BSkyB Sees Full-Year Profit Up 9% To £1.33bn

BSkyB, the owner of Sky News, has announced a 9% rise in full-year operating profit to £1.33bn.

Revenue for the entertainment and home communications company was up 7% to £7.235bn.

The company saw paid-for product growth of 3.3 million, taking the total to 31.6 million subscriptions, as customers increasingly add products including broadband, HD TV and Sky Go Extra.

It also saw a 170% rise year-on-year in the number of connected Sky+HD boxes - which give access to on-demand television - to 2.7 million units.

There was a fivefold increase in On Demand downloads and a 200% growth in Sky Store video rentals.

BSkyB has reaffirmed a commitment to original content

The broadcaster also unveiled a budget £9.99 Now TV box, which wirelessly connects a TV to a broadband connection, giving contract-free access to BBC iPlayer, Demand 5, Sky News and Now TV.

Through Now TV, viewers can also pay to watch Sky Sports and Sky Movies. It also allows people to catch up on previously-broadcast programmes.

BSkyB said it now has 10.42 million pay TV subscribers and 4.9 million broadband customers.

The company has also announced a £500m share buyback and an 18% increase in the dividend.

Chief executive Jeremy Darroch told Sky News: "We are delighted with the results today."

"The economy is a challenge and it is providing head-winds for all consumer businesses."

Team Sky rider Chris Froome won this year's Tour de France

Mr Darroch said: "Against that backdrop, we have a strong set of plans that will extend our leadership in core areas - onscreen, in home communications, and in front-line service delivery; accelerate growth in new services; and improve efficiency to build a bigger, more profitable business for shareholders."

He added: "On the back of this performance, we are increasing returns to shareholders with the ninth consecutive rise in the ordinary dividend and we intend to seek approval for a further £500m of share repurchases."

BSkyB said it will continue to expand its plans for original content, including a big step up in commissioned drama.

The number of entertainment shows with an audience of more than 1 million has risen 200% during the last two years.

The company also has an ongoing commitment to British Cycling, taking the partnership up to and including the 2016 Olympics.

Team Sky won back-to-back Tour de France cycling races, in 2012 and 2013.

16.01 | 0 komentar | Read More

Welby Defends Wonga After Church Link Emerges

The Archbishop of Canterbury has insisted he was not picking on Wonga after it emerged the Church of England invests in the payday loan firm.

The Most Reverend Justin Welby admitted being "irritated" and "embarrassed" by the revelation but went on to heap praise on Wonga and its management.

Mr Welby hailed the company for its professionalism and suggested it was far from the worst organisation in the loan sector.

The link between the Church and the firm emerged hours after the Archbishop said he wanted to force Wonga out of business by expanding credit unions.

The Financial Times found the Church's pension fund had put money into Accel Partners, a US venture capital firm that led Wonga's 2009 fund-raising efforts.

Until the report emerged, Mr Welby had no idea about the connection.

Sources suggested he was "furious" but on Friday, in a lengthy interview, he merely said: "I was irritated for a few minutes but, you know, these things happen."

Justin Welby: 'It's very embarrassing'

He did admit the affair was "very embarrassing" and vowed to investigate, signalling there could be a review of the Church's entire investment portfolio.

But he said: "I never took on Wonga in particular. The context was talking about the entire payday lender movement.

"Wonga is actually a very professionally managed company. Errol Damelin, the chief executive is a very clever man, [who] runs it extremely well."

Despite praising the company, he said he was still unhappy about the Church's investment.

"They shouldn't be investing in Wonga. We don't think that's a good thing," he told the BBC's Radio 4 Today programme.

And he insisted he was not backtracking on his commitment to clamp down on the industry, which is currently the subject of a Competition Commission probe.

"We need to provide a proper alternative to these very, very costly forms of finance. The worst people are not Wonga. There are plenty of others much worse," he said.

Mr Welby said Church policy allows investments in a company where 25% of its business is in the loan area, indicating the arrangement with Wonga may be against its rules.

"I think we have to review these levels and make sure we are consistent between what we're saying and what we're doing," he said.

The Archbishop conceded that it was almost impossible for the Church to make an investment that was not somehow tainted.

He said: "If you exclude any contact with anything that directly or indirectly gets in any way bad, you can't do anything at all."

Lambeth Palace has said it will ask the Assets Committee of the Church Commissioners to investigate the link to Wonga and review the holding.

It added: "We will also be requesting the Church Commissioners to investigate whether there are any other inconsistencies as normally all investment policies are reviewed by the Ethical Investment Advisory Group (EIAG)."

Mr Welby is seeking to expand the reach of credit unions as part of a long-term campaign to boost competition in the banking sector and clamp down on short-term loan firms.

The Government announced an investment of £38m in credit unions in April to help them offer an alternative option to payday lenders.

The Office of Fair Trading referred the entire payday lending industry, which is worth £2bn, to the Competition Commission last month after finding "deep-rooted" problems.

It said it decided to make the referral because it continues to suspect that features of the market "prevent, restrict or distort competition".

Wonga said in March that it welcomed any attempt to encourage responsible lending and that it has been "instrumental" in helping to raise industry standards.

Mr Damelin, its founder, said: "The Archbishop is clearly an exceptional individual and someone who understands the power of innovation.

"There is mutual respect, some differing opinions and a meeting of minds on many big issues.

"On the competition point, we always welcome fresh approaches that give people a fuller set of alternatives to solve their financial challenges. I'm all for better consumer choice."

The company has launched a new advertising campaign setting out "ten commitments" about its lending practices in an apparent tongue-in-cheek reaction to the Archbishop's original remarks.

Mayor of London Boris Johnson backed the Archbishop's plans and said it was an "interesting interpretation of the gospels".

He told Channel 4 News: "I think it's a wonderful idea.

"Wonga is a perfectly legitimate business but there's no doubt their rates are usurious. There are people who find it very, very difficult to repay the loans once they get into trouble.

"He's not turning over the tables of the money lenders, he's bringing in his own money lending tables."

16.01 | 0 komentar | Read More

Royal Baby: George Gives UK Business Boost

By Emma Birchley, Sky News Correspondent

The UK's newest Prince might be less than a week old but he is already proving to be a trendsetter as aspiring parents race to keep up with the Cambridges.

Sales of Britax Baby Safe seats have trebled at Kiddicare superstores since the newborn set off in one on his first car journey after leaving St Mary's Hospital on Tuesday.

And there has been a surge in orders of the £45 hand-finished merino wool shawl made by GH Hurt and Son in Nottingham that Prince George of Cambridge was wrapped in for his first photo shoot.

Alex Fisher, commercial director at Kiddicare, said: "I think it's fabulous news in terms of parents engaging with the fact there is a Royal baby.

"I think it will encourage people to renew and buy new products.

"Parents look at what is the latest product, who is the latest celebrity, and I think on the back of that the seat by default becomes aspirational."

There was so much interest in the dress worn by the Duchess of Cambridge that the designer's website crashed earlier in the week.

But it later emerged that the Jenny Packham design was a one-off and not for sale.

The royal seal of approval has been a blessing for some companies

The Centre for Retail Research predicts the new arrival will end up boosting the UK economy by close to £250 million.

That includes everything from the champagne sipped to help celebrate the baby's safe arrival to commemorative mugs.

And Richard Cope, director of trends at market researchers Mintel, believes spending inspired by the young Prince will be sustained by visitors to the UK.

"Tourist numbers are up by about 10% compared with a year ago. They're going to be here throughout the summer and they buy into the concept of the Royal Family.

"The tourist factor is going to drag out spending for months and months."

But it is not just retailers enjoying the Royal feelgood factor.

William and Kate's chosen charities are already benefiting, including East Anglia's Children's Hospices (EACH), of which the Duchess is patron.

Melanie Chew, fundraising director of EACH, said: "The donations are coming in from the UK, but overseas as well.

"We have had all kinds of generous offers from an ornate handmade cradle from Poland, we've had children's bedroom furniture from Slovenia and we have a charm bracelet on its way, so it's been terrific."

16.01 | 0 komentar | Read More

Wonga Ad Delivers Riposte To Archbishop

By Mark Kleinman, City Editor

The payday lending group Wonga will on Friday attempt to begin changing public perceptions of its business model following a vow by the Archbishop of Canterbury to "compete it out of existence".

Sky News has seen a copy of an advertisement that Wonga will place in a number of national newspapers, in which the company will set out 'ten commitments' about its lending practices.

Among the pledges to be made by the payday lender are that it welcomes competition, would "always help customers in financial difficulty" and that it would never charge interest at an annual percentage rate running into the thousands.

The description of Wonga's manifesto as its 'ten commitments' is understood to be a tongue-in-cheek riposte to the Archbishop but follows a bruising period for Wonga and the wider industry. 

Last month, the sector was referred to the Competition Commission amid political anger about the activities of some short-term lenders.

The row was stoked on Thursday when comments made by Justin Welby, the Archbishop of Canterbury, were published in the magazine Total Politics.

Referring to a meeting that he had held with Errol Damelin, the chief executive of Wonga, several weeks ago, Dr Welby said:

"We had a very good conversation and I said to him quite bluntly 'we're not in the business of trying to legislate you out of existence, we're trying to compete you out of existence'. He's a businessman, he took that well."

The Archbishop was referring to the emerging credit union movement, a form of financial co-operative which lends money at comparatively low rates.

However, the Church of England faced being embarrassed by the debate on Thursday night when it emerged that its pension fund was an investor in one of the funds that helped to establish Wonga in the UK.

Wonga has sought to counter mounting criticism by pointing out that it only lends money to consumers who have been subjected to credit-checks, and that customers can repay loans early with no additional charge.

In remarks to be published on its website on Friday, Wonga is expected to say: "Since 2007 Wonga has responsibly lent over £2bn and we now have over a million customers.

"We've done that despite declining three quarters of all first loan applications and ensuring a principal default rate (money lent that we don't get back) of around 7%. This is comparable to other forms of short-term credit, such as credit cards.

"We work hard to lend only to the people who can pay us back, and our mainstream services for individuals and businesses are now available across three continents."

Wonga has also been caught up in a row over the refusal of Papiss Cisse, the Newcastle United striker and practising Muslim, to wear a shirt bearing the name of the payday lender, which is the club's sponsor. He has now agreed to do so, Newcastle announced on Thursday.

16.01 | 0 komentar | Read More

Halliburton To Plead Guilty Over Gulf Oil Spill

Halliburton is to plead guilty to destroying evidence in connection with the 2010 Gulf of Mexico oil spill.

The US company has agreed to pay the maximum statutory fine of $200,000 (£130,000), to stay on probation for three years and to continue to cooperate with the government's criminal investigation.

Halliburton, which is the world's second-largest oilfield services company, has also made a $55m (£35.7m) voluntary contribution to the National Fish and Wildlife Foundation.

Halliburton was BP's cement contractor on the drilling rig whose blowout triggered an explosion that killed 11 workers and spilled millions of gallons of oil into the Gulf of Mexico.

A Justice Department statement said Halliburton - which constructed the cement casing of the well at the centre of the disaster - had carried out its own internal investigations following the disaster in April 2010.

But results of computer simulations carried out in May and June 2010 were ordered to be destroyed and were unable to be recovered, the Justice Department said.

The company said in a statement that it had agreed to plead guilty "to one misdemeanour violation associated with the deletion of records created after the Macondo well incident".

The Justice Department has agreed it will not pursue further criminal prosecution of the company or its subsidiaries for any conduct arising from the 2010 spill, Halliburton's statement said.

The plea agreement is subject to court approval, the company said.

According to the government, Halliburton recommended to BP that the Macondo well contain 21 centralisers, metal collars that can improve cementing, but BP chose to use six.

The government said that, during an internal probe into the cementing after the blowout, Halliburton ordered workers to destroy computer simulations that showed little difference between using six and 21 centralisers.

Efforts to locate the simulations forensically were unsuccessful.

Halliburton and BP have blamed each other for the failure of the cement job to seal the Macondo well.

The Gulf of Mexico oil spill was the largest offshore oil disaster in US history, wreaking havoc on the region's environment and economy.

16.01 | 0 komentar | Read More

BSkyB Sees Full-Year Profit Up 9% To £1.33bn

BSkyB, the owner of Sky News, has announced a 9% rise in full-year operating profit to £1.33bn.

Revenue for the entertainment and home communications company was up 7% to £7.235bn.

The company saw paid-for product growth of 3.3 million, taking the total to 31.6 million subscriptions, as customers increasingly add products including broadband, HD TV and Sky Go Extra.

It also saw a 170% rise year-on-year in the number of connected Sky+HD boxes - which give access to on-demand television - to 2.7 million units.

There was a fivefold increase in On Demand downloads and a 200% growth in Sky Store video rentals.

BSkyB has reaffirmed a commitment to original content

The broadcaster also unveiled a budget £9.99 Now TV box, which wirelessly connects a TV to a broadband connection, giving contract-free access to BBC iPlayer, Demand 5, Sky News and Now TV.

Through Now TV, viewers can also pay to watch Sky Sports and Sky Movies. It also allows people to catch up on previously-broadcast programmes.

BSkyB said it now has 10.42 million pay TV subscribers and 4.9 million broadband customers.

The company has also announced a £500m share buyback and an 18% increase in the dividend.

Chief executive Jeremy Darroch told Sky News: "We are delighted with the results today."

"The economy is a challenge and it is providing head-winds for all consumer businesses."

Team Sky rider Chris Froome won this year's Tour de France

Mr Darroch said: "Against that backdrop, we have a strong set of plans that will extend our leadership in core areas - onscreen, in home communications, and in front-line service delivery; accelerate growth in new services; and improve efficiency to build a bigger, more profitable business for shareholders."

He added: "On the back of this performance, we are increasing returns to shareholders with the ninth consecutive rise in the ordinary dividend and we intend to seek approval for a further £500m of share repurchases."

BSkyB said it will continue to expand its plans for original content, including a big step up in commissioned drama.

The number of entertainment shows with an audience of more than 1 million has risen 200% during the last two years.

The company also has an ongoing commitment to British Cycling, taking the partnership up to and including the 2016 Olympics.

Team Sky won back-to-back Tour de France cycling races, in 2012 and 2013.

16.01 | 0 komentar | Read More

China In Ban On 'Glitzy' Official Buildings

Chinese authorities have ordered a five-year suspension of the construction of new official buildings, state media reported.

It is the latest move by President Xi Jinping to crack down on extravagance and pervasive corruption that blights the world's most populous nation.

The decision was "made in accordance with the country's frugality campaign", official news agency Xinhua said.

Some structures built in violation of regulations had tainted the image of the Communist Party and stirred vehement public disapproval, the agency said.

"The directive called on all party and government bodies to be frugal and ensure that government spending goes toward developing the economy and boosting people's wellbeing," it added.

The ban also covered "glitzy structures" built as training centres, hotels or government motels, it said.

Numerous scandals in recent years have centred on extravagant expenditure on new government buildings by officials, often in poverty-struck inland regions.

A building belonging to the state-owned Harbin Pharmaceutical Group

Some local governments have embezzled poverty-alleviation and disaster-relief funds to build offices and other facilities for themselves that sometimes resemble high-end resorts.

Mr Xi, who took office in March, has made the fight on graft a key objective of his administration, and the party has already targeted everything from the use of government cars to liquor served at official banquets.

Corruption is so bad it could hurt the party's grip on power, Mr Xi has warned.

But so far few high-level officials have been caught in his dragnet and the party has shown no sign of wanting to set up an independent graft-fighting body.

Similar orders in the past to rein in construction of over-the-top government buildings have had little apparent effect.

Some international observers believe that an apparent crackdown on foreign pharmaceutical firms over kickbacks is an early phase of turning the heat up on domestic wrongdoers.

16.01 | 0 komentar | Read More

Record Apple iPhone Sales But Profits Slump

Apple has seen a spike in iPhone sales but a 16% decline in iPad sales during the last reporting quarter.

The US technology firm sold 14.6 million iPads during the quarter, compared with 17 million in the same period last year.

It sold 3.8 million Macs, down from four million between April and June last year.

However it sold 31.2 million iPhones in the last financial quarter, up 20% and a record for the three-month period to June.

That figure beats the 26 million handsets sold in the same period last year but is down on the 37.4 million devices sold between January and March this year.

Sales of the iPad and Mac range have fallen

The third quarter results beat analysts' expectations and shares surged in after-market trading.

Overall, the company's quarterly sales totalled $35.3bn (£23bn). The figure was $300m (£195m) up on the same period last year and $200m (£130m) above analysts' expectations.

Net profit was reported at $6.9bn (£4.49bn), down almost 22% from $8.8bn (£5.73bn) last year.

Apple chief executive Tim Cook said: "We are especially proud of our record June quarter iPhone sales of over 31 million and the strong growth in revenue from iTunes, Software and Services.

"We are really excited about the upcoming releases of iOS 7 and OS X Mavericks operating systems, and we are laser-focused and working hard on some amazing new products that we will introduce in the fall and across 2014."

In 2012 Apple was the most valuable listed firm globally, with a share price that peaked above $700 (£455) last September.

However, its stock has since dropped and sat below $419 (£272) on Tuesday's close, as concerns continue of Apple regaining its creative mojo.

The California-based company faces strong competition from Samsung, which is growing on the back of the popularity of its Galaxy S4 handset.

Samsung also makes many of its own components.

In April the South Korean manufacturer posted a 41% leap in earnings in the first quarter of this year - in the same week Apple reported its first annual slide in a decade.

Samsung made a net profit of 7.15tn Korean won (£4.2bn) for the period, up from 5.05tn won (£2.9bn) a year ago, attributed largely to a surge in sales of smartphones.

16.01 | 0 komentar | Read More

EasyJet Revenue Up 10.5% In Third Quarter

Low-cost carrier EasyJet has seen a quarterly rise in revenues due to increased passenger numbers and higher fares.

Revenue climbed 10.5% to £1.142bn in the three months to the end of June compared with a year earlier, the airline said in a statement.

Passenger numbers grew 2.6% to 16.4 million and seat capacity was boosted by 3.6%.

EasyJet added that it expects profit before tax for the 12 months to the end of September of between £450m and £480m - up from £317m in 2011/12.

In early Wednesday trading on the FTSE 100 easyJet shares were up 6.8%.

"EasyJet is performing strongly, driven by a combination of management initiatives and a benign capacity environment for easyJet in 2013," chief executive Carolyn McCall said.

She said 73% of seats had been booked for the second half of its fiscal year.

The firm's shareholders earlier this month voted by majority in favour of the airline's deal to buy 135 Airbus single-aisle A320 passenger planes, despite objections from founder Sir Stelios Haji-Ioannou.

Sir Stelios, who is easyJet's biggest shareholder, had described the purchase as a "bad deal" owing to the high cost.

EasyJet announced the transaction last month, which includes an agreement to buy 100 new generation Airbus neo aircraft.

It said at the time that it had negotiated "very substantial" discounts on the combined list price of $11.9bn (£7.7bn).

Industry sources told AFP that easyJet may end up paying only half the amount.

Airlines including British Airways owner IAG, Lufthansa and Air France-KLM are slashing jobs and shelving growth plans as they grapple with soaring jet fuel prices and a weak economies, leaving gaps that budget carriers like easyJet have been quick to exploit.

EasyJet recently launched an air route between London and Moscow, as it continues to spread its network.

Sir Haji-Ioannou last year launched the first pan-African no-frills carrier, fastJet, while he and his family still own almost 37% of easyJet.

16.01 | 0 komentar | Read More

GSK Admits China Execs Flouted Law Over Drugs

GlaxoSmithKline (GSK) has said that some of its executives in China appeared to have broken the law as part of a major bribery scandal that has ensnared the UK pharmaceutical firm.

The news comes as rival UK drugmaker AstraZeneca has confirmed to Sky News its Shanghai office has also been visited by Chinese investigators.

GSK said that new proposed changes to its operations would result in lower prices of its medicines in China - an original issue and complaint made by authorities.

"Certain senior executives of GSK China, who know our systems well, appear to have acted outside of our processes and controls which breaches Chinese law," the firm's head of emerging markets, Abbas Hussain, said in a statement.

Mr Hussain, who was sent to China last week to lead GSK's response to the crisis, held a meeting with the Ministry of Public Security at which he also promised to review GSK's business model.

"Savings made as a result of proposed changes to our operational model will be passed on in the form of price reductions, ensuring our medicines are more affordable to Chinese patients," Mr Hussain added.

Meanwhile, AstraZeneca (AZ) believes the Shanghai investigation police launched relates to enquiries on a single employee.

GSK boss Sir Andrew Witty

In a statement given to Sky News, it said: "AstraZeneca can confirm that it was visited by the Shanghai Public Security Bureau ... regarding a local police matter focused on a sales representative.

"We believe that this investigation relates to an individual case and while we have not yet received and update from the Public Security Bureau, we have no reason to believe it's related to any other investigations."

In mid-afternoon trades on the FTSE 100 GSK shares were down 1.37% while AZ shares were down 0.47%. Both eased slightly before the close.

GSK initially denied any wrongdoing when police first announced an investigation into the company's Chinese operation.

Authorities alleged that more than £200m was funnelled to hundreds of travel agents in the country, which was then given to doctors, hospitals and health foundations as travel kickbacks.

Chinese police last week accused GSK of bribing officials and doctors to boost sales and raise the price of its medicines in China.

They said GSK transferred up to 3bn yuan (£232m) to 700 travel agencies and consultancies over six years.

Four senior Chinese executives from GSK have been detained and it said it was deeply concerned by the allegations, which it called "shameful".

In a statement, China's Ministry of Public Security said Mr Hussain apologised for the scandal during the meeting.

Mr Hussain was dispatched to China by chief executive Sir Andrew Witty, along with the group's global head of internal audit and a senior legal official on Friday, according to sources.

The CEO is expected to further detail what action the drugmaker is taking in response to the bribery allegations when he presents quarterly results on Wednesday.

The company has run into problems despite conducting up to 20 internal audits in China each year, resulting in the sacking of dozens of staff for misconduct.

In 2012, GSK dismissed 312 staff for policy violations worldwide, according to its annual corporate responsibility report, of which 56 were in China.

There has been widespread speculation that other multinational drug companies would be drawn into the corruption investigations.

The National Development and Reform Commission (NDRC) - China's powerful economic planning agency which sets and enforces drug prices - has announced the sector.

The NDRC said it would establish a web platform to monitor the pricing behaviour of drugs distributors, but has so far given few details.

Since 2000, the NDRC has made three rounds of adjustments on the maximum retail prices for medicines, the agency said in a statement posted on its website.

Those efforts were geared toward preventing a rise in prices.

"The next step is to establish an online platform for medicine factory price monitoring, and strengthen monitoring of distributors' pricing behaviour," the statement said, citing an unnamed official.

16.01 | 0 komentar | Read More

EU Review Reveals Fears About New Powers

Britain needs to keep control of its own tax policy and look out for any loss of control over foreign affairs, according to a new Government report on the EU.

The first part of the biggest review of Britain's involvement in the union in 40 years looked at what membership has brought the UK.

It will form the basis of David Cameron's renegotiation of the country's role in Europe before an in-out referendum he has pledged to hold by 2017.

The Government has described the review as "the most extensive analysis of the impact of EU membership on the UK ever undertaken".

It will publish 32 reports between now and 2014.

Drawn up by officials, they do not make recommendations but attempt to summarise how the EU helps and hinders the UK.

The first set looked at the European single market, taxation, foreign policy, overseas aid, health and animal welfare.

The report on foreign affairs raises concerns about the performance of EU institutions such as the diplomatic service - the external action service headed by Baroness Ashton.

"If the internal conditions of EU external action deteriorate, how will that affect our choices of how to deliver international impact in the British interest?" the report asks.

"If the institution's performance does not improve, or if there is an undesirable shift in control away from the member states, such as a greater role for the European Parliament, how will we alter our approach, what will the constraints be, and how will we use or develop our other partnerships and alliances as alternative vehicles?"

The report on health questioned the impact of EU regulations - such as the working time directive (WTD) and data protection laws - on the NHS.

"There was a strong view that it is important to consult more with health departments and their stakeholders on these areas from the outset. A number of concerns were raised about the negative impact of the WTD on the NHS," it said.

Foreign Secretary William Hague said the reports were an essential contribution to the debate on Britain's EU future.

"At a time when the EU is facing considerable challenges and discussion on the EU in Britain is intensifying, it is vitally important that the debate in the UK is as well-informed as possible," he said.

"These reports make a valuable contribution, not only to the debate in this country but also to the debate taking place in other European nations about the future of the EU."

16.01 | 0 komentar | Read More

Bentley To Build 'World's Most Luxurious SUV'

Bentley is to launch the world's most luxurious sports utility vehicle (SUV) in Crewe, creating an estimated 1,000 new jobs.

The company said the new model will include an investment of £800m in headquarters and development infrastructure.

The new model will be the fourth model line for the firm and the vehicle will be launched globally in 2016.

Bentley has not yet released an image of what the car will look like. China has become a key market for sales of the luxury marque.

The company, which is owned by the Volkswagen group, said it will be a "thoroughbred Bentley true to the brand hallmarks of luxury, performance, quality and craftsmanship".

It said: "The styling will set it apart from any other SUV on the road and will be true to the Bentley design DNA.

"It will be the most luxurious and most powerful SUV in the market."

Bentley was founded after the First World War and scored early success in motorsport, particularly at Le Mans.

It was later bought by Rolls-Royce and Volkswagen purchased the firm in 1998.

A price range has not been revealed for the new model however early estimates put the car's value at around £150,000.

Prime Minister David Cameron, speaking at the company's Crewe headquarters, said: "This £800m investment and 1,000 new jobs from Bentley is fantastic news for both Crew and for the UK as a whole.

"It is another important milestone in strengthening our economy."

The decision to make the car in Britain further reinforces the country's position as a key vehicle manufacturing location in the competitive global market.

Britain's automotive sector has continued to show strong performance figures amid a languishing status for other areas of the economy.

Mr Cameron added: "One sector that we know is sprinting ahead in the global race is our booming automotive industry.

"One vehicle rolls off the production line somewhere in the UK every 20 seconds and we have just launched the Government's automotive industrial strategy to help continue this success for years to come."

16.01 | 0 komentar | Read More

Economy Figures Set To Show 'Positive Growth'

By Tadhg Enright, Business Reporter

Economists are predicting good news when the first estimate of economic growth during April, May and June is revealed next week.

Analysts expect the Office for National Statistics to say that the economy grew by around 0.5% when it reveals its preliminary estimate for Q2 GDP on Thursday.

They point to several important economic indicators which have been positive in recent months.

Consumer confidence was at a 25-month high in June. Business confidence in Q2 was at its highest since 2007.

Retail sales volumes rose by 0.9% between Q1 and Q2. New car sales were 13.4% higher in June compared with the same month last year. 

Economist Vicky Pryce says consumers are more confident in spending money

Former government economic adviser Vicky Pryce told Sky News: "I think what's going on right now is that the consumer is very keen on spending.

"The consumer has reduced his savings ratio very substantially from about 7% a year ago to about 4% now so they are spending their way out of this recession. 

"It's not because they're earning an awful lot more, because of course average earnings have not really moved very much and there are all sorts of restrictions in terms of public sector wages, so they are suffering a little bit from that. But they are feeling a lot more confident so they're out there spending."

Even the International Monetary Fund, which recently encouraged the Government to ease public spending cuts, has revised upwards its forecast for UK economic growth in 2013 from 0.7% to 0.9%.

There are also signs of a resurgence in the property market

However, some of the economy's biggest problems remain with more Government cutbacks still on the horizon, banks still reluctant to lend and consumer prices rising at a faster rate than average wages.

Howard Archer, chief UK & European economist at IHS Global Insight, said: "There are still significant headwinds to growth which suggest that the upside for growth will be limited for some time to come and that the economy will likely remain prone to periodic losses of momentum.

"While we are encouraged by the recent extended and diverse good news on the UK economy, we currently remain cautious in markedly raising our GDP growth forecasts - especially given the many false dawns that there have been in recent times and the fact that events in the eurozone still pose a significant threat."

There is also mounting evidence of a resurgence in the property market with house prices rising in June and mortgage approvals at a 41 month high in May.

However critics of the Government's homebuying incentives such as Help To Buy have warned that it risks fuelling a property bubble.

Brunel University professor Moorad Choudhry told Sky News: "I'd like to ask why is the Government subsidising house purchases? That is something we got out of years back when we unwound tax relief on mortgages' interest.

"If I inject cheap money into the stock market and it rises, that's not genuine growth. It's conceptually similar to subsidising anything and it's a false growth."

16.01 | 0 komentar | Read More

Digital Tech Sector '60% Bigger Than Thought'

The scale and importance of digital technology firms to the UK's economy has been underestimated by the Government, a new report suggests.

The study claims there are almost 270,000 active companies in the UK compared to conventional measurements which put the figure at 167,000 firms.

The National Institute for Economic and Social Research (NIESR) report also claims the revenue reported by digital companies is growing 25% faster than that of traditional firms.

Researchers believe they have compiled a wider range of data for analysis.

The study draws on information gathered by software firm Growth Intelligence rather than the official Standard Industrial Classification (SIC), which was first devised 65 years ago and fails to properly classify a range of digital firms, the report said.

Max Nathan, senior research fellow at NIESR, said: "Policymakers have identified the digital economy as one of the UK's key economic strengths.

"That means they need to be aware of the true numbers of digital businesses around the country.

"The old image of tech businesses as start-ups that make no money is out of date too: using big data we show a broad array of active businesses selling digital products and services."

The report was funded by Google and the firm's chief economist Hal Varian said in the foreword: "The UK is one of the world's strongest internet economies yet the myth persists that it consists largely of tiny dotcom or biotech startups in a few high technology clusters that quickly bubble up and often go bust.

"The reality, as this report shows, is that the digital economy has spread into every sector, from architecture firms whose activities have become almost entirely digital to machine tool manufacturers who now use huge online data-processing facilities ... to monitor every aspect of their processes."

Mr Varian added: "The digital economy has spread into every part of the United Kingdom, not just in London and the South East but throughout the country, with particularly great intensity in places like Manchester, Middlesbrough and Aberdeen."

Google has recently been under fire for its ability as a digital multinational to allegedly shift UK advertising sales offshore to a base in Ireland, to reduce its UK tax liability significantly.

Business Secretary Vince Cable said: "This is an interesting alternative report. As our recently published Information Economy Strategy highlights, innovation, entrepreneurship and growth are spread throughout the UK.

"The information economy transforms every other business sector, driving productivity and creating new opportunities for growth."

16.01 | 0 komentar | Read More

GSK Admits China Execs Flouted Law Over Drugs

GlaxoSmithKline (GSK) has said that some of its executives in China appeared to have broken the law as part of a major bribery scandal that has ensnared the UK pharmaceutical firm.

The company also said that new proposed changes to its operations would result in lower prices of its medicines in China.

"Certain senior executives of GSK China, who know our systems well, appear to have acted outside of our processes and controls which breaches Chinese law," the firm's head of emerging markets, Abbas Hussain, said in a statement.

Mr Hussain, who was sent to China last week to lead GSK's response to the crisis, held a meeting with the Ministry of Public Security at which he also promised to review GSK's business model.

"Savings made as a result of proposed changes to our operational model will be passed on in the form of price reductions, ensuring our medicines are more affordable to Chinese patients," Mr Hussain added.

GSK initially denied any wrongdoing when police first announced an investigation into the company's Chinese operation.

Authorities alleged that more than £200m was funnelled to hundreds of travel agents in  the country, which was then given to doctors, hospitals and health foundations as travel kickbacks.

GSK boss Sir Andrew Witty

Chinese police last week accused GSK of bribing officials and doctors to boost sales and raise the price of its medicines in China.

They said GSK transferred up to 3bn yuan (£232m) to 700 travel agencies and consultancies over six years to facilitate the bribes.

Four senior Chinese executives from GSK have been detained and it said it was deeply concerned by the allegations, which it called "shameful".

In a statement, China's Ministry of Public Security said Mr Hussain apologised for the scandal during the meeting.

Mr Hussain was dispatched to China by chief executive Sir Andrew Witty, along with the group's global head of internal audit and a senior legal official on Friday, according to sources.

The CEO is expected to further detail what action the drugmaker is taking in response to the bribery allegations when he presents quarterly results on Wednesday.

The company has run into problems despite conducting up to 20 internal audits in China each year, resulting in the sacking of dozens of staff for misconduct.

In 2012, GSK dismissed 312 staff for policy violations worldwide, according to its annual corporate responsibility report, of which 56 were in China.

There has been widespread speculation that other multinational drug companies would be drawn into the corruption investigations.

The National Development and Reform Commission (NDRC) - China's powerful economic planning agency which sets and enforces drug prices - has announced the sector.

The NDRC said it would establish a web platform to monitor the pricing behaviour of drugs distributors, but has so far given few details.

Since 2000, the NDRC has made three rounds of adjustments on the maximum retail prices for medicines, the agency said in a statement posted on its website.

Those efforts were geared toward preventing a rise in prices.

"The next step is to establish an online platform for medicine factory price monitoring, and strengthen monitoring of distributors' pricing behaviour," the statement said, citing an unnamed official.

16.01 | 0 komentar | Read More

OECD Warns Of 'Double-Tax Chaos' For Firms

By Ed Conway, Economics Editor

The OECD has raised the prospect of a global tax war, with companies caught having to pay double the levels of previous years, unless countries agree to a new international deal on corporate tax avoidance.

In a landmark report, the Organisation for Economic Co-operation and Development has warned that the international agreements set up in the 1920s to prevent companies paying double the tax on their profits in different countries could be abandoned, leaving "chaos" in their wake.

The warning came as it presented a 15-point action plan aimed at tackling tax avoidance by multinational companies such as Google and Starbucks.

It said that many companies - particularly those involved in the digital and internet sectors - were able to reduce their tax bills by shifting profits around the world to areas where rates are lowest, taking advantage of 90-year old rules aimed at preventing them being charged tax twice in different countries.

The perverse upshot of these League of Nation "double taxation" rules, it pointed out, was "double non-taxation".

However, it warned that unless Governments agreed an international scheme to police this, countries were likely to throw away the existing rules, resulting in "the replacement of the current consensus-based framework by unilateral measures, which could lead to global tax chaos marked by the massive re-emergence of double taxation".

The report added: "In fact, if the Action Plan fails to develop effective solutions in a timely manner, some countries may be persuaded to take unilateral action for protecting their tax base, resulting in avoidable uncertainty and unrelieved double taxation."

The report was delivered as finance ministers from the G20 group of nations met in Moscow for their annual meeting.

The OECD's hope is that the action plan is adopted either at this conference or at the heads-of-state meeting in St Petersburg next month.

However, some countries, including Russia and the United States, have expressed concern about the consequences of rewriting international corporate tax agreements that have been in place for almost a century.

The OECD plan suggests an investigation into measuring the creation of value in internet firms (in order to identify where taxes ought to be paid), as well as proposals to tackle complex structures which help companies avoid tax.

16.01 | 0 komentar | Read More

Mothercare Mulls Sale Of Early Learning Centre

By Mark Kleinman, City Editor

Mothercare is considering the sale of its loss-making Early Learning Centre (ELC) chain as it bids to meet a target of restoring its UK operations to profitability by 2015.

Sky News has learnt that Mothercare has been holding talks with potential advisers about a sale in recent weeks, although the company has not yet made a formal decision to offload the specialist retailer of educational toys for young children.

Analysts believe that disposing of the business, which has perennially underperformed during the six years that it has been owned by Mothercare, may be difficult because of its poor track record.

It may, however, appeal to firms which are accustomed to investing in struggling high street chains, such as Hilco, which snapped up HMV for a token price earlier this year.

In a trading update published on Thursday, Mothercare said that it had continued to close stores in the UK amid difficult trading conditions.

"The UK market has been very competitive during the last quarter and we have continued to focus on delivering cash margin," it said.

"In line with our plan, we closed a further 13 loss-making stores (four Mothercare and nine Early Learning Centre) during the first quarter of the year.

"We now have 242 stores (192 Mothercare and 50 Early Learning Centre) in the UK. Space is down 7.7% year-on-year and is reflected in the 7.9% decline in total UK sales for the first quarter."

The talks with banks about a sale of ELC could result in an appointment imminently, with Lazard understood to be in the frame for the role.

Mothercare paid £85m for ELC but is unlikely to recoup anything like that sum if it manages to sell the chain.

The group wants to cash in on the imminent birth of the royal baby with the launch of a range of themed products, Simon Calver, the former Lovefilm executive who now runs Mothercare, said on Thursday.

Mothercare, which has a market value of around £400m, now has a much larger business outside the UK than in its home market. It's share price has rebounded strongly since Mr Calver's arrival.

A Mothercare spokeswoman declined to comment.

16.01 | 0 komentar | Read More

Economy Figures Set To Show 'Positive Growth'

By Tadhg Enright, Business Reporter

Economists are predicting good news when the first estimate of economic growth during April, May and June is revealed next week.

Analysts expect the Office for National Statistics to say that the economy grew by around 0.5% when it reveals its preliminary estimate for Q2 GDP on Thursday.

They point to several important economic indicators which have been positive in recent months.

Consumer confidence was at a 25 months high in June. Business confidence in Q2 was at its highest since 2007.

Retail sales volumes rose by 0.9% between Q1 and Q2. New car sales were 13.4% higher in June compared with the same month last year. 

Economist Vicky Pryce says consumers are more confident in spending money

Former government economic advisor Vicky Pryce told Sky News: "I think what's going on right now is that the consumer is very keen on spending. The consumer has reduced his savings ratio very substantially from about 7% a year ago to about 4% now so they are spending their way out of this recession. 

"It's not because they're earning an awful lot more because of course average earnings have not really moved very much and there all sorts of restrictions in terms of public sector wages so they are suffering a little bit from that. But they are feeling a lot more confident so they're out there spending."

Even the International Monetary Fund, which recently encouraged the Government to ease public spending cuts, has revised upwards its forecast for UK economic growth in 2013 from 0.7% to 0.9%.

However, some of the economy's biggest problems remain with more Government cutbacks still on the horizon, banks still reluctant to lend and consumer prices rising at a faster rate than average wages.

There are also signs of a resurgence in the property market

Howard Archer, chief UK & European economist at IHS Global Insight, said: "There are still significant headwinds to growth which suggest that the upside for growth will be limited for some time to come and that the economy will likely remain prone to periodic losses of momentum.

"While we are encouraged by the recent extended and diverse good news on the UK economy, we currently remain cautious in markedly raising our GDP growth forecasts - especially given the many false dawns that there have been in recent times and the fact that events in the eurozone still pose a significant threat."

There is also mounting evidence of a resurgence in the property market with house prices rising in June and mortgage approvals at a 41 month high in May.

However critics of the Government's homebuying incentives such as Help to Buy have warned that it risks fuelling a property bubble.

Brunel University professor Moorad Choudhry told Sky News: "I'd like to ask why is the Government subsidising house purchases? That is something we got out of years back when we unwound tax relief on mortgages' interest.

"If I inject cheap money into the stock market and it rises, that's not genuine growth. It's conceptually similar to subsidising anything and it's a false growth."

16.01 | 0 komentar | Read More