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Abramovich 'intimidated' oligarch

2011-10-22T23:40:00.000-07:00

3 October 2011 Last updated at 13:34 GMT Roman Abramovich is worth an estimated ￡10.3bn Roman Abramovich intimidated a fellow Russian oligarch into selling him shares in an oil company at a large discount, the High Court has heard.

Boris Berezovsky made the claims about the Chelsea football club owner with regards to Russian oil firm Sibneft.

He alleges breach of trust and breach of contract and is claiming more than ￡3.2bn in damages.

Mr Abramovich, who is worth an estimated ￡10.3bn, has denied the claims by his former business partner.

The Chelsea Football Club owner sold Sibneft to Russia's state-owned gas monopoly Gazprom in a multibillion-dollar deal in 2005.

Both men attended the first day of the trial, which is expected to last for more than two months.

They sat at either end of the packed courtroom.

Laurence Rabinowitz QC, who represents Mr Berezovsky, told Mrs Justice Gloster both men had worked together to acquire Sibneft and became friends.

He said the pair remained friends until Mr Berezovsky "fell out with those in power in the Kremlin and was forced to leave his home and create a new life abroad".

Mr Berezovsky is now exiled to the UK.

The barrister said his client had been "betrayed" after falling out with Russian political leaders and leaving Russia in 2000.

'Threats'

"It is our case that Mr Abramovich at that point demonstrated that he was a man to whom wealth and influence mattered more than friendship and loyalty and this has led him, finally, to go so far as to even deny that he and Mr Berezovsky were actually ever friends," he said.

Mr Rabinowitz went on: "Mr Berezovsky's case in relation to Sibneft is that Mr Abramovich intimidated him into selling his very substantial interest in Sibneft to Mr Abramovich himself at a very substantial under value and that he did so in effect by making threats.

"The threats being... that unless Mr Berezovsky... sold those interests to him, he, Mr Abramovich, would take steps with a view to the interest being effectively removed from them by those in the Kremlin, led by President Putin, who had come to regard Mr Berezovsky as his enemy."

The barrister claimed that Mr Abramovich had also threatened to "take steps with a view to preventing" the release from prison of a close friend of Mr Berezovsky.

Mr Rabinowitz said his client contended that as a result of "this intimidation", he was pressured into selling his Sibneft interest to Mr Abramovich for "very substantially less" than it was worth.

The case continues.

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US services sector 'sheds jobs'

2011-10-22T19:22:00.000-07:00

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Fears surface over Chinese debt

2011-10-22T15:31:00.000-07:00

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Tesco profits grow but UK subdued

2011-10-22T12:13:00.000-07:00

5 October 2011 Last updated at 11:32 GMT Chief Executive Philip Clarke says Tesco is "investing strongly at home and overseas"

Supermarket group Tesco has reported a rise in half-year profits despite a fall in underlying sales in the UK.

Pre-tax profit for the 26 weeks to 27 August was ￡1.9bn, up 12.1% on a year earlier. Group sales rose 8.8% to ￡35.5bn, but like-for-like UK sales excluding VAT and petrol fell 0.5%.

The company highlighted "excellent growth" in Europe and Asia but also "subdued demand" in the UK.

Rival Sainsbury's reported slightly better like-for-like sales.

Excluding petrol but not VAT, Sainsbury's sales rose by 1.9% for the first six months of the financial year. The equivalent figure at Tesco was a rise of 0.5%.

Sainsbury's chief executive Justin King said: "We have delivered a good sales performance in a tough consumer environment."

Despite Sainsbury's stronger sales, analysts said Tesco was in a better position to outperform long term.

"Sainsbury's may have pipped Tesco at the post in terms of growing UK sales, but for overall prospects Tesco remains the darling of the sector," said Richard Hunter at Hargreaves Lansdown.

'Weak' sales

Tesco contrasted the "challenging conditions" in developed countries, particularly the UK and the Irish Republic, with "continued strong growth in emerging economies".

Continue reading the main story The company said "weak" sales in the UK were not helped by slowing demand for non-food items, particularly in electronics and entertainment, two of its largest product groups.

It also highlighted the high price of petrol and its impact on general consumer spending.

Despite the fall in like-for-like sales, trading profits in the UK rose by 4.5% to ￡1.3bn.

Tesco makes about two-thirds of its sales and profits in the UK.

In an interview with Reuters news agency, the head of the British Retail Consortium, Stephen Robertson, said retailers were "finding life extremely difficult".

He said underlying costs were increasing and margins were being squeezed.

"I think we've probably got another 18 months of real challenge," he said.

Outside the UK, Tesco has seen an improvement in sales.

In the US, like-for-like sales excluding petrol grew by almost 12%. The company said its plan to break even in the country in the 2012-13 financial year was "showing promising early results".

Like-for-like sales in Europe grew by 1% and in Asia by 3.8%.

Price cuts

Tesco has been reducing prices on about 3,000 items in the UK in an attempt to attract new customers, but analysts said that it was recovering this money elsewhere.

Having increased the number of points rewarded for every pound spent on its loyalty card scheme, the company was now reducing it again, Rahul Sharma at Neve Capital told the BBC.

"As part if its new price campaign, they're cutting the discount [from loyalty cards] from about 2% to 1%," he said.

"They are cutting prices by ￡500m, which roughly works out at 1%-1.5%, but then they're taking this back [by cutting the points available through loyalty cards]."

Tesco chief executive Philip Clarke told the BBC that reducing the number of points given out on loyalty cards had given the company an extra ￡350m to help reduce prices.

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Chelsea make stadium shares bid

2011-10-22T07:36:00.000-07:00

Chelsea played their first home game at Stamford Bridge back in 1905 Chelsea are a step closer to building a new stadium after making a bid to buy back parts of Stamford Bridge.

The club is still to decide whether to move, but cannot do so unless it regains ownership of the stadium's pitch and stands.

They are owned by Chelsea Pitch Owners - formed in 1993 to prevent the ground being bought by property developers.

"That threat has now gone under (Roman) Abramovich's ownership," insisted Blues chairman Bruce Buck.

Buck and chief executive Ron Gourlay have appealed to the 12,000 shareholders, who are mostly fans, to sell their 15,000 shares to the club for the price they paid in return for various incentives at any new stadium.

Each share cost ￡100 and Chelsea are hopeful they would not be held to ransom, insisting there was no room for negotiation.

Buck said shareholders were getting back far more than the land was worth when the 199-year lease on Stamford Bridge was taken into account.

He said: "Bear in mind that no-one bought these shares as a financial investment.

"Everyone bought these shares as a way of helping the club and they also bought them as mementoes and souvenirs.

"We think we're paying well over the odds."

The incentives for selling include a guarantee that Chelsea would only relocate within a three-mile radius of Stamford Bridge if the club did decide to move before 2020.

A decision on the bid is expected at a Chelsea Pitch Owners' general meeting on 27 October.

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VIDEO: 'Be curious and ask questions'

2011-10-22T04:21:00.000-07:00

29 September 2011 Last updated at 14:13 GMT Help

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Pension talks yield 'no progress'

2011-10-21T23:31:00.000-07:00

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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Obama lays down gauntlet on jobs

2011-10-21T20:27:00.000-07:00

6 October 2011 Last updated at 17:50 GMT Obama: "People really need help right now, the economy really needs a jolt right now. This is not a game."

US President Barack Obama has said his jobs act would insure the American economy against another downturn, even while the situation in Europe worsens.

He told reporters at the White House that lawmakers should think "long and hard about what's at stake" before the bill goes to the Senate next week.

Mr Obama has been touring the US in recent weeks to promote his $447bn (￡290bn) American Jobs Act.

Republicans reject a proposed tax rise on wealthier people to pay for it.

Mr Obama told Thursday's news conference he would support a new approach by Senate Democrats to pay for the act with a tax on millionaires, rather than his plan to raise taxes on couples making more than $250,000.

'Not a game'

A tough-talking Mr Obama warned that if Congress failed to act, "the American people will run them out of town".

Continue reading the main story

If the goal is to create jobs, then why are we even talking about tax hikes?”

End Quote Mitch McConnell Republican Senate leader "This is not a game," he warned lawmakers.

Mr Obama cited independent experts as having told him that the act could spur 2% in economic growth and create up to 1.9m jobs.

"Any senator out there who's thinking about voting against this jobs bill when it comes up for a vote needs to explain exactly why they would oppose something we know would improve our economic situation at such an urgent time," he said.

Touting the bill as an "insurance policy" against a new recession, the president said Europe's debt crisis was the biggest threat to the US economy, which he said "really needs a jolt right now".

Mr Obama challenged Republicans on their opposition to a plan that he said would create jobs and rebuild US highways, bridges and schools.

But such new stimulus spending is one reason why Republicans have rejected much of the jobs initiative, together with the proposals for tax increases on wealthier people and small businesses.

Long queues at jobs fairs, like this one in Washington state, have become a common sight

Republicans in the House of Representatives have passed a number of bills as part of their own job-creation agenda.

Their legislation has included proposals to loosen pollution regulations and make it easier to drill for oil and gas. But none of the measures has been taken up for a vote by the Democratic-controlled Senate.

On Thursday, Mr Obama defended his decision to criticise Republicans, sometimes by name.

"I think it's fair to say that I have gone out of my way in every instance - sometimes at my own political peril and to the frustration of Democrats - to work with Republicans to find common ground to move this country forward," he said.

He added: "Each time, what we've seen is games-playing, a preference to try to score political points rather than actually get something done on the part of the other side."

But the president's speech on Thursday did little to impress Capitol Hill Republicans.

"If the goal is to create jobs, then why are we even talking about tax hikes?" Republican Senate Minority leader Mitch McConnell said on Thursday.

House Speaker John Boehner, meanwhile, said Mr Obama had "given up on the country" to focus on his re-election.

US unemployment remains jammed at 9.1%, and analysts expect data on Friday to show only modest job growth.

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VIDEO: Will China help at-risk Italy?

2011-10-21T16:12:00.000-07:00

5 October 2011 Last updated at 00:32 GMT Help

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VIDEO: Check, check and check again

2011-10-21T11:48:00.000-07:00

29 September 2011 Last updated at 14:12 GMT Help

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VIDEO: Greek protester: 'Measures hurt poor'

2011-10-21T08:39:00.000-07:00

5 October 2011 Last updated at 16:27 GMT Help

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Shell Singapore fire 'contained'

2011-10-21T04:28:00.000-07:00

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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Credit agencies 'have failures'

2011-10-21T00:32:00.000-07:00

30 September 2011 Last updated at 17:10 GMT The report details a number of failures at the credit rating agencies The Securities and Exchange Commission (SEC) has discovered "apparent failures" at 10 credit rating agencies.

It said it was concerned that the agencies - including Standard & Poor's (S&P) and Moody's - were not making timely and accurate disclosures or managing conflicts of interest.

The SEC said it expected the agencies to "address the concerns".

Credit rating agencies have been criticised for their role in the financial crisis that started in 2007.

This is because a root cause of the crisis was the bad US mortgage debt that was resold around the world, debt that was given top credit ratings by the agencies.

The agencies were accused of having conflicts of interest, because they were paid by the banks that sold the debt.

'Monitoring progress'

The three largest credit rating agencies are S&P, Moody's and Fitch.

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 SEC did not directly link specific failings to specific agencies, but it said that two of the big three did not have specific policies in place to manage conflicts of interest where they rated financial products issued by banks in which the agencies were large shareholders.

The SEC said that one of the three largest agencies was not correctly following rating methodologies.

It said the agency in question was slow to discover, disclose and fix the methodology errors, and may have let business interests influence its mistakes.

It added that its findings did not constitute a "material regulatory deficiency" at the SEC.

"We expect the credit rating agencies to address the concerns we have raised in a timely and effective way, and we will be monitoring their progress as part of our ongoing annual examinations," said Norm Champ, deputy director at the SEC's Office of Compliance, Inspections and Examinations.

US downgrade

The SEC was given more powers to regulate credit rating agencies in the Dodd-Frank Wall Street Reform and Consumer Protection Act, which was passed in July of last year.

The other credit rating agencies covered in the SEC's annual report are AM Best, DBRS, Egan-Jones, Japan Credit, Kroll Bond, Morningstar, and Rating and Investment Information.

S&P downgraded the US's credit rating in August by one notch from AAA to AA+.

Explaining the move, it said the government was not doing enough to reduce the country's budget deficit.

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Supermarket 'law shops' to open

2011-10-20T21:22:00.000-07:00

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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Hong Kong maid wins landmark case

2011-10-20T17:33:00.000-07:00

30 September 2011 Last updated at 11:32 GMT By Katie Hunt Business reporter, BBC News Evangeline Banao Vallejos' lawyer, Mark Daly: "It's a good win for the rule of law"

Hong Kong's High Court has ruled that a domestic helper from the Philippines should be allowed to apply for permanent residency in the city.

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

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

The government has said that it will appeal against the ruling.

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

Mark Daly, the lawyer acting on behalf of Ms Vallejos, said that she was very pleased by the ruling.

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

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

Hong Kong's Secretary for Security, Ambrose Lee, said that the government would not process or approve right-of-abode applications for domestic workers while it appealed against the ruling.

"The government respects but is disappointed with the ruling," he said.

Public resources

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

Continue reading the main story

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

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

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

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

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

Equal treatment

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

The case has divided opinion in Hong Kong

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

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

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

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

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

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

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

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Thai rice policy draws criticism

2011-10-20T13:09:00.000-07:00

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UK economic growth revised down

2011-10-20T09:21:00.000-07:00

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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Shares up on eurozone bank plan

2011-10-20T04:46:00.000-07:00

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

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

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

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

German support

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

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

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

Continue reading the main story

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

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

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

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

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

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

Banks rise

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

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

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

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

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

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

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

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

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World pays tribute to Steve Jobs

2011-10-20T00:30:00.000-07:00

6 October 2011 Last updated at 03:12 GMT Consumers paid tribute to ''a man of great perspective''

Apple's corporate statement announcing the death of 56-year old co-founder Steve Jobs was brief: "We are deeply saddened to announce that Steve Jobs passed away today.

"Steve's brilliance, passion and energy were the source of countless innovations that enrich and improve all of our lives. The world is immeasurably better because of Steve."

Many technology experts, industry peers and other admirers have been quick to add their own tributes.

"Steve was among the greatest of American innovators - brave enough to think differently, bold enough to believe he could change the world, and talented enough to do it.

"By building one of the planet's most successful companies from his garage, he exemplified the spirit of American ingenuity.

"By making computers personal and putting the internet in our pockets, he made the information revolution not only accessible, but intuitive and fun.

"The world has lost a visionary. And 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."

"Apple has lost a visionary and creative genius, and the world has lost an amazing human being.

"Those of us who have been fortunate enough to know and work with Steve have lost a dear friend and an inspiring mentor.

"Steve leaves behind a company that only he could have built, and his spirit will forever be the foundation of Apple."

"For those of us lucky enough to get to work with him, it's been an insanely great honour. I will miss Steve immensely.

"Steve and I first met nearly 30 years ago, and have been colleagues, competitors and friends over the course of more than half our lives."

"All of us would be touched every day by products that he was the creative genius behind, so this is very sad news and my condolences go to his family and friends."

"Tonight, America lost a genius who will be remembered with Edison and Einstein, and whose ideas will shape the world for generations to come.

"Again and again over the last four decades, Steve Jobs saw the future and brought it to life long before most people could even see the horizon.

"In New York City's government, everyone from street construction inspectors to NYPD detectives have harnessed Apple's products to do their jobs more efficiently and intuitively."

Steve Jobs: "The last of the great technology hardware entrepreneurs from the days when you could start up a business in your friends' garage"

"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 legacy will extend far beyond the products he created or the businesses he built. It will be the millions of people he inspired, the lives he changed, and the culture he defined.

"Steve was such an 'original,' with a thoroughly creative, imaginative mind that defined an era. Despite all he accomplished, it feels like he was just getting started."

"He always seemed to be able to say in very few words what you actually should have been thinking before you thought it."

"VISIONARIES are always called CRAZY in the beginning. A VISIONARY sees things that everybody else says is IMPOSSIBLE, sees a World that People can't invision (sic) - MAC, IPOD, IPAD, IPHONE, ITUNES and PIXAR. I have nothing but Love for Mr. Jobs and Apple, they have always given me and my films L-O-V-E."

"'Remembering that you are going to die is the best way I know to avoid the trap of thinking you have something to lose', as Steve Jobs said in 2005."

"Steve lived the California Dream every day of his life and he changed the world and inspired all of us."

"Thank you for revolutionizing the way we listen to music. Your vision will not be forgotten."

"Steve Jobs was the last of the great technology hardware entrepreneurs from the days when you could start up a business in your friends' garage.

More importantly he personally envisaged the smartphone which put the power of a computer in your pocket, forever freeing us from our work desks and old style punch key mobile phones and with the iPad he moved us into the Star Trek era."

Industry colleagues and rivals flocked to pay their compliments for and respect to Steve Jobs, including the founder of Twitter, Dick Costolo, AOL's founder, Steve Case, the chief executive of Time Warner, Jeff Bewkes, the chief executive of Dell, Michael Dell and the chairman of the New York Times, Arthur Sulzberger.

Other tributes (via Twitter) included praise for the way Steve Jobs changed the technological landscape:

"Thank you, Steve Jobs, for making technology a delight to use, instead of a necessary evil."

"The world pauses their iPods and rushes to their MacBooks and iPhones to confirm the news."

"3 Apples changed the World, 1st one seduced Eve, 2nd fell on Newton and the 3rd was offered to the World half bitten by Steve Jobs."

Apple fans were invited to share their thoughts, memories and condolences by sending messages to rememberingsteve@apple.com.

And social networking groups were calling for iPhone vigils in public parks across the United States.

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Lecturers' pension action resumes

2011-10-19T21:03:00.000-07:00

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VIDEO: Build up a cash cushion, says Alvin Hall

2011-10-19T16:13:00.000-07:00

30 September 2011 Last updated at 10:22 GMT Help

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Crisis at S Korean savings banks

2011-10-19T11:21:00.000-07:00

3 October 2011 Last updated at 16:02 GMT By Lucy Williamson BBC News, Seoul Who's to blame for bad financial shape of South Korea's savings banks? About lunchtime during the last bright days of the Korean summer, Jeong Gu-haeng, the president of one of South Korea's biggest savings banks, jumped from his sixth floor office window, killing himself.

As he jumped, prosecutors were inside the building, seizing documents from the bank's headquarters.

They were investigating whether his Jeil 2 Savings Bank had mishandled loans given out to creditors.

The death of the bank's president - splashed over the front pages of newspapers here - refocused attention on a widening crisis among the country's savings banks.

Jeil 2 was one of seven banks to be suspended last month after financial regulators found that they all had too little capital stored against risky loans.

They have been given 45 days to correct the situation or face being sold.

It was the second round of suspensions to hit Korea's savings banks.

Nine others were suspended earlier this year, and several others have narrowly avoided it.

The current investigation - into seven of the suspended banks - is looking at whether major stakeholders and chief executives misused the company's capital to finance personal projects or those of their close contacts.

But the question of why so many of Korea's savings banks were in such bad financial shape to begin with, goes much deeper.

Risky loans

A large part of the answer lies in the forest of concrete on the outskirts of Seoul's city centre.

Kilometre after kilometre of grey-beige tower blocks, rising high into the sky, have been built to house the capital's burgeoning workforce.

Continue reading the main story Jeil Savings BankJeil 2 Savings BankTomato Savings BankPrime Mutual Savings BankAce Mutual Savings BankDae Yeong Mutual Savings Bank Parangsae Mutual Savings Bank Until recently, real estate was a good investment here.

Prices were rising, people kept buying, and construction firms were keen to keep building.

But after the global financial crisis three years ago, demand began to fall - and with it, prices. And that left builders, and their backers, exposed.

Dr Jeong Dae hee, an associate fellow at the Korean Development Institute, says that savings banks were on the front line of the downturn in the construction industry, because they provide many of the bridging loans which get projects started, often before there are any real assets.

When builders start a construction project, he says: "They often don't have the money to do it, so they go to savings banks and ask for loans.

"But they actually don't have the land or even permission to build the apartments..

"So they make some plans, and the savings banks look at the plans, and if the plans aren't too weird, they give them the money."

As the loans became riskier, he says, the banks' interest rates got higher - meaning that when demand began to fall it was harder than ever for builders to honour their debts.

Blame game

Financial officials agree that the banks' credit practices have been too loose. And that discovery has led the finger of blame to swing in the direction of the country's financial regulators.

Dr Jeong believes that Korea's main financial enforcement agency, the Financial Supervisory Service, or FSS (which takes its cue from the Financial Services Commission, or FSC), was unable to act strictly enough in its regular audits because it was under political pressure not to scare the market.

Savings banks were on the front line of the downturn in the construction industry

And also, he says, because many of the banks' senior employees were former FSS officials.

Allegations that the relationship between financial regulators and the savings banks was too cosy are widely accepted - even by regulators themselves.

One financial official, speaking on condition of anonymity, says: "The FSS has been parachuting in their retirees as auditors of the savings banks, so their juniors [who were still working in the FSS] couldn't go through a very rigorous audit."

In Korea, the sense of professional hierarchy and respect for those in senior positions is acute.

Confronting your boss is almost unheard of.

To inspect a bank which now employs a former senior colleague as auditor would put many Koreans in a difficult position.

"To some extent, we accept it," the official says.

But he also believes that the banks' "lack of risk management skills and business scope" was more to blame.

Wider impact?

But if the proper regulation and good business practices were lacking in Korea's savings banks, what about the rest of its financial industry? And what about the impact of the suspensions on the wider economy?

Dr Jeong says commercial banks are unlikely to face the same problems, because they have different financing to savings banks, and have many more assets.

Savings banks act as a kind of safety net for commercial banks, he says.

They are the first stage in the financing process, and so weed out the worst performers.

Continue reading the main story

If the problem of the savings banks is just non-performing loans, then it's going to be much easier to fix this.”

End Quote Dr Jeong Dae hee Korean Development Institute And Choo Kyungho, the vice-chairman of Korea's policy regulator, the Financial Services Commission, says there's little to worry about financially.

"There are two sides to this," he says.

"From the political-social standpoint, it's a big issue with many concerns. From a purely financial point of view, this issue is very small.

"The total assets of savings banks are less than 3% of the total financial market, so there's no chance this can escalate."

Dr Jeong agrees there's little chance of the savings banks affecting the wider economy. And the risk is made even smaller by an insurance fund that he believes will more than cover any losses.

But politically it has been tricky, even so.

The public have been shocked to learn of the 16 suspensions.

And with national elections due here next year, politicians have been queuing up to demand reform.

Mr Choo says it's not expecting any more suspensions this year, and the FSC has already put forward its proposals to improve the system - though some accuse it, and its enforcer the FSS, of refusing reform themselves.

As Dr Jeong points out, the real problems in this case aren't bad loans at all - but the trickier issues of possible illegality and lack of regulation.

"If the problem of the savings banks is just non-performing loans," he says, "then it's going to be much easier to fix this."

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UBS to take 'disciplinary action'

2011-10-19T08:16:00.000-07:00

5 October 2011 Last updated at 17:28 GMT UBS is considering shrinking down its investment bank, where the alleged incident took place UBS has said it is preparing to take "disciplinary action" against individuals deemed responsible for an alleged rogue trading incident.

It comes as the joint heads of the Swiss bank's equities division, in which the incident took place, quit.

Francois Gouws and Yassine Bouhara took "responsibility for the effective management of the equities business".

Equities trader Kweku Adoboli was last month arrested for allegedly losing $2.3bn (￡1.5bn) in unauthorised trades.

The two UBS executives to fall on their swords over the incident only took up their posts last year, with Mr Bouhara having been poached from rival Deutsche Bank.

Their exit follows the departure of UBS chief executive, Oswald Gruebel, last week.

They will be replaced by Mike Stewart, who was recruited from another rival firm, Bank of America Merrill Lynch, in July.

"In addition, appropriate disciplinary action will be taken against other individuals in the equities business as a result of the incident," said the bank.

"UBS also expects to take disciplinary action against responsible staff in other functions."

UBS is also considering shrinking down its investment banking business - of which equities trading is a key part - in order to refocus it on purely serving the needs of its enormous network of wealthy individual clients.

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UBS set to make 'modest profit'

2011-10-19T05:03:00.000-07:00

4 October 2011 Last updated at 07:13 GMT Oswald Gruebel UBS's former chief executive resigned over the rogue-trading loss. Swiss bank UBS said it will make a small profit in the third quarter despite losing $2.3bn (￡1.5bn) through unauthorised trading.

When it first discovered the alleged fraud, it warned it might report a loss for the three months to the end of September.

But the bank has said in a statement: "UBS expects to report a modest net profit for the group."

Former UBS trader Kweku Adoboli is accused of fraud and false accounting.

The 31-year-old City of London-based trader was remanded in custody until 20 October.

The bank said it now expected a small profit even after taking into account losses from the incident, as well as 400m francs ($435m, ￡270m) worth of restructuring charges linked to its cost-cutting programme.

But the bank said that its strength buffer - the so-called Tier 1 capital ratio - was expected to be slightly down on the second quarter because of the losses due to the trade.

The former chief executive of Swiss bank UBS Oswald Gruebel resigned over the rogue-trading loss.

The bank is also undergoing a major shake-up which will see it shrink its investment banking division to reduce its risks.

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Wasps owner decides to sell club

2011-10-19T00:26:00.000-07:00

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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