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City Bonuses 'To Rise 21%' Despite Cap Rules

Written By Unknown on Senin, 22 Desember 2014 | 23.34

Bonuses for senior City workers are tipped to rise by 21% in 2015, despite the latest regulatory crackdown in the wake of the financial crisis.

The report by recruitment firm Astbury Marsden found that top staff could expect average awards of £124,000 - up from £102,000 - with a pick-up in activity and profitability raising pressure on employers.

Adam Jackson, director at Astbury Marsden, said: "Business conditions in the City have improved significantly over the last year, which is now translating to rising bonus expectations.

"Despite shareholder and public pressure to limit bonuses - and with the EU bonus cap now set to be introduced at the start of 2015 - City staff clearly feel that their employers are in the position to reward them well."

The cap, which became law in January 2014 to take account of bonuses to be paid in 2015, is aimed at 'risk-takers' - particularly in the banking sector.

The law limits a worker's extra pay to 200% of salary - if shareholders agree.

Banks have moved to sidestep the rules by hiking salaries in some cases, arguing that a failure to reward key personnel in London would drive them away to Asia or the United States.


23.34 | 0 komentar | Read More

Rouble Crisis Sparks Russia Bank Bailout

Russia's central bank has announced a bailout of the troubled Trust Bank - the first such rescue in the country's currency crisis.

The Bank of Russia said it had placed Trust under its supervision and would hand it 30bn roubles (£341m) to avoid bankruptcy.

It did not officially confirm that the problems at the lender, whose products are advertised by Hollywood actor Bruce Willis, were linked to the currency's plunging value.

Trust - a mid-sized lender - had already been under pressure to boost its capital buffer before the currency came under intense pressure this month amid plunging oil prices exacerbated by Western sanctions.

The central bank's Deposit Insurance Agency was to supervise Trust's operations with immediate effect and a major bank was being found to provide additional investment, a statement said.

The decisions were taken at an emergency meeting and were designed to provide Trust with sufficient liquidity to continue operations without any repercussions for clients.

Unable to borrow on Western markets due to US and EU sanctions over Moscow's role in the Ukraine crisis, Russian banks have found themselves pressed by the plunge of the rouble, that has lost nearly half its value in the past year.

Rates on the interbank lending market, a barometer of confidence banks have in one another, have shot up in recent days, reflecting wariness and liquidity problems.

Last week, the central bank announced a number of technical measures to improve access to funds and parliament approved a recapitalisation plan.

The rouble's collapse, which extended to almost 80 roubles to the dollar at one point last week, sparked a boom in the purchase of 'big ticket' items in Russia such as TVs as people rushed to avoid inevitable price rises.

Companies including Audi, Jaguar Land Rover and Apple introduced suspensions on the sale of products over fears they were priced too cheaply.

Moscow confirmed on Monday it was looking to support Russian airlines - also badly hit by the rouble's collapse.

Deputy Prime Minister Arkadi Dvorkovitch said he was considering credit guarantees and subsidies to support their operations.


23.34 | 0 komentar | Read More

UK Election Delays Top Energy Appointment

By Mark Kleinman, City Editor

The energy industry's leading trade association is to wait until after the General Election before appointing a new chief executive amid intense political scrutiny of the sector.

Sky News understands that Energy UK, whose members include each of the 'big six' residential gas and electricity suppliers, has decided to wait until the middle of 2015 before recruiting a permanent successor to Angela Knight, who will step down at the end of the month.

The decision by Energy UK underlines the scale of concern within the industry about the political climate at a time when tens of billions of infrastructure spending is required for modernisation programmes.

Some board members are understood to have pushed for the delay to enable the appointment of a new boss with strong connections to the party that leads the next administration.

"The timing of the election makes it impossible to pick a chief executive and be sure that they are the right person to lead the organisation," said an executive at one of the big utilities.

National Grid recently warned that the UK was at its highest risk of winter blackouts for seven years, while the major energy retailers - British Gas, EDF, EON, Npower, Scottish Power and SSE - have been at the centre of a string of mis-selling scandals and pricing rows.

Ed Miliband, the Labour leader, has pledged to freeze retail prices for 20 months if he becomes Prime Minister, while Ofgem, the industry regulator, has referred the energy suppliers to the Competition and Markets Authority (CMA) for a full investigation.

The CMA intends to publish its provisional findings and possible remedies in May or June next year, and could recommend far-reaching measures including the enforced separation of companies' power generation and supply activities.

Last month, Energy UK confirmed the appointment of Sir David Arculus, a City grandee who previously chaired Severn Trent, as its new chairman.

The trade body also said that Lawrence Slade, its chief operating officer, would become interim chief executive from January 1, although it did not say how long the role would be filled on a temporary basis.

Mr Slade is likely to be a leading candidate for the job, which is an increasingly public-facing post as energy companies acknowledge the need to explain commercial decisions to their customers.

Sir David will take over from Lord Spicer, a former Parliamentary Under-Secretary at the Department of Energy during the premiership of Margaret Thatcher.

Lord Spicer was on the board of the Association of Electricity Producers before it was absorbed into Energy UK as part of efforts by the industry to promote a more co-ordinated approach to key issues.

The new chairman said on his appointment: "This is a time of major change for the industry and for the country as old power stations are closed and cleaner greener electricity generators are built. This vital industry deserves a clear, strong voice.

"I look forward to getting to grips with the key three-fold challenge of balancing energy security with the low carbon agenda and with bills which people and industry can afford."


23.34 | 0 komentar | Read More

Push To Get More Women Into The Cockpit

By Charlotte Lomas, Sky News Reporter

More than four decades after the first British female pilot took to the skies in a commercial airliner, there are still few women choosing flying as a career. But why are there so few female pilots?

Of the 3,500 pilots employed by British Airways, just 200 are women and this is more than any other UK airline.

Globally, 4,000 of the 130,000 airline pilots are female and fewer still are captains - worldwide there are around 450.

Helen Macnamara has been a British Airways pilot for 14 years after enrolling on a sponsorship scheme once she left university.

"I like to see the world and different places and I enjoy the magic of flying itself," she said.

"Once you have the passion for it, then that's it really".

Helen, 38, believes the reason so few women go into flying may stem from a lack of opportunities in the past.

She said: "I think historically there were less women involved in aviation and that has been changing throughout my career.

"I think it's important females see this as an option and that there are role models in our industry."

One such role model is TV presenter and now fully trained pilot, Carol Vorderman.

She is planning to embark on a solo round-the-world flying trip and is supporting a recruitment drive by British Airways to get more women in the cockpit.

Carol said: "I always wanted to be a pilot since I was very young.

"It was the reason I read Engineering at Cambridge, and ideally would have joined the RAF or a commercial airline after graduating, but sadly this was not an option then.

"I think the reason so few women enter the profession can be traced back to schools, home and the media. Girls need to be encouraged more to pursue sciences, maths and technology at school and realise different paths are open to them."

Although many women work in the aviation industry as a whole - piloting is still very much a male-dominated profession.

Jim McAuslan, the general secretary of BALPA, the British Airline Pilots Association, is hoping this will change.

He said: "Women make great pilots, unfortunately only five percent of our members and British pilots are women, and that's disappointing.

"So we're reaching out to women to find why they're not coming forward. Perhaps it's because of their choice of careers at an earlier age. Engineering is a great way to get into flying, so perhaps people should look at their careers early on.

"But our big message would be: have the dream."

Some critics argue that women face prejudice when considering a career in flying.

In 2009 a Virgin Airlines advert featuring glamorous female flight attendants flanking a male pilot received complaints it was sexist.

So too did an Air New Zealand in-flight safety video where women were dressed bikinis.

But Helen says that she has never experienced any negativity. Most passengers are simply surprised to have a female pilot, she said.

"Actually when members of the public come to our flight simulator where we train, it is usually the women who fare better than the men.

"They are softer with the manoeuvres and males can be more heavy handed."

In an industry where fewer than 5% of pilots are women it's hoped more will be landing safely on the tarmac in future.


23.34 | 0 komentar | Read More

North Korea: We Can Prove Hacking Wasn't Us

North Korea: We Can Prove Hacking Wasn't Us

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North Korea says it can prove it had nothing to do with the cyber-attack on Sony and proposes a joint investigation with the US.

The North Korean news agency KCNA warned there would be "grave consequences" if the White House declined the offer.

State media called the FBI's claim that North Korea was behind the attack on the entertainment giant a "slander".

The North's foreign ministry, quoted by KCNA, said: "As the United States is spreading groundless allegations and slandering us, we propose a joint investigation with it into this incident.

"Without resorting to such tortures as were used by the US CIA, we have means to prove that this incident has nothing to do with us."

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  1. Gallery: Kim Jong-Un Seen Amid US Tensions

    North Korean leader Kim Jong-Un smiles as a huge crowd surrounds him while he gives field guidance at the Kim Jong Suk Pyongyang Textile Mill

North Korea stated it can prove it had nothing to do with the recent cyber-attack on Sony and proposed a joint investigation with the US

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The North Korean news agency KCNA warned there would be "grave consequences" if the White House declined the offer. Continue through for more images

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North Korea: We Can Prove Hacking Wasn't Us

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

North Korea says it can prove it had nothing to do with the cyber-attack on Sony and proposes a joint investigation with the US.

The North Korean news agency KCNA warned there would be "grave consequences" if the White House declined the offer.

State media called the FBI's claim that North Korea was behind the attack on the entertainment giant a "slander".

The North's foreign ministry, quoted by KCNA, said: "As the United States is spreading groundless allegations and slandering us, we propose a joint investigation with it into this incident.

"Without resorting to such tortures as were used by the US CIA, we have means to prove that this incident has nothing to do with us."

1/8

  1. Gallery: Kim Jong-Un Seen Amid US Tensions

    North Korean leader Kim Jong-Un smiles as a huge crowd surrounds him while he gives field guidance at the Kim Jong Suk Pyongyang Textile Mill

North Korea stated it can prove it had nothing to do with the recent cyber-attack on Sony and proposed a joint investigation with the US

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The North Korean news agency KCNA warned there would be "grave consequences" if the White House declined the offer. Continue through for more images

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23.34 | 0 komentar | Read More

ITE Exhibits Move From Sanctions-Hit Russia

By Mark Kleinman, City Editor

A London-listed exhibitions firm will this week announce a £20m takeover that will reduce its reliance on Russia amid the country's currency crisis and the ongoing impact of international sanctions.

Sky News has learnt that ITE Group, which has a market value of more than £350m, is to acquire Breakbulk, a leading provider of shipping and logistics intelligence.

The deal, which is understood to include an additional performance-related payment based on future revenues, is expected to be announced on Monday.

Investors in ITE are expected to view the takeover as a welcome diversification from the company's dependence upon Russia and emerging markets for the majority of its revenues.

Roughly 60% of ITE's sales are generated in Russia, which has seen a plunge in the value of the rouble in recent weeks as evidence of the weakness of the country's economy has mounted.

ITE's chief executive recently acknowledged "currency headwinds and difficult trading conditions in Russia and Ukraine", but managed to beat analysts' profit forecasts despite a decline in sales.

The Russian economy's travails are the main factor behind a near-52% fall in ITE's share price during the last 12 months, prior to which it was in the FTSE-250 index.

Breakbulk runs annual exhibitions - held in Shanghai, the Belgian port of Antwerp and, in alternating years, New Orleans and Houston - for senior executives in logistics roles in sectors such as energy and infrastructure.

Reflecting rapid growth in demand, Breakbulk has also added exhibitions in Brazil, South Africa and Turkey.

The business is part of Axio-Data, which has been owned by Electra Partners, a private equity firm, since last year.

It had previously been under the umbrella of UBM, the much larger media and events group listed on the London Stock Exchange.

Announcing annual results earlier this month, Russell Taylor, ITE chief executive, said it remained "sensitive to the economic climate in Russia but has increasingly good growth prospects in its other markets".

An ITE spokesman declined to comment.


23.34 | 0 komentar | Read More

B&Q China Stake Sale Nets Owner £140m

The owner of B&Q has sold a controlling stake in its loss-making China operation for £140m.

Kingfisher, which owns the DIY chain, said it planned to use the cash to invest in its core European market which includes the B&Q and Screwfix brands in the UK.

The firm said it had reached a binding agreement with fellow retailer Wumei Holdings to hand over a 70% stake in B&Q China, which began operations in 1999 and has since grown to 39 stores employing more than 3,000 staff.

Kingfisher had previously said it was looking for a strategic partner to help develop its Chinese business.

The deal is conditional on Chinese Ministry of Commerce approval and, if approved, is expected to close during the first half of next year.

Veronique Laury, Kingfisher chief executive, said: "I am delighted to have found a strong retail partner who will help us to release the financial value of our business in China.

"This will enable us to focus our financial resources and management talent on the large and attractive European home improvement market."

Wumei's interests include 650 supermarkets and 10 department stores which operate in northern, eastern and western China.

Its experience in the Chinese market is a critical factor behind the deal.

Kingfisher had looked to cash in on the economic boom in the country but, like firms including Tesco, it has found Asia a tough nut to crack with problems including high costs and tough local competition.

The recent slowdown in the Chinese housing market had proved to be a new headwind though annual losses had been stemmed to £6m in B&Q China's last financial year.


23.34 | 0 komentar | Read More

Tesco Crisis: Accounting Probe Launched

By Mark Kleinman, City Editor

The accounting watchdog is to scrutinise the former finance director of Tesco during a probe into the financial statements of Britain's biggest retailer.

Sky News understands that Laurie McIlwee, who left Tesco in April and had no role in the half-year results which triggered its accounting crisis in September, will face questions as part of the Financial Reporting Council's (FRC) investigation.

The FRC confirmed on Monday that it had commenced an inquiry into the "preparation, approval and audit" of Tesco's financial results following the disclosure that its profits had been overstated by £263m.

Members of Tesco's audit team at PricewaterhouseCoopers (PwC) will also be central to the FRC inquiry, which will examine statements dating back to the year ended 25 February 2012, and their impact on "the matters reported in the company's interim results for the 26 weeks ended 23 August 2014".

It is unclear whether Mark Armour, a Tesco director and member of its audit committee who also sits on the FRC board, will form part of the investigation.

The accounting body's inquiry will run alongside that of the Serious Fraud Office (SFO), which said in November that it had launched a criminal probe into the affair.

Mr McIlwee resigned in April and left Tesco's head office almost immediately after being asked not to return by the then chief executive, Philip Clarke.

Sources said that Mr McIlwee had not personally signed off Tesco's 2013-14 accounts.

Tesco's outgoing chairman, Sir Richard Broadbent, was forced to clarify remarks made in September that Mr McIlwee had not been at Tesco for "days and weeks", eventually admitting that he had not been called upon since April.

After his departure, Mr Clarke formed a separate finance committee to oversee the preparation of future financial statements.

According to insiders, members of that committee included Carl Rogberg, the former UK finance director, Mr Clarke himself, and Mike Iddon, who is now chief financial officer at New Look.

The £263m profits overstatement, announced by Mr Clarke's successor, Dave Lewis, triggered the suspension of at least eight executives, including Mr Rogberg, at least four of whom have since left the company.

One, Matt Simister, has been reinstated, while the fate of three others remains unclear.

The overstatement was a result of the way Tesco managers booked income from commercial suppliers, prompting Mr Lewis to announce an overhaul of those relationships.

The FRC has the power to impose unlimited fines and bans on individual members and member firms following formal disciplinary procedures.

Although widely expected, the formal confirmation of its investigation is a further distraction for Mr Lewis, who is attempting to improve Tesco's domestic performance in the wake of another devastating profit warning.

It issued its fourth profits warning in a year earlier this month, saying that full-year earnings would not exceed £1.4bn - well short of City forecasts of around £1.94bn.

Mr Lewis will update the City on Christmas trading and his broader plans to reinvigorate Tesco on January 8.

Tesco and the FRC declined to comment further, while Mr McIlwee could not be reached for comment.


23.34 | 0 komentar | Read More

OPEC's Dominance Of Energy Market 'Is Over'

By Ed Conway, Economics Editor

The era of OPEC domination over the global energy market is over, the former head of the oil cartel has told Sky News.

Abdullah bin Hamad al-Attiyah, the former energy minister of Qatar, said that the group of 12 oil exporters, which dominated the production and price-setting of energy for half a century, had surrendered its power to single-handedly affect prices.

He urged the organisation to collaborate with Russia and reduce global oil production.

Asked whether the era of OPEC dominance was finished, he said: "It's over. OPEC cannot play alone. This is why when OPEC met at the last moment they cannot decide it because if they will cut there is no meaning it will be the others who will benefit and even increase their production."

His comments, in an exclusive Sky News interview, come after the oil price fell sharply, from $115 a barrel earlier this year to below $60 last week.

The collapse in prices has triggered a currency crisis in Russia and threatens to undermine prosperity in the Middle East, where stock markets have fallen sharply. Mr al-Attiyah said that his country, Qatar, was well-placed to weather the downturn, but added that others might struggle more.

He said that he suspected Russia and others were waiting for OPEC to act - but that they might be mistaken.

"We have to learn from our lessons; we have to be careful.

"Sometimes we forget the cycle and just close our eyes thinking that the oil price will never go down. But ... it happened before. And it will happen in the future."

He warned that it was conceivable that the oil price remained depressed for as long as 15 years - as it did from the oil price crash in the mid-1980s.

He said that prices needed to be lifted to $90 or $100 a barrel to keep most producers in business. He also disputed claims that OPEC had not cut its production at a recent meeting because it wanted to undermine the viability of shale oil production in the US.


23.34 | 0 komentar | Read More

Rate-Riggers Face Seven Year Jail Terms

The Chancellor has confirmed that traders who rig foreign exchange (forex) and other key markets will face jail terms of up to seven years.

George Osborne said new rules to criminalise such activities would be in place by April under the Government's plans while the City regulator is also proposing new powers to bolster its own oversight of firms.

The measures were announced a month after world regulators including the Financial Conduct Authority (FCA) fined six banks £2.6bn over the forex rigging investigation.

Barclays was yet to settle but told Sky News last week that it expected to need more than the £500m it had already set aside to handle claims.

The rules proposed by Mr Osborne will extend legislation put in place last year to cover the manipulation of the interbank lending rate, Libor, which has also been the subject of a scandal resulting in billions being paid out in fines.

The seven additional rates to be covered by the law include the dominant global foreign exchange benchmark and key indices for gold, silver and Brent crude oil.

Mr Osborne said today: "The integrity of the City matters to the economy of Britain.

"Ensuring that the key rates that underpin financial markets here and around the world are robust, and that anyone who seeks to manipulate them is subject to the full force of the law, is an important part of our long-term economic plan.

"That's why the Government is determined to deal with abuses, tackle the unacceptable behaviour of the few and ensure that markets are fair for the many who depend on them."

Those who administrate the benchmarks and submit figures used in their calculation will also be subject to proposed new FCA rules with firms facing financial penalties, suspensions or censure for breaking them.

FCA chief executive Martin Wheatley said: "I am determined to ensure that markets work well and preserve the UK's reputation as a centre of excellence for financial services - today's announcement is a vital step in achieving this.

"This builds on our work to strengthen Libor, and drive up standards on benchmarks across the board."


23.34 | 0 komentar | Read More

Tax Helplines Cut Off Almost A Third Of Calls

Written By Unknown on Senin, 15 Desember 2014 | 23.33

Tax bosses have promised the service offered by public helplines will be improved, after it was revealed that almost a third of calls are getting cut off.

Research by consumer group Which? found that, in a sample of 100 calls, only 71 were not cut off with an automated message saying the service was "very busy".

Those calls that did survive this initial cut waited an average of 18 minutes to speak to someone, with the longest waiting 41 minutes.

The system's voice recognition also made mistakes when directing queries to other departments, with more complex phrases being misunderstood.

For example, when asked "do I need to pay tax on premium bond winnings?" the system asked if the caller was inquiring about changing a name or about a VAT surcharge notice.

The research comes in the run-up to the self-assessment tax return deadline of 31 January.

HM Revenue and Customs admitted the service "isn't good enough" and that new technology is being brought in to improve responses.

Which? executive director Richard Lloyd said: "With large numbers of people soon to be seeking help with their self-assessment tax return, we want to see HMRC doing more to monitor and improve their call-waiting times."

A spokesman for HMRC said: "HMRC receives over 40 million calls a year but we know that some of our customers can struggle to get through on our helplines at very busy times. This isn't good enough, and we are working hard to improve the range of services we provide.

"This year we are introducing new technology to help us answer more calls quicker at busy times, and we are improving the digital services we offer so that more customers can find all they need online.

"There is more to do, and we are committed to improving the service we offer all of our customers at all times, to help them find advice and support when they need it."


23.33 | 0 komentar | Read More

Yodel Suspends Collections Hitting Deliveries

Yodel Suspends Collections Hitting Deliveries

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

A courier firm handling a large number of Christmas online shopping deliveries has suspended new collections for up to two days.

Yodel, whose clients include Amazon and Marks and Spencer, has put on hold handling new parcels while it deals with a backlog from Black Friday.

While the company stresses it is continuing to make deliveries, the temporary freeze on collecting further parcels for distribution will lead to delays of up to three days for goods to arrive.

Recent retail promotions such as Black Friday and Cyber Monday have led to a surge in online orders for goods, especially in the run-up to Christmas.

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  1. Gallery: Black Friday: Madness In The Shops

    Yes, really. Shoppers have wrestled over a television. It has come that, people. "Black Friday" is in full swing in Britain and the stiff upper lip Brits are famous for has well and truly left the building. This photo was taken at an Asda in Wembley, north London

Britain's high streets, shopping centres and websites have been awash with discounts as more retailers than ever embraced US-style promotions, seeking to kickstart trading in the key Christmas period

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The police had to be called in at several supermarkets around the country overnight as thousands of customers hunted for bargains

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The rush to grab a deal soon descended into chaos as fights broke out at stores and websites of leading chains buckled under the strain. Continue through for more pictures

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Websites of leading retailers have been crippling under the weight of clicks

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Yodel Suspends Collections Hitting Deliveries

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

A courier firm handling a large number of Christmas online shopping deliveries has suspended new collections for up to two days.

Yodel, whose clients include Amazon and Marks and Spencer, has put on hold handling new parcels while it deals with a backlog from Black Friday.

While the company stresses it is continuing to make deliveries, the temporary freeze on collecting further parcels for distribution will lead to delays of up to three days for goods to arrive.

Recent retail promotions such as Black Friday and Cyber Monday have led to a surge in online orders for goods, especially in the run-up to Christmas.

1/18

  1. Gallery: Black Friday: Madness In The Shops

    Yes, really. Shoppers have wrestled over a television. It has come that, people. "Black Friday" is in full swing in Britain and the stiff upper lip Brits are famous for has well and truly left the building. This photo was taken at an Asda in Wembley, north London

Britain's high streets, shopping centres and websites have been awash with discounts as more retailers than ever embraced US-style promotions, seeking to kickstart trading in the key Christmas period

]]>

The police had to be called in at several supermarkets around the country overnight as thousands of customers hunted for bargains

]]>

The rush to grab a deal soon descended into chaos as fights broke out at stores and websites of leading chains buckled under the strain. Continue through for more pictures

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Websites of leading retailers have been crippling under the weight of clicks

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23.33 | 0 komentar | Read More

David Cameron To Launch Home Discount Scheme

A scheme offering 100,000 first-time buyers new homes with a discount of 20% as part of a drive to help people onto the property ladder will be launched by David Cameron later.

Those under 40 who have never owned their own home can register their interest in buying via the Starter Home Initiative from the start of 2015 - six months earlier than planned.

Because of a change to the planning system set to come into force, under-used or unviable brownfield land will be freed from certain costs in return for a below market value sale price on properties constructed on the site.

Developers and councils are being urged to ensure the changes unlock a variety of sites across the country.

Mr Cameron said: "Hard-working young people want to plan for the future and enjoy the security of being able to own their own home. I want to help them do just that.

"Under this scheme, first-time buyers will be offered the chance of a 20% discount, unlocking home ownership for a generation.

"This is all part of our long-term economic plan to secure a better future for Britain, making sure we are backing those who work hard and get on in life."

Communities Secretary Eric Pickles said: "The 2008 housing crash blocked millions of hard-working, creditworthy people from becoming home-owners, at a time in their lives when they should have been able to expect to get on the property ladder.

"We're turning that around with Help to Buy, but today's new Starter Homes scheme will offer a further boost, giving young people (under 40) the opportunity to buy low-cost, high-quality new homes for significantly less than they would normally expect."

Stewart Baseley, executive chairman of the Home Builders Federation, said the initiative is "another positive step" in tackling the shortage of housing.

At the moment, developers can face an average bill of £15,000 per home in Section 106 affordable housing contributions and tariffs.

But under the scheme, developers offering Starter Homes would not have to pay certain charges.

To ensure the savings are passed onto buyers, the homes will not be able to be re-sold at market value for a fixed period.

More than 30 house builders have already backed the plans, and say they would consider bringing forward land to be developed from next year.

A design panel will be set up to ensure the homes are not only cheap, but also high-quality.

Renowned architect Sir Terry Farrell, who is on the panel, said it could make a real difference.

He added it would build on the recommendations of the Farrell Review, which raised the need for more proactive planning.

Sir Terry said: "Only by planning and designing our villages, towns and cities together with local communities can we create the kind of built environment we all aspire to and should be demanding."

Shadow housing minister Emma Reynolds said no-one would believe the PM's promises on the issue, and added: "The only way to restore the dream of home ownership is to build more homes and Labour has a plan to get at least 200,000 homes built a year by 2020.

"We are in favour of building starter homes but it is not clear how the Government is going to deliver these homes 20% cheaper than market price."


23.33 | 0 komentar | Read More

Growing Business: Demand Soars For UK Xmas Trees

By Nick Ravenscroft, Sky News Reporter

Families in Britain are increasingly buying Christmas trees that were grown in the UK rather than ones that have been imported, according to UK suppliers.

The British Christmas Tree Growers' Association (BCTGA) estimates that in the last six years the total number being grown here in the UK has risen by as much as 20%.

This is reflected in the proportion of British and imported trees being bought at shops and markets across the country.

Six years ago it was evenly split with approximately half being shipped in from Europe, according to the BCTGA.

The association's members now say British-grown plants account for some 70% of the total number of trees sold in the UK.

Harry Brightwell, secretary of the BCTGA, told Sky News: "People are much more conscious of environmental issues and the fact of buying a British grown tree usually means the transport is less."

At Yattendon Estates, a Christmas tree farm in West Berkshire, a cold and frosty morning was no deterrent to customers looking to buy a tree as the calendar counts down the days to Christmas.

Manager Alastair Jeffrey said: "Ten years ago our European competitors stole a march on us… now UK industry has really concentrated on making sure we're right up to spec… quality is the name of the game."

The majority of trees sold in Britain are Nordmann Firs which, for a six foot tree, will cost upwards of £45.

Among the Nordmann Firs grown in Britain are those supplied to Downing Street, which this year took trees from Herefordshire and the Gower, according to BCTGA.

With up to eight million trees already being sold by British producers, the move away from European imports spells continued growth for this part of the rural economy.


23.33 | 0 komentar | Read More

Japan's Prime Minister Shinzo Abe Re-Elected

Japanese Prime Minister Shinzo Abe has been re-elected with a two-thirds majority in a snap ballot.

The vote had been portrayed by Mr Abe as a referendum on his plans to revive the world's third-biggest economy.

The Japanese leader may use his victory to push ahead with tough economic reforms, but with turnout on course for a record low this could weaken his claim of a mandate.

NHK public TV said Mr Abe's Liberal Democratic Party and its junior partner, the Komeito party, were assured more than the 317 seats in the 475-member lower house.

The result is enough to maintain its "super-majority", and smooth the way for its policies through parliament.

However, the LDP was set to fall short of the 295 seats it held before the poll, NHK figures showed.

"I believe the public approved of two years of our 'Abenomics' policies," Mr Abe said in a televised interview.

"But that doesn't mean we can be complacent."

But many voters, doubtful over Mr Abe's plans to generate growth and the opposition's ability to come up with an alternative, stayed at home.

Final turnout has been forecast at 52.4%, a record low. In 2012, when Mr Abe returned to power, turnout was 59.3%.

Hopes for the PM's strategy suffered a setback after the economy slipped into recession following a sales tax rise in April.

In response, Mr Abe delayed a second tax hike to 10% until 2017, raising concerns about how Japan will curb its huge public debt.

Doubts also remain over Mr Abe's ability to tackle more politically-sensitive areas of reform, including deregulation of the labour market, and the highly protected farm sector.

Experts say Mr Abe may also use his fresh four-year term to focus on changing Japan's pacifist constitution to ease limits on the military.

This is likely to cause concern in China and South Korea, where bitter memories of Japan's past militarism remain raw.


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Glitch Causes Items To Be Sold On Amazon For 1p

Businesses are furious after a piece of software used by retailers on Amazon went wrong, causing hundreds of items to be sold for 1p.

Some firms which use RepricerExpress say they risk going bankrupt because the problem has resulted in them losing so much money.

The software is designed to keep businesses competitive by automatically repricing items of stock so they are cheaper than others in the digital market.

The firm states on its website: "We are here to increase your sales on Amazon and Rakuten's Play.com and make your efforts as profitable as possible."

For an hour on Friday, between 7pm and 8pm, a problem with RepricerExpress led to hundreds of items being sold on Amazon at a fraction of their normal price. At the same time, some customers said, Amazon charged its usual fees for every item sold.

One of the sellers, Judith Blackford of Kiddymania, told Sky News she could be forced out of business as result of the error.

She said: "I started using Repricer Express - a repricing tool as did a lot of other businesses a few months ago.

"Last night through an error in their programme they listed my stock on Amazon at 1p per item including delivery.

"I have lost about £20,000 overnight. Having asked Amazon to cancel the orders they are still sending them out and charging me horrendous fees.

"Surely someone has to be accountable for this. I will be bankrupt at this rate by the end of January."

Another online trader Belle thinks her company, which sells toys and games, will lose around £30,000 and she will probably be put out of business.

She told Sky News: "It's disgusting really because this third party software, that is their business, this should not have happened, this is 2014.

"We have to pay for this software every month, we've been using it for 18 months no problem.

"At the busiest time - this was predicted to be our busiest weekend of Christmas - turnover is zero."

As a result of the error, several buyers commented on Twitter at how pleased they were to have bought the items for so little.

One person wrote: "Amazon are having a glitch on their site and loads of stuff is selling for 1p. I just bought an incense holder, don't even need it."

An email to some customers from the CEO of RepricerExpress, Brendan Doherty, said the problems with the software caused incorrect pricing to be sent to Amazon.

A statement on the company's website from Mr Doherty said: "I am truly sorry for the distress this has caused our customers.

"We have received communication that Amazon will not penalise sellers for this error. We are continuing to work to identify how this problem occurred and to put measures in place to ensure that it does not happen again.

"Everyone here is devastated and disappointed that you have experienced this problem.

"We understand that you are angry and upset and we will endeavour to work to make good on this issue."

A spokesman for Amazon said: "We are aware that a number of Marketplace sellers listed incorrect prices for a short period of time as a result of the third party software they use to price their items on Amazon.co.uk.

"We responded quickly and were able to cancel the vast majority of orders placed on these affected items immediately and no costs or fees will be incurred by sellers for these cancelled orders.

"We are now reviewing the small number of orders that were processed and will be reaching out to any affected sellers directly."


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US Avoids Shutdown After Spending Bill Passed

The US Senate has passed a $1.1tr spending bill - and prevented a repeat of last year's government shutdown.

The 56-40 vote on Saturday came as Congress ended a two-year legislative session that has been marred by bitter partisanship and few successes.

Now the measure will be sent to US President Barack Obama, who is expected to sign it into law before Wednesday.

This will mean that most government agencies will be funded until September 2015, except for the Department of Homeland Security, which will have its funding reviewed at the end of February.

By this time the Republicans will control the House of Representatives and the Senate and will be able to deny the organisation funding to enforce Mr Obama's recent order easing deportations for undocumented immigrants.

Getting the 1,603-page bill through was a bitter struggle, with a revolt by House Democrats that nearly scuttled the bill and delaying tactics in the Senate.

Of the 40 "No" votes, 22 were Democrats, many of them furious that negotiators inserted policies into the package, including one pulling back on key financial regulations for Wall Street banks.

Another part of the bill gets rid of campaign finance law by dramatically increasing the amount of money wealthy donors can give to political campaigns.

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  1. Gallery: US Landmarks Re-Open After Shutdown

    A National Park worker removes a closed sign at Washington's Martin Luther King Jr Memorial after it was re-opened to the public following a partial shutdown of government services.

A woman jogs past the Lincoln Memorial on the morning after a bipartisan bill passed by the House and the Senate allowed the government to reopen and the debt limit to be raised.

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New Fee-Free Current Accounts Launched

A new fee-free banking current account structure that guarantees "clarity" has been revealed by the Treasury.

The scheme has been agreed to help people who may have marks on their credit history or who are currently ineligible for accounts.

Details of the landmark deal were first revealed by Sky News City Editor Mark Kleinman.

Expected to be launched within a year, the system will stop banks charging fees for failed direct debits and standing orders.

Under the current system, fees charged by the banks have pushed some holders into unauthorised overdrafts.

Some people have struggled to get debit cards and have been granted only limited access to the cash machine network.

The Treasury reached the agreement with Barclays, the Co-operative Bank, HSBC, Lloyds Banking Group - which owns Halifax and Bank of Scotland - Clydesdale and Yorkshire banks and Nationwide.

The Royal Bank of Scotland Group, including NatWest and Ulster Bank, along with Santander and TSB have also signed up to the deal.

Sky News 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 9 million 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".

Treasury economic secretary Andrea Leadsom said the new system will allow people to manage money with "certainty and clarity".

She added: "It will end people being effectively locked out of their basic bank accounts due to high fees and charges when their payments failed.

"Ending this unfair situation is a real step forward for the banking industry's most vulnerable customers and improving access to banking is a key part of our long-term economic plan."

The new scheme will also allow non-traditional account providers to enter the market.


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Ex-JJB Sports CEO Jailed Over £1m Fraud

The former boss of JJB Sports has been jailed for four years, after pocketing around £1m in what was described as a "very greedy fraud".

A court heard that Chris Ronnie, 52, owed more than £10m to an Icelandic bank when he diverted funds from suppliers going to the sportswear firm.

Ronnie, who lived in Wilmslow, Cheshire, then used some of the funds to buy property in Florida.

He was found guilty last month of three separate fraudulent payments when he was in charge of the company in 2007 and 2008.

Each of the diverted payments was a six-figure sum and they were not disclosed to the company's board.

Judge Nicholas Loraine-Smith told London's Southwark Crown Court: "This was a flagrant and disgraceful breach of your duty as a CEO of a public limited company."

Ronnie did not give evidence in his defence during the trial and after nearly 35 hours of deliberations jurors delivered a unanimous guilty verdict.

The Serious Fraud Office began investigating the case after receiving a tip from a computer engineer who was asked to delete any trace of emails related to the Icelandic loans.

JJB Sports, which was founded in 1971 by footballer Dave Whelan, entered administration in 2012.

Two business partners of Ronnie were also convicted of perverting the coure of justice, as they helped him conceal the fraud.


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FCA Life Ban For Fare-Dodging Jonathan Burrows

The financial watchdog has banned a top fund manager from any role in the City after it was discovered he paid £43,000 to avoid prosecution for dodging train fares.

Jonathan Paul Burrows, who was a London-based managing director at US investment firm BlackRock, admitted his actions sullied the reputation of the City.

The Financial Conduct Authority (FCA) banned Mr Burrows for "not being a fit and proper" person.

It launched an investigation after a furore when it emerged an unnamed City worker paid the money to Southeastern Railway to avoid prosecution for repeated fare dodging.

In November 2013, a ticket inspector at Cannon Street station noticed an irregularity with the payment history of Mr Burrows' Oystercard.

Under caution he admitted regularly not paying for tickets from his home in Stonegate, East Sussex, where there were no ticket barriers.

It was claimed he only paid £7.20 for a Oystercard single ticket in London instead of the standard single fare of £21.50 from Stonegate.

It emerged he had stopped buying annual season tickets in 2008, despite continuing to work in the City for another five years.

"Burrows held a senior position within the financial services industry. His conduct fell short of the standards we expect," FCA director of enforcement Tracey McDermott said.

"Approved persons must act with honesty and integrity at all times and, where they do not, we will take action."

According to the Daily Mail, father-of-one Mr Burrows owned two mortgage-free multi-million pound mansions in East Sussex and drove a Porsche sports car.

A heated public debate developed over how a wealthy worker was able to pay a five-digit sum to avoid prosecution.

Following his banning, his former employer said: "Jonathan Burrows left BlackRock earlier this year. What he admitted to the FCA is totally contrary to our values and principles."

After being banned on 15 December, Mr Burrows released his own statement through a PR firm and said: "I have always recognised that what I did was foolish.

"I have apologised to all concerned and reiterate that apology publicly today."

"The settlement I made with Southeastern in March 2014 was for an amount significantly in excess of the value of the fares not paid by me on the small number of occasions that I failed to pay.

"Indeed the size of the settlement could be said to have led to a distorted perception of the scale of my wrongdoing."

Approached by Sky News, Southeastern Railway defended its decision not to prosecute Mr Burrows at the time.

In a statement it said: "We reached a £43,000 settlement with Mr Burrows regarding allegations of fare-dodging earlier this year.

"We believe that the actions that we took were in the best interests of our passengers (and taxpayers) by giving us the best opportunity to recover a substantial sum in respect of the allegation."


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PlayStation Network Hacked 'By Lizard Squad'

Written By Unknown on Senin, 08 Desember 2014 | 23.34

Sony's PlayStation online store appears to have been hacked - with a group calling itself Lizard Squad claiming responsibility.

The company, whose film arm has just been hit by cyberattack, said the problem had lasted only two hours and there was no sign of any data theft.

Gamers trying to access the PlayStation store at around 2am on Monday were met with the message: "Page Not Found! It's not you. It's the internet's fault."

Lizard Squad tweeted: "PSN Login #offline #LizardSquad" and posted a link to a YouTube video mentioning the incident.

By mid-morning PlayStation indicated the problems had been fixed, tweeting: "If you had difficulties signing into PlayStation Network, give it a try now."

Lizard Squad, which gives its location as Finland, also appeared to take responsibility for downtime on the Xbox Live network last week, tweeting "Xbox Live #offline".

It also forced an American Airlines to divert earlier this year when it warned explosives might be on a flight that included a Sony executive among its passengers.

Hackers calling themselves Guardian of the Peace crippled computer systems at Sony Pictures last week, leaking films on the internet and disclosing information for thousands of employees.

There had been speculation the hack was engineered by North Korea over a Sony movie mocking the country's leader, Kim Jong-Un.

The country has denied responsibility for that attack, which is being investigated by the FBI.

However, an official statement by North Korea's National Defence Commission hailed it as a "righteous deed".


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McDermott Gets Nod For FCA Supervision Role

By Mark Kleinman, City Editor

The executive who has led the City regulator's zealous efforts to punish banks' misdemeanours is to be rewarded with a promotion as part of a wide-ranging restructuring.

Sky News understands that Tracey McDermott, the Financial Conduct Authority's (FCA) head of enforcement, is to be named as the watchdog's new director of supervision on Monday.

Her promotion will form part of an overhaul of a number of the FCA's core functions, aimed at reflecting its expanded responsibilities for overseeing consumer credit providers.

Ms McDermott, who joined the FCA's enforcement division in 2001, is already a member of the organisation's board of directors.

Since assuming her current role, she has pursued regulated firms - including the major banks and payday lenders - with a renewed vigour which commentators agree was conspicuous by its absence before the 2008 banking crisis.

Ms McDermott, who will effectively replace Clive Adamson, the current head of supervision, has been the public face of many of the FCA's recent enforcement actions, including the recent £1.1bn settlement with five banks over control failures in their foreign exchange-trading operations.

FCA staff were being informed about the restructuring, which will include the establishment of a new risk function, on Monday.

Sky News revealed last week that Mr Adamson was planning to step down, just days before the release of a report that will criticise the FCA's handling of an inquiry into the insurance industry.

A newspaper story briefed by the FCA in March wreaked havoc on the share prices of some of the UK's biggest insurers, sparking fury in their boardrooms.

Simon Davis, a partner at the law firm Clifford Chance, was appointed in April to lead an inquiry.

His report will make a series of recommendations relating to the disclosure of market-sensitive information and internal communications at the FCA.

A friend of Mr Adamson insisted that his exit and Mr Davis's forthcoming report were not directly connected.

Mr Adamson, a long-serving regulator who was responsible for overseeing the major UK banks in the period leading up to and during the financial crisis, is understood to have been considering whether to leave for some time.

An insider said on Monday that the entire FCA executive committee was likely to face criticism with five individuals - including Mr Adamson and Zitah McMillan, the communications director - expected to be identified by name.

The FCA declined to comment.


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GoCompare Founder Nets £44m In Esure Deal

The founder of GoCompare is in line for a £44m windfall after the business she started eight years ago was sold to car insurance firm esure.

Hayley Parsons will step down as chief executive of the price comparison site as a result of the £95m deal with esure to buy the half of GoCompare it does not already own.

The sale values the entrepreneur's remaining 23% stake in the business at almost £44m.

She set up Newport-based GoCompare in 2006 after leaving rival Confused.com and focused the website on the levels of cover provided by an insurance product rather than just listing them according to their price.

It is well known for its adverts featuring fictitious opera singer Gio Compario.

Ms Parsons said: "I am very proud that a company I started at my kitchen table eight years ago has achieved so much in such a short period of time.

"Today, we are a leading price comparison business in the UK and this is credit to all the wonderful, hard-working people we have in Newport."

Last year, GoCompare reported sales of £110m and pre-tax profits of £25m.

Ms Parsons spent 14 years with Cardiff-based insurance firm Admiral, where she was instrumental in the launch of Confused.com, the first motor insurance comparison site in the UK.

In 2012, she was awarded an OBE and she has also won many business awards.

Esure has owned 50% of GoCompare since 2010, when it exercised an option taken out in 2007 to buy a stake in the business.

As well as Ms Parsons, other selling shareholders in the deal include GoCompare's employee benefit trust and current and former directors and staff.


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Interest Rates Rise: Will You Feel The Impact?

The Bank of England has signalled that thousands of households will have to cut back as they struggle to keep up with mortgage payments when interest rates start rising.

The bank estimates that 37% of households will either need to work more or spend less if interest rates rise by 2%, with those in their 20s, 30s and 40s hardest hit.

However, if incomes rise by 10% then only 4% of households will need to take action. But in recent years salaries have failed to increase as much as the cost of living.  

Here are three scenarios showing the impact of rising rates on different households and their mortgages.

:: Mr Taylor lives alone on an income of £26,000, with £83,000 outstanding on his mortgage.  He is paying a mortgage rate of 2.5%, which equates to monthly payments of £369 - 17% of his income.

Looking forward to 2019 and an interest rate of 4%, his monthly payments will be £434.

As long as his salary goes up too - to more than £30,000 - he will still be paying 17% of his income

:: The Smith family live together on a slightly higher combined household income of £43,000. Their outstanding mortgage is £150,000. At a rate of just under 2.5% it costs them £667 per month - almost 19% of their income.

By 2019, with a rate of almost 4%, they will face monthly payments of £785.

As long as they are earning more than £50,000 by then it will still be 19% of their income.

:: The Jones family's household income is £100,000 per year. Their mortgage is £400,000, which currently costs them just under £1,800 a month - 21% of their income.

Five years from now they will face monthly payments of nearly £2,100.

As long as their salaries go up to nearly £118,000, the proportion of their income they pay will remain around the same at 21%. 

Higher earning families like these face the biggest rises.

The Bank of England's projections show a rise in rates from the current record low of 0.5% to 2.5% would raise the number of households struggling to pay their mortgages from 360,000 to 660,000 if wages stay the same.

The bank considers households where more than 40% of income is spent on mortgage repayments as vulnerable since they are at more risk of falling into arrears.

However, if rate rises are accompanied by a 10% rise in incomes the number of vulnerable households will only rise to 480,000.  

While the interest rate has been at 0.5% for over five years, looking back over 20 years much higher rates were not unusual. The mean interest rate since 1994 is 3.9%.

Bank governor Mark Carney has warned that an increase is on the way but the scale is likely to be gradual.


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M&S Hit By Pre-Christmas Online Delivery Delays

By Sam Washington, Business Presenter

Marks and Spencer has been forced to delay online deliveries after its distribution centre could not keep up with orders.

The high street giant was caught out by Black Friday - an American post-Thanksgiving shopping spree tradition rapidly gaining popularity in the UK. 

The share price has fallen 3% as investors fear overall sales will be affected.

M&S saw a lift in orders throughout a four-day day period of discounting which began on 28 November to coincide with Black Friday.

Shoppers who have recently bought Christmas presents through the M&S website now face a nervous wait to see if they will arrive in time.

Social media is alight with complaints from customers after it emerged shoppers have been prevented from making in-store click-and-collect orders for the next day, while standard deliveries to home addresses - normally taking three to five days - are taking up to 10 days.

The firm was also temporarily forced to withdraw next-day delivery to homes, although this has now been reinstated.

The store has said it is reviewing its delivery options every hour, adding: "Our customers will always be our top priority."

The hiccup will be embarrassing for the firm, which has stated online sales are the central plank in the strategy to turn around nearly a decade of shrinking market share in the clothing business.

The pre-Christmas shopping rush is a key period for retailers, not least M&S which reported a 2.9% fall in like-for-like sales in the six months to the end of September last month.

The retailer has spent £1bn on improving its IT and distribution systems.

It hoped to be able to process one million items a day by the end of this year through its 900,000 square feet of distribution centre in Castle Donington.

The launch of the new website in April this year has also suffered problems with many shoppers complaining about its layout, and having to re-register their details.

M&S is trying to overhaul its clothing range under the helm of John Dixon, head of non-food operations, and Belinda Earl, the new style director.

Despite the problems facing the retailer, M&S chief executive Marc Bolland remains upbeat, insisting "things are now coming together" for the firm, highlighting a growing online business and enhanced profit margins.

Complaints from customers about the garments has fallen 20% this year according to M&S.

But while shoppers may have less cause to gripe, investors are expressing their displeasure over the recent news of delivery delays.

The share price has fallen by more than 3% to 481p. This sell off comes despite a recovery from the low of 380p in October.


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