Sants Signed Off From Barclays For Stress

Former top City regulator Hector Sants who was brought in to oversee compliance at scandal-hit Barclays has been signed off work until the end of the year.

He has been diagnosed with stress and exhaustion.

Sir Hector will take a temporary leave of absence after just 10 months in the role as head of compliance at the bank - a post he took on after five years at the helm of the Financial Services Authority (FSA) in the run up to and throughout the financial crisis.

A Barclays spokesman said: "Rather than carry on working, and risk more serious consequences to his health, he is following medical advice and will be taking a leave of absence until the end of the year."

He is expected to return to work in the new year and his compliance colleagues will take on his role on an interim basis until then.

Antonio Horta-Osorio looking well recovered last month after his time off

Sir Hector is the latest top banking executive forced to take temporary leave after Lloyds Banking Group chief executive Antonio Horta-Osorio took two months off at the end of 2011 due to sleep deprivation and exhaustion.

Sir Hector's role is seen as a crucial part of the overhaul being led by Barclays chief executive Antony Jenkins.

His job involves liaising with regulators and government and to ensure rules are followed at the bank, with responsibility for monitoring questionable trading.

His appointment marked the first time the bank has brought its compliance operations under the control of one person and followed its £290m fine last year for attempting to manipulate the Libor interbank lending rate - a scandal that threw the bank into turmoil and claimed the scalp of its former boss Bob Diamond.

The Libor scandal brought down former Barclays chief Bob Diamond

Sir Hector was knighted in the Queen's New Year Honours for services to financial regulation after overseeing sweeping reforms following the nationalisation of Northern Rock and bailout of major banks.

But the knighthood was also seen as a controversial decision, as it was Sir Hector who led the organisation accused by MPs of being "asleep at the wheel" in the run up to the collapse of Northern Rock.

The Oxford graduate, who is married with three children, started his career in 1977 with Phillips & Drew stockbrokers, which was taken over by Swiss banking giant UBS in 1985.

He remained with UBS until 1998 when he joined Donaldson, Lufkin and Jenrette International Securities, moving to Credit Suisse in 2000.

00.25 | 0 komentar | Read More

Shutdown: Senate Inches Closer To Fiscal Deal

Senate leaders are closing in on an agreement to reopen the government and avert an economy-rattling default on federal debt.

Senate Majority Leader Harry Reid, a Democrat, and his Republican counterpart, Mitch McConnell, have sounded an optimistic tone after negotiations. A deal could be sealed today - with just two days to go before the Treasury Department says it will run out of borrowing capacity.

"We hope that with good fortune ... perhaps tomorrow will be a bright day," Mr Reid said late on Monday.

According to leaked details, the emerging pact would reopen the government through January 15 and permit the Treasury to borrow normally until early to mid-February.

The deal would ease dual crises that have sapped confidence in the economy and spooked investors.

Harry Reid (L) and Mitch McConnel have expressed cautious optimism

However, the Republican-dominated House was preparing a separate proposal likely to win over conservatives who have signalled opposition toward the emerging Senate deal, seeing it as a defeat.

The Senate plan is a far cry from the assault on President Barack Obama's health care law that many Republicans originally demanded as a condition for keeping the government open and increasing the government's $16.7trn borrowing cap.

It includes only minor changes to Obamacare, as the health care legislation is known, and falls well short of the Republicans' goal of delaying or de-funding it.

The House proposal would repeal the new tax on medical devices in Obamacare, and include a requirement that Congress and top Obama Administration cabinet officials obtain health coverage under the program.

The White House immediately labelled the House proposal as a "partisan attempt to appease a small group of Tea Party Republicans".

Protesters stormed the World War Two Memorial last week

House Speaker John Boehner told reporters on Tuesday that members did not discuss details of the latest plan on Tuesday, saying only that members of the House "from both sides of the aisle" continue to work "to find a way forward".

With citizens growing weary of a shutdown that has now entered its third week and GOP numbers plunging, the day had begun amid cautious signs of optimism on Capitol Hill.

On Wall Street, futures were mixed, with investors somewhat optimistic over a potential deal.

The shutdown has already furloughed hundreds of thousands of federal workers and forced national parks and monuments to close down in high season.

Some tourist attractions such as the Grand Canyon and the Statue of Liberty have now reopened, as states agreed to fund their running. But many communities have lamented the economic damage they had to incur.

Economists see an even greater financial danger from an historical default.

Christine Lagarde, the International Monetary Fund's managing director, spoke fearfully about the disruption and uncertainty, warning of a "risk of tipping, yet again, into recession" after the fitful recovery from 2008.

00.25 | 0 komentar | Read More

Ireland Government Budget To Be Unveiled

By Vicki Hawthorne, Ireland Correspondent

The Irish Government will present its annual budget this afternoon, just days after the Prime Minister Enda Kenny said the country would exit the EU bailout in December.

The 2014 budget, billed as the final austerity budget in Ireland, is expected to bring a further €2.5bn (£2.1bn) in cuts and tax hikes, but the Irish Prime Minister has said there will be "some good news" too.

At his party conference at the weekend, Prime Minister and Fine Gael party leader Enda Kenny announced that Ireland would exit its strict bailout programme on December 15, 2013.

Speaking in Limerick on Saturday, Mr Kenny said: "Tonight I can confirm that Ireland is on track to exit the EU-IMF bailout on December 15. And we won't go back.

"It won't mean that our financial troubles are over.  Yes there are still fragile times ahead.  There's still a long way to go. But at last the era of the bailout will be no more.  The economic emergency will be over."

Ireland accepted a €85bn (£71bn) bailout from the EU-IMF in November 2010 following a crisis in the banking sector. 

Since then the country has faced a series of tough austerity budgets to ensure it meets the terms of the financial agreement.

The coalition parties in government have been meeting over the last few days to agree the 2014 budget for each government department. 

Cabinet ministers met in Dublin on Sunday evening to negotiate some of the final points on departmental spending.

So far there has been speculation that the budget will focus on measures to help low-income families and small businesses, as well as job creation. 

The Prime Minister has ruled out speculation that the government will increase the country's low corporation tax, currently 12.5%.

The budget announcement got off to a stuttering start on Tuesday however, when five ministers got stuck in a lift.

Politicians including Deputy Prime Minister and Minister for Foreign Affairs Eamonn Gilmore, Minister for Transport Leo Varadkar, and Alan Shatter, the Minister for Justice, were stuck in a lift in government buildings in Dublin for 15 minutes.

Minister Varadkar tweeted: "Stuck in lift with half the Cabinet on Budget Day. Late for RTE. What are the chances? #Budget2014"

00.25 | 0 komentar | Read More

Royal Mail: Value Climbs As Dealing Starts

Royal Mail's value continued to grow when full dealing began on the London Stock Exchange on Tuesday though some individuals expressed frustration they were unable to sell.

Investors - lured by the promise of healthy dividends - sought out shares with the price rising more than 3% in early trading when the stock became available to the wider market following its conditional launch.

In the first day of dealing for many of the 690,000 small investors who bought stock the shares opened at 478p before climbing further to 490p in the first hour.

Its closing price of 489p implied a rise in the company's value of £140m in one day, to reach £4.9bn. The initial offer had valued Royal Mail at £3.3bn.

Price correct at 08:35 BST

That compares with the 330p per share price they were sold for on Thursday, meaning small investors who were allocated shares worth £750 originally are today sitting on paper profits of more than £360.

But not everyone was able to trade - the Department for Business confirming that those who applied for shares via the post had been told they would receive a letter within a week setting out how they could sell their shares.

Those who applied online should, the department said, receive an email within two days of listing, giving them an ID and password to sell their shares via the official website.

Royal Mail staff in London have met union reps today

Only institutional investors such as pension funds and those individuals who ordered stock through a broker offering conditional trade were able to sell before Tuesday.

Around 150,000 postal workers are having to sit on stakes now worth more than £3,200 each because they can not sell their shares for three years under the terms of the 10% free-holding.

While fewer than 390 staff eligible for the offer turned it down, staff are known to bitterly oppose the privatisation and Wednesday will see the result of a strike ballot by members of the CWU over issues linked to the sale.

CWU members are expected to back industrial action, with any strike set to be held on or after October 23.

The windfall for investors has prompted further questions about whether the Government short-changed the taxpayer over the privatisation.

Dave Ward, CWU deputy general secretary, said: "The Royal Mail share price has soared further today, bringing more proof that the company was undervalued by the Government's City mates.

"The taxpayer has lost over #1 billion already in this bungled fire sale of a cherished national institution," he said.

The Business Secretary Vince Cable - who has defended the pricing of the sale - has been asked to give fresh evidence to a committee of MPs over the privatisation while investment bank Lazard was also set to be questioned.

Sky News learned on Monday that some members of the Business, Innovation and Skills Select Committee of MPs wanted to interview executives from the syndicate of banks responsible for pricing the initial public offering at 330p-per-share.

Chief executive of Royal Mail Moya Greene, who hinted at possible stamp price increases in an interview with Sky's City Editor Mark Kleinman, opened trading at the London Stock Exchange alongside the business minister Michael Fallon and Treasury chief secretary Danny Alexander.

She said: "This marks the exciting next phase in our company's long and proud history.

"With the support of our new shareholders, we are in a strong position to move forward, to compete effectively across our markets and to grow our business.

"Royal Mail will continue to be an essential part of the fabric of the UK, providing the universal postal service that is cherished by the 29 million households and businesses across the country that we serve."

00.25 | 0 komentar | Read More

House Prices: Record High For The UK

UK house prices hit a new record high in August, largely driven by soaring demand across London and south east England, official figures show.

The Office for National Statistics (ONS) recorded an increase of 3.8% in the 12 months to August 2013, up from a 3.3% rise in the 12 months to July 2013.

It measured growth as being stable across most of the UK - with a year-on-year increase of 4.1% for England over the period being driven largely by growth in London.

There was annual growth of 1.1% measured for Northern Ireland, 1% for Wales though a fall of 0.7% was recorded in Scotland.

It left the average property price in the UK at £247,000, the ONS said, meaning its measure surpassed a previous peak recorded in January 2008.

While growth in London and the South East continued to drive the record performance for house prices, the pace of growth eased slightly over the month - possibly because of the summer holidays.

The housing market is expected to see the heat of demand from would-be buyers turned up further over the coming months, following the launch of the Government's new Help to Buy scheme, which offers state-backed mortgages to people with deposits as low as 5%.

RBS, NatWest, Halifax and Bank of Scotland started offering loans under the initiative last week and have reported strong interest so far, while more lenders including HSBC, Barclays and Santander have also confirmed their plans to come on board.

Some sharp increases in property prices in recent months have fuelled fears that the country could be heading for a property "bubble", with the new phase of Help to Buy pushing up demand for homes at a time when the number of properties for sale is in relatively short supply.

Howard Archer, chief European and UK economist for IHS Global Insight, said: "While the strength of house price rises in London is becoming an increasing concern and pushing up the overall national increase in house prices, we are currently a long way off from an overall housing market bubble emerging."

A Treasury spokesman said of the figures: "We're encouraged to see signs that house prices are recovering from a low base alongside the wider economy.

"However, the Government understands that the housing and mortgage markets are yet to return to their long run levels, leaving too many people - especially first-time buyers - struggling to afford historically high level of deposits.

"That's why the Help to Buy mortgage guarantee is a vital tool to give young people the same opportunity to get a foot on the property ladder as previous generations."

Campbell Robb, chief executive of Shelter, warned that the Government's efforts to kick-start the market could actually result in properties being pushed further out of some people's reach as house prices increase.

He said: "Our rollercoaster housing market may make headlines, but these days rising house prices don't have the feel-good factor, and for good reason.

"Nobody wants a return to the bad old days of house prices rising then crashing," he concluded.

More follows...

00.25 | 0 komentar | Read More

Osborne Unveils China Currency And Bank Plan

By Mark Stone, China Correspondent in Beijing

A 'groundbreaking' deal has been signed between the UK and China to allow London to become a global investment centre for Chinese currency.

The joint deal was signed in Beijing by UK Chancellor George Osborne and his Chinese counter-part, Vice-Premier Ma Kai.

The agreement will allow measures to be put in place enabling the Chinese Renminbi (RMB) currency to be invested in the UK for the first time ever.

"A great nation like China should have a great global currency," the Chancellor said at the announcement inside Beijing's ornately traditional Diaoyutai State Guesthouse.

"Today we agreed the next big step in making London - already the global centre for finance - a major global centre for trading and now investing the Chinese currency too.

"More trade and more investment, means more business and more jobs for Britain," Mr Osborne said.

The agreement will allow Chinese banks to open branches in London. At the moment, some Chinese banks have subsidiaries in the UK but not fully fledged branches.

An investment licence with a quota of RMB80bn (£8.2bn) has been agreed by the two sides.

The announcement is the result of a day of talks between Mr Osborne and Mr Ma as part of the ongoing Economic and Financial Dialogue (EFD) between Britain and China.

The talks signal a thaw in diplomatic relations betwen the two countries

It represents the first government-to-government talks between the UK and China since Beijing effectively froze diplomatic relations after David Cameron's meeting with the Dalai Lama last May.

Mr Ma described the talks, which included broad discussion of global financial stability, as "candid, practical and fruitful".

"The two sides agreed that the complex global economic situation requires countries including China and the UK to take active actions and enhance macro-economic policy coordination to boost job creation," the vice-premier said.

In September 2011, the Chinese and British governments jointly declared an interest in supporting the international use of the RMB with London as the hub.

Stage one of that agreement saw the trading of RMB in the UK.

Stage two, outlined today, will see London become an investment hub for the RMB.

Effectively, the agreements mean that Chinese banks are now able to operate in the UK in the same way as US giants like Morgan Stanley and Goldman Sachs.

Mr Osborne's aim is to encourage Chinese banks to use London as their operating hub outside China.

Its central timezone, its reputation as a financial centre and its distinction from the eurozone are all seen as attractive to the Chinese.

In a separate deal, the two men signed a Memorandum of Understanding (MoU) on civil nuclear cooperation.

"This agreement on civil nuclear cooperation is the first of its kind between our two countries - between the world's oldest civil nuclear power and the world''s fastest growing civil nuclear power," Mr Osborne said.

In practical terms, the MoU represents a green light from both governments for UK and Chinese civil nuclear companies to collaborate together and exchange expertise for investment.

"This means potential [for] more business for British companies and more jobs in the UK, and lower long-term energy costs for consumers," Mr Osborne said.

UK/Chinese commercial nuclear collaboration could come as soon as this Thursday.

The Chancellor is due to visit a nuclear power plant in southern China where he is widely rumoured to be signing a commercial deal which will give a Chinese nuclear operator a financial stake in the British nuclear industry.

00.25 | 0 komentar | Read More

Argos Launches Own-Brand Budget Tablet

High street chain Argos has launched its own brand of tablet computer in time for the busy festive shopping period.

On sale from Wednesday, the 7-inch device called MyTablet, costs £99.99 and is available in pink or silver metal cases.

It will run Google's Android Jelly Bean 4.2.2 operating system and comes pre-loaded with apps, including Facebook and Twitter, and games.

Internet browsing, TV, music and video streaming, Skyping and social networking can all be carried out on MyTablet.

MyTablet comes pre-loaded with apps, including Facebook and Twitter

According to Argos, the device has been designed "with teenagers in mind offering all the functionality of a traditional tablet with built-in parental controls for younger users".

The launch comes after Tesco entered into the tablet fray last month with its Hudl priced at £120.

MyTablet joins an increasingly crowded market alongside the likes of the iPad and Kindle.

It is powered by a 1.6GHz dual core processor, with a 1024x600 resolution LCD glass screen and features 8GB of memory with a Micro SD port which can support up to 32 GB with a Micro SD Card.

The device has a built-in two megapixel camera plus a front-facing camera and is wi-fi enabled with Bluetooth capabilities.

John Walden, Argos managing director, said: "Millions of people bought a tablet last year but there's still around 75% of the UK population who do not yet own one.

"We know that tablets will feature heavily on Christmas lists again this year.

"Customers have never had such a good quality tablet at such an affordable price.

"At just £99.99 the Argos MyTablet is highly competitive with a great specification, and fits neatly in the range of tablets we have on offer."

The high street retailer said the proportion of Argos sales via mobile devices, which include tablets, is now 15%.

00.25 | 0 komentar | Read More

Inflation Steady Despite Fuel Price Falls

Falling prices at the petrol pumps failed to offset higher than expected air fares as inflation remained steady in September.

The Office for National Statistics said the Consumer Prices Index (CPI) measure remained at 2.7%, against expectations of a slight fall.

Lower costs at the petrol pumps were offset by an upward contribution from air fares, the ONS said, including an increase for domestic flights.

The figures will disappoint policymakers hoping to see inflation start to drop towards the Bank of England's annual rate target of 2%.

A separate measure of inflation, the Retail Prices Index, fell from 3.3% in August to 3.2% in September.

Petrol prices fell 0.2% over the month, or 0.5p per litre, to stand at £1.37 a litre.

This compared with a 2.7% rise for the same period in 2012.

However, a usual decline in air fares at this time of the year was smaller than normal for long-haul and European flights, while domestic flight prices rose.

Elsewhere, education inflation reached an all-time high of 21.4% since records began in January 1997 as new rates for evening classes and private schools added to the continuing impact of tuition fees.

Food inflation stood at around 4.8%, still well ahead of wage increases but little changed on last month.

Fruit and vegetable price rises nudged up, driven by plums and organic apples, as well as cauliflowers, onions and premium potato crisps.

Other foods including bread and cereals, fish, jam and chocolate had a downward effect, the ONS said.

00.25 | 0 komentar | Read More

Burberry Boss Angela Ahrendts To Join Apple

Burberry has shocked the market by confirming its respected chief executive Angela Ahrendts is to leave the luxury goods firm next year to join Apple.

The company confirmed she would be replaced by chief creative officer Christopher Bailey by mid-2014 and that Bailey would assume both roles.

Ahrendts, who is 53 and originates from the United States, will assume a title of senior vice president of retail and online stores at Apple - a new position - and will report directly to CEO Tim Cook.

Angela Ahrendts has championed online growth

He said of the appointment that Ahrendts shared Apple's focus on innovation and customer experience and was an "extraordinary leader with a proven track record."

She responded: "I have always admired the innovation and impact Apple products and services have on people's lives and hope in some small way I can help contribute to the company's continued success and leadership in changing the world."

News of her departure saw Burberry stock lose 6% when trading began on the FTSE 100 on Tuesday morning.

Over the last five years, its share price has risen by more than 400% under her leadership.

Ahrendts said: "Burberry is in brilliant shape, having built the industry's most powerful management team, converted the business to a dynamic digital global retailer, created a world class supply chain, state of the art technology infrastructure, sensational brand momentum and one of the most closely connected creative cultures in the world today.

Price correct at 11:17 BST

"It has been an honour to have partnered with Sir John Peace (chairman) and Christopher for the last eight years.

"I am confident that, with Sir John's continued guidance and the executive team's support, Christopher, as one of this generation's greatest visionaries, will continue to lead Burberry to new heights.

"Today, Burberry is not only a great brand, but a truly great company," she concluded.

Her successor has been at Burberry since 2001 and has held the major creative role for six years.

Burberry's revenues rose 14% in the first half of the year

Burberry also updated the market on its first half progress, saying its retail revenue rose 17% to £694m in the six months to Sept. 30 - in line with analysts' forecasts.

Retail sales from stores open at least a year grew by 13%, helped by double digit growth in Asia Pacific and the Europe, Middle East, India and Africa (EMEIA) division region and high single digit growth in the Americas.

Total revenue was £1.03bn pounds, up 14%.

Ahrendts' departure leaves Carolyn McCall and Alison Cooper, the bosses of budget airline easyJet and cigarette firm Imperial Tobacco respectively, as the only remaining female chief executives heading Britain's biggest listed companies.

She has spent a total of ten years with Burberry, transforming it into a global luxury brand with a growing presence in emerging markets.

It has been suggested that her success in growing Burberry in Asia - particularly China - will have been attractive to Apple which has struggled to secure the market penetration enjoyed there by many of the iPhone and iPad-maker's rivals.

00.25 | 0 komentar | Read More

Royal Mail CEO Paves Way For Stamp Price Rise

By Mark Kleinman, City Editor

The boss of Royal Mail appeared to pave the way for increases to the price of first-class stamps on Tuesday as the newly-privatised company's soaring shares valued it at nearly £5bn.

In an interview with Sky News to mark the first day of unconditional trading for Royal Mail shares, Moya Greene said the postal operator's products were cheaply priced compared to many European rivals and that the company would need to be competitive.

"We are very proud of the value that we provide for 60p, but we also know that in that field, where we have structural decline on the letters side, we have to be very careful about pricing," she said. "We are very pleased that if you compare our prices to other countries in the European Union, if you look in various weight categories between zero and 100g, we are at the low to middle of the spectrum.

"I don't think you're going to see a company that is going to be senseless about the pricing lever [but] we [both] need to stay competitive and retain the loyalty of our customer base."

Asked if that meant a price rise was imminent, Ms Greene said:

"Well, we didn't raise stamp prices last year... The average UK household spends 50p each week on stamps. We have to price only for the value that we deliver."

Under a deal with Ofcom, the industry regulator, Royal Mail has the freedom to set the price of first-class stamps until 2019 while second-class stamp prices remain tightly-constrained.

In the prospectus for the sale of shares published last month, the Government acknowledged that price rises were possible but said:

"Despite the significant increases in prices that were implemented in April 2012, the UK letter market remains competitively priced when compared with European countries. Following such significant increases (including above RPI [retail price inflation] price increases in [the full year ending 2012], the directors expect any price increases to be broadly in line with the RPI over the three financial years ending in FYE 2016."

A Royal Mail spokesman denied that Ms Greene had been suggesting the imminent arrival of price increases.

Ms Greene appeared to back the view expressed by Vince Cable, the Business Secretary, that the 38% surge in Royal Mail's share price on Friday's trading debut represented "froth".

"I think the Secretary of State has called that one properly," she said. "We need to look forward to the next six-to-nine months. It's a pivotal moment. We are so proud to see the company get to this point in its evolution, but we...need to set reasonable expectations. I must say I agree with what he has had to say on that."

The Royal Mail also addressed the imminent threat of strike action with the result of a ballot of Royal Mail workers due on Wednesday.

"We have to find other ways to resolve differences. We cannot always just be pushing the button for industrial action. We have a very competitive offer [of an 8.6% pay increase over three years] on the table," said Ms Greene.

"We have to be very careful about disappointing our customers, disappointing the British people. The trust they have in our service can be easily broken. The channels of communication are always open. My message would be 'let us look forward and continue on the path we have started'."

Ms Greene declined to say whether a revised offer was on the cards in the next few days but said: "I can only say that the channels of negotiation continue. Let us see how we can get to a successful conclusion."

She also appeared to issue a veiled threat to Royal Mail staff, saying that a strike-free company was "the only we can continue to provide high-quality jobs with good protections and benefits. It is a competitive world that we are in, [so] if we ever disappoint our custs...then we put a lot at risk."

Ms Greene dismissed concerns that the Government was guilty of undervaluing the company and short-changing taxpayers, saying: "I think the Government has handled the execution of this very well to give us a very broad shareholder base.

"I think it is important that Royal Mail remains a British company. It is a cherished institution, it goes back 500 years."

00.25 | 0 komentar | Read More