Pub Adjudicator Could Help Beer Prices Fall

The landlords of pubs tied to major chains appear to have won their fight for better protection from unfair treatment in a move that could help beer prices fall.

Almost half of Britain's 50,000 pubs are run by tenants under so-called "beer-tie" agreements, in which they buy beer from the
firm that holds their lease at above market prices in return for subsidised rent or other benefits.

But publicans have long complained of an imbalance, with many saying they earn less than a national minimum wage equivalent salary of £10,000 per year.

The Government confirmed that following a consultation last year it was establishing a statutory code with an independent adjudicator available to resolve disputes.

The adjudicator would have powers to impose sanctions on pub-owning companies failing to comply with the code and the findings of any inquiry into allegations of unfair treatment.

It was confirmed the new rules also included giving tenants the ability to see the reasons for a rent increase and the power to request a rent review every five years.

The measures were announced by Deputy Prime Minister Nick Clegg and Business Secretary Vince Cable just days after Mr Cable was forced to deny involvement in an alleged attempt to remove Mr Clegg as Liberal Democrat leader following dismal election results.

Mr Clegg said: "British pubs are often the centre of our community, a place where we meet friends, watch sport and enjoy a Sunday roast - they are a national treasure and the envy of the world.

"They also contribute billions to our economy every year. But, for too long, landlords who are tied to larger pub companies have struggled to make ends meet.

"The self-regulatory approach hasn't worked, so these new rules will give fairer treatment for landlords so that they can keep your local pub going strong."

  Campaign for Real  Campaign for Real Ale head of communications Tom Stainer said: "We are delighted that after our 10-year campaign the Government is now introducing a pubs adjudicator to protect the nation's pubs.

"With 28 pubs closing a week it is vital that publicans, who are on the frontline of keeping our valued community pubs open, are given protection from heavy handed business practices from the big pubcos.

"Publicans could see the price they pay for beer fall by up to 60p a pint if the adjudicator forces the big pubcos to match open market prices.

"A 60p-a-pint saving would be a huge boost in the battle to keep pubs open and could lead to cheaper pub prices for customers."

But Brigid Simmonds, chief executive of the British Beer and Pub Association, argued pub-goers would likely face higher prices.

She warned: "The Government's own impact assessment shows that these proposals will close at least 52 pubs with the associated hundreds of job losses.

"A self- regulatory system costing around £100,000 per year will be replaced with a statutory adjudicator costing nearly £2m per annum."

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Ebola: UK Mine Workers Leave After Outbreak

London Mining's "non-essential" staff have left Sierra Leone, the latest West African country to be affected by the highly contagious Ebola epidemic.

The British iron ore firm said a number of personnel had left the country voluntarily and travel restrictions had been placed in the area around its Marampa mine.

"The Company notes recent news reports from Sierra Leone indicating an increased number of cases of Ebola Fever predominantly in the East of the country bordering the area in Guinea where the outbreak first occurred some months ago.

"As a precautionary measure in line with its standard operating procedures, restrictions have been imposed on non-essential travel by visitors from affected areas and some personnel who are able to work remotely, with operations personnel remaining in country and operations running as normal."

Neighbouring countries in Western Africa have been hit by the Ebola virus

It said it was not aware of any suspected cases among its workers or residents in local areas.

But it said it was closely monitoring the situation with Sierra Leone's Ministry of Health and Sanitation, the World Health Organisation (WHO) and other international agencies.

The firm said production at the Marampa facility was not affected.

There is no known cure or vaccine for the virus

The outbreak, which has been gripping West Africa in recent months, claimed its first fatalities in Sierra Leone last week. Since then at least five people have been killed by the virus.

A further 36 suspected cases have been documented, 15 of which have been confirmed.

All fatalities have been in the eastern regions of Kailahun and Kenema near the border with Guinea, the epicentre of the outbreak.

At least 108 have died in Guinea alone after contracting the virus

According to the WHO, confirmed cases of Ebola have killed 108 people in Guinea alone.

It said suspected cases have left a total of 193 people dead.

Other suspected cases have killed at least 10 people in neighbouring Liberia.

The first cases of the hemorrhagic fever were spotted in Guinea earlier this year, marking West Africa's first Ebola outbreak.

There is no known treatment or vaccine for Ebola which, depending on the strain, kills between 25% and 90% of those contaminated.

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Cyber Attack 'To Hit In Next Two Weeks'

Computer users are being urged to protect their machines from malware which allows hackers to steal financial data.

British investigators have been working with the FBI to trace the hackers behind ongoing attacks, and the botnet system used by the targets has been temporarily disrupted.

But the UK's National Crime Agency says people have just two weeks before the system could be functioning again, and urged people to protect their computers from an expected "powerful computer attack".

Bogachev is said to use the online monikers 'lucky12345' and 'slavik'

Between 500,000 and one million machines have so far been infected worldwide, according to court documents.

US officials have accused a Russian hacker of masterminding the scam - and prosecutors say those involved have already raked in more than $100m (£60m).

The NCA is urging people to back up important files and make sure their security software and operating system are up to date.

Two pieces of malware software known as GOZeuS and CryptoLocker are responsible for the alert.

They typically infect a computer via attachments or links in emails.

If a user clicks on GOZeuS, it silently monitors activity and tries to capture information such as bank details.

"(The links or attachments) may look like they have been sent by genuine contacts and may purport to carry invoices, voicemail messages, or any file made to look innocuous," the NCA warned.

"These emails are generated by other victims' computers, who do not realise they are infected, and are used to send mass emails creating more victims."

The Cryptolocker malware is activated if the first attack is not profitable enough.

It locks a user from their files and threatens to delete them unless a "ransom" of several hundred pounds is paid.

Some 234,000 machines were hit by Cryptolocker - bringing in $27m (£16m) in payments - in its first two months, the US Justice Department said.

Computers running Windows software are said to be most vulnerable

More than 15,500 computers in the UK are infected and "many more" are at risk, according to the NCA.

Stewart Garrick, a senior investigator with the NCA, told Sky News the threat was mainly against individuals or businesses running Windows-based computers.

Thirty-year-old Russian Evgeniy Bogachev is the alleged leader of the gang behind the attacks, FBI executive assistant director Robert Anderson told a news conference in Washington DC.

US and other agents seized servers around the world this weekend and freed 300,000 computers from the infection.

"They (the FBI) have disrupted the network and taken control of it," said Sky's Tom Cheshire.

"So when the hackers try to speak to the computer that's affected, that line of communication has been cut off.

"You now have a chance to clean up. The first thing you should do is update your operating system - especially if you're on Windows, then look to scan your computer for viruses and it should be able to find it."

For more information visit www.getsafeonline.org/nca.

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Europe Calls On UK Govt To Increase Taxes

The European Commission has urged the UK Government to raise taxes and rein in its Help To Buy scheme.

The European Union's executive body called on the Government to increase the amount it collects in taxes to help it cut the deficit, saying policy had so far been "heavily skewed" to spending cuts.

Setting out their 2014 economic policy recommendations for the UK, commissioners said the coalition should be "prioritising capital expenditure" to boost the "fragile" recovery.

Many of the recommendations concern the housing market, including a call for more houses to be built and for adjustments to Help To Buy, which many have warned is causing a potentially damaging housing bubble.

A report from Nationwide released on Tuesday showed house prices had risen for the 13th month in a row.

Mr Cameron has said the EU is "too bossy"

The "regressive" council tax system was also in the Commission's sights.

The Commission said: "At the moment, increasing property values are not translated into higher property taxes as the property value roll has not been updated since 1991 and taxes on higher value property are lower than on lower value property in relative terms due to the regressivity of the current rates and bands within the council tax system."

The Commission broadly praised action on extending childcare provision and reforming welfare, but said more must be done on apprenticeships and skills.

Recommendations on economic policy have been made for all countries. It comes after the European elections were dominated by anti-EU sentiment, with people protesting about the powers of the unelected European Commission.

Prime Minister David Cameron described the EU as "too big, too bossy, too interfering" last week, but a Treasury spokesman said the recommendations were "in line" with the Government's approach.

Mr Cameron is currently battling moves to appoint arch federalist Jean-Claude Juncker to president of the Commission, as he tries to renegotiate Britain's deal with the EU.

The Prime Minister reportedly warned at the weekend that the UK could quit the union if Mr Juncker was appointed.

The Commission's economic suggestions have provoked anger among politicians and some campaigners.

Matthew Elliott, chief executive of Business for Britain, said: "This is further evidence that the EU should be let nowhere near tax policy of its member states.

"Leaders in Brussels appear not have taken on board the resounding message from the recent elections that Britain wants less interference from the continent, not more."

 A Treasury spokesman said: "The Government's long-term economic plan is working, delivering economic security for hardworking people.

"The European Commission continues to support the UK Government's strategy including its commitment to deficit reduction. The Commission's recommendations are in line with the Government's approach."

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Mortgage Rules 'Hit Housing Market Activity'

UK house prices have risen for the thirteenth month in a row but activity may be slowing as greater restrictions are placed on mortgage lending.

The findings, released by Nationwide in its monthly house price index, recorded a 0.7% increase in average prices in May.

Nationwide said it meant that the annual pace of price growth edged up to 11.1% from 10.9% the previous month - its strongest level since June 2007 - with first-time buyers driving the recovery.

The report was released against a backdrop of fierce debate about whether the market is overheating - particularly in London.

Mr Cable will hold talks with housebuilders on Tuesday

Sky News learned on Monday that the Business Secretary Vince Cable and the Chancellor were separately to meet the bosses of major building firms this week over the continuing problem of historically low supply failing to meet the need for new homes.

Separate figures released on Tuesday morning also raised fears the housing industry was struggling to rebuild itself in the wake of the financial crisis to match demand, with activity in the construction sector measured by Markit at a seven-month low in May.

The European Union also called on the UK to build more properties to help stabilise the market.

Nationwide said it believed the biggest factor behind the steep rise in property prices was the improving economy.

Its chief economist Robert Gardner said: "There have been tentative signs that activity in the housing market may be starting to moderate, with mortgage approvals in April around 17% below January's high.

"It is too early to say whether nationally this is indicative of a cooling trend in the wider market.

"The slowdown may partly be the result of the introduction of Mortgage Market Review (MMR) measures, which may take a few months to bed down.

"The underlying pace of activity should become more evident as we move through the summer months and the impact of MMR becomes clearer.

"However, with mortgage rates close to all-time lows and labour market conditions continuing to improve, underlying demand for homes is likely to remain strong."

Nationwide believed first-time buyers were driving the recovery, though the controversial Help to Buy scheme was unlikely to be the biggest factor behind the surge.

Mr Gardner continued: "First-time buyers accounted for 48% of house purchase activity in March, a record high well above the long run average of 38%.

"Data from DCLG suggests that the Help to Buy scheme is providing support to first time buyers, who accounted for over 80% of Help to Buy loans to date.

"However, the modest numbers involved so far suggest that Help to Buy is unlikely to be the main factor behind the recent pickup in the wider housing market."

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FBI Chases 'Ringleader' Behind Cyber Threat

How Serious Is 'Ominous' Global Cyber Threat?

Updated: 12:41pm UK, Tuesday 03 June 2014

By Tom Cheshire, Technology Correspondent

It's a dramatic countdown: you have just two weeks to protect yourself against a "powerful computer attack", the National Crime Agency has warned.

All very ominous, but how serious is the threat?

Around 15,500 computers are already infected in the UK. To put that in context, there are at least 21 million computers in the country, before secondary devices like laptops, tablets and phones are counted. That's less than a 0.1% infection rate.

And although Game Over Zeus - one of the pieces of malware involved - has caused some serious financial harm to individuals, authorities estimate it is responsible for hundreds of millions of pound of fraud.

To put that in context, cybercrime worldwide costs around £60bn annually, according to one estimate.

So why the stark warning?

First, the botnet, the network of infected computers controlled by criminals, is pretty resilient.

It works on a peer-to-peer mechanism, and uses a lot of encryption. Compared to other botnets, which can sprawl into the millions, this one was tightly controlled, by gangs from Russia and Ukraine.

That's who the NCA, FBI and US Department of Justice have moved against, and that's unusual.

The authorities rarely seize or disrupt a botnet. They can do so for only two weeks, as it's an expensive operation.

At the same time, they're aiming to arrest the gang's ringleaders through more traditional, legal means.

But it's a new line in the sand, showing that international forces are willing and able to collaborate on cybercrime.

Pity, then, that the UK government's Get Safe Online site wasn't quite so joined up: it crashed under the weight of concerned internet users.

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How Serious Is 'Ominous' Global Cyber Threat?

By Tom Cheshire, Technology Correspondent

It's a dramatic countdown: you have just two weeks to protect yourself against a "powerful computer attack", the National Crime Agency has warned.

All very ominous, but how serious is the threat?

Around 15,500 computers are already infected in the UK. To put that in context, there are at least 21 million computers in the country, before secondary devices like laptops, tablets and phones are counted. That's less than a 0.1% infection rate.

And although Game Over Zeus - one of the pieces of malware involved - has caused some serious financial harm to individuals, authorities estimate it is responsible for hundreds of millions of pound of fraud.

To put that in context, cybercrime worldwide costs around £60bn annually, according to one estimate.

So why the stark warning?

First, the botnet, the network of infected computers controlled by criminals, is pretty resilient.

It works on a peer-to-peer mechanism, and uses a lot of encryption. Compared to other botnets, which can sprawl into the millions, this one was tightly controlled, by gangs from Russia and Ukraine.

That's who the NCA, FBI and US Department of Justice have moved against, and that's unusual.

The authorities rarely seize or disrupt a botnet. They can do so for only two weeks, as it's an expensive operation.

At the same time, they're aiming to arrest the gang's ringleaders through more traditional, legal means.

But it's a new line in the sand, showing that international forces are willing and able to collaborate on cybercrime.

Pity, then, that the UK government's Get Safe Online site wasn't quite so joined up: it crashed under the weight of concerned internet users.

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Cafe Rouge Owner To Offload Loss-Making Sites

By Mark Kleinman, City Editor

The owner of the Cafe Rouge and Strada chains is preparing a sweeping financial restructuring that will result in the break-up of one of the UK's biggest restaurant operators.

Sky News has learnt that Tragus Group is considering the launch of company voluntary arrangements (CVAs) that would enable it to shed or restructure some of its rent obligations at Cafe Rouge and Bella Italia, another of its businesses.

It is also poised to launch a sale process for Strada, the premium Italian chain which has been struggling at a time when consumers are continuing to keep a close eye on discretionary spending.

CVAs are processes which allow financially-distressed companies with significant leasehold property commitments to reduce or walk away from rent payments at some of their sites.

Such arrangements can be controversial because while they require the consent of landlords, they often leave property-owners with little choice but to accept them because the alternative – a formal administration procedure – would give them an even worse deal.

Companies which have used CVAs in recent years include Fitness First and JJB Sports.

Restaurant industry sources said that Tragus could make an announcement about the restructuring proposals as soon as Wednesday.

The final details of the plans are still being worked on and Tragus could yet decide to proceed with a restructuring that does not involve formal CVAs, one added.

Zolfo Cooper, a professional services firm, is understood to have been lined up to oversee the financial overhaul.

If the CVAs do proceed, they would affect approximately 125 Café Rouge sites and 90 Bella Italias across the UK, accounting for about two-thirds of Tragus's UK assets.

Strada operates from 70 venues, while Tragus's other brands include Belgo, the specialist Belgian chain.

The group has struggled under the weight of the debt burden used to finance its takeover in 2006, during a period in which leveraged buyouts were reaching their peak.

Pre-tax losses at the restaurant operator nearly doubled to £36m in the 12 months to June 2, 2013, the latest trading period for which results have been publicly disclosed.

Tragus was formerly owned by Blackstone, the American private equity giant, but was taken over earlier this year by lenders led by Apollo Management.

Its performance under its previous owners, Legal & General Ventures and ECI, were in contrast to Blackstone's period of ownership, with both making substantial sums from their ownership of the business.

The company was until recently chaired by Charles Gurassa, a prominent entrepreneur who previously ran Lovefilm, the multi-channel movie service which was acquired by Amazon.

Employing more than 7,000 people, the impact of the restructuring on Tragus employees will partly depend on the outcome of negotiations with landlords in the coming weeks, sources said.

The news emerges at a time of significant corporate activity in the restaurants sector.

Cinven, another private equity group, is conducting an auction of PizzaExpress, which is said to have attracted interest from a handful of other investment funds and a number of unnamed parties from the Middle East and Asia.

Spokespeople for Tragus and Zolfo Cooper declined to comment.

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Asda Fighting Off Challenge From Discounters

Asda is the only so-called 'big four' supermarket chain growing its share of the market as the industry endures its slowest growth for eleven years.

Figures compiled by Kantar Worldpanel showed the Walmart-owned firm's share of the grocery business rose to 17.1% in the 12 weeks to May 25 from 17% a year ago.

It achieved the growth at a time when the other major chains all saw their market shares slip as the hard discounters such as Aldi and Lidl benefited from the squeeze on family budgets.

Tesco, which is expected to report disappointing first-quarter trading on Wednesday, saw its market share decline to 29% from 30.5% a year ago after a 3.1% dip in sales.

Morrisons saw its share fall to 10.9% from 11.6% over the 12 months, with its sales tumbling almost 4%.

Sainsbury's suffered a market share fall to 16.5% from 16.7% a year ago.

Tesco and Morrisons have responded to the challenge posed by the discounters with price cuts - the vast majority imposed by Morrisons.

But it remained to be seen if the discounting would help arrest their respective share slides as Lidl secured a record market share of 3.6% in the period - driven by its highest ever year-on-year growth of 22.7%.

Rival Aldi grew 35.9% over the period and retained its record 4.7% market share.

Kantar Worldpanel added that inflation in the grocery sector fell for the eighth successive quarter to 1.2%, reflecting the price pressures in the market.

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State 'Bad Bank' Plots £1.5bn Mortgage Sale

By Mark Kleinman, City Editor

The state-owned 'bad bank' which holds the remnants of Bradford & Bingley and Northern Rock is to sell a £1.5bn mortgage portfolio that will attempt to exploit buoyant demand for UK housing market assets.

Sky News has learnt that UK Asset Resolution (UKAR) has hired investment bankers at Credit Suisse to market the loans, with the agency understood to be determined to secure a sale price at close to or better than the book's par value.

Prospective buyers are likely to include investment funds and a number of UK high street lenders, sources said on Tuesday.

The auction will represent the first such transaction since July 2012, when UKAR agreed the sale of £465m of Northern Rock Asset Management (NRAM) mortgages to Virgin Money.

The proceeds of that sale were used to repay part of NRAM's loan from the Government, which enabled it to stave off outright collapse in 2008.

Since then, the most significant deal involving UKAR took place last year, when NRAM's portfolio of standalone unsecured personal loans was sold to OneSavings Bank plc and Marlin Financial Group for a combined price tag of £400m.

News of the latest sale process emerged on the day that UKAR trumpeted its return to the taxpayer of roughly a quarter of the £38.3bn loan it took on six years ago.

Richard Banks, UKAR chief executive, said the results represented "good progress" for the taxpayer-backed organisation.

"It is also pleasing to see the significant reduction in arrears due to the dedication and professionalism of colleagues proactively working with our customers to help them achieve the right outcomes."

He went on to warn, however, that the prospect of rising interest rates would be a significant obstacle for many of its 467,000 customers.

"The signs are that the UK economy is continuing to recover, both in terms of growth and employment and in the housing and mortgage markets," UKAR said.

"House prices have increased faster than expected over the past 15 months, which, combined with continued low rates of interest, is good news for our customers and has driven increased redemption activity.

"However, despite the more positive conditions, many households continue to be under financial pressure. This, together with the prospect of interest rate rises and higher mortgage payments, will be a concern for many of our customers."

That warning echoes those of leading public figures in recent weeks, with representatives of major housebuilders due to meet Vince Cable, the Business Secretary, and George Osborne, the Chancellor, this week.

UKAR declined to comment on the new mortgage sale.

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