Swinney unveils spending plans

20 September 2012 Last updated at 09:30 ET

Scottish Finance Secretary John Swinney has started to outline his spending plans for 2013/14.

It is understood that the minister, who is presenting his budget to Holyrood, will signal an end to the public sector pay freeze.

Mr Swinney has said his plans will be a "relentless pursuit of economic growth", despite UK government cuts.

Opposition MSPs earlier warned the economy must be at the heart of the budget.

Continue reading the main story

• Follow as-it-happens video and text coverage of John Swinney presenting his 2013/14 budget to MSPs at Holyrood. The page will be live on the site from 14:30.
• Watch a special BBC 2 Scotland budget programme starting at 14:30.

The freeze on public sector pay for those earning more than £21,000 was implemented in the 2011/12 financial year and was due to come to an end in March 2013.

Mr Swinney has direct control over pay when it comes to Scottish government workers and staff at quangos, but local authority employees negotiate directly with council bosses.

The minister will tell MSPs how much money will be allocated to schools, the NHS, housing and other devolved areas from a total cash budget of £28.4bn.

Ahead of his budget address, he said: "At a time when we face significant economic challenges this government is focussed on jobs, economic growth, protecting public services and supporting Scotland's household budgets.

"The government has argued consistently that we need to have a strong programme of capital investment to support investment in the Scottish economy, in particular the construction sector."

Scottish Conservative finance spokesman, Gavin Brown, warned though that the budget had to put the economy centre stage and not just pay "lip service" to it.

Growth and fairness

He said: "In the past the SNP has simply talked about prioritising the economy without actually doing it. It is time for them to stop harming areas that help economic growth such as housing and colleges, and stop introducing Scotland-only taxes such as the damaging retail levy."

Labour's finance spokesman Ken Macintosh said he wanted to see a budget for jobs, growth and fairness.

He added: "It is scandalous that rather than putting in place a substantial employment programme, the SNP have now laid off more than 30,000 public sector workers in little more than a year.

"John Swinney needs to stop hiding behind Westminster or trying to blame our local authorities and start taking responsibility for his own budget decisions."

20 Sep, 2012

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US manufacturing growth 'modest'

20 September 2012 Last updated at 09:39 ET

Growth in the US manufacturing sector remained "modest" during September, according to a closely-watched survey.

The Markit Flash US Manufacturing Purchasing Managers' Index (PMI) was unchanged from August's figure of 51.5. A reading above 50 implies growth.

While manufacturing output continued to rise, "growth was only marginal and the weakest for three years", Markit said.

Input price inflation reached a four-month high, the survey found, but there was a slight increase in employment.

New domestic orders continued to rise, but the number of export orders experienced its steepest fall since October 2011.

The index score for new export orders was 47.9, down from 48.8 in August, reflecting poor economic data from China and the eurozone.

Earlier on Thursday, separate PMI surveys indicated that China's manufacturing sector declined for the 11th month in a row in September, although the rate of decline slowed.

Meanwhile activity among eurozone firms suffered its steepest contraction since June 2009, the PMI survey for the region found.

Stimulus measures

The PMI data follows earlier reports from the US Labor Department that initial claims for state unemployment benefits fell by 3,000 last week to a seasonally-adjusted figure of 382,000.

The four-week moving average of new claims rose by 2,000 to 377,750, its highest level since June.

The Federal Reserve, led by Ben Bernanke, recently announced another round of quantitative easing to help stimulate the US economy.

It intends to buy $40bn (£24.7bn) worth of mortgage-backed securities every month until the jobs market recovers.

The US unemployment rate has been over 8% for three years and currently stands at 8.1%.

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TNK-BP Rosneft deal edges closer

20 September 2012 Last updated at 07:49 ET

BP, the British oil giant, is reportedly close to selling its 50% stake in Russian joint venture TNK-BP to Rosneft, the state-owned oil company.

Under the terms of the deal, BP would take a 12.5% stake in Rosneft worth about $10bn (£6.2bn) plus $15bn in cash, said Russian newpaper Kommersant.

BP and Rosneft are keen to explore the Russian Arctic for oil together.

On Tuesday, Russian President Vladmir Putin held talks with both firms.

But a BP spokesman told the BBC: "Talks with all interested parties are continuing. No formal offers have been received, so any figures being bandied about are pure speculation at this stage."

According to other reports, Rosneft has been sounding out US banks for loans to finance the deal.

Strained relations

TNK-BP is jointly owned by Alfa Access Renova (AAR) and BP, after a deal struck in 2003.

On 1 June, BP said it was putting its half of the TNK-BP business up for sale after relations with its fellow shareholder became strained.

Then in July, AAR expressed an interest in increasing its share of the joint venture to 75%, valuing the extra 25% at about $10bn.

This gave it "preferred bidder" status and triggered a 90-day period in which no other interested party would be allowed to conclude a deal with BP.

This period ends mid-October.

Last year, AAR, which is owned by four Russian-born billionaires led by tycoon Mikhail Fridman, was unhappy with BP's attempt to form an exploration alliance with Rosneft and secured a High Court injunction blocking the plan.

TNK-BP is important to BP financially as it accounts for almost a third of the London-based oil firm's total crude production and about 10% of its net income.

Rosneft directors had a board meeting on 17 September at which they agreed to call an "extraordinary meeting" of shareholders, to be held on 30 November in Khabarovsk, Russia.

Item five on the agenda will be "approval of related party transactions" - a possible reference to the TNK-BP deal.

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Spain in successful bond auction

20 September 2012 Last updated at 05:55 ET

Spain's borrowing costs eased at the country's latest bond auction where it raised 4.8bn euros (£3.84bn) after selling three and 10-year bonds.

There was strong demand for the 10-year bonds, with investors bidding for nearly three times the amount on offer.

The average yield was 5.66%, down from 6.65% at the previous auction, and below the 5.95% average for the year.

The government's borrowing costs have fallen since the European Central Bank announced its bond-buying plan.

"Overall the auctions today were taken comfortably," said Nick Stamenkovic of Ria Capital Markets, "but a sustainable decline in yields really depends on the Spanish government coming up to the plate and asking for a sovereign bailout."

Investors bid for 1.6 times the amount of three-year bonds on offer, with an average yield of 3.85%, slightly higher than the year average of 3.82%.

This auction follows an earlier round of fundraising on Tuesday, when the Spanish government raised 4.6bn euros in 12- and 18-month loans on the bond markets.

On 6 September, ECB president Mario Draghi unveiled details of a bond-buying plan aimed at easing the eurozone's debt crisis.

Under the plan, the ECB would agree to buy a potentially unlimited amount of bonds of debt-stricken eurozone members on the condition that these countries made a formal request for bailout funds and stuck to the terms of any deal.

The German Bundesbank remains opposed to the idea.

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Eurozone business activity falls

20 September 2012 Last updated at 05:20 ET

Activity among eurozone firms suffered its steepest contraction since June 2009, according to a survey.

The Markit Flash Eurozone Purchasing Managers' (PMI) Composite Output Index fell to 45.9 in September from 46.3 in August, its lowest level for 39 months.

The composite figure combines services and manufacturing activity, and a figure below 50 indicates contraction.

Markit said the results indicated the eurozone was heading back into recession.

The services PMI activity index fell from 47.2 to 46, but the manufacturing PMI output index rose to 45.5 from 44.4 in August.

"The eurozone downturn gathered further momentum in September, suggesting that the region suffered the worst quarter for three years," said Chris Williamson, Markit's chief economist.

"The flash PMI is consistent with GDP contracting by 0.6% in the third quarter and sending the region back into a technical recession."

However, while there were falls in production and new orders across the eurozone as a whole, Germany's rate of decline slowed "substantially".

"Services even saw a marginal upturn in activity for the first time since May," the report said.

But employment fell for the ninth consecutive month across the eurozone, with French payroll numbers being cut at the fastest rate since November 2009.

Chinese manufacturing

Earlier, the flash PMI manufacturing measure for China had indicated another fall in output in the sector, adding further to eurozone woes.

The survey of factory managers found that while the rate of decline had slowed, manufacturing still fell in September for the 11th month in a row.

The HSBC flash China manufacturing PMI rose from 47.6 in August to 47.8 in September.

China has given the go-head for infrastructure projects worth more than $150bn (£93bn).

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Homes market 'flat like economy'

20 September 2012 Last updated at 05:23 ET

Activity in the UK housing market was subdued in August as the economy was flat and household confidence low, lenders have said.

Gross mortgage lending fell slightly from £12.7bn in July to £12.6bn in August, the Council of Mortgage Lenders (CML) said.

This was 4% lower than August last year, the lenders' group said.

It predicted that new schemes to encourage lending could inject some life into the market.

These included the NewBuy scheme, which aims to match newly built properties in England with buyers unable to offer a large deposit.

More significant, the CML argued, would be the Funding for Lending scheme, in which the Bank of England will lend money at below-market rates to the financial institutions in order for them to lend the funds to potential homeowners and businesses.

"The scheme is a bold move that has the potential to greatly influence the course of the housing market over the next year or so," said CML chief economist Bob Pannell.

"While not a panacea for all housing market problems, the scheme does offer the potential to improve the lending environment. Unfortunately, it will be towards year-end before any initial assessment of its impact can be reached."

But there have been some reservations about the scheme.

"The Funding for Lending scheme is bold but there has also been a fair bit of bluster," said Ashley Brown, director of mortgage broker Moneysprite.

"It may have triggered some activity but unfortunately none of it has been in the right areas. It has seen better deals for the people who do not really need them, and little of note for those that do."

In the meantime, the CML is reporting a slow market at present.

"This should not be a big surprise, during a period when the UK economy is pretty flat and household confidence is in the doldrums," Mr Pannell said.

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UK retail sales hit by Olympics

20 September 2012 Last updated at 04:51 ET

Retail sales in the UK fell during in August as people put off shopping to watch the Olympics, figures show.

Sales fell 0.2% in August from July, according to the Office for National Statistics (ONS).

The ONS said lower sales were driven by a fall in online sales as consumers watched the Olympics instead of shopping on the internet.

However, sporting goods stores saw a sales boost from the Olympics and the new football season.

Analysts said the weak overall sales figure underlined persistent worries over the strength of the economy.

"With retail sales there may have been a lot of distortions due to the Olympics and the risks are to the downside... there is no sign the UK will bounce back strongly," said Paul Robson, currency strategist at RBS.

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Wen set for final China-EU summit

20 September 2012 Last updated at 00:35 ET

China's premier Wen Jiabao is to take part in his last EU-China summit before handing over power later this year.

His talks in Brussels with senior EU figures, including European Council President Herman Van Rompuy and foreign policy chief Catherine Ashton, are expected to focus on economic issues.

Beijing has previously expressed concerns about Europe's economic slowdown and offered to help.

Mr Wen is seen as having played a key role in building Chinese-EU relations.

Bilateral trade has more than quadrupled under his nine-year premiership.

The EU is now China's largest export market and the world's second-largest exporter to China.

'Consolidating relations'

There have been trade disputes between the partners - such as a recent EU decision to investigate allegations that Chinese manufacturers are dumping solar panels by selling them at below market value.

But EU officials believe these disputes must be seen in the context of a broad and growing economic relationship, says the BBC's Chris Morris in Brussels.

The Chinese government has also repeatedly expressed concern about Europe's faltering economy, which continues to struggle through a eurozone debt crisis.

There had been hopes that China would invest some $3 trillion (2.3 trillion euros; £1.85 trillion) of its foreign exchange reserves in European bailout funds - although pressure has now been eased by a European Central Bank decision to buy up government bonds.

In this context, the BBC's Chris Morris in Brussels says this summit will be all about consolidating relations rather than taking big decisions.

Europe's leaders, he says, have their eye on China's leadership change, which only happens once every decade and could bring new challenges in relations between these major economic powers.

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Marikana miners return to work

20 September 2012 Last updated at 02:25 ET

Miners in South Africa are returning to work at the Marikana platinum complex, which was the scene of violent protests in which 44 people died.

Striking miners reached an agreement with owners Lonmin on Tuesday. It will see their salaries rise by up to 22%.

Lonmin is hoping to recover some of the big losses it incurred during the six-week stoppage.

An investigation is under way into the deaths of the miners, 34 of whom were shot by police.

The strikes have spread to other mines in South Africa, one of the world's biggest producers of precious metals.

Spreading strikes

On Monday, President Jacob Zuma said the disruption had cost the industry $548m (£337m) in lost output.

On Wednesday, police fired rubber bullets and tear gas to disperse protesters near a mine owned by Anglo American Platinum (Amplats), the world's largest platinum producer.

Amplats had re-opened its mines on Tuesday after they were closed last week.

Last week, the government announced it would clamp down on the protests.

The Marikana miners had been demanding a monthly salary of 12,500 rand ($1,513; £935) - they currently earn between 4,000 and 5,000 rand.

As well as a pay rise of 11-22%, they will get a one-off payment of 2,000 rand to help cover the weeks of not being paid while they were on strike.

Analysts had warned that the Lonmin deal could encourage other miners to down tools to obtain pay hikes.

Some 15,000 miners at Gold Fields' Dreifontein Gold Mine remain on strike.

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Sky 'fit and proper', says Ofcom

20 September 2012 Last updated at 02:21 ET

Media regulator Ofcom has decided Sky is a "fit and proper" company to hold a broadcasting licence.

Ofcom was investigating the satellite broadcaster in the wake of the phone hacking scandal that engulfed Rupert Murdoch's News Corp media empire.

News Corp owns 39% of BSkyB, and James Murdoch, Rupert's son, was chairman until he stepped down in April.

Ofcom said, however, that "should further evidence become available" it would look at the issue further.

In a statement, Ofcom said: "In July 2011, in light of the public debate about phone hacking and other allegations, Ofcom confirmed that it had a duty to consider whether Sky was fit and proper to continue to hold its broadcast licences.

"Ofcom considers that, on the evidence currently available and having taken into account all the relevant factors, Sky is fit and proper to hold its broadcast licences.

"Should further relevant evidence become available in the future, Ofcom would need to consider that evidence in order to fulfil its duty."

Last May, the Commons media committee concluded that Rupert Murdoch was "not a fit person" to run a major international business. However, four of the 10 committee members disagreed, as the MPs split on party lines.

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Former Reebok India boss arrested

20 September 2012 Last updated at 00:56 ET

Former managing director of sportswear business Reebok India, Subhinder Singh Prem, and ex-chief operating officer Vishnu Bhagat have been arrested in connection with a fraud case.

They have been alleged to have indulged in fictitious sales and fudging of company accounts.

Reebok has claimed that such activities had resulted in a loss of almost 8.7bn rupees ($160m; £100m) for the firm.

The two former executives, who left the firm in March, have denied the charges.

Three other people have also been arrested in connection with the case.

"We will seek police remand. All these accomplices were not co-operating with the police," Gurgaon Police Commissioner KK Sandhu was quoted as saying by the Economic Times in India.

The case come to light after Adidas, the parent company of Reebok, warned investors early this year that "commercial irregularities" at its Reebok unit in India could dent the firm's profits.

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India strike over retail reforms

19 September 2012 Last updated at 23:43 ET

Opposition parties and trade unions in India are joining in one-day strike over the government's plan to open the retail sector to global supermarket chains and other reforms.

Early reports said that opposition workers had blocked railway tracks in Uttar Pradesh and Bihar states.

A key ally of the ruling coalition has pulled out of the government in protest at the plan.

Observers say the coalition's majority in parliament is not at immediate risk.

Delhi's plan is aimed at reviving a flagging economy, but small shops fear they will be put out of business.

The decision was one of several reforms announced by the government last week.

It also decided to allow foreign airlines to buy 49% stakes in local carriers, in the hope that this will boost the country's troubled aviation sector.

The government also announced a 14% rise in the price of diesel, which is heavily subsidised in India.

Angry

The Trinamool Congress party, a key ally of the ruling coalition, has said it would pull out of the government and that its six ministers would resign on Friday.

Thursday's nationwide strike, called by the main opposition Bharatiya Janata Party (BJP), its allies and Communist parties, is expected to shut down schools, businesses and public transport in many cities.

TV channels showed protests taking place in the cities of Patna, Allahabad and Varanasi in northern India.

Most businesses were shut in the eastern city of Calcutta and public transport was disrupted, reports said.

The Confederation of All India Traders said 50 million people were expected to participate in the protests, and that large demonstrations were planned in Delhi and other cities.

"Multinational companies will destroy the economic and social fabric of the country and will adversely impact traders, transporters, farmers and other sections of retail trade," Praveen Khandelwal, the head of the group, was quoted as saying by AFP news agency.

A BJP spokesperson said people were supporting the strike because they were "angry at the recent decisions of the government".

Under the government's proposal, global firms - such as Walmart and Tesco - will be able to buy up to a 51% stake in multi-brand retailers.

Multinational retailers already have outlets in India, but they deal with smaller retailers. This decision allows them to sell directly to Indian consumers.

Indian Prime Minister Manmohan Singh has said the reforms would "help strengthen our growth process and generate employment in these difficult times".

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Programmer admits to data theft

20 September 2012 Last updated at 00:02 ET

Chunlai Yang, a former programmer for CME Group, the largest US futures exchange operator, has admitted to stealing trade secrets from the firm.

He pleaded guilty to downloading CME's computer codes to help boost trading speeds and volumes at a Chinese exchange.

The US government said the potential loss from the theft was between $50m-$100m (£30m-£60m).

Mr Yang, a Chinese national who has US citizenship, faces 10 years in jail.

"Trade secret theft is a serious economic crime that affects the interests of corporations, as well as our national interest, in protecting intellectual property," said Gary Shapiro, acting United States Attorney for the Northern District of Illinois.

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Electric car money 'only for few'

19 September 2012 Last updated at 22:47 ET

Government spending of £11m to encourage people to drive electric cars has benefited only a "handful of motorists", MPs have said.

They also warned the scheme was being used to subsidise second cars for more affluent households.

In a report, the Transport Select Committee questioned whether this represented a good use of public money.

The government offers grants of up to £5,000 towards the cost of plug-in cars in a bid to reduce carbon emissions.

And a network of more than 1,600 public charging points has been set up across the country to encourage drivers to switch.

Chair of the cross-party committee, Louise Ellman MP said: "The government must do more to show that its plug-in vehicle strategy is a good use of public money.

'Far more work'

"Carbon emissions from transport must be reduced if the UK is to meet its climate change targets, but public money must be targeted on effective policies.

"So far, Department for Transport expenditure on plug-in cars - some £11m - has benefited just a handful of motorists.

"We were warned of the risk that the government is subsidising second cars for affluent households; currently plug-in cars are mostly being purchased as second cars for town driving."

The committee said it was unclear whether the government scheme, which was part of the coalition agreement, actually encouraged demand for plug-in cars.

The government had said it expects there to be tens of thousands of these cars on Britain's roads by 2015, with the number reaching six figures by 2020.

But the committee found that following the introduction of the grants in January 2011 only 1,052 eligible cars had been registered - up from 111 in 2010.

Ms Ellman said: "Ministers should not sit back and hope that the Government's policy on plug-in cars will reduce transport carbon emissions.

"Far more work is required to ensure that this programme is a good use of public funds."

In future, the government should set targets for the number of electric cars they expect to see on the roads and establish a national registry of vehicle charge points, the committee said.

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Japan exports fall on EU slowdown

19 September 2012 Last updated at 21:20 ET

Japanese exports fell for the third consecutive month in August, hurt by a slowdown in demand from the European Union (EU) and China.

Shipments fell 5.8% from a year earlier, with exports to the EU sliding by 22.9% and to China by 9.9%.

Exports to the EU have dipped for 11 straight months amid the debt crisis.

There are now fears that Japan's trade with China, its biggest trading partner, may be hurt by the continuing territorial dispute between them.

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UK cities get fast broadband cash

20 September 2012 Last updated at 00:06

The government has announced how it will share the money promised to 10 UK cities to allow them to create superfast broadband networks.

London gets the largest share of the £114m pot with £25m, followed by Leeds and Bradford, which will divide £14.4m.

The money will be used to build city-wide networks, offering homes and businesses speeds of up to 100Mbps (megabits per second).

The government wants to make the UK the fastest place in Europe by 2015.

A further £50m is to be awarded to ten smaller cities.

Continue reading the main story

• London - £25m
• Leeds and Bradford - £14.4m
• Belfast - £13.7m
• Manchester - £12m
• Bristol - £11.3m
• Cardiff - £11m
• Edinburgh - £10.7m
• Birmingham - £10m
• Newcastle - £6m

Digital leaders

New culture secretary Maria Miller promised last week to cut the red tape associated with broadband rollouts.

She hopes that the city networks can be built soon.

"These 10 cities have produced ambitious and comprehensive plans, which will turn them into digital leaders, and give their local economies a real boost," she said.

The new investment will help put these cities at the centre of the digital stage, competing for jobs and investment with the best in the world," she added.

Alongside the government money, each city is expected to invest some of its own funds in the broadband projects.

The 10 cities' plans are expected to bring superfast broadband access (offering speeds between 80 and 100 megabits per second) to around an extra 230,000 residential and 55,000 business premises as well as high speed wireless to even more.

All the networks are due to be completed by 2015.

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Pensions system roll-out revealed

19 September 2012 Last updated at 19:02 ET

Some 600,000 people are expected to be enrolled into a workplace pension by the end of the year under a new system that automatically diverts funds from their pay packet.

The automatic enrolment scheme begins on 1 October and will mark one of the biggest changes to the pension system in the UK.

It will start with the largest firms.

Employers and staff will pay contributions into pension savings unless the worker opts out.

Workers aged over 22, earning more than £8,105 and not already signed up to a workplace pension scheme will be automatically enrolled into a pension scheme.

However, this system will be phased in gradually, with workers in the smallest firms not seeing a change for a few years.

The Department of Work and Pensions (DWP) has outlined more details on the number of people expected to be signed up during the initial waves.

It estimates that 380,000 workers will be signed up in October, a total of 420,000 will be enrolled by the end of November, and 600,000 will be in place by the end of the year.

The aim is for more people to save for their retirement, rather than relying solely on the state pension.

Under automatic enrolment, employers will eventually contribute 3% of earnings to a worker's pension pot, the employee will have 4% of their earnings diverted, and there will be 1% tax relief.

However, these contributions will also be phased in gradually, starting at about 1% of earnings paid in by the employer and employee.

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Lufthansa in new low cost move

19 September 2012 Last updated at 16:10 ET

Lufthansa says it will merge many of its European and domestic routes under a new low cost brand as it seeks to boost profits.

The company's flights within Germany and Europe, excluding those from the Frankfurt and Munich hubs, will be merged with its existing low-cost brand Germanwings from next year.

The new service is expecting some 18 million passengers in its first year.

Lufthansa carries more than 100 million passengers a year.

Lufthansa is currently undergoing a 1.5bn euro ($1.9bn; £1.2bn) cost-cutting programme to offset rising fuel costs and tackle competition from low-cost and Gulf carriers.

No name

The airline said there had been no decision on the name of the new service, which will based in Cologne, as yet.

One of the German airline's main rivals, Air France-KLM is also planning to make major changes to its European network, with plans to develop a low-cost unit called Transavia.

Lufthansa's decision to reorganise its short-haul routes under the new brand follows a series of strikes by Lufthansa workers over pay and conditions.

Union representatives and the company agreed two weeks ago to begin a formal mediation procedure this week which put an end to the walk outs.

Lufthansa said it was too early to say how much the industrial action had cost it in lost revenue from the 1,800 flights that were cancelled.

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Bill Gates tops Forbes rich list

19 September 2012 Last updated at 14:45 ET

Technology titan Bill Gates has been listed by Forbes magazine as the wealthiest American for the 19th year in a row, with a fortune of $66bn (£41bn), up $7bn from last year.

There was no change in the order of the top five richest from a year earlier.

The total wealth of the US super-rich grew 13% to $1.7tn, with the top 400 worth an average $400m more in 2012.

The group's assets are worth as much as one eighth of the US economy, and grew much faster than the economy at large.

According to the Forbes 400 list of the richest people in America, the average net worth of a person on the list was $4.2bn.

In second place with a fortune of $46bn was investment guru Warren Buffett, who is chairman and chief executive of the insurance conglomerate Berkshire Hathaway.

He was followed by Larry Ellison, head of software maker Oracle Corp, worth $41bn.

David and Charles Koch of the energy and chemical business group Koch Industries were tied in fourth place with $31bn.

The majority of those on Forbes' list became richer in 2012. Two hundred and forty-one members of the group saw their wealth increase, while just 66 saw it shrink.

Casino magnate Sheldon Adelson and financier George Soros dropped from the ranks of the top 10 into 12th place compared with a year ago.

But the biggest drop was seen by Facebook founder and chief executive, Mark Zuckerberg, who fell from 14th to 36th place in the wake of a disappointing stock market listing of his company.

He lost nearly half his fortune, which is now worth an estimated $9.4bn.

Four members of one family - the heirs to the Walmart fortune - are in the top 10.

Here is the Forbes list:

1. Bill Gates, co-founder and chairman of Microsoft, $66bn
2. Warren Buffett, chairman and chief executive of Berkshire Hathaway, $46bn
3. Larry Ellison, co-founder and chief executive of Oracle, $41bn
4. Charles Koch, chairman and chief executive of Koch Industries, $31bn
5. David Koch, co-owner and executive vice-president of Koch Industries, $31bn
6. Christy Walton & family, heiress to Walmart fortune, $27.9bn
7. Jim Walton, heir to Walmart fortune and chairman of Arvest Bank, $26.8bn
8. Alice Walton, heiress to Walmart fortune, $26.3bn
9. S Robson Walton, heir to Walmart fortune, $26.1 billion
10. Michael Bloomberg, founder and principal owner of Bloomberg LP, $25bn.

20 Sep, 2012

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EADS boss warning over BAE deal

19 September 2012 Last updated at 12:54 ET

The chief executive of EADS has said its proposed tie-up with BAE Systems represents a "perfect fit" but that there is "serious work" ahead to convince investors of its value.

Tom Enders' thoughts were given in a letter to 136,000 EADS employees, including 17,000 in the UK.

Politicians are also looking closely at the planned merger, which would create the world's largest defence company.

On Monday, France's finance minister said the idea needed close scrutiny.

Pierre Moscovici said the tie-up raised a lot of questions over strategic interests and "industrial effects".

In his letter, Mr Enders said that "governance and national security interests are currently the focus of our work".

"We are currently in constructive and advanced discussions with all relevant governments and are trying to accommodate their concerns and national security interests..."

Struggle

But Mr Enders acknowledged there may be a struggle ahead to get support for the deal: "No doubt, we have some serious work to do - and that goes particularly for our investor relations teams - to convince shareholders and investors that we are on track to build a stronger growth platform."

He said the discussions with BAE Systems were "not the result of top management gone haywire".

The announcement of the deal sparked a rise in BAE's share price but a fall in EADS's.

Mr Enders said this was simply because investors had been "taken by surprise".

The letter said the proposal would enable the firm to reach its goals seven years earlier than planned.

One of these is to increase its global markets.

But he implied there were unlikely to be job losses as a result of a successful tie-up.

In terms of the impact on staff and sites he said the two companies were "largely complimentary and have very little overlap".

But he said that in the defence industry, internationalisation "is a must", something that combining with BAE Systems - which he called the world's most international defence company - would provide.

He finished by saying that while there had been some critical reactions to the deal "word will soon go around, that this deal makes good business sense".

Under the code of the UK's Takeover Panel, the deadline to finalise the details of the deal is 17:00 BST on 10 October.

20 Sep, 2012

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HTC unveils Windows Phone mobiles

19 September 2012 Last updated at 16:55

HTC has unveiled two Windows Phone 8 handsets at an event in New York.

The firm has said that it intends to promote the 8X, which features a 4.3" (10.9cm) display, as its flagship device alongside the Android-powered One X.

The firm is also offering a smaller 8S model with a 4" (10.2cm) screen.

HTC's share price has fallen more than 50% since February after the firm experienced weak sales of earlier models despite positive reviews.

Analysts have said the firm had a weak advertising campaign which was compounded by the fact that its South Korean rival, Samsung, had a much bigger marketing budget.

Nokia and Samsung have already shown off alternative Windows Phone devices which will launch after Microsoft releases the operating system.

Operator support

HTC said the 8X would launch in 50 countries in early November across 126 mobile operators, while the 8S would be available in 52 countries with more than 146 operators.

Such detail was notably lacking at Nokia's recent Lumia 920 launch, where it did not confirm the date or number of countries the smartphone would be sold in.

HTC made much of the devices' design at the US event saying they had "a remarkably unique profile" thanks to the way their edges tapered, becoming thinner at the bottom, to make them feel thin in their users' hands.

It said its top-end model featured an 8 megapixel camera on its rear supported by a dedicated chip for "faster focus speed and clearer, sharper shots". The 2.1MP front camera - used for video chats - has also been designed to provide a wide-angle view.

The firm also hopes to distinguish both models by including Beats Audio sound equipment which it said offered "deeper bass and crisp vocals". The handset maker owns a 25% stake in the company.

The 8X has an NFC (near field communication) chip for touchless payments, but the 8S does not.

Tough competition

The bet on Microsoft's technology carries risks - the firm's phone systems only accounted for 3.1% of global smartphone shipments in the April to June months, according to research firm NPD.

But one of the company's analysts said HTC had an opportunity to grow that number.

"The reception from operators is quite good," said Francisco Jeronimo, European mobile devices research manager, told the BBC.

"The market wants another alternative to Android as vendors don't want to face the kind of problems that have arisen out of the lawsuits between Apple and Android device manufacturers - products being withdrawn or delayed.

"But HTC has to compete against Nokia and Samsung which also have Windows Phone 8 products.

"Nokia offers extra services on top such as its transport and augmented reality City Lens facility, while Samsung has a bigger marketing budget."

Another analyst praised HTC for the industrial design and materials used to build its new devices, saying they would prove eye-catching on store shelves, but was not convinced that would be enough to improve its fortunes.

"HTC has had problems standing out in the Android market, and it could be even more difficult on Windows Phone 8 as Microsoft controls more of the experience on the platform," said Gartner's research director, Roberta Cozza.

"HTC needs to add further value to the ecosystem similar to what Nokia has done with its imaging and navigation resources.

"Unless that happens I don't suspect things will change a lot for the firm."

HTC's press conference is the last of the big smartphone launches that had been scheduled ahead of the Christmas shopping season.

19 Sep, 2012

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William Hill in Sportingbet talks

19 September 2012 Last updated at 12:08 ET

UK bookmaker William Hill has confirmed it is in talks over a possible joint offer for gambling firm Sportingbet.

William Hill, which has 2,300 High Street betting shops, is attempting to reach a deal to buy Sportingbet with the European gaming company GVC.

Shares in the target company rose 17% as market rumours about the deal circulated.

Sportingbet is based in Guernsey and has more than 2.5 million registered customers in 200 countries.

William Hill and GVC have until 16 October to announce a firm offer.

They are likely to split Sportingbet's operations between them, with William Hill taking the Australian and other locally licensed Sportingbet businesses.

Sportingbet makes 90% of its profits in Australia and has about a third of the country's online gambling market.

William Hill said in a statement: "William Hill and GVC note the recent share price movement of Sportingbet and confirm that they are in the preliminary stages of considering a possible joint offer for Sportingbet.

"William Hill and GVC have committed to work exclusively with each other in this regard."

20 Sep, 2012

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US home sales at two-year high

19 September 2012 Last updated at 10:36 ET

Sales of previously owned US homes reached their highest level for more than two years in August, figures show.

Prices for such homes also rose, according to figures from the National Association of Realtors (NAR).

The figures added to the picture of an improving US housing market, although the number of first-time buyers fell back from 34% to 31%.

Earlier, figures from the US Commerce Department showed new house building had also risen between July and August.

Seasonally adjusted home sales were running at an annual rate of 4.82 million last month, according to the NAR.

That is the biggest number since May 2010, when sales were boosted by a federal home-buying tax credit.

However, the figure is still below the 5.5 million units a year level seen as consistent with a healthy housing market.

19 Sep, 2012

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Facebook trials mobile ad system

19 September 2012 Last updated at 15:04

Facebook is testing a system that allows it to make money by placing adverts for other companies on third-party apps and mobile web pages.

The placements, on Apple iOS and Android-powered devices, are based on data held by the social network about users and the links they have "liked".

The company said it was "a small test" limited to the US.

The firm's stock has risen 23% over the past fortnight, but only after tumbling 54% from its flotation price.

Chief executive Mark Zuckerberg recently said mobile devices were a priority for the firm, but added showing adverts in a separate column alongside a user's news feed on handsets was not an option.

"We've had right-hand-column ads and it's been great, a multi-billion-dollar business," he said at a conference organised by Techcrunch in San Francisco.

"But on mobile, we can't do that. It's clearly going to have to be different."

Anonymised data

By clicking on banner ads or full-screen marketing material, the user is directed to either the advertiser's mobile website or an app store where a developer's product can be downloaded.

The network anonymises information about the users involved in the trial - this means neither the ad exchanges nor the sites where the material appears should be able to trace the clicks back to a specific Facebook account.

"We've been showing ads off of Facebook on Zynga.com for a few months now and we think that showing mobile ads outside of Facebook is another great way for people to see relevant ads and discover new apps," Facebook said in a statement.

Ads on the go

Ahead of its share sale Facebook identified the fact users were increasingly accessing the net on mobile devices as a risk factor.

"Growth in use of Facebook through our mobile products, where we do not currently display ads, as a substitute for use on personal computers may negatively affect our revenue and financial results," it said in February.

Since then the firm has allowed app developers to advertise their products within its member's mobile news feeds.

It has also introduced Sponsored Stories - posts created by an advertiser that appear if a "friend" or page the user is connected to shares the material.

One industry watcher said the latest effort would enable Facebook to further boost revenues without flooding its own app with more adverts at this time.

"Facebook's greatest asset is its wealth of user data - it's a mine of information that is growing at a rapid rate," said Mark Mulligan, editor of the Media Industry Blog.

"What it's now doing is not that different to what Google does - placing adverts on multiple platforms based on data about its users that it can draw on.

"[There are risks,] all this is happening against a backdrop in which consumers are becoming more aware of user privacy issues, but on the other hand they value the fact the social network and other services that are provided without charge."

19 Sep, 2012

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DHL workers to take strike action

19 September 2012 Last updated at 07:37 ET

Workers at Cumbernauld-based DHL Supply Chain are to take strike action in a dispute over pay and the site's future.

The Unite union said more than 350 workers had rejected a pay offer amounting to an annual 2% increase for two years.

It added workers were concerned about the future of the Westfield site after key contractor Marks and Spencer announced distribution network changes.

A schedule for strike action will be announced "in due course".

Unite said more than 90% of ballot papers returned were in favour of industrial action.

The dispute mainly involves warehouse and logistics staff.

According to the union, more than 100 workers have been made redundant at the site in the last two years - with 15 jobs being lost in the summer following the Marks and Spencer restructuring announcement.

Unite regional industrial officer Tony Devlin said: "We've got to the point where the situation is untenable.

"This workforce readily accepted a global pay freeze in 2008 and has had to contend with a significant spate of redundancies in the last two years - their commitment to DHL and M&S is unquestionable.

"We've accepted the cuts and made proposals for the diversification of the business operation after the M&S announcement but have been continuously kept in the dark by DHL and M&S.

"The recent pay offer was the straw that broke the camel's back."

19 Sep, 2012

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Trump 'advert complaints' upheld

Complaints about newspaper adverts commissioned by the Trump Organisation showing broken and rusting wind turbines under the headline 'Welcome to Scotland' have been upheld.

A picture in the Press and Journal newspaper showed the turbines, with a disclaimer admitting it was not taken in Scotland.
It was not enough to save the advert from criticism from the Advertising Standards Authority (ASA).
Donald Trump is against wind farms.
The US billionaire is campaigning to prevent the construction of a major wind farm off the Aberdeen coast, close to his new golf course at Menie.
The advert warned: "Alex Salmond wants to build 8,750 of these monstrosities".
The ASA said the pictures had given a misleading impression of the possible consequences of the Scottish government's plans to use wind turbines.
The ASA said the advert should not be used again in its current form.

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FSA 'concerns' about Bob Diamond

19 September 2012 Last updated at 09:02 ET

The UK's financial regulator has said it warned Barclays two years ago that Bob Diamond could be unsuitable to be appointed chief executive of the bank.

Newly-published letters reveal that the Financial Services Authority felt its investigation into the Libor rate-rigging scandal was relevant.

The FSA said it could not prejudge the appointment, but reserved the right to "reassess his suitability".

Mr Diamond resigned in July over claims Barclays' traders tried to rig Libor.

The letters were disclosed by the Commons' Treasury Committee, which has taken evidence on the Libor affair from Barclays, the FSA and the Bank of England.

According to a FSA file note, there was a meeting on 15 September 2010 between the regulator's chief, Hector Sants, and Barclays' then chairman, Marcus Agius.

At this meeting, the FSA says it told Mr Agius that the continuing Libor investigation could have a bearing on the bank's decision to appoint Mr Diamond. However, Mr Diamond had already been named chief executive of the bank and took up the post in January 2011.

In a letter sent to committee chairman Andrew Tyrie on 20 August 2012, Mr Sants writes: "The FSA was fully aware that the ongoing investigation might come to conclusions which would be relevant to Mr Diamond's suitability.

"However, at the time, since the investigation was not concluded, it would not have been appropriate to prejudge its outcome."

Referring to the meeting with Mr Agius, Mr Sants continues: "I specifically made clear that we reserved the right to re-assess his [Mr Diamond] suitability in the light of the conclusions reached by this investigation and requested he make this clear to Mr Diamond.

"Secondly, I would like to record that in that conversation, I made clear that our concerns about Barclays' culture were not some generic observation but specific to Barclays, and asked that these concerns be communicated by Mr Agius to Mr Diamond. Mr Agius confirmed that he would do this."

The information appears to be at odds with comments by Mr Agius, who has said that the FSA did not cast doubt on Mr Diamond's appointment.

Mr Diamond resigned after Barclays was fined more than £290m for rigging Libor benchmark interest rates.

19 Sep, 2012

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BoE sees worse inflation outlook

19 September 2012 Last updated at 07:21 ET

Bank of England policymakers think inflation is set to slow less rapidly because of higher oil costs and possible food price rises.

Minutes from the latest meeting of the Monetary Policy Committee (MPC) showed that they felt inflation was unlikely to slow as it had forecast in August.

They also showed all nine MPC members voted to hold rates and not increase the programme of quantitative easing.

However, one MPC member said there was "good case" for more QE.

More stimulus?

Figures released on Tuesday showed that inflation as measured by the Consumer Prices Index (CPI) fell to 2.5% in August, down from 2.6% in July.

Inflation is now much closer to the Bank of England's 2% target, having dropped from a peak of 5.2% in September last year.

However, the minutes from September's meeting of the MPC noted: "The rise in oil prices and the probable increase in utility and some food prices meant that the near-term outlook was for a less rapid fall in inflation than the Committee had thought at the time of its August Inflation Report projections."

All members of the MPC agreed to keep its programme of quantitative easing (QE) at £375bn.

Under QE, the Bank buys government bonds, hoping to create beneficial knock-on effects for the economy.

The latest minutes showed most members found the decision to maintain QE at the current level "straightforward".

But others felt extending it "was more likely than not to be needed in due course".

And one member said that "a good case could be made" for announcing an increase in QE immediately.

Several analysts have said they think the Bank will increase the QE programme above the current level.

Howard Archer, an analyst at IHS Global Insight, said his firm "strongly suspect" it will increase the programme by another £50bn in the fourth quarter of 2012.

Brian Hilliard of Societe Generale agreed, noting that this was the second consecutive MPC meeting at which increasing bond buying had been discussed.

"I don't think that is going to sway the majority until November, but the fact that it has been discussed two meetings in a row does point to a further expansion of QE in the November meeting," said Mr Hilliard.

19 Sep, 2012

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Asos enjoys sales boost from US

19 September 2012 Last updated at 07:17 ET

Online fashion retailer Asos says a big increase in demand from US customers helped sales grow 31% in the three months to the end of August.

Overall sales increased to £141m in that period, up from £107.4m, but 65% of the sales increase came from the US.

The company said that sales outside the UK, European Union and the US jumped 53% to £47.4m in the period.

Chief executive Nick Robertson said it would hit full-year profit forecasts.

In the UK, Asos saw sales increase by 15% to £49.8m in the three months to 31 August, maintaining strong performance at home.

Asos has grown while many of its rivals that operate physical stores have struggled amid economic uncertainty.

For the year to 31 August, Asos saw a 91% increase in sales to US customers, totalling £49.5m, while sales outside the UK, the European Union and the US jumped by 94% to £165.2m.

For the year to the end of August, its UK sales totalled £205.2m - a 10% rise on the previous year.

In the same period, Asos said that it had five million active customers, defined as people who have shopped with Asos in the last 12 months - a 35% increase year-on-year.

Jean Roche, an analyst with stockbroking business Panmure Gordon, called the numbers "particularly impressive".

Meanwhile British fashion retailer French Connection has reported a first-half loss before tax of £6.3 million.

19 Sep, 2012

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Amount paid in bonuses hits £37bn

19 September 2012 Last updated at 06:18 ET

The amount paid in bonuses to UK employees in the year to end-March rose 3% to £37bn - about £1,400 per worker - according to official figures.

Staff in the finance and insurance sector received £13bn of the total, 9% down on the previous year, the Office for National Statistics (ONS) said.

However, the finance sector received 36% of all bonuses, even though just 4% of all employees work in the industry.

It amounted to £12,000 per employee working in finance and insurance.

The ONS said the industry with the second highest average bonus was the mining, quarrying and oil industries, with bonuses per employee worth £6,900 each.

This was an increase of 9% on the 2010-11 financial year.

In 2011-12, the average private sector worker received £1,700 in bonuses, more than five times the average public sector worker's bonus of £300.

But this public sector figure includes payments at the temporarily nationalised banks, such as RBS.

Excluding financial services, the average public sector bonus was £100.

19 Sep, 2012

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Lonmin shares rise after pay deal

19 September 2012 Last updated at 05:13 ET Continue reading the main story

Shares in Lonmin jumped 9% in the first 20 minutes of trading in London, after the firm signed a pay deal with striking miners in South Africa.

The deal brings to an end a strike lasting nearly six weeks at the Marikana mine in Rustenburg.

The miners, who are mostly rock drill operators, cheered when they were told late on Tuesday that they would get pay rises of between 11% and 22%.

By mid-morning Lonmin shares had fallen back slightly, trading 3.5% higher.

The workers had been demanding a salary of 12,500 rand a month ($1,513; £935). They currently earn between 4,000 and 5,000 rand.

The agreement also includes a signing bonus of 2,000 rand for employees.

Last month, police opened fire on demonstrators at the mine in Marikana, killing 34 striking workers.

In total 44 people died at the Lonmin-owned mine in mid-August and many others were injured. Unrest has also spread to other mines.

19 Sep, 2012

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Workers turn away from pensions

19 September 2012 Last updated at 04:59 ET

The number of people actively paying into a workplace pension scheme dropped for a third consecutive year in 2011, official figures show.

Some 8.2 million people were active members of pension schemes at work, down from 8.3 million the previous year, the Office for National Statistics said (ONS).

The fall came from a dip in membership in the private sector.

However, the figures are expected to pick up as a new pension policy starts.

A policy of automatic enrolment will be phased in from October that will see workers signed up to a workplace pension scheme, unless they opt out.

The government hopes that the policy - one of the biggest ever changes in the UK pension landscape - will encourage more people to save for their old age.

19 Sep, 2012

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Zara owner Inditex profits up 32%

19 September 2012 Last updated at 04:31 ET

The world's largest clothing retailer, Inditex, which owns Zara, has posted a jump in first-half profit after opening new stores and gaining new customers.

Inditex reported a net profit of 944m euros ($1.23bn; £758m) for the six months to 31 July, up 32% on the same period last year.

Net sales rose 17% to 7.2bn euros, while like-for-like sales, which excludes new store openings, rose 7%.

Inditex's other brands include Massimo Dutti, Bershka and Oysho.

The group opened 166 stores in the first half of the year, taking its total store count to 5,693 across 85 countries.

It said it had invested 450m euros in its home market of Spain - in commercial and logistics activities aimed at supporting international growth.

Online push

Inditex also gave an update on trading in the current quarter. It said that sales between 1 August and 17 September were up 17%.

It is also making a push into online retailing. It launched Zara online in China on 5 September and has plans to start Massimo Dutti and Zara Home online sales in the US in October.

"The drivers are certainly there - the rapid roll-out of online sales and fast fashion - but even so it's a spectacular performance," said Societe Generale analyst Anne Critchlow.

"Online is allowing Inditex to access customers that wouldn't be near one of its concept stores," she added.

Shares in Inditex were up 3.8% in morning trading in Madrid.

19 Sep, 2012

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Newbury Racecourse in land sale

19 September 2012 Last updated at 04:02 ET

The owners of Newbury Racecourse have sold part of the land to property developers who intend to build 1,500 homes over the next 10 years.

Newbury Racecourse plc has sold land on its western, central and eastern sites to David Wilson Homes, part of Barratt.

David Wilson will pay "a minimum of £42.6m for the land", with the proceeds funding new racecourse facilities.

The company said it expected housebuilding to start this year, with homes going on sale in mid-2013.

The sale is intended to fund a major upgrade of the Berkshire racecourse.

Facilities for horses to be bred and cared for inside the racecourse grounds, including a new facility to house stable staff, new stables, a new paddock and improved facilities for owners and trainers are to be discussed by the board.

Newbury Racecourse has estimated that its improvement plans will cost up to £12m, with works commencing - if funding is in place - in 2014 and 2015.

As part of the sale, David Wilson will pay £5.1m up front, with most of the balance near the end of the decade-long project.

Newbury Racecourse hopes raise more money from investors on the back of the proceeds from David Wilson.

Consultation with the local community on the plans will continue through the Newbury Racecourse Public Liaison Group.

The owners of the racecourse have said that they want it to be profitable all year round, not just when major events are held.

Dominic Burke, chairman of Newbury Racecourse, said that the sale was "a key stage in our long term strategy of releasing value from our land assets to develop the facilities and infrastructure of the racecourse".

About 30% of the homes to be built are intended to be affordable and shared-equity properties.

19 Sep, 2012

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French Connection reports loss

19 September 2012 Last updated at 02:31 ET

Fashion chain French Connection has reported a half-year loss after sales fell during what it described as a "very difficult" six months.

The firm - which had issued a profit warning in May - reported a loss of £6.3m for the six months to 31 July, down from a £700,000 profit last year.

Revenues fell by 7% to £96m, and sales in the UK and Europe - which account for half its revenue - fell 10%.

Profit margins were also hit as it cut prices to try to drive sales.

19 Sep, 2012

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BoJ extends asset purchase scheme

19 September 2012 Last updated at 02:35 ET

The Bank of Japan (BoJ) has extended its asset purchasing programme by 10 trillion yen ($126bn; £78bn), following similar moves by the Federal Reserve and the European Central Bank.

The move, aimed at boosting the economy, increases the overall size of the stimulus programme to 80tn yen.

Though the increase had been widely anticipated, some analysts were surprised by the size of it.

Finance Minister Jun Azumi said the BoJ "took more action than we anticipated".

Under the asset purchasing programme the central bank buys bonds in order to keep the long-term cost of borrowing down.

The BoJ also left interest rates unchanged at between zero and 0.1%.

The market responded positively to the news, with the Nikkei 225 index rising to a four-month high, while the yen fell against both the dollar and the euro.

The yen has strengthened in recent weeks, hurting Japan's export-led economy.

"This is a positive for the economy in the sense that it prevents the yen from rising," said Hiroaku Muto, senior economist at Sumitomo Mitsui Asset Management.

"But capital expenditure and the domestic economy won't pick up until Europe's crisis abates and the US economy stabilises."

19 Sep, 2012

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Youth jobs plan is 'insufficient'

18 September 2012 Last updated at 19:49 ET

The government's youth contract is not enough to tackle the scale of youth unemployment, a group of MPs has said.

The youth contract provides £1bn for a range of schemes aimed at getting young people into work.

The Work and Pensions Select Committee said the contract was "a good start" but alone would not be enough "to address the current unacceptably high level of youth unemployment".

Labour said the report showed the government should "change course fast".

The government's youth contract brings together £1bn of funding for a number of schemes, up until 2015, to help get young people into work.

'Eye-catching targets'

Measures include providing 160,000 employers with a "wage incentive" of £2,275 to take on an unemployed 18-24 year-olds, 250,000 work experience placements and additional support from Jobcentre Plus.

If all targets are met, the contract is expected to create an additional 430,000 work opportunities over the next three years.

Dame Anne Begg, chair of the committee, said she welcomed the contract, particularly the increased support from Jobcentre Plus advisers and the widening of work experience opportunities.

The committee also praised the creation of a scheme targeted at 16 and 17 year-olds who are not in education, employment or training - the majority of whom do not receive support from Jobcentre Plus because they are not eligible to claim Jobseekers Allowance.

Dame Anne said: "Some of the measures in the youth contract have been shown to be effective but they will only make a significant impact if all the targets are met.

"Our concern is that there is a real risk that the government will fall short of its more eye-catching targets.

"In particular, past experience shows that 160,000 wage incentives is a very ambitious target in the current economic climate.

"And 250,000 additional work experience placements for young people may also be unrealistic."

'Wake-up call'

The committee said the government needed to widen its criteria for the scheme for 16 and 17 year-olds - which is currently only open to those with no GCSEs.

On wage incentives, the committee said their impact would be "only at the margins" and the government should keep under review the amount it pays employers.

More money may be needed in areas where youth unemployment is particularly high and to encourage the recruitment of disabled people and ethnic minorities.

The committee called for the government to simplify access for employers to the numerous schemes by setting up a dedicated telephone helpline for those who want to offer a job, training or work experience to young people.

Labour's shadow work and pensions secretary Liam Byrne said: "This major cross-party report is crystal clear: the Tory-led government's plan for youth jobs is failing and we need to change course fast."

"This is now a very loud wake-up call, at a time when the country is in a double-dip recession made in Downing Street."

Ronan Dunne, chief executive of O2, said: "Today's report shows that the youth contract hasn't yet had the impact needed to tackle the level of UK youth unemployment.

"I believe that it's not only the businesses that have signed up to the youth contract who can act to help the one million unemployed young people, rather all businesses, big and small, have a role to play in supporting young people on their journey to work.

"This can be anything from offering quality work experience and apprenticeships through to mentoring."

19 Sep, 2012

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Heineken ends Tiger beer standoff

19 September 2012 Last updated at 00:25 ET

Dutch brewer Heineken has ended the standoff over control of the maker of Tiger beer, by garnering the support of a Thai billionaire.

Charoen Sirivadhanabhakdi's ThaiBev and TCC Assets have agreed to back the sale of Singapore-based Fraser and Neave's (F&N) stake in Asia Pacific Breweries (APB) to Heineken.

Heineken has offered 5.6bn Singapore dollars ($4.6bn; £2.8bn).

Analysts said chances of Heineken's bid being accepted by F&N were now higher.

"Thai tycoon Charoen has backed down and handed Heineken a free passage to takeover APB," said Justin Harper from IG Markets in Singapore in a note to clients.

"While he pursues the acquisition of its joint parent company Fraser & Neave."

Last week, Mr Sirivadhanabhakdi, whose companies own about 30% of F&N, made an offer to acquire the rest for almost S$9bn.

It was the latest escalation after months of a bidding war for the assets.

In a joint statement Tuesday, the companies said Heineken will not make an offer for shares in F&N.

Analysts said the two parties appeared to have reached a settlement to prevent the deals costing more for both.

"It could be a win-win for everyone involved. Heineken gets its prized asset of APB, the Thais get a good price which will help fund their takeover of F&N," said Mr Harper.

The board of F&N has already given its approval for the Heineken bid. The shareholders will meet to vote on 28 September.

19 Sep, 2012

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JAL shares rise on re-listing

18 September 2012 Last updated at 20:45 ET

Japan Airlines (JAL) shares rose 2.6% on strong demand, almost three years after it filed for bankruptcy in one of Japan's biggest corporate failures.

JAL shares climbed as high as 3,890 yen, up from its re-listing price of 3,790 yen on the Tokyo Stock Exchange.

The 663bn yen ($8.4bn; £5.2bn) initial public offering comes after the airline was given a government-backed bail out in 2010.

It is the second biggest share sale this year globally after Facebook.

Since it was de-listed from the stock exchange, JAL has taken on huge restructuring, cutting more than a third of its workforce, cancelling unprofitable routes and replacing older planes.

19 Sep, 2012

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Business bank will 'need £40bn'

18 September 2012 Last updated at 19:07 ET

The government-backed "business bank" planned by Vince Cable will need £40bn to successfully boost lending to UK firms, say the think tank IPPR.

It says the bank must also be able to tap bond markets for up to £100bn.

The IPPR also suggests the government allow the bank to invest in infrastructure projects such as road building to help reflate the economy.

The business secretary announced plans for the business bank last week.

Mr Cable has said he hoped such a bank would "shake up the market" and help boost overall lending to firms.

How the bank will be structured and funded is still being worked out.

Sketchy

Details on what form the business bank will take have yet to be revealed. Nor have any details been released about what firms it will aim to lend to, or the length in years of any loan agreements.

Mr Cable, a Liberal Democrat member of the coalition government, has said the details are still in "gestation" but "may" involve some state lending, although the Treasury, with Conservative Chancellor George Osborne in charge, is understood to be against this.

The IPPR's chief economist, Tony Dolphin, said: "Because the chancellor will not spend more government money boosting aggregate demand in the economy, he has been reduced to indirect schemes like funding for lending to support growth.

"What we need in the UK is a fully-fledged British investment bank designed to suit the particular circumstances of our economy."

The think tank points out that the £40bn of government capital it believes is needed to kick start the project is unlikely to appeal to the chancellor as it would make it unlikely he would meet his fiscal targets designed to rein in government spending and cut the gap between income and spending.

19 Sep, 2012

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Rachel Lomax 'no' for Bank chief

18 September 2012 Last updated at 18:41 ET

The former deputy governor of the Bank of England Rachel Lomax says she will not be applying to be the bank's next governor.

The economist - who previously sat on the Bank's Monetary Policy Committee - had been named as the leading female candidate to take over from Sir Mervyn King.

Sir Mervyn is due to step down next year.

Ms Lomax made the remarks to Evan Davis on Radio 4's The Bottom Line.

Ms Lomax, who was deputy governor from 2003 to 2008, discussed her time working for the Bank the lead-up to the financial crisis, and outlined the characteristics she thinks the next governor will need.

She left just before the collapse of Lehman Brothers in 2008.

She described the period she was there as "one of sort of unreal calm for the first four years and then this very terrifying period, the last year I was there, when markets froze.

"We knew that something was bad happening, but we really didn't know, couldn't really imagine how bad it was going to be. I mean, I left the bank just before Lehmans collapsed and it's got a lot more interesting since I left."

She said Sir Mervyn's successor would have a "huge job".

The Bank is adding to its current role and is taking over from the Financial Services Authority.

It will be in charge of overseeing the banking system, financial firms and the system in general to prevent new speculative bubbles appearing.

No women

"It's going to be a very different organization - much bigger and more complex organization than the one that Mervyn King's presided over. So you need someone who can get their mind round that and at least sort of lead the change and put together the team that can implement it."

She said the job was not for her and that "life had moved on". She also expressed disappointment that there are no other credible female candidates.

Ms Lomax is now a non-executive director of HSBC, where she is also a member of several audit and risk committees.

An advert for Sir Mervyn King's replacement was published in the Economist magazine last Friday.

A Bank spokesman confirmed to the BBC that the issue of compensation for the next governor had yet to be decided.

Sir Mervyn benefited from a final-salary pension scheme that will pay him an annual pension of just over £200,000.

His pension basic salary - frozen since 2010 - is £305,000 a year so the Bank may have to offer his successor a less generous pension, and may have to pay a higher salary.

Rachel Lomax appears on Radio 4's The Bottom Line on Thursday, 20 September at 20:30 BST. Listen again to programme via the Radio 4 website or The Bottom Line download.The Bank of England has begun advertising the job of its next governor, but is still "undecided" on what pay and pension it will offer.

19 Sep, 2012

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URGENT URGENT

Dear friend, I know that this message will come to you as a surprise. I am Dr.Abu Salam from Burkina Faso the Accounting and Auditing Manager bank of Africa (B.O.A), Ouagadougou I hoped that you will not expose or betray this trust and confident that I am about to repose on you for the mutual benefit of our families. I need your urgent assistance in transferring the sum of (usd$10.5m) million to your account within 10 to 14 banking days. This money has been dormant for years in our bank without claim. I want the bank to release the money to you as the nearest person to our deceased customer (the owner of the account) died along with his supposed next of kin in an air crash since July, 2005. I don't want the money to go into our bank treasurer account as an abandoned fund. So this is the reason why I contacted you so that the bank can release the money to you as the next of kin to the deceased customer. Please I would like you to keep this proposal as a top secret and delete it if you are not upon receipt of your reply, I will give you full details on how the business will be executed and also note that you will have 35% of the above mentioned sum if you agree to handle this business with me? And 10% will be set aside for any expenses that warrant on the process before the fund get into your bank account such as telephone calls bills (etc). Finally send your photo or your international passports for more identification. Best Regards, Dr.Abu Salam

04.23 | 0 komentar | Read More