Pound Falls To Another Low Against Dollar

The pound has continued to fall against the dollar, hitting a level last seen in the early days of the Coalition.

It fell to $1.4868 on Monday, after slipping below $1.49 for the first time in more than two and a half years on Friday.

The last time it was at this level was around the time of the General Election in 2010, and during the recession of 2008/2009.

The slide highlights the differing fortunes of two of the world's largest economies.

Last week, the US economy was given a boost when its jobless rate fell to 7.7% - the lowest since December 2008.

But concerns that the UK is heading for a triple dip recession remain, following a string of weak economic data and the downgrading of its credit rating by Moody's.

Sterling has been one of the worst performing major currencies this year, falling by around 8.5% against the dollar and 7% against the euro to date.

It also lost ground against the euro on Monday, which was up 0.3% against sterling at 87.34p.

Market analyst Nawaz Ali from Western Union said the falls come as investors prepare themselves for next week's Budget.

"The overriding concern is that the Government is giving little indication that it will take its foot off austerity which is hurting economic growth," he said.

He said speculation is also mounting that Chancellor George Osborne may announce a review of the Bank of England's remit.

"Investors are eyeing a change to the bank's inflation targeting, which may give Governor King and the incoming Mark Carney more room to explore new monetary stimulus," he added.

More quantitative easing is likely to hit sterling further because it increases its supply and drives its exchange value lower.

The currency movements came the day before industrial and manufacturing data for January, both of which are expected to show little or no growth over the month.

11.46 | 0 komentar | Read More

Danger As Electrical Product Recalls Ignored

Millions of potentially deadly electrical appliances are sitting in homes around the country despite attempts to recall the products, consumers are being warned.

The Electrical Safety Council (ESC) says one person is killed every seven days by an electrical accident and 350,000 people are injured annually, partly because of a "shockingly low" response to product alerts.

The charity found the average success rate of a product recall is just 10%-20%.

With 266 product recalls in the last six years and manufacturers making hundreds of thousands of items, it is thought millions of dangerous items stay in people's homes.

Research by the ESC shows almost two million adults have knowingly ignored a recall notice and a further one million admit owning an electrical item that has been recalled.

The researchers also found many consumers would jeopardise their safety if sending back a recalled product was too inconvenient or meant going without a luxury item such as a television or hair straighteners.

The ESC is launching an online tool that will allow users to quickly and easily discover if they own an electrical product that has been recalled.

The charity's Emma Apter said: "The small inconvenience of returning a recalled item is worth it when you consider that faulty products can electrocute or cause a fire.

"We firmly believe that there is more that retailers and manufacturers can do to help ensure customers are aware when a product has been recalled, and what to do if they need to return an item."

11.46 | 0 komentar | Read More

Coalition Seeks To Deliver Posties’ Share Plan

The Government is accelerating plans to privatise Royal Mail by canvassing external advisers to run a share scheme that will give the postal operator's 145,000 employees a stake in the company.

I have learnt that ministers at the Department for Business, Innovation and Skills (BIS) last week launched a tender process to recruit an administrator for the staff share ownership programme, heralding what will be the largest privatisation for 30 years.

Advisers are expected to be appointed in the coming weeks. The chosen party will be responsible for overseeing the placement of at least 10% of Royal Mail's shares in the hands of its staff, fulfilling a commitment made by the Government as part of its plan to inject private capital into the company.

The adviser will also oversee the necessary back-office infrastructure to supervise the scheme, insiders said.

Sky News revealed last month that Michael Fallon, the Business Minister overseeing the privatisation plans, has asked officials to devise an employee equity scheme designed to avoid the process of 'stagging', which blighted the huge privatisations of the 1980s under Margaret Thatcher. Stagging is the term given to those who buy or receive shares at the offer price of a flotation and then sell them immediately into the market.

It is unclear how long Royal Mail employees would be obliged to hold onto their shares but experts say it would be likely to be for a period of several months at least.

Officials pointed out that by setting a floor for employee share ownership of 10%, they were preparing for the largest statutory commitment to staff participation of any UK Government privatisation.

The sell-off plan, which would be the largest since BT was privatised in 1984, could take the form of a sale to a single buyer or, more likely, a stock market listing that would place Royal Mail on the cusp of the FTSE-100.

Under the Postal Services Act passed in 2011, the Government cannot sell a single share in Royal Mail until it has made provisions for workers to own a stake in the company.

A team of officials from BIS and the Shareholder Executive, which oversees the management of state-owned companies, is working for Mr Fallon on the employee share offering.

The plans are not yet finalised but senior Government sources confirmed that an 'anti-stagging' clause was likely to be included in the scheme to avoid the prospect of millions of pounds-worth of additional shares being dumped in the market as soon as the listing takes place.

Under Moya Greene, Royal Mail's Canadian chief executive, the company has been discussing the company's prospects with potential investors in the UK, Canada and the US as it tries to familiarise fund managers with its financial performance.

Ms Greene, who joined about two years ago, has been cutting thousands of jobs as part of a move to automate many of Royal Mail's processes and modernise the company. Her actions have caused some tensions with trade unions, but their hostility to a privatisation process appears to have eased in the context of previous efforts.

The company's efforts have begun to pay off, with operating profit increasing from £12m to £144m in the six months to September 2012, on the back of a surge in demand for sending parcels as consumers switch their buying habits to online retailers.

A BIS spokesman declined to comment.

11.46 | 0 komentar | Read More

Apprenticeships: Cameron's Pledge On Training

David Cameron will today pledge to make it the "new norm" for school leavers to take an apprenticeship or go to university.

The Prime Minster wants the country to follow Germany's lead where work-based training sits alongside higher education as the automatic options considered by teenagers when they finish their exams.

During a visit to a training academy in Buckinghamshire to mark the start of National Apprenticeship Week, Mr Cameron will call on employers, schools and colleges, and his own ministers to expand apprenticeship opportunities for young people.

The Government will formally respond to the Richard Review, which has looked at ways to improve the quality of apprenticeships, later this week.

Mr Cameron said: "Apprenticeships are at the heart of our mission to rebuild the economy, giving young people the chance to learn a trade, to build their careers, and create a truly world-class, high-skilled workforce that can compete and thrive in the fierce global race we are in.

"There are record numbers of people taking up an apprenticeship, with a million starting one in the last few years. And as we take forward the Richard Review, our drive to reform and strengthen apprenticeships, raising standards and making them more rigorous and responsive to the needs of employers - means that an apprenticeship is increasingly seen as a first choice career move.

"But we need to challenge ourselves to go even further, that is why I want it to be the new norm for young people to either go to university or into an apprenticeship. We need to look at how we can expand apprenticeship opportunities so that they are available to all young people who are ready and eager to take them up, and aspire to get ahead in life."

Barclays is launching a new programme to help get 10,000 people into work

Barclays is launching a new nationwide scheme today to support 10,000 young people into work. The Barclays Bridges Into Work programme will see local Barclays teams matching up suitable apprentices and businesses in their area.

In addition, it is doubling the number of apprentices that it is recruiting into its own workforce to 2,000 specifically helping young people in long-term unemployment with little or no qualifications into permanent and fully paid jobs.

British Airways has said it will recruit up to 200 apprentices across a variety of different departments this year, covering engineering, operations, IT, finance and project management courses.

Meanwhile, a new study has revealed fewer than one in five parents believe apprenticeships have the same status as university education.

The survey of 400 working parents by the Chartered Institute of Personnel and Development also showed that almost half thought apprenticeships were more appropriate for manual or blue-collar jobs.

A report by the Centre for Economics and Business Research showed that apprenticeships are forecast to contribute £3.4bn a year to the economy through productivity gains by 2022.

The number of people completing apprenticeships is predicted to increase from 260,000 in the current financial year, to 480,000 by 2022, said the report.

Shadow business secretary Chuka Umunna said: "We are proud to be celebrating National Apprenticeships Week, launched by Labour in government and now in its sixth year.

"However, the recent fall in the number of apprenticeships for under 19s is greatly concerning, as well as recent evidence showing that one in five apprentices say they are not receiving training and that many are not being paid. Ministers need to get a grip and back Labour's plans for more, better quality apprenticeships."

11.46 | 0 komentar | Read More

Vince Cable: Tories Waging 'Economic Jihad'

Vince Cable has accused right-wing Conservatives of waging "idealogical jihad" on public spending and warned that the Liberal Democrats would block efforts to implement some cuts.

Speaking at a fringe event on the eve of the party's spring conference in Brighton, the Business Secretary also warned that Tory efforts to reduce immigration were "causing a great deal of harm to the economy".

He said: "What we have to make absolutely clear is that there is a difference between managing public spending, controlling public spending in that context - having that financial discipline - and the kind of thing that a lot of right-wing Conservatives are wishing for, which is a kind of British Tea Party.

"A kind of ideological jihad against public spending and public services."

Kicking-off the gathering on Friday, party leader Nick Clegg denied the Lib Dems were in crisis in the wake of sexual harassment allegations and the conviction of ex-Cabinet minister Chris Huhne.

Deputy PM Nick Clegg admitted the party had 'let people down'

But the Deputy Prime Minister did admit the party had recently "let people down" and needed to take a "long, hard look in the mirror".

He said: "No doubt you will be aware of the recent allegations that have been made about sexual harassment in our party.

"When concerns were brought to the attention of members of my team we acted to address them.

"But this should not have just been the responsibility of a few individuals acting with the best of intentions.

"It must be the responsibility of the party as a whole to make sure we have the processes and support structures in place now and in the future.

Disgraced MP Chris Huhne was praised for his constituency record

"We didn't, and as a result we let people down. Liberal Democrats, that is not acceptable to me."

Delegates gave disgraced former Energy and Climate Change Secretary Huhne a round of applause after Baroness Shirley Williams praised his record as a constituency MP.

She described as "domestic tragedy" the situation of Huhne and Vicky Pryce, his ex-wife, who was found guilty of perverting the course of justice after she took speeding points on his behalf.

"We can only say of them that this is a tragedy that sometimes overcomes people; not least those in public life," she told the conference.

The party is bracing itself for showdowns with activists next week over so-called secret courts legislation and the coalition's economic strategy.

Labour has also challenged Mr Clegg to break coalition ranks by supporting the introduction of a mansion tax - long favoured by Lib Dems - in a Commons vote next week.

11.46 | 0 komentar | Read More

'Mummy Tax': Cameron Under Fire Over Cuts

By Tadhg Enright, Business Correspondent

David Cameron will have a mother's day card delivered to his door by campaigners for new mums whose benefits are about to be capped.

Labour has accused the Government of imposing a "mummy tax" and said the welfare reforms are part of a series of austerity measures which unfairly target mothers.

Shadow minister for women Yvette Cooper MP told Sky News: "It's like David Cameron and George Osborne have a blindspot about women because they're paying three times more than men in tax and benefit and pay and pension changes.

"That is so unfair when women earn less and own less than men.

"It shows that the Prime Minister and the Chancellor just don't get it and it's outrageous that new mums are hurt hardest."

Yvette Cooper says the changes are unfair

Around 340,000 women claim either statutory maternity pay or maternity allowance every year.

Until now their benefits have gone up in line with inflation which currently stands at 2.7% according to the Consumer Price Index.

But from next month new mothers' benefits will go up by just 1% every year as part of a three-year cap on welfare increases.

So by 2015 critics have calculated the benefits will be effectively cut by £180 because they will not increase by as much as the cost of living will.

Conservative MP Amber Rudd said: "The fact is there are so many good things we are doing to try to help mothers.

"What mothers really want is welfare that works, improved education and jobs.

"That's what they talk to me about on the doorstep and I feel this Government is doing a lot on that front.

"And it's rank hypocrisy of labour to accuse us on this front when they have made no suggestions about how to reduce the deficit."

Single mum-to-be Helen Mockridge has one clear suggestion for a better way to reduce the deficit.

"Taxing really rich people, obviously, that's where the money should come from," she said.

"For me it's a real no-brainer and it makes me really angry that certain parts of society are very, very wealthy and the gap between rich and poor is getting bigger.

"That's where the money should be coming from, not from single mothers or the disabled or any other vulnerable group."

11.46 | 0 komentar | Read More

Cameron's Speech Rebuked By Fiscal Watchdog

David Cameron has been rebuked by the Office for Budget Responsibility about the impact of his Government's austerity measures on economic growth.

In a high-profile speech on Thursday, the Prime Minister said the OBR was "absolutely clear that the deficit reduction plan is not responsible" for depressed growth, adding "in fact, quite the opposite".

But the head of the independent fiscal watchdog has written to Mr Cameron saying he misrepresented its position.

Chairman Robert Chote wrote to Number 10, disputing the claims.

He insisted that it believed there was a short-term effect and that "fiscal consolidation measures have reduced economic growth over the past couple of years".

The strong retort from the watchdog came in response to a passage from the Prime Minister's speech which he used to insist there was "no alternative" to the Government's strategy.

"There's not some choice between dealing with our debts and planning for growth," he said.

"As the independent Office for Budget Responsibility has made clear growth has been depressed by the financial crisis, the problems in the eurozone and a 60% rise in oil prices between August 2010 and April 2011.

"They are absolutely clear that the deficit reduction plan is not responsible. In fact, quite the opposite."

But the OBR published a letter sent to Number 10 on Friday by Mr Chote in which he took exception to the claims.

"For the avoidance of doubt, I think it is important to point out that every forecast published by the OBR since the June 2010 Budget has incorporated the widely-held assumption that tax increases and spending cuts reduce economic growth in the short term."

He added that an impact of "external inflation shocks, deteriorating export markets and financial sector and eurozone difficulties were more likely explanations" than incorrect multipliers for the reason growth was even weaker that initially forecast.

A Downing Street spokesman said: "The OBR has today again highlighted external inflation shocks, the eurozone and financial sector difficulties as the reasons why their forecasts have come in lower than expected.

"That is precisely the point the Prime Minister was underlining."

11.46 | 0 komentar | Read More

US Boom: Jobs Jump By 236,000 In February

The number of people hired in the United States by non-farm employers jumped by 236,000 in February, exceeding expectations.

The unemployment rate also dropped to 7.7% from 7.9% in January, the lowest level since December 2008.

The Obama administration said it is evidence that the economic recovery is "gaining traction".

New jobs have averaged more than 200,000 per month since November last year.

Wages have increased and the gains were broad-based, led by the best construction hiring in six years.

New construction jobs continue to build up the US economy

But there was one negative detail in the government's February employment report.

Employers added fewer jobs in January than first estimated.

Job gains were lowered to 119,000 from an initially reported 157,000.

However, December hiring was a little better than first thought, with 219,000 jobs added instead of 196,000.

The upbeat figures saw a strengthening of the dollar, with Sterling sliding beneath the $1.49 figure.

Many economists expected hiring to fall in early 2013 largely due to the ongoing uncertainty surrounding the US budget, higher tax rates and looming federal spending cuts that took effect in March.

Yet the latest jobs report indicates job creation is speeding up.

However, early 2011 and 2012 also saw hiring jumps only to see the figures die back as the year went on.

White House economist Alan Krueger noted in a statement that the new unemployment rate was measured before $85bn (£56bn) in automatic budget cuts started taking effect.

The administration has warned that the cuts could have a negative impact on employment and economic growth.

It is urging Congress to move toward a "sustainable federal budget" by closing tax loopholes, enacting entitlement reforms and cutting spending.

11.46 | 0 komentar | Read More

Barclays Chief Jenkins Hints At Jobs Axe

By Mark Kleinman, City Editor

The chief executive of Barclays has suggested that the growing automation of banking services could result in tens of thousands of jobs disappearing from its workforce during the next decade.

I have learned that during meetings with leading shareholders following Barclays' annual results last month, Antony Jenkins said that he envisaged a future in which the bank employed as few as 100,000 people. Barclays currently employs approximately 140,000 staff.

Mr Jenkins is understood to have discussed during the investor meetings the objective of Barclays becoming a self service-oriented company which allows its remaining staff to focus on delivering "added value" to customers and clients across its retail, investment and wealth management operations.

The suggestion by Mr Jenkins could stoke concerns that he is planning a vast redundancy programme, although a Barclays insider insisted that Mr Jenkins had not been setting a formal target for job cuts and that his comments should be regarded as "blue-sky thinking about the long-term future".

"He was talking about how the bank needs to be more efficient in general terms," a person close to Mr Jenkins said. "It's about how we do the same or more with a smaller headcount, but there is no specificity about how much smaller."

Antony Jenkins replaced Bob Diamond as chief executive last year

Even so, the reference to such a potentially dramatic reduction in the size of Barclays' workforce is inflammatory, given Mr Jenkins' effort to position it as the 'Go-To' bank for stakeholders. Mr Jenkins took over as chief executive in the wake of the Libor-rigging scandal that saw Barclays fined £291m by regulators in the UK and US.

His comments come as banks face growing pressure from investors to make themselves more efficient amid pressure from regulators to hold more capital. The major UK-based banks have consistently underperformed in terms of delivering returns to investors since the financial crisis because of their bloated cost bases, and have been under pressure to reduce bonus pools in order to deliver more capital to shareholders.

Barclays has more than 1,650 branches in Britain, employing tens of thousands of people. Achieving job reductions on the scale implied by Mr Jenkins during his recent meetings would, insiders said, principally involve Barclays' investment bank's back office as well as the closure of some branches both in the bank's home market and overseas, although a spokesman said that such actions were not on the bank's immediate agenda.

Any large-scale closure of UK branches would entail further bad news for high streets ravaged by the collapse of a string of prominent retailers.

Mr Jenkins has already set out a concrete cost reduction programme at Barclays, which will involve £1.7bn being eradicated from the bank's cost-base by 2015. 3700 jobs will be axed as part of the plan to address costs, which the Barclays chief executive referred to last month as a "strategic battleground".

Many of the proposed job cuts are taking place within Barclays' investment banking arm, with the bulk of the rest focused on its retail banking operations in troubled Eurozone countries such as Italy and Spain.

Accompanying last month's full-year results, in which Barclays reported a profit of £246m, Mr Jenkins gave a presentation about the future of the bank in which he referred to the "21st Century industrialisation" of the industry.

The "large-scale focused automation of core processes", "globalisation of processes [and] reduced real-estate footprint" and "customer and client-centric self-service via best-in-class digital and mobile" were all signalled by the Barclays chief in his presentation.

Barclays has been a pioneer in internet and mobile-based banking and payment services, including through its money-transfer app, Ping-It, which has been hugely popular as customers increasingly switch to digital channels.

One investor said Mr Jenkins' presentation underlined his determination to overhaul Barclays in a more radical way than even that attempted by Bob Diamond, his predecessor.

Barclays declined to comment on Mr Jenkins' remarks.

11.46 | 0 komentar | Read More

PM: We'll Come Through If We Hold Firm

Cameron Firm On Tough Resolutions

Updated: 4:54pm UK, Thursday 07 March 2013

By Jon Craig, Chief Political Correspondent, in Keighley

David Cameron came to Bronte country to talk about human emotions … or rather the impact on them of these tough economic times.

"I know things are tough right now," he said at the beginning of his big speech on the economy in a smart, modern workshop at the Cinetic Landis factory, heading up hill out of Keighley towards the moors.

"Families are struggling with the bills at the end of the month. Some are just a pay cheque away from going into the red. Parents are worried about what the future holds for their children."

Spoken with Bronte-like passion.

It was as if he wanted to answer straightaway the criticism of his opponents - and some Conservative MPs - that he's a rich, posh boy who doesn't understand the hardship facing ordinary families.

But after the "I feel your pain" opening, he ended his speech with a defiant message on the economy, rejecting calls for a U-turn on spending cuts and repeating Margaret Thatcher's famous slogan: "There is no alternative."

"This month's Budget will be about sticking to the course," said the Prime Minister. "Because there is no alternative that will secure our country's future."

Aah, but there is, his critics are arguing. And those critics now include Vince Cable, according to Labour, after his New Statesman article calling for more borrowing to fund more capital spending.

But David Cameron wasn't having any of that.

After he said in his speech that he was prepared to "roll up his sleeves and fight" opponents of various Government initiatives like the HS2 rail project, I asked him in his Q&A if he would do the same with his Business Secretary.

No need, he said, somewhat unconvincingly. "He agrees with the Government's policy," he said. "The article he wrote in the New Statesman was cleared and approved by the Treasury."

Really? By Danny Alexander, perhaps, but not George Osborne, I fancy.

Vince Cable's intervention rather took the gloss off the PM's speech in the big, shiny workshop in this highly impressive machine tools factory, where they're working seven days a week to meet their export demands from China and other countries.

The Prime Minister was clearly intending, less than a fortnight before the Budget, to give a few pointers to the Chancellor's statement on March 20. There would be more help for people to get mortgages, he hinted, and possibly more help for motorists hit by rising fuel bills.

He described himself as a "low tax Conservative" and said the only way to cut taxes was to cut the deficit. Labour, he said, believed there was a "magic money tree". From branding Ed Miliband a "croupier in the casino" at PMQs to a "magic money tree". Colourful!

But the main thrust of his defiant message came at the end of his speech, when he concluded by insisting the Government would "stick to the course" because it was about "doing the right thing".

Why? Because, he said, if there were to be good jobs, good public services and money to look after people in their old age, the deficit had to be cut and there must be no more "squandering billions on welfare for people who could work".

This speech came just a few days after Mr Cameron pledged in a Sunday Telegraph article that there would be no "lurch to the Right".

And yet here he was repeating Mrs Thatcher's "There is no alternative" slogan.

But then Margaret Thatcher has always been David Cameron's heroine, in true Wuthering Heights style.

Was Maggie Catherine Earnshaw to Dave's Heathcliffe, I wonder? No, it was Gordon Brown who was likened to the brooding Heathcliffe.

Wait a minute, the PM also talked here about "tough choices", a Tony Blair phrase.

Perhaps Dave is Jane Eyre to Blair's Mr Rochester? No, Frank Field compared Gordon Brown to him too.

Many Tory MPs see the Prime Minister as a flawed hero these days, however.

No wonder he only stayed in Bronte country for about an hour and a half.

11.46 | 0 komentar | Read More