Iraq Crisis Threatens Opec Oil Supply Growth

Future growth for the world's leading oil cartel will be severely harmed if militants reach the south of Iraq, a leading energy body has warned.

The International Energy Agency (IEA) said prices could continue to climb if ISIS insurgents took the capital Baghdad or continued towards crucial oil fields and Gulf export facilities near Basra.

The warning was issued to the Organisation of the Petroleum Exporting Countries (Opec) by the Paris-based policy group.

"Concerning as the latest events in Iraq may be, they might not for now, if the conflict does not spread further, put additional Iraqi oil supplies immediately at risk," the IEA said.

But it calculated that "roughly 60% of the growth in Opec crude production capacity for the rest of this decade will come from Iraq."

Opec is a 12-member cartel responsible for a third of global oil production, with Iraq its second-largest producer.

Barrel price for oil is currently at a nine-month high, with oil futures priced at a three-year high.

The IEA is the energy monitoring and policy arm of the Organisation for Economic Co-operation and Development (OECD), described by the Economist magazine as "the rich-country club".

Last month the IEA warned of a supply struggle from Opec - with a number of its member states faced supply disruptions.

Libya has seen its output reduced to below 200,000 barrels per day amid factional fighting, and Iranian output continues to be hampered by western sanctions.

Meanwhile, Nigeria has been affected by the shale revolution in the United States and Venezuela has suffered significant production limitations.

Key producer Saudi Arabia has said it could make up near-term shortfalls to keep the target of a combined 30 million barrels a day heading to world markets.

But the IEA said OPEC must boost output by 800,000 barrels daily in the second half of this year to meet demand.

The energy agency said that Iraq's relatively small output from the north of the country has been off the market since March due to violence, while output from the south has been on the rise and production has hit a 30-year high.

:: Opec was founded in Baghdad in 1960, to help exporting countries influence prices and break the stranglehold held by the so-called seven sisters, key western oil companies that dominated the global industry.

00.02 | 0 komentar | Read More

Dental Giant Smiles On Banks For £1bn Float

By Mark Kleinman, City Editor

Britain's biggest privately-owned dental chain has lined up investment bankers to spearhead a stock market listing that could value it at more than £1bn.

Sky News has learnt that Integrated Dental Holdings' (IDH) main shareholder has hired Credit Suisse and Goldman Sachs to work on the flotation, which if successful would catapult the business into London's FTSE 250 index.

IDH, which has a network of 570 dental practices in England, Scotland and Wales, is majority-owned by The Carlyle Group, one of the world's biggest private equity investors.

IDH calls itself the biggest dental corporate organisation in Europe, focusing primarily on NHS patients but with private and specialist practices as an increasingly important revenue stream.

In a statement posted on the company's website, it said: "IDH and its major shareholders are exploring the possibility of a listing on the London Stock Exchange. At this stage no decisions have been made [and] all options remain open to the group."

According to bondholder filings for the final three months of 2013, earnings before interest, tax, depreciation and amortisation for the financial year to date rose by 21% to £48.7m.

IDH was founded in 1996 by Luke Johnson, the entrepreneur who previously owned Pizza Express and who is floating Patisserie Valerie on the London Stock Exchange.

Mr Johnson and his partners sold IDH in 2006 for just over £100m, with the private equity arm of Merrill Lynch among its subsequent owners.

The company was created in its current form from the amalgamation of IDH and Associated Dental Practices in 2011, and now treats millions of patients each year.

IDH's biggest rival, Oasis Dental Care, is also owned by private equity funds having been bought by Bridgepoint last year in a deal worth £185m.

Carlyle is examining flotations for a number of its investments, including the RAC breakdown recovery service, which Goldman Sachs is also working on.

00.02 | 0 komentar | Read More

Interest Rate Rise 'Signals End Of Crisis'

George Osborne Acts To Curb Housing Bubble

Updated: 1:25am UK, Friday 13 June 2014

By Jon Craig, Chief Political Correspondent

Barely a few minutes into his Mansion House speech, George Osborne said: "So while I know this is my fifth speech to you as Chancellor, I hope it is not my last."

I'll bet he does!

But whether he's back this time next year addressing the bankers and City money men and women, or listening to Ed Balls make it, could depend on the success or not of the measures he announced in this year's speech.

He wouldn't admit it. But the Chancellor now appears to accept that the threat of a "housing bubble" in London and some other parts of the country is a potential problem.

He doesn't want interest rates to rise before next year's general election to curb house price inflation. We know that from no lesser source than Her Majesty the Queen last week.

"To strengthen the economy and provide stability and security, my ministers will continue to reduce the country's deficit, helping to ensure that mortgage and interest rates remain low," she said right at the outset of her speech at the State Opening of Parliament.

So instead, the Chancellor plans to give the Bank of England powers to curb big mortgages being offered to people who can't afford the repayments.

Excuse me, though. Aren't many of the big lenders doing that already? Some lenders are limiting loans to four times salary and scrapping loans of more than £500,000. There has been a clampdown on interest-only mortgages too.

But the price of an average house rose by £223 a day last month and by 16% over the past year. It's not as if Mr Osborne hasn't been warned.

For months, the Liberal Democrat Business Secretary Vince Cable has been warning about a "housing bubble". But until now he has been slapped down by the Tory Chancellor.

Not any more. Mr Osborne told his City audience: "If London prices were to continue growing at these rates that would be too fast for comfort."

In other words, the Chancellor now recognises what critics of his Help to Buy scheme have been telling him: there is a problem in the capital, particularly, and elsewhere.

It doesn't take a genius to work out why: demand massively outstrips supply. So Mr Osborne is proposing to relax planning laws on so-called "brownfield sites", while protecting the green belt in those Tory constituencies in the shires.

Relaxing planning laws? How many times have we heard that before from senior Conservative politicians? The "Nimbys" in the leafier parts of Britain have other ideas.

To tackle the supply and demand problem in the capital, the Chancellor is promising "new housing zones across London backed by new infrastructure". Thousands of new homes for London families is the promise. We've heard a lot about that before, too.

No wonder Ed Balls MP, Labour's Shadow Chancellor, said: "George Osborne is still failing to tackle the root cause of the housing crisis which is that we are not building enough homes to match rising demand.

"And the danger of the Chancellor's failure to act on housing supply is that we see a premature rise in interest rates to rein in the housing market which ends up hitting millions of families and businesses."

A rise in interest rates before the election? No chance, Mr Balls.

But despite Mr Osborne's attempts to cool the housing market to avoid a rate rise before voters go to the polls in May 2015, I predict the so-called "housing bubble" will lead to interest rates going up after the election.

Whoever it is delivering the Mansion House speech this time next year.

00.02 | 0 komentar | Read More

Carney Upstages Chancellor At Mansion House

George Osborne Acts To Curb Housing Bubble

Updated: 1:25am UK, Friday 13 June 2014

By Jon Craig, Chief Political Correspondent

Barely a few minutes into his Mansion House speech, George Osborne said: "So while I know this is my fifth speech to you as Chancellor, I hope it is not my last."

I'll bet he does!

But whether he's back this time next year addressing the bankers and City money men and women, or listening to Ed Balls make it, could depend on the success or not of the measures he announced in this year's speech.

He wouldn't admit it. But the Chancellor now appears to accept that the threat of a "housing bubble" in London and some other parts of the country is a potential problem.

He doesn't want interest rates to rise before next year's general election to curb house price inflation. We know that from no lesser source than Her Majesty the Queen last week.

"To strengthen the economy and provide stability and security, my ministers will continue to reduce the country's deficit, helping to ensure that mortgage and interest rates remain low," she said right at the outset of her speech at the State Opening of Parliament.

So instead, the Chancellor plans to give the Bank of England powers to curb big mortgages being offered to people who can't afford the repayments.

Excuse me, though. Aren't many of the big lenders doing that already? Some lenders are limiting loans to four times salary and scrapping loans of more than £500,000. There has been a clampdown on interest-only mortgages too.

But the price of an average house rose by £223 a day last month and by 16% over the past year. It's not as if Mr Osborne hasn't been warned.

For months, the Liberal Democrat Business Secretary Vince Cable has been warning about a "housing bubble". But until now he has been slapped down by the Tory Chancellor.

Not any more. Mr Osborne told his City audience: "If London prices were to continue growing at these rates that would be too fast for comfort."

In other words, the Chancellor now recognises what critics of his Help to Buy scheme have been telling him: there is a problem in the capital, particularly, and elsewhere.

It doesn't take a genius to work out why: demand massively outstrips supply. So Mr Osborne is proposing to relax planning laws on so-called "brownfield sites", while protecting the green belt in those Tory constituencies in the shires.

Relaxing planning laws? How many times have we heard that before from senior Conservative politicians? The "Nimbys" in the leafier parts of Britain have other ideas.

To tackle the supply and demand problem in the capital, the Chancellor is promising "new housing zones across London backed by new infrastructure". Thousands of new homes for London families is the promise. We've heard a lot about that before, too.

No wonder Ed Balls MP, Labour's Shadow Chancellor, said: "George Osborne is still failing to tackle the root cause of the housing crisis which is that we are not building enough homes to match rising demand.

"And the danger of the Chancellor's failure to act on housing supply is that we see a premature rise in interest rates to rein in the housing market which ends up hitting millions of families and businesses."

A rise in interest rates before the election? No chance, Mr Balls.

But despite Mr Osborne's attempts to cool the housing market to avoid a rate rise before voters go to the polls in May 2015, I predict the so-called "housing bubble" will lead to interest rates going up after the election.

Whoever it is delivering the Mansion House speech this time next year.

00.02 | 0 komentar | Read More

Google In Talks To Take Virgin Galactic Stake

By Mark Kleinman, City Editor

Google is in talks with Virgin Galactic about a deal that will hand it crucial access to satellite-launch technology and an equity stake in Sir Richard Branson's $2bn (£1.2bn) space tourism venture.

Sky News can exclusively reveal that the discussions with Virgin Galactic are part of Google's ambitious project to put hundreds of satellites in low-Earth orbit in an attempt to extend internet access to billions of people.

Negotiations between the two companies have been taking place for months, and are said to be at an advanced stage.

The talks are likely to lead to a deal with two main elements, according to insiders.

Sir Richard Branson plans to be on the first commercial flight

The first will see Google inject hundreds of millions of dollars into a joint venture, with Virgin Galactic folding in the technology it has developed as part of its efforts to build the world's first space tourism business.

The second component will involve Google spending roughly $30m (£17.8m) in return for a small stake in the Virgin Galactic holding company.

The terms of the alliance have not yet been finalised and could yet be altered before a deal is struck.

A person close to Google said, though, that its £17.8m investment could value Virgin Galactic at as much as £1.2bn, equating to a shareholding of approximately 1.5%.

The deal could be reputationally valuable for Virgin Galactic, which has had to defend itself against frequent suggestions that problems with its development will curb its viability.

The company has insisted that flights should begin this year, although there is no firm date, while rivals such as Elon Musk, the billionaire businessman, are developing competing projects.

Celebrities including Ashton Kutcher, Katy Perry and Sir Richard himself are said to have paid $200,000 (£119,000) to secure seats on the venture's inaugural flights.

News of the talks with Virgin Galactic comes a day after Google said it was buying Skybox Imaging, a start-up satellite venture, for $500m (£297m).

SpaceShipTwo's first rocket-powered test flight took place last year

Skybox has developed small, comparatively cheap satellites which are capable of taking high-quality photographs and videos of the Earth.

Google is engaged in a race with internet rivals to extend web access to the billions of people who do not currently have it, by using balloons, drones and satellites.

Doing so contains powerful commercial incentives for Google, which would see usage of its services and advertising revenues benefit from a significantly-enlarged customer base.

Google has bought solar-powered drone maker Titan Aerospace

Its other acquisitions aimed at broadening internet access include Titan Aerospace, which it bought in April with the aim of building jet-sized drones which would utilise solar power to fly uninterrupted for years. The drones could be used to provide online access in remote parts of the world.

Virgin Galactic is about one third-owned by Aabar Investments, an Abu Dhabi-based group, which paid about $280m (£166m) for a 32% stake in the venture's holding company.

That deal valued Virgin Galactic at approximately $900m (£535m), meaning that the transaction with Google, if it is completed, would mean that the company's equity value had more than doubled since 2009.

Sir Richard and Larry Page, Google's co-founder, are close friends, and have registered the name Virgle for use on potential future business collaborations.

Google and Virgin Galactic both declined to comment.

00.02 | 0 komentar | Read More

Seized Silk Road Bitcoins Auctioned By US Govt

The US government is to auction 30,000 bitcoins valued at $18m (£10.6m) which were seized during the FBI raid on the Silk Road black market website.

The online hub was notorious for transactions involving illegal drugs and criminal activities, and was shut down last October.

The bitcoins were contained on Silk Road servers, and will be auctioned over a 12-hour period on June 27.

Nine blocks of 3,000 bitcoins and one block of 2,657 bitcoins will be up for grabs.

Alleged Silk Road owner Ross William Ulbricht

The US Marshals Service said it will only accept all-cash offers for the bitcoins.

Those wishing to take part in the auction must transfer a $200,000 (£117,000) deposit to the US government in advance, and provide a copy of government-issued photo identification.

Bitcoin is a virtual currency which is not backed by any government or central bank.

Each bitcoin is 'mined' by users who use powerful computers to carry out complex mathematical equations.

Silk Road was shut down by the FBI in October last year

Bitcoins are currently worth $602.24 (£354.59) each. They fell below the $600 (£353.27) mark at one point following the announcement of the government auction, but soon recovered.

Ross William Ulbricht, who is alleged to be the owner of the Silk Road, has been charged by the US with drug trafficking, computer hacking and money laundering.

He denies all of the charges.

Bidders have been asked to certify that they are not acting on behalf of anyone representing Silk Road or Ulbricht.

Bitcoins contained on the computer hardware belonging to Ulbricht are not part of the auction.

00.02 | 0 komentar | Read More

PM Bids To Block Juncker For Top Brussels job

The Prime Minister has stressed the need for an "honest and trusted broker" for the top job in Brussels as he ramped up his campaign to stop Luxembourg's former prime minister Jean-Claude Juncker becoming president of the European Commission.

In a direct appeal to Europeans, David Cameron said the candidate needed to be a reformer "able to re-engage" with voters, and who accepted the EU's needs "may best be served by action at the national level".

In a newspaper article published across Europe, Mr Cameron also hit out at the "backroom deal" that has seen the arch-federalist positioned as the front-runner for the post.

David Cameron and Jean-Claude Juncker at a budget meeting in 2012

In the recent European elections, Mr Cameron pointed out that the former Luxembourg premier "did not stand anywhere and was not elected by anyone", and most voters had been completely unaware that he was in the running for the powerful role when they went to the polls.

In an article circulated among the European press, Mr Cameron wrote: "We must focus on finding the best candidate for Commission President.

"Someone who can deliver reform, driving growth and creating jobs, and accepting that Europe's needs may best be served by action at the national level.

"An honest and trusted broker able to re-engage Europe's voters."

Mr Cameron's stance puts him at odds with Germany's Angela Merkel

The Prime Minister is strongly opposed to Mr Juncker's attempt to succeed Jose Manuel Barroso, who steps down in the autumn after 10 years in the role.

His opposition is backed by Deputy Prime Minister Nick Clegg and Labour leader Ed Miliband, but puts him at odds with German Chancellor Angela Merkel, who has publicy backed Mr Juncker's candidacy.

Mr Juncker has been put forward by the centre-right European People's Party - the largest grouping in the European Parliament following last month's elections - but is regarded in London as an opponent of reform, whose appointment would make UK departure from the EU more likely.

Mr Cameron has made it clear that he would resist efforts by the European Parliament to claim the right to appoint the new commission president, which he said should be a decision for the elected heads of government of the 28 EU states.

00.02 | 0 komentar | Read More

'Exceptional' 122ct Blue Diamond Discovered

A mining firm has revealed the discovery of an "exceptional" 122.52-carat blue diamond.

Petra Diamonds said the discovery was made at the Cullinan mine in South Africa.

The diamond has not yet been valued

The London-based firm saw its share price rise more than 6% in early Friday trades as a result of the announcement.

It said in a statement: "The rarity of a blue diamond of this magnitude sets it apart as a truly significant find.

"The stone will require further analysis in order to assess its potential value and upon completion of this process, Petra will be in a position to evaluate its optimal route to market.

"The diamond will, therefore, not be sold before the end of the company's current financial year (June 30)."

The Cullinan mine is known as the world's most important source of blue diamonds and was purchased by Petra in 2008.

It is located at the foothills of the Magaliesberg mountain range, 24 miles north-east of the capital Pretoria.

The mine gained international fame in 1905 after the discovery of the largest rough diamond ever discovered, weighing 3,106 carats.

It was cut into two dressed diamonds for the British monarchy.

The First Star of Africa, weighing 530 carats, was mounted atop the Sovereign's Sceptre.

It is the largest flawless cut diamond in the world.

The Cullinan mine is famous for blue diamonds

The Second Star of Africa, weighing 317 carats, is centrally located in the Imperial State Crown.

There are no official statistics on the recovery and dressing of rare blue diamonds.

The blue hue is because of small traces of boron trapped in the carbon structure during formation.

00.02 | 0 komentar | Read More

Carney Boosts Lloyds Plan For £1.3bn TSB Float

By Mark Kleinman, City Editor

The state-backed Lloyds Banking Group is this weekend considering increasing the price at which it sells shares in TSB, its high street subsidiary, amid strong demand from investors.

Sky News has learnt that Lloyds could announce early next week that it is revising the 220p-290p range for the flotation of TSB by raising the bottom end to approximately 240p.

Investment banking sources said Lloyds would make a decision after consulting its advisers during the next couple of days.

One insider said that the Mansion House address by Mark Carney, Governor of the Bank of England, had bolstered sentiment among City investors for TSB shares, with further interest registered on Friday.

Mr Carney said it was conceivable that interest rates would rise from their historic low of 0.5% sooner than markets expected, implying that a rate hike could come before the end of this year.

That would potentially benefit TSB, the profitability of which is geared to interest rates to a greater degree than most of its high street rivals.

One insider said the City's assumptions about TSB's profitability, outlined in its prospectus last week, might need to be revised given the boost to margins on mortgages and current accounts which could result from an early rate rise.

At the 255p mid-point of the 220p-290p range announced last Monday, TSB would be valued at £1.275bn, roughly 15% below its book value of just over £1.5bn.

The expectation that shares in the UK's seventh-largest lender will be sold for less than its book value disappointed some City analysts.

Yet even at that level, Lloyds would still attract a price for TSB that is significantly higher than the £750m which the Co-operative Group planned to pay for the 631-branch network before a deal collapsed last year.

The prospectus revealed that TSB made an after-tax profit of £172m last year on revenue of £798m, although the earnings figure included a £105m tax gain.

Banking sources also said that approximately 60,000 retail investors had applied for shares, lured by the offer of free bonus stock.

That figure could increase significantly by Tuesday, when the window for retail applications closes.

Lloyds is selling between 25% and 27.5% of TSB in the flotation.

It is required to offload the remainder by the end of next year under a state aid deal agreed with Brussels following the bank's taxpayer bail-out in 2008.

Lloyds, which is being advised by Citi, JP Morgan, UBS, Investec, Royal Bank of Canada and Rothschild, declined to comment.

00.02 | 0 komentar | Read More

Retailers Set Goals On World Cup Success

By Emma Birchley, Sky News Correspondent

England fans are not the only ones hoping the players can find the back of the net as their World Cup campaign finally gets under way.

Retailers too are banking on success.

The Centre for Retail Research has estimated that every time England scores - shops, restaurants and pubs will benefit to the tune of almost £200m.

At Sainsbury's, designers started working on the merchandise more than a year ago.

Corporate affairs director Alex Cole said: "The longer England stays in the tournament, the more excuse we have got for parties as a nation.

"But also the sun is really important so the sunnier it is the more likely we are to say, yes, we will have a BBQ and get some people round to watch the match with us."

The further in the competition England progress, the better for retailers

But it is not just sales of sausages and beer that soar. TVs are selling well. So too are souvenirs and sportswear.

Takeaway pizzas are expected to sell in their millions but many people will head straight from work to bars or restaurants to watch the matches.

Phil Collinson, manager at Rileys Sports Bar in central London, is expecting 30,000 fans to come through the doors during the tournament.

"It's our responsibility to make sure everyone from all the different nations has the chance to see the matches," he said. "It will be an incredible atmosphere and great to be part of."

Reaching the final 16 is expected to see the takings by retailers, bars and restaurants rise by more than £1.3bn while a place in the final would be worth almost £2.6bn to the economy.

Michael Jarman says success equals spending

With England taking on Italy in their first game, it can mean split loyalties if you are running an Italian business in the heart of London.

But while there is no surprise who Lorenzo Mariotti, manager of the restaurant Little Italy in Soho, wants to win, he knows the importance of the home nation staying in the competition.

"We really need both teams to play well and go (as) far as they can and hopefully meet in the semi-final or final," he said. "It will be the most great game of the World Cup."

Former footballer and city trader Michael Jarman says success in the tournament will see football fans out spending.

"You find the general morale and momentum of the UK consumer is going to be more upbeat, a bit more optimistic," he said.

"You then have the new football season starting. Naturally there will be a better feel-good factor."

00.02 | 0 komentar | Read More