.5bn.

The expectation that shares in the UK's seventh-largest lender will be sold for less than its book value disappointed some City analysts.

Yet even at that level, Lloyds would still attract a price for TSB that is significantly higher than the £750m which the Co-operative Group planned to pay for the 631-branch network before a deal collapsed last year.

The prospectus revealed that TSB made an after-tax profit of £172m last year on revenue of £798m, although the earnings figure included a £105m tax gain.

Banking sources also said that approximately 60,000 retail investors had applied for shares, lured by the offer of free bonus stock.

That figure could increase significantly by Tuesday, when the window for retail applications closes.

Lloyds is selling between 25% and 27.5% of TSB in the flotation.

It is required to offload the remainder by the end of next year under a state aid deal agreed with Brussels following the bank's taxpayer bail-out in 2008.

Lloyds, which is being advised by Citi, JP Morgan, UBS, Investec, Royal Bank of Canada and Rothschild, declined to comment.

18.57 | 0 komentar | Read More

Retailers Set Goals On World Cup Success

By Emma Birchley, Sky News Correspondent

England fans are not the only ones hoping the players can find the back of the net as their World Cup campaign finally gets under way.

Retailers too are banking on success.

The Centre for Retail Research has estimated that every time England scores - shops, restaurants and pubs will benefit to the tune of almost £200m.

At Sainsbury's, designers started working on the merchandise more than a year ago.

Corporate affairs director Alex Cole said: "The longer England stays in the tournament, the more excuse we have got for parties as a nation.

"But also the sun is really important so the sunnier it is the more likely we are to say, yes, we will have a BBQ and get some people round to watch the match with us."

The further in the competition England progress, the better for retailers

But it is not just sales of sausages and beer that soar. TVs are selling well. So too are souvenirs and sportswear.

Takeaway pizzas are expected to sell in their millions but many people will head straight from work to bars or restaurants to watch the matches.

Phil Collinson, manager at Rileys Sports Bar in central London, is expecting 30,000 fans to come through the doors during the tournament.

"It's our responsibility to make sure everyone from all the different nations has the chance to see the matches," he said. "It will be an incredible atmosphere and great to be part of."

Reaching the final 16 is expected to see the takings by retailers, bars and restaurants rise by more than £1.3bn while a place in the final would be worth almost £2.6bn to the economy.

Michael Jarman says success equals spending

With England taking on Italy in their first game, it can mean split loyalties if you are running an Italian business in the heart of London.

But while there is no surprise who Lorenzo Mariotti, manager of the restaurant Little Italy in Soho, wants to win, he knows the importance of the home nation staying in the competition.

"We really need both teams to play well and go (as) far as they can and hopefully meet in the semi-final or final," he said. "It will be the most great game of the World Cup."

Former footballer and city trader Michael Jarman says success in the tournament will see football fans out spending.

"You find the general morale and momentum of the UK consumer is going to be more upbeat, a bit more optimistic," he said.

"You then have the new football season starting. Naturally there will be a better feel-good factor."

18.57 | 0 komentar | Read More

Retailers Set Goals On World Cup Success

By Emma Birchley, Sky News Correspondent

England fans are not the only ones hoping the players can find the back of the net as their World Cup campaign finally gets under way.

Retailers too are banking on success.

The Centre for Retail Research has estimated that every time England scores - shops, restaurants and pubs will benefit to the tune of almost £200m.

At Sainsbury's, designers started working on the merchandise more than a year ago.

Corporate affairs director Alex Cole said: "The longer England stays in the tournament, the more excuse we have got for parties as a nation.

"But also the sun is really important so the sunnier it is the more likely we are to say, yes, we will have a BBQ and get some people round to watch the match with us."

The further in the competition England progress, the better for retailers

But it is not just sales of sausages and beer that soar. TVs are selling well. So too are souvenirs and sportswear.

Takeaway pizzas are expected to sell in their millions but many people will head straight from work to bars or restaurants to watch the matches.

Phil Collinson, manager at Rileys Sports Bar in central London, is expecting 30,000 fans to come through the doors during the tournament.

"It's our responsibility to make sure everyone from all the different nations has the chance to see the matches," he said. "It will be an incredible atmosphere and great to be part of."

Reaching the final 16 is expected to see the takings by retailers, bars and restaurants rise by more than £1.3bn while a place in the final would be worth almost £2.6bn to the economy.

Michael Jarman says success equals spending

With England taking on Italy in their first game, it can mean split loyalties if you are running an Italian business in the heart of London.

But while there is no surprise who Lorenzo Mariotti, manager of the restaurant Little Italy in Soho, wants to win, he knows the importance of the home nation staying in the competition.

"We really need both teams to play well and go (as) far as they can and hopefully meet in the semi-final or final," he said. "It will be the most great game of the World Cup."

Former footballer and city trader Michael Jarman says success in the tournament will see football fans out spending.

"You find the general morale and momentum of the UK consumer is going to be more upbeat, a bit more optimistic," he said.

"You then have the new football season starting. Naturally there will be a better feel-good factor."

18.56 | 0 komentar | Read More

Interest Rate Rise 'Signals End Of Crisis'

George Osborne Acts To Curb Housing Bubble

Updated: 1:25am UK, Friday 13 June 2014

By Jon Craig, Chief Political Correspondent

Barely a few minutes into his Mansion House speech, George Osborne said: "So while I know this is my fifth speech to you as Chancellor, I hope it is not my last."

I'll bet he does!

But whether he's back this time next year addressing the bankers and City money men and women, or listening to Ed Balls make it, could depend on the success or not of the measures he announced in this year's speech.

He wouldn't admit it. But the Chancellor now appears to accept that the threat of a "housing bubble" in London and some other parts of the country is a potential problem.

He doesn't want interest rates to rise before next year's general election to curb house price inflation. We know that from no lesser source than Her Majesty the Queen last week.

"To strengthen the economy and provide stability and security, my ministers will continue to reduce the country's deficit, helping to ensure that mortgage and interest rates remain low," she said right at the outset of her speech at the State Opening of Parliament.

So instead, the Chancellor plans to give the Bank of England powers to curb big mortgages being offered to people who can't afford the repayments.

Excuse me, though. Aren't many of the big lenders doing that already? Some lenders are limiting loans to four times salary and scrapping loans of more than £500,000. There has been a clampdown on interest-only mortgages too.

But the price of an average house rose by £223 a day last month and by 16% over the past year. It's not as if Mr Osborne hasn't been warned.

For months, the Liberal Democrat Business Secretary Vince Cable has been warning about a "housing bubble". But until now he has been slapped down by the Tory Chancellor.

Not any more. Mr Osborne told his City audience: "If London prices were to continue growing at these rates that would be too fast for comfort."

In other words, the Chancellor now recognises what critics of his Help to Buy scheme have been telling him: there is a problem in the capital, particularly, and elsewhere.

It doesn't take a genius to work out why: demand massively outstrips supply. So Mr Osborne is proposing to relax planning laws on so-called "brownfield sites", while protecting the green belt in those Tory constituencies in the shires.

Relaxing planning laws? How many times have we heard that before from senior Conservative politicians? The "Nimbys" in the leafier parts of Britain have other ideas.

To tackle the supply and demand problem in the capital, the Chancellor is promising "new housing zones across London backed by new infrastructure". Thousands of new homes for London families is the promise. We've heard a lot about that before, too.

No wonder Ed Balls MP, Labour's Shadow Chancellor, said: "George Osborne is still failing to tackle the root cause of the housing crisis which is that we are not building enough homes to match rising demand.

"And the danger of the Chancellor's failure to act on housing supply is that we see a premature rise in interest rates to rein in the housing market which ends up hitting millions of families and businesses."

A rise in interest rates before the election? No chance, Mr Balls.

But despite Mr Osborne's attempts to cool the housing market to avoid a rate rise before voters go to the polls in May 2015, I predict the so-called "housing bubble" will lead to interest rates going up after the election.

Whoever it is delivering the Mansion House speech this time next year.

18.56 | 0 komentar | Read More

Carney Boosts Lloyds Plan For £1.3bn TSB Float

By Mark Kleinman, City Editor

The state-backed Lloyds Banking Group is this weekend considering increasing the price at which it sells shares in TSB, its high street subsidiary, amid strong demand from investors.

Sky News has learnt that Lloyds could announce early next week that it is revising the 220p-290p range for the flotation of TSB by raising the bottom end to approximately 240p.

Investment banking sources said Lloyds would make a decision after consulting its advisers during the next couple of days.

One insider said that the Mansion House address by Mark Carney, Governor of the Bank of England, had bolstered sentiment among City investors for TSB shares, with further interest registered on Friday.

Mr Carney said it was conceivable that interest rates would rise from their historic low of 0.5% sooner than markets expected, implying that a rate hike could come before the end of this year.

That would potentially benefit TSB, the profitability of which is geared to interest rates to a greater degree than most of its high street rivals.

One insider said the City's assumptions about TSB's profitability, outlined in its prospectus last week, might need to be revised given the boost to margins on mortgages and current accounts which could result from an early rate rise.

At the 255p mid-point of the 220p-290p range announced last Monday, TSB would be valued at £1.275bn, roughly 15% below its book value of just over £1.5bn.

The expectation that shares in the UK's seventh-largest lender will be sold for less than its book value disappointed some City analysts.

Yet even at that level, Lloyds would still attract a price for TSB that is significantly higher than the £750m which the Co-operative Group planned to pay for the 631-branch network before a deal collapsed last year.

The prospectus revealed that TSB made an after-tax profit of £172m last year on revenue of £798m, although the earnings figure included a £105m tax gain.

Banking sources also said that approximately 60,000 retail investors had applied for shares, lured by the offer of free bonus stock.

That figure could increase significantly by Tuesday, when the window for retail applications closes.

Lloyds is selling between 25% and 27.5% of TSB in the flotation.

It is required to offload the remainder by the end of next year under a state aid deal agreed with Brussels following the bank's taxpayer bail-out in 2008.

Lloyds, which is being advised by Citi, JP Morgan, UBS, Investec, Royal Bank of Canada and Rothschild, declined to comment.

18.56 | 0 komentar | Read More

Iraq Crisis Threatens Opec Oil Supply Growth

Future growth for the world's leading oil cartel will be severely harmed if militants reach the south of Iraq, a leading energy body has warned.

The International Energy Agency (IEA) said prices could continue to climb if ISIS insurgents took the capital Baghdad or continued towards crucial oil fields and Gulf export facilities near Basra.

The warning was issued to the Organisation of the Petroleum Exporting Countries (Opec) by the Paris-based policy group.

"Concerning as the latest events in Iraq may be, they might not for now, if the conflict does not spread further, put additional Iraqi oil supplies immediately at risk," the IEA said.

But it calculated that "roughly 60% of the growth in Opec crude production capacity for the rest of this decade will come from Iraq."

Opec is a 12-member cartel responsible for a third of global oil production, with Iraq its second-largest producer.

Barrel price for oil is currently at a nine-month high, with oil futures priced at a three-year high.

The IEA is the energy monitoring and policy arm of the Organisation for Economic Co-operation and Development (OECD), described by the Economist magazine as "the rich-country club".

Last month the IEA warned of a supply struggle from Opec - with a number of its member states faced supply disruptions.

Libya has seen its output reduced to below 200,000 barrels per day amid factional fighting, and Iranian output continues to be hampered by western sanctions.

Meanwhile, Nigeria has been affected by the shale revolution in the United States and Venezuela has suffered significant production limitations.

Key producer Saudi Arabia has said it could make up near-term shortfalls to keep the target of a combined 30 million barrels a day heading to world markets.

But the IEA said OPEC must boost output by 800,000 barrels daily in the second half of this year to meet demand.

The energy agency said that Iraq's relatively small output from the north of the country has been off the market since March due to violence, while output from the south has been on the rise and production has hit a 30-year high.

:: Opec was founded in Baghdad in 1960, to help exporting countries influence prices and break the stranglehold held by the so-called seven sisters, key western oil companies that dominated the global industry.

18.57 | 0 komentar | Read More

Carney Upstages Chancellor At Mansion House

George Osborne Acts To Curb Housing Bubble

Updated: 1:25am UK, Friday 13 June 2014

By Jon Craig, Chief Political Correspondent

Barely a few minutes into his Mansion House speech, George Osborne said: "So while I know this is my fifth speech to you as Chancellor, I hope it is not my last."

I'll bet he does!

But whether he's back this time next year addressing the bankers and City money men and women, or listening to Ed Balls make it, could depend on the success or not of the measures he announced in this year's speech.

He wouldn't admit it. But the Chancellor now appears to accept that the threat of a "housing bubble" in London and some other parts of the country is a potential problem.

He doesn't want interest rates to rise before next year's general election to curb house price inflation. We know that from no lesser source than Her Majesty the Queen last week.

"To strengthen the economy and provide stability and security, my ministers will continue to reduce the country's deficit, helping to ensure that mortgage and interest rates remain low," she said right at the outset of her speech at the State Opening of Parliament.

So instead, the Chancellor plans to give the Bank of England powers to curb big mortgages being offered to people who can't afford the repayments.

Excuse me, though. Aren't many of the big lenders doing that already? Some lenders are limiting loans to four times salary and scrapping loans of more than £500,000. There has been a clampdown on interest-only mortgages too.

But the price of an average house rose by £223 a day last month and by 16% over the past year. It's not as if Mr Osborne hasn't been warned.

For months, the Liberal Democrat Business Secretary Vince Cable has been warning about a "housing bubble". But until now he has been slapped down by the Tory Chancellor.

Not any more. Mr Osborne told his City audience: "If London prices were to continue growing at these rates that would be too fast for comfort."

In other words, the Chancellor now recognises what critics of his Help to Buy scheme have been telling him: there is a problem in the capital, particularly, and elsewhere.

It doesn't take a genius to work out why: demand massively outstrips supply. So Mr Osborne is proposing to relax planning laws on so-called "brownfield sites", while protecting the green belt in those Tory constituencies in the shires.

Relaxing planning laws? How many times have we heard that before from senior Conservative politicians? The "Nimbys" in the leafier parts of Britain have other ideas.

To tackle the supply and demand problem in the capital, the Chancellor is promising "new housing zones across London backed by new infrastructure". Thousands of new homes for London families is the promise. We've heard a lot about that before, too.

No wonder Ed Balls MP, Labour's Shadow Chancellor, said: "George Osborne is still failing to tackle the root cause of the housing crisis which is that we are not building enough homes to match rising demand.

"And the danger of the Chancellor's failure to act on housing supply is that we see a premature rise in interest rates to rein in the housing market which ends up hitting millions of families and businesses."

A rise in interest rates before the election? No chance, Mr Balls.

But despite Mr Osborne's attempts to cool the housing market to avoid a rate rise before voters go to the polls in May 2015, I predict the so-called "housing bubble" will lead to interest rates going up after the election.

Whoever it is delivering the Mansion House speech this time next year.

18.57 | 0 komentar | Read More