Eurozone crisis: what if Greece leaves the single currency

Thu, 24 May 2012 11:20:49 +0200

Collapsing banks, soaring inflation, but possible salvation – three experts give their view on what could await Greeks

A woman exits a one euro shop in central Athens. Greece faced the prospect of fresh polls after political leaders again failed to form a new government. Photograph: Louisa Gouliamaki/AFP/Getty Images

Europe's ruling elite is now openly talking about whether Greece might leave the euro, breaking a two and a half year taboo. German chancellor Angela Merkel and EU president José Manuel Barroso were among those saying that if Athens could not abide by the rules, Greece would have to leave. We asked three experts to analyse the potential consequences

Vince Cable signals demise of Tory plan to make sacking workers easier

Wed, 23 May 2012 10:21:16 +0200

Business secretary attacks Conservative party donor Adrian Beecroft's employment reform plan

Labour's Chuka Umunna, who says the proposals by Adrian Beecroft are 'a complete and utter shambles'. Photograph: Richard Saker for the Observer

Vince Cable all but confirmed that controversial proposals to allow employers to fire workers at will are to be ditched by the government.

As Tory sources confirmed that David Cameron was preparing to shelve the plans, Cable attacked the proposals by the Conservative party donor Adrian Beecroft.

"British workers are very co-operative and they are very flexible," the business secretary told the BBC. "So we don't need to scare the wits out of workers with threats to dismiss...

University graduates embark on earlier chase for jobs

Tue, 22 May 2012 10:59:07 +0200

Desire to take time off is at an all-time low as final-year students send off record number of job applications

Students at the London School of Economics have been most successful in clinching jobs. Photograph: James Barr for the Guardian

The graduate class of 2012 has made a record number of applications and begun looking for jobs earlier than ever, a survey of over 17,000 final-year students shows.

Applications for graduate jobs in investment banking have returned to their highest level since the start of the credit crunch in 2008, the High Fliers Research survey finds.

Desire to take time off or go for a gap year is at an all-time low – just 12% plan to do this. The survey, of students at 30 universities,...

10 Tips on Writing an Effective Cover Letter

Mon, 21 May 2012 16:38:05 +0200

The cover letter is an essential element in your job application. On this article, we discuss ten valuable tips on how you can write a more effective cover letter:

1. Take advantage of connections. If you have a friend who is directly connected with the company you are applying for, it’s a good idea to mention this in your cover letter. A potential employer is most likely to give you a chance for an interview and even hire you if you have a mutual connection.

2. Use a personal name. Your cover letter should be addressed to the name of the manager or the company owner. Instead of using “To Whom it May Concern” in you salutation, your cover letter would make a bigger impact if you will address the hiring officer by...

10 tips for home-workers

Fri, 18 May 2012 14:18:53 +0200

Are you one of the civil servants being told to work from home during the Olympics? If so, you'll need to follow these rules for getting the most out of your new working environment

Seven weeks of this? There must be an alternative. Photograph: Alamy

The news that up to 40% of Whitehall staff will be permitted to work from home for seven weeks this summer – as part of a bid to ease transport congestion during the Olympics – has been greeted with derision by the private sector. But those of us who work from home full time know it's not as easy as it appears to the people who try to ring us when there's tennis on. It requires organisation, self discipline and, above...

U.K. Unemployment Unexpectedly Falls in Stabilization Sign

Wed, 16 May 2012 11:24:33 +0200

U.K. unemployment unexpectedly fell in April as companies created jobs, providing further evidence that the labor market is stabilizing.

Photographer: Simon Dawson/Bloomberg

Jobless-benefit claims fell by 13,700 from March, the biggest fall since July 2010, to 1.59 million, the Office for National Statistics said today in London. The median forecast of 24 economists in a Bloomberg News survey was for a gain of 5,000. Unemployment as measured by International Labour Organization methods fell to 8.2 percent in the first quarter from 8.3 percent in the three months through February.

The figures provide a boost for Prime Minister David Cameron, with the economy in recession and his approval ratings at all-time lows. Employment rose 105,000 in the first quarter, the most for a year. Economists...

Francois Hollande becomes France's new president

Tue, 15 May 2012 12:39:10 +0200

Francois Hollande has been sworn in as president of France, becoming the first Socialist leader in 17 years to occupy the Elysee Palace.

Mr Hollande said he was fully aware of the challenges facing France, including the debt crisis and weak growth.

He will later name his prime minister and fly to Berlin for talks with German Chancellor Angela Merkel.

Mr Hollande wants "a compromise" over the German-led focus on austerity as the way out of the economic crisis.

On Monday, the value of stock markets and the euro fell amid continuing political uncertainty in Greece.

The chairman of the eurozone finance ministers, Jean-Claude Juncker, insisted on Monday night that they would do "everything possible" to keep Greece in the euro.

Cabinet...

Internships: with age comes the search for experience

Mon, 14 May 2012 11:41:37 +0200

The number of interns over 25 is rising, but while maturity brings expertise – and benefits the economy – apprentices face a number of age-related issues

Alan Kean, on a parliamentary internship, is one of a growing number of older apprentices. Photograph: Graeme Robertson

A tuft of grey chest hair pokes out of the top of Alan Kean's stripey shirt. It catches my eye as we drink tea amid the deafening chatter and the expensive fig trees in Portcullis House where Alan, 55, is six months into life as a parliamentary intern.

In recent months there has been much gnashing of teeth over young people flooding into these positions, unpaid or poorly paid, with scant observation of working rights, desperate to get a foot on...

Employers can force retirement if in 'public interest'

Fri, 11 May 2012 11:21:01 +0200

Employers can force retirement of older workers if it is in the "public interest", a landmark court ruling signalled on Wednesday.

An increasing number of over-65s are looking to work longer to support retirement. Photo: ALAMY

Companies could, for example, say they needed to dismiss older workers at 65 to make way for more entry-level jobs and younger staff climbing the career ladder, the long-awaited judgment signalled.

It is the first time the "public interest" defence has been applied to age discrimination law, legal experts said, adding that the case gave the green light to employers to bring back a mandatory retirement age just months after the Government made the practice unlawful.

The...

10 things not to say in a job interview

Thu, 10 May 2012 11:41:58 +0200

With many job hunters struggling to even get an interview, it would be doubly frustrating to throw the opportunity away by saying something stupid

What not to say at interview: speaking badly of a former employer is unprofessional and reflects on your character. Photograph: RubberBall/Alamy

With the jobs market more competitive than ever it can be hard work just to get an interview, so once you're actually in front of potential employers you don't want to ruin your prospects with an ill-chosen comment.

Sadly, some job hunters still do speak before they think. Corinne Mills, managing director of Personal Career Management,...

10 Body Language Tips to Help You Land That First Job

Wed, 09 May 2012 14:52:11 +0200


As a new graduate, you’ve spent hours crafting the perfect resume. The format is eye-catching and the wording is practically perfect. But you’ll need much more than a well-crafted resume if you want to land that all-important first job!

You have only seven seconds to make a first impression, and once the interviewer has labeled you as submissive or confident, credible or uncertain, likable or arrogant, it is very difficult to change that opinion.

To make the most of those crucial few seconds, follow these 10 body language strategies:

1. Adjust your attitude. The fastest way to adjust your attitude – and this needs to be done before you enter the meeting room – is to change your posture: hold your head high, pull your shoulders back, and stand tall. By doing so, you will...

How graduates can prove they have the skills employers want

Mon, 07 May 2012 13:33:39 +0200

To avoid being told you don't have enough experience ensure you highlight the skills employers are looking for on your CV

CV writing for graduates: Be sure to highlight your skills, says Clare Whitmell. Photograph: Dorling Kindersley/Getty

Employers hire on a mix of attitude, skills and experience. There are ways you can highlight a great attitude on your CV and a robust experience section is crucial. But you also need to prove you have the skills that employers want.

A lack of the right skills is letting graduates down, according to two recent articles. In Job seekers don't fit the bill Alexandra Levit writes that entry-level graduates are missing a strong work ethic and the ability to get along with others. In Key IT skills that graduates are missing, employers point out a lack of relevant...

Keele University joins US admissions system

Fri, 04 May 2012 16:47:50 +0200

By Sean Coughlan BBC News education correspondent

Keele University has become the first English university to join the Common Application system for university admissions in the United States.

Keele will allow US students to apply for places using the same form as the likes of Harvard, Yale and more than 450 other institutions.

St Andrews in Scotland is already part of this US applications process.

Widening its appeal to students in the US is the "next stage of our evolution," says a Keele spokesman.

Global campus

This latest example of the internationalisation of higher education will mean that Keele will be part of a standardised application system used by many US universities.

It will mean that students in the US can apply to Keele through...

One in four managers 'don't know how bad they are'

Thu, 03 May 2012 10:17:36 +0200

Millions of managers fail to realise “how bad they are at managing”, which is undermining company efforts to boost productivity and growth, according to a damning new report.

Workers are becoming increasingly stressed because of bad management, according to the CIPD. Photo: GETTY

One in four of the UK’s line managers – almost 2m people – have an inflated opinion of their ability to lead teams, the study by the Chartered Institute of Personnel and Development (CIPD) has claimed.

The so-called “reality gap” is having a negative impact on business attempts to motivate and inspire teams to go the extra mile amid a tough economic climate, the CIPD warned.

Poor...

How to get the most out of career fairs

Wed, 02 May 2012 14:56:11 +0200

Being savvy about basic career fair etiquette can ensure you make the right impression on the day. Career experts Helen Stringer and Jan Steele offer their advice

Make a strong impression on the day and you could find yourself invited for an interview. Photograph: Scott Olson/Getty Images

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Helen Stringer is careers services manager at the University of Warwick

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David Cameron blames UK double-dip recession on eurozone

Mon, 30 Apr 2012 16:59:45 +0200

PM says economic crisis will go on for years and progress on reducing dependence on City and public sector too slow.

David Cameron on the Andrew Marr Show. He blamed stalemate in Europe over the central bank for holding the UK economy back. Photograph: BBC/Getty Images

David Cameron on Sunday held out the prospect of the UK economy being dragged down for years, as he predicted the euro crisis was "nowhere near half complete" and warned the single currency may yet break up. He also admitted efforts to move the UK economy away from dependence on the City and the public sector were not going fast enough.

Speaking at the start of a week of elections in Europe, including for the French presidency and the Greek parliament,...

Job adverts seeking graduates could be outlawed

Fri, 27 Apr 2012 16:45:46 +0200

Companies may no longer be able to advertise for graduates as it could class as age discrimination against older workers, following a court ruling.

A Supreme Court ruling could see employers refrain from advertising for graduates during recruitment, for fear of being accused ageist. Photo: PA

The Supreme Court on Wednesday said an older employee was indirectly discriminated against on the grounds of age when he was denied access to a new top salary band at work, because he did not have a law degree.

The judgment ruled that Terence Homer, an ex-police officer who worked as an adviser on the Policy National Legal Database, was at a disadvantage in comparison with younger workers because he did not have time...

Interest rates to stay at 0.5% for years, say experts

Thu, 26 Apr 2012 12:08:20 +0200

Economists and financial experts doubtful there will be sufficient improvement in the UK economy to enable interest rates to rise before the end of 2013.

Many experts forsee static interest rates until there is growth in the UK economy. Photograph: Andy Rain/EPA

Economists, fund managers and mortgage market experts are predicting the base interest rate will remain at the record low level of 0.5% until 2014, and that it may not rise for another three to five years, despite March's shock rise in inflation.

CPI rose from 3.4% to 3.5%, a small rise but significantly higher than the government's target rate of 2%. This prompted some speculation that the Bank of England monetary policy committee (MPC) might raise interest rates in an attempt...

Cambridge named best university in England as Oxford slips to third

Wed, 25 Apr 2012 17:09:38 +0200

Cambridge has taken top spot in a league table of universities ahead of the London School of Economics in second place and Oxford third.

Cambridge has taken top spot in a new league table of universities, with the London School of Economics beating Oxford to second place. (Picture: PA)

Cambridge was rated best for entry standards and completion rates and joint first with Oxford and LSE for research.

The Complete University Guide ranked 116 universities on a number of categories including student satisfaction, good honours degrees and graduate prospects.

Bolton and the University of East London were bottom.

Both...

UK government meets borrowing target for financial year

Tue, 24 Apr 2012 16:22:07 +0200

Public sector net borrowing, excluding effect of banking bailouts, rose to £18.17bn last month, from £17.95bn a year ago.

Chancellor George Osborne has vowed to eliminate the budget deficit over the next five years. Photograph: Peter Macdiarmid/Getty Images

The British government borrowed more than expected last month, but still managed to meet its target for the financial year.

City economists said the high March shortfall highlighted the pressure on the chancellor to stick to his austerity measures, especially as the credit rating agencies Moody's and Fitch have put the UK's AAA-rating on negative outlook.

But Labour warned that George Osborne risked choking off the recovery, with falling tax receipts last month underlining the...

Older workers 'on jobs scrapheap' as crisis deepens

Mon, 23 Apr 2012 16:52:15 +0200

Almost half of unemployed people aged 50 or over have been out of work for a year or more, in a "disturbing" sign that older jobseekers are being consigned to the unemployment scrapheap, experts said.

The jobless toll was less than expected, but that did not stop economists from making sombre predictions that unemployment would close in on 3m before the year end. Photo: Martin Rickett/PA Wire

Grim official labour market statistics out on Wednesday revealed Britain's jobs crisis is deepening, with women and young people bearing the brunt of job cuts over the past year.

A sizeable jump in the number of new jobs being created between October and December – a rise of 60,000 – was overshadowed by a record number of people...

UK retail sales boosted by petrol panic buying

Fri, 20 Apr 2012 16:59:01 +0200

Petrol sales 'one of main drivers' as volume of retail sales rose by 1.8% month on month, ONS says.

Drivers queue for fuel at an Esso service station in Dorset after Francis Maude's comments sparked panic buying. Photograph: Chris Ison/PA

Panic buying of petrol after cabinet office minister Francis Maude advised people to fill up jerry cans to beat the looming fuel strike boosted retail sales across the economy last month, official figures reveal.

The Office for National Statistics said the volume of retail sales rose by 1.8% month on month in March – and "one of the main drivers" came from petrol sales.

The monthly increase in sales by "predominantly automotive fuel stores" was 4.2%,...

MBA: A Weapon Against Unemployment?

Thu, 19 Apr 2012 16:38:12 +0200

In times of high unemployment in France, as in most of the OECD countries, people increasingly strive to gain new skills. MBAs seem to be the perfect solution, but are they a real weapon against unemployment? In any case, the least we can say is that they are very successful.

What is an MBA?

First and foremost, an MBA (Master of Business Administration) is a degree which was born in the United States over a century ago. It enables individuals who have already stepped into the professional world to gain new theoretical skills. The MBA is, therefore, typically ‘Anglo-Saxon’ as it allows to finish one’s education after having worked for a business for a couple of years. An MBA enables you to develop double skills which clearly...

£14,000 of debt considered 'normal'

Thu, 19 Apr 2012 12:02:01 +0200

Despite the worsening economy, consumers still comfortable with large debts and most only consider themselves in serious financial difficulties once they owe more than £14,416. Photo: ALAMY

However consumer attitudes to personal debt are changing. This annual "financial safety net" report shows that there is an increased awareness about the difficulty of servicing such debt, should personal circumstances change.

The report, by the insurance company Bright Grey, found that 12 months ago people were more "debt tolerant" and did not consider themselves in serious financial difficulty until they owed almost £16,000.

The survey also found that people were becoming increasingly concerned about rising...

Seven Deadly Interview Sins

Wed, 18 Apr 2012 15:44:42 +0200

Photo: http://www.flickr.com/photos/gangplankhq/5590137505/sizes/l/in/photostream/

With the job market extremely tight, even the small stuff counts, especially when you’re on a job interview. That’s why it’s so important not to say or do the wrong things, since that first impression could end up being the last one. With that in mind, here are seven deadly sins of job interviewing.

Don’t Be Late To the Interview

Even if you car broke down or the subway derailed, do everything you can to get to that job interview on time. “If you have a legitimate excuse it’s still hard to bounce back,” says Pamela Skillings, co-founder of job coaching...

UK inflation posts unexpected rise in March

Tue, 17 Apr 2012 15:39:13 +0200

UK inflation rose unexpectedly in March, driven by food and clothing prices and making the prospect of more monetary stimulus from the Bank of England less likely.

The ONS said the biggest upward drivers of inflation last month were food and clothing prices.

The official rate of annual inflation on the Consumer Prices Index rose to 3.5pc last month from 3.4pc in February according to Office for National Statistics data.

It was the first rise in six months after inflation peaked at 5.2pc in September 2011. Economists had forecast no change from 3.4pc.

The Bank of England and Government had been hoping that inflation would keep falling this year, easing the financial burden on British households and businesses.

The Bank has...

S&P confirms UK's AAA rating but warns on growth

Mon, 16 Apr 2012 15:57:06 +0200

Britain's treasured AAA credit rating has been confirmed by Standard & Poor's but the ratings agency warned that the Government's austerity drive would drag on growth in the coming years.

George Osborne said S&P's decision was a reminder that without austerity Britain would be led into 'an economic catastrophe' Photo: Reuters

S&P gave its backing to the Chancellor's deficit reduction plans and said Britain's "wealthy and open economy" improved its "capacity to absorb shocks".

The ratings agency said the outlook for the UK's AAA rating was "stable", putting it at odds with fellow agencies Moody's and Fitch, which have both placed the country's top tier rating on a "negative outlook",...

UK jobless total 'to rise by 100,000 over summer'

Fri, 13 Apr 2012 12:23:16 +0200

Some 100,000 more people will be without a job before the end of the summer, according to a new report.

The IPPR think tank says unemployment may not peak until at least September, and that it could be 18 months before the UK jobless total falls.

North-west and eastern England, London, and Yorkshire and Humberside will see the highest increases, it predicts.

But it adds that the West Midlands, Northern Ireland and South West will see a job recovery.

'Personal tragedy'

The...

UK trade deficit rose to £3.4bn in February as exports fell

Thu, 12 Apr 2012 12:39:53 +0200

Government figures show £8.8bn trade deficit in goods offset by £5.4bn surplus in services.

British exports of cars, investment goods and food, drink and tobacco all fell in February Photograph: Scott Barbour/Getty Images

Britain's trade gap with the rest of the world increased in February as exports of cars, investment goods and food, drink and tobacco all weakened, new figures from the Office for National Statistics reveal.

The government's figures showed the UK ran a deficit of £3.4bn in trade and goods and services, up from a deficit of £2.5bn in January.

The ONS said the seasonally adjusted total was made up of a shortfall of £8.8bn in trade in goods offset by...

Who's getting rich from Facebook's $1bn Instagram deal?

Tue, 10 Apr 2012 13:59:05 +0200

Mark Zuckerberg first tried to recruit Instagram’s founder and chief executive, Kevin Systrom, to Facebook in 2004, before the social networking had charted its extraordinary growth trajectory and while Mr Systrom was still an undergraduate at Stanford University.

Instagram co-founders Kevin Systrom, chief executive (right), and Mike Krieger at the company offices in San Francisco. Photo: New York Times / Redux / eyevine

He turned the offer down, insisting he wanted first to complete his degree in Management Science and Engineering - a gamble which would many would have lived to regret but which, for Mr Systrom, has paid off handsomely.

According to leaked figures, the...

Easter: Cocoa prices are falling, so why is your chocolate egg more expensive?

Fri, 06 Apr 2012 11:57:51 +0200

For those tucking into Easter eggs this weekend, a report that supermarkets are raising the price of the chocolate treat as cocoa prices are falling will leave a bitter taste in the mouth.

The cost of cocoa in top producer areas, including the Ivory Coast, continues to fall, but the price of chocolate eggs keeps rising

Despite cocoa prices tumbling by a third in just a year, some easter eggs have doubled in price, research by comparison website mySupermarket has shown.

The site claims that the price of Tesco’s own brand 200g Milk Chocolate Egg Hunt Bag has risen 100pc from £1 to £2; Nestle’s Retro Smarties Mug and Egg cost £4.99 two years ago at Tesco but is now £7 at the same store;...

Bank of England expected to hold firm on QE and interest rates

Thu, 05 Apr 2012 10:19:51 +0200

Bank expected to hold back from unleashing extra emergency support for economy amid mixed signals over fate of recovery.

The Bank’s Monetary Policy Committee (MPC) is forecast to despite the OECD's analysis that the UK economy fell back into recession in the first half of this year. Photograph: Ben Stansall/AFP/Getty Images

The Bank of England is expected to hold back from unleashing extra emergency support for the economy on Thursday amid mixed signals over the fate of the recovery.

The Bank's monetary policy committee (MPC) is forecast to keep its quantitative easing (QE) stock at £325bn, after injecting £50bn in February, and hold interest rates at a record...

UK food inflation pushes higher

Wed, 04 Apr 2012 11:40:35 +0200

British Retail Consortium and analysts Nielsen say high energy costs and threat of drought are pushing up grocery prices.

UK food inflation rose to 5.4% in March from 4.2% a month earlier. Photograph: Julien Behal/PA

Hard-pressed British shoppers have seen no let-up in rising grocery prices, with high energy costs and the threat of drought pushing food inflation higher in recent weeks. It rose to 5.4% in March from 4.2% in February, according to the latest shop price index from the British Retail Consortium and analysts Nielsen.

There was some respite for shoppers from deflation in non-food prices of 0.9% – the biggest fall for more than two years, due largely to price cuts for electrical goods, clothing and footwear. But that...

Large companies launch proposals to create 'real jobs' for young people

Tue, 03 Apr 2012 17:01:59 +0200

Businesses and charities join forces to offer training linked to permanent jobs in bid to avert unemployment 'crisis'.

Morrisons is a key member of the 16-24 Alliance, an initiative aimed at averting a 'lost generation'. Photograph: Alamy

Some of the UK's largest companies will promise to create thousands of "real" jobs for 16- to 24-year-olds as concerns grow over the effectiveness of government initiatives aimed at tackling youth unemployment.

Morrisons, the supermarket, Barclays, power firm E.ON and Phones 4u are among the founder members of the "16-24 Alliance", which will work with specialist charities offering training courses linked to permanent jobs with the companies. A report published last month...

Are UK boards pale, male and stale?

Mon, 02 Apr 2012 14:14:57 +0200

Pale, male and stale. That is the “old boys network”, which still dominates FTSE 100 remuneration committees (remcos) and “contributes to a culture of escalating pay deals”. Such is the view of the High Pay Centre, anyway.

A study of firms in the FTSE 100 found that of 366 people who sit on remuneration committees setting pay for top bosses, just 10pc were not from business and only 16pc were women. Photo: ALAMY

The centre has slammed the “lack of diversity” at remcos, which set pay for company executives.

“FTSE 100 companies are overwhelmingly comprised of current or former bosses in an 'old boys’ network’,” it said, arguing that...

UK is back in recession, OECD says

Fri, 30 Mar 2012 14:40:14 +0200

The OECD says UK output will decline 0.4% in the first three months of 2012 on an annualised basis.

OECD deputy secretary-general and chief economist Pier Carlo Padoan talks down the UK's economy. Photograph: Eric Piermont/AFP/Getty Images

The UK is heading back into recession and will be among the slowest of the world's largest economies to recover in the first half of this year, according to a study by the Paris-based thinktank, the OECD.

Only Italy will struggle over a longer period to return to growth, highlighting the difficult situation confronting the British government as it battles to boost confidence and get the economy back on track.

In recent weeks surveys have shown the business and consumer sentiment...

Fuel strike threat: Top-up advised when tank half-full

Thu, 29 Mar 2012 11:42:54 +0200

The government has advised motorists to fill up their tanks when they become half-empty in case of a possible strike by fuel tanker drivers.

Energy Minister Ed Davey recommended the change from common practice of filling up when about a third full.

Earlier government advice to store petrol in jerrycans, since withdrawn as a mistake, led to accusations that ministers were stoking a crisis.

Hundreds of drivers could strike in a row over working conditions and pay.

Some 90% of UK forecourts are supplied by about 2,000 drivers in the Unite union.

No strike dates have been set, and the union would give seven days' notice before any action.

"We don't think people need to change their behaviour...

UK GDP fell faster than previously estimated in fourth quarter, ONS says

Wed, 28 Mar 2012 14:36:48 +0200

• UK GDP fell 0.3% rather than 0.2% in fourth quarter
• Economists had expected no change
• Disposable incomes fall 1.2% – worst since 1977

Britain's economy was even weaker than expected at the end of last year, underlining the country's struggle to avoid another recession.

GDP fell 0.3% in the fourth quarter, more than the 0.2% drop previously estimated by the Office for National Statistics. The downgrade was mainly prompted by weakness in the country's dominant services sector.

Economists had not been expecting any change to the 0.2% fall, and the news that Britain's economy went into the new year in an even worse state will raise fears it could notch up a technical recession – defined as two consecutive quarters of contraction.

The pound fell to...

Minimum wage to rise by 11p an hour

Tue, 27 Mar 2012 14:20:38 +0200

The national minimum wage will rise by 11p to £6.19 an hour in October, the government has announced.

This is a rise of 1.8% from the current level, which is lower than the current inflation rate.

The minimum wage for workers aged under 21 will be unchanged - a decision that has been criticised by union leaders.

The minimum wage was introduced in 1999 at £3.60 an hour for adults. The level is recommended each year by the Low Pay Commission.

The changes to be made in October echo the recommendations made by the commission.

'Balance'

The cost of living rose by 3.6% in the year to January, according to the most recent Consumer Prices Index (CPI) measure of inflation.

However,...

School leaving age should be raised to 18, says David Blanchflower

Mon, 26 Mar 2012 11:11:59 +0200

Former Bank of England adviser calls for measure to help combat rising youth unemployment.

The school leaving age should be raised to 18 to combat rising youth unemployment, a former economic adviser to the Bank of England has demanded.

David Blanchflower also suggests that firms in depressed regions such as Northern Ireland and the north-east of England should be allowed to hire young people without paying national insurance.

The economist will tell an international conference on young people in Belfast on Monday that youth unemployment is "the single biggest issue facing this government".

He will also warn that rising youth unemployment could be socially destabilising and create a reservoir of discontent that republican dissidents could exploit.

Prior...

Republic of Ireland falls back into recession

Fri, 23 Mar 2012 14:01:31 +0100

The Republic of Ireland fell back into recession in the last three months of 2011, official figures have shown.

Its economy shrank by 0.2% from October to December, following a contraction of 1.1% in the third quarter.

The data from the Central Statistics Office showed that the weakness in the global economy had hit Irish exports, while its domestic consumer spending had continued to recover.

The country needed an international bailout in 2010.

While consumer spending in Ireland rose by 0.5% in the fourth quarter of 2011, exports fell by 1.1%.

Irish economist Conall Mac Coille, of Davy Stockbrokers, said: "Consumer spending and investment bounced back as we expected, but exports contracted on the quarter, highlighting the danger that a key platform for growth is being eroded by the euro area slowdown."

In November...

Retail sales suffer biggest fall in nine months

Thu, 22 Mar 2012 12:19:46 +0100

Retailers suffered their worst sales performance in nine months in February as families continued to rein in spending, official figures revealed.

Retail sales volumes fell by a larger-than-expected 0.8pc between January and February, the Office for National Statistics (ONS) said, driven by a weak show from the clothing and household goods sectors.

And hopes for growth in the wider economy in the first quarter of the year were dealt a further blow as retail sales volumes in January were downwardly revised to 0.3pc from an estimate of 0.9pc.

A recent fall in inflation from above 5pc has eased the squeeze on household finances but February's figures, which also revealed a 0.4pc drop in retail sales values, show consumers are still reluctant to spend.

The...

Inflation falls again as energy bills ease

Wed, 21 Mar 2012 11:03:36 +0100

Saudi Arabia pledges to boost oil supplies, bringing crude prices down from recent highs.

Saudi Arabia promised to increase its oil supplies to ease worries over a shortfall from Iran, in a move that helped bring crude prices down from recent highs .

The 1% drop in oil prices provided some relief to the UK government after inflation data earlier on Tuesday showed a smaller drop in overall price pressures than expected. Ministers and central bankers are hoping inflation will fall sharply this year, easing the pressure on households squeezed by meagre pay growth and rising unemployment.

There were warnings that oil prices could still rise higher and stem the fall in inflation, but Saudi Arabia's assertion that it was pumping out oil at the fastest pace in decades brought Brent crude prices...

Millions of workers lose pension battle with government

Tue, 20 Mar 2012 16:40:07 +0100

Unions representing millions of workers have lost their Court of Appeal battle against a Government decision to change the way public sector pension increases are calculated.

Three appeal judges have unanimously refused to overturn a High Court 2-1 majority ruling last December which backed the Government's approach.

The case relates to Work and Pensions Secretary Iain Duncan Smith's decision to use the consumer price index (CPI) instead of the normally faster-rising retail price index (RPI) to measure price increases influencing pension upgrades.

The unions say the CPI route will see the value of pensions cut by up to 20pc over a normal retirement, costing every affected worker thousands of pounds.

They accused the Government...

Dogfinance.com, the first financial social network is landing in the United Kingdom

Tue, 20 Mar 2012 16:35:36 +0100

After taking the lead on the French market of online financial recruitment, Dogfinance is now intending to strike at a huge market : the United Kingdom.

Dogfinance.com is a social network specialised in finance which has brought 66,000+ members together and has recorded 200,000+ visits per month so far. Dogfinance is made up of three concepts: recruitment, the professional social network and the information network with a very active news section.

Staying focused in finance and growing up abroad

Dogfinance remains and will be remaining specialised in the financial fields to keep its community identity. To expand, Dogfinance is willing to get beyond the French borders and set up on other local markets. That’s...

Consumers 'still face cash squeeze'

Mon, 19 Mar 2012 11:44:39 +0100

Almost half of Britons spend at least three quarters of their income on bills and essentials.

Households remain "under real pressure", with consumer spending on essentials growing at its highest rate in almost two years, a report warned today.

Consumers continued to be squeezed in February, with 46pc of those surveyed putting at least three quarters of their income towards bills and essentials, the Lloyds TSB Spending Power report found.

Spending on essentials grew 6pc year on year in February, the highest rate in almost two years, driven by high utility bills as water bills increased by 15.9pc and gas and electricity spending went up 10.5pc annually.

Car fuel spending also saw "strong growth", with...

Metro Bank seeks £150m for expansion

Fri, 16 Mar 2012 10:56:21 +0100

Metro Bank has met with a series of hedge funds about doubling its capital base and raising an extra £150m of new capital.

Metro is one of the few new banks to break into the UK market successfully, having passed regulatory hurdles while rivals have floundered.

It has already secured two rounds of private fund-raising, drawing £128m of expansion capital. Its current round of money raising has courted a handful of hedge fund mangers to back Metro's ambitious expansion drive ahead of a planned flotation in 2014.

Craig Donaldson, the bank's chief executive, said that pushing for growth and Metro's aim of shaking up the banking industry, meant it would "require additional planned growth capital".

The...

Tesco UK boss quits supermarket in aftermath of shock profit warning

Thu, 15 Mar 2012 10:43:25 +0100

'You can't have two captains' declares Philip Clarke as he takes direct control of UK operations at Britain's largest retailer

Tesco chief executive Philip Clarke declared "you can't have two captains" as he took direct control of the supermarket group's UK operations on Thursday morning.

Richard Brasher, head of Tesco in the UK, has quit the board with immediate effect. The 50-year-old will leave Britain's largest retailer, where he has worked for 26 years, in July.

His departure follows reports of tensions between Brasher and the chief executive. Clarke was forced to issue a shock profit warning in January which wiped £5bn off the value of the company.

Clarke last week dismissed suggestions of a rift, but on Thursday morning was more outspoken:...

Tesco imposes higher pension age

Wed, 14 Mar 2012 10:44:23 +0100

The UK's largest supermarket chain has told 172,000 staff that their pension scheme will become less generous.

Tesco has announced changes to the way its pension scheme is calculated from 1 June.

Full pension benefits will not be paid until two years later than present, while the way inflation is taken into account will be changed.

The retailer said that the move was "essential" to ensure that the scheme was sustainable.

"Importantly, the changes do not affect the pensions staff have already built up, they do not require colleagues to work for longer and their contributions will stay the same," a Tesco spokesman said.

Some 60% of the Tesco workforce - 172,000 members of staff - contribute to its pension scheme.

Jobs market improving, says recruiter

Tue, 13 Mar 2012 13:49:19 +0100

UK employers looking to expand workforce, agency suggests, but unemployment still rising among women and the young.

The UK job scene is improving after a bleak midwinter, according to one of the country's largest recruitment agencies.

Manpower found that employers were in the mood to take on more staff across most sectors as the prospects of a double dip recession ease.

The report follows a spate of positive surveys showing greater appetite among employers for expanding their workforce.

However, Manpower managing director Mark Cahill urged caution ahead of unemployment figures on Wednesday that are expected to show another rise in the claimant count and headline unemployment rate, especially among women and the young.

A survey by the Federation of Small Businesses also showed a...

Rising price of oil 'could dent incomes'

Mon, 12 Mar 2012 10:42:35 +0100

Consumers could face another year of squeezed incomes thanks to the runaway price of oil and a spike in other commodity costs, economists warned.

Forecasters at the Centre for Economics and Business Research (CEBR) cautioned that with inflation boosted by rising commodity prices, their previous forecast of inflation falling to 1.8pc by the final quarter of this year looked under threat.

If political uncertainty in the Middle East and the effects of quantitative easing continue to prop up these prices, they predicted that inflation, based on the consumer price index, could be around 2.5pc by the end of the year. This rate of inflation stood at 3.6pc in January.

Oil prices have surged amid concerns about brinkmanship with Iran over its nuclear programme and supply disruptions in Syria,...

Making money out of Brazil's rise

Fri, 09 Mar 2012 12:21:34 +0100

Brazil, which has a large, young population and a huge amount of natural resources, was revealed to have overtaken the UK economy this week.

Brazil, which has a large, young population and a huge amount of natural resources, was revealed to have overtaken the UK economy this week. Brazil now ranks as the sixth largest economy, and Tim Ohlenburg at the Centre for Economics and Business Research said it As only a matter of time before it overtakes Germany and France, in fourth and fifth place respectively.

It is the astonishing pace of growth that lies at the heart of the appeal of emerging markets. Over the past 10 years, the average return from global emerging-markets funds investing in countries like Brazil, Russia, India and China has been over 230pc, second only to funds investing in and around China. By comparison, investing in mainstream...

Call for tighter controls on payday lenders

Thu, 08 Mar 2012 10:23:46 +0100

Influential report recommends curb on rolling over of loans and demands data sharing to reduce multiple debts.

Payday lenders should be forced to limit the rolling over of loans, stop allowing customers to switch from one lender to another, and to share information about their customers with other lenders, the business, innovation and skills committee has recommended.

In a report – which described the payday lending and debt management industry as opaque and poorly regulated – the influential committee said the government should outline a timetable within six months for deciding whether control of consumer credit will be transferred from the Office of Fair Trading (OFT) to the Financial Conduct Authority (FCA), a new regulator replacing the Financial Services Authority.

One of the FCA's first...

Budget 2012: Tax cuts have to be paid for, warns Chancellor George Osborne

Wed, 07 Mar 2012 12:10:44 +0100

There will be no easing of austerity in this month's Budget as any tax cut "has to be paid for", the Chancellor warned on Tuesday night.

Two weeks before his announcement, George Osborne told the annual EEF Manufacturers' Dinner that "the days of unfunded giveaways are over – and they're not coming back in this Budget".

The Chancellor is facing calls for tax reforms to stimulate growth. The Liberal Democrats want the personal allowance threshold raised to £10,000, businesses and Conservatives want the 50p rate of income tax ditched, and Labour has demanded a cut in VAT or to employers' National Insurance.

Although tax changes are likely, Mr Osborne made it clear he will claw back the lost revenues elsewhere – either in higher taxes...

Pension incomes could rise an average 20% under annuity reforms

Tue, 06 Mar 2012 11:37:58 +0100

Code of conduct will require insurers to provide clear information to help people who retire get best income from pension pots.

Hundreds of thousands of people who retire could benefit from an average rise of 20% to their pension income after the launch of a code of conduct for annuity providers and a new annuity service to ensure pensioners are sold the right product.

The Association of British Insurers, the trade body for insurance companies, has developed a new code designed to ensure insurers provide clear information to help people get the best income possible from their pension pots.

The code requires insurers to redesign their information packs to highlight the importance of shopping around for an annuity – an insurance policy that converts a pension fund into retirement income.

When an insurer sells...

UK banks take over 37bn in ECB loans

Mon, 05 Mar 2012 10:35:55 +0100

LTROs were introduced last year by ECB governor Mario Draghi. Photograph: Daniel Roland/AFP/Getty Images.

Lloyds Banking Group was the largest borrower, drawing down €13.6bn from the ECB, while HSBC and Royal Bank of Scotland borrowed the remaining €18bn between them.

British banks have taken more than €37bn (£31bn) of cheap loans from the European Central Bank following last week's dash by European banks to bolster their depleted reserves .

Barclays on Friday confirmed it borrowed €8.2bn as major financial institutions across the continent took their borrowing from the European Central Bank's Long Term Refinancing Operation (LTRO) to more than €1tn.

Lloyds Banking Group...

Eurozone unemployment continues to rise

Fri, 02 Mar 2012 11:39:00 +0100

The unemployment rate in the eurozone continued to rise in January, hitting another record high.

The jobless rate in the 17 countries that use the euro rose to 10.7% in January, while December's figure was revised up from 10.4% to 10.6%.

There are now 16.9 million people out of work in the bloc, Eurostat said.

In Italy, the unemployment rate rose to 9.2% in January, the highest since monthly records began, the national statistics agency Istat said.

Italian unemployment had stood at 8.9% in December, but it is now at the highest rate since the first quarter of 2001, as the country finds itself in a second recession in four years.

Spain continues to have the highest unemployment rate in the euro area at 23.3%, while Austria has the lowest at 4%.

Flats for sale in Sighthill, Edinburgh. The Nationwide building society said today the price of a typical home in the UK is now ££162,712. Photograph: Murdo Macleod for the Guardian

House prices increased by 0.6% in February according to the Nationwide building society, supporting indications that the housing market is going through a revival. The increase took the annual change to 0.9%, compared with 0.6% last month, and means the average price of a typical home in the UK is now £162,712.

Robert...

Common CV mistakes people make

Wed, 29 Feb 2012 14:13:16 +0100

The most common mistakes candidates make when applying for a job.

Applying for a new job can be daunting, especially if you have been out of work for a while or are unfamiliar with technology and uploading a CV online.

Here are seven CV dos and don'ts:

• DON'T make your CV too long. Many recruiters will form an opinion based on what is in the top third of the first page, according to recruitment site Pertemps. Two pages are more than adequate to get all your points across.

• DO Use key words. Many companies are now turning to technology to help them sift through all the applications and CVs they receive. If key words don’t appear...

G20 finance ministers ask eurozone to boost rescue fund

Tue, 28 Feb 2012 11:17:10 +0100

Eurozone countries need to put more money in their rescue fund before G20 nations can step in to help them, the G20 finance ministers have said.

They said such a move was "essential" to their decision to provide more resources to the International Monetary Fund (IMF) to help the region.

Earlier this month, eurozone leaders set up a permanent bailout fund of 500bn euro ($673bn; £420bn).

There are concerns the fund may not be able to rescue a deeply indebted state.

"We have to see the colour of the eurozone's money first - and quite frankly, that hasn't happened," the British chancellor George Osborne said.

"Until it does, there's no question of extra IMF money from Britain or probably anyone else."

The German factor

Any...

HSBC paid 192 staff more than £1m

Mon, 27 Feb 2012 15:44:02 +0100

• 64 high earners based in UK
• HSBC made profit of £13.8bn in 2011
• Executive bonuses cut over mis-selling
• Chief executive took home over £7m

HSBC paid 192 of its top employees more than £1m in 2011 when the London-based bank made profits of $21.9bn (£13.8bn), an increase of 15%.

But if $3.9bn of gains on the value of the bank's own debt are stripped out, the profit is actually down $1.2bn to $17.7bn and the shares fell 2.5% to 561p.

As the bank, Europe's biggest, released the profit figures it produced extensive detail on pay deals.

Some 64 of the 192 taking home more than £1m were based in the UK. In 2010, 253 staff...

UK to narrowly escape recession, European commission forecasts

Fri, 24 Feb 2012 11:26:36 +0100

Brussels lowers forecasts – but says Britain will grow 0.6% this year while the eurozone suffers a 'mild' recession

The UK will narrowly escape recession in the first half of this year as Europe as a whole stagnates and the eurozone suffers a short-lived, "mild" contraction, according to the latest forecasts from Brussels.

The ultra-cautious prediction by the European commission's economic experts, revised down from three months ago, came as an array of European banks, including RBS and Crédit Agricole, declared multibillion-euro losses for 2011 because of the Greek debt crisis.

Greek MPs approved this week's savage terms for a €130bn (£110bn) bailout but Martin Blessing, the chairman of Commerzbank, Germany's second-biggest bank, said the 53.5% nominal haircut for...

UK unemployment continues to edge up

Thu, 23 Feb 2012 13:55:32 +0100

UK unemployment rose by 48,000 to 2.67 million in the three months to December, official figures have shown, the smallest rise in almost a year.

Women made up two-thirds of that increase and there was a new record in the number of people working part-time who want full-time jobs.

The unemployment rate edged up to 8.4%, the Office for National Statistics said, the highest for 16 years.

There was also a new record for the number of jobless young people.

The number of 16 to 24-year-olds without a job rose 22,000 to 1.04m, taking the unemployment rate to 22.2%. This figure includes young people in full-time education who are also looking for work.

The number of people claiming Jobseeker's Allowance in January increased by 6,900 to 1.6 million.

Lloyds Banking Group and Royal Bank of Scotland are expected to unveil combined losses of more than £4bn when they publish annual results this week.

On its own, Lloyds, which is 41pc owned by the taxpayer, is expected to reveal on Friday a pre-tax loss of around £4bn for 2011, following a £281m profit the year before.

The loss will include a £3.2bn hit incurred for mis-selling payment protection insurance.

Analysts are more divided on expectations for RBS, which is still 83pc state-owned and which reports on Thursday,...

Jobseekers jump ahead with work experience

Fri, 17 Feb 2012 11:04:18 +0100


Not all advertising agency directors care whether their employees have been to university or not, just as long as they have talent. "Some of the best creatives in town were previously brickies or supermarket managers," claims Rob Fletcher, a creative partner at Isobel Advertising, an agency that offers an ongoing intern and placement programme. As it happens, most candidates knocking on his door are, in fact, graduates. "Usually with the word 'media' somewhere in their degree," he says. "But I've never asked to see any qualifications. We look for an eagerness and love for our industry; this can't be taught. If you're good, you will not leave."

Yet opportunities such as these are just what graduates need, say recruiters and universities, to toil at the coalface, have direct contact with clients and benefit from informal but effective training and mentoring from senior staff. Smaller companies,...

UK consumer confidence recovered in January

Thu, 16 Feb 2012 11:58:48 +0100

Consumer confidence rebounded last month in a sign that underlying economic conditions are not as weak as feared, mortgage provider Nationwide said.

Nationwide said its consumer confidence index rose by nine points to 47 in January - however this level is still nearly 30 points below average.

Improved industry surveys for the manufacturing and service sectors last month and a sharp fall in inflation to 3.6pc may have lifted consumers' spirits, the lender said.

Robert Gardner, Nationwide chief economist, said: "Looking forward, renewed hope that the UK will avoid a double-dip recession may support sentiment, especially since the downward trend in inflation is set to continue through 2012."

The...

Inflation to fall, easing pain for UK households

Wed, 15 Feb 2012 10:06:36 +0100

Households are expected to receive a welcome boost today when the Bank of England signals that inflation will fall below 2pc in the coming months, offering consumers' some respite after two years of shrinking incomes.

"A sharp drop"

Providing further cause for hope, economists said they expect Britain to avoid a double dip recession and to hold on to its treasured AAA rating despite Moody's decision to put the sovereign on "negative outlook".

The Bank's latest quarterly Inflation Report is expected today to show a...

Moody's issues credit warnings on nine European countries including the UK

Tue, 14 Feb 2012 09:57:27 +0100

Negative outlook for Austria, France and the UK. Italy, Malta, Portugal, Spain, Slovakia and Slovenia have ratings cut

Britain's AAA credit rating was thrown into doubt after the ratings agency Moody's said the ongoing euro crisis and a credit squeeze on the banking sector put the country at a higher risk of defaulting on its debts.

Moody's said that countries including the UK, France and Italy would be put on negative watch after citing "uncertainty" over Europe's handling of its ongoing debt crisis.

The possible loss of the UK's much coveted triple-A status will be a bitter blow for the chancellor George Osborne who has staked his reputation on distancing Britain from the ailing eurozone.

Riots and looting on the streets of Athens highlighted the confusion at...

Unemployment likely to worsen as private sector resorts to redundancies

Mon, 13 Feb 2012 11:30:34 +0100


Britons are facing their worst employment prospects since the recession thanks to a growing number of redundancies planned by private sector employers and deep job cuts in the public sector, a report warned on Monday.

Labour market experts at the Chartered Institute of Personnel and Development (CIPD) said their survey of employers points to a "widening chasm" between the north and south of the country for employment prospects.

The report paints a grim picture before official data is published this week, which is expected to show rising unemployment and a jump in the number of people signing on for jobless benefits.

A separate survey of business confidence from City accountancy group BDO suggests the economy will stand on firmer ground from the middle of the year....

Bank of England injects £50bn into economy

Fri, 10 Feb 2012 09:41:49 +0100

Bank of England policymakers have announced plans to pump £50bn of additional stimulus into the economy in an attempt to avert a second recession.

The Bank's Monetary Policy Committee voted to increase its quantitative easing (QE) programme, which will take the total assets purchased to £325bn since the process was started in March 2009. Interest rates were left on hold at 0.5pc as expected.

However, QE has left more than a million pensioners permanently poorer it was claimed on Thursday night. Economist Ros Altman, Saga's director-general, said the programme pushed annuity rates down, and had contributed to them falling...

A solution to the eurozone crisis: it's the real economy, stupid

Thu, 09 Feb 2012 11:27:54 +0100

Europe is debilitated by the effects of two years of desperate crisis management. The prescribed treatment resembles the old practice of bloodletting on ailing patients. Growing debts are paid with more loans, and new loans are made dependent on increasingly severe austerity measures. The results are a greater risk of recession, higher interest rates on refinancing loans, and the need for runaway financial aid to the southern eurozone countries. Greece is a dramatic portent of the direction things could take. Record-breaking unemployment of over 22% in Spain and record interest rates on Portuguese bonds show that the crisis fever is far from abating. Portugal, Spain and even Italy have still not managed to extricate themselves from the downward spiral of recession and debt. It is a vicious circle that increases the risk of a split in the eurozone – something that would have been unthinkable in 2009.

It has...

Degree places switch from university to FE colleges

Thu, 02 Feb 2012 15:48:19 +0100

Further education colleges are going to play a bigger role in offering degrees in England, as colleges are awarded funding for thousands of places previously held by universities.

Universities Minister David Willetts has announced that about half of the allocation of 20,000 lower-cost places will be in further education colleges.
Places were reserved for institutions with fees of £7,500 per year or less.
It will mean 143 further education colleges receive extra degree places.
Ministers want to make higher education more widely available through local further education colleges.
They are announcing they will fund about 9,500 degree places for college-based courses beginning this autumn out of the 20,000 held back for lower-cost places.
With some places held in reserve for appeals, it means...

Government offers NHS bill concessions

Wed, 01 Feb 2012 11:21:01 +0100

The government is to promise the health secretary will keep ultimate control over the NHS in England, as it pushes for Parliament to pass its NHS bill.

The legislation, which would bring a fundamental reorganisation of the service, has encountered opposition from peers and various groups.
But ministers will later table amendments aimed at quelling unrest.
These will include giving more powers to the health watchdog and doing more to encourage medical research.
Through the Health and Social Care Bill, Health Secretary Andrew Lansley is proposing the biggest shake-up since the NHS was founded in 1948.

'Backdoor privatisation'

Under the plans, groups of GPs will take charge of much of the NHS budget from managers working for primary care trusts, while...

EU summit: UK and Czechs refuse to join fiscal compact

Tue, 31 Jan 2012 09:56:25 +0100

Twenty-five of the EU's 27 member states have agreed to join a fiscal treaty to enforce budget discipline.

The Czech Republic and the UK refused to sign up. UK Prime Minister David Cameron said his government would act if the treaty threatened UK interests.
He still has "legal concerns" about the use of EU institutions in enforcing the fiscal treaty, he said.
The Czechs cited "constitutional reasons" for their refusal, France's President Nicolas Sarkozy said.
Czech President Vaclav Klaus, a Eurosceptic, may be reluctant to sign the treaty, analysts say.
The goal is much closer co-ordination of budget policy across the EU to prevent excessive debts accumulating.
Germany - the eurozone's biggest lender and most powerful economy - was particularly keen to get a binding treaty adopted to enforce budget rules.
The treaty...

Euro crisis hangs over latest EU summit

Mon, 30 Jan 2012 11:04:42 +0100

The eurozone crisis will dominate an EU summit on Monday, with an emphasis on growth and "smart" budget discipline.

The EU has more than 23 million unemployed people and there are fears that wide-ranging budget cuts will harm enterprise and training.
Cuts need to be "smart" - well-targeted - to allow room for future growth, the European Commission says.
Most member states - and not the UK - are expected to sign up to a new budget treaty, or "fiscal compact".
The goal is much closer co-ordination of budget policy in the 17-nation eurozone.
Diplomatic wrangling continues over the influence of non-eurozone countries in the new institutional set-up.
The UK opted out, in a blaze of publicity last month, but did secure observer status in the discussions.
Poland is insisting that it and other countries preparing...

RBS chief Stephen Hester's £963,000 bonus criticized

Fri, 27 Jan 2012 12:56:51 +0100

A £963,000 bonus in shares awarded to Royal Bank of Scotland boss Stephen Hester has been strongly criticised.

The Labour leader, Ed Miliband, said the payout represented a "disgraceful failure of leadership by the Prime Minister".
Lib Dem minister Jeremy Browne said Mr Hester should turn down the bonus.
RBS is 82%-owned by UK taxpayers and the body that overseas the government's stake said the bonus reflected Mr Hester's work "towards rebuilding RBS".
UK Financial Investments said the bonus, which is on top of Mr Hester's £1.2m salary, "reflects the significant contribution he has made towards rebuilding RBS in 2011".
The Conservative Mayor of London, Boris Johnson, said: "It seems to me the government should step in and sort it out."
He said Mr Hester was "an able man and doing...

Clegg: Raise tax threshold further and faster

Thu, 26 Jan 2012 10:16:27 +0100

Nick Clegg will say later that he wants the coalition government to go "further and faster" in raising the pay level at which people start paying income tax to £10,000 a year.

The deputy prime minister will argue that many families are at financial "boiling point" and need more relief.
The coalition has promised to raise the income tax threshold to £10,000 by the next election, set for 2015.
Labour said Mr Clegg had "a cheek preaching about fairness and tax".
The deputy PM's speech to the Resolution Foundation in London follows official figures showing the economy shrank by 0.2% in the final quarter of 2011.
It also comes ahead of the Budget on 21 March, increasing speculation that changes to tax thresholds could be announced.

Left vs right

The eurozone crisis and its global impact are set to dominate as the World Economic Forum (WEF) gets under way.

Germany's Chancellor Angela Merkel will open the annual meeting of some 2,600 top business leaders and politicians in the Swiss mountain resort Davos.
One topic tackled in numerous debates is the future of capitalism itself.
Also on the agenda are issues like the rise of China, financial regulation, and the aftermath of popular protests around the world.
The forum, now in its 42nd year, expects to attract nearly 40 heads of government and state, 19 of the world's 20 most influential central bankers, numerous government officials and the bosses of some of the world's largest companies.
They will mix with dozens of political activists and trade union leaders, young entrepreneurs and leading academics.

Trust in government has 'suffered a severe breakdown'

Mon, 23 Jan 2012 10:28:14 +0100

Public trust in government has suffered a severe breakdown across the world, according to the Edelman Trust Barometer.

Governments have been blamed for the financial and political chaos of 2011.
In 17 of 25 countries surveyed governments are now trusted to do what is right by less than half those questioned.
Overall trust in government fell by nine percentage points to 43%.
Trust in business also fell, from 56% to 53%.
Although businesses saw less severe declines in trust, countries at the heart of the eurozone saw sharper decreases.
Businesses in Spain, France and Germany saw trust decline by 21, 20 and 18 percentage points respectively.
China was the only country to see a significant rise in trust in businesses, up from 61% to 71%.
Trusting 'me'
Richard Edelman, president and CEO of Edelman, said: "Business is now better placed...

China wealth fund buys nearly 9% of Thames Water

Fri, 20 Jan 2012 10:04:20 +0100

China Investment Corporation (CIC), the country's sovereign wealth fund, has bought 8.68% of the company behind UK utility group Thames Water.

It marks the fund's first acquisition in the UK, and follows a visit to China this week by Chancellor George Osborne.

Thames Water is owned by Kemble Water, a consortium of investors led by Australian bank Macquarie.
CIC was set up in 2007 to invest some of China's huge $3.18tn (£2tn) in foreign exchange reserves.

In a one-sentence statement on its website, CIC said it bought the stake through a wholly-owned subsidiary. No purchase price was disclosed.

Thames Water, acquired by Kemble in 2006, is the...

UK unemployment increases by 118,000 to 2.69m

Thu, 19 Jan 2012 10:18:55 +0100

UK unemployment rose by 118,000 in the three months to November to 2.69 million, official figures show.

The Office for National Statistics (ONS) said the unemployment rate also rose to 8.4% from 8.3%, the highest since January 1996.
The number of people claiming Jobseeker's Allowance in December rose by 1,200 to 1.6 million.
The number of young people looking for work hit a new record of 1.043m, taking the rate for 16-24 year-olds to 22.3%.
The number of people in employment rose slightly in the three months to November by 18,000 to 29.12 million.
The figures support the picture of a flat UK economy, with other data released on Wednesday showing average weekly earnings, including bonuses, grew at just 1.9%.
The Prime Minister, David Cameron, said the figures were not good news: "Any increase in unemployment is disappointing and obviously a tragedy for the person who...

The school Leavers' Programme of KPMG : A good opportunity

Tue, 27 Dec 2011 13:54:58 +0100

Our School Leavers’ Programme is a great opportunity but it’s not for the faint hearted. Developing your work experience skills alongside your academic skills is hard work and challenging. Yes, we’ve created a time efficient study programme that means your Accounting Degree with Honours (obtained with a leading UK university) will also work towards your Professional Accounting Qualification; and yes, you will be supported every step of the way with a dedicated mentor, a support team and plenty of study time, but you will need to be highly motivated and be able to get good grades at A-Level.

Getting...

Oxford's student support most generous in country

Mon, 12 Dec 2011 11:58:39 +0100

Oxford offers the best no-strings financial support package for the poorest students from 2012, analysis of an independent website and app shows.

The Independent Taskforce on Student Finance Information has compiled a summary of all English university undergraduate financial support packages for 2012.

An analysis of the app's contents shows Oxford has the most generous no-strings-attached financial support for the lowest-income students of any university in the country – worth over £22,000 over three years.

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Moody's issues credit warnings on nine European countries including the UK

Unemployment likely to worsen as private sector resorts to redundancies

Bank of England injects £50bn into economy

A solution to the eurozone crisis: it's the real economy, stupid

Degree places switch from university to FE colleges

Government offers NHS bill concessions

'Backdoor privatisation'

EU summit: UK and Czechs refuse to join fiscal compact

Euro crisis hangs over latest EU summit

RBS chief Stephen Hester's £963,000 bonus criticized

UK banks take over 37bn in ECB loans