In today's news: There’s a firm mood of optimism around…
FINANCIAL TIMES
BUSINESSES UPBEAT ON ECONOMIC PROSPECTS
By Norma Cohen, Economics Correspondent
Businesses are more upbeat about economic prospects than they were at the end of last year, with some activity measures at their best levels in nearly a year, according to the British Chambers of Commerce. The BCC surveyed some 8,000 of its member businesses and found overall growth patterns remain slower than before the recession, with manufacturers reporting stronger prospects than the services sector. The BCC now forecasts first-quarter growth of 0.3 per cent, in line with the independent Office for Budget Responsibility. But for 2012 as a whole it, predicts 0.6 per cent, below the OBR’s 0.8 per cent forecast, largely due to concerns about rising prices for oil and food.
The Sun headline is a little less prosaic …
THE SUN
DIP DIP HURRAY AS RECESSION FEARS EASED
By Steve Hawkes, Business Editor
Britain got a boost yesterday as manufacturing figures eased fears of a double-dip recession. UK manufacturing grew at its quickest rate for nearly a year in the first quarter of 2012, it emerged. Export orders increased for the third month in four — despite the ongoing eurozone crisis. British firms attracted new business in Africa, South East Asia and Japan. The Markit/CIPS Purchasing Managers' Index for manufacturing rose to 52.1 last month from 51.5 in February — its fastest pace since last May. Any reading above 50 implies growth.
And the Telegraph highlights the positive news from across the pond too…
THE TELEGRAPH
DOW JONES INDUSTRIAL AVERAGE CLOSES AT HIGHEST LEVEL SINCE 2007
By Richard Blackden, US Business Editor
The better-than-expected showing from the country's manufacturers in March helped strengthen expectations that the wider US economy enjoyed a stronger first quarter. On Wall Street, the Dow finished 0.4pc firmer at 13,264.50 for its highest close since December 2007. Meanwhile, the S&P 500 climbed 0.8pc to end at 1,419.04, its best close since May 2008. Investors took encouragement from the latest snapshot of manufacturing delivered by the Institute for Supply Management. Its index of activity climbed to 53.4 in March from 52.4 in February. That beat forecasts for a reading of 53 on an index where anything above 50 signals expansion. Although manufacturing now accounts for little more than 10pc of US gross domestic product, it’s been one of the most consistent parts of the world’s biggest economy since the US emerged from recession in the middle of 2009. The figures from the ISM for March also echo other data – particularly from the country’s jobs market – that suggest growth strengthened in the first three months of the year.
There’s less cheer for Groupon and its 31 year old multi-millionaire founder…
THE GUARDIAN
GROUPON ISSUES PROFIT WARNING AS DISGRUNTLED CUSTOMERS DEMAND REFUNDS
By Rupert Neate
Groupon, the internet company that offers discount vouchers on everything from fish pedicures and cheese-tasting to botox and pole-dancing classes, has been forced to issue a retrospective profit warning after it failed to anticipate how many disgruntled customers would demand a refund.
The four-year-old company, until recently widely described as the next internet darling, admitted its latest results should have included $22.6m (£14.1m) more of quarterly losses than the $42.7m it reported in February.
The company, which was last year told to cut its reported revenue in half after the US Securities and Exchange Commission (SEC) questioned its accounting practices, was forced to warn investors that there is still a "material weakness" in its financial reporting.
And there’s no cheer at all if you’re still trying to fill up your car…
DAILY MAIL
SUPPLIERS CASH IN ON PANIC AS PETROL HITS £1.50... AND HALF OF OUR FORECOURTS ARE RUNNING DRY
By Ray Massey and Tim Shipman
Motorists face paying £1.50 a litre for petrol as shortages continue to hit half the nation’s forecourts. Fuel companies, which have been accused of profiteering with 10p increases, say the supply problems caused by panic-buying will continue until Friday.
Petrol prices are ‘going crazy’, according to Brian Madderson of the Retail Motor Industry federation.‘Motorists are paying a significant premium because the wholesalers know they are on to a good thing. It’s the law of supply and demand,’ he said. ‘The withdrawal of fuel in such a frenzy in the mid part of last week means some members won’t be getting any fuel until later this week.’
Ministers, who are accused of sparking the panic by advising motorists to top up before a possible strike by fuel tanker drivers, are now urging them to save fuel by driving more slowly.There are reports that suppliers are diverting fuel to supermarkets and petrol stations on main routes, leaving rural and independent garages short of fuel.
It’s not very rosy if you’ve got a mortgage with the Co-op either…
THE TIMES
CO-OP RAISES RATES FOR 54,000 BORROWERS
By Leah Milner
The Co-operative Bank is to raise the standard variable rate (SVR) paid by 54,000 existing mortgage customers from 4.24 per cent to 4.74 per cent next month, adding £57 per month to the cost of a typical £200,000 home loan.
The bank has blamed increases in the cost of funding for the rise in its SVR, which is the rate that borrowers pay after a fixed rate or discounted deal comes to an end.
The increase will also affect customers who took out mortgages through the former building society Britannia, which is now part of The Co-operative Bank. It follows similar moves by Halifax, Bank of Ireland and Yorkshire and Clydesdale Banks last month.
The Co-operative Bank said it would allow borrowers with a deposit of 10 per cent or less, who would be unlikely to qualify for a mortgage with another lender, to fix for five years at their existing rate of 4.24 per cent without paying an arrangement fee.
There could be lipsticks at dawn …
FINANCIAL TIMES
AVON REJECTS $10bn OFFER FROM COTY
By Barney Jopson, Helen Thomas and Anjli Raval in New York
Avon Products has rejected an unsolicited $10bn cash offer from Coty, the privately owned US fragrance group, as the door-to-door cosmetics seller seeks to stay independent while searching for a new chief executive and grappling with financial and legal troubles. Coty said it did not intend to make a hostile offer direct to Avon investors, but opinion among analysts was divided on whether its move would attract other suitors and spark a bidding war. Coty is led by Bart Becht, former chief executive of Reckitt Benckiser, who became Coty’s chairman in November. Avon reported poor results in the final quarter of last year and is being investigated by regulators over bribery allegations and its contacts with financial analysts. It is looking for a replacement for Andrea Jung, chief executive, who said in December she was ready to step down after 12 years.
It’s goodbye to Angela Knight…
THE INDEPENDENT
KNIGHT STEPPING DOWN AS FACE OF UK BANKING
By Nick Goodway
The woman who has been the public face of banking in the UK throughout the financial crisis is to step down.
Angela Knight announced yesterday that she was quitting as chief executive of the British Bankers' Association (BBA), five years after taking up the role. That was only months before the first run on a British bank in more than a century, which resulted in the nationalisation of Northern Rock.
Since then Ms Knight, pictured, has defended the banking industry as two of the major players had to be bailed out by taxpayers to the tune of £65bn, bankers' bonuses became the target of politicians' and the public's ire, and the sector was found to have indulged in mis-selling of insurance products which cost it £7bn in compensation payments to victims.
And two stories to strike fear in all our hearts…
THE SUN
EASTER EGGS UP AS COCOA PRICE FALLS
By Daniel Jones
Stores are hiking the price of Easter eggs — even though the cost of producing them has fallen. Since peaking two years ago, cocoa prices have plunged by a third.
But Easter egg favourites are still up in price — with Tesco's own brand 200g Milk Chocolate Egg Hunt Bag doubling in price from £1 to £2. Research by grocery shopping site mySupermarket.co.uk shows Nestle's Retro Smarties Mug and Egg cost £4.99 two years ago at Tesco but is now £7 at the same store — 40 per cent up.
Lindt's 500g Gold Bunny at £15 in Tesco and Asda is 50 per cent dearer than two years ago when it was £9.99.
But manufacturers say the supermarkets are to blame and the price they sell to them has only gone up by a small amount. On the Smarties egg, Nestlé said the recommended price this year was £5.59 — £1.41 cheaper than the Tesco price.
THE TELEGRAPH
VANILLA CRISIS COULD FORCE UP PRICE OF ICE CREAM
By Murray Wardrop
Analysts fear the price of the spice is on the brink of explosion amid concerns of a shortage of the commodity.
The combination of poor harvests in two of the world’s main producing countries and opportunists stockpiling supplies is already causing a surge on commodity markets.
Wholesale prices have risen by around 20 per cent in just two months – an increase which will hit thousands of food and drink manufactures, including ice cream makers.
However, experts believe the price is likely to climb further still, which could force firms to hand on the rise to consumers.
It is estimated that the increase could drive up the price of ice cream by up to 10 per cent.
But at least we know two people who can still afford to buy them…
THE SCOTSMAN
STANDARD LIFE’S TOP TWO DIRECTORS BREAK £2m SALARY BARRIER
By Martin Flanagan
Two of Standard Life’s top directors burst through the £2 million pay barrier last year, the Edinburgh-based life assurer’s annual report revealed on Monday.
Group chief executive David Nish’s total remuneration rose 3.6 per cent to £2.04m in 2011 from £1.97m the previous year, including a basic salary of £765,000 and an annual bonus of £1.04m. He also had a pension allowance of £222,000. Under the long term incentive plan he also gets 234,741 shares vesting on 20 April valued at last night’s price at £542,251. Keith Skeoch, boss of Standard Life’s asset management arm, saw his remuneration lift a shade under 7 per cent to £2m from £1 .87m in 2010. That included a basic salary of £425,000 and a bonus of £1.46m. The LTIP pays him £578,400.
