Credit Agricole sees profits rise

26 August 2010 Last updated at 03:03 ET

French bank Credit Agricole has reported a big rise in profits for the first half of the year, despite feeling the impact of the Greek debt crisis.
Net profits for the first six months rose to 849m euros (£693m; $1.1bn), the bank said.
That was despite a 379m-euro write-down at its Greek banking business Emporiki.
Credit Agricole’s net profits for the second quarter of the year totalled 379m euros, up nearly 90% on the same period of 2009.
They were also higher than forecast by most analysts, and second-quarter revenues of 5.5bn euros also beat expectations.
The bank’s earnings were boosted by a strong performance in its corporate and investment banking businesses, offsetting losses in Greece.
The investment bank made 330m euros in the second quarter, compared with an 87m-euro loss in the same period last year.
Emporiki, Greece’s third-largest lender, last month reported a 325.8m-euro loss for the second quarter, adding to the 209.3m euros lost in the first three months of the year.
Credit Agricole’s chief executive Jean-Paul Chifflet said his bank’s strong performance came despite an economic climate of “persistent uncertainty and economic weakness”.
The bank is the latest French lender to post better-than-expected results, following BNP Paribas and Societe Generale earlier this month.
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BAA and Unite still have scope to avert Bank Holiday strike horror

Such a resolution is devoutly wished for, since bringing Heathrow and Stansted to a standstill does not appear to be in the best interests of either the company or its staff, would harm the country’s faltering economy, and damage Britain’s reputation as a business centre and a tourist destination. And I really don’t mean to be selfish, but there is also the small matter of my planned departure for a week’s holiday in Greece.

The company argues that the pay offer “is fair and reasonable during a very difficult economic climate for the aviation industry” and it certainly must seem to management that everything that could go wrong has gone wrong this year, from increased security measures and BA strike action to volcanic ash clouds.
Still, the evidence is that things are, in fact, looking up. The number of people travelling through BAA’s UK airports in July rose 0.3pc to 11m in July, and Heathrow enjoyed a record month. According to the International Air Transport Association, the industry body, traffic levels are recovering and fares are rising. Orders for 400 new aircraft at last month’s Farnborough Airshow certainly suggest that there is some optimism in the air.
So BAA, which froze staff pay last year and is trying to impose a pretty substantial cut in real terms this year, could probably manage to be a little bit more generous, without appearing reckless. On the other hand, union leaders should bear in mind that this is a dispute over members’ pay, not their jobs, and deploy the weapons at their disposal for accordingly.
It is not just that I am worried about my holiday. I can’t believe it is beyond the wit of management and union leaders to bridge this gap, which doesn’t seem to be either particularly big or terribly complicated. If this dispute can’t be sorted out, what on earth will the carnage be like in the public sector, where spending cuts will mean real job cuts rather than just paltry pay awards?
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Start lending or face tax on profits, Vince Cable warns banks

By Daily Mail ReporterLast updated at 9:22 AM on 27th July 2010

Vince Cable has ordered banks to hand out loans or face the consequences

Banks must start lending to businesses - or face a hefty tax on their profits, the Business Secretary has warned.
Ordering banks to hand out loans or face the consequences, Vince Cable told bosses not to put bonuses and dividends first.
Recent figures show that some 500 businesses are collapsing every week - a sign that the economic climate remains bleak, even if the recession has ended.
And Mr Cable quoted Bank of England figures showing banks could lend an extra £50billion if they limited bonuses to 2007 levels and dividends to 2009 levels.
He called for all banks, including those owned by the State, to show ‘restraint on bonus payments and dividend payouts to shareholders’.
‘If bonus and dividend payments are too big, the Government has the option of looking at disincentives which could include a tax on their gross profits.’
He also warned banks to be ‘very, very self-conscious about their bonus and dividend payments’.
This is because he suspects they are prioritising paying multi-million-pound bonuses to their staff and generous handouts to their shareholders, rather than lending to businesses.
Mr Cable said: ‘There clearly is a choice between paying out cash in bonuses, and reinvesting it in new lending [to businesses].’
A second tax would be deeply unpopular in the sector. Banks have already been forced to fork out around £2billion in the ‘bonus tax’, charged at 50 per cent on windfalls over £25,000.
Meanwhile, figures show the lending drought to new businesses continues, according to the British Bankers’ Association. In May, net lending plunged into negative territory of minus £458million.
The figure, which takes into account the money paid back by businesses, was the worst score recorded since its monthly series began in October 2008.
The worst-hit victims are small firms, which Mr Cable said are ‘absolutely crucial for our growth’.

 

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World Cup exit hits Sports Direct

It said that sales in the run-up to the World Cup were strong and that on the
day that England played the USA it had its strongest ever day’s trading.
However England’s lacklustre performance after that dented sales.

“The period during the tournament was less successful and sales
correlated with the poor performance of the England team and the negative
mood this created amongst fans and consumers,” said Sports Direct.

“Therefore, the negative impact of clearing the excess stock will offset
some of the positive pre-tournament trade,” said that company.

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Don’t wait for the upturn, be ready for its arrival

Be positive, smile as you walk round the office. You don’t want your natural
anxiety to transfer to your workforce. But don’t hide the truth. Everyone in
your business is aware of the economic climate, they need an honest
assessment of their prospects, as does your bank manager, who is more likely
to give the support you need if he never gets any surprises.

Don’t be tempted to wait for the upturn, every business can cut out waste, buy
cheaper and be more efficient. To keep ahead of the competition you must
look for continuous improvement.

In two to three years, many of the survivors will be in a strong position, so
watch the cash. A healthy balance sheet increases your chance of being one
of the long-term winners.

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Pension reform must be accepted by public sector unions and workers

Gillian Hibberd, former president of the Public Sector People Managers’
Association, said the current
final salary scheme was no longer viable and warned crucial front-line
services and jobs would be adversely affected if the costs were not brought
down.

“In its current form, workers must accept the final salary scheme is no longer
affordable. Closing it to future accrual, or creating a hybrid or
career-average scheme, are all serious considerations. Without changes, in
the current economic climate, the squeeze on budgets will inevitably lead to
service cuts or job cuts, and that shouldn’t happen. We need pensions
reform.”

The recommendations
by the Commission, made up of experts from leading bodies including the
Institute of Directors and Institute of Economic Affairs, come ahead of the
Coalition’s newly created pension reform body, chaired by former Labour
minister John Hutton and due to report in October.

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Civil servants redundancy pay to be capped ‘as soon as possible’

A Bill will be introduced to limit the cost of future redundancy payments by
capping all compulsory redundancy pay-offs at 12 months’ pay and limiting
amounts for voluntary severance to 15 months’ salary.

The Cabinet Office said the move was aimed at bringing Civil Service payments
in line with the best practice in the private sector.

Mr Maude said: “Our system of a permanent politically impartial Civil Service
is one of the jewels in our constitution and it is rightly admired
throughout the world for the way it serves the elected Government of the
day.

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Queen cutting back as maintenance grant is slashed by £3.3m

By
Rebecca English
Last updated at 7:33 AM on 6th July 2010

The Queen has embraced the economic downturn with dramatic cuts to her spending, forcing her to take the axe to staff costs and royal travel, it was revealed last night.
And with maintenance bills also hit, staff at Buckingham Palace have even been spotted using buckets to catch the rainwater from leaks.
A package of austerity measures has seen the cost of the monarchy to taxpayers drop by 7 per cent to £38.2million in 2009-10 - the equivalent of 62p per subject.

Thrifty: The Queen, pictured with the Duke of Edinburgh in Canada, has cut back on Royal spendingThe single biggest fall in spending was on planes, trains and
helicopters - cut by 40 per cent to £3.9million. Prince Charles and
Prince Andrew still managed to run up more than £1.2million on private
jets and other flights, however. The Queen receives £7.9million a year from the Civil List,
which pays for the running of the Royal Household, including staff
salaries. The figure has been unchanged for 20 years, forcing the
monarch to dip into her savings. Last year alone, this amounted to
£6.5million.
Aides admit they have enough spare cash to last only another
12 months - meaning the Queen could effectively be bankrupt by the time
of her Diamond Jubilee in 2012. Officials insist this would never be
allowed to happen.
Aides say the Queen is acutely conscious of the current
economic climate and wants to ‘lead by example’ in tightening her belt.
But they also warn that some savings may not prove cost effective in
the long term. Currently there is a £40million ‘black hole’ in the budget for essential royal maintenance and, with a £500,000 cut in funding next year, dozens of essential projects are being put off.
Rainwater has been seen dripping through ceilings in the
Ballroom and Queen’s Gallery, home to Old Masters worth millions of
pounds. Last night Sir Alan Reid, Keeper of the Privy Purse and the
Queen’s chief ‘bean counter’, promised that the cost-cutting measures
would continue indefinitely and could include a recruitment freeze. He said: ‘The Royal Household is acutely aware of the
difficult economic climate and took early action to reduce its Civil
List expenditure. It is acknowledged that the necessary cuts in public expenditure will have an impact on the backlog of essential maintenance.’

Economical: The Queen is ‘acutely aware’ of the difficult economic climate, the Keeper of the Privy Purse said yesterdaySir Alan, who took a salary reduction of £14,000 last year to
£180,000, added: ‘In the meantime, the Household is continuing to
pursue opportunities to reduce costs and generate income from the
Estate’s assets, including commercial lettings and management charges.’The figures were revealed in the Royal Household’s annual report.

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Royal Family tightens belt as cost of keeping monarchy drops by £3.3m

By
Daily Mail Reporter
Last updated at 4:47 PM on 5th July 2010

Royal Family costs each taxpayer 62p per yearDrop of 8% as Queen cuts back on charter flightsQueen to run out of funds by Diamond Jubilee in 2012The Queen has reined in spending in the wake of the economic crisis, resulting in a drop in the cost of keeping the Royal Family.
The Royal Family cost each taxpayer just 62p last
year - a drop of 7p on 2008/09, according to Buckingham Palace accounts.The total cost of keeping the monarchy fell by £3.3 million (7.9 per cent) to £38.2million during the 2009/10 financial year.
The Queen, pictured with the Duke of Edinburgh in Canada yesterday, has cut back on Royal spendingThe drop has been attributed to cuts in the number of
commercial charter flights taken by the Royals and a refund of lease
rentals from the Queen’s helicopter, which was replaced last year.
A spokesman said the fall equated to a drop in real terms of 12.2 per cent.The accounts also showed that the Queen dipped into a reserve fund to boost her Civil List by £6.5million in 2009, meaning at current rates she will be effectively broke by the 2012 Golden Jubilee.

This is the highest amount ever drawn from the reserve, which comes from surplus Civil List money accumulated in the 1990s.Sir Alan Reid, Keeper of the Privy Purse, said: ‘The Royal Household
is acutely aware of the difficult economic climate and took early
action to reduce its Civil List expenditure by 2.5 per cent in real
terms in 2009.’We are implementing a headcount freeze and reviewing every vacancy to see if we can avoid replacement.’Property services funding will be reduced by £0.5million this year.
‘Work will continue on assessing the condition of the Estate, but it
is acknowledged that the necessary cuts in public expenditure will have
an impact on the backlog of essential maintenance which it is hoped can
be addressed in the longer term.’In the meantime, the
Household is continuing to pursue opportunities to reduce costs and
generate income from the Estate’s assets, including commercial lettings
and management charges.’
Economical: The Queen is ‘acutely aware’ of the difficult economic climate, the Keeper of the Privy Purse said todayThe total cost of the Queen’s Civil
List - which pays for the running of the Royal Household including
staff salaries - was £14.2million in 2009, up £300,000.It was made up of £7.9million from the Government and £6.5million from the reserve.If the Queen continues drawing on the reserve at the current rate, she is expected to run out of funds by the start of 2012 - the year of her Diamond Jubilee.The current deal for the Civil List - which gives the Queen £7.9million a year - was agreed by then prime minister Sir John Major in 1990.It had been thought the Queen would request an increase but Chancellor George Osborne announced as part of his Budget last month that it will remain frozen at £7.9million for the coming year.Mr Osborne said the Queen had given her full agreement to the decision to freeze the sum.He added that ‘a new means of consolidated support’ would be proposed at a later date.Republic, a group which is campaigning for a democratic alternative to the monarchy, protested outside Buckingham Palace today.Campaign manager Graham Smith said: ‘With European elected head of states costing a fraction of this official figure, it’s clear the monarchy continues to waste many millions of pounds of taxpayers’ money when frontline services are being threatened.”The Government’s plans for reviewing and reforming the monarchy costs must now be brought forward and we must know the details of what this money is spent on - travel costs, money spent on personal luxuries, butlers and dressers.’There is no reason why the Queen can’t be on a salary and be given a £1-2billion budget for running her office. It’s time to slash the budgets without reservation or sentiment.’£52,000 bill just for the Royal Train to leave its sidingsTaxpayers forked out a staggering  £52,631 each time the Royal Train left its sidings.Over the last 12 months the train, with its distinctive maroon carriages and gold-leaf livery, was used on just 19 occasions.Admittedly that’s five more journeys than the previous year, covering an average distance of 751 miles.
Costly: The Royal Train cost taxpayers more than £50,000 every time it left its siding

But given the current economic climate, the figures are bound to spark debate as to whether it is a cost-effective method of transport in this day and age.The Royal Train is comprised of nine coaches and, says Buckingham Palace, allows members of the Royal Family to meet their busy schedules by travelling overnight in a secure environment.Only the Queen and the Duke of Edinburgh, Prince Charles and the Duchess of Cornwall are allowed to use it, however, in a bid to keep down costs.Last year took Charles it up to the Lake District to launch The Red Squirrel Survival Trust at a cost of £14,756 and spent a further £23,792 taking it down from his Scottish country retreat to Portsmouth to attend a military remembrance service. The Queen and the Duke of Edinburgh’s trip from Windsor Castle to Blackpool to watch the Royal Variety Performance staring Lady Gaga cost £21,002. The monarch also spent £19,541 taking it from Euston to Edinburgh for a week of engagements last June.A senior Buckingham Palace official admitted  today that it was an expensive way to travel but argued that its benefits still outweighed its costs.He said: ‘It’s expensive, we know that, but we have tried to use it more this year and keep the costs down as much as possible.’It is also important to bear in mind that when members of the Royal Family are using the Royal Train they do not require overnight accommodation for either themselves, their staff or their security. It also offers a degree of comfort for the Queen and the Duke of Edinburgh, who are both in their 80s.’We are continuing to keep an eye on its cost but for the time being think it is still justifiable. I am sure that in the run up to the Diamond Jubilee in 2012 it will be used even more.’

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Jacques Vert to pay first dividend since 1995

Shareholders will now receive a final dividend of 0.65p per share - payable on
October 15 - which the company said was part of a “progressive dividend
policy”.

“Despite our strong start to the new financial year, our outlook for the
remainder of this year is cautious in view of the prevailing economic
climate,” said Paul Allen, chief executive, in a statement.

“Stock and costs have been controlled well, cash will continue to be
managed carefully and we will take steps to ensure the business is protected
against the difficult economic environment.”

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