The great interest rate rip off part 1

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Icelanders vote on payback plan

Iceland votes on a deal to repay the UK and Netherlands over the Icesave bank collapse, with "No" protesters out in force.

Q&A: Iceland votes on its future

Iceland eyes payback

Iceland talks end without deal

Fixed-rate energy deals 'unfair'

 

Millions of energy customers lose out on price cuts as they are locked into "unfair" fixed tariffs, a consumer website says.

 

Man Utd suitors 'won't overpay'

 

The Red Knights consortium say they have not yet put a figure on the value of Manchester United - but say they will not overpay

 

 

OTHER TOP BUSINESS STORIES

Greece 'not seeking finance aid'

 

Metro Bank gets official go-ahead

 

Aid package for steel plant staff

 

WPP profits hit by 'brutal' 2009

 

Bankers in demand says jobs firm

 

EU considers general carbon tax

 

What will the bonus super-tax raise?

 

MORE FROM BUSINESS

BA strike talks 'to end Tuesday'

 

Iceland talks end without deal

 

Browser makers demand screen time

 

BSkyB to take on extra 550 staff

 

US job cuts better-than-expected

 

Hong Kong tycoon eyes EDF

 

Think-tank calls for VAT change

 

Toyota boss tries to boost morale

 

China 'must reverse inequalities'

 

Scottish and Southern cuts bills

 

Demand high for Greece bonds

 

Bank keeps interest rates on hold

 

UK house prices 'fell by 1.5%'

 

 

YOUR MONEY

Tesco backs online estate agent

 

Faulty goods 'costing consumers'

 

Deal struck over agency workers

 

ECONOMY

US borrowing rises unexpectedly

 

Iceland referendum 'to go ahead'

 

US economic growth 'hit by snow'

 

COMPANIES

Brewing giant sees profits rise

 

MPs warn pub firms on 'beer ties'

 

RBS begins Williams & Glyn's sale

 

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Footsie soars amid US recovery hopes

 

FTSE 100, up in five of past six trading sessions, rose 72.6 points to 5,599.76, a gain on the week of nearly 5 per cent 17 Comments

 

• FTSE 100 tops 5,000 for first time this year
  

 

• Greece attracts strong demand for bond issue
  

 

Merkel hits at speculators over Greece

 

German Chancellor calls for joint action with US to curb derivatives markets and stop 'game with sovereign states' 20 Comments

 

• Footsie soars amid US recovery hopes
  

 

• Want a bailout? Sell your islands
  

 

Battle on as Forth Ports rejects offer by Peel

 

Battle for control of Britain’s important ports erupted after the owner of Grangemouth rejected the offer from its rival

 

• Scottish & Southern in power play for wood
  

 

• BP tanker drivers threaten to strike
  

 

Pru strives to shine a light on cash call

 

Pru shares have dived 20 per cent since the announcement of the $21bn rights issue due to the lack of detail of the terms 2 Comments

 

• Backdown by Prudential would stifle UK deals
  

 

• Prudential shares fall on $35.5 billion Asia deal
  

 

 

BP boss receives 41% pay rise despite profit fall

 

Tony Hayward has received a cash and share package worth £4m following a fall in income to the lowest in six years

 

BAE cuts links to Saab and fighter

 

Europe’s largest defence company ends links with Gripen aircraft by selling half its stake in Swedish aerospace partner

 

 

Page sheds profits but says banks are recruiting

 

The professional services recruitment company says that business is picking up after its worst 12 months for 33 years

 

• Michael Page faces surprise £40m tax bill
  

 

• Michael Page profits fall 49% in bleak market
  

Arriva calls off talks over French merger

 

The attempt by state-controlled SNCF to couple its Keolis subsidiary with the UK trains group hits the buffers

 

• Arriva will hold on to CrossCountry franchise
  

 

• Profits down, but merger talk drives Arriva to new heights
  

Reader's Digest UK attracts almost 100 suitors

 

Administrators of the 72-year-old British edition of the magazine say they have identified 25 potential buyers

 

 

 

WPP to focus on developing world

 

Sir Martin Sorrell forecast only ‘very flat growth’ across the UK and Western Europe in the next 12 months

 

Toyota rallies troops as repair failures rise

 

Akio Toyoda summons workers for 'pep-talk' as continuing crisis casts shadow over attempts to rebuild Japanese brand

Iceland GDP rises 3.3% ahead of referendum

 

Rare piece of good news for the troubled island as Icelanders go to the polls over debts to UK and the Netherlands

 

• TIMELINE: The Icesave Saga
  

 

• Iceland risks isolation over failure to repay
  

Wen Jiabao targets 8% growth for China

 

Premier vows that the poor will not be forgotten in economic advance in his annual address to Chinese parliament

 

 

Rewritten history spoils good story

 

Standard Chartered has had a great financial crisis, so why has the bank mucked about in the presentation of its dividends?

 

We can’t inflate our way out of the crisis

 

The lesson of the 1970s was that any economic sacrifice was worth it to stop inflation. It seems to be fading from memory

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Jobless Rate Holds Steady, Raising Hopes of Recovery

 

By PETER S. GOODMAN and JAVIER C. HERNANDEZ

 

The economy in February shed 36,000 nonfarm jobs, fewer than forecast, as the unemployment rate held at 9.7 percent, the Labor Department said on Friday.

 

• For Auto Towns, Ed Montgomery Is an Ambassador of Hope
  

Millions of Toyotas Recalled, None in Japan

 

By HIROKO TABUCHI

 

Despite reports of unintended accelerations, Toyota denied the problems existed in Japan, where a pro-business culture undermines consumer protections.

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http://www.imf.org/external/pubs/ft/spn/2010/spn1003.pdf

 

there are other instruments at the policymaker’s disposal—call them cyclical regulatory tools. If leverage appears excessive, regulatory capital ratios can be increased; if liquidity appears too low, regulatory liquidity ratios can be introduced and, if needed, increased; to dampen housing prices, loan-to-value ratios can be decreased; to limit stock price increases, margin requirements can be increased. True, none of these is a magic bullet and all can be, to some extent, circumvented. Nevertheless, they are likely to have a more targeted impact than the policy rate on the variables they are trying to affect. In this light, it seems better to use the policy rate primarily in response to aggregate activity and inflation and to use these specific

instruments to deal with specific output composition, financing, or asset price issues.

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Family pubs facing "fun & games" tax bombshell which could drive them out of business. | News Of The World

 

Struggling family pubs are facing a "fun & games" tax bombshell which could drive many more out of business.

 

Landlords will be CLOBBERED by crippling new charges if they have a pool table, dartboard, kids' play area or show Sky Sports on TV.

 

Even those with a QUIZ machine will be hit with an extra £2,500 bill. Popular games based on TV hits like The Weakest Link will face the same levy as one-armed bandits.

 

The move will cost the industry £85million a year and could finish off quiz games - enjoyed in 35,000 pubs - as landlords opt for profitable fruit machines.

 

Publicans last night warned next month's business rate hikes, plus a Budget rise in beer tax, will be the final straw for many boozers. Already about 40 a week are closing - and 24,000 jobs have gone in the last year.

 

Shadow housing minister Grant Shapps said: "Gordon Brown has pushed local community pubs to the wall. Nice pubs are getting a kicking while nothing is done about the binge-drinking dens that have wrecked our town centres."

 

Brigid Simmons, of the British Beer & Pub Association, warned: "There will be more people gambling, as quiz machines vanish."

 

The parasite is moving to kill the host. Tax tax tax it's all the govt can do to try and meet it's commitments but there isn't the money to pay for it all. Default appears the only option as they won't cut spending.

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TORIES want employers to split part-time jobs ease benefits burden. | News Of The World

 

TORIES plan to strong arm employers into splitting jobs between part-time workers in a bid to cut the £150 billion-a-year benefits bill.

 

Unions fear Brits face massive pay cuts if David Cameron wins the election and uses part-time hours and job sharing to make the work go round.

 

JobCentre Plus staff will be forced to ask all employers advertising vacancies if they could be provided on a part-time, flexible or job share basis. The Tories have also pledged to extend the right to request flexible working to all parents with children under 18.

 

Shadow Work and Pensions Minister Andrew Selous said: "It is astonishing Jobcentre Plus does not ask employers if jobs they are offering could be provided on a part-time, flexible or job share basis.

 

A Conservative government would change that and require Jobcentre staff to make this a standard practice."

 

Union leaders fear part-time workers struggling on desperately low salaries are helping to keep unemployment figures low.

 

TUC general secretary Brendan Barber said: "People are doing whatever they can to stay in work. But while part-time work is better than none, people will be shocked by the pitiful pay rates."

 

Meanwhile the Government has been accused of "breathtaking hypocrisy" because while it wants firms to offer parents flexible working, Whitehall employs only a handful of part-time workers.

Looks like the politicians are panicking about how they can manipulate the unemployment figures, more part time work is a great plan to get the unemployment figures down.

 

It should also help boost house prices............

 

Several part time jobs to soon become the norm?

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Housing market faces lost decade as upturn runs out of steam | Business | The Observer

 

Britain's homeowners must brace themselves for 10 years of stagnation, as last year's recovery in the property market gives way to a decade of drift, experts warn.

 

Following news that the number of new mortgages approved fell in January, and house prices declined last month on both the Halifax and Nationwide measures, analysts believe the upturn in the second half of last year has run out of steam.

 

"At best, it could be a decade of flat to slightly falling prices," says Danny Gabay, a former Bank of England economist and director of consultancy Fathom. He predicts a 5% fall in prices this year, and a 10% decline in 2011.

City betting on property prices shows investors believe prices will struggle to rise in real terms for at least 10 years. By the end of 2012 prices will be just 3% higher, according to the Tradition Property Futures Index, which is based on the Halifax price index. After 10 years the price of the average home, now £165,997, will be only 22% higher than today.

 

Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors, said he expected prices to increase by just 1 to 2% in 2010, with worse to come. "2011 could be an altogether more challenging year: it wouldn't surprise me if prices slipped back a bit more."

 

He added that the housing bounce late last year was concentrated in the south. "It was more London and south-east than Yorkshire and Humberside or the north," he said. "London and the south-east are benefiting from overseas buyers, and the City coming back to life."

 

David Kern, chief economist of the British Chambers of Commerce, said after many years when double-digit price rises brought bumper windfalls, and thousands of people relied on property to fund their retirement, homeowners will have to change their attitude.

 

"I look at it to some extent as a cultural shift. People have to get used to a different situation: it's a healthier housing market," he said. "If you had prices exploding again, we would be back to a crisis pretty soon."

 

What will generation MEW do now?

 

Has there been any sustained periods where the South East has had huge price raises whilst the rest of the country had falling prices?

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A weak pound is no substitute for making tough decisions on debt - Telegraph

 

There are growing concerns not only about Britain's dire fiscal position, but that this country's political classes lack the grit and determination to do anything about it.

 

The deeper fear stalking the markets, in fact, is that gutless policymakers have concluded, sotto voce, that a lower pound and a dose of inflation are just the ticket - the least worst way for the UK to "tackle" its fiscal predicament.

 

Granted, weaker sterling and rising prices lower the real-terms value of the stock of government debt. What matters, though, if Britain is to avoid the unmitigated disaster of fully-blown insolvency, is "debt flow" – namely the Government's ability to keep selling new IOUs at the required rate. The grim reality is that a weaker pound and rising inflation makes such debt issuance much, much harder.

 

One gets the feeling that, in recent months, yet another generation of financially illiterate politicians has been seduced by the false charms of currency debasement and inflating away sovereign debt. Ambitious economists are lining up to justify such folly – issuing footnote-heavy missives arguing for "competitive sterling" and "an end to this low-inflation cult".

 

Such advice is woefully misguided – a carbon-copy of policy blunders made throughout history, most recently in the 1970s. The UK government, over many years, for the next decade in fact, needs severely to curtail its spending. The most vital services must be protected but the state must do much less and do it better. There really is no alternative, to coin a phrase. The "easy option" of tackling our debts via a lower pound and higher prices is ultimately not only counter-productive, but deeply destructive. It will succeed only in precipitating the gilts strike we're supposed to be trying to avoid.

 

Last Monday should serve as a wake-up call. In a dramatic trading session, the pound lost nearly four cents against the dollar. In trade-weighted terms, sterling is now 6pc down since the start of February. Even against the deeply troubled euro, the pound has shed 4pc in five weeks.

 

There are many reasons why sterling is tumbling. Most fundamentally, the UK is shouldering a budget deficit above 13pc of GDP – the largest of any major economy. Given what's been happening in Greece, the UK – with its similar debt profile – could be next in line to be hit by "sovereign contagion".

 

Recent UK investment figures have also spooked the market. British firms spent 24.1pc less on new equipment during the fourth quarter of 2009 than the same period the previous year – the biggest drop on record. Such a decline in capital spending points to anaemic future growth, which, again, weighs on the currency.

 

Dove-ish remarks from the Bank of England's Monetary Policy Committee are dragging down the pound. If traders think interest rates really will stay down for months to come, expected returns on a whole range of sterling assets are lower. The pound has also been inadvertently hit by the Prudential's massive $35bn acquisition of the Asia operation of AIG, the clapped-out US insurance giant. Raising all those dollars involves the sale of lots of pounds.

 

Then, of course, there's the unmatched degree to which the UK has printed money - what we're supposed to call "quantitative easing". Between 1900 and 1948, Britain's monetary base expanded three-fold, from roughly 7pc to 22pc of GDP. That happened over almost a 50-year period which, of course, included two world wars.

 

A similar monetary expansion has taken place since QE began last March. The UK has tripled its monetary base once again, but this time in a single year. For now, these near-cash balances have barely hit the economy. As many struggling firms and households know, QE has done little to re-boot the UK's credit markets and kick-start lending.

 

Instead, the "funny money" lurks on the off-balance sheet vehicles of deeply indebted banks, as they try to avoid fessing-up their massive sub-prime losses. But these QE proceeds will ultimately enter circulation – a reality that looms large over the currency market's "fundamental" view of sterling.

 

More at the link.

 

It's hard to see how this can all end positively.

 

The expansion of the monetary base has been huge, what's happened historically to other nations who've expanded the monetary base so fast? Did it end in growth?

[interestrateripoff]

Economic View - Rethinking the Government?s Role in Housing Finance - NYTimes.com

 

FOR decades, the federal government has subsidized housing — particularly owner-occupied housing. This has been especially true during the continuing financial crisis, with Fannie Mae, Freddie Mac and the Federal Housing Administration propping up the housing market by issuing guarantees for investors on most new mortgages.

 

But what is the long-term justification for putting taxpayers on the line to subsidize homeownership? Is this nothing more than a sacred cow in American society — a political necessity because so many voters own homes and are mindful of their resale value?

 

In fact, there is much more to the history of subsidizing housing. While the crisis in the housing market shows that our current approach is far from perfect, there is a certain wisdom behind it, related not only to economic stimulus but also to the preservation of a sense of national identity. It’s important to remember this as we consider re-engineering our institutions as the crisis ebbs.

 

Federal subsidies for housing essentially began in the Great Depression with, among other things, the creation of the F.H.A. in 1934 and Fannie Mae in 1938. It all started for a simple reason: more than a third of all the unemployed were identified, directly or indirectly, with the building trades. At the time, there seemed to be no way to reduce unemployment without stimulating housing, and much the same is true today.

But consider what will happen once the economy is again operating at full capacity. Basic economics tells us that when Americans, over all, spend more on housing, they must ultimately spend less on something else. Why should housing consumption be better than other consumption, or investments that people might choose?

 

This time, the best answer isn’t found in traditional economics but rather in American culture: a long-standing feeling that owning homes in healthy communities is connected to individual liberties that embody our national identity. Historically, homeownership has been associated with freedom, while renting — often in tenements or mill villages — has been linked to the oppression of a landlord.

 

In his classic 1985 book, “Crabgrass Frontier,” Kenneth T. Jackson of Columbia University delineated the complex train of thought that over the last two centuries has produced the American belief that homeownership encourages pride and good citizenship and, ultimately, preservation of liberty. These attitudes are enduring.

 

Back in 1899, in “The Theory of the Leisure Class,” Thorstein Veblen described homeownership, particularly of large and expensive dwellings, as “conspicuous consumption.” By that, he meant that it was undertaken substantially for the purpose of impressing others by showing the amount of money one can afford to waste on space one doesn’t need.

 

What is specifically American here — though it’s increasingly seen in other countries, too — may be the modern sense of equal citizenship, engendered by the illusion that we can sustain conspicuous housing consumption even among a majority of the people.

 

In short, this all has a great deal to do with culture, and little to do with financial wisdom. After all, financial theory suggests that people should not own their own homes, at least not in the way that many do today. A cardinal tenet is that people should diversify — meaning they shouldn’t put nearly all of their financial eggs in one basket, which is what homeownership now means for so many people.

 

American mortgage institutions encourage people to take a leveraged position in the real estate market, which is quite risky because home prices can and do decline, as we have learned so painfully. Leverage a risky investment 10 to 1 and you can expect trouble — and we have plenty of it today. More than 16 million homeowners owe more on their mortgages than their homes are worth, according to Mark Zandi of Economy.com.

 

If we choose to keep subsidizing individual homeownership, we must also commit to adding safeguards so that homeowners are less financially vulnerable. Of course, that will require some creative finance.

 

But first, we should rethink the idea of renting, which could be a viable option for many more Americans and needn’t endanger the traditional values of individual liberty and good citizenship.

 

If your using the house as a cash machine though are you really spending less? Housing has been an asset price bubble that was unsustainable but I would have thought in the economic short term has boosted consumption in the wider economy because home owners could leverage debt against the asset, rather than income.

 

As long as house prices go up this isn't a problem, the problems occur when the house prices crashes then the folly is revealed.

[interestrateripoff]

Red Knights want fans to join Old Trafford bid

 

More than 100 potential investors have told the Red Knights, the consortium planning a bid for Manchester United, they want to back its attempt to buy the club from the Glazer family.

 

 

• Man from the Pru begins City charm offensive
  
• Ingram tipped to be next chairman of Collins Stewart
  
• RBS set to pull coverage of small firms
  
• Globespan administrator mulls claim against E-Clear's bank
  
• Anglo American attracts suitors for £800m zinc assets
  
• Market too tough for a Big Bear listing
  
• 'Lay foundations for growth,' BCC tells Alistair Darling
  

 

Agile, smaller enterprises are leading a revival in the industry

 

Excessive focus on big manufacturers is a distraction from the sector’s real innovators

 

• Stephen Timms: We're here for the times when a small business needs a lifeline
  
• Adventures in micro-business: 'Where can I get support to expand my business?'
  
• Virtual solution to a data dilemma
  
• Soapbox: ‘Look to collaborate with those who can do what you can’t’
  
• Roger Trapp: 'Even poets have been cited nio inspiring business founders & managers"
  
• Top of the fair trade fashion tree
  

 

Hamish McRae: Manufacturing is growing, but don't expect it to rescue the economy

 

Economic view

 

 

• Margareta Pagano: Going mutual paid off at Spain's top football clubs
  
• Helga Arnardóttir: We're fed up with Icesave but we'll vote no
  
• James Moore: The pension funds hoping for a miracle
  
• James Moore: Bet bookies really hate this idea
  
• David Prosser: Why we have to call the banks' bluff
  

[interestrateripoff]

Breaking news:

 

• Europe will stand by Greece, says Sarkozy - Reuters
  
• 'Alice in Wonderland' stands very tall in theaters - Reuters
  
• France promises euro zone aid for Greece if needed - Reuters
  
• Oscar sets the stage for ladies night - Reuters
  
• Orascom Telecom says Algerian tax appeal rejected - Reuters
  
• What's next for Iceland after debt referendum? - Reuters
  
• Qatar Telecom Q4 net drops on provisions - Reuters
  
• The top movies at the North American box office - Reuters
  
• Reuters Summit-Economic growth to keep metal prices strong - Reuters
  
• Ukraine's Feb CPI 1.9 pct m/m vs 1.8 pct in Jan - Reuters
  

 

 

 

• UK state must take control of North Sea energy production
   
   
  Opec adviser Peter Odell says a state authority would ensure oil and gas companies work in the national interest
   
  
• Profits bloom at John Lewis with growth spurt from Waitrose
   
   
  Analysts reckon the group is likely to record pre-tax profits of about £315m over the past six months, up from £280m last year
   
  
• Housing market faces lost decade
   
   
  Experts warn homeowners could face 10 years of stagnation as prices start to fall again
   
  
• Prudential's expansion into Asia 'good for the UK', says insurer's chief executive
   
   
  The Pru's chief executive, Tidjane Thiam, dismisses critics of his takeover of AIG's Asian arm as 'eurocentric' 3 comments
   
  
  • Ruth Sunderland: good luck to the Pru
    

   

  [*] Dyson urges Tories to keep R&D credits

   

   

  In report commissioned by Conservative party, James Dyson to warn that scrapping research and development tax credits would damage innovation

   

  [*] Lib Dems urge Lloyds to come clean on government lending goals

   

   

  Loss-making Lloyds bank must reveal how far it has fallen short of its 2009 lending targets, says party 3 comments

   

 

 

• 
  Red Knights ponder their opening gambit in the battle for Man United
   
   
  Fans fear the club's debt levels are putting its future at risk, but how likely is a bid by wealthy supporters to be
   
  
• Millions of low-energy lightbulbs wasted as companies exploit loopholes
   
   
  Since the scheme began in 2008, 224m bulbs have been distributed as companies try to meet energy-saving obligations in cheapest way possible
   
  
• Papandreou and Merkel meet over debt
   
   
  Amid growing acrimony, Greek leader calls for German support for Greece to borrow on better terms 71 comments
   
  
  • Athens seeks expatriate Greeks bearing gifts
    
  • Greece's 10-year bonds sale proves popular
    
  • Business blog: What could Britain sell off?
    
  • Get up earlier, German tabloid tells Greeks
    

   

 

 

• More business news
   
   
  
  • US unemployment rate stable at 9.7%
     
     
     
    
  • Coventry building society in merger talks
     
     
     
    
  • Interest rates held at record low
     
     
     
    
  • Unite ready to agree to pay freeze at BA
     
     
     
    

[interestrateripoff]

[/url]

 

Tories back small firms

 

Ken Clarke, the shadow business secretary, has pledged support for millions of small and medium-sized enterprises as part of his blueprint for business.

Welcome back Ken Clarke: the Tory secret weapon

 

 

 

Iceland demands Brown takes lead on debt row

 

Iceland's president has demanded that Gordon Brown personally agree a reduction in the multi-billion pound bill his country faces to compensate British customers of failed internet bank Icesave.

Icelanders reject plan to repay £3.5bn

 

 

 

Land of Rising Sun watches as Greek star wanes

 

With a deficit rising yearly, many Japanese believe that the heralded budget apocalypse has arrived.

 

Admiral founder continues to steer a steady course

 

Henry Englehardt's insurance group has broken through the £1bn sales barrier but the boss is not one to rest on his laurels.

 

Toyota faces new delays

 

 

 

 

UK's economic recovery 'is under threat'

 

 

 

 

BA tie-up to hit fares, says Virgin

 

 

 

 

Pru braced for share-price volatility

 

 

 

 

Ruia brothers aim for London listing

 

 

 

• Getting into Japan needs strong nerves - and a stronger stomach
  

 

• Tidjane tread carefully, Asia's full of bear traps
  

 

 

• A weak pound is no substitute for tough decisions on debt
  

 

Icelanders reject plan to repay £3.5bn

 

 

 

China ready to end dollar peg

 

 

 

 

Norwegians’ vote of confidence for gilts purchase

 

 

 

 

UK factory inflation hits 14-month high

 

 

 

 

Greece is a harbinger of austerity for all

[interestrateripoff]

Darling: no new cuts in spending

 

The chancellor will refuse to bow to calls for more cuts in his budget and will stick to fiscal plans set out last year 22 Comments

 

• Election woes are vote against Brown
  

 

• Darling’s £40bn cut in public spending
  

 

Matalan founder takes home £250m pay cheque

 

John Hargreaves is in talks with banks and other investors about a £525m refinancing that would be used to repay Matalan’s debt 4 Comments

 

• Matalan sale pulled as buyers balk at price
  

 

• Matalan weighs £1.5bn sell-off
  

 

Glazer family could triple Man U money

 

Payoff likely if the Red Knights' consortium of financiers pulls off a £1.25bn takeover of the world-famous football club 12 Comments

 

• IN DEPTH: The Red Knights’ sliding tackle
  

 

• Man U examine £600m bond issue
  

 

Coventry poised to snap up ailing rival

 

Britain's third-biggest building society is in merger talks with Stroud & Swindon in a move that could create a new super-mutual 3 Comments

 

• West Bromwich building society in rescue talks
  

 

• Stroud & Swindon boss David Hill in swift exit
  

 

 

Pru boss promises ‘explosive’ growth

 

Tidjane Thiam is expected to provide further details of the synergies in meetings with his top shareholders this week

 

 

Mobile networks vie for the Apple iPad

 

The gadget giant says that its new device will go on sale in America from April 3 and come to Britain later in the month

 

RBS's branch sell-off hits the buffers

 

The sale of a network of 320 Royal Bank of Scotland branches is faltering after the emergence of a £3bn funding gap

 

• Hester lines up £1.6m RBS bonus
  

 

• RBS to pay £1.7bn bonuses despite £3.6bn loss
  

HBOS investment portfolio to go for £500m

 

At its peak the portfolio, part of the corporate finance division run by Peter Cummings, was estimated to be worth £1.4bn

 

• Lloyds still reeling under HBOS bad debts
  

 

• Lloyds targets sales from £70bn property empire
  

Qinetiq to make cuts after profit warnings

 

The new boss of the defence group has begun a shake-up that will cut head-office costs by half and include a cull of senior management

 

 

Icelanders reject plan to repay British billions

 

Country delivers crushing no vote in referendum over £3.48bn lost by savers when Icesave failed in October 2008

 

Firms flock to 'bankruptcy brothel' UK

 

A Greek multinational has deprived creditors of £1.3 billion by claiming that a one-man London office was its global HQ

WPP to focus on developing world

 

Sir Martin Sorrell forecast only ‘very flat growth’ across the UK and Western Europe in the next 12 months

 

• WPP predicts 'italicised L-shaped' recovery
  

 

• WPP sees off revolt on £60m bonus scheme
  

Toyota rallies troops as repair failures rise

 

Akio Toyoda summons workers for 'pep-talk' as continuing crisis casts shadow over attempts to rebuild Japanese brand

 

 

 

There is pessimism about the consumer's ability to power a long-term recovery

 

 

Pru’s test for cowards in the City

 

So what happens when one of our national champions makes a bid abroad? Does the City rally round? Not so, as the insurer found out

 

Election woes are vote against Brown

 

The markets continue to believe a Labour victory, particularly a minority Labour government, would be very bad for Britain

US authorities chase psychic in $6m ‘[problem]’

 

The Securities and Exchange Commission is after Sean Morton, who claimed the power to predict the tide of financial fortunes

[interestrateripoff]

Economy 'to grow slower in 2011'

The British Chambers of Commerce has lowered its GDP growth expectations for 2011, warning against complacency after the UK's exit from recession.

UK economy 'improving'

UK growth revised upward

UK unemployment sees slight fall

Iceland rejects bank payback plan

 

Voters in Iceland overwhelmingly reject a plan to repay debts to the UK and the Netherlands in the wake of the Icesave collapse.

 

Virgin Money to charge customers

 

Virgin Money says it will charge customers a fee for current accounts when the firm launches banking services later this year

 

 

OTHER TOP BUSINESS STORIES

Fixed-rate energy deals 'unfair'

 

Man Utd suitors 'won't overpay'

 

Greece 'not seeking finance aid'

 

Metro Bank gets official go-ahead

 

Aid package for steel plant staff

 

Building societies discuss merger

 

MORE FROM BUSINESS

Bankers in demand says jobs firm

 

WPP profits hit by 'brutal' 2009

 

EU considers general carbon tax

 

BA strike talks 'to end Tuesday'

 

Iceland talks end without deal

 

Browser makers demand screen time

 

BSkyB to take on extra 550 staff

 

US job cuts better-than-expected

 

Hong Kong tycoon eyes EDF

 

Think-tank calls for VAT change

 

Toyota boss tries to boost morale

 

China 'must reverse inequalities'

 

Scottish and Southern cuts bills

[interestrateripoff]

China’s Bank Chief Says Currency Is Unlikely to Rise

 

By MICHAEL WINES

 

Zhou Xiaochuan said China should be “very cautious” about revaluing its currency, also known as the yuan, as long as major economies remained mired in slow growth.

 

• Times Topics: Yuan
  

 

Fundamentally

 

A Farewell to Europe? Not So Fast

 

By PAUL J. LIM

 

For the first time since the global credit crisis, spreading bets across different geographic regions is proving worthwhile.

[interestrateripoff]

Santander leads race for £4bn RBS branches - Times Online

 

Santander has moved into pole position to take over the 320 branches in England being sold by Royal Bank of Scotland.

 

A large corporate buyer with existing UK interests such as the Spanish bank would frustrate attempts to inject fresh competition into British banking.

 

The sale memorandum went out last week, but it emerged over the weekend that any buyer would have to find an extra £3 billion as well as the mooted price of £1 billion. The business, which is being marketed as the old Williams & Glyn’s branch network, is dependent on £3 billion of emergency funding from the Bank of England, part of the rescue package provided to RBS and the rest of the banking sector. A buyer would have to replace this with fresh funding within weeks.

 

A purchaser would also require about £2 billion in capital to support the £24 billion loan book. None of those involved would comment, including Santander — which bought and rebranded Abbey in its own name — and Virgin Money and National Australia Bank (NAB), which are possible bidders.

 

Santander aiming to become too big to fail?

[interestrateripoff]

Firms flock to 'bankruptcy brothel' UK - Times Online

 

A GREEK multinational company has deprived creditors of £1.3 billion by claiming that a one-man London office was its global headquarters and exploiting lenient insolvency rules introduced by Labour.

 

Wind Hellas, Greece’s third-largest telecoms company, moved its assets to Britain from Luxembourg in August. Its tiny London head office consisted of one man, one desk and a computer.

 

Two weeks later it began the process leading to its adminstration, using a financial device known as a “pre-pack” which grew out of legislation championed by Gordon Brown when he was chancellor.

 

When Wind Hellas subsequently collapsed, more than a third of its debt was wiped out, including £9m owed to Royal Bank of Scotland (RBS), which is 84% owned by the taxpayer.

 

Creditors say the Wind Hellas deal shows Britain is becoming a “bankruptcy brothel”, with failed firms using UK laws to off-load debt.

 

One insolvency expert said “dozens” of foreign firms are planning to take advantage of Britain’s attractive insolvency regime.

 

The Greek economy is in the middle of a budget crisis that has rocked the euro.

 

Pre-packs allow owners of a struggling company to set up a new firm and then buy back the best stock, property and other assets from the original company.

 

The Wind Hellas pre-pack was the largest in British corporate history and yet it was overseen by a 33-year-old executive who had graduated from business school five years earlier.

 

The executive, Matthew Tippetts, had no experience of corporate insolvency and conducted business from his small office using mobile phones and a free email account. Sources close to him, however, said he was advised by experienced professionals.

 

Wind Hellas is owned by Naguib Sawiris, 55, the Egyptian tycoon who is thought to be one of the richest men in Africa with personal wealth estimated at £2 billion.

 

Under the terms of the pre-pack deal, Wind Hellas’s assets were bought by Weather Investments, an investment vehicle controlled by Sawiris.

 

The new company, which was formed with approval from senior creditors, had been freed of £1.3 billion in debt which Wind Hellas owed to “subordinated bondholders”.

 

Besides RBS, the losers included some of the biggest names in the City of London, including Aberdeen Asset Management and Lloyds Banking Group.

 

You really couldn't make this up, so Labour alter the bankruptcy rules and then foreign companies that UK banks have lent money too and are now owned by the taxpayer can come here and go bankrupt meaning the UK taxpayer foots the bill for the losses.

 

Excellent.

 

[interestrateripoff]

Why the sun looks poised to set on Japan's era of cheap government debt - Telegraph

 

With a deficit rising yearly, many Japanese believe that the heralded budget apocalypse has arrived.

 

The Japanese have always been fascinated with Europe. They modelled their system of government on Britain’s, as well as their health care system and roads; their railways owe something to France; their banks are being remodelled in German fashion. But right now it is another less familiar nook of Europe that is provoking the most attention: Greece.

 

No prizes for guessing why. With Athens having last week agreed a set of unprecedented austerity cuts and declared itself open to the prospect of an International Monetary Fund bail-out, the Japanese are asking themselves whether a similar fate lies in store for them.

The statistics do not bode well. Like Greece, Japan’s net debt is close to the 120pc of gross domestic product mark. The deficit is still climbing every year. The country’s credit rating has been cut again and again, leaving it far below AAA ranking. Its debt interest payments and refinancing costs account for over 20pc of its annual spending.

 

According to Shigeru Ishiba – MP and chairman of the policy research council of the opposition Liberal Democratic Party, a crisis is approaching.

 

“Gradually the Japanese government debt is closing in on the level of savings of the Japanese people,” he says. “So when the government debt goes beyond the level of total savings that will be the destruction of Japan. And I must say that that day may not be that far away.”

 

20% of your income going on servicing debt and doing nothing productive in the economy.

[interestrateripoff]

Short-Sale Program Will Pay Homeowners to Sell at a Loss - NYTimes.com

 

In an effort to end the foreclosure crisis, the Obama administration has been trying to keep defaulting owners in their homes. Now it will take a new approach: paying some of them to leave.

 

This latest program, which will allow owners to sell for less than they owe and will give them a little cash to speed them on their way, is one of the administration’s most aggressive attempts to grapple with a problem that has defied solutions.

 

More than five million households are behind on their mortgages and risk foreclosure. The government’s $75 billion mortgage modification plan has helped only a small slice of them. Consumer advocates, economists and even some banking industry representatives say much more needs to be done.

 

For the administration, there is also the concern that millions of foreclosures could delay or even reverse the economy’s tentative recovery — the last thing it wants in an election year.

 

Taking effect on April 5, the program could encourage hundreds of thousands of delinquent borrowers who have not been rescued by the loan modification program to shed their houses through a process known as a short sale, in which property is sold for less than the balance of the mortgage. Lenders will be compelled to accept that arrangement, forgiving the difference between the market price of the property and what they are owed.

 

“We want to streamline and standardize the short sale process to make it much easier on the borrower and much easier on the lender,” said Seth Wheeler, a Treasury senior adviser.

 

The problem is highlighted by a routine case in Phoenix. Chris Paul, a real estate agent, has a house he is trying to sell on behalf of its owner, who owes $150,000. Mr. Paul has an offer for $48,000, but the bank holding the mortgage says it wants at least $90,000. The frustrated owner is now contemplating foreclosure.

 

To bring the various parties to the table — the homeowner, the lender that services the loan, the investor that owns the loan, the bank that owns the second mortgage on the property — the government intends to spread its cash around.

 

Under the new program, the servicing bank, as with all modifications, will get $1,000. Another $1,000 can go toward a second loan, if there is one. And for the first time the government would give money to the distressed homeowners themselves. They will get $1,500 in “relocation assistance.”

 

Should the incentives prove successful, the short sales program could have multiple benefits. For the investment pools that own many home loans, there is the prospect of getting more money with a sale than with a foreclosure.

 

For the borrowers, there is the likelihood of suffering less damage to credit ratings. And as part of the transaction, they will get the lender’s assurance that they will not later be sued for an unpaid mortgage balance.

 

For communities, the plan will mean fewer empty foreclosed houses waiting to be sold by banks. By some estimates, as many as half of all foreclosed properties are ransacked by either the former owners or vandals, which depresses the value of the property further and pulls down the value of neighboring homes.

 

If short sales are about to have their moment, it has been a long time coming. At the beginning of the foreclosure crisis, lenders shunned short sales. They were not equipped to deal with the labor-intensive process and were suspicious of it.

 

The lenders’ thinking, said the economist Thomas Lawler, went like this: “I lend someone $200,000 to buy a house. Then he says, ‘Look, I have someone willing to pay $150,000 for it; otherwise I think I’m going to default.’ Do I really believe the borrower can’t pay it back? And is $150,000 a reasonable offer for the property?”

 

Short sales are “tailor-made for fraud,” said Mr. Lawler, a former executive at the mortgage finance company Fannie Mae.

 

Last year, short sales started to increase, although they remain relatively uncommon. Fannie Mae said preforeclosure deals on loans in its portfolio more than tripled in 2009, to 36,968. But real estate agents say many lenders still seem to disapprove of short sales.

 

Under the new federal program, a lender will use real estate agents to determine the value of a home and thus the minimum to accept. This figure will not be shared with the owner, but if an offer comes in that is equal to or higher than this amount, the lender must take it.

 

Mr. Paul, the Phoenix agent, was skeptical. “In a perfect world, this would work,” he said. “But because estimates of value are inherently subjective, it won’t. The banks don’t want to sell at a discount.”

 

Will this plan depress property prices even more? If houses start selling for less money than the market price is known and losses become crystallised could this ensure the insolvent banks are shown to be insolvent?

[WebFerret]

Think-tank calls for VAT change

Politicians should consider imposing VAT on food, children's clothes and household gas and electricity, a report from a think-tank suggests.

 

Alternatives

As well as the VAT change, Reform said that changes to the personal allowance what also make the tax system simpler.

This would raise extra revenue of £8.3bn in 2011-12 and £8.4bn in 2012-13, compared with the government's plans which would raise £11.1bn in 2011-12 and £14.3bn in 2012-13, Reform said.

Under its suggestions, Reform calculated that households with incomes of less than £17,000 would, on average, see a tax reduction from lower National Insurance Contributions and protection from the broadening of VAT.

Households with incomes of over £17,000 would, on average, see a tax increase due to the broadening of VAT and, for higher rate taxpayers, replacement of personal allowances with a zero rate threshold. Individuals earning more than £105,000 would see a tax reduction.

WHY is the government NOT doing what every household and company is doing and cut ALL unnecessary expenditure - not to mention 'non-jobs' & Quango groups:

David Cameron cited recent examples of government waste including the Department for International Development spending £240,000 on Brazilian dancing and the Department for Children, Schools and Families spending £3 million on lavish new offices which included a massage room and a 'contemplation suite'.

He said: "I hold in my hand a golf ball – a government-sponsored golf ball – just one of many that they spent £12,000 on branding."

And hit out at the £4.5 billion a year spent on NHS bureaucracy. "They lose £3 billion – every year – in benefit fraud and error, to name a few.

It is total contempt for the tax payer to see money WASTED like this in such economic times and expect the 'average' tax payer to foot the bill.

 

The media keep banging on about a 'choice'! of only three possible political parties to vote for, come the next election Lab/Con/Lib!

- but there IS a forth option (and IMHO a very good protest vote, if nothing else) and that is UKIP to which a considerable number of disgruntled ex Tory MPs have recently migrated.

 

The total waste of tax payers money is so enormous and unsustainable, yet this current government do nothing to kerb the hemorrhaging!, but, instead, continue coming up with new 'ingenious' ways to spend even more!!!!!

 

This irresponsible way to run Britain's finances has got to stop, and quickly, before any more damage is done - with falling tax revenue (company closures/increased unemployment ect) Britain, very simply, HAS to tighten it's belt to survive - simply expecting the dwindling number of current tax payers to pay more tax is a ridiculous idea and will only serve to drive the country into a worsening situation.

 

It all boils down to simple economics of 'income in and expenditure out' - it's not rocket science Mr Brown! - if we can't afford it, you don't spend it!

Edited March 8, 2010 by WebFerret

[interestrateripoff]

Britain in final push to tone down EU hedge fund rules

 

Tighter regulations are set to hit City disproportionately hard, critics claim

 

 

• UK promises flexibility after Iceland shouts 'no'
  
• CBI: Budget must fix UK's public finances
  
• CBI calls for 'credible' economic plan in budget
  
• Firms urged to boost number of women in boardroom
  
• Watchdog probes Kraft over Cadbury buyout
  
• George leads with 100-day returns
  
• Make yourself plain, business chiefs urged
  

 

Agile, smaller enterprises are leading a revival in the industry

 

Excessive focus on big manufacturers is a distraction from the sector’s real innovators

 

• Stephen Timms: We're here for the times when a small business needs a lifeline
  
• Adventures in micro-business: 'Where can I get support to expand my business?'
  
• Virtual solution to a data dilemma
  
• Soapbox: ‘Look to collaborate with those who can do what you can’t’
  
• Roger Trapp: 'Even poets have been cited nio inspiring business founders & managers"
  
• Top of the fair trade fashion tree
  

 

Stephen King: Deflation... the next big surprise?

 

The UK is unusual today because, unlike many other countries, inflation is a little too high

 

 

• Hamish McRae: Manufacturing is growing, but don't expect it to rescue the economy
  
• Margareta Pagano: Going mutual paid off at Spain's top football clubs
  
• Helga Arnardóttir: We're fed up with Icesave but we'll vote no
  
• James Moore: The pension funds hoping for a miracle
  
• James Moore: Bet bookies really hate this idea
  

[interestrateripoff]

Breaking news:

 

• Germany's HSH Nordbank narrows losses in '09-paper - Reuters
  
• Euro zone faces two-class future after Greece - Reuters
  
• Russia Sberbank to seek Turkish bank stake-source - Reuters
  
• Northrop to skip U.S. tanker bid - sources - Reuters
  
• Euro slightly higher vs U.S. dollar in quiet trading - Reuters
  
• Russia Sberbank to bid for Turkish bank stake-source - Reuters
  
• FEMSA may be eyeing Canada, but analysts unsure - Reuters
  
• Lyondell restructuring plan includes Apollo role - Reuters
  
• Northrop to skip tanker bid, EADS mulls going solo - Reuters
  
• UK must erase taxpayer subsidy for banks-minister - Reuters
  

 

 

 

• Greece will come through crisis without bailout, IMF head says
   
   
  Dominique Strauss-Kahn said that other countries with large public deficits such as Spain and Portugal would not be forced into the same predicament as Greece. By Graeme Wearden 27 comments
   
  
  • Sarkozy pledges French support for Greece
    
  • Papandreou and Merkel meet over debt
    
  • Athens seeks expatriate Greeks bearing gifts
    
  • Business blog: What could Britain sell off?
    
  • Get up earlier, German tabloid tells Greeks
    

   

  [*] Takeover Panel to look into Kraft's closure of Cadbury factory

   

   

  US food conglomerate's promise to reverse closure of Somerset plant will be examined by inquiry into UK confectioner's takeover

   

  [*] State 'must take control of North Sea oil'

   

   

  Opec adviser Peter Odell says a state authority would ensure oil and gas firms work in national interest 19 comments

   

  [*] Waitrose growth spurt helps John Lewis

   

   

  Group expected to record half-yearly pre-tax profits of £315m, up from £280m, helped by growth at Waitrose

   

  [*] Prudential's expansion 'good for the UK'

   

   

  Pru's chief executive, Tidjane Thiam, dismisses critics of takeover of AIG's Asian arm as 'eurocentric' 3 comments

   

  • Ruth Sunderland: good luck to the Pru
    

   

  [*] Housing market faces lost decade

   

   

  Experts warn homeowners could face 10 years of stagnation as prices start to fall again 25 comments

   

  [*] BNFL memoir revives nuclear safety fears

   

   

  Harold Bolter's book, The Tenth Child, has been published just as Britain prepares to build new atomic power plants for the first time in 30 years 30 comments

   

 

 

• 
  Hard times for expats in the Florida sun
   
   
  British property owners have been badly burned by the housing slump but sunshine, theme parks and cheap prices could lure buyers back. By Andrew Clark 1 comment
   
  
  • US property market shows signs of life
    

   

  [*] Iceland 'will take years to clear its debts'

   

   

  Darling's comments came after 93% of Icelanders reject deal to repay money lent by British and Dutch 22 comments

   

  • How the Icesave crisis left British deposits in limbo
    
  • Q&A: Icesave crisis
    
  • Simon Bowers: There's a lot of populist anger
    

   

  [*] Taxpayers face £400m bill for tube PPP

   

   

  London Underground says Tubes Lines must find cash for upgrades or operator will be forced to make cuts

   

  [*] Hopes of strike deal fade as British Airways queries Unite proposals

   

   

  BA appears not to have accepted union's offer over pay freeze and new cabin crew, almost ending hopes of a breakthrough

   

 

 

• More business news
   
   
  
  • Designer Cath Kidston in talks over £100m sale
     
     
     
    
  • CBI calls for fast cuts in public spending
     
     
     
    
  • Dyson urges Tories to keep R&D credits
     
     
     
    
  • John Hargreaves to trouser £250m
     
     
     
    
  • Red Knights ponder their opening gambit for Man Utd
     
     
     
    
  • Unite ready to agree to pay freeze at BA
     
     
     
    

[interestrateripoff]

Royal Mail reaches deal with postal workers

 

Long-running dispute comes to an end, as Communication Workers Union agrees 6.9 per cent pay rise over three years 6 Comments

 

• National postal strike looms for Christmas
  

 

• Mandelson accused on picket line
  

 

Eon joins rivals to cut gas prices by 6 per cent

 

Three of Britain's 'big six' have reduced home tarrifs but bills remain more than 30% higher compared to January 2008 9 Comments

 

• Energy giant accused of ‘token gesture’ price cut
  

 

• First Utility sparks energy price war
  

 

Inquiry into Kraft's broken Cadbury pledge

 

Takeover Panel to examine if US food group misled investors when it promised to keep Somerdale factory open 17 Comments

 

• Mandelson seeks rewrite of takeover rules
  

 

• The bitter taste of bid politics
  

 

Pru speeds up listing against deal backlash

 

Insurer will allow overseas investors to take part in the record $21bn rights issue to finance the acquisition of AIA

 

• COMMENT: rocks in the road for Pru
  

 

• Prudential puts its case for AIA takeover
  

 

 

Shell and PetroChina eye £2bn bid for Arrow

 

Energy giants join to buy the Australian natural gas producer, sending shares in the group up by nearly 50 per cent

 

No encore for Elgar as £20 image disappears

 

Notes bearing English composer's face will cease to be legal from June, to be replaced by Scotland's Adam Smith

 

Bovis to focus cash on buying land instead of selling homes

 

Housebuilder to spend on plots, rather than selling properties, as it expects housing market recovery to flatten out

 

• Bovis homes in on £150m refinancing
  

 

• Bovis to raise land value on market rebound
  

Santander leads race for £4bn RBS branches

 

The Spanish bank examines the old Williams & Glyn’s branch network which would require additional funding of £3bn

Lloyds bets on management to restore De Vere value

 

Bank refinances Alternative Hotel Group via £650 million debt-for-equity swap and pledges cash for expansion

 

 

Toyota chief promises to build better cars

 

Akio Toyoda meets with Japan's Prime Minister ahead of a make or break US experiment on vehicle electronics

 

 

Essar plans London stock market listing

 

Indian industrial group is considering combining its multiple industrial interests to raise as much as $3 billion

 

• Essar bids for British Shell oil refinery
  

 

• Vodafone asks for $2bn tax feud extension
  

Europe seeks monetary fund to aid stability

 

Sarkozy says that eurozone will aid Greece if it requires assistance dealing with its financial crisis

 

• The pound will rise as the euro heads south
  

 

• Merkel hits at speculators over Greece
  

AIG closes on $15bn sale of Alico to MetLife

 

American Insurance Group set to sell second international division to US rival only a week after $35.5bn sale of AIA

 

 

The pound will rise as the euro heads south

 

Political uncertainty is holding back sterling. But it’s a sure thing that the eurozone has a rough time ahead

 

What next for Beijing bubble?

 

Observers see China's GDP forecast as deliberately low. Possible underplaying of its inflation target is more worrying

[interestrateripoff]

[/url]

 

China could ease dollar currency peg says 'Dr Doom'

 

Respected economist Professor Nouriel Roubini warns two-year currency peg could be eased as soon as next month.

 

British banks given a year's grace on liquidity

 

Britain's banks have been given a period of grace before strict new rules on liquidity are introduced that will cost more than £2bn and potentially derail economic growth.

 

Europe may consider IMF-style institution

 

Germany's finance minister suggests a European Monetary Fund may be needed after Greek crisis.

 

The sun is setting on Japan's era of cheap debt

 

 

 

 

McDonald's serves up growth in Asia

 

 

 

 

Chinese demand spurs Shell bid for Arrow's coal gas

 

 

 

 

AIG to sell foreign life insurance arm for $15.5bn

 

 

 

 

Snow gives Stagecoach's bus wing £5m profits chill

 

 

 

 

Michael Farmer on why he gives £2.3m to the Tories

 

 

 

• A year on and QE is paused – but when will it return?
  

 

• China intent on being the fastest swimmer in the new world of unconventional gas
  

 

 

• Why Britain should be glad not to have Japan's problems
  

 

Banknotes: facts and figures

 

 

 

Elgar £20 note 'not legal tender'

 

 

 

 

Unemployed workers over 50 to receive help under £10m programme

 

 

 

 

UK's economic recovery 'is under threat'

 

 

 

 

Icelanders reject plan to repay £3.5bn

[interestrateripoff]

Deal agreed in Royal Mail dispute

A deal is reached in the long-running dispute at Royal Mail over modernising the postal service which led to strikes last year.

Royal Mail's woes in figures

An insider's view on disputes

Royal Mail strikes are called off

Complaint made over Kraft closure

 

The Takeover Panel receives a complaint over assurances given by Kraft that it would save a Cadbury plant it is now closing.

 

E.On is latest to cut gas prices

 

E.on says it will cut gas bills by 6% from 31 March, saving almost two million customers an average of £42 a year

 

 

OTHER TOP BUSINESS STORIES

Aer Lingus delays profit figures

 

Business bodies urge faster cuts

 

Portugal unveils austerity plans

 

Firms 'miss out on female talent'

 

AIG selling second overseas unit

 

Brussels to mull 'European IMF'

 

Sex and the state-controlled banks

 

MORE FROM BUSINESS

Bovis turns profit on thin sales

 

Mortgages 'more easily available'

 

India's Essar 'planning UK float'

 

Civil servants on strike over pay

 

Shell in joint bid for gas firm

 

Building societies discuss merger

 

Fujitsu row over boss's departure

 

Iceland rejects bank payback plan

 

Economy 'to grow more slowly'

 

Virgin Money to charge customers

 

Fixed-rate energy deals 'unfair'

 

Man Utd suitors 'won't overpay'

 

Greece 'not seeking finance aid'

 

Metro Bank gets official go-ahead

 

YOUR MONEY

Think-tank calls for VAT change

 

Scottish and Southern cuts bills

 

UK house prices 'dropped by 1.5%'

 

ECONOMY

Internet access 'a human right'

 

France offers support to Greece

 

US borrowing rises unexpectedly

 

COMPANIES

Probe halts pub development plan

 

Bankers in demand says jobs firm

 

WPP profits hit by 'brutal' 2009