BAA takes £24m hit from big freeze

first_img whatsapp Share John Dunne whatsapp Wednesday 12 January 2011 3:25 am BAA expects to take a hit of around £24Mm from last month’s big freeze, which paralysed many of its airports and dented passenger numbers in the week before Christmas.Passenger traffic at BAA airports fell 10.9 per cent in December year-on-year after last month’s heavy snowfall wreaked havoc, especially at its biggest airport, London’s Heathrow, where the closure of one of its two runways for several days caused widespread travel disruption.BAA, which is majority owned by Spain’s Ferrovial, on Wednesday said 7.2m passengers flew from its UK airports last month compared to eight million in December 2009.The company said 4.8 million passengers flew from Heathrow, Europe’s busiest airport, in December – 9.5 per cent fewer than the same month a year ago.Heathrow was part closed for several days in the run up to Christmas after Northern Europe’s big freeze hit the travel plans of thousands as airports across Europe struggled to cope with snow and sub-zero temperatures.“The cost of any disruption to BAA’s airports is significant and a strong financial incentive for us to continue to make Heathrow more resilient,” BAA’s Chief Executive Colin Matthews said in a statement.BAA has been widely criticised for its slow response to the crisis and Virgin Atlantic on Monday said it would withhold landing and parking fees it pays to BAA until it explains why a day’s snowfall left thousands of air passengers stranded in the week before Christmas.The results of an internal BAA inquiry – headed by non-executive director Prof David Begg – into the disruption, due to be published in March. German airline Lufthansa and its UK subsidiary BMI, are also pressing BAA to compensate airlines hit by disruption at Heathrow.British Airways last month said it expected to take a £50m hit from the disruption. BAA takes £24m hit from big freeze Show Comments ▼ Read This Next’Pose’ Creator Steven Canals on Life After His Groundbreaking Show: ‘I’mThe Wrap’The Boys’ Star Aya Cash Took Inspiration From YouTube, TikTok and SteveThe WrapHow HGTV’s ‘Renovation Island’ Changed Bryan and Sarah Baeumler’sThe Wrap’Bridgerton’ Stars Phoebe Dynevor and Nicola Coughlan on Daphne andThe WrapBest Wine Gifts & Wine Accessories at Every PriceGayot’Hitman’s Bodyguard’s Wife’ Earns $17 Million 5-Day Opening as Box OfficeThe WrapFox News’ Mark Levin Says Capitol Riot Suspects ‘Would Be Treated Better’The WrapEverything We Know, or Think We Know, About the Time-Keepers on ‘Loki’The Wrap’The Crown’: What Went Into Finding Princess Diana and Margaret ThatcherThe Wrap Tags: NULLlast_img read more

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ING seeks sale of real estate arm

first_imgMonday 17 January 2011 9:16 pm Tags: NULL whatsapp Share Show Comments ▼ ING said yesterday it was in discussions with several parties on a possible sale of parts of its real estate arm, whose property portfolio is valued at over €65bn (£54.2bn). These talks may lead to one or more transactions, ING said. A source said that US property group CB Richard Ellis was in talks to buy ING Real Estate Investment Management in a deal that would value it at about €1bn. KCS-content whatsapp Read This NextRicky Schroder Calls Foo Fighters’ Dave Grohl ‘Ignorant Punk’ forThe WrapCNN’s Brian Stelter Draws Criticism for Asking Jen Psaki: ‘What Does theThe WrapDid Donald Trump Wear His Pants Backwards? Kriss Kross Memes Have AlreadyThe WrapPink Floyd’s Roger Waters Denies Zuckerberg’s Request to Use Song in Ad:The Wrap’Sex and the City’ Sequel Series at HBO Max Adds 4 More ReturningThe WrapHarvey Weinstein to Be Extradited to California to Face Sexual AssaultThe WrapThe Truth About Bottled Water – Get the Facts on Drinking Bottled WaterGayot’The View’: Meghan McCain Calls VP Kamala Harris a ‘Moron’ for BorderThe Wrap’Black Widow’ First Reactions: ‘This Is Like the MCU’s Bond Movie’The Wrap ING seeks sale of real estate arm last_img read more

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What the other papers say this morning

first_img Show Comments ▼ whatsapp FINANCIAL TIMESMOD FACES FRESH CRISIS OVER ITS FUNDINGSenior figures in the Ministry of Defence are warning of a possible reopening of last October’s Strategic Defence and Security Review because the MoD lacks the funds needed to provide the military capability demanded by the government for 2020. The department has discovered that it needs to find at least £1bn a year of additional cuts if they are to meet the Treasury’s targets.PENSION CORP’S MOVE SET TO FREE CAPITALPension Corporation has offloaded £500m worth of risks attached to pensioners living longer than expected as it looks to free capital so it can compete for new business. The company, one of a handful of businesses set up to take on UK defined benefit schemes from company pension funds, has been trying to raise up to £600m in fresh capital since 2009.TWO FOUND GUILTY IN TOREX FRAUD CASETwo former Torex Retail executives have been convicted of defrauding the shareholders of the former AIM-quoted group. Edwin Dayan and Christopher Ford were directors ar the retail company’s subsidiary XN Checkout and caused more than £1.65m in ficticious profits to be recognised in the firm’s accounts.CITY ANALYST CALLS FOR TESCO TO START PRICE WARA leading City analyst has called for the incoming chief executive of Tesco to embark on a massive UK price war, to cripple the competition and stop Tesco’s rivals opening a swathe of new stores. Dave McCarthy, analyst at Evolution Securities, said Tesco should “reposition on UK pricing” under Philip Clarke, who becomes group chief executive in February.THE TIMESFRIENDS IN NEED: MUSIC CHIEFS LINE UP TO HAIL UNIQUE HMVThe music industry has come out fighting for HMV after supply fears sent the company’s shares to a new low. Seven leading executives, including the heads of the four largest record labels, have written to The Times pledging to support HMV through its recent difficulties and praising its contribution to the music industry.WIND POWER BRINGS NEW JOBS TO HUMBERSIDEHull’s prospects of becoming the centre of Britain’s wind energy industry will move a step closer today with an announcement from Siemens that it plans to build an £80m wind turbine factory in the city. Up to 700 jobs will be created as part of the German manufacturer’s choice for its new plant to make offshore turbines.The Daily TelegraphUS TRADER HETCO DRIVES UP OIL PRICE An American trading group reportedly building up a huge physical position in North Sea oil has driven London Brent prices above $98 a barrel. Hetco, which is part-owned by US oil and gas group Hess Corp, was said to have taken control of eight North Sea Forties oil shipments and two Brent cargoes – and it is believed to be in the market for more. SENIOR GOLDMAN SACHS WORKER LEAVES AFTER INTERNAL BREACHOne of Goldman Sachs’ most senior London-based staff has left the bank just days before the firm is due to pay out billions of pounds in staff bonuses. Kevin Connors, co-head of global foreign exchange sales for G10 currencies, left the bank last week for allegedly breaking unspecified internal rules.THE WALL STREET JOURNALNOKIA CANCELS US LAUNCH OF X7 PHONE In another setback for Nokia Corp, the Finnish mobile-phone giant has canceled the US release of a smartphone that was slated to launch exclusively this year with AT&T, people familiar with the situation said. Nokia had intended to debut the touchscreen phone, dubbed the X7, in conjunction with AT&T ahead of the Mobile World Congress trade conference next month.ALFA SEEKS TO CALM VIMPELCOM SPAT The chief executive of Russian conglomerate Alfa attempted yesterday to calm tensions that have flared between it and Telenor, a rival shareholder in VimpelCom, over a revised deal to merge the Russian mobile operator with the telecom assets of an Egyptian billionaire. Share What the other papers say this morning KCS-content whatsapp Wednesday 19 January 2011 8:54 pm by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItBetterBe20 Stunning Female AthletesBetterBeAlphaCute30 Rules That All “Hells Angels” Have To FollowAlphaCuteDefinitionDesi Arnaz Kept This Hidden Throughout The Filming of ‘I Love Lucy’DefinitionTaonga: The Island FarmThe Most Relaxing Farm Game of 2021. No InstallTaonga: The Island Farmthedelite.comNetflix Cancellations And Renewals: The Full List For 2021thedelite.com Tags: NULLlast_img read more

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More merger mania as NYSE enters talks

first_img EXCHANGES worldwide are being swept up in an accelerating wave of consolidation after Deutsche Börse yesterday afternoon revealed it was in advanced talks with NYSE Euronext to create the world’s largest exchanges operator by revenues. Coming just hours after the London Stock Exchange (LSE) and Canada’s TMX Group said they would join forces to create the world’s largest stock exchange by number of listings, the merger frenzy indicates that consolidation of the bourses has begun in earnest.All exchanges are battling to survive as rapid changes in technology and increased competition from new types of trading platforms steal their former monopoly.NYSE Euronext and Deutsche Börse said the combined company would “create an important counterweight to the proliferation of alternative trading venues that operate with less transparency and far fewer regulatory requirements than [our companies].”While the LSE and Toronto-based exchange TMX Group yesterday billed its £4.3bn deal as a “merger of equals”.Steve Grob, director of group strategy at Fidessa, which provides trading software to stock exchanges, said the news was “not too much of a surprise.”“The fragmentation of trading means the dominant position of any national stock exchange is being constantly eroded by alternative platforms,” he said. Grob said a merger would raise question marks over the EU’s markets in financial instruments directive. “The point of MiFID was to reduce the monopolistic power of national stock exchanges – but the way exchanges are fighting back is to merge to realise economies of scale,” Grob added.MARK WARHAMBARCLAYS CAPITALMARK Warham led Barclays Capital as joint lead financial advisers to the LSE.The managing director and co-head of M&A previously served as director general of the Takeover Panel.Morgan Stanley’s joint lead advisory team included Christopher Carter, Simon Robey,Matthew Jarman, Max Mesney and Dougal MacDonald.RBC Capital Markets was also a financial adviser to the LSE, headed by Mike Carter and Josh Critchley in London.PHILIP NOBLETBOA MERRILL LYNCHPHILIP Noblet and Matthew Watkins are leading the Bank of America Merrill Lynch team as joint lead financial advisers to TMX with Bank of Montreal Capital Markets.Noblet also advised on last year’s Korea National Oil Corporation hostile takeover of Scottish energy firm Dana Petroleum.He is co-head of EMEA mergers and acquisitions.Andre Hidi and Ariel Walsh led the Bank of Montreal team. whatsapp More merger mania as NYSE enters talks More From Our Partners Mark Eaton, former NBA All-Star, dead at 64nypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgMatt Gaetz swindled by ‘malicious actors’ in $155K boat sale boondogglenypost.comRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.org Wednesday 9 February 2011 8:17 pm Sharecenter_img Tags: NULL by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryPeople TodayNewborn’s Strange Behavior Troubles Mom, 40 Years Later She Finds The Reason Behind ItPeople TodayMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItZen HeraldNASA’s Voyager 2 Has Entered Deep Space – And It Brought Scientists To Their KneesZen HeraldBetterBe20 Stunning Female AthletesBetterBeWanderoamIdentical Twins Marry Identical Twins – But Then The Doctor Says, “STOP”Wanderoam Show Comments ▼ KCS-content whatsapplast_img read more

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BHP and Anglo set for record results

first_img Read This Next’A Quiet Place Part II’ Sets Pandemic Record in Debut WeekendFamily ProofHiking Gadgets: Amazon Deals Perfect For Your Next AdventureFamily ProofAmazon roars for MGM’s lion, paying $8.45 billion for studio behind JamesFamily ProofYoga for Beginners: 3 Different Types of Yoga You Should TryFamily ProofIndian Spiced Vegetable Nuggets: Recipes Worth CookingFamily ProofBack on the Rails for Summer New York to New Orleans, Savannah and MiamiFamily ProofChicken Bao: Delicious Recipes Worth CookingFamily ProofCheese Crostini: Delicious Recipes Worth CookingFamily ProofNew England Patriots’ Cam Newton says no extra motivation from Mac Jones’Sportsnaut Tags: NULL Show Comments ▼ BHP BILLITON is expected to best its mining rivals with around $15bn (£9.4bn) profit when it reports half-year results on Wednesday. Expectations are high for the Anglo-Australian miner after bumper results from Rio Tinto and Xstrata last week on the back of soaring commodity prices. Analysts at UBS have forecast underlying earnings of $10.7bn, with some cost inflation offset by booming iron ore prices. The analysts are also looking for an update on the impact of the storms in Queensland, Australia, which brought the area to a standstill before Christmas. Other industry-watchers are expecting even higher profits, as the price of iron ore, copper and zinc have all made massive gains in 2010. The company is on track to easily surpass its previous record annual profit of $19.6bn when it reports its full-year results in June.Reports yesterday suggested that BHP could also beef up its share buyback programme to around $10bn in an effort to smooth relations with shareholders, who have watched the collapse of three blockbuster deals in the last couple of years and are clamouring for better returns. BHP’s takeover of Rio Tinto fell through in 2008, and last year the Canadian government blocked BHP’s $40bn takeover of Potash Corp. An iron ore joint venture with Rio Tinto was also shelved last year. BHP will be under pressure from investors, who have seen Rio Tinto raise its buyback to $5bn and double its dividend pay-outs last week.However, analysts are also expecting capital expenditure of more than $15bn during 2011, which could eat into the cash set aside for shareholders.Anglo American, which reports its full year results on Friday, is expected to double its net profit to $5bn.Analysts are expecting a bullish outlook on the commodities markets from chief executive Cynthia Carroll, following on from a 34 per cent rise in profit last week from diamond firm De Beers, which is 45 per cent owned by Anglo. whatsapp BHP and Anglo set for record results Sunday 13 February 2011 10:28 pm whatsapp KCS-content Sharelast_img read more

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TOP LAWYERS CALL FOR QUOTAS TO BOOST WOMEN IN THE BOARDROOM

first_imgSunday 13 March 2011 9:59 pm KCS-content SOME of the UK’s most high-powered female lawyers convened at the Southbank Centre on Saturday afternoon to debate the “chronic inequality” at City law firms.The panel, chaired by Denise Jagger from legal practice Eversheds, which organised the event, contained some of the most high-powered women in the industry (pictured right), including Lucy Scott-Moncrieff, deputy vice president of the Law Society; Dame Janet Gaymer, former senior partner of Simmons & Simmons; and Kim Hollis QC, incoming chair of the Bar Council’s Equality and Diversity Committee.The fearsome legal eagles didn’t mince their words, reminding a rapt audience of high-flying female contemporaries that just 15 per cent of High Court judges are women, and only one female judge sits on the Supreme Court.“It’s a disgrace,” thundered Ingrid Simler QC, current chair of the Bar Council’s Diversity and Equality Committee. “The only way to address [the inequality] is by using quotas. If that means women getting jobs because they are women then so be it. Men have been getting appointed because they are men for years!”That’s one step ahead of the coalition government’s Equality Act, which will allow City bosses to discriminate positively towards minorities from next month.However, the majority of the panel were in favour – if only to prevent top lawyers jumping ship due to City firms’ “long hours culture”. Sandie Okoro, general counsel at Barings Asset Management, noted: “Many good female lawyers are leaving law firms before achieving partnership and heading for industry, where diversity has progressed further.”DIFFERENT CLASSHAVE you ever wondered how Secrets, London’s largest table-dancing chain, got its name? Well, as owner Stephen Less told The Capitalist, it is because he was watching the Mike Leigh film Secrets & Lies in the kitchen of his Hammersmith home when his business partner rang asking him to confirm the name of the enterprise.So all eyes should start scanning the TV schedules for clues as to what Less will call his next entertainment launch: a cocktail bar for City boys that will attract a “classier” crowd than his table-dancing haunts.Less has yet to negotiate a deal for the venue, set to open next year, but he is looking at four locations in the West End and two round the corner from the Bank of England – although he has ruled out 14 Cornhill, home of Green’s oyster bar and Aviva Investors.“There are a few reasons why that wouldn’t work for me,” he said. One of them being the fact the building is owned by Libya’s sovereign wealth fund, the Libyan Investment Authority, and Less’s new club would become a tenant of Gadaffi? “I couldn’t possibly comment.”WHO DARES WINSTHE City and horse racing have long enjoyed a close relationship, but today the two worlds moved even closer with the launch of the first-ever tie-up between an old-school bookmaker and a financial spread-better.Bringing the Square Mile to Mayfair is Fitzdares Financial Spreads, a partnership between private bookmaker Fitzdares and Financial World Spreads that will allow Fitzdares’ members to bet on 3,000 City markets alongside the existing spread-betting and sports services. “This is all about enabling those with a taste for risk to exercise it wherever they want,” said Conor Foley, chief executive of World Spreads, on the “one-stop betting environment”. Cheltenham will never be the same again. whatsapp TOP LAWYERS CALL FOR QUOTAS TO BOOST WOMEN IN THE BOARDROOM center_img whatsapp Tags: NULL Show Comments ▼ Sharelast_img read more

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Dixons warns on profit as UK trade worsens

first_img The UK’s No.1 electricals retailer Dixons has issued a profit warning, becoming the latest store group to report worsening trade as shoppers are hit by rising prices and government spending cuts.Dixons, which runs the Currys and PC World chains, said profit before tax and one-off items for the year ending April 30 was likely to be around £85m.Analysts had been expecting a figure closer to £105m, according to Thomson Reuters I/B/E/S Estimates.“Consumer confidence across a number of our markets has deteriorated, particularly in the UK & Ireland,” Dixons said.“We expect it to continue to be (fragile) through much of 2011.”Dixons said it was considering exiting a tough Spanish market and would reduce capital spending to no more than £160m next financial year.It will also look at making additional cost savings. Show Comments ▼ alison.lock Share More From Our Partners Florida woman allegedly crashes children’s birthday party, rapes teennypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgUK teen died on school trip after teachers allegedly refused her pleasnypost.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgKiller drone ‘hunted down a human target’ without being told tonypost.comI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.comMark Eaton, former NBA All-Star, dead at 64nypost.comSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.com‘Neighbor from hell’ faces new charges after scaring off home buyersnypost.com980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comBill Gates reportedly hoped Jeffrey Epstein would help him win a Nobelnypost.comSidney Crosby, Alex Ovechkin are graying and frayingnypost.comInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.com whatsapp by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastMoneyPailShe Was Famous, Now She Works In {State}MoneyPailSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBetterBe20 Stunning Female AthletesBetterBeDrivepedia20 Of The Most Underrated Vintage CarsDrivepediaPeople TodayNewborn’s Strange Behavior Troubles Mom, 40 Years Later She Finds The Reason Behind ItPeople TodayElite HeraldExperts Discover Girl Born From Two Different SpeciesElite Heraldautooverload.comDeclassified Vietnam War Photos The Public Wasn’t Meant To Seeautooverload.comcenter_img whatsapp Wednesday 30 March 2011 2:34 am Dixons warns on profit as UK trade worsens Tags: NULLlast_img read more

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Rush for safety sees gold surge

first_img by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastMoneyPailShe Was Famous, Now She Works In {State}MoneyPailSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesDrivepedia20 Of The Most Underrated Vintage CarsDrivepediaZen HeraldThe Truth About Why ’40s Actor John Wayne Didn’t Serve In WWII Has Come To LightZen HeraldBetterBeDrones Capture Images No One Was Suppose to SeeBetterBeElite HeraldExperts Discover Girl Born From Two Different SpeciesElite Heraldautooverload.comDeclassified Vietnam War Photos The Public Wasn’t Meant To Seeautooverload.com Rush for safety sees gold surge Read This NextRicky Schroder Calls Foo Fighters’ Dave Grohl ‘Ignorant Punk’ forThe WrapCNN’s Brian Stelter Draws Criticism for Asking Jen Psaki: ‘What Does theThe WrapDid Donald Trump Wear His Pants Backwards? Kriss Kross Memes Have AlreadyThe WrapPink Floyd’s Roger Waters Denies Zuckerberg’s Request to Use Song in Ad:The Wrap2 HFPA Members Resign Citing a Culture of ‘Corruption and Verbal Abuse’The WrapHarvey Weinstein to Be Extradited to California to Face Sexual AssaultThe WrapNew England Patriots’ Cam Newton says no extra motivation from Mac Jones’Sportsnaut’The View’: Meghan McCain Calls VP Kamala Harris a ‘Moron’ for BorderThe Wrap’Small Axe’: Behind the Music Everyone Grooved On in Steve McQueen’sThe Wrap Tuesday 5 April 2011 8:48 pm Share KCS-content PRICES of spot gold notched a record high yesterday while Brent crude ended above $122 a barrel, at a 2-1/2 year high, as Middle East unrest and fears over Portugal fuelled a drive for safety.Brent crude prices rose as worries about supply from oil-producing countries in Africa and the Middle East overshadowed China’s rate hike. Brent futures settled up $1.16 at $122.22 a barrel, while US crude futures were down 32 cents at $108.15. The oil price rise fed inflation fears, supporting gold prices. Spot gold rose to above $1,450 an ounce. center_img whatsapp whatsapp Tags: NULL Show Comments ▼last_img read more

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One size fits all Eurozone is set for total failure

first_imgThursday 7 April 2011 9:02 pm Show Comments ▼ Tags: NULL One size fits all Eurozone is set for total failure WHAT a horrible mess. Portugal is broke and begging for a bailout, yet Jean-Claude Trichet, the European Central Bank’s (ECB) president, chose yesterday to hike interest rates by a quarter point. It hasn’t exactly been a good week for the Eurozone, which is facing a slow-motion, ever worsening existential crisis that could end up destroying it and triggering another recession. While the euro was always a flawed idea, its uncontrolled implosion would not be good news for the UK, which would get caught up in the chaos. Already, the UK government’s liabilities could hit £4bn in a Portuguese bail-out, including additional UK IMF contributions. While UK taxpayers are tightening their belts, they are now being asked to bail-out their Portuguese counterparts, who have refused to push through an austerity package. This is wrong and should be resisted. Given the fragile state of the region, why did Trichet hike rates? Simple: the ECB’s mission is to stop inflation. The March estimate showed Eurozone prices increasing by 2.6 per cent in March, well ahead of the ECB’s inflation target. The ECB was especially worried about evidence of upward pressure on German wages. Germany’s economy is booming, with GDP increasing 3.5 per cent in 2010. Yet the Irish economy contracted by 1.6 per cent in the final quarter of 2010 and is forecast to grow by less than one per cent this year. The outlook for Greece is worse: GDP shrunk by 3.9 per cent last year. The situation in Portugal is grim. It makes sense to hike rates in Germany. But it makes no sense to do so in Portugal or Ireland. Because of the euro’s one size fits all interest rates, the periphery countries are being sacrificed. The creation of the euro also helped contribute to the bubble. During the noughties, the yield premium to compensate for the risk of investing in euro-denominated bonds issued by a weak country compared with those issued by a strong country kept on narrowing. Investors started to believe that there was a single European government, and that this meant than any debt denominated in euros was safe. It was thus claimed that the single currency had achieved a beautiful free lunch: lower interest rates for all countries, without damaging the credit of strong countries such as Germany. But the low rates in periphery countries, including Spain and Ireland, helped fuel property bubbles. They certainly explain most of Ireland’s problems. In the case of Portugal, as well as Italy, the issue is labour costs: those countries have priced themselves out of global markets. The only solution is to do what Germany did over the past 15 years and to tighten their belts, reduce their wage costs and boost their productivity. In the past, this could be achieved by devaluing (as the UK is doing at the present time) but membership of the euro rules that out.The last thing we need is a temporary, bridge loan to Portugal. This would be a recipe for disaster: no conditions could credibly be imposed given the temporary nature of Portugal’s government, and it would be seen as the necessary precursor to a larger financial package. By increasing the amount of debt Portugal is taking on, it would bolster the moral hazard of the whole exercise without solving any problems. The ECB’s purchases of junk sovereign bonds to keep yields under control is equally dangerous: it has already bought €77bn but any haircut would trigger massive losses for the ECB, jeopardising its solvency and requiring additional equity from governments. This would likely trigger a constitutional crisis and force another treaty. There is only one viable way forward. The UK should refuse to bail out Portugal. The Eurozone should acknowledge that Portugal, Greece and Ireland stand no hope of repaying all their debt. A plan should be devised to allow a controlled, gradual write-off of a large chunk of the debt. Financial institutions ought to be given time to raise more capital; in extremis, the authorities should impose compulsory debt to equity swaps, triggering bail-ins and recapitalising without requiring taxpayers’ cash. The weaker Eurozone countries should then be given a choice: either they push through radical measures to liberalise their economies, balance their budgets and boost their competitiveness – or they are kicked out of the euro. It is high time we stopped throwing good money after [email protected] me on Twitter: @allisterheath whatsappcenter_img KCS-content by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastHistorical GeniusHe Was The Smartest Man Who Ever Lived – But He Led A Miserable LifeHistorical GeniusMoneyPailShe Was An Actress, Now She Works In ScottsdaleMoneyPailCrawl Space RepairFoundation Repair Cost In Scottsdale May Surprise YouCrawl Space RepairAmolatinaChat, Meet & Date Latin Singles OnlineAmolatinaCrowdy FanGroom’s Mother Shows Up To The Wedding Wearing The UnthinkableCrowdy FanCombat Siege GamePlay this Game for 1 Minute and see why everyone is addicted.Combat Siege GameSenior Living | Search AdsNew Senior Apartments Coming Nearby Scottsdale (Take a Look at The Prices)Senior Living | Search Ads Share More From Our Partners Native American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comUK teen died on school trip after teachers allegedly refused her pleasnypost.com whatsapplast_img read more

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Asos sees overseas growth fuel profit

first_imgWednesday 13 April 2011 8:11 pm Asos sees overseas growth fuel profit ONLINE fashion retailer Asos yesterday said its sales were “flying” in overseas markets as the web defies the downturn on the high street. The firm said retail sales increased 70 per cent to £93.4m in the three months to 31 March, its financial fourth-quarter.That compares with a rise of 59 per cent in its third-quarter.UK sales increased 24 per cent to £44.9m, while international sales soared 161 per cent to £48.4m, helped by the introduction of United States, French and German websites in October 2010.Profits for the year will now come in at the top end of market expectations.Analysts had pencilled in pre-tax profit of between £24m and £29m. Total sales across the group rose 63 per cent to £97m in the quarter.Chief executive Nick Roberston said: “Sales are flying in Australia and international growth is impressive. “Online retail is the future, there is no doubt about that.”He said the company would launch operations in three to five new overseas markets in the next year as the company remained on the expansion trail. Asos is thriving on the US, Germany and France, with the UK proving a more difficult market as consumers rein in their spending. Read This NextRicky Schroder Calls Foo Fighters’ Dave Grohl ‘Ignorant Punk’ forThe WrapCNN’s Brian Stelter Draws Criticism for Asking Jen Psaki: ‘What Does theThe WrapPink Floyd’s Roger Waters Denies Zuckerberg’s Request to Use Song in Ad:The WrapDid Donald Trump Wear His Pants Backwards? Kriss Kross Memes Have AlreadyThe Wrap2 HFPA Members Resign Citing a Culture of ‘Corruption and Verbal Abuse’The Wrap’Small Axe’: Behind the Music Everyone Grooved On in Steve McQueen’sThe WrapHarvey Weinstein to Be Extradited to California to Face Sexual AssaultThe Wrap’Black Widow’ First Reactions: ‘This Is Like the MCU’s Bond Movie’The Wrap’The View’: Meghan McCain Calls VP Kamala Harris a ‘Moron’ for BorderThe Wrap whatsapp whatsapp KCS-content Share Show Comments ▼ Tags: NULLlast_img read more

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