Wellcome Trust Toasts £100m Alibaba Profit

By Mark Kleinman, City Editor

Britain's biggest medical research charity is toasting a £100m-plus profit from the flotation of Alibaba Group, the Chinese internet giant that on Friday became the biggest technology company listing ever.

Sky News has learned that at the $68-a-share (£42) pricing settled upon by bankers advising Alibaba, the Wellcome Trust is sitting on a substantial paper windfall from two separate investments it made in the company's shares in recent years.

The news represents a significant boost for medical research funding in the UK and underpins the Wellcome Trust's highly-regarded investment strategy, led by its chief investment officer, Danny Truell.

Jack Ma, Alibaba's founder and now a multibillionaire as a consequence of the company's flotation, was present for the opening bell at the New York Stock exchange on Friday.

The share sale is eventually expected to raise $25bn (£15.3bn), making it the biggest initial public offering in history, once an over-allotment option is exercised.

The Wellcome Trust owns significantly less than 1% of Alibaba stock

It has overtaken Agricultural Bank of China's $22.1bn (£13.5bn) fundraising in 2010 and Facebook, which sold more than $16bn (£9.8bn)  of shares in 2012 to become the biggest-ever technology company listing.

Sky News disclosed the Wellcome Trust's investment in Alibaba in March.

Insiders said the Wellcome Trust, which is one of the world's most renowned medical research organisations, owns significantly less than 1% of Alibaba's shares, although the exact size of its holding is unclear.

A Wellcome Trust spokesman declined to comment.

Alibaba, which is headquartered in Hangzhou, one of China's so-called second-tier cities, has become a major player in the country's e-commerce industry.

It acts as an eBay-style intermediary in the supply and sale of goods online, having established marketplaces targeted at small business traders and consumers.

Using the brand-name Taobao, an e-shopping platform that in China has more than 500 million customers, Jack Ma, Alibaba's founder and chairman, has become one of the world's most successful technology entrepreneurs.

Talks between Alibaba and the Hong Kong Stock Exchange ended without success because of the company's desire to create an alternative shareholding structure that would have given executives additional control over the company.

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Alibaba Bigger Than Facebook On Market Debut

Alibaba Boss Like A Rock Star At 'Epic' IPO

Updated: 7:22pm UK, Friday 19 September 2014

By Hannah Thomas-Peter, New York Correspondent

As Jack Ma swept past me on the floor of the New York Stock Exchange, I asked him how he was feeling.

He smiled at me, waved and mouthed "ok" before turning to a bank of cameras trained on the founder and spiritual leader of Alibaba.

"Ok," felt like a bit of an understatement.

Such was the demand and volume associated with the Alibaba IPO it took nearly two-and-a-half hours for the New York Stock Exchange's designated market maker (DMM) to decide on the right opening price.

The DMM is a person, not a computer. In this case it was Barclays' Glenn Carell.

He was also the DMM for the Twitter IPO, and is responsible for gauging appetite and supply, honing in on the right opening price for a stock.

It's a big job.

If there are technical problems he can override the system and trade on paper.

If there's uncontrollable volatility he can use his company's own cash to step in and stabilise things.

He told Sky News: "This is a very exciting day for me.

"It's the biggest IPO ever, and we really want to get the best price for opening.

"We have to go slow and get it right."

As traders crowded in on Glenn communicating orders from clients, electronic requests also poured in from across the world, flashing up on screens in front of his team.

Over two hours the price indicator range, which helps investors know how much the shares will cost once trading begins, crept from around $80 to over $90.

"Investors really want this stock," said Meridian Partners trader Jonathan Corpina.

"They see a very well-diversified company with huge international exposure.

"Even if US investors don't know the brand name, the product is easy to understand, and it's a good one."

As Glenn yelled "we're getting close!" the traders bunched together like rugby players in a scrum, whoops rang out, tension rose.

"Come on Glenn what's the price? Close it, close it," muttered one trader, his electronic trading tablet buzzing and beeping with impatient clients.

"$92.70!" came the shout, and trading began, starting with a short-lived 'pop' up to $99, before settling back down in Glenn's predicted range.

"Phew" said one NYSE executive to another.

"I tell you, that was pretty epic."

Glenn looked relieved as trading continued smoothly, confessing he would be having a glass of champagne later that evening.

Jack Ma may well do the same.

As he left the exchange to get in to his car, it was as if a rock star had left his concert.

Fans yelled and screamed and cheered and photographed for all they were worth.

Ma waved, smiled and slipped in to a waiting SUV.

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Hundreds Of Phones 4U Jobs Saved

Almost 900 jobs at collapsed retail chain Phones 4u have been saved after network operator Vodafone struck a deal to buy 140 stores.

However, administrator PwC said it had failed to prevent 628 redundancies among head office and telesales staff at Phones 4u's Staffordshire offices.

PwC is continuing talks with other parties regarding the purchase of assets and said it planned to retain a further 400 head office staff to assist with its work.

It will release details of the 140 stores in the Vodafone deal on Monday.

Phones 4u went into administration last Monday following EE's decision not to renew its contract.

The firm employed 5,600 workers at 560 Phones 4u stores and a further 160 concession outlets.

Dixons Carphone said on Wednesday it will take on the 800 staff who worked at 160 Phones 4u sites within Currys/PC World stores.

Now Vodafone UK has made an offer to buy 140 stores following an approach from PwC.

Phones 4u has been in difficulty for some time

It said: "Our offer was accepted by the administrator and we are pleased to report that approximately 900 (887) former Phones 4u employees will keep their jobs and join our dynamic retail business.

"Subject to court approval, we will start engaging with these employees and begin the rebranding of the stores to Vodafone as soon as possible."

Store staff have been asked to remain at home while talks take place with parties interested in buying parts of the estate.

PwC partner Rob Hunt said: "It is with great sadness and regret that we have today made the difficult decision to make 628 head office and telesales staff redundant.

"Our thoughts are with those employees at this difficult time. We will make every effort to help the affected staff, working with the Phones 4u HR team over the coming days to support employees."

Various deals to rescue Phones 4u have been considered but all have stalled.

They included a debt-for-equity swap in which bondholders would have wiped out an estimated £760m of debt to reopen contract talks with EE and Vodafone.

EE and other network operators have been accused of a "co-ordinated attempt to kill off" Phones 4u - a claim they have all denied.

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Scotland Votes No: PM Promises New Powers

Devo Max: What Devolution Revolution Means

Updated: 9:51am UK, Friday 19 September 2014

David Cameron has pledged new powers for Scotland that some have said amount to Devo Max. However, it's not quite as clear cut as that.

What is Devo Max?

Scottish Parliament basically gets power over everything - apart from defence and foreign affairs. Maximum devolution.

Is that on offer?

No it's not, although some say David Cameron, Nick Clegg and Ed Miliband have come close to that.

What powers does Scotland already have?

It makes its own laws on health, education, law and order, environment, social services, housing, local government, tourism, agriculture, forestry, fisheries and some areas of transport. It can also raise or lower its income tax by 3p, but has not used this power.

What does Westminster have control of?

Defence, social security, immigration, benefits, foreign policy, employment, broadcasting, trade and industry, nuclear energy, oil, gas and electricity, consumer affairs and the constitution.

What powers will be given away in this quasi Devo Max deal?

It is not entirely clear. More power over setting income tax is definitely on the agenda, and control of housing benefits too. Holyrood is unlikely to get control over the oil take or corporation tax.

Under Gordon Brown's 12-point plan, giveaways include power over borrowing, job creation, social care and employment rights. The Scottish Parliament will also be confirmed as permanent, binding future governments to ensure its continued existence.

But what about England, Wales and Northern Ireland?

Well, Mr Cameron has also promised more powers for Wales and Northern Ireland and to listen to the "millions of voices of England". He has promised to address the problem of "English votes for English laws" or the West Lothian question as it is also called. 

At the moment Scotland's 59 MPs can vote on matters that affect all of the UK but English MPs cannot vote on Scottish matters where powers have been devolved to Holyrood. 

With the promise of new powers for Scotland's Parliament, it has led to calls of "unfair" and for England to get more powers and the Prime Minister has said he will deliver. A sort of devolution revolution, if you will. 

Leader of the House of Commons William Hague is in charge of drawing up these plans but do expect that the Lib Dems and Labour will have rival versions. No cross-party consensus has been reached as with devolved powers for Scotland.

Make no mistake, it's a major shake-up - and yes, it will be an election issue.

So when is all this going to happen?

Gordon Brown has tabled a House of Commons debate over his planned 12-point power giveaway and the timetable for its delivery in mid-October.

There intention is that a new draft law to be drawn up by January 25 (Burns Night). Alex Salmond has agreed to talks to thrash out the details of these new powers but he will clearly be trying to get as close to delivering Devo Max as he can - having lost the battle for independence. It will not be passed until after the General Election in May but as there is a cross-party agreement theoretically, this should not provide a problem.

But the plans for England, Wales and Scotland do not have to work to the same timetable. They could be far more contentious as the parties are unlikely to agree on plans. Any English votes for English laws will put Labour at a distinct disadvantage as it effectively loses 40 MPs if its Scottish politicians are not included.

In addition, English MPs may be reluctant to allow new powers for Scotland to go through when they don't know "what's in it for them". 

In short, this could get messy and take a very long time.

:: Watch live: Scottish referendum coverage now on Sky News Sky 501, Virgin Media 602, Freesat 202, Freeview 132.

:: Live coverage is also available on sky.com/news and Sky News for iPad and on your mobile phone.

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Scotland Vote: Investors Spark Relief Rally

What Now For UK? 10 Things You Need To Know

Updated: 9:56am UK, Friday 19 September 2014

Scotland has rejected independence. So what happens now, and can we all still be friends?

1) What new powers will Scotland get?

David Cameron, Nick Clegg and Ed Miliband have all promised Scotland will get some - although we don't yet know exactly what they are. Gordon Brown has set out a 12-point plan and will be drawing up the Home Rule deal. Remember Scotland already makes its own laws in a number of areas including health and social services, education, and law and order.

2) When will it get them?

Work will start straight away. Mr Brown has secured a House of Commons debate on October 16 and a command paper is expected at the end of that month. A draft new law will be drawn up by January 25, 2015 - Burns Night - but this will not be passed until after the General Election.

3) Will there be another referendum?

No, at least not any time soon. Scotland's First Minister Alex Salmond has said he will accept the result and has no appetite for another vote. However, the issue of independence has cropped up once or twice before... Never say never.

4) Will Scottish people pay less tax than England?

They could, yes. The new powers will give Scotland more power over setting income tax. Still it's worth noting that Holyrood already has power to vary income tax by 3p above or below the rest of the UK (set to rise to 10p in 2016). It's never used them.

5) Will Scotland get better benefits?

Potentially, yes. It's likely the new powers will give Scottish Parliament more say on housing benefit, which could see it scrap the unpopular so-called "bedroom tax".

6) Will Wales and Northern Ireland want a slice of the cake?

Yes - and David Cameron has indicated that they will get more powers and will be part of drawing up a "new and fair settlement" for the whole of the UK. This new "devolution revolution" will also mean England's MPs will get a greater say in English matters.

7) Will Scotland carry on getting a greater allocation of wealth than England under the Barnett Formula?

It seems so. Mr Cameron, Mr Clegg and Mr Miliband have said the method for allocating the UK wealth will continue. Scotland does a lot better out of it than England. Northern Ireland comes out top. It's unpopular and even the man who came up with it, Labour peer Lord Barnett, has said it's outdated.

English MPs are not happy and it remains to be seen if it will be altered under the new deal. However, Chief Secretary to the Treasury Danny Alexander says he thinks it is good for the whole of the UK.

8) Will Scottish MPs still be able to vote on English matters?

This head-scratcher is called the West Lothian question - because it was raised by Labour's West Lothian MP Tam Dalyell… in 1977.

Scotland's 59 MPs can vote on any issues in Westminster - even swaying votes on matters that will not affect their constituents - but English MPs cannot vote on powers devolved to Scotland.

Mr Cameron has promised that this "question of English votes for English laws" will be addressed and that the "millions of voices of England must be heard".

9) Can England have its own parliament now?

Maybe. A growing number of MPs are calling for an English parliament, led in the main by Tory MP John Redwood. However, it will clearly be part of the talks in the coming months. Leader of the House of Commons William Hague will be drawing up plans on powers for England, Wales and Northern Ireland. Expect rival Labour and Lib Dem versions.

10) Can England and Scotland still be friends?

Expect initial hostilities after the slings and arrows of a fairly feisty campaign but take comfort from history. The two nations have had their differences but have rubbed along for centuries. That said, Andy Murray has taken a fair drubbing on Twitter after coming out for the Yes campaign. And there's always football - the two countries meet in a 'friendly' in November.

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What Now For UK? 10 Things You Need To Know

Scotland has rejected independence. So what happens now, and can we all still be friends?

1) What new powers will Scotland get?

David Cameron, Nick Clegg and Ed Miliband have all promised Scotland will get some - although we don't yet know exactly what they are. Gordon Brown has set out a 12-point plan and will be drawing up the Home Rule deal. Remember Scotland already makes its own laws in a number of areas including health and social services, education, and law and order.

2) When will it get them?

Work will start straight away. Mr Brown has secured a House of Commons debate on October 16 and a command paper is expected at the end of that month. A draft new law will be drawn up by January 25, 2015 - Burns Night - but this will not be passed until after the General Election.

3) Will there be another referendum?

No, at least not any time soon. Scotland's First Minister Alex Salmond has said he will accept the result and has no appetite for another vote. However, the issue of independence has cropped up once or twice before... Never say never.

4) Will Scottish people pay less tax than England?

They could, yes. The new powers will give Scotland more power over setting income tax. Still it's worth noting that Holyrood already has power to vary income tax by 3p above or below the rest of the UK (set to rise to 10p in 2016). It's never used them.

5) Will Scotland get better benefits?

Potentially, yes. It's likely the new powers will give Scottish Parliament more say on housing benefit, which could see it scrap the unpopular so-called "bedroom tax".

6) Will Wales and Northern Ireland want a slice of the cake?

Yes - and David Cameron has indicated that they will get more powers and will be part of drawing up a "new and fair settlement" for the whole of the UK. This new "devolution revolution" will also mean England's MPs will get a greater say in English matters.

7) Will Scotland carry on getting a greater allocation of wealth than England under the Barnett Formula?

The yearly per-capita distribution of wealth under the Barnett formula

It seems so. Mr Cameron, Mr Clegg and Mr Miliband have said the method for allocating the UK wealth will continue. Scotland does a lot better out of it than England. Northern Ireland comes out top. It's unpopular and even the man who came up with it, Labour peer Lord Barnett, has said it's outdated.

English MPs are not happy and it remains to be seen if it will be altered under the new deal. However, Chief Secretary to the Treasury Danny Alexander says he thinks it is good for the whole of the UK.

8) Will Scottish MPs still be able to vote on English matters?

This head-scratcher is called the West Lothian question - because it was raised by Labour's West Lothian MP Tam Dalyell… in 1977.

Scotland's 59 MPs can vote on any issues in Westminster - even swaying votes on matters that will not affect their constituents - but English MPs cannot vote on powers devolved to Scotland.

Mr Cameron has promised that this "question of English votes for English laws" will be addressed and that the "millions of voices of England must be heard".

9) Can England have its own parliament now?

Maybe. A growing number of MPs are calling for an English parliament, led in the main by Tory MP John Redwood. However, it will clearly be part of the talks in the coming months. Leader of the House of Commons William Hague will be drawing up plans on powers for England, Wales and Northern Ireland. Expect rival Labour and Lib Dem versions.

10) Can England and Scotland still be friends?

Expect initial hostilities after the slings and arrows of a fairly feisty campaign but take comfort from history. The two nations have had their differences but have rubbed along for centuries. That said, Andy Murray has taken a fair drubbing on Twitter after coming out for the Yes campaign. And there's always football - the two countries meet in a 'friendly' in November.

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Decision Day For Voters: Scots Go To Polls

By Jon Craig, Chief Political Correspondent

Scottish people have started voting in a referendum that will change Britain forever, whatever the outcome.

Scottish First Minister Alex Salmond was pictured outside Ritchie Hall polling station in Strichen, Aberdeenshire, after polls opened this morning.

Gordon Brown outside a polling station in Fife

Meanwhile, former PM Gordon Brown was photographed with No campaigners outside the polling station at North Queensferry Community Centre, Fife. 

Elsewhere, long queues began to form outside polling stations across the country.

A Yes vote at the end of a hard-fought campaign will bring an end to the Union of the United Kingdom that has stood for 307 years.

Voters will be asked a simple question: "Should Scotland be an independent country?"

Alex Salmond heads for a polling station in Aberdeenshire

Four million people will take part in the referendum which is expected to produce a turnout as high as 90%.

More than 2,600 schools, sports centres and local halls have opened their doors to voters.

After the polls close at 10pm tonight, counting of the votes takes place at 32 regional centres all over Scotland and then once each result is in, the numbers will be sent to the main counting centre in Edinburgh.

The earliest declarations, at around 2am on Friday, will include North Lanarkshire, Orkney, East Lothian and Perth and Kinross.

The latest, at 6am, is expected to be Aberdeen. Dundee is expected at 3am and Edinburgh and Glasgow at 5am.

:: Watch live: Scottish referendum coverage from 9pm on Sky News Sky 501, Virgin Media 602, Freesat 202, Freeview 132.

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Scotland: Keep Up With Events As They Unfold

Polls have opened in Scotland but what next? Here is the timetable of what to expect over the next 24 hours and where you can find our correspondents.

Thursday:

7am Polling stations open.

7.30am Deputy First Minister Nicola Sturgeon votes in Broomhouse, Glasgow.

9am Scotland's First Minister Alex Salmond to cast his vote in Fraserburgh, Aberdeenshire, while Gordon Brown votes in North Queensferry.

9.30am Better Together campaign leader Alistair Darling votes in Edinburgh.

9pm A Sky News special programme dedicated to the referendum begins.

10pm Polls close.

Midnight The counting of ballot papers gets under way across Scotland's 32 local authorities.

Throughout the day, Sky News correspondents will be reporting from Scotland as voters go to the polls. During the morning, political correspondent Anushka Asthana will be in Glasgow before political editor Faisal Islam takes over from Holyrood, Edinburgh, at midday. Scotland bureau chief James Matthews begins reports from 3pm.  

Friday:

2am First seven councils expected to declare their results: East Lothian, Inverclyde, Moray, North Lanarkshire, the Orkney Islands, Perth and Kinross and the Western Isles.

2.30am Clackmannanshire votes declared.

3am Aberdeenshire, Angus, Dumfries and Galloway, Dundee, East Ayrshire, East Renfrewshire, Falkirk, Renfrewshire, South Lanarkshire, Stirling and West Dunbartonshire to declare - that will bring counting to just under half the votes to be counted.

3.30am Midlothian, Shetland, South Ayreshire, Argyll, West Lothian and East Dunbartonshire to declare.

4am Fife and Highland to declare.

4.30am North Ayrshire will declare votes.

5am Declarations expected from the Scottish Borders, Edinburgh and Glasgow. Final outcome may now be clear.

6am Aberdeen will be the last to declare.

7am: Chief counting officer Mary Pitcaithly expected to announce result from the Royal Highland Centre in Ingliston outside Edinburgh.

Overnight and into the morning Sky News correspondents and presenters provide detailed coverage and analysis of the poll.  Adam Boulton reports on the central count at the Royal Highland Centre, in Ingliston, Edinburgh, while fellow anchor Kay Burley reports on the count from Glasgow. Niall Paterson reports on the Aberdeenshire count, while Mark White covers North Lanarkshire. Rachel Younger covers Orkney and Jon Craig covers Dundee. Meanwhile, Anushka Asthana reports from the No campaign HQ in Glasgow and Faisal Islam from the Yes HQ in Edinburgh. Throughout the night our correspondents will also provide analysis from Westminster and Sky News HQ in west London.   

:: Watch live: Scottish referendum coverage from 9pm on Sky News Sky 501, Virgin Media 602, Freesat 202, Freeview 132.

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Rush To Beat Vacuum Ban Drives Shop Sales Up

A rush to buy high-powered vacuum cleaners to beat an EU ban helped push UK retail sales higher in August.

The Office for National Statistics (ONS) said it measured a surge in sales last month as new rules meant that from September 1, companies were unable to manufacture or import any vacuums with motors above 1,600 watts.

The move was designed to boost energy efficiency and tackle climate change - with the EU insisting the law would not have an impact on cleanliness as the motor's power did not determine its efficiency.

The ONS said it also noticed a 23.4% leap in furniture sales on the same period last year - with desks and flat-pack furniture leading the way as students prepared for a new university academic year.

Total retail sales rose 3.9% on the year last month, the ONS said, with volumes 0.4% higher than in July.

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Emotional Tug Of Freedom Against Economic Risk

By Faisal Islam, Political Editor

The Prime Minister has signed off from the independence referendum campaign with a final speech in Aberdeen.

Facing a friendly audience of Scottish pensioners, oil executives and Conservatives, the Prime Minister pleaded with Scots to reject independence in the too-close-to-call referendum on Thursday.

Arriving to a slick marketing video featuring three centuries of historic achievements of the Union - from Pankhurst to Wilberforce and Darwin to the British Lions - an emotional PM told the audience: "We want you to stay. Head and heart and soul, we want you to stay.

Alex Salmond: "Cameron's prints are all over a scaremongering campaign"

"Please don't mix up the temporary and the permanent. Please don't think 'I'm frustrated with politics right now, so I'll walk out the door and never come back'.

"If you don't like me - I won't be here forever. If you don't like this Government - it won't last forever. But if you leave the UK - that will be forever.

"Yes, the different parts of the UK don't always see eye-to-eye. Yes, we need change - and we will deliver it. But to get that change, to get a brighter future, we don't need to tear our country apart."

There would be no "trial separation" but the prospect of a "painful divorce" for the UK under a Yes vote.

The PM's key message, though, was of "safer change". The status quo was not on the ballot paper. He reassured his audience that a No vote would trigger "a major, unprecedented programme of devolution with additional powers for the Scottish Parliament", that Gordon Brown's timetable of delivery by January was "set in stone".

He said it amounted to an offer of guaranteed change for the Scottish people without losing the "UK pension, the UK pound and the UK passport".

The question, of course, is whether the Scottish people are going to trust such promises, as there's a history of that type of thing not being delivered by Westminster.

Some Conservative backbenchers are very nervous of the promises offered to keep Scotland in the Union. In an interview with Sky News Tonight, the leader of the Better Together No campaign Alistair Darling addressed this point and said Labour had promised and did deliver the Scottish Parliament.

But few can tell how such late promises are going to go down with many Scottish people distrustful of what they see as a Westminster elite.

Mr Darling also told Sky News of his concern about how the tone of the campaign had soured, and referred to protests by Yes campaigners against journalists as "deeply sinister".

His assessment that some of the campaigns against out-of-favour journalists by the Yes campaign - posters and the like - were "deeply sinister".

He said there was a quiet majority who might be afraid to speak out, who will say "no thanks" to independence on Thursday.

He also said he found it galling that EU nationals get a vote in Scotland whereas Scots who have moved down south don't get a vote. Although he accepted that this was the agreed system for the referendum.

The broader picture, though, is what some politicians are calling the "air war" - big ideas, facts, debates about currency union and devolution - is over.

The next two days of campaigning is all about the "ground war" - getting the vote out and going into people's homes. And this message of Safer Change is very specifically calibrated - not at Yes voters or No voters - but the fact there is a rump of Scots who have a bit of both Yes and No within them.

Alistair Darling told Sky News that the tone of the campaign had "soured"

They are trying to tip that balance away from the emotional tug of freedom for Scotland towards a hard-headed assessment of economic risk.

Earlier, First Minister Alex Salmond visited Edinburgh Airport where he claimed Mr Cameron's "fingerprints are all over a scaremongering" campaign by banks, businesses and leading retailers who have voiced their concerns over independence.

Mr Salmond said: "The next time he [Mr Cameron] comes to Scotland it will not be to love-bomb or engage in desperate last-minute scaremongering, and following a Yes vote it will be to engage in serious post-referendum talks in the best interests of the people of Scotland and the rest of the UK, as pledged in the Edinburgh Agreement."

The Prime Minister, abundantly self-aware that there are limits to the persuasive appeal of any Conservative prime minister in Scotland, will now return to London for the remainder of this closely-fought campaign. The Labour Party will step up its campaign with the return of Opposition leader Ed Miliband on Tuesday.

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Westminster Leaders Pledge 'No' Vote Powers

How Facebook Shaped The Referendum

Updated: 8:27am UK, Tuesday 16 September 2014

By James Matthews, Scotland Correspondent

It's Facebook 'wot might win it.

Sure, the August poll surge in support for independence was down, in part, to traditional campaigning. Meetings and megaphones have thrust the Yes campaign "in yer face" over years leading up to Thursday.

But why, according to the opinion polls, did it all seem to come together in the space of a few weeks? Why, suddenly, the knife-edge?

In the word of a senior Yes strategist: Facebook.

I chatted to him as the Alex Salmond Labour Heartland tour rolled up at its latest venue, playing to the target market through the TV cameras. It was a big, well-attended, photo-call - the staple diet of the political campaign.

As the strategist stood back from the madding crowd, he told me that the magic formula didn't lie in the blood and snotters of a mass media scrum, but in the quiet exploitation of social media. Facebook, in particular.

The challenge for supporters of Scottish independence, historically, has been in turning it from a fringe notion into something people allow themselves to contemplate. Check their election success at the Scottish Parliament to see the considerable style with which that's been accomplished.

Scots have taken the hop and a step. Why, now, might they be shaping to take the jump? 

The Yes strategist pinned it on Facebook.

"Ask yourself," he said, to paraphrase him, "if a parent wants to check on their youngster who's on a night out, what do they do?  They don't phone them, because they probably won't answer.

"They might text ... but, invariably, they'll Facebook them. And when they do, dozens or hundreds of their friends will see it. It's a chat network that plugs people into the other people they value. There are no better opinion-formers for someone than the friends and family they like and trust.

"So, as a campaigning tool, it's been very effective. We encourage Yes supporters to spread the word to their Facebook friends and, over time, you build a network around people that builds a political case.

"Facebook is more effective than Twitter. You put something on Twitter and you reach people within the political bubble. With Facebook, you tap into a far bigger community."

So why the spike in support for Yes after polls that had No with a consistent and strong lead over the course of a two and a half year campaign?

"People just didn't turn their mind to the referendum until it actually came round. It's been in the far distance for most of the campaign but, now that people realise they're getting to decision time, large numbers are now weighing up the arguments ... and they're deciding having had their views on independence softened by Facebook friends."

There were more than 10 million referendum-related interactions on Facebook in the five weeks to September 8 - 85% of which was from Scotland.

He said he reckoned the Yes campaign had been four or five times more active than their opponents on Facebook and pointed out a Facebook chat with Scotland's pro-independence First Minister Alex Salmond attracted around 5,000 questions.

Data suggests the Yes campaign is slightly in the lead with 2.05 interactions in Scotland compared to 1.96 million for the no campaign.

The strategist said the campaigning beauty of social media was that it eliminated the need to rely on mainstream media coverage, that the likes of Facebook cut out the middle man and enabled them to reach out to the voter directly.

Just how many the campaign has touched and what effect it has had, we'll find out soon enough.

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Inflation Slips But House Price Growth Surges

Official figures have charted an easing in the annual rate of inflation but house price growth accelerating to a seven-year high.

Separate releases by the Office for National Statistics (ONS) showed CPI inflation at 1.5% - falling back from 1.6% the previous month - with the biggest contributions coming from the supermarket price war and falling petrol costs.

The means that while wage growth remains much weaker that the rate of inflation - maintaining the squeeze on earnings - the gap was slightly reduced.

The ONS statistics on house prices however showed that purchasers would need to dig deeper for a deposit.

The average cost of a home rose 11.7% to a new record high of £272,000 in the year to July though annual growth in London slipped slightly to a rate of 19.1% from 19.3% the previous month.

The official ONS figures lag other major market surveys, which have previously suggested that growth levels slowed in August.

But its report showed several UK regions saw property prices reach fresh all-time highs in July.

The East Midlands, West Midlands and South West joined London, the East and the South East in having price levels higher than their pre-financial crisis peaks of 2007/08, the ONS said.

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Scotland: Pub Boss Downs Cost Sceptics

The chairman of pub chain JD Wetherspoon, Tim Martin, has told Sky News he does not share the view that price rises are inevitable if Scotland goes it alone.

His comments will be seen as a boost to the Yes campaign of First Minister Alex Salmond after a string of major banks and retailers warned of potential cost increases under independence from the UK.

Asda and John Lewis said on Thursday that sums would inevitably be passed on to the consumer while BP went as far as to say that it opposed independence.

Sky's City Editor Mark Kleinman reported earlier on Friday that major telecoms firms were considering a similar warning on the issue of costs.

But Mr Martin, whose company operates 67 pubs in Scotland, suggested such statements were premature and "greatly exaggerated".

Mr Martin argues independence is no barrier to success

He told Business Presenter Ian King: "It will entirely depend on the policies that Scotland follows.

"We all know that New Zealand, Singapore, Switzerland - small populations, extremely successful economies with their own currencies can do very well - so it becomes a question of what are the policies they're going to have."

For example, Britain is a terribly highly taxed country for pubs and if Scotland were  to say we're going to reduce excise duty to European levels, we're going to have the same VAT for pubs and supermarkets - because it's much higher for pubs in Britain at the moment - beer prices will go down".

He added: "Alex and I could be having a pint together in Vincent Square in Glasgow sometime soon".

Mr Martin, who has not taken sides in the referendum debate, spoke out following the release of the company's preliminary results for its last financial year, which showed record sales as a consequence of new pub openings and longer opening hours.

Profit before tax increased by 3.1% to £79.4m.

Mr Martin said the company generated £600.2m in taxes - the equivalent of £662,000 per pub - and employed an extra 3,000 staff.

He has consistently argued that a more favourable tax regime would allow him to invest more in new pubs and the creation of jobs.

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Scotland: Phone Firms In Independence Warning

A "Yes" vote in the Scottish independence referendum on Thursday could lead to increased costs in the telecommunications industry, leading phone companies have said.

The chief executives of six companies - BT Group, TalkTalk Group, Telefonica UK (O2), Vodafone UK, EE and Three UK - warn in an open letter that a number of "strategic and operational" factors would need to be resolved in the event of Scotland voting to separate from the UK.

Sky's City Editor Mark Kleinman revealed the companies were in talks about a joint statement on the issue on Friday.

In the letter, the companies said they may need to modify networks and consider whether to modify the services offered in an independent Scotland.

Services such as the roll out of faster broadband to parts of Scotland could be affected, the document says.

While the firms said their commitment to providing and investing in high-quality, affordable services to all of their customers in the UK will be "completely unaffected" by the outcome, a number of issues would need to be resolved.

The letter says: "Specifically, we would need to know how a Scottish telecoms industry would be regulated. Would there be continuity with the current European Union regulatory framework so that we would continue to operate across the border with common infrastructure under a single set of rules?

The majority of opinion polls suggest the 'No' camp has the edge

"What approach would the government of an independent Scotland take to the radio spectrum - currently licensed on a UK-wide basis - without which mobile networks cannot operate?

"We may also need to modify our networks to reflect the reality of an independent Scotland; and we may need to consider whether to modify the services offered in Scotland, given its relatively demanding topography and relatively low population density.

"Any of these factors could lead to increased industry costs."

The companies said that they remain "fully committed" to their customers, employees and operations in Scotland whatever the outcome of the poll.

The referendum campaign has entered its final weekend

The warning comes after a number of retailers said customers would face higher prices in the event of independence.

Scottish Labour leader Johann Lamont said: "We now have clear warnings from some of the largest employers in Scotland - Asda, John Lewis, B&Q, Marks and Spencer, Timpson, BT, TalkTalk, Iceland, O2, Vodafone, EE, Three and others - that costs for everyday things would go up if we leave the UK.

"No doubt the nationalists will promise another day of reckoning for these firms, but the people of Scotland are more rational and pragmatic about these things. We don't deny the reality. Being part of the UK keeps costs down for families here in Scotland."

Mr Salmond told Sky News earlier that what he calls an "orchestrated campaign of intimidation" will not work and there will be a "Yes" vote on Thursday.

"The people of Scotland are not going to have big government orchestrating big oil and big supermarkets to tell us we can't run our own country," the First Minister said.

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Scotland Referendum Result 'Too Close To Call'

The latest opinion polls show the Scottish referendum campaign is "on a knife-edge" - with the "Yes" and "No" campaigns ahead in different surveys.

Three polls - all of which exclude undecided voters - give the "No" campaign the advantage on the final weekend of campaigning, but pro-Independence campaigners will be boosted by another which shows them ahead by a large margin.

A poll commissioned by the Better Together campaign and carried out by Survation has the "No" vote on 54% and the "Yes" camp on 46%.

Another, for The Observer newspaper, gives the "No" campaign a six point lead - 53%-47%.

Meanwhile, a poll carried out for The Sunday Times newspaper has "No" on 50.6% and "Yes" on 49.4%.

A poll for the Sunday Telegraph however showed support for independence at 54%, a nine-point swing from their last online poll, with support for the "No" campaign at 46%.

But the poll's sample size - 705 people - means its margin of error is higher than most surveys.

The Sunday Telegraph poll that shows the 'Yes' side ahead

Polling expert John Curtice said the poll came with "a substantial health warning".

Sky's Scotland Correspondent James Matthews said: "It tells us what we already know: this is going to be extremely tight, coming down to the wire, all the cliches fit.

"It really is on a knife edge and the intense campaigning over the remaining days will clearly be targeted at the undecideds, numbering something like half a million, they clearly hold the key to this referendum."

Reacting to the latest snapshots of public opinion, Blair Jenkins, chief executive of Yes Scotland, said: "Taken in the round, the polls show that the referendum is on a knife-edge.

"There is everything to play for, and this will spur on everybody who wants and is working hard for a 'Yes' to redouble their efforts.

The final weekend of campaigning has seen both sides out in force

"As we say in response to all the polls, we are working flat out to ensure that we achieve a 'Yes' vote, because it's the biggest opportunity the people of Scotland will ever have to build a fairer society and more prosperous economy."

The latest polls came after First Minister Alex Salmond hit out at banks and businesses that have warned about the effects of independence.

Deutsche Bank said a "Yes" vote could be a mistake akin to those that sparked the Great Depression, while three more retailers said customers would face higher prices.

Six telecoms companies also released an open letter warning such an outcome could mean increased costs in the industry.

But Mr Salmond said in an interview with Sky News: "The people of Scotland are not going to have big government orchestrating big oil and big supermarkets to tell us we can't run our own country."

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