Hector Sants: Ex-FSA Chief Awarded Knighthood

The man tasked with regulating the City in the run-up to the near-collapse of the UK banking system has been knighted in the Queen's New Year Honours.

Former Financial Services Authority (FSA) chief executive Hector Sants has been recognised for services to financial regulation after overseeing sweeping reforms following the nationalisation of Northern Rock and the bailout of major banks.

The knighthood may be 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.

While he was criticised for the FSA's failure to spot and prevent the credit crunch and subsequent banking meltdown, he has since won praise for cleaning up the regulator and for his role in forcing banks to beef up their balance sheets.

Sir Hector said the award was a "testament to the hard work of everyone at the FSA during the crisis, their willingness to learn lessons and to bring about the changes that were necessary".

The 56-year-old had planned to leave his role in February 2010, but was convinced by Chancellor George Osborne to stay on to see through the coalition's break-up of the FSA.

It was thought he would become a deputy governor of the Bank of England and head the Prudential Regulation Authority (PRA) - one of two new regulatory bodies that will replace the FSA as part of an overhaul in the wake of the financial crisis.

But Sir Hector unexpectedly resigned earlier this year and has courted more controversy, joining scandal-hit Barclays, where he will become the bank's first point of contact for regulators.

He is believed to be in line for a £3m pay package.

The FSA received a mauling from MPs in the wake of the banking crisis and collapse of Northern Rock.

Northern Rock had to be nationalised in 2008, with the Government also having to bail out Royal Bank of Scotland, Lloyds TSB and HBOS.

In the aftermath of the crisis, Sir Hector warned the City to "be frightened" as he pledged an era of more intrusive and direct regulation.

He also laid the blame at the door of the US and UK governments for their part in the crisis, saying authorities worldwide sought to "encourage a significant credit boom particularly for the benefit of consumers who wished to purchase housing".

Sir Hector joined the FSA wholesale markets arm from Credit Suisse in 2004. He became chief executive in 2007 - just two months before the run on Northern Rock.

It had been widely expected that Sir Hector would return to the private sector when he resigned from the FSA.

Barclays, which has had its reputation battered following this summer's rate-rigging revelations, has appointed Sir Hector to the newly-created role of head of compliance. He is due to start on January 21.

It is believed he will also play a central role in rewriting the bank's pay and bonus strategy.

Sir Hector is married with three children.

00.11 | 0 komentar | Read More

French Court Rejects 75% Tax Rate For Rich

French president Francois Hollande has suffered a fresh setback as the country's highest court threw out his plan to tax the ultra-wealthy at a 75% rate, saying it was unfair.

It had been one of the flagship campaign promises of Mr Hollande's election and the government has vowed to resubmit the measure.

But France's Constitutional Council ruled that the way the highly contentious tax was designed was unconstitutional.

The largely symbolic measure would have only affected a few thousand people who earned over €1m (£818,000) and brought in an estimated €100m to €300m (£82m to £245m).

But it has infuriated high earners in France, prompting some such as actor Gerard Depardieu to flee abroad, and has led to accusations that Mr Hollande is 'anti-business'.

Finance minister Pierre Moscovici said the rejection of the 75% tax and other minor measures could cut up to €500m in forecast tax revenues but would not hurt efforts to slash the public deficit to below a European Union ceiling of 3% of economic output next year.

"The rejected measures represent €300m to €500m. Our deficit-cutting path will not be affected," Mr Moscovici told BFM television.

Socialist President Hollande has his sights set on the super rich

Prime Minister Jean-Marc Ayrault said in a statement that the government would resubmit the measure to take the court's concerns into account.

The court's ruling took issue not with the size of the tax, but with the way it discriminated between households depending on how incomes were distributed among its members.

A household with two earners each making just under €1m would be exempt from the tax, while one with one earner making €1.2m would have to pay.

The French government approved the tax in its most recent budget, amid criticism by some that it would do little to stem the country's mounting fiscal problems and would drive away the wealthiest citizens.

In recent weeks, Gerard Depardieu - France's most famous actor - announced his intention to turn in his French passport and move to a village in a tax-friendly Belgium.

00.11 | 0 komentar | Read More

Norovirus Cruise: 'Outbreaks' On Two Ships

More than 400 passengers and crew have been sick with vomiting and diarrhoea as suspected norovirus hits two cruise ships sailing in the Caribbean.

Both luxury liners, the Queen Mary 2 and the Emerald Princess, reported the outbreak to the Centres for Disease Control, following guidelines that come into play when more than 2% of the passengers and crew are laid low.

The US public health agency said it was still conducting lab tests to determine the pathogen, but it said norovirus was suspected.

On Cunard's Queen Mary 2, which left New York on December 22 for a 10-day cruise, 194 passengers and 11 crew members of the more than 3,800 people were reported ill, the CDC said.

And on the Emerald Princess, owned by Princess Cruises, which returned to Fort Lauderdale on December 27, 189 passengers and 31 crew members of the more than 4,400 people on board fell sick, the CDC said.

The CDC said both liners had taken steps to stem the outbreak, including cleaning and disinfecting more often, as well as keeping passengers informed.

Passengers were told to avoid the buffet

But Sue Hayes, from Arkansas, said she was on the Emerald Princess and her husband fell ill. She has been critical of how the crew members handled the crisis.

"It started just a couple of days into the cruise and has affected so many that the staff can't keep up with what they have to do for those who are sick," she said on Facebook.

"I have to phone to get the room cleaned because there aren't enough staff to even get clean towels and the room stewards are not allowed to come into the room.

"I have gone and got food for him because it may be a long time to get it delivered, like two hours after scheduled."

Some people who said they were on the Queen Mary 2 said on Cruise Critic that they were advised to avoid the buffet because of the sickness and that infected passengers were being kept in their rooms.

"I have never felt as sorry for the staff as I do now. They are working round the clock battling this situation," Andiamo said on the blog.

"It is serious, but in my opinion it is being handled very well.

"The festivities continue and those of us who have avoided this virus continue to enjoy the many offerings we come to expect and appreciate.

"For those passengers who have been exposed, they are confined to their cabins until declared safe to come out."

Sky News contacted both Cunard and Princess Cruises for comment but both companies said no one was available to comment.

Similar outbreaks hit two P&O luxury liners - the Azura and the Oriana - earlier this month.

More than 200 people fell ill on the Emerald Princess

The cruise ship infections come as norovirus is thought to be behind the deaths of four people in a hospital in Japan.

The patients, aged between 80 and 97, died of breathing problems and pneumonia last week after suffering vomiting and diarrhoea, said officials at Denentoshi Hospital in Yokohama.

Almost 100 other people have been infected at the hospital since Tuesday.

Norovirus has been sweeping the UK and has led to the closure of dozens of hospital wards.

The Health Protection Agency said there could have been more than a million cases in the UK this season.

The number of cases has risen earlier than expected this year, following an as-yet unexplained trend seen across Europe and other parts of the world.

Norovirus symptoms include sudden vomiting, diarrhoea, or both, a temperature, headache and stomach cramps. The bug usually goes away within a few days but can be contagious for a couple of days after vomiting has ended.

00.11 | 0 komentar | Read More

Think Tank Warns Of Sluggish 'Groundhog' 2013

A think tank has warned that 2013 could turn out to be a "groundhog year" with a repeat of sluggish growth and crisis in Europe seen in 2012.

The Institute for Public Policy Research (IPPR) said that consumer and business spirits have been so thoroughly dampened by talk of years of austerity ahead that the economy mail fail to grown again this year.

In a gloomy New Year message, IPPR chief economist Tony Dolphin said the Government "still does not have a path back to growth" and appeared to be pinning hopes on "something just turning up".

The Office for Budget Responsibility's forecast of 1.2% GDP growth in 2013 and 2% in 2014 depend on a "very unlikely" readiness for hard-pressed households to drop the habits of the last four years and take on additional debt, he added.

The IPPR is calling on the Government to boost demand in the economy, pump more investment into infrastructure, establish a British Investment Bank and guarantee a minimum wage job in charity or local government for anyone unemployed for more than a year.

Mr Dolphin said: "Policy-makers appear to have little idea how to boost growth in the economy and are left hoping that the news will get better.

"The risk is that 2013 could be groundhog year for the UK economy.

"The latest forecasts suggest growth in 2013 will be weak, but better than in 2012, and that unemployment will rise.

"The risk is that they are too optimistic about growth, but that - unlike in 2012 - they are right about unemployment."

He added: "How this plays out politically will depend to some extent on what happens to unemployment.

"In 2012, the double-dip recession did less damage to the credibility of Government economic policy than it might have done because employment increased and unemployment fell by more than expected.

"The best way to describe the outlook for the UK economy is 'uncertain'."

00.11 | 0 komentar | Read More

Digital Entertainment Sales Smash £1bn Barrier

Digital sales of music, video and games in 2012 exceeded £1bn for the first time, according to official year-end sales figures.

The Entertainment Retailers Association (ERA) said a final year-end tally of £1.033bn was reached, giving a digital sales boost of 11.4% year-on-year.

ERA director general Kim Bayley said: "Breaching the £1bn barrier is an incredible achievement for the UK's digital entertainment retailers.

"And reflects their huge investment in new and innovative services which means you can buy music, video and games literally at any time of the day and wherever you are."

Traditional disc sales of CDs, DVDs, Blu-ray and games still account for just over three quarters of the entertainment market, despite falling by 17.6% compared with 2011.

ERA represents entertainment retailers, specialists and independents, as well as supermarkets outlets along with internet and download retailers.

It combines data from three separate sources to collate the industry-wide figures.

The biggest digital sector by far remains games, mainly comprising massive multiplayer online games, social gaming and online console transactions.

Topping £552m, it was worth more than digital sales of music and video combined.

The video sector showed most growth at 20.3% but this reflects the relatively undeveloped nature of the market, according the ERA.

Music's digital growth of 15.1% also stood out as it is the most established of the three markets, with 16 albums selling more than 100,000 digital copies in 2012 and more than 3.7bn audio tracks streamed.

The Official Charts Company said Somebody That I Used To Know by Gotye (featuring Kimbra), Call Me Maybe by Carly Rae Jepsen and Titanium by David Guetta (featuring Sia) were the three most-streamed tracks in 2012.

Ms Bayley added: "At the same time I suspect that many people will be surprised to learn just how resilient the physical business still is - with three-quarters of entertainment sales still on disc.

"Downloads offer convenience and portability, but people still seem to value the quality and tangibility of a physical product."

The news of the £1bn digital barrier breakthrough comes amid a drop in total sales of 12% for physical and digital products compared to a year earlier.

Total sales in 2011 were £4.78bn but sagged to £4.21bn last year.

The ERA said combined game sales dropped 17.4% in 2012 and said a factor in the fall was poor release planning which affected retailers.

"The dearth of attractive releases during summer 2012 was clearly a significant factor," Ms Bayley said.

She added: "Suppliers need to do more to rebalance their release schedules and improve the quality of their releases.

"No retailer can afford to pay overheads on a store for 52 weeks of the year if all the key releases are going to be concentrated in the last quarter."

00.11 | 0 komentar | Read More

Benefits Rise 'Almost Double Salary Increase'

Welfare payouts for the jobless have risen almost twice as fast as average salaries over the last five years, according to official figures.

Out-of-work benefits have increased in value by 20% since 2007, compared to a rise of 12% in private sector pay.

Work and Pensions Secretary Iain Duncan Smith said the increases had cost the taxpayer £6.3bn since the start of the recession in 2008.

He claimed that the figures proved automatically increasing the handouts with the rate of inflation is unfair on working people.

Mr Duncan Smith said: "Working people across the country have been tightening their belts after years of pay restraint while at the same watching benefits increase. That is not fair.

"The welfare state under Labour effectively trapped thousands of families into dependency as it made no sense to give up the certainty of a benefit payment in order to go back to work.

"This government is restoring fairness to the system and Universal Credit will ensure it always pays to be in work."

The Government wants to reform the system and impose a 1% cap on most working-age benefits and tax credits for the next three years but Labour are against the move.

However, the Opposition has produced its own analysis claiming that Jobseeker's Allowance (JSA) had not risen in line with wages over the past decade.

Work and Pensions Secretary Iain Duncan Smith is driving through reforms

Labour's shadow work and pensions secretary Liam Byrne said longer-term figures showed JSA had risen by 32% since 2002/3 while average earnings rose 36% over that time.

"Iain Duncan Smith has given the green light to a £14bn cut to tax credits that's pushing millions of working families into poverty and now means thousands of part-time workers are better off on benefits," he said.

"Now he wants to hit working families again with his strivers tax bill. Yet this omnishambles government thinks its right to give an average £107,000 tax cut for 8,000 millionaires," he said.

"This Tory-led government is comprehensively out of touch with the reality of Britain's working families."

Under Chancellor George Osborne's plans, child benefit, housing benefit and Universal Credit will also be capped for two years from 2014/15.

Breaking the link with inflation is predicted to save the Government almost £2.4bn by the 2015 general election and a further £11.8bn in the three years after it.

But critics say it will hit low and middle-income families and increase homelessness and hunger.

The Government is also introducing a new Universal Credit system this year, which will replace most out-of-work handouts and is aimed at making it pay to work.

The scheme will unite tax and benefits in one system and prevent total handouts exceeding the average wage.

The Government claims around three million families - mostly from the bottom of the income scale - will be better off by around £168-a-month under the changes.

00.11 | 0 komentar | Read More

John Lewis Reveals Bumper Christmas Trading

John Lewis has announced double digit sales increases for trading at its stores over the festive period.

The partnership made £684.8m in the five weeks to December 29, up almost 15% on the same period in 2011.

John Lewis said electricals and home technology were up 30.9%, while fashion and beauty climbed 10%.

Meanwhile, its home furnishings section only increased by 6.2%.

The firm added that compared with two years ago, total sales were up 25.5% and like-for-like sales grew by 20.1%.

Sales at johnlewis.com broke through the £800m milestone, for the year, during December.

Online sales for the five weeks were up 44.3% on last year and the website now accounts for a quarter of the total firm's business.

Managing director Andy Street said: "I am delighted that John Lewis has delivered record breaking sales figures over the Christmas period and the first five days of clearance (sales).

"In an economic climate which continues to be volatile, to have achieved these results is testimony to the strength of the John Lewis brand and the commitment of all our partners to give outstanding service."

The results come as Boxing Day sales records were smashed after shoppers sent tills into meltdown across Britain's high streets.

Forecasters said more than £50m was estimated to have been taken in one day on London West End's famous shopping destinations of Bond Street, Regent Street and Oxford Street.

Mr Street added: "The success of our online operation and our pre-eminence as an omni-channel retailer cannot be underestimated.

"Above all, our success can be attributed to the inspiring and innovative products we offer our customers coupled with their trust that we will always provide the best quality and value and will always fulfil our "never knowingly undersold" promise."

00.11 | 0 komentar | Read More

US Fiscal Cliff: Markets Rally After Late Deal

Global markets have rallied in response to a deal in the United States to avert its so-called fiscal cliff.

The market boost came after US Democrats and Republicans finally agreed a deal that will stop hundreds of billions of dollars in automatic tax increases and spending cuts that risked plunging the world's biggest economy into recession.

Stocks around the world started 2013 with hefty gains as investors welcomed the vote in the House of Representatives.

London's FTSE 100 was up 2.2% at the close, after earlier busting through the 6,000-point mark for the first time since July 2011.

Key European markets were up between 2.19% to 3.81%, while in Asia Hong Kong's Hang Seng index shot up 2.9% at the close - its highest finish since June 1, 2011.

After the opening bell in Wall Street, the Dow Jones index rose around 200 points before easing off slightly in late morning trading.

The lights of the Capitol burned late into the night as the deal went on

"Investors are trading with a sense of relief after lawmakers in Washington agreed on a compromise to avoid the fiscal cliff that has been the dominant theme in equity markets since the presidential elections back in November," Mike McCudden, head of derivatives at stockbroker Interactive Investor, said.

The fiscal cliff deal is likely to remain the focus of attention in financial markets, as US institutions open for trading.

Mr Obama welcomed the agreement and said it was just one step in a broader effort to strengthen the economy.

He said: "Thanks to the votes of Republicans and Democrats in Congress I will sign a law that raises taxes on the wealthiest 2% of Americans while preventing tax hikes that could have sent the economy back into recession."

Some House Republicans had wanted to amend the bill to incorporate more spending cuts but dropped the idea.

Mr Obama headed to Hawaii for a break after the deal was brokered

In the end, 172 Democrats and 85 Republicans voted in favour of the bill, which marks a triumph for the president less than two months after he secured re-election while campaigning for higher taxes on the wealthy.

The legislation cleared the Senate hours after Vice President Joe Biden and Senate Republican Leader Mitch McConnell, veteran negotiators, sealed the deal.

The fiscal cliff deadline would have triggered tax increases of $536bn (£328bn) and spending cuts of $109bn (£67bn) from domestic and military programmes.

The compromise Senate deal extends the tax cuts for Americans earning under $400,000 (£246,000) - up from the $250,000 (£153,000) level that Democrats had originally sought.

But longer-term fiscal problems remain and Mr Obama will likely face more battles with the Republican-dominated House of Representatives.

"Cynics will point out that another argument has been booked in for two months' time, when the debt ceiling comes up for debate, IG market analyst Chris Beauchamp said.

"And Republicans will be looking to make progress on the spending cuts that haven't featured in the New Year deal."

00.11 | 0 komentar | Read More

Report: Retail Bankruptcy Increased In 2012

The number of retail firms filing for bankruptcy continues to grow, according to new research.

Business advisory firm Deloitte said the number of retailers falling into administration in 2012 increased by 6%, compared with 2011.

It said 194 retailers entered administration last year, compared with 183 in 2011 - up 18% from the 165 bankruptcies in 2010.

Deloitte restructuring services partner Lee Manning said: "These figures are a stark reminder of the difficulties which continue to face the high street.

"Constrained household budgets and the structural challenges facing the sector mean it is certain that we will see further distress this year.

"Christmas trading appears to have been reasonable, though not spectacular and not enough to prevent insolvencies in the first quarter of 2013."

Deloitte said there had been a slight fall in the number of retail administrations during the last three months of 2012 compared to the fourth quarter of 2011, with bankruptcies down to 37 from 42.

Although administration proceedings across all sectors were down 9% in 2012 to 1,883, the retail sector was also noted for a number of high profile chains being hit.

"In 2012 alone we have seen Peacocks, La Senza, Blacks, Game, Clinton Cards, JJB Sports and Comet enter administration," Mr Manning said.

"Consumer confidence remains fragile and where we have seen some respite through lower inflation, this has not translated into increased spending with many consumers preferring to pay down existing debt or save."

The outlook continues to appear bleak for the retail sector, with the move to online shopping impacting heavily on future strategy.

"There will always be a need for physical retail space but at present too many retailers have too many stores and 2013 is likely to be marked by further closure programmes, both within and outside of formal insolvency processes.

"Similarly, as an increasing proportion of retail sales move to online and mobile, retailers need to consider how their stores support sales across all channels by offering flexible delivery or collection options, becoming a product showroom and developing brand engagement and loyalty."

00.11 | 0 komentar | Read More

Rail Fares: Anger As Commuters Face More Hikes

How Much Will Your Ticket Cost?

Updated: 2:14am UK, Wednesday 02 January 2013

This is a table of rail fare rises, comparing the price of a 12-month season ticket bought in December with one bought from January 2.

The table does not include the price paid if within-London travelcards are also purchased for Tube and bus journeys in the capital.

Where London is mentioned, this means travel to London terminal stations where travel is allowed by any route option shown by the National Rail Enquiry system, Journey Planner, where the journey can be made using only one ticket.

ROUTE                          DEC 2012  JAN 2013  % RISE

Leeds-Wakefield              £908      £964            6.16%

Bishop's Stortford-London  £3,560    £3,704     4.04%

Portsmouth Harbour-London  £4,480    £4,668  4.19%

Basingstoke-London         £3,800    £3,960       4.21%

Ramsgate-London            £4,640    £4,864     4.82%

Woking-London              £2,780    £2,896        4.17%

Folkestone-London          £4,612    £4,836      4.85%

Reading-London             £3,800    £3,960       4.21%

Sevenoaks-London           £2,980    £3,112    4.43%

Aylesbury-London           £3,520    £3,632      3.18%

Bedford-London             £4,004    £4,172      4.19%

Hastings-London            £4,400    £4,584     4.18%

Canterbury-London          £4,588    £4,812    4.80%

Deal-London                £4,640    £4,864    4.82%

Dover Priory-London        £4,640    £4,864    4.82%

Ludlow-Hereford            £1,892    £1,992    5.28%

Bangor-Llandudno           £1,084    £1,140    5.16%

Morpeth-Newcastle            £960    £1,008    5%

West Malling-London        £3,712    £3,876    4.42%

Guildford-London           £3,092    £3,224    4.27%

Bracknell-London           £3,800    £3,960    4.21%

Braintree-London           £3,960    £4,124    4.14%

Tunbridge Wells-London     £3,968    £4,132    4.13%

00.11 | 0 komentar | Read More