Obama Demands Action On Taxes and Terrorism

By Sky News US Team

President Barack Obama said it is time for the US to "turn the page" on years of hardship, as he urged Republicans to back tax increases on the rich to help struggling American families.

During his annual State of the Union speech in the House of Representatives, a bullish Mr Obama declared that "the shadow of crisis has passed" after two wars and a "vicious recession".

The President, whose approval ratings are on the up, appeared undaunted by Republicans who have just assumed control of both houses of Congress for the first time since he came to office.

He said: "Will we accept an economy where only a few of us do spectacularly well?

"Or will we commit ourselves to an economy that generates rising incomes and chances for everyone who makes the effort?"

Video: State Of The Union: Tax And Terrror

He added: "So the verdict is clear. Middle-class economics works. Expanding opportunity works."

The Democratic President wants to increase the capital gains tax rate on couples making more than $500,000 (£330,000) per year, from 23.8% to 28%.

Republicans will not pass the increases, but he will place them in the tricky spot of blocking measures that could offer a lift to working families.

In his nationally televised, hour-long speech, he also called on lawmakers to pass a new authorisation of military force against Islamic State militants.

He said the US-led effort to stop the extremists from advancing in Iraq and Syria is working without sucking the US into another Middle East ground war.

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1. Gallery: Key Moments From State Of The Union

   A bullish President Barack Obama has delivered his sixth State of the Union speech in the US House of Representatives

The main aisle of the chamber was thronged as usual with lawmakers eager to greet him as he arrived to give his address

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Stamp Duty Changes 'Saving Buyers £1,300'

By Poppy Trowbridge, Consumer Affairs Correspondent

Stamp duty changes are saving home buyers an average of £1,300, according to figures from the Mortgage Advice Bureau.

The changes were announced by Chancellor George Osborne in his Autumn Statement last month.

Buyers in the South East and London are saving the most, about £3,870 and £4,600 respectively, according to the National Mortgage Index. 

In the North West the savings average £1,059, or 3% of a deposit.

But in Scotland, where the average house price is £248,000, buyers are saving just £12.19.

Video: Dec: Osborne's Boost For Buyers

"The changes mean the market can grow on a surer footing, and we now have a more sensible approach to stamp duty in place," said Brian Murphy, the MAB's head of lending.

"However, there are still regional pressures and we mustn't forget the vital support needed by less affluent buyers."

Deposits also reached a 14-month high in December, at £71,078. 

Tighter affordability criteria imposed by banks have fuelled higher down-payments, but the stamp duty savings may also have contributed.

The typical mortgage applicant's deposit in December made up 30.7% of the purchase price, according to the research.

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1. Gallery: Stamp Duty: How Much Will You Save?

   Homes bought for under £125,000, such as these terraced houses, are unchanged by the new rules and buyers still do not have to pay any Stamp Duty

Someone choosing a typical three-bedroom semi-detached costing £185,000 would pay £1,200 instead of £1,850 under the old rules - a £650 saving

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SpaceX Lands $1bn Google Tech Investment

SpaceX has confirmed a $1bn (£660m) investment from Google and Fidelity Investments to boost innovation in space transport and satellite manufacturing.

The cash injection represented a near-10% stake in the spaceship manufacturer, valuing it close to $10bn (£6.6bn).

SpaceX, which stands for Space Exploration Technologies, hit the headlines earlier this month when its Falcon 9 rocket launched supplies to the International Space Station but its efforts to land the booster on a barge, in a bid to reuse it, failed.

The company has huge ambitions, with its founder Elon Musk aiming to fly people to Mars within the next 12 years.

Google's investment is more about growing revenue closer to home, with the owner of the largest internet search engine and digital ad network buying out satellite firm Skybox Imaging last year. 

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1. Gallery: SpaceX's Reusable Rocket

   SpaceX, a private aerospace company, wanted to try and land a Falcon 9 rocket on a platform in the ocean as part of its efforts to make the craft reusable

SpaceX founder Elon Musk said being able to use rockets again would cut the cost of space travel

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IMF Cuts Growth Prospects Despite Oil Prices

The forecast has been slashed for global economic growth this year - with the UK's outlook also taking a hit.

The International Monetary Fund's World Economic Outlook update said that apart from in the US, the economic performance of all major economies had fallen short of expectations.

It also appeared to back further stimulus measures that look likely to be unveiled in the eurozone this week.

The IMF estimated that gross domestic product (GDP) in Britain grew by 2.6% in 2014 compared to a previous forecast of 3.2%.

It still expects the UK to grow by 2.7% this year while it has cut its forecast for 2016 by 0.1% to 2.4%.

Video: IMF: New Growth Fears For Eurozone

Global growth is expected to be 0.3% weaker - at 3.5% for 2015 and 3.7% for 2016.

Chancellor George Osborne said: "Today's IMF forecast shows Britain is pulling ahead, while global growth is being downgraded.

"But there are risks out there in the global economy.

Video: Oil: Winners and Losers

"It's a timely reminder of that and we've got to go on working through our long-term economic plan if we want to stay ahead."

The IMF said the cut in estimates reflected prospects in China, Russia, the eurozone and Japan.

There had also been weaker activity in some major oil exporters - with oil prices having dropped by more than half since September.

Video: Why Is BP Cutting Jobs?

"The boost from lower oil prices is expected to be more than offset by an adjustment to lower medium-term growth in most major economies other than the United States," the IMF said.

Video: Brent Crude Could Go Below $40

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Shoplifting Surge 'Not Taken Seriously'

By Martin Brunt, Crime Correspondent

Police forces are being accused of not doing enough to tackle a boom in shoplifting.

A survey shows a 36% rise in the money lost in shop thefts, the highest figure for a decade.

But most shoplifting goes unreported because shopkeepers do not believe the police will respond, according to the British Retail Consortium (BRC).

It said: "Despite the high level of theft, and evidence that some retailers are adopting more consistent "no exception" policies to reporting offences to the police, the majority of customer theft remains unreported.

"This is an indication that businesses continue to lack confidence in the police response to customer theft.

"The perception remains that some quarters of law enforcement view theft as a 'victimless' crime which is not taken seriously."

Video: Shoplifting Hits 10-Year High

Toy shop owner Steve Mohabir, who runs The Toy Box in Godalming, Surrey, said he faced increasing thefts but found police were rarely willing to arrest suspects.

He said: "To be totally honest I'm really furious.

"I pay a high business rate, but I don't get the police service I need, no local bobby keeping an eye on retailers and our problems.

"If I report shoplifting I get told 'it's not very much' and nothing is done about it, but if it's an armed robbery at the bank they are much more interested."

Mr Mohabir said he has had to resort to investing in an expensive CCTV system and then shaming shoplifters by putting their images on his Facebook page.

The BRC's 2014 retail crime survey put the annual cost of all crime at £603m, an increase of 18%, with a total of three million crimes.

As well as the increase in shoplifting, fraud rose by 12% - more than half committed by organised gangs - and cyber crime also went up.

However, robbery, burglary and criminal damage fell.

The BRC's Director General, Helen Dickinson, said: "In my foreword to last year's report I said that a step change improvement in the law enforcement response to fraud was a desperately needed reform. A year on, this remains the case.

"Although there remains at times a lack of confidence among retailers about the service they receive from police and the criminal justice system, businesses are keen to work with partners to reduce retail crime."

Deputy Chief Constable Sue Fish, the National Policing Lead for Retail Crime, said: "Police have been working closely with businesses and retailers for several years, including British Retail Consortium, to help them prevent theft whether from stores or online. 

"Stores need to ensure that they have the right security and working practices in place and heed advice to prevent them from being targeted.

"Without retailers making these changes, police will not be able to work in partnership to reduce this type of crime.

"Retailers need to report crimes against them to us so that we can investigate and ensure we have a full picture of offending; our ability to help is undermined if we aren't receiving information about crimes committed."

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Chinese GDP Growth At 24-Year Low In 2014

By Mark Stone, Asia Correspondent in Beijing

China's economy has expanded at its slowest pace in 24 years.

Statistics published by the Chinese government show that the world's second largest economy grew by 7.4% in 2014 compared with 7.7% in 2013.

The government target of 7.5% was missed but the level was still above market predictions as low as 7.1%.

The slowdown comes as China attempts to rebalance its economy from an export-led market to one which must rely on domestic consumption. A global slowdown means China can no longer rely on its "Made in China" exports.

Chinese government officials see the slowdown as inevitable and say the delicate rebalance represents the 'new normal'.

However it will cause nervousness around the world with economies globally tied into China. Bilateral trade between China and the UK stands at £53bn – a record high.

A further breakdown of figures was provided by the Chinese National Bureau of Statistics at a news conference in Beijing. 

One of China's few official measures of its unemployment rate put it at 5.1% in 2014. Economists say the true figure is almost certainly higher.

In an exclusive interview with Sky News, the Chairman of Chinese property and entertainment giant Dalian-Wanda, said the slowdown is a "painful" process.

"For China, over the past two years, there has been an obvious decline and slowdown. But in fact this is just an adjustment," Wang Jianlin said.

"Although this year, the economy is slowing down, but there is an obvious improvement in domestic consumption which is increasing much faster than the exports. Of course it's a painful process."

But he added: "Chinese economic growth of around 7% a year shouldn't be a problem. The Chinese economy definitely won't collapse."

For a period last year, Mr Wang was China's richest man. According to Forbes, he is currently worth £12bn. "Last year's No 1 on the Forbes China Rich List slipped 3 notches this year due to lower values for the commercial real estate owned by his Dalian Wanda Group."

China's property sector has been a big drag on its economy.

In cities all over China, skyscrapers and apartment blocks are shooting up. They've been building across China for years: the consequence of government encouragement to borrow and build. But many sit empty; some are only half built.

Sky News visited the central Chinese city of Xianning, which has been officially declared a ghost city.

It's not deserted. Far from it. 31 million people live in Xianning, but that is only 30% of its capacity.

In other words, 70% of its property lies empty. Tower blocks have been built but nobody has moved in.

It's a similar picture in cities across China: the legacy of years of credit-fuelled investment have prevented a recession but someone will need to pay for the construction at some point.

China's Prime Minister, Li Keqiang, once let slip to a US diplomat that Chinese GDP figures are 'for reference only'.

For the true health of an economy, he said, one must look at things like electricity usage.

China produced 490.2 billion kilowatt-hours (kWh) of electricity in December 2014, up 1.3% on the year.

But how accurate is that figure? The new tower blocks in Xianning are illuminated, but only with neon on the outside.

Inside, they are dark and empty.

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Eurotunnel Fire: Delays Continue For Third Day

Travel disruption sparked by Saturday's fire in the Channel Tunnel is dragging on into a third day.

Eurotunnel passengers travelling by car or coach from the UK are having to wait about 90 minutes, and "approximately three hours" on the French side.

In an early morning update, the company said there was still "some timetable disruption" as repair work went on to fix damaged sections of the tunnel.

Despite the delays, Eurotunnel said it was "optimistic" of "more regular departures".

Train operator Eurostar, a separate company, was also hopeful, tweeting: "Eurostar plans to run a full service on Mon 19 Jan. Passengers are advised to check-in as normal."

Saturday's cancelled service caused big queues at London St Pancras

Thousands of passengers using Eurotunnel and the Eurostar high-speed train were left stranded on Saturday after a lorry fire stopped services.

Spokesman John O'Keefe said a "smouldering load" was found in the trailer of the lorry.

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1. Gallery: Travel Chaos In London And Paris

   This was the scene at St Pancras International station in London as Eurostar services are cancelled in both directions on Saturday

The company said trains would not be running on that day

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Cameron Puts Jobs Vow At Heart Of Campaign

David Cameron has set out his plan for full employment, promising to make Britain the "jobs factory of Europe" as the economy returns to health.

The Prime Minister, speaking in Ipswich later, will say the country is "coming out the other side" after a "tough few years".

With just months before the general election, he will also promise to treble start-up loans for young business people and urge voters to stick with his recovery plan.

Labour however, have said the Tories are out of touch if they think the economy is "fixed" and that most workers are now worse off.

In his speech, Mr Cameron is expected to say: "Full employment may be an economic term, but this is what it means in human terms: it means more of our fellow men and women with the security of a regular wage; it means you, your family and your children having a job and getting on in life.

"We are the jobs factory of Europe; we're creating more jobs here than the rest of Europe put together.

The Tories say they will boost start-up loans for young entrepreneurs

"That's what our long-term plan means for you - and if you vote Conservative, we can stay on this road to recovery."

His plans to boost jobs include: three million more apprenticeships; controlling immigration and migrant benefits to get more Britons back to work; extra support for small business, such as cutting red tape and keeping taxes low; investment in infrastructure.

Video: What Could Swing The Marginals?

"The Conservatives are the party of small businesses," Mr Cameron will say.

"We're the party of the roofers and the retailers; the builders and the businesswomen.

"We're the ones who back people who strike out on their own, take the risks, and create wealth and jobs in our country."

Video: Chancellor George Osborne MP

The Prime Minister will say the boost in start-up loans - which are typically around £5,000 - will create at least 100,000 jobs by 2020.

Labour has hit out at the PM's boasts about a healed economy, saying it shows they are out of touch with normal working people.

Rachel Reeves MP, Labour's shadow work and pensions secretary, said the party had presided over "five years of talents wasted and opportunities denied".

Video: Reeves On Working Up Wages

"The average wage has fallen more than £1,600 per year, 3.5 million people want to work more hours, and the number of people paid less than a living wage has risen to nearly five million," said Ms Reeves.

She said a Labour government would also show strong support for small business and help low-paid workers.

"[We] will bring in a Compulsory Jobs Guarantee to get the long-term unemployed off benefits and into work," said Ms Reeves.

Video: Cameron On Employment

"We will ban exploitative zero-hours contracts, boost apprenticeships, raise the minimum wage to £8 per hour and get more workers paid a living wage."

The Prime Minister's jobs pledge comes as the gap between Britain's best and worst-performing cities has "dramatically widened", according to a new study.

The Centre for Cities research group says for every 12 jobs created since 2004 in cities in southern England, only one was created in cities in the rest of the country.

Video: Ed Miliband: Train Or Lose Benefits

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Thorntons Like-For-Like Retail Sales Up 5%

Struggling chocolate maker Thorntons has reported a 5% increase in like-for-like retail sales in the last quarter.

But the firm's supermarket sales fell by 10.5% compared to the previous period, blamed on "challenges experienced in a couple of major grocers", and short-term problems at its new centralised warehouse.

Shares in the company rose by 1.75% in response to the second quarter trading update.

During Christmas, like-for like retail sales rose by 7.8%, driven by demand for Thorntons' inlaid boxes, seasonal specialities and advent calendars, reports the firm.

The results come after the business closed four stores and relocated two others, leaving a total of 247 of its own stores.

Overall, the company reported a 6.4% decline in sales for the 14 weeks to 10 January, although this is an improvement on the previous quarter when sales fell 11.9%.

Jonathan Hart, Thorntons' chief executive, said: "Alongside very positive results from our Retail division for the second year running, we were disappointed that the continued growth we anticipated in the UK commercial channel of our FMCG division had not been delivered.

"The challenges we experienced within specific grocers accounted for the majority of the share decline."

In December, shares in the business plunged 25% when it warned annual profits would fall in the current year.

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London 2012 Exec Gives John Laing IPO Boost

By Mark Kleinman, City Editor

An official who helped steer London's staging of the 2012 Olympic Games is to join the board of John Laing, the infrastructure investor, as it prepares for a stock market listing valuing it at more than £1bn.

Sky News understands that Jeremy Beeton, who was director-general of the Government Olympic Executive, will be one of several non-executive directors named this week ahead of what would be the largest City float so far this year.

John Laing, which is owned by Henderson, the asset management group, is expected to raise tens of millions of pounds by selling new shares if it successfully completes its listing.

The company's most prominent projects include the second Severn river crossing and the new Alder Hey children's hospital in Liverpool.

Mr Beeton's appointment will be announced alongside that of David Rough, the former deputy chairman of Xstrata, who courted City controversy by rubber-stamping huge executive pay awards when it merged with Glencore in 2013.

An insider said that Mr Rough would not chair the remuneration committee of John Laing.

Anne Wade, a former executive at the fund management giant Capital International, will also be appointed to John Laing's board, a source said on Saturday.

Mr Beeton was paid a bonus of more than £200,000 for his role working on the London Olympics.

In July 2012, he was approved by Whitehall's Advisory Committee on Business Appointments – which seeks to prevent conflicts of interest for public servants who move to the private sector – to take roles at Macquarie, the Australian bank and infrastructure investor, and PricewaterhouseCoopers, the accountancy firm.

Macquarie was this week reported to be pursuing a possible takeover bid for John Laing, although insiders said this weekend that the company was "focused on an initial public offering".

John Laing was listed on the stock market until 2007, but had experienced a traumatic time after costs spiralled out of control during work on the Millennium Stadium in Cardiff.

Henderson has been keen to explore an exit for some time.

John Laing's new chief executive, Olivier Brousse, believes its shares will be attractive to new investors because of the scope to export the public-private partnership (PPP) around the world.

"There is a lot of interest in John Laing because of the potential to scale it up," he told The Times last month.

"For us it is about getting more funds to grow the business — 2015 will bring the answer and then we can decide on new sectors and new countries."

John Laing has already developed a presence in Australia and Mr Brousse describes the US market as "our new frontier".

The valuation of John Laing when it lists will depend on the demand for new shares and the broader market sentiment at a time when currency moves by the Swiss central bank and concerns about global economic growth have caused some jitters among investors.

John Laing is a separate company to John Laing Infrastructure Fund, which is already listed and which recently attempted to bid for a large chunk of Balfour Beatty, the troubled construction group.

A John Laing spokesman declined to comment.

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