New fees for tribunals from 2013

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3 October 2011 Last updated at 14:33 GMT Employees will have to work for longer before being able to go to a tribunal A fee for bringing an employment tribunal will be charged for the first time from April 2013, Chancellor George Osborne has announced.

There will be a refund for any individual who wins their case.

The amount that will be charged and how it should be paid will be subject to consultation starting by the end of November.

There is currently no fee for an applicant who wants to make an employment tribunal claim.

The low-paid, or those without an income, may also have the fee waived or reduced at the start of the process, under the new scheme.

"We are ending the one way bet against small businesses," Mr Osborne told the Conservative conference in Manchester.

Timescale

The chancellor also confirmed that, from April 2011, the qualifying period for a claim for unfair dismissal will be that the individual must have been in the job for at least two years.

At present they only need to have been working for one year.

"We respect the right of those who spent their whole lives building up a business, not to see that achievement destroyed by a vexatious appeal to an employment tribunal. So we are now going to make it much less risky for businesses to hire people," Mr Osborne said.

Last year there were 236,000 employment tribunal claims - of which only some were unfair dismissal claims, with an average award for successful complainants of ￡8,900.

Under Mr Osborne's plan, workers will still be able to take action immediately if they suffer discrimination, but by reducing the risk of tribunals for unfair dismissals the government hopes bosses will feel more confident about hiring people.

The GMB union has criticised the plan.

"The very notion that reducing the rights of workers of between 12 months and two years service to bring unfair dismissal claims will create a single new job is quire frankly absurd. Job creation is not the real reason the Tory party want to take away these rights," said Paul Kenny, general secretary of the GMB.

TUC general secretary Brendan Barber said the move was a "charter for bad bosses".

Abandoned

However, business lobby the CBI, welcomed it.

"We have been urging the government to do everything it can to make it easier for firms to grow and create jobs, and this will give employers, especially smaller ones, more confidence to hire," said director general John Cridland.

In 2010-11 the cost to the taxpayer of running employment tribunals and the Employment Appeal Tribunal in England, Wales and Scotland was more than ￡84m, according to the Ministry of Justice.

The Treasury said that more than 80% of applications made to an employment tribunal did not result in a full hearing.

Almost 40% of applicants withdrew their cases, but employers still had to pay legal fees in preparing a defence. More than 40% settled out of court and there was no record of how much applicants settled for, it added.

Martin Edwards, employment law expert at law firm Weightmans, said: "The changes may have mixed results. Someone who has not worked long enough to claim unfair dismissal may claim they are a whistleblower or a victim of discriminaiton instead, causing employers even more hassle than before.

"But people who have to pay to bring a claim may regard that as a significant disincentive to litigating a dispute."

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US Senate postpones currency vote

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7 October 2011 Last updated at 04:02 GMT President Obama has said that any action by the US has to be consistent with international treaties The US senate has postponed its vote on the much-debated currency bill until next week amid differences between the Republicans and Democrats.

The bill would make it easier to impose penalties on goods from countries seen as keeping their currencies artificially low.

Politicians and some business groups have accused China of using its policy of limiting the yuan's value to boost exports.

Leaders differed on certain amendments.

"I think China needs to carefully think about and process the substance of what people are saying here on the floor of the United States Senate." said John Kerry, chairman of the Democratic Senate Foreign Relations Committee.

'Very aggressive'

The debate on China's currency policy has become the centre of attention amid a slowdown in the US economy.

Continue reading the main story

Whatever tools we put in place, let's make sure that these are tools that can actually work, that they're consistent with our international treaties and obligations”

End Quote Barack Obama US President President Barack Obama said "China has been very aggressive in gaming the trading system to its advantage and to the disadvantage of other countries, particularly the United States."

"It is indisputable that they [China] intervene heavily in the currency markets and that the RMB [yuan], their currency, is lower than it probably would be if they weren't making all those purchases in the currency markets."

Politicians and policy makers have said that undervalued yuan has not only given an unfair advantage to Chinese exporters, it has also contributed to the unemployment situation in the US.

"We cannot continue to let China flaunt the rules," said Democratic Senator Chuck Schumer.

Mr Schumer added that if no action was taken against China's policies the US "may never recover as a country. This is serious stuff".

Cautious approach

However, President Obama warned that the US needed to take a cautious approach while handling the matter.

"My main concern and I've expressed this to Senator Schumer, is whatever tools we put in place, let's make sure that these are tools that can actually work, that they're consistent with our international treaties and obligations." he said.

President Obama's comments come as China has accused the US of using the currency dispute to take protectionist measures.

At the same time, some politicians and trade groups have said that such a bill may do more harm than good to the US economy.

They have warned that any such action by the US may start a trade war with China.

"Unilateral action by the United States will only serve to increase trade tensions and negatively impact the US economic recovery during this fragile period in the global economy," Bruce Josten of the US Chamber of Commerce wrote to the Senators earlier this week.

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Qantas boss threatened in job row

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

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

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

Police are investigating the matter.

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

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

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

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

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

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

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

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

Flights cancelled

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

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

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

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

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

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Russia bleeds cash as investors pull out

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29 September 2011 Last updated at 23:00 GMT By Natalia Golysheva BBC World Service Political turbulence has spooked investors in Russia Five months ago the Russian stock market was among the world's top performer, peaking after a steady rise in share prices that had lasted since early 2009.

Since then, the market has taken a tumble, with Russia's Micex index of leading shares losing more than a quarter of its value and the RTS index of 50 Russian shares falling by some 40% to levels not seen since this time last year.

According to the Russian government, investors are pulling back because they have been spooked by falling oil prices and global economic turmoil.

But many observers are instead blaming internal political turmoil for the retrenchment, which last year saw capital flight to the tune of some $30bn (￡19bn) - only to accelerate this year, with some $31bn leaving the country during the first six months alone.

Wheeling cash out of Russia has become a sport shared by wealthy Russians and foreign investors alike, with one Russian opposition party leader, Boris Nemtsov, predicting that capital flight could rise to $100bn this year.

The capital flight is matched by a brain drain as the country's much needed skilled and educated people head for better opportunities abroad.

A recent survey suggests more than a fifth of Russia's adult population would like to emigrate, compared with 7% in 2007.

'Pillar of stability'

This week's ousting of Russia's long-standing finance minister, Alexei Kudrin, did little to mollify neither the people nor the markets.

Mr Kudrin eventually lost his battle with Russia's leaders

So the Russian rouble, already weakened by the turmoil in the world economy, has plunged and is trading around its lowest level against the US dollar since May 2009.

Mr Kudrin's main cheerleaders, Western investors and analysts, have long applauded the way his conservative budget policies have helped restore the country's financial health in the wake of the global financial crisis.

To them, his departure is seen as a deep blow to Russia's economy.

"The surprise factor of Kudrin leaving is bigger than the nomination of Putin to be the next president," according to Roland Nash, senior partner of Verno Capital.

"Kudrin personifies fiscal stability in Russia. It was really his big success that we've had this fiscal stability now for more than 10 years - him and the oil price.

Neil Shearing, chief emerging markets economist at Capital Economics, a private-sector think tank in London, agrees.

"It's difficult to see how Kudrin's resignation can be anything but market-negative," he says.

Economic differences

Mr Kudrin's departure after 11 years in the job could not have been announced at a worse time, coming hot on the heels of President Dmitry Medvedev announcing that that he will swap jobs with Prime Minster Vladimir Putin in March of next year.

Investors are nervous as share prices, oil prices and the rouble all fall sharply

The Russian media initially speculated that Mr Kudrin may have openly rebelled to bolster his own ambitions to become Russia's next prime minister.

Mr Kudrin has accused President Medvedev of economic mismanagement and excessive spending.

In particular, in the latest of the two politicians many disagreements over economic policy, Mr Kudrin has been vocal in his opposition to President Medvedev's efforts to raise military spending by some 2.1 trillion over three years, insisting the plan would create "additional risks for both the budget and the economy".

President Medvedev has been dismissive of Mr Kudrin's criticism, insisting Russia "cannot avoid defence spending worthy of the Russian Federation, which is not some 'banana republic' but a very large country, a permanent member of the UN Security Council that possesses nuclear weapons".

In the end, the conflict came to a head with President Medvedev telling Mr Kudrin to step down after the rebellious finance minister said he would be unwilling to work with the next prime minister.

And if investors were concerned about Mr Kudrin's departure, then they were far from mollified by the man Prime Minister Putin appointed to succeed him.

Mr Putin described the new acting finance minister, the rarely heard of former deputy Anton Siluanov, as a "good, strong specialist", which investors immediately took to mean he would tow the party line and as such be a safe bet for the Russian leaders during the upcoming election season.

Optimistic assumptions

Mr Siluanov's first challenge will come next week, when Russia's government will have to submit its 2012 budget for approval by parliament.

It will be a challenge because the budget is calculated on a rather optimistic assumption, namely that price of oil will rise to $116 (￡72)per barrel next year.

According to the ousted Mr Kudrin, Russia needs oil to average $112 in 2012 to balance its budget.

However, the price of Russia's main export, Urals crude oil, has recently tumbled and is currently trading close to the $105-a-barrel level.

If the price of oil fails to bounce back, then Mr Kudrin will be proven right about the need to curb spending and plan for a future when Russia's earnings will be much lower than they have been in recent years.

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Ask the experts: Eurozone crisis

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27 September 2011 Last updated at 22:54 GMT By Laurence Knight & Ian Pollock Business reporters, BBC News Our experts answer your eurozone crisis questions Last month, the BBC asked viewers what questions they had about their finances, particularly given fears about a renewed financial crisis and recession.

Here, BBC journalists Laurence Knight and Ian Pollock answer your questions about how the eurozone debt crisis might affect you.

Why, with the eurozone in crisis, is the pound still so weak against the euro? - Roy Waite, Carentoir, France

Put simply, the UK is in no better shape than the eurozone.

Both currency blocs (and the US for that matter) face the same economic malaise. Debts are too high, particularly household debts, so nobody wants to spend - not consumers, not businesses, not even governments.

That means interest rates in the UK and the eurozone are likely to remain very low for many years, making both currencies an unattractive place for investors to park their cash.

But thanks to the hawkish European Central Bank, eurozone interest rates have actually been somewhat higher than in the UK - and were even rising until recently - helping to push the euro's value up.

High interest rates and a strong euro have of course made things even harder for Greece and other heavily-indebted governments, and markets view their debts as very risky.

But the euro is also home to German government debt - considered an ultra-safe investment by markets.

Even if the more distressed eurozone governments defaulted on their debts, the consequences would be felt well beyond the eurozone's borders, much as the collapse of Lehman Brothers in 2008 was felt outside the US.

And if these countries left the euro, the value of the remaining, more German-dominated euro might actually go up.

How prepared are we, the Bank of England, etc, for a Greek default? - Robert W Warne, Cardiff

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.

Bank of England governor Mervyn King revealed in response to MPs' questions in June that the Bank was working with the Treasury to draw up contingency plans for a Greek default.

He did not give any details of what those plans are, nor have any emerged since.

The direct exposure of UK banks to Greece is fairly limited, but - as with the bankruptcy of Lehman Brothers - a Greek default could have a number of knock-on effects that affect the UK far more severely.

For example, it could lead to the failure of one or more European banks because of their exposure to Greece, or to a general loss of confidence in global banks, in the euro or in the debts of other over-stretched eurozone governments.

The plan may consider actions such as:

emergency cash loans from the Bank of England to the UK banks, if there is a collapse of market confidence in theminterventions to support other short-term cash markets, such as commercial paper markets, which are used by companies to fund themselvesthe government injecting new loss-absorbing capital into the banks, if they suffer heavy losses because of the failure of a European bank or losses on other eurozone government debtsthe Bank publishing details of an audit currently under way of the UK banks' exposures to the eurozone, in order to reduce uncertainty and restore confidencemonetary stimulus - such as cutting rates to zero and buying up more UK government debt - in order to head off a broader economic downturnemergency tax cuts and/or spending increases by the government for the same purpose, with some of the resulting borrowing to be funded by the Bank of England's debt purchasescurrency interventions if the euro were to drop significantly against the pound.What would happen to euros in bank accounts in non-eurozone countries when/if the eurozone breaks up and turns into two or more different currencies? - Robert, Bath

You should check the terms of your bank account.

So long as the euro continues to exist - minus some members - your account should be unaffected.

If, for example, Greece left the euro, its government would probably pass a law overriding its existing euro contracts, as well as those of Greek banks, companies and individuals, redenominating them all into new drachmas.

Some legal experts have warned of a huge mess in these circumstances, with litigation brought by anyone who lost out on the conversion.

However, most financial contracts specify the law of a particular country as its "governing law". For a bank account in Athens or a Greek government bond, the governing law is Greece. So it would be hard for anyone to argue in court that these contracts should not be redenominated, if the Greek parliament says so.

But an account held in a non-eurozone country is likely to apply the law in that country, or the law of a popular jurisdiction such as England, New York or Germany. So it should be unaffected by a Greek redenomination law, unless your account is with a Greek bank.

If the euro ceased to exist altogether - with even Germany exiting - then what happens depends primarily on your account terms, assuming that they are not governed by the laws of one of the eurozone countries.

Your bank probably would have reserved the right to choose which national currency to use as a successor to the euro. Its choice would then be a commercial decision, based on how much it values its reputation and client relations over its own short-term financial gain.

Where does the European Central Bank get the money from to buy Spanish and Italian bonds? How much do they have available and what will they do if they use it all? - Peter Gray, Hitchin, Herts

Essentially the ECB, together with the "eurosystem" of 17 national central banks, can itself create the money that it uses to buy government debts.

There is therefore no theoretical limit to how much it can buy up.

When the ECB buys an Italian bond, it can pay for it by providing to the bond seller with a newly-created euro deposit at the seller's national central bank.

The seller can then use this deposit as "money" to buy other financial instruments, or it can redeem the deposit for newly-printed euro cash.

Practically, however, there are three limits on how much the ECB can do this.

The central bank's first priority is price stability. Creating new money is typically viewed as inflationary.

The ECB may try to reduce the impact of this money creation by borrowing the newly-created money back from the market, or by selling other assets it owns - German government bonds perhaps.

However, in the current heavily-depressed economy, many economists argue that money creation is not inflationary at all, at least in the medium-term, as banks are simply hoarding the money.

Secondly, the ECB may make losses on the bonds if Italy defaulted on its debts, or if it sold them back to the market at a lower price than it bought them.

The eurosystem has "capital" - money given to it by the eurozone governments when it was set up, plus profits it has made on its operations - of about 80bn euros that can absorb these losses.

But if the losses are too big, the ECB would need to be given new capital by the eurozone governments - something they are not legally obliged to do.

So the ECB may be concerned that any such bail-out could damage its cherished political independence.

Thirdly, the ECB is concerned not to distort markets too much, and in particular, not to discourage fiscal discipline by the Italian or Spanish governments by making it too easy for them to borrow.

I have three Spanish buy-to-let mortgages. I am saving sterling in the hope that the euro will collapse in value, to help pay off one of the mortgages. If a euro member leaves, is this likely to happen? If I default on the other two mortgages, can the bank take the one that I have just paid off? - Michael Sands, Northern Ireland

There are too many missing pieces of information to give you a sensible answer. Are the three properties in Spain or the UK? Is your lender in the UK or Spain? Were the loans in pounds or euros?

Whatever the facts, you appear to be in a hole, and as the former Labour Chancellor Denis Healey once said, in that situation, you should stop digging.

Let's assume the properties are in Spain and you borrowed euros from a UK lender to buy them.

Your suggested strategy is complex and hinges on several different things going your way, which they may not.

Firstly, devaluation of the euro. That might happen if one or more countries left the euro, but equally the euro might in fact strengthen if just the weakest countries such as Greece and the Irish Republic leave.

If Spain left the euro and, presumably, readopted the peseta as the national currency, you might think you would benefit from a probable devaluation of the newly adopted peseta.

But you might still be legally obliged to repay your debts in euros, regardless of the new local currency in Spain. And again, the euro might not devalue but appreciate if Spain left.

So, your guess that economic upheaval will inevitably reduce the value of your euro-denominated debts may not be accurate.

Your ambition to default on two mortgages after paying off just the third is also off beam.

Firstly, it is arguably dishonest.

Secondly, if you borrowed from a UK lender, then unless they were asleep when they lent you the money, they will have a charge over all three properties.

They will be able to chase you for any outstanding debts, once they have seized the two defaulted properties and sold them.

The same applies if you borrowed from a lender in Spain. If you still owe them money after they have seized your two mortgaged homes and sold them, they can still pursue you for the debt, there and here.

If your finances are too distressed, default may be inevitable. But it will not be an easy escape route from the debts you took on.

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Survey finds 28p beer price gap

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5 October 2011 Last updated at 23:08 GMT Even the cheapest pint of bitter in London costs more than ￡3, the survey says The cheapest pint of beer is 28p cheaper in pubs in the north of England compared with south-eastern hostelries, a survey suggests.

Some 650 pubs were asked for the cost of their cheapest pint of bitter by researchers for the Good Pub Guide.

They found that this pint cost ￡3.15 on average in the south-east of England and London, but ￡2.87 in Yorkshire and the North.

Campaigners say that overheads faced by pubs could explain the difference.

Rates and rents were often higher for London publicans and that could be reflected in the cost of a drink, said Tony Jerome, spokesman for the Campaign for Real Ale (Camra).

Brewers

The 30th edition of the Good Pub Guide, published on Thursday, found that prices had risen by 7% over the last year - and that the north-south price divide had been in evidence for some time.

However, it suggested that pubs brewing their own ale were often charging less than ￡2.50 a pint, with scarcely any increase over the last year. A recent Camra survey claimed West Yorkshire had more breweries producing more types of beer than any other county in the UK.

Figures from the British Beer and Pub Association's Statistical Handbook claimed that the price differential for a pint in London and in the North East in 2010 was even greater - at 84p.

One brewer warned that the price of a pint could continue to rise

Paul Maloney, national officer of the GMB union, said: "Since the Good Pub Guide was first published, the Beer Orders were introduced in 1989. The aim was to foster competition to increase consumer choice and bring down prices.

"The opposite of this aim has been achieved. The average price for a pint of lager in Britain has risen by 80p higher than justified by inflation and changes in taxes in pubs, as property companies replaced brewers as owners."

Rising costs

Brewer Shepherd Neame said on Wednesday that beer prices would continue to rise in the coming months.

The brewer, which produces real ales such as Spitfire and Bishops Finger, said cereals such as barley were up to 30% more expensive than a year ago, while the price of glass has also increased, pushing up the cost of beer bottles and pint jars.

However, changes to the tax system have made some drinks cheaper.

Since 1 October, all beers with an alcohol content of 2.8% abv and below are being taxed less, to the equivalent of around 35p on every pint when compared with a typical 4.2% cent beer.

The Good Pub Guide also suggested that steak-in-ale pie was the most popular pub food.

Editor Fiona Stapley said that many pubs were diversifying, such as offering breakfasts and coffee mornings, to get through tough economic conditions.

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Icelandic doubts about the euro

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29 September 2011 Last updated at 23:07 GMT By Paul Henley BBC News, Iceland Formal negotiations for Iceland to join the EU come in the middle of the eurozone crisis

Bombarded as Europeans are, these days, by news of economic disaster in the eurozone, few would expect countries to be queuing up to adopt the single currency.

But in Iceland, which this summer opened formal negations to become a member of the EU, the troubled currency remains the big attraction.

"Compared to the Icelandic krona, the euro is like a rock in the sea, you know," is how Gylvi Arnbjoernsson, president of the Icelandic Confederation of Labour, puts it.

He represents an impressive 85% of his country's workers, and he firmly believes joining the EU would benefit them.

"This is partly because we are already members of the European Economic Area (EEA) and enjoying, and also meeting, the challenges of Europe," he says.

"And it is also because the stability of the euro is such that it would be better than the fluctuations of our own currency.

"For the last 50 years in Iceland, the krona has been used to transfer wealth, every 10 years or so, from the workers to the employers, the companies."

In the aftermath of Iceland's big economic crash of 2008, EU membership was suddenly an attractive prospect to many Icelanders - probably a majority of them - because of the safety-in-numbers it seemed to offer.

But times have changed.

Not only are Icelanders taking note of the increasingly frantic efforts of politicians in countries hundreds of kilometres away to save the euro, they are finding that their own financial circumstances constitute less of an emergency.

The conditions attached to their bailout by the IMF seem comparatively lenient.

The new government of 2009 was allowed to carry on borrowing and spending for another year before the cuts kicked in.

In the meantime, devaluation - something impossible for eurozone members - meant all-important exports suddenly became competitive again. Unemployment is already falling.

Many people's mortgages were quietly "re-negotiated" by the newly nationalised banks. The richest 5-7% of the population have been subjected to a new wealth tax.

The welfare state and the health service were shielded from the biggest savings and public sector workers have recently been awarded an above-inflation wage rise.

Opinion polls suggest a clear majority of Icelanders now oppose joining the EU and the finance minister, overseeing all these changes, is among them.

Steingrimur Sigfusson says his country's size has been crucial in the move towards recovery: "You are quicker turning a small boat around than a big ship.

"And that is, I think, what is being proven: that the small, vibrant Icelandic economy, including having our own currency, makes adapting quicker."

Fisheries obstacle

The biggest sticking point for those currently negotiating the possible terms of Iceland's EU membership will undoubtedly be fishing rights.

Iceland owns the rights to 200 nautical miles around its shores.

It fishes and manages them exclusively, sustaining stocks upon which it relies for 70% of its total export business. Gone are the days when banking was Iceland's biggest business.

In the determined fishing community of the Westmann Islands, off the south coast of Iceland, the resistance seems unanimous to any change that might bring EU boats within reach of these waters.

A population of about 4,000, sheltered by intimidating cliffs - black and sheer - in what is the windiest inhabited place on Earth, relies on year-round catches of cod, mackerel and scampi.

Sigmar Oskarsson remembers the Cod Wars with the British in the 1970s, when Iceland last demonstrated the strength of its resistance to foreign fishing fleets.

He is a youthful-looking fisherman of 50, as sceptical as all his colleagues about the idea of EU membership.

"Icelandic fishermen want to keep their jobs," he says.

"We know from our Scottish colleagues how difficult it can be when other nationalities, like the Spanish, fish their grounds.

"We are good at catching fish and good at protecting them. We have been good at it for a hundred years and we want to keep going, to live on fish."

Neither he nor his bosses at the local fishing company go into detail about the fact that Icelandic concerns own substantial amounts of the fishing and fish processing industries in other EU countries, particularly the UK and Germany.

Such extensive foreign involvement would not be allowed under Icelandic law, so it is not as if there is already a level playing field.

Splendid isolation

As the pro and anti campaigns hot up in preparation for a referendum on EU membership, Icelanders will most likely continue to consider themselves a special case.

And their unique isolation within Europe might well prove be too precious an asset for them to compromise.

One of Iceland's most successful artistic exports, the film director and actor Baltasar Kormakur (101 Reykjavik, Jar City), puts it like this when I meet him in a cafe during the city's film festival: "We actually take it for granted that we will get a different treatment from other nationalities.

"We will always be the special kid in the class because we're small. We're not that important. We're like: 'You can't do that to us, you can't take our fish'."

He adds: "It's really hard to beat somebody up who seems too weak to be beaten up."

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Samsung forecast beats estimates

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7 October 2011 Last updated at 06:35 GMT Falling demand and prices of flat-screen TVs have hurt profits at various electronics makers Samsung Electronics has issued a better-than-expected profit forecast for the third quarter as its handset business helped to offset falling demand for TVs and computer chips.

Samsung said it expected an operating profit of 4.2tn won ($3.5bn; ￡2.3bn) a 14% dip from a year earlier, but better than market projections of 3.5tn won.

Compared with the previous quarter, the projected profit is up 12%.

Samsung is the world's second-largest maker of mobile phones.

"Its telecommunications business is seen very positive as shipments of smartphones and other high-end handsets expanded," said Park Jong-Min of ING Investment Management.

Advantage Samsung? Analysts said they expected Samsung's handset business to keep growing robustly, not least due to the Apple's decision to upgrade its existing model of iPhone4 with new features and technology, rather than launch a new version.

Apple had been expected to launch an iPhone5 at a media event held earlier this week.

"Given Apple's relatively unchanged new iPhone, Samsung will have the opportunity to eat into Apple's market share with its hardware build-up and growing software power until next year," said Jang In-Beom of Bookook Securities.

Samsung has also been growing its presence in the tablet PC market.

Last month the Korean electronics manufacturer announced that sales of the Samsung GALAXY S II had crossed the 10 million mark, doubling from five million in just eight weeks.

'Major risk'

Despite the optimism about the growth potential of its handset business, analysts said that external factors remain a big threat to the company in the short to medium-term.

There have been concerns that a slowdown in the US coupled with the ongoing debt crisis in Europe may hurt global growth and dent consumer demand.

"The macroeconomic situation will remain a major risk for Samsung in the fourth quarter," said Ahn Seong-Ho of Hanwha Securities.

At the same time, there are fears that volatility in the currency markets may also have a bearing on its earnings.

The Korean won has fallen as much as 10% against the US dollar since the start of July.

A weaker won makes Korean goods cheaper for foreign buyers.

"The weakening won may have inflated third-quarter profits," said Kim Young-Chan of Shinhan Investment Corp.

However, Mr Kim added the exchange rate remained a threat to Samsung as any recovery in the won would have a counter effect.

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Shares up on eurozone bank plan

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5 October 2011 Last updated at 21:02 GMT German support is considered crucial for any European bank rescue proposal European stock markets ignored fresh warnings about Italy's ability to repay its debts by staging a strong rally.

Reports that European leaders are considering co-ordinated action to bolster banks sent European markets up 3%-5%, while Wall Street also rallied.

On Tuesday, Moody's cut Italy's credit rating by three notches and warned about the country's growth rate.

But investors focused on signs that the debt-laden banking system may soon be recapitalised by European authorities.

German support

In an interview in the Financial Times, Olli Rehn, European commissioner for economic affairs, said: "There is an increasingly shared view that we need a concerted, co-ordinated approach.

"There is a sense of urgency among ministers and we need to move on," he said.

German Chancellor Angela Merkel also said she favoured a pan-European recapitalisation programme if it proves necessary, and that she stood ready to help German banks absorb losses from a possible write-off of Greece's debts.

Continue reading the main story

There are some European regulators and politicians who regard the downgrade of Italy and the woes of the Franco-Belgian bank Dexia as positive events (oh yes)”

End Quote Robert Peston Business editor, BBC News German support is seen as crucial for any such proposal to succeed.

Meanwhile, the International Monetary Fund (IMF) - which has also been calling for eurozone governments to bolster their banks - put the likely cost of such a programme at 200bn euros ($267bn; ￡173bn).

That would put it within the means of the eurozone's bailout fund - the European Financial Stability Facility (EFSF) - which is currently being augmented.

In an embarrassing gaffe, the IMF's Europe director, Antonio Borges, suggested in a press conference that the IMF itself may add its own money to the EFSF's.

But he later rushed out a statement retracting his comments, noting that the IMF lacked the legal authority for such a move, nor did the idea have the backing of the IMF's shareholders, which include the US government.

Banks rise

Signs that Europe's leaders were ready to act came on Tuesday when plans were announced to split struggling Franco-Belgian financial group Dexia into its "good" and "bad" banks.

This plan to ring-fence Dexia's toxic debts led to an initial 10% jump in the firm's share prices in early trading, but it ended the day only 1.4% higher.

Continue reading the main story The problems at Dexia have further undermined the credibility of stress tests carried out earlier this year by European regulators to determine the resilience of the EU's banks - tests that Dexia comfortably passed.

Any recapitalisation programme may need to be preceded by a new round of stress tests, according to the BBC's business editor, Robert Peston, and would presumably consider the possibility of a significant write-off of Greek - and possibly other government - debts.

France's three big banks, which are also heavily exposed to Greece, rose sharply on stock markets, with Credit Agricole 9.9% higher at the close of trading.

Italy's biggest banks were up 5%-7%, while in London Barclays rose 7.7% and RBS was 5% higher.

The rally, which began as a late surge on Wall Street on Tuesday night, continued into US trading hours on Wednesday.

By the close of trading in New York, the Dow Jones was up a further 1.2%, with tech and media stocks taking the lead, while the Nasdaq rose 2.3%.

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VIDEO: Philippines aims to boost rice output

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7 October 2011 Last updated at 00:40 GMT Help

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American workers protest lay-offs

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6 October 2011 Last updated at 23:01 GMT By Caroline Hepker BBC News, New York The protesters gather outside City Hall to shout their complaints at the Mayor's office Is America taking a leaf from Europe's protest manual?

It is rare to see demons

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Wasps owner decides to sell club

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Hayes joined the Wasps board in 2007, before taking ownership on December 2008 Wasps owner Steve Hayes has announced he is looking to sell the club.

Hayes, who also owns Wycombe Wanderers FC - Wasps' fellow tenants at Adams Park - bought the Premiership outfit in 2008.

Hayes said a failure to receive backing for a new stadium at Wycombe Air Park had contributed towards the decision.

"The vision of planning and developing this facility was one of the key reasons I got involved in the club," he told the Wasps website.

"And being unable to bring this to fruition remains bitterly disappointing.

Continue reading the main story June 2004: Buys a 25% stake in Wycombe WanderersOctober 2007: Joins the Wasps board after buying 11.6% stake in the clubJanuary 2009: Takes full ownership of WaspsJuly 2009: Becomes owner of Wycombe, where he was previously managing directorJuly 2011: Fails in bid to create a new stadium for both clubsOctober 2011: Announces he is looking to sell Wasps

"I fully believe that a new stadium for Wasps is essential in the coming years as we have always said that Adams Park was unsustainable as a long-term option.

"I will work with any potential owners to develop the sporting village model we had already come up with at an alternative location."

In his three years at the club Hayes has started an annual St George's Day game at Twickenham and oversaw an English club's first competitive game overseas.

"Any new owner will have to show me that their aspirations are to provide London Wasps with the right level of investment and structure to ensure that they are once again a team in the hunt for titles at the end of every season," the businessman added.

Former Wasps forward Lawrence Dallaglio, who is a member of the club's board, said: "Steve's passion and vision over the past number of years has helped bring the club to new audiences around the world and any new owners will take on a club in a healthy position in terms of the direction it is heading on and off the pitch."

Hayes insisted he will remain at the helm of Wycombe, but has not ruled out a future sale of the League One side.

"I want to assure [Wycombe supporters] that I remain fully committed to Wycombe Wanderers," he explained.

"Of course, as ever, if approaches are made to me for the club then these would be considered carefully based on what is best for the club but for now my intention is to remain the owner for the foreseeable future."

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IEA urges fossil fuel aid cuts

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

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

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

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

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

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

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

Tracking the subsidies

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

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

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

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

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

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VIDEO: iPhone 5 'critical' for Apple

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4 October 2011 Last updated at 02:20 GMT Help

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Cairn makes strike in Sri Lanka

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3 October 2011 Last updated at 08:42 GMT The discovery of natural gas is the first in Sri Lanka for decades Edinburgh explorer Cairn Energy has made its first gas strike in Sri Lanka through its Indian subsidiary.

The offshore well was the first to be drilled in the country for 30 years.

Cairn India made the discovery after drilling almost a mile down offshore in the Mannar Basin, Sri Lanka.

Simon Thomson, chief executive, Cairn Energy said: "Cairn is delighted with this frontier exploration discovery, the first well in Cairn India's three well drilling programme in Sri Lanka."

Cairn Energy is in the process of selling off 30% of its 52% stake in Cairn India to the Vedanta Resources and recently won shareholder and Indian government approval for the deal.

The company's focus has moved to Greenland since it announced it was reducing its stake in its Indian unit.

However, it has had a number of disappointments after turning up several dry wells.

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US bank hit after debit fee news

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30 September 2011 Last updated at 21:56 GMT Bank of America will roll out the change from next year on a state-by-state basis Shares in Bank of America have fallen 2%, a day after it announced plans to charge debit card users $5 (￡3.20) per month to pay for their purchases.

Bank of America, the largest US bank by deposits, said it would introduce the fee early in 2012.

The move comes ahead of a new rule that will limit how much lenders can bill retailers for customer debit card transactions.

The bank's debit card holders will still get free cash withdrawals.

The monthly charge will apply to users of Bank of America's basic bank accounts, and will be in addition to any service fees they already have to pay.

A number of smaller US banks, such as SunTrust, a regional lender based in Atlanta, have already introduced charges for debit card purchases.

So far only Citigroup has ruled out introducing the change.

'Changed economics'

Bank of America said the new fee would be rolled out on a state-by-state basis.

Continue reading the main story

Bank of America is trying to find new ways to pad their profits by sticking it to its customers”

End Quote Richard Durbin Domocrat Senator Its move comes as an amendment to the Dodd-Frank Wall Street Reform and Consumer Protection Act goes into effect from 1 October.

The amendment, brought by Democrat Senator Richard Durbin, limits the fees that banks can charge retailers for processing debit card transactions to 21 cents.

This compares to the previous average of 44 cents, meaning a substantial fall in revenues for the banks.

A Bank of America spokeswoman said: "The economics of offering a debit card have changed."

Sen Durbin said Bank of America's move was "overt and unfair" and that he hoped its customers would "have the final say".

"Bank of America is trying to find new ways to pad their profits by sticking it to its customers," he said.

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Qatar forges new global role

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12 September 2011 Last updated at 23:02 GMT By Katy Watson Middle East business reporter, BBC News, Doha As President Nicolas Sarkozy greeted the world's leaders at the Libya meeting in Paris last month, one leader who emerged from his limousine was perhaps a little less well known than the others.

Qatar's Emir, Sheikh Hamad bin Khalifa Al Thani, then proceeded to stand alongside President Sarkozy and British Prime Minister David Cameron as the talks began.

The tiny Gulf state's bank rolling of the Libyan rebels has given its leader a front-row seat in international politics.

The Arab uprising is changing the political map of the region and Qatar is playing an important role in it.

Tiny population A picture of Qatar's emir hangs on a building in the anti-Gaddafi stronghold of Benghazi

There are fewer than two million people living in Qatar. And of those, only about 250,000 are Qataris, the rest being foreign workers. But its vast gas reserves have made its people the richest on the planet.

At a time of unprecedented unrest and while traditional regional leaders like Egypt are dealing with their own problems, that wealth is being used to try to forge Qatar's new path as a regional political heavyweight.

But Qatar is not a democracy. Ruled by a monarchy, this may seem at odds with the political changes happening in the region, but some experts think it actually helps Qatar in making quicker decisions.

"We have the emir at the top, but he's generally well respected and he has a lot of genuine domestic legitimacy here," says David Roberts of the Royal United Services Institute think tank.

"It's quite conservative so there's some kind of societal deference."

Rebel TV

Qatar's support for the rebels has been widespread and was not just limited to funding the fighting on the ground.

It also provided money for projects such as Libya TV, a television station set up to counter the pro-Gaddafi propaganda machine.

Libya TV is funded by the Qatari government as part of its support for Libyan rebels

It got off the ground in just five days - no dry runs or practices. Dozens of Libyan journalists and non-journalists alike were recruited and trained at lightning speed.

Among them is 26-year-old Yusra Tekbali. Born and brought up in the US, she returned to live in Tripoli in December. But when the violence started, her plans had to change.

A month ago she arrived in Doha to work for Libya TV as a blogger. And despite the shift in direction, she remains upbeat.

"I was lured to Libya by greater economic opportunities and also a connection with my roots," she says.

"But now, the opportunity for Libyans and young Libyans from abroad is going to grow at an amazing rate. And Qatar will have a role in that, of course."

Despite Qatar saying that its interests were solely about the welfare of the Libyan people, it is expected that Qatar's support for the rebels will pay off economically in time, too.

It has already helped to market oil for the rebels and that relationship is expected to continue.

And as the world's biggest exporter of liquefied natural gas - there may be potential to work with Libya on exploring its reserves.

'Arab renaissance' Continue reading the main story

This opens the door quite well for Qatar to take this leadership role and to play a role in the Arab renaissance in the 21st Century”

End Quote Ibrahim Sharqieh Brookings Doha Centre Qatar's role in the Libyan conflict has boosted its profile. And that, according to some experts, is exactly what Qatar wanted. It is a Gulf state trying to stand out from the crowd.

"These are brand new countries, dating back to the 1970s," says Mehran Kamrava, the director of the Centre for International and Regional Studies at Georgetown University in Qatar.

"They're frantically trying to play catch-up, frantically trying to make a global presence felt.

"[They are] competing with countries like Egypt with centuries of history, competing with countries like Saudi Arabia, competing with countries like Iran that has tremendous resources and a massive demography and geography."

This stance has been well received at home.

In a region used to foreign intervention, an Arab country taking the lead is seen as a welcome step and one that provides both political security and economic stability too.

"This opens the door quite well for Qatar to take this leadership role and to play a role in the Arab renaissance in the 21st Century," says Ibrahim Sharqieh, deputy director of the Brookings Doha Centre.

"By having that active role in the international arena at this point and taking political leadership, Qatar is protecting its wealth and protecting its existence."

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Eurozone rates unchanged at 1.5%

October 6, 2011, last updated : 52 BST resignation of President Jean-Claude Trichet as the Bank's Central Europe European Central Bank left interest rates unchanged amid the ongoing crisis in the eurozone debt.

Benchmark rates were held at 1.5% in the third, after growing from 1.25% in July in an attempt to cool inflation.

Earlier, the Bank of England of British kept interest rates hold at 0.5%, but for quantitative re-started.

The decisions come from intensive European leaders beyond speculation does recapitalise banks.

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Qatar gears up for 2022 World Cup

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6 October 2011 Last updated at 23:01 GMT By Bill Wilson Business reporter, BBC News Qatar now has 11 years to prepare for the 2022 World Cup To say the football world was shocked when Qatar was given the right to host the 2022 football World Cup would be an understatement.

Critics, and many still remain, wondered how such a massive event could be held in a country with a total population less than Greater Manchester's, and where the summer temperature can reach 50C.

However, the man at the helm of organising the tournament insists criticism is misplaced and that the Middle Eastern Emirate will be able to stage a memorable tournament 11 years from now.

Hassan al-Thawadi, the secretary-general of the Qatar 2022 Supreme Committee, is looking to provide a World Cup memorable for all the right reasons.

Mr al-Thawadi said that two billion people were within a four-hour flight of Qatar, and that the World Cup would "build bridges of understanding between the Middle East and rest of the world".

And some bridges need to be built.

He said that since Fifa had awarded it the tournament, the emirate had faced an "avalanche of accusations and allegations" relating to claims it had bribed its way to securing the World Cup.

Mr al-Thawadi said Qatar had in fact conducted its bid campaign "to the highest ethical and moral standards".

'Promises'

Now he wants to focus on leaving a "bold legacy" from hosting a World Cup which some analysts estimate could cost as much as ￡138bn to bring about.

Qatar hopes to leave a legacy in the areas of football development, air-cooling technology, building modular stadiums (which can be downsized after the event), and fan experience.

New stadiums will be built and existing ones will have their capacity extended

"We can deliver... and fulfil the promises we made to the world," Mr al-Thawadi told delegates at the Leaders in Football conference in London.

He said Qatar has been drawing inspiration about how to host a successful event from a number of sources, including London 2012.

The small nation, population 1.7 million, is now looking to appoint a project management company by the end of the year - "a crucial appointment which we must get right".

It is also looking to draw up a "master schedule" for stadiums and infrastructure, in order to resolve any potential pitfalls on the road to 2022 as soon as possible.

There will be 12 stadiums in use at the World Cup, and it is hoped the first new one with air-cooling technology with will be in place by 2015.

Cooling

In addition, Mr al-Thawadi said the 2022 World Cup would benefit from a "state-of-the-art transport infrastructure" which needed to be largely constructed from scratch.

The official said that the small size of the emirate meant fans would be able to stay in the same hotel for the duration of the tournament, and also to travel easily and take in two games in one day at different venues.

One on the thorny question of temperature, the country says it is also developing air-cooling techniques.

"Technology is already being trialled in open spaces in Qatar," says Mr Al al-Thawadi.

There has been talk of moving the World Cup to the winter, but this notion has been scotched my many, including the German football federation.

"We submitted a bid that looks towards hosting a summer World Cup - we are moving towards that," says the 2022 supremo.

He said it was up to the global football community to come to any unanimous decision if that situation was ever to be changed.

Meanwhile, nine of the stadiums being used will be modular, and Qatar will donate 170,000 seats to developing countries after the World Cup, when stadiums are slimmed down.

That he said, meant the country would not be lumbered with any large "white elephant" rarely full stadiums after 2022.

Alcohol

For potential visiting fans, Mr al-Thawadi wanted to quell fears that there would be nothing for them to do after matches.

Continue reading the main story

We are confident and excited that this will leave a legacy of understanding, and that people can unite through a shared love of football”

End Quote Hassan al-Thawadi Qatar 2022 "There is significant investment in tourism in Qatar, museums and entertainment sites, and a service industry dedicated towards fans," he says.

"We have always said alcohol would be available. It might not be as available as it is in London, but any fan that wants to enjoy a drink can do so."

He said the Qatar public would also be prepared for the influx of fans and, for example, their different dress sense.

In addition, he said Qatar was host to many different communities, including English people, and was "used to being hospitable".

He added: "We have hosted major events over the years" - including the 2006 Asian Games.

Catalyst

The country has also applied to host the 2017 World Athletics Championship - in competition with London - and also the 2020 Olympics.

"The Olympic Games bid is not a distraction to 2022, and may be an opportunity for some synergies with the World Cup."

It is hoped the 2022 World Cup will help improve football quality in Qatar

Hosting these large sporting events could, he said, be used as "an economic tool".

"The World Cup can be a catalyst of economic change," he believes, not only for Qatar but for the whole Middle East region.

He said a number of yet-to-be-revealed initiatives were in the pipeline to involve other Middle East countries' participation in the World Cup.

Finally, on the playing field, it is hoped that 2022 will provide the same boost to football in West Asia that the 2002 World Cup in Korea and Japan did for East Asia, particularly the two host countries.

"We want people to come and explore, and learn about us," he says.

"We are confident and excited that this will leave a legacy of understanding, and that people can unite through a shared love of football."

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Japan retail sales drop in August

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29 September 2011 Last updated at 00:53 GMT Consumers are being hurt by global economic problems and a weaker labour market Retail sales in Japan registered a surprisingly sharp fall in August as a post-earthquake rebound petered out.

Sales fell 2.7% versus a year ago, a much sharper decline than the 0.6% rate expected by markets.

It ends two months of rising sales during which the Japanese economy appeared to be returning to normality after the natural disaster in March.

The disappointing result mirrors a similar downturn in consumer spending and sentiment in the US and Europe.

On a seasonally-adjusted basis, August sales fell 1.7% from July, which were themselves down a revised 0.3% from the month before.

Wholesalers meanwhile continued to do well, according to the data from the Ministry of Economy, Trade and Industry.

The volume of wholesale transactions accelerated to a year-on-year rate of 5.6% in the month.

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Indian summer 'sparks cash spree'

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4 October 2011 Last updated at 11:05 GMT Record temperatures were recorded for October in England More money was withdrawn from UK cash machines last Friday than on any other day so far this year, thanks to the hot weather, the Link network has said.

Some ￡577m was taken out from Link's machines that day as daytrippers prepared for the warm weekend, it said.

This was the highest amount withdrawn since Christmas Eve of last year, said the company.

Temperatures in England reached record levels for October, with the mercury hitting 29.9C (85.8F).

Cash spending

There are 64,000 cash machines connected to the Link network in the UK - that is nearly all that exist across the country. The latest figures do not include withdrawals when a customer used their own bank's ATM, so represents about 65% of total withdrawals.

Under this measure, the ￡577m withdrawn on 30 September was 14% higher than the amount taken out of cash machines on the same day a year earlier.

The cash spree - and the hot weather - continued through the weekend. The ￡252m withdrawn on Sunday was 11% more than a year earlier.

"The good weather really seems to have encouraged people to withdraw cash in preparation for increased spending over an unusually sunny weekend - confirmation that the right combination of feel good factors can boost short term spending and that cash is a very popular way of paying for these kinds of goods and services," said John Howells, chief executive of Link.

Pay day

Other factors behind the peak may include consumers choosing cash over cards when buying things outdoors, and that more people were in the UK enjoying the sunshine than would have been the case during the summer holiday season when many families go abroad.

A week ago, some retail analysts suggested that the unseasonal weather could hit early sales of autumn fashions.

Friday lunchtimes are commonly the most popular time of the week for cash machine use, with consumers preparing for weekend spending. Last Friday came at the end of the month, at a time when many workers are paid.

Previous busy times this year included the Thursday before the Royal wedding and long bank holiday weekend.

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Dexia shares in new Greece slump

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4 October 2011 Last updated at 09:16 GMT Continue reading the main story Shares in the Franco-Belgian bank Dexia have fallen for the second day running as fears over its exposure to Greece debt continue.

They fell 37% at the open of Tuesday trading after losing 10% on Monday following an alert from the Moody's ratings agency.

Dexia is holding an emergency board meeting amid serious concerns.

The governments of France and Belgium, which are joint shareholders in Dexia, moved to guarantee its debts.

A joint statement from the countries' finance ministers said: "In the framework of Dexia's restructuring, the governments of France and Belgium, in coordination with our central banks, will take all necessary steps to ensure the protection of depositors and creditors."

The two ministers, who are at the wider European finance ministers' meeting in Luxembourg, have been discussing ways to support the bank.

Dexia's shares are worth only just over one euro, so almost any movement will result in a large percentage change.

Market concerns

Greece-linked concerns are also hitting financial markets again after eurozone finance ministers delayed a decision on giving Greece its next instalment of bailout cash.

It came after Greece said it would not meet this year's deficit cutting target.

A meeting set for 13 October, when finance ministers had been expected to sign off the next Greek loan, has now been cancelled, says BBC Europe correspondent Chris Morris.

The UK's FTSE 100 index was down 1.5% at the start of trading. France's Cac was 3.3% lower, while Germany's Dax had lost 3.2%.

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

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

Dexia's exposure to Greek government debt totals 3.4bn euros ($4.5bn; ￡2.9bn). Its total exposure to Greece - including to private-sector Greek borrowers - is 4.8bn euros.

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

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

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

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

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Barclay brothers buy Claridge's

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29 September 2011 Last updated at 21:39 GMT Claridge's is the latest luxury hotel to be owned by the Barclays The Barclay brothers have bought three of London's top hotels, including Claridge's, for 800m euros (￡695m).

They acquired Claridge's, the Connaught and Berkeley from the National Asset Management Agency (Nama), the Irish government agency created to manage the toxic property loans of its bust banks.

Nama said it had recovered 100% of the original value of the loans plus interest.

The Barclays already own the Ritz hotel in London.

The loans had originally been made to the Maybourne Hotel Group by two Irish banks to fund the acquisition of the hotels in 2005.

By buying the loans, the Barclays have acquired the hotels.

Nama took control of the bad property debt from Irish banks during the height of the financial crisis, and it is tasked with maximising the return to the Irish taxpayer over the long term.

The agency has said that it wants to dispose of 5bn euros of UK loans in 2011. Its annual report listed total UK assets of about ￡8.5bn.

Sir David Barclay and his brother Sir Frederick also own the Daily Telegraph and the Littlewoods retail group.

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VIDEO: Thailand launches new rice price policy

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7 October 2011 Last updated at 01:47 GMT Help

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Japan tourism industry recovering

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

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

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

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

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

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

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VIDEO: Prodi: Public will accept debt decision

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29 September 2011 Last updated at 11:00 GMT Help

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UK's AAA rating confirmed by S&P

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

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

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

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

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

'Lacklustre' Continue reading the main story

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

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

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

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

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

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

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

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

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