Difficult year ahead for China admits Premier Wen Jiabao

China faces a difficult year as it works to maintain economic growth and spur
development, but it would not be bullied into boosting the value of its
currency, Premier Wen Jiabao said today.

In a wide-ranging press conference at the end of China’s annual session of
parliament, Mr Wen said Beijing was not ready to withdraw stimulus measures
put in place in late 2008 to pull the world’s third-largest economy out of
the crisis, and denied criticism that China is keeping its currency
undervalued in order to boost exports.

He also said that he would not allow the US to push China on the issues of
China and Tibet, and claimed he was snubbed at last year’s Copenhagen
climate change summit.

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Difficult year ahead for China admits Premier Wen Jiabao

China faces a difficult year as it works to maintain economic growth and spur
development, but it would not be bullied into boosting the value of its
currency, Premier Wen Jiabao said today.

In a wide-ranging press conference at the end of China’s annual session of
parliament, Mr Wen said Beijing was not ready to withdraw stimulus measures
put in place in late 2008 to pull the world’s third-largest economy out of
the crisis, and denied criticism that China is keeping its currency
undervalued in order to boost exports.

He also said that he would not allow the US to push China on the issues of
China and Tibet, and claimed he was snubbed at last year’s Copenhagen
climate change summit.

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WPP profits hit by ‘brutal’ 2009

The world’s biggest advertising group, WPP, saw profits fall by 11% to £663m ($1bn) in 2009 as the economic downturn bit hard into its business.Chief executive, Sir Martin Sorrell, told the BBC that last year the firm had been “staring into the abyss”. He added that the corner had now been turned and that after cutting 14,000 staff last year - about one in 10 workers - it was now hiring again. WPP said that it expected 2010 to be a more stable year. That, though, was followed by the phrase in brackets: “famous last words”.








“Although 2009 was a brutal year overall the group adjusted its cost base, after a difficult first six months, to falling like-for-like revenues,” the firm said. WPP conceded that the group had been slow to react to significant declines in revenue in the first half of the year, suggesting staff cuts should perhaps have been more severe during that period. However it admitted that more swingeing reductions might ultimately have damaged the business. The figures were worse than had been expected, pushing shares 2.6% lower in early trading - one of the biggest fallers in London. But by mid-morning, they had recovered and were down just 4 pence at 620p. Major eventsLooking forward, Sir Martin said growth was expected to continue to come from the so-called Bric countries - Brazil, Russia, India and China.

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He singled out India in particular as somewhere that was experiencing a consumer boom. But he said worries about unemployment and low growth meant consumers and clients were generally still cautious. He hit out at corporations that had cut back on advertising spending saying that they wrongly believed that they could “cost-cut their way to prosperity”. But on a brighter note, he said the Winter Olympic Games in Vancouver, the Asian games in Guangzhou, China and the FIFA World Cup in South Africa were among major events which WPP expect will bolster its revenue in 2010. There was an indication that the year had started brightly as new net billings - or new business won - was $2bn in the first two months of the year, already half of the amount earned in the whole of 2009. WPP, which includes advertising agencies such as Ogilvy & Mather and JWT, moved his headquarters to Dublin in 2008 for tax reasons.

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28% of firms plan job cuts this year, shocking report warns

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By
Becky Barrow
Last updated at 8:57 AM on 23rd February 2010

Nearly a third of bosses plan to axe workers this year, a shocking report warned yesterday.
The findings will devastate private sector staff who hoped the end of the recession meant their jobs were safe.
The report, from accountants Pricewaterhouse Coopers, found that 28 per cent of bosses are planning redundancies over the next 12 months.
Nearly a third of bosses are planning to make employees redundant this year
For many, this is their second round of job cuts as they struggle to survive the economic downturn.
In a further blow, the authoritative report reveals that the jobs meltdown has hit Britain harder than the rest of the world.
Last year, it found that 62 per cent of UK firms cut staff, compared to a global average of 48 per cent.
Michael Rendell, a partner at Pricewaterhouse Coopers, warned that Britain’s jobs market was ’stagnant’, although he added: ‘There are always opportunities for the best people.’
He said: ‘Some organisations have used the downturn to poach from competitors that failed to ring-fence top performers.’
On top of the bosses who are planning to cut staff, a further 30 per cent said they were not planning to hire any this year. Only 42 per cent plan to increase numbers.
The report, based on inter-views with bosses of 70 of the country’s biggest companies, also found that two-thirds of private sector bosses froze pay last year, with many expected to do the same again this year.
Four in five said ’staff morale’ was a major issue, with many workers feeling worried that they have little job security.
Others resent the extra work they are being forced to do as a result of their colleagues’ departure.
It comes as the number of unemployed people has hit 2.46million, amid warnings that it could reach three million this year.
Unemployment would be even higher if many workers who were made redundant had not decided to accept a part-time job after failing to find a full-time one.
More than one million people say they are working part-time for this reason, the highest number since records began, according to the Office for National Statistics.
Although the report found UK firms were more likely to cut jobs than counterparts overseas, the country’s overall unemployment rate remains lower than several of its rivals.
The rate in the UK is 7.8 per cent - compared to 10.6 per cent in the U.S., 10 per cent in France, 13 per cent in Ireland and 19 per cent in Spain. Germany is around the same level as the UK.
A poll by financial information company Markit found that a quarter of people said their finances had deteriorated over the past month.
Only 6 per cent said their finances were better in February than January, proving that the end of the recession has not ended the financial misery for millions of families.
Tim Moore, economist at Markit, blamed the money struggles on ’stalling incomes and rising inflation.’

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The cost of raising a child is now £200,000… and that doesn’t include private school fees

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By
Tom Kelly
Last updated at 1:35 AM on 23rd February 2010

Every parent knows that bringing up a child is an expensive business.
But it may still come as a surprise to learn the cost has broken the £200,000 barrier.
Despite three quarters of parents claiming to have cut back during the recession, a survey published yesterday found average spending per child rose 4 per cent last year.
Childcare remains the biggest single expenditure, with parents forking out £55,000 on nursery fees, after-school clubs and holiday clubs during each child’s youth.
Parents will spend at least £200,000 raising a child, with nursery fees, education and food proving the most costlyEducation comes second. The average child clocks up £52,881 in
university fees and school costs until the age of 21. And that doesn’t
include private school fees. A state education can cost families
thousands in equipment, uniform and school trips. It is followed by
food at £17,490, clothing at £14,035 and holidays at £13,207.

The amount of pocket money a child receives has crept up by almost 5 per cent this year to an
average of £4,338. Parents spend £9,000 in the first year of raising a
child, the survey found. The annual bill rises to £13,000 for toddlers and peaks at £13,677 a year during university days between 18 and 21.
The national average stands at £201,000 but parents in outer
London spend the most on raising a child - on average £220,769.
Yorkshire and Humber is the least costly area, at £177,706. Half of parents said they had cut down on holidays and family
days out because of the economic downturn. The same number said they
had slashed the amount spent on clothes. A third said they had started buying clothes second hand and
37 per cent said they had tried to raise cash by selling unwanted items
online, in local newspapers or at car boot sales. Seven out of ten
families said they had started buying food from cheaper, ‘value’ ranges
or switched to a lower-cost supermarket. Recent research has also shown that the tax burden on the
average working family in Britain is a third higher than average for
developed nations. And despite the recession the cost of nursery fees is now
higher than ever, rising 5.1 per cent. The average parents now spend
£4,576 per year on childcare. The survey of almost 4,000 adults, by insurance and investment
group LV, the former Liverpool Victoria, has been running since 2003. LV Group chief executive Mike Rogers said: ‘Every parent will
know how expensive it can be. But I suspect many new and prospective
mums and dads will be a little shocked to see the potential financial
burden ahead of them.’

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Barclays profits near double to hit £11.6bn

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Published: 1:44PM GMT 16 Feb 2010





Barclays

The 92pc rise in pre-tax profits was boosted by the £6.3bn sale of Barclays
Global Investors to Blackrock and strong performance from its investment
banking arm.

Total income increased 34pc to £30.9bn. Stripping out the BGI sales, pre-tax
profits came in at £5.3bn - around half from Barclays Capital. Shares in
the bank jumped more than 6pc on the better-than-expected
full-year results.

The average pay was £191,00, including an average bonus of £95,000. The bank
employs 144,200 people, down from 152,800 in 2008.

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Double dip recession fears as High St reports worst January sales in 15 years

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By
Daily Mail Reporter
Last updated at 12:26 PM on 09th February 2010

The worst start to the New Year on the High Street in 15 years has raised new fears of a second economic downturn. The snow and ice kept shoppers at home in January with the value of same store sales down by 1.2 per cent compared to a year ago.Once new stores are are added to the equation the figure rose by just 1.2 per cent on a year ago, according to a report from the British Retail Consortium(BRC).Britain limped out of recession in January with a 0.1 per cent
return to growth, marking the formal end of the worst recession since
the 1930s.
Double dip fear: January sales were down by 1.2 per cent compared to a year ago
Analysts warned that the dire retail figures and the marginal of the growth recorded at the end of 2009 could lead to a double dip recession.

The snow boosted food sales in the first week of January as people stocked up on essentials, but hit non-food, especially discretionary items such as furniture.Over the month, food, warm clothing, such as coats and gloves, and footwear showed gains on a year ago, but homewares and furniture showed declines. Internet, mail-order and phone sales in January were 14.6 per cent higher than a year. Some benefited from shoppers buying online when snow prevented them from getting out. 

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Car scrappage scheme extended in bid to prevent slide back into recession

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By
Jason Groves
Last updated at 9:54 AM on 04th February 2010

The Government’s car scrappage scheme is to be extended for a month in a bid to prevent Britain sliding back into recession before the election.The scheme, which offers drivers of cars over 10 years old up to £2,000 off the cost of a new vehicle, was due to finish this month.But Government sources last night indicated it would be extended until the end of March.
Scrappage scheme: Motorists are awarded up to £2,000 to buy a new car
No extra money is being made available by the government, simply extra time for the scheme to operate. The scrappage scheme was introduced in the last April Budget and has proved extremely popular. It is credited with helping claw Britain out of recession. Ministers fear that ending it earlier could combine with weak January sales figures to send Britain back into negative growth before the election planned for May this year.The government has put a total of £400 million into the scheme, with a limit of 400,000 vehicles that can be scrapped. According to the government, some 330,000 new cars have been ordered under the programme, which means 70,000 people will still be able to benefit.Business Secretary Lord Mandelson said the scheme, which had been due to end this month, would now continue to the end of March or until the remaining funds ran out, whichever is sooner.’Against the background of the economic downturn the scrappage scheme has proved a great success, driving UK car sales, protecting jobs and supporting the supply chain for car manufacture at a time when this sector needed it most,’ Lord Mandelson said.Similar schemes were introduced in the U.S. and France to help offset the impact of economic recession last year. 

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Incidents of identity theft up by 32pc

By Justin Harper

Published: 11:46AM GMT 02 Feb 2010

A worrying trend is emerging where criminals take over the running of your
bank account and transfer funds into an account they have set up to accept
these bogus payments, according to CIFAS, the UK’s fraud prevention service.

Fraudsters use personal information they have collected on you and attempt an
‘account takeover’ by impersonating you when dealing with your bank or
credit card provider. They then ask for your address to be changed so all
statements and information are sent directly to them.

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Las Vegas casinos need a full house to break losing streak

By James Quinn in Las Vegas

Published: 10:00PM GMT 01 Feb 2010

When even the monorail ferrying tourists and convention delegates along the
Strip has been forced into filing for Chapter 11 bankruptcy protection, it
is clear that Las Vegas is in suffering a significant downturn.

With debts of $1bn (£614m), and 2009 revenues down $3.3m to $26.9m on the back
of a 24pc reduction in passengers last year, the Las Vegas Monorail
Company’s decision to seek protection from the bankruptcy courts was not
surprising.

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