RBS And NatWest Hit By Mobile Banking Glitch

Mobile banking services for RBS and NatWest have been hit by an IT glitch, along with an unconnected problem that affected some Lloyds, Halifax and Bank of Scotland online users.

In a statement given to Sky News, a spokesperson for RBS Group said: "Some customers may have had trouble getting into mobile banking today between 8.40am and 2.30pm.

"All services are back up and running as normal.  We apologise for any inconvenience this caused."

A spokesman for Lloyds Banking Group said there was a temporary issue on Friday morning that affected mobile and online services for a small number of customers who were trying to set up payments at Lloyds, Halifax and Bank of Scotland.

The apology seen by NatWest smartphones users

A Lloyds spokesman said: "We are aware that a small number of customers experienced issues accessing payments this morning.

"The issue has now been rectified and we are working with those customers who were affected."

The RBS Group has been hit be a sequence of system-wide IT failures in the past, which affected RBS, NatWest and Ulster Bank.

More recently, it has suffered 'pay day problems'  in the past, when workers expect to see funds enter their accounts.

Branch and cash machines are believed to be unaffected by the latest woes.

In its last annual results, the group said it was investing heavily in computer infrastructure to modernise its systems.

A number of banks were affected in February when workers expected funds to be deposited.

According to the British Bankers' Association, the use of mobile devices for banking services has doubled in the past 12 months.

RBS saw more than 17 million log ins in one week, through its mobile app, earlier this month.

In late December the group was hit by its fourth IT failure, after a cyber attack left online users unable to access accounts.

That followed an outage in early December, on one of the year's busiest shopping days.

14.47 | 0 komentar | Read More

Barclays Fined £26m Over Trader's Gold Fixing

Barclays Bank has been fined more than £26m by the City watchdog over failings related to gold price manipulation by one of its former traders.

The Financial Conduct Authority (FCA) said the bank failed to adequately manage conflicts of interest between itself and customers.

It said oversight failures occurred between 2004 and 2013 led to the £26,033,500 fine.

The trader manipulated the rate in the bank's interest just a day after UK and US regulators fined it $450m (£290m) over attempted rigging of the Libor - an interbank lending rate - that has global impact.

Barclays was fined for oversight failures and not for the price manipulation by the worker.

It agreed to settle the case at an early stage, saving itself a 30% additional penalty.

Gold fixing is a financial term used to describe the somewhat arcane price-setting mechanism that allows investors to buy and sell gold at a single quoted price.

Barclays is one of four banks that sets the price of the precious metal twice a day, in US dollars, on the London Gold Exchange and in Paris and Zurich.

It joined the group in 2004, and the other members are Scotiabank, Societe Generale and HSBC.

The FCA said: "On 28 June 2012, former Barclays trader Daniel James Plunkett exploited the weaknesses in Barclays' systems and controls to seek to influence that day's 3pm setting of the gold price and thereby profited at a customer's expense.

Barclays boss Antony Jenkins has apologised for the latest scandal

"As a result of Plunkett's actions, Barclays was not obligated to make a $3.9m (£2.3m) payment to its customer, although it later compensated the customer in full.

"Plunkett's actions boosted his own trading book by $1.75m - £1m - (excluding hedging)."

The watchdog also fined Mr Plunkett £95,600 and has banned him from performing any function in relation to any regulated activity.

He can, however, work in financial markets in other countries.

The FCA said the trader used the phrase "mini puke" in an email to describe the drop in gold price ahead of the June 28 pricing figure.

Responding to the latest fine imposed by regulators, Barclays CEO Antony Jenkins said: "We very much regret the situation that led to this settlement.

"Barclays has undertaken a significant amount of work to enhance our systems and controls and is committed to the highest standards across all of our operations."

Meanwhile, the chairman of the Treasury Select Committee welcomed the ongoing attempts to improve integrity of the much-maligned banking sector.

Andrew Tyrie MP, the former chairman of the Parliamentary Commission on Banking Standards, said: "It is essential that the regulators do what is necessary to give us confidence that the integrity of these markets is being maintained.

"It is equally essential that the drive to improve standards with the fundamental reforms outlined by the Parliamentary Commission among others is maintained."

The gold price manipulation scandal is the latest issue to tarnish the reputation of Barclays.

It recently suffered a shareholder backlash - announcing a 32% fall in annual profits to £5.2bn but raising its staff bonus pool by 10% to £2.38bn.

14.47 | 0 komentar | Read More

Blackstone In Joint Bid For Friends' Tax Arm

By Mark Kleinman, City Editor

The private equity giant Blackstone has joined forces with a US-based specialist insurer to table a bid for the tax planning arm of Friends Life, the FTSE-100 financial services group.

Sky News understands that Blackstone and Philadelphia Financial will make a joint offer for Lombard, which specialises in wealth planning solutions for some of the world's wealthiest people.

Philadelphia Financial targets high net-worth families through a network of intermediaries, and is understood to view Lombard as an attractive opportunity to expand that area of its business.

Friends Life has been in talks to sell the division for more than six months and is understood to have set a deadline in June for offers from interested parties.

Permira, another private equity group, is also expected to lodge a bid, while interest from Warburg Pincus, another private equity firm, is said to have waned.

Responding to Sky News' disclosure of the sale plan last November, Friends Life, which was then called Resolution, said: "Resolution notes the recent speculation in the press regarding the potential disposal of its Lombard division, which comprises Lombard International Assurance S.A. and Insurance Development Holdings AG, and confirms that it is currently in discussions regarding the possible disposal.

"There is no certainty these discussions will result in a transaction being agreed. A further announcement will be made as and when appropriate."

Analysts say the Lombard unit, which is being auctioned by investment bankers at Barclays, could be sold for £400m.

Based in Luxembourg, Lombard offers "wealth planning solutions to high and ultra-high net worth individuals".

The business is viewed as non-core by Friends Life's board and a sale would see the company re-orient itself towards its home market in the UK, analysts said.

Lombard uses Luxembourg's light-touch tax regime to help shield clients' assets from the taxman and is understood to include dozens of billionaires among its key customers.

Insiders said that Friends Life was also likely to consider the sale of Friends Provident International (FPI), which provides life assurance and investment products in Asia, the Middle East and some other markets, in due course, although no sale process for that business had yet been formally planned.

FPI has offices in the United Arab Emirates, Hong Kong, Singapore and the Isle of Man, and primarily distributes through independent financial advisers and strategic partnerships.

Andy Briggs, Friends Life's chief executive, said late last year that it was planning to compete more aggressively with specialist annuity providers such as Just Retirement, which recently floated on the London Stock Exchange.

In March, it issued updated guidance on its plans in the wake of George Osborne's shake-up of the annuities market.

He said: "There is a negative implication for new business flows in the individual annuity market, as some people utilise the increased flexibility provided by the Chancellor's proposals.

"However, we believe that annuities will continue to be an important product for those who value the guaranteed income throughout increasingly long retirement periods."

Blackstone, Permira and Friends Life all declined to comment on Friday.

14.47 | 0 komentar | Read More

Fracking: Southern England 'Ripe For Drilling'

Large reserves of shale oil are expected to be revealed as a new report today highlights the possibility of fracking across southern England.

The long-awaited survey by the British Geological Survey (BGS) is likely to confirm substantial reserves in Conservative strongholds Kent, Sussex, Surrey and Hampshire.

It comes as communities affected by fracking will reportedly be offered average payouts of £800,000 in a bid to win over opponents of the technique.

Prime Minister David Cameron, a supporter of fracking, will announce the extra compensation in addition to a one-off payment of £100,000 and a 1% share of profits, according to the Times.

Anti-fracking protests took place last year in Balcombe, West Sussex

The BGS has already suggested there could be enough shale gas in the north of England to supply Britain for 40 years.

And it now it appears large areas of the south are in line for the controversial extraction technique.

The South Downs National Park lies across much of the area likely to hold reserves totaling several billion barrels of oil.

Supporters believe fracking will lead to lower energy bills and create thousands of jobs.

But critics claim it harms the environment, including potentially causing small earthquakes and polluting water supplies.

Fracking firm Cuadrilla faced fierce protests last year over its exploratory drilling plans at Balcombe, West Sussex, with some activists arrested.

Licences have already been approved for areas such as Lancashire, with further swathes of the country said to have fracking potential.

Fracking involves fracturing underground rocks to release oil and gas

The technique, widely used in the US, involves high pressure liquid being pumped deep underground to split shale rock and release gas and oil supplies.

Ministers are also said to be planning to give energy firms the right to lay pipelines under houses without worrying about tresspass laws.

This would mean they would not have to get permission from homeowners.

Business Secretary Vince Cable told Sky News that drilling under houses had been going on for years in the coal industry.

"It's not been any issue," said the Liberal Democrat MP.

"We're talking about activity well, well below ground level - not under people's gardens. Providing that's clearly understood, it creates less of a problem."

Mr Cable said people involved in the fracking debate appeared to be "over-reacting in both directions".

"People are terrified this is going to pollute and compromise the environment - it doesn't have to do that.

"People think it's going to be some great economic bonanza - I doubt that."

Oil and gas in the North Sea is still attracting investment and is a key part of the UK's energy supply, the Business Secretary told Sky.

"There is a danger that people get so obsessed by the long-term possibilities of fracking... It's a long way to go.

"People think this is some miracle round the corner - it certainly isn't that. Providing there are proper safeguards for the environment, and there have to be proper safeguards, there is no reason why it should create a backlash."

14.47 | 0 komentar | Read More

New Trains In Seven-Year Rail Franchise Win

Three new state-of-the-art electric train fleets are to be rolled out on the busiest rail routes in London and the South East.

The new Thameslink, Southern and Great Northern (TSGN) franchise will be run by Govia, with rival FirstGroup missing out.

Govia has been awarded a seven-year contract, which includes construction of nearly 1,400 new carriages.

Govia is 65% owned by the Go-Ahead Group and 35% by France's Keolis.

Go-Ahead Group CEO David Brown said: "I'm delighted the (Depatment for Transport) has chosen us to operate this important and complex franchise and to play an instrumental role in delivering the benefits of the Government's £6bn Thameslink programme.

"This will be the UK's busiest franchise and we will be introducing 50% more capacity into central London during peak times, with 26% more morning peak carriages providing 10,000 additional seats."

Services and capacity are expected to be improved to scores of destinations, including Brighton, King's Lynn, Cambridge, Peterborough, Bedford, Luton and Gatwick.

The improved service is due to be fully operational by the end of 2018 and will also include improved staffing and stations, along with a simplified ticket structure.

Rail minister Stephen Hammond said: "A world-class railway is a vital part of our long-term economic plan.

"That's great news for businesses and the hundreds of thousands of passengers who use these vital services every day."

The new franchise, the largest ever in terms of passenger numbers, is a blow to the current Thameslink operator FirstGroup.

Govia presently operates the other rail contract incorporated into the new franchise.

Twenty-four trains will be able to travel between Blackfriars and St Pancras each hour.

New tunnels will also link Peterborough and Cambridge to the existing Thameslink network, boosting access from the North to Gatwick and Brighton.

Govia beat competition from four short-listed bidders - Abellio, FirstGroup, MTR and Stagecoach - to run the key commuter contract from September.

The Go-Ahead Group's partner Keolis is 70% owned by French rail operator SNCF.

After the announcement, FirstGroup CEO Tim O'Toole said: "I am disappointed that we will not be operating the new franchise and taking the Thameslink programme on to its next stage.

"We submitted a strong bid which would have delivered high quality services for passengers, value for taxpayers and an economic return for shareholders."

14.47 | 0 komentar | Read More

Hewlett-Packard To Cut Up To 16,000 More Jobs

IT giant Hewlett-Packard (HP) is to cut up to 16,000 worldwide, after 11 quarters in a row of declining revenues.

The announcement was made after its latest results were released unexpectedly before markets closed in the United States on Thursday.

Shares in HP fell 2.3% on the news of revenue falling.

Sales were down in the latest quarter by 1%, to $27.31bn, which was below analysts' expectations.

Between 11,000 and 16,000 jobs are to be lost, on top of 34,000 cuts announced in a May 2012 restructure plan.

Last December, HP announced it would slash 1,100 jobs at three of its UK sites in the first quarter.

Chief executive Meg Whitman, the former boss of eBay, has struggled to turn around the fortunes of the firm.

The firm is under pressure amid a global decline in PC sales amid growing demand for laptops and greater tablet use.

The company said in a release that the increased cuts come "as HP continues to re-engineer the workforce to be more competitive and meet its objectives".

HP said net income in the second quarter, to April 30, was up 18% to $1.27bn (£750m).

14.47 | 0 komentar | Read More

Fat Face Pulls Float As City IPO Fashion Fades

By Mark Kleinman, City Editor

The fashion retailer Fat Face is expected to abandon its planned flotation in a move that could mark a turning point in the City's frenzy of recent company listings.

Sky News understands that the chain, which is controlled by the private equity firm Bridgepoint, decided on Wednesday evening to call off its initial public offering (IPO), which was due to raise £110m.

An announcement could be made as soon as Thursday.

Advisers to the company are said to have informed board members that there was insufficient demand at the level at which it wanted to sell shares to new investors.

City insiders said the decision was less a reflection of Fat Face's appeal to prospective shareholders and more about a broader recent change in confidence among City institutions.

In recent weeks, Card Factory, another retailer, has disappointed after coming to the market, while Saga said on Wednesday it was cutting the price range for its IPO despite what it claimed was buoyant demand.

So far this year, Appliances Online, which has also traded down since its debut, Pets At Home and Poundland have floated, with the sofa retailer DFS also poised to do so in the coming months.

Fat Face is chaired by Sir Stuart Rose, the former Marks & Spencer (M&S) boss, who also chairs the online grocer Ocado.

Fat Face has more than 200 stores in the UK and Ireland, and plans to open shops in Boston in the US during the next 18 months.

Fat Face's announcement of its intention to float would say it was seeking gross proceeds from investors of tens of millions of pounds to fund its growth.

The chain was established in 1988 selling T-shirts in the Alps.

Its controlling shareholder, Bridgepoint, has been an investor since 2007, and has not had an entirely trouble-free period of ownership, having to inject additional capital during difficult trading conditions.

However, the company has been performing strongly in recent times, with sales understood to have approached £180m in 2013, and robust like-for-like revenue growth.

Fat Face could not be reached for comment on Wednesday.

14.47 | 0 komentar | Read More

Ebay Users Urged To Change Their Passwords

By Tom Cheshire, Sky Technology Correspondent

Ebay has asked its users to change their passwords following a cyberattack that compromised the site's database.

The database, which was compromised between late February and early March, involved hackers infiltrating the database by accessing the log-in details of eBay employees.

The database included eBay customers' names, encrypted password, email address, physical addresses, phone numbers and dates of birth. 

However, the company says extensive tests carried out on its networks confirmed the breach had not resulted in any unauthorised activity for its users or compromise of their financial data. 

Ebay said it was "best practice" for users to change their passwords as it would "help enhance security for eBay users".

The company first learnt of the initial break-in two weeks ago, and a subsequent forensic analysis confirmed that a customer database had also been compromised.

The company said it has seen no increase in fraudulent activity since the hack. Paypal - which eBay owns - is unaffected, and it runs from a different database, according to the company.

"Working with law enforcement and leading security experts, the company is aggressively investigating the matter and applying the best forensics tools and practices to protect customers," eBay said in a statement.

Customers of eBay who use the same password for other websites should change their passwords on all sites.

The new cyberattack is only the latest in a recent string of high profile incidents. In February, the details of 2,200 Tesco clubcards were leaked online. Last year, US retailer Target lost the credit card details of 40 million customers.

A recent Verizon report found 1,367 serious data breaches in 2013, dubbed "the year of the retailer breach", saying it was a year of "large-scale attacks on payment card systems."

David Emm, a senior security researcher at Kaspersky Lab, said:  "It's difficult to quantify the danger customers may be in following the eBay cyberattack, but of course any personal data in the wrong hands is bad news and it appears that the attackers have gained access to customers' names, email addresses, physical addresses, phone numbers and dates of birth, as well as encrypted passwords.

"The fact that this attack took place two to three months ago means the attackers have had additional time with which to attempt to decrypt the stolen passwords as well as make use of the other personal data.

"On the face of it, it looks as though eBay has been slow to respond, but if the company has only just discovered the full extent of the attack it is now doing the right thing by notifying customers in a timely manner."

14.47 | 0 komentar | Read More

Royal Mail Posts £430m In Full-Year Profits

Royal Mail has reported an operating profit of £430m in its first full-year results since privatisation.

The figure for the 12 months to March, after transformation costs, is up from £403m in the previous year - a rise of 6.7%.

But the company warns it is facing a number of "headwinds" including increasing competition in parcels.

It also warned a move to direct delivery of letters by rivals TNT  Post could threaten the financial sustainability of the universal service without action by the regulator Ofcom.

Parcels now contribute more than 50% of Royal Mail's revenue - £4.82bn - after a 7% rise, although volumes remained flat.

The group's letters performance was at the better end of expectations, with revenues down 2% to £4.6bn on a year earlier.

The amount of letters fell by 4%, but the trend improved over the year due to better economic conditions and one-off factors such as energy companies writing to customers about price rises.

The Government still own a 30% stake in the firm, which was sold off last autumn.

Chief executive Moya Greene said: "The competitive environment on the parcels side is more intense. We are taking steps to remain the leader in this growing market."

The privatisation of Royal Mail in October was heavily criticised for not delivering value for money for the taxpayer.

The Government robustly defended the sale against sharp criticism from the National Audit Office, which found that "deep caution" shown by ministers when pricing shares in the Royal Mail cost the taxpayer more than £1bn.

More follows...

14.47 | 0 komentar | Read More

Food Worth £1bn Wasted Every Year Across UK

By Poppy Trowbridge, Consumer Affairs Correspondent

Food worth £1bn is wasted in the UK every year before it even reaches our fridges, according to figures obtained by Sky News.

Damage, flawed appearance and the cost of recycling are just some of the justifications used for throwing food away.

Growers, producers and retailers together bin an average of 400,000 tons annually, or more than 950 million meals.

For the first time, Britain's biggest food retailer, Tesco, is expected to publish the amount of food wasted each year within its UK operations.

The figures will show that more than 50,000 tons - about 1% of all products - gets thrown out.

Matt Simister, Commercial Director, Group Food at Tesco, said: "It really does impact a family's budget.

"What we're saying is that we acknowledge that we have a role to play in helping mums to save more money in the household.

Tesco says it is trying to reduce waste at private distribution centres

"We can reduce the wastage in our own operations, but I think more importantly, we can start to influence the wastage that happens across the whole system."

Families throw away around six meals a week.

Over a year, that can cost up to £700, according to the latest figures from the UK's Waste and Resources Action Programme (Wrap) published in November.

So when you add in what is wasted by consumers too, the total value is closer to £13.5bn.

At private distribution centres, Tesco says it's trying to reduce the tonnage of edible waste.

Food that is perfectly edible, but unsuitable for store shelves, is packed up and sent out to charities that feed the hungry.

Even if the economic recovery does ease the pinch on family budgets this year, the cost of some basic foods will continue to rise, according to market experts.

Halving the amount of discarded food is a goal for Wrap

Joe Rundle, a trader at ETX Capital, said: "Corn, coffee, meat … everything is going to go up considerably.

"In the short term there are seasonal factors and environmental issues that have caused the spike."

Brazil, a large coffee producer, has experienced drought, and tension between Ukraine and Russia has prompted a rise in the price of wheat.

"In the long term we are going to see an emerging middle class in the emerging markets that are really going to consume a lot more food and therefore push the price up."

Mr Rundle added: "That will probably mean that consumers are going to have to change the way they consume food and think about the way they waste it."

Wrap wants to halve the amount of discarded food by 2025.

Achieving that target should also mean the cost to consumers comes down too.

14.47 | 0 komentar | Read More

House Prices Up As PM Mulls Help To Buy Future

House prices have risen 8% in the year to March, figures have shown, as David Cameron said he would "consider" changes to the Help To Buy scheme if advised to do so by the Bank of England.

While the increase is down on the 9.2% rise announced in February, according to the Office for National Statistics, the continued strong price growth, particularly in London and the South East, is set to fuel criticism of the government scheme which underwrites home loans for people without large deposits.

Bank of England governor Mark Carney told Sky News at the weekend that the housing market had "deep, deep" problems.

In an interview with Sky's Murnaghan show, Mr Carney warned rising house prices represented the biggest current risk to the economy.

In response, the Prime Minister indicated he was open to rethinking Help To Buy, which critics argue contributes to forcing up house prices by fuelling demand, which far outstrips the supply of available homes.

Asked if he would look at reducing the programme's £600,000 threshold, Mr Cameron said: "Of course, we will consider any changes that are proposed by Mark Carney.

"But, as he said, this is a well-targeted scheme and it's helped tens of thousands of people get on the housing ladder and to have mortgages."

Mr Cameron says Help To Buy has helped tens of thousands of people

In a bid to tackle housing inflation in London, Britain's biggest mortgage lender is imposing a new loan-to-income cap on people looking to borrow more than £500,000.

Lloyds Banking Group said people applying for a mortgage in excess of that figure will only be able to get up to four times their income.

The new policy will apply across the UK but Lloyds said it is primarily aimed at the soaring London market. It expects the change to affect around 8% of its lending in the capital and around 2.5% elsewhere.

The ONS report said annual house price rises in England were being driven by a 17% year-on-year increase in London, a 6.6% hike in the East and a 6.1% rise in the South East.

The average house price in London has reached £459,000, while the average price in the UK as a whole now stands at £252,000, slightly down on the £253,000 peak in February.

The 0.5% drop marks the first time property values have fallen month-on-month in just over a year.

Shelter says the housing market has reached "boiling point"

However, first-time buyers now face having to pay 10% more than they did a year ago, with the average price of a starter home standing at £193,000 in March, according to the ONS.

Campbell Robb, chief executive of housing charity Shelter, said: "These figures are yet more proof that our housing market is reaching boiling point.

"With every rise in house prices leaving more people priced out or stuck in cramped homes, rollercoaster house prices are rapidly losing their feel-good factor."

In his Sky News interview, Mr Carney signalled he is ready to take action to cool the housing market.

He said the Bank could adopt a range of measures, including a new "affordability test" for borrowers and advising the Government to curb the Help to Buy scheme.

Lib Dem Chief Secretary to the Treasury Danny Alexander said: "Help to Buy doesn't change any of those, the qualifying criteria that people need to follow in order to get a mortgage, but what it does do is help to open up the housing market to people who otherwise would be excluded from it."

14.47 | 0 komentar | Read More

SSE Sees Profit Up 9.6% Amid Price Hikes

Energy giant SSE has seen its full-year adjusted pre-tax profit rise by 9.6% to £1.55bn, just months after announcing price increases.

But it saw the retail division operating profit fall 28.6% to £292m in the year to March 31 as energy usage plunged during the mild winter.

SSE is Britain's second largest provider of household energy and announced it would increase prices last autumn.

It said increased output from renewable energy helped its wholesale arm's operating profit rise to £634.6m - up 24.8%.

During the last year SSE has topped several customer complaint league tables compiled by consumer groups.

SSE lost 370,000 customers during the year - more than 1,000 a day - in a drift towards smaller and independent providers.

In a swipe at the likely backlash over profits, it pointed to a report by accounting giant PwC which found that in the previous financial year the energy firm contributed £9.1bn to UK gross domestic product and supported 112,000 jobs.

Sky's Eamonn Holmes interviewed SSE Group managing director Will Morris after the results were released.

Asked by Holmes if the company would reduce prices for consumers amid reducing wholesale prices, Mr Morris said: "It has been a tough year.

"We will look constantly and if there is a sustained fall ... We know customers care most about having certainty and peace of mind."

A political and consumer backlash over energy firms raising prices saw SSE decide to freeze its energy tariffs last March, until January 2016.

The company's electricity transmission operating profit however, rose by nearly half due to a major increase in investment which its chairman Robert Smith said would continue with a net investment of around £5.5bn over four years in the network.

14.47 | 0 komentar | Read More

Let Market Decide Bids' Fate, Woodford Urges

AstraZeneca Rejects Pfizer: Full Statement

Updated: 8:09am UK, Monday 19 May 2014

The Board of AstraZeneca PLC ("AstraZeneca" or the "Company") notes the announcement by Pfizer Inc. ("Pfizer") of its final proposal (the "Final Proposal"), comprising £24.76 in cash (45%) and 1.747 Pfizer shares (55%) per AstraZeneca share, representing a value of £55.00 per AstraZeneca share (based on the closing price of Pfizer shares on 16 May 2014).

This proposal undervalues the Company and its attractive prospects and has been rejected by the Board of AstraZeneca.

Leif Johansson, Chairman of AstraZeneca said: "Pascal Soriot, Marc Dunoyer and I had a lengthy discussion with Pfizer over the weekend about the proposal Pfizer made on Friday evening at a value of £53.50 per share.

"During this discussion, Pfizer said that it could consider only minor improvements in the financial terms of the Friday Proposal. In response, we indicated, even assuming that other key aspects of any proposal had been satisfactory, that the price at which the Board of AstraZeneca would be prepared to provide a recommendation would have to be more than 10% above the level contained in Pfizer's Friday Proposal.

"The Final Proposal is a minor improvement which continues to fall short of the Board's view of value and has been rejected."

"Pfizer's approach throughout its pursuit of AstraZeneca appears to have been fundamentally driven by the corporate financial benefits to its shareholders of cost savings and tax minimisation.

"From our first meeting in January to our latest discussion yesterday, and in the numerous phone calls in between, Pfizer has failed to make a compelling strategic, business or value case.

"The Board is firm in its conviction as to the appropriate terms to recommend to shareholders."

"AstraZeneca has created a culture of innovation, with science at the heart of its operations, which will continue to create significant value for patients, shareholders and all stakeholders of AstraZeneca."

"As an independent company, the entire value of AstraZeneca's pipeline will accrue to our shareholders. Under Pfizer's Final Proposal, this value would be significantly diluted."

"We have rejected Pfizer's Final Proposal because it is inadequate and would present significant risks for shareholders, while also having serious consequences for the Company, our employees and the life-sciences sector in the UK, Sweden and the US."

Background

After the close of business on 16 May 2014, the Board received a letter containing a revised non-binding proposal from Pfizer comprising £21.57 in cash (40%) and 1.845 Pfizer shares (60%) per AstraZeneca share, representing a value of £53.50 per AstraZeneca share (based on the closing price of Pfizer shares on 16 May 2014) (the "Friday Proposal").

Pfizer's letter did not provide detail about other key aspects of its proposal, several of which are of importance to the Board's evaluation.

The Board of AstraZeneca met on 17 May 2014 and concluded that the financial terms of the Friday Proposal substantially undervalued the Company and its attractive prospects. Accordingly, the Friday Proposal was rejected.

The Board wrote to Pfizer on the evening of 17 May 2014 to confirm that the Board had rejected the Friday Proposal.

The Board offered to hold a meeting with Pfizer to explain its views around the substantial shortfall in value of the Friday Proposal.

The Board also offered Pfizer the opportunity to explain the key aspects of its proposal that were not described in Pfizer's letter, in particular four points central to the Board's concerns relating to value for AstraZeneca's shareholders. These are:

· The business operating model and segmentation which would allow AstraZeneca to deliver on its research and development pipeline and prospects; and which would protect and preserve its culture of science and innovation, especially given the likelihood of material cost savings and research and development reductions;

· The details of Pfizer's plans for cost savings, including around research and development, pipeline delivery and employment;

· Transaction execution risks, in particular Pfizer's proposed tax inversion and regulatory clearances; and

· Pfizer's plans for protecting the certainty of delivery of the value of any offer at closing.

Pfizer requested that this meeting be held by conference call. This conference call, between Leif Johansson (Chairman), Pascal Soriot (Chief Executive Officer) and Marc Dunoyer (Chief Financial Officer) of AstraZeneca and Ian Read (Chairman and CEO) and Frank D'Amelio (Chief Financial Officer) of Pfizer, took place on the afternoon of 18 May 2014.

The Chairman of Pfizer said that Pfizer could consider only minor improvements to the financial terms of the Friday Proposal.

The Chairman of AstraZeneca responded that, even if the other key aspects of the Friday Proposal had been satisfactory, the price at which the Board of AstraZeneca would be prepared to provide a recommendation would have to be more than 10% above the level contained in Pfizer's Friday Proposal. Pfizer stated that its Friday Proposal was final and would not be amended.

As a consequence the discussion ended.

The Board of AstraZeneca met on 18 May 2014 after this telephone discussion and reconfirmed its rejection of Pfizer's Friday Proposal.

A few hours later, without prior notice to AstraZeneca and contrary to its previous statement, Pfizer announced its Final Proposal to the market. The Board of AstraZeneca met again and rejected Pfizer's Final Proposal for reasons set out below.

The Board believes Pfizer's proposals fail to recognise the transformation of AstraZeneca and its attractive long term prospects as an independent science-led company

As set out in the presentation to shareholders on 6 May 2014:

· AstraZeneca has a growing and accelerating late stage pipeline, with aggregate risk-adjusted pipeline peak year sales potential of around $23 billion and non risk-adjusted pipeline peak year sales potential of around $63 billion;

· AstraZeneca's five key growth platforms are sustaining near-term growth, AstraZeneca remains confident that 2017 revenues should be broadly in line with 2013;

· AstraZeneca is targeting strong and consistent revenue growth from 2017, leading to annual revenues of greater than $45 billion by 2023; and

· AstraZeneca's core earnings growth is expected to be in excess of revenue growth during the period from 2017 to 2023 as a result of operating leverage.

AstraZeneca has excellent momentum in the delivery of its clearly defined strategy, underpinning the Board's confidence in long term revenue targets and profitability

AstraZeneca continues to demonstrate strong momentum across all elements of its strategy, as evidenced by multiple recent significant pipeline developments in its core therapy areas.

These pipeline developments, announced in 2014 after completion of the Company's 2013 Long Range Plan, underpin the Board's confidence in AstraZeneca's revenue targets due to increased probabilities of success for key oncology and other specialty franchise pipeline assets.

As a result, AstraZeneca's margins are expected to benefit from this improved revenue mix.

Given that AstraZeneca is at a point of inflection, the Board believes that selling AstraZeneca at the final price proposed by Pfizer would deprive shareholders of the value from potential future pipeline success.

Accordingly, the Board believes short term metrics, including premia over historical share prices, as referenced by Pfizer regarding the attractiveness of its proposals are not appropriate bases for assessing the value of AstraZeneca.

Pfizer's Proposals and Business Model Bring Uncertainty and Risk

The majority of the consideration is in Pfizer shares which many AstraZeneca shareholders will be forced to sell. Further, for those AstraZeneca shareholders able to hold Pfizer shares, the Board believes Pfizer's proposals would materially alter the investment case and create risks and uncertainties.

In particular the Board believes:

· Pfizer's proposals are predicated on the delivery of significant cost reductions and imply a meaningful reduction in research and development potential and capabilities;

· The associated integration would risk significant disruption to the delivery and value of AstraZeneca's pipeline;

· Pfizer's previous large scale acquisitions have highlighted the challenges around the negative impact of integration on research and development productivity and output; and

· Pfizer's announced business segmentation, if it were applied to AstraZeneca's business, would likely lead to value destruction.

In the context of the above, AstraZeneca notes the recent decline in Pfizer's share price, which has fallen by 5.3% since the release of Pfizer's Q1 2014 results.

The tax-driven inversion structure remains a key part of Pfizer's proposals. The inversion structure has already been the subject of intense public and governmental scrutiny, particularly in the US, as a result of Pfizer's possible offer for AstraZeneca. The Board believes this structure brings increased uncertainty as regards the delivery of value for AstraZeneca shareholders.

Rejection of the Final Proposal

The Board believes that Pfizer's Final Proposal, in relation to price, form of consideration and the four particular points that are central to the Board's concerns around value, remains inadequate. Accordingly, the Board has rejected the Final Proposal.

This statement is being made by AstraZeneca without prior agreement or approval of Pfizer.

There can be no certainty that an offer will be made nor as to the terms on which any offer might be made. Shareholders are strongly advised to take no action. 

14.47 | 0 komentar | Read More

Cyber-Spying Charges Against China Officials

The US has charged five Chinese military officials in Beijing with economic espionage and trade secret theft - allegations that China says are "deliberately fabricated" with "ulterior motives".

The indictment accuses the five hackers of targeting US nuclear power, metals and solar products industries.

Six American companies, including Alcoa and Westinghouse, and one labour union were cited as victims of the hacking attacks.

US Attorney General Eric Holder said the case "represents the first ever charges against a state actor for this type of hacking".

"The range of trade secrets and other sensitive business information stolen in this case is significant and demands an aggressive response," he told a news conference.

Barack Obama and Xi Jinping have discussed cyber-security issues

China's foreign ministry hit back at the claims in a very strongly-worded statement and claimed it had been a victim of "large scale" American spying activities.

Foreign ministry spokesman Qin Gang said: "This US move, which is based on deliberately fabricated facts, grossly violates the basic norms governing international relations and jeopardizes China-US cooperation and mutual trust.

"The position of the Chinese government on cyber security is consistent and clear-cut. China is steadfast in upholding cyber security... The US accusation against Chinese personnel is purely ungrounded with ulterior motives."

"The US government and relevant US institutions have long been involved in large-scale and organized cyber theft," claimed the spokesman.

The US Attorney General however, called the indictment a "ground-breaking" step in addressing the threat of cyber-security.

FBI Director James Comey said: "For too long, the Chinese government has blatantly sought to use cyber espionage to obtain economic advantage for its state-owned industries."

The US believes China stole emails and other communications that could have helped Chinese firms learn the inner workings of American companies.

However, at least one of the US firms named in the matter appeared to downplay the impact of the alleged hacking.

Monica Orbe, the director of corporate affairs for metals giant Alcoa, said: "To our knowledge, no material information was compromised during this incident, which occurred several years ago."

Last September, President Barack Obama raised concerns over cyber-security with his Chinese counterpart Xi Jinping while the two were at a summit in St Petersburg, Russia.

When asked by the press about the accusations, Mr Xi said: "China not only does not support hacking but also opposes it.

"Let's not point fingers at each other without evidence but do more to safeguard cyber security."

14.47 | 0 komentar | Read More

M&S Annual Profits Drop For Third Year In A Row

Marks and Spencer has a revealed a 3.9% drop in full-year underlying pre-tax profit to £623m.

It was the third annual profit fall in a row for the high street icon.

The company said its like-for-like UK sales for general merchandise, which includes clothes and furnishings, were down 1.4% in the year until March 29.

In the same period its like-for-like food sales outperformed the wider market and were up 1.7%.

Mr Bolland has been in the top job at M&S since 2010

M&S has invested heavily during the last three years to try and revive its under-performing food business.

For the first time the profit outcome is below the annual profit made by faster growing fashion rival Next.

Total UK sales were up 2.3% in the year but general merchandise remained at 0%.

Multi-channel sales, including online and mobile, were up 22.8%.

It said the company's newly launched website would take up to six months "to settle in" and therefore revenue for the current quarter is expected to be adversely affected.

Chief executive Marc Bolland said: "We are focused on improving our performance in general merchandise and were pleased to see early signs of improvement.

"Our food business had a very strong year, consistently outperforming the market."

Last week Mr Bolland, who has now been in the job four years, announced a new campaign to push 19 million customers online.

He added: "Three years ago, we recognised the scale of investment required to transform our business, investing to strengthen our foundations and improve our customer offer.

"We are making solid progress on this journey and are now focused on delivery."

Sales at M&S were down for the eleventh quarter in a row last quarter, although clothing purchases did rise slightly.

The company was able to reduce its net debut by 6% in the year, to £2.46bn.

It said 2013/14 was a "significant year on our journey" as it seeks to transform itself from a traditional UK chain to "an international, multi-channel retailer".

14.47 | 0 komentar | Read More

Carney: 'House Prices Biggest Risk To Economy'

By Ed Conway, Economics Editor

The British housing market has "deep, deep" problems, according to the Governor of the Bank of England.

In an interview with Sky's Murnaghan show, Mark Carney warned that rising house prices represented the biggest current risk to the economy.

He added that the number of large mortgages being approved to house buyers was on the rise and that the UK was in need of new house building.

Mr Carney said: "The issue around the housing market in the UK … is there are not sufficient (numbers of) houses (being) built."

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

"We're not going to build a single house at the Bank of England. We can't influence that.

"What we can influence… is whether the banks are strong enough. Do they have enough capital against risk in the housing market?"

Mark Carney has issued a warning over the UK housing market

Mr Carney said they could also check lending procedures "so people can get mortgages if they can afford them but they won't if they can't".

"By reinforcing both of those we can reduce the risk that comes from a housing market that has deep, deep structural problems," he added.

Mr Carney said there was evidence that large mortgages, where lenders approve loans of more than four times people's salaries, are on the rise again.

"We don't want to build up another big debt overhang that is going to hurt individuals and is very much going to slow the economy in the medium term," he said.

"We'd be concerned if there was a rapid increase in high loan-to-value mortgages across the banks. We've seen that creeping up and it's something we're watching closely."

In an separate interview for Murnaghan, David Cameron admitted the Government needed to build more houses and said Mr Carney was "absolutely right".

However, he added: "The building of houses is going up. If you talk to any housing developer at the moment or builder they will tell you that the help to buy scheme the Government has put in place has been hugely helpful in bringing forward more development or house building.

"We are training apprentices in the building trade to make sure that we can deliver on these houses but we do need more, yes."

But shadow chancellor Ed Balls said the Government's Help to Buy scheme, designed for those who can afford mortgage repayments but not a large deposit, was making the problem worse and should be reformed.

He said: "The Governor's comment that the Bank of England can't build a single home puts the ball firmly in George Osborne's court to act on housing supply."

And he added: "Unless the Government acts, the danger is that the Bank of England will be forced to raise interest rates prematurely."

Last week, Mr Carney surprised many by playing down the chances of an imminent rise in interest rates despite fears of a growing house price bubble.

But he admitted the issue was the biggest current threat to the economy.

"The biggest risk to financial stability, and therefore to the durability of the expansion, centres on the housing market and that's why we're focused on that," he said.

Prices are currently rising at more than 10% a year across the country. Analysis by Sky News has shown the number of £1m properties has doubled since 2008.

Both the coalition and Labour are committed to building hundreds of thousands of new homes but construction still lags behind Government targets.

In an interview with Andrew Marr, Deputy Prime Minister Nick Clegg indicated the Help to Buy scheme could be "pared back" if the housing market started to overheat.

14.47 | 0 komentar | Read More

AstraZeneca Rejects Pfizer 'Final Offer'

AstraZeneca Rejects Pfizer: Full Statement

Updated: 8:09am UK, Monday 19 May 2014

The Board of AstraZeneca PLC ("AstraZeneca" or the "Company") notes the announcement by Pfizer Inc. ("Pfizer") of its final proposal (the "Final Proposal"), comprising £24.76 in cash (45%) and 1.747 Pfizer shares (55%) per AstraZeneca share, representing a value of £55.00 per AstraZeneca share (based on the closing price of Pfizer shares on 16 May 2014).

This proposal undervalues the Company and its attractive prospects and has been rejected by the Board of AstraZeneca.

Leif Johansson, Chairman of AstraZeneca said: "Pascal Soriot, Marc Dunoyer and I had a lengthy discussion with Pfizer over the weekend about the proposal Pfizer made on Friday evening at a value of £53.50 per share.

"During this discussion, Pfizer said that it could consider only minor improvements in the financial terms of the Friday Proposal. In response, we indicated, even assuming that other key aspects of any proposal had been satisfactory, that the price at which the Board of AstraZeneca would be prepared to provide a recommendation would have to be more than 10% above the level contained in Pfizer's Friday Proposal.

"The Final Proposal is a minor improvement which continues to fall short of the Board's view of value and has been rejected."

"Pfizer's approach throughout its pursuit of AstraZeneca appears to have been fundamentally driven by the corporate financial benefits to its shareholders of cost savings and tax minimisation.

"From our first meeting in January to our latest discussion yesterday, and in the numerous phone calls in between, Pfizer has failed to make a compelling strategic, business or value case.

"The Board is firm in its conviction as to the appropriate terms to recommend to shareholders."

"AstraZeneca has created a culture of innovation, with science at the heart of its operations, which will continue to create significant value for patients, shareholders and all stakeholders of AstraZeneca."

"As an independent company, the entire value of AstraZeneca's pipeline will accrue to our shareholders. Under Pfizer's Final Proposal, this value would be significantly diluted."

"We have rejected Pfizer's Final Proposal because it is inadequate and would present significant risks for shareholders, while also having serious consequences for the Company, our employees and the life-sciences sector in the UK, Sweden and the US."

Background

After the close of business on 16 May 2014, the Board received a letter containing a revised non-binding proposal from Pfizer comprising £21.57 in cash (40%) and 1.845 Pfizer shares (60%) per AstraZeneca share, representing a value of £53.50 per AstraZeneca share (based on the closing price of Pfizer shares on 16 May 2014) (the "Friday Proposal").

Pfizer's letter did not provide detail about other key aspects of its proposal, several of which are of importance to the Board's evaluation.

The Board of AstraZeneca met on 17 May 2014 and concluded that the financial terms of the Friday Proposal substantially undervalued the Company and its attractive prospects. Accordingly, the Friday Proposal was rejected.

The Board wrote to Pfizer on the evening of 17 May 2014 to confirm that the Board had rejected the Friday Proposal.

The Board offered to hold a meeting with Pfizer to explain its views around the substantial shortfall in value of the Friday Proposal.

The Board also offered Pfizer the opportunity to explain the key aspects of its proposal that were not described in Pfizer's letter, in particular four points central to the Board's concerns relating to value for AstraZeneca's shareholders. These are:

· The business operating model and segmentation which would allow AstraZeneca to deliver on its research and development pipeline and prospects; and which would protect and preserve its culture of science and innovation, especially given the likelihood of material cost savings and research and development reductions;

· The details of Pfizer's plans for cost savings, including around research and development, pipeline delivery and employment;

· Transaction execution risks, in particular Pfizer's proposed tax inversion and regulatory clearances; and

· Pfizer's plans for protecting the certainty of delivery of the value of any offer at closing.

Pfizer requested that this meeting be held by conference call. This conference call, between Leif Johansson (Chairman), Pascal Soriot (Chief Executive Officer) and Marc Dunoyer (Chief Financial Officer) of AstraZeneca and Ian Read (Chairman and CEO) and Frank D'Amelio (Chief Financial Officer) of Pfizer, took place on the afternoon of 18 May 2014.

The Chairman of Pfizer said that Pfizer could consider only minor improvements to the financial terms of the Friday Proposal.

The Chairman of AstraZeneca responded that, even if the other key aspects of the Friday Proposal had been satisfactory, the price at which the Board of AstraZeneca would be prepared to provide a recommendation would have to be more than 10% above the level contained in Pfizer's Friday Proposal. Pfizer stated that its Friday Proposal was final and would not be amended.

As a consequence the discussion ended.

The Board of AstraZeneca met on 18 May 2014 after this telephone discussion and reconfirmed its rejection of Pfizer's Friday Proposal.

A few hours later, without prior notice to AstraZeneca and contrary to its previous statement, Pfizer announced its Final Proposal to the market. The Board of AstraZeneca met again and rejected Pfizer's Final Proposal for reasons set out below.

The Board believes Pfizer's proposals fail to recognise the transformation of AstraZeneca and its attractive long term prospects as an independent science-led company

As set out in the presentation to shareholders on 6 May 2014:

· AstraZeneca has a growing and accelerating late stage pipeline, with aggregate risk-adjusted pipeline peak year sales potential of around $23 billion and non risk-adjusted pipeline peak year sales potential of around $63 billion;

· AstraZeneca's five key growth platforms are sustaining near-term growth, AstraZeneca remains confident that 2017 revenues should be broadly in line with 2013;

· AstraZeneca is targeting strong and consistent revenue growth from 2017, leading to annual revenues of greater than $45 billion by 2023; and

· AstraZeneca's core earnings growth is expected to be in excess of revenue growth during the period from 2017 to 2023 as a result of operating leverage.

AstraZeneca has excellent momentum in the delivery of its clearly defined strategy, underpinning the Board's confidence in long term revenue targets and profitability

AstraZeneca continues to demonstrate strong momentum across all elements of its strategy, as evidenced by multiple recent significant pipeline developments in its core therapy areas.

These pipeline developments, announced in 2014 after completion of the Company's 2013 Long Range Plan, underpin the Board's confidence in AstraZeneca's revenue targets due to increased probabilities of success for key oncology and other specialty franchise pipeline assets.

As a result, AstraZeneca's margins are expected to benefit from this improved revenue mix.

Given that AstraZeneca is at a point of inflection, the Board believes that selling AstraZeneca at the final price proposed by Pfizer would deprive shareholders of the value from potential future pipeline success.

Accordingly, the Board believes short term metrics, including premia over historical share prices, as referenced by Pfizer regarding the attractiveness of its proposals are not appropriate bases for assessing the value of AstraZeneca.

Pfizer's Proposals and Business Model Bring Uncertainty and Risk

The majority of the consideration is in Pfizer shares which many AstraZeneca shareholders will be forced to sell. Further, for those AstraZeneca shareholders able to hold Pfizer shares, the Board believes Pfizer's proposals would materially alter the investment case and create risks and uncertainties.

In particular the Board believes:

· Pfizer's proposals are predicated on the delivery of significant cost reductions and imply a meaningful reduction in research and development potential and capabilities;

· The associated integration would risk significant disruption to the delivery and value of AstraZeneca's pipeline;

· Pfizer's previous large scale acquisitions have highlighted the challenges around the negative impact of integration on research and development productivity and output; and

· Pfizer's announced business segmentation, if it were applied to AstraZeneca's business, would likely lead to value destruction.

In the context of the above, AstraZeneca notes the recent decline in Pfizer's share price, which has fallen by 5.3% since the release of Pfizer's Q1 2014 results.

The tax-driven inversion structure remains a key part of Pfizer's proposals. The inversion structure has already been the subject of intense public and governmental scrutiny, particularly in the US, as a result of Pfizer's possible offer for AstraZeneca. The Board believes this structure brings increased uncertainty as regards the delivery of value for AstraZeneca shareholders.

Rejection of the Final Proposal

The Board believes that Pfizer's Final Proposal, in relation to price, form of consideration and the four particular points that are central to the Board's concerns around value, remains inadequate. Accordingly, the Board has rejected the Final Proposal.

This statement is being made by AstraZeneca without prior agreement or approval of Pfizer.

There can be no certainty that an offer will be made nor as to the terms on which any offer might be made. Shareholders are strongly advised to take no action. 

14.47 | 0 komentar | Read More

Banking Standards: New Body To Restore Trust

A new watchdog charged with rehabilitating the damaged image of British banking is to be launched later this year.

The Banking Standards Review Council (BSRC) will be paid for by Britain's big banks, but is intended to remain independent of them.

The former boss of the Confederation of British Industry, Sir Richard Lambert, will be interim chairman of the body.

"Rebuilding confidence and trust in the banks is especially vital in the UK, because of the size of the banking system and the importance to the economy of London's role as an international capital market," Sir Richard said.

Among the BSRC's areas of responsibility is the monitoring of banking culture, including how well employees understand codes of conduct.

A string of recent scandals have damaged the City's reputation

The council will also scrutinise the competence of bank employees and their professional qualifications.

It is also expected to examine data related to customer satisfaction and complaints.

The recommendations for creation of the BSRC follow an eight-month-long project led by Sir Richard.

His project was set up in the wake of a string of mis-selling and market-rigging scandals, which have tarnished the reputation of the banking industry.

Bank of England governor Mark Carney will chair a "panel of respected figures" from outside the industry to appoint a permanent chairman to replace Sir Richard and to ratify the appointment of its chief executive.

Sky's City Editor Mark Kleinman revealed on Sunday that Sir Richard's announcement would include a comment made by the chairmen of seven major high street lenders.

The body has the support of Barclays, HSBC, Lloyds Banking Group, Nationwide, Royal Bank of Scotland, Santander and Standard Chartered.

All other banks operating in Britain, including foreign-owned entities, have been urged to support the council.

14.47 | 0 komentar | Read More

Co-Operative Members Back Radical Reform

Members of the struggling Co-op have unanimously backed a major overhaul of the group.

It paves the way for radical reforms proposed by former City minister Lord Myners to go-ahead.

A timetable for carrying out the changes will be agreed at a board meeting later this month, as the Co-op warned tough times lay ahead.

Some reforms will need rules to be altered, and so require further votes.

Co-op Group chair Ursula Lidbetter, who announced she will step down after a transitional period, said the mood at the annual general meeting was "thoughtful and sober".

She hailed the vote as a "highly significant moment" for the group.

Speaking ahead of the vote, Ms Lidbetter told delegates "catastrophic failure of governance" had taken place at the Co-operative Group - but it was in its own hands to "make this business work again".

Lord Myners has said the Co-op is "not fit for purpose"

She said 2013 had been a "disaster waiting to happen".

Sky's City Editor Mark Kleinman said no-one had been expecting a unanimous vote, and Co-op executives were "breathing a sigh of relief" at the result.

After the vote Lord Myners said: "My job, when I was asked by the board, was to do a thorough review of governance and I have done that.

"Quite forthright, that upset some people, but I think it was necessary to be frank and straightforward, and people have obviously listened with care."

He has proposed a shake-up of the 150-year-old business which reported losses of £2.5bn for 2013.

The plans include sweeping away the existing 20-strong board of representatives from the Co-operative Group, who currently include an engineer, a plasterer and a retired deputy head teacher.

He wants to replace this with a slimmed-down "plc and beyond" structure staffed by professionally-trained directors.

Euan Sutherland left the Co-op, saying it was "ungovernable"

The former Marks & Spencer chairman was appointed a director of the Co-operative Group in December, but is to leave following the vote.

He said it was apparent to him from the first time he attended a board meeting that not one of its members had the ability to address the complex issues faced by a group burdened with £1.4bn of debt.

Lord Myners believes that the Co-op will survive but faces the prospect of having to sell assets such as its £1bn funeral care business, in order to meet the demands of its lending banks, if it does not adopt reform.

Resistance to the changes saw chief executive Euan Sutherland leave the group earlier this year, saying it was ungovernable.

The decision on the reforms was taken by representatives of its independent societies and affiliated organisations - who hold 22% of the vote - and others voting on behalf of its regional membership boards making up the remaining 78%.

Ms Lidbetter said: "There is a huge task ahead of us if we are to deliver the reforms necessary to restore the Group's reputation and return it to health but the board will work hand-in-hand with our members to ensure that we seize this opportunity.

14.48 | 0 komentar | Read More

Britain's Richest 1,000 People Now Worth £519bn

Billionaire Britain: Rise Of The Super-Rich

Updated: 7:07am UK, Sunday 11 May 2014

More than 100 billionaires are now living in Britain - the first time the milestone has been reached.

According to this year's Sunday Times Rich List, 104 billionaires with a combined wealth of more than £300bn are now based in the UK - more than triple the number from a decade ago.

Britain has more billionaires per head of population than any other country, while London has more than any other city with 72.

Top of the list are the Indian-born brothers Sri and Gopi Hinduja, who have an £11.9bn fortune.

The pair run the global conglomerate Hinduja Group and saw their wealth increase by £1.3bn in the last year.

In second place is Russian business magnate and Arsenal shareholder Alisher Usmanov, who fell from the top spot after his fortune decreased to £10.65bn.

The richest Briton is the Duke of Westminster, who is 10th on the list with a fortune of £8.5bn.

Chris Dawson, who owns The Range discount store chain, saw his wealth rise by £695m in the last year to £1.28bn.

Jon Hunt, the founder of estate agents Foxtons, has a fortune of £1.07bn, a rise of £145m from 2013.

Mike Ashley, the founder of Sports Direct, and Virgin businessman Sir Richard Branson are also among the wealthiest 25 billionaires.

Ten years ago, a fortune of £700m was required to be among Britain's 50 wealthiest people.

Now it is £1.7bn - the first time since 2008 the minimum wealth of the top 50 has been more than £1.5bn.

The combined fortune of Britain's richest is now ahead of pre-recession levels of 2008.

Last year there were 88 billionaires, worth a total of more than £245bn.

A decade ago the number was 30, with a combined fortune of £65bn.

14.48 | 0 komentar | Read More

Carney: 'House Prices Biggest Risk To Economy'

By Ed Conway, Economics Editor

The British housing market has "deep, deep" problems, according to the Governor of the Bank of England.

In an interview with Sky's Murnaghan show to be broadcast in full later this morning, Mark Carney warns that rising house prices represents the biggest current risk to the economy.

And the number of large mortgages being approved to house buyers is on the rise, he adds.

Mr Carney says that the UK is in need of new house building.

He says that compared to his home country of Canada, for example, the UK built half the number of new homes every year despite having twice the population. 

Canada builds around 200,000 new homes a year compared to just 133,000 similar properties that were built in the UK last year.

Mr Carney said: "The issue around the housing market in the UK … is there are not sufficient (numbers of) houses (being) built."

Mark Carney has issued a warning over the UK housing market

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

"We're not going to build a single house at the Bank of England. We can't influence that.

"What we can influence … is whether the banks are strong enough. Do they have enough capital against risk in the housing market?"

Mr Carney said they could also check lending procedures "so people can get mortgages if they can afford them but they won't if they can't".

"By reinforcing both of those we can reduce the risk that comes from a housing market that has deep, deep structural problems," he added.

Mr Carney said there was evidence that large mortgages, where lenders approve loans of more than four times people's salaries, are on the rise again.

"We don't want to build up another big debt overhang that is going to hurt individuals and is very much going to slow the economy in the medium term," he said.

"We'd be concerned if there was a rapid increase in high loan-to-value mortgages across the banks. We've seen that creeping up and it's something we're watching closely."

In an separate interview for Murnaghan David Cameron admitted the Government needed to build more houses and said Mr Carney was "absolutely right".

However, he added: "The building of houses is going up. If you talk to any housing developer at the moment or builder they will tell you that the help to buy scheme the Government has put in place has been hugely helpful in bringing forward more development or house building.

"We are training apprentices in the building trade to make sure that we can deliver on these houses but we do need more, yes."

Last week, Mr Carney surprised many by playing down the chances of an imminent rise in interest rates despite fears of a growing house price bubble.

But he admitted the issue was the biggest current threat to the economy.

"The biggest risk to financial stability, and therefore to the durability of the expansion, centres on the housing market and that's why we're focused on that," he said.

Prices are currently rising at more than 10% a year across the country.

Analysis by Sky News has shown the number of £1m properties has doubled since 2008.

Earlier this month, the OECD think tank called on the Bank of England to impose measures to help quell rising house prices.

Both the coalition and Labour are committed to building hundreds of thousands of new homes.

However, construction still lags behind Government targets.

14.48 | 0 komentar | Read More