Final Whistle For West Ham Shirt Sponsor

Foreign exchange broker Alpari UK has entered insolvency following market turmoil over Switzerland's shock decision to unpeg its currency from the euro.

Within minutes of the early morning announcement on Thursday, the currency spiked around a third against the single European currency and the dollar while Swiss shares tanked more than 8%, prompting confusion and anger across trading room floors.

The move was seen as a bid by Switzerland's central bank to prepare the ground for quantitative easing in the eurozone - expected to be announced next week in an attempt to halt a slide towards deflation and boost economic activity.

Alpari is understood to have more than 200,000 clients and it said the majority had sustained losses.

It was not the only brokerage to take a massive financial hit in the wake of the turmoil with another firm in New Zealand also going out of business.

At the time of the market meltdown, Alpari's chief market strategist had declared the Swiss action "completely irresponsible" given recent support for the peg by the central bank.

Alpari said today: "The recent move on the Swiss franc caused by the Swiss National Bank's unexpected policy reversal of capping the Swiss franc against the euro has resulted in exceptional volatility and extreme lack of liquidity.

"This has resulted in the majority of clients sustaining losses which has exceeded their account equity.

"Where a client cannot cover this loss, it is passed on to us. This has forced Alpari (UK) Limited to confirm today, 16/01/15, that it has entered into insolvency.

"Retail client funds continue to be segregated in accordance with FCA rules."

The currency peg, which was introduced in September 2011, was an attempt to halt the rise of the franc against the euro at a time when the eurozone debt crisis was at its height.

The strong franc was then particularly problematic for Swiss exporters, who were forced to drastically cut prices to remain competitive.

In an effort to contain the franc's future appreciation and limit any damage to the Swiss economy, the central bank also lowered a key interest rate to -0.75 to dissuade banks from parking their cash at the national bank, opting instead to invest in the Swiss economy.

West Ham, which signed its shirt sponsorship deal with Alpari UK two years ago, refused to comment on the company's financial woes.

12.07 | 0 komentar | Read More

Npower Fuels Debate Over Energy Price Cuts

By Mark Kleinman, City Editor

Npower, one of the UK's biggest energy suppliers, has stoked the political row over utility pricing, blaming the Government for favouring smaller peers and "political factors" for influencing commercial decision-making.

In a letter to Matthew Hancock, the Energy Minister, Npower's chief executive said the scope for reflecting recent falls in wholesale gas and oil prices in consumers' bills was limited by politicians' intervention in the market.

"Political factors have...become increasingly significant over the last few years, particularly as we approach the UK general election," Paul Massara wrote in the letter, a copy of which has been passed to Sky News.

"Any change in prices in the short term will inevitably have to take account [of] potential outcomes after May this year."

Although he did not refer to it explicitly, Whitehall sources said Mr Massara was drawing attention to the Labour leader Ed Miliband's plan for a 20-month price freeze if his party wins the election.

Video: October: Winter Energy Warning

Mr Hancock had written to the six largest gas and electricity suppliers to demand that they pass on recent wholesale price falls to consumers.

He is due to meet them separately in the next few weeks for further talks.

Earlier this week, Eon - which, like Npower, is German-owned - announced that it was shaving 3.5% off the cost of its standard gas tariff, equivalent to £24 off a typical household's annual bill.

Other energy companies have signalled privately, however, that the threat of a price freeze has made it commercially risky to cut prices ahead of the election.

On Wednesday, Labour was defeated in a House of Commons vote to secure support for powers for the regulator, Ofgem, to be able to force companies to reduce consumer bills in line with wholesale price movements.

Labour was forced to adapt the language of its energy policy, insisting that the freeze was actually intended to be a cap, although it continues to use the original language in online material promoting one of its flagship policies.

Mr Massara's letter rejected a comparison drawn by Mr Hancock between the approach to price reductions of the 'Big Six' and smaller suppliers.

"The proportion of customers on fixed-price contracts is much higher for smaller independent suppliers than it is for large suppliers.

Video: Npower On Profit And Pricing

"This allows them to claim that they are reducing prices when in fact they are simply offering a new lower price fixed-price contract for new customers, in the same way we do, which may in part explain your perception that they may have moved earlier."

Mr Massara added that "actions by both Government and the regulator means that small supplier have significant benefits in terms of exemptions from licence conditions and also in terms of passing through the cost of social and environmental levies."

The Npower chief executive also pointed to the impact on global energy markets of unrest in the Middle East and the conflict in Ukraine during the last year.

And he reiterated the argument of energy bosses that a substantial proportion of customers' bills related to network charges and the widespread introduction of smart meters, the costs of which analysts expect to increase this year.

"In the case of our domestic standard tariff, we buy forward in the market to protect our customers from volatile swings in wholesale energy costs, both up and down," he wrote.

Mr Massara also said that "the recent fall in wholesale price is being actively looked at...and we...take into account competitive pressure".

He added that the company would write to standard tariff customers in the next fortnight to outline alternative pricing plans.

Npower refused to comment on the letter.

12.07 | 0 komentar | Read More

RBS Admits Mis-Selling Taxpayer-Backed Scheme

Royal Bank of Scotland (RBS) is contacting 1,800 small business customers who are believed to have suffered under the latest mis-selling scandal to hit the bank.

RBS said the issue came to light following a review of customer files following complaints to the British Business Bank, the Government body overseeing the Enterprise Finance Guarantee (EFG).

The scheme, set up in 2009, has seen RBS loan more than £900m to 9,000 small firms who would otherwise have found it difficult to access credit.

RBS said: "This exercise identified a number of instances where we have not properly explained to customers how borrower and guarantor liabilities work under the EFG scheme.

"We will now be implementing a thorough and proactive review of affected and potentially affected customers to ensure they are put back in the position they believed they would have been in."

The EFG provides a 75% Government guarantee to lenders willing to back viable small businesses to aid the economy.

Some RBS customers were incorrectly led to believe that the guarantee was for their benefit rather than the bank's - and did not realise that they remained liable for 100% of the loan.

Of the 1,800 customers being spoken to, all either defaulted or found themselves in a "stressed" financial position.

Business Secretary Vince Cable met RBS executives on Wednesday to discuss the issue, previously exposed in an investigation by The Times newspaper.

The affair is the latest damaging episode related to the lender's treatment of small business customers after it was previously accused of pushing firms to the wall so it could buy back their assets at rock-bottom prices.

RBS has also been rocked by scandals including foreign-exchange rate rigging, Libor rate fixing and the payment protection insurance mis-selling scandal.

12.07 | 0 komentar | Read More

BP Cuts North Sea Jobs As Oil Costs Dive

BP has cut 300 North Sea oil jobs as its looks to save costs amid the plunging cost of oil.

Of those to be laid off, 200 are BP workers with the others affected in contractor roles.

BP briefed workers in Aberdeen today on its plans, which it had previously said would result in $1bn (£630m) of restructuring costs this year.

BP is keen to ensure its business in the North Sea remains competitive and sustainable for the long term as Brent crude costs hover below $50 per barrel - down from $115 last June.

Trevor Garlick, regional president for BP North Sea, said: "We are committed to the North Sea and see a long- term future for our business here.

Video: Cheap Oil Takes Its Toll

"However, given the well-documented challenges of operating in this maturing region and in toughening market conditions, we are taking specific steps to ensure our business remains competitive and robust, and we are aligning with the wider industry.

"Whilst our primary focus will be on improving efficiencies and on simplifying the way we work, an inevitable outcome of this will be an impact on headcount and we expect a reduction of around 200 staff and 100 contractor roles.

"We have spoken to staff and will work with those affected over the coming months."

It made its announcement 24 hours after the governor of the Bank of England, Mark Carney, warned that falling oil prices represented a "negative shock" for the Scottish economy - but a "net positive" for the UK as a whole, given benefits for consumers.

The North Sea oil and gas sector employs over 400,000 people.

Video: Why Is BP Cutting Jobs?

Holyrood's energy minister has called for UK Government action, saying the employment threat had produced the "the most serious jobs situation Scotland has faced in living memory."

The energy secretary Ed Davey said: "The recent sharp reductions in oil prices are very challenging for companies active in the North Sea and that's why I'm here in Aberdeen today to meet with industry leaders to address the challenges the North Sea industry faces both in the short and longer term as a matter of priority.

"The threat to jobs has been brought home by the news from BP today. We have great sympathy with all those directly affected.

"BP is a significant investor and employer in the North Sea and the UK Government recognises the importance of the North Sea sector, both in terms of thousands of Scottish jobs it supports and its overall benefit to the whole UK economy."

In addition to the cuts at BP, Shell and Tullow Oil have been among other oil firms scaling back their investments worldwide.

Video: Oil Analyst: Two Years For Recovery

Tullow, which has a focus on Africa, reported on Wednesday that its gross annual profits were expected to fall by more than half on 2013, it was taking a writedown of $600m due to asset revisions and cutting 2015 investment by $200m.

It also raised the prospect of major job losses - warning that: "A major internal review of Tullow's organisation is ongoing which will lead to substantial long-term cost savings and efficiencies across the group."

Tullow added that it expected to announce the details at its full-year results on 11 February.

Its share price rose 3.2% in early trading when markets opened for business on Thursday while BP saw a 2.3% boost.

Mining and energy stocks generally recovered some ground following sharp falls on Wednesday.

Video: 19 Dec 2014: Oil City Price Fears

Unions however warned of the potential for long-term damage to the country's energy capacity as a result of falling investment.

The RMT claimed tens of thousands of jobs were at stake.

Its general secretary, Mick Cash, said: "In the wake of the current price slump, RMT is demanding that Westminster and the Scottish Parliament adopt a crisis management approach to ensure sustained production, maintenance of infrastructure, retention of skills, and a robustly regulated regime in the future.

"If immediate action isn't taken then we risk turning today's crisis into longer term damage that would threaten the very core of our offshore industry.

"This is no time for playing politics when the security of UK energy supplies is on the line."

12.07 | 0 komentar | Read More

Global Economy 'Running On One Engine'

There have been sharp share falls in London after the World Bank cut its growth forecast for 2015 and next year, declaring the world's economy was "running on a single engine."

Its twice-yearly Global Economic Prospects report said that weakness in the eurozone, Japan and in some major emerging economies offset the benefit of lower oil prices.

The global development lender predicted the global economy would grow 3% this year - falling from its previous forecast of 3.4% in June last year.

GDP growth would achieve 3.3% in 2016, it predicted.

The report's findings contributed to a sell-off of mining and energy stocks on the commodity-heavy FTSE 100 share index during trading on Wednesday - leaving it 2.8% down at 6361 by mid-afternoon.

Video: Downgrades Reflect Euro Weakness

Data showing weaker-than-expected US retail sales in December helped extend the losses.

World Bank chief economist Kaushik Basu said: "The global economy is at a disconcerting juncture.

"The global economy is running on a single engine, ... the American one. "This does not make for a rosy outlook for the world."

The body said strong growth prospects in the United States and Britain separated them from other rich nations.

It warned on the potential impact of deflation in the countries using the euro and in Japan and said that among emerging market economies Brazil and Russia in particular weighed on its predictions.

Russia, which is heavily dependent on oil revenues, is suffering amid a 60% plunge in world oil prices - coupled with sanctions imposed by the West over its actions in Ukraine.

The resulting weakness of the rouble has stoked inflation leaving the country facing the prospect of recession.

Growth has slowed in China but it is more a managed slowdown as it transitions away from an investment-led growth model.

The report said that while lower oil prices should be a net positive for the world economy, it would increase short-term market volatility and reduce investments in unconventional oil such as shale and deep sea oil.

12.07 | 0 komentar | Read More

Euro QE Stimulus Plans Clear Legal Hurdle

The publication of a legal opinion by the European Court of Justice has seemingly removed a hurdle from efforts to stimulate the struggling eurozone economies.

An advisor to the court found that a hugely controversial bond-buying programme blueprint, readied by the European Central Bank (ECB), was legal.

The Advocate General's opinion, which is usually rubber-stamped later by judges, was released just days before the ECB is tipped to launch its first such operation in the form of quantitative easing (QE).

The stimulus model is expected to be similar to the one designed for use at the height of the eurozone crisis.

That programme was found to be "in principle" in accordance with European treaties.

The legal challenge was launched by German politicians and academics who claimed the ECB would be over-stepping its powers, as it is forbidden to fund governments.

However, the opinion did raise the prospect of the ECB having to withdraw from euro nation bailouts, as it suggested that the central bank would have to remove itself from any direct aid programme to a member state if QE was to benefit that nation.

The ECB is currently a member of the so-called 'troika' of inspectors that supervises Greece and Cyprus with an emergency aid programme.

The timing, scale and operation of the ECB's looming QE programme has remained unclear though ECB president Mario Draghi is under pressure to make good a promise to do "whatever it takes' to save the euro."

He raised the stakes on Wednesday, telling the German weekly newspaper Die Zeit that the bank had few other options at its disposal to counter the risk of deflation.

He said: "All members of the ECB's governing council are determined to fulfil our mandate."

The remarks were seen as rubber-stamping speculation that QE will be announced in eight days time.

Germany has consistently opposed any form of QE.

Europe's largest economy fears footing a hefty bill as it would flood euro area governments with cheap finance, allowing them to avoid economic reform.

One other thorn in Mr Draghi's plans is uncertainty over Greece, which could exit the single currency following the country's snap election on 25 January.

Polls suggest the poll could sweep an anti-austerity party to power, thus placing the country's rescue package in jeopardy.

12.07 | 0 komentar | Read More

Inflation At Joint Lowest Level On Record

The annual rate of inflation has hit a 15-year low as oil costs continue to fall and supermarkets engage in a price war.

The Office for National Statistics (ONS) measured consumer price inflation (CPI) at 0.5% in December - its joint lowest level on record - slowing from a rate of 1% in the previous month.

The figure represents a further easing in the cost of living as wage growth is boosting consumer spending power and easily outpacing rises in costs.

The ONS said falling petrol prices and lower gas and electricity bills compared with a year earlier were the biggest factors pushing inflation down last month.

The cost of Brent crude is currently at six-year lows - trading on Tuesday at $45-per-barrel.

Video: Sub-£1 Petrol Boss Denies Gimmick

It represents a fall of more than half since last summer on a supply glut and fears for world economic health.

Flat household gas and electricity tariffs over the month - compared to a period last year when they were raised sharply - also made a major contribution to the drop in CPI.

Food and non-alcoholic beverages were 1.7% cheaper in December than the same month a year ago - driven by the intense price war between the major supermarkets under pressure from discounters Aldi and Lidl.

Core vegetable costs were over 7% lower.

Video: Chancellor Welcomes Inflation Drop

Motor fuels fell 10.5% year on year with the price of a litre of petrol tumbling 13.6p between December 2013 and last month, with diesel 15p lower.

The plunge in CPI to below 1% triggers a letter of explanation from Bank of England governor Mark Carney to George Osborne because it is more than 1% off the Bank's 2% inflation target.

But the Chancellor is unlikely to be worried that, ahead of May's election, prices are falling following a tough six years for voters in the wake of the financial crisis.

Price growth could ease further this month as energy firms begin to cut standard tariffs - with no sign of a rebound in oil and gas costs.

Video: Low Inflation - Good Or Bad?

The Bank had previously said it expected CPI to fall below 1% and remain there for months to come.

But the sharpness of the decline brings the UK uncomfortably close to the scenario in the eurozone, where there are fears of a damaging deflationary spiral after inflation fell to -0.2%.

Deflation, which dogged Japan for more than 25 years, is seen as dangerous economically because consumers and businesses hold off on purchases on hopes goods and services will be cheaper in future.

Mr Osborne said: "Inflation is at its lowest level in modern times.

Video: Will Inflation Drop Help Consumers?

"We have family budgets going further and the economic recovery starting to be widely felt.

"We will always remain vigilant that we have lower inflation for the right reasons and today is yet further proof our long term plan is working."

Shadow Treasury minister Shabana Mahmood said: "Plummeting global oil prices are the reason why the rate of inflation is falling here in Britain.

"But wages continue to be sluggish and the squeeze on living standards since 2010 means working people are £1,600 a year worse off under this government."

12.07 | 0 komentar | Read More

Osborne: No Need To Fear Low Inflation Rate

Britain should celebrate the low inflation rate and not be frightened by it, Chancellor George Osborne is to insist.

He will say the slump in the headline rate to just 0.5% is due to external factors - and the benefits for consumers should be welcomed.

The comments, in a speech to the Royal Economic Society on Wednesday, come as Mr Osborne and Bank of England governor Mark Carney seek to calm nerves over the issue.

Bank of England chief Mark Carney

The Consumer Prices Index (CPI) hit its joint lowest level in December, thanks mainly to cheaper food and petrol.

Economists said the continued plunge in the oil price meant it was likely to fall further and a brief period of negative inflation was "not entirely out of the question".

Video: Consumers Welcome Price Drops

Mr Carney - who is due before the Treasury Select Committee later - has conceded deflation is now "possible", but insists Britain has the tools to deal with it.

Mr Osborne is expected to say: "The low inflation we see here in the UK is much more welcome than in the eurozone where inflation has been very low for some time and is now negative.

"There the debate has understandably turned to the dangers of deflation - the risk of a self-reinforcing spiral where economic activity falters, consumers defer purchases as prices fall and nominal debt burdens become ever harder to manage."

Mr Osborne will suggest the European Central Bank's inflation target could be changed so it is obliged to take action when inflation is below 2% - as well as above it.

Video: Low Inflation - Good Or Bad?

"In the UK our system is well equipped to deal with negative inflation shocks just as it dealt with the surge in commodity prices in 2010 and 2011," he will say.

He will add: "Of course we will always remain vigilant to ensure that inflation is low for the right reasons.

"But we should not confuse this welcome news for Britain's households as a result of falling oil prices with the threat of damaging deflation that we see in the eurozone.

"Rising real incomes, a recovery spreading to all parts of our economy, and family budgets that can stretch that little bit further - let's celebrate these effects of low inflation, not fear them."

12.07 | 0 komentar | Read More

Morrisons Chief On Brink After Sales Fall

By Mark Kleinman, City Editor

The chief executive of Wm Morrison, the UK's fourth-largest supermarket chain, was said to be on the brink of resigning on Monday amid expectations that it would be the sector's worst performer during the Christmas sales period.

Sky News understands that directors of Morrisons were discussing Dalton Philips' future with an announcement possible as soon as Tuesday, when the company is due to provide an update on its trading performance.

A Morrisons spokesman said it did not comment on management changes.

Sources said it remained possible that boardroom discussions would result in Mr Philips remaining in his post for the immediate future and that directors could express renewed confidence in his ability to improve the company's fortunes.

Sky News reported last week that Andrew Higginson, who was appointed as Morrisons' chairman-designate last year, was likely to take over from Sir Ian Gibson at the helm of the company earlier than had been expected.

Mr Philips, a former executive at Loblaw, Canada's biggest food retailer, became Morrisons' boss in March 2010, and also sits on the board of the Department for Business, Innovation and Skills.

If his departure is announced in the near-term, it would bring the curtain down on a near-five-year period during which Morrisons has struggled to modernise its business in the face of tough competition from supermarket discounters and established rivals.

Last autumn, Morrisons announced thousands of job cuts and the introduction of a new loyalty scheme in a bid to stem the decline in sales.

A major profit warning last March sparked speculation that Mr Philips was likely to step down in the medium term.

Analysts have forecast that the chain will announce a like-for-like sales fall over Christmas of between 3% and 4%, worse than either of its listed peers, Tesco and J Sainsbury.

12.07 | 0 komentar | Read More

Petrol At £1 A Litre But Not At Supermarkets

The owner of three petrol stations in the West Midlands has cut the price of unleaded petrol below £1 a litre, as supermarkets announce further reductions.

The decision to sell petrol at 99.7p by Harvest Energy garages in Birmingham, Redditch and Walsall sees sub-£1 pump prices in the UK for the first time in more than five years.

Dr Velautham Sarveswaran, who runs the stations, claims he will still make money from the move.

"The supermarkets continue to make a fortune without passing the price cuts to their customers. It is a scandal. They are cheating people," he told MailOnline.

Unleaded petrol costs hit a five-year low last week of 109.8p - with figures provided by Experian Catalist showing that average costs on Sunday had reduced further to 108.9p.

Video: Brent Crude Could Go Below $40

Diesel stood just below 115p a litre.

Analysis showed that with an unleaded price of 99.7p, 57.95p of that figure would go to the Treasury in fuel duty and a further 18.3p would be paid in VAT, with the driver paying just over 20p for the product itself.

Lower petrol prices are a consequence of the plunge in oil costs - with Brent crude losing more than 50% of its value since June last year on a supply glut and fears for the strength of the world economy.

Brent was down at fresh six-year lows of $48.8 a barrel in Monday trading.

Supermarkets confirmed further reductions to their prices - with Tesco taking 2p off their petrol and diesel costs from Monday afternoon.

Asda, Morrisons and Sainsbury's confirmed similar moves from Tuesday.

For Asda customers, the latest reduction means they will pay no more than 103.7p a litre for petrol, with diesel at 110.7p.

While motoring groups welcomed the Harvest price, the AA said it "appears to be a publicity stunt rather than a reflection of general pump prices."

Its president Edmund King added: "There remains a postcode lottery out there when it comes to fuel prices.

"Drivers in rural areas are still paying much more than the 109p average price ... It will still take some time to get down to an average of £1 per litre."

12.07 | 0 komentar | Read More