LONDON (SHARECAST) - Profits bounced 20% higher last year at SThree with all of the recruitment specialist's markets growing so far in 2011.
In the year to November, profits rose from Ј8.9m to Ј21.6m with an underlying improvement of 20%. Sales fell to Ј474m from Ј519m.
"SThree delivered a strong result in 2010 in a market which was still some way from fully recovered. Sentiment improved steadily and we ended the year with all our markets and territories in growth," Russell Clements, chief executive, commented.
Permanent placements increased by 8.1% to 6,551 (2009: 6,060), with average fees remaining strong. The number of active contractors at year end increased by 4.9% to 4,359 (2009: 4,157). Some 76% of gross profit are now derived from outside of the UK ICT market (2009: 69%), it said.
"Taking all the available indicators into consideration, we feel there are justifiable reasons to remain optimistic about the forthcoming year," Clements added. The dividend for the year is unchanged at 12p.
Source: http://www.sharecast.com
Monday, January 31, 2011
Sunday, January 30, 2011
George Osborne warns unions over strike plans
George Osborne today called unions the "forces of stagnation" and blamed them for holding back Britain's economic recovery.
He warned that the government was preparing to draw up contingency plans if its deficit-reduction timetable was disrupted by strikes.
Union leaders met on Friday to discuss the possibility of co-ordinating strikes against the public spending cuts and the TUC has organised a protest in London on 26 March, three days after the budget, which it hopes will attract 1 million demonstrators.
Osborne repeated earlier warnings that union law could be changed.
"We are prepared to consider changes to the law around strikes – as a last resort – but I hope we never get there because I hope we can have a mature, grown-up conversation," he told BBC1's Politics Show.
"I completely understand that trade unions want to represent the interests of their members, but the interests of their members is that jobs are created and prosperity returns to our country".
Speaking at the end of a week in which the government was rocked by an unexpected contraction in the British economy in the last quarter of 2010, Osborne said he hoped growth would come from debt reduction, cutting corporate tax rates and reforms to health and education.
He said: "The challenge for the government in the next year or so is to remove the supply-side obstacles to growth.
"The [other] challenge to me is that UK corporates are sitting on cash on their balance sheets equivalent to about 5% of GDP. What I've got to do in the next few months is to persuade them to start spending that money."The shadow chancellor, Ed Balls, dismissed the government's growth plan and accused the chancellor of being in denial.
On BBC1's Andrew Marr Show, Balls stopped short of predicting another quarter of negative growth but he warned the VAT increase imposed earlier this month made the economy's chances of recovery more unlikely and he called for the government to think again.
Balls pointed out that the US economy, which has not embarked on deficit reduction yet, grew towards the end of last year.
Balls also questioned a statement made on Tuesday by the governor of the Bank of England, Mervyn King, who called the government's deficit reduction timetable the "right course".
He said: "I don't think that Mervyn King, in his heart of hearts, really believes that crushing the economy in this way is the right way to get the economy moving."
Asked if he thought King had been leaned on by the government, Balls said: "I think the governor is being loyal."
Osborne said he felt a "huge responsibility" to make the right decisions for Britain. "I'm fulfilling it to the best of my ability, doing what I think is required for Britain," he told the BBC. "So we are doing those things, they are not easy, they are not easy for families, I completely understand that. But frankly, when you look at the mess we inherited, we didn't have many other options.
When asked why he did not modify the government's deficit-reduction timetable, he said: "If I went to parliament and got up at the despatch box in the House of Commons and said, 'I am abandoning the deficit-reduction plan that Britain set out last year.' What do you think the reaction would be? Within minutes Britain would be in financial turmoil. I'm not prepared to let that happen. It requires tough, difficult decisions. No politician likes cutting spending, increasing people's taxes, but I was delivered a mess by the previous government and I'm trying to clear it up."
The government will tomorrow announce one element of its growth strategy. The employment minister, Chris Grayling, will say that six "enterprise clubs" will be created around the country where established businesses will share their experience with unemployed people, providing them with advice they might not otherwise be able to afford.
Grayling will launch the first club in St Helens, Merseyside, with the head of the British chambers of commerce, David Frost. They will also launch a new enterprise allowance to provide financial help and mentoring to those who have been unemployed for more than six months. They aim to support up to 40,000 new businesses in this way.
Source: http://www.guardian.co.uk
He warned that the government was preparing to draw up contingency plans if its deficit-reduction timetable was disrupted by strikes.
Union leaders met on Friday to discuss the possibility of co-ordinating strikes against the public spending cuts and the TUC has organised a protest in London on 26 March, three days after the budget, which it hopes will attract 1 million demonstrators.
Osborne repeated earlier warnings that union law could be changed.
"We are prepared to consider changes to the law around strikes – as a last resort – but I hope we never get there because I hope we can have a mature, grown-up conversation," he told BBC1's Politics Show.
"I completely understand that trade unions want to represent the interests of their members, but the interests of their members is that jobs are created and prosperity returns to our country".
Speaking at the end of a week in which the government was rocked by an unexpected contraction in the British economy in the last quarter of 2010, Osborne said he hoped growth would come from debt reduction, cutting corporate tax rates and reforms to health and education.
He said: "The challenge for the government in the next year or so is to remove the supply-side obstacles to growth.
"The [other] challenge to me is that UK corporates are sitting on cash on their balance sheets equivalent to about 5% of GDP. What I've got to do in the next few months is to persuade them to start spending that money."The shadow chancellor, Ed Balls, dismissed the government's growth plan and accused the chancellor of being in denial.
On BBC1's Andrew Marr Show, Balls stopped short of predicting another quarter of negative growth but he warned the VAT increase imposed earlier this month made the economy's chances of recovery more unlikely and he called for the government to think again.
Balls pointed out that the US economy, which has not embarked on deficit reduction yet, grew towards the end of last year.
Balls also questioned a statement made on Tuesday by the governor of the Bank of England, Mervyn King, who called the government's deficit reduction timetable the "right course".
He said: "I don't think that Mervyn King, in his heart of hearts, really believes that crushing the economy in this way is the right way to get the economy moving."
Asked if he thought King had been leaned on by the government, Balls said: "I think the governor is being loyal."
Osborne said he felt a "huge responsibility" to make the right decisions for Britain. "I'm fulfilling it to the best of my ability, doing what I think is required for Britain," he told the BBC. "So we are doing those things, they are not easy, they are not easy for families, I completely understand that. But frankly, when you look at the mess we inherited, we didn't have many other options.
When asked why he did not modify the government's deficit-reduction timetable, he said: "If I went to parliament and got up at the despatch box in the House of Commons and said, 'I am abandoning the deficit-reduction plan that Britain set out last year.' What do you think the reaction would be? Within minutes Britain would be in financial turmoil. I'm not prepared to let that happen. It requires tough, difficult decisions. No politician likes cutting spending, increasing people's taxes, but I was delivered a mess by the previous government and I'm trying to clear it up."
The government will tomorrow announce one element of its growth strategy. The employment minister, Chris Grayling, will say that six "enterprise clubs" will be created around the country where established businesses will share their experience with unemployed people, providing them with advice they might not otherwise be able to afford.
Grayling will launch the first club in St Helens, Merseyside, with the head of the British chambers of commerce, David Frost. They will also launch a new enterprise allowance to provide financial help and mentoring to those who have been unemployed for more than six months. They aim to support up to 40,000 new businesses in this way.
Source: http://www.guardian.co.uk
Thursday, January 27, 2011
A quick, easy step toward economic recovery
As the new Congress and the Obama administration get down to business, most Americans are looking for two things from Washington: jobs and bipartisanship.
There are no easy answers, but there is one thing that Congress and the administration can do quickly to boost job growth and demonstrate that bipartisan cooperation: Ratify the U.S.-Korea Free Trade Agreement. By giving U.S. companies greater access to one of Asia’s fast-growing markets, the agreement will generate jobs and economic growth across nearly every sector of the U.S. economy.
The U.S. International Trade Commission estimates that the trade pact would create more than 70,000 American jobs and increase U.S. exports by as much as $11 billion. Those estimates are conservative because they consider only the impact of reducing existing tariffs on U.S. exports. Eliminating procurement requirements and other legal restrictions that favor Korean companies — and effectively shut out U.S. firms — would create additional American jobs.
Ratifying the U.S.-Korea agreement is also vitally important to American strategic and economic interests in Asia. Fast-growing Asian economies are leading the way to a global economy recovery, but the United States is being left behind.
The European Union and other governments are working hard to increase their share of Asian trade, often at the expense of the U.S. When the new EU-Korea trade agreement takes effect on July 1, companies from EU nations will be able to sell products to South Korea tariff-free. Without a U.S.-Korea agreement, American companies will continue to be saddled with tariffs ranging from 6.6 percent to 49 percent.
At the same time, Asian nations are trading more freely with each other, making South Korea less reliant on U.S. imports to meet the country’s growing consumer demand. In 2003, the United States was South Korea’s biggest trading partner. We are now fourth, behind China, Japan and the European Union. Our share of South Korea’s import market has dropped from 21 percent to about nine percent.
It’s a worrisome trend, given the direct link between exports and jobs. By some estimates, every one percent increase in U.S. exports generates about 250,000 American jobs. Quite simply, it would be shortsighted to not lower trade barriers to more of our products and services, thereby creating more jobs. South Korea is America’s seventh largest trading partner, with U.S. exports ranging from cars to corn, from footwear to fish. According to the National Association of Manufacturers, the export of goods to South Korea currently supports more than 200,000 U.S. jobs.
The sale of U.S. communications and information technology accounts for nearly $10 billion in exports to South Korea annually. But to complete those sales, U.S. companies paid about $380 million in duties. The trade agreement would eliminate tariffs for nearly all information technology and communications exports. It would also ensure better protections for intellectual property, and establish a legal framework and transparency for new investments.
Technology and innovation are the twin pillars of a global economic rebound. Breaking down barriers that inhibit the spread of technology makes businesses more productive, encourages economic growth and improves daily life for people across the planet. And because the United States leads the world in information technology, it has the most to gain.
President Obama has pledged to submit the U.S.-Korea Trade Agreement to Congress early this year. When he does, Congress should approve it quickly. The administration and Congress should also complete work as quickly as possible on similar pending agreements with Colombia and Panama.
While those trade agreements would not have as large an economic impact as the U.S.-Korea pact, they would generate trade and American jobs. They also would contribute to stability and economic growth for our allies in Latin America.
Of course, there are many other ways to support an effective growth-and-jobs agenda built on trade, innovation and global engagement.
For America’s long-term financial security, we need to improve our education system, especially in math, science and technology. We need a tax code that encourages innovation and ensures that U.S. companies remain globally competitive. We need to put entitlement spending on a more sustainable path.
But if the 112th Congress and the Obama administration want to do something quickly to show that they can work together to create jobs, there is an easy solution — ratify the free trade agreements for South Korea, Colombia and Panama.
Source: http://thehill.com
There are no easy answers, but there is one thing that Congress and the administration can do quickly to boost job growth and demonstrate that bipartisan cooperation: Ratify the U.S.-Korea Free Trade Agreement. By giving U.S. companies greater access to one of Asia’s fast-growing markets, the agreement will generate jobs and economic growth across nearly every sector of the U.S. economy.
The U.S. International Trade Commission estimates that the trade pact would create more than 70,000 American jobs and increase U.S. exports by as much as $11 billion. Those estimates are conservative because they consider only the impact of reducing existing tariffs on U.S. exports. Eliminating procurement requirements and other legal restrictions that favor Korean companies — and effectively shut out U.S. firms — would create additional American jobs.
Ratifying the U.S.-Korea agreement is also vitally important to American strategic and economic interests in Asia. Fast-growing Asian economies are leading the way to a global economy recovery, but the United States is being left behind.
The European Union and other governments are working hard to increase their share of Asian trade, often at the expense of the U.S. When the new EU-Korea trade agreement takes effect on July 1, companies from EU nations will be able to sell products to South Korea tariff-free. Without a U.S.-Korea agreement, American companies will continue to be saddled with tariffs ranging from 6.6 percent to 49 percent.
At the same time, Asian nations are trading more freely with each other, making South Korea less reliant on U.S. imports to meet the country’s growing consumer demand. In 2003, the United States was South Korea’s biggest trading partner. We are now fourth, behind China, Japan and the European Union. Our share of South Korea’s import market has dropped from 21 percent to about nine percent.
It’s a worrisome trend, given the direct link between exports and jobs. By some estimates, every one percent increase in U.S. exports generates about 250,000 American jobs. Quite simply, it would be shortsighted to not lower trade barriers to more of our products and services, thereby creating more jobs. South Korea is America’s seventh largest trading partner, with U.S. exports ranging from cars to corn, from footwear to fish. According to the National Association of Manufacturers, the export of goods to South Korea currently supports more than 200,000 U.S. jobs.
The sale of U.S. communications and information technology accounts for nearly $10 billion in exports to South Korea annually. But to complete those sales, U.S. companies paid about $380 million in duties. The trade agreement would eliminate tariffs for nearly all information technology and communications exports. It would also ensure better protections for intellectual property, and establish a legal framework and transparency for new investments.
Technology and innovation are the twin pillars of a global economic rebound. Breaking down barriers that inhibit the spread of technology makes businesses more productive, encourages economic growth and improves daily life for people across the planet. And because the United States leads the world in information technology, it has the most to gain.
President Obama has pledged to submit the U.S.-Korea Trade Agreement to Congress early this year. When he does, Congress should approve it quickly. The administration and Congress should also complete work as quickly as possible on similar pending agreements with Colombia and Panama.
While those trade agreements would not have as large an economic impact as the U.S.-Korea pact, they would generate trade and American jobs. They also would contribute to stability and economic growth for our allies in Latin America.
Of course, there are many other ways to support an effective growth-and-jobs agenda built on trade, innovation and global engagement.
For America’s long-term financial security, we need to improve our education system, especially in math, science and technology. We need a tax code that encourages innovation and ensures that U.S. companies remain globally competitive. We need to put entitlement spending on a more sustainable path.
But if the 112th Congress and the Obama administration want to do something quickly to show that they can work together to create jobs, there is an easy solution — ratify the free trade agreements for South Korea, Colombia and Panama.
Source: http://thehill.com
Wednesday, January 26, 2011
Bank of England chief warns of 'choppy' economic recovery
Bank of England boss Mervyn King warns that grim GDP figures serve as a stark reminder of Britain's "choppy" economic recovery and says Britons should expect "uncomfortably high" levels of inflation.
Following yesterday's figures which showed Britain's economy shrank by a shock 0.5 per cent in the final three months of 2010, Mervyn King braced consumers for a bleak financial year.
The Bank Governor said the UK economy was "well placed to return to sustained, balanced growth", but difficult times lay ahead in 2011.
In a speech at Newcastle's Civic Centre last night, the Bank Governor said inflation would rise to "uncomfortable high" levels this year, with a peak of between 4 per cent and 5 per cent over the next few months. Next year inflation would then fall back "quite sharply", Mr King said.
Gross domestic product (GDP) contracted in the in final quarter of 2010, which stoked fears Britain could be heading for a double-dip recession as deep spending cuts are introduced by the government's austerity measures.
It also raises the prospect of stagflation - a period of high inflation coinciding with a stagnating economy.
Last night, Mr King warned that real wages will plunge back to 2005 levels as prices soar and the Government's deficit-busting actions take effect.
Rising unemployment and declines in real earnings will hit spending in the private sector, with the public sector hammered by Government spending cuts.
The Governor said the latest GDP figures "remind us that, as I said last year, the recovery will be choppy.
"Of more immediate concern to the Monetary Policy Committee is that we are experiencing a period of uncomfortably high inflation."
He added: "With the standard rate of VAT rising to 20 per cent this month, and recent further increases in world commodity and energy prices, inflation is likely to rise to somewhere between 4 per cent and 5 per cent over the next few months, before falling back next year."
Despite the warning Mr King appeared to downplay the changes of the Bank of England raising interest rates any time soon.
The Organisation for Economic Co-operation and Development (OECD) backed the Government's economic approach and cuts package today.
Secretary General Angel Gurria told BBC Radio 4's Today programme: "They should stay the course. The package was an ambitious package, which was what was necessary. The fiscal situation of the UK absolutely requires this approach.
"Without it, there will be no medium or long-term growth."
Source: http://www.channel4.com
Following yesterday's figures which showed Britain's economy shrank by a shock 0.5 per cent in the final three months of 2010, Mervyn King braced consumers for a bleak financial year.
The Bank Governor said the UK economy was "well placed to return to sustained, balanced growth", but difficult times lay ahead in 2011.
In a speech at Newcastle's Civic Centre last night, the Bank Governor said inflation would rise to "uncomfortable high" levels this year, with a peak of between 4 per cent and 5 per cent over the next few months. Next year inflation would then fall back "quite sharply", Mr King said.
Gross domestic product (GDP) contracted in the in final quarter of 2010, which stoked fears Britain could be heading for a double-dip recession as deep spending cuts are introduced by the government's austerity measures.
It also raises the prospect of stagflation - a period of high inflation coinciding with a stagnating economy.
Last night, Mr King warned that real wages will plunge back to 2005 levels as prices soar and the Government's deficit-busting actions take effect.
Rising unemployment and declines in real earnings will hit spending in the private sector, with the public sector hammered by Government spending cuts.
The Governor said the latest GDP figures "remind us that, as I said last year, the recovery will be choppy.
"Of more immediate concern to the Monetary Policy Committee is that we are experiencing a period of uncomfortably high inflation."
He added: "With the standard rate of VAT rising to 20 per cent this month, and recent further increases in world commodity and energy prices, inflation is likely to rise to somewhere between 4 per cent and 5 per cent over the next few months, before falling back next year."
Despite the warning Mr King appeared to downplay the changes of the Bank of England raising interest rates any time soon.
The Organisation for Economic Co-operation and Development (OECD) backed the Government's economic approach and cuts package today.
Secretary General Angel Gurria told BBC Radio 4's Today programme: "They should stay the course. The package was an ambitious package, which was what was necessary. The fiscal situation of the UK absolutely requires this approach.
"Without it, there will be no medium or long-term growth."
Source: http://www.channel4.com
Tuesday, January 25, 2011
FTSE slips as UK economic recovery stalls
UK shares slipped on Tuesday, as official data showed that Britain’s economy unexpectedly shrank in the fourth quarter, stoking fears of a return to recession.
By 10:10am the FTSE 100 index of blue-chip shares was 0.63% lower to 5,906. The Mid-250 index fell 0.82% to 11,478.
The Office for National Statistics (ONS) said earlier that the UK economy contracted by 0.5% in the last quarter of 2010. Economists had forecast the figures on UK gross domestic product – the broadest measure of economic activity – to come in at 0.5%, according to Reuters.
In the wake of the data, sterling was down 1% against the dollar, at $1.58, and down 0.9% against the euro, at €1.16.
According to the statistics bureau, business services and finance, construction and distribution, hotels and restaurants were the largest contributors to the negative growth this quarter.
ONS said output fell 3.3% in the construction sector and 0.5% in the service industries; however, output rose 0.9% in production industries.
'It's clearly a shocking outurn and the ONS stated that the weather counts for most of the decline in output,' said Amit Kara, analyst at bank UBS.
'From a monetary policy perspective though, we feel that the committee will find it very difficult to embark on an early rate hiking cycle with data such as this, and as such we are comfortable with out Q3 rate hike view.'
The analyst was referring to the Bank of England's key rate-setting panel, which has kept interest rates at historic lows to prop up the UK economy. The Bank has come under pressure recently amid mounting concern over inflation. Mervyn King, the central bank's governor, will have a chance to answer his critics in a key speech on Tuesday night.
Financial and resources stocks were the biggest losers on the FTSE 100. Copper miner Kazakhmys fell 46p to £15.12 and banking group Lloyds slid 2p to 63p.
Source: http://www.citywire.co.uk
By 10:10am the FTSE 100 index of blue-chip shares was 0.63% lower to 5,906. The Mid-250 index fell 0.82% to 11,478.
The Office for National Statistics (ONS) said earlier that the UK economy contracted by 0.5% in the last quarter of 2010. Economists had forecast the figures on UK gross domestic product – the broadest measure of economic activity – to come in at 0.5%, according to Reuters.
In the wake of the data, sterling was down 1% against the dollar, at $1.58, and down 0.9% against the euro, at €1.16.
According to the statistics bureau, business services and finance, construction and distribution, hotels and restaurants were the largest contributors to the negative growth this quarter.
ONS said output fell 3.3% in the construction sector and 0.5% in the service industries; however, output rose 0.9% in production industries.
'It's clearly a shocking outurn and the ONS stated that the weather counts for most of the decline in output,' said Amit Kara, analyst at bank UBS.
'From a monetary policy perspective though, we feel that the committee will find it very difficult to embark on an early rate hiking cycle with data such as this, and as such we are comfortable with out Q3 rate hike view.'
The analyst was referring to the Bank of England's key rate-setting panel, which has kept interest rates at historic lows to prop up the UK economy. The Bank has come under pressure recently amid mounting concern over inflation. Mervyn King, the central bank's governor, will have a chance to answer his critics in a key speech on Tuesday night.
Financial and resources stocks were the biggest losers on the FTSE 100. Copper miner Kazakhmys fell 46p to £15.12 and banking group Lloyds slid 2p to 63p.
Source: http://www.citywire.co.uk
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