Key party quits India government

18 September 2012 Last updated at 12:53 ET

A key regional party has pulled out of India's ruling coalition over its plan to open the retail sector to global supermarket chains and other reforms.

The Trinamool Congress party of West Bengal Chief Minister Mamata Banerjee said that its six ministers would resign from the coalition on Friday.

Ms Banerjee, who is also angry at fuel price rises, said her 19 MPs would not back the coalition in parliament.

Correspondents say the government's parliamentary majority is not at risk.

"My party's six ministers have decided to resign. It is time to fight the battle alone," said Ms Banerjee after a meeting of Trinamool leaders in Calcutta, the capital of West Bengal state.

Earlier on Tuesday Indian India's Finance Minister P Chidambaram insisted that the government was stable despite the unhappiness among its coalition partners over plans to introduce more measures to boost the economy.

"Our allies in the government and outside will understand and continue their support to the government. We will be able to convince our allies," he said.

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

Last year, the government was forced to suspend a similar plan amid protests. Opposition parties have called for a strike on Thursday in protest over the latest moves to attract more Foreign Direct Investment (FDI).

On Friday, the government also announced it would open airlines to foreign capital, sell minority stakes in four state-run companies and increase the price of diesel - all measures that have attracted sharp criticism from across the political spectrum.

Correspondents say that the implementation of many of the reforms will be left entirely to the states, suggesting that some opposed to the changes could opt out.

Other conditions have also been imposed on groups wanting to invest in India.

Companies will have to invest at least $100m (£67m), open outlets only in towns with a population of more than one million and source at least 30% of produce from India, according to reports.

Many of the larger states like Uttar Pradesh, Madhya Pradesh, West Bengal, Bihar and Orissa, which are ruled by opposition parties and Congress allies who are against organised retail, have refused to entertain proposals by global retailers.

Only nine states, including several smaller ones like Delhi, Indian-administered Kashmir, Assam, Manipur and Uttarakhand, support the move.

19 Sep, 2012

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SA miners 'to go back to work'

18 September 2012 Last updated at 12:47 ET

Striking miners at a Lonmin-owned platinum mine in South Africa have agreed to return to work on Thursday, mediators and reports say.

Miners cheered when they were told of a proposed 22% pay rise, a witness told Reuters news agency.

But South Africa's labour dispute body told the BBC it was waiting to hear if the latest pay offer had been accepted.

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

Production at the mine has been paralysed for weeks and unrest has spread to other mines.

The Commission for Conciliation, Mediation and Arbitration told the BBC a delegation of workers representatives had gone to inform the striking miners of the latest offer this afternoon.

The workers, most of who are rock drill operators, gathered at a football pitch near the Marikana mine to hear the address. They have been demanding a salary of 12,500 rand ($1,513; £935) - they currently earn between 4,000 and 5,000 rand.

"What has happened here has been a victory really for the workers, and they're going to work on Thursday morning," AFP news agency quotes mediator Joe Seoka, the Bishop of Pretoria, as saying.

Bishop Seoka, from the South African Council of Churches, told the BBC there would also be a one-off payment of 2,000 rand to help cover the weeks of not being paid while they were on strike.

He refused to give any further details of the offer.

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

19 Sep, 2012

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Uganda confirms new oil deposits

18 September 2012 Last updated at 11:29 ET

Uganda has confirmed the discovery of an additional one billion barrels of oil in the country.

In 2010, it had announced it had discovered commercially viable deposits of 2.5 billion barrels.

However, the commissioner for petroleum exploration told the BBC that deposits were now at least 3.5 billion barrels.

"This is because of new discoveries, and also the ability to extract more oil from existing wells," Ernest Rubondo told World Business Report.

Investors sought

Mr Rubondo said that out of 77 wells drilled so far, 70 contain oil and gas.

Companies such Tullow Oil, Total and CNOOC already operate in Uganda, but Mr Rubondo said he was looking for other investors to join them.

Before that happens, changes to the previous licensing bills have to be made in parliament,

"Bills were passed before the presence of oil was confirmed and now the risk for commercial companies has reduced," he said.

Continue reading the main story

A nation's security of supply for petroleum products enhances its competitiveness"

End Quote Ernest Rubondo Commissioner for petroleum exploration

Critics say that production in existing fields has been delayed by contractual disagreements, tax disputes and infrastructure setbacks.

"When oil is discovered in the middle of the country there are logistical problems which have to be overcome before it can be shipped," Mr Rubondo said.

"You cannot compare it to oil and gas discovered in the middle of the ocean," he said, "where you just have to load it onto a tanker."

He pointed out that anywhere in the world, it can take between eight and 10 years from the discovery of oil on land, to actually extracting it.

Rather than exporting the oil, he said that it was government policy to refine the oil in Uganda to provide petrol, diesel and jet fuel.

"A nation's security of supply for petroleum products enhances its competitiveness," he said.

When commenting on whether ordinary citizens would share in the wealth generated by oil, he said: "There is a communication strategy on our website so stakeholders can see exactly what is happening.

"The constitution provides laws on how local and central governments share the royalties," he added.

18 Sep, 2012

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Fedex warns of weakening economy

18 September 2012 Last updated at 10:19 ET

Global shipping service company Fedex has cut its full-year profit forecast, warning that the global economy is continuing to weaken.

The company, whose earnings are widely watched because of the number of countries it does business in said its net income for the first quarter had fallen 1% on last year to $459m.

Fedex said it expected annual profits to be about 10% lower than expected.

Customers are moving business from air to slower and less expensive routes.

Fedex is the world's second largest package delivery company.

18 Sep, 2012

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Electronic Arts creates 300 jobs

18 September 2012 Last updated at 09:00 ET

Games company Electronic Arts is creating 300 new jobs at its European customer service centre in Galway, in the Republic of Ireland.

The centre already has a 400-strong workforce.

The US firm said it had received support from the Irish government, which is keen to attract more digital games firms to the country.

Irish premier Enda Kenny said the new jobs showed the "enormous potential" of the gaming industry.

It has been a difficult time for games retailers such as Game Group, which went into administration earlier this year, with the loss of more than 2,000 jobs.

Peter Moore, chief operating officer of Electronic Arts, told BBC News that the industry was changing, adding that some of the Game stores were reopening under new ownership.

And he said that the creation of the customer service showed how quickly the industry was moving away from sales of boxed games on the High Street and "evolving quickly to digital".

"More and more we are dealing direct with consumers," he said.

18 Sep, 2012

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Man Utd net profits rise to £23m

18 September 2012 Last updated at 09:22 ET

Profits at Manchester United football club jumped 79.2% to £23.3m in year to 30 June, according to latest figures.

However, the numbers, the first since the club floated on the New York stock exchange last month, show that total revenues fell 3.3% to £320m.

Earnings from commercial operations, which includes sponsorship, hit a record £117.6, up 13.7%.

Shares in the club were floated 10 August at $14 each, but have since fallen.

18 Sep, 2012

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Bank account exclusion 'rethink'

18 September 2012 Last updated at 08:26 ET

Banks need to "look again" at financial inclusion after new bankrupts saw the end to a choice of bank accounts, a minister has said.

The new consumer minister, Jo Swinson, said that the Co-op's withdrawal of basic bank accounts for undischarged bankrupts was "disappointing news".

She said the government would continue discussions with the banks.

Barclays is now the only bank to offer a bank account to people in the 12 months after a bankruptcy order.

'Opportunity'

People who have been made bankrupt are generally only allowed to open a basic bank account.

These accounts do not offer overdrafts. Some have a debit card, but only with limited facilities. They do not incur a monthly fee.

On Monday, the Co-op changed its basic Cashminder basic bank account, arguing that all banks should work equally to offer help to those who have been financially excluded.

"The withdrawal of a basic bank account for undischarged bankrupts is disappointing news. Removing options, where there is already limited choice, will only harm those needing access to basic banking services," said Ms Swinson.

"This should be an opportunity for banks to look again at this issue and work with government to make some real progress."

The British Bankers' Association, which represents the UK's major banks, said that banks faced other difficulties if they decided to take on bankrupt customers.

"Banks who accept bankrupt customers open themselves to potential legal challenges from their customer's creditors, who could have a legal claim to money passing through the account," said a BBA spokesman.

18 Sep, 2012

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Two-speed housing market persists

18 September 2012 Last updated at 06:33 ET

House prices continued to accelerate much quicker in London than the rest of the UK, latest figures show.

UK property prices rose by 2% in the year to the end of July - lower than the rate of inflation - according to the Office for National Statistics (ONS).

However, prices increased by 5.7% in London over the same period, the figures show.

There were price falls in Scotland, Wales and Northern Ireland.

Prices dropped by 1.1% over the year in Scotland, by 0.2% in Wales and by 10.9% in Northern Ireland, the ONS statistics show.

In England, property prices grew by 2.4%, although this was driven by the price rises seen in London.

"Equity rich and cash buyers remain the key players in today's housing market, with lending levels still historically subdued - and this is focusing the main price growth in London," said Peter Rollings, chief executive of estate agent Marsh and Parsons.

In the month from June to July, prices were unchanged in the UK as a whole, the ONS said.

18 Sep, 2012

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Spanish bank bad debts at record

The value of bad debts held by Spain's banks in July rose to 169.3bn euros ($221bn; £136bn), according to latest figures from the central bank.

The Bank of Spain said 9.9% of banks' total loans were in arrears, up from 9.4% a month before.
It was the highest bad loan ratio since the central bank began compiling the data in 1962.

Despite the news, Spain raised 4.6bn euros in 12- and 18-month loans on the bond markets on Tuesday.
That helped 10-year Spanish yields ease back from Monday's highs of more than 6%, dipping to 5.97% on Tuesday.

Spanish banks' bad debts have risen steadily since the property bubble burst four years ago and the country fell into recession.

Almost a quarter of Spaniards are now out of work, and many analysts believe Spain is inching closer towards seeking a full financial bailout.

The results of a final stress test on Spain's banks are due to be published on 28 September, and will provide a basis for calculations as to which banks should receive European Union funds and how much they should get.

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Lawyers face tax dodging action

18 September 2012 Last updated at 05:52 ET

Tax inspectors are to target the legal profession among others during their latest trawl for suspected tax dodging.

Solicitors and barristers in London will be examined for a suspected shortfall in tax payments of £3m, HM Revenue and Customs (HMRC) said.

Other sectors to be investigated include motor traders in Scotland and hair and beauty specialists in the North East of England.

HMRC investigators will visit traders and inspect their books.

"These taskforces bring together specialists from across HMRC to find people who are not paying what they should," said Mike Eland, of HMRC.

"If you have paid all your taxes you have nothing to worry about. But for those deliberately evading tax, be warned that HMRC is coming after you."

Collection target

The UK tax authority has previously launched 30 "taskforces" to make rapid inspections of various trades and professions.

These have included the rag trade - involved in the import, wholesale, marketing and sale of clothing - and the motor trade, as well as indoor and outdoor markets. Restaurants and scrap metal firms have also been put under the microscope.

HMRC said that it expected to collect £50m in unpaid tax owing to the work of existing units, as part of a wider campaign aimed at tackling tax avoidance, evasion and fraud.

The latest sectors announced to be targeted, as well as lawyers, are:

• Grocery and retail in South and North Wales, the North West of England and the South West of England - expected to bring in £3.75m
• Hair and beauty in the North East of England - expected to yield £3.75m
• Restaurants in the South East of England and the Solent - expected to discover £2.5m
• The motor trade in Scotland - expected to bring in £3m

"We have made it clear that we will not tolerate tax evasion and we are determined to crack down on the minority who choose to break the rules," said the Exchequer Secretary David Gauke.

18 Sep, 2012

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