New fees for tribunals from 2013

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3 October 2011 Last updated at 14:33 GMT Employees will have to work for longer before being able to go to a tribunal A fee for bringing an employment tribunal will be charged for the first time from April 2013, Chancellor George Osborne has announced.

There will be a refund for any individual who wins their case.

The amount that will be charged and how it should be paid will be subject to consultation starting by the end of November.

There is currently no fee for an applicant who wants to make an employment tribunal claim.

The low-paid, or those without an income, may also have the fee waived or reduced at the start of the process, under the new scheme.

"We are ending the one way bet against small businesses," Mr Osborne told the Conservative conference in Manchester.

Timescale

The chancellor also confirmed that, from April 2011, the qualifying period for a claim for unfair dismissal will be that the individual must have been in the job for at least two years.

At present they only need to have been working for one year.

"We respect the right of those who spent their whole lives building up a business, not to see that achievement destroyed by a vexatious appeal to an employment tribunal. So we are now going to make it much less risky for businesses to hire people," Mr Osborne said.

Last year there were 236,000 employment tribunal claims - of which only some were unfair dismissal claims, with an average award for successful complainants of ￡8,900.

Under Mr Osborne's plan, workers will still be able to take action immediately if they suffer discrimination, but by reducing the risk of tribunals for unfair dismissals the government hopes bosses will feel more confident about hiring people.

The GMB union has criticised the plan.

"The very notion that reducing the rights of workers of between 12 months and two years service to bring unfair dismissal claims will create a single new job is quire frankly absurd. Job creation is not the real reason the Tory party want to take away these rights," said Paul Kenny, general secretary of the GMB.

TUC general secretary Brendan Barber said the move was a "charter for bad bosses".

Abandoned

However, business lobby the CBI, welcomed it.

"We have been urging the government to do everything it can to make it easier for firms to grow and create jobs, and this will give employers, especially smaller ones, more confidence to hire," said director general John Cridland.

In 2010-11 the cost to the taxpayer of running employment tribunals and the Employment Appeal Tribunal in England, Wales and Scotland was more than ￡84m, according to the Ministry of Justice.

The Treasury said that more than 80% of applications made to an employment tribunal did not result in a full hearing.

Almost 40% of applicants withdrew their cases, but employers still had to pay legal fees in preparing a defence. More than 40% settled out of court and there was no record of how much applicants settled for, it added.

Martin Edwards, employment law expert at law firm Weightmans, said: "The changes may have mixed results. Someone who has not worked long enough to claim unfair dismissal may claim they are a whistleblower or a victim of discriminaiton instead, causing employers even more hassle than before.

"But people who have to pay to bring a claim may regard that as a significant disincentive to litigating a dispute."

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VIDEO: Youth unemployment rise in Eurozone

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4 October 2011 Last updated at 21:07 GMT Help

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Survey finds 28p beer price gap

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

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

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

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

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

Brewers

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

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

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

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

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

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

Rising costs

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

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

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

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

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

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

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Guinea PM defends mining shake-up

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

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

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

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

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

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

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

'God-given riches'

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

Continue reading the main story

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Olympic deals the company ' unsold '

October 6, 2011, last updated at 08: 37 GMT by Michael Hirst BBC 2012 almost two-thirds of the packages website for London 2012 can still sell companiesWith 300 days to go before London 2012, only a third of the tickets were sold on the site hosting the games.

But despite the financial downturn, the company with exclusive rights within Olympic venues hosting company remains bullish about the sales.

Ticketing prestige won a public tender by computerized Olympic Locog some 90,000 tickets-about one percent of the total allocation.

The British public must buy most tickets 6.6 m available by ballot.

However, more than 60% of the company's operations are still on offer.

The company did not disclose how much it paid for the tickets, nor the expected profit, citing commercially sensitive information.

And, like the London 2012 Olympics will be the first site hosting company, you can't compare the figures with previous games.

Redgrave Steve Sir said hosting VIP Olympics figaro behind other sporting events

But involved in the industry told the BBC that they would expect much more dimensional ratio of the packages were sold after almost 7 months of sales.

In a public ballot tickets acted outside his powers or more earlier this year, top-tier in any Olympic ceremonies tickets cost ￡ 2,012, with the best seats going for ￡ 750 Athletics events.

The cheapest cards cost ￡ 495 's luxury deals, while the most expensive suites ￡ 4,500 seats sold in batches of 10 or more secure ceremonies and athletics and cycling finals.

Events sell out

Corporate guests are the guests on the site can view:

"The best seats in the House of champagne lunch" Olympic events receptionFour-course canapé with as many "best of British" food and wines, Travelcards London transport, although hundreds of parking spaces will also be available

Olympic Park, the ticket is ￡ 7 luxury building. Pavilion three-story 5 m catering 3,000 guests at a time, only 70 metres (77 metres) from the main stadium.

Read on the Central story of 70 m (75 feet) from the Olympic Stadium cost ￡ 7. 5 m three-storey Pavilion with a massive glass atrium six restaurants catering for dinersIn 3,000 only 29 days before being placed in any well demolishedHospitality halls and Greenwich Park, North Greenwich arena, horses, dornei Eaton Wimbledon.

The economic depression to traditional customers in economics, he joined advertising by companies in areas like construction, energy resources, the company said.

While the company packages baoki women's final was the first to sell out, was also a demand for land in Wimbledon, rowing at Eton dornei coltori events in Greenwich, the company said.

Marketing Manager Tony Bernard Ticketing said he was sure that luxury to sell other packages like companies settled their budgets next year.

"We see significant growth in sales," he told the BBC. "Ballots tickets end so that people can know that if they want to go, there is only one way left to go."

Olympic opportunity

Prof Simon Chadwick, Director of Business Center for international sport at the University of Coventry, said that while the economic crisis hit the company's hosting industry in recent years, the exceptional nature of the London 2012 will allow him "above the prevailing economic conditions."

In a study commissioned by the luxury card, Prof Chadwick predicted companies buying hosting packages-with an estimated ￡ 45bn. 1-will return more than 12% on their investment.

But he warned this figure was based on factors such as language produced by the goodwill visit to strengthen business relationships.

Winner of gold medal Olympic champion Steve Redgrave, five-time Lord said London 2012 Olympic Games hosting a unique opportunity to put on a par with that of other international events.

"I've been invited to guest with other sponsors of the Olympic Games [the previous] after I retired, you looked after very well, but not quite as well as some other large sporting events," he said.

Prestige is one of three official providers for hosting packages, but has exclusive rights to the Olympics place for guests.

Thomas Cook paid by Locog over ￡ 20 m 200,000 tickets sold as part of the exclusive travel and accommodation packages, while sport Jet was bought 100,000 tickets offered as part of a five star deals for clients abroad.

Locog says revenue tickets will be hosting to give free tickets through a set of cards for the troops, the initiative to get set for school.

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Firms vie for UK rescue service

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5 October 2011 Last updated at 12:06 GMT The successful company would run rescue services out of four bases, including Stornaway At least four companies are competing for a contract to run part of the UK's search and rescue helicopter service.

Firms had until Wednesday to submit bids for a new five-year contract to run four coastguard rescue services in Scotland and southern England.

Bids have been submitted by Bond, Bristow, a consortium including British International Helicopters and CHC, the current coastguard contractors.

The government is to announce which has been successful by the end of the year.

The preferred bidder will take over the operation of helicopter rescue services out of bases in Portland in Dorset, Lee-on-the-Solent in Hampshire, Sumburgh in the Shetland Islands, and Stornoway in the Outer Hebrides from June 2013.

The UK's search and rescue service is currently operated out of four Maritime and Coastguard Agency (MCA) bases, six RAF ones and two Navy ones.

All four coastguard bases are run by CHC, but its contract expires next year.

The Department for Transport needed to find a contractor to run the service after plans for a private consortium to take over all 12 UK helicopter rescue bases were shelved earlier this year.

The Soteria consortium did not get the contract after admitting it had access to commercially sensitive information.

Ministry of Defence police are investigating how the information came to be in the group's possession.

This new contract is expected to plug a gap until a private finance deal is reached for the takeover of the entire search and rescue service.

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US factory orders drop slightly

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4 October 2011 Last updated at 15:08 GMT Activity remained subdued at US factories in the summer New orders at US factories declined slightly, adding to concerns over the health of the world's largest economy.

The Commerce Department said orders for manufactured goods fell 0.2% in August, after rising a downwardly revised 2.1% in July.

Economists had expected orders to be unchanged.

But orders for capital goods - expensive items such as computers and communications equipment - rose 0.9%, the second gain in three months.

Sluggish growth in the US economy earlier this year has not been sufficient to reduce high levels of unemployment.

The economic recovery is "close to faltering", Federal Reserve Chairman Ben Bernanke said on Tuesday.

On Monday, the ISM Manufacturing Index unexpectedly rose in September, beating expectations that the index would remain unchanged.

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World pays tribute to Steve Jobs

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

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

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

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

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

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

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

"The world has lost a visionary. And there may be no greater tribute to Steve's success than the fact that much of the world learned of his passing on a device he invented."

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

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

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

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

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

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

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

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

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

Steve Jobs is credited with revolutionising the way people listen to music

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Tesco profits grow but UK subdued

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5 October 2011 Last updated at 07:00 GMT UK sales were "weak", Tesco said Supermarket group Tesco has reported a rise in half-year profits despite a fall in underlying sales in the UK.

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

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

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

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

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

'Weak' sales

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

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

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

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

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

Like-for-like sales excluding petrol grew in regions outside the UK, with the US seeing sales growth of almost 12%. The company said its plan to break even in the country in the 2012-13 financial year was "showing promising early results".

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

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VIDEO: Cleaning machines 'based on military robots'

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Experts have been promising for decades to put a robot in everyone's home - and finally robots are beginning to make the transition from specialist to everyday use.

Spencer Kelly discovers the similarities between robots used for cleaning and those used by soldiers in Afghanistan for a very different purpose.

Follow the Click team on Twitter - @bbcclick

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UK banks hit by Moody's downgrade

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7 October 2011 Last updated at 07:19 GMT Shares in Royal Bank of Scotland have opened sharply down following the downgrade Moody's has downgraded the credit rating of 12 UK financial firms including Lloyds, RBS, Nationwide, and Santander.

Moody's said it now believed the UK government was less likely to support some firms if they got into trouble.

However, the firm emphasised that the downgrades did not "reflect a deterioration in the financial strength of the banking system".

The news sent bank shares lower, with RBS 3.8% off and Lloyds 3.36% down.

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New Sunderland position for Quinn

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Quinn will focus on Sunderland's business interests overseas Niall Quinn is leaving his role as chairman at Sunderland to take charge of "international development".

Owner Ellis Short will take over as chairman while Quinn focuses on the club's business interests overseas.

Discussing Short, Quinn said: "He'll be a fantastic chairman and taking this role on speaks volumes about his ambition for the club."

Short said: "I can assure our fans that it's the same group of people continuing to lead the club."

Continue reading the main story

It's out of the blue. There's been a lot of restructuring behind-the-scenes at Sunderland. It's an interesting move for Quinn; he's very well respected. Maybe it's a precurser for other big changes that might be made at the club

Former Sunderland striker Marco Gabbiadini on BBC Radio Newcastle

He added: "With financial fair play rules coming into effect, it is essential for the long-term success of the club that we develop interests on a global scale and there's no one better than Niall to sell the ethos of Sunderland to an international audience.

"He has been keen to drive this change for some time and I agree that it's the way forward for us now.

"Assuming the position of chairman is a great honour and I will treat the role as guardian of this club with the utmost respect."

Quinn has been linked with the vacant chief executive role at his former club Manchester City recently.

He added to Sunderland's official website: "This is a great opportunity for us to make the club stronger and I'm delighted that Ellis has agreed to support the plan."

Continue reading the main story Becomes Sunderland chairman in July 2006Appoints Roy Keane as manager a month later, leading to the club's promotion to the Premier League that seasonReplaces Keane with Ricky Sbragia in winter 2008 then brings in current boss Steve Bruce during summer 2009 as club stays in top flight

Sunderland chief executive Margaret Byrne added: "Niall is widely known and hugely respected throughout the world of football.

"His profile, coupled with his vast knowledge of the game and the business, means he is perfectly placed to bring Sunderland to the forefront internationally.

"This new challenge begins immediately as he represents the club at the prestigious Leaders in Football conference in London this week, after which he travels to Korea with [manager] Steve Bruce and Mike Farnan, international marketing director.

"Trips to territories such as Vietnam, India, Abu Dhabi and Africa are also taking place in the coming months."

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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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Abramovich 'intimidated' oligarch

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

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

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

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

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

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

They sat at either end of the packed courtroom.

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

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

Mr Berezovsky is now exiled to the UK.

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

'Threats'

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

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

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

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

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

The case continues.

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VIDEO: Will China help at-risk Italy?

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5 October 2011 Last updated at 00:32 GMT Help

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Manager changes cost clubs £99m

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By Ian Dennis
BBC senior football reporter Five managers have lost their job this season, with pressure mounting on more Premier League and Football League clubs spent almost ￡100m changing their manager last season.

According to figures released to the BBC by the League Managers Association (LMA), the cost of compensation, legal fees and 'double contracts' amounted to ￡99m.

A 'double contract' is when a sacked manager's contract is honoured until a certain point in time but his replacement also requires a salary.

October is traditionally the month when clubs begin sacking their managers. Between October 2010 and February 2011, 25 clubs opted for that course of action.

Continue reading the main story In 2010-11, managers sacked in the Championship had an average tenure of less than a year.It was 1.33 years in League 2, 1.67 years in League 1 & 2.07 years in the Premier League.

Several managers have already lost their job this season, including Peter Reid, who was sacked by League Two Plymouth Argyle last week.

Keith Millen left Bristol City on Monday with the club bottom of the Championship, while Steve McClaren departed Nottingham Forest on Sunday, resigning after only 112 days in charge.

The figure of ￡99m would have been higher had agents fees and the cost of sacking and replacing a manager's backroom team been taken into account.

According to the LMA, which represents managers in the Premier League and Football League, more than 100 coaches also lost their jobs last season.

Reid, who was in charge of Plymouth at a time when the club were battling to avoid administration, was on BBC Radio 5 live to discuss the issue.

He said: "Chairman and owners need to be more realistic about their expectations.

"Certainly in the Championship where they're all trying to get to the Holy Grail and that's the Premiership. There needs to be a bit of realism."

Reid was joined by LMA chief executive Richard Bevan, who believes managers are not being given enough time to prove themselves.

"We want to move away from managers being judged on their last three results," Bevan said.

Continue reading the main story The average length of time it takes a sacked manager to get another job is currently 1.63 years.Almost half of first-time managers are never appointed to a second management position.

"In fact, when results take a downturn that is when the club should support its manager even more, not jump for the quick fix."

Sir Alex Ferguson, who has been in charge of Manchester United for almost 25 years, agrees.

"It's always a problem in modern-day management," said the 69-year-old Scot. "You see time and time again that these guys are only in a position a year before the clubs are sacking them."

According to the LMA, Championship managers who were sacked in 2010-11 had an average tenure of less than a year.

The average was 1.33 years in League 2, 1.67 years in League 1 and 2.07 years in the Premier League.

The average length of time it takes a sacked manager to get another job is currently 1.63 years. Almost half of first-time managers are never appointed to a second management position.

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VIDEO: Dutch sceptical over debt solution

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4 October 2011 Last updated at 16:19 GMT Help

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Debt-hit Spain fears youth brain-drain

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4 October 2011 Last updated at 20:21 GMT By Matthew Price BBC News, Madrid Matthew Price spoke to some Spanish students about their job options

Spain's "Lost Generation" can be found studying literature in classroom 007 at Madrid's Complutense University.

Some 28 students sit alert, behind the rows of desks waiting for a series of questions.

How many of them are confident they'll get a job when they graduate next year? No-one raises a hand.

"What sort of job?" asks one young woman.

"Any," I venture. A few hands go up.

How many believe they will get a good job? No-one.

Who thinks they will have to leave the country to find the work they want? Almost everyone immediately raises a hand, and a glum look spreads across the faces.

A class with hands held aloft - a grim symbol of the mess Spain finds itself in.

The university dining hall - a concrete walled relic from the '80s - is a buzz of chatter. Students struggle through canteen meals.

Among them is Jesus Poveda. He is 20 years old, and without much hope of a future here.

"I think we will do well at work," he says, gesturing towards his fellow diners, "but not in Spain. We should leave the country."

Opposite him sits Guillermo Lerma, also 20 years old.

"Nowadays … [a] boss prefers someone who is studying because they don't have to pay too much." he says.

"You have temporary work here, but not a salary."

'Big advantage'

Spanish unemployment is the highest in Europe - and it's still rising. The number of people looking for work in September rose by 100,000 - the largest increase in that month for 15 years.

Continue reading the main story

I don't see it as a negative... Youngsters see it as normal to move, to study, to work part of their lives in other countries”

End Quote Valeriano Gomez Labour and immigration minister Overall some 21% of people are unemployed. Among the young it's far, far worse. Almost half of all 16 to 24 year olds are without jobs.

It's an astonishing and devastating statistic for a country that desperately needs a dynamic, thriving and young workforce to help it recover from the housing crisis that plunged this economy into recession.

"It's a problem not just for them, but for all of us," believes economics professor Gayle Allard from the Instituto de Empresa in Madrid. She is an American who has lived in Spain for 27 years.

"This is the generation that will be paying for the welfare state and pensions in the future. If they can't get started with relatively secure, well-paying jobs, start to put away some savings, start to accumulate assets, start paying into the welfare system, where does that leave the rest of us?" she asks.

"It's going to be backwards. We're going to be paying for these kids for years and years. It really puts at risk the whole [economic] model."

The latest recruit to the brain-drain of Spain is Irene Roibas - an economics graduate who's leaving for the Netherlands. It's partly for personal reasons, but also because she feels her future will be better secured outside her own country.

Budget cuts have brought many students out on to the streets to protest

"I don't think that universities are preparing people [here]," she argues. Nor "that students are taking all the opportunities they have".

Does Spain need to change? "Yes, I think so, definitely."

Not everyone though is worried about people like Ms Roibas. In the offices of the labour and immigration department, the minister, Valeriano Gomez, believes that youth migration is not a problem.

"I don't see it as a negative. Spain has changed a lot. Youngsters see it as normal to move, to study, to work part of their lives in other countries.

"I don't see it as a problem. I see it as a big advantage."

Escape valve

The European Union of course makes it possible, indeed easy, for the unemployed to head elsewhere to work - although it's not the totally free labour market many champion, thanks to the language barriers that exist across the continent.

Continue reading the main story

For the country to lose this group of people who could help raise the productivity of Spain, which is quite low, is a tragedy”

End Quote Prof Gayle Allard Instituto de Empresa So Europe provides some sort of escape valve for unemployed Spanish youth. Many head for the UK, for France, but also to the US and Latin America.

Venezuela's need for engineers is said to be attractive to many Spanish.

In time the hope will be that they return to Spain, with the experience and desire to help rebuild the economy.

But much of Europe will not attract them. Youth unemployment across the EU is - on average - high at one in five.

Spain is caught up in the debt crisis that's hitting Europe. The government insists things will improve, but some fear that, without the young, it will take longer.

"For the country to lose this group of people who could help raise the productivity of Spain, which is quite low, is a tragedy," says Prof Allard.

In the university canteen many agree with that.

Across Europe, youth unemployment is rising. And just like the continent's economic crisis, there is no end in sight.

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Markets see big quarterly falls

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30 September 2011 Last updated at 20:14 GMT By Damian Kahya Business reporter, BBC News Continue reading the main story European and US stocks were down again on Friday, contributing towards one of the worst quarterly falls for the markets in the past decade.

Stocks in France and Germany have fallen in value by more than 25% since the end of June.

Shares in London's FTSE are down 13.7%, the worst quarterly performance since 2002.

Friday's falls follow an unexpectedly sharp rise in the eurozone inflation rate for September to 3%.

Investors had hoped the European Central Bank would move to lower interest rates in the eurozone, after raising them in July to 1.5% to limit inflation.

However, the latest inflation figures may make such a move less likely.

Wall Street's main Dow Jones index ended Friday trading down 2.2% to record its worst quarterly performance since 2008.

Eurozone worries

But Friday's falls were just the latest bout of volatility in European markets, which have failed to regain ground since crashing towards the end of July.

Continue reading the main story Jamie Robertson Presenter, BBC World News

Following all the violent swings in equity markets since the sharp falls at the beginning of August, the main markets have not really moved outside fairly narrow ranges: the FTSE between 5,000 and 5,400 and the Dow between 10,800 and 11,600.

The Nikkei, the Dax and the Cac 40 have been gradually trending downwards by about 6-10% over the past two months. This is almost entirely due to uncertainty over the debt crisis and the fate of the eurozone.

However, even if there is no further bad news on that front, things are likely to get very active for individual companies.

Many of them, particularly ones that move in tandem with the economic cycle such as those in mining, retail, the auto sector and manufacturing, are trading on values that imply double digit growth.

October's results season could upset a lot of earnings forecasts, as markets come to terms with the prospect of near-zero growth in Europe and the US, and companies undergoing what are politely called price adjustments.

Economists say worries over the ability of eurozone countries to pay their debts are sparking concerns of a new banking and credit crisis.

"The euro area debt crisis has potential ramifications to euro area banking sectors in particular," said Grant Lewis, head of research at Daiwa capital markets.

"You've got concerns that a Greek default going wider into something more serious in terms of an Italian default, for example, that would leave banking sectors under-capitalised as well as having a calamitous effect on the economic outlook."

Shares in Germany's Deutsche Bank and Commerzbank both lost more than 30% in value since the end of June.

Stocks in French banks fared even worse. Societe Generale saw its stock fall more than 50%, while BNP Paribas saw its share price fall more than 40%.

The share falls have therefore been most pronounced in eurozone countries, with the FTSE falling less than benchmark German and French exchanges.

Brent crude was also set for the biggest quarterly fall since the financial crisis of 2008.

Oil for delivery in one month's time fell just over 8% to $103 a barrel in London as investors worried about a slowdown in the global economy.

Worries ahead Global markets have been hit by a 'toxic cocktail' of factors, says one economist

Despite the record quarterly falls, markets remain up on the levels they reached after the 2008 financial crisis.

"There are certainly widespread indications of pretty serious financial stress, but they are not by and large as dramatic as they were in 2007 and 2008," George Magnus, European economist at UBS, told the BBC.

"Then, the whole edifice of the Western banking system was about to implode. At that point, I think it was far more dramatic than it is now."

But investors and economists fear the situation may deteriorate further.

Markets are likely to look to forthcoming company results and quarterly economic data for their next move.

In the longer term, economists say they are seeking reassurance from politicians.

"I think markets are expecting something of substance to be revealed by the G20 [group of leading nations] in November and if it isn't, we could be in a lot of trouble," Mr Magnus added.

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Germany approves EU bailout fund

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29 September 2011 Last updated at 16:40 GMT Chancellor Merkel achieved her majority after intense lobbying Germany's parliament has voted by a large majority in favour of supporting a more powerful fund to bail-out troubled Eurozone economies.

Chancellor Angela Merkel received strong support despite criticism of the plan from some of her ruling coalition.

Many Germans are against committing more money to prop up struggling eurozone members such as Greece.

There are protests in Athens where international inspectors have held talks on further bailout funds.

The measure is expected to pass in Germany's upper house of parliament, where it will be put to a vote on Friday.

In the Bundestag, 523 deputies approved the bill to support the expansion of the European Financial Stability Facility (EFSF) - 85 voted against and three abstained in the 620-seat chamber. Nine members were not present.

Dissidents

Some members of Mrs Merkel's coalition had vowed to vote against the bill.

But in the end, 315 deputies voted in favour, meaning that Mrs Merkel did not have to rely on opposition support to get the measure passed.

The outcome of the vote was not in question, however, as the main opposition parties, the SPD and the Greens, indicated they would support the expansion of the fund.

Before the vote, there was intense lobbying by Mrs Merkel's Christian Democrats (CDU) and their coalition allies to pressure the handful of dissidents to get in line.

Continue reading the main story Stephen Evans BBC News, Berlin

Chancellor Merkel got her majority more easily than she might have expected. Fifteen members from parties in her coalition government voted against her, not enough to make her have to rely on the opposition.

The main opposition party, the Social Democrats, supported the government.

As one of its MPs put it in the debate: "We will vote with you because Europe needs this vote. Don't rely on us next time."

In the end, 523 MPs voted with the government and 85 against, including the left group.

Chancellor Merkel emerges not quite unscathed but not as a dramatically weakened leader either.

A reliance on this support would have cast into doubt her ability to get forthcoming votes on both a further bailout for Greece and a permanent successor to the EFSF through the Bundestag.

"The broad majority in parliament clearly shows Germany is committed to the euro and to protecting our currency," said Hermann Groehe, the number two in Ms Merkel's Christian Democrats (CDU) party.

But Frank Schaeffler of the Free Democrats party - a junior coalition member - argued that bailout measures have made Greece's economic situation deteriorate.

"Despite all arguments, the first bailout did not make the situation for Greece better, but worse," Mr Schaeffler said, according to the AP news agency.

"Expanding the fund will make the situation even worse."

Athens blockade

All 17 countries that use the euro must ratify the commitment made in July to expand the powers of the EFSF and boost its bailout guarantees from 440bn euros (￡383bn) to 780bn euros.

So far, 10 have approved the measure.

As Europe's largest economy, Germany's commitment to the fund would rise from 123bn euros to 211bn.

That bigger fund is already being dismissed as inadequate in the light of the worsening Greek crisis and the threat of it spreading to other economies.

The former President of European Commission Romano Prodi said the German public will come round to supporting the deal

Inspectors from the "troika" of international creditors supporting Greece - the European Commission, the European Central Bank (ECB) and the International Monetary Fund (IMF) - returned to Athens on Thursday to decide if the government has done enough to warrant another 8bn euros (￡6.9bn) of loans.

"The climate was positive and creative after the tough measures that were decided," Greece's finance ministry said in a statement.

Public workers blocked entrances to a number of ministries in Athens, protesting against the deep austerity measures the government has imposed as a condition of the bailout.

"Take your bailout and leave," shouted protesters outside the finance ministry, Reuters news agency reported. They said they wanted to prevent Finance Minister Evangelos Venizelos from meeting the troika officials.

Taxi drivers, hospital workers and other public sector staff were also due to strike on Thursday, angered by the announcement of new austerity measures including pension cuts and a new property tax.

Without the new loans - laid out under the terms of a bailout agreed last year - Greece will soon run out of money.

New taxes have been approved and deeper spending cuts have been promised, but some decisions have been delayed and privatisation is running behind schedule says the BBC's Chris Morris in Athens.

Many people believe that austerity measures are pushing Greece's crippled economy deeper into recession and strangling any chance of growth.

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VIDEO: Eurozone troubles worry Australia

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Oil firm resumes Libya operations

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26 September 2011 Last updated at 13:50 GMT Libya's refineries were mostly closed in March, when fighting intensified Italian oil firm Eni has restarted production at an oil field in Libya, as opponents of Col Muammar Gaddafi tighten their control on the economy.

Eni, which was the biggest foreign oil producer in Libya before Col Gaddafi was overthrown, said it planned to reopen other fields in the coming days.

Other firms, including French company Total, have also restarted operations.

Meanwhile, anti-Gaddafi forces are closing in on his hometown of Sirte, one of his few remaining strongholds.

The soldiers, loyal to the National Transitional Council (NTC), launched a surprise attack on the city on the weekend.

The BBC's Alastair Leithead, near Sirte, says the troops have the city surrounded and are preparing to enter it with significant force.

Gaddafi loyalists have been fiercely protecting the city from NTC advances in recent weeks.

Eni said in a statement it has restarted production at 15 wells in the Abu Attifel oil field, about 300km (190 miles) south of Benghazi.

Slow recovery

The company said it was pumping 31,900 barrels of oil a day, compared with a rate of 70,000 barrels a day before the unrest broke out.

The wells were closed in March amid increasing violence between Gaddafi loyalists and rebels, who later formed the NTC.

France's Total announced last week that it had resumed production at its al-Jurf offshore facility, which is capable of producing 40,000 barrels a day.

And Libya's state controlled Arabian Gulf Oil (Agoco) announced earlier this month that it had started pumping 160,000 barrels of oil from fields in the east.

The country was producing 1.6 million barrels a day before the unrest began, making up the bulk of its wealth.

Experts say it is likely to take at least a year before anything close to those levels are reached again.

The NTC still has not found Col Gaddafi, who ruled the country for more than 40 years.

But several of his children and members of his inner circle have fled abroad.

His daughter Aisha fled to Algeria, and told journalists last week that her father was in good spirits and fighting alongside his supporters.

The Algerian newspaper El-Khabar reported on Monday that a group of Gaddafi supporters, possibly including Aisha, had now left the country for Egypt.

The report has not yet been confirmed.

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Default retirement age abolished

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1 October 2011 Last updated at 07:05 GMT The default retirement age has been phased out The default retirement age in the UK has been fully abolished after being phased out from April this year.

New legislation stops employers from compulsorily retiring workers once they reach the age of 65.

However, research by law firm Norton Rose suggests one in 10 firms plans to offer financial incentives to encourage workers to move on at a certain age.

The charity Age UK welcomed the legislation but said age discrimination was still prevalent in the workplace.

'Devastated'

The legislation came too late for Andrew Webster, from Richmond in Surrey.

He was issued with a compulsory notice to retire from his job as an English teacher at a performing arts school.

''I was devastated. I had found a job I loved, I felt I was in my prime. I got on well with the students and they had good results," he said.

"I wanted to go on doing it for as long as possible and I needed the money as well so it was a terrible blow when it happened.''

Andrew Webster said he was pleased others would not be in his position

He has found work as a tutor but said he took home only a third of his previous earnings, even taking his pension into account.

''I know it is too late for me but I am pleased that other people will not also be forced to retire before they are ready," he said.

Rules

The Employment Equality (Repeal of Retirement Age Provisions) Regulations 2011 started phasing out the default retirement age from the start of April.

That was the point after which employers could no longer issue the minimum six-month notification for compulsory retirement, using the default retirement age procedure.

Continue reading the main story

Discrimination in the recruitment process is against the law, but it still happens in practice quite a lot”

End Quote Christopher Brooks Age UK If employers still want to enforce retirement, their decisions will have to be objectively justified, but workers can no longer be forced to retire on the grounds of age alone.

The Norton Rose research indicated that some firms were preparing to offer employees a "golden goodbye".

''Our survey suggests employers feel there will be limited ability to take on younger workers as a result of the default retirement age being removed and their perceived inability to ask more senior levels of staff to move on,'' said Paul Griffin, an employment lawyer at Norton Rose.

''If firms are approaching people to retire that could be seen as age discrimination in its own right.

"But our survey indicates that firms are willing to pay to encourage people to move on at a certain time in their career."

Ageism

Age UK said that instead of focusing on making space in firms for younger employees, businesses should instead look at the benefits that experienced older workers could bring.

Christopher Brooks, head of policy for work and learning at Age UK, said there was still a prevailing culture of ageism.

"Many employers simply see the stereotypes of an older worker, particularly in the recruitment phase and statistics show older workers find it harder to find another job than any other age group," he said.

''Discrimination in the recruitment process is against the law, but it still happens in practice quite a lot.

"It is however quite hard to prove but we do get lots of feedback from people who have been in interviews and been told they are over qualified or just too old to do the job, which quite often amounts to age discrimination."

Life experience

Chief executive Liz Fields from business consultancy the Financial Skills Partnership said keeping older workers had benefits.

"The skills and life experience that an older person can bring to a business actually helps that business become much more competitive," she said.

However, the Federation of Small Businesses said the move was "unncessary meddling".

"It will lead to a legal quagmire for a lot of small business owners. If you can't get rid of someone, you then have to go through the process of performance managing someone out of an organisation, which if you have a big HR department and you're experienced in these things is easy," said Andrew Cave from the federation.

"The average business in this country employs four people. The owner-manager doesn't necessarily have that expertise."

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New Ryanair card facing criticism

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4 October 2011 Last updated at 10:37 GMT James Daley from Which?: "The card only benefits passengers who fly solely with Ryanair"

A branded pre-paid card for Ryanair passengers launched on Tuesday has been criticised by consumer group Which?

The airline's passengers must sign up for the Ryanair Cash Passport to avoid an administration fee of ￡6 per person per journey.

However, as with many pre-paid cards, charges are levied for withdrawing cash or not using the card for six months.

Which? described the card as an "insult" to customers, but Ryanair said the card would be more accessible.

The specific type of card that avoided the Ryanair administration fee had previously been changed from the Electron card to Mastercard pre-paid cards. Anyone using the Mastercard pre-paid card will be charged from November.

When the new card was announced, a Ryanair spokesman said that 25% of all UK bookings were made using a Mastercard pre-paid card.

He said that the airline hoped to increase this proportion by changing to the new Cash Passport card that, unlike the current cards, would be available on its website.

But Which? said that switching to the new card complicated the process further and added "insult to UK consumers who have little opportunity to avoid such fees".

Fees

The card will need to be pre-loaded with cash before any booking is made. There will also potentially be additional costs to anyone who signs up for the new card.

It will initially cost ￡6 to buy, although each customer will be given a ￡6 Ryanair travel voucher. Charges include a fee for withdrawing cash from the card over the counter at a bank or from an ATM.

There is also a 50p charge for all transactions, other than Ryanair bookings, from April 2012 and a rolling fee of ￡2.50 if a card is not used for six months.

The OFT recently held an inquiry into card surcharges for passengers booking travel online. Ryanair said that its charge was for administration purposes, such as the cost of running a website, rather than a surcharge for using a credit or debit card.

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Shares up on eurozone bank plan

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

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

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

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

German support

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

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

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

Continue reading the main story

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

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

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

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

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

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

Banks rise

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

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

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

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

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

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

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

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

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A lost decade for investors?

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27 September 2011 Last updated at 07:46 GMT By Gemma Godfrey Investment committee chairman, Credo Capital Gemma Godfrey: there is an investing "sweet spot" Over the past 10 years, investors have experienced a stark divergence of fortunes, with some making substantial amounts of money whilst others have suffered losses.

Timing, picking the right investments and employing the right strategy have determined their fate.

When investing, timing can be crucial. You make money if you buy something when it is cheap and sell it when it is perceived to be more valuable. If you buy the same object when its price is high, making a profit will be that much harder.

In the run up to the year 2000, investors bought shares in technology companies to such an extent that values predicted firms would make unrealistic profits. This 'bubble' burst and the stock market fell. September 2001, the start of our 10 year period, lies within this period of selling. Therefore, together with the fall from the financial crisis in 2008, losses were enough to offset the substantial gains achieved in the seven years between these events.

Investing in the 'sweet spot'

An initial investment of ￡100 in the FTSE 100 (the index of the 100 largest companies listed in the UK), would have fallen in value by 4%, returning only ￡96 all these years later.

This return hides a huge divergence of fortunes. Firstly, when choosing the size of the firm in which to invest, there appears to have been a 'sweet spot' for medium-sized firms in the FTSE 250 (the next 250 companies after the largest 100 listed on the London Stock Exchange) - small enough to grow substantially, but large enough to have weathered the storms.

Secondly, the sector. The shares of companies selling basic materials almost tripled in value over the past decade, in contrast to those of financial firms, which lost half the initial investment. The belief driving these moves was that certain materials (for example copper and iron) have become harder to mine and produce, making their producers more valuable. In contrast, banks have suffered from loan defaults, bankruptcies and increased regulation, which have all hurt profits.

Thirdly, the geographic focus. Whilst investing in UK, US or European companies on the whole produced meagre returns or losses, investing in the developing markets of China, Russia or Brazil generated astounding returns; Brazil stands out with a gain of 578%.

Basic Materials outpaced the FTSE 250, while the FTSE 100 did better than financial shares Reinvesting is key

Short-term investment decisions have had as much of an impact as choosing where to place money for the longer term.

During our investment timeline, many companies regularly paid a portion of their profits to shareholders, so-called dividends. How an investor used this payment strongly dictated how much money they made.

If it was re-invested back into the stock market it continued to generate returns, if it was put into their bank account it did far less.

The MSCI World Equity index - boosted by reinvesting returns, lagging when taking out the money Wealth of opportunity

There are other assets an investor could have bought apart from shares, some of which performed far better and greatly enhanced the amount of money made over this period.

Lending to governments or companies in developing countries proved highly profitable, with relatively large interest payments made to the lender (i.e. the investor) until the loan was repaid.

Another interesting investment was property, which in general provided investors with highly attractive returns over the past decade, even after the sharp correction during the recent recession.

Finally, hedge funds, like investors, have had a mixture of fortunes. With focus on different markets, some have made staggering returns whilst others are still nursing losses.

Interestingly, it has not been worthwhile to bet on a falling market. Money managers lost money if they focused solely on making a profit when certain investments fell in value.

Unsurprisingly, fund managers with investments in emerging markets (like Brazil, Russia and China) almost tripled their initial investments.

When investing, during the past decade it paid to be particular.

Brazil was the top performer; hedge fund investments in emerging markets were runner up; government bonds did well; the S&P Global Property index provided returns; UK stocks were lagging

Gemma Godfrey is a quantum physicist, former hedge fund manager and now chairman of the investment committee of wealth management firm Credo Capital.

The opinions expressed are those of the author and are not held by the BBC unless specifically stated. The material is for general information only and does not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Links to external sites are for information only and do not constitute endorsement. Always obtain independent, professional advice for your own particular situation.

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Japan outlines quake-tax increase

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

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

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

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

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

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

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

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

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

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

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VIDEO: Check, check and check again

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29 September 2011 Last updated at 14:12 GMT Help

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Samsung forecast beats estimates

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7 October 2011 Last updated at 06:35 GMT Falling demand and prices of flat-screen TVs have hurt profits at various electronics makers Samsung Electronics has issued a better-than-expected profit forecast for the third quarter as its handset business helped to offset falling demand for TVs and computer chips.

Samsung said it expected an operating profit of 4.2tn won ($3.5bn; ￡2.3bn) a 14% dip from a year earlier, but better than market projections of 3.5tn won.

Compared with the previous quarter, the projected profit is up 12%.

Samsung is the world's second-largest maker of mobile phones.

"Its telecommunications business is seen very positive as shipments of smartphones and other high-end handsets expanded," said Park Jong-Min of ING Investment Management.

Advantage Samsung? Analysts said they expected Samsung's handset business to keep growing robustly, not least due to the Apple's decision to upgrade its existing model of iPhone4 with new features and technology, rather than launch a new version.

Apple had been expected to launch an iPhone5 at a media event held earlier this week.

"Given Apple's relatively unchanged new iPhone, Samsung will have the opportunity to eat into Apple's market share with its hardware build-up and growing software power until next year," said Jang In-Beom of Bookook Securities.

Samsung has also been growing its presence in the tablet PC market.

Last month the Korean electronics manufacturer announced that sales of the Samsung GALAXY S II had crossed the 10 million mark, doubling from five million in just eight weeks.

'Major risk'

Despite the optimism about the growth potential of its handset business, analysts said that external factors remain a big threat to the company in the short to medium-term.

There have been concerns that a slowdown in the US coupled with the ongoing debt crisis in Europe may hurt global growth and dent consumer demand.

"The macroeconomic situation will remain a major risk for Samsung in the fourth quarter," said Ahn Seong-Ho of Hanwha Securities.

At the same time, there are fears that volatility in the currency markets may also have a bearing on its earnings.

The Korean won has fallen as much as 10% against the US dollar since the start of July.

A weaker won makes Korean goods cheaper for foreign buyers.

"The weakening won may have inflated third-quarter profits," said Kim Young-Chan of Shinhan Investment Corp.

However, Mr Kim added the exchange rate remained a threat to Samsung as any recovery in the won would have a counter effect.

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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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Lone Star guilty of market fraud

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

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

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

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

Spread rumours

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

Yoo has been jailed for three years.

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

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

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

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

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Reebok pays $25m over toning shoe

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

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

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

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

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

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

The $25m penalty will go towards consumer refunds.

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

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

UK advert

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

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

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

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

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Crisis at S Korean savings banks

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

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

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

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

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

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

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

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

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

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

Risky loans

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

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

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

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

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

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

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

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

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

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

Blame game

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

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

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

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

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

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

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

Confronting your boss is almost unheard of.

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

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

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

Wider impact?

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

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

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

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

Continue reading the main story

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

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

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

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

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

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

But politically it has been tricky, even so.

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

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

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

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

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

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