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Qatar gears up for 2022 World Cup

2011-10-23T23:38:00.000-07:00

Flybe shares sink on sales slump

2011-10-23T20:38:00.000-07:00

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

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

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

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

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

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

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

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Typhoon Nesat heads for Vietnam

2011-10-23T16:55:00.000-07:00

29 September 2011 Last updated at 15:19 GMT Typhoon Nesat is heading for Vietnam after making landfall on the southern Chinese island of Hainan A typhoon that caused death and destruction in the Philippines and shut down Hong Kong is now heading towards the coast of Vietnam.

About 100,000 homes were evacuated on the southern Chinese island of Hainan as Typhoon Nesat threatened to cause landslides.

Fishing boats in northern Vietnam have been ordered to return to port as the storm approaches.

The typhoon killed at least 39 people in the Philippines.

The Chinese authorities on Hainan island called boats back to port, suspended flights and ferry services, and closed schools.

Typhoon Nesat made landfall in Hainan's Wenchang city, packing winds of up to 150 km/h (93 mph).

The typhoon forced the Hong Kong Stock Exchange and most businesses and schools there to close on Thursday as it swept past the territory, bringing howling winds, torrential rain and rough seas.

All ferry and some bus services were cancelled, and trains operated at a reduced frequency.

There were few people on the streets, with 100km/h winds shredding umbrellas and making it hard to walk.

Local radio reported that two people, including a taxi driver, were injured when scaffolding collapsed onto a taxi.

And a large cargo barge crashed into the seafront after slipping its moorings, television footage showed. About 50 people had to be evacuated from a nearby block of flats.

Neighbouring Macau was also affected, with schools and businesses closed. But the city's glittering casinos remained open for the tourists who managed to get there.

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US durable goods slip in August

2011-10-23T12:41:00.000-07:00

28 September 2011 Last updated at 15:05 GMT New orders for US cars and car parts fell sharply in August Orders for big manufactured goods in the US fell slightly in August after a sharp jump in the previous month, due in part to a fall in demand for cars.

Durable goods orders fell by 0.1% to $201.8bn, roughly in line with expectations, after a 4.1% rise in July, the Commerce Department said.

However, plane orders grew strongly for the second month in a row.

The figures come a day after weak housing and consumer confidence data reinforced concerns for the US economy.

On Tuesday, the closely-watched S&P Case Shiller index showed stagnant house prices in July, while the Conference Board's consumer confidence index for September showed no recovery from August's weak level.

'Positive signals'

The durable goods figures from the Commerce Department said new orders for motor vehicles and parts fell by 8.5% between July and August.

This was partially offset by a jump of 23% in aircraft orders.

Analysts said the figures were reassuring, given the large jump in total orders in the previous month.

"The marginal slippage in August after a positive July is not enough to suggest trend has turned negative," said David Sloan at IFR Economics.

"In fact the August breakdown contains some positive signals for business investment."

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Tributes flood in for Steve Jobs

2011-10-23T08:57:00.000-07:00

6 October 2011 Last updated at 18:28 GMT 1984-2011: Three decades of innovation at Apple

World and business leaders have paid tribute to Apple co-founder Steve Jobs, who has died at 56 after a long battle with pancreatic cancer.

US President Barack Obama and Russian counterpart Dmitry Medvedev said Mr Jobs had changed the world.

Microsoft's Bill Gates said it had been "an insanely great honour" to work with him. Facebook founder Mark Zuckerberg remembered his "mentor and friend".

The Twitter microblog site struggled to cope with the traffic of tributes.

Apple itself said Mr Jobs had been "the source of countless innovations that enrich and improve all of our lives" and had made the world "immeasurably better".

Thousands of celebrities and ordinary people went on Facebook, Twitter and YouTube to record their tributes and memories of the man behind products such as the iPod, the iPhone, the iPad.

The death of Mr Jobs could create a record for Twitter traffic.

Thousands of people all over the world have also been attending Apple stores to leave flowers, notes, and apples with a bite taken from them to mimic the company's logo.

Apple's leading rivals such as Microsoft, Google, Sony and Samsung all chipped in with glowing tributes.

GS Choi, chief executive of Samsung, which is embroiled in a major court battle with Apple on patents, said Mr Jobs was an "innovative spirit" who "introduced numerous revolutionary changes to the information technology industry".

In his statement, Bill Gates said: "The world rarely sees someone who has had the profound impact Steve has had, the effects of which will be felt for many generations to come. For those of us lucky enough to get to work with him, it's been an insanely great honour."

Continue reading the main story Peter Jackson BBC News, London

A single bunch of flowers - still in their plastic wrapper - were the only outward sign of the passing of Steve Jobs outside Apple's flagship London store in Covent Garden.

Ginnie Leatham, a brand director in the media industry, from West Sussex, hand delivered a single red Gerbera to staff inside the store.

She said: "I was really sad when I woke up this morning. I had a real lump in my throat and felt quite tearful.

"I was thinking about it on my commute into work. I always walk past the Apple store and I just thought 'I'm going to stop'.

Mr Zuckerberg wrote on Facebook: "Steve, thank you for being a mentor and a friend. Thanks for showing that what you build can change the world. I will miss you."

His comments were "liked" by more than 200,000 people within hours.

In his own tweet, Barack Obama wrote: "There may be no greater tribute to Steve's success than the fact that much of the world learned of his passing on a device he invented."

Web users in China have reportedly posted almost 35 million online tributes.

Tim Cook, who was made Apple's CEO after Mr Jobs stood down in August, said his predecessor had left behind "a company that only he could have built, and his spirit will forever be the foundation of Apple".

UK Prime Minister David Cameron said: "Steve Jobs transformed the way we work and play; a creative genius who will be sorely missed."

New York mayor Michael Bloomberg said that the US had "lost a genius who will be remembered with Edison and Einstein".

News Corp's Rupert Murdoch said: "Steve Jobs was simply the greatest CEO of his generation."

Apple co-founder Steve Wozniak will remember Mr Jobs for "knowing what made sense in a product"

People also gathered outside Mr Jobs's home in California's Silicon Valley to lay floral wreaths, while flags were flown at half mast outside the Apple headquarters in Cupertino, California.

A statement from Mr Jobs's family said they were with him when he died peacefully on Wednesday.

"In his public life, Steve was known as a visionary; in his private life, he cherished his family," they said, requesting privacy and thanking those who had "shared their wishes and prayers" during his final year.

Face of Apple

Mr Jobs built a reputation as a forthright and demanding leader who could take niche technologies - such as the mouse and graphical user interface, using onscreen icons rather than text - and make them popular with the general public.

Continue reading the main story Born in San Francisco in Feb 1955 to students Joanne Schieble and Syrian-born Abdulfattah Jandali - adopted by a Californian working class coupleHad a summer job at Hewlett-Packard while at school - later worked at AtariDropped out of college after six months and went travelling in India, where he became a Buddhist Launched Apple with school friend Steve Wozniak in 1976 - first Apple computer sold the same yearLeft Apple amid disputes in 1985 but returned in 1996 and became CEO in 1997Bought Pixar animation company in 1986 for $10mMarried in a Buddhist ceremony in 1991 - has three children with his wife and a daughter from a previous relationshipHad a personal wealth estimated at $8.3bn (￡5.4bn) in 2010Diagnosed with pancreatic cancer in 2003, and after three periods of sickness leave, resigns as Apple CEO in August 2011He introduced the colourful iMac computer, the iPod, the iPhone and the iPad to the world. His death came just a day after Apple unveiled its latest iPhone 4S model.

With a market value estimated at $351bn (￡227bn), Apple became the world's most valuable technology company.

More than almost any other business leader, Mr Jobs was indistinguishable from his company, which he co-founded in the 1970s.

As the face of Apple, he represented its dedication to high-end technology and fashionable design.

And inside the company he exerted a level of influence unheard of in most businesses.

Mr Jobs also provided major funding to set up Pixar Animation Studios.

In 2004, Mr Jobs announced that he was suffering from pancreatic cancer. He had a liver transplant five years later.

In January, he took medical leave, before resigning as CEO in August and handing over his duties to Mr Cook.

In his resignation letter, Mr Jobs said: "I believe Apple's brightest and most innovative days are ahead of it. And I look forward to watching and contributing to its success in a new role."

However, Mr Jobs stayed on as Apple's chairman.

Despite his high profile, he remained fiercely protective of his private life.

He married his wife Laurene in 1991, and the couple had three children.

Mr Jobs also leaves a daughter from a previous relationship, and as an adult he discovered that he had a biological sister, US novelist Mona Simpson.

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Pub waits on TV football ruling

2011-10-23T05:44:00.000-07:00

4 October 2011 Last updated at 05:50 GMT Karen Murphy saved more than ￡350 per month by using a cheap foreign decoder A pub landlady will later learn the result of her legal fight with English football's Premier League over use of a foreign TV decoder to screen games.

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 appealed her case to the European Court of Justice.

Its judges are to rule whether the league's power to restrict broadcasting rights within the UK breaches EU rules.

If they rule in favour of Ms Murphy, it could trigger a major shake-up for the Premier League and its current exclusive agreements with Sky Sports and ESPN.

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.

Ban 'not possible' Continue reading the main story

The much bigger danger for football, indeed all sports, is the rapid blurring of the lines between distribution and access to live sport.”

End Quote David Bond BBC Sports Editor But earlier this year the Luxembourg court's advocate general issued a legal "opinion" backing her case.

"European Union law does not make it possible to prohibit the live transmission of Premier League football matches in pubs by means of foreign decoder cards," declared Julie Kokott.

Such opinions have no legal force, but the full court follows the advice in about 80% of cases.

The league's existing arrangement allows selected broadcasters to screen matches and "exploit them economically within their respective broadcasting areas, generally the country in question", according to the advocate general.

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.

And the 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.

The European judges have been considering Ms Murphy's case for seven months since the opinion was released and are taking into account EU directives across several areas.

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Crowds swell Wall Street protests

2011-10-23T02:40:00.000-07:00

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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iPad 'gains 80% of tablet market'

2011-10-22T22:41:00.000-07:00

27 September 2011 Last updated at 16:00 GMT Apple's iPad, now in its second generation, has proven a big hit with consumers Apple's iPad captured 80% of the tablet computer market in the US and Canada in April to July, a report has said.

The iPad accounted for six million of all 7.5 million tablets shipped in North America during the second quarter of 2011, according to research group Strategy Analytics.

It described Apple as a "formidable market leader".

Yet it added that Amazon - which is expected to unveil its own tablet this week - could become a big challenger.

'Strong brand'

Stategy Analytics senior analyst Alex Spektor said: "Apple remains a long way ahead of its main rivals such as Motorola, Samsung, RIM, Asus and HTC.

"A combination of cool branding, user-friendly hardware, entertaining services and savvy retail distribution has made Apple a formidable market leader."

According to reports, online retailer Amazon could announce the release of its first tablet as early as Wednesday.

"Provided the pricing, screen size and hardware design are right, Amazon can be one of the main challengers to Apple's dominance," said Neil Mawston, director at Strategy Analytics.

"Like Apple, Amazon has a strong brand, compelling content, sophisticated billing systems and widespread distribution.

"In effect, Amazon's new tablet product represents a good opportunity to place an Amazon shopping cart in the hands of American consumers, offering optimised access to purchasing digital content or physical goods from the Amazon online store."

The continuing popularity of Apple's iPad comes despite its incompatibility with Adobe Flash software, meaning that users cannot view a large number of online videos.

Rivals such as Samsung are quick to highlight in their advertising that their tablets are able to use Flash.

Apple and Samsung, which makes the Galaxy range of tablets, are also continuing a number of legal disputes over patents.

On Monday, Apple declined to comment on reports that it had cut orders for iPad parts from its suppliers because of falling sales.

The study by an Asian analyst of US bank JPMorgan Chase said several suppliers had indicated that Apple had reduced its orders by 25%.

The iPad was first released in April 2010, with the second version, the iPad 2, following in March of this year.

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Wolseley returns to annual profit

2011-10-22T18:25:00.000-07:00

4 October 2011 Last updated at 07:19 GMT Wolseley said weaker economic forecasts would have an impact on its markets Building and heating materials group Wolseley has returned to a full-year profit in 2010-11.

The group suffered when the housing market was hit during the recession, but said it had focused on improving its "customer, product and vendor mix".

Wolseley reported a pre-tax profit of ￡391m in the year to July, compared with a ￡328m loss a year earlier.

It said markets were broadly stable but there had been "no strong rebound in activity after the recession".

Revenues rose 3% to ￡13.6bn.

The group also took a ￡39m charge on its Bathstore and BCG brands in the UK, "reflecting a deterioration in the outlook for retail markets".

It added that in the current environment, it remained cautious about its cost base.

"Recent economic forecasts have weakened, and over time this is likely to have an impact on our markets," said chief executive Ian Meakins.

The company has been selling off units as part of a disposal strategy over the past 18 months.

In July, it sold its French distribution division Brossette and British Build Center business to France's Saint-Gobain for ￡310m.

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Firms fear energy price hikes

2011-10-22T13:27:00.000-07:00

4 October 2011 Last updated at 04:09 GMT By Gerry Northam Reporter, File on 4 Energy-intensive industries have seen gas and electricity bills soar Despite government hopes that manufacturing will lead the UK recovery, there are fears some energy-intensive industries may be forced to leave the UK as prices rocket.

Davin Bates is standing at the cool end of a tunnel kiln watching racks of cups and sugar bowls trundle out ready for glazing.

As we peer fifty feet in to the bright orange centre, he tells me that the internal temperature is well over 1000 degrees centigrade.

Then he breaks the bad news about his gas bill.

Davin is a management accountant at one of Stoke-on-Trent's remaining successful potteries, Steelite. It is a sprawling village of redbrick buildings employing 650 people which produces half a million pieces of crockery a week.

There are seven kilns in all. Keeping them fired up was costly enough last year.

But this year Davin has faced a 55% rise in the cost of gas. The firm's electricity bill has also gone up by 17%.

Tough decisions

"We find it difficult to pass on these costs to our customers," says Davin.

He says profits are therefore getting squeezed and the company's future plans are in jeopardy: "Investment will have to be looked at, because this is coming off the bottom line," he adds.

Across the whole sector, energy bills are driving managers to make tough decisions.

At the British Ceramic Confederation, Dr Laura Cohen has watched factory after factory close - and she identifies high energy costs as a major problem.

She knows that other companies have moved production overseas.

"We heard only a few weeks ago that one firm has transferred all of their manufacturing to China," she says. "Energy costs are a significant part of that."

It is a trend which is not confined to the long-troubled Potteries. Other parts of the country are hit too.

The huge chemical industry, which contributes ￡30m a day to the British economy, is also suffering.

At the family firm of Thomas Swan in County Durham, enormous sealed vats of chemicals are heated and stirred to make specialist powders and liquids for niche hair dyes, printing and cleaning products.

Managing director Harry Swan, a great-grandson of the founder, has steered the company through the recession and now finds himself hit by electricity and gas bills of almost ￡1m.

His plant uses 28,000 megawatt hours of energy a year. Even before the latest round of price rises, his extra energy costs this year were equivalent to a month's profit. He is dreading the next bill.

For the Chemical Industries Association, chief executive Steve Elliott fears British job losses could be imminent: "There will come a moment when people say enough is enough," he says.

"There will only be one direction of travel - out of the UK."

There could be worse to come.

Industries have been totting up the cost of government and European initiatives to promote a low-carbon economy, the so-called "green taxes", and some say their additional bill will run into the millions.

'Tipping point'

Cemex UK runs the biggest cement plant in the country, based on the outskirts of Rugby. It is not averse to the idea of a green economy. In recent years it has moved away from dependence on coal alone.

It now also burns chippings from old tyres and a fuel made from minced-up household waste. But the company is worried about the impact of coming green taxes.

Director Andy Spencer estimates that they will increase his annual energy costs by ￡12m.

What most concerns Cemex is that other countries will not impose similar new taxes on their cement producers. His prices would then struggle to compete on world markets.

So Andy Spencer's thoughts are already turning to the possibility of switching production out of the UK to Cemex plants abroad, particularly in Egypt.

"I can foresee a time when economically it makes more sense to do that and I don't think that time is far away," he says.

"We are very committed to the UK, but there is a genuine concern that we could reach that tipping point where the economics don't stack up to produce domestically in the UK."

This seems at odds with the government's goal of rebalancing the economy in favour of manufacturing industries. The Chancellor George Osborne has called for "a march of the makers".

Andy Spencer sees that march hitting a roadblock. "We know we need to make the transition to a green economy," he says.

"But it must not come at the price of exporting our domestic energy intensive industries."

No blank cheques

The Energy Secretary Chris Huhne says there is little the government can do about some energy price rises.

"How much of this is due to the fact that these businesses are very reliant on world market factors? We've had a 27% increase in the gas price on world markets over the year to August," he says.

"Now with the best will in the world, I can't do anything about that."

But he argues the government's reform of the electricity market will reduce prices for business and domestic consumers alike.

He is working on plans to announce special help for high-energy industries later this year, and says that in 2020 the net effect of the government's energy and climate change policies will be to reduce bills across the board.

But he is sceptical of some complaints on green taxes.

"I don't accept that some of the stories we are hearing about green taxes are correct. There are some ludicrously inflated and exaggerated claims," he says.

"I do not want to see even the most energy-intensive industries leave the UK, that would be madness.

"But am I writing blank cheques to anybody who says they've got a problem? No."

File on 4 is on BBC Radio 4 on Tuesday 4 October at 20:00 BST and Sunday 9 October at 17:00 BST. Listen again via the Radio 4 website or download the podcast.

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VIDEO: Qantas boss threatened over job cuts

2011-10-22T09:29:00.000-07:00

5 October 2011 Last updated at 15:18 GMT Help

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US factories 'see slight pick-up'

2011-10-22T05:29:00.000-07:00

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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Will NFC make the mobile wallet work?

2011-10-22T02:22:00.000-07:00

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Supergroup facing £9m profit hit

2011-10-21T22:53:00.000-07:00

5 October 2011 Last updated at 15:59 GMT Continue reading the main story Shares in clothing firm Supergroup have fallen by a quarter after it said problems at a distribution warehouse would hit profits by between ￡6m and ￡9m.

The company behind the Superdry brand said the problems had seen a "reduction both in the amount of stock and range of sizes reaching its UK stores".

The firm said the problems centred on an upgrade to its Gloucester warehouse.

Supergroup's shares ended the day 30% lower at ￡7.07.

In a management statement, the firm said it estimated "the total cost of this isolated event, including the additional temporary warehousing capability and resulting lost sales will impact the current year's profitability by between ￡6m and ￡9m".

Supergroup, which is based in Cheltenham, also said its stock levels would increase by ￡2m.

Analysts believe the problem will add to a range of difficult factors facing the firm, including the tough consumer climate, a weak August and the unseasonably warm September weather discouraging the purchase of autumn clothes.

In July, Supergroup said that profits for the year to May had jumped by 110% to ￡47.3m.

Supergroup floated its shares on the London Stock Exchange in March 2010, at a price of ￡5 per share.

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IMF warns on drastic budget cuts

2011-10-21T18:45:00.000-07:00

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

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

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

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

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

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

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

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

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

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

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

'Spreading malaise'

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

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

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

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

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Senate currency bill 'dangerous'

2011-10-21T14:59:00.000-07:00

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

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

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

Beijing said it "firmly opposed" the measure.

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

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

'Unfair trade practices'

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

Continue reading the main story Use the dropdown for easy-to-understand explanations of key financial terms:AAA-rating GO The best credit rating that can be given to a borrower's debts, indicating that the risk of borrowing defaulting is miniscule.And Mr Boehner said: "This is well beyond what Congress ought to be doing, and while I've got concerns about how the Chinese have dealt with their currency, I'm not sure this is the way to fix it."

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

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

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

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

Unhappy China

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

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

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

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

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

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

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Australia's trade surplus widens

2011-10-21T10:25:00.000-07:00

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

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

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

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

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

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

Asia factor Continue reading the main story

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

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

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

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

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

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

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

Monetary easing?

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

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

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

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

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

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

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VIDEO: Eurozone troubles worry Australia

2011-10-21T05:58:00.000-07:00

4 October 2011 Last updated at 01:21 GMT Help

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VIDEO: Business Lessons from Minnesota

2011-10-21T01:52:00.000-07:00

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Supermarket 'law shops' to open

2011-10-20T22:11:00.000-07:00

6 October 2011 Last updated at 00:43 GMT Under the plans consumers will be able to buy law services in supermarkets Banks and supermarkets are to be able to sell consumer legal services in England and Wales for the first time following a change in law.

The government says the new Legal Services Act will offer more choice and better value for the public.

It says it also means law firms will benefit from investment and allow them to explore new markets.

But critics have said it would undermine the quality of advice.

The government says the change would encourage economic growth in the industry and raise the profile of the UK as a first-class legal services market.

Justice Minister Jonathan Djanogly said it was a "landmark day" for the legal industry.

"Our legal services are already rated among the best in the world, used by millions of people around the globe as well as in the UK, and these changes will set them up to move to new heights. They will enable firms to set up multi-disciplinary practices and provide opportunities for growth," he said.

"Potential customers will find legal services become more accessible, more efficient and more competitive."

Legislation and regulation has restricted the management, ownership and financing of firms providing legal services for hundreds of years.

Currently, solicitors and barristers' chambers are owned by the lawyers themselves under partnerships.

Critics have dubbed the act "Tesco Law," and the move has come under attack from some lawyers, including a coalition of about 100 firms, when it was first announced in 2009.

They said it could wipe out good quality, local legal advice.

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BBC Wales workers' one-day strike

2011-10-20T17:22:00.000-07:00

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Russia bleeds cash as investors pull out

2011-10-20T13:20:00.000-07:00

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UK economic growth revised down

2011-10-20T09:04:00.000-07:00

5 October 2011 Last updated at 14:44 GMT Industrial output fell less than previously thought The UK economy grew by 0.1% between April and June, less than the 0.2% estimated previously.

Output from the service sector grew by 0.2% in the quarter, compared with the previous estimate of 0.5%, the Office for National Statistics (ONS) said.

Separate data suggested activity in the UK service sector grew in September.

The Treasury pointed to these figures as evidence the UK economy was still growing and said it would be sticking with its deficit reduction programme.

'Continued expansion'

The ONS also revised down growth in the first three months of the year, from 0.5% to 0.4%.

It added that household consumption fell by 0.8% in the second quarter.

Separately, a survey from Markit/CIPS found the UK's service sector purchasing managers' index (PMI) recorded a figure of 52.9 for September, up from 51.1 in August. A figure above 50 indicates growth.

Figures from the same company published earlier this week showed surprise growth in the manufacturing sector.

A Treasury spokesperson said: "While the UK cannot insulate itself from what is happening to our major trading partners, with financial turbulence in the eurozone and a weaker outlook for global growth, the economy is still growing and this week's survey data for the manufacturing and service sectors are consistent with continued expansion."

The government has been criticised in some quarters for concentrating too much on cutting the budget deficit at the expense of stimulating growth.

Continue reading the main story

So if households do what Mr Cameron wants, and continue to pay back their debts, it is very difficult to see how the economy can grow at much more than 1% or so per year for many years to come”

End Quote Robert Peston Business editor, BBC News On Wednesday, the International Monetary Fund (IMF) said that Europe's stronger economies should avoid imposing drastic budget cuts at the expense of growth.

If economic conditions deteriorate in the UK, Germany or France, governments should "consider delaying" cuts, particularly as they can borrow at low interest rates, the IMF said.

However, the Treasury reiterated that it did not intend to hold back on its spending cuts.

"The government will stick to the deficit reduction plan which has won the UK credibility and stability, but the most important thing for the economy now is restoring confidence, which will depend on the eurozone decisively dealing with its problems."

Further stimulus

The latest GDP revision is likely to raise further questions about the strength of the UK's fragile economic recovery.

In an interview with the Reuters news agency, the head of the British Retail Consortium, Stephen Robertson, said: "The next six months are going to be characterised by very low levels of growth. I think we've probably got another 18 months of real challenge."

Underlying costs for businesses will continue to rise, with the retail sector finding life "extremely difficult", he added.

On Wednesday, supermarket giant Tesco reported a fall in like-for-like sales excluding petrol and VAT of 0.5% for the first half of the year, while retailer Mothercare said like-for-like sales between July and September fell by almost 10%, triggering a 36% slump in its share price.

Also on Wednesday, airline Flybe saw a similar fall in its share price after reporting a "significant slowdown in sales" across its UK domestic network in September.

There has been speculation that the Bank of England will restart its quantitative easing (QE) programme, whereby it pumps money into the economy to boost demand.

At its meeting last the month, most members of the Bank's Monetary Policy Committee (MPC) agreed the case for an "immediate" stimulus had strengthened.

Some analysts said the encouraging PMI data could mean a delay in restarting QE, but most agreed further stimulus would be introduced this month or next.

The MPC's next meeting begins on Wednesday, with an announcement on interest rates and QE due at midday on Thursday.

"The bigger picture, including the risks to the economy from the eurozone debt crisis, far outweigh the services PMI survey and our view remains that the MPC will probably sanction further asset purchases tomorrow," said Philip Shaw at Investec.

Brian Hilliard at Societe Generale said the continuing debt crisis "should trigger a move [for QE] this week. I give about a 60% chance to that; if not, it's an absolute racing certainty for November".

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VIDEO: Mid-East unrest over cheap housing

2011-10-20T05:52:00.000-07:00

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Kodak denies any bankruptcy plans

2011-10-20T01:05:00.000-07:00

2 October 2011 Last updated at 10:09 GMT Kodak is one of the best-known and most iconic brands in photography Eastman Kodak has said it has "no intention of filing for bankruptcy".

The struggling US camera and printing group's comments came after it confirmed it had hired a law firm well-known for handling bankruptcy protection cases, Jones Day.

Kodak said it was "not unusual for a company in transformation to explore all options".

Shares in the firm fell 54% on Friday as fears persist about its future. It has not made a profit since 2007.

Kodak, synonymous with film photography for more than 100 years, has struggled to adapt to the digital age.

Last week it announced plans to borrow $160m (￡103m) for "general corporate purposes".

Kodak is now continuing to explore a sale of its digital imaging patents, worth an estimated $2bn.

Mark Kaufman, an analyst at Rafferty Capital Markets, said: "I don't believe bankruptcy is inevitable.

"This is a pretty valuable portfolio, they should get a good price.

"They need to get this [sale] out of the way. They need to sell this portfolio, raise some type of cash."

The company currently has a market value of $210m. This compares with $31bn at its height in February 1997.

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