Immigration: Brit Workers 'Against The World'

By Ed Conway, Economics Editor

Immigration is changing Britain. This is not merely a theory - it's statistical fact. Back in 2004, less than a decade ago, one in 11 of those living in Britain were born abroad. Today the proportion is one in eight - 12.4%.

And, just as is the case for economic growth and productivity, the immigration picture varies throughout the country. Some 42% of London's population was born outside the UK, compared to just 5% in the North of England.

Though more attention tends to be focused on the flows of immigration - in other words people entering and leaving the country, the gradually-changing make-up of the UK population represents a significant shift - both in social and economic terms.

On the one hand, there's the question of how much immigrants cost Britain's welfare state. A quarter of new-born babies in Britain last year had non-UK-born mothers - the highest proportion since records began in 1969.

But you can only really get a clear sense of the absolute impact by taking a step back and comparing the cost of immigration with the related income - the taxes these new members of the population pay.

Research from the OECD shows that immigrants actually bring in over £7bn more than they cost. That's the equivalent of a penny off the basic rate of income tax.

There are other economic arguments in favour: Free movement of labour is usually good news for businesses, since it allows them to attract workers from all over the world, not merely locals.

But there are clearly challenges as well. Immigration increases GDP (though not necessarily GDP per capita), but it also increases the demand for housing - a real problem in a country facing a chronic shortage of property. And more potential workers means more competition for British employees.

In pure statistical terms, immigrants work harder than their UK counterparts. Some 71% of foreign nationals are economically active, compared with 67% of UK nationals. They are better-qualified: 38% of non UK-born people in Britain have degrees, compared with 30% of UK nationals.

And contrary to popular opinion, they are not just plumbers. The biggest proportion of immigrants actually work in finance, followed by health, then retail, then manufacturing.

According to the OECD half of all immigrants hired in Britain are high-skilled - and the proportion is increasing.

This has had an undeniable impact on Britons' job prospects. Since the start of the crisis in 2008, seven British workers have lost their jobs for every one non-British worker to have lost theirs.

Some are likely to see this as an argument against immigration. However, the economic message is just as significant. Britons need to work harder if they want to compete. That's the inevitable consequence when you're competing against a whole world's worth of workers, rather than just one country.

:: Immigration UK: A week of special coverage on Sky from October 14 to 18 - watch on Sky 501, Virgin Media 602, Freesat 202, Freeview 82, Skynews.com and Sky News for iPad

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Burberry Boss Angela Ahrendts To Join Apple

Burberry has confirmed its respected chief executive Angela Ahrendts is to leave the luxury goods firm next year to join Apple.

The company confirmed she would be replaced by chief creative officer Christopher Bailey by mid-2014 and that Bailey would assume both roles.

Ahrendts, who is 53 and originates from the United States, will assume a title of senior vice president of retail and online stores at Apple - a new position - and will report directly to CEO Tim Cook.

Angela Ahrendts has championed online growth

He said of the appointment that Ahrendts shared Apple's focus on innovation and customer experience and was an "extraordinary leader with a proven track record."

She responded: "I have always admired the innovation and impact Apple products and services have on people's lives and hope in some small way I can help contribute to the company's continued success and leadership in changing the world."

News of her departure saw Burberry stock lose 6% when trading began on the FTSE 100 on Tuesday morning.

Over the last five years, its share price has risen a staggering 461% under her leadership.

Ahrendts said: "Burberry is in brilliant shape, having built the industry's most powerful management team, converted the business to a dynamic digital global retailer, created a world class supply chain, state of the art technology infrastructure, sensational brand momentum and one of the most closely connected creative cultures in the world today.

"It has been an honour to have partnered with Sir John Peace (chairman) and Christopher for the last eight years.

"I am confident that, with Sir John's continued guidance and the executive team's support, Christopher, as one of this generation's greatest visionaries, will continue to lead Burberry to new heights.

"Today, Burberry is not only a great brand, but a truly great company," she concluded.

Burberry's revenues rose 14% in the first half of the year

Her successor has been at Burberry since 2001 and has held the major creative role for six years.

Burberry also updated the market on its first half progress, saying its retail revenue rose 17% to £694m in the six months to Sept. 30 - in line with analysts' forecasts.

Retail sales from stores open at least a year grew by 13%, helped by double digit growth in Asia Pacific and the Europe, Middle East, India and Africa (EMEIA) division region and high single digit growth in the Americas.

Total revenue was £1.03bn pounds, up 14%.

Ahrendts' departure leaves Carolyn McCall and Alison Cooper, the bosses of budget airline easyJet and cigarette firm Imperial Tobacco respectively, as the only remaining female chief executives heading Britain's biggest listed companies.

She has spent a total of ten years with Burberry, transforming it into a global luxury brand with a growing presence in emerging markets.

It has been suggested that her success in growing Burberry in Asia - particularly China - will have been attractive to Apple which has struggled to secure the market penetration enjoyed there by many of the iPhone and iPad-maker's rivals.

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Royal Mail: Value Climbs As Dealing Starts

Royal Mail's value continued to grow when full dealing began on the London Stock Exchange on Tuesday morning though some individuals expressed frustration they were unable to sell.

Investors - lured by the promise of healthy dividends - sought out shares with the price rising more than 3% in early trading when the stock became available to the wider market following its conditional launch.

In the first day of dealing for many of the 690,000 small investors who bought stock the shares opened at 478p - almost 45% above their privatisation price - before climbing further to 490p in the first hour.

Price correct at 08:35 BST

That made them almost 50% more valuable than the Government's price tag last week and gave Royal Mail a value of £4.9bn.

That compares with the 330p per share price they were sold for on Thursday, which valued the group at £3.3bn, meaning small investors who were allocated shares worth £750 originally are today sitting on paper profits of more than £360.

But not everyone was able to trade - the Department for Business confirming that those who applied for shares via the post had been told they would receive a letter within a week setting out how they could sell their shares.

Those who applied online should, the department said, receive an email within two days of listing, giving them an ID and password to sell their shares via the official website.

Only institutional investors such as pension funds and those individuals who ordered stock through a broker offering conditional trade were able to sell before Tuesday.

Around 150,000 postal workers are having to sit on stakes now worth more than £3,000 each because they can not sell their shares for three years under the terms of the 10% free-holding.

While fewer than 390 staff eligible for the offer turned it down, staff are known to bitterly oppose the privatisation and Wednesday will see the result of a strike ballot by members of the CWU over issues linked to the sale.

The windfall for investors has prompted further questions about whether the Government short-changed the taxpayer over the privatisation.

Sky News has learned that some members of the Business, Innovation and Skills Select Committee of MPs want to interview executives from the syndicate of banks responsible for pricing the initial public offering at 330p-per-share.

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UK To Relax Visa Rules For Chinese Nationals

Visa rules for Chinese nationals coming to Britain are being relaxed by the Government in a drive to boost visitor numbers.

Chancellor George Osborne, who is leading a UK trade delegation to China, said the changes will "streamline and simplify" the visa application process for tens of thousands of Chinese visitors.

He told students in Beijing: "We already have 130,000 Chinese students like you studying in Britain.

"I want more of you to come. And more Chinese visitors too.

"Let me make this clear to you and to the whole of China. There is no limit to the number of Chinese who can study in Britain.

"No limit to the number of Chinese tourists who can visit.

"No limit on the amount of business we can do together. For in the end what is a true dialogue?

"Not just a meeting between governments. Not just a conference of politicians.

"A real dialogue is where people get together, and talk, and learn, and understand and embrace the future together."

The move comes amid signs of a thaw in relations with Beijing which have been frosty since David Cameron met the Tibetan spiritual leader, the Dalai Lama, last year.

The move will make it easier for tourists to visit

The changes will reduce the need for Chinese visitors to the European Union to submit separate visa applications for Britain, with selected Chinese travel agents able to apply for UK visas by submitting just the EU's Schengen area visa form.

A new 24-hour "super priority" visa service will become available from next summer, while officials are also looking at expanding a VIP mobile visa service, currently operating in Beijing and Shanghai, to the whole country.

The service involves visa teams going out to applicants to collect their completed forms and biometric data, with the whole process taking less than five minutes.

The move will be welcomed by businesses in the UK who have complained that the existing regime is discouraging high-spending Chinese visitors from coming to Britain.

In 2012, 210,000 visas were issued to visiting Chinese nationals who went on to contribute around £300m to the British economy.

Mr Osborne, speaking to Sky News from Beijing, said there was a "big difference" between people visiting Britain on holiday or for business and immigration.

Chinese nationals contribute £300m to the British economy

He insisted it was time to change British perceptions of China from the view that it is a "big sweatshop on the banks of the river" just making cheap manufacturing goods.

"The China of today has some of the world's largest internet companies, does some of the most advanced high-tech engineering, develops some of the world's leading medicines," he said.

"This is about the future of China. China has changed dramatically even in the last few years. I think if we in Britain don't understand that and appreciate that then we will miss out.

"I want us to be part of China's success. I don't see it as a threat to us. I see it as a great opportunity because there are many millions of people we can sell British goods and services to."

Mayor of London Boris Johnson, who is also on a trade visit to China, said he was pleased the Government had listened to him on simplifying the visa system for Chinese people.

He said: "I'm pleased that the Government has listened to the many voices, mine included, who have called repeatedly for a streamlining and simplification of the Chinese visa system.

"Whilst I await the detail, it would appear the Government's announcement of a pilot scheme available through select travel agents is a welcome step forward.

"The move will hopefully encourage ever greater numbers of Chinese tourists to London.

"Only today I launched the first ever Chinese language website dedicated to studying in and visiting London. Chinese visitors now have all the information they need to access London, and changes to the visa system that will hopefully make getting here a good deal easier."

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US Shutdown: Lagarde Issues Recession Warning

The head of the International Monetary Fund has warned failure to break the political stalemate over raising the US debt ceiling risks tipping the world into recession.

Christine Lagarde was speaking as there were few signs in Washington that solutions were close in either the row over the budget - which has left government in a partial shutdown for two weeks - or the debt ceiling wrangle.

However, Harry Reid - the Democratic Leader in the Senate - painted an optimistic picture of the dialogue with Republicans late on Sunday, though nothing concrete was disclosed.

Failure to lift the debt limit by Thursday would leave the US government unable to pay its bills or service its debts, leading to a default that analysts warn will devastate market values and tip the global economy back into recession.

In an interview on NBC Sunday talk show "Meet the Press," Lagarde said the US economy was already showing "real improvement," evident from indicators including those from the housing sector to household spending.

But she said it was crucial politicians work out a deal to re-open the government and continue borrowing so it does not default on its debt - and not just for a few weeks.

Lagarde warned of serious consequences from "a combination of the government shutdown for a period of time and, more seriously, more damaging, if the debt ceiling was not lifted with a degree of certainty and enough time so that people could, you know, sort of have the assurance that the economy was in good standing."

She said: "If there is that degree of disruption, that lack of certainty, that lack of trust in the US signature, it would mean massive disruption the world over. And we would be at risk of tipping, yet again, into recession."

She called on politicians to address spending on social programmes like Medicare and Social Security but cautioned that spending cuts must not be too drastic.

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Banks Defend Charges From 'Rip-Off' Claim

Banks insist they are offering clear and simple charges amid research claiming their fees for going overdrawn can be as expensive as those imposed by payday lenders.

Research by Which? found that people can rack up "sky high" default charges if they slip into an unauthorised overdraft while it also criticised some other borrowing arrangements as "eye-wateringly" expensive.

The consumer group cited a number of examples from its findings: Borrowing £100 for 31 days will cost £30 with a Halifax authorised overdraft or £20 with some Santander accounts, while borrowing the same amount for around a month with a payday loan firm such as Quickquid or Wonga costs between £20 and £37.

For consumers using the Halifax Reward current account and the Santander Everyday Account it can cost £100 in charges for going £100 into an unauthorised overdraft for a month, Which? said.

The group's findings follow hot on the heels of tougher action against the payday loans industry while the whole credit market will come under the supervision of the Financial Conduct Authority (FCA) next year.

The FCA recently announced measures it plans to impose, including limiting the number of times payday lenders are allowed to roll over loans to two and forcing them to put "risk warnings" on their advertising.

Which? urged the FCA to crack down on poor lending and unscrupulous practices across the credit market and demanded that default charges reflect lenders actual costs.

It also called for tougher affordability checks and an end to lenders making unsolicited increases to people's credit limits.

Richard Lloyd, Which? executive director, said: "The Government and regulators have rightly focused on the scandal of payday lending but they must not lose sight of the urgent need to clean up the whole of the credit market.

High street bank overdraft fees can be just as eye-watering as payday loans.

"Consumers need the credit market to work competitively. It's time to clamp down on excessive charges and irresponsible lending, and to make sure borrowers are being treated fairly whatever form of credit they're using."

Anthony Browne, British Bankers' Association chief executive, said overdraft charges for customers had fallen "significantly" in recent years.

He said: "The Office of Fair Trading estimates that customers are now up to £1bn better off due to reductions in these fees.

"The higher figures quoted by Which? are based on extreme examples of unauthorised overdrafts. This is not a form of borrowing that we would ever recommend."

Santander told Sky News: "Santander's overdraft charges are clear, transparent and easy for customers to understand.

"In addition to the simple daily charging structure, we have a number of tools and policies that help our customers stay in control and minimise charges such as overdraft buffers, text alerts, caps and grace periods.

"Whenever possible, customers should discuss short-term borrowing requirements with Santander in order to avoid un-necessary charges."

Halifax also released a statement: "Halifax offers a clear and simple overdraft charging structure, whereby customers are charged one daily fee rather than multiple fees."

It added that it would always contact a customer if they were in their unplanned overdraft for more than seven days to discuss alternative payment options.

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London Battles For Slice Of £5bn ISS Float

By Mark Kleinman, City Editor

London is facing a battle to secure a slice of one of the biggest stock market listings anticipated next year as its owners step up preparations for a £5bn flotation.

Sky News understands that the private equity groups behind ISS, a Danish cleaning and catering company that ranks among the world's largest private sector employers, have appointed investment banks to oversee its initial public offering (IPO).

The investment arm of Goldman Sachs and EQT Partners, a Swedish buyout firm, have enlisted bankers from Goldman and UBS for the flotation.

ISS, which has around 500,000 staff, will be floated in Copenhagen but its shareholders are also evaluating the possibility of a dual listing in London, insiders said this weekend.

A decision to include London would deliver a further boost to the City's IPO market, which has been revived in the last 12 months and on Friday saw the spectacular stock market debut of the privatised Royal Mail.

ISS has made at least two previous attempts to list, in 2007 and 2010, and is best-known in the City as the aborted merger partner of G4S, the UK security firm which breached a contract to provide personnel at last year's London Olympics.

G4S and ISS agreed a merger in 2011 but it was abandoned after a revolt by G4S shareholders.

The Danish group is now chaired by Sir Charles Allen, the former ITV boss who also played a key role on the organising committee of the 2012 Olympics.

A £5bn flotation of ISS would value the company at roughly ten times its annual profits, the mid-point at which analysts expect its shareholders to be able to exit their investment.

A large stake in ISS is now owned by Ontario Teachers Pension Plan and Kirkbi, the investment vehicle of the family behind the Lego empire.

Kirkbi is also a big investor in Merlin Entertainments, the theme park operator which plans to announce a London flotation as soon as there is greater clarity about the fate of negotiations over the US government's debt ceiling.

ISS and the investment banks declined to comment.

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Unemployed Migrants: '600,000 Living In UK'

More than 600,000 unemployed migrants from across the European Union are living in the UK, according to a survey.

The 291-page report - commissioned by the Brussels commissioner for employment and social inclusion, Laszlo Andor - found there were 611,779 "non-active" EU migrants in the UK last year compared with 431,687 in 2006 - a 42% increase.

The total number of jobless migrants is greater than the population of Glasgow.

While between 2005 and 2006 the growth of non-active EU migrants in the UK stagnated, since 2006 it has been steadily rising, the report said.

The Sunday Telegraph said that the number of people arriving without employment had increased by 73% in the three years to 2011.

It reported that the figures meant the annual cost to the National Health Service amounted to £1.5bn.

The details emerged as a poll indicated there was strong public support for an early referendum on withdrawing from the European Union.

The opinion poll for the Mail on Sunday found more than half of voters want a referendum on the UK's membership before the next election.

While nearly two-thirds support a vote in the Commons on the issue as early as next month, almost half said they would vote to quit the EU if a poll went ahead in 2014.

Prime Minister David Cameron has pledged to hold a referendum by 2017, but has dismissed the idea of holding it before the next general Election in 2015.

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Boris And Osborne Make Chinese Trade Visits

By Mark Stone, China Correspondent in Beijing

The Chancellor and the Mayor of London have arrived in Beijing on separate trade visits to China.

Both George Osborne and Boris Johnson will spend a week in the country, promoting British business but also trying to attract more Chinese investment in the UK.

Mr Osborne's arrival signals the end of a diplomatic spat between Beijing and London which has lasted more than a year.

Both men are expected to sign a number of multimillion pound investment deals in which Chinese companies will fund or part-fund UK infrastructure and building projects.

Mr Osborne is expected to announce the names of the Chinese backers behind an £800m development at Manchester Airport.

Using Chinese money, five million square feet of land next to the airport will be developed into retail, office and manufacturing space.

Creating 16,000 new jobs over 15 years, the airport will be turned into a hub destination in its own right.

Similar projects in Amsterdam and Frankfurt have proved successful and eased congestion at other airports.

An £800m investment in Manchester Airport will create thousands of jobs

Speaking to Mark Stone, Sky's Beijing correspondent, Mr Osborne said: ""£800m of investment; 16,000 new jobs; one of the biggest developments since the Olympic games, and I think it shows our economic plan of doing more business with China and also making sure that more economic activity happens outside the city of London is working.

"That's good for Britain and is good for British people."

He is travelling with the UK Trade Minister Lord Green, City Minister Lord Deighton and the Minister for Science and Innovation, David Willetts.

With them are executives from a variety of British technology companies who will try to showcase the best of Britain's digital technology industry in China.

The delegation will hope the trip allows UK companies to gain access to the rapidly expanding Chinese market.

"The Chinese economy is changing," Mr Osborne said.

"Those who think it is just a low-wage, low-tech economy are making a mistake.

"It is becoming a cutting edge player in industries like technology and this is a huge opportunity for Britain."

Chinese tech company Huawei is investing £1.3bn in British broadband

The Chancellor will lead the delegation to the Shenzhen-based headquarters of Huawei, the world's largest telecommunications manufacturer, and TenCent, the world's third largest gaming and social media firm.

Huawei's growing footprint in Europe and America has caused controversy, with some suggesting that Chinese involvement in Western telecoms firms poses a security risk.

Despite that, Huawei has already pledged to invest £1.3bn in the UK's broadband network over the next four years.

Mr Osborne's visit is a clear endorsement of the company.

Alongside the commercial strands of his visit, the Chancellor will also hold governmental meetings with his Chinese counterpart Ma Kai.

Known as the UK/China Economic Financial Dialogue, the discussions will focus on a range of financial issues including the global economic recovery, the US debt ceiling debacle and London's efforts to become a Chinese currency trading hub.

Significantly, the talks represent the first face-to-face bilateral ministerial contact between the UK and China for over a year.

The UK has been in the political dog house with China since May 2012 when David Cameron and Nick Clegg chose to meet and be photographed with the Dalai Lama, the exiled spiritual leader of Tibet.

Mr Cameron and Mr Clegg met the Dalai Lama last year

The meeting enraged Beijing given the controversial claim China holds over Tibet.

Ministerial meetings between the two countries were cancelled and Beijing made its disapproval very clear.

Diplomatic sources in the Chinese capital have suggested the move was designed by Beijing not only to punish the UK but to send a clear message to other countries that it is not worth upsetting the world's second largest economy.

However, British officials are always keen to stress that despite the Dalai Lama meeting, for which the UK refused to apologise, trade between the two countries been unaffected by the spat.

Diplomats point out that inward Chinese investment to the UK in the last 18 months has been greater than the past 30 years combined.

The London Mayor's trip is separate but the broad objectives are the same.

Mr Johnson is travelling with the chief executives of several large companies including Justin King of Sainsbury's and Marc Bolland of Marks & Spencer.

He will spend three days in Beijing, where he will visit a UK brands fair, take a ride on the subway and attend a private meeting with China's richest man, Wang Jianlin, whose company Dalian Wanda is investing heavily in the Nine Elms area of London.

Mr Johnson will then travel to Shanghai before ending his trip in Hong Kong.

Both men are effectively cashing in on the thawing of diplomatic relations between the two countries.

By the end of the week, they hope to have signed a variety of deals, forged new relationships and facilitated meetings between UK and Chinese firms.

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The Sky News Business Round-Up And Look Ahead

Sky's Naomi Kerbel offers a round-up of what's coming up in the week's business news.

:: Monday October 14

On Monday, the Eurogroup is gathering ahead of Tuesday's Economic and Financial Affairs Council meeting. Eurogroup is composed of the Eurogroup President, EU Commissioner for economic and monetary affairs, European Central Bank President and finance ministers from the member states whose currency is the euro.

:: Tuesday October 15

The chief executive of the Royal Mail will ring the London Stock Exchange bell on Tuesday as the company's shares list for the first time.The value of the Royal Mail jumped more than £1.2bn as conditional trading begins on the London Stock Exchange.

Also, the ONS will release UK monthly inflation figures. Consumer Price Index was 2.7% in August, down from 2.8% in July and within one percentage point of the government's 2% target rate.

:: Wednesday October 16

Wednesday brings UK unemployment figures for September. In the three months to July unemployment fell by 24,000 to 2.49 million, while the unemployment rate was 7.7%.

:: Thursday October 17

Thursday is the deadline for the United States debt limit, known as the debt ceiling to be extended. Republicans will not agree to lift it unless long term spending is addressed as well as delaying funding for President Obama's healthcare reforms. Parts of the US government have been shut down since October 1 due to an ongoing battle over the budget.

:: Friday October 18

Chinese quarterly GDP figure will be out at 03:00 BST on Friday morning. Figures published in July revealed  the rate of economic growth was 7.5% in the second quarter of 2013 compared to 7.7% in the first quarter.

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