Easter Timing And Cold Hit Retailers In April

The cold weather and the timing of Easter hit retail sales across the board last month - falling at their fastest rate for a year.

The British Retail Consortium (BRC) said retail sales values were down 2.2% on a like-for-like basis from April 2012.

On a total basis, sales were down 0.6%, against a 1.0% decline in April 2012.

However the BRC said the figures masked a respectable month as the late spring sunshine boosted sales of summer wear including sandals, shorts and skin care products.

The 3-month total growth average, which irons out the Easter distortions, was 2.6%.

Online sales were up 8.3% compared with April 2012.

Retailers with strong online offerings have been largely outperforming competitors amid the squeeze on living standards which has restricted spending on the high street.

For three years now prices have been rising faster than pay.

In its latest results statement on Wednesday, the fashion chain Next predicted the squeeze would continue "for at least the next 18 months, if not longer."

Sales across its 500 UK stores suffered during the March cold snap but 8.9% growth in its Next Directory business helped it post a rise of 2.2% in sales in its first quarter.

The company said the return of warmer weather in mid-April sparked a marked upturn in sales.

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Sainsbury's Annual Profits Fall 1.4% To £788m

The boss of Sainsbury's has told Sky News he has a "few more years" in him at the helm of the supermarket chain despite the appointment of headhunters tasked with identifying his successor.

Justin King was speaking after Sainsbury's confirmed a slight fall in annual profits, amid the intense battle among supermarkets to grow market share and invest in online.

It made a pre-tax profit of £788m in the year to March 16 - down 1.4% on the previous 12 months because of property disposals though underlying profits were up 6.2%.

Mr King also confirmed the weekend report by Sky's City Editor Mark Kleinman that it had struck an agreement with Lloyds Banking Group to take full control of Sainsbury's Bank, at a cost to the chain of £248m.

Sainsbury's said its move to acquire the 50% shareholding it did not own was an opportunity to "enhance loyalty by offering accessible, high quality and tailored products which reward customers who bank and shop with us."

Sainsbury's has been investing in its supply chain

Growth online and in convenience stores drove market share gains for the supermarket business by 0.2% over the period according to the Kantar Worldpanel measure.

Total sales over the year rose 4.6% to £25.6bn - boosted by what it called the "milestone" of non-food sales reaching £1bn for the first time.

Grocery online sales were nearing the £1bn mark, Sainsbury's said, while convenience stores took £1.5bn.

During the year, it opened 14 new supermarkets, eight extensions and 87 convenience stores.

The full-year dividend was increased 3.7% to 16.7p.

Mr King, who took over at the supermarket amid sliding sales nearly a decade ago, remained bullish about its prospects despite the flat-lining economy.

He said: "Whilst we see no near-term change in the current economic situation, we remain confident that by continuing to invest in our long-standing strategy and by understanding and helping our customers, we are well positioned for future growth."

In his interview with Sky News he moved to quell speculation about his future, adding: "I've got plenty of headroom left yet and I consider myself still to be a relatively young man so I've got a few more years in Sainsbury's left in me yet."

Sky News revealed last month that Egon Zehnder, the search firm, had been appointed by David Tyler, Sainsbury's chairman, to identify Mr King's successor.

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TweetDeck: Twitter's UK Firm Shut By Regulator

By Pete Norman, Sky News Online

A British company bought by Twitter for a reported £25m has been shut down by the business regulator after it failed to file its accounts, Sky News has learned.

The official message of TweetDeck's demise

TweetDeck Ltd, which was bought by the California-based social media giant in 2011, was officially struck off the register by Companies House this morning.

The action comes after the wholly-owned British subsidiaries, TweetDeck and Twitter UK Ltd, failed to file accounts for 2011.

The account deadline was last September and both companies were subsequently penalised.

Although Twitter UK later filed its 2011 accounts, TweetDeck did not and the Cardiff-based Companies House moved to strike off the company in January, as first revealed by Sky News.

A notice confirming the action has now been published in the London Gazette, which is the Government's official journal of record, saying TweetDeck has been "dissolved".

A Companies House spokesman told Sky News: "We go through a strict compliance process to try and ensure companies file documentation in a timely manner.

"Unfortunately, in a small number of cases, matters proceeded to strike off, as in this case."

Twitter CEO Dick Costolo (l) and Alex Macgillivray

TweetDeck is used by so-called social media power users to integrate their online messaging activity.

Its functionality has now been incorporated within Twitter's main corporate structure, according to the San Francisco-based firm.

A Twitter spokesperson told Sky News: "TweetDeck the product continues to thrive as part of Twitter, but the old TweetDeck company has been dormant for some time, with no outstanding liabilities; hence our agreement with the move to dissolve it."

TweetDeck was controlled by two American directors, Twitter Inc CEO Dick Costolo and its general counsel Alex Macgillivray.

According to the business regulator, of the three million companies registered in the UK, 99.1% maintain up to date account filings.

Dissolution of dormant companies is normally initiated by the directors rather than it being imposed by the regulator.

In March the Tax Office investigated TweetDeck but later halted action

The Companies House spokesman told Sky News: "It is incumbent on all directors to ensure documentation is submitted appropriately and it is always disappointing when this is not the case.

"As well as being a legal requirement, those wishing to research and invest use the register as an information source, and for this reason it is unhelpful if business records are not up to date and in good order."

TweetDeck was founded by Sheffield-educated computer programmer Iain Dodsworth in 2008 and sold to Twitter two years ago in what was widely reported as a £25m deal.

The microblogging giant controls its UK operations through a Dublin-based parent firm, known as Twitter International Company.

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HSBC Almost Doubles First Quarter Profits

London-listed HSBC has almost doubled its first quarter profits following a big fall in costs and bad debts.

It reported a pre-tax profit of $8.4bn (£5.4bn) for the period, up from $4.3bn a year ago, with Europe's biggest bank showing the benefit of a three-year restructuring plan.

Losses from bad debts plunged 51% to $1.2bn (£800m) and costs fell 10% in the first quarter from a year ago.

Chief executive Stuart Gulliver took over in early 2011 with a pledge to streamline operations, reduce complexity and axe businesses that were unprofitable or lacked scale.

He has shed 52 businesses while 37,000 jobs have gone since late 2010.

He said: "We have had a good start to the year, with growth in reported and underlying profit before tax.

"While continuing uncertainty in the global economy has created a relatively muted environment for revenue growth, we have increased revenue in key areas including residential mortgages and commercial banking in both our home markets of Hong Kong and the UK, and in our financing and equity capital markets business.

"Loan impairment charges were lower in every region, notably in North America."

HSBC's share price gained more than 3% on news of the performance - contributing the most points to a rise in the FTSE 100 index.

Last year, the bank posted a 16.5% slump in annual net profits as it was hit by US money-laundering fines, mis-selling scandals, rising taxation and a vast accounting charge.

It has previously put aside £1.5bn to cover costs associated with the provision of Payment Protection Insurance (PPI).

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Barroso 'Mends Austerity Fences' With Merkel

The German Chancellor is not to blame for the eurozone austerity policies, the head of the European Commission has said - in an apparent attempt to mend fences with Berlin.

European Commission president Jose Manuel Barroso drew fire from Germany last month for saying that austerity had "reached its limits", in a public challenge to Europe's biggest economy.

Chancellor Angela Merkel's government has long championed fiscal restraint.

With Greece mired in recession, unemployment in some countries running at more than 25% and France being given more time to cut its budget deficit, there is growing pressure on Mrs Merkel and other hardliners to focus on growth and job creation, not austerity.

But Mr Barroso defended the policies of austerity and said growth built on debt was not sustainable, while reiterating his view that "pure austerity" measures were no longer acceptable.

"What is happening in France and Portugal is not Merkel's or Germany's fault," Mr Barroso told the Welt am Sonntag weekly paper.

"Growth that is based on debt is not sustainable. At the same time, the policies that people see as pure austerity have reached their limits of political and social acceptance.

"But the EU Commission says the current policy mix is right and we must continue it."

Mr Barroso also said Germany should not become complacent in its reform efforts just because its economy was performing better than others, adding that the country needed to open its markets for services and infrastructure.

He added: "Complacency would be dangerous for Germany. We should not forget how tightly interlinked the European economy is.

"And Germany benefits most from the European internal market and from a stable euro.

"In certain sectors Germany should open its market more than before. We will say more on this in our country-specific recommendations at the end of the May."

Germany has fared better than others in the eurozone debt crisis that began in late 2009, but its economy shrank at the end of last year and the government now sees economic growth this year of just 0.5%

However its unemployment rate is fractional of many others in the 17-nation eurozone, sitting at just above 5%.

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Consumer Rights To Be Boosted Under New Laws

A bill giving increased rights to consumers and reducing burdens on business is set to be unveiled in the Queen's Speech.

Ministers believe reforming legislation will save the economy around £4bn over 10 years in more effective protection and better understanding of consumer rights.

The expected bill would consolidate consumer rights, currently split between eight pieces of legislation, into one place.

It will cover goods, services, digital content and unfair contract terms and consolidate over 60 pieces of legislation on Trading Standards' powers to investigate beaches of consumer law into one piece of legislation.

Consumer Minister Jo Swinson said: "Stronger consumer protection and clearer consumer rights will help create a fairer and stronger marketplace.

"We are fully aware that this area of law over the years has become unnecessarily complicated and too confusing, with many people not sure where to turn if they have a problem.

"We are hoping to bring in a number of changes to improve consumer confidence and make sure the law is fit for the 21st century."

Ministers believe businesses will benefit from faster resolution of complaints as they would spend less time and money dealing with them.

The bill is expected to help people unhappy with home improvements and make it easier to seek refunds for faulty goods.

It will also be confirmed this week that Citizens Advice and Citizens Advice Scotland have agreed to take on the responsibilities of Consumer Focus from April 2014.

Richard Lloyd, Which? executive director, commented: "A Consumer Bill of Rights is a welcome step towards ensuring that we have consumer laws fit for the 21st century.

"This bill is about making it easier for people to understand their rights and giving consumers power to challenge bad practice. It should also mean that both consumers and regulators have the tools they need to challenge unscrupulous businesses that breach the law."

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Claims Firms Face Shut-Out From CPP Scandal

By Mark Kleinman, City Editor

The claims management firms which have made millions of pounds from payment protection insurance mis-selling face being shut out from a new redress scheme being set up for customers of CPP, the stricken credit card insurer.

I have learnt that the Financial Conduct Authority (FCA), the new City watchdog, is trying to construct a compensation deal with the major high street banks that will stress the ability of affected consumers to obtain refunds directly.

The attempt to devise a scheme that bypasses claims management companies (CMCs) follows intense criticism of their role in the PPI scandal.

Millions of customers have been paid compensation by UK banks, which have been forced to set aside more than £12bn for one of the worst mis-selling scandals in the industry's history.

Hundreds of CMCs have been launched to act as intermediaries, arguing that they can help consumers win the appropriate compensation, despite the claims process being relatively straightforward.

The claims firms, frequently labelled as ambulance-chasers, can take 30% of any successful claim, earning the secretive backers of these businesses huge profits.

Households across the UK have been plagued by unsolicited phone calls and text messages promoting CMCs, even where those consumers have never held a PPI policy.

CPP founder Hamish Obston

Banks such as Lloyds Banking Group have argued for robust action against the proliferation of CMCs on the basis that even fraudulent claims are costing them huge sums to process.

Although the likely bill for compensating CPP customers is likely to remain significantly below £1bn, people familiar with the talks between the banks which sold CPP products and the FCA say they are attempting to create a programme which will allay any need to use CMCs.

"The regulator is very aware of the issues surrounding CMCs and is sympathetic to the banks' argument that they should be cut out of processes such as the one that will ensure that CPP customers get proper redress," said a person close to the talks.

The discussions about compensating CPP customers remain fluid and may not be resolved for several months.

The credit card insurer and fraud protection provider has been forced to the brink of collapse, and recently agreed the sale of its North American business as part of a deal to secure a six-month stay of execution from its lenders.

Insiders said today that CPP was also likely to dispose of its other international operations although a decision about such a move will depend upon the fate of a takeover bid for the group by Hamish Ogston, its founder.

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Barroso 'Mends Austerity Fences' With Merkel

The German Chancellor is not to blame for the eurozone austerity policies, the head of the European Commission has been quoted as saying - in an apparent attempt to mend fences with Berlin.

European Commission president Jose Manuel Barroso drew fire from Germany last month for saying that austerity had "reached its limits", in a public challenge to Europe's biggest economy.

Angela Merkel's government has has long championed fiscal restraint.

With Greece mired in recession, unemployment in some countries running at more than 25%, and France being given more time to cut its budget deficit, there is growing pressure on Mrs Merkel and other hardliners to focus on growth and job creation, not on austerity.

But Mr Barroso defended the policies of austerity and said growth built on debt was not sustainable, while reiterating his view that "pure austerity" measures were no longer acceptable.

"What is happening in France and Portugal is not Merkel's or Germany's fault," Mr Barroso told the Welt am Sonntag weekly paper.

"Growth that is based on debt is not sustainable. At the same time, the policies that people see as pure austerity have reached their limits of political and social acceptance.

"But the EU Commission says the current policy mix is right and we must continue it."

Mr Barroso also said Germany should not become complacent in its reform efforts just because its economy was performing better than others, adding that the country needed to open its markets for services and infrastructure.

"Complacency would be dangerous for Germany. We should not forget how tightly interlinked the European economy is.

"And Germany benefits most from the European internal market and from a stable euro," Mr Barroso told the paper.

"In certain sectors Germany should open its market more than before. We will say more on this in our country-specific recommendations at the end of the May."

Germany has fared better than others in the eurozone debt crisis that began in late 2009, but its economy shrank at the end of last year, and the government now sees economic growth this year of just 0.5%

However its unemployment rate is fractional of many others in the 17-nation eurozone, sitting at just above 5%.

:: The French capital was hit by anti-austerity protests on Sunday, attended by tens of thousands of protesters.

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Smartphones: Debit Cards Of The Future?

By Liz Lane, Sky News Reporter

Smartphones could soon become an even greater part of our lives as networks join forces to let us pay for high street goods with our mobiles.

The battle to dominate the market for "virtual wallets" is heating up, but with it come concerns about how thieves and fraudsters could take advantage.

Britain's big-three mobile networks - EE, Vodafone and O2 - are creating an opt-in service that will allow all bank, credit and loyalty card details to be stored on a phone SIM.

The customer will be able to swipe it on a card reader in a shop and instantly pay for goods.

David Sear, chief executive of Weve, the company managing the project, said: "You'll be able to pick up your goods from the counter - your sandwich or whatever it might be, on a small transaction - and simply swipe your phone, rather than having to get your card out of your wallet."

He is hoping to get retailers to sign up later this year, with the promise of advertising opportunities.

Stores will be able to send special offer alerts to customers' phones as they walk past in an effort to tempt them in.

Google, Barclays, Mastercard and Paypal have all come up with their own versions of the virtual wallet, but they have not caught on in the UK.

The contactless payment market as a whole has yet to take off, with only 6% of people in the UK having made such a transaction with a credit or debit card.

Bryan Glick, editor of Computer Weekly Magazine, describes it as a chicken and egg situation.

He said: "Retailers aren't going to offer this as a means of paying unless they know they're going to use it, but people aren't going to use it unless they know there are a lot of retailers they can use it at."

As for security, the new system will have a limit on how much can be spent on a phone without entering a Pin code.

However, cyber security expert Jason Hart said he would take further precautions before using it - including having his smartphone, and the payment system itself, password-protected.

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Sainsbury's To Bank On Lloyds Buyout

By Mark Kleinman, City Editor

The supermarket chain J Sainsbury will next week move to take full control of its banking operations by striking a deal to buy out its partner, Lloyds Banking Group.

I have learnt that Sainsbury's is on the verge of an agreement with Lloyds that is expected to cost it several hundred million pounds.

Insiders said that a deal was likely to be announced alongside the retailer's full-year results on Wednesday.

Sainsbury's is understood to have been keen to acquire full control of the joint venture, called Sainsbury's Bank, for some time. Buying the Lloyds shareholding will allow it greater freedom to develop and market new banking products and services.

Launched in 1997, Sainsbury's Bank has 1.4 million active customers, according to the company. The business offers insurance, loans and savings products.

Supermarkets including Tesco and Sainsbury's have bold ambitions to take on the major high street banks.

They believe there is an opportunity to do so because of growing consumer mistrust of the industry's dominant players, fuelled by the banking crisis and the emergence of subsequent mis-selling scandals.

Tesco plans to launch current accounts within the next year, while Marks & Spencer has also been trialling the provision of banking services in some of its shops.

In 2008, Tesco struck a deal similar to the one planned by Sainsbury's, which involved it paying £950m to acquire the 50% stake in its personal finance arm from Royal Bank of Scotland.

People close to the talks between Sainsbury's and Lloyds said that various commercial and service agreements would continue to exist between them following next week's deal.

Sainsbury's Bank is run by Peter Griffiths, the former head of the Principality Building Society, who was appointed to the role last November.

The sale of its stake in Sainsbury's Bank should benefit Lloyds, which is 41%-owned by taxpayers, by bolstering its capital base at a time when regulators are forcing British banks to augment the amount of capital they hold in reserve.

Lloyds is also examining the sale of Scottish Widows Investment Partnership, the fund management arm of its insurance business, as well as a stake in its international wealth management operations.

The joint venture with Sainsbury's is one of many legacy holdings taken on by Lloyds after its rescue of HBOS, the mortgage lender which came close to collapse in the autumn of 2008.

Lloyds declined to comment, while Sainsbury's said it did not comment on speculation.

The supermarket chain does not plan to update the City next week about the future of Justin King, its chief executive, following Sky News' disclosure last month that its board has hired headhunters to work on succession planning for the role.

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