Thomas Cook shares dive 75% on news of bank talks

Shares in Thomas Cook have closed down 75% after it announced it was in talks with banks about increasing the amount of money it can borrow.

The travel firm said it had seen a "deterioration of trading", due to political unrest in Egypt and Tunisia and floods in Thailand.
It also said it would delay releasing its full year results until it had concluded the discussions.
Thomas Cook reassured customers that their bookings were fully protected.
Improving 'resilience' Last month, Thomas Cook announced it had arranged a new £100m credit agreement with its bankers.
The company is trying to negotiate about another £100m credit.

Thomas Cook chief executive Sam Weihagen tells customers they can be confident booking with his company

At the end of September its net debt was just under £900m. The new loan, if agreed, would take the figure to over £1bn.
Thomas Cook said that while the last loan had taken four to six weeks to arrange, there was greater urgency this time and it was confident of being significantly quicker this time.
The company has stressed that it is not currently in breach of the terms of any of its loans, but that it wanted to "improve its resilience if trading conditions remain difficult".
Thomas Cook said last month that the terms of an existing £150m loan and an £850m credit facility have been amended to help cashflow.

Holiday protection

Kevin Peachey Personal finance reporter

While Thomas Cook's announcement is worrying for investors, there is no need for holidaymakers to share the same level of concern.
Anyone booked for an overseas package holiday with Thomas Cook is covered under the Air Travel Organisers' Licensing (Atol) scheme.
This means that even in the worst case scenario - that the company goes bust when holidaymakers are away - customers on package deals are flown home without incurring extra expense. Those who have not already left for their holiday are refunded.
Holiday bookings should also be honoured if there is a takeover.
But, at present, with Thomas Cook in talks with banks, customers need not do anything, and the company has urged those with bookings not to worry.
However, people who have only booked a flight with the company will not be covered by the Atol scheme and are advised to buy suitable travel insurance.
Thomas Cook says though that flights bought in its own stores are still Atol protected.

It is reported to be planning to close 200 of its 1,200 High Street travel agencies and bureaux de change.

'Not travelling' In a conference call, Thomas Cook chief executive Sam Weihagen reassured customers that it was business as usual.
"We have all the protection in place as any other travel company and they should not worry," he said.
Anyone booked for a package holiday with Thomas Cook is covered under the Air Travel Organisers' Licensing (Atol) scheme, which is funded by contributions from travel companies.
However, people who have only booked a flight with the company will not be covered by the Atol scheme and are advised to buy suitable travel insurance.
Mr Weihagen explained that trading had been particularly poor in France and Belgium, where bookings are down 20% compared with last year, and in Thomas Cook's Russian business.
"Winter travellers from Russia go to Thailand or Egypt," he said, adding that the floods in Thailand and continuing political unrest in Egypt had hit those bookings.

The biggest destination for French travellers in winter is Tunisia, which means that "the French people are simply not travelling".
He said that the trading position in the UK was "tough, but not of the same magnitude".
Thomas Cook shares have fallen 95% from their high for the year of 205 pence per share recorded in January, closing at 10p on Tuesday.
"Clearly the extremely low share price is of concern," said Mr Weihagen, adding that the company was keen to sort out the debt issues so it could then address the share price.
It has been a tough year for travel companies generally. Thomas Cook's rival Tui's shares have fallen 68% from their high for the year, including a further 5.6% fall following Thomas Cook's announcement on Tuesday

UK severs ties with Iranian banks

Chancellor George Osborne said: "We are doing this to improve the national security of the United Kingdom"

The UK has imposed new sanctions against Iran which will cut off all financial ties with Iranian banks.

It follows the International Atomic Energy Agency's report on Iran and concerns about its nuclear programme.
From 1500 GMT on Monday, all UK credit and financial institutions are required to cease all transactions with banks including the Central Bank of Iran.
Chancellor George Osborne said there was evidence that Iran's banks were funding its nuclear weapons programme.
This is the first time the UK has used powers created under the 2008 Counter-Terrorism Act to cut off a country's banking sector in this way.
The United States and Canada are also expected to announce further economic sanctions against Iran on Monday.
'Crucial role' Mr Osborne said: "We have ceased all contact between the UK's financial system and the Iranian financial system.
"We're doing this because of international evidence that Iran's banks are involved in the development of Iran's weaponised military nuclear weapon programme.

This measure will protect the UK financial sector from being unknowingly used by Iranian banks for proliferation-related transactions”

Treasury spokesman

"We're doing this to improve the security not just of the whole world, but the national security of the United Kingdom."

The Treasury said in a statement that Iran's banks "play a crucial role in providing financial services to individuals and entities within Iran's nuclear and ballistic missile programmes, as companies carrying out proliferation activities require banking services".
"This measure will protect the UK financial sector from being unknowingly used by Iranian banks for proliferation-related transactions," it added.
Iran insists its nuclear programme is purely civilian and for scientific research, but Western nations fear it is trying to build a nuclear weapon.
A report from the IAEA earlier this month said the organisation had "serious concerns regarding possible military dimensions to Iran's nuclear programme".
It said Iran had "carried out activities relevant to the development of a nuclear explosive device".
Iran correspondent James Reynolds said that despite the IAEA report, Iran had not been referred to the United Nations Security Council for further sanctions because Russia and China were opposed to the move.
He said the sums of money involved were not yet clear, but being able to take part in the international financial system was clearly crucial for Iran, especially its petrochemical industry.
Foreign Secretary William Hague said the UK had "consistently made clear that until Iran engages meaningfully, it will find itself under increasing pressure from the international community".
"The swift and decisive action today coordinated with key international partners is a strong signal of determination to intensify this pressure."

Nearly 50,000 NHS jobs 'under threat'

 

The RCN believes nearly 50,000 posts are under threat in England

Nearly 50,000 jobs are under threat or have already gone in the health service in England, union figures suggest.

The Royal College of Nursing report warned in many cases front-line posts were being hit as the NHS was struggling to make savings.
The total represents 3.5% of the 1.4 million people employed by the NHS.
The union said that for some trusts the culls represented significant chunks of their workforces, but the government accused it of "scaremongering".
The RCN warned the cuts could end up harming patient care, while it also predicted the total would rise in the coming months as the figure was based on evidence from less than half the trusts in the country.
The remaining trusts either are not making cuts or have yet to have announced them, the college believes.
Cutbacks The RCN has been closely monitoring job cuts since April 2010.
The posts it has identified have either being lost already or are due to be cut by March 2015.
Many of them do not involve redundancies as the NHS tends to cut posts by not replacing staff who leave or retire.
The total highlighted - 48,029 - is the equivalent of shutting four large hospital trusts.
It includes all types of staff from administrators and porters to doctors and nurses.

Staffing levels should be based on rigorous clinical evidence and should not be arbitrarily lowered in a short-sighted effort to save money”

Peter Carter Royal College of Nursing

 

The union also carried out an in-depth look at 41 trusts where cuts were being made.

In total, nearly half of the posts under threat were clinical and the scale of the cutbacks represented nearly a tenth of the workforce on average.
In the worst cases over 20% of the workforce was due to be culled.
The RCN said the findings were proof that the savings the NHS has to make - £20bn over the next four years - could not simply be achieved through efficiencies.
Evidence was also uncovered of job cuts being made elsewhere in the UK.
Some of the trusts highlighted in the RCN's report have accused the union of using out of date figures, and said they have since downscaled the number of planned job cuts.
The RCN acknowledged the forecasted cuts did fluctuate regularly, but said overall the report was still an accurate picture of what was happening.
RCN chief executive Peter Carter said the scale of the cuts could have a "deep and potentially dangerous impact on patient care".
"Staffing levels should be based on rigorous clinical evidence and should not be arbitrarily lowered in a short-sighted effort to save money."
'Scaremongering' David Stout, deputy chief executive of the NHS Confederation, which represents managers, questioned whether there would be a large drop in staff numbers overall, saying staff were more likely to be redeployed into other areas rather than losing their jobs.
But he added some would be affected.
"We all need to be honest with the public, patients and staff that we have no pain-free option.
"Managing the financial challenge, while undergoing a huge structural reorganisation, is going to be tough. There is no doubt that many staff will find this personally very difficult."
Health minister Simon Burns said it should be possible to make efficiency savings at the same time as improving patient care and accused the RCN of "typical trade union scaremongering".

Home Secretary praises bravery of stabbed PCs

 

A 32-year-old man was arrested on suspicion of attempted murder and remains in custody

The Home Secretary Theresa May has praised the bravery of four police officers who were stabbed as they tried to disarm a man in north-west London.

Three of the officers remain in hospital following the incident at Kingsbury which started shortly after 08:30 GMT on Saturday.
The man ran into Kingsbury Halal Butchers and grabbed a 12in knife before stabbing the officers.
Mrs May said their bravery was a "vital reminder of the debt we owe police".
Officers "put themselves in harm's way every day to protect the public", she said.
'Immense gratitude' "Nick Herbert (Policing Minister) and I have spoken to the Commissioner to pass on our deep sympathies for the severe injuries suffered and our immense gratitude to the officers for their actions.
"We wish them a full and fast recovery," the Home Secretary said.
Police said the incident started when officers were called to reports of a man causing a disturbance.
Shopkeeper Girish Modha, who owns a nearby sweet shop, said the man started shouting at police.
"He grabbed a piece of fluorescent tubing and brandished it at police.
"He then ran down Kingsbury Road, going into a cash-and-carry shop.

 

Three of the officers remain in hospital but a fourth was treated for a broken hand and released

"At one point I think he threw a brick and smashed a police car window."
The man then ran into the butcher's shop and demanded a "chopper", according to owner Mohammad Qasim.
He said the man then grabbed a 12in knife off the counter.
"After a few minutes police came in and tried to catch him and he stabbed one."
Mr Qasim said there was "plenty of blood inside, everything was a mess".
The man was eventually overpowered but not before the four officers had suffered a range of stab wounds and other injuries as they tried to disarm him.
Commander Christine Jones, of the Metropolitan Police's territorial policing unit, spoke of the officers having "put their lives on the line by confronting this man in what was an extremely violent and spontaneous situation".
They had "demonstrated outstanding bravery", she said.
London Mayor Boris Johnson said his thoughts were with the injured officers and their families and colleagues, adding: "This was an appalling attack on brave individuals who work tirelessly to protect our communities and keep our streets safe."

Children in Need breaks record

Celebrities including BBC newsreaders, Miss Piggy, Gok Wan, One Direction and the cast of EastEnders performed for Children in Need

The BBC's annual Children in Need show has raised a record on-the-night total of £26,332,334 - £8m more than 2010.

Host Terry Wogan announced the sum at the end of the six-hour extravaganza, which ended at 0200 GMT.
The show was preceded by a One Show special, which saw the show's co-presenter Matt Baker end his 500-mile rickshaw ride from Edinburgh to London.
Westlife and Susan Boyle appeared, and Fearne Cotton, Alesha Dixon and Tess Daly joined Wogan as hosts.
Signing off at the end of the telethon, Sir Terry said: "That is the greatest single total we have ever made in one night, so thank you.
"Thank you to the British people in these tough times to come up with that kind of money on behalf of Britain's children."
Former X Factor boy band One Direction opened the show by performing their single What Makes You Beautiful.
'Extraordinary' Following his arrival at BBC Television Centre, in west London, shortly after 1910 GMT, Matt Baker described his gruelling rickshaw ride as an "extraordinary" experience.

 

Matt Baker raised more than £1.2m for Children in Need with his rickshaw challenge

"To actually see people running after you with money and wanting you to have it, it's just unbelievable," he told One Show presenter Alex Jones.
Baker, who began the challenge on 11 November and cycled for up to 10 hours a day, raised more than £1.2m for Children in Need.
As the live show kicked off, BBC newsreaders Sian Williams, Sophie Raworth, Susanna Reid and Emily Maitlis were joined by former newsreader Angela Rippon to re-enact the dance routine Rippon performed with Eric Morecambe and Ernie Wise in 1976.
The cast of The Wizard of Oz also performed a variety of songs from the hit musical, and revealed they had raised more than £10,000 for Children in Need.
And the cast of Eastenders performed a medley of hits by Queen, on the set of the popular soap.
Later, the Collective, a supergroup featuring Gary Barlow, Ed Sheeran, Tinchy Stryder, Chipmunk, Ms Dynamite, Tulisa, Wretch 32, Rizzle Kicks, Mz Bratt, Dot Rotten and Labrinth performed the Children in Need single Teardrop during Friday's live show.

 

Host Terry Wogan introduced his co-hosts Tess Daly, Alesha Dixon and Fearne Cotton

 

Lord Sugar entered the Dragons' Den and Gok Wan, best known for presenting fashion shows, sang.
The cast of comedy series Outnumbered performed Hey Hey We're the Monkees and the Muppets led an all-star version of the classic song Mah Na Mah Na.
There were regional segments to the show, allowing viewers to see fundraising events across the UK.
The aim of the night is to raise as much money as possible to help support children's charities across the country.
A record £2,032,642 has been raised by BBC Radio 2 listeners, beating the £1,693,444 raised last year.

Cable dismisses EU-only finance tax as 'tax on Britain'

 

Mr Cable says a financial transactions tax is irrelevant to Europe's most pressing problems

Vince Cable has dismissed talk of a financial transactions tax being introduced just in Europe, saying this would amount to a "tax on Britain".

The business secretary said the UK would not "fall for" any plan which saw the tax levied in just one jurisdiction rather than globally.
He was responding to comments by a top German politician who suggested the UK had to "make concessions" on the issue.
It comes ahead of talks between David Cameron and Chancellor Angela Merkel.
Several EU leaders, headed by French President Nicolas Sarkozy, have argued for a tax on financial transactions - known as the Tobin tax - to be introduced across Europe.
The UK has said it is prepared to consider the move if it is applied equally to all leading global financial centres but will oppose any unilateral move which would damage the City of London.
'Completely irrelevant' Mr Cable told Channel 4 News he had "no objection in principle" to a globally constituted tax.
But he insisted: "What the European Union countries are proposing, and Angela Merkel, is a tax which is effectively a tax on Britain, the revenue of which would go to support the EU budget.
"We are not going to fall for that. It is completely irrelevant to the really urgent needs to sort out the problem of the eurozone. So, of course, we react to that and are critical of that."
The business secretary was speaking after a party ally of German chancellor Mrs Merkel suggested the UK was being self-interested on the issue and neglecting its wider responsibilities.
"When almost 30% of your GDP comes from the financial market business in the City of London, it is understandable that they are saying we want to impose a tax on this ourselves and not an additional one in Europe," Volker Kauder said.
"But I must say, the British are not members of the currency union but they are members of Europe and they also have a responsibility for the success of Europe.
"Our message to the British (is they) cannot be only looking for their own advantages without being ready to make concessions."
Future of Europe If the transactions tax could not be implemented across Europe, he said members of the eurozone should press ahead with one across the single currency area.
The trade unions and the Archbishop of Canterbury are among those who have called for a financial transactions tax, popularly known as a "Robin Hood" tax, to help contribute to reducing the deficit.
But business groups have warned it could do untold damage to the City if applied unilaterally with the risk of major banks and finance firms moving abroad.
Chancellor George Osborne has said a tax on financial transactions that did not include America or China "would be economic suicide for Britain and for Europe".
The debate comes ahead of Mr Cameron's visit to Berlin on Friday and amid arguments over the UK's future role in the European Union if members of the eurozone agree to closer fiscal integration in response to the debt crisis currently gripping the euro area.
In a major speech on Tuesday, Mr Cameron suggested the current financial crisis provided an opportunity for the UK to reclaim powers from Brussels in the future.

Airlines call for Air Passenger Duty to be scrapped

 

British Airways is one of the airlines calling for the tax to be scrapped

Four airlines from the UK and Irish Republic are calling for the UK government to scrap Air Passenger Duty.

The tax, which is applied to almost every ticket on a flight originating in the UK, has risen sharply since it was introduced in 1994.
When APD was introduced, passengers whose journey originated in the UK paid between £5 and £40 per ticket. They now have to pay from £24 to £170.
It is opposed by Easyjet, Ryanair, Virgin Atlantic and British Airways.
The airlines say it penalises British holidaymakers and makes the UK a less attractive destination.
The amount of APD that passengers have to pay depends upon whether their flight is short or long-haul, with business and first class travellers having to pay more than those with an economy ticket.
A Treasury spokesman said that the government had frozen APD this year, and that, unlike many other countries, the UK did not levy VAT on flights.
Revenue raising
 
 "The chancellor put this year's increases on hold, but a further rise of around 10% is expected next year.

We consulted on a range of reforms to APD, including simplifying the tax and making it fairer by extending APD to private jets”

Treasury spokesman

 

"The airlines say that as the tax was first introduced to combat greenhouse gas emissions it should be abolished with the introduction of the EU's Emissions Trading Scheme next year.

"The government is considering making changes to Air Passenger Duty, but has made clear that it regards the tax as an important way of raising revenue, and expects it to generate more than £2bn this year."
Ryanair chief Michael O'Leary said that removing APD would not increase the airlines' profits.
"This has nothing to do with our profits. It is paid by families, paid by passengers going on holidays," he said.
"If it is scrapped, the money goes straight back into families' pockets."
Mr O'Leary also said that as a result of APD, 30 million fewer overseas visitors had come to the UK in the past five years.
He added that with UK passengers having to pay the new Emissions Trading Scheme tax from January, they will be "taxed on the double".
Willie Walsh, chief executive of International Airlines Group, the owner of British Airways, called on Chancellor George Osborne to set up an independent review of APD.
"This tax is hugely damaging and must be scrapped," he said.
"We challenge the chancellor to undertake an independent review, which will show that the net effect of this tax is damaging."
Consultation process A Treasury spokesman said: "We consulted on a range of reforms to APD, including simplifying the tax and making it fairer by extending APD to private jets.
"We will say more on this in the coming weeks.
"It is also important to remember that the UK is not the only country with an passenger duty, and unlike many other countries the UK does not levy VAT on flights."
At the start of this month APD was reduced for direct long-haul flights from Northern Ireland, in response to competition from services in the Irish Republic, which has an Air Travel Tax of just three euros to any destination.