Rangers CEO Quits As Ashley Agrees Bailout

Newcastle United and Sports Direct owner Mike Ashley has won his fight to remove the chief executive of troubled Rangers Football Club.

It was confirmed on Monday that Graham Wallace had quit after the club agreed a £2m interest-free loan with Ashley, who gets to appoint up to two directors to the board in return for the cash.

Ashley, who owns almost 9% of the voting rights of Rangers, had previously been calling for a shareholder meeting to oust Mr Wallace and financial consultant Philip Nash.

Rangers said it has launched a search for Graham Wallace's replacement

Mr Nash resigned last week.

The former managing director of Newcastle United, Derek Llambias, is tipped to be given the vacant chief executive role.

The latest boardroom drama follows years of financial upheaval at the club.

It has climbed back to within one division of the top flight of the Scottish game after its 2012 collapse under a mountain of debt, which forced it to relaunch from the fourth tier.

However, its progress on the pitch - currently second in the Scottish Championship - has been marred by boardroom infighting and further financial losses.

On Friday, the Rangers board voted to accept the offer of an emergency loan from Mr Ashley, rejecting a £3m counter offer put forward by Sale Sharks owner Brian Kennedy, who was a member of the Blue Knights consortium which failed to stop the club sinking into liquidation in 2012.

It is understood Mr Ashley wants to increase his stake and there is press speculation he could even launch a bid to take control under what the Daily Record called a "power grab".

The billionaire has recently pulled off a string of surprise moves, including a put-option agreement last month on a small stake in Britain's biggest grocer Tesco and a move to increase his stake in Debenhams.

The Scottish FA is expected to contact Rangers this week to ask for clarity on Mr Ashley's role at the club.

He currently has an agreement with the SFA that restricts him from owning more than 10% of Rangers shares and from having undue influence in boardroom affairs, as a result of his ownership of Newcastle United.

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Sports Direct Settles Zero-Hours Legal Case

Sports Direct is updating the terms of its zero-hours contracts for more than 20,000 staff after settling a case brought by a former employee who claimed to have suffered panic attacks.

According to law firm Leigh Day, the retailer controlled by Newcastle United owner Mike Ashley agreed to a number of legally-binding changes to its recruitment and policy practices for zero-hours workers.

The use of zero-hours contracts - recently investigated by the Government - is controversial because they offer no guaranteed hours of work, although supporters have argued they give workers greater flexibility.

Leigh Day said that the settlement with former worker Zahera Gabriel-Abraham meant Sports Direct was required to "expressly state that the roles do not guarantee work and produce clear written policies setting out what sick pay and paid holiday their zero hours staff are entitled to".

Elizabeth George, who represented Ms Gabriel-Abraham in her claim against Sports Direct for sex discrimination, unfair treatment and breach of holiday rights, said: "Sports Direct continue to deny any wrong doing or short-falls in their treatment of zero-hours workers but Zahera and many more of the company's zero-hours staff will tell you differently.

"Zero-hours workers are not second class workers. They have the right to be treated fairly and with respect.

"They have the right to take holidays and to be paid when they take them.  They have the right to statutory sick pay.  They have a right to request guaranteed hours. 

"Sports Direct will now have to make that crystal clear to staff."

Ms Gabriel-Abraham said: "I was told that if I took holidays, I wouldn't get holiday pay, and that if I was ill I wouldn't get sick pay.

"It made me feel trapped and helpless, but it's something that Sports Direct won't be allowed to get away with any more.

"Only time will tell whether Sports Direct are really dedicated to improving how it treats its workers. This is a good result for Sports Direct employees, but the fight isn't over yet."

Sports Direct said: "Sports Direct confirms that we have reached a settlement with Ms Gabriel-Abraham.

"The settlement is without any admission of any liability on the part of Sports Direct whatsoever.

"It was clear from the proceedings that we and Ms Gabriel-Abraham felt equally strongly about our respective positions and that each had different perceptions of the events that took place.

"The company will continue the process of reviewing, updating and improving our core employment documents and procedures across our entire business beyond its existing compliant framework."

The Government is considering a ban on exclusivity clauses in zero-hours contracts, which has been called for by unions.

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Twitter Grows Users But Shares Slip 10%

Twitter's latest results showed progress in efforts to broaden its appeal and revenues but investors were not impressed.

The social network's stock slipped more than 10% in after-hours trading on worries fourth quarter sales may miss targets.

The San Francisco-based company has focused on trying to increase its user base amid concerns it doesn't hold mass appeal in the way that the much-larger Facebook does.

Its user base grew 23% to 284 million monthly active users - a performance seen as progress by analysts - but Twitter still posted a deepening loss of $175m (£109m) in its third quarter.

That compares with a loss of $64.6m (£40m) a year earlier when it was still a private company.

Revenue more than doubled to $361m (£224m).

The focus for investors was its revenue forecasts.

The company said it expected fourth-quarter sales to be in a range of $440m-$450m.

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BP Profits Fall 25% As Oil Prices Tumble

BP has confirmed a 25% fall in quarterly profits amid falling world oil prices.

The company said replacement cost profit in its third quarter fell to $2.38bn (£1.48bn) - also a consequence of lower earnings from its investment in Russia's Rosneft.

Despite the performance, BP gave pension funds a boost by increasing its quarterly dividend by 5%.

Oil companies have seen billions wiped off their stock market values in recent weeks after Brent Crude prices dropped 25% over the past four months due to slowing global demand, particularly in China, and ample supplies.

BP remains mired in legal wrangling over the Gulf of Mexico spill in 2010

Goldman Sachs recently forecast that the price of Brent Crude - currently at $85-a-barrel - would fall to $80 next year.

London-listed BP owns a 19.75% stake in Rosneft but income from the holding slumped 86% against a year earlier to $110m (£68.2m) as sanctions against Russia over the crisis in Ukraine have weakened the rouble.

BP also confirmed it had now exhausted the $20bn (£12.4bn) fund it had set up to pay claims arising from the Gulf of Mexico oil disaster in 2010, which left 11 workers dead and sparked the worst oil spill in US history.

BP said subsequent costs would be charged to its income statement but the overall provision to cover claims and fines remained at $43bn (£26.7bn).

Chief executive Bob Dudley said of the financial statement: "BP's operational momentum continues to deliver results.

"Growing underlying production of oil and gas and a good downstream performance generated strong cash flow in the third quarter, despite lower oil prices.

"This keeps us well on track to hit our targets for 2014.

Its share price rose 1% in early trading on the FTSE 100.

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Energy Crunch: Don't Expect Return To 1970s

Are you ready for winter?

This question is at the heart of today's National Grid Winter Outlook report.

The weather is predicted to reach around 20 degrees in some parts of the UK on the final day of October this year so it's no wonder consumers aren't planning how to manage their energy use for the winter ahead.

But while customer use or demand is an important part of the equation – power supply is the key – and that's where the UK's plan falls apart.

In the past year, several power plants have experienced unexpected shutdowns due to fire, breakdowns and accidents.

Video: Why The Winter Lights Could Go Out

At the same time, the building of new plants has been terribly slow and faced numerable delays.

Which is why today National Grid is warning that our electricity supply margin has narrowed from last year, to the lowest level since 2007.

Which means, technically, the risk of blackouts, and brownout (where power use is limited, but not cut off completely) is increasing.

But asking three, more detailed questions, reveals that there isn't call for panic just yet and the prospect of a return to rolling blackouts last seen in the mid-1970s.

:: What is the likelihood of blackouts actually occurring?

The National Grid says that in the event of the UK experiencing the coldest snap in 20 years,  then electricity supplies would not meet demand for up to two weeks in January.

But there is only a 5% chance of this cold snap even happening. And not meeting demand, is not the same thing as a blackout. Which brings us to the next question.

:: How would it work?

Consumers and businesses would be encouraged to iron-out their electricity consumption across the full day, rather than all pile in at peak times.

This would reduce the likelihood of a total collapse at any one point in the day though whether families want to get up to put the dryer on at 3am is a question not addressed in National Grid's report.

Energy intensive business may be able to reorganise themselves to do this more easily, which leads nicely to – the final question.

:: Are emergency measures put in place by National Grid sufficient?

National Grid had started a programme to PAY some businesses to reduce their energy consumption, and time it more evenly with periods when consumer demand is not lower.

In addition, they are un-mothballing some plants previously marked for closure, to have them on standby should that mythical cold snap happen.

The Grid says these plans will lift the electricity margin back up to 6.1% from the 4.1% it is warning is the level at present.

And though it's not a pleasant thought, consumers must remember that behind all the statistics and warnings there is electricity to be had, no matter how cold the weather gets.

It will just cost more.

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Charity Warning Over Rise In UK Child Poverty

By Afua Hirsch, Social Affairs Editor

Child poverty in the UK increased significantly during the recession, according to a new report which criticises wealthy countries for failing to protect the most vulnerable from the effects of the economic downturn.

Data collected by UN organisation Unicef ranks the UK 25th out of 41 countries in taking measures to cushion the impact of the economy on children and families.

Chile, Poland and Slovakia all outperformed the UK, experiencing a reduction in child poverty.

"Here in the UK we have seen rates of severe material deprivation for children get worse," said David Bull, executive director of Unicef UK.

"There are only six countries in the 41 country study that have seen that material deprivation worsening at a greater rate than the UK."

For one single mother, the effect of the recession squeezing the family budget is a daily reality.

"The quality of our food intake has definitely gone down because of the financial struggles," said Alicia Gomes, 23, who lives on a council estate in south London with her three-year-old daughter Destiny.

"I think the Government should give more help to lone parents. We do eat normal cooked meals, but it's easier to live off frozen food because we get more offers."

"What I find quite upsetting is that we struggle so much and then there's people out there getting free meals in prison and clean bedding, and we are struggling so much to do that ourselves.

"The people doing wrong seem to get more support than the people doing the right things in life."

Ms Gomes says most of her income is taken up by food shopping, council tax, and pay as you go electricity which is often on the emergency setting.

Sally Plumb, Strategic Partnership Manager for two children's centres in the London borough of Lambeth, said some families were in an extreme situation.

"I do think that we should be shocked about the levels of poverty in the western world. It is almost like a third world country around here. A lot of children around here don't have beds, they are not eating properly," she said.

But the Government disputed the Unicef findings.

The Department for Work and Pensions said: "Unicef is drawing distorted comparisons with this data.

"UK official national statistics show that under this Government, around 300,000 fewer children are in poverty or growing up in workless families. Our reforms are improving the lives of some of the poorest families by promoting work and helping people to lift themselves out of poverty."

Unicef said that although its figures were not the most recent available, they provided a comparative context on the UK's performance up to 2013.

"Our report shows that particularly in the UK child poverty has worsened. It also shows that isn't inevitable," said Mr Bull.

"Other countries like Austria have had bonus payments and tax payments that have been very progressive in terms of impact they have had on poorest children."

"There's a lot that we should do to make the right choices."

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Cadbury Faces Chocolate Coin Twitter Storm

Cadbury has faced a storm of protest since confirming it had stopped producing chocolate coins - a traditional Christmas stocking filler.

The company blamed shoppers switching to cheaper "own label" alternatives for pushing down its sales.

Cadbury, which is the biggest chocolate maker in the UK for Christmas sales, said the coins were worth less than £1m to the business so it needed to concentrate on more successful items.

The news was broken on Monday night when Cadbury answered a Daily Telegraph journalist's question about the treats, which were wrapped in metal foil and packaged in netting.

Cadbury wants to concentrate on its best-sellers

It replied on Twitter: "@hwallop Chocolate coins have been discontinued however we have lots of other chocolatey treats to try."

A backlash followed with the majority of respondents calling for a re-think, some describing the decision as "madness" while others even suggested the company had cancelled Christmas.

One user, Mark Cobley, posted: "NOOOOOOOOOOOO This is a horrendous decision and @CadburyUK must reconsider."

Cadbury, which was bought by Kraft in 2010, said the foil aspect of the product was "fiddly" and, because they have to appear like real coins, it was unable to give them the Cadbury 'purple' branding.

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Lloyds Cuts 9,000 Jobs And 200 Branches

Lloyds Banking Group has confirmed 9,000 job losses and 200 branch closures as it moves to bolster its digital banking offering through a £1bn investment over three years.

The bank - 25%-owned by the taxpayer - said the job and branch cuts would take place as consumers' habits continued to shift towards online banking services.

Lloyds said it would be investing in remote advice services for customers, who would be increasingly expected to use online banking or self-service facilities within branches instead of dealing with staff face to face.

More than 10 million Lloyds Banking Group customers currently bank online while five million use its mobile banking services.

The news was contained in its latest results which showed a nine-month profit before tax of £1.61bn - 5% down on the same period last year.

Antonio Horta-Osorio wants to make Lloyds more efficient

Lloyds said the figure included an extra £900m provision for the costs associated with the payment protection insurance mis-selling scandal.

Sky News reported on Monday night that Lloyds and other major banks were all planning to put aside extra funds, giving them a combined provision of more than £22bn.

Video: How Do You Use Your Bank?

Lloyds accounts for half the total.

Underlying profits for the business, which includes Halifax and Bank of Scotland, rose 41% to £2.2bn in the third quarter.

Sources at the bank told Sky News it had already shed 45,000 jobs since its bailout at the height of the banking crisis.

Video: The Cost Of Banking To The Banks

The latest cuts represent around 10% of its current workforce of 88,000 and form part of its plans to "digitise" the bank.

Earlier this year, the British Bankers' Association published research showing that UK-based customers conducted almost 40 million mobile and internet banking transactions each week in 2013, a huge increase on the previous year.

The branch closures will mainly affect urban areas where there are already high concentrations of Lloyds branches.

Video: 1964: Banking For the Ladies

Chief executive Antonio Horta-Osorio said: "Over the last three years the successful delivery of our strategy has ensured that we have become a safe, highly efficient, UK-focused retail and commercial bank.

"The next phase of our strategy will use these strong foundations as a basis for meeting the rapidly-changing needs of our customers, and sets out how we will grow the business in a way that will deliver increasing and sustainable returns for our shareholders."

Shares have been under pressure since the results of a European stress test to see how lenders would cope in maintaining the buffer of capital they hold in the event of a financial crisis.

Video: Banks To Use Twitter Cash Transfers

Lloyds passed the test but performed the least well among UK banks, adding to fears that it may struggle when details of a further exercise by the Bank of England are published in December.

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Ryanair Faces £6.5m French Labour Law Penalty

Ryanair is facing a €8.3m (£6.5m) penalty after losing an appeal against a decision that it broke French labour laws.

The no-frills carrier was found guilty of paying workers under Irish contracts to save money on payroll and other taxes.

The bulk of the penalty is made up of fines while €200,000 was for damages, the court ruled.

The appeal ruling was issued a year after the original decision went against Ryanair.

At that time, the company said the majority of the financial penalties related to alleged non-payment of social insurance and state pension contributions in France for Ryanair crews.

The case centred around a facility operated by the company at Marignane, near the southern French cities of Marseille and Aix-en-Provence.

The company, run by its colourful chief executive Michael O'Leary, based four planes and 127 employees at the site without applying French labour law or filling out tax declarations in the country, it was said.

Ryanair argued that it did not have a permanent base in the area and that it was entitled to keep its workforce on Irish contracts, but prosecutors said its claim was not credible because the workers were living locally and the airline had offices there.

Ryanair's Robin Kiely said: "Ryanair will appeal this ruling to the French Supreme Court on the basis that European employment law clearly allows mobile workers on Irish registered aircraft to pay their taxes and social taxes in Ireland.

"We will also be seeking a referral to the European Court of Justice to prevent these attempts by the French authorities to claim social taxes that have already been paid in full to Ireland."

Social charges in France are at around 40-45%, compared to 10.75% in Ireland.

The airline will have to pay damages to trade unions, France's social security system and pilots among others, it was reported.

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Energy Crunch: Plan To Keep The Lights On

National Grid has warned the UK may be forced to resort to emergency measures to keep the lights on if bad weather strikes this winter, with households picking up the bill.

Its annual Winter Outlook report looking at the capacity margin - the gap between total electricity generating capacity and peak demand - was compiled as the country misses output from five key power stations following fires or safety checks.

The network operator put the figure at just 4.1% - its narrowest since 2006/7 - and said that margin of spare capacity could fall further to just 2.8% if weather conditions took a turn for the worse.

Such a scenario would mean the grid failing to meet its "basic reserve requirement" of spare capacity needed to run the system, forcing it to adopt contingencies such as paying factories to shut down and supplying reserves from mothballed power stations.

Power station fires have hit electricity output

National Grid said it was finalising contracts with three sites, Littlebrook in Kent, Rye House in Hertfordshire and Peterhead in Aberdeenshire, to provide reserve capacity that would widen the margin by 2%.

Having to use these power stations would add £1 to the average family bill, the operator confirmed, as it would cost £25m.

1/5

1. Gallery: Blackout Britain: 1970s Power Cuts

   Paul Caldecott, six, was forced to stay at school because his parents couldn't pick him up

2. Four women work in a Slumberdown office in Bond Street, London, during a miners' strike in 1973

3. A woman breastfeeding her baby during a blackout at St Andrews Hospital, Dollis Hill, northwest London

4. Working for Slumberdown had its advantages, as these women could wrap themselves in quilts to keep warm during a blackout

5. Customers and staff at an HMV shop in Oxford Street, London, during a power cut in December 1973

The prospect of an electricity crunch has risen since the summer, when a key measure of risk, called Loss of Load Expectation (Lole) was forecast at 0.5 hours for the coming winter.

Since then the Lole risk measure has risen to 1.6 hours, factoring in the fires that have caused the permanent shutdown of Ironbridge in Shropshire and the temporary closure of Ferrybridge in West Yorkshire.

A power station in Barking will also close, while a planned return to service for four EDF nuclear reactors at Heysham in Morecambe, Lancashire, and at Hartlepool, will see them return at only 75% capacity.

A fire earlier this month put half of operations out of action at Didcot B power station in Oxfordshire - which has capacity to supply a million homes.

The part of the site affected by the blaze is expected to return to around 50% service this week.

The Grid report said gas supplies were well ahead of expected peak demand but warned of the uncertain impact of tensions over Ukraine, which could strangle availability from the continent.

Video: Warning Expected Over Blackout Risk

The report warned that in the "extreme scenario" of cold winter conditions and Russia cutting off supplies, the UK may have to arrange factory shutdowns as well and rely on expensive imports from markets further afield such as Asia and South America.

Cordi O'Hara, director of market operation, said: "The electricity margin has decreased compared to recent years, but the outlook remains manageable and well within the reliability standard set by Government.

"As system operator, we have taken the sensible precaution to secure additional tools to bolster our response to tighter margins."

Energy Minister Matt Hancock said lights would stay on across the country.

He told BBC Radio 4: "There will be secure energy supplies this winter. There will be no power cuts to householders."

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