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Flying Brand profit crashes

first_img Flower and gardening home shopping group Flying Brands today said its half-year, pre-tax profits slid 26 per cent to £1.4m but added that confidence about shoppers’ spending meant it was recommencing shareholder payouts. But the firm, which owns the floral delivery service Flying Flowers, still announced an interim dividend of 1.6p a share after it had ditched the payout in March last year. It said sales in its gardening arm, which offers flowers, bird food and seeds online, were down slightly from £11.3m during the six months to July last year to £11m this time. The group’s chief executive, Stephen Cook, said: “Our confidence in the future of Flying Brands is reflected in our decision to return to paying dividends.” The company said future sales should increase. Share KCS-content More From Our Partners Florida woman allegedly crashes children’s birthday party, rapes teennypost.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.comSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.com980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comUK teen died on school trip after teachers allegedly refused her pleasnypost.comKiller drone ‘hunted down a human target’ without being told tonypost.comBill Gates reportedly hoped Jeffrey Epstein would help him win a Nobelnypost.comMark Eaton, former NBA All-Star, dead at 64nypost.com whatsapp Wednesday 11 August 2010 8:24 pm center_img whatsapp by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailNoteabley25 Funny Notes Written By StrangersNoteableyZen HeraldThe Truth About Why ’40s Actor John Wayne Didn’t Serve In WWII Has Come To LightZen HeraldBetterBe20 Stunning Female AthletesBetterBeautooverload.comDeclassified Vietnam War Photos The Public Wasn’t Meant To Seeautooverload.comAtlantic MirrorA Kilimanjaro Discovery Has Proved This About The BibleAtlantic MirrorTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastElite HeraldKate Middleton Dropped An Unexpected Baby BombshellElite HeraldTrading BlvdThis Picture of Prince Harry & Father at The Same Age Will Shock YouTrading Blvd Tags: NULL Show Comments ▼ Flying Brand profit crashes last_img read more

F&C to see fund levels fall

first_img KCS-content whatsapp Share Sunday 22 August 2010 10:07 pm Tags: NULL TROUBLED F&C Asset Management will report a fall in client fund levels this week despite the acquisition of Thames River Capital, Numis Securities has predicted.F&C is forecast to say assets under management stood at £99.9bn at the end of June, down 1.6 per cent from April’s number but up 13 per cent year-on-year. The takeover of hedge fund boutique Thames River, due to complete next month, will add around £4.2bn to F&C’s assets.F&C’s share price has been under pressure this year. The stock closed unchanged at 63p on Friday, having jumped 11.5p earlier in the week on the back of takeover talk.Chief executive Alain Grisay is expected to meet with rebel shareholder Edward Bramson following the interim figures on Thursday. Bramson built up a 9.7 per cent stake in F&C last week through his AIM-listed turnaround vehicle, Sherborne.Sherborne has a track record of buying shares in underperforming companies and forcing management change. F&C will be wary of Bramson’s potential to stir up discontent among other shareholders.Numis believes F&C will deliver underlying earnings per share of 2.2p, up 0.3p year-on-year, based on an 11.9 per cent uplift in revenue to £117.6m. In a note to clients, analyst David McCann predicted a half-year dividend of 2p per share. whatsapp Show Comments ▼ Read This Next’A Quiet Place Part II’ Sets Pandemic Record in Debut WeekendFamily ProofHiking Gadgets: Amazon Deals Perfect For Your Next AdventureFamily ProofIndian Spiced Vegetable Nuggets: Recipes Worth CookingFamily 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 ProofBack on the Rails for Summer New York to New Orleans, Savannah and MiamiFamily ProofTortilla Mango Cups: Recipes Worth CookingFamily ProofWhat to Know About ‘Loki’ Ahead of Disney+ Premier on June 9Family ProofCheese Crostini: Delicious Recipes Worth CookingFamily Proof F&C to see fund levels fall last_img read more

BANK BOSS DIMON HIT BY HOUSE PRICE WOES

first_img Show Comments ▼ Sunday 5 September 2010 9:31 pm by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastNoteabley25 Funny Notes Written By StrangersNoteableyMoneyPailShe Was The Dream Girl In The 90s, This Is Her NowMoneyPailSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBetterBe20 Stunning Female AthletesBetterBemoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comElite HeraldExperts Discover Girl Born From Two Different SpeciesElite Heraldautooverload.comDeclassified Vietnam War Photos The Public Wasn’t Meant To Seeautooverload.comZen HeraldThe Truth About Why ’40s Actor John Wayne Didn’t Serve In WWII Has Come To LightZen Herald LIFE sucks if you’re the boss of one of the world’s largest banks in the wake of the crisis – not only are you required to defend your dwindling pay package and parry stinging verbal attacks from politicians on an almost daily basis, but you’re also cursed with ill luck in the real estate arena.The latest of the bank honchos having to offload prime swathes of property for a pittance is JP Morgan Chase boss Jamie Dimon, who first put his Chicago Gold Coast home on the market a couple of years back for $13.5m (£8.74m).Despite the impressive array of attributes to the property – it boasts a sizeable rooftop terrace, state of the art gym, eight bedrooms, 11 bathrooms (do the pets have their own washing facilities too, we wonder?), a wine vault and media room – it lingered on the estate agent’s books, dropping to just $9.5m earlier this year.Now, that asking price has diminished yet further, to a relatively piddling $6.95m. Ouch.Still, at least Dimon can seek comfort from his peers. Goldman Sachs boss Lloyd Blankfein, of course, offloaded his own five-bedroom duplex apartment on Park Avenue just last month for around $12m – a hefty cut from the original price tag of $15m.BRUNCH DATETo Boisdale of Belgravia yesterday for a cheeky brunch – the first of many, The Capitalist hopes, as the restaurant has this week started opening its doors to the braying public on a Sunday. Guests at the launch ranged from the likes of Bill Martin – Scottish songwriter to the likes of Elvis (right), the Bay City Rollers and Cliff Richard – to Tory MP Mark Field, looking tanned after spending the bulk of the parliamentary summer recess at his holiday home in Majorca. “It’s going to be a bit of a culture shock,” he chuckled at the thought of returning to sit in Westminster today.KICK STARTCompetitive financial workers over in Canary Wharf will have a new way to let off steam this week, as the Rugby Football Union (RFU) brings its Touch Rugby Corporate Challenge to the Docklands.Anyone can put together a team of four people for the event, which will be held in Canada Square Park and consist of quick-fire matches lasting five minutes each way, starting at 11am and running through until 8pm. Teams can register at [email protected] – though there’s got to be a lady on the pitch for each team at any one time, and there’ll be no tackling, scrum, mauling, line-outs or kicking, for the more hardcore beefcakes out there.STAR OF THE STAGEA snippet of advice for the business leaders of the City, courtesy of recruiter FiveTen’s marketing guru Adam Nicoll.Nicoll tells me his passion outside of recruitment is for amateur drama, having signed up to a theatre company a few years ago. Since then, he’s played roles as diverse as Toad in The Wind in the Willows, Henry VIII in A Man For All Seasons and (his latest outing) the gay German officer in ‘Allo ‘Allo. Apparently, “nothing else comes close” to treading the boards in teaching you the teamwork and presentation skills needed to become a successful business leader. Hop to it, folks. whatsapp KCS-content Share BANK BOSS DIMON HIT BY HOUSE PRICE WOES whatsapp Tags: NULLlast_img read more

LSE boss: help me protect the city

first_imgTuesday 14 September 2010 9:17 pm whatsapp Video Carousel – cityam_native_carousel – 426 00:00/00:50 LIVERead More KCS-content More From Our Partners Killer drone ‘hunted down a human target’ without being told tonypost.comRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgUK teen died on school trip after teachers allegedly refused her pleasnypost.comI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.comBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.comWhy people are finding dryer sheets in their mailboxesnypost.com‘Neighbor from hell’ faces new charges after scaring off home buyersnypost.comMark Eaton, former NBA All-Star, dead at 64nypost.comBill Gates reportedly hoped Jeffrey Epstein would help him win a Nobelnypost.comFlorida woman allegedly crashes children’s birthday party, rapes teennypost.com980-foot skyscraper sways in China, prompting panic and evacuationsnypost.com Show Comments ▼ THE London Stock Exchange’s boss last night called on those involved in the capital raising business to back his campaign against proposed new rules he fears could “severely” impact London’s competitiveness.There are growing fears that the new rules could chase capital raising out of London, robbing the City of much-needed income and jobs.Xavier Rolet opposes controversial plans to split the regulation of the primary and secondary capital raising markets between the new Consumer Protection and Markets Authority (CPMA) and a strengthened Financial Reporting Council (FRC). While seemingly obscure, the move will have serious repercussions, critics warn.Others in the City agree but have so far largely kept their counsel. Yesterday Rolet asked for more critics of the government’s proposals to come forward, for the sake of the City and its ability to raise funds for large and small companies alike. “I don’t speak for others but I would say that I would not be surprised if a number of other participants issued similar views to ours,” he told City A.M. “I want to encourage them to make their views known. We need a robust response to the consultation.”The government’s consultation process ends on 18 October. “We don’t have long,” warned Rolet.Rolet is concerned that separating the regulation of primary listings – those companies that are raising money for the first time – from the regulation of secondary listings makes little sense, since it will make regulation less efficient. But he is most concerned about the consequences of doing this on the UK’s influence in Brussels.The CPMA has the UK’s only vote on Europe’s new super regulator. Rolet fears that it will not be able to represent the views of the primary listings market there if that area is no longer within its remit. “Given the sheer weight of regulation, you need to have experts in the room who have a detailed understanding of both primary and secondary market issues and are responsible for the outcome,” he said.Rolet said he was positive the government was consulting on the issue and is hopeful changes can be made.The Investment Management Association has criticised the changes. It says that separating the regulation of primary and secondary markets could increase risks of market abuse. The Association of British Insurers and the National Association of Pension Funds told City A.M. they were still consulting their members. For its part, the FRC is refusing to say whether it even wants the new responsibilities. Stephen Haddrill, the chief executive of the FRC, said: “We will make our views known to government when we have completed our own analysis.” Share Ad Unmute by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryUndoPeople TodayNewborn’s Strange Behavior Troubles Mom, 40 Years Later She Finds The Reason Behind ItPeople TodayUndoTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastUndoMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailUndoSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesUndoBetterBe20 Stunning Female AthletesBetterBeUndomoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comUndoElite HeraldExperts Discover Girl Born From Two Different SpeciesElite HeraldUndoautooverload.comDeclassified Vietnam War Photos The Public Wasn’t Meant To Seeautooverload.comUndo LSE boss: help me protect the city whatsapp Tags: NULLlast_img read more

HP and Oracle sign agreement over transfer of Mark Hurd

first_img Show Comments ▼ Tags: NULL whatsapp HEWLETT-PACKARD said yesterday it has settled a legal dispute over Oracle’s hiring of Mark Hurd.The companies did not disclose the terms of the settlement, but said in a joint press release that, “Hurd will adhere to his obligations to protect HP’s confidential information while fulfilling his responsibilities at Oracle.”In a filing with the US Securities and Exchange Commission, HP said Hurd has agreed to modify the terms of his separation agreement.HP said Hurd has agreed to waive his rights to the 330,177 performance-based restricted stock units granted to him in January of 2008, and to the 15,853 time-based restricted stock units granted to him in December 2009.Oracle announced the hiring of Hurd as co-president earlier in September, roughly a month after he was ousted as HP’s chief executive. HP said he filed inaccurate expense reports related to a female contractor.HP sued Hurd shortly after Oracle hired him, and sought to block him from joining the company.But the companies reaffirmed their commitment to their partnership on yesterday.“Oracle and HP will continue to build and expand a partnership that has already lasted for over 25 years,” said Oracle boss Larry Ellison. HP and Oracle sign agreement over transfer of Mark Hurd whatsapp Sharecenter_img Monday 20 September 2010 8:58 pm 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 PastNoteabley25 Funny Notes Written By StrangersNoteableyPeople TodayNewborn’s Strange Behavior Troubles Mom, 40 Years Later She Finds The Reason Behind ItPeople TodayMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItBetterBe20 Stunning Female AthletesBetterBemoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.com More From Our Partners Native 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.orgI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgKiller drone ‘hunted down a human target’ without being told tonypost.comFlorida woman allegedly crashes children’s birthday party, rapes teennypost.com last_img read more

RBC in £1bn deal for BlueBay

first_imgMonday 18 October 2010 2:58 am whatsapp John Dunne RBC in £1bn deal for BlueBay Tags: NULL Show Comments ▼ whatsappcenter_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 PastSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItBetterBe20 Stunning Female AthletesBetterBemoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comTaonga: The Island FarmThe Most Relaxing Farm Game of 2021. No InstallTaonga: The Island Farmthedelite.comNetflix Cancellations And Renewals: The Full List For 2021thedelite.comZen HeraldNASA’s Voyager 2 Has Entered Deep Space – And It Brought Scientists To Their KneesZen Herald 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 WrapHarvey Weinstein to Be Extradited to California to Face Sexual AssaultThe Wrap’Sex and the City’ Sequel Series at HBO Max Adds 4 More ReturningThe WrapPink Floyd’s Roger Waters Denies Zuckerberg’s Request to Use Song in Ad:The Wrap’The View’: Meghan McCain Calls VP Kamala Harris a ‘Moron’ for BorderThe WrapNewsmax Rejected Matt Gaetz When Congressman ‘Reached Out’ for a JobThe Wrap2 HFPA Members Resign Citing a Culture of ‘Corruption and Verbal Abuse’The Wrap Share BlueBay Asset Management has agreed an all cash takeover by Canadian bank Royal Bank of Canada (RBC).The deal values the company at around £1bn.BlueBay shareholders will receive 485p in cash for each of their shares.Shareholders will also get the dividend of 7.5p proposed at the end of last year.BlueBay is one of the largest fixed interest fund managers in Europe with about $40 billion of assets under management. George Lewis, group head of RBC wealth management said: “This acquisition will further RBC’s strategy to leverage our position as a top 10 global wealth manager, and continue to expand our asset management solutions for the benefit of our clients around the world.” last_img read more

Sport retailers cleared by fraud probe but individuals are still under scrutiny

first_img Share Ad Unmute by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryUndoTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastUndoMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailUndoSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesUndoBrake For ItThe Most Worthless Cars Ever MadeBrake For ItUndoBetterBe20 Stunning Female AthletesBetterBeUndomoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comUndoPeople-TodayWoman Files For Divorce After Seeing This PhotoPeople-TodayUndoTaonga: The Island FarmThe Most Relaxing Farm Game of 2021. No InstallTaonga: The Island FarmUndo KCS-content Video Carousel – cityam_native_carousel – 426 00:00/00:50 LIVERead More SPORTS Direct and JJB Sports have been cleared by a fraud probe, although investigations into unidentified individuals continue, the two companies announced yesterday.Britain’s Serious Fraud Office (SFO) had been investigating both sporting goods retailers over possible price fixing and fraud.“No charges are to be brought against the companies or any companies within their corporate groups. The Serious Fraud Office’s investigation into individuals continues,” Sports Direct said in a statement that was later echoed by JJB Sports.The probe was carried out under the Competition Act, which covers cartel offences against companies. Sports Direct, Britain’s biggest sporting goods retailer and which is controlled by Newcastle United soccer club owner Mike Ashley, declined to identify the individuals being investigated.“This announcement giving Sports Direct a clean bill of health regarding the SFO investigation is what investors were hoping for,” said Singer analyst Matthew McEachran.“The shares have run up in anticipation of this result though. Furthermore, with the investigation into individuals still ongoing there remains some risk and uncertainty to the investment case,” he said.Sports Direct International’s brands include Dunlop, Slazenger and Lonsdale. Sport retailers cleared by fraud probe but individuals are still under scrutiny whatsapp More From Our Partners Russell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comMatt Gaetz swindled by ‘malicious actors’ in $155K boat sale boondogglenypost.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgKiller drone ‘hunted down a human target’ without being told tonypost.comA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.org Show Comments ▼ whatsapp Tuesday 19 October 2010 7:42 pm Tags: NULLlast_img read more

WHAT THE OTHER PAPERS SAY THIS MORNING

first_img Share KCS-content Ad Unmute by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryUndoTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastUndoMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailUndoNoteabley25 Funny Notes Written By StrangersNoteableyUndoSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesUndoBrake For ItThe Most Worthless Cars Ever MadeBrake For ItUndoBetterBe20 Stunning Female AthletesBetterBeUndomoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comUndoMagellan TimesThis Is Why The Roy Rogers Museum Has Been Closed For GoodMagellan TimesUndo whatsapp Tags: NULL whatsapp Show Comments ▼ WHAT THE OTHER PAPERS SAY THIS MORNING Wednesday 20 October 2010 8:55 pm FINANCIAL TIMESTRICHET OPPOSES DEAL IN EU BUDGETJean-Claude Trichet, president of the European Central Bank, has refused to endorse the full package of Eurozone sanctions decided by European Union finance ministers this week. The revelation came amid mounting criticism in Germany of a compromise deal that Angela Merkel, the chancellor, agreed with Nicolas Sarkozy, the French president, that watered down measures to enforce strict debt and deficit control.FED EYES FLEXIBLE STIMULUSOfficials at the US Federal Reserve are considering a fresh monetary stimulus that would combine guidance on the provisional scale of a new programme and a time frame for buying assets with the flexibility to adjust its size at regular meetings. Although no decision has been made to launch a new round of quantitative easing, Fed officials are weighing an approach that allows more discretionary meeting-by-meeting decisions than the unconditional “shock and awe” stimulus it launched during the depths of the crisis in 2008 and 2009.THE TIMESBATTLE OF BA OVER BY CHRISTMASBritish Airways has offered its cabin crew a new peace deal that potentially removes the threat of strikes this Christmas and end a bitter dispute. Unite has agreed to put the offer to BA’s 11,000 cabin crew after the union secured concessions from the airline on the reinstatement of staff travel perks. If crew vote to accept the offer in a ballot, it will end an industrial dispute that has dragged on for 18 months. BA’s cabin crew have conducted a series of strikes this yearThe Daily TelegraphGuy Hands was accused of suing Citigroup over music group EMI only to protect his fortune and the reputation of Terra Firma, his private equity firm. In the third day of the trial in New York, the UK financier was presented with the transcript of a speech he gave to EMI employees in September 2007 in which he told them “60 per cent to 70 per cent of my wealth is dependent on how EMI does”. last_img read more

Germany agrees tax reform

first_img whatsapp whatsapp Senior members of the German government agreed a tax reform plan yesterday to curb the extent of a tax rise for energy intensive companies from 2011 by hiking tobacco duty. Government officials also agreed on a simplification of the tax system from 2012 which would bring tax relief of €500m (£445m), the ministers said. The package means corporate energy consumers will not be hit as hard by the environmental tax as first thought. Parliament must debate the plan before it can be adopted. Read This NextThe Truth About Bottled Water – Get the Facts on Drinking Bottled WaterGayotRicky 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 WrapHarvey Weinstein to Be Extradited to California to Face Sexual AssaultThe WrapPink Floyd’s Roger Waters Denies Zuckerberg’s Request to Use Song in Ad:The Wrap’The View’: Meghan McCain Calls VP Kamala Harris a ‘Moron’ for BorderThe WrapNewsmax Rejected Matt Gaetz When Congressman ‘Reached Out’ for a JobThe Wrap2 HFPA Members Resign Citing a Culture of ‘Corruption and Verbal Abuse’The Wrap KCS-content Germany agrees tax reform Sunday 24 October 2010 11:26 pm Show Comments ▼ Share Tags: NULLlast_img read more

A welcome ceasefire – but not peace

first_img KCS-content Show Comments ▼ whatsapp More From Our Partners Astounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.org‘Neighbor from hell’ faces new charges after scaring off home buyersnypost.comRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.org Sunday 24 October 2010 11:32 pm whatsapp Share A welcome ceasefire – but not peace THERE will undoubtedly be some exuberance in the markets this morning on the back of this weekend’s G20 quasi-deal on currencies. Given that the possibility of currency wars has become an even greater risk to the world than the possibility of a sovereign default, a collective sigh of relief would be perfectly understandable. It would be a mistake to uncork the champagne too soon, however, for the document is long on generalities and desperately short on specifics. Parts of this weekend’s communiqué admittedly make for reassuring reading. Especially interesting were the sections on agreeing to “move towards more market-determined exchange-rate systems that reflect underlying fundamentals”; the pledge to “refrain from competitive devaluation of currencies”; and the section stating said that persistently large current account imbalances — to be assessed against indicative guidelines yet to be agreed — would warrant an assessment by the IMF. The first two are positive – assuming, that is, that words eventually lead to actions – while the third may be helpful but could easily go wrong. The first quote addresses China’s policy of under-valuing the yuan to help its exporters; the second tackles the perception that the US is deliberately depressing the greenback, most notably against the euro, for example by constantly hinting that more QE is to come; the last demonstrates a growing understanding that excessive current account surpluses have allowed Asian governments to hoard vast amounts of foreign currency reserves.The communiqué fell short of a new Plaza-style accord to manage the greenback’s decline. But that is a good thing: the 1985 accord was a disaster. It allowed too extreme a dollar devaluation, prompting Tokyo to slash rates in response, fuelling a bubble and bust the Japanese have still not fully recovered from. We should be careful of excessively grandiose plans for the currency markets; they have a terrible tendency to backfire. The communiqué didn’t include numerical targets for the size of countries’ current account balances, as proposed by America. Yet the absence of any such number is to be welcomed. A country’s current account tallies its trade (exports minus imports), net factor income (interest and dividends) and net transfer payments (foreign aid). It is absurd to try and centrally plan such a complex statistic, little more than an artefact made up by clever economists. A massive current account deficit or surplus may indicate an underlying economic problem – but it is the problem itself that needs tackling, not its manifestation. There is nothing wrong per se with trade surpluses or deficits; to think otherwise is to fall prey to an age-old mercantilistic fallacy. The purpose of an economy is not to export as much as possible and import as little as possible; the opposite is the truth. We only need to export because we want to import and consume what companies in other countries are able to produce. It may even make sense for some countries to specialise in exporting capital and importing goods. China’s surplus is only an issue because it is caused by exchange rate manipulation; and because surpluses are being recycled into bonds, bidding up their price and fuelling new bubbles. It is great the G20 is finally beginning to accept this analysis. Yet it has no mechanism for delivering reforms. Let us hope that, for once, reason actually ends up triumphing against all the [email protected] Tags: NULLlast_img read more