Arch Bank Critic Bowles Set For StanChart Job

By Mark Kleinman, City Editor

One of the British members of the European parliament who led a clampdown on bankers' bonuses is in talks to take a job with Standard Chartered, the emerging markets-focused lender.

Sky News has learned that Sharon Bowles, who stepped down as a Liberal Democrat MEP ahead of last spring's European elections, has been approached about a role that would involve acting as an adviser to the bank on regulatory affairs.

Ms Bowles has yet to agree a deal with Standard Chartered and an announcement is not thought of be imminent.

If she does agree the terms of a role with the bank, however, it may surprise many of her former colleagues in Brussels, upon whom she made a substantial impression as a staunch critic of banking practices and pay.

As chair of the EU's influential economic and monetary affairs committee, Ms Bowles helped to spearhead the introduction of rules limiting bank bonuses to 100% of an employee's salary.

"The threat of bankers relocating to avoid the cap has been grossly exaggerated," she wrote in a newspaper article last year in which she insisted that she was an advocate of London as a financial centre.

"There are many good reasons for banks to remain in London, including the city's historical clout and financial expertise, access to the EU and capital markets, a strong legal framework, implicit taxpayer guarantees and the GMT time zone.

We should also not discount the excellent lifestyle and cultural attractions offered by what remains a world class city. In any case, if the effect of bonus regulation is to force the introduction of new blood and new talent, instead of the cosy clique that fostered the Libor-rigging merry-go-round, then perhaps that is no bad thing."

The new bonus law, which came into effect this year, has been bitterly opposed in the City, with lenders - including Standard Chartered - arguing that it creates a competitive disadvantage for banks operating in London.

Chancellor George Osborne is mounting a legal challenge to the cap, while efforts by banks to circumvent the rules by paying special allowances are themselves under scrutiny in Brussels.

Ms Bowles' arrival at Standard Chartered would - if confirmed - come at a difficult time for the bank, a former darling among City investors.

Earlier this week, Peter Sands, its chief executive, announced disappointing half-year results but brushed off speculation that the bank's board was planning for his departure.

Standard Chartered also conceded that it faced another fine from US regulators for inadequate monitoring of potentially risky transactions, which prompted further embarrassment when the head of its Asian operations accused regulators of treating banks like criminals.

Standard Chartered quickly moved to distance itself from the remark by Jaspal Bindra for fear of antagonising US regulators.

The bank declined to comment on its talks with Ms Bowles.

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Ex-Apple Worker Named Sam Sung Ebays Name Card

An Apple employee named after the company's arch enemy is selling his business card on eBay.

Sam Sung, from Vancouver, Canada, worked at the city's Apple store and has put his staff lanyard and business card up for grabs.

They come complete with his distinctive blue employee sweater – and all three are framed behind glass.

The money raised will go to a charity called Children's Wish.

On the eBay listing, Mr Sung wrote: "I came across one of my old business cards the other day when it fell out of a book.

A close-up view of the card Pic: Sam Sung/Ebay

"So, with a view to raising money for a very deserving charity, I'm auctioning the only Apple Sam Sung business card I have left and I'm going to donate all of the proceeds minus eBay fees to Children's Wish.

"I had a great time working for Apple and would recommend it to anyone.

"I hope my old business card will go to another fellow Apple enthusiast with a sense of humour and the desire to help raise some money for a good cause."

Bidding has hit $80,000 (£47,000) – but that is likely to be a fake offer.

Mr Sung says he is working with eBay to establish which of the bids made so far are genuine.

Apple has been locked in a lengthy battle with fellow smartphone maker Samsung, but recently agreed to end all legal action over patents outside the United States.

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British GSK Investigator Gets Jail In China

A British man who had carried out a probe for drugs firm GlaxoSmithKline in China has been jailed for breaking privacy laws.

Peter Humphrey, 58, was on trial for breaches which involved illegally obtaining Chinese citizens' personal information and selling it to companies including London-based GSK.

Humphrey was jailed for two years and six months, while his naturalised American wife Yu Yingzeng, 60, received a two-year prison sentence.

According to a statement read out by a court official at a press conference, Humphrey will be deported, but it gave no further details on that aspect of the judgment, including on whether Yu would also be deported.

Humphrey in court during his trial

They are allowed to appeal against their sentences, the court said.

A message posted on a state social media account said Humphrey had accepted the charges against him on the first day of his hearing in Shanghai.

Speaking outside the court, the couple's son Harvey said: "My parents' trial lasted 12 hours - they were allowed to speak and to present a defence.

"I'm very sad about the court's verdict but I hope that the authorities will take into account their poor health conditions."

The pair ran risk consultancy ChinaWhys and were arrested shortly after completing an internal investigation for GSK - which is now the focus of a separate corruption investigation.

In January last year an email was sent to GSK's UK-based chief executive containing a sex tape of GSK China's general manager Mark Reilly and his Chinese girlfriend.

The email accused Mr Reilly of being behind corruption in the company's China operation.

ChinaWhys was tasked with finding out who had sent the email and how the video had been filmed.

GSK suspected a former senior staff member with political connections, but who has denied being the whistleblower.

The trial was closely watched for any comments on GSK, but there was no mention of the British drugmaker.

Earlier, Harvey Humphrey accused the multinational of "misleading" his parents and claimed the company had "gone into full survival mode", which he said included denying any connection with his parents.

He told Sky News: "This whole thing stems from GSK's misleading of my parents and I think in that process they trod on several powerful toes, if I may put it that way."

A Foreign Office spokeswoman said: "We note the verdict in this case.

"We have continually called for a transparent process leading to a swift and fair conclusion to this case, in accordance with Chinese law.

"It would be wrong to comment further while the case remains open to appeal."

A spokesman for GSK said the pharmaceutical company would not comment on the case.

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Royal Mail To Change Post Box Collection Time

The collection time at almost 50,000 Royal Mail post boxes will be brought forward to earlier in the day under new plans.

Staff delivering letters are expected to make the pick-ups as part of their rounds.

Some 47,500 post boxes will see collection times as early as 9am, instead of the usual 5pm.

Royal Mail, which was privatised last year, said it will also add around 2,000 new boxes in under-serviced areas such as rural Scotland and Northern Ireland.

New boxes would also be fitted in areas of high pedestrian traffic, including train stations and shopping precincts.

It currently has some 115,000 post boxes around the nation.

The company said where new collection times are imposed, generally between 9am and 3pm, there will still be a late posting box within half a mile.

About 12,000 rural post boxes are already emptied during delivery rounds but the new plan would primarily affect urban and suburban locations.

The new system is designed to improve efficiency, amid a decade-long decline in stamped mail use.

The company said: "Rather than decommission uneconomic post boxes, while staying within the regulated density requirement, Royal Mail will ensure their viability by improving the efficiency of its collections arrangements."

It said consultations have been undertaken with consumer groups and regulator Ofcom has been informed.

An Ofcom spokeswoman said: "Ofcom recognises the need for Royal Mail to become more efficient so it can sustain a universal postal service that consumers value highly.

"While the changes won't affect the majority of postal users, Ofcom expects Royal Mail to communicate clearly with any affected consumers and ensure that their reasonable needs continue to be met."

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Malaysia Airlines Launches 'Complete Overhaul'

Malaysian officials have released a share buy-back plan to take Malaysia Airlines off the stock market, as part of a "complete overhaul" of the embattled carrier.

State investment firm Khazanah Nasional, which owns 69% of the airline, wants to purchase the majority shareholding from investors ahead of a delisting.

The move comes as the company continues to reel from the dual effect of losing two aircraft this year - the disappearance of MH370 and the crash of MH17 in eastern Ukraine.

The airline struggled with profitability for several years ahead of this year's disasters.

Khazanah Nasional has proposed buying the outstanding stock at 27 sen (£0.0475) a share, 29% higher than the three-month average.

The complete takeover would cost 1.38bn ringgit (£255m). Shares were suspended in Kuala Lumpur ahead of the announcement.

"The proposed restructuring will critically require all parties to work closely together to undertake what will be a complete overhaul of the national carrier," Khazanah said in a statement.

"Nothing less will be required in order to revive our national airline to be profitable as a commercial entity and to serve its function as a critical national development entity."

Before this year's disasters, the carrier's financial performance was among the worst in the industry, putting a question mark over its future.

Some industry experts recently voiced concern of its ability to survive without a major cash injection from the Malaysian government.

Branding specialists have said Malaysia Airlines must take dramatic steps such as replacing its senior management and a name change.

As a state-owned flag carrier, the airline must fly unprofitable domestic routes.

Its workforce has a strong union presence that has resisted operational changes, amid the rise of low-cost regional rivals.

Khazanah said the plan required approvals from regulators and Malaysia's finance minister.

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Co-op Group Reveals Major Restructure

The struggling Co-operative Group has announced plans for reform of its governance structure.

It said the executive board would be reduced from the current 18 positions to an interim of nine, ahead of a final tally increase to 11 members.

The changes will occur as soon as new rules are registered.

It also said the smaller board would consist of members "qualified to lead an organisation of its size and complexity".

The plan has been formulated to help protect against de-mutualisation of its assets.

The move comes after "disastrous" results for the mutual.

Last year a £1.5bn capital black hole was discovered in its banking arm.

Before a recent sell-off of some divisions

In April, the group revealed a 2013 annual loss of £2.5bn - the worst result in its 150-year history - on the back of a loss of £529m in 2012.

The Co-op also plans to give the group's members appropriate powers to hold the board properly to account for performance and ethics.

It said recruitment of new board members would begin immediately.

The proposals, which follow a period of consultation with the society's members, have been reflected in a proposed new rule book and will be put to a vote at a special general meeting on August 30.

Co-op Group chairwoman Ursula Lidbetter said: "These governance reforms represent the final crucial step in delivering the necessary change to restore the group and return it to health.

The Co-op has agreed a sale of its pharmacy business

"This has been a process built on co-operation, focusing above all on creating a society where every member has a voice in shaping the group's future.

"I would like to thank our members for their engagement in building a governance structure that strengthens the society and enhances member engagement and our unique democracy."

In July, the mutual agreed to sell its pharmacy division to Bestway for £620m, and just days ago a deal was agreed to sell its farming business to the Wellcome Trust for £249m.

The changes are based on suggestions put forward in a review by Lord Myners, who has since resigned as a director - just months after his appointment.

The ex-City minister warned of an existential threat to the mutual unless it overhauled its "dysfunctional" board.

The peer said it was apparent from his first board meeting that members lacked business ability to properly address the complex issues faced by the group saddled with £1.4bn of debt.

Former bank boss Paul Flowers appeared in court in May over drug charges

The trimmed down Co-op now intends to refocus its strategy primarily on its food shops, funeralcare and insurance businesses.

"They appear to have listened to members' views that overhaul of the Board was needed," Institute of Directors corporate governance adviser Oliver Parry said.

"Nonetheless, the overall governance structure at the Co-op remains somewhat confusing.

"Indeed, the Co-op group needs to adapt its governance model to the realities of the modern global economy, just as private sector boards have needed to become more professional over the last decade."

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GSK Close To Luring RBS's Hampton As Chairman

By Mark Kleinman, City Editor

GlaxoSmithKline (GSK), Britain's biggest drugs company, is in advanced talks to recruit Sir Philip Hampton as its next chairman, an appointment that will coincide with his exit from the state-backed Royal Bank of Scotland (RBS).

Sky News has learnt that Sir Philip's appointment could be announced by GSK as soon as next month.

If confirmed, he would be joining the pharmaceuticals giant during a period in which it is embroiled in a wide-ranging bribery scandal in China and possibly other markets.

A person close to the talks said negotiations with Sir Philip were "close to being a done deal".

He is likely to join GSK as a non-executive director or deputy chairman ahead of moving into the chairman's seat later in 2015.

The precise timing of a formal announcement and Sir Philip's arrival have yet to be determined, and either side could still back away from the appointment, the source added.

GSK's next chairman will replace Sir Christopher Gent, who has been in place for almost a decade.

Sir Philip Hampton joined RBS in early 2009

At the drugs company's annual meeting earlier this year, Sir Christopher said it hoped to announce news of his successor during 2014.

"I…expect to stand down at the end of 2015 having succeeded in finding a candidate who of course you will have the opportunity to elect and re-elect in due course," he told GSK's shareholders.

The situation is complicated by RBS's need to recruit a new chairman, who is likely to want to know which party will form a government after next May's general election.

Parachuted in alongside Stephen Hester shortly after the bank's £45.5bn taxpayer rescue in early 2009, Sir Philip will mark his sixth anniversary at RBS next February.

He has said repeatedly that company chairmen should look to serve for between five and seven years, although friends say he will not leave RBS until his successor is in place.

Sky News revealed earlier this year that RBS had begun planning for Sir Philip's departure, but recruiting a heavyweight replacement will be a difficult assignment.

The Government remains years away from a full privatisation of its majority stake in the bank, while RBS faces uncertainty from a UK competition inquiry and regulatory probes covering alleged manipulation in foreign exchange and other markets.

Nonetheless, Sir Philip's in-tray at GSK could prove to be only slightly less challenging than the one with which he has dealt at RBS.

Sir Andrew Witty, the pharmaceutical group's chief executive, was forced to warn on profits last month as the company introduces products which could help offset a decline in sales of Advair, its best-selling asthma medicine.

On Friday, the trial is expected to start in Shanghai of a British businessman and his wife on charges of illegally obtaining private information during the course of work they were carrying out for GSK.

A sex tape involving Mark Reilly, the head of GSK's operations in China, was sent to Sir Andrew and other executives shortly before Beijing launched a probe into the alleged bribery of doctors.

GSK and RBS declined to comment.

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New House Of Lords Appointments Confirmed

The Apprentice star Karren Brady and former Eastenders actor Michael Cashman are among 22 people who are to be appointed to the House of Lords.

Downing Street said the Queen had "graciously" signified "her intention of conferring Peerages of the United Kingdom for Life" on the 22.

It is understood they will receive their appointment in due course.

Also on the list is Sir Michael Farmer, the Conservatives' co-treasurer, who has donated millions of pounds to the party.

His appointment has led to accusations that the party is acting improperly by appointing someone to a position of influence after they have provided large amounts of funding.

Another name on the list, as previously revealed by Sky News, was Ranbir Singh Suri, the founder of Oceanic Jewellers.

Mr Singh ranks among Britain's richest Asians, with a wealth estimated at as much as £40m, and has also donated tens of thousands to the Conservatives.

Sky News had also revealed that West Ham United boss Ms Brady and former Marks and Spencer chief Sir Stuart Rose would be appointed to the upper chamber for the Conservatives.

Ocado Chairman Sir Stuart Rose is to be appointed as a Conservative peer

Both were on the list along with another well-known businesswoman, Chief Executive of TalkTalk Dido Harding.

As also revealed by Sky News, former Facebook executive Joanna Shields is to become Conservative peer.

The Government confirmed the Chair of East London's Tech City and the Digital Advisor to the Prime Minister had made the list.

Labour's best-known peer appointee is Mr Cashman, who has been a Member of the European Parliament for the West Midlands since 1999.

Mr Cashman appeared in Eastenders between 1986 and 198,9 playing Colin Russell, a gay middle class 'yuppie' who became famous for having the UK's first on-screen gay kiss.

Mr Cashman, who was a founder of the pressure group Stonewall, has been praised for his public support for the gay community and the issues it faces.

The Conservatives appointed 12 new peers in total, Labour appointed three and the Democratic Unionist Party appointed William Hay, the former Speaker of the Northern Ireland Assembly, who will sit as a cross bencher.

Most of the six Liberal Democrat names were elected members of councils or former senior figures within the Lib Dem party.

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Russia In EU And US Food And 'Flight Ban'

Russian Prime Minister Dmitry Medvedev has said the country is considering a ban on flights from Europe and the US to Asia.

Speaking at a government meeting he said the "serious measure" of blocking Russian airspace was a response to sanctions that recently stopped Dobrolyot, one of Russia's low-cost airlines, from flying.

It comes as Mr Medvedev confirmed the country has banned transit flights for Ukrainian airlines via its territory.

If Russia goes ahead with the ban on Western airlines, passengers could see ticket prices rise because carriers would be forced to use more fuel to reach destinations using longer flight paths.

The move could hit major European airlines such as British Airways, Lufthansa and Air France, leaving them faced with multibillion-pound losses.

Mr Medvedev said a response to sanctions against Russia was needed

Meanwhile Russia announced further details of its sanctions on food and agricultural products from the West.

Mr Medvedev said an immediate ban has been put on fruit, vegetable, meat, fish, milk and dairy imports from the European Union, United States, Australia, Canada and Norway.

He said: "Until the last moment, we hoped that our foreign colleagues would understand that sanctions lead to a deadlock and no one needs them.

"But they didn't and the situation now requires us to take retaliatory measures."

He said the food ban would last for a year, but could be lifted earlier if the West reacted with a "constructive approach".

Responding to the decision, the European Commission warned it was ready "to take action".

In a statement it said: "This announcement is clearly politically motivated.

"Following full assessment by the Commission of the Russian Federation's measures, we reserve the right to take action as appropriate."

In 2013 the EU's agricultural exports to Russia were worth €11.8bn (£9.4bn), while the US says its food and agricultural exports amounted to $1.3bn (£77m).

On Friday, the Ukranian PM made a statement over his country's planned sanctions against Russia.

He said as part of Ukraine's proposed sanctions against Russia, it could "ban the complete or partial transit of all types of resources", including gas.

Europe currently receives 16% of its gas from Russia, which is transmitted across the Ukraine.

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Canadian Teachers Swoop On Debt Group Lowell

By Mark Kleinman, City Editor

A giant Canadian pension fund has swooped to buy a big stake in Lowell Group, one of Britain's biggest consumer debt collection agencies.

Sky News understands that Teachers Private Capital (TPC), an investment arm of one of Ontario's municipal retirement schemes, signed a deal on Friday to acquire just over 35% of Lowell's shares.

The deal values the debt collection group at around $1.6bn, and returns a large chunk of cash to TDR Capital, the private equity firm which has owned Lowell since 2011.

An announcement is expected on Monday as a consequence of Lowell's publicly-traded debt securities.

Lowell specialises in debt recovery and other credit management services, a sector which has attracted frequent attention from private equity funds.

The company, which pledges to take "a fair, sensitive and ethical approach to debt recovery", competes with rivals such as Cabot Credit Management and Arrow Global, which floated on the stock exchange last October.

The Financial Conduct Authority assumed responsibility for regulating consumer credit providers earlier this year.

TPC, which is also a significant investor in TDR's funds,  is understood to have been attracted to Lowell's growth prospects and its compliance record with UK financial regulators.

The deal adds Lowell to a portfolio of UK investments made by Ontario's vast teachers' pension fund, which include Camelot, the National Lottery operator; Burton's Biscuits, the owner of Jammie Dodgers and Wagon Wheels; and Busy Bees, the nurseries group.

TPC's investment comes ahead of a potential stock market flotation of Lowell, which could take place as soon as next year.

TDR and TPC declined to comment.

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