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VIDEO: Steve Jobs: Apple's driving force

2011-10-31T19:54:00.000-07:00

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6 October 2011 Last updated at 03:56 GMT Help

Barclay brothers buy Claridge's

2011-10-31T15:34:00.000-07:00

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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: Syrian protests hit Lebanon tourism

2011-10-31T10:41:00.000-07:00

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2 October 2011 Last updated at 19:03 GMT Help

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Pension talks yield 'no progress'

2011-10-31T07:31:00.000-07:00

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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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UK needs eurozone safeguards - PM

2011-10-31T03:45:00.000-07:00

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4 October 2011 Last updated at 09:04 GMT Mr Cameron says he is a "practical Eurosceptic" David Cameron has said UK interests must be protected should eurozone countries seek closer integration as a result of the debt crisis in Europe.

The prime minister told the BBC it was "logical" that countries using the single currency would move closer to a single economic policy.

But he said the UK and nine other EU states which are not in the eurozone would need "certain safeguards".

The BBC understands UK officials are preparing for such an eventuality.

The BBC's political editor Nick Robinson said the Treasury and Foreign Office were already discussing how to protect British interests, in areas such as the City of London and the single market, should there be a fundamental change in the shape of the EU.

As the eurozone economic crisis shows no sign of abating, some of its 17 members have been talking about greater fiscal union to bolster the single currency in future and support weaker members.

At the same time, Mr Cameron is facing calls from many of his MPs for a fundamental change to the UK's relationship with Europe. Some want the UK to claw back powers from the EU while others are seeking a referendum on the UK's membership.

'Not naive'

The prime minister, who calls himself a "practical eurosceptic", has said the UK must work within the current EU framework to get the best deal for Britain and that any talk of repatriating powers must wait to a later date.

He told the BBC he believed closer co-operation between eurozone members was "necessary" to prevent a repeat of the current crisis and denied he had changed his view, since before the debt crisis began in 2009.

Continue reading the main story

This is not some naive view that they go off on their way and we are intensely relaxed about it”

End Quote David Cameron on the eurozone "I have always argued that the logic of a single currency is more of a single economic policy," he told BBC Radio 4's Today programme.

"It is one of the reasons I never wanted to join it.

"As eurozone countries move to co-ordinate more, as I believe they should, those outside the eurozone will need certain safeguards to make sure that what the eurozone countries are agreeing separately does not affect the single market."

He added: "This is not some naive view that they go off on their way and we are intensely relaxed about it. There are safeguards we need and the Liberal Democrats completely agree with that."

Deputy PM Nick Clegg, whose Liberal Democrats are the most pro-European of the three biggest UK parties, has said the eurozone crisis should not be used as a justification to radically alter the UK's relationship with the European Union.

But, with 40% of UK trade going to Europe, Mr Clegg has said the single market - which is supposed to guarantee free movement of goods across Europe - must work more effectively and British firms must be able to compete on a level-playing field.

The deputy prime minister has warned that allowing eurozone states to act against the interests of other EU members would create a "divisive and weaker" Europe.

'Held back'

As EU finance ministers meet in Luxembourg to discuss the crisis, Mr Cameron said it was in the UK's interest that the "fire" in the eurozone was put out as quickly as possible.

"The eurozone crisis is holding back the whole world economy, Britain included," he said. "Clearly the Greek situation needs to be resolved one way or another and extremely quickly."

The future of Europe is not on the official conference agenda and one of Mr Cameron's closest allies has warned party members against obsessing about the issue during the event.

But Nick Robinson said it was the dominant issue for many MPs and party members while the PM's advisers believed the EU could be set for a once-in-a-generation transformation due to the current crisis.

This begged the question whether the UK should seeker a closer or more distant relationship with the EU or leave altogether - a possibility rejected by the government.

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Southern Cross homes transferred

2011-10-31T00:30:00.000-07:00

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

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

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

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

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

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

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

Winding up

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

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

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

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

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VIDEO: Typhoon Nesat shuts down Hong Kong

2011-10-30T19:45:00.000-07:00

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29 September 2011 Last updated at 13:19 GMT Help

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US factories 'see slight pick-up'

2011-10-30T16:27:00.000-07:00

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3 October 2011 Last updated at 15:13 GMT Employment in US factories reportedly strengthened in September, although activity remained subdued Manufacturing in the US has registered a small but unexpected pick-up, according to a widely watched survey.

The ISM Manufacturing Index rose to 51.6 in September, from 50.6 a month earlier, beating expectations that the index would remain unchanged.

Any level above 50 indicates expanding activity at US factories.

However, new orders continued to fall, the survey suggested, with respondents saying they were worried by the weak recovery and political deadlock.

Separate data, released simultaneously by the US Commerce Department, showed that the construction industry also grew much more strongly than expected in August.

US stocks reacted strongly to the news, with the main Dow Jones index jumping 1.4%, before later falling back again on what is proving another volatile day of trading.

New orders

The manufacturing sector has now expanded for 26 months in a row, since the 2008-09 recession ended, according to the survey.

But industry continues to endure a soft patch, with the index still well below the 55-60 range seen earlier in the recovery.

Production - which is only one measure of activity included in the survey - also expanded, having been reported as shrinking in August. Employment also picked up more strongly.

Continue reading the main story But the backlog of orders continued to weaken, reaching its lowest level since April 2009.

"We see production is up, back in growth territory, but manufacturing is working off its backlog of orders," said Bradley J Holcomb, who chairs the survey committee.

"The main concern going forward would be if new orders didn't pick up."

He added that anecdotal evidence pointed to concern over the sluggish economy, political and policy uncertainty in Washington, and forecasts of ongoing high unemployment that will continue to put pressure on demand for manufactured products.

'Bumping along the bottom'

Meanwhile, construction spending in the US rose 1.4% in August, according to separate data from the Commerce Department.

That also easily beat market expectations of a 0.3% contraction, and reversed a 1.4% fall seen in July.

Public sector spending accounted for the bulk of the expansion, while private sector spending grew a much weaker 0.4%.

"[It] was better than what we were expecting," said Sean Incremona, economist at financial analysts 4cast.

"We got a big upward correction in public spending - that was due, it has been very weak.

"On the private side we got an upside there but the construction industry is really just parallel to housing, which is really just bumping along the bottom of its cyclical range."

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Pub wins over TV football ruling

2011-10-30T12:43:00.000-07:00

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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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BBC Wales workers' one-day strike

2011-10-30T08:26:00.000-07:00

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30 September 2011 Last updated at 06:10 GMT Bectu is protesting against the loss of four BBC Wales editing jobs BBC Wales workers from the broadcasting union Bectu are staging a one-day strike on Friday.

The union is protesting against the loss of four editing jobs in the BBC's post-production news area.

"Every request made that our members be redeployed in new roles being created in the area of their expertise was refused," said a Bectu statement.

BBC Wales said it was disappointed about the strike and apologised for any disruption to services it might cause.

In a statement the broadcaster said it had a record of successfully redeploying as many staff as possible.

In July, members of the National Union of Journalists (NUJ) at BBC Wales took part in UK-wide industrial action protesting at compulsory redundancies due to cutbacks in funding.

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Japan looking to stabilise yen

2011-10-30T04:08:00.000-07:00

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30 September 2011 Last updated at 07:19 GMT Japanese exports have been hit by the strength of the yen Japan's government has authorised the use of additional funds to help prevent the yen strengthening further, as figures show a slowdown in the growth of industrial output.

The Finance Ministry said it could spend another 15tn yen ($196bn; ￡125bn) to stabilise the currency, which has risen in value as investors look for safety amid economic uncertainty.

Meanwhile, data showed factory output rose by 0.8% in August.

This was less than analysts expected.

"The recent 75-80 yen range [against the dollar] could pour cold water on the Japanese economic recovery," said Finance Minister Jun Azumi.

"We will take bold actions when needed and we don't rule out taking any necessary measures."

A strong yen makes Japanese exports more expensive to overseas buyers.

As well as boosting the fund designed to stabilise the yen, the government said it would continue to monitor foreign exchange traders' positions in order to deter currency speculation.

This is the latest in a series of moves by recent governments to halt the strength of the yen. Prime Minister Yoshihiko Noda's recently-elected government has already announced subsidies for companies struggling to remain competitive.

Retail slump

Although industrial output grew by 0.8% in August, the government said it expected output to fall by 2.5% in September, before rebounding strongly in October.

On Thursday, figures showed a sharp fall in retail sales 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.

This week's data has led some analysts to question the strength of Japan's post-earthquake recovery.

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Markets see big quarterly falls

2011-10-29T23:12:00.000-07:00

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30 September 2011 Last updated at 20:14 GMT By Damian Kahya Business reporter, BBC News Continue reading the main story European and US stocks were down again on Friday, contributing towards one of the worst quarterly falls for the markets in the past decade.

Stocks in France and Germany have fallen in value by more than 25% since the end of June.

Shares in London's FTSE are down 13.7%, the worst quarterly performance since 2002.

Friday's falls follow an unexpectedly sharp rise in the eurozone inflation rate for September to 3%.

Investors had hoped the European Central Bank would move to lower interest rates in the eurozone, after raising them in July to 1.5% to limit inflation.

However, the latest inflation figures may make such a move less likely.

Wall Street's main Dow Jones index ended Friday trading down 2.2% to record its worst quarterly performance since 2008.

Eurozone worries

But Friday's falls were just the latest bout of volatility in European markets, which have failed to regain ground since crashing towards the end of July.

Continue reading the main story Jamie Robertson Presenter, BBC World News

Following all the violent swings in equity markets since the sharp falls at the beginning of August, the main markets have not really moved outside fairly narrow ranges: the FTSE between 5,000 and 5,400 and the Dow between 10,800 and 11,600.

The Nikkei, the Dax and the Cac 40 have been gradually trending downwards by about 6-10% over the past two months. This is almost entirely due to uncertainty over the debt crisis and the fate of the eurozone.

However, even if there is no further bad news on that front, things are likely to get very active for individual companies.

Many of them, particularly ones that move in tandem with the economic cycle such as those in mining, retail, the auto sector and manufacturing, are trading on values that imply double digit growth.

October's results season could upset a lot of earnings forecasts, as markets come to terms with the prospect of near-zero growth in Europe and the US, and companies undergoing what are politely called price adjustments.

Economists say worries over the ability of eurozone countries to pay their debts are sparking concerns of a new banking and credit crisis.

"The euro area debt crisis has potential ramifications to euro area banking sectors in particular," said Grant Lewis, head of research at Daiwa capital markets.

"You've got concerns that a Greek default going wider into something more serious in terms of an Italian default, for example, that would leave banking sectors under-capitalised as well as having a calamitous effect on the economic outlook."

Shares in Germany's Deutsche Bank and Commerzbank both lost more than 30% in value since the end of June.

Stocks in French banks fared even worse. Societe Generale saw its stock fall more than 50%, while BNP Paribas saw its share price fall more than 40%.

The share falls have therefore been most pronounced in eurozone countries, with the FTSE falling less than benchmark German and French exchanges.

Brent crude was also set for the biggest quarterly fall since the financial crisis of 2008.

Oil for delivery in one month's time fell just over 8% to $103 a barrel in London as investors worried about a slowdown in the global economy.

Worries ahead Global markets have been hit by a 'toxic cocktail' of factors, says one economist

Despite the record quarterly falls, markets remain up on the levels they reached after the 2008 financial crisis.

"There are certainly widespread indications of pretty serious financial stress, but they are not by and large as dramatic as they were in 2007 and 2008," George Magnus, European economist at UBS, told the BBC.

"Then, the whole edifice of the Western banking system was about to implode. At that point, I think it was far more dramatic than it is now."

But investors and economists fear the situation may deteriorate further.

Markets are likely to look to forthcoming company results and quarterly economic data for their next move.

In the longer term, economists say they are seeking reassurance from politicians.

"I think markets are expecting something of substance to be revealed by the G20 [group of leading nations] in November and if it isn't, we could be in a lot of trouble," Mr Magnus added.

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Shell Singapore fire 'contained'

2011-10-29T19:49:00.000-07:00

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29 September 2011 Last updated at 04:27 GMT The refinery is on Bukom island about five kilometres away from Singapore's mainland Royal Dutch Shell said a fire that broke out at a refinery in Singapore - its biggest globally - has been contained.

The fire started on the plant on Bukom island, five kilometres off Singapore, on Wednesday and affected a unit that helps make diesel fuel.

Shell said it is shutting down units at the refinery as a precaution.

Singapore is a trading hub and analysts said a prolonged shutdown could tighten supplies.

Shell said that, while the fire was contained, firefighters were still working to completely extinguish it.

It also said an inquiry would be forthcoming

"We believe it was an accident," the company said in a statement. "A full investigation will be conducted once the fire is put out."

Trading centre

Shell shut down a hydrocracker at the refinery, which will affect gas oil and jet fuel production. All crude units were also operating at reduced rates.

Capacity at the Bukom plant is 500,000 barrels a day.

The fire hit at a time when refiners around Asia are already running near full capacity to meet demand.

Singapore is the world's largest market for fuel oil and Asia's hub for crude and refined product trading.

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Qantas boss threatened in job row

2011-10-29T16:03:00.000-07:00

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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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Experts debate eurozone options

2011-10-29T11:07:00.000-07:00

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2 October 2011 Last updated at 00:06 GMT A number of ideas are reportedly being discussed to tackle the eurozone debt crisis.

These include a 50% write-down of Greece's government debts, strengthening big European banks that could be hit by any defaults by highly indebted governments, and boosting the size of the eurozone bailout fund, the European Financial Stability Facility (EFSF).

Here, eight economists discuss what they think will happen and what they think needs to happen in the eurozone.

Senior managing director of economics at FTI Consulting and former UK government adviser

Last week's events, with all the market volatility, were a serious wake-up call to all international institutions and to policymakers. I think they've understood it and institutions will be set up in such a way to ensure future crises should be averted.

I think we will see a haircut on Greek bonds, a recapitalisation programme for banks and an increase in the size of the bailout fund - but you need all these things, they need to be part of a package.

Even with that, in a year's time Europe will still be pretty weak because the long-term problems will still be there - low growth and unsustainable debt.

What we have seen for Greece will have to happen elsewhere. Haircuts are inevitable for other countries too.

They have to rethink how you achieve faster growth in Europe. If you don't get back to growth then the debt problems will remain.

The next thing that needs to be looked at seriously is issuing eurobonds. That may well be what we need in the longer term to lead us back to growth.

Director, Centre for European Policy Studies

We believe a market-based approach is needed to reduce Greece's debt.

The EFSF should offer holders of Greek debt an exchange into EFSF paper at the current market price. Banks would be forced in the context of the ongoing stress tests to write down holdings in their banking book and thus have an incentive to accept the offer.

More widely, we argue that the EFSF needs to be restructured.

You cannot just increase its size because if Italy or Spain were to step out as a guarantor, that would leave France, for instance, with a share of 40%, which it could not sustain and would lose its triple-A credit rating.

It cannot work as intended, but if it were re-registered as a bank, which would give it access to potentially unlimited ECB refinancing in case of emergency, the general breakdown in confidence could be stopped while leaving the management of public debt under the supervision of finance ministers.

Professorial research fellow, the European Institute of the London School of Economics. Currently researching EU economic policy, governance and policy co-ordination under European Monetary Union

The one obvious thing leaders should do would be to decide rapidly on a way of moving towards genuine eurobonds.

The Germans, manifestly, are very hostile to the idea, but it is a development that seems to have so many advantages that it ought to be pursued.

The trick will be to find a formula that deals with the "moral hazard" objections by introducing well-judged conditionality.

Economist at Open Europe, an independent think tank campaigning for reform of the EU

Greece obviously needs to restructure. It's looking at write-downs of 50% - that's a necessary step. It finally looks like the eurozone leaders are coming round to that.

But if it's not combined with recapitalising banks and other economic reforms it won't work.

In terms of the write-downs, banks will be able to absorb the hit because they should have been preparing for it for the last year. I think it would be necessary to use the EFSF to help recapitalise these banks and provide a backstop.

At the moment there's no clear pan-European mechanism for dealing with winding down a cross-border bank. I think we need a policy for what happens in this situation, a huge policy that needs to be detailed.

They also have to look at the different needs of the eurozone - for instance, interest rates in Germany would be very different to those in Greece. Those imbalances aren't going to go away.

Senior Economic Adviser, UBS Investment Bank

What I think the Europeans will choose to do is leverage the capital of the EFSF (currently 440bn euros) up by borrowing 5-10 times that from the market. They would then have the capacity to go and buy all of the sickly sovereign bonds that the banks are sitting on and swap them for bonds they themselves will issue.

I don't think it would be successful. In the short run it would probably be a bit of a tonic for bank stock prices and equity markets, but it doesn't do anything to solve the problem of the euro crisis at all.

I think you need a combination of three things.

These are: a restructuring template for Greece's debt with long gross periods - three years for the interest payment and 5-10 years for the principal repayment. That template might then have to be used for other countries.

Then, to stop Greek banks collapsing, you have to support the Greek banking system. And to stop banking contagion spreading to the likes of Italy and Spain, you need a banking recapitalisation programme.

And if the ECB said they were prepared to stand by and buy any amount of Spanish and Italian bonds, then we'd raise three cheers.

Anything that stops short of cleansing the European banking system will not be enough.

Chairman and chief economist, Lombard Street Research

The problem is that the Club Med countries - Greece, Italy, Spain and Portugal - are not competitive. Even if they agree to writing down Greek debts and increasing the EFSF, that will only be successful in postponing the issue for a few more months. It won't stop debt going up.

For the euro to survive the only solution is for the Club Med countries to leave the single currency. I think Ireland could stay in the euro as, although it's banking system is a mess, it is cost competitive - exports make up most of its GDP - so it is possible to turn the economy round quite fast.

Former economist at Merrill Lynch/Bank of America, now chief economist at Berenberg Bank

The probability that we will get a significant write-down of Greek debt as part of an orderly programme, with an immediate recapitalisation of Greek banks, and with further European support for Greece, has risen substantially.

The key question in all this is nothing to do with Greece - but whether upon granting Greece debt relief we can protect Italy from the market panic and prevent contagion.

The risk Greece will default is now above 50%. But Greece is highly likely to stay in the euro come what may.

I would like to see the ECB commit to being the ultimate backstop - if things get really ugly the ECB should buy more government bonds.

Professor of economics at the Graduate Institute in Geneva, specialises in monetary integration, monetary policy and financial crisis

Discussions about the EFSF are irrelevant. It shows policymakers haven't zeroed in on the crisis and what to do about it. The EFSF currently has 440bn euros. The amount we're talking about for Italy and Spain, as well as Greece, Portugal and Ireland could be 3.5 trillion euros.

I think that Greece will inevitably default, and I believe that Italy too will have to default, but I don't see a willingness in policymakers to accept that.

The ECB is the only institution that can stop the crisis. My solution is for the ECB to issue a partial guarantee on the existing public debts of eurozone governments, of say, up to 60% of GDP. It would allow governments to default but would create a backstop.

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Players named in 'cricket scam'

2011-10-29T06:35:00.000-07:00

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Japan extends quake loan scheme

2011-10-29T02:19:00.000-07:00

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7 October 2011 Last updated at 05:26 GMT The earthquake and tsunami caused widespread damage to Japan's infrastructure The Bank of Japan (BOJ) has extended its loan scheme for banks operating in areas affected by the earthquake and tsunami by six months.

The central bank had offered 1tn yen ($13bn, ￡9bn) in special loans to banks to ensure liquidity for reconstruction efforts after the natural disasters.

The loan scheme was due to expire at the end of this month.

BOJ also left its interest rate unchanged at 0.1% in a bid to boost growth amid uncertain economic outlook.

"Rebuilding from the earthquake is the dominant story for Japan, and this will become an identifiable force in the second quarter of next year." said Adrian Foster of Rabobank International.

Uncertain outlook Continue reading the main story

If concerns over Europe trigger a spike in the yen that would threaten Japan's real economy, the BOJ could ease policy again as it did in August”

End Quote Yasuo Yamamoto Mizuho Research Institute Japan's economy in a recession and has contracted for three successive quarters.

Though the reconstruction and rebuilding efforts are expected to boost growth, analysts warned that external factors may hurt Japan's economy.

"Uncertainty over Europe remains and there is a possibility that more negative news will come out of the region." said Yuichi Kodama of Meiji Yasuda Life Insurance.

The are fears that a global economic slowdown may dent demand for Japanese exports and impact growth.

Analysts said the central bank may be forced to ease its policies even further if that happened.

"I think there is still a 50% chance of additional easing by the BOJ this year." Mr Kodama added.

Yen trouble

The uncertainty surrounding the global economic growth has seen investors flock to the yen, a traditional safe haven in such times.

That has resulted in the Japanese currency strengthening against the US dollar, a move that has hurt the country's manufacturing and export sector.

Japanese authorities have already intervened in the currency market in a bid to stem the yen's rise and analysts said the central bank may be forced to step in if the currency continued to rise.

"If concerns over Europe trigger a spike in the yen that would threaten Japan's real economy, the BOJ could ease policy again as it did in August," said Yasuo Yamamoto of Mizuho Research Institute.

"Further easing would involve boosting its asset-buying scheme."

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VIDEO: No guaranteed oil contract reward

2011-10-28T23:09:00.000-07:00

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Aref Ali Nayed, Chief Operations Manager of Libya's Stabilisation Team, tells HARDtalk's Stephen Sackur that foreign support for the Libyan revolution should not be rewarded by oil contracts because support should have been motivated by humanity and not material gain.

You can watch the full interview on Wednesday 28 September at 03:30 GMT, 08:30 GMT, 15:30 GMT and 20:30 GMT. And on BBC News Channel at 0430 BST on Wednesday 28 September and 00:30 BST on Thursday 29 September.

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

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Survey finds 28p beer price gap

2011-10-28T18:28:00.000-07:00

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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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US Senate backs currency debate

2011-10-28T14:59:00.000-07:00

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4 October 2011 Last updated at 01:53 GMT Many argue that the Chinese yuan is undervalued, giving China a massive trade advantage The US Senate has voted in favour of debating laws which could pressure China to let its currency rise in value.

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.

Some politicians and trade groups say China uses its currency in such a way.

The Chinese government said that it "firmly opposed" the bill.

It accused the US of using the "so-called currency imbalance as an excuse to upgrade the exchange rate further, to take protectionist measures, [which is] a serious breach of World Trade Organisation rules, [and] seriously interfere with economic and trade relations".

Though the bill does not specifically mention China, it would enable the US government to put punitive duties on a country with a misaligned currency.

'Unfair competitive advantage'

Unlike most other major currencies, China does not allow its currency, the yuan, to float freely on exchange markets. Academics have argued it could be undervalued by as much as 20% - 40% compared to the US dollar.

Continue reading the main story

Using anti-dumping and countervailing duties to address currency valuation is misguided and could lead to a trade war”

End Quote Stephanie Lester Retail Industry Leaders Association China has been accused of keeping the value of its currency artificially low in a bid to make its exports cheaper and more competitive than rivals. At the same time, it also makes goods from abroad more expensive for the Chinese buyers than products manufactured at home.

Many US politicians have said that China's currency policies have not only hurt US businesses but have also had an impact in the job market.

"My colleagues, both Democrats and Republicans, agree that China's deliberate actions to devalue its currency give its goods an unfair competitive advantage in the marketplace," Senate majority leader Harry Reid said.

"In the last decade alone, we have lost 2 million American jobs to China because of a trade deficit fuelled by currency manipulation," he added.

The debate on the value of the yuan and its effect on the US economy has been fanned further by a slowdown in the US and fears that it may be slipping into a recession.

At the same time, a high rate of unemployment has also become a huge problem for the authorities as they try to kick start growth in the world's biggest economy.

Unilateral approach? Continue reading the main story Use the dropdown for easy-to-understand explanations of key financial terms:AAA-rating GO The best credit rating that can be given to a borrower's debts, indicating that the risk of borrowing defaulting is miniscule.The US and China's other trading partners have been putting pressure on China to let its currency appreciate. While Beijing has allowed its currency to rise in the past 12 months, its critics have said that the appreciation has been too little.

The yuan has gained almost 5% against the US dollar during the period and over 8% against the euro.

However, China has maintained that a sudden rise in the yuan's value would not only hurt its export sector but also have a detrimental effect on its overall economy.

Critics of the currency bill warned that any such law may negate efforts for a cordial agreement with China.

The Emergency Committee for American Trade said the bill was "a highly damaging unilateral approach that will undermine broader efforts to address China's currency undervaluation".

Others have argued that the US has created its own economic problems and that antagonising the Chinese could potentially provoke a trade war which would be even worse for the economy.

"Using anti-dumping and countervailing duties to address currency valuation is misguided and could lead to a trade war," said Stephanie Lester of The Retail Industry Leaders Association.

"Sparking a trade war with China - one of our largest and fastest growing export markets - could have disastrous consequences for American companies and workers, and for our economic recovery," she added.

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Zambia president nulls bank sale

2011-10-28T11:53:00.000-07:00

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3 October 2011 Last updated at 17:10 GMT President Sata has begun a mass shake-out of political appointees inherited from his predecessor Newly-elected Zambian President Michael Sata has cancelled the controversial sale of one of the country's banks.

The $5.4bn sale of Finance Bank to FirstRand of South Africa was agreed under his predecessor, Rupiah Banda.

The bank had been seized from its shareholders in 2010 by Zambia's central bank, who alleged illegal and unsound practices.

Mr Sata, whose election ended the 20-year rule of the previous regime, has vowed to shake-up the political system.

After only a week in power, the president has already sacked the head of the central bank, as well as a string of other appointees of the previous government, including the head of the anti-corruption authority.

The original decision of the central bank to strip the bank's shareholders has also been overturned.

"There's no document of sale for Finance Bank and I am directing the ministry of finance to take the bank back to its owners immediately," said Mr Sata.

The bank's chairman, Rajan Mahtani, said he was grateful: "I am happy that Zambian investment has been restored to Zambian investors. It was all politically motivated."

FirstRand, a major South African bank, said it had received no formal notification of the decision and would continue to liaise with the Zambian central bank.

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No temporary tax cuts - Osborne

2011-10-28T08:02:00.000-07:00

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

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

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

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

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

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

'Debt crisis'

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

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

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

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

Continue reading the main story Nick Robinson BBC Political Editor

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

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

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

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

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

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

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

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

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

'Underspend'

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

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

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

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

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

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

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

Credit rating

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

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

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

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

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

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VIDEO: Philippines aims to boost rice output

2011-10-28T03:25:00.000-07:00

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7 October 2011 Last updated at 00:40 GMT Help

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US bank hit after debit fee news

2011-10-27T23:25:00.000-07:00

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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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Crowds swell Wall Street protests

2011-10-27T19:25:00.000-07:00

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1 October 2011 Last updated at 01:49 GMT The crowds in Zuccotti Park are frustrated at a lack of employment and opportunity in the US An estimated 2,000 people have gathered in Lower Manhattan, New York, for the largest protest yet under the banner Occupy Wall Street.

Demonstrators marched on New York's police headquarters to protest against arrests and police behaviour.

Several hundred people have camped out near Wall Street since 17 September as part of protests against corporate greed, politics, and inequality.

Earlier, UK band Radiohead were forced to deny rumours they would appear live.

A tweet sent out by a Twitter account linked to the protest movement set off a firestorm of online interest.

But a spokesman for the band later denied they were planning to appear, and the group themselves denied the rumour on Twitter.

"We wish the best of luck to the protesters there, but contrary to earlier rumours, we will not be appearing today at #occupywallstreet," @Radiohead tweeted.

Anger at police

The Occupy Wall Street movement has set up its base camp in Zucotti Park, a privately owned patch of land not far from Wall Street.

Continue reading the main story

We blame the banks. They were part of this, but so was Freddie Mac and Fanny Mae and Congress and you and me and everybody”

End Quote Michael Bloomberg Mayor of New York City Hundreds of people have camped out in the park since 17 September.

The loosely organised group says it is defending 99% of the US population against the wealthiest 1%, and had called for 20,000 people to "flood into lower Manhattan" on 17 September and remain there for "a few months".

Some 80 people were arrested during a march on 25 September, mostly for disorderly conduct and blocking traffic, but one person was charged with assaulting a police officer.

Friday's protest numbers were swelled by local trade unions and by those attracted to the area by the rumour of Radiohead's attendance.

New York's police have come in for criticism by the movement since video emerged of pepper sprays being used against demonstrators last weekend.

"NYPD protects billionaires and Wall Street," read one placard carried aloft on Friday, the AFP news agency reported, as crowds marched towards the city's police headquarters, where they rallied peacefully before dispersing.

The stand-off at One Police Plaza passed off largely peacefully

New York Mayor Michael Bloomberg used his weekly appearance on a radio show to criticise the protesters, saying they were targeting the wrong people.

"The protesters are protesting against people who make $40,000 or $50,000 a year and are struggling to make ends meet. That's the bottom line," he said.

"We always tend to blame the wrong people. We blame the banks. They were part of this, but so was Freddie Mac and Fanny Mae and Congress and you and me and everybody."

A series of other small-scale protests have also sprung up in other US cities in sympathy with the aims of Occupy Wall Street.

The movement's website on Friday said a Boston movement had begun, with other reports online suggesting a sit-in was due to begin on Saturday in downtown Washington DC.

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