Written By Unknown on Sabtu, 13 Desember 2014 | 14.47
More than £110bn has been wiped off the value of Britain's leading companies as the FTSE 100 suffered its worst week in three years.
The index closed down 161.07 points on Friday, a loss of 2.49%, making an overall drop of 6.6% since Monday - the largest weekly fall since August 2011.
The slide reflected a new five-year low for the price of Brent crude and worries about the global outlook, particularly after more disappointing economic figures from China.
The FTSE 100 is dominated by business with an interest in the energy and commodity sectors, meaning it has taken a bigger hit from weak oil prices.
Oil stocks have taken a hit as weakening demand and the prospect of oversupply sparked a fall in the price of oil by 10% this week to around $62 (£39.50) a barrel.
Video:What's Causing Falling Oil Prices?
The International Energy Agency on Friday cut its forecast for global demand for the fourth time in five months.
BP shares have fallen by 9% since the start of the week and are a fifth cheaper in the year to date.
In New York, the Dow Jones Industrial Average ended the week down 677.96 points or 3.8%, while markets in France and Germany were down by nearly 3%.
Video:13 Nov: Why Is The Oil Price Down?
Traders were reacting negatively to the plunge in the oil price despite the likelihood that it could represent a $4bn (£2.5bn) stimulus to the world economy.
Laith Khalaf, senior analyst at Hargreaves Lansdown stockbrokers, said markets are mulling the question of whether a lower oil price is a "symptom or a cure" for weak global demand.
He said: "The answer is it is probably both, but the restorative qualities of a lower oil price are going to take some time to feed through, and in the meantime markets are focusing on the negatives."
Ministers will next week hail a "landmark" deal with Britain's nine biggest lenders to offer millions of consumers a new fee-free basic bank account.
Sky News has learnt that the Treasury will announce on Monday that the banks will establish accounts which end charges - whcih can be as high as £35 per item - for failed direct debit or standing order payments.
The new product will be provided by institutions which between them have more than 90% of the current account market, and will be available to people who are not eligible for a bank's standard current account and either have no bank account, or cannot use their existing accounts because of financial problems.
The participating lenders - which have agreed to launch the accounts by the end of next year - are Barclays, the Co-operative Bank, HSBC, Lloyds Banking Group, National Australia Bank (which owns the Clydesdale and Yorkshire), Nationwide, Royal Bank of Scotland, Santander UK and TSB.
Andrea Leadsom, the economic secretary to the Treasury, is expected to hail the development as a "landmark" agreement, saying that it should bring to an end the problem of consumers being locked out of their accounts when payments fail.
Sky News had previously revealed that some banks had expressed concerns during negotiations with the Government about the terms of the deal.
The provision of basic bank accounts, of which there are estimated to be more than 9m in the UK, is estimated to cost the industry more than £300m annually, with the new accounts likely to add substantially to that bill.
Earlier this year, a European Union Directive ordered member states to supervise the introduction of basic accounts which must charge fees described as "fair".
Ministers are understood to be pleased that they have secured an agreement to launch accounts with no fees, with customers offered services on the same terms as other personal current accounts provided by each participating lender.
This will involve customers having access to all standard over-the-counter services in bank and Post Office branches, as well as access to the entire national ATM network.
Some bank executives have warned that the structure agreed with the Treasury will mean that the new accounts are ultimately subsidised by consumers elsewhere in the banking system.
A further concern was raised that the new account could attract demand from large numbers of consumers who are not benefit claimants, but this is likely to have been alleviated by the eligibility restrictions agreed between the lenders and the Treasury.
The Government estimates that up to 7m people will participate in the Universal Credit welfare programme by 2019, with the new basic account expected to be restricted to that population.
The British Bankers' Association (BBA) has been leading the negotiations with the Treasury about the framework of the plans.
Neither the BBA nor the Treasury would comment on Friday.
More than 100 flights have been cancelled and many others delayed after a major computer failure grounded planes in London and the South.
A glitch at the state-of-the-art UK air traffic control centre headquarters in Swanwick, Hampshire, caused severe disruption.
For a time no aircraft were able to take off at some of the UK's major airports. Some flights were allowed to land.
Transport Secretary Patrick McLoughlin said the disruption was "simply unacceptable" and revealed the Government had asked NATS for a full explanation.
The computer problem is at Swanwick air traffic control centre
It was reported airspace over London had been closed but air traffic control company NATS denied this, saying airspace capacity was "restricted in order to manage the situation".
NATS later said the system had been restored and it was in the process of returning services to normal.
Video:Passengers Left Waiting On Planes
The glitch lasted from 3.27pm to 4.03pm and Sky sources said a flight planning server had failed.
Airports affected by the disruption included Heathrow, Gatwick, Stansted and London City.
Aberdeen and Edinburgh were also hit by the computer problem. Other airports that reported delays included Birmingham, Manchester, Luton and Bristol.
Heathrow said at least 75 flights have been cancelled and up to 400 delayed.
It said the problem was likely to have a knock-on effect for flights on Saturday because aircraft and crew will not be in the correct positions.
Gatwick saw 15 cancellations and London City between 10 and 15.
Video:What Is Causing Airspace Problems?
British Airways said: "We are working hard to look after our customers who have been affected by the air traffic control failure experienced by all airlines at Heathrow, Gatwick and London City airports.
"We anticipate disruption to both departing and arriving aircraft but will do all we can to minimise any impact."
Speaking to Sky News, NATS managing director of operations Martin Rolfe defended his organisation's handling of the chaos.
"It was a technical failure at our Swanwick centre which handles 6,500 flights a day," he said.
"We went through our backup systems and restored things relatively quickly but not without delays to passengers, which we hugely regret.
"These things are relatively rare. We are a very busy island for air traffic control, so we're always going to be operating near capacity.
Video:Timelapse: Skies Clear Over London
"What we've seen today is a very quick response. We didn't close any airports, we didn't close any airspace. We reduced the flow to make sure everything could be handled safely."
East Midlands and Birmingham airports said they were virtually unaffected.
One passenger caught up in the travel chaos was Matt Warren. He tweeted: "Stuck on the tarmac at Heathrow airport. Air traffic control failures. No flights in or out."
David Fitzgerald, who was stuck in a plane on the tarmac at Gatwick, should have been going to Dublin for a 3pm departure.
"We were boarding but then we were told the news there was a major failure at air-traffic control," he said.
"The good news is that some aircraft are being allowed to leave using a lower flight level - it's only the higher flight level that's affected."
Video:November: How Busy Is UK Airspace?
Nick Adderley, a police chief superintendent, was also stuck on the tarmac at Gatwick after trying to fly home to Manchester.
He told Sky News: "This is a business flight for me… [I am] trying to get home after a business meeting in London.
"There are a number of people on board trying to get connecting flights to go on holiday. The spirits are pretty high. The mood is pretty good at the moment."
The centre at Swanwick has been subject to a number of computer glitches since NATS moved there from its old headquarters in West Drayton in west London in the early part of the last decade.
One of the worst problems was a year ago - on Saturday 7 December 2013 - when thousands of passengers were left stranded when hundreds of flights were grounded following a technical fault at the Hampshire centre.
Written By Unknown on Jumat, 12 Desember 2014 | 14.47
The Bank of Russia has increased its key interest rate to 10.5%, to help spur the economy amid sanctions and sliding oil prices.
The bank raised the rate from the previous figure of 9.5%.
It confirmed it would also continue to raise the rate even higher if inflation continues to accelerates.
The central bank predicted inflation reaching 10% by year's end due to the plunging value of the rouble, and now expects growth to be flat through to 2016.
"Annual GDP growth is expected to be close to zero in 2015-2016," the bank said in a statement.
Video:Deciphering The Putin Speech
It cited depreciation of the currency and the "external conditions" of Western sanctions over the Ukraine crisis and sliding oil prices.
The rouble dropped to new record lows against the US dollar on Thursday after the announcement was made.
The rate rise is insufficient to thwart further currency pressure, according to Rabobank International emerging markets foreign exchange strategist Piotr Matys.
"This is not enough to stabilise the rouble and increases the risk of a full-scale currency crisis," Mr Matys told Sky News.
"The central bank may intervene more aggressively on the market.
"But selling hard currencies already proved an insufficient tool as reflected in the worst rout since the 1998 crisis and the sharp drop in Russia's foreign reserves of almost $80bn (£64bn) so far this year."
Experts believe the central bank may need to raise rates again, at the next planned meeting on January 30, as more pressure is applied.
Mr Matys added: "In the meantime, the central bank is likely to continue selling US dollars to stem the pace of rouble depreciation, which will inevitably lead to another fall in Russia's foreign reserves."
Brent Crude inched above $65 a barrel on Thursday, as the slide in prices approaches six months.
Russia gets much of its foreign currency from petroleum products and the drop towards five-year lows further exacerbates the problems caused by sanctions.
Two City watchdog executives who were criticised on Wednesday over the disclosure of a probe into the insurance industry are expected to give evidence on the crisis to a powerful panel of MPs.
Sky News understands that Clive Adamson, the Financial Conduct Authority's (FCA) director of supervision, and Zitah McMillan, its communications chief, are likely to appear before the Treasury Select Committee before Christmas.
A further session with Martin Wheatley, the FCA's chief executive, is expected to be held in the new year.
Mr Adamson and Ms McMillan are leaving their FCA roles in the coming weeks, ostensibly as part of a restructuring which the regulator has insisted is unconnected to a report published on Wednesday by Simon Davis, a leading City lawyer.
Mr Davis's report said the FCA's approach to briefing a national newspaper about a proposed review of an area of the pensions market was "high risk, poorly supervised and inadequately controlled.
When it went wrong, the FCA's reaction was seriously inadequate and fell short of the standards expected of those it regulates."
Mr Adamson, Mr Wheatley and Ms McMillan were all criticised in Mr Davis's report, alongside David Lawton, the FCA director of markets.
Their ponderous response to the appearance of the newspaper story about their probe in March meant that panicked selling by investors in insurance companies such as Aviva and Phoenix went on for more than six hours the following morning.
All four forfeited their bonuses for last year as a result, while any discretionary payouts for the current year are also under threat because of the £3.8m cost of the inquiry, Sky News has learnt.
In a statement on Wednesday, Andrew Tyrie, the TSC chair, said the report's findings illustrated a regulator "pursuing the wrong strategy in the wrong way".
He accused the FCA of falling "well below the standards it requires of the firms it regulates" and said further investigation was required.
"The Committee will, among many other things, examine whether these errors were a one-off or whether they reveal something amiss, perhaps seriously amiss, with the standards and culture of the FCA. We will also examine remedies, both those proposed or already announced, and others."
George Osborne, the Chancellor, said he was confident that the FCA would learn the lessons of Mr Davis's report.
Household water bills are to fall by around £20 over the next five years.
The 5% drop, excluding inflation, would see average bills come down from £396 to £376 by the end of the decade, according to the industry regulator Ofwat.
Written By Unknown on Kamis, 11 Desember 2014 | 14.47
By Jon Craig, Chief Political Correspondent
Ed Miliband is to unveil a new policy to balance Britain's books in an attempt to repair the damage to his credibility when he failed to mention the deficit in his party conference speech.
In a speech on tackling the deficit, he will pledge that a Labour government would cut spending year on year in all Whitehall departments apart from health and international development until the deficit has been dealt with.
The move, coming just a week after George Osborne's Autumn Statement, is intended as a fightback after Mr Miliband's conference blunder and opinion polls showing Labour trailing the Conservatives on the economy.
A poll by ComRes last week suggested 43% of people think they would be better off under David Cameron and Mr Osborne, while only 32% believe they would do better under Mr Miliband and Ed Balls.
Mr Miliband will accuse the Conservatives of planning to return spending on public services to a share last seen in the 1930s, a time before there was a National Health Service and when young people left school at 14.
Video:Miliband: 'There Was A Bit ...'
"And they have finally been exposed by the Autumn Statement for what they really are: not modern compassionate Conservatives at all - but extreme and ideological, committed to a dramatic shrinking of the state and public services, no matter what the consequences," he will say.
Unveiling Labour's alternative, Mr Miliband will say Britain must deal with the deficit to create the strong economic foundation needed to build prosperity for working people, attract investment and fund public services.
"There is no path to growth and prosperity for working people which does not tackle the deficit.
"What we need is a balanced approach which deals with the deficit - but does so sensibly," he will say.
Video:Labour Still For 'Working People'
Mr Miliband will add: "This is an essential test of credibility.
"There is huge uncertainty about the deficit because of economic circumstances and on the basis of recent experience.
"That makes it all the more important that parties do not spray around unfunded commitments they cannot keep.
In a letter to shadow cabinet colleagues, shadow chancellor Ed Balls says: "We will set out for our manifesto other priority areas of spending which will be protected.
Video:Leaders Reacting Under Pressure
"In the meantime you should be planning on the basis that your departmental budgets will be cut not only in 2015/16, but each year until we have achieved our promise to balance the books."
In response the Tories hit back, with Business Minister Matthew Hancock claiming: "Labour's policy is to run deficits forever - more borrowing that would add to the national debt every single year.
"That would mean more debt than hardworking taxpayers or our children could ever hope to repay.
"This risk to the economic recovery is exactly why Ed Miliband simply isn't up to the job."
The London-based HSBC head of foreign exchange trading for Europe, the Middle East and Africa has been sacked.
Stuart Scott was dismissed from his role on Tuesday, according to sources. HSBC declined to comment.
The dismissal comes in the wake of the investigations launched by authorities on both sides of the Atlantic.
In 2007, Mr Scott won the FX Week annual award for Best Bank for Emerging European, Middle-Eastern and African Currencies.
Last month, a forex trader at investment bank Goldman Sachs' London office left his job following claims of misconduct during previous employment at HSBC.
During his time at HSBC the trader, Frank Cahill, worked for Mr Scott.
Mr Cahill has not been accused of wrongdoing at Goldman Sachs.
The HSBC dismissal is the latest chapter in a succession of wrongdoing claims to hit the banking sector.
Other banks, including Barclays, remain under investigation into allegations that manipulation occurred in the forex industry.
Foreign exchange is a massive industry, with trades globally valued at more than £3tn daily.
City watchdog the Financial Conduct Authority (FCA) previously said that forex manipulation occurred at six banks during a five-year period to 2013.
HSBC has been fined a total of $618m (£394m) by US and UK authorities following investigations into rate-rigging.
The FCA discovered that trader groups gave themselves names such as The 3 Musketeers, The Co-operative and The Players amid attempts to rig key benchmarks.
The groups used chat rooms to swap information and prompt trades for their own benefit and not clients.
Written By Unknown on Rabu, 10 Desember 2014 | 14.47
Athens Stock Exchange Drops 15% On New Fears
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The stock exchange in Athens is set for its biggest one-day fall since 1987
The Athens stock exchange has plunged by more the 15% over fears political turmoil will hit Greece's fiscal reform measures.
If the drop holds until markets close it would become the biggest one-day fall in almost 30 years.
Investors have been spooked that the country may be forced to hold early general elections.
Concern comes from the prospect of a left-wing opposition party, that currently leads the polls, winning and derailing reforms.
The Syriza party wants a cut to what Greece owes in bailout money, arranged with the so-called troika of the EU, IMF and European Central Bank.
1/9
Gallery: Youth Protests Turn Violent In Athens
A protester holds a placard during clashes at the end of a youth protest to commemorate the six-year anniversary of the fatal shooting of teenager Alexis Grigoropoulos by a police officer
A protester wearing a gas mask holds a black flag in Athens
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The commemoration is held as a close friend of Grigoropoulos, 21-year-old anarchist Nikos Romanos, jailed for attempted bank robbery, is on the 26th day of a hunger strike. Here riot police fire tear gas at protesters
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Greek police take position during clashes. Click through for more pictures
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Greece has only just announced it has finally come out of a painful six-year recession.
The economic contraction has seen major social, economic and political upheaval in the struggling southern eurozone periphery.
In response to the fresh fears, Greece's government named respected former EU commissioner Stavros Dimas as its presidential candidate in a crucial parliamentary vote this month.
On Monday the government made a surprise move and brought forward the start of the presidential vote by two months to December 17.
There is now the risk of early elections if the government fails to secure a large parliamentary majority to back Mr Dimas' nomination.
The government needs 25 more votes than the 180 it currently holds in its coalition.
The conservative government hopes to bring about an early end to the €240bn (£195bn) bailout that rescued Greece at the height of its debt crisis.
But the programme is deeply unpopular with swathes of society because of the strict austerity conditions and enforced reforms.
The country was hit with a series of protests last weekend, which mirrored numerous violent demonstrations during the height of the reform process.
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Athens Stock Exchange Drops 15% On New Fears
We use cookies to give you the best experience. If you do nothing we'll assume that it's ok.
The stock exchange in Athens is set for its biggest one-day fall since 1987
The Athens stock exchange has plunged by more the 15% over fears political turmoil will hit Greece's fiscal reform measures.
If the drop holds until markets close it would become the biggest one-day fall in almost 30 years.
Investors have been spooked that the country may be forced to hold early general elections.
Concern comes from the prospect of a left-wing opposition party, that currently leads the polls, winning and derailing reforms.
The Syriza party wants a cut to what Greece owes in bailout money, arranged with the so-called troika of the EU, IMF and European Central Bank.
1/9
Gallery: Youth Protests Turn Violent In Athens
A protester holds a placard during clashes at the end of a youth protest to commemorate the six-year anniversary of the fatal shooting of teenager Alexis Grigoropoulos by a police officer
A protester wearing a gas mask holds a black flag in Athens
]]>
The commemoration is held as a close friend of Grigoropoulos, 21-year-old anarchist Nikos Romanos, jailed for attempted bank robbery, is on the 26th day of a hunger strike. Here riot police fire tear gas at protesters
]]>
Greek police take position during clashes. Click through for more pictures
]]>
]]>
Greece has only just announced it has finally come out of a painful six-year recession.
The economic contraction has seen major social, economic and political upheaval in the struggling southern eurozone periphery.
In response to the fresh fears, Greece's government named respected former EU commissioner Stavros Dimas as its presidential candidate in a crucial parliamentary vote this month.
On Monday the government made a surprise move and brought forward the start of the presidential vote by two months to December 17.
There is now the risk of early elections if the government fails to secure a large parliamentary majority to back Mr Dimas' nomination.
The government needs 25 more votes than the 180 it currently holds in its coalition.
The conservative government hopes to bring about an early end to the €240bn (£195bn) bailout that rescued Greece at the height of its debt crisis.
But the programme is deeply unpopular with swathes of society because of the strict austerity conditions and enforced reforms.
The country was hit with a series of protests last weekend, which mirrored numerous violent demonstrations during the height of the reform process.
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A number of senior managers who left Tesco after profits were overstated by £263m have been told by the retailer that they have no right to appeal over their departures.
Sky News has learnt that Tesco has informed lawyers acting for some of the executives that they cannot launch a formal appeal through the company because an ongoing Serious Fraud Office (SFO) probe has rendered it impossible for Tesco to have direct contact with them.
Last week, it emerged that Chris Bush, the UK managing director, group commercial director Kevin Grace, Carl Rogberg, the UK finance director, and John Scouler, UK food commercial director, had left Tesco approximately eight weeks after they were asked to step aside amid an investigation into the profit overstatement.
One of the executives, Chris Bush
Sources said on Tuesday that at least one of the men had made enquiries through their legal representatives about their right to appeal and were informed by the company that no such appeal could be heard while the SFO investigation was taking place.
The supermarket giant's decision - which emerged as it warned on profits for the fourth time this year, sparking a further slump in its shares - may prompt a legal challenge from a number of the executives, sources indicated.
Video:Oct: Tesco Faces Criminal Probe
Another executive who had been asked to step aside, Matt Simister, has since returned to his role at Tesco, while Dave Lewis, the chief executive, confirmed on Tuesday that the futures of three other managers were still being assessed.
Tesco's latest impromptu trading update stunned the City with its disclosure that full-year group trading profit would not exceed £1.4bn, a figure 58% lower than last year's £3.3bn.
Mr Lewis said the worse-than-expected outcome reflected investments he was making in rebuilding Tesco's trading relationship with suppliers and in increasing employee numbers in its stores.
Shares in Tesco fell by more than 15% at one stage, although they recovered some of their losses later in the morning and were trading at around 168p, giving the company a market value of just over £15bn.
Video:Oct: Boss On Tesco's Woes
Last week, Mr Lewis said he would take direct control of the UK business although this will be a temporary move.
"Tesco is focused, and will continue to focus, on doing the right thing for customers. This means running our business in a way that everything we do creates sustainable value," he said.
"Whilst the steps we are taking to achieve this are impacting short-term profitability, they are essential to restoring the health of our business.
"We will not engage in short term actions that compromise in any way our offer for customers."
Video:Tesco's Woes In Detail
The new chief executive, whose 100th day in the role was marred by the latest profit alert, said the City would receive a further update on his plans when he presents the results of Christmas trading on 8 January.
Tesco declined to comment on the position of its former executives, none of whom could be reached for comment.
A spokesman for the SFO said its inquiry was ongoing.
Two of the executives who were instrumental in backing Neil Woodford, the UK's best-known fund manager, have quit his asset management start-up less than a year after its launch.
Sky News has learnt that Nick Hamilton, Woodford Investment Management's chief operating officer, and Gray Smith, the chief legal and compliance officer, resigned from the business on Tuesday.
Mr Hamilton and Mr Smith were two of the firm's most senior employees, and the circumstances surrounding their departure were unclear. Links to their profile pages on its website had been removed on Tuesday afternoon.
Woodford Investment Management became the City's most talked about funds start-up for years when it opened for business in April, and has already attracted £8.5bn of clients' money.
It has taken significant positions in blue-chip companies such as British American Tobacco, BAE Systems, GlaxoSmithKline and Rolls-Royce.
Mr Woodford, who was a prominent opponent of Pfizer's attempted £60bn takeover of the British pharmaceutical company AstraZeneca earlier this year, has also become a shareholder in Atom, a digital-only banking venture which is targeting a launch next year.
The firm, which employs 32 staff, is run by Craig Newman, its chief executive, who joined alongside the former Invesco fund manager Mr Woodford in May.
Data analysed by Hargreaves Lansdown showed that Mr Woodford's fund has returned 7.4% since its launch, making it the top performing UK Equity Income fund during this period.
By comparison, the FTSE All Share had achieved a negative return of -0.5%, while the average UK Equity Income fund returned 0.7%.
In a statement issued to Sky News, Woodford Investment Management confirmed the departures of the two men, saying that the firm's "infrastructure has evolved commensurate to its goal of building a fund management company with an operational platform fit for a regulation-heavy environment".
"Having assisted with the successful set up and launch of Woodford Investment Management LLP in their respective roles of chief operating officer and chief legal and compliance officer, Nick Hamilton and Gray Smith will be leaving the firm this month."
Craig Newman, chief executive, Woodford Investment Management, said: "Nick and Gray helped us get over the line. We thank them for their commitment and wish them all the best in the future."
Last week, Woodford Investment Management announced the appointment of several other executives to senior compliance, risk and operations roles.
Written By Unknown on Selasa, 09 Desember 2014 | 14.47
Home borrowers could handle rate rises, according to the Bank of England.
Gradual increases would not have "unusually large effects" on household spending, it said.
The bank does warn a rate rise to 2.5% would see the number of families struggling to pay their mortgages rise to 660,000 if wages stay the same.
But the Governor, Mark Carney, has repeatedly stated that when rate rises come they will be gradual and over time.
The Bank of England said: "Overall, the evidence does not suggest gradual increases in interest rates from their current historically low levels would have unusually large effects on household spending."
Yet in research, the Resolution Foundation think-tank finds that 2.2 million working households in Britain with below-median incomes are spending a third or more of their disposable income on housing, leaving an average of just £135 left over each week for other necessities.
And MPs have warned that some borrowers will have overstretched themselves when taking advantage of the interest rate, which has been at a historic low of 0.5% since 2009.
Treasury select committee chairman Andrew Tyrie said: "Interest rates have been so low for so long now that some might conclude this is the new normal. They shouldn't."
Older people are in line to benefit from any increase as they are more likely to be savers.
Don't panic! That's the broad gist of the Bank of England's latest analysis on the impact of higher interest rates.
And in case you were in any doubt, it has published a handy infographic explaining precisely why not.
If interest rates rose by 2%, which is actually a little more than markets expect, and household incomes rose by 10%, the "proportion of households with a high mortgage debt-servicing ratio would rise from 1.3% to 1.8%".
So DON'T PANIC!
One can understand why the Bank is so keen not to get anyone alarmed.
Many economists are worried that households are becoming overly accustomed to rock-bottom interest rates (they've been down at 0.5% for more than five years now).
Sounding the alarm over this prospect could well dent consumer confidence as households prepare their finances for a hard slog.
And the results from the latest NMG survey, carried out by the Bank each year, look encouraging.
This year the Bank applied a couple of tests to the data, which collects lots of information about household borrowing from around 6,000 households.
Households are becoming overly accustomed to rock-bottom interest rates
They found that the proportion of households who would need to "respond" to a rise in interest rates was lower than last year - under 40% rather than about 45%.
The second test found that the number of "vulnerable" households "would increase from around 360,000 to 480,000" - but, again, those numbers were said to be less elevated than last year.
So far so reassuring.
However, a comparison of this year and last year's articles on this topic raises a few questions. First off, the scenario they are testing for has changed.
While last year's question tested how households would cope with a 2.5% increase in interest rates, this year's paper tested their resilience to a 2% increase.
That's fair enough, given markets aren't even anticipating that sharp an increase in borrowing costs.
Odder, though, is the Bank's decision to redefine what it means by "vulnerable mortgagors".
A year ago, its definition was "mortgagors with mortgage payments in excess of 35% of their income". This time around, the definition of vulnerable borrowers is "mortgagors with a [debt servicing ratio] of at least 40%".
There is no explanation as to why its definition of vulnerable borrowers has changed.
Again, no doubt there is an explanation. And it's worth emphasising that, as far as I can tell, this year's survey shows households are more resilient than last year's.
But that judgement is based on these changed definitions rather than applying last year's tests to this year's data.
It might seem like a small quibble. But if the Bank is determined to reassure households, chopping and changing the key definitions in such a sensitive report from year to year is probably not the best way to go about it.
Written By Unknown on Senin, 08 Desember 2014 | 14.47
The number of families struggling to keep up with their mortgage payments could almost double when interest rates start rising again, the Bank of England is expected to warn.
New research by the central bank estimates there are 360,000 UK households which currently struggle to pay their mortgage - but if the rate rises from 0.5% to 2.5% that number will jump to 480,000.
However, the forecast assumes that family incomes will go up by 10%.
If incomes do not rise, the prediction is far more bleak with 660,000 households expected to have trouble making mortgage payments.
BoE governor Mark Carney has previously warned that an increase is on the way but the scale is likely to be gradual.
MPs warned that some borrowers will have overstretched themselves when taking advantage of the interest rate, which has been at a historic low of 0.5% since 2009.
Treasury select committee chairman Andrew Tyrie told The Times: "Interest rates have been so low for so long now that some might conclude this is the new normal. They shouldn't."
Labour's John Mann, who sits on the committee, said the middle classes were the "group that is most vulnerable".
He told the newspaper: "They are likely to have over-extended themselves, without being able to finance their way out of debt problems.
Britain's biggest payday lender has begun secret trials of lower-cost loans just weeks before a deadline set by the City regulator to comply with a new crackdown on the industry.
Sky News has learnt that Wonga has in the last fortnight started offering finance to a number of randomly selected customers who are offered substantially better terms than other borrowers.
The move is designed to ensure that Wonga's systems are able to adhere to the Financial Conduct Authority's new rulebook when it comes into effect on New Year's Day.
Under the FCA's rules, payday loans will have interest capped at 0.8% per day, meaning that a customer borrowing £100 will accrue a maximum level of interest of 80p per 24 hours.
Fixed default fees will be restricted to £15, while there will be an overall cost cap of 100% of the initial loan, the regulator said last month.
A Wonga spokesman declined to disclose details of the new cap-compliant product, but one insider said that it was likely to be the subject of an announcement and national launch ahead of the January deadline.
"The product makes it clear to customers what they will pay in total in pounds and pence but there is no final date yet for its launch because it is still being trialled," the source said.
Last week, Mr Lender, another short-term credit provider, announced that it was introducing the new terms to ensure compliance with the FCA's demands several weeks ahead of schedule.
The City watchdog believes that the introduction of a cap on the cost of payday loans will force most existing operators out of business, which has prompted some concerns that desperate consumers will be forced to seek even less palatable alternatives to borrow money.
The payday lending sector has accused regulators and politicians of demonising it, but executives admit that a series of scandals has made rehabilitating its image all but impossible.
Wonga has been fined for sending fake legal letters to customers in arrears, seen advertisements banned by a watchdog and written off £220m in loans after talks with the FCA about its business practices.
The company, which is owned by a consortium of prominent investors in technology groups, has overhauled its top management team this year, bringing in Andy Haste, the former boss of insurer RSA in an attempt to restore credibility.
The FCA, which intends to review the price cap in 2017, has also announced new rules for regulating payday loan intermediaries which include preventing them from charging fees and from requesting customers' payment details.
Company bosses should be held accountable for nuisance calls made to customers, according to a Government task force.
The expert panel said more than a billion unwanted calls are estimated to be made every year and are causing considerable distress to some people.
Complaints to the Information Commissioner's Office (ICO) reached 18,594 for live calls and 22,072 for automated messages between April and June.
Most related to accident claims, payday loans and debt management.
Businesses must prioritise the issue at board level and ministers should review the ICO's powers to hold executives to account if their firm breaks the rules, updating the law if needed, said the Nuisance Calls Task Force.
Which? executive director Richard Lloyd, who headed the panel, said: "(Consumers) are often confused or misled by requests for consent to being contacted, so today we set out recommendations to introduce tougher rules and more action from businesses, the regulators and the Government.
"Only through concerted and co-ordinated action will we put people back in control of their data and help bring this modern day menace to an end."
High numbers of calls and text messages are still being sent in breach of the existing legislation, according to the report.
It said consumers often do not realise they have given permission to receive messages and called for them to be able to easily withdraw consent.
Companies should ensure any sales leads they buy have been fairly and legally obtained and records of what consent has been obtained, as well as how and when, must be kept.
Culture minister Ed Vaizey said: "For too long nuisance calls have plagued consumers, often at very inconvenient times of the day and in some cases leaving vulnerable people like the elderly too scared to answer the phone.
"That's why we're determined to tackle this scourge through the first ever nuisance calls action plan.
"We've already made progress including making it easier for Ofcom to share information with the ICO about companies breaking the rules, and we're currently looking at lowering or removing the legal threshold before firms could be hit with fines of up to £500,000."
Justice minister Simon Hughes said: "We have already increased the level of fines available to punish rogue companies.
"We now want to make it easier for the Information Commissioner to take action against these companies which break the law.
"Those responsible should be held to account, and we will review how they are made to answer for any wrongdoing."
Written By Unknown on Minggu, 07 Desember 2014 | 14.47
By Mark Kleinman, City Editor
A top civil servant is in line to become the next head of the communications regulator Ofcom, Sky News can exclusively reveal.
Sharon White, the Second Permanent Secretary to the Treasury, is understood to have been recommended to the Culture Secretary Sajid Javid as Ofcom's new chief executive, according to sources in Whitehall.
Ms White's appointment has not yet been ratified by Mr Javid and could yet fall through, resulting in another candidate being selected, they said.
If it is approved, however, she could be officially confirmed in the role as early as next week.
The next chief executive of Ofcom will assume responsibility for a bulging in-tray just months before the General Election next May.
Among the companies which Ofcom is responsible for regulating is Sky plc, the owner of Sky News.
Earlier this week, the regulator angered Royal Mail by rejecting its claims that opening the end-to-end delivery market to competitors was jeopardising the viability of the Universal Service Obligation, which requires the company to deliver to every UK address for the price of a stamp.
It is also engaged in an inquiry relating to the sale of Premier League broadcasting rights, and is drawing up plans for a review to launch before Christmas of public service broadcasting in the UK.
Ofcom has one of the widest regulatory remits in Britain, overseeing the TV and radio sectors, fixed line telecoms, mobiles, postal services, and the airwaves over which wireless devices operate.
Ms White, who would become the first woman to head Ofcom, has spent 25 years as a civil servant, initially at the Treasury during the 1990s, before stints in Washington and at the Number Ten policy unit.
Regarded as "a star performer" by many of her Whitehall colleagues, she has also worked at the World Bank at the Department for Work and Pensions and Ministry of Justice.
She rejoined the Treasury in 2011 to lead a review of the department's response to the financial crisis, and now has responsibility for the public finances.
Ms White, who has been in her current role for just over a year, is also part of one of Britain's most influential couples: her husband is Robert Chote, chairman of the Office for Budget Responsibility, which scrutinises the Government's spending plans.
Ofcom's current chief executive, Ed Richards, will step down at the end of this month, having run the organisation for just over eight years. He has been on its board since March 2003.
Announcing his intention to step down in October, Mr Richards said:
"It has been a privilege to lead Ofcom during such an exciting and dynamic period in the evolution of the UK's communications sector.
"It is never easy leaving a job that you enjoy greatly but I have always felt that once I had completed eight years as chief executive this would be the right time to move on."
Patricia Hodgson, the chairman, said Mr Richards would leave "an impressive legacy", adding:
"Under his leadership, Ofcom has helped to deliver superfast broadband, 4G, lower prices, innovation, competition, and sustainable public service broadcasting in the UK."
The search for Ofcom's new chief executive has been led by The Zygos Partnership, a search firm.
The Business Secretary is asking regulators to examine so-called "pay to stay" demands of suppliers to major firms.
Vince Cable took to Twitter to denounce such practices as "wrong" in the wake of revelations the maker of Mr Kipling cakes and Bisto gravy, Premier Foods, had renewed a call for a payment from suppliers if they wanted to remain on its books.
The issue gained momentum after the BBC's Newsnight programme accused the company of raking in millions of pounds.
Premier Foods, which has struggled financially for several years, defended the payments as investments and insisted suppliers benefited from the arrangement.
But the issue is to be referred to the Competition and Markets Authority by Mr Cable and the company faced a furious reaction from the wider business community as 'pay to stay' - used by a variety of firms - came under scrutiny.
Simon Walker, director general of the Institute of Directors said the practice amounted to "holding small businesses and suppliers at gun-point."
He added: "The news that Premier Foods could be forcing its suppliers into controversial 'pay to stay' arrangements is deeply disturbing.
"At a time when public faith in business is painfully low, such unacceptable behaviour puts a bullet in the chamber for those who think the heavy-hand of regulation is the only way to change the culture of corporate Britain."
The Federation of Small Businesses (FSB) said the firm's bosses "should be ashamed of themselves" for "demanding a cash gift under the threat of de-listing".
It warned many smaller outfits would go bust unless 'pay and stay' arrangements were dealt with.
The FSB said one small business in the South West was asked to hand over £1,700 "to secure the chance for future business."
Premier Foods said: "We launched our 'invest for growth' programme in July last year as part of a broader initiative to reduce complexity in support of plans to help turnaround the business.
"This included a commitment to halve the number of our suppliers and develop more strategic partnerships focused on mutual growth.
"As part of the programme, our suppliers are asked to make an annual voluntary investment to help fund our growth plans.
"In return, our suppliers benefit from opportunities to secure a larger slice of our current business. They also stand to gain as our business grows in the future.
"In the current challenging environment, the support of all of our suppliers is crucial.
"We are delighted with the positive response we have had from many who are actively engaging in building a new partnership with us, including many small companies.
"Indeed, many of our suppliers have seen their business grow as a result."
US job creation smashed estimates last month with 321,000 new positions, although the jobless rate remained static.
The Labor Department said it was the strongest monthly performance in almost three years and wages also increased - a development which may bring the Federal Reserve closer to raising interest rates.
But the unemployment rate held steady at a six-year low of 5.8% despite the big increase in employment.
November marked the tenth-straight month that job growth has exceeded 200,000, the longest stretch since 1994 and further confirmed the economy is weathering slowdowns in China and the eurozone.
Average hourly earnings rose 2.1% in the year to November - still below the increase of 3% or more that economists say would make the Fed comfortable lifting rates, but an improvement.
There was also positive news in terms of fresh four-year lows in the numbers giving up looking for work and in long-term unemployment figures.
Job gains were also broad-based across the economy, with retail payrolls rising strongly ahead of the holiday shopping season.
Separate figures showed the US trade deficit fell slightly in October as exports rebounded while oil imports dipped to the lowest level in five years amid the rush for US shale oil.
The Commerce Department says the deficit edged down 0.4% to $43.4bn (£27.7bn).
Exports climbed 1.2%.
The figures sparked a rally in world stocks, with the FTSE 100's gains hitting 1% on the day shortly after the announcements.
US futures pointed to a slightly higher openings on Wall Street.
