wo43

India unveils $35 tablet computer

2011-11-01T14:45:00.000-07:00

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

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

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

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

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

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

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

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

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

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

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

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

Usability questions

Mr Sibal says the device will enhance learning in India.

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

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

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

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

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

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

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

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

View the original article here

Wall Street protesters released

2011-11-01T10:24:00.000-07:00

AppId is over the quota
AppId is over the quota
2 October 2011 Last updated at 15:57 GMT Protester Michael Pellagatti holds up the plastic handcuffs used to restrain him and the court summons he was issued Police in New York City have freed most of the more than 700 people arrested on Brooklyn Bridge on Saturday during a protest against corporate greed.

Fewer than 20 protesters are still held as they are yet to be identified.

Most of those freed were given citations for disorderly conduct and a criminal court summons.

The Occupy Wall Street group, camped in Manhattan's financial district for two weeks, says it will continue its demonstrations.

A spokesman for the New York Police Department told the BBC the small group still detained were expected to appear at the Manhattan criminal court on Sunday.

'Multiple warnings'

The arrests took place on Saturday after protesters carried out an impromptu walk over the East River to Brooklyn.

Some demonstrators carried slogans reading "End the Fed" and "Pepper spray Goldman Sachs".

Police said the protesters were given "multiple warnings" to keep to the pedestrian walkway but spread to the road, halting bridge traffic for several hours.

Some protesters accused the police of not issuing warnings or of tricking them on to the roadway, accusations the police denied.

Demonstrator Henry-James Ferry: "'The police moved in with orange mesh barricade". Saturday footage courtesy Robert Cammiso

Occupy Wall Street says it will continue its campaign, with meetings on Sunday in Zuccotti Park, the privately owned area of land not far from Wall Street that it has occupied since 17 September.

There will be another march on Wall Street on Wednesday afternoon.

"We are the majority. We are the 99%. And we will no longer be silent," the group said in a statement.

"We are using the revolutionary Arab Spring tactic to achieve our ends and encourage the use of non-violence to maximise the safety of all participants."

The protesters have had previous run-ins with New York's police.

On Friday, about 2,000 people marched under the Occupy Wall Street banner to New York's police headquarters to protest against arrests and police behaviour.

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.

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

Send your pictures and videos to yourpics@bbc.co.uk or text them to 61124 (UK) or +44 7624 800 100 (International). If you have a large file you can upload here.

Read the terms and conditions

View the original article here

Knowledge economy: Global best school buildings

2011-11-01T06:55:00.000-07:00

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

Photos from around the world on 4 October

Court overturns convictions of Knox and Sollecito

Attack in the Somali capital, Mogadishu

Hundreds camp out in New York's financial district

Libyan transitional authority troops ceasefire

Anti-Wall Street protest march

Nalgae makes landfall in Philippines

A selection of pictures from this week's news

Anti-Gaddafi fighters capture Sirte airport

Photos from around the world on 29 Sept

View the original article here

Video: sugar Lord remember Steve jobs

2011-11-01T02:14:00.000-07:00

Help 6 October 2011, last updated-20: 00 GMT

View the original article here

Eurozone delays Greek loan choice

2011-10-31T21:34:00.000-07:00

AppId is over the quota
AppId is over the quota
4 October 2011 Last updated at 00:06 GMT Continue reading the main story Last Updated at 05:00 GMT

Market indexCurrent valueTrendVariation% variationEurozone finance ministers have delayed a decision on giving Greece the next instalment of bailout cash.

It came after Greece said it would not meet this year's deficit cutting target, sparking a sharp sell-off in stock markets.

However Eurogroup chairman Jean-Claude Juncker said Greece would not be allowed to default on its debts.

The next 8bn-euro (￡6.9bn; $10.9bn) tranche of cash needs to be released by mid-November.

The finance ministers, meeting in Luxembourg, also appeared to have reached a deal to let Finland receive collateral as security for its contribution towards the eurozone bailout fund - the European Financial Stability Fund.

The Finns had threatened to block further bailouts to Greece unless it received this special arrangement.

'No default'

Athens announced that the 2011 deficit was projected to be 8.5% of GDP, down from 10.5% in 2010 but short of the 7.6% target set by the EU and IMF.

The government, which on Sunday adopted its 2012 draft austerity budget, blamed the shortfall on deepening recession.

Continue reading the main story

Equity and debt markets haven't imploded today, but my goodness bankers are feeling jumpy.”

End Quote Robert Peston Business editor, BBC News Inspectors from the International Monetary Fund (IMF), European Union (EU) and European Central Bank are currently in Athens to examine Greece's financial position.

A further eurozone meeting on 13 October will make a decision on whether additional steps by Greece to balance its budget are sufficient.

That would then lead to a "definite and final decision in the course of October", according to Eurogroup chairman Jean-Claude Juncker.

Mr Juncker also ruled out the possibility of a debt default by Greece - denying rumours that some countries, including Germany, had been pushing for this.

However, without the further bailout money, Greece may have little choice but to stop repaying its debts - something that would put severe pressure on the eurozone, damage European bank finances and possibly have a serious knock-on effect on the world economy.

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.Meanwhile, emergency talks over the future of Franco-Belgian bank Dexia added to market fears that a Greek default could spark a banking crisis.

The bank's board called an emergency meeting late on Monday as rating agency Moody's announced it was reviewing the bank's credit rating for a downgrade because of its exposure to Greek debt.

After the meeting, the bank said it would 'resolve the structural problems' that are exacerbating concerns over how it will deal with any type of default by Greece.

The Belgian finance minister Didier Reynders said Belgium and France would 'step in if necessary' to support Dexia.

Bank stocks

The UK's FTSE 100 lost 1% by the close of trading on Monday, French shares fell 1.9%, and German stocks shed 2.3%.

The sell-off continued into New York trading hours, with the Dow Jones Industrial Average ending the day 2.4% lower.

US markets are now right at the bottom of the 10% range within which they have swung violently up and down for the last two months.

Banking stocks were also among the biggest fallers on both sides of the Atlantic.

Continue reading the main story

Until we get a bigger and better package coming through [from eurozone leaders] trading will remain volatile”

End Quote Alec Letchfield HSBC Asset Management In Europe, Dexia initially fell as much as 14%, but recovered to be only 10.1% down by the close of European trading, while France's Societe Generale was down 5.2%, and Germany's Commerzbank fell 7.3%.

In the US, the banks seen as most at risk from a renewed global financial crisis fell sharply, with Citigroup down 9.8%, Bank of America 9.6% and Morgan Stanley 7.7%.

Industrial stocks - which are most exposed to any renewed economic downturn - were also among the worst hit.

Analyst Alec Letchfield, chief investment officer at HSBC Asset Management, said markets would remain turbulent until eurozone leaders tackled the debt problem.

"Until we get a bigger and better package coming through trading will remain volatile," he said.

In the currency markets, the euro fell sharply, down 1.4% against the dollar in late trading, and dropping 2% to a decade low of 101 yen against the safe-haven Japanese currency.

'Unanimously approved'

The Greek finance ministry said on Sunday that its unpopular austerity measures would have to be adhered to.

It said: "Three critical months remain to finish 2011, and the final estimate of 8.5% of GDP deficit can be achieved if the state mechanism and citizens respond accordingly."

Continue reading the main story 3 Oct: Original deadline for Greece to receive next 8bn-euro tranche of bailout funds;Next few days: Troika decides whether to recommend that Greece gets the next tranche;9 Oct: Leaders of Germany and France to hold talks;13 Oct: European authorities due to decide whether to release bailout money to Greece;14-15 Oct: G20 finance ministers meet in Paris;17 Oct: Slovakia votes on whether to expand the European Financial Stability Facility. Members of the coalition government have vowed to block expansion;17-18 Oct: European Union summit in Brussels;End of Oct: Greece to get next bailout money - assuming no more hurdles;3-4 Nov: G20 summit in Cannes, France. World leaders, including Barack Obama, want evidence that Europe have got control of debt crisis.It released figures for 2012's projected deficit, putting it at 6.8% of GDP, also short of the 6.5% target.

The data came as the government met to approve Greece's draft budget for next year.

It blamed an economic contraction this year of 5.5% - rather than May's 3.8% estimate - for the failure to meet deficit targets.

The cabinet meeting also approved a measure to put 30,000 civil service staff on "labour reserve" by the end of the year.

This places them on partial pay with possible dismissal after a year.

"The labour reserve measure was approved unanimously," one deputy minister told Reuters.

This measure, along with other wage cuts and tax rises, have been part of a package intended to persuade the so called "troika" of the EU, IMF and ECB to continue with the bailouts.

The Greek austerity measures are hugely unpopular at home and have led to a wave of strikes and protests.

Many Greeks believe the austerity measures are strangling any chance of growth.

Send your pictures and videos to yourpics@bbc.co.uk or text them to 61124 (UK) or +44 7624 800 100 (International). If you have a large file you can upload here.

Read the terms and conditions

View the original article here

US Senate backs currency debate

2011-10-31T17:01:00.000-07:00

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

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

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

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

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

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

'Unfair competitive advantage'

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

Continue reading the main story

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

View the original article here

Supergroup facing £9m profit hit

2011-10-31T13:16:00.000-07:00

AppId is over the quota
AppId is over the quota
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.

View the original article here

Kodak denies any bankruptcy plans

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

AppId is over the quota
AppId is over the quota
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.

View the original article here

Dexia shares in new Greece slump

2011-10-31T07:03:00.000-07:00

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

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

Dexia is holding an emergency board meeting amid serious concerns.

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

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

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

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

Market concerns

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

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

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

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

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

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

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

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

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

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

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

View the original article here

Will NFC make the mobile wallet work?

2011-10-31T02:09:00.000-07:00

AppId is over the quota
AppId is over the quota

View the original article here

Survey finds 28p beer price gap

2011-10-30T22:08:00.000-07:00

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

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

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

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

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

Brewers

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

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

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

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

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

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

Rising costs

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

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

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

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

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

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

View the original article here

Qantas buys 110 Airbus aircraft

2011-10-30T17:49:00.000-07:00

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

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

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

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

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

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

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

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

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

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

View the original article here

US durable goods slip in August

2011-10-30T13:01:00.000-07:00

AppId is over the quota
AppId is over the quota
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."

View the original article here

US services sector 'sheds jobs'

2011-10-30T09:05:00.000-07:00

AppId is over the quota
AppId is over the quota
5 October 2011 Last updated at 15:04 GMT The three different surveys gave conflicting signals ahead of the official jobs data release on Friday Employment in the US non-manufacturing sectors may have fallen in September, a survey has suggested, although output growth remained steady.

The ISM non-manufacturing index, which tracks services and construction sector activity, fell to 53 from 53.3 in August. Levels above 50 imply growth.

But the survey's employment sub-index dropped to 48.7, indicating job losses for the first time in 12 months.

However, separate data suggested the US private sector was still adding jobs.

The ADP jobs report, which is compiled each month by a major US outsourcing firm, registered 91,000 new private sector jobs across the US economy as a whole in September, somewhat ahead of market expectations.

The bulk of those new jobs, according to the report, were in the service sector - which accounts for about 80% of all jobs in the US.

The clear discrepancy with the non-manufacturing sector survey conducted by the Institute of Supply Management may point to a jump in government-sector job losses, which would be included in the ISM index, but not in the ADP report.

"The most significant thing is the employment index which fell," said Anthony Nieves, chair of the ISM's survey committee.

"This is a very tell-tale sign for non-manufacturing, given how labor intensive this sector is. The drop in the employment index reflects the prevailing sentiment in the business community which is one of caution, hesitation and uncertainty."

Meanwhile a third report, by consultancy Challenger, Gray and Christmas, calculated that nearly 116,000 job cuts were announced last month - the highest rate since April 2009 - thanks largely to layoffs by Bank of America and the US military.

Official US jobs data for September is due to be released on Friday by the US Department of Labor, and is expected to show an increase of 60,000 jobs for the US economy as a whole.

View the original article here

Concern over football club owners

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

AppId is over the quota
AppId is over the quota
28 September 2011 Last updated at 13:50 GMT Damian Collins is part of the Commons committee looking into how football is run A Conservative MP has written to Sports Minister Hugh Robertson expressing concern about the ownership of Coventry City Football Club.

Damian Collins, who is part of a Commons committee looking into how football in England is run, wants to know more about owners Sisu Capital.

"In the case of Coventry City it didn't seem to be clear who the ultimate owners of the club were," he said.

A spokesperson for Sisu said the club is managed by private equity ownership.

Coventry's current owners have been in place since 2007 but there has been unrest, and changes were made at boardroom level this year.

The most notable of these was the departure of chairman Ray Ranson who had been integral to the takeover.

Mr Collins, who sits on the Commons' Culture Media and Sport Committee, told BBC Coventry & Warwickshire he was worried that it was not clear who is in charge of the Championship outfit.

"I took this up with the Football League to ask them and they confirmed to me that because no individual investor owned more than 10% of the club they didn't know who any investors in the club were," the Folkestone and Hythe MP said.

"I thought that was very unsatisfactory.

"We're constantly reassured that there are proper rules in place that govern who can own and invest in football clubs, what their background is, whether they have a stake or interest in other football clubs.

"To be able to apply those rules we've got to know who those investors are.

"One of the reasons these rules are in place on club ownership is to make sure there aren't conflicts of interest with people who've got stakes in different football clubs.

'Not anonymous'

"It's important from an integrity of competition point of view. It's also important in terms of the fans.

"When a club gets into financial difficulties it's the fans that suffer and it's also local businesses that are owed money by that football club that suffer.

"If the Football League and the Premier League were to turn around to Coventry and say, 'it's not good enough, you've got to have a declared owner of the club otherwise we won't let you play', I think you'd see a change."

Coventry City have declined to respond to Mr Collins' comments but have stood by quotes attributed to director Onye Igwe that appeared on The Guardian's website on Tuesday.

Mr Igwe told the publication: "We are not being anonymous. I am the fund's manager and a partner in Sisu, that is public."

He added that the funds for the club came from professional investors of various nationalities who wanted confidentiality, which was "normal practice in private equity".

View the original article here

Lone Star guilty of market fraud

2011-10-29T23:53:00.000-07:00

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

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

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

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

Spread rumours

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

Yoo has been jailed for three years.

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

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

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

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

View the original article here

Sharp rise in eurozone inflation

2011-10-29T20:53:00.000-07:00

AppId is over the quota
AppId is over the quota
30 September 2011 Last updated at 11:18 GMT Continue reading the main story Last Updated at 03:49 GMT

Market indexCurrent valueTrendVariation% variationThe eurozone inflation rate increased to 3% in September, up from 2.5% in August, according to the first estimate from the EU statistics agency.

No breakdown was given, but Eurostat said its initial forecasts were usually "reliable".

Separate figures also released by Eurostat showed the eurozone unemployment rate unchanged at 10% in August from the previous month.

The number of people unemployed fell by 38,000 compared with July.

The unemployment rate in Spain, the highest in Europe, rose slightly to 21.2%, with youth unemployment hitting 46.2%.

However, the jobless rate for those under 25 in the eurozone as a whole fell slightly, to 20.4%.

Falling shares

Analysts, who had expected a small rise in inflation, pointed to technical changes in the way price rises are calculated as a contributory factor in the sharp increase.

Continue reading the main story Andrew Walker Economics correspondent, BBC World Service

This rise in the inflation rate makes the situation even more complicated for the European Central Bank.

The ECB has been widely criticised for raising interest rates earlier this year, as several eurozone countries are struggling with government debt crises and economic growth that is either weak or completely stalled.

The ECB has an inflation target of close to but below 2%. So the increased rate of price rises will make the Bank even more cautious about making interest rate cuts.

In addition, some of the ideas being discussed for responding to the eurozone crisis involve a wider role for the European Central Bank which could be characterised as, in effect, "printing money". As this could be inflationary, the latest data on price rises underlines the potential risk of such a move.

"It's not a nice number, but I wouldn't panic that the high inflation which some have warned about for years is finally here," said Martin Van Vliet at ING.

"We will see inflation declining over the next months, staying above 2.5% but next year, with stable oil and food prices, we will fall to lower levels."

The European Central Bank target for inflation is 2%, and the bank raised interest rates in July from 1.25% to 1.5% in order to combat rising prices.

However, the continuing debt crisis makes further rate rises in the coming months unlikely, analysts say.

With confidence in the outlook for economic growth in the eurozone fragile, policymakers are unlikely to risk raising rates, they say.

Equally, however, sharply rising prices make a cut in interest rates less likely.

This put further downward pressure on markets that fell sharply in early trading.

Germany's Dax index was down 2.5%, with France's Cac 40 and the UK's FTSE 100 sliding about 1.5%.

View the original article here

Eurozone manufacturing contracts

2011-10-29T17:32:00.000-07:00

AppId is over the quota
AppId is over the quota
3 October 2011 Last updated at 09:11 GMT Markit says the German economy, the eurozone's main engine of growth, is stalling Manufacturing in the eurozone shrank at its fastest pace in two years in September, a business survey has shown.

Markit's purchasing managers' index (PMI) of activity dropped to 48.5 last month, from 49 in August. A reading below 50 indicates contraction.

That is the second consecutive month that eurozone manufacturing has shrunk.

Greece, the focal point of the eurozone's debt crisis, saw its output contract for the 25th consecutive month.

"Manufacturers are reporting the worst business conditions for over two years, facing a combination of lacklustre domestic demand and falling export sales," said Chris Williamson, Markit's chief economist.

The region has been weighed down as leaders struggle to prove that heavily indebted countries, led by Greece, will be able to avoid defaulting on their debts.

This has led to bailouts for Greece, the Irish Republic and Portugal - but the crisis has continued and has weighed on bonds and stocks globally.

Even in Germany, the engine of European economic growth, Markit's survey showed factory activity has come to a standstill.

View the original article here

Abramovich 'good at psychology'

2011-10-29T12:59:00.000-07:00

AppId is over the quota
AppId is over the quota
6 October 2011 Last updated at 16:59 GMT Mr Berezovsky began giving evidence as the case moved into a fourth day Chelsea Football Club owner Roman Abramovich is good at psychology, appearing humble and getting people to like him, a High Court judge has heard.

Boris Berezovsky, 65, said his former business partner "intimidated" him into selling shares in Russian oil firm Sibneft for a fraction of their value.

The Russian oligarch is seeking ￡3bn in damages from Mr Abramovich for an alleged breach of trust and contract.

Mr Abramovich, 44, disputes the claims and denies making "oral agreements".

In a written witness statement given to the judge at the Commercial Court, Mr Berezovsky said: "He [Mr Abramovich] is good at getting people to like him and good at psychology in that way.

'Pressure'

"He is good at appearing to be humble. He is happy to spend days just socialising with important or powerful people if that is what is needed so he can get closer to them."

When questioned by Mr Abramovich's lawyer Jonathan Sumption QC about his own past, Mr Berezovsky admitted he was one of the most politically-influential oligarchs in Russia in the mid 1990s.

But he denied any underhand dealings, telling the court: "I am not corrupt. I didn't corrupt anybody."

He also denied "fixing" an auction of Sibneft following its privatisation, and putting "pressure" on the then Russian president Boris Yeltsin.

"My way is not to make pressure," he said. "My way is to persuade and to explain why it is important to do."

Mr Abramovich watched proceedings from the public gallery as Mr Berezovsky began giving evidence to the judge, Mrs Justice Gloster, on the fourth day of proceedings.

The trial is expected to last more than two months.

View the original article here

No temporary tax cuts - Osborne

2011-10-29T08:41:00.000-07:00

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

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

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

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

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

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

'Debt crisis'

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

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

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

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

Continue reading the main story Nick Robinson BBC Political Editor

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

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

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

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

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

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

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

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

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

'Underspend'

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

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

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

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

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

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

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

Credit rating

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

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

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

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

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

View the original article here

House prices 'lacking direction'

2011-10-29T04:27:00.000-07:00

AppId is over the quota
AppId is over the quota
6 October 2011 Last updated at 07:24 GMT The market has been relatively difficult for first-time buyers House prices are "lacking genuine direction", according to the Halifax, as it reported a 0.5% fall in values in September compared with August.

Prices were down 2.3% from a year ago, leaving the average home in the UK worth ￡161,132, the lender said.

It said there had been a mixed pattern of monthly changes in prices, but broad stability overall.

And the lender said it expected little change in prices and activity during the rest of the year.

"Greater uncertainty about economic and personal financial circumstances, together with pressure on householders' finances from weak earnings growth, higher inflation and increases in taxes, are likely to be constraining housing demand," said Halifax housing economist Martin Ellis.

"Despite these pressures, low interest rates and a rise in employment over the past year, have been supporting the market."

Lending

Prices in the three months to September were 0.1% higher than the previous three months.

The report of static house prices from the Halifax's lending data chimes with the latest figures from the Nationwide. The building society said last week that prices were "treading water".

However, the latest statistics on mortgage approvals from the Bank of England may suggest that sales funded by mortgage borrowing could pick up this autumn.

It said the number of new mortgages approved, but not yet lent, for home buyers rose to 52,410 in August - its highest monthly level since December 2009.

View the original article here

European financial tax 'bad idea'

2011-10-29T00:09:00.000-07:00

AppId is over the quota
AppId is over the quota
30 September 2011 Last updated at 12:40 GMT Mr Borg said Sweden's experience of a financial transaction tax was "very bad" A European financial transaction tax is unlikely to raise the sums of money projected as it would encourage firms to move overseas, Sweden's finance minister has told the BBC.

Anders Borg said Sweden abandoned its own transaction tax after most trading companies left the country.

The tax "had a very detrimental impact on our financial markets", he said.

If the European Union introduces the tax, firms could simply move to New York or Asia, Mr Borg said.

'Very bad tax'

Sweden introduced a transaction tax on financial firms in the 1980s.

"Between 90%-99% of traders in bonds, equities and derivatives moved out of Stockholm to London," Mr Borg said.

Continue reading the main story

We are basically taxing growth away from Europe, and that is not a very good idea”

End Quote Anders Borg Swedish Finance Minister "The impact was basically that we did not get any tax revenue. It brought in very little tax money while moving most of the businesses outside of Sweden.

"We abandoned [the tax] because it was a very, very bad functioning tax."

The fact that the US has said it has no intention of introducing a similar tax, meant that firms would be free to move to other financial centres, Mr Borg said.

"So we are basically taxing growth away from Europe, and that is not a very good idea.

"I hope [policymakers] realise they might be losing out themselves. This is not a stable tax base."

Mr Borg said he was in favour of making the banking system pay, and making it more robust, but that any measures designed to bring this about should not push firms out of Europe.

Hard hit

The UK has also been vocal in its opposition to the tax proposed by the European Commission earlier this week.

A spokesperson for the UK Treasury said it would "absolutely resist" any tax that was not introduced globally.

London would be hardest hit by the tax as the majority of banking transactions in Europe come through the city.

However, a number of other European countries are in favour of the tax, including France, Austria, Belgium, Norway and Spain.

The commission has said it will look at implementing the tax just in the 17 member states of the eurozone if other EU members oppose it.

Under the proposals, the financial tax would be levied at a rate of 0.1% on all transactions between institutions when at least one party is based in the EU. Derivative contracts would be taxed at a rate of 0.01%.

The tax would raise about 57bn euros ($78bn; ￡50bn) a year and would come into effect at the start of 2014, the commission said.

View the original article here

FirstGroup sells German bus unit

2011-10-28T20:50:00.000-07:00

AppId is over the quota
AppId is over the quota
30 September 2011 Last updated at 06:47 GMT FirstGroup is focusing on its core markets in the UK and US Rail and bus firm FirstGroup has announced the sale of its German bus operations for 5.5m euros (￡4.8m).

The Aberdeen-based transport company said it had sold FirstGroup Deutschland to Marwyn European Transport.

FirstGroup chief executive Tim O'Toole said the disposal marked "a further step in our programme of small asset and business disposals".

This was part of the group's strategy to focus on its core operations in the UK and North America, he added.

FirstGroup Deutschland operates about 130 buses in the Rhineland Pfalz region in south-west Germany.

On Thursday, FirstGroup said it expected like-for-like passenger revenue at its UK rail division to rise by 9% in the six months to 30 September, and revenue at its UK bus division to increase by 1.2%.

FirstGroup also operates school buses and the coach business Greyhound in the US.

View the original article here

Morning business round-up

2011-10-28T16:36:00.000-07:00

AppId is over the quota
AppId is over the quota
6 October 2011 Last updated at 11:04 GMT What made the business news in Asia and Europe this morning? Here's our daily business round-up:

Continue reading the main story Last Updated at 11:57 GMT

Market indexCurrent valueTrendVariation% variationStock markets across Europe have been boosted by expectations that EU leaders are about to act to ease the debt crisis.

The main markets in London, Frankfurt and Paris were about 2% up, after Hong Kong closed 5.6% higher.

European Commission President Jose Manuel Barroso said in a television interview that there were plans for co-ordinated action to recapitalise banks.

In the UK, the Bank of England has said it will inject a further ￡75bn into the UK economy through quantitative easing (QE).

The Bank has already pumped ￡200bn into the economy by buying assets such as government bonds, in an attempt to boost lending by commercial banks.

But this is the first time it has added to its QE programme since 2009. There have been recent calls for it to step in again to aid the fragile recovery.

The Bank also held interest rates at the record low of 0.5%.

European aircraft maker Airbus has struck a deal worth $9.5bn (￡6.2bn) with Australia's Qantas for 110 jets.

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

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

Eleswhere in Asia, there are reports that many Chinese private sector enterprises are facing bankruptcy because of credit tightening and an explosion in informal lending.

In the eastern city of Wenzhou, one-fifth of the city's 360,000 small and mid-sized businesses have stopped operating due to cash shortages, China's official news agency Xinhua reported on Thursday.

Business headlines

And shares of Citic Securities have fallen on their debut at the Hong Kong stock exchange as market volatility continues to dent investor sentiment.

Its shares fell by as much as 10% in early trade to HK$11.90 from an offer price of HK$13.30.

Citic securities, China's largest listed brokerage had sold 995.3m shares raising HK$13.2bn ($1.7bn, ￡1.1bn).

Many Chinese firms have recently cancelled or postponed their proposed listing on the exchange.

Meanwhile, the state of the UK housing market has been under scrutiny. House prices are "lacking genuine direction", according to the Halifax, as it reported a 0.5% fall in values in September compared with August.

Prices were down 2.3% from a year ago, leaving the average home in the UK worth ￡161,132 ($249,560), the lender said.

The latest edition of Business Daily from the BBC World Service looks at the legacy of Steve Jobs, founder of Apple Computers, who died on Wednesday aged 56.

View the original article here

Deloitte sued for $7.6bn in US

2011-10-28T13:26:00.000-07:00

AppId is over the quota
AppId is over the quota
26 September 2011 Last updated at 21:33 GMT It is alleged that Deloitte missed financial fraud at the mortgage company Taylor Bean and Whitaker Giant accounting and consulting firm Deloitte Touche Tohmatsu has been accused of failing to detect fraud during audits of a mortgage firm which failed during the US housing crash.

A trust overseeing now-defunct Taylor, Bean & Whitaker (TBW), and one of the company's subsidiaries, have filed complaints in a Florida court.

They are claiming a combined $7.6bn (￡4.9bn) in losses.

TBW shut down after federal agents raided its headquarters in August 2009.

Deloitte spokesman Jonathan Gandal said the firm rejected the court claims, and that they were "utterly without merit".

'Red flags'

The fraud at Ocala-based TBW began in 2002 and continued until its collapse two years ago.

Seven TBW executives were convicted of federal criminal charges, with former chairman Lee B Farkas sentenced to 30 years in jail.

The lawsuits claim Deloitte's certifications of the TBW books were essential in giving it the appearance of a legitimate mortgage business.

However the lawsuits say TBW was selling false or highly overvalued mortgages, mis-stating its liabilities and hiding overdrawn bank accounts.

"They [Deloitte Touche Tohmatsu] certainly did not do their job," said attorney Steven Thomas, who represents those suing Deloitte.

"This is one of those cases where the red flags are staring you in the face, and you've got to do a lot, and they did not."

View the original article here