RBS And NatWest Hit By Mobile Banking Glitch

Mobile banking services for RBS and NatWest have been hit by an IT glitch, along with an unconnected problem that affected some Lloyds, Halifax and Bank of Scotland online users.

In a statement given to Sky News, a spokesperson for RBS Group said: "Some customers may have had trouble getting into mobile banking today between 8.40am and 2.30pm.

"All services are back up and running as normal.  We apologise for any inconvenience this caused."

A spokesman for Lloyds Banking Group said there was a temporary issue on Friday morning that affected mobile and online services for a small number of customers who were trying to set up payments at Lloyds, Halifax and Bank of Scotland.

The apology seen by NatWest smartphones users

A Lloyds spokesman said: "We are aware that a small number of customers experienced issues accessing payments this morning.

"The issue has now been rectified and we are working with those customers who were affected."

The RBS Group has been hit be a sequence of system-wide IT failures in the past, which affected RBS, NatWest and Ulster Bank.

More recently, it has suffered 'pay day problems'  in the past, when workers expect to see funds enter their accounts.

Branch and cash machines are believed to be unaffected by the latest woes.

In its last annual results, the group said it was investing heavily in computer infrastructure to modernise its systems.

A number of banks were affected in February when workers expected funds to be deposited.

According to the British Bankers' Association, the use of mobile devices for banking services has doubled in the past 12 months.

RBS saw more than 17 million log ins in one week, through its mobile app, earlier this month.

In late December the group was hit by its fourth IT failure, after a cyber attack left online users unable to access accounts.

That followed an outage in early December, on one of the year's busiest shopping days.

12.07 | 0 komentar | Read More

Blackstone In Joint Bid For Friends' Tax Arm

By Mark Kleinman, City Editor

The private equity giant Blackstone has joined forces with a US-based specialist insurer to table a bid for the tax planning arm of Friends Life, the FTSE-100 financial services group.

Sky News understands that Blackstone and Philadelphia Financial will make a joint offer for Lombard, which specialises in wealth planning solutions for some of the world's wealthiest people.

Philadelphia Financial targets high net-worth families through a network of intermediaries, and is understood to view Lombard as an attractive opportunity to expand that area of its business.

Friends Life has been in talks to sell the division for more than six months and is understood to have set a deadline in June for offers from interested parties.

Permira, another private equity group, is also expected to lodge a bid, while interest from Warburg Pincus, another private equity firm, is said to have waned.

Responding to Sky News' disclosure of the sale plan last November, Friends Life, which was then called Resolution, said: "Resolution notes the recent speculation in the press regarding the potential disposal of its Lombard division, which comprises Lombard International Assurance S.A. and Insurance Development Holdings AG, and confirms that it is currently in discussions regarding the possible disposal.

"There is no certainty these discussions will result in a transaction being agreed. A further announcement will be made as and when appropriate."

Analysts say the Lombard unit, which is being auctioned by investment bankers at Barclays, could be sold for £400m.

Based in Luxembourg, Lombard offers "wealth planning solutions to high and ultra-high net worth individuals".

The business is viewed as non-core by Friends Life's board and a sale would see the company re-orient itself towards its home market in the UK, analysts said.

Lombard uses Luxembourg's light-touch tax regime to help shield clients' assets from the taxman and is understood to include dozens of billionaires among its key customers.

Insiders said that Friends Life was also likely to consider the sale of Friends Provident International (FPI), which provides life assurance and investment products in Asia, the Middle East and some other markets, in due course, although no sale process for that business had yet been formally planned.

FPI has offices in the United Arab Emirates, Hong Kong, Singapore and the Isle of Man, and primarily distributes through independent financial advisers and strategic partnerships.

Andy Briggs, Friends Life's chief executive, said late last year that it was planning to compete more aggressively with specialist annuity providers such as Just Retirement, which recently floated on the London Stock Exchange.

In March, it issued updated guidance on its plans in the wake of George Osborne's shake-up of the annuities market.

He said: "There is a negative implication for new business flows in the individual annuity market, as some people utilise the increased flexibility provided by the Chancellor's proposals.

"However, we believe that annuities will continue to be an important product for those who value the guaranteed income throughout increasingly long retirement periods."

Blackstone, Permira and Friends Life all declined to comment on Friday.

12.07 | 0 komentar | Read More

BlackRock Urges AstraZeneca To Hold New Talks

By Mark Kleinman, City Editor

AstraZeneca's biggest shareholder wants the pharmaceuticals group to consider renewing talks with Pfizer about a £69bn takeover offer once a curfew period imposed by City regulators has expired.

Sky News has learnt that fund managers at BlackRock, which owns approximately 8% of AstraZeneca, have told its directors that they should re-engage with Pfizer, potentially after a three-month hiatus that is likely to come into force next week under UK takeover rules.

BlackRock, the world's biggest asset management group, is understood to have also told AstraZeneca that it agrees with its decision not to recommend a £55-a-share final offer lodged by the American drugs giant on Sunday night.

News of the firm's views comes just four days before a cut-off point for Pfizer to lodge a formal bid for AstraZeneca or walk away for six months.

BlackRock's intervention is significant, partly because it is AstraZeneca's largest shareholder but also because it is a substantial Pfizer shareholder, implying that it views a merger as possessing industrial logic.

BlackRock and AstraZeneca both declined to comment on their discussions.

AstraZeneca investors are divided about its directors' handling of Pfizer's £55-a-share proposal.

Earlier this week, Schroders, which owns 2% of the UK company, issued a statement criticising the actions of both companies:

"Schroders notes with disappointment the quick rejection by the AstraZeneca Board of the latest offer from Pfizer and the decision of the Pfizer Board to draw a premature end to these negotiations by calling their latest proposal final.

"As long term shareholders, we are strong believers in AstraZeneca and the potential for its innovative growth pipeline; however, given the increase in the offer we would encourage the AstraZeneca management to recommence their engagement with Pfizer, and subsequently their shareholders."

Legal & General Investment Management is also reported to have written to AstraZeneca to demand that it reconsider its rejection of the £69bn takeover proposal, a view echoed by fund managers at Axa Investment Managers.

Collectively, investors speaking for approximately 16% of AstraZeneca are understood to have urged it to engage in further talks with Pfizer, when BlackRock's holding is included.

However, a number of other large shareholders have backed the rejection of Pfizer's offer and endorsed AstraZeneca's view that its prospects are stronger as a standalone business.

Institutions supporting the UK-based company have included Fidelity Investments, Investor AB, the Swedish group which owns approximately 4%, M&G Investments and Threadneedle Investments.

Even with BlackRock's support, it appears unlikely that AstraZeneca's board will reverse its decision not to hold further talks prior to Monday's deadline.

Under Takeover Panel rules, Pfizer would be prohibited from making a further offer for AstraZeneca for six months if it abandons its interest. It has said it will not make a hostile bid by going directly to AstraZeneca's shareholders.

However, the British group could approach Pfizer to enter talks in three months' time, an approach that BlackRock and others now appear to be endorsing.

Pfizer's interest in AstraZeneca has sparked a row in Westminster about the US company's track record in research and development.

Labour has signalled that it could seek to block a deal if it wins power, and if a takeover had not been completed by the time of the next general election.

12.07 | 0 komentar | Read More

Hacked eBay Faces Multiple Investigations

Web retailer eBay is facing transatlantic scrutiny from the authorities over a massive cyber attack that compromised the personal data of its 145 million users.

Connecticut, Florida and Illinois have launched a joint inquiry over the hack, which came to light on Wednesday.

The investigation will focus on the scope of the data breach and eBay's response, said Connecticut officials.

Some customers have complained in web forums and on social media that they received no email warning from eBay to change their password, only learning about the cyber attack from media.

eBay's database was compromised in late February or early March

New York state's top prosecutor, Attorney General Eric Schneiderman, has asked eBay to provide free credit monitoring for those affected.

"We are currently in conversation with eBay about that," a source in his office told Sky News.

The UK's data watchdog, the Information Commissioner, told Sky News that his team was "actively looking" at launching a formal investigation into eBay.

Christopher Graham said the privacy scare was a "wake-up call" to businesses, consumers and the Government.

He said it would be wrong to pre-empt any investigation into eBay, but pointed out that his team had previously fined Sony £250,000 ($420,000) for a data breach.

There had been no increase in fraudulent activity since the cyber attack, eBay said.

Paypal - which eBay owns - is unaffected, and it runs from a different system, according to the company.

The database was infiltrated between late February and early March by hackers who accessed the log-in details of eBay employees.

It included eBay customers' names, encrypted passwords, email addresses, physical addresses, phone numbers and dates of birth.

12.07 | 0 komentar | Read More

Fat Face Pulls Float As City IPO Fashion Fades

By Mark Kleinman, City Editor

The fashion retailer Fat Face is expected to abandon its planned flotation in a move that could mark a turning point in the City's frenzy of recent company listings.

Sky News understands that the chain, which is controlled by the private equity firm Bridgepoint, decided on Wednesday evening to call off its initial public offering (IPO), which was due to raise £110m.

An announcement could be made as soon as Thursday.

Advisers to the company are said to have informed board members that there was insufficient demand at the level at which it wanted to sell shares to new investors.

City insiders said the decision was less a reflection of Fat Face's appeal to prospective shareholders and more about a broader recent change in confidence among City institutions.

In recent weeks, Card Factory, another retailer, has disappointed after coming to the market, while Saga said on Wednesday it was cutting the price range for its IPO despite what it claimed was buoyant demand.

So far this year, Appliances Online, which has also traded down since its debut, Pets At Home and Poundland have floated, with the sofa retailer DFS also poised to do so in the coming months.

Fat Face is chaired by Sir Stuart Rose, the former Marks & Spencer (M&S) boss, who also chairs the online grocer Ocado.

Fat Face has more than 200 stores in the UK and Ireland, and plans to open shops in Boston in the US during the next 18 months.

Fat Face's announcement of its intention to float would say it was seeking gross proceeds from investors of tens of millions of pounds to fund its growth.

The chain was established in 1988 selling T-shirts in the Alps.

Its controlling shareholder, Bridgepoint, has been an investor since 2007, and has not had an entirely trouble-free period of ownership, having to inject additional capital during difficult trading conditions.

However, the company has been performing strongly in recent times, with sales understood to have approached £180m in 2013, and robust like-for-like revenue growth.

Fat Face could not be reached for comment on Wednesday.

12.06 | 0 komentar | Read More

Ebay Users Urged To Change Their Passwords

By Tom Cheshire, Sky Technology Correspondent

Ebay has asked its users to change their passwords following a cyberattack that compromised the site's database.

The database, which was compromised between late February and early March, involved hackers infiltrating the database by accessing the log-in details of eBay employees.

The database included eBay customers' names, encrypted password, email address, physical addresses, phone numbers and dates of birth. 

However, the company says extensive tests carried out on its networks confirmed the breach had not resulted in any unauthorised activity for its users or compromise of their financial data. 

Ebay said it was "best practice" for users to change their passwords as it would "help enhance security for eBay users".

The company first learnt of the initial break-in two weeks ago, and a subsequent forensic analysis confirmed that a customer database had also been compromised.

The company said it has seen no increase in fraudulent activity since the hack. Paypal - which eBay owns - is unaffected, and it runs from a different database, according to the company.

"Working with law enforcement and leading security experts, the company is aggressively investigating the matter and applying the best forensics tools and practices to protect customers," eBay said in a statement.

Customers of eBay who use the same password for other websites should change their passwords on all sites.

The new cyberattack is only the latest in a recent string of high profile incidents. In February, the details of 2,200 Tesco clubcards were leaked online. Last year, US retailer Target lost the credit card details of 40 million customers.

A recent Verizon report found 1,367 serious data breaches in 2013, dubbed "the year of the retailer breach", saying it was a year of "large-scale attacks on payment card systems."

David Emm, a senior security researcher at Kaspersky Lab, said:  "It's difficult to quantify the danger customers may be in following the eBay cyberattack, but of course any personal data in the wrong hands is bad news and it appears that the attackers have gained access to customers' names, email addresses, physical addresses, phone numbers and dates of birth, as well as encrypted passwords.

"The fact that this attack took place two to three months ago means the attackers have had additional time with which to attempt to decrypt the stolen passwords as well as make use of the other personal data.

"On the face of it, it looks as though eBay has been slow to respond, but if the company has only just discovered the full extent of the attack it is now doing the right thing by notifying customers in a timely manner."

12.06 | 0 komentar | Read More

The Bank's Great House-Price Bubble Dilemma

It's rather ironic that the one time there is widespread attention on the Office for National Statistics' (ONS) house price index, amid fears of a housing bubble, the index then goes and falls.

But the drop in annual UK house price inflation from 9.2% to 8% in March does little to diminish concerns that the market might be on the brink of a bubble.

Nor does it change the enormous regional disparities evident across the economy. In London, house prices are rising at an annual rate of 17%.

While this is down a touch from the 17.8% rate recorded the previous month, there is little doubt that there is at the very least a boom and more probably a housing bubble in the capital.

Prices have risen so far in most parts of the city that, when compared to wages, inflation or yields, they are further out of reach for most consumers than ever before.

The only metric upon which house prices look affordable in the capital is when mortgage interest payments are borne in mind – but even with borrowing costs at the lowest level in 320 years, these costs are on the rise.

But saying there is a bubble in London, which is fuelled in part by debt and in part by enormous demand from foreign investors, is quite distinct from claiming there is a bubble nationwide. A glance at today's ONS figures will underline this.

Outside London and the South East, prices are rising at a far less terrifying 4.7%. In some parts (Scotland and Northern Ireland) they are falling in real terms (eg adjusting for inflation).

Moreover, prices outside London fell further and in most regions (aside from the south) have not yet regained their pre-crisis peak.

This underlines Bank of England Governor Mark Carney's dilemma. His job is to set monetary policy for the country as a whole, not just specific regions.

There are some central banks (notably the South Korean one) which do set policy region by region, but don't expect that to happen in the UK anytime soon.

So does he tighten policy in an effort to try to restrain London, and risk damaging a benign recovery elsewhere? Of course, the dilemma dissolves if, as many expect, the bubble spreads out elsewhere. But today's numbers suggest that hasn't happened quite yet.

12.06 | 0 komentar | Read More

House Prices Up As PM Mulls Help To Buy Future

House prices have risen 8% in the year to March, figures have shown, as David Cameron said he would "consider" changes to the Help To Buy scheme if advised to do so by the Bank of England.

While the increase is down on the 9.2% rise announced in February, according to the Office for National Statistics, the continued strong price growth, particularly in London and the South East, is set to fuel criticism of the government scheme which underwrites home loans for people without large deposits.

Bank of England governor Mark Carney told Sky News at the weekend that the housing market had "deep, deep" problems.

In an interview with Sky's Murnaghan show, Mr Carney warned rising house prices represented the biggest current risk to the economy.

In response, the Prime Minister indicated he was open to rethinking Help To Buy, which critics argue contributes to forcing up house prices by fuelling demand, which far outstrips the supply of available homes.

Asked if he would look at reducing the programme's £600,000 threshold, Mr Cameron said: "Of course, we will consider any changes that are proposed by Mark Carney.

"But, as he said, this is a well-targeted scheme and it's helped tens of thousands of people get on the housing ladder and to have mortgages."

Mr Cameron says Help To Buy has helped tens of thousands of people

In a bid to tackle housing inflation in London, Britain's biggest mortgage lender is imposing a new loan-to-income cap on people looking to borrow more than £500,000.

Lloyds Banking Group said people applying for a mortgage in excess of that figure will only be able to get up to four times their income.

The new policy will apply across the UK but Lloyds said it is primarily aimed at the soaring London market. It expects the change to affect around 8% of its lending in the capital and around 2.5% elsewhere.

The ONS report said annual house price rises in England were being driven by a 17% year-on-year increase in London, a 6.6% hike in the East and a 6.1% rise in the South East.

The average house price in London has reached £459,000, while the average price in the UK as a whole now stands at £252,000, slightly down on the £253,000 peak in February.

The 0.5% drop marks the first time property values have fallen month-on-month in just over a year.

Shelter says the housing market has reached "boiling point"

However, first-time buyers now face having to pay 10% more than they did a year ago, with the average price of a starter home standing at £193,000 in March, according to the ONS.

Campbell Robb, chief executive of housing charity Shelter, said: "These figures are yet more proof that our housing market is reaching boiling point.

"With every rise in house prices leaving more people priced out or stuck in cramped homes, rollercoaster house prices are rapidly losing their feel-good factor."

In his Sky News interview, Mr Carney signalled he is ready to take action to cool the housing market.

He said the Bank could adopt a range of measures, including a new "affordability test" for borrowers and advising the Government to curb the Help to Buy scheme.

Lib Dem Chief Secretary to the Treasury Danny Alexander said: "Help to Buy doesn't change any of those, the qualifying criteria that people need to follow in order to get a mortgage, but what it does do is help to open up the housing market to people who otherwise would be excluded from it."

12.06 | 0 komentar | Read More

Let Market Decide Bids' Fate, Woodford Urges

AstraZeneca Rejects Pfizer: Full Statement

Updated: 8:09am UK, Monday 19 May 2014

The Board of AstraZeneca PLC ("AstraZeneca" or the "Company") notes the announcement by Pfizer Inc. ("Pfizer") of its final proposal (the "Final Proposal"), comprising £24.76 in cash (45%) and 1.747 Pfizer shares (55%) per AstraZeneca share, representing a value of £55.00 per AstraZeneca share (based on the closing price of Pfizer shares on 16 May 2014).

This proposal undervalues the Company and its attractive prospects and has been rejected by the Board of AstraZeneca.

Leif Johansson, Chairman of AstraZeneca said: "Pascal Soriot, Marc Dunoyer and I had a lengthy discussion with Pfizer over the weekend about the proposal Pfizer made on Friday evening at a value of £53.50 per share.

"During this discussion, Pfizer said that it could consider only minor improvements in the financial terms of the Friday Proposal. In response, we indicated, even assuming that other key aspects of any proposal had been satisfactory, that the price at which the Board of AstraZeneca would be prepared to provide a recommendation would have to be more than 10% above the level contained in Pfizer's Friday Proposal.

"The Final Proposal is a minor improvement which continues to fall short of the Board's view of value and has been rejected."

"Pfizer's approach throughout its pursuit of AstraZeneca appears to have been fundamentally driven by the corporate financial benefits to its shareholders of cost savings and tax minimisation.

"From our first meeting in January to our latest discussion yesterday, and in the numerous phone calls in between, Pfizer has failed to make a compelling strategic, business or value case.

"The Board is firm in its conviction as to the appropriate terms to recommend to shareholders."

"AstraZeneca has created a culture of innovation, with science at the heart of its operations, which will continue to create significant value for patients, shareholders and all stakeholders of AstraZeneca."

"As an independent company, the entire value of AstraZeneca's pipeline will accrue to our shareholders. Under Pfizer's Final Proposal, this value would be significantly diluted."

"We have rejected Pfizer's Final Proposal because it is inadequate and would present significant risks for shareholders, while also having serious consequences for the Company, our employees and the life-sciences sector in the UK, Sweden and the US."

Background

After the close of business on 16 May 2014, the Board received a letter containing a revised non-binding proposal from Pfizer comprising £21.57 in cash (40%) and 1.845 Pfizer shares (60%) per AstraZeneca share, representing a value of £53.50 per AstraZeneca share (based on the closing price of Pfizer shares on 16 May 2014) (the "Friday Proposal").

Pfizer's letter did not provide detail about other key aspects of its proposal, several of which are of importance to the Board's evaluation.

The Board of AstraZeneca met on 17 May 2014 and concluded that the financial terms of the Friday Proposal substantially undervalued the Company and its attractive prospects. Accordingly, the Friday Proposal was rejected.

The Board wrote to Pfizer on the evening of 17 May 2014 to confirm that the Board had rejected the Friday Proposal.

The Board offered to hold a meeting with Pfizer to explain its views around the substantial shortfall in value of the Friday Proposal.

The Board also offered Pfizer the opportunity to explain the key aspects of its proposal that were not described in Pfizer's letter, in particular four points central to the Board's concerns relating to value for AstraZeneca's shareholders. These are:

· The business operating model and segmentation which would allow AstraZeneca to deliver on its research and development pipeline and prospects; and which would protect and preserve its culture of science and innovation, especially given the likelihood of material cost savings and research and development reductions;

· The details of Pfizer's plans for cost savings, including around research and development, pipeline delivery and employment;

· Transaction execution risks, in particular Pfizer's proposed tax inversion and regulatory clearances; and

· Pfizer's plans for protecting the certainty of delivery of the value of any offer at closing.

Pfizer requested that this meeting be held by conference call. This conference call, between Leif Johansson (Chairman), Pascal Soriot (Chief Executive Officer) and Marc Dunoyer (Chief Financial Officer) of AstraZeneca and Ian Read (Chairman and CEO) and Frank D'Amelio (Chief Financial Officer) of Pfizer, took place on the afternoon of 18 May 2014.

The Chairman of Pfizer said that Pfizer could consider only minor improvements to the financial terms of the Friday Proposal.

The Chairman of AstraZeneca responded that, even if the other key aspects of the Friday Proposal had been satisfactory, the price at which the Board of AstraZeneca would be prepared to provide a recommendation would have to be more than 10% above the level contained in Pfizer's Friday Proposal. Pfizer stated that its Friday Proposal was final and would not be amended.

As a consequence the discussion ended.

The Board of AstraZeneca met on 18 May 2014 after this telephone discussion and reconfirmed its rejection of Pfizer's Friday Proposal.

A few hours later, without prior notice to AstraZeneca and contrary to its previous statement, Pfizer announced its Final Proposal to the market. The Board of AstraZeneca met again and rejected Pfizer's Final Proposal for reasons set out below.

The Board believes Pfizer's proposals fail to recognise the transformation of AstraZeneca and its attractive long term prospects as an independent science-led company

As set out in the presentation to shareholders on 6 May 2014:

· AstraZeneca has a growing and accelerating late stage pipeline, with aggregate risk-adjusted pipeline peak year sales potential of around $23 billion and non risk-adjusted pipeline peak year sales potential of around $63 billion;

· AstraZeneca's five key growth platforms are sustaining near-term growth, AstraZeneca remains confident that 2017 revenues should be broadly in line with 2013;

· AstraZeneca is targeting strong and consistent revenue growth from 2017, leading to annual revenues of greater than $45 billion by 2023; and

· AstraZeneca's core earnings growth is expected to be in excess of revenue growth during the period from 2017 to 2023 as a result of operating leverage.

AstraZeneca has excellent momentum in the delivery of its clearly defined strategy, underpinning the Board's confidence in long term revenue targets and profitability

AstraZeneca continues to demonstrate strong momentum across all elements of its strategy, as evidenced by multiple recent significant pipeline developments in its core therapy areas.

These pipeline developments, announced in 2014 after completion of the Company's 2013 Long Range Plan, underpin the Board's confidence in AstraZeneca's revenue targets due to increased probabilities of success for key oncology and other specialty franchise pipeline assets.

As a result, AstraZeneca's margins are expected to benefit from this improved revenue mix.

Given that AstraZeneca is at a point of inflection, the Board believes that selling AstraZeneca at the final price proposed by Pfizer would deprive shareholders of the value from potential future pipeline success.

Accordingly, the Board believes short term metrics, including premia over historical share prices, as referenced by Pfizer regarding the attractiveness of its proposals are not appropriate bases for assessing the value of AstraZeneca.

Pfizer's Proposals and Business Model Bring Uncertainty and Risk

The majority of the consideration is in Pfizer shares which many AstraZeneca shareholders will be forced to sell. Further, for those AstraZeneca shareholders able to hold Pfizer shares, the Board believes Pfizer's proposals would materially alter the investment case and create risks and uncertainties.

In particular the Board believes:

· Pfizer's proposals are predicated on the delivery of significant cost reductions and imply a meaningful reduction in research and development potential and capabilities;

· The associated integration would risk significant disruption to the delivery and value of AstraZeneca's pipeline;

· Pfizer's previous large scale acquisitions have highlighted the challenges around the negative impact of integration on research and development productivity and output; and

· Pfizer's announced business segmentation, if it were applied to AstraZeneca's business, would likely lead to value destruction.

In the context of the above, AstraZeneca notes the recent decline in Pfizer's share price, which has fallen by 5.3% since the release of Pfizer's Q1 2014 results.

The tax-driven inversion structure remains a key part of Pfizer's proposals. The inversion structure has already been the subject of intense public and governmental scrutiny, particularly in the US, as a result of Pfizer's possible offer for AstraZeneca. The Board believes this structure brings increased uncertainty as regards the delivery of value for AstraZeneca shareholders.

Rejection of the Final Proposal

The Board believes that Pfizer's Final Proposal, in relation to price, form of consideration and the four particular points that are central to the Board's concerns around value, remains inadequate. Accordingly, the Board has rejected the Final Proposal.

This statement is being made by AstraZeneca without prior agreement or approval of Pfizer.

There can be no certainty that an offer will be made nor as to the terms on which any offer might be made. Shareholders are strongly advised to take no action. 

12.06 | 0 komentar | Read More

Cyber-Spying Charges Against China Officials

The US has charged five Chinese military officials in Beijing with economic espionage and trade secret theft - allegations that China says are "deliberately fabricated" with "ulterior motives".

The indictment accuses the five hackers of targeting US nuclear power, metals and solar products industries.

Six American companies, including Alcoa and Westinghouse, and one labour union were cited as victims of the hacking attacks.

US Attorney General Eric Holder said the case "represents the first ever charges against a state actor for this type of hacking".

"The range of trade secrets and other sensitive business information stolen in this case is significant and demands an aggressive response," he told a news conference.

Barack Obama and Xi Jinping have discussed cyber-security issues

China's foreign ministry hit back at the claims in a very strongly-worded statement and claimed it had been a victim of "large scale" American spying activities.

Foreign ministry spokesman Qin Gang said: "This US move, which is based on deliberately fabricated facts, grossly violates the basic norms governing international relations and jeopardizes China-US cooperation and mutual trust.

"The position of the Chinese government on cyber security is consistent and clear-cut. China is steadfast in upholding cyber security... The US accusation against Chinese personnel is purely ungrounded with ulterior motives."

"The US government and relevant US institutions have long been involved in large-scale and organized cyber theft," claimed the spokesman.

The US Attorney General however, called the indictment a "ground-breaking" step in addressing the threat of cyber-security.

FBI Director James Comey said: "For too long, the Chinese government has blatantly sought to use cyber espionage to obtain economic advantage for its state-owned industries."

The US believes China stole emails and other communications that could have helped Chinese firms learn the inner workings of American companies.

However, at least one of the US firms named in the matter appeared to downplay the impact of the alleged hacking.

Monica Orbe, the director of corporate affairs for metals giant Alcoa, said: "To our knowledge, no material information was compromised during this incident, which occurred several years ago."

Last September, President Barack Obama raised concerns over cyber-security with his Chinese counterpart Xi Jinping while the two were at a summit in St Petersburg, Russia.

When asked by the press about the accusations, Mr Xi said: "China not only does not support hacking but also opposes it.

"Let's not point fingers at each other without evidence but do more to safeguard cyber security."

12.06 | 0 komentar | Read More

Banking Standards: New Body To Restore Trust

The former CBI boss Sir Richard Lambert is expected to make recommendations today aimed at rehabilitating the battered reputation of British banking.

Sir Richard will call for the establishment of a body called the Banking Standards Review Council (BSRC).

The BSRC will be paid for by Britain's big banks, but is intended to remain independent of them.

Among its areas of responsibility will be the monitoring of banking culture, including how well employees understand codes of conduct.

The council will also scrutinise the competence of bank employees and their professional qualifications.

It is also expected to examine data related to customer satisfaction and complaints.

The recommendations follow an eight-month-long project led by Sir Richard.

A string of recent scandals have damaged the City's reputation

It also follows a string of mis-selling and market-rigging scandals which have tarnished the reputation of the banking industry.

Sky's City Editor Mark Kleinman revealed on Sunday that Sir Richard's announcement will include a comment made by the chairmen of seven major high street lenders.

The statement is expected to read: "The chairmen of Barclays, HSBC, Lloyds Banking Group, Nationwide, Royal Bank of Scotland, Santander and Standard Chartered welcome the publication of Sir Richard's final report.

"It confirms that there is a role for a new Banking Standards Review Council in restoring trust amongst customers and clients.

"They accept his recommendations and undertake to implement them expeditiously."

The Governor of the Bank of England, Mark Carney, has also agreed to chair a selection panel that will be responsible for identifying the inaugural chairman of the BSRC.

Mr Carney will be joined on the panel by two or three other public figures, and they will be asked to identify a suitable chairman who is perceived to be entirely independent of the banking industry.

12.06 | 0 komentar | Read More

Pfizer's £69bn Takeover Bid For AstraZeneca

Pfizer-AstraZeneca Takeover Explained

Updated: 10:38pm UK, Sunday 18 May 2014

Pfizer has expressed an interest in taking over AstraZeneca but what does that mean for Britain and British jobs, and what can the Government do about it?

:: So is there a bid or isn't there?

It's more of a proposal than a bid, really. Pfizer has made it clear it wants to buy British-based AstraZeneca and that it will pay £63bn for it but there's no official bid.

AstraZeneca has made it plain it's not interested, at least not for that amount, and the management haven't even held talks.

:: If it doesn't want to be bought isn't that the end of the story?

No. Pfizer can raise its bid or launch a hostile takeover offer in which it appeals directly to AstraZeneca's shareholders to sell up – which they may do thinking it is a better deal. Kerching.

:: Why does Pfizer want AstraZeneca so much?

It's made it pretty clear that buying AstraZeneca would allow it to be domiciled in the UK so it can pay tax to the British Government.

Corporation tax in the UK is 20% from next year but in the US companies pay 38% of profits in similar taxes.

:: What will it mean for the 6,700 British AstraZeneca staff?

Uncertainty and potentially job losses - Pfizer's boss has admitted this.

There are real fears Pfizer will asset strip AstraZeneca leading to significant redundancies and substantial damage to British scientific research capabilities.

:: But I read Pfizer had guaranteed jobs

No, it has guaranteed it will base 20% of its worldwide research and development staff in Britain – not quite the same thing.

It won't say how many people or where in the UK they will be based, although it has said it will keep AstraZeneca's new Cambridge research facility.

:: Are the guarantees worth the paper they are written on?

In a way yes, in a way no. Under the Takeover Panel rules the guarantee is legally binding for one year although Pfizer insists it will honour its pledges for five years.

However, crucially, there is a clause that says these obligations could be changed "should circumstances significantly change" ie plenty of wriggle room.

In addition it takes 10 years for a drug to get from the lab to the doctor's surgery so a five-year guarantee means little to Britain's scientific researchers.

:: Can't the Government do something?

Ultimately no. The Enterprise Act only allows it to step in under the public interest test ie if it affects national security or financial stability – which it doesn't.

Business Secretary Vince Cable has suggested the law could be changed to include scientific research and development as public interest.

In any event the final say goes to the European Commission and it will make the decision based on competition.

:: And what about competition?

Don't forget while Pfizer is bigger than AstraZeneca, neither are small concerns. A merger will create a huge firm. It will represent the biggest ever takeover of a British firm by a foreign company.

There are very real concerns such big "big pharma" will completely ruin small science research outfits.

Remember AstraZeneca and Pfizer have sites all over this world, this is not just about the UK and US politicians have also raised concerns over jobs.

:: So what are the positives of a takeover?

Well Pfizer will be paying tax to the Government and investing in Britain - all good.

And it says that the combined power of both companies will bring improved treatments for conditions such as cancer, heart disease and diabetes.

In addition, it is investment in science, which is key to the Government's economic strategy.

:: What next?

MPs on House of Commons committees have been hearing from the firms and from unions worried about job cuts but ultimately that is just talk.

Under Takeover Panel rules having indicated its interest on April 26, Pfizer has until May 26 to make an official bid.

12.06 | 0 komentar | Read More

Britain's Richest 1,000 People Now Worth £519bn

Billionaire Britain: Rise Of The Super-Rich

Updated: 7:07am UK, Sunday 11 May 2014

More than 100 billionaires are now living in Britain - the first time the milestone has been reached.

According to this year's Sunday Times Rich List, 104 billionaires with a combined wealth of more than £300bn are now based in the UK - more than triple the number from a decade ago.

Britain has more billionaires per head of population than any other country, while London has more than any other city with 72.

Top of the list are the Indian-born brothers Sri and Gopi Hinduja, who have an £11.9bn fortune.

The pair run the global conglomerate Hinduja Group and saw their wealth increase by £1.3bn in the last year.

In second place is Russian business magnate and Arsenal shareholder Alisher Usmanov, who fell from the top spot after his fortune decreased to £10.65bn.

The richest Briton is the Duke of Westminster, who is 10th on the list with a fortune of £8.5bn.

Chris Dawson, who owns The Range discount store chain, saw his wealth rise by £695m in the last year to £1.28bn.

Jon Hunt, the founder of estate agents Foxtons, has a fortune of £1.07bn, a rise of £145m from 2013.

Mike Ashley, the founder of Sports Direct, and Virgin businessman Sir Richard Branson are also among the wealthiest 25 billionaires.

Ten years ago, a fortune of £700m was required to be among Britain's 50 wealthiest people.

Now it is £1.7bn - the first time since 2008 the minimum wealth of the top 50 has been more than £1.5bn.

The combined fortune of Britain's richest is now ahead of pre-recession levels of 2008.

Last year there were 88 billionaires, worth a total of more than £245bn.

A decade ago the number was 30, with a combined fortune of £65bn.

12.06 | 0 komentar | Read More

Carney: UK Housing Market Has 'Deep Problems'

By Ed Conway, Economics Editor

The British housing market has "deep, deep" problems, according to the Governor of the Bank of England.

In an interview with Sky's Murnaghan show to be broadcast in full later this morning, Mark Carney warns that rising house prices represents the biggest current risk to the economy.

And the number of large mortgages being approved to house buyers is on the rise, he adds.

Mr Carney says that the UK is in need of new house building.

He says that compared to his home country of Canada, for example, the UK built half the number of new homes every year despite having twice the population. 

Canada builds around 200,000 new homes a year compared to just 133,000 similar properties that were built in the UK last year.

Mr Carney said: "The issue around the housing market in the UK … is there are not sufficient (numbers of) houses (being) built."

Mark Carney has issued a warning over the UK housing market

Asked if more houses need to be built, Mr Carney replied: "That would help us out.

"We're not going to build a single house at the Bank of England. We can't influence that.

"What we can influence … is whether the banks are strong enough. Do they have enough capital against risk in the housing market?"

Mr Carney said they could also check lending procedures "so people can get mortgages if they can afford them but they won't if they can't".

"By reinforcing both of those we can reduce the risk that comes from a housing market that has deep, deep structural problems," he added.

Mr Carney said there was evidence that large mortgages, where lenders approve loans of more than four times people's salaries, are on the rise again.

"We don't want to build up another big debt overhang that is going to hurt individuals and is very much going to slow the economy in the medium term," he said.

"We'd be concerned if there was a rapid increase in high loan-to-value mortgages across the banks. We've seen that creeping up and it's something we're watching closely."

Last week, Mr Carney surprised many by playing down the chances of an imminent rise in interest rates despite fears of a growing house price bubble.

But he admitted the issue was the biggest current threat to the economy.

"The biggest risk to financial stability, and therefore to the durability of the expansion, centres on the housing market and that's why we're focused on that," he said.

Prices are currently rising at more than 10% a year across the country.

Analysis by Sky News has shown the number of £1m properties has doubled since 2008.

Earlier this month, the OECD think tank called on the Bank of England to impose measures to help quell rising house prices.

Both the coalition and Labour are committed to building hundreds of thousands of new homes.

However, construction still lags behind Government targets.

Housing Minister Kris Hopkins said: "In 2010 we inherited a broken housing market, but our efforts to fix it are working.

"We've scrapped the failed top-down planning system, built over 170,000 affordable homes, and released more surplus brownfield sites for new housing.

"We've also helped homebuyers get on the housing ladder, because if people can buy homes, builders will build them."

12.06 | 0 komentar | Read More