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Your Daily News 16 March 2015
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International and European News
16 March 2015
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Your Daily News 16 March 2015
1
International News
Russia cuts interest rates as rouble crisis
eases
[16 March 2015, BBC News] Posted 13 March:
Russia's central bank has cut its key interest rate
by one percentage point to 14%, as concerns
over inflation recede as Russia's economy falters.
The move, which was widely expected, comes as
the rouble stabilises following its radical 46%
decline in 2014.
That drop prompted the bank to increase rates
up to 17% in an effort to halt the plunge.
The rate rise strengthened the rouble against the
dollar.
Read more:
http://www.bbc.co.uk/news/business-31871321
Gotham Air is Uber for helicopters
[16 March 2015, CITY A.M.] Posted 13 March. By
Emma Haslett: Pills, pets, hot stone massages -
there's an Uber for all of them. But now the "hail
something from your smartphone" model has
gone considerably more upmarket, after the
launch of Gotham Air - an Uber for helicopters.
Admittedly hailing a helicopter comes with more
conditions than hailing a cab. Firstly, at the
moment it's only in New York. Secondly, the
helicopter will only ferry passengers from
Manhattan's Downtown Heliport to either JFK or
Newark airports. Thirdly, it operates a flat fee of
$219 (£150) per journey. And fourthly, the
chopper will only take off once it has a minimum
of four passengers.
But the app, which launched on 12 March, cuts
passengers' journey to the airports down to a
time-efficient six minutes.
Read more:
http://www.cityam.com/211547/gotham-air-
uber-helicopters
US markets in a panic about prospect of Fed
rate hike
[16 March 2015, CITY A.M.] US stock markets
are in the midst of a ―patient panic‖ ahead of
Wednesday‘s Federal Reserve statement, when
many investors expect a change in the Fed‘s
language that would send the clearest signal yet
that a rate hike is coming soon.
The S&P 500 has fallen 2.6 per cent since
February‘s stronger-than-expected jobs report a
week ago boosted expectations for an interest
rate increase as soon as June.
Stocks may fall further if Fed chair Janet Yellen
drops a pledge to be ―patient‖ about rate hikes in
the Fed‘s statement after the upcoming policy
meeting. Most economists expect her to erase
that word as a precursor to starting rate hikes in
June, according to a Reuters Poll.
Read more:
http://www.cityam.com/211612/us-markets-
panic-about-fed-rate-hike-week-ahead-wall-st
INDIA: ITC to set up 20 factories for FMCG
business
[16 March 2015, Times of India] Posted 14
March: PTI. NEW DELHI: Diversified
conglomerate ITC Ltd on Saturday said it is in the
process of setting up 20 factories for its FMCG
products as it aims to garner Rs 1 lakh crore
revenue from that business alone by 2030.
"We are in the process of building 20 factories.
How much money we are going to spend ... We
are one company that is not looking for interest
rate to dip before we think of our investment. We
are not borrowing money, we want to invest. It‘s
for FMCG," ITC chairman Y C Deveshwar said at
India Today 2015 conclave.
He further said: "There are some roadblocks, we
are stuck on land ... but let us contribute to this
country in a significant way."
Your Daily News 16 March 2015
2
Deveshwar, however, did not elaborate on the
investment the company would make for setting
up these factories.
In the previous fiscal, ITC's revenue from FMCG
including cigarettes stood at Rs 23,555 crore.
The company's FMCG business includes
cigarettes, foods, lifestyle retailing, personal
care, education & stationery, safety matches and
agarbattis [incense sticks].
[NOTE: A crore (abbreviated cr) is a unit in the
Indian Numbering System equal to ten million
(10,000,000), which is written in these regions as
1,00,00,000, equal to a hundred lakh (a lakh is
equal to one hundred thousand and is written as
1,00,000).]
Read more:
http://timesofindia.indiatimes.com/business/india
-business/ITC-to-set-up-20-factories-for-FMCG-
business/articleshow/46566615.cms
IMF Supports GST In India
[16 March 2015, Tax-News.com] Posted on 13
March. By Mary Swire, Tax-News.com, Hong
Kong
The International Monetary Fund has urged India
to proceed with its planned goods and services
tax to raise revenue for growth-enhancing capital
spending and social programs.
A well-designed GST should be implemented with
minimal exemptions and a moderate single rate,
as it would create a single Indian market,
enhance the efficiency of goods and services
trade between states, and thereby boost gross
domestic product (GDP) growth, the IMF said in
its 2015 Article IV consultation report with India.
Further revenue gains can be achieved by
instituting tax administration reforms, including
by reorganizing tax administration along
functional lines and merging the indirect and
direct tax boards, the IMF said.
The Fund noted that India's ratio of revenue to
GDP is considerably below its peers.
See more at:
http://tax-
news.com/news/IMF_Supports_GST_In_India___
_67527.html
Egypt to build new administrative and
business capital
[16 March 2015, BBC News] Posted 13 March:
Egypt's new administrative and business city, on
the outskirts of Cairo, has been revealed on a
new website. It says the city will house up to five
million residents and be built in the corridor
between Cairo and the Red Sea.
There will be 1.1m housing units and 1.75m
permanent jobs.
The city is set to be officially unveiled at an
Egyptian government conference at the Red Sea
resort of Sharm El-Sheikh, to global investors
and politicians.
'Significant shipping routes'
The website - unveiled on Friday - says that "the
master plan is to create a global city with smart
infrastructure for Egypt's future, which will
provide a multitude of economic opportunities
and offer a distinct quality of life".
It will be built over 700 sq km (270 sq miles) -
about the size of Singapore.
Read more:
http://www.bbc.co.uk/news/business-31874886
Tax Study Explains US Corporate Exodus
[16 March 2015, Tax-News.com] Posted on 13
March. By Mike Godfrey, Tax-News.com,
Washington: A study has found that the
competitive disadvantage caused by the present
United States tax code led to a USD179bn net
loss of American companies and business assets
to foreign buyers between 2003 and 2013.
The study, prepared by accounting firm Ernst &
Young (EY) LLP and released by the Business
Roundtable (BRT), also suggested that a 25
percent US corporate tax rate (rather than the
Your Daily News 16 March 2015
3
present headline federal rate of 35 percent)
would have prevented foreign purchases of 1,300
companies during that same period.
Having looked at more than 25,000 cross-border
merger and acquisition (M&A) transactions
among the 34 OECD countries between 2004 and
2013, EY found that American companies had
been the target in 23 percent of transactions by
value and the acquirer in just 20 percent,
resulting in the USD179bn mergers and
acquisitions "deficit." In addition, technology-
intensive sectors accounted for a significant
portion of the transactions by value.
It was pointed out that, over those 10 years, the
US statutory corporate income tax rate remained
steady while rates in many other countries fell.
As a result, the gap between the US statutory
corporate income tax rate and the simple-
average OECD rate has increased from two
percent to 10 percent, heightening the
disadvantage in the M&A market for US
companies.
See more at:
http://tax-
news.com/news/Tax_Study_Explains_US_Corpor
ate_Exodus____67525.html
Seychelles Confirms Tax Amnesty
[16 March 2015, Tax-News.com] Posted on 13
March. By Lorys Charalambous, Tax-News.com,
Cyprus: The Seychelles Revenue Commission has
confirmed the availability of an amnesty on
penalties and interest for businesses that have
outstanding tax debts and returns.
Further to measures to boost tax compliance
announced in the 2015 Budget, the SRC has
implemented a debt recovery plan that will apply
to business tax arrears for tax years up to 2013
(for amounts payable in 2014), and for
withholding tax, duties, and all other taxes, for
payments due for tax years up to 2014.
Taxpayers have three options to settle their
outstanding tax as at December 31, 2014, or to
submit outstanding returns. The program offers a
100 percent waiver of penalties and interest on
arrears cleared by May 31, 2015; a 50 percent
waiver of penalties and interest on arrears
cleared by August 31, 2015; and a 25 percent
waiver of penalties and interest on arrears
cleared by October 31, 2015.
See more at:
http://tax-
news.com/news/Seychelles_Confirms_Tax_Amne
sty____67529.html
WTO Panel To Mediate In China-Canada
Dumping Dispute
[16 March 2015, Tax-News.com] Posted on 13
March. By Mike Godfrey, Tax-News.com,
Washington: The World Trade Organization on
March 10, 2015, established a panel to adjudicate
in a dispute between Canada and China over
anti-dumping duties imposed by China on imports
of Canadian cellulose pulp.
Canada complained to the WTO about the duties
in October last year, alleging that they put
Canadian exporters of cellulose pulp (also known
as dissolving pulp) at a disadvantage. Canada
said that the measures are inconsistent with
China's obligations under the Anti-Dumping
Agreement and the General Agreement on Tariffs
and Trade (GATT) 1994.
The anti-dumping duties were levied by China on
April 6, 2014, at rates of up to 23.7 percent. Last
year, Canadian companies exported CAD317m
(USD249m) of cellulose pulp to China. In 2013,
Canada produced approximately 750,000 tons of
cellulose pulp, of which 363,000 tons was
exported to China.
See more at:
http://tax-
news.com/news/WTO_Panel_To_Mediate_In_Chi
naCanada_Dumping_Dispute____67531.html
Costa Rica Consults Public On VAT Reform
[16 March 2015, Tax-News.com] Posted on 13
March. By Mike Godfrey, Tax-News.com,
Washington: The Costa Rican Government on
March 10, 2015, launched a public consultation
on its plan to implement a value-added tax in
place of the current general sales tax.
Under the proposal, the VAT would come into
force in 2016 at a rate of 13 percent (the same
rate currently applied to the general sales tax)
before rising to 15 percent in 2017. Exemptions
would be granted to the supplies of companies
operating in free trade zones and certain sectors,
Your Daily News 16 March 2015
4
such as the healthcare and public transport
sectors.
The Government also plans to make changes to
the income tax regime. Together, the proposed
reforms are expected to raise Government
revenue by about CRC600bn (USD1.12bn), or
two percent of gross domestic product (GDP).
The Government aims to submit the proposal to
the legislative assembly by April 13.
See more at:
http://tax-
news.com/news/Costa_Rica_Consults_Public_On
_VAT_Reform____67532.html
Egypt To Up Scrutiny Of Self-Employed
Persons
[16 March 2015, Tax-News.com] Posted on 13
March. By Fernand Gagnier, for
ExpatBriefing.com:
The Egyptian tax authorities wish to step up tax
compliance efforts to ensure the correct payment
of taxes among self-employed professionals.
The Minister of Finance, Hany Kadry Dimian, has
said that he is considering a proposal to open six
new tax offices dedicated to dealing with this
sector, referred to as the "non-commercial"
professional sector, which includes doctors,
architects, accountants, lawyers, and similar
professions. He noted that tax revenues from this
sector have not increased at the same rate as in
the commercial and industrial sectors.
Plans under consideration also include
establishing and encouraging information sharing
between different government departments and
between the tax authorities and the various
professional members' associations. Already
underway is a program of liaison and education,
with officials visiting the offices of professionals
to provide assistance on tax matters.
See more at:
http://tax-
news.com/news/Egypt_To_Up_Scrutiny_Of_SelfE
mployed_Persons____67533.html
US & Canada: Public Finance Round up
[16 March 2015, Public Finance International]
Posted on 13 March: A round-up of recent public
finance stories from the US & Canada you might
have missed.
Round up:
Obama to announce student loan reforms as
education department stalls: President Barack
Obama will announce sweeping borrower-
friendly recommendations to fix the $1.1
trillion federal student loan system that, taken
together, amount to an indictment of the US
Department of Education's inability to protect
borrowers from ever-increasing burdens. (The
Huffington Post)
Fannie Mae putting taxpayers back at risk with
careless behaviour, probe warns: Nearly seven
years after it was bailed out from the housing
market crash, mortgage giant Fannie Mae is
still engaging in behaviour that could
precipitate future financial crises and taxpayer
losses, a government watchdog warns in a
report. (The Washington Times)
Shrinking pool of low-skilled Canadians leading
to foreign-worker growth: The pool of low-
skilled Canadian workers is shrinking fast as
more students go on to higher education, a
development the Parliamentary Budget Officer
says helps explain the growth in the
Temporary Foreign Worker Programme. (Globe
and Mail)
Nevada bill would allow more government
entities to invest public money: Nevada
lawmakers are reviewing a bill allowing local
governments and certain state funds to more
broadly invest public money. (The Republic)
Bipartisan House plan moves to bolster state
pension fund: House leaders facing a $7.2bn
shortfall for state worker retirement pensions
have unveiled a plan to increase what Texas
pays but also upping employee contributions.
(The Monitor)
McCrory budget includes 1st wave of
recommendations in newest NC government
reform effort: Recommendations from a
government reform study could save $71m
over two years if lawmakers approve them,
but they won't really be successful unless the
state makes efficiency a permanent objective,
Governor Pat McCrory‘s budget director said
Tuesday. (The Daily Journal)
See more at:
http://www.publicfinanceinternational.org/news/
2015/03/us-canada-round-up-round-up-obama-
to-announce-student-loan-reforms-as-education-
department-stalls-and-more/
Your Daily News 16 March 2015
5
Asia Pacific: Public Finance Round up
[16 March 2015, Public Finance International]
Posted on 13 March: A round-up of recent public
finance stories from Asia Pacific you might have
missed.
Round up:
Asia rushes to lower rates, but maybe not fast
enough: Central banks across Asia are racing
to cut interest rates, but they may not be
doing it fast enough to stave off economic
malaise. (New York Times)
China‘s fiscal deficit makes sense: BLOG:
China‘s central government deficit is projected
to be the largest in six years. The official
government deficit was originally forecast to
be around 2.3% of GDP, but the actual deficit
will likely come close to 2.7%, according to
Finance Minister Lou Jiwei. This is because
China is committed to expanding its fiscal
policy in the face of a domestic and global
economic slowdown, as well it should be. (The
Diplomat)
Australian coalition threatens taxpayer funded
advertising blitz on pension changes:
Taxpayers appear set to bankroll new
advertising on the Abbott government‘s
proposed pension changes to counter what the
prime minister terms a ‗dishonest‘ public
campaign underway in South Australia. (The
Guardian)
Modi‘s budget slashes environmental funding
for India: Environmentalists in India have
expressed alarm over the new budget of the
government of Prime Minister Narendra Modi,
which they say heralds substantial cuts in
environmental programmes and fails to
address the country‘s worsening pollution and
vulnerability to climate change. (Reuters via
Business Standard)
IMF cuts economic forecast for Bangladesh,
citing political violence: The Bangladesh
economy will grow by about 6%, less than
previously forecast, in the year to end-June if
political violence persists, the International
Monetary Fund said on Tuesday. (Reuters via
Daily Mail)
See more at:
http://www.publicfinanceinternational.org/news/
2015/03/asia-pacific-round-up-asia-rushes-to-
lower-rates-but-maybe-not-fast-enough-and-
more/
Middle East & Africa: Public Finance Round
up
[16 March 2015, Public Finance International]
Posted on 13 March: A round-up of recent public
finance stories from the Middle East & Africa you
might have missed.
Round up:
MF says not ready to resume funding to
Zimbabwe: The International Monetary Fund
has ruled out resuming loans to Zimbabwe
until the southern African country has retired
its longstanding external debt of about $10bn.
Zimbabwe‘s government is seeking new loans
to help bail out its depressed economy. (Voice
of America)
Cameroon asks public to aid soldiers and
refugees: Cameroon‘s government is asking
the public to donate money, food and clothing
to help offset the growing needs of its soldiers
and refugees, including those respectively
fighting and fleeing the Boko Haram
insurgency on its northern border with Nigeria.
(Voice of America)
Bahrain to investigate alleged waste of $1.1bn
of public money: Bahraini legislators plan to
investigate alleged squandering of 400 million
dinars ($1.06bn) of public funds by
government departments and state-linked
companies, a Manama newspaper reported on
Sunday. (Reuters Africa)
$940m IMF bailout not enough, says Ghana
VP: Vice President Kwesi Amissah-Arthur says
the 940-million dollar package to be given to
Ghana by the International Monetary Fund is
not enough. (Starr fm online)
South Africa‘s Zuma rebuffs demands to re-
pay state for home upgrade: South African
President Jacob Zuma deflected demands by
the opposition to pay back some of the money
used in a $23m (£15.3m) state-funded
security upgrade to his rural home, saying the
government had yet to decide whether he
should do so. (Reuters)
See more at:
http://www.publicfinanceinternational.org/news/
2015/03/middle-east-africa-round-up-imf-says-
not-ready-to-resume-funding-to-zimbabwe-and-
more/
Your Daily News 16 March 2015
6
Spending on the US crumbling infrastructure
[16 March 2015, Brookings] Posted on 10 March:
By David Wessel: Larry Summers recently said
something startling: ―At this moment . . . the
share of public investment in GDP, adjusting for
depreciation, so that‘s net share, is zero. Zero.
The US is not net investing at all, nor is Western
Europe,‖ he told a Princeton University audience.
In other words, total federal, state, and local
government investment is enough to cover only
the amount of wear and tear on bridges, roads,
airports, rails, and pipes. ―Can that possibly
make sense?‖ asked the former Treasury
secretary, who has been campaigning for more
government spending on infrastructure.
Read more:
http://www.brookings.edu/research/opinions/201
5/03/10-spending-crumbling-infrastructure-
wessel
Food Security: Should The GCC Be Worried?
[16 March 2015, Gulf Business] Oil revenues
cushion the GCC from any major food crisis but
with the region still reliant on imports, countries
face real supply chain risks, wrote Mary Sophia
on 14 March.
Food security has long been a burning issue in
the GCC given the region‘s over-dependence on
food imports. according to a report by investment
bond alpen Capital, countries such as Qatar,
Bahrain and the uaE import anywhere between
80 to 90
per cent of their food, leaving them dangerously
vulnerable to an increase in global food prices.
How much the GCC was dependent on food
imports was further laid bare during 2007, when
a global food shortage forced many countries to
halt exports, causing the price of staples to surge
almost 59 per cent in the region.
In the past, such incidents have prompted the
Gulf countries to ramp up their domestic
agricultural production. Though such steps were
necessary, the lack of arable land and scare
water resources were serious obstacles.
Since then, many countries have also invested in
agricultural farmland across the world in order to
ensure food security.
But such investments have often been
accompanied by veiled criticisms of wealthy Gulf
countries eating into the food supply of less-
developed nations.
Ensuring food security through such channels is a
viable long-term option, some experts argue,
while others believe that the region does not
have an immediate threat of being cut off from
food supplies just yet.
One of the biggest buffers that the Gulf nations
have from food insecurity is their oil revenue,
according to some experts. Thanks to their large
fiscal reserves, GCC countries are able to
purchase food reserves and store them for times
of need.
Read more:
http://gulfbusiness.com/2015/03/food-security-
gcc-worried/
CENTRAL AMERICA: Daily News 16/03/2015
[16 March 2015, Central America Data] Posting
of Daily News from around the region.
Summaries
Report on Construction Projects - January
2015: A bus terminal, a wastewater treatment
plant and several residential developments top
the list of environmental impact studies
presented in January in Costa Rica.
Panama: Intervention in Banca Privada
D'Andorra; The Superintendency of Banks has
given the order for Administrative and
Operational Takeover after the US government
accused the Group BANCA PRIVADA
D'ANDORRA of alleged money laundering.
Your Daily News 16 March 2015
7
Guatemala: Agreements on Advanced Pricing
with SAT: The Tax Authority announced
special audits in companies with "related
parties abroad", which can be avoided by
presenting an Agreement on Advance Pricing.
Modifications to Tender for Urban Renewal of
Colon: A reduction has been made from seven
to two in the number of days that companies
have to correct their proposals and the net
capital companies must possess in order to
participate has been lowered to $150 million.
Nicaragua: Business Mission to Chile:
Preparations are being made for a trip by a
group of companies traveling from April 20th
to 24th to the South American country to
explore business opportunities under the trade
agreement which has been in force since
2012.
Nicaragua Gets Off "Gray List": The Financial
Action Task Group has removed Nicaragua
from the list of countries that pose risks
relating to money laundering and terrorist
financing.
Panama: Initiative to Reduce Sulfur in
Gasoline: The bill which aims to reduce the
sulfur content in diesel and gasoline would
give importers and distributors up to 12
months to renegotiate supply contracts once it
comes into effect.
Nine Months to Refund VAT to Exporters: In El
Salvador the export sector claims that delays
of up to nine months are being reported on tax
refunds due from the Treasury, which should
take no more than 30 days.
Source:
http://us2.campaign-
archive1.com/?u=4ef00faac80ef7aee4649e335&i
d=1955e376d7&e=6590d68ce0
AUSTRALIA: Family businesses face an age-
old problem
[16 March 2015, Business Spectator] Posted 12
March, by Tony Kaye: Collectively, we‘re all living
longer - a biological fact highlighted earlier this
month with the release of the latest
Intergenerational Report by the federal
Treasurer, Joe Hockey.
According to the report, the average Australian
life expectancy at birth is forecast to reach 95.1
years for men and 96.6 years for women by
2054-55, compared with 91.5 years and 93.6
years today.
And the number of Australians aged over 65 is
projected to more than double from the current
level by 2055.
―In general, Australians are living longer and
healthier lives than in years past, and are more
active in their older years,‖ the Intergenerational
Report stated. ―Over the next 40 years, Australia
will need to embrace the potential of this talented
older population group, particularly by valuing
their increased and ongoing engagement in the
workplace and community.‖
That‘s true across the working population as a
whole, but Australia‘s ageing process also has
specific ramifications for family businesses -
which will increasingly need to grapple with the
dynamics of having multiple generations working
within their business, and with the complexities
of succession as older members choose to
prolong their time at the helm rather than retire.
Read more:
https://www.businessspectator.com.au/article/20
15/3/12/family-business/family-businesses-face-
age-old-problem
China's route to riches
[16 March 2015, BBC News] Posted 12 March. By
Linda Yueh, Chief business correspondent: This is
the billion dollar question. How did a poor
communist country transform itself into having
the second most billionaires in the world, after
the United States, in just over a generation?
Hurun, which tracks the wealthy, says that they
have identified 400 billionaires in China, but there
are another 800 yet to be profiled.
The author went to Shanghai to find out, since
it's one of the cities where the rich dwell. Hurun
estimates that one in seven millionaires in China
live in Shanghai. One in six live in Beijing.
It's an extraordinary change from a centrally
planned economy where everyone was at least
nominally equal. But, like in George Orwell's
Animal Farm, some animals are more equal than
others. Rich officials and their offspring, the
princelings, have always sat uncomfortably within
a communist system.
Indeed, communism erased inherited wealth in
China.
Your Daily News 16 March 2015
8
Hurun estimates that more than half (55%) of
millionaires started their own businesses. Of the
rest, 10% made their fortunes from the stock
market, 15% from real estate, and 20% are
highly paid executives
Of the super-rich - those with 100m yuan ($16m;
£10m) or more - the number of entrepreneurs
stands out even more. Some 80% of the super-
rich own their own firms and 15% made their
money from real estate, while another 5% made
a fortune in stocks.
Read more:
http://www.bbc.co.uk/news/business-31832200
INDIA: As oil prices fall, trade deficit shrinks
to 17-month low in February
[16 March 2015, Times of India] Posted 14
March. TNN: NEW DELHI: Driven by a sharp fall
in oil prices, India's trade deficit contracted to a
17-month low of $6.85 billion in February as
imports shrank at a faster pace than exports.
Exports fell 15% to $21.55 billion compared with
$25.35 billion a year ago, the commerce
department said in a statement on Friday.
Imports were down 15.7% to $33.7 billion.
Lower price of crude meant that petroleum
product exports fell almost 55% from $4.6 billion
in February to $2.1 billion. This didn't only result
in the share of petrol and diesel and other
products in India's export basket falling from
over 18% to a shade under 10%, but also
resulted in a change in the pecking order. While
engineering exports ($5.1 billion) remained the
top-most item in the basket, gems and jewelry
(despite a 3.5% decline to $3.5 billion) overtook
oil products to occupy the second spot.
Read more:
http://timesofindia.indiatimes.com/business/india
-business/As-oil-prices-fall-trade-deficit-shrinks-
to-17-month-low-in-
Feb/articleshow/46560941.cms
In China, a Building Frenzy‟s Fault Lines
[16 March 2015, New York Times] Posted 13
March. By David Barboza: As the real estate
market in the United States was collapsing in the
mid-2000s, Wall Street went in search of new
terrain, and found it in China. All across the
country, from Beijing to Shenzhen, sprawling
housing developments and business districts
were popping up, seemingly overnight. Real
estate prices were soaring. Western banks, hedge
funds, private equity firms and other investors
wanted a piece of the action.
Billions poured into Chinese real estate, and big
foreign financial firms hunted for the next hit —
the small bet that investors could ride to great
heights. One of those firms, Credit Suisse,
scoured the landscape and in 2007 discovered
Kaisa, a relatively small property developer in
Shenzhen that mostly bought and rehabilitated
distressed properties. Credit Suisse brokered a
$300 million investment deal for Kaisa, and two
years later, it went public. Its chairman, Guo
Yingcheng, posed for photographs on the floor of
the Hong Kong Stock Exchange holding a statue
of a bull, which seemed to signify hopes for his
company‘s coming bull run. His colleagues
poured Champagne into an ice sculpture of the
company‘s stock code: 1638.
With the $450 million raised in the initial public
offering, Kaisa embarked on an aggressive
expansion into 20 more cities. It formed a
partnership with Marriott hotels and announced
plans to build one of the world‘s tallest buildings.
Kaisa shares skyrocketed, helping lift the
fortunes of its Western patrons, including the
Carlyle Group, an American private equity firm.
Then came the fall. The real estate market
slumped, dragging down the rest of the Chinese
economy. Developers, in particular, were under
pressure, as foreign investment dried up.
Read more at:
http://www.nytimes.com/2015/03/15/business/d
ealbook/in-china-a-building-frenzys-fault-
lines.html
China plays down India's worry over
growing sea clout
[16 March 2015, Economic Times] Posted 14
March. PTI: NEW DELHI: Amid concerns over its
growing assertiveness in South China Sea, China
on Saturday said there was no "insecurity" as
well as no restriction on the freedom of
navigation in the region.
"The problem does not exist," Chinese
Ambassador Le Yucheng said referring to
freedom of navigation and security in the
resource-rich South China sea.
Your Daily News 16 March 2015
9
Describing it as a stable region, the envoy said
South China Sea was key for China's international
trade. The envoy had words of praise for the
Prime Minister Manmohan Singh, who he said had
done remarkably well to lift India's economy.
"China, more than anyone else, is interested in
ensuring security of the waters. 70 per cent of
Chinese goods come and go through the waters,"
he said.
Asked about the mentioning of the South China
Sea dispute in the India-US joint statement
issued during President Barack Obama's visit
here in January, Le said China took note of it and
that there was no problem of security or any
issue relating to freedom of navigation in the
region.
"We noticed the statement about the South China
sea. The South China sea remains stable and
secure. Nothing happened. There has been no
incident," Le said at an event.
China has an acrimonious relationship with
Vietnam, the Philippines, Malaysia and Brunei
over the South China Sea issue.
Read more at:
http://economictimes.indiatimes.com/articleshow
/46564341.cms
Government to ease process of doing
business in India: says Arun Jaitley
[16 March 2015, Economic Times] Posted 14
March. PTI: LONDON: The government is fairly
determined and is introducing changes to ease
the process of doing business and attract
investments in India while trying to rationalise
and lower taxes, Finance Minister Arun Jaitley has
said.
He also said that the GDP growth rate this year
would be 7.5% and hopefully higher in the next
year.
"We are trying to rationalise taxes, lower taxes
and introduce a non-adversarial and fair system
of taxation. There is a raging a raging ideological
battle between reform and obstruction. The
government is fairly determined.
"The roadmap for us is very clear. We need a lot
of investment in India and we need to ease the
process of doing business in India and therefore
slowly we are introducing changes in that
direction," he said addressing a gathering of
international investors on 'Investment
Opportunities in India' here last night.
Read more at:
http://economictimes.indiatimes.com/articleshow
/46563908.cms
Ex-NSA director says: “China has hacked
every major corporation in U.S.”
[16 March 2015, CNN] The Chinese government -
seeking to steal valuable secrets - has hacked
into the computers at every major American
company, according to the nation's former spy
director.
Mike McConnell [pictured], who served as
director of national intelligence under President
George W. Bush, made the comments during a
speech at the University of Missouri on 12 March.
"The Chinese have penetrated every major
corporation of any consequence in the United
States and taken information," he said. "We've
never, ever not found Chinese malware."
He said the malware lets Chinese spies extract
information whenever they want. McConnell, who
also led the NSA from 1992 until 1996, continues
to investigate hacks as a high-ranking adviser to
Booz Allen Hamilton (BAH).
He listed victims he has come across during his
investigations: U.S. Congress, Department of
Defense, State Department (which is currently
dealing with Russian hackers) and major
corporations.
Your Daily News 16 March 2015
10
The U.S. government has said it has caught
Chinese spies stealing blueprints and business
plans. Last year, federal prosecutors took the
unprecedented step of filing formal criminal
charges against five Chinese government spies
for breaking into Alcoa (AA), U.S. Steel Corp. (X),
Westinghouse and others.
But McConnell's assertion is different. It would
mean that no large company can escape the
massive theft of American entrepreneurial ideas.
Read more:
http://money.cnn.com/2015/03/13/technology/s
ecurity/chinese-hack-us/index.html
Dubai Water Canal Project‟s Phase 1 Almost
40% Complete - RTA
[16 March 2015, Gulf Business] Posted on 15
March. By Mary Sophia: The first phase of the
Dubai Water Canal project is almost 40 per cent
complete, the Chairman and Executive Director of
Roads and Transport Authority (RTA) Matter Al
Tayer said.
The work in the Phase 1 of the mega project
includes the construction of a bridge over the
Sheikh Zayed Road comprising of eight lanes in
each direction.
―The contractor of phase I of the project started
construction works in the Northern Bridge on the
Sheikh Zayed Road in the direction of Dubai,
nearby the red line of Dubai Metro,‖ said Al
Tayer.
―Almost 50 per cent of excavation works and
casting of concrete piles have been completed,
and the Northern Bridge is expected to open in
the fourth quarter of this year. The construction
of the bridge in the direction from Dubai to Abu
Dhabi would follow. The company also embarked
on constructing service roads in the Business Bay
area after shifting the existing utility lines in
site.‖
Meanwhile the completion rate in phase II, which
includes construction of bridges in Al Wasl and
Jumeirah road, reached 25 per cent, he added.
Read more:
http://gulfbusiness.com/2015/03/dubai-water-
canal-projects-phase-1-almost-40-complete-rta/
UAE‟s Dana Gas To Invest $350m In Egypt
[16 March 2015, Gulf Business] Posted on 15
March. Reuters: Investments include drilling
nearly 40 new development wells, a similar
number of workovers on existing wells, building
new pipelines and debottlenecking an existing
plant.
Dana Gas will invest $350 million in Egypt over
the next 30 months and expects to receive
outstanding arrears from the government by the
end of 2016, the United Arab Emirates company‘s
chief executive said on Saturday.
The investments include drilling nearly 40 new
development wells, a similar number of
workovers on existing wells, building new
pipelines and debottlenecking an existing plant,
Patrick Allman-Ward told Reuters at a weekend
investment summit at the Red Sea resort of
Sharm El-Sheikh.
He said he expected Egypt to pay Dana $185
million in arrears by the end of 2016, but added
if they failed to do so, the company would
recover the money by the end of 2018 by selling
the government‘s share of condensate exports
under a production agreement.
―The mechanism will allow us to recover the
current overdue receivables over the course of
time‖, he said.
Egypt has delayed payments to oil and gas firms
as its economy has been hampered by four years
of instability since the fall of Hosni Mubarak in
2011.
The oil ministry said last week it would repay its
remaining $3.1 billion debt to foreign oil and gas
companies by mid-2016, a year later than
previously indicated.
Read more:
http://gulfbusiness.com/2015/03/uaes-dana-gas-
invest-350m-egypt/
INDIA: E-commerce companies fuel growth
in brick-and-mortar real estate
[16 March 2015, Times of India] Posted 15
March. By Anshul Dhamija & Nauzer Bharucha,
TNN: For companies that do their business
online, e-commerce giants are spending a lot on
brick and mortar. Just 12 hours before the
Your Daily News 16 March 2015
11
country rang in the New Year, cab service
provider Ola signed on 20,000 sq ft of prime
office space at Embassy Golf Links (EGL), a
premium Grade A business park located just 20
minutes away from Bengaluru's city center of MG
Road.
That was the last available office space at the 21-
office block EGL campus, which charges tenants
approximately Rs 100 per sq ft per month as
rent.
While the office transaction is minuscule in the
context of India's over 400 million sq ft leased
office market, the deal signaled the coming of
age of the country's new sunrise sector.
Consumer internet firms clearly, are competing
for marquee office spaces with Fortune 500
companies who have, for the longest time,
dominated India's tenanted office market.
Read more:
http://timesofindia.indiatimes.com/business/india
-business/E-commerce-companies-fuel-growth-
in-brick-and-mortar-real-
estate/articleshow/46569471.cms
Apple Watch: Most people not interested in
buying
[16 March 2015, Times of India] Posted 14
March. Reuters: SAN FRANCISCO: Apple Inc's
new smartwatch may be a tough sell, with 69%
of Americans indicating they are not interested in
buying the gadget, according to a Reuters/Ipsos
poll.
However, the survey also showed limited
awareness of the watch. The poll was taken after
Apple chief executive Tim Cook rolled out the
product on March 9, and only about half of
respondents said they had heard news of the
timepiece in the last few days.
Also, in an encouraging sign for Apple, roughly
13% of survey respondents who did not own an
iPhone said that they would consider buying one
in order to buy an Apple Watch, which needs an
iPhone to work fully.
Apple overcame skepticism about the iPad and
iPod when they first debuted, but the survey
suggests that the world's largest technology
company has work to do to make the watch
ubiquitous.
The new watch, a test of Cook's leadership, is the
company's first new product in five years, and it
hits stores on April 24.
It allows users to check email, listen to music and
make phone calls from their wrist. Apple will sell
various versions, from a $349 'sport' edition to a
$17,000 18-karat gold timepiece.
Ipsos surveyed 1,245 Americans online between
March 9 and March 13. The data was weighted to
reflect the US population and has a credibility
interval of plus or minus 3.2 percentage points.
Apple did not immediately respond to a request
for comment on the poll.
More than half of respondents, 52%, agreed with
the statement that smartwatches are a "passing
fad."
One-quarter of respondents said they were
interested in purchasing the Apple Watch, but
69% said they had no desire, and 6% said they
were unsure.
Read more:
http://timesofindia.indiatimes.com/tech/tech-
news/Apple-Watch-Most-people-not-interested-
in-buying/articleshow/46562075.cms
INDIA: Government mulls priority sector
lending certificates for banks
[16 March 2015, Business-Standard] Press Trust
of India, New Delhi on 15 March: The Indian
Government proposes to introduce Priority Sector
Lending Certificates (PSLCs), on the lines of
carbon credit trading, wherein banks can earn
premium for exceeding targets.
Your Daily News 16 March 2015
12
This will be a part of the government's "re-
orientation" of the priority sector lending
schemes where banks are given targets to
provide credit to specific sectors, like exports and
agriculture.
"PSLCs will provide a market-driven incentive for
efficiency and enable banks to sell their surplus
lending and thus earning a premium for their
efficiency/geographical spread," sources said.
Earlier this month, an RBI committee had
recommended introduction of PSLCs to enable
banks "to meet their PSL requirements even
while leveraging their comparative advantage in
lending".
The changes proposed in the priority sector
guidelines are aimed at re-aligning the norms
with the significant change in the economic
structure, contribution by various sectors to GDP
and the demographic profile.
So far total credit extended by banks in priority
sector lending is Rs 21,54,356.29 crore.
Among the changes proposed, renewable energy
sector is likely to be accorded the priority sector
lending status, up to Rs 10 crore loans.
[NOTE: A crore (abbreviated cr) is a unit in the
Indian Numbering System equal to ten million
(10,000,000), which is written in these regions as
1,00,00,000, equal to a hundred lakh (a lakh is
equal to one hundred thousand and is written as
1,00,000).]
Read more:
http://www.business-standard.com/article/pti-
stories/govt-mulls-priority-sector-lending-
certificates-for-banks-115031500195_1.html
Has the US Federal Reserve's 'patience'
been exhausted?
[16 March 2015, Economic Times] Posted 15
March. Reuters: LONDON: For a world economy
coming to terms with a soaring dollar and a
plunge in oil prices, this week will be all about the
U.S. Federal Reserve's policy meeting and its
intentions on interest rates.
A combination of the European Central Bank
printing lots of euros and expectations of a first
U.S. rate rise has caused turmoil on the foreign
exchanges and in emerging markets.
The euro, which peaked at nearly $1.40 in the
middle of last year, is now languishing around
$1.05 and apparently headed for parity.
After successive months of strong jobs data,
expectations have been growing that the Fed will
point towards a June rate rise by dropping a
pledge to be "patient" in considering such a
move.
But the dollar's surge, crimping U.S. exports and
cutting imported inflation, could cause its
policymakers to pause for thought.
Read more at:
http://economictimes.indiatimes.com/articleshow
/46572499.cms
INDIA: AECOM offers advisory blueprint for
„Make in India‟ projects
[16 March 2015, Economic Times] Posted 15
March. By PTI: NEW DELHI: Bullish on India, US-
based infrastructure design and consultancy giant
AECOM has offered to provide advisory services
and prepare blueprints for various projects under
the government's Make in India, Smart Cities,
Clean India and Clean Ganga initiatives.
The USD 20-billion group, which currently has
2,500 employees in India and plans to take it to
4,000 soon, is looking to actively participate in
these initiatives of Prime Minister Narendra Modi
across various sectors.
Read more at:
http://economictimes.indiatimes.com/articleshow
/46572873.cms
Assocham's proposal for 'Chinese
Manufacturing Zone' in Uttar Pradesh
[16 March 2015, Economic Times] Posted 15
March. By PTI: LUCKNOW: With around 50
Chinese firms evincing interest towards
investment in Uttar Pradesh [Northern India],
industry body Assocham is working on a proposal
for setting up a 'Chinese Manufacturing Zone' in
the state.
Around 50 Chinese companies were in contact
with the industry body, Assocham's secretary
general D S Rawat told PTI. He said that these
companies want to invest in India through a
'manufacturing zone' and as per their
requirement UP is the most suitable place.
Your Daily News 16 March 2015
13
"Assocham is working on a project, whose
proposal will be submitted to Chief Minister
Akhilesh Yadav after three weeks. In this
proposal, we will ask the government to set up a
Chinese manufacturing zone.
"If the government provides land and some
rebate in taxes to these willing companies then
they will create a zone on their own. They want
to bring 100 other companies with them," Rawat
said.
Read more at:
http://economictimes.indiatimes.com/articleshow
/46573017.cms
India must seize chance to be top economy,
IMF chief Christine Lagarde says
[16 March 2015, Times of India] By Surojit
Gupta, TNN: India has an opportunity to emerge
as one of the world's most dynamic economies
but it needs to implement the planned reforms
and open up more fully to the world, IMF chief
Christine Lagarde [pictured] told TOI in an
exclusive written interview.
Lagarde, who begins her India visit on Monday,
praised the steps taken by PM Narendra Modi and
RBI governor Raghuram Rajan to steer the
economy to a higher growth trajectory and called
for bringing more women into the workforce to
boost growth.
"India is indeed a bright spot in the global
economy, and economic developments hold much
promise. I believe India has an opportunity to
become one of the world's most dynamic
economy, and my message during my visit here
will be: seize it!," Lagarde told TOI.
The IMF chief also lauded the government's
financial inclusion plan Jan Dhan and said the
JAM trinity (Jan Dhan, Aadhar and Mobile) is an
important step towards overhaul of the subsidy
regime.
Read more at:
http://timesofindia.indiatimes.com/business/india
-business/India-must-seize-chance-to-be-top-
economy-IMF-chief-Christine-Lagarde-
says/articleshow/46578103.cms
Should Australia join the Asian
Infrastructure Investment Bank?
[16 March 2015, Business Spectator] By Stephen
Grenville: Should Australia join the Chinese-
sponsored Asian Infrastructure Investment Bank?
As often happens in international affairs, the
answer is not found in the technical pros and
cons of the proposal, but in the politics.
America seems to have strongly encouraged its
close Asian friends (Japan, South Korea and
Australia) not to join, concerned about China's
growing influence in Asia. But now that the UK
has decided to become a founding member, the
pressure is on the hold-outs to sign up.
There is no doubt that Asia needs much more
infrastructure; that China has a lot of experience
at building it; and that China has massive savings
to help fund it. There is no doubt, too, that there
would be some overlap with the World Bank and,
perhaps more obviously, with the Asian
Development Bank.
The AIIB does raise some questions. Would some
competition between rival funding institutions be
helpful? Would this new channel add to the
resources going into infrastructure, or just re-
channel the same funds? Is Australia more
effective in improving AIIB governance by joining
in from the start or by playing hard-to-get?
To start, the AIIB is just one more example of
devolution away from the centralised global
economic institutions created at Bretton Woods in
1944 and towards a more regional framework.
Your Daily News 16 March 2015
14
The establishment of the Asian Development
Bank in 1966 was an early example. The
devolution process in Asia was given a huge
boost by the Asian financial crisis of 1997-8.
Many policy-makers in the region still hold the
view that the IMF failed to understand the crisis,
and from then on, they realised they should work
to build regional institutions.
Read more:
www.businessspectator.com.au/article/2015/3/1
6/asia/should-australia-join-asian-infrastructure-
investment-bank
INDIA: Government against retro tax
legislation, says Arun Jaitley
[16 March 2015, Times of India] By Kounteya
Sinha, TNN: LONDON: Finance minister Arun
Jaitley [pictured] has said the government will
not move in the direction of "retrospective
legislation on tax issues", referring to the latest
controversy surrounding Cairn Energy and Cairn
India.
"We have stuck to our word," he said. "For any
assessee, if he has any grievance against the
legacy issues of the previous government, they
have the due process to resort to. There is huge
enthusiasm over India and the country is back on
the radar of international investors."
Jaitley also said that wherever a judicial process
had decided an issue, the government had
chosen not to challenge it. On the issue of fresh
notices or action, any assessing officer who
wanted to take such action would have to have
the clearance of the Central Board of Direct
Taxes, and "legacy claims and notices" that had
been initiated by the previous UPA government
need to be sorted out through a due judicial
process, he added.
Jaitley, who had meetings with British Prime
Minister David Cameron and Chancellor of the
Exchequer George Osborne on Saturday, said he
was confident that India's GDP will see a growth
of 7.4% this year and 8% next year.
In an interview to TOI, Patricia Hewitt, chair of
the UK India Business Council (UKIBC), said she
was disappointed by the news that Cairn Energy
has been hit with a demand for $1.6 billion in
retrospective taxes.
Read more at:
http://timesofindia.indiatimes.com/business/india
-business/Govt-against-retro-tax-legislation-
FM/articleshow/46578237.cms
AUSTRALIA: New car sales rise in February
[16 March 2015, Business Spectator] By Mitchell
Neems: The Reserve Bank of Australia's February
rate cut appears to have produced the adrenaline
shot to the economy it was intended to,
according to Australian Bureau of Statistics (ABS)
data.
The latest figures show new vehicle sales rose a
seasonally adjusted 2.9 per cent to 95,737 in the
month. The figure compares to an upwardly
revised 93,035 in January. Total sales are now a
seasonally adjusted 4.1 per cent higher than a
year earlier.
In February, the RBA cut the official cash rate to
2.25 per cent, the lowest point on record in a bid
to stimulate the local economy amid a low price
environment for commodities and a weakening
Australian dollar.
The Northern Territory led the strong
performance, with new car sales in the Top End
lifting 22.4 per cent in the month, followed by a
rise of 8.8 per cent in South Australia and 5.9 per
cent in the ACT
Read more at:
www.businessspectator.com.au/news/2015/3/16/
economy/new-car-sales-rise-february
Your Daily News 16 March 2015
15
AUSTRALIA: Agrarian socialists hold the
NSW power keys
[16 March 2015, Business Spectator] By Keith
Orchison: The ―conversation‖ in New South Wales
on power privatisation in the run-up to the March
28 state election has inevitably descended into a
shouting match, and the really important point at
issue -- how many voters are listening -- will only
become apparent on or after polling day.
In one sense the ―debate‖ only matters in the 5
per cent of the state that makes up the ―Greater
Sydney‖ conurbation stretching from the
Illawarra in the south to the Blue Mountains, and
north to the Central Coast plus the Hunter Valley
– home to most power consumers, most voters
and the two large distribution businesses from
which Mike Baird hopes to garner much of the
revenue from leasing the networks.
The rural distribution franchise holder will not be
offered for sale if the Coalition wins the election,
but voters who live in 90 per cent of the state
served by Essential Energy are still important
because their Legislative Council choices will help
decide whether Baird‘s parliamentary privateering
path is a molehill or a mountain.
Country power consumers in sprawling NSW pay
more for their energy than the urban types
because the network costs to reach them are
higher -- lower user density and more poles,
wires, transformers and so forth.
Read more:
http://www.businessspectator.com.au/article/201
5/3/16/election/agrarian-socialists-hold-nsw-
power-keys
AUSTRALIA: Uni deregulation plan looks
doomed
[16 March 2015, Business Spectator] AAP:
Independent senator Jacqui Lambie will leave her
hospital bed early to join other crossbenchers in
opposing the Abbott government's university
deregulation plan.
Labor and crossbenchers have criticised the
government for linking $150 million in annual
science funding to fee deregulation, putting at
risk the jobs of 1700 researchers.
Opposition higher education spokesman Kim Carr
flagged he'll be moving a motion condemning the
move on Monday, co-sponsored by the majority
of the crossbench.
A vote on the bill is due on Wednesday.
"It is time for the education minister to admit his
policy is unfair and accept defeat with good
grace," Senator Carr said in a statement.
Read more at:
http://www.businessspectator.com.au/news/201
5/3/16/national-affairs/uni-deregulation-plan-
looks-doomed
How to resolve residential mortgage
distress
[16 March 2015, Business Spectator] By Jochen
Andritzky: In housing crises, high mortgage debt
can feed a vicious circle of falling housing prices
and economic slowdown. As a result, more
households default on their mortgages and the
crisis deepens.
Last year‘s IMF Working Paper studies the
differences in the housing crises and policy
responses in Iceland, Ireland, Spain, and the
United States, and argues that crisis policies
geared to provide temporary debt service relief
for struggling households, followed by durable
loan modifications, can help break this vicious
circle.
Why policymakers worry about mortgage distress
The recent global financial crisis affected many
countries, but those with previous housing booms
and high mortgage debt typically suffered deeper
and longer recessions. One reason is that housing
busts and high debt can amplify the initial shock.
For instance, property markets may get flooded
from forced home sales by over-indebted
households. The resulting fall in house prices
then further reduces the wealth of all
homeowners and induces them to cut
consumption, which slows the economy even
more. We saw this cycle play out in the recent
housing crises in Iceland, Ireland, Spain, and the
United States, although with different intensity.
For sure, it is best to avoid housing-related
boom-bust cycles, as emphasised in previous
work on housing recoveries. However, once
mortgage default becomes widespread, a crisis
resolution strategy is needed. While the
experience shows that there is no ―one-size-fits-
Your Daily News 16 March 2015
16
all‖ solution, there are a few policies that could
help to curtail the downward spiral resulting from
severe housing busts.
Read more:
http://www.businessspectator.com.au/article/201
5/3/16/global-news/how-resolve-residential-
mortgage-distress
What your business can learn from startups
[16 March 2015, Smart Company] By Brad
Howarth: The start-up scene in Australia is
undoubtedly booming, as a growing number of
entrepreneurs set about launching businesses
they hope will achieve high growth and equally
high returns.
As a result, the overall understanding of what
makes a good start-up is becoming more
widespread. And while those lessons are readily
adopted and enhanced by each successive wave
of entrepreneurs, they are also proving applicable
to the broader rump of Australian small
businesses with more modest aspiration for
growth.
Read more: Five startups to watch in 2015
Indeed, the same tools and processes that help
startups achieve rapid growth can be harnessed
by any business, and give small business owners
back two of the commodities they most
desperately covet – time and money.
Read more at:
http://www.smartcompany.com.au/technology/4
6079-what-your-business-can-learn-from-
startups.html
CHINA: China's Li warns on growth
[16 March 2015, Business Spectator] DOW
JONES NEWSWIRES: China's premier has warned
that the world's No. 2 economy faces
"considerable" downward pressure and said that
Beijing has the tools to spur growth if the
slowdown hits employment.
At his annual news conference, Premier Li
Keqiang said "we are prepared to step up efforts"
to support the economy if a slowdown hits
employment. China has "more tools in the
toolbox" if that were to happen, he said.
Speaking for two hours before foreign and
domestic media, Mr Li touched on a range of
topics. He said China and the US have many
common interests, despite tensions, and played
down the idea of China threatening Washington,
while he also said China supports the territorial
integrity of Ukraine. He also called for stern
punishment for major polluters and dismissed the
idea that China is a source of global deflationary
pressure.
He also addressed violence along the China-
Myanmar border. On Friday four Chinese farmers
were killed and another nine injured after a bomb
was dropped on Chinese territory. China has
blamed a Myanmar warplane, while the Myanmar
government has blamed local rebels.
"We have the responsibility and the capacity to
firmly safeguard stability" and will protect "lives
and property" in the border area, Mr Li said.
On the economy, Mr Li said that China has room
to take further action because it has refrained
from massive stimulus measures in recent years,
despite a slowdown in growth.
Read more:
www.businessspectator.com.au/news/2015/3/16/
china/chinas-li-warns-growth
Markit China Business Outlook
[16 March 2015, Markit Economics] The Markit
Business Outlook Survey, which looks at
expectations for the year ahead, indicated
continued optimism at Chinese companies
regarding future business activity. Furthermore,
February‘s net balance of +30 percent is up from
+26 percent in the autumn to the highest reading
in a year. The latest reading is also above both
the BRIC and global averages (+28 percent and
+27 percent, respectively).
Key points:
Confidence towards activity, business
revenues
and new orders improves at start of 2015
Input price inflation set to remain muted
Slight fall in selling prices forecast
Read more at:
http://www.markiteconomics.com/Survey/PressR
elease.mvc/53cbf3089b0f4623b53fcaae834c4dd2
Your Daily News 16 March 2015
17
China becomes the world's third largest
arms exporter
[16 March 2015, BBC News] China has become
the world's third largest exporter of arms after
the US and Russia, according to a new report.
China overtook Germany, France and the UK in
exporting weapons between 2010 and 2014, said
the Stockholm International Peace Research
Institute (SIPRI).
China now accounts for about 5% of the world's
exports of arms. Three Asian countries -
Pakistan, Bangladesh and Myanmar - accounted
for more than two-thirds of those exports.
The world's second largest economy also had 18
African nations as clients during the five-year
period, according to the study, which said the
data reflected the volume of arms deliveries and
not the financial value of the deals.
Read more at:
http://www.bbc.co.uk/news/technology-
31901493
Markit Global Business Outlook
[16 March 2015, Markit Economics] The Markit
Global Business Outlook Survey, which looks at
expectations for the year ahead across 6,100
companies, found optimism to have fallen to a
post-financial crisis low in February. The waning
largely reflected a fading of sentiment from last
year‘s peaks in the US and UK, and masks a
welcome upturn in sentiment in the Eurozone,
China and Japan.
Key points:
Expectations regarding activity and
employment hit new survey lows in February
Softer US and UK outlooks contrast with better
sentiment in Eurozone, Japan and China
Outlook remains weak in Russia
Global price pressures pick up from October‘s
low, but deflation risk rises in China
Read more at:
http://www.markiteconomics.com/Survey/PressRel
ease.mvc/a3d006c9f750422ba99dab1c70185af1
Markit Japan Business Outlook
[16 March 2015, Markit Economics] The Markit
Business Outlook Survey, which looks at
expectations for the year ahead, signalled
strengthened confidence at Japanese private
sector companies in February, with the overall
net balance posting at +16 percent, up from +13
percent in October. However, sentiment in Japan
is the lowest out of the 12 major countries
surveyed.
Key points:
Business activity forecasts more optimistic
than last autumn…
…but remains subdued by global standards
Positive expectations for employment
Read more at:
http://www.markiteconomics.com/Survey/PressR
elease.mvc/09bd3643a09b4ff4b8bf73f59554f0fe
Markit U.S. Business Outlook
[16 March 2015, Markit Economics] The Markit
Business Outlook Survey, which looks at
expectations for the year ahead across 650 US
private sector companies, highlighted that
business sentiment remained positive in
February, but the degree of optimism moderated
to a post-crisis low. At +24 percent, down from
+31 percent in October 2014, the net balance of
firms expecting a rise in business activity over
the year ahead was the lowest since the survey
began in late-2009.
Key points:
Your Daily News 16 March 2015
18
U.S. private sector firms report weakest
business optimism since the survey began in
2009
Job hiring intentions moderate in February
Input price expectations pick up from last
October‘s survey-record low
Read more at:
http://www.markiteconomics.com/Survey/PressR
elease.mvc/8b2334e3a96e41718d3dada5d8ced8
e8
Markit India Business Outlook
[16 March 2015, Markit Economics] The Markit
India Business Outlook survey points to sustained
optimism among Indian companies. However, the
net balance of +26 percent for overall output is
the lowest in one year and below the both the
BRIC and global averages. Weaker degrees of
sentiment have been recorded across the
manufacturing and service sectors, with the
respective net balances registering +24 and +28
percent in February.
Key points:
Growth of both output and new business is
forecast to soften
Employment is set to expand at slower pace
Inflation rates projected to ease
Read more at:
http://www.markiteconomics.com/Survey/PressRele
ase.mvc/6c245b71d89a4f85b5eb978967566cd1
AUSTRALIA: Cheques? A dying breed,
statistics show
[16 March 2015, Finance Rising] Posted 13
March: By Leighann Morris: As a payment
method, cheques are on the way out, or so
proves recent Australian statistics. Usage
declined by 14% last year as card payments and
direct debits gained traction.
Between 2002 and 2014, cheques saw a 71%
decline. However, they are still used for property
settlements and major business payments,
according to the Australian Payments Clearing
Association (APCA).
As a result, banks are unlikely to cease from
accepting cheques as a payment method in the
foreseeable future, says APCA.
Read more:
http://www.financerising.com/2015/03/13/chequ
es-a-dying-breed-statistics-show/
Dubai‟s Emaar Says Not Part Of Egypt‟s
Capital City Project
[16 March 2015, Gulf Business] Reuters: Dubai‘s
Emaar Properties is not involved in a project to
build a new administrative capital city in Egypt, it
said on Monday after Egyptian and United Arab
Emirates media reports that the company would
participate in the ambitious scheme.
Emaar, 29 per cent owned by state fund
Investment Corporation of Dubai, last month filed
a request to list its Egyptian unit on Cairo‘s
bourse, and the UAE is a close ally of Egypt‘s
President Abdel Fattah al-Sisi.
But the company said in a Dubai bourse
statement on Monday that it was not involved in
developing the planned new capital to the east of
Cairo, which housing minister Mostafa Madbouli
said on Friday would take up to seven years to
build at a cost of $45 billion.
Read more at:
http://gulfbusiness.com/2015/03/dubais-emaar-
says-part-egypts-capital-city-project/
UAE Job Market Set To Boom This Year
[16 March 2015, Gulf Business] A stable economy
and an unwavering flow of investments will push
up hiring, writes Suhail Masri, VP of Bayt.com:
With a stable economy and an unwavering flow of
investments across various sectors, job seekers
in the UAE have a good reason to rejoice.
A recent survey done by Bayt.com has shown
that the job market in the country will be picking
up in the next three and 12 months.
The Bayt.com Middle East Job Index survey
(February 2015) reveals that 55 per cent of
Your Daily News 16 March 2015
19
employers in the UAE are hiring within the next
three months; 68 per cent are hiring within a
year‘s time. Up to 69 per cent of employers hiring
within the next three months are looking to fill up
to 10 positions in their companies.
Data from Bayt.com Middle East Job Index survey
suggests that junior executives (40 per cent) will
be highly in demand. UAE employers will be
mostly looking for accountants, sales managers,
customer service representatives and
receptionists, with banking/finance (38 per cent),
construction (34 per cent), oil, gas and
petrochemicals (31 per cent) and tourism (30 per
cent) emerging as the top industries that will be
hiring talents in the UAE.
Read more at:
http://gulfbusiness.com/2015/03/uae-job-
market-set-boom-year
Your Daily News 16 March 2015
20
News from Europe
Google to open first UK drop in „garage‟ to
fix 200,000 SMEs web problems
[16 March 2015, Business Matters] Posted on 13
March: Google has launched its first "digital
garage", a multi-million pound project it said
would help 200,000 UK SMEs harness the
internet to grow their business.
Its first ―garage‖ – a drop-in centre that will
advise on building a mobile website, developing
e-commerce and optimising Internet search
rankings.
To kick-off the project, Google will open The
Leeds Garage, a pop-up space based in Leeds
Dock, which will open its doors on March 30th as
part of a six-month pilot initiative.
Businesses are invited to get a digital ‗tune-up‘
and participate in master classes based on
Google‘s own expertise. Small businesses and
aspiring entrepreneurs are also invited to
participate in events organised by local partners
and take advantage of one-to-one mentoring
sessions, which can help any business become a
digital business.
Eileen Naughton, Google‘s managing director of
UK and Ireland, said less than 30 percent of
small businesses had an effective online
presence, and Google wanted to ―jump start‖ the
other 70 percent. ―We understand (small
businesses) don‘t have the benefit of large IT
tech infrastructure and development, and they
need our assistance in this area
disproportionately more than a large business
would,‖ she said in an interview.
―We‘ve never set up an outpost in a city – in a
garage – as we have here in Leeds, and offered
these services openly. For us, it‘s an exciting
experiment.‖
Read more:
http://www.bmmagazine.co.uk/news/google-to-
open-first-uk-drop-in-garage-to-fix-smes-web-
problems/
GOV.UK Announcements 16/03/2015
[16 March 2015, GOV.uk] Announcements by
GOV.uk on 12 and 13 March.
Announcements
Press release: Surge in British built vehicles
with British made components: New research
reveals that British cars are being made with
more British sourced components.
Consultation outcome: Trade unions: assured
registers of members: [Updated: Government
response published.] Views are sought on the
requirement for trade unions to give annual
assurance that membership registers are up to
date.
Guidance: Trade union: register of members -
new requirements: Explains the new
requirement for trade unions to provide
confirmation that their membership registers
are up to date.
Press release: Consumer champion Lynn
Faulds Wood to lead product safety review:
Leading consumer campaigner Lynn Faulds
Wood will lead a review of the UK‘s system for
the recall of unsafe products.
Research and analysis: Traineeships:
evaluation: [Updated: The full report was
published.] Findings from a survey of the first
year of the traineeships programme.
News story: Reunited - Sellafield‘s first ever
female apprentices: A guest article from
nuclear firm Sellafield Ltd - to celebrate
National Apprenticeship Week 2015.
Corporate report: BIS performance indicators:
enterprise: [Updated: 'Value Enterprise
Finance Guarantee funds used by businesses
(input indicator)' was replaced with the latest
version.]
Your Daily News 16 March 2015
21
The input and impact indicators on enterprise
as set out in the departmental business plan.
Guidance: Cyber security supplier to
government scheme: [Updated: Added
Protection Group International and CyberLytic
to the list of suppliers.]: Cyber security
supplier to government scheme guidance note,
application form and participating companies.
Guidance: Export control: licensing
performance dashboard: [Updated: Added
February 2015 performance data.] Trends in
licensing, with guidance on avoiding
processing delays for your export licence
applications.
Guidance: Export control training bulletin:
January to July 2015: [Updated: The
Beginners Workshop for 14 May is fully
booked.] Details of courses, seminars and
workshops to help you understand UK
strategic export controls.
Source:
http://www.GOV.uk
20 new banks in next five years
[16 March 2015, Mortgage Finance Gazette]
Posted on 13 March, by Joanne Atkin: Over the
next five years, there are likely to be five or six
new banks each year, some new entrants might
merge, and the introduction of ring-fenced banks
will result in a different landscape to retail
banking by 2020.
This was the conclusion of a speech given at the
Mortgage Finance Gazette Conference on 11
March, by Martin Stewart, director of banks,
building societies and credit unions at the
Prudential Regulation Authority and Bank of
England.
He anticipates that a number of non-bank lenders
will apply for a banking licence but the PRA still
expects to see both bank and non-bank mortgage
lenders continuing to operate in the UK mortgage
market.
Read more:
http://www.mortgagefinancegazette.com/bankin
g/20-new-banks-next-five-years/
Markit France Business Outlook
[16 March 2015, Markit Economics] The latest
Markit Business Outlook Survey shows that
optimism in France‘s private sector economy to
the highest level for one year in February. A net
balance of +19 percent of companies anticipate
growth of activity during the coming 12 months.
This is up from +13 percent last autumn.
However, sentiment in France is weaker than the
eurozone and global averages (+38 percent and
+27 percent respectively).
Key points:
Firms report brighter outlook for activity, new
business and revenues
Strongest outlook for profits since June 2011
Slight increase in employment forecast
Read more at:
http://www.markiteconomics.com/Survey/PressR
elease.mvc/918603978b1a4bfda3d90bcf83723fb
7
Markit Germany Business Outlook
[16 March 2015, Markit Economics] Markit‘s
latest Business Outlook Survey signals an
improvement in optimism at German
manufacturing and service sector companies. The
data highlight positive expectations towards
business activity, revenues, new orders and
profits, and a record proportion of firms intend to
add to their payrolls. Companies furthermore
expect both input and output prices to increase
over the next 12 months.
Key points:
Survey data shows positive expectations for all
main measures of corporate health
Improving economic conditions and higher
exports likely to boost growth in coming year
Hiring intentions hit record high
Read more at:
http://www.markiteconomics.com/Survey/PressR
elease.mvc/a93dab0fc1764fc5bf8acb2f495579eb
Markit UK Business Outlook
[16 March 2015, Markit Economics] Markit‘s
Business Outlook Survey signals ongoing
optimism at UK private sector companies in
February. While levels of positive sentiment are
down across most key barometers of corporate
health, optimism remains strong in the context of
historical data and well above the global average.
Key points:
Strong sterling, potential interest rate rise,
Eurozone uncertainty and general election
dampen business confidence
Your Daily News 16 March 2015
22
Optimism eases across services,
manufacturing and construction sectors
Further strong rise in employment expected
Read more at:
http://www.markiteconomics.com/Survey/PressR
elease.mvc/4d1e122dc8a94333aaa427d859bf5c3
3
NI Business Calls For Corporation Tax Cut
[16 March 2015, Tax-News.com] Posted on 13
March. By Jason Gorringe, Tax-News.com,
London: Paul Henry, the Chairman of Chartered
Accountants Ulster Society, has said that a
corporation tax cut would be an important
catalyst for economic and social change in
Northern Ireland.
Speaking at the Society's annual dinner, Henry
said: "Many people felt that devolution of the
power to reduce corporation tax to the Stormont
Executive could never happen. We do, however,
now have a potential operation date of April 2017
for this new incentive. This is tremendously
significant as it allows our elected representatives
and potential investors into Northern Ireland to
plan ahead and realistically evaluate the benefits
of the incentive. Now that a timetable has been
set, we can all work to deliver the benefits."
Henry noted the conditions attached to the
devolution of corporation tax powers. Under last
December's Stormont Agreement, the Northern
Ireland Executive must implement welfare and
public sector reform, bring the budget under
control, and resolve outstanding issues relating
to Northern Ireland's past.
See more at:
http://tax-
news.com/news/NI_Business_Calls_For_Corporat
ion_Tax_Cut____67528.html
Iceland drops bid to become part of
European Union
[16 March 2015, The Independent] Posted on 13
March. By Loulla-Mae Eleftheriou-Smith: Iceland
has withdrawn its bid to become part of the
European Union, two years after its application
was paused when a centre-right coalition party
came into power.
―Iceland‘s interests are better served outside of
the European Union,‖ the country‘s foreign
minister, Gunnar Bragi Sveinsson [pictured]
wrote on his website, the Guardian reports.
Iceland first placed its bid to become part of the
EU in 2009 when the country was ruled by a left-
leaning government and its economic stability
had been crippled by the financial crisis.
But a continued sticking point between Iceland
and the EU was the Common Fisheries Policy,
Deutsche Welle reports. The Union‘s law currently
dictates which states can catch what kind of fish
and in what amount, while Iceland has long
claimed that its own system, which did not
comply with EU regulation, was better for
business and for preserving fish populations.
See more at:
http://www.independent.co.uk/news/world/europ
e/iceland-drops-bid-to-become-part-of-european-
union-10106502.html
Your Daily News 16 March 2015
23
Greek finance minister Yanis Varoufakis
sounds alarm over quantitative easing
[16 March 2015, CITY A.M.] Posted on 14 March.
By Jessica Morris: The European Central Bank
kicked off its bond-buying programme this week,
as investors cheered the move, however Greece's
Finance Minister Yanis Varoufakis warned over its
potential outcomes.
"QE is all around us and optimism is in the air,"
Varoufakis said in Italy. "At the risk to sound the
party pooper ... I find it hard to understand how
the broadening of the monetary base in our
fragmented and fragmenting monetary union will
transform itself into a substantial increase in
productive investments."
"The result of this is going to be an equity run
boost that will prove unsustainable."
Frankfurt unleashed its "biggest bazooka", or the
€1.1 trillion (£720bn) quantitative easing
programme this week. The ECB will buy around
€60bn worth of public and private bonds every
month up until September 2016.
It's hoped the package will ward off a bout of
prolonged deflation, and boost economic growth
in the ailing region.
See more at:
http://www.cityam.com/211575/greece-finance-
minister-says-qe-will-fuel-unsustainable-equity-
rally
UKTI Business Opportunities 16/03/2015
[16 March 2015, UKTI] Posting of business
opportunities from UK Trade & Investment.
Business Opportunities
Cyprus - Preparation for the implementation of
the acquis - IPA: Technical assistance required
to help prepare the Turkish Cypriot community
for the implementation of the EU acquis
Cyprus - Social and economic development
and infrastructure - IPA: Technical assistance,
supplies and works required for economic
development project in Turkish Cyprus
Source:
http://www.businessopportunities.ukti.gov.uk
Italy Has EU's Highest Tax Compliance Cost
[16 March 2015, Tax-News.com] Posted on 13
March. By Ulrika Lomas, Tax-News.com,
Brussels: A medium-sized Italian company
spends on average EUR7,559 (USD8,010) every
year to complete administrative requirements
under the country's bureaucratic tax code,
according to data provided by the ImpresaLavoro
research center.
ImpresaLavoro calls the cost suffered in
maintaining tax compliance "an amount that is
without equal in the rest of Europe, and
represents a real additional hidden tax that
Italian companies are forced to bear."
The World Bank, in its report on Doing Business,
has noted that Italian businesses have to put in
269 hours to prepare and compile the necessary
documents and returns regarding employees'
taxes, value-added tax, and taxes on business
profits. Meanwhile, Eurostat has estimated that
the cost of that time is EUR28.1 per hour.
ImpresaLavoro therefore has declared Italy the
winner in the "non-prestigious" classification of
having the EU's most burdensome tax regime,
beating Germany, in second place, by EUR736
(218 tax-compliance hours at a cost of EUR31.1
per hour, or EUR3 more).
Even though France has a tax code as complex as
Italy's, it takes a French company only 137 hours
to comply with their taxes each year, at a total
cost of EUR4,699. That cost in the United
Kingdom was found to be EUR2,299.
See more at:
http://tax-
news.com/news/Italy_Has_EUs_Highest_Tax_Co
mpliance_Cost____67526.html
UK: Abolishing IR35 would cost £550m per
year, HMRC claims
[16 March 2015, AccountancyAGE] Posted on 13
March, by Calum Fuller: Abolishing the IR35
regime would prove far more costly to the public
purse than continuing to operate it, HM Revenue
& Customs claims.
According to figures released this week,
continuing to operate IR35 will incur
administrative costs of £16m, while repealing it
would hit the Exchequer to the tune of £550m
per year.
The legislation, designed to prevent people from
lowering their tax bill by not being directly
Your Daily News 16 March 2015
24
employed, has been the source of various
controversies in recent years.
There was public and political anger in 2012 after
it was revealed 2,000 senior office holders of
public bodies were revealed to be receiving
payment off-payroll, while the BBC revealed later
in the year that 148 of its 467 presenters were
engaged in the same fashion.
The numbers were reached based on figures from
2010/11, when around 6,000 operated through a
service company and were applying IR35.
Read more:
http://www.accountancyage.com/aa/news/23995
55/abolishing-ir35-would-cost-gbp550m-per-
year-hmrc-claims
FCA sets out final guidance on social media
[16 March 2015, New Model Adviser] Posted 13
March: By Michelle Abrego: The Financial
Conduct Authority (FCA) has finalised its
guidance on social media promotions, asking
firms to approve and record all digital media
communications.
In August 2014, the FCA set out its proposed
supervisory stance of financial promotions in
social media after it said it had noticed an
increase in firms‘ use of digital media for
customer communications.
The FCA reiterated that firms need to make sure
advertisements on social media platforms need
be considered individually, with stand-alone
compliance and that all promotions should be
‗fair, clear and not misleading‘.
In its finalised guidance, the FCA said its existing
requirements on approval and recordkeeping of
every financial promotion extended to social
media.
To see the guidance, click here.
Read more:
http://citywire.co.uk/new-model-
adviser/news/fca-sets-out-final-guidance-on-
social-media/a803442
UK: Lending rules push owners to equity
release
[16 March 2015, CITY A.M.] By Chris
Papadopoullos: Stricter mortgage rules could be
creating difficulties for homeowners looking to
remortgage later in life, leading to a boom in
equity release.
Equity release usually involves either a lifetime
mortgage – a mortgage that does not need to be
repaid until the borrower dies – or selling a share
in your home in a deal that still allows you to
spend the rest of your life there.
The number of new equity release customers
aged between 55 and 64 jumped by 32 per cent
in the second half of 2014, according to figures
released today by the Equity Release Council
(ERC).
The bump in homeowners looking to equity
release follows the implementation of the
Mortgage Market Review (MMR) in April, which
put stricter rules on mortgage lending. Prior to
MMR implementation, the proportion of
customers aged 55-64 had been in decline.
Read more:
http://www.cityam.com/211624/lending-rules-
push-owners-equity-release
UK: New tax avoidance offence expected in
Budget
[16 March 2015, ICAEW Economia] Posted 12
March: Accountancy firms predict that a new
offence of aiding and abetting tax evasion and
aggressive tax avoidance will be announced in
next week‘s Budget
It is expected that George Osborne will outline
proposals to introduce special measures, aimed
at professional service firms, to deter serial
avoiders and scheme promoters.
The controversial proposals, including stiff
penalties to tackle offshore evasion, had been
quietly dropped until recent events forced HMRC
to put them back on the agenda, according to
BDO.
―Criminal sanctions for tax evasion already exist
but only for those who intended to defraud the
exchequer and there is a high burden of proof in
a criminal trial. However, under the new
proposals, HMRC will only need to demonstrate
that a person failed to declare correctly their
offshore income and gains and, therefore, intent
becomes irrelevant,‖ said Dawn Register, partner,
tax dispute resolution, BDO.
Your Daily News 16 March 2015
25
See more at:
http://economia.icaew.com/news/march-
2015/new-tax-avoidance-offence-expected-in-
budget
UK: 'Radical' business rates review launched
[16 March 2015, BBC News] A "radical" review of
the business rates system in England has been
launched, with its findings due in time for the
Budget in 2016.
The review "paves the way for changes" to the
current system, which has been in place since
1988, the Treasury said.
However, the outcome is expected to be fiscally
neutral, meaning that the total sum collected
from businesses will not change.
The review was first announced in December's
Autumn Statement.
"The time has come for a radical review of this
important tax. We want to ensure the business
rates system is fair, efficient and effective," said
Danny Alexander, chief secretary to the Treasury.
The Treasury said the review will look at how
firms use property, what the UK could learn from
other countries and how the system could be
modernised to better reflect changes in property
values.
Read more:
http://www.bbc.co.uk/news/business-31897113
UK Budget 2015: No gimmicks, pledges
George Osborne
[16 March 2015, BBC News] Posted 15 March:
Chancellor George Osborne has promised "no
giveaways, no gimmicks" in this week's Budget -
but said he would further relax pension rules.
He is set to allow up to five million existing
pensioners to swap their fixed annual payments
for cash.
Mr Osborne told the BBC his last Budget before
the election would be one for a "truly national
recovery".
Labour's Ed Balls said the Tories were committed
to an "ideological plan" for the biggest cuts since
World War Two.
The chancellor and shadow chancellor both
appeared on the BBC's Andrew Marr Show days
before the Budget, the last one before all the
parties go to the polls on 7 May.
In what is seen as an attempt to woo older
voters, the chancellor is expected to extend
pension changes from April 2016, to allow
existing pensioners to swap their annuity for a
fixed lump sum.
It follows reforms announced last year that allow
working people to cash in all or part of their
defined contribution pension when they retire,
rather than buy an annuity that guarantees an
income for life.
Read more:
http://www.bbc.co.uk/news/uk-31892518
New Report reveals 100 EU regulations that
cost Britain £33bn
[16 March 2015, CITY A.M.] By Guy Bentley: 100
of the EU's most draconian regulations are
costing Britain over £33bn a year, according new
analysis from the think-tank Open Europe.
Adding insult to injury, the report reveals that the
accompanying impact assessment found the
costs of a quarter of these regulations
outweighed the estimated benefits but were
signed off by the British government all the
same. These included the Temporary Agency
Workers Directive and the Energy Performance of
Buildings Directive.
Your Daily News 16 March 2015
26
The total cost of these rules is so large that they
exceed the Treasury's expectations for all the
revenue to be raised in Council Tax for the 2014-
15 financial year. However, despite this gloomy
picture, moving to one alternative to Britain's EU
membership - the Norway option - would result in
93 of these regulations remaining in place.
Read more:
http://www.cityam.com/211588/open-europe-
reveals-100-eu-regulations-cost-britain-33bn
Crimea‟s grim anniversary
[16 March 2015, European Voice] As the Russia-
Ukraine crisis enters its second year, EU leaders
must turn their attention to the sanctions regime
and increasing pressure on Russia‘s energy
interests, writes Andrew Gardner:
The first anniversary of Russia‘s annexation of
Ukraine‘s Crimean peninsula falls on Wednesday
(18 March). In Russia, the anniversary will be
hard to miss: large celebrations are planned. The
European Union will mark the moment in glum
ways, both explicitly – EU foreign ministers will
put out a critical statement when they meet
today (16 March) – and, more generally, by
dedicating much of a meeting of EU leaders (19-
20 March) to issues related to Russia.
The EU has punished Russia for grabbing Crimea
from Ukraine, by imposing comprehensive
sanctions. One thing is certain in this anniversary
week: there will be no softening of the EU‘s
position on Crimea. ―There is no division on that;
that has always been very clear,‖ said one
diplomat last week.
There is no such unity in the EU‘s debate about
economic sanctions against Russia, which
currently turns on the question of extending
existing sanctions until the end of the year. When
EU leaders last met, on 12 February, France and
Germany had hours earlier brokered a peace
process in Minsk that is supposed to culminate, at
the end of the year, with Ukraine regaining
control of its eastern borders from separatists
and Russian forces.
It therefore seems logical in many national
capitals to extend the EU‘s sanctions on Russia,
which expire in July, until the end of the year.
That way, they reason, EU sanctions will reinforce
the Minsk process. However, some EU states – a
small group led by the Greeks, Cypriots, and
Austrians – argue that sanctions should not be
extended now at a point when there are signs of
a de-escalation in fighting.
Bridging those differences will be the big battle of
Thursday night, when EU leaders discuss the
Ukraine crisis.
Read more:
http://www.europeanvoice.com/article/crimeas-
grim-anniversary/
UK: Farage sets out price of deal with
Cameron after election
[16 March 2015, CITY A.M.] By Charlotte Henry:
NIGEL Farage is prepared to do a deal with the
Democratic Unionist Party (DUP) in Northern
Ireland to support David Cameron, but only in
return for a referendum on Britain‘s EU
membership in 2015.
Writing in his new book ―The Purple Revolution‖,
published tomorrow, the Ukip leader rules out a
formal coalition with the Tories. However, he
says: ―I see a Tory, Ukip, DUP three-way deal as
a possible scenario.‖
Farage believes that the DUP has moved on from
sectarianism and shares Ukip‘s euroscepticism.
Consequently the two parties ―have developed a
mutual respect for each other‖, he says.
Conservative chief whip Michael Gove is another
person that Farage believes he could do a deal
with. This prompted Labour‘s Ed Balls to
comment that a deal between Ukip and the
Conservatives ―is probably happening in [Gove‘s]
kitchen.‖
In a television interview yesterday, chancellor
George Osborne said the idea of deal with Ukip
was ―total nonsense‖, but declined to
categorically rule out the possibility.
Responding, Douglas Alexander, chair of Labour‘s
general election campaign, commented: ―Nigel
Farage wants a Tory government. Ukip is ready
to prop up a Tory government and support their
plan to take spending levels back to the 1930s
when we didn‘t have a health service.‖
Read more:
Your Daily News 16 March 2015
27
http://www.cityam.com/211637/farage-sets-out-
price-deal-cameron-after-election
UK: Government confirms annuity sale plans
[16 March 2015, New Model Adviser] By Jun
Merrett: The government has confirmed it will
allow savers to sell their annuities as part of this
week‘s 2015 Budget.
From April 2016, the government will remove the
restrictions on buying and selling existing
annuities to allow savers to sell the income they
receive from their annuity without unwinding the
original annuity contract.
Currently people wanting to sell their annuity
income to a willing buyer face a 55% tax charge,
or up to 70% in some cases. The government is
set to remove this charge so people will only be
taxed at their marginal rate.
The government said that savers would then
have the freedom to use that capital as they
want, thereby extending its 2014 Budget pension
freedoms to around 5 million people who have
already bought an annuity.
This means they can either take it as a lump sum
or place it into drawdown to use the proceeds
more gradually.
The government will launch a consultation on the
matter later this week.
Read more:
http://citywire.co.uk/new-model-
adviser/news/gov-t-confirms-annuity-sale-
plans/a803855
UK: Business group slams Labour plan for
enforced profit sharing
[16 March 2015, CITY A.M.] By Lynsey Barber:
POTENTIAL Labour party plans to force
companies to share profits with staff have been
slammed by the Institute of Directors as
―counterproductive‖ and a deterrent to
investment.
The policy to force firms with over 50 employees
to set up profit-sharing schemes in the style of
John Lewis is reportedly being considered by Ed
Miliband in a bid to level out economic growth.
Read more:
http://www.cityam.com/211635/business-group-
slams-labour-plan-enforced-profit-sharing
UK: Bankers to face new fitness test under
FCA rules
[16 March 2015, CITY A.M.] By Kasmira Jefford:
Financial services firms will be forced to vet
thousands of staff each year and make sure they
are ―fit and proper‖ to perform their roles under a
new framework being finalised by City regulators.
The Financial Conduct Authority (FCA) and the
Prudential Regulation Authority (PRA) will today
publish the final proposals for a new regime that
will seek to make banks and other lenders take
greater responsibility for the propriety of their
staff rather than the regulators. Sky News first
reported the story.
The new regime represents the City‘s attempt to
impose tough professional standards and repair
the industry‘s tattered reputation following a
series of scandals including Libor rigging, the
Payment Protection Insurance mis-selling and
most recently the HSBC tax allegations.
Read more:
http://www.cityam.com/211634/bankers-face-
new-fitness-test-under-fca-rules
London could see revolutionary skyscrapers
that cast no shadow
[16 March 2015, CITY A.M.] By Lynsey Barber:
London‘s skyline is about to change dramatically
as the only way to build is upwards.
Hundreds of skyscrapers are being planned for
the capital over the next decade and some fear
that could cast a large shadow over the city.
Your Daily News 16 March 2015
28
Now architects have come up with an innovative
new building design however, which can regulate
the amount of light around a tower, meaning
Londoners will be able to bask in the glorious
sunshine rather than being caught in the chilly
shadows cast by the ever-taller towers of the
capital.
Read more:
http://www.cityam.com/211633/london-could-
see-revolutionary-skyscrapers-cast-no-shadow
Slowdown at top and bottom of market hits
London house prices
[16 March 2015, CITY A.M.] By Chris
Papadopoullos: London‘s property prices fell from
February to March, figures released today show.
New seller asking prices dropped by 0.4 per cent
according to online property market Rightmove.
It is the first time in three years that prices have
retreated in March.
High-end property values saw their asking prices
trimmed by 2.6 per cent. Demand for high-end
properties has been hit by stamp duty changes
and Labour‘s proposed mansion tax. First-time
buyer property prices slipped by 0.2 per cent.
Tighter lending criteria and high prices are acting
as a barrier to first-time buyers, Rightmove said.
Read more:
http://www.cityam.com/211623/slowdown-top-
and-bottom-market-hits-london-house-prices
UK: Pension freedoms: 'Don't book a cruise
yet'
[16 March 2015, BBC News] By Kevin Peachey,
Personal finance reporter, posted 13 March:
People planning to cash in their pension savings
under new rules taking effect in April have been
warned "not to book the cruise now".
It will take time and paperwork to withdraw
pension savings as cash, warns Michelle
Cracknell, chief executive of the Pensions
Advisory Service (TPAS).
New regulations that make it easier to access a
pension pot take effect on 6 April. But this does
not mean savers will be offered instant cash
withdrawals.
The new rules mark the biggest overhaul of
pension regulations for many years.
Running out of cash
The changes allow people aged 55 and over to
cash in all or part of their defined contribution
pension if they wish, rather than buy an annuity
that guarantees an income for life.
Read more:
http://www.bbc.co.uk/news/business-31867788
UK: Budget 2015: Police warning over leak
risk
[16 March 2015, BBC News] By James Landale,
Deputy political editor: Posted 13 March: The top
civil servant at the Treasury has warned staff he
will not "hesitate to call in the police" if anyone
leaks details from the Budget.
Sir Nicholas Macpherson has sent an email to
officials reminding them he takes rules banning
any pre-briefing of next week's Budget "very
seriously".
He warned staff not to disclose details of changes
to individual tax rates or economic and fiscal
forecasts. Pre-briefing was banned after much of
the 2013 Budget came out by mistake.
The email, written in bold red type, reads: "It is
now less than a week till the Budget.
Read more:
http://www.bbc.co.uk/news/uk-politics-
31876623
Data protection: EC agrees on general
principles & "one stop shop" mechanism
[16 March 2015, Latvian Presidency of the
Council of the European Union] Posted on 13
March: The Council reached a partial general
approach on specific issues of the draft regulation
setting out a general EU framework for data
protection, on the understanding that nothing is
agreed until everything is agreed.
The partial general approach includes the
chapters and the recitals concerning the "one
stop shop" mechanism (chapters VI and VII) as
well as the chapter and the recitals relating to the
principles for protecting the personal data
(chapter II).
In October and December 2013 the Council
already expressed its support for the principle
that, in important transnational cases, the
regulation should establish a "one-stop-shop"
mechanism in order to arrive at a single
Your Daily News 16 March 2015
29
supervisory decision, which should be fast,
ensure consistent application, provide legal
certainty and reduce the administrative burden.
This is an important factor to enhance the cost-
efficiency of the data protection rules for
international business, and so to contribute to the
growth of the digital economy.
According to the text agreed, the one stop shop
mechanism should only play a role in important
cross-border cases and will provide for
cooperation and joint-decision making between
several data protection authorities concerned.
The text clarifies that the jointly agreed decision
will be adopted by the data protection authority
best placed to deliver the most effective
protection from the perspective of the data
subject.
Read more:
https://eu2015.lv/news/media-releases/921-
data-protection-council-agrees-on-general-
principles-and-the-one-stop-shop-mechanism
Shops desert UK high streets at faster rate
in 2014
[16 March 2015, BBC News] The number of high
street shops fell sharply last year after many
more stores closed than opened, research
suggests.
The Local Data Company, which based its
analysis on the top 500 UK town centres, said a
net total of 987 high street shops disappeared in
2014, almost three times the 2013 total.
Overall, it said 5,839 outlets closed last year,
equivalent to 16 a day. Clothes and shoe shops
suffered the biggest declines, it said.
It found service shops such as opticians and
travel agents also saw net falls in shop numbers,
but leisure stores, such as food and drinks
outlets, continued to thrive. Coffee shops,
tobacconists and charity shops were among those
opening the most branches last year, it said.
The biggest losers by category were mobile
phone shops, which saw their numbers drop by
419, with their decline accelerated by Phones
4U's collapse into administration.
Read more:
http://www.bbc.co.uk/news/business-31899346
European backing for new Papworth
hospitals
[16 March 2015, European Investment Bank]
Posted on 13 March: The European Investment
Bank (EIB) has agreed to provide GBP 46 million
for the new 310 bed Papworth Hospital to be
constructed on the Cambridge Biomedical
Campus next to Addenbrooke's Hospital.
The 31-year loan from Europe‘s long-term
lending institution for the new Papworth Hospital
is the third new hospital to be supported by the
EIB in UK this year following confirmation of
support for the new Royal Hospital for Sick
Children in Edinburgh and the Dumfries and
Galloway Royal Infirmary.
Read more:
http://www.eib.org/infocentre/press/releases/all/
2015/2015-055-european-backing-for-new-
papworth-hospitals.htm
Pound at five-year low after Carney's
comment, disappointing construction data
[16 March 2015, CITY A.M.] Posted 13 March. By
Jessica Morris: The pound slumped to its lowest
level in five years against the dollar, after poor
construction data, and Bank of England governor
Mark Carney's rate comments.
Your Daily News 16 March 2015
30
Construction suffered its worst fall in more than a
year in January, when it contracted 2.6 per cent,
way below economists' expectations. However,
this conflicted with other industry surveys, which
suggest that the construction sector had a much
better start to the year.
Howard Archer, chief UK and European economist
at IHS Global Insight, said: "There is a very real
risk that construction output will contract in the
first quarter of 2015 and be a drag of [economic]
growth."
But it's good news for Carney, who yesterday
warned low inflation outside of the UK and a
strong pound could push back a rate hike.
Read more:
http://www.cityam.com/211565/sterling-falls-
five-year-low-amid-carneys-comment-
disappointing-construction-data
How Halifax wants to use your heartbeat as
a security device
[16 March 2015, CITY A.M.] Posted 13 March. By
Emma Haslett: Bank security just took a step into
the future, after the Halifax introduced a system
that uses your heartbeat to identify you.
Forget pin numbers and card readers - this
system uses a Nymi wristband, which can read
the rhythm of the wearer's heart. According to its
makers, everyone's heartbeat is different - which
makes it the perfect authentication device.
Not only does the wristband sense the wearer's
heartbeat, it can work out where they are - if
they're anywhere near a device which allows
them to access their account, it will unlock it.
Read more:
http://www.cityam.com/211562/how-halifax-
wants-use-your-heartbeat-security-device
HSBC: French prosecutor requests criminal
trial over tax dodging allegations [16 March 2015, CITY A.M.] Posted 13 March. By
Joe Hall: A French prosecutor has requested
HSBC‘s Swiss private bank be sent to a criminal
trial to face charges over a suspected tax
avoidance scheme.
HSBC had been the subject of an investigation
from French magistrates into alleged tax fraud
involving 3,000 French taxpayers, which ended
last month.
The under-fire bank now has a month to respond
after which French magistrates will take the final
decision on whether to hold a criminal trial.
Today HSBC told the Guardian: ―This is a normal
step in the judicial procedure and the outcome of
the matter is not determined as of today.‖
Read more:
http://www.cityam.com/211560/hsbc-french-
prosecutor-requests-criminal-trial-over-tax-
dodging-allegations
UK: Alternative lending deals rocket 43 per
cent amid M&A flurry
[16 March 2015, CITY A.M.] Posted 14 March. By
Jessica Morris: Non-bank lending jumped last
year, with 195 deals in the UK and Europe, up 43
per cent from a year earlier.
Mergers and acquisitions activity drove around 51
per cent of the deals, overtaking refinancing,
when considering deals since the tracker began
at end of 2012.
"With increased confidence in the markets and
wider funding options, we are seeing a pick-up in
mergers and acquisitions activity," Fenton Burgin,
head of UK debt advisory at Deloitte, said.
Alternative finance offers businesses a range of
borrowing options which are outside of a
traditional bank loans. The sector has swelled in
recent years, as banks struggled to lend after the
financial crisis, and alternative sources of finance
sprung up to plug the gap.
The deal tracker also found that 62 per cent of
deals were conducted in mainland Europe in
2014, compared to 38% of deals completed in
the UK.
Your Daily News 16 March 2015
31
―There is increasing activity in France, Germany
and Southern Europe. However, mainland Europe
may not embrace direct lenders with the same
lightning speed as the UK due to the larger share
of family or founder owned businesses, who are
intrinsically more risk averse than private
equity.‖ Floris Hovingh, head of alternative lender
coverage at Deloitte, said.
The UK dominates the alternative finance
industry, recently increasing its market share to
77 per cent, according to an earlier report
published by Cambridge University and Ernst &
Young.
Read more:
http://www.cityam.com/211569/alternative-
finance-deals-jump-43-cent-amid-flurry-mergers-
and-acquisitions
The British invasion of Silicon Valley
[16 March 2015, Telegraph] Posted 14 March. By
Rebecca Burn-Callander, Enterprise Editor:
Ambitious British start-ups find that California is
the only place to build billion-dollar businesses
Going by the billion-dollar success stories of
companies such as Uber, Airbnb and Snapchat,
the streets of Silicon Valley appear to be paved
with gold. With new companies in the Bay area
attracting dizzying valuations – Angel List quotes
the average pre-investment valuation at $4.8m –
it‘s little surprise British start-ups want a slice of
the action.
The British Consulate in Silicon Valley says it
fields enquiries from more than 300 companies a
year looking to make the move, and the number
is expected to rise as initiatives such as the
Silicon Valley Internship Programme give Britons
the opportunity to rub shoulders with start-up
giants.
Is Silicon Valley the place to build a technology
start-up? Should entrepreneurs up sticks and
cross the Atlantic? In this article, the Telegraph
reports on three British entrepreneurs who
moved to California to seek their fortunes.
Read the full article:
http://www.telegraph.co.uk/finance/businessclub
/11471516/The-British-invasion-of-Silicon-
Valley.html
Investment banking more popular career
than at any time in the last three years
[16 March 2015, CITY A.M.] Posted 13 March. By
Guy Bentley: Investment banking has become
one of the most attractive careers for Londoners
and surged to its most popular level in three
years.
Global recruiter Randstad polled over 10,000
workers to discover how attractive different
industries are to the UK's workforce.
In London, investment banking is now the third
most popular sector following electronic
engineering and automotive aerospace. More
than a third of respondents said they thought
investment banking was an attractive career.
The capital was, however, the only region where
investment banking featured in the top three
most attractive sectors. Investment banking
ranks ninth in the UK as whole in terms of career
attractiveness. The automotive industry topped
the list for the fourth year in a row.
Read more:
http://www.cityam.com/211556/investment-
banking-more-popular-any-time-last-three-years
Your Daily News 16 March 2015
32
UK: Businesses face a tax cliff - Chancellor
must give them a Budget break
[16 March 2015, Daily Mail] Posted 14 March. By
Simon Watkins for The Daily Mail: British
businesses are facing a tax cliff next year, but
this week the Chancellor in his Budget has an
opportunity to save them from going over the
edge.
Last year, George Osborne increased the amount
that companies could invest and claim tax relief
to £500,000. The move was targeted to
encourage firms to spend on new equipment and
machinery, investment that should help improve
the productivity of British firms, boost
employment and ensure that the recovery built
on solid foundations.
The step was temporary and the tax relief will
drop back to its previous level of just £25,000 on
January 1, 2016. The CBI, the British Chambers
of Commerce and others who are calling for it to
be extended are quite right and the Chancellor
should use the last Budget of this Parliament to
do just that.
Tax reliefs for business are bound to rankle in
some quarters, but the aim of tax policy should
be to encourage behaviour that benefits the
wider economy – and society – and this measure
fits the bill. The economic recovery of the last
two years is far from perfect.
Productivity in Britain remains moribund and
investment in plant and machinery is one very
straightforward way to help lift that productivity.
Read more:
http://www.thisismoney.co.uk/money/comment/
article-2994900/SIMON-WATKINS-British-
businesses-face-tax-cliff-year-Chanellor-Budget-
break.html
Britain on the brink of a food crisis caused
by a shortage of lorry drivers
[16 March 2015, Daily Mail] Posted 14 March. By
Matt Chorley, Political Editor For Mail Online:
Shoppers could be faced with empty shelves
without urgent action to recruit an army of lorry
drivers, it was warned on Saturday.
Chancellor George Osborne is under pressure to
announce support for training in the haulage
industry in the Budget this week, amid warnings
of shortage of 45,000 drivers.
The crisis in in the industry could mean food
shortages at peak times, including this Easter
and the summer months.
New training rules mean the logistics industry is
thousands of drivers short, according to the UK
Commission for Employment and Skills.
The Freight Transport Association claims more
than 20,000 drivers have quit since September.
It comes after a new Driver Certificate of
Professional Competence was introduced across
the EU, which meant drivers had to complete an
extra 35 hours training, costing some £500.
Read more:
http://www.dailymail.co.uk/news/article-
2994731/Britain-brink-food-crisis-caused-
shortage-lorry-drivers-lead-shelves-summer.html
UK: Half a million more people claiming
housing benefit under coalition
[16 March 2015, The Guardian] Posted 14 March.
By Daniel Boffey, policy editor: Britain‘s failure to
build affordable homes has led to a soaring
housing-benefit bill – with half a million more
people now relying on state handouts to pay their
rent than when the coalition came to power, a
damning new analysis reveals.
The coalition‘s crackdown on welfare has failed to
prevent an explosion in the number of people
relying on state help in recent years, with a total
of five million people now claiming housing
benefits. And with 1.8 million on waiting lists for
social housing, hundreds of thousands more
have, instead of escaping welfare dependency,
fallen into the hands of private landlords charging
increasingly exorbitant rents.
Spending on housing benefit has risen by £650m
a year on average since 2009-10, and at a faster
rate than during Labour‘s 13 years in power, a
new analysis of official Department for Work and
Pensions figures finds. The annual housing
benefit bill is expected to hit £25bn by 2017.
A major cause of the ballooning bill, according to
experts, is the dearth of affordable housing. The
number of affordable homes built in 2013-14 was
the lowest in a decade – despite the UK‘s
population rising by five million over the past 12
Your Daily News 16 March 2015
33
years, a rate of growth unequalled anywhere in
Europe.
As demand has grown, private landlords have
hugely increased rents. Commuter areas outside
London such as Surrey Heath and Elmbridge saw
rises of 14% last year.
The huge increase in housing-benefit claimants
has been despite the new coalition government‘s
announcement of a war on the ―out of control‖
benefit budget in 2010. Proposals included the
benefit cap, introduced in April 2011 for new
claimants, which saw the maximum amount a
claimant could receive limited to £500 a week for
families with children and £350 for individuals.
Read more:
http://www.theguardian.com/society/2015/mar/
14/housing-benefit-coalition-people-claiming
GERMANY: Europe‟s industrial heart moves
east
[16 March 2015, Business-Standard] By Paul
Taylor: BRUSSELS (Reuters) on 15 March: Once
depicted as a "Blue Banana" stretching from
Manchester to Milan, Europe's industrial
heartland has moved eastwards just as its
political centre of gravity has shifted to Germany.
The term was coined in 1989 - the year the Berlin
Wall fell - to describe French geographer Roger
Brunet's work identifying a manufacturing
megacity, visible from space at night as a band of
light curving from England to Italy via the
Netherlands, Belgium, West Germany and
Switzerland. Brunet was worried that France, a
highly centralised economy dominated by Paris,
was falling off the map.
He developed the concept to urge the
government to invest in infrastructure to connect
the Paris-Lyon-Marseille axis to the highly
urbanised European backbone of around 110
million people.
A quarter of a century later, the continent's
industrial geography has morphed. A more fitting
image might be a golden football centred on
southern Germany and reaching into Poland,
Hungary, the Czech Republic, Slovakia, Austria
and Romania.
Read more:
http://www.business-
standard.com/article/reuters/no-more-blue-
banana-europe-s-industrial-heart-moves-east-
115031500354_1.html
UK: A Labour government should create
'procurement minister' role - task force
[16 March 2015, Supply Management] By Will
Green: A future Labour government should
appoint a cabinet minister with responsibility for
purchasing and ensure there is at least one buyer
for every £1 million of central government spend,
according to a report from the party‘s task force
on public procurement.
The report recommends a ―professionally
resourced procurement and contract
management function within the civil service‖
should be established, and that a ―Labour
government‘s approach to public procurement
needs to be strategic rather than ad hoc, taking
full advantage of the freedoms allowed under EU
law to align government contracting with
Labour‘s wider political goals and underlying
values‖.
The report, which was produced by a task force
involving the Labour Finance and Industry Group
and Society of Labour Lawyers, said its
recommendations should be stated as policy
―from day one of a new Labour government‖, but
an independent review should be completed
within three months to ―consult with affected
stakeholders on their detailed implementation‖.
See more at:
http://www.supplymanagement.com/news/2015/
labour-government-should-create-procurement-
minister-role-task-force
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