Perfumes Leave Bad Smell For Elizabeth Arden

Cosmetic firm Elizabeth Arden has seen its share price drop by 24% after it revealed a plunge in sales of celebrity-linked perfumes.

Sales were hit hard by a decline in interest for scents for music stars Justin Bieber and Taylor Swift.

The company's quarterly pre-tax loss in the three months to the end of June was $81m (£48m), its worst ever result.

In a statement the company said: "The company had expected weaker sales comparisons due to the lower level of fragrance launch activity in fiscal 2014 versus fiscal 2013.

"(But) the decline in sales of celebrity fragrances, particularly the Justin Bieber and Taylor Swift fragrances, was steeper than anticipated."

Elizabeth Taylor famously launched a number of her products with the firm

The company admitted there was also a decline in other scents linked to celebrities.

It sells prestige beauty products in more than 120 countries and markets perfumes for a number of famous names, including Britney Spears, Elizabeth Taylor, Jennifer Aniston, Mariah Carey, along with Rocawear designer fragrance.

The company said net sales for the fourth quarter to the end of June dropped by 28%, to $191.7m (£115m), while full-year net sales declined 13.4% to $1.16bn (£700m).

Elizabeth Arden was founded in 1910 and became the glamorous go-to shop for famous names.

In the 1950s Marilyn Monroe was a regular visitor, and in 2008 actress Catherine Zeta-Jones opened its new Fifth Avenue flagship store.

The results are in stark contrast to the health of rival Estee Lauder, which saw net sales jump 13% to $2.73bn (£1.64bn) in the same quarter.

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Housebuilder Persimmon Profit Jumps 57%

Housebuilder Persimmon has seen its pre-tax profit jump by 57% in the first half of the year.

The company said underlying profit reached £212.9m in the six months to the end of June.

Revenue in the period was also up 33% to £1.2bn and it said sale completions in the six months were up 28%.

It sold 6,408 new homes with an average selling price up 4.3% at £186,970.

The results cover the months when there was a flurry of increased activity in the housing market.

It bought 14,251 building plots in the period, pushing its portfolio of consented land sites to 82,250.

Sharp price rises were only slowed late in the period, when the fear of rate rises and new mortgage affordability rules were brought in.

Group chief executive Jeff Fairburn told Sky News: "We see good confidence in the market so we are seeing good visitor levels.

"Certainly the mortgage market is very supportive at the moment and Help to Buy, as a message, is certainly bringing confidence to buyers - particularly first-time buyers - and enabling them to buy new homes.

"So we're pleased to see the additional demand and we're keen to step up our production to meet that."

The company said it has now built a cash stockpile of £326m, up from £48m in the same period last year.

The results come a day after Bovis Homes said its pre-tax profit for the first six months of the year was up 166%, to £49.4m, on the back of a record number of completions.

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Ministers Face New Royal Mail Sell-Off Row

By Mark Kleinman, City Editor

Ministers considered selling the Government's entire stake in Royal Mail when the shares were trading close to their post-privatisation peak earlier this year - but decided against doing so because it risked antagonising City investors.

Sky News has learnt that Vince Cable's Department for Business, Innovation and Skills (BIS) and the Shareholder Executive - which oversees state-owned assets - discussed the sale of taxpayers' remaining 30% stake in Royal Mail in March, five months after it listed on the stock market.

By deciding not to press ahead, ministers effectively forfeited a further £500m gain for the public purse.

The disclosure risks reigniting the row over Royal Mail's controversial sell-off, with Mr Cable accused by MPs on the BIS Select Committee and the National Audit Office of costing taxpayers £1bn by pricing the shares too cheaply last autumn.

At the time the sale of taxpayers' remaining 30% shareholding was discussed in mid-March, the postal operator's shares were trading at around 590p, meaning that a sale would have generated close to £1.8bn.

Selling the shares at that point would have entailed breaking a lock-up agreement put in place at the time of the company's initial public offering (IPO) last October, under which the Government pledged not to sell any further shares for at least 180 days.

However, such lock-ups include scope for exemptions with the consent of the underwriting banks and are frequently broken by listed companies, meaning it would have been possible for ministers to sanction the early sale of the shares.

Critics argue that alienating institutional investors should not have been a preoccupation for ministers after some of the so-called 'priority investors' allocated shares during the privatisation sold them almost immediately, despite having been identified as long-term shareholders.

By the time the lock-up agreement expired on April 13, Royal Mail shares had fallen by approximately 20% from their mid-March level to around 490p.

With the shares having declined since then by a further 11%, ministers risk being accused of sacrificing a potential £500m gain by not having sold the 30% shareholding when it was under active consideration.

In a statement, a BIS spokesperson said: "Ministers receive regular advice on Government shareholdings of which Royal Mail is one.

"As is standard market practice, Government gave a commitment at the time of the IPO not to sell any further shares for 180 days post admission to the [London Stock Exchange] in order to provide the company with greater stability.

"The Secretary of State was never advised to break this lock-up period."

Chuka Umunna, the shadow business secretary, said the disclosure offered further evidence that the privatisation of Royal Mail had been "botched".

 "The handling of this since they bungled the IPO has been characterised by incompetence and attempted buck passing that will fool no-one," he said.

The sale of the Government's remaining Royal Mail shares is now considered unlikely before the General Election next May.

Sky News has also learnt that Labour is expected to include a commitment to retain the stake in its election manifesto.

The issue was discussed at the Party's recent National Policy Forum and will be debated at its autumn conference next month.

"The Tories have put the future of the postal service at risk. They pressed ahead with an unnecessary fire sale of Royal Mail, in the process short-changing taxpayers by hundreds of millions of pounds," a Labour spokesman said.

"As part of Labour's commitment to ensuring that the public interest in Royal Mail is upheld, the National Policy Forum discussed how Labour will commit to keeping the remaining stake in public ownership.

"These proposals will be discussed at Annual Conference as part of Labour's priority to safeguard the services consumers and businesses get from a privatised Royal Mail."

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Oz Tycoon MP Attacks 'Chinese Mongrels'

An Australian mining magnate turned MP has caused outrage by calling the Chinese "mongrels" and "bastards" who shoot their own people.

The comments by multimillionaire Clive Palmer have forced both government and opposition members to unite in condemnation, amid fears it damages relations with Australia's biggest trading partner.

Mr Palmer - known for his efforts to rebuild a replica of the Titanic - was a major donor to Australian conservative politics before being elected to parliament as a senator last year after he set up his own political party.

He made the comments on the nationally televised Q&A programme on the ABC on Monday night when questioned about a legal dispute between his mining firm Mineralogy and Chinese state-owned partner, Citic Pacific.

Citic had previously said in court that Mr Palmer syphoned $12m (£6.7m) to fund his Palmer United Party's (PUP) election campaign - a claim Mr Palmer denies.

Australia's mining exports have helped fuel China's rapid building boom

He said his companies were owed "about $500m (£280m) by the communist Chinese government that doesn't want to pay".

"But it won't stop the fact that the Chinese government wants to bring workers here to destroy our wage system; it won't stop the fact that they want to take over our ports and get our resources for free," Mr Palmer said.

He said Citic had shipped $200m (£110m) worth of iron ore from Australia without paying royalties to the state of Western Australia, a claim its state premier denied.

"I don't mind standing up against the Chinese bastards and stopping them from doing it," Mr Palmer said.

He added that his companies already had three federal and supreme court judgments "against these Chinese mongrels".

"I'm saying this because they're communist, they shoot their own people, they haven't got a justice system and they want to take over this country, and we're not going to let them do it," Mr Palmer added.

Later he tried to clarify his statements on Twitter and said his comments were "not intended to refer to Chinese people but to (a) Chinese company which is taking Australian resources & not paying".

Mr Palmer's Blue Star Line issued artists' impressions of the Titanic II

A spokesperson for the Chinese embassy in Australia told the ABC that Mr Palmer's comments were "absurd" and "full of ignorance and prejudice".

Australian Treasurer Joe Hockey said the outburst could harm Australia's relations with China, while agriculture minister Barnaby Joyce agrees Mr Palmer's comments were inappropriate.

''You can't just drop your bundle on national television,'' Mr Joyce said.

Meanwhile, foreign minister Julie Bishop said she would personally tell the Chinese embassy in Canberra that "these views are not representative of the Australian parliament and I don't believe representative of the Australian people".

In 2013, two-way trade between the countries reached $150bn (£84bn).

In early 2013 Mr Palmer unveiled plans for Titanic II, which was said to be three inches longer and slightly wider that the original ill-fated liner.

He said his Blue Star Line had agreed to a deal with China's state-owned CSC Jinling Shipyard to launch the replica in 2016, and denied the announcement was a publicity stunt or in bad taste.

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Tom Hanks' Typewriter iPad App Hits Number One

An iPad app created by Hollywood star Tom Hanks has shot to the top of Apple's iTunes Store.

Hanx Writer, which emulates an old-fashioned typewriter, was only launched last week but has already become one of the most popular apps.

The free download makes all the noises of a typewriter, including the "ding" when you start a new line, but benefits from modern technology such as being able to press delete when you make a mistake.

After its launch on August 14, Hanks tweeted: "The Future. Will be written. On a #HanxWriter. This I vow. It's Free! Hanx."

When asked by @appstore on Twitter what inspired the Saving Mr Banks star to create the app, he said: " ... cause I find it's like music that spurs along the creative urge. Bang bang clack-clack-clack puckapuckapuckapucka... #HanxWriter"

Hanks with his wife Rita Wilson at this year's Baftas

Last summer Hanks wrote about his love of typewriters in the New York Times and revealed he uses one every day.

"Everything you type on a typewriter sounds grand, the words forming in mini-explosions of SHOOK SHOOK SHOOK. A thank-you note resonates with the same heft as a literary masterpiece," he said

Hanx Writer connects to the iPad via Bluetooth to external keyboards and also offers an on-screen keyboard.

The app offers three paid-for upgrade options which give different ribbon and background colour options and the ability to create title pages with pictures.

The actor teamed with mobile-development studio Hitcents on the app.

Users have called the Hanx Writer "genius" and "simple" in their reviews. 

Andre wrote: "It is amazing just how simple sounds and a typewriter layout can deceive your mind. I actually feel what I am typing rather than the cold and soulless iPad default keyboard."

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Top Music College Grabs £50m Smash Hit Sale

By Mark Kleinman, City Editor

The chain of music colleges which provided a launch-pad for the careers of artists such as The Kooks is closing in on a takeover valuing it at more than £50m.

Sky News understands that the owner of the Brighton Institute of Modern Music (BIMM) is in exclusive talks to sell the business to Bowmark Capital, a private equity firm.

Negotiations with BIMM's current controlling shareholder, Sovereign Capital, are expected to take several weeks before a deal is reached.

A successful sale is likely to result in a windfall for Sovereign's investors, who include Lord Nash, the parliamentary under secretary of state for schools.

The Who's Roger Daltrey has supported the colleges

BIMM's full name belies its national coverage, with sites in Bristol, Dublin and London now offering courses to almost 3,500 students.

Among BIMM's other prominent alumni is the Two Door Cinema Club drummer Ben Thompson, while The Who frontman Roger Daltrey has appeared at a number of the colleges' presentation ceremonies.

Bowmark, which is an investor in the Las Iguanas restaurant chain, has seen off competition from a clutch of other investment firms, including Providence Equity Partners, which owns Galileo Global Education, a higher education provider; TA Associates, owner of Florida's Full Sail University; and Equistone Partners.

Sovereign invested £10m in BIMM in 2010, boasting at the time that former students at the music education provider had scored 30 Top 40 UK singles.

Bowmark and Sovereign both declined to comment.

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Inflation Drops More Than Expected In July

The two measures of UK inflation have dropped more than expected in July, prompted by discounting on the high street.

According to official data, the Retail Prices Index (RPI) stood at 2.5% and the Consumer Prices Index (CPI) was 1.6%.

Economists had expected a CPI rate of around 1.8%, after official figures showed a June rate of 1.9%.

CPI now appears to be headed back towards May's figure of 1.5%, which at the time was the lowest level for four-and-a-half years.

Inflation has been below the Bank of England (BoE) 2% target for seven straight months - the first time this has occurred since 2005.

The RPI, which unlike the other measure includes housing costs, was recorded in June at 2.6%.

The Office for National Statistics (ONS) said the biggest contributor to the slowing annual inflation rate was discounting on the high street for clothing and footwear.

This was because retailers held off on price cuts throughout June.

Food and non-alcoholic drinks also fell year-on-year, and the CPI was also eased by falling spirits and wine prices.

The ONS said the average house price in London is now £499,000

Liberal Democrat Chief Secretary to the Treasury Danny Alexander told Sky News: "The fact that inflation has been below the Bank of England target for seven consecutive months shows that subdued inflation is now becoming the norm as the economy recovers.

"Eliminating the deficit fairly, and repairing the UK economy remains central to the role of Liberal Democrats in Government.

"These encouraging inflation numbers should give businesses the confidence they need to deliver the investment required to boost productivity. Rising productivity is the only route to sustainable increases in living standards."

The data comes as commuters learned they would face a 3.5% increase in rail fares next year, which uses the RPI figure plus 1% to calculate increases.

The further drop to the CPI eases pressure on the BoE to hike the 0.5% base rate, which has been at its historic low for the last five years.

Meanwhile, the ONS said UK house prices increased by 10.2% in the year to June, reaching a new high average price of £265,000.

House prices in the capital, however, shot up by 19.3% in the year to June.

It calculated the average house price in London at £499,000, and said that "house prices are increasing strongly across most parts of the UK".

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Rail Passenger Fares To Rise By 3.5% In 2015

Rail Fare Rises Put Pressure On Chancellor

Updated: 1:00pm UK, Tuesday 19 August 2014

By Tadhg Enright, Business Reporter

Hundreds of thousands of train commuters are facing ticket price increases of 3.5% from next January - almost three times the rate of average wage growth - increasing pressure on the Chancellor.

Annual fare increases are based on the retail price index for July, a measure of inflation which includes housing costs, which the Office for National Statistics has calculated at 2.5%.

Rail companies are allowed to increase fares at a rate of July Retail Prices Index plus 1%, which means that most rail users travel costs will go up by 3.5%. However, on a limited number of routes, fares can be increased by a further 2%.

Based on the Bank of England's recent forecast that average wages will increase by 1.25% this year, it means that commuters will have to spend more of their disposable income on getting to work.

Martin Abrams, of the Campaign for Better Transport, said: "By deliberately ramping up rail fares, [the]Government is hitting the living standards of everyone who relies on the train to get to work.

"There are the large numbers of rail commuters living in marginal constituencies. They will be looking to Government to bring a permanent end to this annual fiasco."

The Government is being urged to revise its rules for fare increases.

Passenger Focus said despite expensive commuter fares, occasional travellers can get some of the cheapest fares in Europe - if bookings are made several months in advance.

It said British rail operators are increasingly using an airline-style pricing structure, with last-minute bookings much higher in price.

But the minister responsible, Claire Perry MP, told Sky News that above inflation increases are needed to fund the redevelopment of the country's rail infrastructure.

"There is an unprecedented investment and it is a rail renaissance," Ms Perry said.

"The challenge is making sure fares are fair and commuters can travel in comfort."

Protests have been organised at more than 40 train stations around the country by trade union activists, who say it is another reflection on how privatisation has failed and consumers would be better served by bringing back British Rail.

"People will simply be priced off the railways while the greedy train operating companies are laughing all the way to the bank," RMT acting general secretary Mick Cash said.

"We are once again ratcheting up the highest rail fares in Europe to travel on some of the most clapped-out and overcrowded services."

Last year, in his Autumn Statement, Chancellor George Osborne intervened to limit this past year's increase to just the RPI figure.

Campaigners have warned that, with a General Election looming next spring, he will come under pressure to do so again.

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Watchdog Accuses Govt Of Cover-Up Over Scheme

A spending watchdog has accused the Government of trying to conceal details of a troubled flagship benefit project.

The Commons Public Accounts Committee raised concerns that the decision to award the Universal Credit scheme a "reset" rating was "an attempt to keep information secret and prevent scrutiny".

The move meant the project was not ranked by the Major Projects Authority (MPA), on a five-tier traffic light system running from green to red, in this year's annual report.

The MPA confirmed the decision to give it a reset rating had been taken by ministers in the Department for Work and Pensions.

The "reset" category was introduced for the 2013-14 report and was only applied to this single project.

In their report, the MPs said: "We are particularly concerned that the decision to award a 'reset' rating to the Universal Credit project was an attempt to keep information secret and prevent scrutiny."

The flagship welfare reform, which aims to consolidate six working-age benefits into a single payment, has been dogged by problems leading to delays.

But ministers have insisted the scheme is on track and would realise its aim to get people into work and simplify the benefits system.

The committee also highlighted "serious weaknesses" in the Government's ability to deliver major projects, ranging from building ships and motorways, through to overhauling Government departments.

The report said: "These projects represent a considerable and rising cost to the taxpayer: the MPA reported in May 2014 that the whole life cost of these projects was £488bn, an increase of some £134bn on the previous year."

The MPs called for the MPA, which was set up to improve project delivery by Whitehall departments, to be given beefed up powers and to focus on departments such as health and defence, where there were a number of risky projects.

The committee also said said the Treasury should be given overall responsibility for overseeing the portfolio of major projects, rather than treating them as individual schemes.

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Greggs 'Scum' Logo On Google Goes Viral

High street bakery Greggs has been embarrassed after a spoof of its logo appeared online - and quickly went viral on social media.

An image with the tagline "providing **** to scum for over 70 years" appeared prominently in Google search results for the company's name instead of its usual "Always Fresh. Always Tasty" slogan.

The company's Wikipedia page was also apparently hit by hackers with a crude message briefly appearing before it was spotted and taken down.

Greggs' communications team was quick to issue a good-humoured response to Twitter users who spotted the Google glitch.

Greggs and Google exchanged jokey Twitter messages over the episode

As the image was shared thousands of times - even trending on Twitter - It said: "All publicity is good publicity? That's what they say isn't it? *weeps alone in a corner*".

While Greggs worked on getting Google to address the problem "as a matter of urgency", the company tweeted Google UK, offering doughnuts as a reward for fixing it.

Google's PR team joined in with the joke, responding: "Sorry @GreggstheBakers, we're on it. Throw in a sausage roll and we'll get it done ASAP. #fixgreggs".

Greggs suggested a new Google doodle to mark the glitch

A short time later Google confirmed via Twitter that the offensive image had been removed - earning a reply from Greggs suggesting a new Google doodle made from sausage rolls.

The fake logo was hosted by the satirical website Uncyclopedia, which revealed it was uploaded by a user called Romartus on Tuesday morning.

It is thought it was picked up by a Google algorithm, which trawls 60 trillion individual pages across the web for content relevant to search results.

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