wo3

Dot brand versus dot com

2011-11-06T15:36:00.000-08:00

AppId is over the quota
AppId is over the quota
30 September 2011 Last updated at 03:54 GMT By Fiona Graham Technology of business reporter, BBC News Death sentence?: As brands are given the opportunity to have their own domains, could the dominance of .com be at an end? Business is good. Your bathroom fittings company has replaced the conveniences in half the homes in your neighbourhood. But there's one small fly in your ointment.

You were a bit late to the game when it came to the internet.

And when you finally decided to go online, www.bloggsbogs.com was already taken. You're pretty sure this must be the reason you haven't made quite the splash you wanted in other towns.

Is there another way?

Domain dominion

Beginning in January 2012, applications open for a new class of gTLD (generic top level domain).

The people who control the use of internet domains, Icann (Internet Committee for Assigned Names and Numbers), announced in June they were extending the suffixes used for web addresses beyond the existing 22 (.com, .net, .uk, etc).

Interested parties can apply to run one, and either retain it for themselves, or set up as a registrar selling domains within groups like .car or .bank.

Icann voted to allow the proposals for the new domains at their meeting in Singapore in June 2011.

The suffixes don't have to be roman letters, so could for example be Chinese characters.

Some rules do apply - for instance, they must have at least three letters (Icann is holding onto the remaining two letter domains in case new countries are created).

So now companies can bid for their own gTLD for the first time. Think .hitachi, .coke, .facebook.

Could .com's dominance be coming to an end?

Time limited

If your dream of registering .bloggsbogs is going to become reality, you'd better get your skates on. The application period opens on 12 January 2012, and closes three months later on 12 April.

Miss this and you may be twiddling your thumbs till 2015 according to Tim Callan, chief marketing officer at domain experts Melbourne IT DBS.

"[Companies] have to be prepping, and they have to be getting ready and figuring out what they're doing so they're ready."

Some may be left behind, says Simon Briskman, partner and IT specialist at law firm Field Fisher Waterhouse.

Tim Callan: "Verisign predicts there will be 1,500 applications"

"I think it's difficult for brands to take this very short period we've got - the last quarter of this year - to assess and make a full business case."

Mr Briskman says some companies have stalled, initially put off by the cost.

"I think we've now got to the point where people are going: 'Hang on a minute, this is a drop in the ocean compared with the investment we make in the brand. We really do need to properly assess the business case.'

"[Some] big brands are going to miss the window - simple as that. You can't move large organisations at this speed."

Shirt off your back

Cost may cut out all but the megabrands.

Applying will set you back $185,000, and it doesn't stop there, says Melbourne IT DBS's Tim Callan: "Your corner mom-and-pop shop, this is not right for them.

"A good estimate is it will cost between $150,000 - $200,000 a year to run [a gTLD]. So costly yes, compared to your and my wallets, but for the companies we're talking about - trivial.

"I've yet to run into anybody who I would consider a prospect for this who has a cost objection."

Rebecca Moody, head of planning at advertising agency Euro RSCG, agrees: "It's a no-brainer for John Lewis or for Coca-Cola, for example, both successful big brands who can probably afford dot brand."

Bloggs Bogs may have to settle for registering for a dot category domain - if anyone applies for .toilet that is.

The cost of applying for your own gTLD will probably restrict it to megabrand corporations like Coca Cola

When the application period closes, Icann will decide who has a viable bid.

"They're taking the public facing internet, they're slicing chunks off and they're giving them to people to operate," says Mr Callan. "So they want to be confident people can run it correctly."

Where there are multiple qualifying bids, Icann has a set of criteria to decide who wins - in the case of dictionary words for example, open communities trump private ones.

If this process doesn't resolve the situation, then it goes to auction, with the highest bidder winning. The first gTLDs could be live by early 2013.

Return on investment

So what is pushing companies to buy their own dot brand?

Mr Callan says protecting your trademark is one motive, not only to thwart cybersquatters, but to beat other companies using the same name to it.

"Trademark law allows non-colliding trademarks to exist. If I'm operating in North America and you're operating in Europe and we don't cross over, then we can both have a trademark. But only one of us can have the TLD."

Continue reading the main story dot category: .bank, .music, .shopdot place: .london, .berlin, .nycdot brand: .canon, .hitachi, .unicef, .motorolanon-Roman scripts allowed: Arabic, Chinese etcminimum three charactersno numbers, hyphens or non-letter charactersno country namesno two words that differ slightlyno plurals if singular exists, e.g. bank not bankstrademark holders can block cybersquattersThen, he says, there's the marketing benefit.

"[Companies] think they can have a better connection between offline marketing and online traffic by having names that are shorter, more memorable, easier to pop out in a marketing campaign."

"For example, laptop.hitachi. Very crisp. Very easy to remember, very easy to communicate."

This includes the benefits a loaded url brings in terms of search engine optimisation (SEO) strategy, a process where sites are built to make them more attractive to search engines.

Security is another draw.

"There are a lot of people who won't do internet shopping because of the security, I think dot brand has a lot of potential there," says Field Fisher Waterhouse's Simon Briskman.

"[It] is going to really help as a seal of authenticity."

Perception is a big deal, according to Dr Jonathan Freeman, senior lecturer in psychology at Goldsmiths, University of London and managing director of i2 media research.

"A lot of this is consumer perception. Reassuring consumers is going to enhance the online behaviours and transactions. They'll feel a lot more happy dealing [with] it."

Despite this, he anticipates consumers will not immediately take to the new naming conventions.

Dr Freeman says finding dot brand sites without having to search could be easier on mobile devices

"What people are used to doing is going to be a big determinant in how consumers adopt and use dot brand as it rolls out.

"I'd expect it to take a while to embed in consumer behaviour, especially given the extent to which consumers rely on search engines today."

So where does this leave the brands that cannot afford to be part of the new world order?

"There will inevitably be a new brand ranking system, which in a way I find kind of concerning." says Euro RSCG's Rebecca Moody.

"Do you risk looking like a second rate brand?"

Out of the loop

Understandably, smaller brands are uneasy.

"What the small businesses and not-for-profits have been complaining about is there's a significant barrier to entry," says Field Fisher Waterhouses's Simon Briskman.

"People are selling off slices of the internet real estate, and they feel they're going to get closed out."

He says subsequent rounds may prove a little cheaper.

Continue reading the main story

It's just not possible for everyone to get the names that they want in the new dot com space”

End Quote Simon Briskman Field Fisher Waterhouse "I think people will start to aggregate the running of these day-to-day, which ought to bring down some cost. I still don't think that it will be accessible to Martha with her boutique in Marylebone."

And the ubiquitous dot com? It's probably safe for some time to come.

"I don't believe anyone is going to be shutting their dot coms in the next five years," says Tim Callan of Melbourne IT DBS.

"But does any of us think we're going to be typing dot com in a hundred years? No."

Simon Briskman is somewhat more tempered.

"The reason dot com will survive is [for example] the Times - there's the Financial Times, the New York Times. It's just not possible for everyone to get the names that they want in the new dot com space."

"If you want a good presence, but maybe not the best presence, if you want someone else to run the infrastructure, you'll probably use dot coms.

"They'll happily co-exist I just don't think they'll have the same power that the dot brand does."

View the original article here

Dexia shares in new Greece slump

2011-11-06T10:57:00.000-08:00

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

Reebok pays $25m over toning shoe

2011-11-06T07:00:00.000-08:00

AppId is over the quota
AppId is over the quota
28 September 2011 Last updated at 18:41 GMT Reebok got into trouble in the US about alleged health benefits of using its toning shoes Sports goods maker Reebok International is to pay $25m (￡16m) to settle charges that it made unsupported claims about its Easy Tone and Run Tone shoes.

Reebok, a unit of Adidas, said these toning shoes would "strengthen and tone key leg and buttock (gluteus maximus) muscles more than regular shoes".

The US Federal Trade Commission ruled these advertising claims were false.

Adidas said Reebok had settled with the commission "to avoid a protracted legal battle".

"Settling does not mean we agreed with the FTC's allegations; we do not," Adidas added.

The FTC said Reebok began making the claims in early 2009 and provided statistics about the alleged benefits.

The $25m penalty will go towards consumer refunds.

"The FTC wants national advertisers to understand that they must exercise some responsibility and ensure that their claims for fitness gear are supported by sound science," said David Vladeck, director of the FTC's bureau of consumer protection.

The commission said in one advert Reebok claimed that by walking in its Easy Tone shoes users were able to strengthen hamstrings and calves by up to 11%, and tone the buttocks up to 28% more than normal trainers.

UK advert

It comes three months after a Reebok advert in the UK, which featured Formula One driver Lewis Hamilton, was banned.

The Advertising Standards Authority (ASA) banned the leaflet which said Reebok's ZigTech Apparel helped blood vessels to relax, boosting oxygen levels by up to 7%.

The ASA said the claims could not be proved and also criticised the advert for implying the trainers Hamilton wore in it featured the new technology.

Reebok said it disagreed with the ASA ruling but accepted it.

View the original article here

VIDEO: China currency vote: US view

2011-11-06T03:30:00.000-08:00

AppId is over the quota
AppId is over the quota
3 October 2011 Last updated at 00:27 GMT Help

View the original article here

Japan outlines quake-tax increase

2011-11-05T23:33:00.000-07:00

AppId is over the quota
AppId is over the quota
28 September 2011 Last updated at 03:54 GMT Japan's rebuilding effort will take years to complete Japan's government and the ruling Democratic Party (DPJ) have agreed to temporarily raise taxes to pay for reconstruction after the deadly March earthquake.

The plan to raise 9.2tn yen ($120bn; ￡77bn) needs approval by the DPJ's coalition partner and the opposition party.

Officials said a further 2tn yen would be raised by selling government assets.

The earthquake and subsequent tsunami killed more than 16,000 people.

At the same time, thousands of homes and businesses were destroyed in the country's north-eastern coastal areas.

The new tax plan will increase taxes on incomes, companies, property and tobacco.

Corporate taxes will be raised starting next April and last three years, and income taxes will go up as of January 2012 for 10 years.

The tax on tobacco will be increased as of October 2012.

The Democratic Party of Japan also agreed to a third post-quake stimulus package of 12tn yen, government officials confirmed.

That plan must also now be negotiated and approved by opposition lawmakers.

View the original article here

Mongolia and Rio reach stake deal

2011-11-05T19:53:00.000-07:00

AppId is over the quota
AppId is over the quota
7 October 2011 Last updated at 05:09 GMT Resource-rich Mongolia has attracted many foreign investors Mongolia and mining giant Rio Tinto and Ivanhoe have reached an agreement on stakeholding of the Oyu Tolgoi project in the resource-rich country.

The Mongolian government had sought to increase its stake in the mine to 50% from 34% as previously agreed.

The mining companies had said that the government should honour an original agreement signed in 2009.

When completed, the project is expected to be one of the biggest copper mines in the world.

According to the initial agreement, Mongolia government could renegotiate its stake after a period of 30 years.

However, the authorities had wanted to bring forward the negotiation period, a move that did not go down well with the miners as well as industry analysts.

In a joint statement released on Wednesday, they said "all parties have reaffirmed their continued support for the investment agreement and its implementation".

Shares of Ivanhoe rose as much as 18% on the Toronto Stock Exchange.

View the original article here

IBM now second biggest tech firm

2011-11-05T14:53:00.000-07:00

AppId is over the quota
AppId is over the quota
30 September 2011 Last updated at 09:23 GMT Continue reading the main story For the first time since 1996 IBM's market value has exceeded Microsoft's.

IBM's closing price on 29 September was $214bn (￡137.4bn) while Microsoft's was a shade behind at $213.2bn (￡136.8bn).

The values cap a sustained period in which IBM's share price has moved steadily upward as Microsoft's has generally been in decline.

The growth means IBM is now the second largest technology company by market value. Apple still holds the top slot with a value of $362bn (￡232bn).

Since the beginning of 2011, IBM's share price has made steady gains and is now 22% higher than at the start of the year, according to Bloomberg figures. By contrast, Microsoft's value has dropped 8.8% over the same time period.

Analysts put the switch in the number two slot down to a decision IBM made in 2005 to sell off its PC business to Chinese manufacturer Lenovo to concentrate on software and services.

"IBM went beyond technology," Ted Schadler, a Forrester Research analyst told Bloomberg. "They were early to recognise that computing was moving way beyond these boxes on our desks."

By contrast much of Microsoft's revenue comes from sales of Windows and Office software used on PCs. Also, Microsoft is between releases of Windows which can mean a fallow period for its revenues.

Windows 7 was released in 2009 and Windows 8 is not expected to be released until late 2012 at the earliest.

Many have also claimed that the rise of the web, mobile computing and tablets spells the end of the PC era. In early August, Dr Mark Dean, one of the designers of the original IBM PC, declared that the centre of the computing world had shifted away from the humble desktop.

View the original article here

VIDEO: Greek protester: 'Measures hurt poor'

2011-11-05T11:06:00.000-07:00

AppId is over the quota
AppId is over the quota
5 October 2011 Last updated at 16:27 GMT Help

View the original article here

Barclay brothers buy Claridge's

2011-11-05T06:33:00.000-07:00

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

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

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

The Barclays already own the Ritz hotel in London.

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

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

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

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

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

View the original article here

Qatar gears up for 2022 World Cup

2011-11-05T02:45:00.000-07:00

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

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

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

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

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

And some bridges need to be built.

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

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

'Promises'

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

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

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

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

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

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

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

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

Cooling

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

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

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

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

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

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

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

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

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

Alcohol

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

Continue reading the main story

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

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

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

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

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

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

Catalyst

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

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

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

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

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

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

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

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

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

View the original article here

Shell Singapore fire 'contained'

2011-11-04T23:45:00.000-07:00

AppId is over the quota
AppId is over the quota
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.

View the original article here

US nears South Korea free trade

2011-11-04T20:24:00.000-07:00

AppId is over the quota
AppId is over the quota
6 October 2011 Last updated at 03:19 GMT The trade deal is expected to dominate President Lee Myung-bak's visit to the US later this month The free trade agreement between the US and South Korea has cleared the first hurdle four years after the deal was first agreed.

The House Ways and Means Committee has voted to advance US free-trade agreements with South Korea, Colombia and Panama to the full House.

The push for a swift approval of the deals comes amid a slowdown in the US economy and high rates of unemployment.

Backers of the deals said they will boost US exports and create jobs.

"With zero jobs created last month and the unemployment rate hovering around nine percent, we must look at all opportunities to create American jobs," said David Camp, chairman of the House Ways and Means Committee.

Tariff concerns

The deal with South Korea is the largest US trade pact since it signed the North American Free Trade Agreement in 1994.

According to some estimates, it is expected to increase US exports to the Asian economy by as much as $10bn (￡6.5bn).

Though the deal was agreed in 2007, there had been concerns in the US over tariffs imposed by South Korea on the US carmakers.

The two sides finally managed to reach an agreement on the issue last year. South Korea said it would halve its tariff on US cars to 4% and lift it completely in four years.

At the same time, US said it would also lift its 2.5% tariff on Korean cars during that period.

South Korea had also agreed to allow the US to export up to 25,000 cars a year that do not meet its more stringent safety requirements.

View the original article here

Bernanke: US economy 'faltering'

2011-11-04T17:05:00.000-07:00

AppId is over the quota
AppId is over the quota
4 October 2011 Last updated at 20:35 GMT The Fed chairman also lent support to critics of China's exchange rate policies US Federal Reserve Chairman Ben Bernanke has told Congress that the US economy is "close to faltering" and more action may be needed.

Giving testimony to the US legislature, he said the Fed was "prepared to take further action as appropriate" to bolster the recovery.

His comments come after the Fed already decided to shift $400bn of investments into longer-term government debt.

Stock markets responded positively, with the Dow Jones rallying over 1%.

But US markets fell back again somewhat in afternoon trading, until a strong late rally just before the close, which left the Dow Jones Industrial Average uip 1.4% for the day.

China 'blocking'

He said the switch into longer-term government debt announced last month - dubbed Operation Twist - was the equivalent of a half-percentage-point cut in interest rates, and gave a "meaningful, but not an enormous support to the economy".

But he warned that the eurozone debt crisis, as well as overly hasty spending cuts by the federal government, risked undermining the US recovery.

When asked what additional action the Fed might take if the economy continued to weaken, he reiterated policy options he has laid out in past speeches:

giving clearer guidance as to how long interest rates will be held close to zero, and in what circumstances they would rise;increasing "quantitative easing" - the Fed's purchase of US government bonds and other debts;cutting the interest rate paid on excess cash that the banks hold at the Fed.

But he added that the US central bank's monetary policies were "no panacea".

Continue reading the main story The Fed chairman also appeared to lend support to those seeking to take action against China's policy of buying up US debts - which has the effect of holding down the value of the yuan at a more competitive exchange rate.

"Chinese policy is blocking what might be a more normal recovery process in the global economy," said Mr Bernanke, who said China was shifting demand away from the struggling US and European economies.

The US Senate has just begun a week-long debate on a bill that would threaten China, and other countries accused of keeping their currencies unfairly cheap, with trade sanctions.

On the subject of the eurozone debt crisis, Mr Bernanke said there was little help the US could offer.

"The problems are not really economic, they're political," he said. "Because what they are trying to do is find solutions that are acceptable to 17 different countries, which you can imagine is very difficult."

He said that the US was an "innocent bystander" to the crisis, and while the country's direct exposure to any debt default by Greece was limited, the real risk was that a disorderly default could trigger a run on other eurozone governments and a banking crisis, which would hit the US badly.

View the original article here

VIDEO: IMF warns on drastic budget cuts

2011-11-04T12:07:00.000-07:00

AppId is over the quota
AppId is over the quota
5 October 2011 Last updated at 15:13 GMT Help

View the original article here

Barclays heads UK complaints list

2011-11-04T07:15:00.000-07:00

AppId is over the quota
AppId is over the quota
28 September 2011 Last updated at 14:35 GMT There were more than 250,000 complaints to Barclays in the first six month of the year More complaints were made about Barclays than any other banking brand by UK customers in the first half of the year, figures have shown.

The bank received 251,563 complaints, with 53% of closed cases upheld in customers' favour, the Financial Services Authority (FSA) figures show.

Barclays said it had cut complaints by 14% compared with a year earlier.

Other brands high on the list included Lloyds TSB (181,907), Santander (168,888) and NatWest (147,109).

The data pulls together figures released in recent weeks by banks.

Insurance complaints

Nearly 10,000 complaints were filed every day to financial institutions, with a total of 1.85 million made in the first six months of the year.

The FSA figures showed that, among the most complained-about banking brands, Santander was the most likely of the major brands to deal with cases within eight weeks.

It closed 98% of cases within that timeframe. This compared with 74% at Royal Bank of Scotland, 77% at Lloyds TSB, 86% at NatWest, 89% at Barclays and 90% at HSBC.

Complaints were dominated by those about payment protection insurance (PPI), especially after banks lost their legal challenge on PPI rules in April.

PPI is supposed to cover borrowers' loan repayments if they fall ill, die, or lose their jobs.

But mis-selling cases led to new rules on how cases should be dealt with, and also created an extra compensation bill running into billions of pounds for the banks.

Adam Scorer, of watchdog Consumer Focus, said: "This issue continues to dog the financial sector and is a big test of its commitment to treating consumers fairly.

"All firms need to deal with outstanding cases and make sure everyone affected is treated efficiently and fairly."

Complaints about banking, rather than insurance and some other categories, fell by 22% compared with the same period a year earlier.

'Good progress'

The FSA's complaints figures are published relating to banking brands.

Barclays headed the list but said the number of complaints had fallen by 14% compared with the same period a year earlier.

"We want to get it right every time. When we do get it wrong, we apologise, try to correct it quickly and identify how to prevent it from reoccurring," said Antony Jenkins, chief executive of Barclays Retail and Business Banking.

"We have made good progress in reducing complaints with a substantial and sustainable reduction in banking complaints by nearly a third.

"However, there is much more to be done and we are working hard to further improve our service to our customers, putting them at the heart of our business and getting it right first time, every time."

The largest group - Lloyds Banking Group - had most complaints when all its brands were added together.

Some complaints that are unresolved by the banks themselves end up with the independent Financial Ombudsman Service. It recently said that the largest number of these complaints, in the first half of the year, also related to Lloyds Banking Group.

It also said that nearly two-thirds of the new complaints made in the six months to the end of June were about PPI.

View the original article here

Could impact investing help India's poor?

2011-11-04T04:13:00.000-07:00

AppId is over the quota
AppId is over the quota
29 September 2011 Last updated at 08:34 GMT By Shilpa Kannan BBC News, Delhi Virender wants to grow his business of recycling plastic Sorting out plastic bags collected from rubbish tips is a serious business for Virender Kumar.

Sitting on a pile of plastic bags, he is busy giving directions to the labourers he employs to help him with the recycling.

Once the bags are sorted, he sells them to recycling units to be melted down into plastic pellets.

He makes about 20,000 rupees ($410; ￡262) profit every month. But he has bigger ambitions that need funding.

He says that by working overtime, he saved money to start the recycling unit. But now he wants to hire more people and expand the business.

"But everything needs money," he says. "Banks don't lend to people like me."

India's growing middle class has been a target for many companies, but now another segment of society is increasingly becoming a focus for investors - people living below the poverty line.

But can businesses make a profit and also serve a social purpose?

Loan controversy

People like Mr Kumar are now being wooed by financial institutions such as the Shriram Group.

While millions of people across India have little or no access to formal finance, investment funds which want to make a social impact are lending a helping hand.

These funds invest in people and sectors that traditional banks ignore. It is called "profit with a purpose".

But they are using insurance as a means of helping small businesses rather than loans.

Microfinance, or giving small loans to low-income borrowers, has received a lot of bad press in India recently.

The sector was booming until a spate of suicides by borrowers in the southern state of Andhra Pradesh led to the authorities tightening regulations.

At its peak, the microfinance sector saw almost $7bn in loans distributed to 30 million borrowers, and Andhra Pradesh accounted for a third of the total business.

As a result of the new laws, debt repayments fell drastically and the entire sector is now facing a massive consolidation, and many lenders have been forced to shut up shop.

Microinsurance is different from microfinance as this provides a safety net to prevent people from falling back into poverty.

The International Labour Organisation describes microinsurance as a mechanism to protect poor people against risk (accident, illness, death in the family, natural disasters etc) in exchange for insurance premium payments tailored to their needs, income and level of risk.

If a person earns $5 a day, making $150 a month, and a typical insurance product is under $4 a month, that person is able to, with that very limited amount of capital, free their family up substantially.

Having that extra protection means that instead of sending the children to work to save for a rainy day, they can send them to school.

Capital injection

Leapfrog is a $135m US-based impact investment fund that was set up to invest in companies that underwrite or distribute insurance.

The fund is backed by billionaire George Soros and e-bay founder Pierre Omidyar, as well as a consortium of banks, pension funds and reinsurers.

Leapfrog says that it is a big myth that because people have low incomes they are unable to pay for meaningful products.

"We are looking at the next billion consumers," said Andrew Kuper, co-founder of Leapfrog.

"The consumers who are rising out of poverty and into the middle-classes… aspiring, seeking to acquire financial services and other services that allow them to go on their journey in a more effective way."

He thinks businesses that serve that segment are going to have a massive competitive advantage.

Continue reading the main story

The ability with a very small percent of your income to totally reshape your microeconomic picture is a huge opportunity”

End Quote Andrew Kuper co-founder, Leapfrog "The ability with a very small percent of your income - less than 4% - to totally reshape your microeconomic picture and the daily choices that you and your family make is a huge opportunity.

"What isn't happening is companies getting to grips with the notion that you can serve that population, and we find that it is a very narrow slice of companies. Fortunately we are engaging with them."

More than 85% of Shriram Group's customers are first-time buyers of any financial product. It is the first provider to more than 98% of its customers. The group hopes that the capital injection from Leapfrog will benefit 10 million people in India.

G S Sundararajan, managing director of Shriram Capital, says his company is targeting people with an average annual income of $2,500.

"We already offer financing and investment services to the lower-income masses across India. Now, we plan to increase it even further. We'll be using Leapfrog's expertise to design new insurance products that are more effective for our existing consumers."

Huge potential

Microinsurance is not a new concept in India. The country was one of the first to introduce microinsurance regulation.

The Insurance Regulatory and Development Authority (IRDA) made it mandatory for all formal insurance companies to extend their activities to rural and social sectors as early as 2002.

But microinsurance companies face a huge challenge in connecting with customers. Many companies have been trying creative ideas - for example, the Shriram group is using its transport finance wing to connect with truck drivers and sell products to them.

India's biggest fertiliser company, IFFCO, provides free insurance cover to farmers along with each bag of fertiliser purchased. It has a joint venture with Tokio Marine and Nichido Fire Group, the largest listed insurance group in Japan.

It also provides a cattle insurance policy that covers the death of the animal due to accident, disease, surgical operations, strike, riots and even acts of terrorism or an earthquake.

A loan increased Virender's profits by 50%, by helping to pay for a new truck

The potential is huge. A study by the United Nations Development Programme (UNDP) in 2007 reported that up to 90% of the Indian population, or 950 million people, were excluded from the insurance market and represented a powerful "missing market".

But the private sector is risk-averse when it comes to investing in such people.

And just government resources and charitable donations cannot address the enormous social problems the country faces. Impact investments offer an alternative.

Reducing poverty

Recognising this growing segment, the biggest newspaper in the country, The Times of India, in association with J P Morgan, has announced awards for social impact.

Rahul Kansal is the organiser of the awards and he says that there are opportunities beyond just microinsurance for social impact in the country.

He says that large scale private capital can be channelled to public works.

"Increasingly we are seeing that in a country like India, there are avenues like healthcare, education, civic areas like waste management which need attention."

"The government cannot cope with the size of the problem. This is where organisations both for profit and non-profit can step in."

He thinks this large-scale neglect and need could be the next big investment opportunity.

A loan helped finance a new truck for Virender Kumar, increasing his profits by more than 50%. But he has also got life insurance and accident cover that came bundled with his truck financing, to protect his family.

It is people like him that are benefiting most by impact investments. Reducing poverty requires not just the generation of income among the poor, but also the protection of these incomes.

They are people who are making the transition from the informal to the formal economy - and bringing financial products to them gives them a chance to be included in the country's rapidly growing economy.

View the original article here

VIDEO: My Bottom Line: Greg Lucier

2011-11-04T00:32:00.000-07:00

AppId is over the quota
AppId is over the quota
29 September 2011 Last updated at 14:06 GMT Help

View the original article here

VIDEO: Sri Lanka tea hit by bad weather

2011-11-03T21:17:00.000-07:00

AppId is over the quota
AppId is over the quota
4 October 2011 Last updated at 02:40 GMT Help

View the original article here

Alexon jobs saved as group sold

2011-11-03T16:38:00.000-07:00

AppId is over the quota
AppId is over the quota
29 September 2011 Last updated at 13:49 GMT Continue reading the main story Women's clothing retailer Alexon has been sold to a private equity firm in a deal expected to secure the jobs of its 2,700 staff.

The struggling retailer said it had failed to find necessary funding and had appointed KPMG as administrators.

KPMG then sold the business to Sun Capital in a process known as a pre-pack administration.

Alexon, which owns a number of brands including Ann Harvey and Eastex, issued a profits warning earlier this month.

It said trading conditions had deteriorated and forecast that its performance this year would be "well below" expectations.

The group's stock market listing and trading in its shares were suspended on Thursday morning.

'Exciting acquisition'

Alexon had been looking to raise the money it needed to continue trading by looking for buyers for all of the company or one of more of its brands.

"Unfortunately these options have failed to reach a satisfactory conclusion in the time available," the company said in a statement.

"Following discussions with the group's lenders, it became clear that the group was unable to continue trading as a going concern."

Paul Daccus, of Sun European Partners, US-based Sun Capital's European arm, said it looked forward to helping Alexon "achieve sustainable growth".

"Alexon has strong brands which operate in a growing segment of the retail sector and this is an exciting acquisition," he added.

Alexon, which specialises in fashion for older women at mid-market prices, has 990 outlets across the UK and continental Europe.

View the original article here

Guinea PM defends mining shake-up

2011-11-03T13:32:00.000-07:00

AppId is over the quota
AppId is over the quota
14 September 2011 Last updated at 13:01 GMT Guinea is the world's main exporter of bauxite Guinea's new mining code will curb corruption and make more money available for development, Prime Minister Mohamed Said Fofana has said.

The code gives the government a free 15% share in mining companies and demands greater financial transparency.

Several foreign firms have warned that the code, which came into law over the weekend, will deter investors.

Guinea, despite being the world's main exporter of the aluminium ore bauxite, is one of Africa's poorest countries.

A democratic government was elected in December, ending the authoritarian and military rule that had blighted the country since independence in 1958.

In an address on national TV, Mr Fofana said the government would hold investors accountable and ensure they paid taxes and royalties.

Foreign companies would have to invest a minimum of $1bn (￡633m), he said.

'God-given riches'

The BBC's Alhassan Sillah in the capital, Conakry, says this is intended to prevent companies bribing officials in exchange for cheap mining rights.

Continue reading the main story

"[The] mining code adopted in Guinea increases considerably tax pressure on mining companies, making it senseless to invest in development and new projects”

End Quote United Co Rusal Previous mining contracts would be reviewed to ensure there were no irregularities, our reporter says.

On Monday, Mines Minister Mohamed Lamine Fofana told Reuters news agency that the government had overturned an agreement by the ex-military junta to give secretive investment group China International Fund the rights to all of Guinea's unexploited resources.

The new code guarantees the government a minimum stake of 15% in companies and the option of buying a further 20%, Reuters says.

It also requires companies to carry out environmental and social impact studies before they are granted mining permits, the agency says.

The prime minister said this would prevent environmental degradation, making sure that communities living near mines did not suffer.

Our reporter says most Guineans have welcomed the mining code, hoping that they will finally benefit from the country's "god-given riches".

But it has been opposed by several big companies operating in Guinea, including Moscow-based aluminium company United Co Rusal, which said it would not make further investments in Guinea.

"[The] mining code adopted in Guinea increases considerably tax pressure on mining companies, making it senseless to invest in development and new projects," it said in a statement to Bloomberg news agency.

Another major investor in Guinea, Australia's Rio Tinto, also expressed concern about the code, saying it would cost the company an extra $10bn, the Christian Science Monitor news website reports.

Our correspondent says the government is unlikely to bow to business pressure because mining sector reforms was a key promise to voters in the build-up to December's elections.

The government took over from the military junta that had seized power in December 2008 on the death of the previous President, Lansana Conte, who had ruled for 24 years.

Guinea holds half of the world's bauxite reserves, as well as large deposits of gold and diamonds.

However, most of its citizens live on less than $1 a day.

View the original article here

VIDEO: Markets hit by 'toxic cocktail'

2011-11-03T09:06:00.000-07:00

AppId is over the quota
AppId is over the quota
30 September 2011 Last updated at 19:05 GMT Help

View the original article here

'Bad bank' plan for Dexia assets

2011-11-03T05:07:00.000-07:00

AppId is over the quota
AppId is over the quota
4 October 2011 Last updated at 22:46 GMT Dexia shares have fallen sharply in the past two days The Belgian government has approved the creation of a "bad bank" for risky assets held by the troubled Franco-Belgian bank Dexia.

Shares have fallen sharply in the past two days amid fears about its large exposure to Greek government debt.

Belgian Prime Minister Yves Leterme said his cabinet had agreed to isolate at-risk assets and to guarantee debts.

There are fears that Greece may end up defaulting on more than 50% of its debt, mostly held by European banks.

Shares fell by as much as 37% at the start of European trading on Tuesday - adding to a 10% Monday drop prompted by an alert by ratings agency Moody's - but rallied back to a mere 22% down at the end of the day.

Reorganisation

The commitment to guarantee debts raised questions over the heavily indebted Belgian government's own solvency.

Belgium's 10-year cost of borrowing jumped from 3.7% to 3.8% in bond markets on Tuesday.

Separately, the French and Belgian central banks also stated that they "fully support" Dexia, indicating that they will provide whatever borrowing is needed by the bank to ensure it does not run out of cash.

Continue reading the main story

The European Banking Authority... portrayed Dexia as one of the strongest banks in Europe”

End Quote Robert Peston Business editor, BBC News The bank is to be restructured. As well as the creation of a "bad bank" supervised by the French and Belgian governments, a unit of the bank responsible for lending to French local authorities, Credit Local, will be sold off.

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

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

Many investors anticipate that the bank will ultimately have to be recapitalised by the two governments - in other words, nationalised.

The crisis at Dexia comes just weeks after the bank passed stress tests by regulators of all the major European banks, further undermining the credibility of the entire exercise.

Exposure

Market concerns over Greece's ability to repay its debts were further heightened on Monday, as eurozone finance ministers again 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.

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 exit 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 eventual loss to lenders could be in excess of 50% of the amount owed by Greece.

The bank is partly-owned by the French and Belgian governments, after it received a 6bn-euro joint bailout at the height of the financial crisis in 2008.

View the original article here

VIDEO: Human cost of Greek crisis

2011-11-03T01:58:00.000-07:00

AppId is over the quota
AppId is over the quota

The people of Greece are now having to pay the price of past official financial mismanagement, as the government takes drastic steps to try to avert a euro debt default. Paul Mason went to Athens to report on the human cost of political hubris.

Broadcast on Wednesday 28 September 2011.

View the original article here

China tech stocks dive on Nasdaq

2011-11-02T22:58:00.000-07:00

AppId is over the quota
AppId is over the quota
30 September 2011 Last updated at 01:19 GMT Continue reading the main story Chinese internet stocks have dived in New York trading after the US Justice Department said it was considering launching a fraud investigation.

The news was disclosed by Robert Khuzami, director of enforcement at the US financial services regulator.

Youku, which models itself on web video firm Youtube, was among the hardest hit, falling 18%.

Chinese search engine firm Baidu fell 9%, rival portal site Sohu lost 5.3%, and messaging firm Sina dipped 9.5%.

The fraud concerns have arisen after accounting irregularities emerged at a number of Chinese firms whose shares are traded in the US.

"There are parts of the Justice Department that are actively engaged in this area," said Mr Khuzami, when asked by the Reuters news agency whether criminal cases were being prepared.

He also confirmed that other federal prosecutors are involved in the investigation, but did not identify them, nor which Chinese companies and auditors are being looked into.

'A big issue'

The probe is the latest spotlight to fall on Chinese companies and their accounting practices.

Deloitte Touche Tohmatsu resigned as auditors for software firm Longtop earlier this year, after the accountancy firm claimed to have uncovered evidence of falsified financial records.

Questions have also been raised over the indirect way in which some Chinese firms obtained their US stock market listings.

Normally, a firm conducts a formal "initial public offering" on a stock exchange - something that is heavily regulated in the US and requires the detailed disclosure of a firm's finances to prospective investors.

However, many Chinese firms followed another route to market known as a "reverse merger".

This method involves the Chinese company being bought up by a smaller US firm that was already listed on a stock exchange, such as the Nasdaq, thereby minimising the company's disclosure requirement.

"Not having proper accounting and reliable audit review for publicly traded companies with operations in China is just not acceptable," said Mr Khuzami.

"We have to find a path to resolution of this issue. It is...a big issue for us."

A former investment banker who now works at the Securities and Exchange Commission, Mr Khuzami has built himself a reputation as someone who is happy to go after some of the biggest names in the financial industry.

He has also filed against Goldman Sachs for misleading investors.

View the original article here

VIDEO: 'Absurd' to blame China for US woes

2011-11-02T19:12:00.000-07:00

AppId is over the quota
AppId is over the quota
3 October 2011 Last updated at 01:53 GMT Help

View the original article here