Ericsson up on handset exit news

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6 October 2011 Last updated at 18:13 GMT Sony may merge its phone joint venture with its other mobile gaming business Shares in the Swedish telecoms firm Ericsson have risen on a report that Sony may soon buy it out of their mobile phone handsets joint venture.

The Wall Street Journal says Sony wants to integrate the division with its tablet computer and hand-held games machine businesses.

The report said the Japanese firm may pay its partner up to 1.25bn euros ($1.7bn, ￡1.1bn) for its 50% stake.

Ericsson's shares climbed close to 8% in US trading after the news broke.

'Struggling'

Despite Sony's reputation as a technology innovator, the joint venture has struggled to maintain market share.

Sony Ericsson accounted for 1.7% of all global mobile phone sales between April and June, according to a recent report by technology research firm Gartner.

That compared to a 3% share the previous year.

"The business has been struggling," said Mark McKechnie, a technology analyst at ThinkEquity.

"Sony's decision to use its brand with Ericsson's technology was a good idea, but it didn't work out. Now it wants more control to better compete against Apple and other [Google] Android devices."

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AUDIO: Autonomy due to decide on HP bid

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3 October 2011 Last updated at 11:33 GMT Help

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Wembley 'to break even by 2015'

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5 October 2011 Last updated at 11:15 GMT By Bill Wilson Business reporter, BBC News Wembley's income is boosted by other, non-sporting events Football Association chairman David Bernstein has said that English football's national stadium, Wembley, will financially break even by 2015, one year later than previously planned.

"Wembley is doing very well, it has been extremely profitable," he said.

Mr Bernstein added that the rebuilt stadium was showing an annual operating profit of between ￡40m and ￡50m.

He said he expected the stadium, built for ￡757m and opened in 2007, to start pumping cash into the game by 2015.

But he said that large interest charges and other continuing costs remained an issue.

The FA, which owns the stadium through its subsidiary Wembley National Stadium Ltd, said earlier this year it envisaged Wembley breaking even in 2014.

But Mr Bernstein told delegates at the Leaders in Football event in London: "By 2015, Wembley should start putting money back into the game, instead of being subsidised by the game."

World-class venue

Preliminary financial figures for 2010 released earlier this month by the FA showed that it paid out ￡22m in net interest during the year, partly to service the loans taken out to build Wembley.

And last year, FA general secretary Alex Horne said the association had budgeted to subsidise Wembley by ￡20m a year in 2010 and 2011 and ￡12m a year in 2012 and 2013.

Wembley's business plan relies on concerts and other events to boost the bottom line, but the FA obviously also sees the stadium as a world-class football venue.

And Mr Bernstein said that this on-field goal had been greatly been helped by the successful staging of the Champions League final at Wembley in May between Barcelona and Manchester United.

"I think that is when the new stadium really came of age," he said.

He also said it was a great vote of confidence in the Wembley when Uefa decided to stage the Champions League final again at the stadium in 2015.

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Kodak denies any bankruptcy plans

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2 October 2011 Last updated at 10:09 GMT Kodak is one of the best-known and most iconic brands in photography Eastman Kodak has said it has "no intention of filing for bankruptcy".

The struggling US camera and printing group's comments came after it confirmed it had hired a law firm well-known for handling bankruptcy protection cases, Jones Day.

Kodak said it was "not unusual for a company in transformation to explore all options".

Shares in the firm fell 54% on Friday as fears persist about its future. It has not made a profit since 2007.

Kodak, synonymous with film photography for more than 100 years, has struggled to adapt to the digital age.

Last week it announced plans to borrow $160m (￡103m) for "general corporate purposes".

Kodak is now continuing to explore a sale of its digital imaging patents, worth an estimated $2bn.

Mark Kaufman, an analyst at Rafferty Capital Markets, said: "I don't believe bankruptcy is inevitable.

"This is a pretty valuable portfolio, they should get a good price.

"They need to get this [sale] out of the way. They need to sell this portfolio, raise some type of cash."

The company currently has a market value of $210m. This compares with $31bn at its height in February 1997.

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Wolseley returns to annual profit

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4 October 2011 Last updated at 07:19 GMT Wolseley said weaker economic forecasts would have an impact on its markets Building and heating materials group Wolseley has returned to a full-year profit in 2010-11.

The group suffered when the housing market was hit during the recession, but said it had focused on improving its "customer, product and vendor mix".

Wolseley reported a pre-tax profit of ￡391m in the year to July, compared with a ￡328m loss a year earlier.

It said markets were broadly stable but there had been "no strong rebound in activity after the recession".

Revenues rose 3% to ￡13.6bn.

The group also took a ￡39m charge on its Bathstore and BCG brands in the UK, "reflecting a deterioration in the outlook for retail markets".

It added that in the current environment, it remained cautious about its cost base.

"Recent economic forecasts have weakened, and over time this is likely to have an impact on our markets," said chief executive Ian Meakins.

The company has been selling off units as part of a disposal strategy over the past 18 months.

In July, it sold its French distribution division Brossette and British Build Center business to France's Saint-Gobain for ￡310m.

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IEA urges fossil fuel aid cuts

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4 October 2011 Last updated at 14:33 GMT Data suggests roughly half all fossil fuel subsidies are spent on oil products The International Energy Agency (IEA) estimates governments spent $409bn (￡266bn) on fossil fuel subsidies in 2010.

This figure is a 36% rise on the previous year. Support for oil products represented almost half of the total.

The IEA warns the aid is likely to increase to $660bn (￡430bn) by 2020 unless action is taken.

The agency claims subsidies are inefficient and encourage wasteful energy use.

It says efforts to artificially cut costs encourage volatile price swings because they blur market signals. As a result it says they often fail to help the poorest households they are targeted at.

The IEA says phasing out the payments should make renewable energy sources, such as wind power, become more competitive. It says that would stimulate investment in the sector and create new jobs.

It says subsidy cuts would also encourage consumers and businesses to become more energy efficient.

Tracking the subsidies

To make the right choices the IEA says governments need access to data to help them work out the implications of changes in policy.

The Organisation for Economic Co-operation and Development think tank is helping make such information available. It has begun compiling an inventory of more than 250 different mechanisms used by its members to support fossil fuel production and use.

It says the research will help states assess each others' efforts to make reforms.

For example, it gives Germany's pledge to cut support to its hard-coal mining industry by 2018, and Mexico's attempt to limit subsidies by targeting them directly to its poorest households.

The IEA and OECD suggest that by following their lead other countries can also cut costs at the same time as stimulating growth and employment.

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VIDEO: Business Lessons from Minnesota

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30 September 2011 Last updated at 11:01 GMT Help

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VIDEO: Eurozone crisis sparks fears for Dexia

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4 October 2011 Last updated at 22:15 GMT Help

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VIDEO: Prodi: Public will accept debt decision

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29 September 2011 Last updated at 11:00 GMT Help

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AUDIO: Greek government 'must stop fooling around'

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A senior German politician in Angela Merkel's coalition has said that Greece should leave the euro.

Former Greek finance minister, Stefanos Manos tells us why the Greek government should get tougher ahead of today's meeting of Europe's finance ministers.

Get in touch with Today via email , Twitter or Facebook or text us on 84844.

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VIDEO: Samsung's smartphone makes inroads

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7 October 2011 Last updated at 05:06 GMT Help

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Firms fear energy price hikes

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4 October 2011 Last updated at 04:09 GMT By Gerry Northam Reporter, File on 4 Energy-intensive industries have seen gas and electricity bills soar Despite government hopes that manufacturing will lead the UK recovery, there are fears some energy-intensive industries may be forced to leave the UK as prices rocket.

Davin Bates is standing at the cool end of a tunnel kiln watching racks of cups and sugar bowls trundle out ready for glazing.

As we peer fifty feet in to the bright orange centre, he tells me that the internal temperature is well over 1000 degrees centigrade.

Then he breaks the bad news about his gas bill.

Davin is a management accountant at one of Stoke-on-Trent's remaining successful potteries, Steelite. It is a sprawling village of redbrick buildings employing 650 people which produces half a million pieces of crockery a week.

There are seven kilns in all. Keeping them fired up was costly enough last year.

But this year Davin has faced a 55% rise in the cost of gas. The firm's electricity bill has also gone up by 17%.

Tough decisions

"We find it difficult to pass on these costs to our customers," says Davin.

He says profits are therefore getting squeezed and the company's future plans are in jeopardy: "Investment will have to be looked at, because this is coming off the bottom line," he adds.

Across the whole sector, energy bills are driving managers to make tough decisions.

At the British Ceramic Confederation, Dr Laura Cohen has watched factory after factory close - and she identifies high energy costs as a major problem.

She knows that other companies have moved production overseas.

"We heard only a few weeks ago that one firm has transferred all of their manufacturing to China," she says. "Energy costs are a significant part of that."

It is a trend which is not confined to the long-troubled Potteries. Other parts of the country are hit too.

The huge chemical industry, which contributes ￡30m a day to the British economy, is also suffering.

At the family firm of Thomas Swan in County Durham, enormous sealed vats of chemicals are heated and stirred to make specialist powders and liquids for niche hair dyes, printing and cleaning products.

Managing director Harry Swan, a great-grandson of the founder, has steered the company through the recession and now finds himself hit by electricity and gas bills of almost ￡1m.

His plant uses 28,000 megawatt hours of energy a year. Even before the latest round of price rises, his extra energy costs this year were equivalent to a month's profit. He is dreading the next bill.

For the Chemical Industries Association, chief executive Steve Elliott fears British job losses could be imminent: "There will come a moment when people say enough is enough," he says.

"There will only be one direction of travel - out of the UK."

There could be worse to come.

Industries have been totting up the cost of government and European initiatives to promote a low-carbon economy, the so-called "green taxes", and some say their additional bill will run into the millions.

'Tipping point'

Cemex UK runs the biggest cement plant in the country, based on the outskirts of Rugby. It is not averse to the idea of a green economy. In recent years it has moved away from dependence on coal alone.

It now also burns chippings from old tyres and a fuel made from minced-up household waste. But the company is worried about the impact of coming green taxes.

Director Andy Spencer estimates that they will increase his annual energy costs by ￡12m.

What most concerns Cemex is that other countries will not impose similar new taxes on their cement producers. His prices would then struggle to compete on world markets.

So Andy Spencer's thoughts are already turning to the possibility of switching production out of the UK to Cemex plants abroad, particularly in Egypt.

"I can foresee a time when economically it makes more sense to do that and I don't think that time is far away," he says.

"We are very committed to the UK, but there is a genuine concern that we could reach that tipping point where the economics don't stack up to produce domestically in the UK."

This seems at odds with the government's goal of rebalancing the economy in favour of manufacturing industries. The Chancellor George Osborne has called for "a march of the makers".

Andy Spencer sees that march hitting a roadblock. "We know we need to make the transition to a green economy," he says.

"But it must not come at the price of exporting our domestic energy intensive industries."

No blank cheques

The Energy Secretary Chris Huhne says there is little the government can do about some energy price rises.

"How much of this is due to the fact that these businesses are very reliant on world market factors? We've had a 27% increase in the gas price on world markets over the year to August," he says.

"Now with the best will in the world, I can't do anything about that."

But he argues the government's reform of the electricity market will reduce prices for business and domestic consumers alike.

He is working on plans to announce special help for high-energy industries later this year, and says that in 2020 the net effect of the government's energy and climate change policies will be to reduce bills across the board.

But he is sceptical of some complaints on green taxes.

"I don't accept that some of the stories we are hearing about green taxes are correct. There are some ludicrously inflated and exaggerated claims," he says.

"I do not want to see even the most energy-intensive industries leave the UK, that would be madness.

"But am I writing blank cheques to anybody who says they've got a problem? No."

File on 4 is on BBC Radio 4 on Tuesday 4 October at 20:00 BST and Sunday 9 October at 17:00 BST. Listen again via the Radio 4 website or download the podcast.

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Dhallywood's fight for survival

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5 October 2011 Last updated at 17:37 GMT By Anbarasan Ethirajan BBC News, Dhaka Sixty local films were made last year in Bangladesh The Bangladeshi film industry, known as Dhallywood, is about to face serious competition.

Ever since its independence from Pakistan in 1971, local cinema halls have been banned from showing Indian films.

It was an attempt to protect the local film-making industry which is worth $20m (￡12.9m).

But in the coming days, cinema halls here will show three Indian Bengali movies and nine more Hindi movies from Bollywood will be screened later.

Even though the move is not permanent, it has angered film-makers, producers and actors and has caused a fight between them and the theatre owners.

"Bollywood is a big institution. Their production cost is 100 times more than our production cost. How can we compete with them?" asks Masud Parvez Sohel Rana, a well-known Bangladeshi actor and director.

"It seems to me like you are asking a flyweight boxer to fight with a heavyweight boxer," he adds.

He says even the one-off screening of Indian movies will put more pressure on the government to lift the ban permanently, and if it happens, the home-grown movie industry will vanish in no time.

Film industry leaders also warn that more than 100,000 people are dependent on the industry and their jobs could be in danger.

Huge losses

However, cinema hall owners argue that they are losing revenue because of the ban.

Bangladeshi cinema owners are keen to show Bollywood movies

It is also because of the falling number of films produced locally.

About a decade ago, Bangladesh produced about 100 movies a year.

But last year, the number dropped to about 60 and it is expected to go down further this year.

"We are not getting enough movies to screen in our cinema halls," says Iftekharuddin Naushad, who owns Madhumita cinema hall in the capital Dhaka.

"As a result, many halls have either been shut down or converted into malls."

In recent years, the number of cinema halls in Bangladesh has reduced from about 1,500 to just over 600.

Many say the business is not sustainable under present circumstances and satellite television channels have been drawing away viewers.

"Our cinema halls are running with one fourth of their capacity and we are incurring huge losses," says Ahasanullah Moni, who owns Razmoni cinema hall.

The Bangladesh Motion Pictures Exhibitors Association has been urging the government to allow Bollywood movies to be screened in local cinemas to inject new life into the business.

"We are not asking to open the floodgate by importing hundreds of films. We want to screen a certain number of good Indian movies, Bollywood films, so that we can have some healthy competition," says Mr Naushad.

Joint production

Some film critics argue that importing Bollywood movies will also have benefits by forcing Dhallywood to improve its standards.

They say the poor scripting, production and technique of Bangladeshi films are driving away viewers from cinema halls.

Bollywood movies are already shown on satellite television channels in Bangladesh.

Pirated DVDs of these films are freely available across the country with Bollywood stars like Shahrukh Khan, Salman Khan and Aishwarya Rai are more popular than local actors.

Film Meherjaan include cast and crew from Bangladesh, India and Pakistan

"Without bringing Indian films to the local market, there is no way to revitalise the industry. Actually there is no industry here," says young Bangladeshi director Rubaiyat Hossain.

To overcome the present crisis, Ms Hossain proposes more Indo-Bangla joint production.

Her critically acclaimed film Meherjaan, included cast and crew from Bangladesh, India and Pakistan.

"I don't think I could have brought my film to the present technical level, if I hadn't worked with Indian technicians," says Ms Hossain.

"I have learnt a lot by working with them and we do not have that kind of post-production facilities here in Bangladesh," she adds.

In an age of satellite channels, internet and cell phones, the demand for good and well-made movies is increasing.

So it seems Bangladeshi films cannot avoid competition for very much longer.

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Supermarket 'law shops' to open

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6 October 2011 Last updated at 00:43 GMT Under the plans consumers will be able to buy law services in supermarkets Banks and supermarkets are to be able to sell consumer legal services in England and Wales for the first time following a change in law.

The government says the new Legal Services Act will offer more choice and better value for the public.

It says it also means law firms will benefit from investment and allow them to explore new markets.

But critics have said it would undermine the quality of advice.

The government says the change would encourage economic growth in the industry and raise the profile of the UK as a first-class legal services market.

Justice Minister Jonathan Djanogly said it was a "landmark day" for the legal industry.

"Our legal services are already rated among the best in the world, used by millions of people around the globe as well as in the UK, and these changes will set them up to move to new heights. They will enable firms to set up multi-disciplinary practices and provide opportunities for growth," he said.

"Potential customers will find legal services become more accessible, more efficient and more competitive."

Legislation and regulation has restricted the management, ownership and financing of firms providing legal services for hundreds of years.

Currently, solicitors and barristers' chambers are owned by the lawyers themselves under partnerships.

Critics have dubbed the act "Tesco Law," and the move has come under attack from some lawyers, including a coalition of about 100 firms, when it was first announced in 2009.

They said it could wipe out good quality, local legal advice.

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Will NFC make the mobile wallet work?

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Southern Cross homes transferred

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30 September 2011 Last updated at 07:57 GMT Southern Cross is to be wound up by the end of the year A third of Southern Cross care homes have been transferred to new operators, the company has announced.

Southern Cross said the transfer of 250 homes would be followed by further transfers in October and November.

Southern Cross was the UK's biggest care home operator, with 752 homes, but ran into difficulties when it was unable to pay its rent to landlords.

In July, the firm said it was to cease trading after all of its landlords said they wanted to leave the group.

The first "wave" of homes have been transferred to about 18 different operators.

Its largest landlord, NHP, which owns 249 of the homes, will be included in the second wave.

NHP is forming a new company with turnaround specialists Court Cavendish to run the homes itself.

Winding up

Southern Cross said it had entered unconditional business purchase agreements covering 70% of its homes, with the remaining 30% still in progress.

It said all the homes would be transferred by the end of the year and the company would be wound up.

The company also announced the resignation of it chairman, Christopher Fisher, who stepped into the role in April to oversee the restructuring process.

"Now that the transfer of homes has commenced, I consider my role complete," Mr Fisher said.

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VIDEO: The future for in-flight movies

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Keith Wallace reports on how technology could bring about major changes to in-flight entertainment in the skies.

Airlines are looking at options to link your phone or laptop to the aircraft's entertainment system or the internet and touch-screen ordering for your drinks and snacks on board.

Get in touch with Fast Track via e-mail or Facebook.

Watch Fast Track on the BBC World News channel on Saturdays at 0430, 1230 and 1930 GMT or Sundays at 1930 GMT.

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Soros' sympathy for bank protests

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3 October 2011 Last updated at 20:34 GMT Other protests have been held in Boston, Los Angeles and Chicago Billionaire investor George Soros says he can sympathise with the ongoing protests on Wall Street, which have spread to other US cities.

He said he understood the anger at the use of taxpayers' cash to prop up stricken banks, allowing them to earn huge profits.

A large rally is planned for Wednesday in New York City, with backing from union groups.

More than 700 protesters were arrested on Saturday on Brooklyn Bridge.

The demonstrations - based at Zuccotti Park, near Wall Street and the Federal Reserve - are now entering their third week.

Answering questions during a news conference at UN headquarters on Monday, Mr Soros said: "The decision not to inject capital into the banks, but to effectively relieve them of their bad assets and then allow them to earn their way out of a hole leaves the banks bumper profits and then allows them to pay bumper bonuses."

Mr Soros was announcing a gift of $40m (￡26m) to a development project in Africa.

'Corporate zombies'

Protests continued on Monday in New York, with many under the Occupy Wall Street banner wearing make-up to pose as "corporate zombies", eating fake money.

Protesters dressed as zombies took to the streets of Manhattan on Monday

One of the protesters, John Hildebrand, 24, an unemployed teacher from the US state of Oklahoma, told the Associated Press news agency: "My issue is corporate influence in politics. I would like to eliminate corporate financing from politics."

Union members are expected to back a large rally planned for Wednesday.

Last Thursday, the United Federation of Teachers and the Transport Workers Union, which has 38,000 members, pledged support for the protests.

In Los Angeles on Monday, an anti-Wall Street demonstration was held outside the court where Michael Jackson's doctor is being tried for manslaughter.

Protests were held in recent days in Boston, Los Angeles and Chicago in front of their respective cities' Federal Reserve buildings. A march was also held in Columbus, Ohio.

A rally is planned, too, for later this month in the Canadian city of Toronto.

On Saturday, 700 protesters were arrested on the Brooklyn Bridge, where traffic was halted for several hours.

The protesters won support from actor Alec Baldwin, who posted videos on his Twitter page that had already been widely circulated.

One appeared to show police using pepper spray on a group of women, and another a young man being tackled to the ground by an officer.

"This is unsettling," Baldwin wrote. "I think the NYPD has a PR problem."

But the NYPD said the marchers had been warned many times not to stray on to the road, and released video footage on Sunday showing protesters chanting "take the bridge".

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Firms vie for UK rescue service

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5 October 2011 Last updated at 12:06 GMT The successful company would run rescue services out of four bases, including Stornaway At least four companies are competing for a contract to run part of the UK's search and rescue helicopter service.

Firms had until Wednesday to submit bids for a new five-year contract to run four coastguard rescue services in Scotland and southern England.

Bids have been submitted by Bond, Bristow, a consortium including British International Helicopters and CHC, the current coastguard contractors.

The government is to announce which has been successful by the end of the year.

The preferred bidder will take over the operation of helicopter rescue services out of bases in Portland in Dorset, Lee-on-the-Solent in Hampshire, Sumburgh in the Shetland Islands, and Stornoway in the Outer Hebrides from June 2013.

The UK's search and rescue service is currently operated out of four Maritime and Coastguard Agency (MCA) bases, six RAF ones and two Navy ones.

All four coastguard bases are run by CHC, but its contract expires next year.

The Department for Transport needed to find a contractor to run the service after plans for a private consortium to take over all 12 UK helicopter rescue bases were shelved earlier this year.

The Soteria consortium did not get the contract after admitting it had access to commercially sensitive information.

Ministry of Defence police are investigating how the information came to be in the group's possession.

This new contract is expected to plug a gap until a private finance deal is reached for the takeover of the entire search and rescue service.

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Dexia shares slump on Greece woes

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3 October 2011 Last updated at 19:56 GMT Dexia received a 6bn-euro bailout at the height of the financial crisis Dexia has called an emergency board meeting amid fears over its exposure to Greek debt.

Meanwhile, shares in the Franco-Belgian bank fell 10% on Monday after rating agency Moody's said it was reviewing Dexia for a possible downgrade.

The finance ministers of Belgium and France are meeting eurozone colleagues in Luxembourg, and are expected to discuss ways to support the bank.

Financial markets fell on news Greece would miss deficit reduction targets.

Greece announced on Sunday that the 2011 deficit was projected to be 8.5% of gross domestic product, down from 10.5% in 2010, but short of the 7.6% target set by the EU and IMF.

Write-off

The news affected financial markets across Asia and Europe, with bank shares among the hardest hit.

Eurozone banks have been hit by cash outflows since the summer amid fears that Greece, and possibly other governments, may ultimately default on their debts, and even leave the eurozone, leaving their lenders sitting on big losses.

Dexia shares initially fell 14% on news of the possible rating downgrde, and despite a rally back in later trading, they were still the worst hit in the financial sector.

Moody's cited Dexia's potential losses on a Greek debt default, as well as the bank's recent difficulties in borrowing short-term cash from markets, as reasons for the rating review.

Continue reading the main story

It was only on July 15 that the European Banking Authority [stress tests]... portrayed Dexia as one of the strongest banks in Europe”

End Quote Robert Peston Business editor, BBC News Dexia's exposure to Greek government debt totals 3.4bn euros ($4.5bn; ￡2.9bn). Its total exposure to Greece - including to private-sector Greek borrowers - is 4.8bn euros.

It has already written off 21% of its Greek debts, but market prices now suggest the eventually loss to lenders could be in excess of 50% of the amount owed by Greece.

Paris-based business newspaper Les Echos reported on Friday that the French and Belgian governments would discuss measures to shore up Dexia's balance sheet.

The bank is already partly-owned by the two governments, after it received a 6bn euros joint bailout at the height of the financial crisis in 2008.

There were reports last week that the bank could be split up, and speculation of a possible nationalisation of the bank.

Another option under consideration is the sale of Credit Local, a unit of the bank responsible for lending to French local governments.

Belgian Finance Minister Didier Reynders told Belgian radio on Friday that Dexia's shareholders should be behind the bank and be ready intervene if there was a problem.

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VIDEO: 'Tough times' for climate finance

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5 October 2011 Last updated at 01:10 GMT Help

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Japan tourism industry recovering

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6 October 2011 Last updated at 11:20 GMT Himeji Castle is one of 14 World Heritage sites in Japan Japan's tourism industry is showing signs of recovery following the devastating tsunami and earthquake last March, according to a report.

The World Travel & Tourism Council said that foreign visitor numbers in June and July were 36% lower than for the same period last year.

In comparison, visitor numbers fell 62% in April and 50% in May year-on-year.

"So, while a full recovery is still some way off, the situation has improved significantly," the WTTC said.

The council's president and chief executive David Scowsill said in the report: "As the world's third largest travel and tourism economy, the recovery of Japan is one of the most compelling issues facing the industry anywhere in the world."

Prior to the earthquake and tsunami on 11 March, Japan's travel and tourism industry was expected to provide nearly 1.5 million jobs in 2011 and to directly contribute 2.2% of total Japan's gross domestic product.

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No temporary tax cuts - Osborne

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3 October 2011 Last updated at 13:33 GMT By Brian Wheeler Political reporter, BBC News, in Manchester Chancellor George Osborne's full speech to the Conservative Party conference in Manchester.

Chancellor George Osborne has said taxes will only be cut when the government can afford to do so, in a speech to the Conservative conference.

Mr Osborne has found ￡805m to freeze council tax in England in 2012-13 - saving people ￡72 a year.

But he stressed that money is still tight and there will be no deviation from his deficit reduction plan.

He said solving the eurozone crisis remains the most important factor in kick starting growth in the UK.

The chancellor has been under pressure from Labour to cut VAT to inject money into the economy - and from senior figures in his own party to scrap the 50p top rate of income tax.

'Debt crisis'

But in a sober speech to party activists, the chancellor said it would be wrong to borrow money to fund temporary tax cuts or increase public spending.

He did, however, announce that the Treasury would engage in "credit easing" - a move aimed at cutting the cost of borrowing for hard-pressed businesses, as well as improving access to loans.

The BBC's business editor Robert Peston said the move, which would involve the public sector buying bonds issues by companies, was "potentially very significant" but full details would not be revealed until the chancellor's autumn statement in November.

In his speech, Mr Osborne said he had "thought hard" about what more can be done to boost growth and explored "every single option" - but "borrowing too much is the cause of Britain's problems, not the solution".

Continue reading the main story Nick Robinson BBC Political Editor

The most significant announcement in the chancellor's speech is also the one fewest will understand.

It is his pledge that the Treasury will engage in "credit easing" - ie some as yet unspecified way to underwrite loans to small businesses who are struggling to get credit now.

The speech that they are quoting at the top of government is by Adam Posen (a member of the Bank of England's interest rate-setting committee).

Although I'm told that his proposal for a new bank may take too long to implement.

"We would be risking our nation's credit rating for a few billion pounds more, when that amount is dwarfed by the scale and power of the daily flows of money in the international bond markets, swirling around ready to pick off the next country.

"We will not take that risk. We are in a debt crisis, it is not like a normal recovery. You can't borrow your way out of debt."

And he added: "I'm a believer in tax cuts - permanent tax cuts paid for by sound public finances.

"Right now, temporary tax cuts or more spending are two sides of exactly the same coin, a coin that has to be borrowed - more debt that has to be paid off."

Mr Osborne said Britain's economic troubles were caused by the "catastrophic mistakes" of the previous Labour administration, as well as banks which "let down their customers, let down their shareholders and let down this country".

'Underspend'

He said the government is helping businesses by keeping interest rates low - "the most powerful stimulus that exists" - but borrowing billions of pounds more would put that at risk.

Mr Osborne's speech comes as the Institute of Directors called for a fresh effort to boost economic growth in the UK.

The chancellor announced increased investment in scientific research and the extension of mobile phone coverage to six million people - as well as extra cash from a Whitehall "underspend" to fund a council tax freeze.

The government cannot force councils to freeze bills but it is offering to give those that limit spending rises to 2.5% the money they need.

Money would also be offered to the Scottish and Welsh administrations, which will choose how it is spent.

Speaking earlier to BBC News, Mr Osborne said a solution to the eurozone debt crisis must be found by the time the Group of 20 nations meet next month and failure to do so would be "terrible not just for Britain, not just for Europe, but for the entire world economy".

The chancellor, who is travelling to Luxembourg for a meeting with European finance ministers, told BBC News that the 17 eurozone nations meeting in Luxembourg on Monday must decisively figure out how to handle Greece's debts, and urged them to extend the size of their bailout fund.

Credit rating

The chancellor's speech comes as Standard and Poor's said it would hold the UK's credit rating at the highest possible level in light of its "wealthy and diversified economy" and said the outlook remained "stable".

But the agency, which released the announcement just as Mr Osborne took to the stage in Manchester, said the government's efforts to correct the UK's public finances would "weigh on the economy".

For Labour, shadow Treasury minister Chris Leslie said it was "staggering" the speech did not give more attention to the "growth problem".

He said: "His speech really seemed incredibly complacent and quite frankly out of touch, out of touch with the realities of some of the costs that ordinary people face, the difficulties that businesses are facing and no plan for growth."

But Andrew Tyrie, the senior Conservative backbencher who said at the weekend that the government was not doing enough to promote economic growth, told the BBC: "I think it's a huge step forward, and will be widely welcomed not only in the party, but by all those people in the country who also need a growth strategy to help them move forward."

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UK's AAA rating confirmed by S&P

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3 October 2011 Last updated at 13:23 GMT The news from S&P is likely to be welcomed by Chancellor George Osborne Ratings agency Standard & Poor's has confirmed the UK's AAA credit rating.

S&P said that despite sluggish growth, the UK's "diversified" economy and "flexible" fiscal and monetary policy would enable it to weather a slowdown.

The news will be welcomed by Chancellor George Osborne, who on Monday told the Conservative Party conference that he would not change economic course.

S&P said its AAA rating could be re-evaluated if the government weakened its resolve to reduce public debt.

An AAA rating is the highest possible. Any downgrade would raise Britain's borrowing costs, and also provide ammunition for the coalition government's opponents.

'Lacklustre' Continue reading the main story

The official assumption that the private sector will quickly step in to replace the withdrawal of public spending may prove optimistic, especially given weakening external demand”

End Quote S&P In an announcement, S&P said it had "affirmed its AAA long-term and A-1+ short-term sovereign credit ratings on the UK. The outlook remains stable."

It said the decision reflected the country's "wealthy and diversified economy, fiscal and monetary policy flexibility, and relatively adaptable product and labour markets".

S&P added: "In addition, we view the UK as having deep capital markets with strong demand for long-dated gilts by domestic institutional investors.

"There is also demand from non-residents for sterling-denominated UK government debt, which provides some diversification to the UK's investor base."

The agency said, however, that the UK's recovery has been "lacklustre".

It added: "The official assumption that the private sector will quickly step in to replace the withdrawal of public spending may prove optimistic, especially given weakening external demand."

The decision to hold the UK's rating comes just over a month after S&P shocked the markets with its first ever downgrade of US debt, cutting it from AAA to AA plus.

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Premier Foods in profit warning

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7 October 2011 Last updated at 07:14 GMT Mr Kipling is one of the eight "power brands" the group is investing in Premier Foods, the owner of brands such as Hovis, Bisto and Mr Kipling, has warned its full-year trading profit will fall below expectations.

The UK's biggest food manufacturer had been looking at a profit of between ￡214m and ￡232m.

But the company said current trading was "disappointing" and "significantly behind our expectations".

Sales in the third quarter fell 3.6% on a year ago, while the group's market share declined by 1.9%.

The group said it was in "constructive dialogue" with banks on refinancing.

New chief executive Michael Clarke has outlined five key priorities for the business in the short term.

These are agreeing a refinancing plan, improving sales and marketing, reducing the size of Premier's portfolio, reducing costs, and investing in eight "power brands" that they feel have the best growth prospects.

The eight brands are Ambrosia, Batchelor's, Bisto, Hovis, Lloyd Grossman, Mr Kipling, Oxo and Sharwood's.

Mr Clarke, who had previously been president of Kraft Foods Europe, took the helm at Premier Foods on 1 September.

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Credit agencies 'have failures'

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30 September 2011 Last updated at 17:10 GMT The report details a number of failures at the credit rating agencies The Securities and Exchange Commission (SEC) has discovered "apparent failures" at 10 credit rating agencies.

It said it was concerned that the agencies - including Standard & Poor's (S&P) and Moody's - were not making timely and accurate disclosures or managing conflicts of interest.

The SEC said it expected the agencies to "address the concerns".

Credit rating agencies have been criticised for their role in the financial crisis that started in 2007.

This is because a root cause of the crisis was the bad US mortgage debt that was resold around the world, debt that was given top credit ratings by the agencies.

The agencies were accused of having conflicts of interest, because they were paid by the banks that sold the debt.

'Monitoring progress'

The three largest credit rating agencies are S&P, Moody's and Fitch.

Continue reading the main story Use the dropdown for easy-to-understand explanations of key financial terms:AAA-rating GO The best credit rating that can be given to a borrower's debts, indicating that the risk of borrowing defaulting is miniscule.The SEC did not directly link specific failings to specific agencies, but it said that two of the big three did not have specific policies in place to manage conflicts of interest where they rated financial products issued by banks in which the agencies were large shareholders.

The SEC said that one of the three largest agencies was not correctly following rating methodologies.

It said the agency in question was slow to discover, disclose and fix the methodology errors, and may have let business interests influence its mistakes.

It added that its findings did not constitute a "material regulatory deficiency" at the SEC.

"We expect the credit rating agencies to address the concerns we have raised in a timely and effective way, and we will be monitoring their progress as part of our ongoing annual examinations," said Norm Champ, deputy director at the SEC's Office of Compliance, Inspections and Examinations.

US downgrade

The SEC was given more powers to regulate credit rating agencies in the Dodd-Frank Wall Street Reform and Consumer Protection Act, which was passed in July of last year.

The other credit rating agencies covered in the SEC's annual report are AM Best, DBRS, Egan-Jones, Japan Credit, Kroll Bond, Morningstar, and Rating and Investment Information.

S&P downgraded the US's credit rating in August by one notch from AAA to AA+.

Explaining the move, it said the government was not doing enough to reduce the country's budget deficit.

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Tributes flood in for Steve Jobs

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6 October 2011 Last updated at 18:28 GMT 1984-2011: Three decades of innovation at Apple

World and business leaders have paid tribute to Apple co-founder Steve Jobs, who has died at 56 after a long battle with pancreatic cancer.

US President Barack Obama and Russian counterpart Dmitry Medvedev said Mr Jobs had changed the world.

Microsoft's Bill Gates said it had been "an insanely great honour" to work with him. Facebook founder Mark Zuckerberg remembered his "mentor and friend".

The Twitter microblog site struggled to cope with the traffic of tributes.

Apple itself said Mr Jobs had been "the source of countless innovations that enrich and improve all of our lives" and had made the world "immeasurably better".

Thousands of celebrities and ordinary people went on Facebook, Twitter and YouTube to record their tributes and memories of the man behind products such as the iPod, the iPhone, the iPad.

The death of Mr Jobs could create a record for Twitter traffic.

Thousands of people all over the world have also been attending Apple stores to leave flowers, notes, and apples with a bite taken from them to mimic the company's logo.

Apple's leading rivals such as Microsoft, Google, Sony and Samsung all chipped in with glowing tributes.

GS Choi, chief executive of Samsung, which is embroiled in a major court battle with Apple on patents, said Mr Jobs was an "innovative spirit" who "introduced numerous revolutionary changes to the information technology industry".

In his statement, Bill Gates said: "The world rarely sees someone who has had the profound impact Steve has had, the effects of which will be felt for many generations to come. For those of us lucky enough to get to work with him, it's been an insanely great honour."

Continue reading the main story Peter Jackson BBC News, London

A single bunch of flowers - still in their plastic wrapper - were the only outward sign of the passing of Steve Jobs outside Apple's flagship London store in Covent Garden.

Ginnie Leatham, a brand director in the media industry, from West Sussex, hand delivered a single red Gerbera to staff inside the store.

She said: "I was really sad when I woke up this morning. I had a real lump in my throat and felt quite tearful.

"I was thinking about it on my commute into work. I always walk past the Apple store and I just thought 'I'm going to stop'.

Mr Zuckerberg wrote on Facebook: "Steve, thank you for being a mentor and a friend. Thanks for showing that what you build can change the world. I will miss you."

His comments were "liked" by more than 200,000 people within hours.

In his own tweet, Barack Obama wrote: "There may be no greater tribute to Steve's success than the fact that much of the world learned of his passing on a device he invented."

Web users in China have reportedly posted almost 35 million online tributes.

Tim Cook, who was made Apple's CEO after Mr Jobs stood down in August, said his predecessor had left behind "a company that only he could have built, and his spirit will forever be the foundation of Apple".

UK Prime Minister David Cameron said: "Steve Jobs transformed the way we work and play; a creative genius who will be sorely missed."

New York mayor Michael Bloomberg said that the US had "lost a genius who will be remembered with Edison and Einstein".

News Corp's Rupert Murdoch said: "Steve Jobs was simply the greatest CEO of his generation."

Apple co-founder Steve Wozniak will remember Mr Jobs for "knowing what made sense in a product"

People also gathered outside Mr Jobs's home in California's Silicon Valley to lay floral wreaths, while flags were flown at half mast outside the Apple headquarters in Cupertino, California.

A statement from Mr Jobs's family said they were with him when he died peacefully on Wednesday.

"In his public life, Steve was known as a visionary; in his private life, he cherished his family," they said, requesting privacy and thanking those who had "shared their wishes and prayers" during his final year.

Face of Apple

Mr Jobs built a reputation as a forthright and demanding leader who could take niche technologies - such as the mouse and graphical user interface, using onscreen icons rather than text - and make them popular with the general public.

Continue reading the main story Born in San Francisco in Feb 1955 to students Joanne Schieble and Syrian-born Abdulfattah Jandali - adopted by a Californian working class coupleHad a summer job at Hewlett-Packard while at school - later worked at AtariDropped out of college after six months and went travelling in India, where he became a Buddhist Launched Apple with school friend Steve Wozniak in 1976 - first Apple computer sold the same yearLeft Apple amid disputes in 1985 but returned in 1996 and became CEO in 1997Bought Pixar animation company in 1986 for $10mMarried in a Buddhist ceremony in 1991 - has three children with his wife and a daughter from a previous relationshipHad a personal wealth estimated at $8.3bn (￡5.4bn) in 2010Diagnosed with pancreatic cancer in 2003, and after three periods of sickness leave, resigns as Apple CEO in August 2011He introduced the colourful iMac computer, the iPod, the iPhone and the iPad to the world. His death came just a day after Apple unveiled its latest iPhone 4S model.

With a market value estimated at $351bn (￡227bn), Apple became the world's most valuable technology company.

More than almost any other business leader, Mr Jobs was indistinguishable from his company, which he co-founded in the 1970s.

As the face of Apple, he represented its dedication to high-end technology and fashionable design.

And inside the company he exerted a level of influence unheard of in most businesses.

Mr Jobs also provided major funding to set up Pixar Animation Studios.

In 2004, Mr Jobs announced that he was suffering from pancreatic cancer. He had a liver transplant five years later.

In January, he took medical leave, before resigning as CEO in August and handing over his duties to Mr Cook.

In his resignation letter, Mr Jobs said: "I believe Apple's brightest and most innovative days are ahead of it. And I look forward to watching and contributing to its success in a new role."

However, Mr Jobs stayed on as Apple's chairman.

Despite his high profile, he remained fiercely protective of his private life.

He married his wife Laurene in 1991, and the couple had three children.

Mr Jobs also leaves a daughter from a previous relationship, and as an adult he discovered that he had a biological sister, US novelist Mona Simpson.

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Lecturers' pension action resumes

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6 October 2011 Last updated at 23:01 GMT The dispute could escalate to new strikes, the UCU said Lecturers at 67 UK universities are going to re-start a programme of industrial action from 10 October over changes to their pension scheme.

They will start a "work to contract" if the universities do not resume negotiations over the pension changes.

Substantial cuts to the benefits of the Universities Superannuation Scheme (USS) were introduced on 1 October.

The University and College Union (UCU) said 40,000 members at the affected universities might eventually strike.

The union's general secretary, Sally Hunt, said the aim was to force the university employers to renegotiate some of the changes they have just brought in.

"There are key areas that we believe need to be looked at again," she said.

"Examples being accrual rates and another example being redundancy payments for those who are 50 and 55."

The dispute affects staff at the 67 traditional universities which were in existence before 1992, when the former polytechnics and higher education institutions were upgraded to university status.

'Sustained campaign'

The industrial action may be a precursor to more widespread action which has been threatened by unions with members in other parts of the public sector, such as local government, the civil service, NHS, schools, police and the fire service.

The government is trying to press ahead with substantial increases in staff pension contributions, to be followed by full-scale conversion of most of the schemes from their current final-salary basis to become less generous career average schemes.

The lecturers' industrial action will start with a "work to contract" which the UCU said would be the start of a "sustained campaign of industrial action".

Depending on local employment conditions, this might include union members working no more than their contracted hours, not covering other lecturers' classes, and refusing to carry out any additional duties or attend voluntary staff meetings.

"This will affect the universities in very different ways," said a spokesman for the employers body the UCEA (Universities and Colleges Employers Association).

"The changes would be considered moderate by many as they include the retention of a final salary pension for all existing USS members."

The UCU said if the employers refused to start negotiating again at a scheduled meeting later this month, the action might be escalated to a boycott of internal administration, student assessments and even rolling strikes.

Second campaign

The USS pension scheme has 137,000 contributing members at nearly 300 education institutions.

One-day strikes in March, at universities around the country, failed to deter the employers from pressing ahead with the bulk of their pension changes, which have been in train for three years.

So the UCU held a second industrial action ballot last month, which produced a 77% vote in favour on a 42% turnout - even higher than in the union's first ballot earlier this year.

The union said the some of its members would lose ￡100,000 of their pension income over their prospective retirement as a result of the changes.

It said the employers' private aim was to make huge savings by cutting their contribution rate from about 16% of staff salaries to just 10%.

This might be achieved, the UCU said, if the university employers were able, in a few years' time, to impose the career average scheme for new recruits on existing staff as well.

Big changes

The USS changes were brought in from 1 October in a separate process to the one the government has initiated for the other big public sector pension schemes.

The university pension changes were changes were:

A normal pension age of 65 came in for new entrants and for the future service of many existing members. The exceptions to this are those members who were in the scheme before 1 October - and who were also aged 55 or over at that date. They will be exempt from the normal reductions in their accrued pensions that will be imposed if they take their pensions before the age of 65. The normal USS pension age will rise in line with any increases in the state pension age, which is scheduled to rise to 66 by 2020. It is important to note that this will only affect pension built up after April 2020.The employee contribution rate for members of the final-salary section has gone up from 6.35% to 7.5%. Pension increases (for pensions in payment and deferred pensions) will now be inflation-proofed in line with increases in the consumer prices index (CPI) up to 5% a year. But for pensions earned after 1 October 2011, if inflation is more than 5% but less than 15%, the increase in pension will be 5% plus half of the increase above that level. And if inflation is more than 15%, there will be no extra pension increases - they will be capped at 10% a year.A career-average revalued earnings (CARE) benefits structure has been introduced for new entrants. The benefits are still be based upon a 1/80th accrual rate and cash lump sum of three times the pension.The contribution rate for members of the new CARE section is 6.5%. If the overall cost of the scheme rises above 23.5% of salaries, then "cost sharing" will be introduced. This means any further increases in contributions will be shared in the ratio 65:35 between employers and employees respectively.

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Increase in UK mortgage approvals

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29 September 2011 Last updated at 09:29 GMT The figures suggest a pick up in sales may lie ahead The number of new mortgages approved, but not yet lent, for home buyers in August rose to its highest level since December 2009.

The Bank of England said 52,410 mortgages were approved last month.

That was nearly three thousand more than in July, and the highest number since December 2009.

The figures suggest that a recent slight relaxation in lending criteria by banks and other lenders will lead to higher sales in the coming months.

Adrian Coles, director-general of the Building Societies Association, said: "Approval figures continue to look promising as consumers take advantage of the competitive mortgage rates."

"However, the outlook for the economy has deteriorated over the past month as has consumer confidence, which could well spill into the housing market, causing further weakness," he warned.

Lending squeeze Continue reading the main story

We are telling people to be realistic. If the price is right then it will sell”

End Quote David Sharpe, Sales negotiator, Dowen estate agents, Hartlepool Average house prices have been stagnant across the UK this year, with both the Nationwide and the Halifax reporting little change in the past few months.

In its latest survey, the Nationwide said house prices had continued to "tread water" in September. House prices rose by 0.1% in the month, Nationwide said, but were 0.3% lower than a year ago.

The number of house sales fell in August, according to the Bank of England's own figures published last week.

They dropped by 6,000 from July to 78,000 in August which was, in turn, 3,000 lower than in August last year.

Approvals are traditionally a good indicator of near term trends in sales, so the latest approvals data suggests that sales funded by mortgage borrowing may pick up this autumn.

But on Wednesday the Bank of England said banks had told it they may face a renewed squeeze on their ability to lend.

In its quarterly Credit Conditions Survey, the Bank said it had been told by some big lenders that they might find increasingly hard to raise the necessary funds on the wholesale financial markets to lend to home buyers.

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Spain halts lottery privatisation

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29 September 2011 Last updated at 12:18 GMT The national lottery is famous for its El Gordo, or fat one, draw Spain has stopped the part-privatisation of the national lottery which had been expected to raise billions of euros.

The sale of up to 30% of the national lottery was postponed because the market valuation had been too low, the finance ministry said.

It intends to start the sale process again when conditions improve.

Spain had hoped to sell off a number of its assets, including 49% of the airports operator, to cut its deficit.

The lottery sale had been expected to raise several billion euros and would have been the country's biggest privatisation. It would also have created one of the biggest firms on the Spanish stock exchange's Ibex index.

It had been approved by the Spanish government just last week and presentations for potential investors had been expected to start at the beginning of October.

"Rather than have it valued for less than we had expected and for less than we believe to be the fair value, we decided to delay this listing," Finance Minister Elena Salgado told Spanish radio.

"Among individual investors there was and still is an extraordinary interest and among institutional investors too, but at prices that we did not want to accept."

But analysts suggested that opposition to the sale from the Popular Party, who are considered likely winners of the general election in November, may have played a part in the decision to pull it.

Elena Salgado added that the sale of almost half of Aena, the airports operator, would still go ahead.

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Yahoo! surges on takeover rumour

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5 October 2011 Last updated at 21:40 GMT Yahoo is one of the internet's best-known brands Shares in the internet portal firm Yahoo have leapt 10% on rumours that Microsoft is considering a second attempt at a takeover.

Microsoft, which last bid in 2008, joins a host of other companies which are considering buying Yahoo, one of the internet's best-known brands.

China's giant internet company Alibaba has already said it might buy Yahoo.

Rumours of a bid from Vodafone also pushed shares in BlackBerry maker, Research in Motion, 12% higher.

Yahoo shares jumped 10.1% to close at $15.92 and Microsoft shares ended 2.2% higher at $25.89.

Yahoo's current market value is $20bn (￡13bn), compared with Microsoft's previous bid of around $45bn.

Neither party has made any official comment.

Microsoft is said to be divided as to whether it would make sense to mount such a bid.

Reasons in favour include the ability to beat AOL as a competitor by creating a stronger web portal.

Market share

Microsoft already has an agreement with Yahoo involving its Bing internet search engine, which powers Yahoo's search but gives 88% of advertising revenue back to Yahoo.

Combing the two could give Yahoo 30% of the US search market, according to analysts.

According to the latest figures from research firm comScore, Google has 64.8% of the US search market, Yahoo has 16.3% and Microsoft 14.7%.

But Yahoo is seen as lacking in growth potential.

Early last month, Yahoo fired its chief executive in a row over the company's future direction.

It said last month that it had received "inbound interest" from a number of parties.

Sid Parakh, analyst at fund firm McAdams Wright Ragen, told the Reuters news agency: "There are many reasons why this thing probably makes sense.

"If you strip out the variety of assets Yahoo owns, you are pretty much paying nothing for the core business."

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European financial tax 'bad idea'

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30 September 2011 Last updated at 12:40 GMT Mr Borg said Sweden's experience of a financial transaction tax was "very bad" A European financial transaction tax is unlikely to raise the sums of money projected as it would encourage firms to move overseas, Sweden's finance minister has told the BBC.

Anders Borg said Sweden abandoned its own transaction tax after most trading companies left the country.

The tax "had a very detrimental impact on our financial markets", he said.

If the European Union introduces the tax, firms could simply move to New York or Asia, Mr Borg said.

'Very bad tax'

Sweden introduced a transaction tax on financial firms in the 1980s.

"Between 90%-99% of traders in bonds, equities and derivatives moved out of Stockholm to London," Mr Borg said.

Continue reading the main story

We are basically taxing growth away from Europe, and that is not a very good idea”

End Quote Anders Borg Swedish Finance Minister "The impact was basically that we did not get any tax revenue. It brought in very little tax money while moving most of the businesses outside of Sweden.

"We abandoned [the tax] because it was a very, very bad functioning tax."

The fact that the US has said it has no intention of introducing a similar tax, meant that firms would be free to move to other financial centres, Mr Borg said.

"So we are basically taxing growth away from Europe, and that is not a very good idea.

"I hope [policymakers] realise they might be losing out themselves. This is not a stable tax base."

Mr Borg said he was in favour of making the banking system pay, and making it more robust, but that any measures designed to bring this about should not push firms out of Europe.

Hard hit

The UK has also been vocal in its opposition to the tax proposed by the European Commission earlier this week.

A spokesperson for the UK Treasury said it would "absolutely resist" any tax that was not introduced globally.

London would be hardest hit by the tax as the majority of banking transactions in Europe come through the city.

However, a number of other European countries are in favour of the tax, including France, Austria, Belgium, Norway and Spain.

The commission has said it will look at implementing the tax just in the 17 member states of the eurozone if other EU members oppose it.

Under the proposals, the financial tax would be levied at a rate of 0.1% on all transactions between institutions when at least one party is based in the EU. Derivative contracts would be taxed at a rate of 0.01%.

The tax would raise about 57bn euros ($78bn; ￡50bn) a year and would come into effect at the start of 2014, the commission said.

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VIDEO: Malaysia's hard-up pensioners

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AppId is over the quota
5 October 2011 Last updated at 01:36 GMT Help

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Greece to miss targets on deficit

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2 October 2011 Last updated at 20:27 GMT The Greek austerity measures are hugely unpopular and have led to a wave of strikes and protests Greece has said its budget deficit will be cut in 2011 and 2012 but will still miss targets set by the EU and IMF.

The 2011 deficit is projected to be 8.5% of GDP, down from 10.5% in 2010 but short of the 7.6% target.

The government, which on Sunday adopted its 2012 draft budget, blamed the shortfall on deepening recession.

The figures come as inspectors from the IMF, EU and European Central Bank are in Athens to decide whether Greece should get a key bail-out instalment.

Greece needs the 8bn euros (￡6.9bn; $10.9bn) instalment to avoid going bankrupt next month.

Bankruptcy would put severe pressure on the eurozone, damage European bank finances and possibly have a serious knock-on effect on the world economy.

'Unanimously approved'

The Greek finance ministry said on Sunday that its unpopular austerity measures would have to be adhered to even if the latest targets were to be met.

It said: "Three critical months remain to finish 2011, and the final estimate of 8.5% of GDP deficit can be achieved if the state mechanism and citizens respond accordingly."

It released figures for 2012's projected deficit, putting it at 6.8% of GDP, also short of the 6.5% target.

The figures came as the government met to approve Greece's draft budget for next year.

It blamed an economic contraction this year of 5.5% - rather than May's 3.8% estimate - for the failure to meet deficit targets.

The cabinet meeting also approved a measure to put 30,000 civil service staff on "labour reserve" by the end of the year.

This places them on partial pay with possible dismissal after a year.

"The labour reserve measure was approved unanimously," one deputy minister told Reuters.

This measure, along with other wage cuts and tax rises, have been part of a package intended to persuade the so called "troika" of the EU, IMF and ECB to continue with its bail-out.

The inspectors will report back to EU finance ministers soon but analysts believe they have little choice but to approve the latest tranche.

The Greek austerity measures are hugely unpopular at home and have led to a wave of strikes and protests.

Many Greeks believe the austerity measures are strangling any chance of growth.

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VIDEO: Why is Germany still in thrall to European Project?

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Newsnight's Peter Marshall reports on why, despite clear public anger about the prospect of continued financial bailouts for the euro zone, Germans apparently still in thrall to the European Project.

Broadcast on Thursday 29 September 2011.

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Qantas boss threatened in job row

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5 October 2011 Last updated at 07:33 GMT Mr Joyce has received a threatening letter about his role in the dispute Qantas says its chief executive, Alan Joyce, has received a threatening letter related to its current industrial dispute.

The letter comes amid a row between the Australian airline and unions on a restructuring and outsourcing plan that could lead to job cuts.

But officials from two unions have raised doubts about the authenticity of the letter, saying that it was not clear who sent it.

Police are investigating the matter.

According to reports in the Australian media, the letter went on to read: "The unions will fight you... Qantas is our airline, started and staffed by Australians, not foreign filth like you."

Irish-born Mr Joyce has been Qantas' chief executive since November 2008.

Luke Enright of Qantas confirmed to the contents of the letter to the BBC, though he refused to comment further on the matter.

Unions' anger However, the Transport Workers Union (TWU) and Australian Licensed Aircraft Engineers Association (ALAEA) accused the airline to turning the issue into a public relations exercise.

"We are unsure whether it came from an angry employee, or it may have been fabricated by the Qantas management to gain sympathy from the public," Steve Purvinas, federal secretary of ALAEA, told the BBC.

TWU's national secretary, Tony Sheldon, said: "This is an unsubstantiated piece of correspondence, that was either created by Qantas or sent by any of its 35,000 employees or people outside the company."

They said the airline had been losing public support because of its plans to restructure its business and relocate jobs outside Australia and as a result, it was trying to garner public sympathy using such tactics.

"The question here is, did they go to the police first or the media," TWU's Mr Sheldon said. "They released the letter to the media even before their staff knew about it."

Flights cancelled

The airline and the union members have been involved in a dispute that has seen Qantas' services being disrupted.

Last month, Qantas cancelled 28 flights, while another 27 were delayed after ground staff stopped work for four hours at all major Australian airports.

The union members have been striking against the planned restructuring that will see the airline's operations expand in Asia.

Qantas has also announced plans to launch two new airlines, including a budget carrier based out of Japan. At the same time, Singapore and Malaysia are being talked about as potential hubs for the other venture.

There have also been concerns that the outsourcing of certain jobs could result in as many as 1,000 job cuts in Australia.

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Eurozone manufacturing contracts

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3 October 2011 Last updated at 09:11 GMT Markit says the German economy, the eurozone's main engine of growth, is stalling Manufacturing in the eurozone shrank at its fastest pace in two years in September, a business survey has shown.

Markit's purchasing managers' index (PMI) of activity dropped to 48.5 last month, from 49 in August. A reading below 50 indicates contraction.

That is the second consecutive month that eurozone manufacturing has shrunk.

Greece, the focal point of the eurozone's debt crisis, saw its output contract for the 25th consecutive month.

"Manufacturers are reporting the worst business conditions for over two years, facing a combination of lacklustre domestic demand and falling export sales," said Chris Williamson, Markit's chief economist.

The region has been weighed down as leaders struggle to prove that heavily indebted countries, led by Greece, will be able to avoid defaulting on their debts.

This has led to bailouts for Greece, the Irish Republic and Portugal - but the crisis has continued and has weighed on bonds and stocks globally.

Even in Germany, the engine of European economic growth, Markit's survey showed factory activity has come to a standstill.

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Where are the Occupy Wall Street protests heading?

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3 October 2011 Last updated at 22:58 GMT By Laura Trevelyan BBC News, New York Commentators are wondering if this movement could become a "Tea Party" for the left As a man known as Mercury puts the finishing touches to his corporate zombie make up, he explains why he's joined the anti-capitalist protests here in the shadow of Wall Street.

"We are inspired by the Arab Spring. Americans have rights but they're too often apathetic."

Welcome to Zuccotti Park, where the leaderless protest is now entering its third week.

Sophie is here to protest about the execution of a Georgia man, Troy Davis.

Will Estrella believes this is his generation's revolution.

And Brian Phillips, a marine turned housing community official, wants to see the Federal Reserve abolished.

The protesters aren't unified in their motivations or their demands, but they're tapping into discontent about inequalities in an America still struggling after one recession and fearful about entering a second.

'We're the 99%'

Brian Phillips, who wears his marine dog tags round his neck, says he has been lied to all his life by officialdom and he's had enough.

The protesters want a change in political and economic culture

That's what made him leave Washington state and his job at a low-income housing unit to come here.

Now Brian is efficiently dealing with media requests.

I tell him that I want to speak to one of the 700 arrested on Brooklyn Bridge on Sunday.

"Arrested Sunday!" calls Brian. Two young men step forward for me to interview.

That's how we communicate, Brian explains, with marine-like efficiency, as to his left a group start the day with yoga.

Police officers stand at the edges of the protesters' encampment, and today at least relations seem cordial enough.

But on Saturday the demonstrators say the police ushered them on to a roadway section of the Brooklyn Bridge rather than the pedestrianised walkway, fenced them in and then arrested them for disorderly conduct.

The NYPD says this isn't correct, and has released a video of the police telling the protesters not to go on the roadway section of the bridge.

Freelance photographer Will Estrella says the police clearly guided him and others on to the bit of the bridge they weren't meant to be on.

The NYPD's tactics for policing this protest have been called into question after a high ranking officer was seen on a YouTube video using pepper spray on demonstrators the weekend before last.

Will Estrella wants this to be a peaceful protest, a theme echoed across Zuccotti Park.

Most of the protesters I saw camping out at Zuccotti Park were young - in their mid-20s. Many have gone from job to job since graduating.

They have known difficult economic times in young adulthood, and they don't like a system which to them seems to reward what they call the "1%" of society.

"We're the 99%", they say.

Their manifesto supports the people of the world against corporate greed, and calls for people to assert their power and create a process to address the problems we face.

In the centre of Zuccotti park, amid the sleeping bags, is the communal food area.

Ange, a 24-year-old redhead who does freelance art work in Manhattan, is helping organise the food for the protesters.

"I like communal decision making, something that comes from the bottom up," she explains. Ange isn't sure how long she'll be here, but she's pleased to be part of a grassroots movement.

Where will this lead? No-one knows. But the protesters say their enthusiasm won't fade with the autumn sunshine.

The question is whether this ad hoc group of protesters - who feel they're getting the short end of the stick while corporate America hoards money - could morph into a political movement, a kind of left wing Tea Party.

The city's unions are now starting to back the protesters, something they didn't at first, suggesting they see the potential here.

Jesse Cooper Levy, a bearded 24-year-old, hopes this movement will influence politics.

His particular concern is what he sees as the corrupting influence of corporate lobbyists on Washington DC.

"What do you want?" I ask the protesters. "Change", comes the answer - a change in political and economic culture.

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New Sunderland position for Quinn

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AppId is over the quota
Quinn will focus on Sunderland's business interests overseas Niall Quinn is leaving his role as chairman at Sunderland to take charge of "international development".

Owner Ellis Short will take over as chairman while Quinn focuses on the club's business interests overseas.

Discussing Short, Quinn said: "He'll be a fantastic chairman and taking this role on speaks volumes about his ambition for the club."

Short said: "I can assure our fans that it's the same group of people continuing to lead the club."

Continue reading the main story

It's out of the blue. There's been a lot of restructuring behind-the-scenes at Sunderland. It's an interesting move for Quinn; he's very well respected. Maybe it's a precurser for other big changes that might be made at the club

Former Sunderland striker Marco Gabbiadini on BBC Radio Newcastle

He added: "With financial fair play rules coming into effect, it is essential for the long-term success of the club that we develop interests on a global scale and there's no one better than Niall to sell the ethos of Sunderland to an international audience.

"He has been keen to drive this change for some time and I agree that it's the way forward for us now.

"Assuming the position of chairman is a great honour and I will treat the role as guardian of this club with the utmost respect."

Quinn has been linked with the vacant chief executive role at his former club Manchester City recently.

He added to Sunderland's official website: "This is a great opportunity for us to make the club stronger and I'm delighted that Ellis has agreed to support the plan."

Continue reading the main story Becomes Sunderland chairman in July 2006Appoints Roy Keane as manager a month later, leading to the club's promotion to the Premier League that seasonReplaces Keane with Ricky Sbragia in winter 2008 then brings in current boss Steve Bruce during summer 2009 as club stays in top flight

Sunderland chief executive Margaret Byrne added: "Niall is widely known and hugely respected throughout the world of football.

"His profile, coupled with his vast knowledge of the game and the business, means he is perfectly placed to bring Sunderland to the forefront internationally.

"This new challenge begins immediately as he represents the club at the prestigious Leaders in Football conference in London this week, after which he travels to Korea with [manager] Steve Bruce and Mike Farnan, international marketing director.

"Trips to territories such as Vietnam, India, Abu Dhabi and Africa are also taking place in the coming months."

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Alexon jobs saved as group sold

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29 September 2011 Last updated at 13:49 GMT Continue reading the main story Women's clothing retailer Alexon has been sold to a private equity firm in a deal expected to secure the jobs of its 2,700 staff.

The struggling retailer said it had failed to find necessary funding and had appointed KPMG as administrators.

KPMG then sold the business to Sun Capital in a process known as a pre-pack administration.

Alexon, which owns a number of brands including Ann Harvey and Eastex, issued a profits warning earlier this month.

It said trading conditions had deteriorated and forecast that its performance this year would be "well below" expectations.

The group's stock market listing and trading in its shares were suspended on Thursday morning.

'Exciting acquisition'

Alexon had been looking to raise the money it needed to continue trading by looking for buyers for all of the company or one of more of its brands.

"Unfortunately these options have failed to reach a satisfactory conclusion in the time available," the company said in a statement.

"Following discussions with the group's lenders, it became clear that the group was unable to continue trading as a going concern."

Paul Daccus, of Sun European Partners, US-based Sun Capital's European arm, said it looked forward to helping Alexon "achieve sustainable growth".

"Alexon has strong brands which operate in a growing segment of the retail sector and this is an exciting acquisition," he added.

Alexon, which specialises in fashion for older women at mid-market prices, has 990 outlets across the UK and continental Europe.

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Group buying hits the Middle East

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20 September 2011 Last updated at 06:14 GMT By Simon Atkinson Business reporter, BBC News, Dubai WATCH: Can group buy tempt these Emiratis out of the shopping mall to buy online?

The sun is barely up over Dubai's Jumeirah beach, but already a group of about 30 fitness fanatics are sweating furiously as they grimace through another set of squat thrusts.

In sand-covered royal blue vests, they are here to get fit and enjoy fresh air before the Gulf's late summer humidity kicks in for the day.

But some have also been lured to this exercise boot camp by an online marketing trend that is only just gathering momentum in the Middle East.

Group buying - sometimes called social buying - has become a multi-billion-dollar business from the US and Europe, to Australia and China.

It has made companies like Groupon household names through their daily emails offering hefty discounts on everything from meals to mobile phones, hotel rooms to horse riding, and beauty spas to brand new cars.

The people taking part in this boot camp got a substantial discount by group-buying online

While each firm operates in slightly different ways - they essentially deliver customers to retailers in return for a cut of the total revenue.

'Big shift'

But despite retail making up a substantial chunk of the Middle East economy - and credit card usage being widespread - it has taken longer to establish the trend in the region because e-commerce is still in its infancy.

"The history of online buying in this part of the world can be measured in days and weeks, not years," says Dan Stuart, chief executive of GoNabit, which was the first firm to open in this region.

"When we started, people could buy flowers, gift baskets and flights through the internet, but not much else. They had to buy from sites based outside the region but we've seen a big shift in that."

Such is the apparent potential that Groupon opened offices in Dubai this year, while Mr Stuart's GoNabit is preparing to rebrand after being bought out by another US firm, Living Social.

Group-buy sites like this one are still a novelty in the Middle East

UAE-owned Cobone.com launched a year ago, and to meet local needs and reticence about internet shopping, about 80% of sales in the first few months were done through cash on delivery.

Customers bought online but then had a voucher physically delivered to them and handed over the cash.

"That might sound strange to someone in another part of the developed world," says chief executive Paul Kenny, whose firm now has more than half the Middle East market share by revenue, according to data from research firm Kongregator.

"But until very recently, that's the way it was,"

'Cost-effective'

For Original Fitness Co, which runs the beach boot camps, the trend has offered a new marketing technique.

Tighter economic times and more competition means the firm's regular prices are already about half the 900 dirhams ($245; ￡160) per month it could charge in the boom years.

Original Fitness's Corey Oliver says this is a cost-effective means of marketing

And through a social buying site, it recently charged just 270 dirhams ($70; ￡45) for a month of sessions.

"We don't make much money from the deals at all, but the idea is to get people in and then we try to keep them," says managing director Corey Oliver.

"Marketing can be expensive, but this is quite a cost effective way of doing it.

"And once people try it, we hope they enjoy it and want to come back, even if it'll cost them a bit more."

Regional complexities

Both Cobone and GoNabit have expanded from their UAE roots, with Egypt, Jordan and Lebanon seen as key markets.

And the Arab uprising, which has dominated the region this year, does not appear to have hampered expansion.

GoNabit was recently bought by US firm Livingsocial

GoNabit delayed its Egypt launch after President Hosni Mubarak was ousted in February, but went online in March, with the encouragement of staff in Cairo.

"They convinced us that even when all anyone was talking about was revolution and change, that people still want to do the things that our offers have," Mr Stuart says.

"They still want to go to restaurants, to have a spa, to go paintballing. Life goes on."

All the region's key players have their sites in both English and Arabic, with Egypt now the region's biggest growth market for group buying - helped by the opening up of the internet, and the increasing popularity of social media.

But Cobone's Paul Kenny says each country needs a different approach - from the tone of language to the deals offered.

"From Jeddah to Riyadh to Cairo to Dubai they all have different complexities," he says.

"In Dubai there are still plenty of people with a lot of disposable income. We sell a lot of trips on luxury yachts, and recently sold four $28,000 cars in one day.

"Compare that with Cairo and it's food and spas - they're the things more commonly consumed ... [there's] less disposable income, so we make sure we tailor it to the local market."

'Denigrate brand'

While the group buying trend allows retailers to create demand for things which customers may otherwise not have wanted - and therefore offer growth opportunities - there are also potential pitfalls says Hermann Behrens, chief executive of The Brand Union Middle East.

He warns that a hangover from the boom years of pre-2008 means places such as Dubai and Abu Dhabi suffer an over-supply of things like restaurants and spas - and that the new retail trend might further drive firms only to compete on price.

Go! Yachts Rob Appleyard says group buy sites bring in revenue during quiet periods

"The biggest danger is that if you're generating trial for a brand and people are actually going to a restaurant or a spa or buying a product, and it doesn't fulfil a value that's higher than they have paid for it, that could dilute or denigrate the value of the brand," he says.

"That's especially true if it's not an established brand with an established value."

It is an issue which faces Go! Yacht Charters - a firm hiring luxury boats in the UAE.

While there remains demand for its VIP services - from footballers and presidents to visiting oil tycoons - the economic downturn and slow recovery has hurt business, especially corporate bookings.

Now the firm is using a group buying site to sell time on its vessels - from $30 short trips out to sea to a $3,700 (￡2,400) package to this November's Formula One Grand Prix in Abu Dhabi.

It is one way to get some revenue from boats that may otherwise be standing idle, says managing partner Rob Appleyard.

But sitting on the plush purple seating on the 120ft yacht Sheleila, Mr Appleyard denies that allowing people onto multi-million-dollar boats for a few dollars a time cheapens his brand.

"It gets people on board to have a look and they're wowed by it. It's showing people that these boats are affordable, that they're not just for billionaires

"Hopefully, someone will buy one of these deals, they'll be impressed and they'll tell their boss - if they're not a boss themselves - and we'll get some corporate business off the back of it."

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