FTSE Slips To One-Year Low On Growth Fears

The FTSE has closed at its lowest level in nearly a year with a crisis of confidence over the global recovery.

It came as there were warnings about a triple-dip recession in the Eurozone at the IMF's annual conference in Washington.

Data from Europe's biggest economy, Germany, points towards a serious slowdown, with exports falling 5.8% in August - the biggest monthly fall in five years.

The FTSE 100 Index ended the week 91.9 points lower at 6340.

It leaves London's top 100 listed companies worth £140bn less than they were just over a month ago, and at their lowest ebb since last October.

Video: The Week's Big Business Stories

Worries about the global economy, particularly in Europe and Asia, have been accompanied by a wave of selling in energy and commodity stocks due to a sharp fall in the price of oil.

The Ukraine crisis and spread of the deadly ebola virus have also added to fears.

Wall Street saw its worst week since May 2012, with the Dow Jones industrial average down to 16,544.

Germany's Dax was down 2%, extending its losses for the week to 4%, and France's Cac 40 fell by more than 1% on Friday.

On Wednesday, the IMF downgraded global growth for this year and next, and lowered its assessments of Germany, France and Italy.

However, it kept its UK growth estimate for this year static at 2.7%.

That prompted Chancellor George Osborne to warn: "I'd be the first to say we're at a critical moment because the Eurozone risks slipping back into recession and crisis and that is already having an impact on the UK."

Around 50% of UK exports go to the EU.

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Road Hauliers In Christmas Deliveries Warning

By Lisa Dowd, Midlands Correspondent

Hauliers are warning that a national shortage of lorry drivers could hit deliveries to shops and stores in the run-up to Christmas.

They say the cost of obtaining a licence and strict EU rules are putting off many would-be drivers.

"What we're concerned about is that as things start to ramp up around Christmas... there just simply won't be enough drivers available to make all the deliveries that are needed," said Natalie Chapman of the Freight Transport Association.

According to the organisation, 40% of lorry drivers are 50 or over, while just 1% are under the age of 25.

Chris Stevenson, 24, from Bloxwich, told Sky News he is desperate to become a lorry driver.

Chris Stevenson has spent a small fortune trying to get an HGV licence

"It's the freedom of the job really. Seeing a bit of the country, maybe seeing a bit if the world, doing continental driving, you can get around a bit - (it) beats being stuck in one place all the while."

However, three unsuccessful attempts to get his HGV licence have cost him £2,500 so far.

John Heighway, transport manager at Devaneys Haulage, says such costs and the image of the profession have resulted in too few young people wanting to join it.

"It's quite desperate really. We could have enough work for an extra 10 vehicles.

Hauliers fear the shops might not be so full this Christmas

"But we just don't have the drivers to cover it, so we just have to turn work down which is something we don't like doing."

That is great news for agency staff like Martins Svarcs from Latvia, who is working for the West Bromwich-based company.

"I'm working every day, five days a week, nine hours driving a day, so I'm happy."

But even temporary workers cannot fill all the vacant posts.

Martins Svarcs from Latvia has all the work he can handle

Hauliers say the problem is being made worse by EU rules which require experienced drivers to undertake further costly training - or face a large fine.

Roy Reynolds, 68, from Wolverhampton had been driving for 41 years and like many others decided to quit.

"Now regulations are coming in where you've got to go back to the classroom.

"I don't feel that I need to do that with the experience that I've gained over a number of years. It just seems pointless, so I decided to retire."

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Fears UK Will Be Hit By New Euro Recession

The euro crisis is back. But this time it's different.

That's the general gist of the discussions at the International Monetary Fund meetings in Washington this week.

For this time around the meetings - a key opportunity for policymakers to catch up on the state of the global economy - have coincided with a fresh bout of fear over the euro area.

This isn't the same kind of crisis the single currency faced a couple of years ago, when there were genuine worries that it might break up.

Instead, the concern is that it simply hasn't recovered fully from the recessions of recent years. Worse: it may soon slump back into another recession.

Leaders are looking to the European Central Bank to take action

Why? In large part because of long-term problems in the continent: weak growth, poor demographics and unreformed regulatory systems.

The problem is that this time around there is even less clarity about what to do about it.

Video: IMF's Delicate Dancing Act

The French are determined to borrow and spend more to try to boost growth.

So are the Italians. The problem is that doing so will mean they will break the supposedly iron-clad fiscal rules laid down by eurocrats in the teeth of the crisis.

The Germans are determined to keep control of their public finances, but are being urged by most of their neighbours to spend a bit more and boost demand. Though no-one is courageous enough to tell them to their face.

That's the real reason why the IMF has spent most of the past week telling European countries to spend more on infrastructure.

You only have to watch our interview with IMF deputy managing director David Lipton to see how delicate a dancing act the Fund is having to perform here.

Meanwhile everyone, including George Osborne, has been looking towards the European Central Bank, indicating that they might be wise to consider going all in and doing full-scale quantitative easing.

Except that the ECB and central banking insiders insist they have already done enough - and that it's up to the politicians to do more.

Video: Economic Issues Linked To Conflict

In other words, it's all a bit of a mess. Europe is sliding towards a possible triple-dip recession and no-one seems to be able to decide what to do about it.

Now, to be fair, this episode doesn't have the same level of fear as the 2008 financial crisis or the subsequent euro malaise.

There are no rioters on the streets in Greece and Madrid.

But in another sense this is a far deeper problem: another recession in Europe could be contagious, knocking a serious chunk off Britain's growth prospects.

There is no fix - and no easy answer.

This comes as the world faces a whole barrage of other issues: ebola, which World Bank president Jim Yong Kim has focused on this week; the rise of IS, Islamic State, which IMF Middle East head Masood Ahmed warns has economic as well as social root causes.

All of which helps explain why markets are so jittery at the moment.

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FTSE Slips To One-Year Low On Growth Fears

The FTSE has closed at its lowest level in nearly a year with a crisis of confidence over the global recovery.

It came as there were warnings about a triple-dip recession in the Eurozone at the IMF's annual conference in Washington.

Data from Europe's biggest economy, Germany, points towards a serious slowdown, with exports falling 5.8% in August - the biggest monthly fall in five years.

The FTSE 100 Index ended the week 91.9 points lower at 6340.

It leaves London's top 100 listed companies worth £140bn less than they were just over a month ago, and at their lowest ebb since last October.

Video: The Week's Big Business Stories

Worries about the global economy, particularly in Europe and Asia, have been accompanied by a wave of selling in energy and commodity stocks due to a sharp fall in the price of oil.

The Ukraine crisis and spread of the deadly ebola virus have also added to fears.

Wall Street saw its worst week since May 2012, with the Dow Jones industrial average down to 16,544.

Germany's Dax was down 2%, extending its losses for the week to 4%, and France's Cac 40 fell by more than 1% on Friday.

On Wednesday, the IMF downgraded global growth for this year and next, and lowered its assessments of Germany, France and Italy.

However, it kept its UK growth estimate for this year static at 2.7%.

That prompted Chancellor George Osborne to warn: "I'd be the first to say we're at a critical moment because the Eurozone risks slipping back into recession and crisis and that is already having an impact on the UK."

Around 50% of UK exports go to the EU.

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Fears UK Will Be Hit By New Euro Recession

By Ed Conway, Economics Editor, in Washington

The euro crisis is back. But this time it's different.

That's the general gist of the discussions at the International Monetary Fund meetings in Washington this week.

For this time around the meetings - a key opportunity for policymakers to catch up on the state of the global economy - have coincided with a fresh bout of fear over the euro area.

This isn't the same kind of crisis the single currency faced a couple of years ago, when there were genuine worries that it might break up.

Instead, the concern is that it simply hasn't recovered fully from the recessions of recent years. Worse: it may soon slump back into another recession.

Leaders are looking to the European Central Bank to take action

Why? In large part because of long-term problems in the continent: weak growth, poor demographics and unreformed regulatory systems.

The problem is that this time around there is even less clarity about what to do about it.

Video: IMF's Delicate Dancing Act

The French are determined to borrow and spend more to try to boost growth.

So are the Italians. The problem is that doing so will mean they will break the supposedly iron-clad fiscal rules laid down by eurocrats in the teeth of the crisis.

The Germans are determined to keep control of their public finances, but are being urged by most of their neighbours to spend a bit more and boost demand. Though no-one is courageous enough to tell them to their face.

That's the real reason why the IMF has spent most of the past week telling European countries to spend more on infrastructure.

You only have to watch our interview with IMF deputy managing director David Lipton to see how delicate a dancing act the Fund is having to perform here.

Meanwhile everyone, including George Osborne, has been looking towards the European Central Bank, indicating that they might be wise to consider going all in and doing full-scale quantitative easing.

Except that the ECB and central banking insiders insist they have already done enough - and that it's up to the politicians to do more.

Video: Economic Issues Linked To Conflict

In other words, it's all a bit of a mess. Europe is sliding towards a possible triple-dip recession and no-one seems to be able to decide what to do about it.

Now, to be fair, this episode doesn't have the same level of fear as the 2008 financial crisis or the subsequent euro malaise.

There are no rioters on the streets in Greece and Madrid.

But in another sense this is a far deeper problem: another recession in Europe could be contagious, knocking a serious chunk off Britain's growth prospects.

There is no fix - and no easy answer.

This comes as the world faces a whole barrage of other issues: ebola, which World Bank president Jim Yong Kim has focused on this week; the rise of IS, Islamic State, which IMF Middle East head Masood Ahmed warns has economic as well as social root causes.

All of which helps explain why markets are so jittery at the moment.

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Singapore's SMRT Steers £800m Addison Lee Bid

By Mark Kleinman, City Editor

One of Singapore's largest transport groups is examining an £800m takeover bid for Addison Lee, London's biggest minicab operator.

Sky News has learnt that SMRT Corporation, which is listed on the Asian city state's stock exchange, is at the early stages of considering an offer.

Addison Lee's owner, the private equity group Carlyle, has kicked off an auction of the company for which it paid £300m just 18 months ago.

Credit Suisse, the investment bank handling the sale, has asked bidders to lodge initial proposals next week.

SMRT, which runs bus, train and taxi services in Singapore, is expected to be joined in the bidding by up to half a dozen buyout firms, including BC Partners, Charterhouse and CVC Capital Partners.

Addison Lee, which was founded by former cab driver John Griffin with a single car in 1975, now handles 10m passenger journeys annually, with more than 4,000 drivers on its books.

Its rapid ascent has not been without controversy, however.

The company's boss enraged rivals when he suggested that its drivers should use bus lanes, and accused cyclists of causing many of the road accidents in London which have prompted concern among safety groups.

Addison Lee has dismissed suggestions that the emergence of new economy companies such as Uber will diminish its growth prospects, arguing that the two companies serve separate customer bases.

If SMRT does proceed with an offer, it would represent the second offer from a Singaporean entity for a Carlyle-owned motoring business in as many months.

In September, the private equity group sold a 50% stake in the RAC, Britain's second-largest roadside recovery group, in a transaction valuing the company at more than £2bn.

Bidders for Addison Lee are likely to be attracted to the prospect of international expansion, although one private equity firm suggested there was some anxiety about the encroachment of so many technology-based start-ups.

News of SMRT's interest in Addison Lee comes just a month after it announced a joint venture agreement with Hailo, the London-based taxi mobile application developer.

Carlyle declined to comment.

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Tool Hire Group HSS Joins City IPO Queue

By Mark Kleinman, City Editor

The British tool hire chain HSS is joining the queue of companies lining up for a London stock market listing even as choppy markets prompt others to postpone flotation plans.

Sky News has learnt that HSS' owner, Exponent Private Equity, is in the process of selecting banks to work on an initial public offering that would take place sometime next year.

Insiders said that Exponent was confident of achieving a premium valuation for HSS, which has benefited from the broader recovery of the UK economy, although the precise timing of a flotation would depend on market conditions.

In recent weeks, Miller Homes, the housebuilder, has called off a planned IPO, citing market volatility, although other companies, including Aldermore and Virgin Money, are pressing ahead.

Concerns about the widening impact of the ebola virus and global economic growth have triggered renewed anxieties among investors.

Analysts said that if HSS does pursue a listing, it could be worth around £600m.

Exponent acquired HSS, which trades from 250 sites in the UK and Ireland, in October 2012 from a shareholder consortium that included Och-Ziff, a US hedge fund, and Aurigo, a vehicle set up by Archie Norman, the chairman of ITV and former Conservative MP.

It has expanded both organically and through acquisitions, buying UK Platforms, a nationwide hire company supplying electric and diesel powered access products to the construction and signage industries, last year.

HSS is focused on serving business customers, with 90% of its revenues coming from clients such as Heathrow Airport and Sainsbury's.

The company has been a beneficiary of the growing trend for companies to outsource non-core activities and in contrast to some peers, has positioned itself in the 'operate and maintain' segment of the market.

Announcing half-year profits of £15.3m last month, up 35% on the previous year, Chris Davies, HSS chief executive, said: "The group has achieved a strong first half performance, with our long-term strategy continuing to drive revenue and EBITDA growth.

"In all customer groups, regions and product categories we have achieved organic growth - supplemented by positive contributions from our specialist acquisitions."

Exponent declined to comment on Wednesday.

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Mobile Firm Three Fined Over Complaints

The telecoms watchdog has fined mobile operator Three over breaches related to customer complaints.

Ofcom penalised the firm £250,000 for failure to comply with its rules.

It said the fine was part of its wider monitor and enforcement programme to make sure providers deal with customer complaints fairly.

Ofcom said some complaints were closed by the operator before they were fully resolved.

"In some other cases, Three did not log calls from customers as complaints when it should have done," Ofcom said in a statement.

"This meant that concerns raised by these particular customers were not entered into, or treated in line with, Three's formal complaints process.

"As a result of these breaches, Three did not make these customers sufficiently aware of their right to escalate a complaint to alternative dispute resolution (ADR)".

ADR is a consumer protection facility allowing complainants to approach an independent body if resolution is not reached with the provider.

Ofcom said paper bills sent by the company did not explain this free consumer protection service.

Three co-operated with Ofcom's investigation and has since overhauled its complaint procedure.

Ofcom consumer and content group director Claudio Pollack said: "When things go wrong, customers are not only entitled to complain to their provider, but must have confidence that their complaint will be dealt with fairly.

"The fine imposed on Three takes account of the shortcomings in its complaints handling, but reflects that the harm to consumers in this case was limited."

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EDF Go Ahead for Hinkley Point Nuclear Reactor

French energy giant EDF has been given approval to build a new £16bn nuclear power station at Hinkley Point in north Somerset, it has been confirmed.

The new-build power station is part of a plan to replace 20% of Britain's ageing nuclear power infrastructure.

Approval for the construction has been confirmed by regulators at the European Commission, following prior approval by Competition Commissioner Vice-President Joaquin Almunia.

The EU examined the bid over concerns the UK Government was giving excess help to the plan.

Mr Almunia said: "After the commission's intervention, the UK measures in favour of Hinkley Point nuclear power station have been significantly modified, limiting any distortions of competition in the single market.

"These modifications will also achieve significant savings for UK taxpayers.

"On this basis and after a thorough investigation, the commission can now conclude that the support is compatible with EU state aid rules."

The EU said that under treaty rules, member states are free to determine their energy mix.

It said that the UK has decided to promote nuclear energy and this decision is within its national competence.

However, it insists that when public money is spent to support companies, the commission has the duty to verify that this is done in line with the EU state aid rules, which aim to preserve competition among member states.

Known as Hinkley Point C, it will replace the A station, which is being decommissioned, and the operational B station.

Video: Nuclear Deal 'To Boost Industry'

It is the first in a new generation of UK nuclear power stations.

EDF had earlier said: "A new nuclear power station at Hinkley Point will not only provide a clean, secure and affordable source of electricity for around five million homes, but it will also provide around 900 jobs at the new power stations for more than 60 years."

The lengthy building programme is expected to create 25,000 jobs for almost a decade.

The industry's trade body head, Lord Hutton of Furness, welcomed the decision and said: "The Nuclear Industry Association is pleased the deal for Hinkley Point C has been approved.

"This is an important step in securing the UK's home-grown low-carbon electricity generation while adding jobs and prosperity to the economy."

:: EDF Energy CEO Vincent De Rivaz will be interviewed by Ian King Live tonight at 6.30pm.

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US Jobless Rate Now At Lowest Since July 2008

The unemployment rate in the United States has dropped to 5.9%, the lowest level since July 2008.

The jobless rate dropped by 0.2% from the August figure.

Official data showed that the US economy created 248,000 non-farm jobs in September.

The Labor Department said employers added 69,000 more jobs in July and August, higher than the government had previously estimated.

It said job creation was strongest in the restaurant industry, health care, food and beverage stores and administrative services.

More modest additions were recorded in construction and government hiring.

The improved figures come after President Barack Obama touted his administration's economic achievements in a speech on Thursday.

The economy is one of the top issues in voters' minds as the November mid-term elections near.

The lower jobless rate, combined with the surge in hiring, could ratchet up pressure on the Federal Reserve to raise its benchmark interest rate earlier than expected.

Most economists have predicted that the Fed would start raising rates in mid-2015.

"This number will continue to support the notion that the economy is growing ... (but) isn't so strong that the Fed will raise rates anytime soon," Kingsview Asset Management portfolio manager Paul Nolte said.

With rate hike expectations mounting, the dollar pushed higher on foreign exchanges after the figures were published at 1.30pm BST.

Markets across Europe except Germany's DAX, which was closed for the day, jumped on release of the new data.

In broader economic news, officials said the US trade gap narrowed in August to $40.1bn (£25bn).

The Commerce Department said the revised figure was $200m (£125m) down on the first estimate.

Economists had expected the trade gap to have grown to $40.9bn.

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