China: Brit To Design World's Biggest Airport

Poundland To Spend Â£55m On 99p Stores Buyout

Written By Unknown on Sabtu, 07 Februari 2015 | 14.47

Poundland has agreed a £55m takeover of discount rival 99p Stores, subject to clearance by competition authorities.

Poundland, which has previously expressed an ambition to double its UK and Ireland network of more than 500 stores, said the deal comprised a cash consideration of £47.5m and the issue of new Poundland Shares with a value of £7.5m.

The company's statement said: "Poundland believes that the combination of the two businesses will provide better choice, value and service for 99p Stores' customers."

However, it was confirmed that 99p shoppers would have to pay a bit more for each item under Poundland's plans.

Its chief executive Jim McCarthy said paying an extra 1p for goods at the expanded Poundland chain, where everything costs £1, would not be a problem for customers.

He argued the quality of his offering "more than compensates" and he pointed to the prospect of shorter till queues too as fewer people required change.

It planned to take ownership of all 251 stores trading as 99p Stores or Family Bargains, as well the group's warehouse and distribution centre, which would all be rebranded under the Poundland name over time.

But Poundland said the acquisition was conditional on the approval of the Competition & Markets Authority (CMA), which had already held preliminary talks with both parties.

The statement added: "The CMA may require Poundland to take actions or give remedies to address any impact on competition arising as a result of the proposed transaction.

"The CMA will commence its public consultation and review process shortly and this process is expected to take at least two months.

"The proposed transaction is conditional on an outcome of this CMA process that is acceptable to Poundland and to the CMA."

Poundland opened its first store in 1990 and its growth has formed part of the changing face of the high street since the collapse of Woolworth's in 2008 and the financial crisis.

99p Stores was founded by Nadir Lalani with a single site in Holloway, north London, in 2001.

The discount sector has become somewhat squeezed given the rise in recent years of supermarket chains such as Aldi and Lidl, where consumers can also complete a food shop.

99p Stores had recently expanded its offering to include more food products, including baked goods.

14.47 | 0 komentar | Read More

China: Brit To Design World's Biggest Airport

We use cookies to give you the best experience. If you do nothing we'll assume that it's ok.

1/3

Gallery: Brit to design Chinese Airport

The world largest airport will be built in China and is being designed by British architect Dame Zaha Hadid

A design by the prize-winning architect has been unveiled for Beijing's Daxing Airport which will be built over just three years in the Daxing district of Beijing

]]>

Dame Zaha won the Pritzker Architecture Prize in 2004 and the Stirling Prize in two consecutive years, 2010 and 2011

]]>

By Mark Stone, China Correspondent in Beijing

The world's largest airport is to be built in China, designed by a British architect.

A design by Dame Zaha Hadid has been unveiled for Beijing's Daxing Airport, which will be built over just three years in the Daxing district to the south of the Chinese capital.

Dame Zaha won the Pritzker Architecture Prize in 2004 and the Stirling Prize in two consecutive years, 2010 and 2011.

Her work has become familiar in the Chinese capital, after she designed the iconic Galaxy Soho building in the city's Chaoyang District.

The airport will open in 2017 and will be the city's second international hub. The current airport, Beijing Capital International Airport, is also designed by a British architect, Sir Norman Foster, and is currently the world's second busiest by passenger numbers, handling 83 million people in 2013.

1/9

Gallery: New Superyacht Designs Released

Award-winning architect Zaha Hadid has collaborated with renowned shipbuilders Blohm+Voss to design a new superyacht.

The designers have produced two concepts so far. On the left is the engineered design concept for a vessel named Jazz, while on the right is a master prototype.

]]>

An exoskeleton structure would connect the boats' various levels and decks.

]]>

The new airport will operate in addition to the current airport and will have capacity for at least 100 million passengers per year. It will have a staggering seven runways and is expected to ease congestion elsewhere.

In a statement, Zaha Hadid Associates said: "Initially accommodating 45 million passengers per year, the new terminal will be adaptable and sustainable, operating in many different configurations dependent on varying aircraft and passenger traffic throughout each day.

"With an integrated multi-modal transport centre featuring direct links to local and national rail services… the new Daxing airport will be a key hub within Beijing's growing transport network and a catalyst for the region's economic development, including the city of Tianjin and Hebei Province."

Dame Zaha, who was born in Iraq, was behind the Aquatics Centre for the London Olympics in 2012. Her trademark extravagance is on display in the new design for the vast new airport which incorporates a star-like shape with smooth curves.

It will be built with the help of engineers from France's ADPI Group, a world leader in airport design.

Beijing's current airport has three terminals. The area occupied by Terminal Three alone is larger than the whole of London's Heathrow Airport combined.

The expansion of the aviation market in China is extraordinary. The growing Chinese middle class is continuing to boost passenger numbers with more and more people able to afford air fares.

Low-cost airline options are still limited within China, but plans to expand this particular market will boost passenger numbers further.

Boeing and Airbus both expect the Chinese market to be their most important growth area over the coming decade as government regulatory reforms take hold and consumer behaviour changes.

China is determined to break the monopoly held by Airbus and Boeing with its own home-grown aviation industry.

A Chinese firm is trying to secure international certification for the C919 – a "Made-in-China" passenger plane.

Airbus already assembles its own passenger planes in China.

Boeing recently estimated that China will need 6,020 new planes over the next 20 years with its domestic route market expected to grow by 65%.

Recommended by Outbrain Recommended by Outbrain

Written By Unknown on Jumat, 06 Februari 2015 | 14.47

MPs have accused the accountancy firm PriceWaterhouseCoopers (PwC) of promoting "tax avoidance on an industrial scale".

An investigation by the Commons' Public Accounts Committee (PAC) found the firm's "complex strategies and contrived structures" helped large companies cut their tax bills.

A report by the committee alleges PwC's arrangements to divert profits via Luxembourg "bear all the characteristics of a mass-marketed tax avoidance scheme".

PwC has denied the claims, issuing a statement saying it strongly disagrees with the PAC's conclusions.

"We stand by the evidence we gave the Public Accounts Committee and disagree with its conclusions about the work we do," the statement said.

"But we recognise we need to do more to explain the positive role we play in the tax system and in helping businesses to operate successfully.

"We agree the tax system is too complex, as governments compete for investment and tax revenues.

"We take our responsibility to build trust in the tax system seriously and will continue to support reform."

MPs launched an investigation after hundreds of documents were leaked last year.

The documents appeared to show how the firm secured deals with Luxembourg tax authorities for 343 multinational companies between 2002 and 2010.

Margaret Hodge, chair of the committee, said: "We believe that PwC's activities represent nothing short of the promotion of tax avoidance on an industrial scale.

"The effect has been to reduce the amount of corporation tax that some multinational companies pay in the countries in which they make their profits."

The PAC's report said many companies that received advice from PwC are well-known to the public, including Amazon, Ikea, Burberry and Vodafone.

"These deals appeared to contradict the evidence which PwC had given us in 2013," the report said.

"PwC had told us that it does not sell schemes but the Luxembourg leaks suggest that PwC had advised many multi-national firms to adopt similar complex financial structures for the purpose of avoiding tax."

The PAC has called for the Government to take a more active role in regulating the tax industry.

14.47 | 0 komentar | Read More

Twitter Shares Soar As Revenue Almost Doubles

Twitter's share price rose almost 10% after-hours when the social network reported a near doubling in quarterly revenue, despite weaker than anticipated user growth.

Its latest results showed Twitter raked in $479.1m (£312.5m) during the final three months of 2014, with mobile advertising revenue amounting to 88% of the total.

Its efforts to secure more cash from outside the US also appeared to be paying off, with international revenue more than doubling on the same period last year.

However, Twitter remained loss-making at $125m (£82m) during the quarter.

The number of new Twitter users was less than expected - at four million over the three months.

It had 288 million monthly users at the end of 2014 - a rise of 20% on a year earlier - and the company's boss said the results showed that Twitter had demonstrated it was able to make money from the users it has.

Dick Costolo, who had earlier promised a crackdown on so-called trolls using Twitter - said: "We have a number of projects under way to grow our user base and provide a compelling valuable experience to anyone in the world whether they have a Twitter account or not."

He told investors in a conference call the plans involved strengthening the core Twitter service, making it easier to join and use and building new applications and services.

Twitter's biggest challenge is growing its user base as it slips behind rivals in growth terms.

LinkedIn reported 347 million users through the end of December while Facebook-owned photo sharing app Instagram recently surpassed 300 million users.

Facebook has 1.39 billion members.

Twitter's stock on the NYSE jumped 9% after-hours in the wake of the release of the earnings report.

Ahead of the results, the stock had fallen almost 40% over the past year largely a result of the concerns about user growth.

14.47 | 0 komentar | Read More

Poundland To Spend Â£55m On 99p Stores Buyout

Poundland has agreed a £55m takeover of discount rival 99p Stores, subject to clearance by competition authorities.

Poundland, which has previously expressed an ambition to double its UK network of more than 500 stores, said the deal comprised a cash consideration of £47.5m and the issue of new Poundland Shares with a value of £7.5m.

"Poundland believes that the combination of the two businesses will provide better choice, value and service for 99p Stores' customers," the statement said.

It would take ownership of 251 stores trading as 99p Stores or Family Bargains as well the group's warehouse and distribution centre.

Poundland said the acquisition was conditional on the approval of the Competition & Markets Authority (CMA), which had already held preliminary talks with both parties.

The statement added: "The CMA may require Poundland to take actions or give remedies to address any impact on competition arising as a result of the proposed transaction.

The CMA will commence its public consultation and review process shortly and this process is expected to take at least two months.

"The proposed transaction is conditional on an outcome of this CMA process that is acceptable to Poundland and to the CMA."

Jim McCarthy, Poundland's chief executive, said: "This is a good deal for both businesses and will benefit customers and shareholders.

"Through working together, Poundland will improve choice, value and service for 99p Stores' customers, bringing Poundland's proven know-how and range to 99p Stores.

"We also believe that we can improve the performance of the 99p Stores estate and generate further value for Poundland's shareholders.

"We look forward to working with the CMA as it undertakes its review."

More follows...

14.47 | 0 komentar | Read More

Tesco Facing Probe Over Supplier Dealings

Written By Unknown on Kamis, 05 Februari 2015 | 14.47

An official investigation is to be launched into practices at supermarket giant Tesco including delays in payments to suppliers.

The move was announced by the Groceries Code Adjudicator (GCA), Christine Tacon, who said she had formed a "reasonable suspicion" that the retailer has breached supply guidelines.

She said she took the decision after considering information submitted to her following Tesco's profit over-statement last September.

She has discussed the practices with Tesco and will now seek more information from direct suppliers and others to determine what further action to take.

The post of Adjudicator was set up in 2013 to monitor the relationship between the 10 largest retailers and their suppliers.

The investigation, the first to be held, is expected to take up to nine months, and the Adjudicator has called for evidence to be submitted by 3 April.

It will cover the conduct of Tesco plc from 25 June 2013 (when the GCA was created) to 5 February this year.

A statement said: "The investigation will consider the existence and extent of practices which have resulted in delay in payments to suppliers. This will include in particular, but not be limited to, delay in payments associated with:

:: Short deliveries, including imposition of penalties

:: Consumer complaints where the amounts were not agreed

:: Invoicing discrepancies such as duplicate invoicing where two invoices were issued for the same product

:: Deductions for unknown or un-agreed items

:: Deductions for promotional fixed costs (gate fees) that were incorrect

:: Deductions in relation to historic promotions which had not been agreed."

The investigation will also look into suppliers having to make payments for better positioning of goods on shelves which are not related to a promotion.

Initially the probe will be restricted to Tesco but could be expanded to include other supermarkets if warranted.

Ms Tacon said: "I have taken this decision after careful consideration of all the information submitted to me so far.

"I have applied the GCA published prioritisation principles to each of the practices under consideration and have evidence that they were not isolated incidents, each involving a number of suppliers and significant sums of money."

A Tesco spokesman said: "We have worked closely with the office of the Adjudicator since its creation to put in place strong compliance processes.

"We have taken action to strengthen compliance and, as we have announced, we are changing the way we work with suppliers.

"We will continue to co-operate fully with the GCA as she carries out her investigation and welcome the opportunity for our suppliers to provide direct feedback."

14.47 | 0 komentar | Read More

SFO Head Warns Over Risk To Blue-Chip Probes

By Mark Kleinman, City Editor

Proposals favoured by the Home Secretary to fold the Serious Fraud Office (SFO) into a wider crime-fighting agency could jeopardise high-profile inquiries into companies such as Barclays and Tesco, its head has warned.

In his first television interview since taking on the post nearly three years ago, SFO director David Green told Sky News that Theresa May's plans would be "massively disruptive to existing investigations".

His warning, just over three months before the General Election, threatens to spark a new row over the future of the SFO even as it continues its recovery from a string of embarrassing revelations about its performance.

Mr Green, a former barrister, said the hiatus triggered by the SFO's abolition would "provide succour to those individuals and companies who feel the right course is not to cooperate (with us) in the course of an investigation".

He acknowledged that decisions about the agency's future were "a matter for the government of the day" but insisted that "the idea of breaking up that model with no evidence that what one was moving to would be any better... is just not sensible".

In a wide-ranging interview, Mr Green said he understood public frustration over the lack of successful prosecutions of bank employees following the financial crisis and a string of trading scandals.

The SFO has about 80 people working on an investigation into the manipulation of the Libor interbank borrowing rate, with 13 people having been charged to date and one having pleaded guilty.

Asked whether he believed there was evidence to suggest that foreign exchange markets had been the subject of criminal fraud by traders, Mr Green said: "The statutory trigger for me to launch an investigation is for me to have reasonable grounds to suspect that the conduct may involve serious and complex fraud."

He added that he believes there was a case for criminal sanctions to be extended to the abuse of other important financial benchmarks, an approach that the Government has announced it will adopt.

The SFO chief refused to comment on any of the cases being examined by the agency, which also include Rolls Royce Holdings and Tesco.

He did not deny, however, suggestions of tensions between the SFO and the Financial Conduct Authority (FCA) around a £263m overstatement of profits at Britain's biggest retailer.

Insiders say that FCA officials were furious that the SFO's decision to launch a criminal inquiry in September effectively forced it to abandon its own case.

"We certainly had discussion about it and it was resolved in favour of a criminal investigation by us," he said.

"Obviously they saw things from their angle and we saw them from ours - but that often happens with Government agencies and we resolved any difficulty there was."

Under Mr Green's leadership, the SFO has improved its performance, settling an embarrassing damages claim filed by Vincent Tchenguiz and his brother Robert, who were arrested in 2010 as part of a botched probe by the agency.

Mr Green declined to apportion blame for historic failings but said that a review of the SFO's performance in November by the Crown Prosecution Service Inspectorate was based on fieldwork undertaken a year earlier.

"One of the things that report said was that the SFO was not in a position to do effective heavyweight investigations. I think that is demonstrably wrong," he said.

Recent successes for Mr Green's staff have included the conviction of a former hedge-fund manager from Weavering Capital and a one-time boss of JJB Sports.

He defended the length of time required to bring cases to trial, saying their complexity meant that was inevitable.

"I make no particular apology for that," he said. "I would rather do things correctly and thoroughly than rush to judgement."

Mr Green also said that while he had never had difficulty securing sufficient funding for cases being pursued by the SFO, he was concerned about the level of resource devoted to tackling "mid-level and lower levels" of fraud.

"Very good work is done by the National Crime Agency and the City of London Police but nowhere near sufficient resource is devoted to that in my view and that... is a matter of public confidence."

Mr Green's term as the SFO director is due to expire next year, but he said he had given no thought to extending it and had held no discussions about it.

"I love this job but... the choice of whether or not I continue is in the hands of whoever is attorney general at the time," he said.

14.47 | 0 komentar | Read More

BT To Buy Mobile Firm EE For Â£12.5bn

BT has agreed to buy mobile operator EE in a cash and shares deal worth £12.5bn, the company has revealed.

The group announced in December it was in talks to buy Britain's largest mobile operator and the deal, which will be partly financed with a £1bn share issue, will now create the UK's leading communications provider.

EE's current owners Deutsche Telekom and Orange will hold stakes of 12% and 4% in BT, with Deutsche getting a seat on the board.

Gavin Patterson, BT chief executive, said: "This is a major milestone for BT as it will allow us to accelerate our mobility plans and increase our investment in them."

More follows...

14.47 | 0 komentar | Read More

New Co-Op Chairman To Donate Pay To Charity

Written By Unknown on Rabu, 04 Februari 2015 | 14.47

By Mark Kleinman, City Editor

The businessman being lined up as the Co-operative Group's first independent chairman is to donate his six-figure pay package to charitable causes linked to the mutual.

Sky News has learnt that Allan Leighton is expected to declare his intention to give away his salary if he is confirmed in the role as expected in the coming days.

The gesture, which has yet to be formally agreed, would reflect Mr Leighton's commitment to the role, according to insiders.

Another option said to have been raised by board members was to pay Mr Leighton a token annual salary of £1.

Discussions about his appointment are understood to have been held by Co-op board members on Tuesday, with the group keen to finalise his appointment as soon as possible, a source added.

If Mr Leighton does take the role, it would represent a major coup for the UK's biggest mutual as it strives to rebuild its reputation after two years of crisis.

The size of the salary which Mr Leighton would accept on a nominal basis was unclear but is understood to run to six figures.

Sky News revealed on Monday that he was in pole position to take the role, with board members attracted to his track record at running organisations with large numbers of employees and reputation for shaking up troubled institutions.

A former chief executive of Asda, Mr Leighton became a prominent figure during talks over the future of Royal Mail during a stint as its chairman several years ahead of the postal operator's privatisation.

His current roles include the chairmanships of Entertainment One, the media group, the set-top box manufacturer Pace and the retail chain Matalan.

Joining the Co-op would represent an important personal step for Mr Leighton, who has frequently cited his father's career as a Co-op store manager in media interviews during recent years.

During his time at Royal Mail, Mr Leighton advocated transforming the business into a mutually owned organisation, and he is understood to have sought a number of assurances about potential reforms at the Co-op during talks with board members.

The Co-op has been seeking a new chairman to succeed Ursula Lidbetter, who took on the role temporarily last year, for several months.

The group was left reeling in 2013 when it emerged that its banking arm was facing a £1.5bn black hole as it tried to acquire more than 630 branches from Lloyds Banking Group.

The Co-op Bank's chairman, Paul Flowers, was subsequently exposed by a tabloid newspaper as a serial drug-user, plunging the Co-op name deeper into crisis even as it surrendered control of the high street lender to American hedge funds.

Separate independent inquiries led by Lord Myners, the former City Minister, and Sir Christopher Kelly, a former civil servant, concluded that there was a need for an urgent overhaul of the Co-op's governance, board structure and array of commercial activities.

There was further turmoil at the top last year when Euan Sutherland quit as the group's chief executive after details of his pay package were leaked to the media.

Mr Sutherland was replaced by Richard Pennycook, a former director of Wm Morrison, the supermarket chain.

Since then, Co-op members have voted to approve reforms including reducing the number of lay directors on its board and the appointment of a majority of independent directors.

Last year, the Co-op Group - which boasts annual turnover of £11bn from businesses ranging from food retailing to funeral-care - returned to the black following a £2.5bn loss in 2013.

The group's seven million members will have the opportunity to vote this year on whether it should end decades of financial support for the Labour Party.

A Co-op spokeswoman declined to comment on Tuesday.

14.47 | 0 komentar | Read More

BBA To Osborne: City Traders 'Need Licence'

By Mark Kleinman, City Editor

All traders in Britain's financial markets should be forced to seek professional qualifications before they can operate, the banking industry's main lobbying group is to tell George Osborne.

Sky News has learnt that the British Bankers' Association (BBA) will say in a submission to a Treasury-led consultation that recent City scandals mean the time has come for participants in financial markets to be formally licensed.

It will suggest that a range of qualifications should be established which would constitute "a licence to trade", and will argue that industry codes of conduct should be endorsed by regulators in order to provide them with added teeth.

The recommendation will represent a watershed moment following years of resistance from the UK's biggest banks for a statutory professional qualifications regime for those operating in the fixed-income, currencies and commodities (FICC) markets.

If implemented, it would mean a new licensing regime would be required, potentially for hundreds of thousands of employees in London and across the UK.

The BBA paper, which is expected to be made public on Wednesday, is being submitted to the Treasury following the launch of an inquiry called the Fair and Effective Markets Review by the Chancellor last year.

Speaking at Mansion House last June, Mr Osborne said: "The integrity of the City matters to the economy of Britain. Markets here set the interest rates for people's mortgages, the exchange rates for our exports and holidays, and the commodity prices for the goods we buy.

"I am going to deal with abuses, tackle the unacceptable behaviour of the few and ensure that markets are fair for the many who depend on them."

The launch of the review followed two years of regulatory settlements between banks and financial watchdogs in London, New York and elsewhere in relation to the widespread manipulation of the Libor interbank borrowing rate.

Lenders including Barclays, HSBC, Lloyds Banking Group and Royal Bank of Scotland were fined hundreds of millions of pounds for the abuse, which have been followed by similar manipulation in the foreign exchange markets.

In December, the Treasury announced that the Government would extend legislation put in place to regulate Libor to seven additional financial benchmarks, with those found guilty of manipulating them facing up to seven years in prison.

The BBA's submission is also understood to call for an extension of UK regulators' senior managers' regime to all non-retail market participants in order to create a level playing field with retail banks.

It will also raise the alternative option of extending a certification regime on which the Financial Conduct Authority is consulting to those operating in wholesale markets who fall outside the current framework, according to an insider.

Since the financial crisis of 2008, a number of UK Government reviews have prompted a toughening of standards for bank employees.

The Parliamentary Commission on Banking Standards called for far greater accountability for senior bankers, with a string of measures now being implemented.

The industry has also attempted to weigh in with the creation of the Banking Standards Review Council, which will attempt to reshape culture and staff behaviour but will not have formal disciplinary powers.

The BBA declined to comment on Tuesday.

14.47 | 0 komentar | Read More

Sky Beats Forecasts With Strong UK Growth

The UK's biggest pay-television company underlined continuing growth opportunities in its home market on Wednesday with a strong set of half-year results.

Sky plc, the owner of Sky News, said that adjusted operating profit in the six months to December 31 rose by 16% to £675m, with revenue up 5% to just over £5.6bn.

The performance beat City forecasts, and featured a number of notable achievements, including Sky's highest customer growth in nine years and the addition of 1m product sales, the highest level for four years.

Sky, which has just launched Fortitude, the most expensive drama it has ever produced, also said that new revenue streams such as its Sky Store on-demand service had performed well.

Last year, the company struck separate deals costing around £7bn to acquire control of its namesake operations in Italy and Germany.

It said that growth in Germany had hit a record level with 214,000 new customers and the highest growth in 12 quarters in Italy.

Jeremy Darroch, Sky's chief executive, said the results represented "an excellent operational and financial performance".

"The strength of our performance in the UK and Ireland shows that our approach to segmenting the market with the complementary Sky and NOW TV brands is working," he said.

"Across the board, customers are responding to our investment in more high-quality TV and innovative new services.

"This has resulted in the highest customer growth in nine years, the highest total product growth in four years and the lowest churn in a decade."

Since the end of 2014, Sky has announced a partnership with Telefonica Europe that will allow it to offer mobile voice and data services to customers.

Those services are expected to launch next year.

More immediately, Sky faces a crucial test of its ability to retain its position as the leading broadcaster of live Premier League football.

An auction of seven packages of matches for the three years from 2016-17 is scheduled to get underway on Friday.

BT, the other incumbent rights-holder, and Discovery Communications, which has a controlling stake in Eurosport, are also expected to bid.

14.47 | 0 komentar | Read More

'No Justification' For Energy Prices - Report

Written By Unknown on Selasa, 03 Februari 2015 | 14.47

The big six energy companies are failing to pass on price cuts in full - costing the average household £145 a year - a new report says.

Which? said its research shows a failure to align retail prices with wholesale costs has seen consumers forced to fork out an extra £2.9bn over the last year.

It came as Ofgem, the government department charged with protecting the interests of electricity and gas consumers, was criticised for advising families to save money by making packed lunches or by jogging instead of joining a gym.

According to Which? there was "no justification" to increases in gas and electricity prices in late 2013, based on wholesale costs.

And it argued the recent cuts of up to 5.1% in standard gas tariffs by the so-called 'big six' energy suppliers should have been higher.

The report claimed that if they were aligned with wholesale energy costs, the reductions in gas and electricity prices should have been around 10%.

Which? executive director Richard Lloyd said: "Our analysis places a massive question mark over how suppliers have been setting prices over the last two years.

"They now need to explain to their customers why bills don't fall further in response to dropping wholesale prices.

"While the competition inquiry should establish beyond doubt whether the price people are paying today is right, consumers will now look to politicians of every party to set out how they'll deliver fair and affordable energy prices in the future."

Ofgem was accused of "adding insult to injury" over its cost-cutting advice to consumers, which also included switching to a second-hand phone and not buying coffee.

Eva Jasiewicz, from Fuel Poverty Action, told Sky News that Ofgem was not protecting the interests of consumers, 68% of whom she said want energy brought back into public control.

"Ofgem are blaming the poor, they should be putting the blame on the big six," she said.

"The big six energy companies have been making massive profits (and) no one's asking the CEOs of these companies to cut down.

"They're giving themselves multimillion-pound pay packets, but they're not passing on the cuts at all in the price of fuel to consumers."

14.47 | 0 komentar | Read More

BP Full-Year Profit Down 9.7% Amid Crude Slide

Oil giant BP has seen its full-year profit drop by almost 10%, amid a global slide in crude prices.

It said the underlying replacement profit for the 12 months ending in December was $12.1bn (£8bn) against $13.4bn (£9bn) in the previous year.

The fall of 9.7% was less than expected by industry analysts.

Its major production partnership with Russia's Rosneft saw a profit decline of almost 15%.

BP said net debt for the company at the end of 2014 stood at $22.6bn, compared with $25.2bn in 2013.

The company, which is still feeling the effects of the Gulf of Mexico oil spill in 2010, said it suffered a fourth quarter pre-tax charge of $477m, taking the full-year total to $819m.

The declining fortunes come as global crude prices have dropped by around half since June.

On Monday an oil summit was held in Aberdeen where Scotland's First Minister Nicola Sturgeon described the situation as "very challenging".

Industry leaders called for tax cuts in the sector that employs around 440,000 people across Britain.

BP said it would reduce its global capital expenditure this year to around $20bn, down from a previous estimate of some $25bn.

Last week rival Shell said it would cut its expenditure by around 4.5%, while Chevron said it would slice spending by 13%.

More follows...

14.47 | 0 komentar | Read More

Ocado Sees First Profit Since Launch In 2000

Online grocery firm Ocado has reported its first annual pre-tax profit since it was launched in 2000.

The company said in the year to November 30 its profit reached £10.1m.

The figure was in line with expectations and comes on the back of a £3.8m loss in the previous year.

The company signed a deal with supermarket chain Morrisons in 2013.

Analysts said the online delivery sector was currently growing at around 15% a year.

Group sales for the year rose by a fifth, to £1.03bn.

More follows...

14.47 | 0 komentar | Read More

Sovereign Funds Dial Up Â£3bn O2 Mobile Stake

Written By Unknown on Senin, 02 Februari 2015 | 14.47

By Mark Kleinman, City Editor

A pack of the world's biggest sovereign wealth funds are pursuing a stake in the company that is poised to become the UK's largest mobile phone operator.

Sky News has learnt that state-backed investors from China, Singapore and the Middle East have approached advisers to Hutchison Whampoa, the Hong Kong-based conglomerate, about acquiring shares in a merged O2 and Three.

The combined group, which will be created by Hutchison's purchase of O2 for £10.25bn, is expected to have an enterprise value of approximately £15bn.

It would carry debts of roughly £6bn, and Hutchison has signalled that it will sell about 30% of the new company - worth in the region of £3bn - to institutional investors.

Sources said on Saturday that the Hong Kong-based company had already received a string of enquiries from potential buyers of shares.

The discussions are at an early stage, but are said to include approaches from the Government Investment Corporation of Singapore and a number of giant Canadian pension funds.

The appetite from sovereign investors underline the continuing interest in UK companies following the Qatari takeover of London's Canary Wharf business district and Friday's purchase of a 9.9% stake in British Airways' parent by Qatar Airways.

Hutchison Whampoa won a period of exclusivity to negotiate a takeover of O2 with Telefonica, its Spanish parent, earlier this month, with talks said to be progressing well.

The deal is the second major transaction in the UK mobile sector in quick succession, with BT expected to finalise the terms of its £12.5bn takeover of EE - currently the country's biggest network - in February.

The mergers have sparked concerns about the prospect of higher charges for mobile phone customers, with Three's status in the market as a 'challenger' to its bigger rivals seen by analysts as unsustainable if its owner's takeover of O2 is completed.

This week, Sky plc, the owner of Sky News, struck a deal with Telefonica UK that will allow it to offer mobile voice and data services for the first time.

Like rivals BT, Vodafone and TalkTalk, the move will enable Sky to provide the 'quad-play' of fixed and mobile telecoms, broadband and pay-TV to its customers.

The O2 purchase will be the latest in a series of takeovers led by Li Ka-shing, the Hutchison chairman who has become the UK's biggest foreign direct investor.

In addition to 3, Mr Li's businesses own Superdrug, the container port at Felixstowe and the Eversholt rail company.

Telefonica had been in talks to sell O2 to BT before the British telecoms group decided instead to pursue talks with EE, which is jointly owned by Deutsche Telekom and France Telecom.

14.47 | 0 komentar | Read More

Greece In New Debt Deal Talks With Osborne

Greece's finance minister is due to meet British counterpart George Osborne, as Athens launches its drive to secure a new debt agreement.

Yanis Varoufakis is in London after holding talks in Paris, where he compared Greece to "drug addicts craving the next dose" of loan tranches.

Greece wants to end its existing arrangement with the European Union, the European Central Bank and International Monetary Fund "troika" when its aid deadline expires on 28 February.

Mr Varoufakis said it was time for his country to go "cold turkey".

"For the last five years, Greece has been living for the next loan tranche," he said.

"We have resembled drug addicts craving the next dose. What this government is all about is ending the addiction,"

Greece has begun to roll back on austerity measures imposed under its existing bailout deal and France says it will try to help the country's new government find a debt agreement.

French finance minister Michel Sapin ruled out cancelling the debt but said Athens was right to be concerned about the burden of its repayments.

"France is more than prepared to support Greece in this approach," he said.

"I am confident that Greece will be in a position to overcome the present challenges. I am confident that the Greek government will be in a position to produce indispensable reforms.

"Anything that can alleviate the Greek debt burden will be welcome... but of course there is no question of cancelling the Greek debt."

Mr Osborne said: "I welcome this opportunity, so soon after the Greek election, to discuss face to face with Yanis Varoufakis the stability of the European economy and how to boost its growth."

Prime Minister David Cameron initially responded to Syriza's rise to power by warning it would increase "economic uncertainty across Europe" but later offered the new leader UK help on tax collection.

Greek Prime Minister Alexis Tsipras wants to agree a bridging deal with the troika to gain breathing space.

He hopes a new deal can be negotiated to reduce Greece's unmanageable public debt burden of more than 175% of its economic output, or €320bn (£240m).

14.47 | 0 komentar | Read More

Ex-BP Boss Hayward Lures Monaghan To Genel

By Mark Kleinman, City Editor

The oil company led by Tony Hayward, the former boss of BP, is poised to announce a shake-up of its executive team four years after it was founded.

Sky News has learned that Genel Energy, which is listed on the London Stock Exchange, will issue a statement on Monday in which it will say that Julian Metherell is to step down as its chief financial officer.

Mr Metherell, a former partner at Goldman Sachs, is expected to retire at Genel's annual meeting in the spring, having played a key role in the company's development.

He will be replaced by Ben Monaghan, one of the City's top oil and gas sector bankers.

Mr Monaghan is understood to have resigned from his role leading JP Morgan's European energy business on Friday, and a source close to the bank said that he had done so in order to join Genel.

The timing of Mr Metherell's departure is understood to have been planned for months, and is likely to presage further change in the next year or so, with Mr Hayward expected to move into the chairman's role.

The management change comes as the world's oil producers grapple with the implications of the fall in crude prices over the last six months.

Genel, whose operations are focused on Kurdistan, reduced its revenue forecasts earlier this month in the wake of the declining oil price.

The company said revenue in 2015 would be up to $200m lower at between $350m and $400m, reflecting its expectation that Brent crude prices will remain subdued at around $50-a-barrel rather than the $80 on which earlier projections had been based.

Mr Hayward, who raised hundreds of millions of pounds to acquire Genel after leaving BP in the aftermath of the Gulf of Mexico oil spill in 2010, said the company remained in solid financial health.

"Our robust balance sheet, coupled with rising onshore oil production amongst the lowest cost in the world, and the significant financial flexibility in the portfolio, leaves us well-positioned to continue to grow even in a period of sustained low oil prices," he said on January 21.

As part of that statement, Genel also said it expected to record a write-off of $480m in its accounts for last year in relation to offshore drilling near Angola, Malta and Morocco.

The company saw the removal of an important obstacle in December when it began receiving delayed payments owed to international oil exporters by the Kurdistan Regional Government.

Other London-listed oil explorers in Kurdistan have also received millions of pounds in such payments, although they have otherwise fared less well than Genel.

Sky News revealed earlier this month that Afren was in talks with its lenders about a financial restructuring, while Gulf Keystone Petroleum has been hit by a string of rows with shareholders about pay and corporate governance.

A Genel spokesman declined to comment on Sunday.

14.47 | 0 komentar | Read More

Merkel Rules Out Debt Writedown For Greece

Written By Unknown on Minggu, 01 Februari 2015 | 14.47

German Chancellor Angela Merkel has ruled out a writedown of Greece's massive debt, as EU officials threatened a funding cut-off to Greek banks.

Mrs Merkel and European Central Bank (ECB) policymakers have hardened their stance on the weekend over fears the Greek government does not agree it renew its bailout package in February.

"There has already been voluntary debt forgiveness by private creditors, banks have already slashed billions from Greece's debt," Mrs Merkel said on Saturday.

"I do not envisage fresh debt cancellation."

In a thinly veiled threat to Athens and rising anti-austerity political movements such as in Spain, she added: "Europe will continue to show solidarity for Greece, as for other countries hit particularly hard by the crisis, if these countries undertake their own reforms and savings efforts."

Greece's newly elected anti-austerity government earlier said it would not co-operate with its international "troika" of creditors - the EU, ECB and the International Monetary Fund.

Greece's finance minister Yanis Varoufakis said that despite warnings his country would shortly run out of money, his government preferred to do without fresh funds and instead renegotiate its entire €240bn (£180bn) bailout package.

Athens has been promised another €7.2bn (£5.4bn) in funds from the troika if it completes reforms required by its lenders by 28 February, when the bailout programme runs out.

Erkki Liikanen, a member of the ECB's policymaking Governing Council, said that funding could dry up if Greece does not remain in an agreed programme.

On Friday Mr Varoufakis slammed the current system: "This government was elected on the basis of analytically questioning the very logic of the programme now being applied."

"We don't want the €7bn ... We want to sit down and rethink the whole programme."

Greece believes repayments pegged to the economic growth rate would better support the fragile economy.

Mr Varoufakis said Athens was willing to negotiate with its lenders but not with the troika, which he described as a "committee built on rotten foundations".

The troika was formed in 2010 to rescue debt-riddled Greece with the bailout on the condition Athens imposed huge spending cuts and fiscal reforms.

Prime Minister Alexis Tsipras was elected last Sunday on a platform of ending austerity and erasing most of the country's national debt.

Mr Varoufakis meets French counterpart Michel Sapin in Paris on Sunday and British Chancellor George Osborne on Monday.

Mr Tsipras will meet Italian Prime Minister Matteo Renzi on Tuesday and French President Francois Hollande on Wednesday, but has no plans to visit Germany - Europe's biggest economy and its effective paymaster.

14.47 | 0 komentar | Read More

US Economic Growth Slows To 2.6% Annual Rate

US economic growth slowed in the final quarter of 2014, but its performance was enviable when compared to new woes for the eurozone and Russia.

It was confirmed on Friday that the fastest pace of US consumer spending since 2006 was offset by lower business spending and a wider trade deficit in the three months to December.

The annualised measure for the period came in at 2.6% - meaning gross domestic product (GDP) rose 2.4% for 2014 as a whole - only behind that of Britain in the major industrialised economies.

Consumer spending, which accounts for more than two-thirds of US economic activity, advanced at a 4.3% pace in the fourth quarter - they key holiday season for retail.

Improved jobs and wage figures, coupled with a 43% fall in petrol prices since June, have meant that Americans have more to spend.

The strong pace of consumer spending was overshadowed by a drop in capital expenditure.

Business spending on equipment fell at a 1.9% rate - the largest contraction since the second quarter of 2009 - possibly reflecting cutbacks in the oil industry given the plunging prices.

Economists did not see a connection to world economic weaknesses denting confidence.

The growth figures were released as other economic developments highlighted pressures facing much of the rest of the world.

It emerged that negative inflation deepened in the struggling eurozone last month.

Price growth was measured at an annual rate of -0.6% amid the crash in oil values, which is actually expected to support economic activity ahead of the European Central Bank's €1.1tn quantitative easing programme starting in March.

The central bank action is aimed at halting a slide towards deflation - an entrenched period of falling prices, which tends to put consumers and businesses off making purchases in case they can secure goods and services cheaper, later.

Russia's reliance on its oil revenues - coupled with the impact of Western sanctions over Ukraine - is set to tip the country's economy into recession.

Its central bank confirmed on Friday that such was its concern about its economic outlook, it would cut its core interest rate from 17% to 15%.

It was moved to the higher rate just late last year to try and shore up the rouble, which has dived in value against the dollar, and prevent inflation soaring out of control.