Klaas

Found on the internet:

Labour has averted a disastrous resignation by a ministerial aide in protest over plans to abolish the 10p lower rate of income tax. Angela Smith, a parliamentary private secretary (PPS) at the Treasury, had told colleagues she would stand down rather than be forced to support the measure when it is voted on in the next two weeks. But after frantic talks with Ministers and whips, the MP for Sheffield Hillsborough decided not to quit.


A Treasury aide said: \"Angela Smith had concerns about the impact of the tax changes. She raised those concerns with senior ministers, but that is the end of the matter. She is not resigning from her role as Parliamentary Private Secretary.\"

Her change of heart will intensify speculation that Gordon Brown is preparing concessions to the critics of the tax plan. More than 70 Labour MPs have come out in opposition, threatening to inflict a humiliating defeat on the Government on the issue. The Labour revolt may force him to bow to demands to compensate the 5.3 million people on low incomes who will lose out. Max Telfer, the chairman of the Labour Party in Ms Smith\'s Sheffield Hillsborough constituency, confirmed she had told him of her intention to quit. He said: \"The decision on the 10p tax band affects a lot of people in our constituency and she feels this is a matter of principle. In the area that Angela has her surgeries and does her work it\'s an issue.\"

He warned that anger could lead to Labour losing power to the Liberal Democrats in Sheffield in the local elections. \"The Prime Minister would be advised to rescind his decision,\" he said. Janet Anderson, a former Labour minister, also denounced the planned tax rise. She told BBC Radio 4\'s PM programme: \"It has taken the Government a long time to wake up. Frankly I didn\'t come into the Labour Party – I don\'t think anyone came into the Labour Party – to penalise people on the lowest incomes, very often doing the most menial jobs.

By Nigel Morris, Home Affairs Correspondent and Andrew Grice
Friday, 18 April 2008

info@startyournewbusiness.co.uk

UBS admits errors to shareholders

UBS has suffered more than any other bank from the US sub-prime disaster

Swiss bank UBS has admitted that a lack of risk control and ambitious plans to grow revenue led to its huge losses when the global credit crunch struck.

The admissions come in a 50-page report to shareholders before its annual general meeting later this week.

UBS has so far made write-downs of $37bn (£18.5bn), dwarfing those made by any other leading bank.

The losses cost chief executive Marcel Ospel his job and the firm faces growing calls to be broken up.

UBS said the problems began in its hedge fund unit, Dillon Read Capital Management, and then spread to its fixed-income division.

UBS admitted it was late to take notice when its rivals began to suffer from investments they had made in risky US mortgages and blamed a lack of adequate management and expertise for this.

The bank will ask its shareholders to approve a 15bn Swiss francs ($14.7bn; £7.4bn) fundraising at its AGM on Wednesday to fortify its balance sheet.

Bron: BBC (21 april 2008)

Henk

World recession \'worst since 70s\'

Singapore\'s cash has bailed out cash-strapped Western banks recently

Singapore\'s investment agency GIC has warned that the world is in danger of sinking into the worst recession in 30 years if swift action is not taken.

As the global supply of money shrinks, Tony Tan, GIC\'s deputy chairman, said the world faced a period of \"extreme uncertainty\".

GIC was formed to manage Singapore\'s vast foreign currency reserves.

It has invested billions of dollars recently buying into troubled western banks, including UBS and Citigroup.

Swiss banking giant UBS and Wall Street heavyweight Citigroup have suffered substantially from failed investments linked to the US housing market which has slumped since last August.

Citigroup posted a second massive loss for its latest three month period last week after writing down by $12bn (£60bn) the value of investments linked to US mortgages and other risky assets.

As a result of the problems, Citigroup said it would cut 9,000 jobs.

The problems afflicting the banks and many of their rivals has resulted in heightened volatility in financial markets, and a freezing up in the supply of money as banks become more risk averse.

\"We could be facing a recession which is longer, deeper and wider than any recession we have encountered in the last 30 years,\" said GIC\'s Mr Tan.

Mr Tan defended his purchase of UBS and Citigroup shares: \"We regard our investments in UBS and Citigroup as long term investments which will give us good returns when markets stabilise and economic conditions return to more normal levels.\"

GIC said it managed assets with a value of \"well above $100bn\".

Analysts said the fund\'s assets could be more than $300bn, making it one of the world\'s biggest sovereign wealth funds.

Patrick

Almost half a million new businesses have been formed this year, at an average rate of more than 38,000 a month, according to new figures.
Business services firm Jordans said 456,320 new enterprises have been set up in 2007, an average of 38,026 a month.
Despite increasing tax and regulatory pressures, the company said the UK continues to experience a \\\"sustained level\\\" of new business formations, while the number of firms from other EU countries establishing operations in Britain is also increasing.
Paul Townsend, director of Jordans\\\' Corporate Services: \\\"We have seen a marked rise in the number of German businesses forming their companies in the UK, and this is now beginning to spread to other countries, including Italy.
\\\"Those European companies have recognised the stability and certainty of the UK\\\'s business regime, as well as a less onerous and costly formula for company formations than some other EU countries.\\\"
BusinessZONE - 30th November 2007
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