Qantas buys 110 Airbus aircraft

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AppId is over the quota
6 October 2011 Last updated at 07:18 GMT Qantas is launching two new airlines in Asia European aircraft maker Airbus has struck a deal worth US$9.5bn (￡6.2bn) with Australia's Qantas for 110 jets.

The order, said by Qantas to be the country's single largest aircraft purchase by units, will underpin the airline's expansion into Asia.

Qantas, which is launching a low-cost and a premium airline in Asia, is buying 78 Airbus 320neos and 32 A320s.

Meanwhile, Airbus said it may help customers with aircraft financing if the euro debt crisis affects orders.

Qantas' expansion plans in Asia include a low-cost tie-up with Japan Airlines and Mitsubishi Corp, as well as a separate joint-venture premium airline.

The next-generation A320neo burns about 15% less fuel than the original A320 and is a key part of EADS-owned Airbus's growth plans.

Separately, Airbus said that it could get involved in debt financing to help customers if market conditions worsen.

There have been reports that banks and institutions that bankroll the airline market are starting to scale back lending.

"We will, if necessary, enter into some financing, although we're not a bank," Tom Williams, Airbus executive vice president, told a news conference in Sydney.

Airbus and rival Boeing have been ramping up production in the last couple of years.

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Flybe shares sink on sales slump

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AppId is over the quota
5 October 2011 Last updated at 16:02 GMT Shares in airline group Flybe fell 36% after it unveiled its second profits warning in five months.

Continue reading the main story The Exeter-based airline said it noted a "significant slowdown in sales" across its UK domestic network.

The fall in demand will mean a sales drop of 1% for the first half of its financial year, it added.

In May, it warned of the impact of the spending slowdown, as well as unveiling a ￡3 fuel surcharge for all flights which came into force last month.

Revenues at Flybe were 3% higher than last year when taking into account the impact of the 2010 volcanic ash disruption, which cost the company about ￡12m.

Underlying seat numbers flown fell 1.7%, while revenue per seat grew by 6%.

Shares fell 40% to 60p - a total fall of 80% on the shares' flotation price of 295p in December 2010.

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Heathrow triples anti-snow teams

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AppId is over the quota
29 September 2011 Last updated at 11:38 GMT ￡11m has been invested in equipment to avoid chaos.

Heathrow airport has tripled the number of snow clearance vehicles to tackle severe winter weather.

Operator BAA also has three times as many staff ready to clear snow compared with last year.

Thousands of passengers were left stranded at the airport as 4,000 flights were cancelled over five days for heavy snow before Christmas.

But BAA said it now has 185 snow clearance vehicles and has 468 staff per shift, compared to 117 last year.

The operator said it has invested ￡32.4m so far to tackle severe weather.

BAA had been criticised following last year's disruptions and a report accused the operator of a breakdown in communication and lack of "preparedness" for the bad weather.

After the publication of the Winter Resilience Enquiry Report, BAA promised to invest ￡50m to avoid facing disruptions on a similar scale.

Announcing its "winter resilience programme", the airports operator said it has introduced a new "reservist" role whereby up to 950 staff will be deployed to the terminals to help passengers during disruption.

'More to do'

BAA also has plans for a new airport control centre and improvements to passenger information.

But Normand Boivin, chief operating officer of Heathrow, said: "There is more still to do.

"There will be lots of attention on Heathrow the next time it snows heavily.

"We won't be perfect but we will be better and we will improve each time we practise our new response plans.

"There will still be times when, for safety reasons, airports have to close during severe weather, but the work detailed in today's report means this should happen less often at Heathrow and the airport responds better when it does."

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Minimum wage up by 15p to £6.08

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AppId is over the quota
30 September 2011 Last updated at 23:01 GMT The increase takes account of the current economic uncertainty The minimum wage has gone up, with the main rate for adults aged 21 or over rising by 15p to ￡6.08 an hour.

The development rate - for those aged 18 to 20 - goes up by 6p to ￡4.98 an hour, for 16 and 17-year-olds it rises by 4p to ￡3.68 an hour and the hourly apprentice rate rises by 10p to ￡2.60.

The TUC welcomed the rise but Unison said the rates were still too low.

The minimum wage was introduced in 1999 at ￡3.60 an hour for adults, and is set each year by the Low Pay Commission.

The commission recommended this year's increase in a report to the government in April.

It said the increases would balance the needs of low-paid workers and their employers facing difficulties during a period of economic uncertainty.

As levels of youth unemployment are relatively high, it recommended a lower increase for young workers than for their older counterparts, to try to encourage employers to keep them on.

The TUC it estimated the increases would benefit nearly 900,000, mainly female, workers.

The general secretary of the public sector union, Unison, said ￡8 an hour was needed to provide a living wage.

"The rise to ￡6.08 is a welcome cushion, but with the price of everyday essentials such as food, gas and electricity going up massively, it won't lift enough working people out of the poverty trap," Dave Prentis said.

As a result, he called on employers to pay more than the absolute minimum.

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Trading in Dexia shares suspended

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AppId is over the quota
6 October 2011 Last updated at 17:01 GMT Dexia is reported to be selling its Luxembourg business to Qatar for 900m euros Trading of shares in Dexia has been halted by the Euronext stock exchange.

The stop was requested by the Belgian regulator until the troubled Franco-Belgian bank could provide details of a planned sale of its Luxembourg unit.

Its shares had fallen 17.3% during the day up until trading was suspended.

Meanwhile, the French and Belgian governments are negotiating a break-up of the bank - and how to share the cost of rescuing it between them - with a decision expected before the weekend.

Qataris

Dexia has confirmed it is in "exclusive negotiations" with a group of international investors to dispose of Dexia Banque Internationale a Luxembourg (BIL).

The subsidiary employs about 5,500 staff worldwide, 3,700 of whom are based in Luxembourg.

It runs a 40-branch retail network in the country, as well as offering private banking and asset management services.

Continue reading the main story The key buyer is reported to be the Qatari Investment Authority, the country's sovereign wealth fund.

Reports say it may pay 900m euros ($1.2bn, ￡785m) for control of the Dexia unit.

It follows an announcement in August that the Qataris were to become a major shareholder in the merger of two Greek lenders, Alpha Bank and EFG Eurobank.

The government of Luxembourg is also in talks to buy a minority stake. The country's finance minister, Luc Frieden, said he expects discussions to be completed by the end of the month.

Break-up

Dexia is facing its second rescue in three years because of the eurozone debt crisis.

The firm has 3.4bn euros ($4.5bn, ￡2.9bn) of exposure to Greek government bonds, and about four times that amount to Italian sovereign debt.

Ratings agency Moody's put the lender on review for a credit score downgrade on Monday. It said the bank was finding it harder to borrow from the markets.

The news led to a sell-off of Dexia's shares, prompting France and Belgium to announce they would prevent its collapse.

The governments are expected to pool its most risky assets into a "bad bank" and force it to sell off units that provide vital services, including a French division that specialises in lending to local authorities.

Belgium's Prime Minister said the burden must be divided fairly.

Yves Leterme told RTL radio: "This is a very sensitive and crucial part of the negotiations, an equitable split of the costs."

The two countries are expected to finalise the plan before the weekend.

Dexia's board says it intends to meet in Paris on Saturday to vote on the break-up.

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Trend in EU economic bucking of Estonia

October 6, 2011, last updated: 57 GMT by Charlotte Ashton, World Tallin Tallinn, Estonia-Skype, as well as other companies in emerging technologies now has the fastest economic growth in the European Union, so what does Estonia just when other countries are so many economic problems?

Ave Maria Ounapuu enjoys boom of Estonia.

Organic cosmetics company established JOIK four years ago to take its business to making candles.

She has received grants from the European Union for machinery and marketing help, but says the business agenda of the Government of Estonia helped too: "it was pretty easy.

"There was no problem with the regulations, even finding products to sell went smoothly enough.

"You can report your taxes online so you don't need to spend valuable time to forms and things. We don't have our growth to the Government, but they will not put any obstacles in our way. "

Currently, JOIK employs four people, was moved to a larger space. It has an annual turnover of 250,000 euros, on export to countries bordering the Baltic.

Ave Maria Ounapuu says the Government of Estonia has set up an independent business with ease

This is a similar story of Estonia as a whole, as the country has a long way since she joined the EU in 2004.

The initial flow of credit to the construction boom that led to high House, but the bubble burst in 2008, when the country found itself the economic doldrums, it had to smarten up their act.

Labour laws were liberalised, increased retirement age and public spending cut. But the tax remained low to encourage business; Entrepreneurs were fashionable.

Estonia GDP grew at 8.5% in the first quarter of this year, the fastest growth of all the EU economy. One of the biggest growth areas in it technology.

Estonia exports mainly to the EU, but exports of its main markets, Finland, Sweden are distorted

Skype Online software used by people 200 m each month to make free or cheap video phone calls over the Internet, has its development, on the outskirts of Tallinn.

The software was invented in Tallinn of Dane, Swede and Estonians.

Stan Tankivi, head of Skype Estonia, says: "you can show the country of Estonia itself as a witness. It regained independence 20 years ago, the company generally or culture here has very little hierarchy.

"It is very small and nimble, that sort of environment is very positive for entrepreneurship".

In January, Estonia joined the euro. Stability of the currency result, along with those low corporate taxes (zero profits reinvested), this tiny nation of 1.3 m investment very attractive. Exports are soaring, up 53% last year. This summer came the euro 1bn for the first time.

But 70 percent of exports go to EU countries, growth is deteriorating steadily and its two main export markets, Finland and Sweden.

How is the economy of Estonia so fragile?

It is still a net recipient of EU money but its contribution to financial stability facility means that European companies is decreasingly profitable. Contribution of Euro 2bn represents one third of the annual budget.

"We were invited to a wedding but turned out to be a funeral," says Anders Arrak, Estonian who has entrepreneurial University apply.

Read on the Central story

of course we understand what the meaning of the credit crisis, but in Estonia is not a hot topic for us "

end quote Andrus Ansip Estonian Prime ??????"??? us a lot of money from the EU.

"We have already renovated churches and roads. But now we are being asked to pay money to improve the errors made in the past, Greece and the countries of the eurozone.

"It makes sense. We have to invest in the future of Estonia. "

But the Prime Minister of Estonia Andrus Ansip stay safer will continue its growth: "of course we all need to be concerned but our banking sector is doing well, our commercial banks are well capitalised and correspond to the reserves.

"The State the money are the best of all the European Union because we have still 12% GDP reserves.

"Yes, of course, we understand what the meaning of the credit crisis, but in Estonia is not a hot topic for us."

Mr Ansip thank him an erection activities explaining why Estonia, a poor cousin Mizrahi, fresh out of troubled times himself, bail out its richer southern cousins.

Drinkers in the lounge of their obligation to contribute to the Museum say bailouts EU

But support for the European Union young Estonians soothes the unwavering with a glass of wine in one of the new trendy bars, lounge Tallinn Museum.

Memories of Soviet occupation, which ended just 20 years ago, are still fresh among the younger generation.

Ali is a teacher at the school who says it fully supports Estonia's contribution to the bailout.

"I don't even understand what the discussion. We already received money from the EU now is a good thing because ultimately we are in a position to help someone else. I think it's only fair. "

The Museum lounge Manager, ARGO, agrees. "An overview of Estonia in the West now, only the West," he says.

And Estonia are ready to pay the price.

The world tonight is broadcast weekdays on BBC Radio 4: 00 p.m. BST.

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Lone Star guilty of market fraud

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AppId is over the quota
6 October 2011 Last updated at 11:38 GMT Analysts believe the case has put off US investment into Korea A South Korean court has fined US buyout fund Lone Star $20.9m (￡13.4m; 15.6m euros) and jailed its former Seoul chief for stock price-fixing.

The decision by the Seoul High Court overturned a 2008 acquittal in the long-running case.

It had temporarily halted Lone Star's efforts to sell its 51% stake in Korea Exchange Bank (KEB).

Lone Star bought the stake in KEB for $1.2 billion in 2003 and later merged it with KEB's credit card business.

Spread rumours

It was alleged Paul Yoo, who ran the firm's South Korean division, deliberately spread rumours that KEB Credit Services might reduce its capital and issue new shares, to reduce the price of a merger.

Yoo has been jailed for three years.

Lone Star has reached an agreement to sell its KEB stake to Hana Financial Group in a deal originally assessed to be worth $4bn. But the deal was put on hold awaiting the outcome of the court ruling.

The conviction, according to Seoul's Financial Services Commission, said Lone Star was likely to be judged unfit to be the majority owner of KEB.

The court case had thwarted Lone Star's attempt to sell KEB to Kookmin Bank in 2006 and to HSBC Holdings in 2008.

Public discord and the US buyout firm's legal woes have dissuaded foreign investors from acquiring Korean companies, said Henry Seggerman, president of New York-based International Investment Advisers.

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Online traders' 'refund failings'

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AppId is over the quota
6 October 2011 Last updated at 12:15 GMT By Kevin Peachey Personal finance reporter, BBC News The test purchases were part of an EU-wide campaign to check consumer rights More than half of traders failed to give full refunds to customers who pulled out of online purchases during a cooling-off period, tests have shown.

Under consumer rights law, all costs - including delivery costs - should be refunded if consumers decide to cancel the contract in the allotted time.

Test purchasing by European authorities found that in 57% of cases, traders failed to reimburse delivery costs.

A BBC investigation highlighted the issue in December.

Online shopping

When buying from the internet, unlike in a shop, customers are unable to examine the goods before they buy them.

As a result, a cooling-off period is available to people shopping online. In the UK, shoppers have seven working days to return items bought on the internet that they do not want to keep. In some European countries it is longer.

There are a few exceptions, such as unwrapped CDs and perishable goods, but otherwise the money should be credited to the buyer's account as soon as possible and within 30 days at the latest.

Continue reading the main story In the UK, there is a cooling-off period of seven working days for unwanted itemsTraders should refund within 30 days, unless previously agreed otherwiseDelivery charges should also be reimbursedSome perishable goods such as foods and flowers are exemptRights for goods that are not of satisfactory quality are the same as the High Street - a refund, replacement or repairAny refund should include delivery costs incurred by the customer.

During a mystery shopping exercise by European authorities in 2003, these delivery costs were not reimbursed in 53% of cases.

But 305 tests earlier this year, by the European Consumer Centres' Network, found that this had increased to 57%, although refunds for the items themselves were paid in 90% of cases.

"This needs to improve in order to ensure a continuous positive development in cross-border e-commerce," a spokesman for the UK European Consumer Centre said.

In 7% of all the purchases made, the trader did not inform the customer about the price of the delivery costs at all.

Changes

Some results of the test purchases do make better reading for consumers.

For example, the delivery rate for items ordered online improved significantly compared with 2003, as had the number of items delivered within 14 days. There was also an increase in the number of websites offering information in more than one language.

Many of the current consumer rules operating in EU countries pre-date the widespread use of the internet by shoppers.

So MEPs have approved plans to update the rules, including a 14-calendar-day cooling-off period for online purchases.

Governments will have two years to implement the changes.

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Kingfisher to end budget airline

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AppId is over the quota
28 September 2011 Last updated at 14:43 GMT Mr Mallya says there are enough passengers who want to use the non-budget service India's Kingfisher Airlines plans to pilot a new premium business model and ground its existing low-cost outfit.

The airline, India's second biggest private carrier, is run by drinks baron Vijay Mallya, who said changes would come in the next four months.

The budget arm of the airline, which was created in 2008, is called Kingfisher Red.

"We are doing away with Kingfisher Red because we do not intend to compete in the low-cost segment," Mr Mallya said.

'Better yields'

"We believe that there are more than enough guests who prefer to travel the full service Kingfisher class and that shows through in our own performance where load factors in the Kingfisher class are more than Kingfisher Red," he said.

Kingfisher started business as a full service carrier in 2005. Three years later it bought out Deccan, India's first budget airline, and the merger resulted in the budget arm being created.

"The margins of Kingfisher class are higher than Kingfisher Red. That's because the yields are better," Mr Mallya, who is chairman and chief executive of Kingfisher, added.

The move bucks the current trend in Indian aviation, where half of the six major airlines are budget carriers.

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Knowledge economy: Global best school buildings

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AppId is over the quota
4 October 2011 Last updated at 23:30 GMT

Photos from around the world on 4 October

Court overturns convictions of Knox and Sollecito

Attack in the Somali capital, Mogadishu

Hundreds camp out in New York's financial district

Libyan transitional authority troops ceasefire

Anti-Wall Street protest march

Nalgae makes landfall in Philippines

A selection of pictures from this week's news

Anti-Gaddafi fighters capture Sirte airport

Photos from around the world on 29 Sept

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VIDEO: 'Too much euphoria' over Asian economy

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AppId is over the quota

Asian nations face huge unresolved challenges - of poverty, poor governance and environmental degradation.

Stephen Sackur spoke to Rajat Nag, Managing Director General of the Asian Development Bank about inequality and governance in Asia, and asked whether there is too much optimism about Asian economy growth.

You can watch the full interview on Wednesday 5 October on BBC World News at 03:30 GMT, 08:30 GMT, 15:30 GMT and 20:30 GMT.

And on BBC News Channel at 04.30 BST on Wednesday repeated on Thursday 00.30 BST.

Find out who is coming up on the programme by following us on Twitter.

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VIDEO: Syrian protests hit Lebanon tourism

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AppId is over the quota
2 October 2011 Last updated at 19:03 GMT Help

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VIDEO: Check, check and check again

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AppId is over the quota
29 September 2011 Last updated at 14:12 GMT Help

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Games journey times 'may double'

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AppId is over the quota
2 October 2011 Last updated at 17:00 GMT TfL has said Games Lanes will contribute to increased traffic in some areas of London Journey times on some of London's roads could more than double during the Olympics next year, Transport for London (TfL) has admitted.

The information was in a brief sent to businesses about the Games.

Commuters have been warned of huge delays as an extra 5.3 million visitors are expected in London for the event.

Transport Minister Theresa Villiers said she was confident about the preparations being carried out by TfL to cope with the extra demands.

In an interview with the BBC's Politics Show on Sunday she said: "TfL are focused on keeping London moving during what is going to be the largest event ever hosted in this country.

"It will mean some transport disruption and there will be pressure on the transport system but we will adapt to minimise disruption."

She said businesses were actively engaging with TfL but admitted there was more to do.

A TfL spokesman said: "We have been clear that at certain times and places the transport network will be much busier than usual, which is why we are already working with businesses to ensure they can keep on running and make the most of the great financial opportunities offered by the Games.

"While the transport network will be very busy, we are confident that we will keep London moving while delivering a hugely successful Games."

Commuters have already been warned there could be huge delays to get into large stations such as London Bridge because of the extra pressure on the transport network.

In April a London Assembly report claimed transport problems remained "one of the biggest risks" to the 2012 Olympics.

And in July TfL admitted the "Games Lanes" - dedicated lanes for Olympic athletes and VIPs - would put greater traffic demands on certain parts of the network during the Olympics.

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VIDEO: Larry Summers on bank run fears

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AppId is over the quota
29 September 2011 Last updated at 15:52 GMT Help

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Arsenal financial future 'secure'

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AppId is over the quota
Arsenal moved from Highbury to Emirates Stadium in 2006 Chief executive Ivan Gazidis has said Arsenal's financial future is bright despite a fall in turnover and profit.

The Gunners reported group turnover for the year ending 31 May as ￡255.7m, down from ￡379.9m in 2010, while profit was also reduced from ￡56m to ￡14.8m.

Gazidis told the club website: "We are very secure - it's a good set of results again.

"This is a very solid, very healthy set of results and it gives us a good platform to move forward from."

Continue reading the main story

Arsenal's accounts do not include the ￡30m gained from the sale of Cesc Fabregas, the ￡24m received for Samir Nasri or the ￡7m paid by Manchester City for Gael Clichy

A reduced income from property sales at the Highbury redevelopment and increase in player wages have played their part in the drops, but the figures do not include the sales of midfielders Cesc Fabregas and Samir Nasri to Barcelona and Manchester City respectively.

"We didn't have the same kind of profit from player sales that we had in the previous season and that explains the slight reduction in profit," added Gazidis.

"We haven't seen the same kind of profits from the property side that we have seen in the past but that was entirely to be expected. Our property business is debt-free so any new sales of property do accumulate cash, which is very positive for the future."

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Mongolia and Rio reach stake deal

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AppId is over the quota
7 October 2011 Last updated at 05:09 GMT Resource-rich Mongolia has attracted many foreign investors Mongolia and mining giant Rio Tinto and Ivanhoe have reached an agreement on stakeholding of the Oyu Tolgoi project in the resource-rich country.

The Mongolian government had sought to increase its stake in the mine to 50% from 34% as previously agreed.

The mining companies had said that the government should honour an original agreement signed in 2009.

When completed, the project is expected to be one of the biggest copper mines in the world.

According to the initial agreement, Mongolia government could renegotiate its stake after a period of 30 years.

However, the authorities had wanted to bring forward the negotiation period, a move that did not go down well with the miners as well as industry analysts.

In a joint statement released on Wednesday, they said "all parties have reaffirmed their continued support for the investment agreement and its implementation".

Shares of Ivanhoe rose as much as 18% on the Toronto Stock Exchange.

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Australia's trade surplus widens

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AppId is over the quota
4 October 2011 Last updated at 04:59 GMT Australia's coal exports have been picking up after being hurt by floods earlier this year Australia's trade surplus surged in August as exports of coal and other minerals increased despite concerns of a global slowdown.

Shipments from Australia grew 8% from the previous month, while imports rose 3%, the statistical bureau said.

That resulted in a trade surplus of 3.1bn Australian dollars ($2.9bn; ￡1.9bn), the second-largest on record.

Meanwhile, the Reserve Bank of Australia (RBA) left the interest rate unchanged at 4.75%

The data comes amid concerns that fears of a slowdown may hurt demand for Australia's mineral exports.

"Export volumes are really kicking along and that will be a big fillip for the economy in the quarter," said Brian Redican of Macquarie.

Asia factor Continue reading the main story

The indications are that the pace of near-term growth is unlikely to be as strong as earlier expected”

End Quote Glenn Stevens Reserve Bank of Australia Analysts said the fact that a huge amount of Australia's mineral shipments head to Asian economies has been a big factor in ensuring that its export sector sustains its momentum, despite global slowdown concerns.

They said that as economies like India and China see more people move from rural to urban centres, the demand for minerals will continue to rise.

"Both these countries have more than 1 billion people, and that is a big factor," David Lennox of Fat Prophets told the BBC.

As these countries undergo rapid urbanisation, they will also need to boost their power generation capacity in order to meet the increased demand for electricity.

"That process is not dependent on what happens in the US or European economies," Mr Lennox said.

He added that given these factors, exports of Australian minerals to the region will continue to grow.

Monetary easing?

However, despite the encouraging export numbers, the RBA indicated that it may ease its monetary policy going forward.

Glenn Stevens, the governor of the central bank, said the slowdown in the US and the ongoing debt crisis in Europe are likely to hurt global growth and also have an impact on Australia's economy.

"The indications are that the pace of near-term growth is unlikely to be as strong as earlier expected," he said in a statement.

There have been concerns that while its mining sector is booming, other parts of its economy are facing a tough time due to falling consumer demand.

However, the central bank inisisted it was ready to act in a bid to boost demand.

"An improved inflation outlook would increase the scope for monetary policy to provide some support to demand, should that prove necessary." the bank said.

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Video: protesters March on Wall Street

Help 6 October 2011, last updated on: 10: 05 GMT

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UK 'super-port' to open in 2013

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AppId is over the quota
4 October 2011 Last updated at 10:25 GMT DP World says the project could add 32,000 jobs to the UK economy The owners of the London Gateway port say the project is due to open in the last three months of 2013.

DP World says the site will initially be able to handle 1.6 million standard shipping containers a year. Over time, the Dubai-headquartered group plans to raise capacity to 3.5m containers.

Construction work began near Thurrock, Essex, in January 2010 on the site of a former Shell oil refinery.

When complete, it will be the largest deep-sea port in the UK.

DP World says the Thames Estuary development has already created 600 jobs and it plans to increase that number by a further 1,000 over the coming months. Seven hundred of the new posts will be in construction, while the other 300 are described as port jobs.

The firm estimates that eventually, the port and a neighbouring logistics centre will help create 32,000 jobs, adding ￡3.2bn to the UK economy each year.

'Environmentally friendly'

The company says the project is also good for the environment. It says that by allowing the world's largest cargo ships to unload their goods next to a major distribution centre, 65 million road freight miles can be saved every year.

DP World's chief executive, Mohammed Sharaf, said: "London Gateway is a giant leap forward for the UK's supply chains and will benefit our customers tremendously through more efficient transportation of goods."

Business Secretary Vince Cable also welcomed the news, saying: "It will help Britain maintain its competitiveness, drive productivity, and crucially strengthen our links with Asia and beyond."

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Trade watchdog link to loan firm

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AppId is over the quota
1 October 2011 Last updated at 23:40 GMT By Adrian Goldberg Presenter, 5 live Investigates Trading Standards is taking consultancy payments from a firm which is also the subject of customer complaints.

West Yorkshire Trading Standards (WYTS) received payments from online loans broker SGE Loans in exchange for regulatory advice.

But some customers claim that SGE Loans has debited their bank accounts without consent - a claim SGE Loans denies.

WYTS says such partnerships are necessary because of budget cuts but its integrity remains unaffected.

WYTS says it has received over ￡88,000 ($137,500) since April 2011 from a total of 47 companies with which it has similar partnerships.

It confirmed that it only started charging SGE Loans for its detailed advice in that month, but would not reveal the precise sum it had received from SGE Loans, citing commercial confidentiality.

However, it did reveal that it had investigated a number of complaints made against the company.

Unauthorised payments

One customer who contacted the 5 live Investigates programme, Lianne Gray, says she rang SGE Loans in August of this year.

Customers say SGE took unauthorised payments from their bank accounts. SGE Loans denies this.

She says she was reassured that no money would be taken out of her account if she decided not to take out a loan.

"I then discovered two days later that the company had taken ￡79.99 out of my bank, which I could not afford to lose because I'm on benefits," she said.

"I am absolutely disgusted with how I have been treated."

5 live Investigates contacted SGE Loans on Ms Gray's behalf and her money was subsequently refunded five weeks after it had been debited.

Continue reading the main story

SGE Loans does not debit money from customers' accounts without authorisation”

End Quote Sally Hill Chief executive, SGE Loans David Dutfield had a similar experience when he called SGE Loans in June.

"I was told on the phone that no money would leave my account if my loan was below ￡200, which is what I was after.

"Yet when I came off the phone I found that ￡69.99 was taken from my account."

Following inquires made by the BBC, Mr Dutfield has also been refunded following more than three months of dispute.

West Yorkshire Trading Standards confirmed, in several instances, recordings of customer calls revealed that some SGE Loans staff had not fully explained the terms of its business and did not warn customers they were liable to pay an upfront fee, which could be refunded after a 14 day cooling-off period.

WYTS says SGE Loans subsequently took disciplinary action and retrained staff who made such mistakes.

SGE Loans chief executive Sally Hill told the BBC that SGE Loans did not debit money from customers' accounts without authorisation.

In a written response, she said that SGE Loans had never refused to refund money to a customer who had cancelled within the 14 day cooling-off period, if the company's service had not been used.

'Error of judgement'

Leeds-based SGE Loans has what is called a Primary Authority Partnership with West Yorkshire Trading Standards, which means that the branch deals with complaints made against the company from across the UK.

The company also has a commercial contract with WYTS, paying for advice about legal and regulatory issues.

During the course of its investigation, 5 live Investigates discovered SGE Loans featured a West Yorkshire Trading Standards logo on its website.

When asked why the logo was being used by the company, WYTS said: "Initially, and possibly naively, this service [WYTS] assumed that this would be taken for what it was - a statement of fact that we and the business had a Primary Authority partnership.

Continue reading the main story

Trading Standards should distance themselves from all companies and it would be better for all of us if all businesses regarded Trading Standards as a threat and something to be worried about”

End Quote Mark Gander Consumer Action Group "However, we now recognise that people are assuming that this is an endorsement of the business."

As a result, WYTS has asked SGE Loans to remove the logo from its company website.

When asked if it felt compromised by taking payment from firms it was also receiving complaints about, WYTS told the BBC:

"We refute any allegation that being in a Primary Authority Partnership with any business means this service does not undertake its duties, including to deal with complaints impartially, in anything but a professional manner."

WYTS also says that its relationship with SGE and other businesses helps them to understand the legal framework within which they operate, and "get it right", thus saving taxpayers money in the long run.

Marc Gander, from Consumer Action Group, told 5 live Investigates that it was inappropriate for a regulatory body to be funded in this way and said it was "a grave error of judgement".

"Trading Standards should distance themselves from all companies and it would be better for all of us if all businesses regarded Trading Standards as a threat and something to be worried about," he said.

WYTS, in common with Trading Standards offices around the UK, is under severe financial pressures as it faces budget cuts.

Planned local government spending on Trading Standards across England has been reduced overall by 11.4% in 2011/12, and in Wales by 7.4%.

WYTS says it faces budget cuts of 22% and this has has made it a necessity to charge companies such as SGE Loans for its regulatory advice.

Some 443 of 538 Trading Standards departments responded to a survey by 5 live Investigates - 18 said they received income from private companies in exchange for regulation and compliance advice.

You can hear the full report on 5 live Investigates on Sunday, 2 October at 21:00 BST on BBC Radio 5 live.

You can listen again on the BBC iPlayer or by downloading the 5 live Investigates podcast.

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Lecturers' pension action resumes

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AppId is over the quota
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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Flat summer sales at Thomas Cook

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AppId is over the quota
29 September 2011 Last updated at 07:34 GMT Thomas Cook has issued three profit warnings over the past year in the face of tough trading conditions Thomas Cook has said bookings by its UK customers were "flat" during the summer holiday season, but that its full-year profits should be "broadly in line with market expectations".

In a trading statement, the travel company also said it was continuing to be affected by the political turmoil in the Middle East and North Africa.

It said this had particularly affected its French business.

However, its sales in northern Europe, including Germany, were up strongly.

Its summer bookings for this region - which also includes the Scandinavian countries - were 13% higher than a year earlier.

Bookings in France, Belgium, the Netherlands and Eastern Europe were down 1% from a year ago; and there was no change in the UK.

Boss departure

Thomas Cook's forward bookings for the 2011-12 winter season are currently mixed when compared with the same time last year.

They are down 7% in the UK, and 16% lower in France, Belgium, the Netherlands and Eastern Europe, but up 6% in Germany and Scandinavia.

Thomas Cook said it was continuing efforts to boost its profitability.

The company also said it would not be making any dividend payments. It is instead focusing on paying down its debts of around ￡900m.

Former chief executive Manny Fontenla-Novoa left in August, followed just over a week later by the head of its UK retail division, Ian Derbyshire.

They departed the company after it had issued its third profit warning in a year.

Thomas Cook is now continuing with a strategic review of the business.

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Supermarket 'law shops' to open

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AppId is over the quota
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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Yahoo! surges on takeover rumour

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AppId is over the quota
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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Guinea PM defends mining shake-up

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AppId is over the quota
14 September 2011 Last updated at 13:01 GMT Guinea is the world's main exporter of bauxite Guinea's new mining code will curb corruption and make more money available for development, Prime Minister Mohamed Said Fofana has said.

The code gives the government a free 15% share in mining companies and demands greater financial transparency.

Several foreign firms have warned that the code, which came into law over the weekend, will deter investors.

Guinea, despite being the world's main exporter of the aluminium ore bauxite, is one of Africa's poorest countries.

A democratic government was elected in December, ending the authoritarian and military rule that had blighted the country since independence in 1958.

In an address on national TV, Mr Fofana said the government would hold investors accountable and ensure they paid taxes and royalties.

Foreign companies would have to invest a minimum of $1bn (￡633m), he said.

'God-given riches'

The BBC's Alhassan Sillah in the capital, Conakry, says this is intended to prevent companies bribing officials in exchange for cheap mining rights.

Continue reading the main story

"[The] mining code adopted in Guinea increases considerably tax pressure on mining companies, making it senseless to invest in development and new projects”

End Quote United Co Rusal Previous mining contracts would be reviewed to ensure there were no irregularities, our reporter says.

On Monday, Mines Minister Mohamed Lamine Fofana told Reuters news agency that the government had overturned an agreement by the ex-military junta to give secretive investment group China International Fund the rights to all of Guinea's unexploited resources.

The new code guarantees the government a minimum stake of 15% in companies and the option of buying a further 20%, Reuters says.

It also requires companies to carry out environmental and social impact studies before they are granted mining permits, the agency says.

The prime minister said this would prevent environmental degradation, making sure that communities living near mines did not suffer.

Our reporter says most Guineans have welcomed the mining code, hoping that they will finally benefit from the country's "god-given riches".

But it has been opposed by several big companies operating in Guinea, including Moscow-based aluminium company United Co Rusal, which said it would not make further investments in Guinea.

"[The] mining code adopted in Guinea increases considerably tax pressure on mining companies, making it senseless to invest in development and new projects," it said in a statement to Bloomberg news agency.

Another major investor in Guinea, Australia's Rio Tinto, also expressed concern about the code, saying it would cost the company an extra $10bn, the Christian Science Monitor news website reports.

Our correspondent says the government is unlikely to bow to business pressure because mining sector reforms was a key promise to voters in the build-up to December's elections.

The government took over from the military junta that had seized power in December 2008 on the death of the previous President, Lansana Conte, who had ruled for 24 years.

Guinea holds half of the world's bauxite reserves, as well as large deposits of gold and diamonds.

However, most of its citizens live on less than $1 a day.

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IMF warns on drastic budget cuts

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AppId is over the quota
5 October 2011 Last updated at 14:41 GMT Changing economic times will mean a change in economic policy, the IMF said Europe's stronger economies should avoid imposing drastic budget cuts at the expense of growth, a report by the International Monetary Fund has said.

If things worsen in the UK, Germany or France, they should "consider delaying" cuts, because they can borrow "at historically low" interest rates.

The IMF also warned that a recession in Europe in 2012 could not be ruled out.

Separately, a Markit PMI study said the eurozone's service sector shrank for the first time in two years last month.

The IMF's warning came in its latest 100-page report on the economic outlook for Europe.

"Finding a durable solution to the euro area sovereign crisis has become more than overdue," the IMF said in its report.

"(This) will require some difficult decisions to improve crisis management and a demonstration of unity behind the project of economic and monetary union that will convince markets.

"The pursuit of nominal deficit targets should not come at the expense of risking a widespread contraction in economic activity," the IMF said.

"If (economic) activity were to undershoot current expectations and risk a period of stagnation or contraction, countries that face historically low yields (for example, Germany and the UK) should also consider delaying some of their planned consolidation."

The IMF's Europe director, Antonio Borges, said that Europe had edged closer to recession. "We still predict growth in 2012, but very modest," he said.

But if economies go into reverse "all those countries with fiscal leeway might want to consider" changes in fiscal policy, he said.

'Spreading malaise'

The weakness of the eurozone's economic recovery was underlined in data from the latest Markit/CIPS Services Purchasing Managers' Index.

For September, the index fell to 48.8, from 51.5 in August, its lowest reading since July 2009. A reading below 50 indicates contraction.

Markit said that a service sector downturn that began in smaller members of the 17-nation eurozone had spread throughout the bloc.

"The malaise is spreading to the core, where surging rates of expansion earlier in the year have turned rapidly into contraction in Germany and only very modest growth in France," said Chris Williamson, chief economist at Markit.

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India unveils $35 tablet computer

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AppId is over the quota
5 October 2011 Last updated at 13:06 GMT Millions of students will have access to the tablets, officials hope India has launched what it says is the world's cheapest touch-screen tablet computer, priced at just $35 (￡23).

Costing a fraction of Apple's iPad, the subsidised Aakash is aimed at students.

It supports web browsing and video conferencing, has a three-hour battery life and two USB ports, but questions remain over how it will perform.

Officials hope the computer will give digital access to students in small towns and villages across India, which lags behind its rivals in connectivity.

At the launch in the Indian capital, Delhi, Human Resource Development Minister Kapil Sibal handed out 500 Aakash (meaning sky) tablets to students who will test them.

He said the government planned to buy 100,000 of the tablets. It hopes to distribute 10 million of the devices to students over the next few years.

"The rich have access to the digital world, the poor and ordinary have been excluded. Aakash will end that digital divide," Mr Sibal said.

The Aakash has been developed by UK-based company DataWind and Indian Institute of Technology (Rajasthan).

It is due to be assembled in India, at DataWind's new production centre in the southern city of Hyderabad.

"Our goal was to break the price barrier for computing and internet access," DataWind CEO Suneet Singh Tuli said.

"We've created a product that will finally bring affordable computing and internet access to the masses."

The company says it will also offer a commercial version of the tablet, called UbiSlate. It is expected to hit the shelves later this year, retailing for about $60.

Usability questions

Mr Sibal says the device will enhance learning in India.

Experts say it does have the potential to make a huge difference to the country's education, particularly in rural areas where schools and students do not have access to libraries and up-to-date information.

Mr Sibal (right) hopes the tablet will end the 'digital divide'

But critics say it is too early to say how the Aakash will be received as most cheap tablets in the past have turned out to be painfully slow.

"The thing with cheap tablets is most of them turn out to be unusable," Rajat Agrawal of technology reviewers BGR India told Reuters news agency.

"They don't have a very good touch screen, and they are usually very slow."

Critics also point out that an earlier cheap laptop plan by the same ministry came to nothing.

In 2009, it announced plans for a laptop priced as low as $10, raising eyebrows and triggering worldwide media interest.

But there was disappointment after the "Sakshat" turned out to be a prototype of a hand-held device, with an unspecified price tag, that never materialised.

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Eurozone manufacturing contracts

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AppId is over the quota
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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Senate currency bill 'dangerous'

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AppId is over the quota
5 October 2011 Last updated at 05:12 GMT House Speaker Boehner has said taking action against China's currency peg is beyond the scope of Congress A top US Republican has criticised a Senate bill that could penalise China for alleged currency undervaluation.

The Senate voted on Monday by 79-19 to debate legislation that could make it easier to impose penalties against US trade partners.

House of Representatives Speaker John Boehner said it was "pretty dangerous" for Congress to tell other countries how to run their monetary policy.

Beijing said it "firmly opposed" the measure.

The bill would give the US government the power to add tariffs to goods imported from countries deemed to be undervaluing their currencies to boost exports.

The proposed law does not mention China by name, but many US politicians accused China of subsidising exports by holding down the value of the yuan, costing US jobs.

'Unfair trade practices'

Analysts expressed concern that the bill could damage relations with China, which is the biggest holder of US debt, at a time when the American economy is still fragile.

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.And Mr Boehner said: "This is well beyond what Congress ought to be doing, and while I've got concerns about how the Chinese have dealt with their currency, I'm not sure this is the way to fix it."

But he came under attack from Democrats over his opposition to the Senate bill, which has bipartisan support in Congress.

"For some inexplicable reason, the Republican leadership in the House is siding with the Chinese government. This is not the time to go soft on Beijing," said Democratic Senator Charles Schumer.

Democratic Senate Majority Leader Harry Reid meanwhile said: "We can't ignore blatant, unfair trade practices that put American workers at a disadvantage."

At the same time, Federal Reserve Chairman Ben Bernanke said that China's yuan policy hindered a more balanced growth path.

Unhappy China

Beijing has expressed "regret" over the measure. Chinese foreign ministry spokesman Ma Zhaoxu said it "seriously interferes with Sino-US trade ties".

"The yuan exchange rate is not the main reason for the Sino-US trade imbalance," said the Chinese central bank, the People's Bank of China.

Analysts have argued that the Chinese currency could be undervalued by as much as 20-40% in relation to the US dollar.

The effect of such a policy would make Chinese goods cheaper in the US, and US goods more expensive in China.

White House spokesman Jay Carney said the Obama administration was still reviewing the currency bill.

The Senate could vote on the bill later in the week.

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No temporary tax cuts - Osborne

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AppId is over the quota
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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Hong Kong maid wins landmark case

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AppId is over the quota
30 September 2011 Last updated at 04:40 GMT By Katie Hunt Business reporter, BBC News Foreign domestic helpers are required to leave the country within two weeks if dismissed by employers Hong Kong's High Court has ruled that a domestic helper from the Philippines should be allowed to apply for permanent residency in the city.

The case was brought by Evangeline Banao Vallejos, who has lived in Hong Kong since 1986.

The ruling follows a landmark judicial review and could lead to more than 100,000 other foreign maids winning rights to residency.

The case has sparked widespread debate on equal treatment for foreign maids.

Mark Daly, the lawyer acting on behalf of Ms Vallejos, said that she was very pleased by the ruling, which meant that all domestic helpers now were able to apply for permanent residency.

"When we told her she said 'thank God'," he said, adding that it was a normal working day for her.

"It's a good day for the rule of law," he added.

Mr Daly pointed out that the government had 28 days to appeal.

A spokesman said the government was analysing the judgement and would issue a formal response later in the day.

Public resources

Some critics have said granting residency to domestic helpers would strain the provision of health care, education and public housing.

Continue reading the main story

We hope it will pave the way for Hong Kong to open its doors to equal treatment for migrant workers”

End Quote Norman Carnay Mission for Migrant Workers While other non-Chinese nationals can obtain residency after working in Hong Kong for seven years, immigration rules exclude domestic helpers from seeking permanent residency.

Human rights lawyers and many domestic helpers argue that this is discriminatory.

Permanent residency means that a person can remain in Hong Kong indefinitely, vote and stand in elections.

But some politicians and commentators warned that allowing foreign domestic helpers to have permanent residency would allow them to bring their children and other relatives to the city, who would require education and housing.

Equal treatment

Norman Carnay, programme officer at the Mission for Migrant Workers said that he welcomed the decision.

"We hope it will pave the way for Hong Kong to open its doors to equal treatment for migrant workers," he said.

But he added that right of abode was not necessarily a priority for many domestic helpers.

"From surveys of our community, the more pressing concerns are wages and working conditions," he said.

There are more than 300,000 foreign domestic helpers in Hong Kong, mainly from Indonesia and the Philippines. It is thought that around 120,000 have lived here for more than seven years.

They are required to live with their employers and cannot accept other jobs.

Without the right to permanent residency, if a maid is dismissed by her employer, she must find another job as a domestic helper or leave Hong Kong within two weeks.

Hong Kong's domestic workers have a guaranteed minimum wage of 3,740 Hong Kong dollars ($480; ￡308) a month and day off each week, meaning their working conditions are better than other countries in Asia with large numbers of domestic helpers, such as Singapore.

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Pension talks yield 'no progress'

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AppId is over the quota
6 October 2011 Last updated at 00:19 GMT TUC secretary general Brendan Barber has said the sides are a long way apart Talks between ministers and union chief Brendan Barber over public sector pension reform have resulted in no progress, sources have told the BBC.

TUC chief Mr Barber met Cabinet Office minister Francis Maude for impromptu private talks at the Conservative conference in Manchester this week.

Unions are balloting members for strike action on 30 November over plans to increase contributions from employees.

The next round of face-to-face talks is due on 24 October in London.

A source close to Mr Barber said he used the impromptu meeting to again urge the government to "give a degree of confidence that they are serious about maintaining sustainable public service pensions in the future".

'Groundhog day'

Unions say the changes are unfair and financially unnecessary. Ministers insist that pension contributions must be increased to make schemes sustainable.

In recent weeks Mr Maude has described the talks as "like Groundhog Day", with no progress being made.

Both sides have previously insisted they are committed to resolving their differences through talks but the BBC understands the latest meeting again yielded little.

Mr Barber also met Chancellor George Osborne at a party during the conference, although it is unclear whether the issue of pensions was discussed.

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VIDEO: Malaysia's hard-up pensioners

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5 October 2011 Last updated at 01:36 GMT Help

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Apple co-founder Steve Jobs dies

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Pub wins over TV football ruling

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4 October 2011 Last updated at 09:25 GMT Karen Murphy on why she took her fight to Europe, speaking to 5 live in October 2010

A pub landlady has won the latest stage of her fight to air Premier League games using a foreign TV decoder.

Karen Murphy had to pay nearly ￡8,000 in fines and costs for using a cheaper Greek decoder in her Portsmouth pub to bypass controls over match screening.

But she took her case to the European Court of Justice.

The ECJ now says national laws which prohibit the import, sale or use of foreign decoder cards are contrary to the freedom to provide services.

'Relief'

It said national legislation, which banned the use of overseas decoders, could not "be justified either in light of the objective of protecting intellectual property rights or by the objective of encouraging the public to attend football stadiums".

"She's overwhelmed with relief at the moment," Mrs Murphy's lawyer, Paul Dixon, told BBC Radio Solent.

"It's been a long road for her but she's delighted to be getting the case back to the High Court now in London where it will be finalised, before very long we hope.

"It will mean increased competition in the broadcast market that's for sure."

The ECJ findings will now go to the High Court in London, which had sent the matter to the ECJ for guidance, for a final ruling.

However, it is unusual for a member state High Court to pass a different judgment to one provided by the ECJ.

'Contingency plans'

The decision could trigger a major shake-up for the Premier League and its current exclusive agreements with Sky Sports and ESPN, and pave the way to cheaper viewing for fans of top-flight English games.

"In practical terms, the Premier League will now have to decide how it wishes to re-tender its rights," said sports media lawyer Daniel Geey of Field Fisher Waterhouse solicitors.

Continue reading the main story

On the face of it, it looks like a blow for the Premier League and... broadcasters Sky and ESPN”

End Quote David Bond BBC sport editor "There can be little doubt it will have contingency plans ready to go and has various options available.

"Be it a pan-EU tender, selling in only certain EU member states or devising a plan to start its own channel, they will be deciding how best to maximise the value of their product to ensure any revenue shortfall is minimised."

The judges said the Premier League could not claim copyright over Premier League matches as they could not considered to be an author's own "intellectual creation" and, therefore, to be "works" for the purposes of EU copyright law.

However, the ECJ did add that while live matches were not protected by copyright, any surrounding media, such as any opening video sequence, the Premier League anthem, pre-recorded films showing highlights of recent Premier League matches and various graphics, were "works" protected by copyright.

To use any of these parts of a broadcast, a pub would need the permission of the Premier League.

'Major blow'

"On the face of it, it looks like a blow for the Premier League and... broadcasters Sky and ESPN," said BBC sport editor David Bond.

He said the Premier League had faced many regulatory challenges in the past and would find ways to get round the new situation.

Karen Murphy used the Greek firm Nova to show Premier League games

Sky has pumped billions into top flight English football since the league was founded in 1992, with the money given to clubs allowing them to buy some of the top names in the world.

Our correspondent said that would not necessarily change, given the huge value of other deals.

The Premier League's television income from mainland Europe is about ￡130m, less than 10% of their total ￡1.4bn overseas rights deal.

But he warned that it could have significant repercussions for other rights holders outside of sport, with life potentially getting more difficult for the film industry, which also sells its product on an country-by-country basis.

Satellite signals

The legal battle kicked off six years ago, when Ms Murphy was taken to court for using the Nova firm to show matches at the Red, White and Blue pub.

Using the Greek service, she had paid ￡118 a month, rather than ￡480 a month with the official broadcaster.

Licensed broadcasters encrypt satellite signals, with subscribers needing a decoder card to access them.

Ms Murphy took advantage of an offer to UK pubs to use imported cards.

In February, an ECJ advocate general said this was in line with the aims of the EU single market - a border-free zone for goods and services.

The Premier League has already taken action against two suppliers of foreign satellite equipment and a group of pub landlords who used imported decoding equipment to show English Premier League games and avoided the commercial premises subscription fees for Sky.

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Malaysia plans to raise retirement age

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4 October 2011 Last updated at 16:13 GMT By Jennifer Pak BBC News, Kuala Lumpur Sivananthan Mariappan, 61, drives a taxi to make ends meet Sivananthan Mariappan had accumulated over $30,000 (￡20,000) in savings by the time he reached retirement at age 55.

But after he paid off a housing loan and credit card debt, he was left with nothing.

So for six years, he has been driving a taxi in order to make ends meet in the bustling capital of Kuala Lumpur.

"I can hardly save more [given] what I'm earning at the moment," he says.

Mr Sivananthan is one of many Malaysians who cannot afford to retire.

The government has a mandatory retirement savings scheme for all Malaysians working in the private sector.

However, officials say most people drain their funds within the first five years of retirement.

This problem is compounded by the fact that the cost of living is rising.

Malaysia's central bank expects the inflation rate to hover between 3% and 3.5% this year.

A draft that would make this law is expected to be tabled in parliament by the end of the year.

While this is not nearly as high as in neighbouring countries, wages have not kept up with inflation.

The government has also recently cut back on its subsidies programme for staples such as cooking oil, flour, sugar and petrol.

This makes it hard for Malaysians to sustain their lifestyles in retirement.

Retaining workers Continue reading the main story

Fifty-five is not the correct retirement age. The experience comes with that age”

End Quote Ramachenran Krishnan 56-year-old worker Unions have been pushing for the retirement age to be raised from 55 to 60 in the private sector.

Officials hope this would allow Malaysians more time to save up for their retirement.

The move is also expected to retain 500,000 people in the work force over a five-year period.

These are skilled workers that companies desperately need.

Naza group, which imports luxury cars, says they will benefit from the move as they have a tough time retaining young talent.

"The industry is very competitive," says the firm's joint group executive chairman, Nasarudin Nasimuddin.

y will jump around within the industry."

The company already retains its retired staff on a contract basis so that they can help train new members.

Ramachenran Krishnan, 56, is one of the retirees who was recruited into the Naza group.

"So whoever offers the best package or benefits, the

After leaving another automotive company, he now works a full eight-hour day as the manager of the parts division at a dealership that is the sole importer and distributor of Peugeot vehicles.

Mr Ramachenran says he has no intention of stopping.

"It is a pity that my previous company did not actually extend me when I could have contributed more," he says.

Tee May Yan, 19, is worried if the higher retirement age affects her job prospects

"Fifty-five is not the correct retirement age. The experience comes with that age."

But in this tough economic climate, efforts to raise the retirement age has worried some potential graduates, such as Tee May Yan.

"If people can work longer, it will affect our job prospects," the 19-year-old design student says.

"It may prevent us from moving up in the company."

Others are not so pessimistic.

"Employers may want experience, but they still need fresh new ideas from young people," says Nur Liyana Mohamunny, 20.

Increased life expectancy

Raising the retirement age would also put Malaysia on par with its regional neighbours, where the average retirement age is 60 and above.

However, the move may not do much to boost savings.

Malaysians are living longer, with an average life expectancy of 74.

Even with the extra time to prepare, many people may still not be able to save up enough to last them for an extra 15 to 20 years.

It is a dilemma that Mr Sivananthan faces.

At 61, he has spent decades working in the hotel and property sectors.

It is looked down upon to drive a taxi, he says, but without any savings he has little choice.

Mr Sivananthan may be healthy enough to work 14-hour days now, but he dreads the day when he is forced to stop.

The BBC's Jennifer Pak reports from Kuala Lumpur on why so many Malaysians find it hard to make ends meet after they've stopped working.

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Japanese manufacturers optimistic

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3 October 2011 Last updated at 02:40 GMT Japanese carmakers have seen their production levels return to pre-quake levels Japan's big manufacturers expect conditions to improve in the next three months, according to the Bank of Japan's Tankan survey.

The business sentiment index stood at plus two for September, up from minus nine in June, the survey showed.

Confidence was badly damaged by the March 11 earthquake, but factory output is now increasing as supply chains are restored and infrastructure rebuilt.

The survey is keenly watched and influences Japan's monetary policy.

"Manufacturers are planning a sizeable output expansion in the next few months, so we expect conditions to improve even further," Takuji Okubo of Societe Generale told the BBC.

External risks

However, despite the optimism, big firms in Japan revised down their plans for capital expenditure.

According to the survey, large businesses plan to increase capital expenditure for the current financial year by 3%, down from an earlier projection of 4.2%.

Continue reading the main story

The uncertainty over what is going to happen over the next few months seems to be hurting the sentiment”

End Quote Takuji Okubo Societe Generale Analysts said that while things have started to improve in Japan, external factors continue to dampen spirits.

There have been concerns that the ongoing debt crisis in Europe may hurt growth in the region. At the same time, economic problems in the US have raised fears of the world's biggest economy slipping into a recession.

"The biggest concerns are external, not internal, such as the impact of Europe's debt problems on global growth," said Yutaka Shikari of Mitsubhishi UFJ Morgan Stanley Securities.

There are fears that if growth in these regions slows, it would have an impact on consumer spending and hurt demand for Japanese exports.

Analysts said that until a long-term sustainable solution was found to these issues, they are likely to impact the expansion plans of Japanese companies.

"The uncertainty over what is going to happen over the next few months seems to be hurting sentiment," Societe Generale's Mr Okubo added.

Yen factor

The uncertainty surrounding the global economic outlook has also has a big impact on the Japanese currency. Investors have been flocking to the yen, considered as a safe-haven asset in times of economic turmoil.

That has seen the Japanese currency strengthen by as much as 8% against the US dollar in the past 12 months.

It does not bode well for the Japan's export-dependent manufacturers. A strong yen not only makes their goods more expensive but also hurts profits of companies when they repatriate their foreign earnings back home.

"If you look carefully, you can see the heavy burden of a higher yen, and their profits are under pressure," said Hideo Kumano of Daiichi Life Research Institute.

According to the Tankan survey, large manufacturers said they based their business plans on the yen averaging 81.15 against the US dollar for the current financial year. It was trading close to 77 yen against the US dollar in Asia trade on Monday.

The Japanese authorities have already intervened in the currency markets this year. Last week, the Finance Ministry said it was ready to act again and could spend another 15tn yen ($196bn; ￡125bn) to stabilise the currency.

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Can the iPhone still scare rivals?

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4 October 2011 Last updated at 23:33 GMT By Tim Weber Business editor, BBC News website Sony Ericsson hopes that Android will help it regain market share The days when Apple had a free run for our smartphone hearts and minds are over.

It's the first time that Apple's latest offering, the iPhone 4S, encounters a truly competitive field of rivals.

The competition is powered by Apple's former partner Google, whose Android operating system for smartphones is rapidly gaining marketshare.

Mobile phonemakers, long suffering under Apple's smartphone dominance, have embraced Android with gusto and are jostling to add software and hardware touches that trump Apple's offering.

The iPhone rivals

Samsung's Galaxy S II, for example, is already slimmer and lighter than both the old iPhone 4 and the new 4S and arguably has a better screen.

Taiwanese competitor HTC, meanwhile, hopes that a clever user interface dubbed HTC Sense will help it to best Apple.

Instead of the iPhone's static icons, HTC has improved Android to offer a raft of rich, dynamic widgets that bring information and functionality directly to the smartphone screen. HTC's Sensation, for example, is currently hard to best in terms of ease of use, not just when compared to the new iPhone but Android rivals as well.

For its top-end phones HTC also throws in a free service that allows owners to track and remotely manage their phones, probably one of the reasons why Apple recently stopped charging for a similar service.

Android has even allowed Sony Ericsson to get back into the game. For several years the company and its lacklustre range of phones have been losing market share; now the company is back with the Android-based Xperia Arc S - a well-built and user-friendly phone that can compete with most rivals.

Apple also lags in terms of hardware innovation, with several competitors pushing phones that sport 3D cameras and glasses-free 3D screens - like the Sharp 3D Aquos, the HTC Evo 3D and the LG Optimus 3D.

Google is also constantly updating Android, and provides the software free to manufacturers. This is not charitable behaviour, of course. Google search is deeply integrated into Android phones, providing healthy profits from clicks on sponsored search results (although a few network operators have begun to point customers to different search engines).

The rise of Android

The rise and rise of Android is reflected in the market share.

According to research firm Gartner, during the second quarter of 2011 Android captured a massive 43.4% of the global smartphone market - up from 17.2% just a year ago.

In contrast, Apple's iPhone software iOS gained just four percentage points to 18.2% - mainly by entering 15 new countries and signing up 42 new network operators to sell the iPhone.

The big losers are Nokia's Symbian smartphones, Blackberry maker RIM - and Microsoft who is struggling to gain traction for its new mobile operating system Windows Phone 7.

Operating System 2nd quarter 2011 2nd quarter 2010

Research in Motion (Blackberry)

Advantage Apple

Despite Android's advances, Apple still dominates the "mindshare" of the smartphone market.

This is less a function of the many Apple fans amongst tech journalists. It's more a question of first-mover advantage and, most importantly, branding.

Dozens of manufacturers are now selling numerous Android phones, ranging from the cheap and cheerful to the high end of the market. Apple and its network partners can focus all marketing around a single brand and - now - two devices.

No wonder that the iPhone is still seen by many as the benchmark against which other smartphones have to be measured - even though the new iPhone 4S has arguably failed to raise this benchmark in a significant manner. Some of the new features on the 4S have been standard on Android phones for many months.

The lack of a big "and one more thing" unveiling by Apple's new chief executive will have been greeted with loud sighs of relief by rivals.

Still, any move by Apple creates headaches for competitors. Internal documents of a mobile phone maker seen by the BBC last week showed how worried this company was that an iPhone 5 could steal all attention from the forthcoming launch of its top-end Android smartphone.

Microsoft, meanwhile...

Amidst all the Android and iPhone frenzy, spare a thought for Microsoft. A year ago and to considerable acclaim the software giant launched an all-new mobile phone software, Windows Phone 7.

Microsoft is betting on a distinct user interface

The operating system broke new ground in terms of usability, with a fresh look and many clever little features that neither Google's nor Apple's developers had thought of. Considering this was version one of the software, it was surprisingly polished.

So far, Microsoft has had little commercial success in return for its efforts. But Microsoft hopes that it can still challenge both Android and iPhone. After ironing out a few software wrinkles it has just launched Windows Phone 7.5, also known as Mango.

It's a compelling offering. The software delivers a deep integration with social networks like no other phone. Short messages exchanged with a friend - whether on SMS, Facebook or Twitter - will show up in one thread chronicling the conversation, regardless of which service was used.

A contact stored on the phone shows not just address and phone number but the most recent Facebook, Twitter and LinkedIn status updates too. And the diary is easier to use than any other.

However, Microsoft's fresh assault on the smartphone market is slow out of the starting blocks.

Mango was presented to the public many months ago. A few handset makers have announced a handful of new Windows phones. The first HTC phones running Mango are only now - slowly - arriving in the shops. Microsoft's new best friend, struggling Finnish phone company Nokia, won't launch its first Windows phone before 26 October, at Nokia World in London.

Apple, in contrast, is set to bring the iPhone 4S to market in less than two weeks.

The ecosystem

As operating systems and mobile phone makers jostle for position (don't forget RIM's Blackberry, about to roll out a range of handsets with a new operating system) it may be neither clever software nor stunning hardware that decides who will win the smartphone war.

The clincher will be the services connected to smartphones. Just as Google uses Android to lure people into their ecosystem, from email to media storage to YouTube videos to documents, Apple tries to lock in its customers into the world of iTunes and iCloud services.

Surprisingly, it is Microsoft that is offering the most open mobile phone ecosystem right now.

Consumers should be able to cherish this fierce competition. They may not get the chance. As iPhones, Androids and other devices rush to market, the patent lawyers of all sides are gearing up for epic court battles over patents and protected designs.

Not all that we'll see presented on stage will reach consumers' hands.

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