VIDEO: ECB holds interest rates

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6 October 2011 Last updated at 15:41 GMT Help

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Apple unveils refreshed iPhone 4S

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4 October 2011 Last updated at 23:38 GMT Rory Cellan-Jones looks at Apple's new iPhone 4S

Apple has unveiled the latest iteration in its iPhone range, but there was no sign of the widely rumoured iPhone 5.

The iPhone 4S, as the model will be known, boasts an improved camera and significantly extended battery life.

It will run the latest iOS5 operating system, which is set for release on 12 October.

The event was the first major announcement for new boss Tim Cook who took over from Steve Jobs in August.

The iPhone 4S, which will go on sale on 14 October, will be available in 16GB, 32GB and 64GB models - in both black and white.

It has the same look and feel as the existing iPhone 4 which was launched 15 months ago.

However, Apple said that updates to iOS meant the phone would boast some "200 new features".

Continue reading the main story Shares in Apple fell by almost 5% within minutes of the eagerly anticipated launch, with analysts saying that investors and Apple fans had expected the latest version to be a more radical improvement over its predecessor.

However, the company's shares later regained most of their losses to close down just 0.6%, albeit underperforming the NASDAQ index as a whole.

Voice control

Among the additions is an "intelligent assistant" that allows users to ask questions aloud and receive detailed answers back.

Siri, which began life as a third-party app, was purchased by Apple in 2010 but has yet to appear within its software.

Luke Peters, editor of gadget magazine T3, said that the software announcements would do just enough to keep Apple fans interested in the face of strong challenges from rival smartphone manufacturers.

Continue reading the main story

You could sense a great wave of disappointment rolling through the Apple community.

Why rush out and buy the new, new thing if it looks just like that old phone that's been around for more than a year?

"Some people were looking for a brand new phone and they haven't got that today, so some will be disappointed," he told BBC News.

"But with the update to iOS5 and Siri that could be enough to sway people to make the investment."

Disappointment

Other industry watchers were less charitable about the iPhone refresh, and the non-appearance of the iPhone 5.

Gareth Beavis, phones editor at TechRadar said that the new hardware would leave many people underwhelmed.

"It was quite disappointing. I think there is going to be a lot of anger from users expecting something big bold and quite exciting after a long time of waiting from the iPhone 4.

"People will buy this in their droves, but Apple has missed a trick by just releasing the exact same phone again with marginally upgraded specs."

Details of the new phone were unveiled by Apple's Philip Schiller

For Apple's new chief executive, the event was as much about making a statement about his leadership as it was new products.

Tim Cook had previously acted as interim boss, looking after the company while Steve Jobs was on sick leave.

Unlike his charismatic predecessor, Mr Cook left the biggest announcement of Tuesday's event to a colleague - marketing boss Phil Schiller.

"Maybe he wants to bring other people to the forefront by letting others speak on his behalf," said Gregory Roekens, chief technology officer at PR firm Wunderman.

"But in terms of style, it was underwhelming. People were expecting iPhone 5, but instead it's almost fixing the weaknesses the previous phones had.

"It will be interesting to see how people react to that."

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Apple co-founder Steve Jobs dies

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Banking on technology to stop the rogues

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26 September 2011 Last updated at 23:05 GMT By Michael Millar Business reporter, BBC News WATCH: Risk averse: Used correctly, technology could help to avoid losses like UBS trader Kweku Adoboli's $2.3bn

When news broke that Swiss investment bank UBS had lost $2.3bn (￡1.5bn) through alleged rogue trading, the shock was matched by an equally exasperated response of "not again!" as another financial risk management disaster hit the headlines.

After all, not only did the suspected trader, Kweku Adoboli, work in a 'Delta 1' team - the same desk that the biggest ever rogue trader, Jerome Kerviel of Societe Generale, once plied his trade - but the world continues to reel from a global financial crisis which itself stemmed from a monumental failure of risk management amongst financiers.

It leaves a sceptical public scratching its collective head and wondering just what needs to happen for risk to be kept under control in the financial sector.

It might sound surprising but there is no question whether managing risk is a central obligation for financial firms.

"Under UK company law all companies are required to have a duty of care towards shareholders assets and that includes risk management," explains Prof Brian Scott-Quinn from Henley Business School.

"Under FSA rules they have additional responsibilities, they have to take reasonable care to ensure that any activities in control functions [essentially roles with 'significant influence'] are properly controlled," he adds.

But it is no mean feat to do this; across August an average of 880,000 trades were completed each day on the London Stock Exchange alone, with an average daily value of ￡6.17bn.

Financial firms have back-office functions that are there to confirm transactions are above board, but such is the volume that the only way they can keep up is with increasingly advanced technology.

Technology kicks in

Mat Newman is vice-president at SunGard; its software processes millions of transactions for its financial sector clients every day.

Adaptiv is one of Sunguard's risk management software options

"The interconnectedness of what banks are trying to do across different geographies, different time zones and different trading desks, and asset classes is just immense these days," he says.

"One of the key things banks are faced with as a challenge is how to bring this together, this vast amount of data and make sense of it at the same time - so they can see the wood for the trees."

Without such technology companies don't have a hope of gathering the information they need, analysing it and presenting it to the right people at the right time.

"These days you have systems that will monitor your current positions against those risks and you have a whole series of bells and whistles that will flag not just if you breach those limits but if you come close to those limits," says Mark Hanney, CEO of Valbury Capital stockbrokers.

This is crucial for Valbury Capital, which takes trades from clients and then passes them on to the markets, theoretically running a no-risk business model.

Mark Hanney: "You have a whole series of bells and whistles"

"If a client is trading with us they put up a certain amount of margin, and if that margin is insufficient for their positions then our systems can automatically stop them out," Mr Hanney explains.

"Those systems can apply internally as well, so if a trader goes beyond a certain position then those systems are able, once they've breached those limits, to automatically close the position out."

The "bells and whistles" that flag up problems come in all shapes and sizes, dependent on the technology a firm opts for.

"Exceptions can be flagged graphically on summary dashboards with a number of graphical metaphors employed in the form of traffic lights, dials and graphs," says Daren Cox, CEO of Project Brokers, which supplies data analysis tools to investment banks.

He says that graphics rather than tables of data are often favoured simply because they mean that potential problems are easier to spot.

There are certain key areas of risk on which the technology is often brought to bear.

These include liquidity risk (how much cash you have and whether you can meet your obligations), market risk (what's going on out there in the markets) and one of the biggest of all, credit risk - basically how much people owe you and whether they are going to be able to pay it back.

Abusing the system

With the key flash points picked out and technology that can make a decision on whether a deal is a good idea in less than 10 milliseconds, the obvious question is why things seem to go wrong so regularly?

"One of the main problems these days - as it was in 2008 - is not the system but its operators," says Michel van Leeuwen, CEO of financial compliance consultancy, IMS.

"Their intelligence, experience, vigilance, their clout in the hierarchy and the simple analogy of 'having a clock' is irrelevant if you never look at it or don't look at it frequently."

Technology is also open to manipulation if you know how.

"Part of the problem is the rogue traders we have seen in the past have come from a back office function and they know these processes very well," says Mat Newman of SunGard.

"What's quite common in the City is to grow your own talent from the back office and bring it through to the front office."

Mr van Leeuwen calls this "akin to inviting the cat into the pigeon coop".

"It would be wise not to hire a trader that used to be a... back office employee," he says.

"The imperative, regulator imposed, 'Chinese wall' imposed in process and procedures, doesn't seem to have made it to the frontal lobe of HR or the heads of trading."

Positive thinking

There is a temptation with financial crisis in the air and an angry public after blood to overemphasise the down side of the risks financial institutions take.

This Algorithmics software shows where the trade has failed on a graph

But John Macdonald, executive vice-president at financial software firm Algorithmics, says risk management technology should not just be a way to stamp down on transgressors.

"Any one transaction can be analysed by one individual but it may take some time - if you have a customer you provide banking services to they don't want to wait two or three days for a decision," he says.

"Businesses need to be able to have access to funding and making the right decisions helps the economy grow.

"That's all part of risk management - being able to measure and then decide what level of risk you decide to take because you make a return on the capital you use by taking risk."

Of course there will be those that argue that on occasion slowing everything down a bit and taking a day or two rather than a thousandth of a second to mull a deal over might be a good thing.

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Abramovich 'good at psychology'

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6 October 2011 Last updated at 16:59 GMT Mr Berezovsky began giving evidence as the case moved into a fourth day Chelsea Football Club owner Roman Abramovich is good at psychology, appearing humble and getting people to like him, a High Court judge has heard.

Boris Berezovsky, 65, said his former business partner "intimidated" him into selling shares in Russian oil firm Sibneft for a fraction of their value.

The Russian oligarch is seeking ￡3bn in damages from Mr Abramovich for an alleged breach of trust and contract.

Mr Abramovich, 44, disputes the claims and denies making "oral agreements".

In a written witness statement given to the judge at the Commercial Court, Mr Berezovsky said: "He [Mr Abramovich] is good at getting people to like him and good at psychology in that way.

'Pressure'

"He is good at appearing to be humble. He is happy to spend days just socialising with important or powerful people if that is what is needed so he can get closer to them."

When questioned by Mr Abramovich's lawyer Jonathan Sumption QC about his own past, Mr Berezovsky admitted he was one of the most politically-influential oligarchs in Russia in the mid 1990s.

But he denied any underhand dealings, telling the court: "I am not corrupt. I didn't corrupt anybody."

He also denied "fixing" an auction of Sibneft following its privatisation, and putting "pressure" on the then Russian president Boris Yeltsin.

"My way is not to make pressure," he said. "My way is to persuade and to explain why it is important to do."

Mr Abramovich watched proceedings from the public gallery as Mr Berezovsky began giving evidence to the judge, Mrs Justice Gloster, on the fourth day of proceedings.

The trial is expected to last more than two months.

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Greeks on strike over austerity

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5 October 2011 Last updated at 17:59 GMT A protester explains why she is against the austerity measures in Greece

Dozens of stone-throwing youths have clashed with police in Athens as public sector workers went out on strike in protest at Greece's austerity measures.

The 24-hour strike saw flights and ferry services cancelled, government offices and tourist sites closed, and hospitals working with reduced staff.

Many strikers expressed frustration and anger at the cuts.

The European Commission is discussing ways of propping up banks in Europe to protect them from the Greek crisis.

The general strike is the first since the Greek government announced an emergency property tax and the suspension of 30,000 public sector staff last month.

But despite these measures, the government has failed to cut its deficit to 7.5% of economic output (GDP) - a target it must meet if it is to receive the next instalment of bailout money from the EU.

Meanwhile, in its latest report on the European economy, the International Monetary Fund (IMF) has warned that economic growth is in danger of petering out and a global recession in the coming year cannot be ruled out.

Global financial markets have been in turmoil over fears that Greece could default on its debt, most of which is held by European banks. In other developments:

On Tuesday, Moody's ratings agency slashed Italy's credit rating from Aa2 to A2, blaming an overall loss in confidence in eurozone governments.Despite the Italian downgrade, European markets rose sharply as trading opened on Wednesday.Belgium and France are working on plans to rescue the Franco-Belgian Dexia bank, which is exposed to Greek debt.German Chancellor Angela Merkel said again that Greece must remain a member of the eurozone.'Lives ruined'

The government says the stringent austerity measures cannot be avoided if the country is to reduce its deficit of 8.5%.

Continue reading the main story Mark Lowen BBC News, Syntagma Square, Athens

It is a very noisy demonstration indeed here, certainly the biggest demonstration by Greece's public sector in several weeks. The country has ground to a halt.

All of these people are extremely angry at the austerity measures that the government is desperately trying to push through to qualify for the next instalment of its international bailout, in order to stave off bankruptcy and avoid defaulting on its debts.

The government says it is in a very difficult position, because it must pursue its austerity drive to meet its fiscal targets and reduce the budget deficit to avoid bankruptcy within the next few weeks.

But this wave of social unrest is growing by people who say the measures are deepening the recession, stagnating the economy and stunting Greece's growth.

But the measures are hugely unpopular and have led to a wave of strikes and protests.

Tens of thousands of people stayed away from work across Greece. In central Athens, at least 16,000 marched to Syntagma Square to join a demonstration outside parliament.

Although most of the protests were peaceful, police fired tear gas at small groups of demonstrators who were throwing stones.

About 10,000 people marched in the northern city of Thessaloniki.

Critics of the austerity drive say it is deepening the recession, stunting Greece's growth - the economy will shrink 5.5% this year - and stopping the country from being able to reduce its government debt itself.

Protesters also say they are unfairly bearing the burden of the country's debt.

"This is an opportunity for the Greek people, whether in the public or in the private sector, to fight this, to deny this logic that we must bow our heads all the time to save the country and show patriotism," said 37-year-old protester Dimitris Kizilis.

"We believe, as workers, that patriotism is to respond with actions."

Continue reading the main story

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

End Quote Robert Peston Business editor, BBC News Stathis Anestis, a spokesman for Greece's main union the GSEE, said the new measures were "just extending the unfair and barbaric policies which suck dry workers' rights and revenues, and push the economy deeper into recession and debt".

"With this strike, the government, the EU and the IMF will be forced to reconsider these disastrous policies," he told Reuters.

Greek civil servant and trade unionist Tiana Andreou told the BBC that people's lives had been ruined.

"We have decided that we're going to stop this."

Some militant civil servants are promising to sabotage the moves. On Tuesday, protesters again blocked the entrance to several government departments, including the finance and transport ministries.

The government says it has enough cash to pay pensions, salaries and bondholders until mid-November, having previously said it needed more money by mid-October to avoid a default.

Inspectors from the IMF, European Central Bank and European Commission - known collectively as the troika - have been in Greece this week to assess its financial situation.

But eurozone finance ministers have delayed a decision on handing over the money, after Greece said it would not meet this year's deficit-cutting plan.

The government admitted that the budget deficit will stand at 8.5% this year, rather than the 7.5% target.

On Wednesday, the IMF's European chief Antonio Borges said there was no rush for the second bailout, and that he was "confident negotiations will come to a positive conclusion".

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Trend in EU economic bucking of Estonia

October 6, 2011, last updated: 57 GMT by Charlotte Ashton, World Tallin Tallinn, Estonia-Skype, as well as other companies in emerging technologies now has the fastest economic growth in the European Union, so what does Estonia just when other countries are so many economic problems?

Ave Maria Ounapuu enjoys boom of Estonia.

Organic cosmetics company established JOIK four years ago to take its business to making candles.

She has received grants from the European Union for machinery and marketing help, but says the business agenda of the Government of Estonia helped too: "it was pretty easy.

"There was no problem with the regulations, even finding products to sell went smoothly enough.

"You can report your taxes online so you don't need to spend valuable time to forms and things. We don't have our growth to the Government, but they will not put any obstacles in our way. "

Currently, JOIK employs four people, was moved to a larger space. It has an annual turnover of 250,000 euros, on export to countries bordering the Baltic.

Ave Maria Ounapuu says the Government of Estonia has set up an independent business with ease

This is a similar story of Estonia as a whole, as the country has a long way since she joined the EU in 2004.

The initial flow of credit to the construction boom that led to high House, but the bubble burst in 2008, when the country found itself the economic doldrums, it had to smarten up their act.

Labour laws were liberalised, increased retirement age and public spending cut. But the tax remained low to encourage business; Entrepreneurs were fashionable.

Estonia GDP grew at 8.5% in the first quarter of this year, the fastest growth of all the EU economy. One of the biggest growth areas in it technology.

Estonia exports mainly to the EU, but exports of its main markets, Finland, Sweden are distorted

Skype Online software used by people 200 m each month to make free or cheap video phone calls over the Internet, has its development, on the outskirts of Tallinn.

The software was invented in Tallinn of Dane, Swede and Estonians.

Stan Tankivi, head of Skype Estonia, says: "you can show the country of Estonia itself as a witness. It regained independence 20 years ago, the company generally or culture here has very little hierarchy.

"It is very small and nimble, that sort of environment is very positive for entrepreneurship".

In January, Estonia joined the euro. Stability of the currency result, along with those low corporate taxes (zero profits reinvested), this tiny nation of 1.3 m investment very attractive. Exports are soaring, up 53% last year. This summer came the euro 1bn for the first time.

But 70 percent of exports go to EU countries, growth is deteriorating steadily and its two main export markets, Finland and Sweden.

How is the economy of Estonia so fragile?

It is still a net recipient of EU money but its contribution to financial stability facility means that European companies is decreasingly profitable. Contribution of Euro 2bn represents one third of the annual budget.

"We were invited to a wedding but turned out to be a funeral," says Anders Arrak, Estonian who has entrepreneurial University apply.

Read on the Central story

of course we understand what the meaning of the credit crisis, but in Estonia is not a hot topic for us "

end quote Andrus Ansip Estonian Prime ??????"??? us a lot of money from the EU.

"We have already renovated churches and roads. But now we are being asked to pay money to improve the errors made in the past, Greece and the countries of the eurozone.

"It makes sense. We have to invest in the future of Estonia. "

But the Prime Minister of Estonia Andrus Ansip stay safer will continue its growth: "of course we all need to be concerned but our banking sector is doing well, our commercial banks are well capitalised and correspond to the reserves.

"The State the money are the best of all the European Union because we have still 12% GDP reserves.

"Yes, of course, we understand what the meaning of the credit crisis, but in Estonia is not a hot topic for us."

Mr Ansip thank him an erection activities explaining why Estonia, a poor cousin Mizrahi, fresh out of troubled times himself, bail out its richer southern cousins.

Drinkers in the lounge of their obligation to contribute to the Museum say bailouts EU

But support for the European Union young Estonians soothes the unwavering with a glass of wine in one of the new trendy bars, lounge Tallinn Museum.

Memories of Soviet occupation, which ended just 20 years ago, are still fresh among the younger generation.

Ali is a teacher at the school who says it fully supports Estonia's contribution to the bailout.

"I don't even understand what the discussion. We already received money from the EU now is a good thing because ultimately we are in a position to help someone else. I think it's only fair. "

The Museum lounge Manager, ARGO, agrees. "An overview of Estonia in the West now, only the West," he says.

And Estonia are ready to pay the price.

The world tonight is broadcast weekdays on BBC Radio 4: 00 p.m. BST.

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Morning business round-up

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6 October 2011 Last updated at 11:04 GMT What made the business news in Asia and Europe this morning? Here's our daily business round-up:

Continue reading the main story Last Updated at 11:57 GMT

Market indexCurrent valueTrendVariation% variationStock markets across Europe have been boosted by expectations that EU leaders are about to act to ease the debt crisis.

The main markets in London, Frankfurt and Paris were about 2% up, after Hong Kong closed 5.6% higher.

European Commission President Jose Manuel Barroso said in a television interview that there were plans for co-ordinated action to recapitalise banks.

In the UK, the Bank of England has said it will inject a further ￡75bn into the UK economy through quantitative easing (QE).

The Bank has already pumped ￡200bn into the economy by buying assets such as government bonds, in an attempt to boost lending by commercial banks.

But this is the first time it has added to its QE programme since 2009. There have been recent calls for it to step in again to aid the fragile recovery.

The Bank also held interest rates at the record low of 0.5%.

European aircraft maker Airbus has struck a deal worth $9.5bn (￡6.2bn) with Australia's Qantas for 110 jets.

The order, said by Qantas to be the country's single largest aircraft purchase by units, will underpin the airline's expansion into Asia.

Qantas, which is launching a low-cost and a premium airline in Asia, is buying 78 Airbus 320neos and 32 A320s.

Eleswhere in Asia, there are reports that many Chinese private sector enterprises are facing bankruptcy because of credit tightening and an explosion in informal lending.

In the eastern city of Wenzhou, one-fifth of the city's 360,000 small and mid-sized businesses have stopped operating due to cash shortages, China's official news agency Xinhua reported on Thursday.

Business headlines

And shares of Citic Securities have fallen on their debut at the Hong Kong stock exchange as market volatility continues to dent investor sentiment.

Its shares fell by as much as 10% in early trade to HK$11.90 from an offer price of HK$13.30.

Citic securities, China's largest listed brokerage had sold 995.3m shares raising HK$13.2bn ($1.7bn, ￡1.1bn).

Many Chinese firms have recently cancelled or postponed their proposed listing on the exchange.

Meanwhile, the state of the UK housing market has been under scrutiny. House prices are "lacking genuine direction", according to the Halifax, as it reported a 0.5% fall in values in September compared with August.

Prices were down 2.3% from a year ago, leaving the average home in the UK worth ￡161,132 ($249,560), the lender said.

The latest edition of Business Daily from the BBC World Service looks at the legacy of Steve Jobs, founder of Apple Computers, who died on Wednesday aged 56.

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VIDEO: Steve Jobs: Apple's driving force

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6 October 2011 Last updated at 03:56 GMT Help

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Making Olympic technology work

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28 September 2011 Last updated at 23:07 GMT Weighty task: Making the technology for the London Olympics work is a "huge responsibility" says chief integrator Michele Hyron Each week we ask high-profile technology decision-makers three questions.

Michele Hyron: Viewers will be able to choose which competition, nation or athlete they want to follow

This week it is Michele Hyron of Atos,?chief integrator for the Olympic Games in London. She is responsible for leading the consortium of IT partners to design, build and operate the massive IT infrastructure that will support the London 2012 Games.

Ms Hyron leads a team that include employees from Atos and technology partners LOCOG, as well as volunteers.

She already has nearly 10 years of Olympic Games experience, serving as operations manager at the Beijing 2008 Olympic Games, integration manager at Athens 2004 and quality manager at the winter Games in Salt Lake City 2002.

What's your biggest technology problem right now?

As the chief integrator for the London 2012 Olympic and Paralympic Games, I suppose that people would expect me to have a long list of problems. After all, if the IT doesn't work, then effectively the Games can't take place.

It is a huge responsibility, and one that everyone takes extremely seriously, but this is now my third Olympic Games and Atos's sixth.

While the technologies advance every time and we are faced with fresh problems as we integrate new applications, we have developed a robust process that ensures that we test everything in the lab over and over again.

By the time we get to the Games themselves, we have covered an extensive testing program.

In fact, our work is analogous to training pilots in aircraft simulators.

We throw every possible scenario at the IT teams - from the failure of the communications network to someone accidentally pulling out a plug - and ensure that we can recover from these without anyone at the Games or watching on TV noticing that a problem has even occurred.

The most challenging aspect of the job, though, is undoubtedly the massive increases in the amount of data which has to be organised and channelled with split-second timing.

It is estimated that between the dawn of civilisation - some four to five thousand years ago - and 2003, mankind had created about five exabyte's of data, which is 5bn gigabytes.

Across the world, we now create that amount of data every two days and the volume of business data is doubling every 18 months.

The Olympic Games is no exception. For Beijing, we produced 50% more data than we handled at the Athens Games.

The London 2012 Games will see us process significantly more information than we had at Beijing, as we meet the demands of sports fans worldwide for the latest information on their favourite events and sports stars, and deliver this information via broadcasters, internet and mobile.

What's the next big tech thing in your industry?

Atos is a global business with a presence in more than 42 countries and a workforce of 78,500 business technologists. In many respects our industry covers virtually every aspect of IT and every industry sector.

However, from my personal perspective it is the magic that we can now work with metadata to create a completely different TV experience for watching sport which is the most exciting.

We will have the ability to offer viewers the chance to choose exactly which competition, nation or athlete they want to follow, and enable them to follow more than one sporting event simultaneously.

This digital quality service will be offered over fixed and mobile devices, and is designed to allow sports fan to watch events that aren't even being broadcast on a regular programme.

So unlike the type of technologies people are used to today, with a personal video recorder (PVR) integrated into a set-top box allowing them to select when they view broadcasts, this new approach makes the viewer the director, selecting what they watch, when and from what angle.

Our approach incorporates face-recognition technologies, and this means that a viewer can either have automatic selection of the best shot or a recommendation that they can accept or reject.

The amount of data that has to been managed to offer this service is staggering, and by 2014 we estimate that more than 90% of all data traffic in the world will be video content.

It will be the equivalent of 32 million people streaming Avatar in 3D continuously every month.

What's the biggest technology mistake you've ever made - either at work or in your own life?

As a complete beginner in software development, at the start of my career, I enjoyed developing a program in Assembler.

I made it as compact as possible, playing with the stack and using other tricks. It was great fun!

What I didn't appreciate at the time was that this piece of code was completely unmaintainable.

My colleagues were still blaming me for this work years after I moved on to other things.

It was a really good lesson so early on in my career, and taught me the importance of looking ahead and appreciating the impact of what I do, not just tomorrow but years into the future.

It also taught me that while playing with software is really fun - and it is - delivering programs that are robust and practical is what counts.

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VIDEO: Prodi: Public will accept debt decision

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29 September 2011 Last updated at 11:00 GMT Help

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UK needs eurozone safeguards - PM

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4 October 2011 Last updated at 09:04 GMT Mr Cameron says he is a "practical Eurosceptic" David Cameron has said UK interests must be protected should eurozone countries seek closer integration as a result of the debt crisis in Europe.

The prime minister told the BBC it was "logical" that countries using the single currency would move closer to a single economic policy.

But he said the UK and nine other EU states which are not in the eurozone would need "certain safeguards".

The BBC understands UK officials are preparing for such an eventuality.

The BBC's political editor Nick Robinson said the Treasury and Foreign Office were already discussing how to protect British interests, in areas such as the City of London and the single market, should there be a fundamental change in the shape of the EU.

As the eurozone economic crisis shows no sign of abating, some of its 17 members have been talking about greater fiscal union to bolster the single currency in future and support weaker members.

At the same time, Mr Cameron is facing calls from many of his MPs for a fundamental change to the UK's relationship with Europe. Some want the UK to claw back powers from the EU while others are seeking a referendum on the UK's membership.

'Not naive'

The prime minister, who calls himself a "practical eurosceptic", has said the UK must work within the current EU framework to get the best deal for Britain and that any talk of repatriating powers must wait to a later date.

He told the BBC he believed closer co-operation between eurozone members was "necessary" to prevent a repeat of the current crisis and denied he had changed his view, since before the debt crisis began in 2009.

Continue reading the main story

This is not some naive view that they go off on their way and we are intensely relaxed about it”

End Quote David Cameron on the eurozone "I have always argued that the logic of a single currency is more of a single economic policy," he told BBC Radio 4's Today programme.

"It is one of the reasons I never wanted to join it.

"As eurozone countries move to co-ordinate more, as I believe they should, those outside the eurozone will need certain safeguards to make sure that what the eurozone countries are agreeing separately does not affect the single market."

He added: "This is not some naive view that they go off on their way and we are intensely relaxed about it. There are safeguards we need and the Liberal Democrats completely agree with that."

Deputy PM Nick Clegg, whose Liberal Democrats are the most pro-European of the three biggest UK parties, has said the eurozone crisis should not be used as a justification to radically alter the UK's relationship with the European Union.

But, with 40% of UK trade going to Europe, Mr Clegg has said the single market - which is supposed to guarantee free movement of goods across Europe - must work more effectively and British firms must be able to compete on a level-playing field.

The deputy prime minister has warned that allowing eurozone states to act against the interests of other EU members would create a "divisive and weaker" Europe.

'Held back'

As EU finance ministers meet in Luxembourg to discuss the crisis, Mr Cameron said it was in the UK's interest that the "fire" in the eurozone was put out as quickly as possible.

"The eurozone crisis is holding back the whole world economy, Britain included," he said. "Clearly the Greek situation needs to be resolved one way or another and extremely quickly."

The future of Europe is not on the official conference agenda and one of Mr Cameron's closest allies has warned party members against obsessing about the issue during the event.

But Nick Robinson said it was the dominant issue for many MPs and party members while the PM's advisers believed the EU could be set for a once-in-a-generation transformation due to the current crisis.

This begged the question whether the UK should seeker a closer or more distant relationship with the EU or leave altogether - a possibility rejected by the government.

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A lost decade for investors?

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

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

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

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

Investing in the 'sweet spot'

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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AUDIO: Germany 'committed to eurozone'

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Germany's Chancellor Angela Merkel will today ask her country's politicians to sign off a plan to give more money to Europe's bail out fund.

Peter Altmaier, leader of the parliamentary group for the Christian Democrats, predicts the result and the long term consequences for Angela Merkel.

And Europe editor Gavin Hewitt previews a test of her power and authority.

Get in touch with Today via email , Twitter or Facebook or text us on 84844.

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Could impact investing help India's poor?

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29 September 2011 Last updated at 08:34 GMT By Shilpa Kannan BBC News, Delhi Virender wants to grow his business of recycling plastic Sorting out plastic bags collected from rubbish tips is a serious business for Virender Kumar.

Sitting on a pile of plastic bags, he is busy giving directions to the labourers he employs to help him with the recycling.

Once the bags are sorted, he sells them to recycling units to be melted down into plastic pellets.

He makes about 20,000 rupees ($410; ￡262) profit every month. But he has bigger ambitions that need funding.

He says that by working overtime, he saved money to start the recycling unit. But now he wants to hire more people and expand the business.

"But everything needs money," he says. "Banks don't lend to people like me."

India's growing middle class has been a target for many companies, but now another segment of society is increasingly becoming a focus for investors - people living below the poverty line.

But can businesses make a profit and also serve a social purpose?

Loan controversy

People like Mr Kumar are now being wooed by financial institutions such as the Shriram Group.

While millions of people across India have little or no access to formal finance, investment funds which want to make a social impact are lending a helping hand.

These funds invest in people and sectors that traditional banks ignore. It is called "profit with a purpose".

But they are using insurance as a means of helping small businesses rather than loans.

Microfinance, or giving small loans to low-income borrowers, has received a lot of bad press in India recently.

The sector was booming until a spate of suicides by borrowers in the southern state of Andhra Pradesh led to the authorities tightening regulations.

At its peak, the microfinance sector saw almost $7bn in loans distributed to 30 million borrowers, and Andhra Pradesh accounted for a third of the total business.

As a result of the new laws, debt repayments fell drastically and the entire sector is now facing a massive consolidation, and many lenders have been forced to shut up shop.

Microinsurance is different from microfinance as this provides a safety net to prevent people from falling back into poverty.

The International Labour Organisation describes microinsurance as a mechanism to protect poor people against risk (accident, illness, death in the family, natural disasters etc) in exchange for insurance premium payments tailored to their needs, income and level of risk.

If a person earns $5 a day, making $150 a month, and a typical insurance product is under $4 a month, that person is able to, with that very limited amount of capital, free their family up substantially.

Having that extra protection means that instead of sending the children to work to save for a rainy day, they can send them to school.

Capital injection

Leapfrog is a $135m US-based impact investment fund that was set up to invest in companies that underwrite or distribute insurance.

The fund is backed by billionaire George Soros and e-bay founder Pierre Omidyar, as well as a consortium of banks, pension funds and reinsurers.

Leapfrog says that it is a big myth that because people have low incomes they are unable to pay for meaningful products.

"We are looking at the next billion consumers," said Andrew Kuper, co-founder of Leapfrog.

"The consumers who are rising out of poverty and into the middle-classes… aspiring, seeking to acquire financial services and other services that allow them to go on their journey in a more effective way."

He thinks businesses that serve that segment are going to have a massive competitive advantage.

Continue reading the main story

The ability with a very small percent of your income to totally reshape your microeconomic picture is a huge opportunity”

End Quote Andrew Kuper co-founder, Leapfrog "The ability with a very small percent of your income - less than 4% - to totally reshape your microeconomic picture and the daily choices that you and your family make is a huge opportunity.

"What isn't happening is companies getting to grips with the notion that you can serve that population, and we find that it is a very narrow slice of companies. Fortunately we are engaging with them."

More than 85% of Shriram Group's customers are first-time buyers of any financial product. It is the first provider to more than 98% of its customers. The group hopes that the capital injection from Leapfrog will benefit 10 million people in India.

G S Sundararajan, managing director of Shriram Capital, says his company is targeting people with an average annual income of $2,500.

"We already offer financing and investment services to the lower-income masses across India. Now, we plan to increase it even further. We'll be using Leapfrog's expertise to design new insurance products that are more effective for our existing consumers."

Huge potential

Microinsurance is not a new concept in India. The country was one of the first to introduce microinsurance regulation.

The Insurance Regulatory and Development Authority (IRDA) made it mandatory for all formal insurance companies to extend their activities to rural and social sectors as early as 2002.

But microinsurance companies face a huge challenge in connecting with customers. Many companies have been trying creative ideas - for example, the Shriram group is using its transport finance wing to connect with truck drivers and sell products to them.

India's biggest fertiliser company, IFFCO, provides free insurance cover to farmers along with each bag of fertiliser purchased. It has a joint venture with Tokio Marine and Nichido Fire Group, the largest listed insurance group in Japan.

It also provides a cattle insurance policy that covers the death of the animal due to accident, disease, surgical operations, strike, riots and even acts of terrorism or an earthquake.

A loan increased Virender's profits by 50%, by helping to pay for a new truck

The potential is huge. A study by the United Nations Development Programme (UNDP) in 2007 reported that up to 90% of the Indian population, or 950 million people, were excluded from the insurance market and represented a powerful "missing market".

But the private sector is risk-averse when it comes to investing in such people.

And just government resources and charitable donations cannot address the enormous social problems the country faces. Impact investments offer an alternative.

Reducing poverty

Recognising this growing segment, the biggest newspaper in the country, The Times of India, in association with J P Morgan, has announced awards for social impact.

Rahul Kansal is the organiser of the awards and he says that there are opportunities beyond just microinsurance for social impact in the country.

He says that large scale private capital can be channelled to public works.

"Increasingly we are seeing that in a country like India, there are avenues like healthcare, education, civic areas like waste management which need attention."

"The government cannot cope with the size of the problem. This is where organisations both for profit and non-profit can step in."

He thinks this large-scale neglect and need could be the next big investment opportunity.

A loan helped finance a new truck for Virender Kumar, increasing his profits by more than 50%. But he has also got life insurance and accident cover that came bundled with his truck financing, to protect his family.

It is people like him that are benefiting most by impact investments. Reducing poverty requires not just the generation of income among the poor, but also the protection of these incomes.

They are people who are making the transition from the informal to the formal economy - and bringing financial products to them gives them a chance to be included in the country's rapidly growing economy.

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Flat summer sales at Thomas Cook

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29 September 2011 Last updated at 07:34 GMT Thomas Cook has issued three profit warnings over the past year in the face of tough trading conditions Thomas Cook has said bookings by its UK customers were "flat" during the summer holiday season, but that its full-year profits should be "broadly in line with market expectations".

In a trading statement, the travel company also said it was continuing to be affected by the political turmoil in the Middle East and North Africa.

It said this had particularly affected its French business.

However, its sales in northern Europe, including Germany, were up strongly.

Its summer bookings for this region - which also includes the Scandinavian countries - were 13% higher than a year earlier.

Bookings in France, Belgium, the Netherlands and Eastern Europe were down 1% from a year ago; and there was no change in the UK.

Boss departure

Thomas Cook's forward bookings for the 2011-12 winter season are currently mixed when compared with the same time last year.

They are down 7% in the UK, and 16% lower in France, Belgium, the Netherlands and Eastern Europe, but up 6% in Germany and Scandinavia.

Thomas Cook said it was continuing efforts to boost its profitability.

The company also said it would not be making any dividend payments. It is instead focusing on paying down its debts of around ￡900m.

Former chief executive Manny Fontenla-Novoa left in August, followed just over a week later by the head of its UK retail division, Ian Derbyshire.

They departed the company after it had issued its third profit warning in a year.

Thomas Cook is now continuing with a strategic review of the business.

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VIDEO: Mid-East unrest over cheap housing

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Smart jeans: A cause for concern?

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22 September 2011 Last updated at 23:06 GMT By Katia Moskvitch Science and technology reporter, BBC News More and more objects are getting on the web What if those new jeans you've just bought start tweeting about your location as you cross London Bridge?

It sounds far-fetched, but it's possible - if one of your garments is equipped with a tiny radio-frequency identification device (RFID), your location could be revealed without you knowing about it.

RFIDs are chips that use radio waves to send data to a reader - which in turn can be connected to the web.

This technology is just one of the current ways of allowing physical objects to go online - a concept dubbed the "internet of things", which industry insiders have shortened to IoT.

This is when not only your PC, tablet and smartphone can connect to the web, but also your car, your home, your baseball cap and even the sheep and cows on a farm.

And as we switch from IPv4 towards IPv6, which will support some 340 trillion trillion trillion addresses, more and more objects will jump into the web.

Smart buildings and intelligent cars with assigned IP addresses are already making cities smarter - and soon enough, the entire planet may follow.

"A typical city of the future in a full IoT situation could be a matrix-like place with smart cameras everywhere, detectors and non-invasive neurosensors scanning your brain for over-activity in every street," says Rob van Kranenburg, a member of the European Commission's IoT expert group.

In Italy, a group of elderly people have had sensors placed at their homes for remote monitoring

This vision might still be years off, but one by one, "smarter" cities are beginning to crop up around our landscape.

Endless opportunities

IoT advocates claim that overall interconnectivity would allow us to locate and monitor everything, everywhere and at any time.

"Imagine a smart building where a manager can know how many people are inside just by which rooms are reflecting motion - for instance, via motion-sensitive lights," says Constantine Valhouli from the Hammersmith Group, a strategy consulting firm.

"This could help save lives in an emergency."

Continue reading the main story

The ethical worries are manifold... which principles should govern the deployment of the IoT?”

End Quote Gerald Santucci European Commission But as more objects leak into the digital world, the fine line that separates the benefits of increasingly smart technology and possible privacy concerns becomes really blurred.

"The IoT challenge is likely to grow both in scale and complexity as seven billion humans are expected to coexist with 70 billion machines and perhaps 70,000 billion 'smart things', with numbers infiltrating the last redoubts of personal life," says Gerald Santucci, head of the networked enterprise and RFID unit at the European Commission.

"In such a new context, the ethical worries are manifold: to what extent can surveillance of people be accepted? Which principles should govern the deployment of the IoT?"

Talking shirts

Peter Hustinx, European data protection supervisor, says that sometimes firms tend to overlook the importance of personal data.

"In much of the monitoring, tracking and tracing [devices] which are embedded in these facilities, there's privacy relevance, and it will have to be compliant with the new European Commission Framework," he says.

Toyota Friend lets cars communicate with the drivers on a private social network

The Framework was signed by the European Commission in April 2011, and its main purpose is to safeguard consumer privacy and assure the public that web-connected objects are safe for the industry to develop - and for people to consume.

Take clothing, for instance.

A number of stores, among them major retail chain Wal-Mart, have started using RFID tags to enable employees to quickly check the stock by scanning items on shelves, and to track products more easily from manufacturing to the final delivery.

But privacy advocates are concerned that the same RFID reader could also read the data on, say, a consumer's passport or driving licence equipped with the same kind of chip - and it could lead to identity theft.

And although the tag is supposed to be removed at the checkout, if a consumer leaves the shop with the chip still attached, the item could be tracked on the street.

Once the tag is thrown away, it can still be scanned, enabling someone to get an idea of your shopping habits.

Hackers also know how to decode RFID tags.

And because the information is transmitted via radio waves, one can simply listen in.

That's exactly what happened when the Soviets presented a US ambassador during the Cold War with a wooden carving of the Great Seal, bugged with an RFID predecessor - a device called The Thing.

The Americans failed to find it - just like modern RFID tags, it only worked when enabled by a radio wave - which led to the Soviets eavesdropping on the conversations at the ambassador's office by beaming radio signals to it.

Going smart

Another way to make things smarter is by embedding sensors in them and sending data online via a wireless low-power technology called Zigbee.

Sensors "tell" the driver where free parking spaces are

IBM is doing just that - its project that remotely monitors the environment that could affect the health of elderly people in Bolzano, Italy, extended caretaker supervision with sensors embedded all over the patients' homes, providing round-the-clock peace of mind not only for the patients but for their families too.

The sensors read the levels of carbon monoxide, carbon dioxide, methane, temperature and smoke, and send the information to the caretakers' PCs and mobile devices.

To protect the patients' personal data, IBM uses encryption, says Bharat Bedi from the firm's lab in Hursley, UK.

"And we've also added some anonymous features to the system - when you log on to the dashboard, you don't see the person's name or their exact address, they've been given almost like code names which only mean something to the council workers and the relatives," he says.

A Spanish company Worldsensing has come up with a similar sensor-based technology.

With help of a special app on your smartphone, drivers can receive data from sensors installed in parking spaces, telling them where the closest free spot is.

Continue reading the main story

Your mobile phone operator and your bank know much more about your life than your wife or husband does”

End Quote Mischa Dohler Worldsensing "So that no one tries to sneak into your system and steal personal data - such as where you parked and how long you stayed - we use encryption, and also apply a decoupling technique that separates personal information from purely technical data," says the firm's chief technical officer, Mischa Dohler.

Chatting cars

Cars are rapidly becoming smart, too.

Toyota, for instance, has always been one of the frontrunners in telematics - and now it has decided to team up with Salesforce.com to allow cars to chat to their drivers on a private social network.

The venture, called Toyota Friend, will first work only for hybrid and electric cars. So if the battery is almost flat, for instance, the driver would receive a short message via Bluetooth on his or her smartphone.

In a demonstration at a Tokyo showroom, one of the Toyota owners showed such a message: "The charge will be completed by 2:15 am. Is that OK? See you tomorrow."

Stores all over the globe are tagging their items with RFID chips

The car will also be able to update its - and hence the driver's - location.

And it is here that privacy issues may come into play. What if the location is revealed automatically, for instance if the owner forgets to modify the privacy settings, just like on Facebook?

But Salesforce.com's Tim Barker says that privacy should not be a concern.

"Social Enterprise applications provide customers an opt-in to allow them to share information such as their location and 'likes', to enhance their experience as a customer and the information that they receive," he says.

It is hard to predict how well all these issues will be addressed once the entire planet gets on the web.

But as Mischa Dohler from Worldsensing puts it, in our already digital and high-tech society, the IoT privacy issues have to be taken with a little pinch of salt.

"It's just like with your phone and a credit card - your mobile phone operator and your bank know much more about your life than your wife or husband does," he says.

"And this data is likely to be more critical than the type of jeans you wear or for how long you've been parked."

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Trade watchdog link to loan firm

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1 October 2011 Last updated at 23:40 GMT By Adrian Goldberg Presenter, 5 live Investigates Trading Standards is taking consultancy payments from a firm which is also the subject of customer complaints.

West Yorkshire Trading Standards (WYTS) received payments from online loans broker SGE Loans in exchange for regulatory advice.

But some customers claim that SGE Loans has debited their bank accounts without consent - a claim SGE Loans denies.

WYTS says such partnerships are necessary because of budget cuts but its integrity remains unaffected.

WYTS says it has received over ￡88,000 ($137,500) since April 2011 from a total of 47 companies with which it has similar partnerships.

It confirmed that it only started charging SGE Loans for its detailed advice in that month, but would not reveal the precise sum it had received from SGE Loans, citing commercial confidentiality.

However, it did reveal that it had investigated a number of complaints made against the company.

Unauthorised payments

One customer who contacted the 5 live Investigates programme, Lianne Gray, says she rang SGE Loans in August of this year.

Customers say SGE took unauthorised payments from their bank accounts. SGE Loans denies this.

She says she was reassured that no money would be taken out of her account if she decided not to take out a loan.

"I then discovered two days later that the company had taken ￡79.99 out of my bank, which I could not afford to lose because I'm on benefits," she said.

"I am absolutely disgusted with how I have been treated."

5 live Investigates contacted SGE Loans on Ms Gray's behalf and her money was subsequently refunded five weeks after it had been debited.

Continue reading the main story

SGE Loans does not debit money from customers' accounts without authorisation”

End Quote Sally Hill Chief executive, SGE Loans David Dutfield had a similar experience when he called SGE Loans in June.

"I was told on the phone that no money would leave my account if my loan was below ￡200, which is what I was after.

"Yet when I came off the phone I found that ￡69.99 was taken from my account."

Following inquires made by the BBC, Mr Dutfield has also been refunded following more than three months of dispute.

West Yorkshire Trading Standards confirmed, in several instances, recordings of customer calls revealed that some SGE Loans staff had not fully explained the terms of its business and did not warn customers they were liable to pay an upfront fee, which could be refunded after a 14 day cooling-off period.

WYTS says SGE Loans subsequently took disciplinary action and retrained staff who made such mistakes.

SGE Loans chief executive Sally Hill told the BBC that SGE Loans did not debit money from customers' accounts without authorisation.

In a written response, she said that SGE Loans had never refused to refund money to a customer who had cancelled within the 14 day cooling-off period, if the company's service had not been used.

'Error of judgement'

Leeds-based SGE Loans has what is called a Primary Authority Partnership with West Yorkshire Trading Standards, which means that the branch deals with complaints made against the company from across the UK.

The company also has a commercial contract with WYTS, paying for advice about legal and regulatory issues.

During the course of its investigation, 5 live Investigates discovered SGE Loans featured a West Yorkshire Trading Standards logo on its website.

When asked why the logo was being used by the company, WYTS said: "Initially, and possibly naively, this service [WYTS] assumed that this would be taken for what it was - a statement of fact that we and the business had a Primary Authority partnership.

Continue reading the main story

Trading Standards should distance themselves from all companies and it would be better for all of us if all businesses regarded Trading Standards as a threat and something to be worried about”

End Quote Mark Gander Consumer Action Group "However, we now recognise that people are assuming that this is an endorsement of the business."

As a result, WYTS has asked SGE Loans to remove the logo from its company website.

When asked if it felt compromised by taking payment from firms it was also receiving complaints about, WYTS told the BBC:

"We refute any allegation that being in a Primary Authority Partnership with any business means this service does not undertake its duties, including to deal with complaints impartially, in anything but a professional manner."

WYTS also says that its relationship with SGE and other businesses helps them to understand the legal framework within which they operate, and "get it right", thus saving taxpayers money in the long run.

Marc Gander, from Consumer Action Group, told 5 live Investigates that it was inappropriate for a regulatory body to be funded in this way and said it was "a grave error of judgement".

"Trading Standards should distance themselves from all companies and it would be better for all of us if all businesses regarded Trading Standards as a threat and something to be worried about," he said.

WYTS, in common with Trading Standards offices around the UK, is under severe financial pressures as it faces budget cuts.

Planned local government spending on Trading Standards across England has been reduced overall by 11.4% in 2011/12, and in Wales by 7.4%.

WYTS says it faces budget cuts of 22% and this has has made it a necessity to charge companies such as SGE Loans for its regulatory advice.

Some 443 of 538 Trading Standards departments responded to a survey by 5 live Investigates - 18 said they received income from private companies in exchange for regulation and compliance advice.

You can hear the full report on 5 live Investigates on Sunday, 2 October at 21:00 BST on BBC Radio 5 live.

You can listen again on the BBC iPlayer or by downloading the 5 live Investigates podcast.

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Kingfisher to end budget airline

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28 September 2011 Last updated at 14:43 GMT Mr Mallya says there are enough passengers who want to use the non-budget service India's Kingfisher Airlines plans to pilot a new premium business model and ground its existing low-cost outfit.

The airline, India's second biggest private carrier, is run by drinks baron Vijay Mallya, who said changes would come in the next four months.

The budget arm of the airline, which was created in 2008, is called Kingfisher Red.

"We are doing away with Kingfisher Red because we do not intend to compete in the low-cost segment," Mr Mallya said.

'Better yields'

"We believe that there are more than enough guests who prefer to travel the full service Kingfisher class and that shows through in our own performance where load factors in the Kingfisher class are more than Kingfisher Red," he said.

Kingfisher started business as a full service carrier in 2005. Three years later it bought out Deccan, India's first budget airline, and the merger resulted in the budget arm being created.

"The margins of Kingfisher class are higher than Kingfisher Red. That's because the yields are better," Mr Mallya, who is chairman and chief executive of Kingfisher, added.

The move bucks the current trend in Indian aviation, where half of the six major airlines are budget carriers.

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VIDEO: Samsung's smartphone makes inroads

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7 October 2011 Last updated at 05:06 GMT Help

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Oil firm resumes Libya operations

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

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

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

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

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

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

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

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

Slow recovery

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

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

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

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

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

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

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

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

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

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

The report has not yet been confirmed.

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Increase in UK mortgage approvals

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29 September 2011 Last updated at 09:29 GMT The figures suggest a pick up in sales may lie ahead The number of new mortgages approved, but not yet lent, for home buyers in August rose to its highest level since December 2009.

The Bank of England said 52,410 mortgages were approved last month.

That was nearly three thousand more than in July, and the highest number since December 2009.

The figures suggest that a recent slight relaxation in lending criteria by banks and other lenders will lead to higher sales in the coming months.

Adrian Coles, director-general of the Building Societies Association, said: "Approval figures continue to look promising as consumers take advantage of the competitive mortgage rates."

"However, the outlook for the economy has deteriorated over the past month as has consumer confidence, which could well spill into the housing market, causing further weakness," he warned.

Lending squeeze Continue reading the main story

We are telling people to be realistic. If the price is right then it will sell”

End Quote David Sharpe, Sales negotiator, Dowen estate agents, Hartlepool Average house prices have been stagnant across the UK this year, with both the Nationwide and the Halifax reporting little change in the past few months.

In its latest survey, the Nationwide said house prices had continued to "tread water" in September. House prices rose by 0.1% in the month, Nationwide said, but were 0.3% lower than a year ago.

The number of house sales fell in August, according to the Bank of England's own figures published last week.

They dropped by 6,000 from July to 78,000 in August which was, in turn, 3,000 lower than in August last year.

Approvals are traditionally a good indicator of near term trends in sales, so the latest approvals data suggests that sales funded by mortgage borrowing may pick up this autumn.

But on Wednesday the Bank of England said banks had told it they may face a renewed squeeze on their ability to lend.

In its quarterly Credit Conditions Survey, the Bank said it had been told by some big lenders that they might find increasingly hard to raise the necessary funds on the wholesale financial markets to lend to home buyers.

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Online traders' 'refund failings'

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AppId is over the quota
6 October 2011 Last updated at 12:15 GMT By Kevin Peachey Personal finance reporter, BBC News The test purchases were part of an EU-wide campaign to check consumer rights More than half of traders failed to give full refunds to customers who pulled out of online purchases during a cooling-off period, tests have shown.

Under consumer rights law, all costs - including delivery costs - should be refunded if consumers decide to cancel the contract in the allotted time.

Test purchasing by European authorities found that in 57% of cases, traders failed to reimburse delivery costs.

A BBC investigation highlighted the issue in December.

Online shopping

When buying from the internet, unlike in a shop, customers are unable to examine the goods before they buy them.

As a result, a cooling-off period is available to people shopping online. In the UK, shoppers have seven working days to return items bought on the internet that they do not want to keep. In some European countries it is longer.

There are a few exceptions, such as unwrapped CDs and perishable goods, but otherwise the money should be credited to the buyer's account as soon as possible and within 30 days at the latest.

Continue reading the main story In the UK, there is a cooling-off period of seven working days for unwanted itemsTraders should refund within 30 days, unless previously agreed otherwiseDelivery charges should also be reimbursedSome perishable goods such as foods and flowers are exemptRights for goods that are not of satisfactory quality are the same as the High Street - a refund, replacement or repairAny refund should include delivery costs incurred by the customer.

During a mystery shopping exercise by European authorities in 2003, these delivery costs were not reimbursed in 53% of cases.

But 305 tests earlier this year, by the European Consumer Centres' Network, found that this had increased to 57%, although refunds for the items themselves were paid in 90% of cases.

"This needs to improve in order to ensure a continuous positive development in cross-border e-commerce," a spokesman for the UK European Consumer Centre said.

In 7% of all the purchases made, the trader did not inform the customer about the price of the delivery costs at all.

Changes

Some results of the test purchases do make better reading for consumers.

For example, the delivery rate for items ordered online improved significantly compared with 2003, as had the number of items delivered within 14 days. There was also an increase in the number of websites offering information in more than one language.

Many of the current consumer rules operating in EU countries pre-date the widespread use of the internet by shoppers.

So MEPs have approved plans to update the rules, including a 14-calendar-day cooling-off period for online purchases.

Governments will have two years to implement the changes.

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Games journey times 'may double'

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AppId is over the quota
2 October 2011 Last updated at 17:00 GMT TfL has said Games Lanes will contribute to increased traffic in some areas of London Journey times on some of London's roads could more than double during the Olympics next year, Transport for London (TfL) has admitted.

The information was in a brief sent to businesses about the Games.

Commuters have been warned of huge delays as an extra 5.3 million visitors are expected in London for the event.

Transport Minister Theresa Villiers said she was confident about the preparations being carried out by TfL to cope with the extra demands.

In an interview with the BBC's Politics Show on Sunday she said: "TfL are focused on keeping London moving during what is going to be the largest event ever hosted in this country.

"It will mean some transport disruption and there will be pressure on the transport system but we will adapt to minimise disruption."

She said businesses were actively engaging with TfL but admitted there was more to do.

A TfL spokesman said: "We have been clear that at certain times and places the transport network will be much busier than usual, which is why we are already working with businesses to ensure they can keep on running and make the most of the great financial opportunities offered by the Games.

"While the transport network will be very busy, we are confident that we will keep London moving while delivering a hugely successful Games."

Commuters have already been warned there could be huge delays to get into large stations such as London Bridge because of the extra pressure on the transport network.

In April a London Assembly report claimed transport problems remained "one of the biggest risks" to the 2012 Olympics.

And in July TfL admitted the "Games Lanes" - dedicated lanes for Olympic athletes and VIPs - would put greater traffic demands on certain parts of the network during the Olympics.

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VIDEO: Human cost of Greek crisis

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AppId is over the quota

The people of Greece are now having to pay the price of past official financial mismanagement, as the government takes drastic steps to try to avert a euro debt default. Paul Mason went to Athens to report on the human cost of political hubris.

Broadcast on Wednesday 28 September 2011.

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UBS set to make 'modest profit'

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AppId is over the quota
4 October 2011 Last updated at 07:13 GMT Oswald Gruebel UBS's former chief executive resigned over the rogue-trading loss. Swiss bank UBS said it will make a small profit in the third quarter despite losing $2.3bn (￡1.5bn) through unauthorised trading.

When it first discovered the alleged fraud, it warned it might report a loss for the three months to the end of September.

But the bank has said in a statement: "UBS expects to report a modest net profit for the group."

Former UBS trader Kweku Adoboli is accused of fraud and false accounting.

The 31-year-old City of London-based trader was remanded in custody until 20 October.

The bank said it now expected a small profit even after taking into account losses from the incident, as well as 400m francs ($435m, ￡270m) worth of restructuring charges linked to its cost-cutting programme.

But the bank said that its strength buffer - the so-called Tier 1 capital ratio - was expected to be slightly down on the second quarter because of the losses due to the trade.

The former chief executive of Swiss bank UBS Oswald Gruebel resigned over the rogue-trading loss.

The bank is also undergoing a major shake-up which will see it shrink its investment banking division to reduce its risks.

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China tech stocks dive on Nasdaq

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AppId is over the quota
30 September 2011 Last updated at 01:19 GMT Continue reading the main story Chinese internet stocks have dived in New York trading after the US Justice Department said it was considering launching a fraud investigation.

The news was disclosed by Robert Khuzami, director of enforcement at the US financial services regulator.

Youku, which models itself on web video firm Youtube, was among the hardest hit, falling 18%.

Chinese search engine firm Baidu fell 9%, rival portal site Sohu lost 5.3%, and messaging firm Sina dipped 9.5%.

The fraud concerns have arisen after accounting irregularities emerged at a number of Chinese firms whose shares are traded in the US.

"There are parts of the Justice Department that are actively engaged in this area," said Mr Khuzami, when asked by the Reuters news agency whether criminal cases were being prepared.

He also confirmed that other federal prosecutors are involved in the investigation, but did not identify them, nor which Chinese companies and auditors are being looked into.

'A big issue'

The probe is the latest spotlight to fall on Chinese companies and their accounting practices.

Deloitte Touche Tohmatsu resigned as auditors for software firm Longtop earlier this year, after the accountancy firm claimed to have uncovered evidence of falsified financial records.

Questions have also been raised over the indirect way in which some Chinese firms obtained their US stock market listings.

Normally, a firm conducts a formal "initial public offering" on a stock exchange - something that is heavily regulated in the US and requires the detailed disclosure of a firm's finances to prospective investors.

However, many Chinese firms followed another route to market known as a "reverse merger".

This method involves the Chinese company being bought up by a smaller US firm that was already listed on a stock exchange, such as the Nasdaq, thereby minimising the company's disclosure requirement.

"Not having proper accounting and reliable audit review for publicly traded companies with operations in China is just not acceptable," said Mr Khuzami.

"We have to find a path to resolution of this issue. It is...a big issue for us."

A former investment banker who now works at the Securities and Exchange Commission, Mr Khuzami has built himself a reputation as someone who is happy to go after some of the biggest names in the financial industry.

He has also filed against Goldman Sachs for misleading investors.

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Blatter expresses Brazil concern

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AppId is over the quota
By Alex Capstick
BBC Sport reporter Brazil won the right to host the 2014 world cup in 2007 The head of Fifa Sepp Blatter has written to the President of Brazil to express concern over the country's preparations for the 2014 World Cup.

It comes amid growing tensions between football's world governing body and the Brazilian Government.

President Dilma Rousseff has been quoted in the Brazilian press as having demanded a "frank conversation" with Blatter to discuss the issues.

Fifa has repeatedly warned the the Brazilian organisers about work delays.

It now seems those concerns, surrounding the building of new stadiums and infrastructure around the tournament, extend to Fifa's legal demands on the host nation, with football's world governing body expecting to take total control of all aspects of the event.

One sticking point is believed to be the issue of ticket prices.

In Brazil students and elderly citizens get a 50 per cent discount for football matches and other forms of entertainment, and the Government wants the policy to be extended to the World Cup in 2014.

Another issue is Fifa's refusal to allow non-rights holders to show matches on television, with the Brazilians wanting local broadcasters to be given some limited access.

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Cairn makes strike in Sri Lanka

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AppId is over the quota
3 October 2011 Last updated at 08:42 GMT The discovery of natural gas is the first in Sri Lanka for decades Edinburgh explorer Cairn Energy has made its first gas strike in Sri Lanka through its Indian subsidiary.

The offshore well was the first to be drilled in the country for 30 years.

Cairn India made the discovery after drilling almost a mile down offshore in the Mannar Basin, Sri Lanka.

Simon Thomson, chief executive, Cairn Energy said: "Cairn is delighted with this frontier exploration discovery, the first well in Cairn India's three well drilling programme in Sri Lanka."

Cairn Energy is in the process of selling off 30% of its 52% stake in Cairn India to the Vedanta Resources and recently won shareholder and Indian government approval for the deal.

The company's focus has moved to Greenland since it announced it was reducing its stake in its Indian unit.

However, it has had a number of disappointments after turning up several dry wells.

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VIDEO: Cargill chief executive on its success

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AppId is over the quota
29 September 2011 Last updated at 08:43 GMT Help

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Dexia shares in new Greece slump

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AppId is over the quota
4 October 2011 Last updated at 09:16 GMT Continue reading the main story Shares in the Franco-Belgian bank Dexia have fallen for the second day running as fears over its exposure to Greece debt continue.

They fell 37% at the open of Tuesday trading after losing 10% on Monday following an alert from the Moody's ratings agency.

Dexia is holding an emergency board meeting amid serious concerns.

The governments of France and Belgium, which are joint shareholders in Dexia, moved to guarantee its debts.

A joint statement from the countries' finance ministers said: "In the framework of Dexia's restructuring, the governments of France and Belgium, in coordination with our central banks, will take all necessary steps to ensure the protection of depositors and creditors."

The two ministers, who are at the wider European finance ministers' meeting in Luxembourg, have been discussing ways to support the bank.

Dexia's shares are worth only just over one euro, so almost any movement will result in a large percentage change.

Market concerns

Greece-linked concerns are also hitting financial markets again after eurozone finance ministers delayed a decision on giving Greece its next instalment of bailout cash.

It came after Greece said it would not meet this year's deficit cutting target.

A meeting set for 13 October, when finance ministers had been expected to sign off the next Greek loan, has now been cancelled, says BBC Europe correspondent Chris Morris.

The UK's FTSE 100 index was down 1.5% at the start of trading. France's Cac was 3.3% lower, while Germany's Dax had lost 3.2%.

Greece announced on Sunday that its 2011 deficit was projected to be 8.5% of gross domestic product, down from 10.5% in 2010, but short of the 7.6% target set by the EU and IMF.

Eurozone banks have been hit by cash outflows since the summer amid fears that Greece, and possibly other governments, may ultimately default on their debts, and even leave the eurozone, leaving their lenders sitting on big losses.

Dexia's exposure to Greek government debt totals 3.4bn euros ($4.5bn; ￡2.9bn). Its total exposure to Greece - including to private-sector Greek borrowers - is 4.8bn euros.

It has already written off 21% of its Greek debts, but market prices now suggest the eventually loss to lenders could be in excess of 50% of the amount owed by Greece.

The bank is already partly-owned by the two governments, after it received a 6bn euros joint bailout at the height of the financial crisis in 2008.

There were reports last week that the bank could be split up, and speculation of a possible nationalisation of the bank.

Another option under consideration is the sale of Credit Local, a unit of the bank responsible for lending to French local governments.

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