http://www.in-business.org.uk/forum/ Fri, 12 Mar 2010 17:54:11 +0000 MyBB http://www.in-business.org.uk/forum/showthread.php?tid=466 Fri, 12 Mar 2010 11:46:16 +0000 http://www.in-business.org.uk/forum/showthread.php?tid=466 China's demand for oil jumped by an "astonishing" 28% in January compared with the same month a year earlier, the International Energy Agency (IEA) says.

The body added that demand for oil in 2010 would be underpinned by rising demand from emerging markets, with half of all growth coming from Asia.

But the IEA predicted demand in developed countries would fall by 0.3%.

The IEA has increased its global oil demand forecast for 2010 by 1.8% to 86.6 million barrels a day.

Oil prices are currently at their highest point for two months, with US light, sweet crude above $82 a barrel and Brent crude more than $80 a barrel.

Full article BBC Business News]]> China's demand for oil jumped by an "astonishing" 28% in January compared with the same month a year earlier, the International Energy Agency (IEA) says.

The body added that demand for oil in 2010 would be underpinned by rising demand from emerging markets, with half of all growth coming from Asia.

But the IEA predicted demand in developed countries would fall by 0.3%.

The IEA has increased its global oil demand forecast for 2010 by 1.8% to 86.6 million barrels a day.

Oil prices are currently at their highest point for two months, with US light, sweet crude above $82 a barrel and Brent crude more than $80 a barrel.

Full article BBC Business News]]> http://www.in-business.org.uk/forum/showthread.php?tid=465 Fri, 12 Mar 2010 11:42:59 +0000 http://www.in-business.org.uk/forum/showthread.php?tid=465 A report into the collapse of Lehman Brothers criticises senior executives and auditor Ernst & Young for serious lapses that led to the firm's collapse.

The report says Lehman was insolvent for weeks before it went bankrupt, sparking a global financial meltdown.

It accuses senior management of "actionable balance sheet manipulation" and using accounting gimmicks.

Ernst & Young said that its last audit of Lehman was "fairly presented" according to accounting rules.

Possible claims

The report said that there could be grounds for legal action against former executives.

However, the court-appointed examiner, Anton Valukas, chairman of law firm Jenner & Block, said that there had been no systematic wrong-doing.

And he pointed out that those responsible for the firm had used their business judgment and were largely not liable for the firm's collapse.

However, he said that Lehman, which is now being liquidated for the benefit of creditors, could have claims against its former chief executive Dick Fuld and chief financial officers Chris O'Meara, Erin Callan and Ian Lowitt for negligence or breach of fiduciary duty.

The examiner said there was also sufficient evidence to support a possible claim that the firm's auditor, Ernst & Young, had been "negligent" and that Lehman could pursue claims against the firm for "professional malpractice".

Full article BBC Business News]]> A report into the collapse of Lehman Brothers criticises senior executives and auditor Ernst & Young for serious lapses that led to the firm's collapse.

The report says Lehman was insolvent for weeks before it went bankrupt, sparking a global financial meltdown.

It accuses senior management of "actionable balance sheet manipulation" and using accounting gimmicks.

Ernst & Young said that its last audit of Lehman was "fairly presented" according to accounting rules.

Possible claims

The report said that there could be grounds for legal action against former executives.

However, the court-appointed examiner, Anton Valukas, chairman of law firm Jenner & Block, said that there had been no systematic wrong-doing.

And he pointed out that those responsible for the firm had used their business judgment and were largely not liable for the firm's collapse.

However, he said that Lehman, which is now being liquidated for the benefit of creditors, could have claims against its former chief executive Dick Fuld and chief financial officers Chris O'Meara, Erin Callan and Ian Lowitt for negligence or breach of fiduciary duty.

The examiner said there was also sufficient evidence to support a possible claim that the firm's auditor, Ernst & Young, had been "negligent" and that Lehman could pursue claims against the firm for "professional malpractice".

Full article BBC Business News]]> http://www.in-business.org.uk/forum/showthread.php?tid=464 Fri, 12 Mar 2010 11:35:21 +0000 http://www.in-business.org.uk/forum/showthread.php?tid=464 The union representing British Airways cabin crew has said its members will go on strike for three days from 20 March and for four days from 27 March.

The union confirmed it would not strike over Easter, but warned there could be further action after 14 April if a resolution had not been agreed.

The union will also ballot its members on a new offer from BA aimed at preventing strike action.

BA said it was "extremely disappointed" that Unite had announced strike action.

Crew members voted to strike last month over pay and working conditions.

'Minimise disruption'

Unite is not recommending BA's offer to its members. The ballot on the offer will take place straight away and if cabin crew vote to accept the airline's offer, the strike action will be called off.

The union said the action was "regrettable" but said that BA's rejection of its offer had made strike action "inevitable".

It said it was available to meet BA "anytime, anywhere" for further negotiations.

The airline said: "Unite's action has no shred of justification. Cabin crew face no pay cut or reduction in terms and conditions - and remain the best rewarded in the UK airline industry.

"We are very sorry for the stress and disruption Unite's decision will cause. We are currently considering our response to this strike threat and what action we will need to take to minimise disruption."

It added that all its flights are operating normally at the moment.

Back-up plans

BA has already made extensive contingency plans in case of strike action.

Speaking before the announcement, a spokesperson for the airline told the BBC that BA would do everything it could to operate as many flights as possible during any disruption.

It has already trained 1,000 staff to work as cabin crew to cover for any striking workers.

It is also looking to charter aircraft with its own crew - known in the industry as a wet hire - in order to operate as many flights as possible.

The spokesperson said flights from London City Airport would not be affected, while 70% of flights from Gatwick, including all long-haul flights, should be operational.

At BA's most important hub, Heathrow, he said the airline would be able to offer some long and short-haul services.

Full article BBC Business News]]> The union representing British Airways cabin crew has said its members will go on strike for three days from 20 March and for four days from 27 March.

The union confirmed it would not strike over Easter, but warned there could be further action after 14 April if a resolution had not been agreed.

The union will also ballot its members on a new offer from BA aimed at preventing strike action.

BA said it was "extremely disappointed" that Unite had announced strike action.

Crew members voted to strike last month over pay and working conditions.

'Minimise disruption'

Unite is not recommending BA's offer to its members. The ballot on the offer will take place straight away and if cabin crew vote to accept the airline's offer, the strike action will be called off.

The union said the action was "regrettable" but said that BA's rejection of its offer had made strike action "inevitable".

It said it was available to meet BA "anytime, anywhere" for further negotiations.

The airline said: "Unite's action has no shred of justification. Cabin crew face no pay cut or reduction in terms and conditions - and remain the best rewarded in the UK airline industry.

"We are very sorry for the stress and disruption Unite's decision will cause. We are currently considering our response to this strike threat and what action we will need to take to minimise disruption."

It added that all its flights are operating normally at the moment.

Back-up plans

BA has already made extensive contingency plans in case of strike action.

Speaking before the announcement, a spokesperson for the airline told the BBC that BA would do everything it could to operate as many flights as possible during any disruption.

It has already trained 1,000 staff to work as cabin crew to cover for any striking workers.

It is also looking to charter aircraft with its own crew - known in the industry as a wet hire - in order to operate as many flights as possible.

The spokesperson said flights from London City Airport would not be affected, while 70% of flights from Gatwick, including all long-haul flights, should be operational.

At BA's most important hub, Heathrow, he said the airline would be able to offer some long and short-haul services.

Full article BBC Business News]]> http://www.in-business.org.uk/forum/showthread.php?tid=463 Thu, 11 Mar 2010 21:38:44 +0000 http://www.in-business.org.uk/forum/showthread.php?tid=463 James Murdoch yesterday reiterated News Corporation’s tough attitude towards Google, repeating the threat made by his father to withdraw the company’s content from the search engine giant.

One day after Rupert Murdoch, chairman and chief executive of News Corp, called on states in the Middle East to open their markets to foreigners, his son told Abu Dhabi’s inaugural media conference that Google and Yahoo! continued to “sell bits of copyright material and make money off it”.

James Murdoch, the chief executive of News Corp in Europe and Asia, added: “You may have to withdraw access to those things. You may not.”

Last November Rupert Murdoch told Sky News that content from News Corp’s newspapers, which include The Times and The Sun, could be removed from Google’s search index when his plan to move them to a subscription model comes into effect.

“I think we will [remove our websites from Google’s search index] but that’s when we start charging,” he said.

Google maintains that Google News sends news organisations “about 100,000 clicks every minute”.

Full article Business Times Online Alexi Mostrous, Abu Dhabi]]> James Murdoch yesterday reiterated News Corporation’s tough attitude towards Google, repeating the threat made by his father to withdraw the company’s content from the search engine giant.

One day after Rupert Murdoch, chairman and chief executive of News Corp, called on states in the Middle East to open their markets to foreigners, his son told Abu Dhabi’s inaugural media conference that Google and Yahoo! continued to “sell bits of copyright material and make money off it”.

James Murdoch, the chief executive of News Corp in Europe and Asia, added: “You may have to withdraw access to those things. You may not.”

Last November Rupert Murdoch told Sky News that content from News Corp’s newspapers, which include The Times and The Sun, could be removed from Google’s search index when his plan to move them to a subscription model comes into effect.

“I think we will [remove our websites from Google’s search index] but that’s when we start charging,” he said.

Google maintains that Google News sends news organisations “about 100,000 clicks every minute”.

Full article Business Times Online Alexi Mostrous, Abu Dhabi]]> http://www.in-business.org.uk/forum/showthread.php?tid=462 Thu, 11 Mar 2010 21:30:26 +0000 http://www.in-business.org.uk/forum/showthread.php?tid=462 All John Lewis employees are to receive a bonus equivalent to eight weeks' pay after the group announced pre-tax annual earnings of £306.6m.

The figure represents a 9.7% rise in profits for the firm, which also owns Waitrose supermarkets.

After turning around a poor start to 2009, John Lewis' strong overall performance over the year ending January 30 means its 70,000 partners will now share a bonus pot of £151.3m.

First-half profit fell 19.6% but the group had a successful run-up to Christmas and has continued to trade strongly in 2010, outperforming rivals.

Chairman Charlie Mayfield said: "As the year progressed trading conditions improved as consumer confidence returned.

Full article Business Sky News Hazel Tyldesley, Sky News Online]]> All John Lewis employees are to receive a bonus equivalent to eight weeks' pay after the group announced pre-tax annual earnings of £306.6m.

The figure represents a 9.7% rise in profits for the firm, which also owns Waitrose supermarkets.

After turning around a poor start to 2009, John Lewis' strong overall performance over the year ending January 30 means its 70,000 partners will now share a bonus pot of £151.3m.

First-half profit fell 19.6% but the group had a successful run-up to Christmas and has continued to trade strongly in 2010, outperforming rivals.

Chairman Charlie Mayfield said: "As the year progressed trading conditions improved as consumer confidence returned.

Full article Business Sky News Hazel Tyldesley, Sky News Online]]> http://www.in-business.org.uk/forum/showthread.php?tid=461 Thu, 11 Mar 2010 21:27:55 +0000 http://www.in-business.org.uk/forum/showthread.php?tid=461 Oil giant BP has announced a deal that will allow it to begin exploring off the coast of Brazil.

It will pay US firm Devon Energy $7bn (£4.7bn) in cash for its Brazilian assets, as well as US deepwater sites in the Gulf of Mexico.

The deal includes 10 exploration "blocks" in Brazil, which has some of the world's largest deepwater oil fields.

BP is also selling Devon half its stake in some Canadian oil fields for $500m.

"Through our entry into Brazil, BP will add a major position in another attractive deepwater basin," said Andy Inglis, BP's head of exploration and production.

"It further underlines our global position as the leading deepwater international oil company."

Deepwater generally refers to oil fields in water 300 metres or deeper.

Oil companies around the world are exploring deeper and deeper areas around the world as technological developments make it possible to drill in areas previously considered too expensive.

The deal will give BP access to fields in Brazil's Campos and Camamu-Almada basins, in water depths from 100 metres to 2,780 metres.

The oil giant is also getting 240 leases in "ultra-deepwater" areas in the US Gulf of Mexico, and a small stake in a place in Azerbaijan.

As part of the deal, BP will sell Devon a 50% stake per cent stake in its Kirby oil sands in Alberta, Canada.

Full article BBC Business News]]> Oil giant BP has announced a deal that will allow it to begin exploring off the coast of Brazil.

It will pay US firm Devon Energy $7bn (£4.7bn) in cash for its Brazilian assets, as well as US deepwater sites in the Gulf of Mexico.

The deal includes 10 exploration "blocks" in Brazil, which has some of the world's largest deepwater oil fields.

BP is also selling Devon half its stake in some Canadian oil fields for $500m.

"Through our entry into Brazil, BP will add a major position in another attractive deepwater basin," said Andy Inglis, BP's head of exploration and production.

"It further underlines our global position as the leading deepwater international oil company."

Deepwater generally refers to oil fields in water 300 metres or deeper.

Oil companies around the world are exploring deeper and deeper areas around the world as technological developments make it possible to drill in areas previously considered too expensive.

The deal will give BP access to fields in Brazil's Campos and Camamu-Almada basins, in water depths from 100 metres to 2,780 metres.

The oil giant is also getting 240 leases in "ultra-deepwater" areas in the US Gulf of Mexico, and a small stake in a place in Azerbaijan.

As part of the deal, BP will sell Devon a 50% stake per cent stake in its Kirby oil sands in Alberta, Canada.

Full article BBC Business News]]> http://www.in-business.org.uk/forum/showthread.php?tid=460 Thu, 11 Mar 2010 21:25:59 +0000 http://www.in-business.org.uk/forum/showthread.php?tid=460 The global airline industry will recover strongly this year, as both passenger and freight numbers improve, the industry's trade body has said.

The International Air Transport Association said the sector would still make a loss, but predicted this would be half its estimate in December.

Iata now expects the world's airlines to make a combined loss of $2.8bn (£1.9bn) in 2010, rather than $5.6bn.

But it warned that European and US airlines were still suffering the most.

Full article BBC Business News]]> The global airline industry will recover strongly this year, as both passenger and freight numbers improve, the industry's trade body has said.

The International Air Transport Association said the sector would still make a loss, but predicted this would be half its estimate in December.

Iata now expects the world's airlines to make a combined loss of $2.8bn (£1.9bn) in 2010, rather than $5.6bn.

But it warned that European and US airlines were still suffering the most.

Full article BBC Business News]]> http://www.in-business.org.uk/forum/showthread.php?tid=459 Thu, 11 Mar 2010 21:24:34 +0000 http://www.in-business.org.uk/forum/showthread.php?tid=459 The US trade deficit fell unexpectedly in January, following a big drop in imports of oil and foreign cars.

The US Commerce Department said the trade gap was a seasonally adjusted $37.3bn (£24.9bn), 6.6% lower than the revised December figure of $39.9bn.

Imports dropped 1.7%, with crude oil imports at their weakest level since February 1999, at 245 million barrels.

The politically-sensitive trade gap with China widened to $18.3bn, up from $18.1bn in December.

US exports fell by 0.3% in January, with less machinery, agricultural products and civilian aircraft sold.

The trade gap's fall was a surprise. Economists had expected it to widen further after it increased by nearly 10% between November and December.

Full article BBC Business News]]> The US trade deficit fell unexpectedly in January, following a big drop in imports of oil and foreign cars.

The US Commerce Department said the trade gap was a seasonally adjusted $37.3bn (£24.9bn), 6.6% lower than the revised December figure of $39.9bn.

Imports dropped 1.7%, with crude oil imports at their weakest level since February 1999, at 245 million barrels.

The politically-sensitive trade gap with China widened to $18.3bn, up from $18.1bn in December.

US exports fell by 0.3% in January, with less machinery, agricultural products and civilian aircraft sold.

The trade gap's fall was a surprise. Economists had expected it to widen further after it increased by nearly 10% between November and December.

Full article BBC Business News]]> http://www.in-business.org.uk/forum/showthread.php?tid=458 Thu, 11 Mar 2010 21:20:29 +0000 http://www.in-business.org.uk/forum/showthread.php?tid=458 US President Barack Obama has urged China to change its currency strategy to help re-balance the global economy.

In a speech in Washington, Mr Obama said China should move to a "more market-based exchange rate" so that US exporters are not disadvantaged.

US manufacturers have complained that the yuan is being kept artificially low, making imports to China dearer.

Mr Obama's comments risk upsetting Beijing, which regards currency issues as an internal matter.

'Essential contribution'

"For too long, America served as the consumer engine for the entire world. But we are rebalancing. We're saving more. We all need to rebalance," Mr Obama said.

Currently, developing countries like China and India export more to developed economies like the US and Europe than they import.

In China's case, this trend is supported by the low value of the yuan, which makes Chinese exports cheaper while rendering foreign imports more expensive.

Freeing up the exchange rate would effectively raise the value of the yuan and benefit US exporters.

"Countries with external deficits need to save and export more. Countries with external surpluses need to boost consumption and domestic demand," Mr Obama added.

"As I've said before, China moving to a more market-oriented exchange rate would make an essential contribution to that global rebalancing effort."

Currency manipulator?

Big business in the US has told Mr Obama to get tougher with China on trade and currency issues.

In his speech, to the Import-Export Bank's annual conference, Mr Obama said that "at a time when millions of Americans are out of work, boosting our exports is a short-term imperative.

"When other markets are growing, and other nations are competing, we need to get even better. We need to secure our companies a level playing field," he said.

Full article BBC Business News]]> US President Barack Obama has urged China to change its currency strategy to help re-balance the global economy.

In a speech in Washington, Mr Obama said China should move to a "more market-based exchange rate" so that US exporters are not disadvantaged.

US manufacturers have complained that the yuan is being kept artificially low, making imports to China dearer.

Mr Obama's comments risk upsetting Beijing, which regards currency issues as an internal matter.

'Essential contribution'

"For too long, America served as the consumer engine for the entire world. But we are rebalancing. We're saving more. We all need to rebalance," Mr Obama said.

Currently, developing countries like China and India export more to developed economies like the US and Europe than they import.

In China's case, this trend is supported by the low value of the yuan, which makes Chinese exports cheaper while rendering foreign imports more expensive.

Freeing up the exchange rate would effectively raise the value of the yuan and benefit US exporters.

"Countries with external deficits need to save and export more. Countries with external surpluses need to boost consumption and domestic demand," Mr Obama added.

"As I've said before, China moving to a more market-oriented exchange rate would make an essential contribution to that global rebalancing effort."

Currency manipulator?

Big business in the US has told Mr Obama to get tougher with China on trade and currency issues.

In his speech, to the Import-Export Bank's annual conference, Mr Obama said that "at a time when millions of Americans are out of work, boosting our exports is a short-term imperative.

"When other markets are growing, and other nations are competing, we need to get even better. We need to secure our companies a level playing field," he said.

Full article BBC Business News]]> http://www.in-business.org.uk/forum/showthread.php?tid=457 Wed, 10 Mar 2010 19:52:30 +0000 http://www.in-business.org.uk/forum/showthread.php?tid=457 Fraudsters are continuing their switch from traditional card fraud to raiding online bank accounts, according to new research.

Fraud losses on UK credit and debit cards totalled £440m in 2009 - a drop of 28% compared with the previous year - the UK Cards Association said.

But the number of "phishing" attacks rose by 16% in the same period.

This is when fraudsters trick people into entering their personal details on a website or in an e-mail.

Fraud kits

The fall in card fraud is the first recorded for three years, with criminals now using a series of methods aimed at targeting online banking, which has risen in popularity.

The UK Cards Association said that criminals were hoping to avoid banks' own security controls by tricking people out of their personal details through scams, or by infecting home computers with software that gathers these details.

As a result, the total amount of online banking losses reached £59.7m in 2009, a 14% rise compared with the previous year.

Melanie Johnson, who chairs the UK Cards Association, said: "We are committed to a wide range of measures to ensure customers feel confident, safe and secure when they use their credit and debit cards - whether in a shop, abroad, online, at a cash machine or anywhere else."

Mel Morris, of the online security software firm Prevx, said online fraud was relatively easy to commit:

"It's possible to buy a kit online for a few thousand pounds and you can be in the business of trying to perpetrate online fraud," he said.

Payment tools

Overall losses from card fraud fell last year. Chip-and-pin was highlighted as the major factor behind an 11% fall in fraud on lost and stolen cards - now at its lowest for two decades.

Spear phishing: Targeted phishing of a small group of people, often using fake social networking websites to gather personal information
Counterfeit card fraud halved from a year earlier, although there were some big cases that pushed up losses in 2008.

Mail non-receipt - when cards and Pin details are intercepted in the post - fell by 32%.

There was also a 19% drop in the fraudulent use of cards to buy items over the phone, internet or by mail order - known in the industry as "card not present" fraud.

One factor in this drop has been the introduction of online payment tools, such as Mastercard Secure Code and Verified by Visa, which ask the card owner to type in a second Pin code at the point of purchase.

Fraud when UK cards were used abroad also fell, by 47% to £122.7m, and cheque fraud was cut as fewer people used that method of payment.

Mr Morris said the banking industry was seeing the benefit of a number of different measures.

"Merchants are trying to tighten up their site controls to stop credit cards being stolen en-masse," he said.

"Payment analysis processes are slowly making it harder to use a stolen card."

Vigilance needed

Any UK customer who loses money on their card without being negligent themselves is entitled to a refund of the money from their card supplier.

Full article BBC Business News]]> Fraudsters are continuing their switch from traditional card fraud to raiding online bank accounts, according to new research.

Fraud losses on UK credit and debit cards totalled £440m in 2009 - a drop of 28% compared with the previous year - the UK Cards Association said.

But the number of "phishing" attacks rose by 16% in the same period.

This is when fraudsters trick people into entering their personal details on a website or in an e-mail.

Fraud kits

The fall in card fraud is the first recorded for three years, with criminals now using a series of methods aimed at targeting online banking, which has risen in popularity.

The UK Cards Association said that criminals were hoping to avoid banks' own security controls by tricking people out of their personal details through scams, or by infecting home computers with software that gathers these details.

As a result, the total amount of online banking losses reached £59.7m in 2009, a 14% rise compared with the previous year.

Melanie Johnson, who chairs the UK Cards Association, said: "We are committed to a wide range of measures to ensure customers feel confident, safe and secure when they use their credit and debit cards - whether in a shop, abroad, online, at a cash machine or anywhere else."

Mel Morris, of the online security software firm Prevx, said online fraud was relatively easy to commit:

"It's possible to buy a kit online for a few thousand pounds and you can be in the business of trying to perpetrate online fraud," he said.

Payment tools

Overall losses from card fraud fell last year. Chip-and-pin was highlighted as the major factor behind an 11% fall in fraud on lost and stolen cards - now at its lowest for two decades.

Spear phishing: Targeted phishing of a small group of people, often using fake social networking websites to gather personal information
Counterfeit card fraud halved from a year earlier, although there were some big cases that pushed up losses in 2008.

Mail non-receipt - when cards and Pin details are intercepted in the post - fell by 32%.

There was also a 19% drop in the fraudulent use of cards to buy items over the phone, internet or by mail order - known in the industry as "card not present" fraud.

One factor in this drop has been the introduction of online payment tools, such as Mastercard Secure Code and Verified by Visa, which ask the card owner to type in a second Pin code at the point of purchase.

Fraud when UK cards were used abroad also fell, by 47% to £122.7m, and cheque fraud was cut as fewer people used that method of payment.

Mr Morris said the banking industry was seeing the benefit of a number of different measures.

"Merchants are trying to tighten up their site controls to stop credit cards being stolen en-masse," he said.

"Payment analysis processes are slowly making it harder to use a stolen card."

Vigilance needed

Any UK customer who loses money on their card without being negligent themselves is entitled to a refund of the money from their card supplier.

Full article BBC Business News]]> http://www.in-business.org.uk/forum/showthread.php?tid=456 Wed, 10 Mar 2010 19:47:46 +0000 http://www.in-business.org.uk/forum/showthread.php?tid=456 Industrial production in the UK fell unexpectedly in January, as the cold weather dented firms' output, official data has shown.

Output fell by 0.4% compared with December, the Office for National Statistics (ONS) said. Analysts had expected a rise of 0.3%.

Strong December figures and the icy weather were to blame for the biggest monthly drop since August.

Manufacturing output, fell 0.9%, adding to fears for the recovery.

However, year-on-year, manufacturing output recorded its first rise since March 2008, up 0.2%.

While most manufacturing industries saw declines, there were small rises in output from the machinery and equipment and food, drink and tobacco industries.

The ONS said that as well as the harsh weather being a factor, some firms had reported they had rushed to complete orders in December before January's rise in value added tax.

It added that industrial output in the three months to January climbed 1% compared with the previous three months. Many argue this gives a truer picture of economic conditions.

This figure represents the largest growth for the sector since March 2006.

'Rogue number'

The manufacturing group, the EEF, said that the output figures were "surprising given the raft of other survey data since the beginning of the year which has been more upbeat".

Full article BBC Business News]]> Industrial production in the UK fell unexpectedly in January, as the cold weather dented firms' output, official data has shown.

Output fell by 0.4% compared with December, the Office for National Statistics (ONS) said. Analysts had expected a rise of 0.3%.

Strong December figures and the icy weather were to blame for the biggest monthly drop since August.

Manufacturing output, fell 0.9%, adding to fears for the recovery.

However, year-on-year, manufacturing output recorded its first rise since March 2008, up 0.2%.

While most manufacturing industries saw declines, there were small rises in output from the machinery and equipment and food, drink and tobacco industries.

The ONS said that as well as the harsh weather being a factor, some firms had reported they had rushed to complete orders in December before January's rise in value added tax.

It added that industrial output in the three months to January climbed 1% compared with the previous three months. Many argue this gives a truer picture of economic conditions.

This figure represents the largest growth for the sector since March 2006.

'Rogue number'

The manufacturing group, the EEF, said that the output figures were "surprising given the raft of other survey data since the beginning of the year which has been more upbeat".

Full article BBC Business News]]> http://www.in-business.org.uk/forum/showthread.php?tid=455 Wed, 10 Mar 2010 19:45:11 +0000 http://www.in-business.org.uk/forum/showthread.php?tid=455 Further stress-testing of UK banks will take place to ensure they can survive a 'double-dip' recession, the Financial Services Authority (FSA) has said.

The regulator said new tests would assess banks' ability to survive another 2.3% fall in GDP between now and the end of 2011.

Further falls in property prices and 13% unemployment would also be assumed.

But the FSA added that stress test scenarios were intended to be much worse than was realistically expected.

Stress-testing was introduced following the financial crisis to ensure that banks were holding enough capital to allow them to continue operating through tough economic conditions.

Tests carried out in 2009 ensured that UK banks could withstand a peak-to-trough fall in GDP of 6.9%, a rise in unemployment to peak at 12.5%, and a total fall in residential property prices of 50%.

Now the FSA says changes in the state of the economy mean banks need to guard against a total fall in GDP of 8.1%, leading to total unemployment of 13.3%.

Full article BBC business News]]> Further stress-testing of UK banks will take place to ensure they can survive a 'double-dip' recession, the Financial Services Authority (FSA) has said.

The regulator said new tests would assess banks' ability to survive another 2.3% fall in GDP between now and the end of 2011.

Further falls in property prices and 13% unemployment would also be assumed.

But the FSA added that stress test scenarios were intended to be much worse than was realistically expected.

Stress-testing was introduced following the financial crisis to ensure that banks were holding enough capital to allow them to continue operating through tough economic conditions.

Tests carried out in 2009 ensured that UK banks could withstand a peak-to-trough fall in GDP of 6.9%, a rise in unemployment to peak at 12.5%, and a total fall in residential property prices of 50%.

Now the FSA says changes in the state of the economy mean banks need to guard against a total fall in GDP of 8.1%, leading to total unemployment of 13.3%.

Full article BBC business News]]> http://www.in-business.org.uk/forum/showthread.php?tid=454 Wed, 10 Mar 2010 00:14:18 +0000 http://www.in-business.org.uk/forum/showthread.php?tid=454 At first, bad economic times meant relatively good news for fast food chains such as McDonald's (MCD) and Burger King (BKC), while cash-poor consumers traded down from more expensive dining fare. Now, as the U.S. unemployment rate remains uncomfortably high, chains are struggling to keep Americans eating out at all.

"We have a price war going on," says Morningstar (MORN) analyst R.J. Hottovy. Burger King, McDonald's, and Wendy's (WEN)—which also owns the Arby's chain—are scrambling to offer special promotions and introduce new products.

The advantage continues to go to McDonald's. On Mar. 8 the big worldwide burger chain reported February sales results that beat analyst expectations. McDonald's global sales rose 11.2% in February. Asian same-store sales jumped 10.5%—the most since November 2008—and European same-store sales rose 5.4%. McDonald's shares gained 2.28% to 65.12, on Monday.

McDonald's reported a 0.6% increase in same-store U.S. sales, which came despite cold and snowy winter weather that shaved about 2% off U.S. sales, a McDonald's spokeswoman told Bloomberg News.

Burger King and Wendy's haven't reported February sales figures. On Mar. 4, Wendy's said Arby's January same-store sales fell 7.4%. That's better than the 12.6% drop that Arby's same-store sales registered in the fourth quarter of 2009—an improvement that a company statement attributed to a new $1 value menu. A bright spot for Wendy's: In January, same-store sales at the Wendy's chain rose 0.3% in North America.

"We remain confident [McDonald's] will continue to gain share in the U.S.," said Morgan Stanley (MS) analyst John Glass on Mar. 8. Among growth catalysts are expansion of McDonald's McCafe line of beverages this spring and the introduction of smoothies this summer, Glass wrote.

Full article Business Week By Ben Steverman]]> At first, bad economic times meant relatively good news for fast food chains such as McDonald's (MCD) and Burger King (BKC), while cash-poor consumers traded down from more expensive dining fare. Now, as the U.S. unemployment rate remains uncomfortably high, chains are struggling to keep Americans eating out at all.

"We have a price war going on," says Morningstar (MORN) analyst R.J. Hottovy. Burger King, McDonald's, and Wendy's (WEN)—which also owns the Arby's chain—are scrambling to offer special promotions and introduce new products.

The advantage continues to go to McDonald's. On Mar. 8 the big worldwide burger chain reported February sales results that beat analyst expectations. McDonald's global sales rose 11.2% in February. Asian same-store sales jumped 10.5%—the most since November 2008—and European same-store sales rose 5.4%. McDonald's shares gained 2.28% to 65.12, on Monday.

McDonald's reported a 0.6% increase in same-store U.S. sales, which came despite cold and snowy winter weather that shaved about 2% off U.S. sales, a McDonald's spokeswoman told Bloomberg News.

Burger King and Wendy's haven't reported February sales figures. On Mar. 4, Wendy's said Arby's January same-store sales fell 7.4%. That's better than the 12.6% drop that Arby's same-store sales registered in the fourth quarter of 2009—an improvement that a company statement attributed to a new $1 value menu. A bright spot for Wendy's: In January, same-store sales at the Wendy's chain rose 0.3% in North America.

"We remain confident [McDonald's] will continue to gain share in the U.S.," said Morgan Stanley (MS) analyst John Glass on Mar. 8. Among growth catalysts are expansion of McDonald's McCafe line of beverages this spring and the introduction of smoothies this summer, Glass wrote.

Full article Business Week By Ben Steverman]]> http://www.in-business.org.uk/forum/showthread.php?tid=453 Wed, 10 Mar 2010 00:10:45 +0000 http://www.in-business.org.uk/forum/showthread.php?tid=453 March 9 (Bloomberg) -- The millionaires’ club in the U.S. grew by 16 percent in 2009, following a 27 percent decline in 2008.

Families with a net worth of at least $1 million, excluding primary residences, rose to 7.8 million in 2009, an increase from 6.7 million a year earlier, according to a survey of high- net-worth U.S. households conducted by Spectrem Group.

“With the markets trending upwards, we expected an increase,” George H. Walper Jr., president of Spectrem Group, said in a telephone interview. The Standard & Poor’s 500 Index increased 24 percent in 2009 and has risen 68 percent over the past 12 months.

Affluent households, which the survey defined as those with net assets of $500,000 or more, increased 12 percent to 12.7 million, the Chicago-based consulting firm said in a statement today. The number of households with a net worth of more than $5 million rose 17 percent to 980,000, Spectrem said.

The average age of a so-called affluent investor is 58, compared with 62 for a millionaire and 67 for an investor with more than $5 million. Survey respondents in all three categories said they were most concerned about the impact of a prolonged economic decline on their financial well-being, according to Spectrem.

Cash Investments

The highest number of affluent and millionaire investors said they were likely to invest in cash, which includes certificates of deposit, money-market funds and Treasury bills, over the next 12 months, followed by stocks and then bonds, said Spectrem.

The biggest number of ultra-high-net-worth investors said they were likely to invest in equities, followed by cash and international investments. The fewest wealthy investors said they were likely to invest in alternative investments such as hedge funds and private equity, and investment real estate, Spectrem said.

Full article Business Week By Alexis Leondis]]> March 9 (Bloomberg) -- The millionaires’ club in the U.S. grew by 16 percent in 2009, following a 27 percent decline in 2008.

Families with a net worth of at least $1 million, excluding primary residences, rose to 7.8 million in 2009, an increase from 6.7 million a year earlier, according to a survey of high- net-worth U.S. households conducted by Spectrem Group.

“With the markets trending upwards, we expected an increase,” George H. Walper Jr., president of Spectrem Group, said in a telephone interview. The Standard & Poor’s 500 Index increased 24 percent in 2009 and has risen 68 percent over the past 12 months.

Affluent households, which the survey defined as those with net assets of $500,000 or more, increased 12 percent to 12.7 million, the Chicago-based consulting firm said in a statement today. The number of households with a net worth of more than $5 million rose 17 percent to 980,000, Spectrem said.

The average age of a so-called affluent investor is 58, compared with 62 for a millionaire and 67 for an investor with more than $5 million. Survey respondents in all three categories said they were most concerned about the impact of a prolonged economic decline on their financial well-being, according to Spectrem.

Cash Investments

The highest number of affluent and millionaire investors said they were likely to invest in cash, which includes certificates of deposit, money-market funds and Treasury bills, over the next 12 months, followed by stocks and then bonds, said Spectrem.

The biggest number of ultra-high-net-worth investors said they were likely to invest in equities, followed by cash and international investments. The fewest wealthy investors said they were likely to invest in alternative investments such as hedge funds and private equity, and investment real estate, Spectrem said.

Full article Business Week By Alexis Leondis]]> http://www.in-business.org.uk/forum/showthread.php?tid=452 Tue, 09 Mar 2010 23:58:19 +0000 http://www.in-business.org.uk/forum/showthread.php?tid=452 UK hoteliers will not see trading conditions improve this year and forecast it will be 2013 before room rates in Europe return to levels seen before the financial crisis.

Just 2 per cent of 155 UK hotel executives surveyed forecast a "sustained upturn this year", sharply down on the 37 per cent who last year forecast that 2010 would bring "solid growth", found the DLA Piper 2010 Europe Hospitality Outlook Report.

More than half – 52 per cent – of UK hoteliers fear that room rates will not return to pre-crisis levels until after 2012. But executives at large hotel chains are more bullish and 70 per cent expect to grow their market share in 2010, as they continue to focus on rebranding and converting their small chains to bigger brands.

Karen Friebe, the global co-chair of DLA Piper's hospitality and leisure practice, said that low room rates were a "significant problem" – with rates down by up to 30 per cent over the last year. This was the main reason for the gloom among the 417 European hotel executives surveyed.

Full article Business Independent By James Thompson]]> UK hoteliers will not see trading conditions improve this year and forecast it will be 2013 before room rates in Europe return to levels seen before the financial crisis.

Just 2 per cent of 155 UK hotel executives surveyed forecast a "sustained upturn this year", sharply down on the 37 per cent who last year forecast that 2010 would bring "solid growth", found the DLA Piper 2010 Europe Hospitality Outlook Report.

More than half – 52 per cent – of UK hoteliers fear that room rates will not return to pre-crisis levels until after 2012. But executives at large hotel chains are more bullish and 70 per cent expect to grow their market share in 2010, as they continue to focus on rebranding and converting their small chains to bigger brands.

Karen Friebe, the global co-chair of DLA Piper's hospitality and leisure practice, said that low room rates were a "significant problem" – with rates down by up to 30 per cent over the last year. This was the main reason for the gloom among the 417 European hotel executives surveyed.

Full article Business Independent By James Thompson]]> http://www.in-business.org.uk/forum/showthread.php?tid=451 Tue, 09 Mar 2010 23:49:33 +0000 http://www.in-business.org.uk/forum/showthread.php?tid=451 Government efforts to encourage motorists to buy greener cars are proving so successful they are raising concerns that tax breaks for cleaner vehicles may have to be re-jigged.

The average CO2 emissions of new cars fell by 5.4 per cent to 149.5 grams per kilometre (g/km) last year, the latest research from the Society of Motor Manufacturers and Traders (SMMT) will reveal today. And the number of vehicles sold that come under the 120 g/km threshold has nearly doubled in the past year – jumping to 20.4 per cent of all new cars sold, from just 11 per cent in 2008.

The increase reflects both improvements in engines and also government incentives, including emissions-linked car taxes and the scrappage incentive scheme. The average car bought under the scheme produces 27 per cent less CO2 than the scrapped vehicle.

But because low-carbon cars generate substantially less vehicle excise duty than dirtier alternatives, such success is depressing the Government's tax take, leaving the motor industry fearing future tax hikes. "People want greener cars, and the market is responding by producing them, but that means Government won't raise the revenues it had expected," Paul Everitt, the chief executive of the SMMT, said. "So either the Government will have to accept a lower income or it will end up shifting the CO2 thresholds."

Car tax is already set to rise in April, with the introduction of a special "first-year rate", which doubles the level for the first 12 months. The size of subsequent rises is not an issue because they are likely to be relatively low. But re-jigging where the thresholds fall will cause problems. "It is time for the Treasury to sit down with the industry to establish a longer-term outlook for CO2 taxes and incentives," Mr Everitt said.

Full article Business Independent]]> Government efforts to encourage motorists to buy greener cars are proving so successful they are raising concerns that tax breaks for cleaner vehicles may have to be re-jigged.

The average CO2 emissions of new cars fell by 5.4 per cent to 149.5 grams per kilometre (g/km) last year, the latest research from the Society of Motor Manufacturers and Traders (SMMT) will reveal today. And the number of vehicles sold that come under the 120 g/km threshold has nearly doubled in the past year – jumping to 20.4 per cent of all new cars sold, from just 11 per cent in 2008.

The increase reflects both improvements in engines and also government incentives, including emissions-linked car taxes and the scrappage incentive scheme. The average car bought under the scheme produces 27 per cent less CO2 than the scrapped vehicle.

But because low-carbon cars generate substantially less vehicle excise duty than dirtier alternatives, such success is depressing the Government's tax take, leaving the motor industry fearing future tax hikes. "People want greener cars, and the market is responding by producing them, but that means Government won't raise the revenues it had expected," Paul Everitt, the chief executive of the SMMT, said. "So either the Government will have to accept a lower income or it will end up shifting the CO2 thresholds."

Car tax is already set to rise in April, with the introduction of a special "first-year rate", which doubles the level for the first 12 months. The size of subsequent rises is not an issue because they are likely to be relatively low. But re-jigging where the thresholds fall will cause problems. "It is time for the Treasury to sit down with the industry to establish a longer-term outlook for CO2 taxes and incentives," Mr Everitt said.

Full article Business Independent]]> http://www.in-business.org.uk/forum/showthread.php?tid=450 Tue, 09 Mar 2010 23:46:06 +0000 http://www.in-business.org.uk/forum/showthread.php?tid=450 The interest charged on two-year fixed rate mortgages fell to a six-and-a-half-year low during February in a further sign that competition was slowly returning to the market, figures showed today.

The average cost of a two-year loan dropped to 3.88% during the month, down from 3.97% in January, to stand at its lowest level since July 2003, according to the Bank of England.

There was also a fall in the average cost of a five-year fixed rate mortgage, with this dropping to 5.49% from 5.56%, while tracker rates increased slightly to 3.69%, although they remained at their second lowest level since records began in 1997.

A number of banks and building societies cut their rates during February, with many launching new best-buy deals in a bid to tempt borrowers to remortgage away from their lenders' standard variable rates.

Full article Business Independent By Nicky Burridge, PA]]> The interest charged on two-year fixed rate mortgages fell to a six-and-a-half-year low during February in a further sign that competition was slowly returning to the market, figures showed today.

The average cost of a two-year loan dropped to 3.88% during the month, down from 3.97% in January, to stand at its lowest level since July 2003, according to the Bank of England.

There was also a fall in the average cost of a five-year fixed rate mortgage, with this dropping to 5.49% from 5.56%, while tracker rates increased slightly to 3.69%, although they remained at their second lowest level since records began in 1997.

A number of banks and building societies cut their rates during February, with many launching new best-buy deals in a bid to tempt borrowers to remortgage away from their lenders' standard variable rates.

Full article Business Independent By Nicky Burridge, PA]]> http://www.in-business.org.uk/forum/showthread.php?tid=449 Tue, 09 Mar 2010 23:03:32 +0000 http://www.in-business.org.uk/forum/showthread.php?tid=449 A top Bank of England policy maker has told Sky News he is confident that enough will be done to turn around Britain's economy.

Speaking on Jeff Randall Live, Monetary Policy Committee member Dr Adam Posen said the UK's spiralling debt problem will be solved no matter which party wins the upcoming General Election.

"I think all three major parties have made it clear they are going to pass some form of an austerity budget," he said.

"The details do matter, but they're all going to be big enough to get us on the right track."

His comments came just hours after ratings agency Fitch warned again over the state of the British economy.

Fitch reiterated its concerns over the UK's public finances and called for tougher action on its budget deficit, which is set to hit a record £178bn.

Full article Business Sky News Peter Hoskins, Senior business producer]]> A top Bank of England policy maker has told Sky News he is confident that enough will be done to turn around Britain's economy.

Speaking on Jeff Randall Live, Monetary Policy Committee member Dr Adam Posen said the UK's spiralling debt problem will be solved no matter which party wins the upcoming General Election.

"I think all three major parties have made it clear they are going to pass some form of an austerity budget," he said.

"The details do matter, but they're all going to be big enough to get us on the right track."

His comments came just hours after ratings agency Fitch warned again over the state of the British economy.

Fitch reiterated its concerns over the UK's public finances and called for tougher action on its budget deficit, which is set to hit a record £178bn.

Full article Business Sky News Peter Hoskins, Senior business producer]]> http://www.in-business.org.uk/forum/showthread.php?tid=448 Tue, 09 Mar 2010 15:40:33 +0000 http://www.in-business.org.uk/forum/showthread.php?tid=448 Aer Lingus, Ireland’s former flag-carrier airline, warned this morning that operating losses had quadrupled during 2009.

The airline, in which the Irish Government has a 25 per cent stake, said that operating losses before one-off items ballooned from €20.0 million to €81.0 million (£74 million) because of a collapse in fares.

Aer Lingus said that average short-haul fares during the year were down by about 12 per cent on 2008 while average long haul fares fell by 15.9 per cent.

This resulted in full-year sales at Aer Lingus falling by 11 per cent, to €1.205.7billion, despite a 3.8 per cent rise in total passenger numbers to 10.4 million and a rise in "ancillary fees", such as charging to check in bags.

Aer Lingus put out the figures in a brief trading statement that came a day after the airline said it was delaying publication of detailed full year results because of a dispute with its cabin crew.

The airline has put forward proposals that would yield about 800 job cuts — about one in five — in a €97 million restructuring plan that has been accepted by unions representing pilots, middle management and maintenance staff but which has been rejected by more than 1,000 cabin crew members.

Full article Business Times Online Ian King, Deputy Business Editor]]> Aer Lingus, Ireland’s former flag-carrier airline, warned this morning that operating losses had quadrupled during 2009.

The airline, in which the Irish Government has a 25 per cent stake, said that operating losses before one-off items ballooned from €20.0 million to €81.0 million (£74 million) because of a collapse in fares.

Aer Lingus said that average short-haul fares during the year were down by about 12 per cent on 2008 while average long haul fares fell by 15.9 per cent.

This resulted in full-year sales at Aer Lingus falling by 11 per cent, to €1.205.7billion, despite a 3.8 per cent rise in total passenger numbers to 10.4 million and a rise in "ancillary fees", such as charging to check in bags.

Aer Lingus put out the figures in a brief trading statement that came a day after the airline said it was delaying publication of detailed full year results because of a dispute with its cabin crew.

The airline has put forward proposals that would yield about 800 job cuts — about one in five — in a €97 million restructuring plan that has been accepted by unions representing pilots, middle management and maintenance staff but which has been rejected by more than 1,000 cabin crew members.

Full article Business Times Online Ian King, Deputy Business Editor]]> http://www.in-business.org.uk/forum/showthread.php?tid=447 Tue, 09 Mar 2010 15:16:51 +0000 http://www.in-business.org.uk/forum/showthread.php?tid=447 Britain has lost a potential £4.6 billion in export orders after Northrop Grumman and EADS, which owns Airbus, pulled out of a bid to supply air-refuelling tankers to the United States Air Force.

Northrop and EADS withdrew from the race for the $35 billion (£23 billion) contract last night, claiming the terms were loaded in favour of their rival Boeing and that they could not win.

EADS was to have supplied the aircraft, an A330, which would have been assembled in partnership with Northrop in Alabama.

The wings for the aircraft would have come from Airbus’s factory at Broughton in North Wales, representing about one fifth of the contract.

The decision to pull out of the tanker deal means that Airbus UK will not need to increase the 5,000 staff in employs at the Broughton factory.

This will be a blow to the Government’s ambition of supporting the aerospace industry and strengthening UK manufacturing capability.

The loss of revenue has also emerged as Britain’s trade gap with the rest of the world grew to £7.987 billion during January — the biggest total since August 2008 – because of falling exports.

EADS and Northrop said that they had expressed "serious concerns to the US Department of Defence and the US Air Force that the acquisition methodology would heavily weigh the competition in favour of the smaller, less capable Boeing tanker.

"Northrop's in-depth analysis ... reaffirmed those concerns and prompted the decision not to bid."

The Airbus aircraft initially won the tanker contract, which could be worth up to $100 billion over its lifetime, but the deal was annulled two years ago on technicalities.

Full article Business Times Online David Robertson, Robert Lindsay]]> Britain has lost a potential £4.6 billion in export orders after Northrop Grumman and EADS, which owns Airbus, pulled out of a bid to supply air-refuelling tankers to the United States Air Force.

Northrop and EADS withdrew from the race for the $35 billion (£23 billion) contract last night, claiming the terms were loaded in favour of their rival Boeing and that they could not win.

EADS was to have supplied the aircraft, an A330, which would have been assembled in partnership with Northrop in Alabama.

The wings for the aircraft would have come from Airbus’s factory at Broughton in North Wales, representing about one fifth of the contract.

The decision to pull out of the tanker deal means that Airbus UK will not need to increase the 5,000 staff in employs at the Broughton factory.

This will be a blow to the Government’s ambition of supporting the aerospace industry and strengthening UK manufacturing capability.

The loss of revenue has also emerged as Britain’s trade gap with the rest of the world grew to £7.987 billion during January — the biggest total since August 2008 – because of falling exports.

EADS and Northrop said that they had expressed "serious concerns to the US Department of Defence and the US Air Force that the acquisition methodology would heavily weigh the competition in favour of the smaller, less capable Boeing tanker.

"Northrop's in-depth analysis ... reaffirmed those concerns and prompted the decision not to bid."

The Airbus aircraft initially won the tanker contract, which could be worth up to $100 billion over its lifetime, but the deal was annulled two years ago on technicalities.

Full article Business Times Online David Robertson, Robert Lindsay]]>