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US Jobless Rate At July 2008 Low Of 5.8%

Written By Unknown on Sabtu, 08 November 2014 | 18.57

The US jobless rate has hit its lowest level since July 2008, with the economy creating 214,000 net new jobs in October.

The fall in the rate from 5.9% in September was unexpected - and highlighted some greater resilience in the labour market as more people joined the workforce.

The data was released just three days after voters, frustrated by the economy, gave President Barack Obama a kicking in the midterm elections.

Economists polled by Reuters had forecast 231,000 new jobs last month but the performance meant that job growth, following revisions, has now exceeded 200,000 in each of the last nine months, sufficient strength to keep the economy on a higher growth path.

It expanded at an annualised rate of 3.5% in the third quarter, despite early signs of weaker global demand.

The market focus was on wages, in addition to the core job numbers, as employment gains on their own will probably not be enough to convince the Federal Reserve to start raising interest rates before the second half of 2015.

Kept at near-zero since December 2008, economists expect the Fed will want to see real evidence of rising wages before raising rates so not to risk choking off economic recovery.

The Labor Department data said average hourly earnings rose only three cents last month, leaving the year-on-year change below pre-recession levels at 2%.

The participation rate, or the share of working-age Americans who are employed or at least looking for a job, increased to 62.8% while the employment-to-population ratio also rose to its highest level since 2009.

World stock markets barely moved in reaction to the figures - seen as a crucial indicator of US economic strength - with the data doing little to alter rate rise forecasts.


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Royal Mail In Stand-Off Over MPs' Inquiry

By Mark Kleinman, City Editor

Royal Mail has been secretly resisting pressure from MPs for it to appear alongside rival postal operators as part of a new probe into competition in the industry.

Sky News has learnt that Royal Mail made representations to the Business, Innovation and Skills (BIS) Select Committee requesting that it should not be forced to give evidence during the sale session as Whistl and UK Mail.

Sources said that Moya Greene, Royal Mail's chief executive, would appear before the Committee on 26 November, adding that the MPs had refused to bow to the company's desire for it to appear separately.

The row is the latest development in Royal Mail's efforts to persuade politicians and regulators to commit to reforms that it says are necessary to protect the Universal Service Obligation (USO), which obliges it to deliver to every UK address for a fixed price.

"This decision might make good theatre but it won't make for good analysis of the issues," a source said on Friday.

The BIS Committee announced the launch of its inquiry in September following complaints from the privatised Royal Mail that its ability to meet its USO obligations is being undermined by the expansion plans of Whistl, the rebranded TNT Post.

Sky News also understands that Dave Ward, a senior official at the CWU union, has also been asked to appear before MPs this month, while Ed Richards, Ofcom chief executive, will give evidence in early December.

The hearings will mark the latest phase of an intensive period of lobbying by Ms Greene, who has been vocal in her criticism of the industry's regulatory regime.

Last month, she and her chairman, Donald Brydon, attended an Ofcom board meeting to warn that a review of postal markets planned for the end of next year must be accelerated to safeguard the USO.

Since listing on the stock market as part of its contentious £3.3bn privatisation last year, Ms Greene has complained that Whistl's expansion plans could cost Royal Mail £200m in lost revenue by 2017.

Ofcom is expected to decide whether to bring forward its assessment shortly.

Reiterating previous statements on the issue, a spokesman for the regulator said: "Protecting the universal service is at the heart of Ofcom's work, and our own evidence clearly shows that the service is not currently under threat.

"We are listening to the views of Royal Mail and other parties regarding competition in the market. We would assess any emerging threat to the service quickly, in the interests of postal users."

Royal Mail's shares have had a bumpy ride since last autumn's sale by the Government.

They initially surged, leading to accusations that Vince Cable, the Business Secretary, had cost the taxpayer £1bn by underpricing them.

However, the UK regulatory framework, an impending financial settlement with French competition authorities and the growing impact of greater competition - exemplified by Amazon UK's recent launch of a same-day delivery service - have weighed on Royal Mail shares in recent months.

On Friday, they were trading at just over 462p, down 20% during the last 12 months but exactly 40% higher than the price at which they floated last year.

Taxpayers continue to own 30% of Royal Mail, although there is little prospect of a sale of the remaining shares ahead of next year's General Election.


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PM Trying To 'Fool' Public Over EU Surcharge

The Prime Minister has been accused of "trying to take the British people for fools" for claiming the UK has managed to wrangle a 50% reduction on the £1.7bn EU surcharge.

Chancellor George Osborne said Britain would now pay the European Union just £850m of the original demand.

Mr Cameron described it as a victory for Britain and praised the Chancellor for securing the deal.

But shadow chancellor Ed Balls claimed the deal had not saved the UK "a single penny" and accused the pair of "trying to take the British people for fools".

"By counting the rebate Britain was due anyway, they are desperately trying to claim that the backdated bill for £1.7bn has somehow been halved," he said.

Video: Has Surcharge Really Been Halved?

"But nobody will fall for this smoke and mirrors."

The demand was made by Brussels after a recalculation of Britain's gross national income in relation to other EU states.

Mr Osborne said the deal, struck after meeting finance ministers in Brussels, was "far beyond what anyone expected us to achieve".

He said it meant the bill would be paid in two interest-free instalments after next year's election.

"Instead of footing the bill we have halved the bill, we have delayed the bill, we will pay no interest on the bill and if there are any mistakes in the bill we will get our money back," he said.

Video: Cameron: 'Good News' On EU Bill

But political opponents, including UKIP, claimed the reduction had been achieved only by bringing forward a rebate to which the UK would have been entitled anyway.

UKIP leader Nigel Farage wrote on Twitter: "Osborne trying to spin his way out of disaster. UK still paying full £1.7 billion, his credibility is about to nose dive."

Sky's Europe Correspondent Robert Nisbet said it appeared the EU would still get the full £1.7bn as a result of what he said some would call "clever accounting".

"Next year there will be two instalments that will equal £850m that will be paid to Brussels by the UK and it will get its rebate in full. So far, so good," explained Nisbet.

"But what will happen in 2016 is that an extra rebate based on increased VAT receipts will be used to settle the rest of the bill.

Video: Migrant Movements 'Not Unqualified'

"That allows the EU to claim it's getting its money, the UK to claim it's negotiated a great deal for Britain and for opposition parties to cry foul."

A Number 10 source insisted there was "no guarantee the rebate would have applied to this" before the deal was struck, and added: "Our view is that this is a very good deal."

However, Conservative MEP Daniel Hannan suggested the devil was in the detail, saying: "The EU sticks us with a bill. Ministers double it, apply the rebate, return to the original figure and claim victory. We're meant to cheer?

"Britain is worse off in absolute terms, but a straw man has been knocked down. A prelude to how the pro-EU side will fight the referendum."

Mr Osborne said EU rules would now be changed forever "so this never happens again", claiming he had got his counterparts to agree to change the system for calculating adjustments to member states' contributions.

Video: How Is The UK Seen In Europe?

The PM had earlier warned there would be a "major problem" if Brussels insisted on Britain paying the bill in full.

Mr Cameron went on the offensive after a meeting with other European leaders in Finland, saying Britain would not pay "anything like" the full amount ahead of a looming 1 December deadline.


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National Grid Plans 14,000 London Homes

Written By Unknown on Jumat, 07 November 2014 | 18.56

National Grid has announced a joint venture to build 14,000 new homes in "key areas of need" in London and south east England, creating thousands of jobs.

The 50/50 partnership with builders Berkeley Group is to be named St William Homes.

National Grid, which operates the power network across England and Wales, said the deal brought together its "significant portfolio of brownfield land" and Berkeley's "expertise to design, build and market new developments."

The company said it currently has over 20 sites in London and the South East with the potential to provide over 14,000 homes over the next 10-15 years.

In its first phase, St William aimed to develop more than 7,000 new homes, including over 2,000 affordable homes, with the potential to create 5,500 jobs, two new schools and 22 acres of public open space.

It said 84 acres of former industrial land would be transformed under the plans, contributing over £150m to local infrastructure and amenities. 

St William aims to commence development activity on its first site in 2016, with the first homes being delivered in 2017.

The £700m investment would be funded through shareholder equity and bank funding.

Steve Holliday, chief executive of National Grid, said: "By bringing together Berkeley's development expertise with National Grid Property sites, we hope to transform redundant land that was once at the heart of the industrial revolution to meet the housing and commercial needs of the 21st Century."

National Grid confirmed the development on the back of its latest results which showed a first-half adjusted pre-tax profit of £1.1bn - a rise of 16% on the same period last year.

The company warned last month that a series of power plant fires, coupled with temporary safety check closures, meant the risk to electricity supplies this winter was at a seven-year high.

It said the capacity margin - the gap between total electricity generating capacity and peak demand - could fall to 2.8% if bad weather set in but it was confident its forward planning would prevent any chance of blackouts.


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Canary Wharf Owner Rejects Takeover Proposal

The owner of Canary Wharf in London has rejected a takeover proposal that could have yielded the country's biggest property deal in years.

Songbird Estates - the majority owner of the sprawling financial area, including the headquarters for HSBC and Barclays - said the joint offer by the Qatar Investment Authority and US investor Brookfield Property Partners undervalued the business.

The Qatar fund, which already has a 29% stake in Songbird, is looking to capitalise on a strong commercial property market.

Its other property interests in London include The Shard, the tallest skyscraper in western Europe.

The offer represented a price of 295p per share - below Thursday night's close of 320p which gave it a market value of £2.3bn.

Songbird said on Friday: "The board of Songbird has reviewed the proposal with its advisers and has unanimously concluded to reject the proposal on the grounds that it materially undervalues Songbird.

Chairman David Pritchard added: "This proposal significantly undervalues Songbird and does not reflect the inherent value of the business and its underlying assets.

"The group has an exceptional management team with a clear vision to deliver additional shareholder value, including from our 11 million square foot development pipeline, the largest in London."

Canary Wharf - once the powerhouse for London's shipping trade - is currently home to a working population of more than 100,000 people.

In addition to the headquarters of Barclays and HSBC, it is also the European home to other major banks, including Citi.

The estate is on track to secure its first residential development while Crossrail, the planned link between east London and Reading via Heathrow, will also serve Canary Wharf and it set to also add considerable value to the estate.

The tunnels for Crossrail needed in Docklands were completed two weeks ago.


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EU: £1.7bn Bill Could Be Delayed - Report

The deadline for paying the EU's £1.7bn budget demand could be delayed, possibly until after the next election, under plans being considered in Brussels.

One of the options on the table is to move the deadline for payment from 1 December to a later date - and The Telegraph reports that 1 June was the "foreseen new deadline".

Proposals that have been circulated would see the bill being paid in instalments next year, rather than in full on 1 December. Punitive interest payments would also be waived.

Prime Minister David Cameron has insisted he will not pay "anything like" the £1.7bn demanded and warned there would be a "major problem" if the EU insisted on that amount.

Chancellor George Osborne, who is attending a meeting of Economic and Financial Affairs Council (ECOFIN) ministers in Brussels, has started negotiations with the intention of delaying and reducing what the UK should pay.

Video: Osborne Aims For 'Better' EU Deal

Speaking before the meeting, Mr Osborne said the demand is "unacceptable", and pledged to "get a better deal for Britain".

Meanwhile, Mr Cameron, at a meeting of northern European leaders in Helsinki, tried to gain support for Britain's position.

His official spokesman insisted the UK would not pay the full £1.7bn, saying: "The Prime Minister's view that he will not pay anything of that scale remains entirely unchanged."

Video: EU Charge: PM Is 'Getting Nowhere'

The meeting is part of a two-day summit of Scandinavian and Baltic state leaders called the Northern Future Forum, which aims to promote growth and economic reform throughout Europe.

Mr Cameron told leaders from Finland, Estonia, Sweden, Denmark, Iceland, Latvia, Lithuania and Norway the demand, and the short notice, is "unacceptable".

According to Downing Street, Mr Cameron insisted the bill could not be treated as a "purely technical transaction".

Video: PM: £1.7bn EU Surcharge 'Appalling'

The primary aim of the meeting is to promote growth and economic reform throughout Europe, but Downing Street said beforehand the PM would be raising other issues, such as budget control and migration.

Mr Cameron's hopes of winning allies in his attempt to curb internal migration within the EU have been met with strong resistance from other European leaders, including hosts Finland.

Sweden and Germany's opposition to migration reform have made the PM's task very difficult.

Video: PM Defiant Over £1.7bn EU Bill

UKIP leader Nigel Farage said on his LBC radio phone-in that Mr Cameron is in a "real mess" and added: "From my knowledge of Europe and my knowledge of David Cameron, if he plays the tough man and doesn't pay it by December 1, he will pay it on December 2."

The Labour Party has also piled on the pressure, with Ed Balls and Douglas Alexander saying "the Government must have all eyes on the detail of the deal being discussed, not looking back over their shoulders at the Eurosceptic backbenchers who still seem to be pulling the strings".

Video: EC Chief: £1.7bn UK Surcharge Fair

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Morrisons Sales Slump 6.3% In Third Quarter

Written By Unknown on Kamis, 06 November 2014 | 18.56

Morrisons has reported another big fall in sales as the supermarket sector scraps for market share amid the challenge from discounters.

The grocer posted a 6.3% drop in like-for-like sales in its third quarter to 2 November - a figure that hit 8% when the effects of fuel sales were included.

Morrisons said competition in the sector remained "intense" and it would take time for its pricing initiatives to help sales recover.

As part of a wider plan announced in March to invest £1bn in price cuts over three years, the company recently launched a new loyalty card scheme which promises to match prices at the hard discounters Aldi and Lidl.

There have been signs that the strategy is starting to pay off after closely-watched data from Kantar Worldpanel pointed to an improved sales trend.

Chief executive Dalton Philips said today: "Morrisons is meeting the challenges created by a period of intense industry competition and structural change with quick and decisive action."

He insisted the initiatives designed to help the chain recapture market share were showing some encouraging signs.

The like-for-like sales drop for the third quarter did represent an improvement on the 7.4% drop Morrisons endured in the previous six-month period.

The group, which trails market leader Tesco, Asda and Sainsbury's in annual sales, said it remained confident in its full year 2014-15 profit outlook.

It now expects underlying profit before tax to be in the narrower range of £335m-£365m versus previous guidance of £325m-£375m.

Such a performance would represent a halving of profit on the previous financial year.

The Morrisons share price rose more than 7% in early trading on the FTSE 100, with investors apparently encouraged by improving sales trends.

It had lost a third of its market value this year in advance of the trading update amid a wider sell-off of supermarket shares.


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Banking Industry Competition Probe Ordered

A full market inquiry into banks has been ordered over fears the dominance of the largest lenders is stifling competition.

The Competition and Markets Authority (CMA) said its investigation would scrutinise the personal current account and small business retail banking sectors.

Sky News reported on Tuesday night how major banks had called off their efforts to stall the inquiry.

The UK's four largest banks, Lloyds, RBS, Barclays, and HSBC collectively supply 77% of personal current accounts in the UK - a market worth £8bn.

The 'Big Four' also control about 85% of all small and medium-sized business accounts, an industry worth another £2bn.

The CMA said there has been "very little movement" in their collective market share as the level of customers shopping around and switching current accounts is "low".

It blamed limited transparency in the sector and had previously suggested a banking comparison website as a first step to improving transparency and aid competition.

Video: 'Retail Banking Isn't Working'

Challenger banks, such as Metro Bank and supermarket lenders, have grown their customer bases but failed to make the impact that had been hoped for to aid lending to small firms in particular.

The seven-day switch initiative - to ease the amount of time customers would have to wait to change bank - has helped grow numbers changing their lender.

The spin-off of TSB from Lloyds and the looming flotation of Virgin Money may also help boost competition.

But the CMA said it was concerned about continuing barriers of entry and expansion in the banking sector, which limit the ability of smaller and newer providers to develop their businesses.

The investigation is tipped to take up to two years to complete.

The chief executive of the bank industry group the BBA, Anthony Browne, said of the probe: "All the banks will co-operate fully with any investigation.

"There are already substantial changes currently under way across the banking industry to strengthen competition."

But his view was not shared by some of the smaller players.

Paul Pester, chief executive of TSB Bank, said: "The big four banks have had a stranglehold on the market for far too long.

"TSB believes the CMA investigation should focus on achieving greater transparency in banking, along with more choice and competition, so consumers get a better deal."

Craig Donaldson, the boss of Metro Bank, said: "Competition in the UK banking sector is heavily distorted.

"No market where such a small number of players hold such a large percentage of the market share should be described as efficient or competitive."


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Petrol Price Guarantees Demanded By Treasury

A failure by petrol firms and supermarkets to pass on the full benefit of falling oil prices to customers filling up at the pumps would be an "outrage", a Cabinet Minister has warned.

Treasury Chief Secretary Danny Alexander has demanded guarantees from fuel companies and distributors that they were doing all they could to pass on the price cuts to hard-pressed motorists.

At a speech in Aberdeen, Mr Alexander said consumers felt petrol prices rise "like a rocket" when oil costs went up, but fall "like a feather" when they came down.

And he said people would "rightly be angry" if they felt prices were not coming down as much as they should.

Video: Chancellor On Petrol Prices

Brent crude slumped as low as $82 (£51) a barrel earlier this week, its lowest level in just over four years due to concerns about over-supply.

The Liberal Democrat frontbencher will say: "Especially in the current economic circumstances people would rightly be angry if they feel that pump prices don't fall as much as they should on the back of falling oil prices."

However, investigations into the failure to pass on the fall in the price of oil has been inconclusive.

Mr Alexander has written to the industry's major players "seeking their assurance that they are doing all they can to pass on the benefit of falling oil prices as quickly as possible".

He said: "When the price of oil falls, the public have a right to expect pump prices to fall like a stone, not a feather."

His comments came as Asda announced it would be cutting the price of petrol and diesel by 1p to 119.7pm and 123.7p a litre. 

Video: 'We Still Pay Too Much For Fuel'

Asda said it was the first time its petrol had gone under 120p a litre in four years.

It triggered a supermarket price war and Sainsbury's and Tescos quickly followed suit with 1p cuts of their own.

Motoring organisations were quick to say there was more then Government could do that just put pressure on oil firms.

RAC Foundation director Professor Stephen Glaister said: "It is encouraging that Mr Alexander shares the concerns of the nation's drivers but in a way he is passing the buck.

"The biggest driver of pump prices remains the Government. Well over 60% of the price is tax."

AA president Edmund King said: "They themselves could do more.

Video: Cuts: A Loss Leader Or Real Deal?

"First, policies to help strengthen the pound by just 10 cents against the dollar would double the potential for a 2p-a-litre fall in the price of petrol to 4p.

"Secondly, the Government's failure to introduce fuel price transparency, showing the relationship between oil, wholesale and pump prices, has helped no one."

Shadow chief secretary to the Treasury Chris Leslie said: "Of course it's right that drivers should benefit from falling oil prices with lower prices at the pumps.

"But since 2011 people have paid 3p more on every litre of petrol because the Lib Dems broke their promise and backed the Tories in raising VAT."


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M&S Profits Up But Warm Autumn Hits Clothing

Written By Unknown on Rabu, 05 November 2014 | 18.57

M&S has reported a 2.3% rise in half year profits but said its troubled clothing division was hit by an unseasonably warm September.

The retailer's latest results marked a 13th consecutive quarterly fall in underlying sales of general merchandise, which include clothing, while web sales fell more than 6% in the six-month period.

M&S said its margins improved in the first half, helping it drive underlying profits higher for the first time in four years to £268m and it signalled that shoppers should not expect discounting ahead of Christmas by raising its non-food margin projections.

The food business, which has been growing steadily against a backdrop of struggles elsewhere, continued to impress in the 26 weeks to 27 September with sales up 3.6%.

M&S said the success of its Simply Food stores meant it was planning to open 200 new outlets over the next three years.

The company insisted that it had turned around womenswear - with sales rising 1.3% over five months and improved customer feedback.

It did not provide a six-month figure. 

Chief executive Marc Bolland told Sky News he was pleased by the performance, saying "style is back" and "wraps are in."

Mr Bolland, who took over in 2010, said the group was improving "step by step" but a new clothing team he set up in 2012 has so far failed to deliver a sustained increase in sales.

M&S estimated a 1.3% hit to clothing from "unseasonal conditions" in September - with the mild weather, also charted by rivals Next,  not helpful for shifting high-margin winter coats, knitwear and boots.

Mr Bolland has spent over £2.3bn to address decades of under-investment, overseeing the revamp of products, stores, a new website and marketing.

He said the disappointing internet sales figure was a consequence of the new website, which has cost M&S £150m.

Mr Bolland blamed a "massive change, moving to a new platform."

Shares in M&S, which were down almost a fifth over the past year ahead of today's results, rose 6.5% when trading began on the FTSE 100. 


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Interest Rate Hike 'Knocked On The Head'

A slowdown in the UK's economic recovery means there is no prospect of an interest rate increase, according to a closely-watched report on activity.

The Markit/CIPS services purchasing managers' index (PMI) for October came in at a 17-month low with growth weaker than even the gloomiest forecasts had suggested.

The survey found that mounting economic uncertainty was hitting confidence, with stagnation in the eurozone, China's slowdown and the shaky recovery in the US all highlighted as factors.

Markit said a weakening of its composite PMI, which also took in the construction and manufacturing sectors, and an absence of inflationary pressure suggested that the Bank of England would wait to raise borrowing costs.

Its chief economist, Chris Williamson, said: "Slower service sector growth knocks the prospect of interest rate hikes firmly on the head.

"An increasingly downbeat flow of economic data in recent weeks ...has thrown a cloud of uncertainty over the outlook."

The report suggested Britain was on track to record GDP growth of 0.5% in the fourth quarter of the year - down from the 0.7% recorded in the previous three months.

The Bank of England said last month that it expected growth of 0.8% between October and December.


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Christmas Costs 'Falling' Amid Price War

A retail industry body says Christmas shoppers are set to benefit as it charts falling shop prices, with food costs growing at their lowest level since at least 2006.

The British Retail Consortium's (BRC) shop price index for October, compiled by Nielsen, showed that the battle for customers between discounters and the major supermarket chains was reaping benefits for consumers.

It measured falls in the price of kitchen essentials such as milk, cheese and eggs for the first time since February 2010.

The BRC said convenience food was also cheaper than it was a year ago.

Total food inflation stood at just 0.1% in October, the lowest rate since the index began in 2006, after three consecutive months at 0.3%.

Overall, shops reported deflation for the 18th-consecutive month, accelerating to an annual rate of 1.9% in October from 1.8% in September as key agricultural commodity costs fell further amid market concern about the world economy.

The report said that in addition to that, discounts on clothes and electrical goods also continued to have an impact.

BRC director general Helen Dickinson said: "With the current competitive environment, retailers are passing most of these savings on to consumers.

"This should mean great deals for shoppers as they start stocking up on seasonal fare.

"As Christmas swiftly approaches, there is plenty of evidence to suggest that budgets will go a little bit further this year."


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Primark Posts 'Magnificent' 30% Profit Rise

Written By Unknown on Selasa, 04 November 2014 | 18.57

The chairman of Primark's owner has hailed a "magnificent" year for the discount clothing retailer, with profits rising 30% to £662m.

Associated British Foods (ABF) said the performances of its fashion and grocery divisions offset the adverse impact of lower prices in its sugars business, helping the group to achieve annual profits growth of 6% in the year to 13 September.

It also confirmed that Primark was shrugging off the effects of the current warm autumn weather, which has prompted rivals including Next to warn on profits, with sales for the first six weeks of its new financial year up 10%.

Annual sales at Primark, which now operates in nine countries, were 17% ahead of last year.

The results statement said: "This excellent result was driven by an increase in retail selling space, like-for-like sales growth of 4%, and superior sales densities in the new stores.

"The year was characterised by success for our autumn/winter and spring/summer ranges.

"Sales over the Christmas period were excellent and were boosted in the third quarter by warm weather, especially in the spring and early summer.

"We began trading in France in December last year and sales across all five stores have been exceptional.

"Eight years on from our initial entry into Iberia, this year's like-for-like growth achieved by our Spanish stores was particularly strong."

ABF chairman Charles Sinclair added: "We recently announced that the next new market would be in the north-east of the US, with the first stores expected to open late in 2015 and with up to 10 stores by the end of 2016."

Primark also confirmed it had committed a total $12m (£7.5m) in compensation and other support to workers and families of the victims following the collapse of the Rana Plaza factory in Bangladesh last year.

The retailer said that while most of its Rana Plaza staff were making garments for its competitors when the building collapsed, it was "committed to meeting its responsibilities in full and to paying long-term compensation to the workers employed by its supplier or their dependants".

"The safety of the staff employed by our suppliers is a high priority," Primark said.

"We have now undertaken structural assessments of all of our supplier factories in Bangladesh.

"We further strengthened our in-country teams of ethical trading specialists who are critical in supporting sustainable improvements within supplier factories, and providing greater visibility across the supply chain.

"We conducted 2,058 audits in the last calendar year, and ethical trade training continues to be provided to every new Primark employee," the company added.


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Virgin Money Flotation Is Back On Track

Virgin Money has confirmed it will go ahead with its stock market flotation, after postponing the listing last month.

The bank confirmed on Tuesday an earlier report by Sky News that it was now satisfied market conditions had settled amid volatility last month on global economic growth worries.

The company, backed by Sir Richard Branson, plans to raise around £150m from the sale of new shares, valuing the firm at up to £2bn.

Virgin Money chief executive Jayne-Anne Gadhia said in a statement that new Bank of England leverage rules set out last week had provided clarity for the UK banking sector, meaning the time was right to push ahead.

She said: "Given this and given more stable market conditions, we now plan to move forward with our IPO (Initial Public Offering) with the aim of being admitted by the end of November.

Ms Gadhia had previously stated that Virgin Money had performed strongly during its third quarter, winning a 4.5% share of new mortgage applications.

"Looking to the future, we have a powerful brand, a strong balance sheet, a strong core business franchise and considerable opportunities to continue to extend our product range," she said.

Virgin Group and WL Ross, a US-based investment vehicle, collectively own just over 90% of Virgin Money.

Bank of America Merrill Lynch, Barclays, Citi, Goldman Sachs and Keeffe Bruyette & Woods are working on the Virgin Money flotation.


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Holiday Pay Should Include Overtime

Overtime should be taken into account when holiday pay is calculated, the Employment Appeal Tribunal has ruled.

The Employment Appeal Tribunal ruled on two cases against Hertel UK and BEAR Scotland, which related to the UK's interpretation of the Working Time Directive.

Workers for these companies claimed their holiday pay was less than it should have been because their employers did not factor in voluntary overtime completed in the period prior to time off.

Brian Gordon, managing director BEAR Scotland, one of the companies involved in the case, said they were "disappointed" by the decision.

He added: "We believe that this interpretation of the Working Time Directive is significant for all UK employers, public and private, and we will reflect on our position before considering how to respond."

Unions have welcomed the ruling, with Unite executive director Howard Beckett saying: "Up until now some workers who are required to do overtime have been penalised for taking the time off they are entitled to.

"This ruling not only secures justice for our members who were short changed, but means employers have got to get their house in order."

Business groups, however, have described the ruling as a "blow" to business, with Confederation of British Industry director-general John Cridland warning of "punitive costs potentially running into billions of pounds".

He added: "Not all will survive - which could mean significant job losses.

"These cases are creating major uncertainty for businesses and impacting on investment and resourcing decisions.

"We need the UK Government to step up its defence of the current UK law, and use its powers to limit any retrospective liability that firms may face."

Tim Thomas, head of employment policy for manufacturers' organisation EEF, said firms will have little option but to factor the additional costs in to future pay negotiations and to reduce overtime, while one in four could cut jobs.

Some businesses had already prepared for the worst, with John Lewis setting aside £40 million to reimburse workers. 

Business Secretary Vince Cable said: "Government will review the judgement in detail as a matter of urgency."

He said a taskforce has been set up to discuss how to limit the impact of the decision for businesses, adding: "Employers and workers can also contact the Acas helpline for free and confidential advice."


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HSBC Prepares For UK Forex Fines Of £236m

Written By Unknown on Senin, 03 November 2014 | 18.56

Banking giant HSBC has set aside almost £250m as it prepares itself to be hit with fines over alleged foreign exchange manipulation.

It said it has made a $378m (£236m) provision for potential penalties following an investigation by Britain's Financial Conduct Authority (FCA).

"Discussions are ongoing with the FCA regarding a proposed resolution of their foreign exchange investigation with respect to HSBC Bank plc's systems and controls relating to one part of its spot FX trading business in London," it confirmed.

"Although there can be no certainty that a resolution will be agreed, if one is reached, the resolution is likely to involve the payment of a significant financial penalty.

"We continue to cooperate fully with regulatory and law enforcement authorities in the UK and other jurisdictions."

Video: 1964: Banking For the Ladies

HSBC, Royal Bank of Scotland and Barclays have now set aside a combined figure of more than £1.1bn for potential FCA fines over currency-rigging claims.

US investigators are also likely to hit HSBC, Europe's biggest banking group, with settlement charges however it has not chosen to quantify those possible penalties.

In addition to the currency trading woes, HSBC also said it was setting aside around £370m for potential additional payment protection insurance (PPI) mis-selling in the UK.

Video: MP Talks About Forex Probe

It has also agreed a $550m (£340m) settlement with the US Federal House Finance Agency.

The bank also confirmed it had been summoned to appear before French magistrates over whether its Swiss private bank had helped French citizens to evade tax.

Early last month, Sky News City Editor Mark Kleinman revealed two key directors were quitting over tough new regulations that could see directors jailed over failed banks.

Video: The Cost Of Banking To The Banks

The news about the potential penalties comes as the bank released its results for the three months to the end of September.

Although total revenues were flat at $15.57bn (£9.7bn), adjusted pre-tax profit fell 12% to $4.4bn (£2.75bn) on the back of impairment charges that reached almost $1.7bn (£1bn).

Statutory pre-tax profit rose by just 2% on the 2013 figure, far below analysts' expectation of around 16%.

Video: Oddie Confronts HSBC Over Loggers

Shares were down in early trading before recovering.

Net profit for the period rose 7% to $3.43bn (£2.1bn), compared to the same period last year.


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Thousands To Benefit From Rise In Living Wage

By Katie Spencer, Sky News Reporter

Around 35,000 people are set to benefit from a 20p rise in the UK living wage, but more than five million people are still earning below its hourly basic rate of £7.85.

Care worker Perrine Roland told Sky News about the struggles she used to have "living in poverty" on the national minimum adult wage of £6.50.

She said: "Sometimes, at the end of the month, I wouldn't have enough money for food so I would have to ask people to help me."

Today her current employer, Penrose Care, pays her the living wage, one of more than 1,000 employers to adopt the voluntary rate.

"Now I'm living in a very nice house share. I have my own room and it's really improved my standard of living," she said.

The living wage is now set at £7.85 an hour in the UK outside London - significantly higher than the minimum wage of £6.50 an hour for those over 21 and £5.13 for those aged 18 to 20. A new living wage rate for London is to be set later today.

While the minimum wage is legally enforceable, the living wage shows the minimum pay rates workers need to lead a decent life.

The living wage is currently calculated by the Centre for Research in Social Policy at Loughborough University, while the London living wage has been calculated by the GLA since 2005.

Robert Stephenson-Padron, the managing director of Penrose Care, says his company's decision to adopt the wage is about "respecting the humanity of our workers".

He insists there are benefits for both employee and employer.

"We've had extremely low staff turnover, we've got exceptional care workers, and that's really flowed through into the quality of care we provide."

The number of companies signed up to pay the living wage has more than doubled this year. It includes firms like Google, Barclays and food giant Nestle.

Campaigners have targeted chains like Ritzy Cinema, Tesco and Amazon for not signing up.

Bex Hay, from Amazon Anonymous, believes employers must face up to how people are struggling.

"A lot of workers talk about earning 1p over the minimum wage," she told Sky News.

"That doesn't allow them to meet costs of raising family, paying rent and all their bills. They have to work a lot of overtime, lots of seven days a week, long hours, it's demoralising and degrading."

The argument from small businesses is that, given the UK's sluggish economy, they would struggle to pay more than the minimum wage of £6.50 an hour.

However, campaigners are adamant that figure no longer reflects the real cost of living.


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Ryanair: It's Good To Be Nice To Passengers

No-frills carrier Ryanair has seen half-year profit rise by a third, on the back of fare increases and being "nicer" to passengers.

It said a 5% rise in ticket prices and 4% boost in seat loading were key factors behind the 32% rise in pre-tax profit, to €907.5m (£709m), in the six months to the end of September.

The average fare rose 5% in the period, to €68.95 (£53.90).

Speaking to Sky's Eamonn Holmes, Ryanair chief executive Michael O'Leary said: "We've had a very strong summer, by keeping fares low (in comparison to competitors) and being nicer to our customers."

The company has successfully cut its overheads, improved website offerings and expanded its business passenger options in a battle with key rivals EasyJet and British Airways, amid an ambitious plan to overhaul its attitude to customers.

Mr O'Leary added: "It's a new-found experience I must admit for me, but if it works this well I wish I'd been nicer to our customers much earlier. It's better late than never.

"We've been listening to our customers in the last 12 months … I think this being nicer to customers is really a new and winning strategy for me and Ryanair."

Half-year revenue was up 9% to €3,53bn (£2.76bn), with profit after tax rising from €602m (£470m) to €795m (£620m), compared with the same period last year.

Shares were up 8% in early trading as a result of the profit boost.

The airline now expects full-year net profit to would now be around €760m (£595m), compared with its previous forecast of €650m (£510m).

Mr O'Leary also confirmed the airline was considering an entry into the packaged tour market, but downplayed talk of transatlantic routes in the near-term.

He said a lack of long-haul aircraft hampered the idea, but with a big order book for short-haul planes he expects a near-doubling of annual passenger numbers to 150 million in the next decade.


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RBS Grows Profit But Sets Aside Further £780m

Written By Unknown on Minggu, 02 November 2014 | 18.56

Royal Bank of Scotland (RBS) has set aside a further £780m to cover the costs of conduct issues, including the PPI mis-selling scandal.

The news was released alongside its third-quarter results which demonstrated that the bank's recovery was continuing to build despite the burden of extra provisions for past mistakes.

RBS said it was taking a £400m charge in anticipation of regulatory action over the alleged manipulation of foreign exchange markets - following a similar move by rival Barclays 24-hours earlier.

It added £100m to its bill for PPI - taking the total to £3.3bn - citing "higher than expected reactive complaint volumes."

The bank, which is 80% owned by the taxpayer after its rescue during the financial crisis, said its profits for the third quarter were up to £1.27bn, compared with a loss of £634m in the same period last year.

It is the first time the bank has reported a profit for three quarters in a row since its bailout.

RBS also confirmed it was retaining Ulster Bank following a strategic review of the business.

Chief executive Ross McEwan said: "In February I placed trust at the heart of my new strategy for our bank.

"We have taken the first steps towards that goal, with early progress in making RBS simpler, clearer and fairer.

"We are reducing costs, and are on track to achieve our capital targets.

"UK and Ireland are showing signs of growth, and impairment trends are significantly better than we had anticipated at the start of the year.

"We have confirmed today that Ulster Bank remains a core part of our bank. We have a good market position and believe that, with investment, Ulster Bank can deliver attractive shareholder returns in the future.

"But we know we still have a long list of conduct and litigation issues to deal with and much, much more to do to restore our customers' trust in us."

The RBS share price rose 3% in early trading on the FTSE 100 in the wake of the update.


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Energy Bills: UK Gas Prices Hit Record Low

UK wholesale gas prices have hit a record low, piling more pressure on energy firms to explain why household bills have not been slashed.

The latest fall in raw costs - for November and December delivery - has resulted in a 23% fall over the year so far though bills have remained largely static.

The latest drop was a response to Ukraine and Russia signing a deal to end the threat of supplies being choked off.

The deal will see Moscow resume gas flows over the winter despite their continuing sovereignty row.

The agreement also guarantees delivery to the EU. Russian gas makes up approximately 15% of UK supply.

Raw energy costs, including oil, have been tumbling in recent months - with Brent Crude losing 25% of its value since June on the back of weaker demand as the world's economic recovery shows signs of easing.

Energy regulator Ofgem told Sky News this week it was seeking an explanation from household suppliers on why they had not passed on to customers the significant falls in wholesale costs.

The so-called Big Six firms responded to the development by insisting that bills reflected long-term gas costs, not short-term pricing.

Companies have recently been tinkering with their offerings, taking their lowest annual tariffs below an average £1,000, but are yet to signal any major cuts to bills despite their wholesale costs diving by almost a quarter during 2014.

Industry body Energy UK said: "There are good deals on the market for customers shopping around and looking to fix their payments.

"Wholesale prices are just part of the bill and, although reduced pressure on the wholesale gas market is good news in the long term, companies buy energy days, weeks, months - even years - in advance to protect customers from sudden changes in costs, and will have bought gas when prices were higher."

Energy firms must use either the wholesale market or a contract with an electricity generator to purchase their energy, which is then delivered to households.

But some suppliers are also part of companies that generate their own energy, so they effectively sell energy to themselves - a situation that has led to calls for greater transparency on profits by splitting generation and supply businesses.

Reported profit levels have recently fallen back to levels not seen since 2009 and companies have consistently argued that their profits are fair and bills reflect not only the timing of their raw gas purchases and hedging strategies but also and high investment costs.

National Grid's latest Winter Outlook report warned that spare capacity was at its weakest level for seven years - a result of several factors including the failure to keep pace with power station closures and unscheduled plant outages.


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BBA: New Oversight Will Hurt Smaller Banks

By Mark Kleinman, City Editor

Smaller lenders would be hit by new rules heralding the world's toughest oversight regime for senior bankers, according to the industry's main City-based lobbying groups.

The warning is contained in a confidential paper submitted on Friday to UK watchdogs ahead of sweeping reforms that will include the threat of seven-year prison terms for directors of failed banks.

In a joint response to the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA), the British Bankers' Association (BBA) and Association for Financial Markets in Europe (AFME) said that smaller banks would suffer disproportionately high costs in order to comply with the new supervisory framework.

"Coupled with the existing funding, capital and payment access disadvantages already suffered, these new overheads will act as a further barrier to small banks which have fewer senior executives amongst whom responsibilities can be shared, reducing their ability to provide challenge and competitive alternatives in the UK retail and small business market," the lobby groups said.

Their submission, a copy of which has been obtained by Sky News, contains several other objections to the FCA and PRA proposals, including:

:: A suggestion that non-executive directors of banks would lose their independence and begin "man-marking" their full-time colleagues if they are covered by the same rules.

The response said: "The proposed regime could potentially alter the current nature of NED and executive director relationships, and impact the current collaborative and challenge-based board decision-making processes as individual NEDs seek to protect against their individual personal liability."

That warning comes weeks after Sky News revealed that two directors of HSBC's UK subsidiary were quitting in protest at the new rules, which will come into effect next year.

:: A concern that the FCA would have jurisdiction over the overseas employees of UK-based banks even when individuals have no direct connection with UK clients or a realistic possibility of causing harm to a UK-regulated firm.

:: A plan to discontinue the current FCA register of banking industry employees should be dropped because it "will have a negative effect on standards across the industry, in part because of a reduction in transparent (for the industry, consumers and regulators) of many individuals' conduct history".

:: Rejecting the idea that chairmen of banks should not be solely responsible for ensuring that whistleblowers are protected from detrimental treatment.

Regulators are likely to be particularly sensitive to the complaint about higher costs being imposed on smaller lenders following efforts led by George Osborne, the Chancellor, and Vince Cable, the Business Secretary, to pave the way for a new group of "challenger banks".

The new framework has emerged in the wake of pressure on regulators to toughen penalties in the wake of the financial crisis and subsequent trading scandals, including Libor and foreign exchange benchmarks.

Six banks are expected to pay well over £1bn to UK regulators alone to settle the forex issues, with an announcement expected next month.


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RBS Grows Profit But Sets Aside Further £780m

Written By Unknown on Sabtu, 01 November 2014 | 18.57

Royal Bank of Scotland (RBS) has set aside a further £780m to cover the costs of conduct issues, including the PPI mis-selling scandal.

The news was released alongside its third-quarter results which demonstrated that the bank's recovery was continuing to build despite the burden of extra provisions for past mistakes.

RBS said it was taking a £400m charge in anticipation of regulatory action over the alleged manipulation of foreign exchange markets - following a similar move by rival Barclays 24-hours earlier.

It added £100m to its bill for PPI - taking the total to £3.3bn - citing "higher than expected reactive complaint volumes."

The bank, which is 80% owned by the taxpayer after its rescue during the financial crisis, said its profits for the third quarter were up to £1.27bn, compared with a loss of £634m in the same period last year.

It is the first time the bank has reported a profit for three quarters in a row since its bailout.

RBS also confirmed it was retaining Ulster Bank following a strategic review of the business.

Chief executive Ross McEwan said: "In February I placed trust at the heart of my new strategy for our bank.

"We have taken the first steps towards that goal, with early progress in making RBS simpler, clearer and fairer.

"We are reducing costs, and are on track to achieve our capital targets.

"UK and Ireland are showing signs of growth, and impairment trends are significantly better than we had anticipated at the start of the year.

"We have confirmed today that Ulster Bank remains a core part of our bank. We have a good market position and believe that, with investment, Ulster Bank can deliver attractive shareholder returns in the future.

"But we know we still have a long list of conduct and litigation issues to deal with and much, much more to do to restore our customers' trust in us."

The RBS share price rose 3% in early trading on the FTSE 100 in the wake of the update.


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Energy Bills: UK Gas Prices Hit Record Low

UK wholesale gas prices have hit a record low, piling more pressure on energy firms to explain why household bills have not been slashed.

The latest fall in raw costs - for November and December delivery - has resulted in a 23% fall over the year so far though bills have remained largely static.

The latest drop was a response to Ukraine and Russia signing a deal to end the threat of supplies being choked off.

The deal will see Moscow resume gas flows over the winter despite their continuing sovereignty row.

The agreement also guarantees delivery to the EU. Russian gas makes up approximately 15% of UK supply.

Raw energy costs, including oil too, have been tumbling in recent months - with Brent Crude losing 25% of its value since June on the back of weaker demand as the world's economic recovery shows signs of easing.

The energy regulator Ofgem told Sky News this week it was seeking an explanation from household suppliers on why they had not passed on to customers the significant falls in wholesale costs.

So-called 'Big Six' firms responded to today's development by insisting that bills reflected long term gas costs not short term pricing.

Companies have recently been tinkering with their offerings, taking their lowest annual tariffs below an average £1,000, but are yet to signal any major cuts to bills despite their wholesale costs diving by almost a quarter during 2014.

Industry body Energy UK said: "There are good deals on the market for customers shopping around and looking to fix their payments.

"Wholesale prices are just part of the bill and, although reduced pressure on the wholesale gas market is good news in the long term, companies buy energy days, weeks, months - even years - in advance to protect customers from sudden changes in costs, and will have bought gas when prices were higher."

Energy firms must use either the wholesale market or a contract with an electricity generator to purchase their energy, which is then delivered to households.

But some suppliers are also part of companies that generate their own energy, so they effectively sell energy to themselves - a situation that has led to calls for greater transparency on profits by splitting generation and supply businesses.

Reported profit levels have recently fallen back to levels not seen since 2009 and companies have consistently argued that their profits are fair and bills reflect not only the timing of their raw gas purchases and hedging strategies but also and high investment costs.

National Grid's latest Winter Outlook report warned that spare capacity was at its weakest level for seven years - a result of several factors including the failure to keep pace with power station closures and unscheduled plant outages.


18.57 | 0 komentar | Read More

BBA: New Oversight Will Hurt Smaller Banks

By Mark Kleinman, City Editor

Smaller lenders would be hit by new rules heralding the world's toughest oversight regime for senior bankers, according to the industry's main City-based lobbying groups.

The warning is contained in a confidential paper submitted on Friday to UK watchdogs ahead of sweeping reforms that will include the threat of seven-year prison terms for directors of failed banks.

In a joint response to the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA), the British Bankers' Association (BBA) and Association for Financial Markets in Europe (AFME) said that smaller banks would suffer disproportionately high costs in order to comply with the new supervisory framework.

"Coupled with the existing funding, capital and payment access disadvantages already suffered, these new overheads will act as a further barrier to small banks which have fewer senior executives amongst whom responsibilities can be shared, reducing their ability to provide challenge and competitive alternatives in the UK retail and small business market," the lobby groups said.

Their submission, a copy of which has been obtained by Sky News, contains several other objections to the FCA and PRA proposals, including:

:: A suggestion that non-executive directors of banks would lose their independence and begin "man-marking" their full-time colleagues if they are covered by the same rules.

The response said: "The proposed regime could potentially alter the current nature of NED and executive director relationships, and impact the current collaborative and challenge-based board decision-making processes as individual NEDs seek to protect against their individual personal liability."

That warning comes weeks after Sky News revealed that two directors of HSBC's UK subsidiary were quitting in protest at the new rules, which will come into effect next year.

:: A concern that the FCA would have jurisdiction over the overseas employees of UK-based banks even when individuals have no direct connection with UK clients or a realistic possibility of causing harm to a UK-regulated firm.

:: A plan to discontinue the current FCA register of banking industry employees should be dropped because it "will have a negative effect on standards across the industry, in part because of a reduction in transparent (for the industry, consumers and regulators) of many individuals' conduct history".

:: Rejecting the idea that chairmen of banks should not be solely responsible for ensuring that whistleblowers are protected from detrimental treatment.

Regulators are likely to be particularly sensitive to the complaint about higher costs being imposed on smaller lenders following efforts led by George Osborne, the Chancellor, and Vince Cable, the Business Secretary, to pave the way for a new group of "challenger banks".

The new framework has emerged in the wake of pressure on regulators to toughen penalties in the wake of the financial crisis and subsequent trading scandals, including Libor and foreign exchange benchmarks.

Six banks are expected to pay well over £1bn to UK regulators alone to settle the forex issues, with an announcement expected next month.


18.57 | 0 komentar | Read More
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