Budget Chain Aldi Sees Profit Boom In Britain

Five Secrets To Discount Supermarkets' Success

Updated: 12:24pm UK, Monday 29 September 2014

German discounters Aldi and Lidl continue to record stellar growth figures as the middle-class warm to their products and the big four supermarket chains battle it out in the bitter price war.

BIG IS NOT ALWAYS BETTER

Over decades the big supermarket chains have expanded their range and variety of products. While giving consumers a choice of between 10 different varieties of baked beans, such choice creates a stock burden, demands on the logistical chain and the need to have bigger stores to stock the products.

Instead, Aldi and Lidl restrict the number of different types of the same product. This allows them to reduce store sizes, warehouses and transport costs.

VISUAL SIGNALS

Big brands spend millions honing their packaging graphics, logos and label colours. The discounters sell their own-source items, from cereals to deli items and tinned food at below the price point of big brands. There is a remarkable similarity in the discounters' goods to the familiar household labels.

Aldi's prosecco sparkling wine's orange label is a similar colour to a famous French champagne, its chocolate wrappers have a scroll graphic like a luxury Swiss brand, and you may need to do a double take when you see their rice crispy breakfast cereals.

ONLINE DELIVERIES

Apart from Morrisons, the big chains raced into online ordering in the 21st century. They have built up big IT structures and local delivery networks to offer the service. But it does not come cheaply. Some estimates put the cost of each delivery at more than £10, an expense borne by the retailer. Aldi and Lidl have avoided becoming sucked into the vortex of online ordering and delivery.

STAFFING

With smaller stores, the discounters can keep wage overheads to a minimum. Salaries are a big and fixed overhead for supermarkets. On October 2, Aldi opens its second store in Lincoln. The full staffing level of 45, for a store open long hours, is low.

Lower staffing levels means fewer checkouts and shelf stackers. The discounters get around this by selling many items directly from the transportation pallets. The big chains normally unload pallets in the back room and then restock using smaller trolleys. Wheeling pallets into their wide aisles saves time and the number of staff needed.

Fewer checkouts can cause tension and dissatisfaction for customers, but Aldi has found a way to trim a second or two from each item being scanned. Many of their products carry multiple bar codes, allowing checkout staff to improve item scanning time, alleviating the need to locate the code on the packaging.

The discounters have also avoided the added expense of setting up a chain of convenience stores. High street leases and fitting out costs are expense undertakings, and it has become another battleground for the big supermarkets.

WOOING THE MIDDLE-CLASS

Pre-financial crash many middle-class families were happy doing the weekly shop at their local out-of-town mega supermarket. With belt tightening, more awareness of food wastage and a range of items that appeal to more discerning palates, Aldi and Lidl have catered for those with less-constrained budgets without disenfranchising budget buyers.

18.56 | 0 komentar | Read More

Five Secrets To Discount Supermarkets' Success

German discounters Aldi and Lidl continue to record stellar growth figures as the middle-class warm to their products and the big four supermarket chains battle it out in the bitter price war.

BIG IS NOT ALWAYS BETTER

Over decades the big supermarket chains have expanded their range and variety of products. While giving consumers a choice of between 10 different varieties of baked beans, such choice creates a stock burden, demands on the logistical chain and the need to have bigger stores to stock the products.

Instead, Aldi and Lidl restrict the number of different types of the same product. This allows them to reduce store sizes, warehouses and transport costs.

VISUAL SIGNALS

Big brands spend millions honing their packaging graphics, logos and label colours. The discounters sell their own-source items, from cereals to deli items and tinned food at below the price point of big brands. There is a remarkable similarity in the discounters' goods to the familiar household labels.

Aldi's prosecco sparkling wine's orange label is a similar colour to a famous French champagne, its chocolate wrappers have a scroll graphic like a luxury Swiss brand, and you may need to do a double take when you see their rice crispy breakfast cereals.

ONLINE DELIVERIES

Apart from Morrisons, the big chains raced into online ordering in the 21st century. They have built up big IT structures and local delivery networks to offer the service. But it does not come cheaply. Some estimates put the cost of each delivery at more than £10, an expense borne by the retailer. Aldi and Lidl have avoided becoming sucked into the vortex of online ordering and delivery.

STAFFING

With smaller stores, the discounters can keep wage overheads to a minimum. Salaries are a big and fixed overhead for supermarkets. On October 2, Aldi opens its second store in Lincoln. The full staffing level of 45, for a store open long hours, is low.

Lower staffing levels means fewer checkouts and shelf stackers. The discounters get around this by selling many items directly from the transportation pallets. The big chains normally unload pallets in the back room and then restock using smaller trolleys. Wheeling pallets into their wide aisles saves time and the number of staff needed.

Fewer checkouts can cause tension and dissatisfaction for customers, but Aldi has found a way to trim a second or two from each item being scanned. Many of their products carry multiple bar codes, allowing checkout staff to improve item scanning time, alleviating the need to locate the code on the packaging.

The discounters have also avoided the added expense of setting up a chain of convenience stores. High street leases and fitting out costs are expense undertakings, and it has become another battleground for the big supermarkets.

WOOING THE MIDDLE-CLASS

Pre-financial crash many middle-class families were happy doing the weekly shop at their local out-of-town mega supermarket. With belt tightening, more awareness of food wastage and a range of items that appeal to more discerning palates, Aldi and Lidl have catered for those with less-constrained budgets without disenfranchising budget buyers.

18.56 | 0 komentar | Read More

Lloyds Sacks Eight And Stops Bonuses Over Libor

Lloyds Banking Group has sacked eight staff and forfeited their bonuses of £3m, over Libor and currency manipulation attempts.

The staff members of the taxpayer-backed bank were found guilty of misconduct for actions between 2006 and 2009.

The findings come following investigation by UK and US regulators over manipulation attempts for the interbank lending rate, and the currency fixing known as the Sterling Repo rate.

Lloyds Banking Group CEO Antonio Horta-Osorio said: "Having now taken disciplinary action against those individuals responsible for the totally unacceptable behaviour identified by the regulators' investigations, the board and the group's management team are committed to preventing this type of behaviour happening again."

"A number of individuals have been dismissed. In addition, the Remuneration Committee is tasked with ensuring that the outcome of the disciplinary process and the significant reputational damage and financial cost to the group are fully and fairly reflected in the options considered in relation to other staff bonus payments."

Sources have told Sky News the bonus-cutting - averaging £375,000 per employee - was part of new rules over so-called clawback.

The purpose of clawing back bonus and other incentives from previous years it to dissuade bankers from reckless behaviour, if they are found liable at a later date.

The unnamed Lloyds staff now have the right to appeal the decision, in accordance with Lloyds's disciplinary policies and procedures.

Sky News City Editor Mark Kleinman revealed in February that Royal Bank of Scotland - 81% owned by the taxpayer - was eyeing up to £100m in staff bonus claw back over Libor at its investment bank.

Lloyds admitted it was unable to take any disciplinary action against a number of other staff members who left the group prior to the settlements with regulators in July.

The UK's Financial Conduct Authority fined Lloyds £105m, and it was also heavily fined by US regulators, with the overall penalty coming to £218m.

Chancellor George Osborne said the Libor fine for Lloyds would go to military good causes.

Royal Bank of Scotland was fined £390m manipulating benchmark rates in February last year, and there have been a number of other banks, including Barclays, UBS, Deutsche and JPMorgan.

Barclays was the first bank to settle with regulators for manipulating Libor submissions, paying £290m in June 2012.

Meanwhile, Swiss banking giant UBS has warned it faces new fines after confirming talks to settle allegations of involvement in foreign exchange (forex) rigging.

It has previously paid out fines totalling $1.5bn (£920m) over benchmark rate manipulation, and has set aside $2bn for fines over forex.

18.56 | 0 komentar | Read More

Vauxhall Recall: Warning Over Corsa Steering

Recalls By Carmakers On The Rise

Updated: 11:25am UK, Saturday 27 September 2014

The recall by Vauxhall of around 3,000 vehicles because of a steering problem is just the latest in a series of headaches for motor manufacturers.

Last year, manufacturers recalled 868,605 vehicles to dealerships to fix potentially life-threatening defects - up from 665,000 in 2009.

However, the increase does not necessarily mean cars are more prone to faults, but that firms are acting more quickly to deal with problems - anxious to avoid damage to their brands.

Here are just some of the major recalls seen in the past year or so.

:: Only this week US car giant Ford put out a recall on around 850,000 cars in the US over a "potential issue" with airbags.

:: Ferrari has recalled more than 3,000 of its £200,000 luxury sports cars because a fault with a latch means anyone trapped in the boot would not be able to get out.

:: General Motors recalled more than 220,000 cars to correct a brake defect that could increase the risk of fire.

:: Earlier this year, Toyota issued a recall affecting 6.4 million vehicles worldwide and 35,124 in the UK. The carmaker has learned the lessons from the past when it suffered a backlash, after being seen to have responded too slowly to a fault that caused models to accelerate without warning in 2010.

:: Aston Martin recalled 17,590 sports cars in February due to a problem with the accelerator pedal.

:: In 2013, Mercedes recalled 2,540 M-class SUV models in the UK when it discovered a particular floor mat could impede the accelerator pedal.

18.56 | 0 komentar | Read More

Vast Food: Restaurants Urged To Cut Portions

By Poppy Trowbridge, Consumer Affairs Correspondent

Restaurants should cut portion sizes or charge more for large servings to help reduce food waste and fight obesity, experts have said.

The Chartered Institute of Environmental Health said the measures would also mean significant savings for food outlets and catering firms.

Jenny Morris, policy officer at the professional body for environmental and public health, told Sky News: "Many of us eat too much.

"The portions we expect to see are too big.

"It seems obvious to me, that an easy solution is to only produce the amount of food that is going to be consumed or that is needed."

She also added that there was some rationale for restaurants to charge a premium for large servings, in a bid to combat rising obesity rates.

Campaigns have sought to encourage consumers to cut back on food waste for years, but the CIEH says the industry itself must drive the changes.

Anthony Worrall Thompson says 97p per customer is lost in food waste

"I think that it is business that needs to lead on it because it is business that is in control," Ms Morris said.

"It hasn't always been the focus up until now."

While big business has begun to measure appropriate portion sizes and reduce food waste, the majority of Britain's food businesses are missing out.

Ms Morris said small and medium-sized restaurants could save hundreds of pounds a week by simply reducing how much meat and produce is wasted.

Celebrity chef Anthony Worrall Thompson estimates that 97p per customer is lost in food waste.

"When you add that amongst the thousands of customers we have every year, it's a huge amount of money," he said.

Recycling body WRAP estimates the cost of food being wasted in the UK from the hospitality and food service sector will reach £3bn per year by 2016.

Ms Morris said: "We are in a very privileged situation at the moment where food is relatively cheap. It won't be in the future.

"It doesn't matter whether a business is small or large, it can save a lot of money." 

18.56 | 0 komentar | Read More

Tory Plan To Lower Benefits Cap To £23,000

UKIP Defections: PM Did Too Little, Too Late

Updated: 10:09pm UK, Saturday 27 September 2014

By Anushka Asthana, Political Correspondent

During the 2010 election, I travelled to Rochester and Strood in Kent, where I met the Tory candidate Mark Reckless.

One thing that struck me as I watched him take to the doorsteps, was the number of constituents raising the issue of immigration.

One awkward incident involved an elderly man ranting about why he supported the far-right National Front. Mr Reckless backed off, embarrassed.

He certainly didn't share those extreme views. But it was clear then that he was a politician who was worried about immigration and angry about Europe.

I remember another conversation with Mr Reckless last year in the Commons.

Tory backbenchers were nervous about immigration, he told me. They felt David Cameron hadn't done enough, and the looming prospect of transitional controls lifted on Bulgarians and Romanians was of particular concern. 

Things could get tetchy in January 2015, he said.

Mr Cameron knew about these misgivings among his MPs and tried to act on them.

Late last year he unveiled a toughening up in the rhetoric on immigration – bringing in new rules to crack down on the access that new EU migrants would get to benefits. Then came the pledge of an EU referendum.

The hope was to appease the concerns of people like Mr Reckless, and you might have thought it was working.

After all, following the defection to UKIP of Douglas Carswell many asked the MP if he would be next. He insisted not.

When I texted Tracey Crouch, a neighbouring MP in Kent, about his decision to leave the Tories, she replied: "Nothing I can say right now would be becoming of a lady. I'm so angry. He looked me in the eye and promised he wasn't going to defect."

Others pointed out that he was openly supportive of the Conservatives as recently as yesterday.

Then he tweeted: "Good to lead coach for Team2015 campaigning in Birmingham Northfield on Sunday + will be followed by our Clacton action next Thursday."

That is why Tory sources say they are "surprised". Other MPs told me they felt "let down", "frustrated" and "fed up".

"Another battle when we should be fighting Labour," said one.

Others argued that although he had behaved irresponsibly, giving a leg-up to Ed Miliband, that a number of backbenchers were angry with the party's position on Europe.

They believe that Mr Cameron hasn't done enough to prove he can loosen Britain's ties to the EU. They want to see the issue addressed at his conference speech this week.

The problem for men like Mr Reckless is they don't share the Prime Minister's views on Europe.

Mr Cameron wants to reform the UK's relationship with the continent and then – ideally – campaign for us to stay IN.

And that is the sticking point with Mr Reckless.

The former Tory MP was clear today that he believes in an independent Britain, and wants to follow the Scotland Yes campaign with what he said was a positive, patriotic message for voters.

He wants OUT – and UKIP is the only party that is fully with him.

18.56 | 0 komentar | Read More

Vast Food: Restaurants Urged To Cut Portions

By Poppy Trowbridge, Consumer Affairs Correspondent

Restaurants should cut portion sizes or charge more for large servings to help reduce food waste and fight obesity, experts have said.

The Chartered Institute of Environmental Health said the measures would also mean significant savings for food outlets and catering firms.

Jenny Morris, policy officer at the professional body for environmental and public health, told Sky News: "Many of us eat too much.

"The portions we expect to see are too big.

"It seems obvious to me, that an easy solution is to only produce the amount of food that is going to be consumed or that is needed."

She also added that there was some rationale for restaurants to charge a premium for large servings, in a bid to combat rising obesity rates.

Campaigns have sought to encourage consumers to cut back on food waste for years, but the CIEH says the industry itself must drive the changes.

Anthony Worrall Thompson says 97p per customer is lost in food waste

"I think that it is business that needs to lead on it because it is business that is in control," Ms Morris said.

"It hasn't always been the focus up until now."

While big business has begun to measure appropriate portion sizes and reduce food waste, the majority of Britain's food businesses are missing out.

Ms Morris said small and medium-sized restaurants could save hundreds of pounds a week by simply reducing how much meat and produce is wasted.

Celebrity chef Anthony Worrall Thompson estimates that 97p per customer is lost in food waste.

"When you add that amongst the thousands of customers we have every year, it's a huge amount of money," he said.

Recycling body WRAP estimates the cost of food being wasted in the UK from the hospitality and food service sector will reach £3bn per year by 2016.

Ms Morris said: "We are in a very privileged situation at the moment where food is relatively cheap. It won't be in the future.

"It doesn't matter whether a business is small or large, it can save a lot of money." 

18.56 | 0 komentar | Read More

First-Time Buyers To Get 20% Off Under Tories

Young first-time buyers will get a 20% discount on their new homes, under plans announced by the Conservatives.

David Cameron has set out plans to build tens of thousands of new homes on commercial "brownfield" land, reserved for first-time buyers, under 40.

As Tories begin gathering in Birmingham for their annual conference, the PM said a Conservative government would implement the plan if they were re-elected in 2015.

Homes built under the proposed Help to Buy: Starter Homes scheme would be exempt from a range of taxes, lowering their price by 20%, say Tories.

First-time buyers have been priced out of many areas, especially in London

In an interview with The Sun, Mr Cameron said the programme would deliver 100,000 starter homes over the lifetime of the next parliament.

"We want to help more young people achieve the dream of home ownership so today as part of our long-term economic plan I can pledge we will build 100,000 homes for young, first-time buyers," he said.

"We will make these starter homes 20% cheaper by exempting them from a raft of taxes and by using brownfield land.

"I don't want to see young people locked out of home ownership.

David Cameron says the new homes would be exempt from some taxes

"We've already started to tackle the problem with Help to Buy mortgages - and these new plans will help tens of thousands more people to buy their first home."

The Conservatives said the homes would be built on brownfield land already zoned for development but no longer needed for industrial or commercial use.

Such land is not normally made available for housebuilding and can be bought more cheaply than other land, and the savings will be passed on to the buyer.

Public sector land which is surplus to requirements will also be brought into the scheme.

At the same time, the Conservatives said that the properties would be exempt from most of the taxes imposed on new homes.

These taxes include the social housing requirement and the community infrastructure levy.

Some future regulations such as the zero carbon homes standard will also not apply to properties built under the scheme.

The announcement is intended to set the tone for the party's final annual conference before the country goes to the polls next May.

18.56 | 0 komentar | Read More

Vauxhall Recall: Warning Over Corsa Steering

Recalls By Carmakers On The Rise

Updated: 11:25am UK, Saturday 27 September 2014

The recall by Vauxhall of around 3,000 vehicles because of a steering problem is just the latest in a series of headaches for motor manufacturers.

Last year, manufacturers recalled 868,605 vehicles to dealerships to fix potentially life-threatening defects - up from 665,000 in 2009.

However, the increase does not necessarily mean cars are more prone to faults, but that firms are acting more quickly to deal with problems - anxious to avoid damage to their brands.

Here are just some of the major recalls seen in the past year or so.

:: Only this week US car giant Ford put out a recall on around 850,000 cars in the US over a "potential issue" with airbags.

:: Ferrari has recalled more than 3,000 of its £200,000 luxury sports cars because a fault with a latch means anyone trapped in the boot would not be able to get out.

:: General Motors recalled more than 220,000 cars to correct a brake defect that could increase the risk of fire.

:: Earlier this year, Toyota issued a recall affecting 6.4 million vehicles worldwide and 35,124 in the UK. The carmaker has learned the lessons from the past when it suffered a backlash, after being seen to have responded too slowly to a fault that caused models to accelerate without warning in 2010.

:: Aston Martin recalled 17,590 sports cars in February due to a problem with the accelerator pedal.

:: In 2013, Mercedes recalled 2,540 M-class SUV models in the UK when it discovered a particular floor mat could impede the accelerator pedal.

18.56 | 0 komentar | Read More

Wonga Profit Slumps After Disastrous Year

By Mark Kleinman, City Editor

Wonga saw its profits slump last year amid trading difficulties in its overseas and small business operations, underlining the task facing its new boss to improve the payday lender's performance.

Sky News has learnt that Wonga is expected to publish annual results for 2013 showing a slump in pre-tax profits from £84.5m last year to roughly £50m in 2013, a source close to the company said.

The period covered by Wonga's results is understood to pre-date the scandal triggered earlier this summer when it emerged that the company had invented a number of law firms in order to pursue customers for unpaid debts.

The episode prompted Wonga to agree with financial regulators to pay at least £2.6m to compensate 45,000 customers for sending them letters from non-existent firms such as Barker and Lowe and Chainey, D'Amato and Shannon.

Wonga's disclosures next week are expected to include a big one-off exceptional charge - possibly running to tens of millions of pounds - to cover legal and regulatory costs related to the fake legal letters scandal, although it is unclear which year the charge will be applied to its accounts.

The controversy marked a nadir for Wonga's reputation, and prompted the company to recruit Andy Haste, a respected City figure, as its executive chairman with a brief to clean up the company's affairs.

Mr Haste will be paid £500,000 a year during an initial period while Wonga seeks a permanent chief executive, after which his annual salary will be reduced to £300,000.

A new chief financial officer is expected to be appointed in the coming days, while Mr Haste has also hired a former RSA colleague, Tara Kneafsey, to run its UK business.

Wonga's small and medium-sized business-lending arm, Everline, is thought to be losing money, as are some of the company's international operations.

Its accounts are also expected to show that Wonga bought back around 2.5m shares from Errol Damelin, the founder who stepped down as chairman earlier this year.

"I want to ensure that the business operates responsibly while providing an effective and reliable service for our customers. I have a clear mandate from the shareholders in Wonga to lead that process, both in the UK and across our international operations," Mr Haste told Sky News in July.

"I have asked all the questions I can think of asking, and I believe I've been made aware of everything," he said.

"Time will tell whether that's the case."

The fall in profits in 2013 may be repeated this year, according to company insiders, because of continued underperformance in parts of Wonga's business.

The City regulator is also bearing down on providers of short-term credit, proposing in July a cap on payday lending meaning that from next January, interest and fees must not exceed 0.8% per day of the amount borrowed.

The Financial Conduct Authority is also imposing a cap on the overall cost of a payday loan so that it cannot exceed 100% of the original sum borrowed.

Asked about Wonga's 2013 results, Damian Peachey, a Wonga spokesman, said the company did not comment on "rumour and speculation" and would not confirm that next week's announcement would cover 2013's audited numbers alone.

He added that Wonga wanted to release its results "in a democratic way".

Last year, the company launched an initiative called OpenWonga, aimed at increasing transparency with stakeholders.

18.56 | 0 komentar | Read More

Tesco Troubles: Mike Ashley Makes £43m Bet

The billionaire owner of Sports Direct and Newcastle United has made a £43m bet on Tesco's future.

The announcement was made by the retailer, which is majority-owned by Mike Ashley, to the stock exchange as the supermarket chain battles the fallout from a £250m profits error.

Tesco's admission, on Monday, sent its shares to their lowest level in a decade and raised serious questions on management and governance.

Sports Direct said it had entered into a put-option agreement with Goldman Sachs for more than 23 million shares, representing a 0.3% stake in the supermarket business.

Its statement read: "This investment reflects Sports Direct's growing relationship with Tesco and belief in Tesco's long-term future".

The move essentially means that Mike Ashley is betting that the Tesco share price will rise. The agreement gives Goldman Sachs the option to sell 23m Tesco shares to Sports Direct at a set price on an agreed future date.

If shares have fallen below this predetermined price, Goldman Sachs would be able to 'exercise' the option, allowing them to sell the shares to Sports Direct at the higher rate - meaning the retailer would have to pay more for the stock.

However, should the share price rise above the pre-agreed price, Sports Direct would be able to book the premium as profit.

Its punt on a recovery in the supermarket chain's value followed a decision by Tesco's third-largest shareholder to cut its stake.

The world's biggest investment firm BlackRock sold more than £150m-worth of shares, taking its stake below 5%.

The sell-off came to light after credit ratings agency Standard & Poor's joined Moody's and Fitch in warning of a potential downgrade to Tesco's credit rating.

It said its action would depend on the findings of the chain's investigation.

It has also emerged that Tesco executives may be hauled before MPs to explain its profit guidance mistake.

Adrian Bailey, the chairman of Parliament's Business, Innovation and Skills Committee, told BBC Radio 5 Live it was "unbelievable" that a company of Tesco's size could get into such a mess.

18.56 | 0 komentar | Read More

Low Fare? The £27.3bn Cost Of Return Flight

By James Sillars, Sky News Business

A would-be holidaymaker has spoken of her shock after an online travel agency almost charged her a whopping £23.7bn for two return flights to Portugal.

Marion Sessions, who owns and runs two holiday cottages in Derbyshire with her husband, was about to click 'proceed' on the eDreams website for flights from Birmingham to Faro for them when she noticed the return baggage check-in cost.

She told friends on Facebook: "How's this for a great price?

"I have just tried to book cheap flights... for a weekend trip to stay with some good friends.

"I Googled 'cheap flights to Faro', found eDreams ('Great Trips at Great Prices' is their slogan) were offering the best, with Ryanair and Monarch Airlines, at a cost for the two of us of £164.07.

"I duly booked and fortunately was alert enough to realise - before clicking 'confirm' that the final cost was the truly - as advertised - great price of £23,659,382,125.95!!!"

She added: "Don't think our current account would have run to it this month..."

Neither Ryanair nor Monarch are responsible for eDreams' pricing or booking processes.

This is not the first time eDreams has come under pressure on an issue of price.

In February, research by Which? suggested travellers booking flights or holidays with the company could face additional service charges of up to 25% of the headline ticket price.

MoneySupermarket.com reported last year that easyJet had referred eDreams to regulators, claiming it was overcharging customers for tickets on its flights.

Mrs Sessions, who has written a blog on her experience, told Sky News: "I thought i must have made a mistake.

"I couldn't believe my eyes but it was so lucky I noticed the final price.

"I shudder to think what may have happened had I agreed... I tried to contact them but there was an out-of-hours message."

Sky News has contacted Spain-based eDreams for its side of the story but has yet to get an explanation for the error.

18.56 | 0 komentar | Read More

Car Insurance: New Rules To Reduce Costs

A regulator has published new rules it hopes will boost competition to help bring down the cost of premiums in the UK's £11bn private motor insurance market.

The clampdown may knock up to £20 off a typical bill under the Competition and Markets Authority's (CMA) plan.

Among its headline measures is a ban on exclusivity agreements between price comparison websites and insurers that prevent companies making their products available more cheaply online.

The CMA also demanded better information for consumers on the costs and benefits of no-claims bonus protection.

But it "reluctantly" decided not to recommend any changes to the current system of providing replacement hire cars for drivers following an accident, despite the fact they increase the average insurance premium by £3 a year.

The CMA said there was "no appropriate remedy", but the Association of British Insurers (ABI) said it was "bad news for consumers" and said the watchdog had "ducked" the issue.

The measures follow wider efforts to bring down the cost to drivers of personal injury claims and fraud, with premiums falling 19% in the last year alone to a four-year low.

Alasdair Smith, chairman of the private motor insurance investigation group at the CMA, said: "There are over 25 million privately registered cars in the UK and we think these changes will benefit motorists who are currently paying higher premiums as a result of the problems we've found.

"There need to be improvements to the way price comparison websites operate.

"They certainly help motorists look for the best deal, and this in turn has led insurers to compete more intensely, but we want to see an end to clauses which restrict an insurer's ability to price its products differently on different online channels.

"We expect this to lead to greater competition between price comparison websites."

He also moved to explain the lack of action on the cost of post-accident services to drivers who are not at fault in an accident, in particular temporary replacement cars.

He said: "Reluctantly we have had to conclude that we cannot see an effective way of addressing this problem fully short of a fundamental change in the law and, whilst this problem does increase premiums for motorists, the extent of the problem is not as high as was at first envisaged and does not warrant such a radical measure.

"However, we do wish to challenge the benchmarks typically used in awards for non-fault replacement cars, which do not reflect the cost of the services provided and which we think should be lower."

James Dalton, the ABI's head of motor insurance, said: "Today's CMA report is the culmination of three years of work and has cost taxpayers millions of pounds.

"The fact that it fails to do anything to address the excessive costs of replacement vehicles - a problem that the CMA itself identified - will be a bitter pill to swallow for honest motorists.

"Far from reducing the cost of car insurance, the CMA's inaction simply entrenches the business models of some replacement vehicle providers who profit from inflating car hire charges at the consumer's expense.

"The reality is that the CMA has ducked this challenge and when regulators fail, politicians need to step in to act."

18.56 | 0 komentar | Read More

iPhone 6 Reportedly Bends In Tight Pockets

Apple's new iPhone 6 models may bend substantially if put into a tight pocket for a prolonged period of time, some users claim.

A record 10-million units of the phone were sold within two days of the Friday launch, but some users have complained that their device is more fragile than they expected.

One user, Nelson Cardoz, posted a photograph of a misshapen phone on Twitter with the message: "The iPhone 6 could bend in your pocket! Haha, love you Apple."

He told Sky News that when he contacted Apple about the problem they offered to replace his device.

A YouTube channel called Unbox Therapy uploaded a video of a man using a tight grip to bend the phone out of shape.

The bend appears to occur just below the side-mounted volume buttons.

However, website Cult Of Mac said some users reported similar complaints about the iPhone 5s, as well as Sony, Samsung, BlackBerry and HTC smartphones.

On Monday Apple chief executive Tim Cook said the iPhone 6 and 6 Plus launch was its "best ever", and had "shattered" all previous sales records.

The iPhone 6 Plus is Apple's largest ever phone, and features a 5.5-inch screen. The increased size and reduced thickness may be responsible for the bending.

18.56 | 0 komentar | Read More

Trinity Mirror Agrees Ten Hacking Payouts

Trinity Mirror is to pay compensation to ten celebrities over alleged phone hacking - acknowledging its involvement in the practice for the first time.

The publisher of titles including the Daily Mirror and Sunday People admitted liability to four people but did not identify them.

The individuals are Eastenders star Shane Richie, who plays Alfie Moon, and Lucy Benjamin who left the soap in 2010 as well as fellow actor Shobna Gulati and the BBC's creative director Alan Yentob.

Those who have already received undisclosed payments are former England football manager Sven-Goran Eriksson, actor Christopher Eccleston and David and Victoria Beckham's former nanny, Abbie Gibson.

Sven-Goran Eriksson is among those to have already been compensated

It has also agreed to pay ex-footballer Garry Flitcroft, celebrity agent Phil Dale, and Christie Roche, Shane Ritchie's wife.

The Trinity Mirror statement said: "The company today confirms that its subsidiary MGN Ltd has admitted liability to four individuals who had sued MGN for alleged interception of their voicemails many years ago.

"MGN has apologised to those individuals and agreed to pay compensation. The amount of that compensation will be assessed by the court if it cannot be agreed.

"The company can also confirm that six other voicemail interception claims have already been settled for agreed sums".

Trinity Mirror said in July that it had set aside £4m to deal with civil claims over phone-hacking allegations.

In the same month, reporter Dan Evans was given a suspended prison sentence after he pleaded guilty to two charges of conspiring to hack phones.

One charge related to his time at the Sunday Mirror between 2003 and 2005, the other to his subsequent employment from 2004 to 2010 at the now-closed News of the World.

18.56 | 0 komentar | Read More

Tesco Profit Error: Could Something Be Amiss?

By Ian King, Business Presenter

Even from a lesser company, three profits warnings inside a year would be startling.

Coming from a blue-chip stalwart like Tesco, it is nothing short of astonishing.

In issuing a profits warning on top of a profits warning, Britain's biggest food retailer almost seems to be taking to an extreme the strategy so commonly seen in its stores, with three for the price of two.

So what exactly has Dave Lewis, the new chief executive, uncovered?

Well, in its own words, Tesco has identified an overstatement of its expected profit for the half-year, principally due to the accelerated recognition of commercial income and delayed accrual of costs.

In other words, the reporting of costs incurred in the first half of the year appears to have been delayed so they are pushed into the second half, while profits enjoyed during the second half of the year appear to have been brought forward into the first half.

Mr Lewis' response indicates there may be more to this mistake

It is unclear what kind of activities generated these profits, but commercial income, with regard to supermarkets, could mean rebates from third-party suppliers or payments from those suppliers to incentivise Tesco to give their goods better positions when they are displayed in its stores.

This latter practice is common place in the supermarket sector and, having worked previously at Unilever, Mr Lewis will be familiar with it.

The overall effect of these two actions will have been to pretty-up Tesco's first-half numbers.

Cynics will suggest Mr Lewis has every reason to restate the numbers lower - after all, the period, the six months to August 23, was when his predecessor, Philip Clarke, was at the helm.

Some would say it is in Mr Lewis' interests to ensure that period is painted in as bad a light as possible in order to make any subsequent turnaround under him look better.

Tesco shares have fallen over 40% in the last year

It's known as "kitchen sinking" in the City - where every possible bad bit of news, including the proverbial kitchen sink, is thrown into the accounts to make them look bad.

But the sheer size of this overstatement, £250m, would suggest this is a bit more serious.

So is Mr Lewis' response: the suspension of four of Tesco's UK executives, his recruitment of the top City lawyers Freshfields to investigate and his hiring of outside auditors from Deloitte - Tesco's regular auditor is PwC - to examine what has happened.

At this time, there is no suggestion that anything illegal has been happening. After all, all businesses occasionally recognise revenues early or take their time to recognise costs in the accounts.

Yet the sheer aggression of the accounting policy in this instance and Mr Lewis' response to discovering it rather suggests he thinks something may be amiss.

And, with plenty of American investors - who tend to be more litigious than their European counterparts - on Tesco's shareholder base,  he is doing the prudent thing in checking this out as thoroughly as possible.

18.56 | 0 komentar | Read More

Tesco Finance Chief 'Absent For Five Months'

Tesco Profit Error: Could Something Be Amiss?

Updated: 9:35am UK, Tuesday 23 September 2014

By Ian King, Business Presenter

Even from a lesser company, three profits warnings inside a year would be startling.

Coming from a blue-chip stalwart like Tesco, it is nothing short of astonishing.

In issuing a profits warning on top of a profits warning, Britain's biggest food retailer almost seems to be taking to an extreme the strategy so commonly seen in its stores, with three for the price of two.

So what exactly has Dave Lewis, the new chief executive, uncovered?

Well, in its own words, Tesco has identified an overstatement of its expected profit for the half-year, principally due to the accelerated recognition of commercial income and delayed accrual of costs.

In other words, the reporting of costs incurred in the first half of the year appears to have been delayed so they are pushed into the second half, while profits enjoyed during the second half of the year appear to have been brought forward into the first half.

It is unclear what kind of activities generated these profits, but commercial income, with regard to supermarkets, could mean rebates from third-party suppliers or payments from those suppliers to incentivise Tesco to give their goods better positions when they are displayed in its stores.

This latter practice is common place in the supermarket sector and, having worked previously at Unilever, Mr Lewis will be familiar with it.

The overall effect of these two actions will have been to pretty-up Tesco's first-half numbers.

Cynics will suggest Mr Lewis has every reason to restate the numbers lower - after all, the period, the six months to August 23, was when his predecessor, Philip Clarke, was at the helm.

Some would say it is in Mr Lewis' interests to ensure that period is painted in as bad a light as possible in order to make any subsequent turnaround under him look better.

It's known as "kitchen sinking" in the City - where every possible bad bit of news, including the proverbial kitchen sink, is thrown into the accounts to make them look bad.

But the sheer size of this overstatement, £250m, would suggest this is a bit more serious.

So is Mr Lewis' response: the suspension of four of Tesco's UK executives, his recruitment of the top City lawyers Freshfields to investigate and his hiring of outside auditors from Deloitte - Tesco's regular auditor is PwC - to examine what has happened.

At this time, there is no suggestion that anything illegal has been happening. After all, all businesses occasionally recognise revenues early or take their time to recognise costs in the accounts.

Yet the sheer aggression of the accounting policy in this instance and Mr Lewis' response to discovering it rather suggests he thinks something may be amiss.

And, with plenty of American investors - who tend to be more litigious than their European counterparts - on Tesco's shareholder base,  he is doing the prudent thing in checking this out as thoroughly as possible.

18.56 | 0 komentar | Read More

Tesco Profit Error: New Finance Boss Rushed In

Tesco has managed to secure the services of its new chief financial officer more than two months early - a day after revealing a £250m profits error.

Alan Stewart had in July quit the same role at Marks & Spencer to join Tesco but was forced to take a period of so-called 'gardening leave'.

The supermarket chain said today that he would start work on Tuesday, rather than the previously announced date of December 1.

Tesco wanted to get Stewart early after revealing on Monday an accounting issue that had led it to overstate its first half profit forecast by £250m.

Alan Stewart joins Tesco today from M&S

It was later revealed that four executives in its UK business had been suspended as an inquiry examines the way rebates paid by suppliers were treated and whether they were reported in the right time period.

Its shares lost 12% of their value on the FTSE 100 in the hours after the announcements and the decline continued on Tuesday.

Tesco has been without a finance chief since Laurie McIlwee officially left the business earlier this month though Sky News learned today he had not been at its HQ since April - raising further the pressure on chairman Sir Richard Broadbent.

The supermarket's new chief executive, Dave Lewis, only started in the job at the beginning of September following the sacking of Philip Clarke on the eve of his 40th anniversary at the retailer.

A spokesman for M&S said the firm released Stewart after a personal appeal from Lewis to M&S chief executive Marc Bolland.

"It was a request from Dave to Marc ... We felt it was the right thing to do," he said, adding that Tesco did not pay any compensation for Stewart's early release.

The development emerged as new industry figures showed the extent of the challenge facing Tesco on the shop floor.

Waitrose is snapping at the heels of Tesco's wealthier customers

Kantar Worldpanel reported that while the chain's market share remained unchanged at 28.8% in the 12 weeks to September 14, its sales were down 4.5%.

Of the so-called 'Big Four', only Asda appeared to be holding off the challenge from the hard discounters at the bottom of the market and Waitrose at the top.

Fraser McKevitt, head of retail and consumer insight at Kantar, said: "Consumers are currently benefiting from intense price competition between the grocers.

"For the first time ever we've seen the average basket of everyday goods bought today costing exactly the same as it did a year ago. 

"Some staple groceries such as vegetables, milk and bread prices are actually falling as the big retailers all compete for a bigger slice of shoppers' wallets.

"Aldi has continued its run of double-digit growth, which now stretches back to February 2011, by recording a sales increase of 29.1% compared with last year.

"Similarly, Lidl has increased sales by 17.7%, showing that shoppers still have a strong appetite for the discount stores.

"At the other end of the market Waitrose has grown its sales faster than in previous months, up 4.5%, which has brought its market share back up to 5.1%".

18.56 | 0 komentar | Read More

EE Buys 58 Phones 4U Stores: '360 Jobs Saved'

Mobile phone operator EE said it would buy 58 Phones 4U outlets, saving almost 360 jobs from the collapsed retailer.

The £2.5m deal, made through administrator PricewaterhouseCoopers (PwC), comes after Vodafone said on Friday it would buy 140 stores.

PwC joint administrator Rob Hunt said: "We are absolutely delighted to have completed this further disposal of 58 Phones 4u stores, which will both recover value for secured creditors and save 359 jobs."

On Friday, Vodafone said it would buy 140 stores, saving 900 staff jobs.

Mr Hunt added: "As with the Vodafone transaction, we consider that this represents the best potential outcome for creditors in the circumstances, although it remains subject to the approval of the UK courts."

The units will be rebranded with the EE logo

Phones 4U went into administration last week after EE, Britain's biggest mobile operator, said it would not renew its contract next year with the independent phone chain.

That announcement put at risk 5,600 jobs, along with 560 stores and 160 Phones 4U concessions across the country.

The decision left the chain without a network partner following Vodafone's earlier withdrawal, sparking a public dispute between Phones 4U's owner - the private equity group BC Partners - and the network operators.

Recently merged group Dixons Carphone said it would employ 800 staff from the 160 concessions located within Currys and PC World outlets.

EE did not reveal the location of the 58 stores it would buy, but said the 359 employees would be transferred with immediate effect.

The company said the stores would be rebranded as soon as possible and that most are expected to re-open under the EE name next week.

The networks have denied attempting to profit from the retailer's collapse, despite accusations from John Caudwell, Phones 4U's founder, that they had behaved "ruthlessly".

Documents seen by Sky News City Editor Mark Kleinman showed that on July 8, while discussions were taking place about extending Vodafone's distribution contract with Phones 4U, the mobile network's UK executives made a presentation to group colleagues entitled "Phones 4U - Partner of Choice".

Several weeks later, Vodafone notified Phones 4U that it would not be renewing their agreement, while no further talks about a takeover of the company were held.

Mr Hunt added:  "As with the Vodafone transaction, we consider that this represents the best potential outcome for creditors in the circumstances, although it remains subject to the approval of the UK courts."

18.56 | 0 komentar | Read More

Tesco Suspends Bosses Over £250m Profit Error

Tesco has suspended four senior executives after it revealed an accounting error overstated its first-half profit by £250m.

CEO Dave Lewis said that "a number of people" have been suspended while an internal investigation is under way, including the four senior executives.

Sky News understands that Carl Rogberg, Tesco UK finance director, is one of the four executives suspended.

One of the other executives suspended is UK managing director Chris Bush.

Shares were down more than 11% in early trading, before easing slightly to around 8% down. Its stock price is down more than 43% in the last year.

Tesco shares have fallen more than 40% in the last year

Britain's biggest supermarket chain said it has commissioned an independent review to uncover the cause of the profit miscalculation.

Tesco said in a statement: "On the basis of preliminary investigations in to the UK food business, the board believes that the guidance issued on 29 August 2014 for the group profits for the six months to 23 August 2014 was overstated by an estimated £250m.

"Some of this impact includes in-year timing differences. Work is ongoing to establish the extent of these issues and what impact they will have on the full year."

Tesco CEO Dave Lewis (l) and UK managing director Chris Bush (r)

Tesco said that the overstatement of profits could be due to many issues related to the commercial income of the business, and it could be related to "payments to suppliers" being reported in the wrong financial reporting period.

The statement added: "The board has asked Deloitte to undertake an independent and comprehensive review of these issues, working closely with Freshfields, the group's external legal advisers.

"We will provide a further update at our interim results, which will now be announced on the 23 October 2014."

Tesco has issued a series of income warnings in the last year, with the latest at the end of August when it said trading profit was forecast to be around £1.1bn.

Tesco shares are now worth less than they were 10 years ago

That profit figure is now likely to be reduced to £850m.

Sky News City Editor Mark Kleinman described the accounting error as a "humiliation" for the embattled group.

Regulators are now expected to launch their own inquiries into the profit over-estimation.

Last November, an analyst at stockbroker Cantor Fitzgerald accused Tesco of squeezing suppliers ahead of release of lacklustre trading figures.

The company denied the claim and said the assertions of demanding money from suppliers' trading accounts were "based on speculation".

Tesco has come under increasing pressure in the ongoing supermarket price war, with the rise of discounters Aldi and Lidl, and margin-squeezing of the big four chains.

Chief executive Dave Lewis, who started in the role on September 1, said: "We have uncovered a serious issue and have responded accordingly."

Mr Lewis took control of Tesco after former boss Philip Clarke failed to halt a slide in profit and sales.

Mr Clarke was ousted by the Tesco board in late July as he was preparing to celebrate 40 years with the retailer.

18.56 | 0 komentar | Read More

Balls To Freeze Child Benefit To Balance Books

Ed Balls has told his party's conference a child benefit freeze, a cut in politicians pay and higher tax for top earners will form part of Labour's plan to bring the deficit down.

The shadow chancellor presented a 1% cap on rises for the first two years of a Labour government as one of the "tough decisions" necessary to deal with the deficit if the party takes power next year.

In a speech in Manchester, Mr Balls hit out at the "unfair, out-of-touch and failing Tory government", and pledged to raise the minimum wage, and scrap the so-called bedroom tax.

New free schools would also be blocked in areas where there is an excess of pupil places, police and crime commissioners would be scrapped, and the controversial 'shares for rights' plans ditched.

Mr Balls says a cap in child benefit rises will save £400m

And Mr Balls said the party should apologise for mistakes it made when in power, including on immigration.

"We are tough enough to make the difficult decisions," he insisted.

He went on: "It's the oldest truth in the book - you can never, ever trust the Tories with the NHS.

"We don't just need to learn from our mistakes we also need to put right mistakes this government is making.

"So we won't pay for free schools in areas where there are excess school places"

"The next Labour government will scrap the bedroom tax, too.

"Scrap police and crime commissioners so that we can do more to help front line policing.

A 5% cut in ministerial salaries is also on the cards

"We won't spend money we can't afford."

Mr Balls added: "The Labour government will reduce this Tory tax cut for billionaires because we'll balance the budget in a fairer way.

"Walking away from Europe would be a disaster for British jobs…. This party will always put the national interest first.

"Ambitious, performing, doing what it takes to deliver… that's the kind of chancellor I'd like to be, too.

"I'm pro-business - but not business-as-usual.

"We have learned from our past and our mistakes."

Mr Balls added: "Three years of lost growth at the start of this parliament means we will have to deal with a deficit of £75bn - not the balanced budget George Osborne promised by 2015. And that will make the task of governing hugely difficult.

"People know we are the party of jobs, living standards and fairness for working people. But they also need to know that we will balance the books and make the sums add up and that we won't duck the difficult decisions we will face if they return us to government.

"Working people have had to balance their own books. And they are clear that the Government needs to balance its books too."

Speaking on Sky News ahead of his appearance Mr Balls said he would not "duck or flinch" from the tough decisions and he defended claims the savings provided by the measures would be miniscule.

He said the child benefit move would save £400m in the next parliament, plans to end the winter fuel allowance for rich pensioners would bring an extra £100m a year of savings and the introduction of a 50p tax rate for those earning more than £150,000 would bring in £3bn.

Under austerity measures introduced by the coalition, child benefit was frozen from 2010 to this year.

Labour also plans to cut ministerial salaries - taking £7,125 off the Prime Minister's annual wage, and £6,728 from Cabinet ministers.

Child benefit rose by 1% in April and is due to rise by the same amount in 2015/16, but Mr Balls will commit to extending below-inflation hikes for at least one more year.

The party also has plans to raise the minimum wage to £8 an hour, and introduce a jobs guarantee for young people and the long-term unemployed funded by a tax on bank bonuses and limiting pensions tax relief for the highest earners.

Treasury Exchequer Secretary Priti Patel poured scorn on Mr Balls' plan for the economy, claiming Labour would put the deficit up, not down.

"These savings on ministerial pay only cut a miniscule fraction of the deficit - less than 1% of 1%.  And it comes just days after the Institute for Fiscal Studies said Labour's economic policy means £28bn extra borrowing," she said.

The Children's Society said Labour's plans to freeze child benefit would leave the average family more than £400 a year worse off by 2017 and urged the shadow chancellor to reconsider.

18.56 | 0 komentar | Read More

Carphone And EE Pick Over Phones 4U Carcass

By Mark Kleinman, City Editor

The parent company of Carphone Warehouse and EE, the UK's biggest mobile phone network, are this weekend hammering out deals to buy scores of Phones 4U stores in a move that would save hundreds of jobs at the troubled retailer.

Sky News has learned that EE is negotiating a deal with PricewaterhouseCoopers (PwC) to acquire as many as 60 shops, while Dixons Carphone has set its sights on approximately 50 of Phones 4U's remaining outlets.

PwC is understood to be keen to tie up the deals with EE and Dixons Carphone during the course of the weekend, after which they will turn their attention to attempting to sell the Phones 4U brand, stock and Life, its mobile virtual network operator, which rents spectrum from EE.

Sources close to the administrator said that Dixons Carphone had expressed an interest in taking ownership of other Phones 4U assets, while EE is expected to acquire Life.

Dixons Carphone has already salvaged 800 Phones 4U jobs by agreeing a deal to take over 160 concessions in Currys and PC World stores.

On Friday, Vodafone struck a deal to buy 140 Phones 4U shops, rescuing nearly 900 jobs, at the same time as 628 of the retailer's head office staff were being made redundant by PwC.

Even if the two store transactions are completed with Dixons Carphone and EE, thousands of jobs would still be at risk at Phones 4U, which was forced into administration last week when EE notified the company that it was terminating a distribution agreement which expires next year.

That decision left the chain without a network partner following Vodafone's withdrawal, sparking a public dispute between Phones 4U's owner – the private equity group BC Partners – and the network operators.

Sky News revealed earlier this week that Vodafone and EE had held talks in recent months about a joint takeover of Phones 4U but that the negotiations had stalled over competition issues.

The networks have denied attempting to profiteer from the retailer's collapse, despite accusations from John Caudwell, Phones 4U's founder, that they had behaved "ruthlessly".

Documents seen by Sky News show that on July 8, while discussions were taking place about extending Vodafone's distribution contract with Phones 4U, the mobile network's UK executives made a presentation to group colleagues entitled "Phones 4U - Partner of Choice".

Several weeks later, Vodafone notified Phones 4U that it would not be renewing their agreement, while no further talks about a takeover of the company were held.

18.56 | 0 komentar | Read More

Richard Branson Tops 'Most Admired' Boss Poll

Branson's Virgin To Pilot New Cruises Venture

Updated: 1:16pm UK, Friday 28 February 2014

By Mark Kleinman, City Editor

Sir Richard Branson is drawing up plans for a secret assault on the international cruises sector which will involve raising hundreds of millions of pounds in funding from external investors.

Sky News can reveal that Virgin Group has appointed the US-based corporate advisory firm Allen & Co to oversee the development of a cruise operation that would eventually aim to compete with industry giants including Carnival Corporation.

Virgin has been working with Allen & Co on a range of potential opportunities across the wider leisure sector, including an investment in a four-star city centre concept called Virgin Hotels.

The development of Virgin Cruises, which is expected to be the name of the new venture, is at an early stage, people close to the project cautioned on Friday.

However, Virgin executives and their advisers have already held detailed talks with banks about raising an estimated $1bn (£598m) of debt to finance the acquisition of the company's first vessels.

They also want to raise in the region of $700m (£418m) of equity by selling stakes in Virgin Cruises to outside investors.

Sir Richard and Josh Bayliss, chief executive of Virgin Management, are understood to believe the global cruises sector possesses many of the same characteristics which have led Virgin to build a significant presence in sectors such as aviation, rail and mobile telecoms.

The cruise market is dominated by fewer than a handful of companies, such as the FTSE-100 group Carnival, Royal Caribbean and Norwegian. Between them, the three companies have a global market share of approximately 80%.

"Cruises is a classic Virgin market, dominated by two or three players and where the product needs to be refreshed," an insider said.

The industry is forecast by Cruise Market Watch, an industry research group, to grow from 21.5 million passengers this year to 22.2 million passengers carried worldwide in 2015.

Virgin Cruises is expected to be headquartered in the US, reflecting North America's status as the world's biggest cruise market, the source said.

Globally, the industry is likely to generate revenue of $37.1bn (£22.2bn) this year, a 2.3% increase on 2013.

The plans for the launch of Virgin Cruises emerge as Sir Richard targets a flotation of his domestic US airline, Virgin America.

The carrier, which recently undertook a debt restructuring covering roughly $300m (£179.8bn) of borrowing obligations, has hired investment banks to prepare the listing.

A successful flotation of Virgin America would echo the model used several times by Sir Richard to take some of his business ventures, such as Virgin Mobile, to the public markets.

He has also frequently sold stakes in his companies to outside investors, including the sale of shares in Virgin Money, his banking operation, to an entity in Abu Dhabi and Wilbur Ross, a prominent US investor.

Other plans involving Virgin companies this year include the opening of the first City Centre hotel in Chicago in the autumn, with other venues expected in US cities served by the group's airlines.

The plan to break into the cruises market comes weeks after the publication of a new biography of Sir Richard by the author Tom Bower.

Mr Bower claimed the company's maiden flight of its space tourism venture was facing further delays, while Virgin insists it is on track to take off this year.

A Virgin spokesman declined to comment.

:: Watch Sky News live on television, on Sky channel 501, Virgin Media channel 602, Freeview channel 82 and Freesat channel 202.

18.56 | 0 komentar | Read More

Miliband Sets Out Plan For £8 Minimum Wage

Labour leader Ed Miliband has pledged to raise the national minimum wage to at least £8 an hour if he becomes Prime Minister.

The minimum wage is due to rise from £6.31 an hour to £6.50 on October 1, but Mr Miliband plans to add £1.50 an hour on to that by 2020.

The increase would add around £60 a week, or £3,000 a year, to the pay packets of workers currently on the minimum wage.

One in five UK workers - more than five million people - are categorised as being on low pay, defined as wages of less than £7.71 an hour.

Speaking to the Sunday Mirror, Mr Miliband said: "Too many working people have made big sacrifices but in this recovery they're not seeing the rewards for their hard work because, under the Tories' failing plan, the recovery is benefiting a privileged few far more than most families.

"One in five of the men and women employed in Britain today do the hours, make their contribution, but find themselves on low pay.

"But if you work hard, you should be able to bring up your family with dignity."

Mr Miliband added: "This week Labour's Plan for Britain's Future will show how we can change and how we can become a country that rewards hard work once again. Because Labour is the party of hard work, fairly paid."

The announcement comes on the eve of Labour's annual conference in Manchester - the last before next year's general election.

The planned increase, which would affect around 1.4 million jobs, would be introduced in annual stages by the Low Pay Commission before October 2019.

The promised rate is said to be similar to that in force in Australia and EU countries such as Belgium and Germany, but still lower than in France and New Zealand.

18.56 | 0 komentar | Read More

Alibaba Bigger Than Facebook On Market Debut

Alibaba Boss Like A Rock Star At 'Epic' IPO

Updated: 7:22pm UK, Friday 19 September 2014

By Hannah Thomas-Peter, New York Correspondent

As Jack Ma swept past me on the floor of the New York Stock Exchange, I asked him how he was feeling.

He smiled at me, waved and mouthed "ok" before turning to a bank of cameras trained on the founder and spiritual leader of Alibaba.

"Ok," felt like a bit of an understatement.

Such was the demand and volume associated with the Alibaba IPO it took nearly two-and-a-half hours for the New York Stock Exchange's designated market maker (DMM) to decide on the right opening price.

The DMM is a person, not a computer. In this case it was Barclays' Glenn Carell.

He was also the DMM for the Twitter IPO, and is responsible for gauging appetite and supply, honing in on the right opening price for a stock.

It's a big job.

If there are technical problems he can override the system and trade on paper.

If there's uncontrollable volatility he can use his company's own cash to step in and stabilise things.

He told Sky News: "This is a very exciting day for me.

"It's the biggest IPO ever, and we really want to get the best price for opening.

"We have to go slow and get it right."

As traders crowded in on Glenn communicating orders from clients, electronic requests also poured in from across the world, flashing up on screens in front of his team.

Over two hours the price indicator range, which helps investors know how much the shares will cost once trading begins, crept from around $80 to over $90.

"Investors really want this stock," said Meridian Partners trader Jonathan Corpina.

"They see a very well-diversified company with huge international exposure.

"Even if US investors don't know the brand name, the product is easy to understand, and it's a good one."

As Glenn yelled "we're getting close!" the traders bunched together like rugby players in a scrum, whoops rang out, tension rose.

"Come on Glenn what's the price? Close it, close it," muttered one trader, his electronic trading tablet buzzing and beeping with impatient clients.

"$92.70!" came the shout, and trading began, starting with a short-lived 'pop' up to $99, before settling back down in Glenn's predicted range.

"Phew" said one NYSE executive to another.

"I tell you, that was pretty epic."

Glenn looked relieved as trading continued smoothly, confessing he would be having a glass of champagne later that evening.

Jack Ma may well do the same.

As he left the exchange to get in to his car, it was as if a rock star had left his concert.

Fans yelled and screamed and cheered and photographed for all they were worth.

Ma waved, smiled and slipped in to a waiting SUV.

18.56 | 0 komentar | Read More

Wellcome Trust Toasts £100m Alibaba Profit

By Mark Kleinman, City Editor

Britain's biggest medical research charity is toasting a £100m-plus profit from the flotation of Alibaba Group, the Chinese internet giant that on Friday became the biggest technology company listing ever.

Sky News has learned that at the $68-a-share (£42) pricing settled upon by bankers advising Alibaba, the Wellcome Trust is sitting on a substantial paper windfall from two separate investments it made in the company's shares in recent years.

The news represents a significant boost for medical research funding in the UK and underpins the Wellcome Trust's highly-regarded investment strategy, led by its chief investment officer, Danny Truell.

Jack Ma, Alibaba's founder and now a multibillionaire as a consequence of the company's flotation, was present for the opening bell at the New York Stock exchange on Friday.

The share sale is eventually expected to raise $25bn (£15.3bn), making it the biggest initial public offering in history, once an over-allotment option is exercised.

The Wellcome Trust owns significantly less than 1% of Alibaba stock

It has overtaken Agricultural Bank of China's $22.1bn (£13.5bn) fundraising in 2010 and Facebook, which sold more than $16bn (£9.8bn)  of shares in 2012 to become the biggest-ever technology company listing.

Sky News disclosed the Wellcome Trust's investment in Alibaba in March.

Insiders said the Wellcome Trust, which is one of the world's most renowned medical research organisations, owns significantly less than 1% of Alibaba's shares, although the exact size of its holding is unclear.

A Wellcome Trust spokesman declined to comment.

Alibaba, which is headquartered in Hangzhou, one of China's so-called second-tier cities, has become a major player in the country's e-commerce industry.

It acts as an eBay-style intermediary in the supply and sale of goods online, having established marketplaces targeted at small business traders and consumers.

Using the brand-name Taobao, an e-shopping platform that in China has more than 500 million customers, Jack Ma, Alibaba's founder and chairman, has become one of the world's most successful technology entrepreneurs.

Talks between Alibaba and the Hong Kong Stock Exchange ended without success because of the company's desire to create an alternative shareholding structure that would have given executives additional control over the company.

18.56 | 0 komentar | Read More

Hundreds Of Phones 4U Jobs Saved

Almost 900 jobs at collapsed retail chain Phones 4u have been saved after network operator Vodafone struck a deal to buy 140 stores.

However, administrator PwC said it had failed to prevent 628 redundancies among head office and telesales staff at Phones 4u's Staffordshire offices.

PwC is continuing talks with other parties regarding the purchase of assets and said it planned to retain a further 400 head office staff to assist with its work.

It will release details of the 140 stores in the Vodafone deal on Monday.

Phones 4u went into administration last Monday following EE's decision not to renew its contract.

The firm employed 5,600 workers at 560 Phones 4u stores and a further 160 concession outlets.

Dixons Carphone said on Wednesday it will take on the 800 staff who worked at 160 Phones 4u sites within Currys/PC World stores.

Now Vodafone UK has made an offer to buy 140 stores following an approach from PwC.

Phones 4u has been in difficulty for some time

It said: "Our offer was accepted by the administrator and we are pleased to report that approximately 900 (887) former Phones 4u employees will keep their jobs and join our dynamic retail business.

"Subject to court approval, we will start engaging with these employees and begin the rebranding of the stores to Vodafone as soon as possible."

Store staff have been asked to remain at home while talks take place with parties interested in buying parts of the estate.

PwC partner Rob Hunt said: "It is with great sadness and regret that we have today made the difficult decision to make 628 head office and telesales staff redundant.

"Our thoughts are with those employees at this difficult time. We will make every effort to help the affected staff, working with the Phones 4u HR team over the coming days to support employees."

Various deals to rescue Phones 4u have been considered but all have stalled.

They included a debt-for-equity swap in which bondholders would have wiped out an estimated £760m of debt to reopen contract talks with EE and Vodafone.

EE and other network operators have been accused of a "co-ordinated attempt to kill off" Phones 4u - a claim they have all denied.

18.56 | 0 komentar | Read More

Shares Rise But Pound Flat As Scots Vote No

Scottish Referendum: What They're Saying

Updated: 10:01am UK, Friday 19 September 2014

Supporters of both the Yes and No campaigns have been giving their reactions to Scotland's decision to reject independence.

Prime Minister David Cameron: "The people of Scotland have spoken and it is a clear result. They've kept our country of four nations together and like millions of other people, I am delighted.

"As I said during the campaign, it would have broken my heart to see our United Kingdom come to an end and I know that this sentiment was shared not just by people across our country but also around the world.

"Now the debate has been settled for a generation, or as Alex Salmond has said, perhaps for a lifetime. So there can be no disputes, no reruns - we have heard the settled will of the Scottish people.

Scotland's First Minister Alex Salmond: "Scotland has by majority decided not at this stage to become an independent country and I accept that verdict of the people, and I call on all Scots to follow suit in accepting the democratic verdict of the people of Scotland.

"The process by which we have made our decision as a nation reflects enormous credit upon Scotland.

"A turnout of 86% is one of the highest in the democratic world for any election or any referendum in history - this has been a triumph for the democratic process and for participation in politics."

Better Together campaign chair Alistair Darling: "The people of Scotland have spoken. We have chosen unity over division and positive change rather than needless separation."

Author and Better Together supporter J K Rowling: "Been up all night watching Scotland make history. A huge turnout, a peaceful democratic process: we should be proud."

Scottish Deputy First Minister Nicola Sturgeon: "This campaign has been a joy to be part of, it's quite unlike anything I've ever been part of in my life before.

"As have thousands and thousands of others, I have given my heart and soul to this campaign but what has been amazing are the number of people who have never been involved in politics before, who have never campaigned as part of a political movement before, who have got involved."

Deputy Prime Minister Nick Clegg: "I'm absolutely delighted the Scottish people have taken this momentous decision to safeguard our family of nations for future generations.

"In a dangerous and uncertain world I have no doubt we are stronger, safer, and more prosperous together than we ever could be apart.

"But a vote against independence was clearly not a vote against change and we must now deliver on time and in full the radical package of newly devolved powers to Scotland.

Better Together's Jim Murphy: "We are going to have to make a success of the decision Scotland has made.

"While I'm delighted, there is no time or space for triumph and we have got to get on and offer that devolution package we offered and unite the country around that.

Archbishop of Canterbury Justin Welby: "Over the past few weeks the campaign has touched on such raw issues of identity and been so closely fought that it has generated profound questioning and unsettlement far beyond Scotland.

"The decision by the Scottish people to remain within the United Kingdom, while deeply disappointing to many, will be welcomed by all those who believe that this country can continue to be an example of how different nations can work together for the common good within one state.

UKIP leader Nigel Farage: "The way that Westminster handled this was abysmal from the start.

"A series of promises were made on behalf of the English. The English are 86% by population of this union, they've been left out of all of this ( The Barnett formula) for the past 18 years ... what most English people want is a fair settlement."

Scottish Conservative leader Ruth Davidson: "Scotland had the biggest, broadest conversation about our future. We have to come together again & move forward together. It's all our home."

Northern Ireland's First Minister Peter Robinson: "Delighted Scotland has voted to remain in the Union.  We are better together."

Welsh First Minister Carwyn Jones: "Pleased the people of Scotland have voted to remain in the Union – together we will shape a new constitutional future for the UK."

Conservative MP Mark Reckless on Twitter: "I am so pleased to be able to tell the children this morning that Mummy won't be becoming a foreigner."

18.56 | 0 komentar | Read More

GlaxoSmithKline Fined £297m For China Bribes

A Chinese court has fined GlaxoSmithKline (GSK) £297m - a record in the country - for bribing doctors and hospital officials to use its products.

The pharmaceutical firm confirmed the penalty imposed by the Changsha Intermediate People's Court in Hunan Province, saying it accepted that illegal activities took place and the fine would be paid through existing cash resources.

The Chinese state news agency, Xinhua, reported that Briton Mark Reilly, the former head of GSK in China, and other executives faced jail terms.

However, a GSK source told Sky News that Reilly was to be deported after being handed a three-year suspended sentence.

Mark Reilly used to run GSKCI

The London-listed firm's statement said the court found that "GSK China Investment (GSKCI)... offered money or property to non-government personnel in order to obtain improper commercial gains.

"The illegal activities of GSKCI are a clear breach of GSK's governance and compliance procedures; and are wholly contrary to the values and standards expected from GSK employees.

"GSK has published a statement of apology to the Chinese government and its people on its website.

"GSK has co-operated fully with the authorities and has taken steps to comprehensively rectify the issues identified at the operations of GSKCI.

"This includes fundamentally changing the incentive programme for its salesforces (decoupling sales targets from compensation); significantly reducing and changing engagement activities with healthcare professionals; and expanding processes for review and monitoring of invoicing and payments."

GSK chief executive Sir Andrew Witty added: "Reaching a conclusion in the investigation of our Chinese business is important, but this has been a deeply disappointing matter for GSK.

"We have and will continue to learn from this. GSK has been in China for close to a hundred years and we remain fully committed to the country and its people."

The investigation took a number of twists with a British man, who was hired as an investigator by GSK, being jailed for two-and-a-half years in August.

Peter Humphrey's health is said to be poor

Chinese authorities claimed Peter Humphrey illegally obtained Chinese citizens' personal information and sold it to companies including GSK.

GSK hired him after an anonymous email containing a sex tape of Reilly and his Chinese girlfriend was sent to senior management in January last year.

The email alleged corrupt practices in GSK's China operation.

GSK's ethical standards have also been called into question in Lebanon, Iraq, Jordan, Syria and Poland.

Its share price was almost 0.6% higher in the wake of the announcement.

18.56 | 0 komentar | Read More

Scotland Votes No: PM Promises New Powers

Devo Max: What New Powers Can Scotland Have?

Updated: 12:01pm UK, Friday 19 September 2014

David Cameron has pledged new powers for Scotland that some have said amount to Devo Max. However, it's not quite as clear cut as that.

What is Devo Max?

Scottish Parliament basically gets power over everything - apart from defence and foreign affairs. Maximum devolution.

Is that on offer?

No it's not, although some say David Cameron, Nick Clegg and Ed Miliband have come close to that.

What powers does Scotland already have?

It makes its own laws on health, education, law and order, environment, social services, housing, local government, tourism, agriculture, forestry, fisheries and some areas of transport. It can also raise or lower its income tax by 3p, but has not used this power.

What does Westminster have control of?

Defence, social security, immigration, benefits, foreign policy, employment, broadcasting, trade and industry, nuclear energy, oil, gas and electricity, consumer affairs and the constitution.

What powers will be given away in this quasi Devo Max deal?

It is not entirely clear. More power over setting income tax is definitely on the agenda, and control of housing benefits too. Holyrood is unlikely to get control over the oil take or corporation tax.

Under Gordon Brown's 12-point plan, giveaways include power over borrowing, job creation, social care and employment rights. The Scottish Parliament will also be confirmed as permanent, binding future governments to ensure its continued existence.

But what about England, Wales and Northern Ireland?

Well, Mr Cameron has also promised more powers for Wales and Northern Ireland and to listen to the "millions of voices of England". He has promised to address the problem of "English votes for English laws" or the West Lothian question as it is also called. 

At the moment Scotland's 59 MPs can vote on matters that affect all of the UK but English MPs cannot vote on Scottish matters where powers have been devolved to Holyrood. 

With the promise of new powers for Scotland's Parliament, it has led to calls of "unfair" and for England to get more powers and the Prime Minister has said he will deliver. A sort of devolution revolution, if you will. 

Leader of the House of Commons William Hague is in charge of drawing up these plans but do expect that the Lib Dems and Labour will have rival versions. No cross-party consensus has been reached as with devolved powers for Scotland.

Make no mistake, it's a major shake-up - and yes, it will be an election issue.

So when is all this going to happen?

Gordon Brown has tabled a House of Commons debate over his planned 12-point power giveaway and the timetable for its delivery in mid-October.

There intention is that a new draft law to be drawn up by January 25 (Burns Night). Alex Salmond has agreed to talks to thrash out the details of these new powers but he will clearly be trying to get as close to delivering Devo Max as he can - having lost the battle for independence. It will not be passed until after the General Election in May but as there is a cross-party agreement theoretically, this should not provide a problem.

But the plans for England, Wales and Scotland do not have to work to the same timetable. They could be far more contentious as the parties are unlikely to agree on plans. Any English votes for English laws will put Labour at a distinct disadvantage as it effectively loses 40 MPs if its Scottish politicians are not included.

In addition, English MPs may be reluctant to allow new powers for Scotland to go through when they don't know "what's in it for them". 

In short, this could get messy and take a very long time.

:: Watch live: Scottish referendum coverage now on Sky News Sky 501, Virgin Media 602, Freesat 202, Freeview 132.

:: Live coverage is also available on sky.com/news and Sky News for iPad and on your mobile phone.

18.56 | 0 komentar | Read More

Thousands Of Women Duped By Pyramid Scheme

Nine women have been found guilty for their role in a pyramid scheme which saw thousands of women lose at least £3,000 each.

The gang encouraged vulnerable women to "beg, borrow or steal" the cash needed to join the scam - and promised participants a payout of £24,000 within a matter of weeks.

But of the 10,000 people involved in the "Give And Take" ploy, 88% lost their entire investment - with some victims ploughing as much as £15,000 into the scheme.

Meanwhile, committee members behind the fraud pocketed up to £92,000 each, and were able to continue the scheme because their members were sworn to secrecy, and banned from writing about it.

At lavish parties held at a hotel run by one of the organisers, hopeful guests were told "you can't lose" in inspirational talks by the chairwoman of the scheme, Laura Fox.

Miles Bennett, prosecuting at Bristol Crown Court, said: "This wasn't a bunch of ladies sitting around playing bridge. This was a committee and Fox ruled these nights with a rod of iron.

"This was a pyramid promotional scheme where people were invited to give £3,000, with the promise they would receive £24,000. Wouldn't it be wonderful if life was that simple?

"It is clear that, blinded by the possibility of riches and quick bucks, people were quite prepared to ignore the obvious pitfalls of a pyramid scheme."

The Give And Take scheme, also known as Key To A Fortune, began in April 2008, and ran for 11 months.

It was only when a suspicious member of the public contacted Trading Standards did the scale of the scam come to light.

A total of eleven women, aged between 34 and 69, were prosecuted for their alleged involvement in the pyramid scheme.

Chairman Laura Fox, Carol Chalmers and Jennifer Smith-Hayes were found guilty of operating the pyramid scheme in 2012, and were each sentenced to nine months in prison.

Sally Phillips, Jane Smith and Rita Lomas were handed suspended prison sentences after they admitted promoting the scam.

Three others - Mary Nash, Susan Crane and Hazel Cameron - are due to be sentenced for operating and promoting Give And Take in October.

18.56 | 0 komentar | Read More

Scotland: Keep Up With Events As They Unfold

Decision Day For Scotland: Voters Go To Polls

Updated: 11:52am UK, Thursday 18 September 2014

People in Scotland have begun voting on whether the country should stay in the UK or become an independent nation.

Polling stations opened at 7am and people have until 10pm to cast their ballot, with the result expected to be known by breakfast time tomorrow.

Scottish First Minister Alex Salmond was pictured outside Ritchie Hall polling station in Strichen, Aberdeenshire, two hours after polls opened.

Mr Salmond, leading the Yes campaign, was joined by two first-time voters, 18-year-old Natasha McDonald and Lea Pirie, 28.

He gave both women a soft Yes toy as a mascot for their vote and the trio stopped for pictures on their way into the polling station.

Despite long days of campaigning, the First Minister said he managed to get a good rest on the eve of the vote.

Former Chancellor and leader of the Better Together campaign Alistair Darling was photographed with his wife Maggie and No campaigners in Edinburgh.

He was booed by some, but cheered by others, as he arrived at the polling station at the Church Hill Theatre in Edinburgh

He told reporters: "It's been a long, hard two-and-a-half year campaign, passions have been aroused on both sides, and understandably so because we are talking about the biggest single decision that any of us will ever take in our lifetime."

Earlier, former PM Gordon Brown arrived at the polling station at North Queensferry Community Centre, Fife, to cast his vote.

He shook hands with No campaign supporters, as well as one Yes voter, who were waiting for him in the mist.

After casting her vote, Deputy First Minister Nicola Sturgeon tweeted: "I've just voted #Yes to Scotland becoming an independent country. What a wonderful feeling."

Elsewhere, queues formed outside polling stations across the country from early morning as turnout was expected to be as high as 90%.

More than 2,600 schools, sports centres and local halls have opened their doors to voters.

Four million voters are being asked a simple question: "Should Scotland be an independent country?"

A Yes vote at the end of a hard-fought campaign will bring an end to the Union of the United Kingdom that has stood for 307 years.

After the polls close tonight, counting of the votes takes place at 32 regional centres all over Scotland.

Then, once each result is in, the numbers will be sent to the main counting centre in Edinburgh.

The earliest declarations, at around 2am on Friday, will include North Lanarkshire, Orkney, East Lothian and Perth and Kinross.

The latest, at 6am, is expected to be Aberdeen. Dundee is expected at 3am and Edinburgh and Glasgow at 5am.

:: Watch live: Scottish referendum coverage from 9pm on Sky News Sky 501, Virgin Media 602, Freesat 202, Freeview 132.

18.56 | 0 komentar | Read More

Decision Day For Scotland: Voters Go To Polls

People in Scotland have begun voting on whether the country should stay in the UK or become an independent nation.

Polling stations opened at 7am and people have until 10pm to cast their ballot, with the result expected to be known by breakfast time tomorrow.

Scottish First Minister Alex Salmond was pictured outside Ritchie Hall polling station in Strichen, Aberdeenshire, two hours after polls opened.

Mr Salmond, leading the Yes campaign, was joined by two first-time voters, 18-year-old Natasha McDonald and Lea Pirie, 28.

He gave both women a soft Yes toy as a mascot for their vote and the trio stopped for pictures on their way into the polling station.

Alex Salmond outside a polling station in Aberdeenshire

Despite long days of campaigning, the First Minister said he managed to get a good rest on the eve of the vote.

Former Chancellor and leader of the Better Together campaign Alistair Darling was photographed with his wife Maggie and No campaigners in Edinburgh.

He was booed by some, but cheered by others, as he arrived at the polling station at the Church Hill Theatre in Edinburgh

Voters queue in Glasgow

He told reporters: "It's been a long, hard two-and-a-half year campaign, passions have been aroused on both sides, and understandably so because we are talking about the biggest single decision that any of us will ever take in our lifetime."

Earlier, former PM Gordon Brown arrived at the polling station at North Queensferry Community Centre, Fife, to cast his vote.

He shook hands with No campaign supporters, as well as one Yes voter, who were waiting for him in the mist.

Better Together campaigner Alistair Darling with wife Maggie in Edinburgh

After casting her vote, Deputy First Minister Nicola Sturgeon tweeted: "I've just voted #Yes to Scotland becoming an independent country. What a wonderful feeling."

Elsewhere, queues formed outside polling stations across the country from early morning as turnout was expected to be as high as 90%.

More than 2,600 schools, sports centres and local halls have opened their doors to voters.

Gordon Brown outside a polling station in Fife

Four million voters are being asked a simple question: "Should Scotland be an independent country?"

A Yes vote at the end of a hard-fought campaign will bring an end to the Union of the United Kingdom that has stood for 307 years.

After the polls close tonight, counting of the votes takes place at 32 regional centres all over Scotland.

Then, once each result is in, the numbers will be sent to the main counting centre in Edinburgh.

The earliest declarations, at around 2am on Friday, will include North Lanarkshire, Orkney, East Lothian and Perth and Kinross.

The latest, at 6am, is expected to be Aberdeen. Dundee is expected at 3am and Edinburgh and Glasgow at 5am.

:: Watch live: Scottish referendum coverage from 9pm on Sky News Sky 501, Virgin Media 602, Freesat 202, Freeview 132.

18.56 | 0 komentar | Read More