UK’s FTSE hit by U.S. politics, China slowdown worries
government moved into a second week of shutdown, raising the risk that a compromise will not be reached in time to meet an Oct. 17 deadline for raising the debt ceiling and averting a potential sovereign default. Although most investors still expect the issue to be resolved, nervousness is increasing, with people opting to sell or stay out of the market altogether. “This shutdown is coupled with the debt ceiling issue and, until we see a firm resolution on that, I think we will see a lot of investors wait on the sidelines,” said Jordan Hiscott, trader at Gekko Global Markets. Last week, FTSE volumes were the seventh lowest this year, with activity around 12 percent below the 2013 average. Some of the top year-to-date performers succumbed to profit-taking as implied volatility on the FTSE 100 – a crude barometer of investor risk-aversion – hit three-week highs . Among them were Easyjet, down 2.9 percent to 1,260 pence, and Sports Direct, which fell 4.3 percent to 674.50. Traders said some investors were also liquidating positions in order to free up funds to invest in the privatisation of the Royal Mail postal service, for which order books are due to close on Tuesday. The FTSE 100 index closed down 16.60 points, or 0.3 percent at 6,437.28. Adding to U.S. political woes were resurgent concerns about the strength of the Chinese economy as the World Bank cut its 2013 and 2014 growth forecasts. The news hit miners as well as luxury goods group Burberry , whose chief executive told French newspaper Les Echos that China’s slowdown could be more than just a passing phase for the luxury goods sector. Burberry shares dropped 1.2 percent in heavy volume. “Burberry has a good brand …
Credit: Reuters/Ki Price LONDON | Mon Oct 7, 2013 1:37am BST LONDON (Reuters) – Britain’s banks and other financial firms are at their most optimistic for almost 17 years, according to an industry survey. Some 59 percent of UK financial services firms said they felt more optimistic about their business situation, compared to 6 percent who were less optimistic, according to the latest quarterly CBI/PwC financial services survey, released on Monday. The positive balance of 53 is the highest since December 1996. The survey, covering the three months to early September, also showed a net 24 percent of financial firms increased staff in the period, the biggest rise for six years. A net 14 percent of firms expect to increase staffing again in the current quarter. The CBI/PwC survey is based on the balance of firms reporting an increase and those reporting a decrease. The survey findings indicate about 10,000 jobs were added in the third quarter and another 2,000 will be created this quarter, taking UK financial services jobs to 1.14 million, CBI/PwC estimated. Business volumes fell in the latest quarter, however, mainly in banking. The CBI said 22 percent of financial firms reported a rise in business volumes, but 32 percent said they were down. A big majority of firms expect volumes to increase this quarter, it said. “Banks’ optimism is increasingly buoyant despite seeing a slight seasonal blip in commercial and industrial volumes. Activity and profitability are expected to grow as the economy recovers, and investment in new products and infrastructure is increasing,” said Kevin Burrowes, PwC’s UK financial services leader. Profitability rose for the fourth consecutive quarter, as companies managed to offset the fall in business volumes by increasing their margins, the survey showed.
Google UK Ltd’s Tax Rate Was Actually 83.8% Of Profits So What Were The Guardian Talking About?
Her organs, including her heart , lungs and brain, had been lying at the Forensic Science Laboratory (FSL) in Kharar in Mohali after they were taken out for a Punjab Police postmortem report, which the girl’s family in the UK had rejected. The family learnt about the missing organs upon their return to Birmingham when the coroner in the UK refused to do autopsy in the absence of the girl’s organs. “It would be unfortunate if the embalming report is true after her organs were first held back for six long months. Now the concern about the embalming. The family’s emotions are involved. The second post-mortem cant be done either until we get a confirmation on enmbalming and then only the coroner here in UK would go ahead with the postmortem” said Birmingham councillor Narinder Kaur Kooner, who has been representing the Loyal family in their fight to bring the girl’s organs back to the UK. Embalming is a procedure, usually done in India, to preserve decaying of a dead body, through arterial injection of fluids. It, however, can disrupt the post-mortem examination. The girl’s parents had earlier raised fears their daughter was killed for her organs. In April, during their visit, they had taken her to doctors in Khanna when she began suffering from dehydration for 11 days. Within minutes of her receiving a “mysterious” injection shot by medics at a private clinic , she collapsed on the spot The Punjab police, which had started an investigation into her death, had ruled out a foul play into her death The histopathology report into her death by doctors at the government Rajindra Hospital in Patiala had mentioned infection in her brain, while denying any allegations of misuse of the organs and claimed to have retained Gurkiren’s heart, lungs, brain and part of her liver at the department of pathology.. The repatriation of the girl’s body and organs forced her father Santokh Singh Loyal , working as a postal worker, in Birmingham, to cough up 5600 GB pounds or about Rs 6 lakh, after the medical insurer in the UK had refused to accept the transportation cost of Gurkiren’s body in absence of country’s post-mortem report. “It’s been a long emotional battle for the family. India is so laid-back, not like here.
Six months on, UK Sikh family wait to cremate girl’s organs
Google UK said in its latest accounts that it earned pre-tax profits of 37m on a turnover of 506m. The thing is, Google didnt pay 11.6 million in tax on that 37 million profit. Its paid 30.8 million in tax on that profit of 37 million for a tax rate of 83.8%. The actual accounts I have here. And as you can see the numbers The Guardian are using are simply wrong. The reason why theyre wrong is also simple enough to explain. Google was expensing certain of the stock awards that theyve made to staff. HMRC has, possibly correctly, insisted that these are not in fact tax-deductible expenses. They might well be correct under IFRS but theyre not under the tax rules: therefore previous tax deductions taken have to be reversed and the tax paid. Which is how Google UK Ltd is in fact paying an 83.8% tax rate in a country where the headline tax rate is 24% (for the year under discussion). Even if you ignore that the rate is still over 31%. What appears to have happened is that The Guardian filed its report about the tax bill they day before Google actually filed the accounts with Companies House. It took a couple of days for them to go up on the CH website, which is how we find out that the Guardians mole who told them about the numbers in the accounts was, umm, somewhat less than accurate.