FOGL.L Share News (FOGL)

Tesco's travails in its core British market will be exposed for all to see this week, with the group's full-year results expected to show dismal trading in the UK. The call from many quarters is that Tesco must get back to basics and sort out Britain at all costs - and pull back from its difficult American venture. While this may sound tempting, it makes little sense to pull the plug on the American dream now. When Tesco began its push into America in 2006, many observers, Financial Mail included, warned of the risks. The difficulties Tesco has faced in America vindicate many of those warnings, but it has now made its investment and battled through the first learning phase.A dynamic new entrant to a marketplace can challenge thinking, force competitors to innovate and generally raise the bar for the product or experience in that market. Ultimately, this leads to pioneering product development, sharper service and much better value for consumers. One of the key aims of competition regulation is to protect the consumer from monopoly situations where companies can set whatever prices they like and stop investing in their product. In this situation the public suffers, the industry suffers and the country suffers. That is why Virgin Atlantic will appeal the decision by the European Commission to wave through BA's merging with bmi in just 35 working days. I truly cannot believe this directive and we will challenge every aspect of this process that, if allowed to stand, will undoubtedly damage the British airline industry for years to come, writes Sir Richard Branson in the Sunday Telegraph. The Ernst & Young ITEM Club will say in a report out on Monday that growth will be just 0.4% this year, half the 0.8% rate forecast by the UK's official forecasting body, the Office for Budget Responsibility. ITEM expects growth to accelerate to 1.5% in 2013 and 2.6% in 2014, both below OBR forecasts. Weak construction data published on Friday suggested Britain may have slipped back into recession in the first quarter of the year, with the economy contracting by about 0.1%. Official growth figures will be published on April 25. ITEM said that business investment grew by just 1.2% last year, despite a corporate cash pile now worth more than £754bn, or 50% of gross domestic product, according to The Sunday Telegraph.Barclays' board is to offer an olive branch to investors and promise to consult with them in future years before approving large one-off payments to executives. In a move designed to quell shareholder dissent following the continuing row over chief executive Bob Diamond's near-£18m compensation package, it is understood that Barclays will tell investors in meetings this week of its plans. The British bank, which has spent the past week defending itself from allegations of excessive executive pay, will also attempt to reassure investors by promising greater returns in future years. The row was sparked a week ago when The Sunday Telegraph revealed that in excess of 10% of Barclays investors - including Standard Life and Scottish Widows - were poised to vote against the compensation report and the re-election of Alison Carnwath, chairman of the remuneration committee, at its annual meeting on April 27.The credit crunch 'honeymoon' is over for homebuyers as lenders continue to increase mortgage interest rates while reducing the choice of loans. After the banking crisis of 2007 and 2008, rates plunged to record lows - a lifesaver for borrowers with no equity and where household incomes were squeezed. Banks also held off repossessing homes, even where borrowers were late with payments, in what was called 'forbearance'. But almost five years after the collapse of Northern Rock, experts warn that the situation is about to get tougher for mortgage payers. Figures published last week show that interest-only borrowing accounts for 35% of outstanding mortgages, and that as many as 8% of these borrowers have already had some difficulty, for example missing payments. Their options to protect themselves against further mortgage rate rises are limited, says The Financial Mail on Sunday. British companies including Tesco are making widespread use of the controversial tax perks that have landed Barclays and its chief executive Bob Diamond in hot water with investors. Research carried out by The Times indicates that the use of so-called "tax equalisation" packages to insulate executives from having to pay tax twice is commonplace among companies listed in Britain. HSBC, Standard Chartered, Rio Tinto and Tesco are among the businesses that have paid tax benefits for directors as well as covering travel, housing and medical insurance costs. Tax experts said yesterday that the practice of paying the additional tax liabilities of senior staff had become a convention, particularly for those moved to offices overseas, according to The Sunday Times. Argentinian threats against companies involved in the Falkland Islands have no legal grounds, according to an AIM-listed oil explorer about to start drilling there. Tim Bushell, the chief executive of Falkland Oil and Gas, said that international law did not support threats from Buenos Aires to sue oil companies operating in the Falklands and the banks helping them. Having sought legal advice on the issue, he said there was "nothing they can do." "What actions can they take? Unless you have got assets in Argentina which could be seized, there is nothing under international law which they can use. It's outside their jurisdiction," added Mr. Bushell, The Sunday Times reports. The FTSE 100 security company began a European roadshow last week with a view to launching a €500m bond issue. It is understood G4S wants to raise the debt to reduce bank borrowings and establish a "diverse and stable" financing base. Shares in G4S slumped in October after chief executive Nick Buckles revealed plans to create an outsourcing giant by buying cleaning and catering rival ISS for £5.2bn. However, Mr Buckles was forced to dropped the bid because of opposition from shareholders. Although the shares have recovered since, the bond issue will test whether investors still have confidence in the future of the company and management, The Sunday Telegraph says. AB