Japan extends quake loan scheme

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

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

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

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

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

Uncertain outlook Continue reading the main story

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

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

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

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

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

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

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

Yen trouble

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

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

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

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

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

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Can the iPhone still scare rivals?

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4 October 2011 Last updated at 23:33 GMT By Tim Weber Business editor, BBC News website Sony Ericsson hopes that Android will help it regain market share The days when Apple had a free run for our smartphone hearts and minds are over.

It's the first time that Apple's latest offering, the iPhone 4S, encounters a truly competitive field of rivals.

The competition is powered by Apple's former partner Google, whose Android operating system for smartphones is rapidly gaining marketshare.

Mobile phonemakers, long suffering under Apple's smartphone dominance, have embraced Android with gusto and are jostling to add software and hardware touches that trump Apple's offering.

The iPhone rivals

Samsung's Galaxy S II, for example, is already slimmer and lighter than both the old iPhone 4 and the new 4S and arguably has a better screen.

Taiwanese competitor HTC, meanwhile, hopes that a clever user interface dubbed HTC Sense will help it to best Apple.

Instead of the iPhone's static icons, HTC has improved Android to offer a raft of rich, dynamic widgets that bring information and functionality directly to the smartphone screen. HTC's Sensation, for example, is currently hard to best in terms of ease of use, not just when compared to the new iPhone but Android rivals as well.

For its top-end phones HTC also throws in a free service that allows owners to track and remotely manage their phones, probably one of the reasons why Apple recently stopped charging for a similar service.

Android has even allowed Sony Ericsson to get back into the game. For several years the company and its lacklustre range of phones have been losing market share; now the company is back with the Android-based Xperia Arc S - a well-built and user-friendly phone that can compete with most rivals.

Apple also lags in terms of hardware innovation, with several competitors pushing phones that sport 3D cameras and glasses-free 3D screens - like the Sharp 3D Aquos, the HTC Evo 3D and the LG Optimus 3D.

Google is also constantly updating Android, and provides the software free to manufacturers. This is not charitable behaviour, of course. Google search is deeply integrated into Android phones, providing healthy profits from clicks on sponsored search results (although a few network operators have begun to point customers to different search engines).

The rise of Android

The rise and rise of Android is reflected in the market share.

According to research firm Gartner, during the second quarter of 2011 Android captured a massive 43.4% of the global smartphone market - up from 17.2% just a year ago.

In contrast, Apple's iPhone software iOS gained just four percentage points to 18.2% - mainly by entering 15 new countries and signing up 42 new network operators to sell the iPhone.

The big losers are Nokia's Symbian smartphones, Blackberry maker RIM - and Microsoft who is struggling to gain traction for its new mobile operating system Windows Phone 7.

Operating System 2nd quarter 2011 2nd quarter 2010

Research in Motion (Blackberry)

Advantage Apple

Despite Android's advances, Apple still dominates the "mindshare" of the smartphone market.

This is less a function of the many Apple fans amongst tech journalists. It's more a question of first-mover advantage and, most importantly, branding.

Dozens of manufacturers are now selling numerous Android phones, ranging from the cheap and cheerful to the high end of the market. Apple and its network partners can focus all marketing around a single brand and - now - two devices.

No wonder that the iPhone is still seen by many as the benchmark against which other smartphones have to be measured - even though the new iPhone 4S has arguably failed to raise this benchmark in a significant manner. Some of the new features on the 4S have been standard on Android phones for many months.

The lack of a big "and one more thing" unveiling by Apple's new chief executive will have been greeted with loud sighs of relief by rivals.

Still, any move by Apple creates headaches for competitors. Internal documents of a mobile phone maker seen by the BBC last week showed how worried this company was that an iPhone 5 could steal all attention from the forthcoming launch of its top-end Android smartphone.

Microsoft, meanwhile...

Amidst all the Android and iPhone frenzy, spare a thought for Microsoft. A year ago and to considerable acclaim the software giant launched an all-new mobile phone software, Windows Phone 7.

Microsoft is betting on a distinct user interface

The operating system broke new ground in terms of usability, with a fresh look and many clever little features that neither Google's nor Apple's developers had thought of. Considering this was version one of the software, it was surprisingly polished.

So far, Microsoft has had little commercial success in return for its efforts. But Microsoft hopes that it can still challenge both Android and iPhone. After ironing out a few software wrinkles it has just launched Windows Phone 7.5, also known as Mango.

It's a compelling offering. The software delivers a deep integration with social networks like no other phone. Short messages exchanged with a friend - whether on SMS, Facebook or Twitter - will show up in one thread chronicling the conversation, regardless of which service was used.

A contact stored on the phone shows not just address and phone number but the most recent Facebook, Twitter and LinkedIn status updates too. And the diary is easier to use than any other.

However, Microsoft's fresh assault on the smartphone market is slow out of the starting blocks.

Mango was presented to the public many months ago. A few handset makers have announced a handful of new Windows phones. The first HTC phones running Mango are only now - slowly - arriving in the shops. Microsoft's new best friend, struggling Finnish phone company Nokia, won't launch its first Windows phone before 26 October, at Nokia World in London.

Apple, in contrast, is set to bring the iPhone 4S to market in less than two weeks.

The ecosystem

As operating systems and mobile phone makers jostle for position (don't forget RIM's Blackberry, about to roll out a range of handsets with a new operating system) it may be neither clever software nor stunning hardware that decides who will win the smartphone war.

The clincher will be the services connected to smartphones. Just as Google uses Android to lure people into their ecosystem, from email to media storage to YouTube videos to documents, Apple tries to lock in its customers into the world of iTunes and iCloud services.

Surprisingly, it is Microsoft that is offering the most open mobile phone ecosystem right now.

Consumers should be able to cherish this fierce competition. They may not get the chance. As iPhones, Androids and other devices rush to market, the patent lawyers of all sides are gearing up for epic court battles over patents and protected designs.

Not all that we'll see presented on stage will reach consumers' hands.

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Online traders' 'refund failings'

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6 October 2011 Last updated at 12:15 GMT By Kevin Peachey Personal finance reporter, BBC News The test purchases were part of an EU-wide campaign to check consumer rights More than half of traders failed to give full refunds to customers who pulled out of online purchases during a cooling-off period, tests have shown.

Under consumer rights law, all costs - including delivery costs - should be refunded if consumers decide to cancel the contract in the allotted time.

Test purchasing by European authorities found that in 57% of cases, traders failed to reimburse delivery costs.

A BBC investigation highlighted the issue in December.

Online shopping

When buying from the internet, unlike in a shop, customers are unable to examine the goods before they buy them.

As a result, a cooling-off period is available to people shopping online. In the UK, shoppers have seven working days to return items bought on the internet that they do not want to keep. In some European countries it is longer.

There are a few exceptions, such as unwrapped CDs and perishable goods, but otherwise the money should be credited to the buyer's account as soon as possible and within 30 days at the latest.

Continue reading the main story In the UK, there is a cooling-off period of seven working days for unwanted itemsTraders should refund within 30 days, unless previously agreed otherwiseDelivery charges should also be reimbursedSome perishable goods such as foods and flowers are exemptRights for goods that are not of satisfactory quality are the same as the High Street - a refund, replacement or repairAny refund should include delivery costs incurred by the customer.

During a mystery shopping exercise by European authorities in 2003, these delivery costs were not reimbursed in 53% of cases.

But 305 tests earlier this year, by the European Consumer Centres' Network, found that this had increased to 57%, although refunds for the items themselves were paid in 90% of cases.

"This needs to improve in order to ensure a continuous positive development in cross-border e-commerce," a spokesman for the UK European Consumer Centre said.

In 7% of all the purchases made, the trader did not inform the customer about the price of the delivery costs at all.

Changes

Some results of the test purchases do make better reading for consumers.

For example, the delivery rate for items ordered online improved significantly compared with 2003, as had the number of items delivered within 14 days. There was also an increase in the number of websites offering information in more than one language.

Many of the current consumer rules operating in EU countries pre-date the widespread use of the internet by shoppers.

So MEPs have approved plans to update the rules, including a 14-calendar-day cooling-off period for online purchases.

Governments will have two years to implement the changes.

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Banks rally on rescue deal hopes

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26 September 2011 Last updated at 20:21 GMT Continue reading the main story Last Updated at 17:44 GMT

Market indexCurrent valueTrendVariation% variationEuropean bank shares have risen as investors react to the latest attempts to stabilise the eurozone debt crisis.

A number of measures are being discussed according to reports from the weekend's international meeting in Washington.

They are expected to involve a 50% write-down of Greece's massive government debt, the BBC's business editor Robert Peston says.

French and German bank shares were up 10% at one stage in Monday trading.

European governments hope to have measures agreed in five to six weeks, in time for a meeting of the leaders of the G20 group in Cannes at the beginning of November.

But EU officials in Brussels stress that they should not be seen as "a single grand plan", the BBC's correspondent Chris Morris says.

The measures being discussed are:

Institutions that have lent money to Athens writing off about 50% of the money they are owedThe size of the eurozone bailout fund, the European Financial Stability Facility (EFSF), increasing dramatically to 2 trillion euros (￡1.7tn; $2.7tn)Strengthening big European banks that could be hit by any defaults on national debt obligations.

However, on Monday evening AFP reported that German Finance Minister Wolfgang Schaeuble had told television news channel NTV that there was no plan to boost the size of the EFSF.

"We are giving it the tools so it can work if necessary," Mr Schaeuble was reported as saying.

"Then we will use it effectively but we do not have the intention of boosting its volume."

Pan-Europe gains

Uncertainty over how to tackle Greece's problems has led to some European bank shares losing half their value in recent months due to concerns about their holdings of Greek debt.

But on Monday, French banks, which are particularly exposed to Greece, rallied, with BNP Paribas and Societe Generale up 4% and 5.4% respectively, and Credit Agricole up 3.7%.

Continue reading the main story

Unless the banks are fixed, there will remain too big a risk that a financial crisis could turn the current global economic slowdown into something more akin to depression than recession”

End Quote Robert Peston Business editor, BBC News Germany's big banks were also up sharply. Allianz was up 10%, Deutsche Bank 8% and Commerzbank 7.7%. In the UK, Barclays rose 6.8% and RBS 3.3%.

The Frankfurt was up about 3% at close, and in Paris by about 2%. The UK's main index, the FTSE 100, was virtually unchanged.

US shares closed higher, with the Dow ahead by 2.5%, the S&P 500 by 2.3%, and the Nasdaq by 1.4%.

However, commodity prices were lower on remaining concerns that the eurozone crisis could affect the global economy.

Philip Tyson of brokerage MF Global told the BBC that the proposed bailout fund had to be at least 2tn euros.

He said: "Markets need confidence that the fund has the firepower to deal with the likes of Italy and Spain should contagion risks spread.

"It does need to happen, but there are big question marks about the detail, and exactly how it will happen. Time is running out."

Ben Critchley, a sales trader at spread betting group IG Index, said: "For now at least, it looks as if markets are giving some credence to a firm plan on how to tackle the debt crisis beginning to emerge.

"But if recent experience is anything to go by, this patience is unlikely to last too long if details are not forthcoming."

Key elements

The reports about the rescue proposals emerged from the annual meeting of the IMF in the US capital last week, attended by finance ministers from the G20 group of countries.

The package is expected to involve a quadrupling - from the current projected level of 440bn euros - in the firepower of the eurozone's main bailout fund, the EFSF.

Continue reading the main story

The problem, they said privately, was that ministers couldn't talk openly about a new solution to the crisis when the old one had not even been passed by national parliaments. This was a particular issue, naturally, for Germany.”

End Quote Stephanie Flanders Economics editor, BBC News It is not entirely clear how any expansion of the facility would be managed, but one suggestion is for the EFSF to guarantee the first part of any losses creditors sustain from a government defaulting on its debts, with the European Central Bank (ECB) providing an additional 1.5tn euros of loans.

The EFSF would take on the main risk of lending to governments struggling to borrow from normal commercial sources - governments like Italy.

It is also thought that private investors in Greek debt are likely to have to accept a 50% reduction in what they are owed, our editor says.

Eurozone leaders agreed a plan in July, which has yet to be ratified, that provided for a reduction in Greece's repayments to banks of about 20%.

European officials in Brussels stressed that their current focus was on getting measures, including changes to the EFSF, agreed back in July ratified by 17 national parliaments within the eurozone.

It was proving a difficult task, the BBC's Chris Morris says, to get these less far-reaching changes passed, with Germany one of three assemblies to vote this week.

The third element of the rescue plan envisages a strengthening of big eurozone banks, which are perceived to have too little capital to absorb losses.

'Critical days'

Commodity prices remained under pressure, pulled between relief that a eurozone deal could be nearer and worries that the global economy faces a downturn.

Continue reading the main story Oil prices fell sharply in early trading, but recovered with Brent crude up 60 cents at $104.57 a barrel and US light, sweet crude up 55 cents to $80.40 a barrel.

The stronger dollar, which rose around 0.2% against a basket of currencies, also weighed on oil prices as it makes dollar-denominated assets more expensive.

Gold fell 3.2% to $1,603.95 an ounce, continuing recent declines from record highs. Copper, which has already fallen, was down another 4%.

Senior commodities analysts Edward Meir, at brokers MF Global, said: "These are very critical days and weeks ahead, reminiscent very much of the touch-and-go situation we were in back in 2008.

"The key difference this time around is that it is countries and not companies that are in danger of going bust."

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Shares up on eurozone debt hopes

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6 October 2011 Last updated at 09:47 GMT EC President Jose Manuel Barroso has fuelled expectations that Europe is preparing an action plan Stock markets have been boosted by expectations that European 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.

More details of any action plan could come later at a European Central Bank press conference.

There have been a flurry of reports and comments in recent days that European authorities have negotiated plans to bolster banks and boost bailout funds.

On Thursday, Mr Barroso fuelled expectations further, telling Euronews TV that the EU executive was proposing "co-ordinated action" to the 27 European Union nations to bolster banks.

The intention was to "recapitalise banks and get rid of toxic assets they may have".

Continue reading the main story

You can see this as creeping progress towards putting adequate shock absorbers into the eurozone's financial system.”

End Quote Robert Peston Business editor, BBC News On Thursday afternoon, European Central Bank president Jean-Claude Trichet will lead a media briefing, which will come after the bank announces its decision on European interest rates.

Then German Chancellor Angela Merkel is due to hold talks in Berlin with Mr Trichet as well as the heads of the International Monetary Fund, the World Bank, the OECD and G20.

On Wednesday, Mr Merkel said she was in favour of a co-ordinated recapitalisation of European banks if that was deemed necessary.

Expectations that there will be action to bolster banks and boost European bailout funds began on Monday, when Olli Rehn, European commissioner for economic affairs, said there was "an increasingly shared view that we need a concerted, co-ordinated approach".

In an interview with the Financial Times, he said there was "a sense of urgency among ministers and we need to move on".

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VIDEO: Steve Jobs: Apple's driving force

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6 October 2011 Last updated at 03:56 GMT Help

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European financial tax 'bad idea'

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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.

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US durable goods slip in August

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

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

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

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

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

'Positive signals'

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

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

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

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

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

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Arsenal financial future 'secure'

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Arsenal moved from Highbury to Emirates Stadium in 2006 Chief executive Ivan Gazidis has said Arsenal's financial future is bright despite a fall in turnover and profit.

The Gunners reported group turnover for the year ending 31 May as ￡255.7m, down from ￡379.9m in 2010, while profit was also reduced from ￡56m to ￡14.8m.

Gazidis told the club website: "We are very secure - it's a good set of results again.

"This is a very solid, very healthy set of results and it gives us a good platform to move forward from."

Continue reading the main story

Arsenal's accounts do not include the ￡30m gained from the sale of Cesc Fabregas, the ￡24m received for Samir Nasri or the ￡7m paid by Manchester City for Gael Clichy

A reduced income from property sales at the Highbury redevelopment and increase in player wages have played their part in the drops, but the figures do not include the sales of midfielders Cesc Fabregas and Samir Nasri to Barcelona and Manchester City respectively.

"We didn't have the same kind of profit from player sales that we had in the previous season and that explains the slight reduction in profit," added Gazidis.

"We haven't seen the same kind of profits from the property side that we have seen in the past but that was entirely to be expected. Our property business is debt-free so any new sales of property do accumulate cash, which is very positive for the future."

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Italy's credit rating is slashed

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5 October 2011 Last updated at 06:40 GMT The Italian Prime Minister said he had been expecting the announcement from Moody's The Italian government's credit rating has been slashed by Moody's from Aa2 to A2 with a negative outlook.

The ratings agency blamed a "material increase in long-term funding risks for the euro area", due to lost confidence in eurozone government debts.

Despite Rome's low current borrowing needs, and low private-sector debt levels in Italy, Moody's said market sentiment had turned against the euro.

Prime Minister Silvio Berlusconi said the decision was expected.

"The Italian government is working with the maximum commitment to achieve its budget objectives," said Mr Berlusconi.

He said that a plan to balance the government's budget by 2013 had been approved by the European Commission.

Sell-off

The initial market reaction to the downgrade was muted.

The news broke half an hour after the close of trading on the New York Stock Exchange.

But after-hours trading in stock market futures suggested that at least one percentage point of a late 4% market rally may have been wiped off.

Asian trading was mixed, with stocks initially surging after a report in the Financial Times that EU finance ministers were considering a plan to recapitalise European banks.

Continue reading the main story

The downgrading by Moody's of Italy's credit rating could not have come at a worse time for the eurozone”

End Quote Robert Peston Business editor, BBC News In Japan, stocks on the Nikkei index lost early gains to close down 0.86%. South Korea's main market lost 2.33%. Australian shares ended 1.40% higher.

Stock markets in Hong Kong and mainland China were closed for a holiday.

Oil prices were trading higher in Asia on hopes that efforts by European authorities to contain the eurozone crisis would prevent the world economy from slowing.

Brent crude for November delivery bounced back above $100 a barrel, rising $1.83 to $101.62.

Slow response

Analysts say Italy's downgrade is likely to be followed by similar cuts in the credit rating of Italy's banks, which would put severe pressure on their ability to borrow.

"This downgrade will make it even harder for Italy to borrow," says BBC business editor Robert Peston. "However, that is not the worst of it.

"If Italy is looking like a more risky place to lend, its banks... will find it harder and more expensive to borrow. The [eurozone] banking crisis will be exacerbated."

The rationale for Moody's downgrade will also be worrying for other eurozone governments, such as Spain, whose borrowing costs have also risen like Italy's as markets have lost confidence in their creditworthiness.

Moody's also raised warnings about Italy's growth outlook, citing structural economic problems in Italy, as well as the global economic slowdown.

Another problem noted by the rating agency was what it called political and economic "implementation risks".

"The question is, if [eurozone governments] will move fast enough... to really put in place a credible solution," says Robert Peston.

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.An expansion of the eurozone's bailout fund already approved by the euro's 17 governments in July - which is now seen by markets as inadequate - has still yet to be ratified by all the national parliaments.

The slow political response to the emerging crisis, necessitated by the European Union's institutional set-up, has been criticised by many commentators, including European Commission President Jose Manuel Barroso.

In hock

However the key issue for Moody's was the change in the market's attitude towards eurozone government debts.

The Italian government has for several years earned more in tax revenues than it spends. However, the government also has a large outstanding debt - equivalent to nearly 120% of GDP.

The government relies heavily on the markets' willingness to relend these debts as they come due, and to lend it the cost of meeting its interest payments.

Moody's said that Italy could be further downgraded to "substantially lower rating levels" if a further deterioration in investor sentiment made it even harder for the country to raise cash from the markets.

Italy's cost of borrowing rose sharply over the summer on market fears that a slowdown in Italian growth could make existing debts unsustainable.

That prompted the European Central Bank to intervene by buying up Italy's debts - a controversial policy in Germany. But despite the ECB's action, Italian borrowing costs have begun to creep up again in recent weeks.

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Climate 'could hit Canadian GDP'

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29 September 2011 Last updated at 23:19 GMT Current federal estimates say climate change will cost Canada about $5bn a year by 2020 Negative effects of climate change could cost Canada the equivalent of 1% of its GDP by 2050 and 2.5% by 2075, a government-backed report has said.

Damage could reach C$41bn ($20bn; ￡27bn), estimates say, depending on global emissions, the economy and population growth.

Higher temperatures could kill forests, flood low-lying coastal areas and spread disease, the report said.

The panel denied that Canada would gain from global warming.

"Climate change presents a growing, long-term economic burden for Canada," said Canada's National Round Table on the Environment and the Economy (NRTEE).

'Strong, stable, responsible'

In a 162-page report, measures proposed included enhanced forest fire protection, pest control and an effort to foster the growth of climate-resilient trees.

The panel also recommended limiting construction in in low-lying coastal areas vulnerable to flooding, and developing technologies to limit pollution and slow ozone accumulation.

It said climate-related costs to Canada could increase from C$5bn in 2020 to between C$21bn and C$43bn by 2050.

These figures depended on co-ordinated global action to limit warming to 2C by 2050, the report said.

The findings of the panel were seized on by opposition politicians who believe the Conservative government should be doing more to confront the threat of global warming.

"Our coastal communities, our forestry industry, and the health of Canadians will all suffer unless we take action right now," said Laurin Liu, of the New Democrats, Canada's main opposition party.

"This out-of-touch government has produced no plan to deal with the impact of climate change," he added.

But Environment Minister Peter Kent said Canada needs "a strong, stable, environmentally responsible ... government to take care of the environment, and that is exactly what we are doing".

The report also said Canada had much to gain from an international, Kyoto-style treaty focussing on cutting carbon emissions beyond 2012.

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VIDEO: The future for in-flight movies

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Keith Wallace reports on how technology could bring about major changes to in-flight entertainment in the skies.

Airlines are looking at options to link your phone or laptop to the aircraft's entertainment system or the internet and touch-screen ordering for your drinks and snacks on board.

Get in touch with Fast Track via e-mail or Facebook.

Watch Fast Track on the BBC World News channel on Saturdays at 0430, 1230 and 1930 GMT or Sundays at 1930 GMT.

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VIDEO: Thailand launches new rice price policy

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7 October 2011 Last updated at 01:47 GMT Help

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Apple unveils refreshed iPhone 4S

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4 October 2011 Last updated at 23:38 GMT Rory Cellan-Jones looks at Apple's new iPhone 4S

Apple has unveiled the latest iteration in its iPhone range, but there was no sign of the widely rumoured iPhone 5.

The iPhone 4S, as the model will be known, boasts an improved camera and significantly extended battery life.

It will run the latest iOS5 operating system, which is set for release on 12 October.

The event was the first major announcement for new boss Tim Cook who took over from Steve Jobs in August.

The iPhone 4S, which will go on sale on 14 October, will be available in 16GB, 32GB and 64GB models - in both black and white.

It has the same look and feel as the existing iPhone 4 which was launched 15 months ago.

However, Apple said that updates to iOS meant the phone would boast some "200 new features".

Continue reading the main story Shares in Apple fell by almost 5% within minutes of the eagerly anticipated launch, with analysts saying that investors and Apple fans had expected the latest version to be a more radical improvement over its predecessor.

However, the company's shares later regained most of their losses to close down just 0.6%, albeit underperforming the NASDAQ index as a whole.

Voice control

Among the additions is an "intelligent assistant" that allows users to ask questions aloud and receive detailed answers back.

Siri, which began life as a third-party app, was purchased by Apple in 2010 but has yet to appear within its software.

Luke Peters, editor of gadget magazine T3, said that the software announcements would do just enough to keep Apple fans interested in the face of strong challenges from rival smartphone manufacturers.

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You could sense a great wave of disappointment rolling through the Apple community.

Why rush out and buy the new, new thing if it looks just like that old phone that's been around for more than a year?

"Some people were looking for a brand new phone and they haven't got that today, so some will be disappointed," he told BBC News.

"But with the update to iOS5 and Siri that could be enough to sway people to make the investment."

Disappointment

Other industry watchers were less charitable about the iPhone refresh, and the non-appearance of the iPhone 5.

Gareth Beavis, phones editor at TechRadar said that the new hardware would leave many people underwhelmed.

"It was quite disappointing. I think there is going to be a lot of anger from users expecting something big bold and quite exciting after a long time of waiting from the iPhone 4.

"People will buy this in their droves, but Apple has missed a trick by just releasing the exact same phone again with marginally upgraded specs."

Details of the new phone were unveiled by Apple's Philip Schiller

For Apple's new chief executive, the event was as much about making a statement about his leadership as it was new products.

Tim Cook had previously acted as interim boss, looking after the company while Steve Jobs was on sick leave.

Unlike his charismatic predecessor, Mr Cook left the biggest announcement of Tuesday's event to a colleague - marketing boss Phil Schiller.

"Maybe he wants to bring other people to the forefront by letting others speak on his behalf," said Gregory Roekens, chief technology officer at PR firm Wunderman.

"But in terms of style, it was underwhelming. People were expecting iPhone 5, but instead it's almost fixing the weaknesses the previous phones had.

"It will be interesting to see how people react to that."

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Agency workers set for new rights

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29 September 2011 Last updated at 23:05 GMT Some workers only remain in jobs on a short-term basis Agency workers are set to gain additional rights in pay and benefits under new rules that come into force on Saturday.

Workers will gain similar rights to full-time staff once they have completed 12 weeks of service doing comparable work.

Business groups have suggested the changes could cost firms up to ￡2bn a year.

There are an estimated 1.4 million agency workers in the UK.

Rights

Various legal protections are already in place for agency workers, as they are with full-time and part-time staff. They include the minimum wage and basic holiday rights.

Under the new European rules, which come into force in the UK on 1 October, agency workers will be allowed to use some of the same facilities as staff.

For example, from the first day of employment, they can use a creche, canteen or transport services. They will also be entitled to information about internal vacancies at the company they are working for, and to be given the opportunity to apply for them.

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If employers do not get their house in order the financial implications could be serious”

End Quote James Wilders Dickinson Dees After 12 weeks in the same role with the same employer, agency workers will be entitled to the same employment and working conditions as permanent staff. These include pay, overtime, shift allowances, holiday pay and bonuses not attributable to individual performance, as well as maternity rights.

However, agency workers will not be entitled to all the same benefits, such as occupational sick pay, redundancy pay and health insurance.

The rules are being brought in after long negotiations between unions and the government.

A survey of agency workers for the TUC found that some felt they were missing out on holidays, pay and overtime payments.

However, some business groups such as the Forum for Private Business suggested that the new rules would make the labour market less flexible and that job creation and recruitment would suffer.

Cut-off

There have been fears that some agency workers will simply be laid-off after 11 weeks so they do not benefit from the increased rights.

A company must not employ these workers again for another six weeks.

However, if a pattern emerged of an employer repeatedly only having 11-week jobs, then an individual could take a case to tribunal where fines of up to ￡5,000 could be handed out.

"These penalties are for each individual agency worker taken on. If employers do not get their house in order the financial implications could be serious," said James Wilders, from Dickinson Dees law firm.

Options for employers could include creating its own bank of temporary staff. They could offer a cash sum which they felt covered the extra benefits that should be available.

Alternatively, workers could be employed as a member of permanent staff by an agency, which paid individuals each month, then offered them to employers.

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IBM's bet on data-centric computing

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3 October 2011 Last updated at 23:01 GMT IBM's Watson computer was a proof of concept, says Dr Menon Each week we ask high-profile technology decision-makers three questions.

This week it is Dr Jai Menon, the chief technology officer and vice-president for technical strategy for IBM's Systems and Technology Group.

He holds 52 patents and is arguably most famous for his contribution to the Raid storage technology. Computing giant IBM has more than 426,000 employees, generating an annual turnover of just under $100bn (￡64.6bn) and profits of $14.8bn.

What's your biggest technology problem right now?

There are always multiple problems, but one problem that we are focused on is providing our customers with IT solutions that are flexible to their needs, but easily consumable.

Our customers have many different kinds of workloads they have to run, for example transaction-based systems that have to serve thousands or millions of users at the same time, 24/7.

Or analytics systems with fewer users that require deep complex computation. The challenge is how do you satisfy all these different kinds of tasks?

The are two different approaches: You can standardise it all on one kind of computer, and use that for all their business tasks. But that doesn't really work: it's like saying 'buy just one type of car', and hope it meets the needs of a small family, and doubles up as a pick-up truck, a big van or an MPV [people carrier].

So the other approach is to realise that you have lots of different types of workload, and you buy systems that are optimised for these tasks. That's clearly preferred to the first approach. The challenge over time is that with lots of different workloads, you end up with many kinds of computers, and then there's the challenge to make that consumable.

We are working on a technical approach that will create a system that has all the pieces that make up a computer system. You build this system with different kinds of processors, and there are memory and storage and networking elements, and then you have very sophisticated software that comes with the system. And the software is able to construct the kind of computer you need.

So if you need a lot of computing power, medium-sized storage and not a lot of memory, that's what the system provides. And once the task is running, and you need more memory or computing power, then the system will make that choice for you.

And when your workload goes away, you simply deconstruct the system.

This is not just virtualisation, where you have one kind of standardised computer, with a standardised processor and a certain amount of storage and memory.

You need to be able to assign more than what a single computer can do.

This is very much customer driven. What our customers are telling us is: 'Come up with newer better computers, that take up less floorspace and are faster.'

People have amazing amount of workload, and require lots of different virtualisation environments, but they also have too many different systems.

So I've got to let customers reuse their existing assets, skills and software.

The software is key - it's a universal resource manager.

What's the next big tech thing in your industry?

The next big thing in our industry are new kinds of computers. I call them data-centric computers, because right now our computers are very processing-centric computers.

These new computers can extract and find information in data that can aid human cognition. When we created [supercomputer] Watson, it combined hardware and deep analysis software that we designed to work together.

We are moving away from computers that compute, to computers that can extract information from the huge amounts of unstructured data - because every two days we generate more data than all data from the dawn of civilisation until 2003.

Watson was just an example to prove the point. There are very interesting business problems out there, and rather than having to be programmed these computers learn as they go along.

They are data-centric rather than compute-centric.

For example, they could work as a physician's assistant, providing all the knowledge, the data about the patient itself, manage the doctor's notes.

Right now, all we do is Google a medical problem, and we get back 20 documents, and we have to go through them and rate them and find the answer.

In the future, the computer will give you an answer with a probability to go with that, and that's so much better than what we do today.

That to me is the next big technology thing. And it also applies to government. Computers could help governments find answers to tax issues, zoning laws, financial issues.

From a technology point of view, we still need a few things that to support this - more memory in the system, and solid state memory and storage, and obviously the deep software.

This is not Skynet [as described in the Terminator movies]. People always worry about new technology. When pocket calculators were introduced, people said we would forget to multiply; when computers came they said we would forget how to spell.

In reality all these computers are assistants, and they save us time so that we can focus on doing the things that only humans can do.

Pilots, for example, have always had things to helped them fly a plane. But at the end of the day I would not fly without a real human on-board.

What's the biggest technology mistake you've ever made - either at work or in your own life?

This is probably an unusual kind of answer, but the timing of innovation is really important. My experience is, as innovators, we are always frustrated if we are too late.

We say: "I had the idea first, why did product development not move fast enough?" But my biggest mistake was in pushing an innovation too early to market, and I've learned from that.

What I've learned is that you really have to prepare the market. You have to shape the market, prepare your customers, create a standard, get enough people to buy into the standard.

And if you introduce your product too early and you haven't done that, then your product doesn't do very well. You just create a vicious circle, because you don't have the profits from the product to recycle and improve and innovate the product.

And then, once the market is ready and prepared, then you will be hesitant because you tried this once before and it didn't work. Then it gets very difficult to reenter the market.

For example in the storage space, we developed this IP [internet protocol] driven storage attached to the network. We shipped it in 2001, and it didn't do so well in the market.

This is now a $3bn market - 10 years later it's a great story, but by pushing it too soon, maybe five years too soon, it soured our executives as to whether this really was a good idea.

And then it is hard to catch up later.

Timing is everything. You can be wrong on both sides, too early and too late, and both are bad.

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Battle of the knowledge superpowers

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28 September 2011 Last updated at 11:04 GMT By Sean Coughlan BBC News education correspondent "Knowledge clusters" are being built in France to kick start hi-tech industries Knowledge is power - economic power - and there's a scramble for that power taking place around the globe.

In the United States, Europe and in rising powers such as China, there is a growth-hungry drive to invest in hi-tech research and innovation.

They are looking for the ingredients that, like Google, will turn a university project into a corporation. They are looking for the jobs that will replace those lost in the financial crash.

Not to invest would now be "unthinkable", says Maire Geoghegan-Quinn, the European Commissioner responsible for research, innovation and science, who is trying to spur the European Union to keep pace in turning ideas into industries.

She has announced ￡6bn funding to kick-start projects next year - with the aim of supporting 16,000 universities, research teams and businesses. A million new research jobs will be needed to match global rivals in areas such as health, energy and the digital economy.

'Innovation emergency'

Emphasising that this is about keeping up, rather than grandstanding, she talks about Europe facing an "innovation emergency".

"In China, you see children going into school at 6.30am and being there until 8 or 9pm, concentrating on science, technology and maths. And you have to ask yourself, would European children do that?

Maire Geoghegan-Quinn: "The knowledge economy is the economy that is going to create the jobs"

"That's the competition that's out there. We have to rise to that - and member states have to realise that the knowledge economy is the economy that is going to create the jobs in the future, it's the area they have to invest in."

But the challenge for Europe, she says, is to be able to commercialise ideas as successfully as the United States, in the manner of the iPhone or Facebook.

The commissioner says that she was made abruptly aware of the barriers facing would-be innovators at the Nobel Prize awards ceremony dinner.

Instead of basking in the reflected glory of a prize winner funded by European grants, she said she had to listen to a speech attacking the red-tape and bureaucracy - and "generally embarrassing the hell out of me".

Determined that this would never happen again, she is driving ahead with a plan to simplify access to research funding and to turn the idea of a single European research area into a reality by 2014.

With storm clouds dominating the economic outlook, she sees investing in research and hi-tech industries - under the banner of the "Innovation Union" - as of vital practical importance in the push towards creating jobs and growth.

"We have to be able to say to the man and woman in the street, suffering intensely because of the economic crisis: this is a dark tunnel, but there is light at the end and we're showing you where it is."

Global forum

There has been sharpening interest in this borderland between education and the economy.

This month the Organisation for Economic Co-operation and Development (OECD) staged its inaugural Global Forum on the Knowledge Economy.

Continue reading the main story

GIANT - the Grenoble Innovation for Advanced New Technologies - is an ambitious French example of a knowledge cluster, combining academic research and commercial expertise.

The classic examples have been in California and Boston in the US, and around Cambridge in the UK. Purpose-built centres include Education City in Qatar, Science City in Zurich and Digital Media City in Seoul.

There will be 40,000 people living, studying and working on the GIANT campus. Centres of research excellence will be side-by-side with major companies who will develop the commercial applications. This includes nanotechnology, green energy and the European Synchotron Radiation Facility (pictured above). A business school, the Grenoble Ecole de Management, is also part on site.

This hi-tech version of a factory town will have its own transport links and a green environment designed to attract people to live and stay here.

This was a kind of brainstorming for governments living on a shoestring.

The UK's Universities Minister, David Willetts, called for a reduction in unnecessary regulation, which slowed down areas such as space research.

The French response has been to increase spending, launching a ￡30bn grand project to set up a series of "innovation clusters" - in which universities, major companies and research institutions are harnessed together to create new knowledge-based industries.

It's an attempt to replicate the digital launchpad of Silicon Valley in California. And in some ways these are the like mill towns of the digital age, clustered around science campuses and hi-tech employers.

But the knowledge economy does not always scatter its seed widely. When the US is talked about as an innovation powerhouse, much of this activity is based in narrow strips on the east and west coasts.

A map of Europe measuring the number of patent applications shows a similar pattern - with high concentrations in pockets of England, France, Germany and Finland.

There are also empty patches - innovation dust bowls - which will raise tough political questions if good jobs are increasingly concentrated around these hi-tech centres. The International Monetary Fund warned last week that governments must invest more in education to escape a "hollowing out" of jobs.

Speed of change

Jan Muehlfeit, chairman of Microsoft Europe, explained what was profoundly different about these new digital industries - that they expand at a speed and scale that would have been impossible in the traditional manufacturing industries.

Governments trying to respond to such quicksilver businesses needed to ensure that young people were well-educated, creative and adaptable, he said.

As an example of a success story, Mr Muehlfeit highlighted South Korea. A generation ago they deliberately invested heavily in raising education standards. Now, as a direct result of this upskilling, the West is importing South Korean cars and televisions, he said.

Continue reading the main story

The triangle of innovation, education and skills is of extreme importance, defining both the problem and the solution”

End Quote Jose Angel Gurria OECD secretary general Perhaps it is not a coincidence that South Korea's government has its own dedicated knowledge economy minister.

Robert Aumann, a Nobel Prize winner in economics, attending the OECD event, also emphasised this link between the classroom and the showroom. "How do you bring about innovation? Education, education, education," he said.

But this is far from a case of replacing jobs in old rusty industries with new hi-tech versions.

Gordon Day, president of the Institute of Electrical and Electronics Engineers, the US-based professional association for technology, made the point that digital businesses might generate huge incomes but they might not employ many people. In some cases they might only have a payroll one tenth of a traditional company of a similar size.

It's an uncomfortable truth for governments looking for a recovery in the jobs market.

Degrees of employment

But standing still isn't an option.

Figures released from the OECD have shown how much the financial crisis has changed the jobs market.

Class of 2011 in Shanghai: China now has the second biggest share of the world's graduates

There were 11 million jobs lost, half of them in the United States, and with low-skilled workers and manufacturing the hardest hit. If those losses are to be recovered, it is going to be with higher-skilled jobs, many of them requiring degrees.

But graduate numbers show the shifting balance of power.

From a standing start, China now has 12% of graduates in the world's big economies - approaching the share of the UK, Germany and France put together. The incumbent superpower, the United States, still towers above with 26% of the graduates.

South Korea now has the sixth biggest share of the world's graduates, ahead of countries such as France and Italy.

It means that the US and European countries have to compete on skills with these rising Asian powers.

But the US university system remains a formidably well-funded generator of research. A league table, generated for the first time this month, looked at the global universities with research making the greatest impact - with US universities taking 40 out of the top 50 places.

Their wealth was emphasised this week with the announcement of financial figures from the two Boston university powerhouses, Harvard and MIT, which had a combined endowment of ￡27bn.

"The triangle of innovation, education and skills is of extreme importance, defining both the problem and the solution," said the OECD's secretary general, Jose Angel Gurria.

"It's a world of cut-throat competition. We lost so much wealth, we lost so many exports, we lost so much well-being, we lost jobs, job, jobs," he told delegates in Paris.

"We must re-boot our economies with a more intelligent type of growth."

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iPad 'gains 80% of tablet market'

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

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

It described Apple as a "formidable market leader".

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

'Strong brand'

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

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

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

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

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

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

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

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

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

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

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

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

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VIDEO: Cargill chief executive on its success

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29 September 2011 Last updated at 08:43 GMT Help

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High Street bookshops in decline

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4 October 2011 Last updated at 01:42 GMT The Book Warehouse saved Notting Hill's Travel Bookshop earlier this month The number of bookshops on UK High Streets is in steady decline, according to The Booksellers Association.

Membership of the body, which represents 95% of booksellers in the UK and Ireland, has continued to fall over the last six years.

Since 2006, the total number of members, not including supermarket outlets, has fallen by 20%.

Independent bookshop membership has fallen by over a quarter during the same period.

Chief executive officer Tim Godfray has called for the government and publishers to step in to stop the decline.

"At a time when literacy is an issue and libraries are under threat from government cuts, we need to build a coalition of publishers, government and consumers to provide opportunities for the passionate and creative entrepreneurs who run bookshops on our High Streets to thrive," he said.

In 2006, there were 4495 outlets who held memberships with the Booksellers Association, including 1483 independents.

By June this year, the total number had fallen to 3683, while independents dropped to 1099.

Last year, 50 new independent bookshops opened across the UK but 72 closed, confirming an overall decline for the third year running.

One of the most high profile shops to close this year was The Harbour Bookshop in Dartmouth, founded by the son of Winnie the Pooh author AA Milne in 1951.

In a recent Booksellers Association survey, the top three issues concerning shop owners that the government could address were the cost of rates, parking and planning.

"This is not just an issue for our members; it's also about preserving the retail diversity of our town centres," said Mr Godfray.

The rise of the e-book has also been blamed, an issue which the government can do little about.

Sales of e-books increased by 318% in 2010 and many predict that at least 50% of all books sold within 10 years will be digital downloads.

Book retailers have also faced increasing competition from online retailers.

Spending on printed books fell by 4% in August this year, with sales dropping to a seven-year low for the month, according to sales analysts Neilsen BookScan.

Yet physical non-fiction book sales were up 3% on this time last year, with significant gains for some genres such as cookery and fitness.

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King fears crisis is 'worst ever'

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7 October 2011 Last updated at 04:13 GMT Mervyn King: 'Quantitative easing will work'

Bank of England governor Mervyn King has said this financial crisis could be the worst the UK has ever seen.

His comments came after the Bank authorised the injection of a further ￡75bn into the economy through quantitative easing (QE).

Explaining the move Sir Mervyn told Sky News: "This is the most serious financial crisis we've seen at least since the 1930s, if not ever."

The Bank has already pumped ￡200bn into the economy.

It has done this by buying assets such as government bonds, in an attempt to boost lending by commercial banks.

Sir Mervyn said: "We're having to deal with very unusual circumstances and to act calmly and do the right thing. The right thing at present is to create some more money to inject into the economy."

The Bank's Monetary Policy Committee has been split for months over whether the UK needs a boost to the economy through QE, an increase in interest rates to stave off inflation - which at 4.5% is well over double its target - or to leave things as they are.

Only one member, Adam Posen, has consistently pushed for more QE.

Slow money

Sir Mervyn said the economic landscape was unfamiliar and the world had changed in the past three months and so had the policy response necessary.

He said the amount of money in the economy was not growing quickly enough.

Sir Mervyn also said he could not rule out a further bout of QE.

On Wednesday, data showed the UK economy grew by 0.1% between April and June, which was less than previously thought.

"The deterioration in the outlook has made it more likely that inflation will undershoot the 2% target in the medium term.

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 CBI and the British Chambers of Commerce (BCC) business groups welcomed the Bank's move to expand the QE programme to ￡275bn, but said that on its own, its impact would be limited.

"This measure will help support confidence, but we need to recognise that its impact on near term growth prospects is likely to be relatively modest," said Ian McCafferty, the CBI's chief economic adviser.

"Only once the turmoil in the eurozone is resolved will confidence be fully restored."

'Radical'

David Kern, chief economist at the BCC, said: "Higher QE on its own is not enough and we urge the MPC [Monetary Policy Committee] to look at other radical methods.

"There is a strong case for the MPC to help boost bank lending to businesses by immediately raising its purchases of private sector assets."

However, the National Association of Pension Funds (NAPF) is calling for an urgent meeting with the pensions regulator to discuss ways of protecting UK pension funds from the negative effects of QE.

QE tends to push down long-term bond yields, therefore reducing the return on the investments made by pension schemes.

"Quantitative easing makes it more expensive for employers to provide pensions and will weaken the funding of schemes as their deficits increase," said Joanne Segars, chief executive of the NAPF.

Complementary actions Continue reading the main story

If you're not sure of the quality of your ammunition, it's best to fire first. Some will see that as the explanation for the slightly early launch of QE2 from the Bank of England”

End Quote Stephanie Flanders Economics editor, BBC News Mervyn King wrote to the chancellor earlier on Thursday, setting out the MPC's case for expanding the asset purchasing programme.

In his letter of response, in which he authorised the move, Chancellor George Osborne said: "I agree that an increase in the ceiling would provide the MPC with scope to vary the stance of monetary policy to meet the inflation target."

In his speech to the Conservative Party conference earlier in the week, Mr Osborne said that the Treasury would look into "credit easing" - a way to underwrite loans to small businesses who are struggling to get credit now.

He confirmed this in his letter to Mr King: "Given evidence of continued impairment in the flow of credit to some parts of the real economy, notably small and medium-sized businesses, the Treasury is exploring further policy actions. Such interventions should complement the MPC's asset purchases."

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VIDEO: iPhone 5 'critical' for Apple

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4 October 2011 Last updated at 02:20 GMT Help

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IEA urges fossil fuel aid cuts

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4 October 2011 Last updated at 14:33 GMT Data suggests roughly half all fossil fuel subsidies are spent on oil products The International Energy Agency (IEA) estimates governments spent $409bn (￡266bn) on fossil fuel subsidies in 2010.

This figure is a 36% rise on the previous year. Support for oil products represented almost half of the total.

The IEA warns the aid is likely to increase to $660bn (￡430bn) by 2020 unless action is taken.

The agency claims subsidies are inefficient and encourage wasteful energy use.

It says efforts to artificially cut costs encourage volatile price swings because they blur market signals. As a result it says they often fail to help the poorest households they are targeted at.

The IEA says phasing out the payments should make renewable energy sources, such as wind power, become more competitive. It says that would stimulate investment in the sector and create new jobs.

It says subsidy cuts would also encourage consumers and businesses to become more energy efficient.

Tracking the subsidies

To make the right choices the IEA says governments need access to data to help them work out the implications of changes in policy.

The Organisation for Economic Co-operation and Development think tank is helping make such information available. It has begun compiling an inventory of more than 250 different mechanisms used by its members to support fossil fuel production and use.

It says the research will help states assess each others' efforts to make reforms.

For example, it gives Germany's pledge to cut support to its hard-coal mining industry by 2018, and Mexico's attempt to limit subsidies by targeting them directly to its poorest households.

The IEA and OECD suggest that by following their lead other countries can also cut costs at the same time as stimulating growth and employment.

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Chelsea make stadium shares bid

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

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

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

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

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

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

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

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

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

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

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

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

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AUDIO: Autonomy due to decide on HP bid

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3 October 2011 Last updated at 11:33 GMT Help

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Qantas buys 110 Airbus aircraft

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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.

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Drivers 'cut petrol use by 15%'

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4 October 2011 Last updated at 23:18 GMT By Simon Gompertz Personal finance correspondent, BBC News The fall in petrol sales cost the Treasury nearly ￡1bn over the six months to June, the AA reckoned Drivers have cut their petrol consumption by more than 15% since the credit crunch and the recession.

The AA has calculated that petrol sales in the first six months of 2011 were 1.7bn litres less than in the same period three years ago.

The AA says the drop in petrol sales is a direct result of record fuel prices.

Many drivers are struggling to make ends meet in any case, so the high cost of petrol leaves them with no option but to try to use less.

And businesses have been cutting back as well.

The cut in fuel purchases, comparing the first six months of this year with pre-recession levels, is equivalent to 40,000 delivery rounds by fully-laden petrol tankers.

One result has been lower emissions of potentially damaging exhaust fumes.

Another, says the AA, is that the fall in sales has deprived the Treasury of nearly ￡1bn in fuel duty between January and June this year.

And while supermarkets have attracted drivers looking for bargain fuel, hundreds of other petrol stations have gone out of business.

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Fears over debt Chinese surface

October 6, 2011, last updated 04: 28 GMT China market with deep pockets could see slow growth and buoyant, China touted as a White Knight in the world.

But fears are growing that the country can meet its debt crisis as its economy and signs of a slowdown.

Prime weekend urged stronger financial support for small businesses that are missing.

Its a conversation between reports many factories of the private sector are facing bankruptcy due to tightening credit, informal lending operations.

In the eastern city of Wenzhou, a fifth of small businesses to midsize, 360,000 city stops due to lack of cash, reported by China's official Xinhua News Agency on Thursday.

"Efficient means must be taken to contain the trend of usury, crack on illegal fund-raising and handle correctly the problem of collateral, lack of capital to prevent risks from spread and develop regional scale," said Mr. van when visiting the city.

According to media reports, more than 80 businessmen fled town bakpa loans taken from underground banks, owner of a shoe one jumped off a building and killed himself.

' Time bomb '

Continue reading the main story

we take informal lending market most likely short-term time bomb of China's economy, "

end quote Dong Tao, Credit Suisse economists believe it could be the start of a wave of Corporate bankruptcies.

A central concern of China loan informal or shadow banking market-rich individuals and businesses that offer loans at interest rates spanning from 14% to 70%.

Companies and entrepreneurs have turned in this underground, with Chinese banks tightening lending as part of the Government's fight against inflation.

Credit Suisse says it sector statistics was rare, but as total 4 trillion yuan ($ ￡ 627bn; 406bn) is equal to 8% of the formal banking sector-and loans may increase by 50% per year.

He estimates that 60% of informal loans to property developers have with the rest going to other small businesses that need loans bridge.

"We consider formal lending market most likely short-term time bomb of China's economy," Tao Dong, Asia Economist at Credit Suisse, said the report.

"Beijing take decisive measures to deal with active, problem, or the credit crisis is species emerge in our opinion," he says.

Default swaps

Fears of economic slowing down in China has also fuelled a rise in trade of credit default swaps are financial instruments which insure against-risk of debt defaults.

The net value of credit default swaps outstanding bahov Chinese Government rose to US $ 3bn, compared to $ 6bn. two years ago, the Financial Times reported on Thursday.

Investors are worried that China's economy could have a "hard landing" slowed suddenly after years of blistering growth.

The property market is considered to be particularly vulnerable, with home prices soaring over the past two years.

The State raised interest rates three times so far this year and ordered banks to increase their reserves and six times during the same period.

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Indian summer 'sparks cash spree'

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4 October 2011 Last updated at 11:05 GMT Record temperatures were recorded for October in England More money was withdrawn from UK cash machines last Friday than on any other day so far this year, thanks to the hot weather, the Link network has said.

Some ￡577m was taken out from Link's machines that day as daytrippers prepared for the warm weekend, it said.

This was the highest amount withdrawn since Christmas Eve of last year, said the company.

Temperatures in England reached record levels for October, with the mercury hitting 29.9C (85.8F).

Cash spending

There are 64,000 cash machines connected to the Link network in the UK - that is nearly all that exist across the country. The latest figures do not include withdrawals when a customer used their own bank's ATM, so represents about 65% of total withdrawals.

Under this measure, the ￡577m withdrawn on 30 September was 14% higher than the amount taken out of cash machines on the same day a year earlier.

The cash spree - and the hot weather - continued through the weekend. The ￡252m withdrawn on Sunday was 11% more than a year earlier.

"The good weather really seems to have encouraged people to withdraw cash in preparation for increased spending over an unusually sunny weekend - confirmation that the right combination of feel good factors can boost short term spending and that cash is a very popular way of paying for these kinds of goods and services," said John Howells, chief executive of Link.

Pay day

Other factors behind the peak may include consumers choosing cash over cards when buying things outdoors, and that more people were in the UK enjoying the sunshine than would have been the case during the summer holiday season when many families go abroad.

A week ago, some retail analysts suggested that the unseasonal weather could hit early sales of autumn fashions.

Friday lunchtimes are commonly the most popular time of the week for cash machine use, with consumers preparing for weekend spending. Last Friday came at the end of the month, at a time when many workers are paid.

Previous busy times this year included the Thursday before the Royal wedding and long bank holiday weekend.

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Supermarket 'law shops' to open

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

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

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

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

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

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

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

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

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

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

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

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

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Abramovich 'good at psychology'

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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.

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Eurozone manufacturing contracts

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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.

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Tributes flood in for Steve Jobs

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

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

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

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

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

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

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

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

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

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

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

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

Continue reading the main story Peter Jackson BBC News, London

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Face of Apple

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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