Open University To Go Global With Online Courses

The Open University (OU) has launched a campaign to take distance learning global - as it attempts to catch up with online course offered by US colleges.

The OU has teamed up with 10 British universities in a venture called FutureLearn.

The plan is to give free virtual lectures that are supplemented by digital learning tools to help promote UK institutions.

OU vice-chancellor Martin Bean told Sky News: "You won't be able to get a degree through FutureLearn but you will be able to get free access to some of the best higher education content on the planet.

"In a world of higher fees where people are taking on more of that responsibility for themselves I think they're going to demand better teaching ... and I'm sure it will help these universities really develop new, innovative and experimental teaching practices."

The decision to go global comes after leading US colleges, including Harvard, MIT, Texas and Georgetown, launched various learning partnerships.

One partnership involving Stanford already has two million users around the world.

Professor Bean admitted: "There's no doubt the Americans have got a little out in front of us on this one."

But he insisted the move would benefit Britain's universities.  

"It strengthens brand and competitiveness, it allows them to experiment and develop new teaching strategies for their students on campus and online," he said.

"And it also creates some revenue opportunities in being able to compete for all of those transnational students that are often in developing parts of the world."

The OU has been running courses since 1971, initially using late night television programmes to supplement course notes.

Supporters see FutureLearn as an important way to put students on a path that may lead to traditional tertiary education - a lucrative sector for colleges.

But there are doubts whether any money can be made from massive open online courses (Moocs), even though one in the US has 160,000 users.

Moocs do not carry degree credits and concerns have been raised about plagiarism and the manpower needed to check the work of tens of thousands of students that may be on a single course.

Money-making concepts have included offering free courses but charging for exams, certificates and tutoring.

14.47 | 0 komentar | Read More

EU Summit: Cameron 'Committed To Saving Euro'

The Prime Minister has made it clear he wants favours in return for signing a deal aimed at increasing economic and monetary union in the European Union.

At the seventh and final EU summit of the year, David Cameron insisted the UK was not in an uncomfortable position, despite refusing to have its banks monitored by a centralised supervisor.

"We did not stand in the way of the eurozone having a banking union ...now there are opportunities for us to seek changes in our (EU) relationship, changes that the British people will be more comfortable with," he said.

"They (the eurozone countries) want to make changes, and we can ask for changes too."

His comments come a day after European finance ministers took a major step towards full banking union by agreeing to create a single supervisor for eurozone banks.

But although the UK will not be subject to the scrutiny - continuing to monitor its own institutions - Mr Cameron insisted that Britain "remains at the heart" of decision making in Europe.

The ECB will oversee all banks in the 17 EU countries that use the euro

"I don't think Britain is in an uncomfortable position at all," he said.

"I think we are in a position where we have opportunities to maximise what we want from our relationship with the European Union.

"The fact is we have a multi-faceted Europe, we have a Europe where countries like Britain are absolutely at the heart of decision making."

Earlier this year, Mr Cameron called for a "new settlement" between the UK and Brussels and on Thursday said his focus was now on getting a "better deal" for Britain.

The banking deal gives the European Central Bank (ECB) oversight for lenders in the 17 EU countries that use the euro - and any other country that wants to opt in.

It also paves the way for Europe's bailout fund to give direct aid to ailing banks - a measure seen as vital to helping the eurozone break free of its debt crisis.

The agreement, which follows months of negotiations, was described by the president of the European Commission, Jose Manuel Barroso, as a "deep and genuine economic and monetary union", which requires "steps towards political union".

14.47 | 0 komentar | Read More

Bayer Seeks Approval For Prostate Cancer Drug

Drug company Bayer has requested approval from US regulators for a new drug to treat prostate cancer.

The German pharmaceutical maker said the product could potentially reap annual sales of over 1bn euros (£810m).

Bayer applied for EU approval for the drug on Wednesday.

The drug, Radium-223 - formerly known as Alpharadin - targets bone metastases caused by prostate cancer which is untreatable through standard hormone therapy.

Calcium properties in the drug attach to the cancerous bone cells which are then targeted and destroyed with alpha rays.

The approach is more precise than traditional radiotherapy, and causes fewer side effects than some other types of treatment.

Last year, Bayer predicted the drug boost to its revenues and labelled the product as "blockbuster".

Cancer Research UK said initial results from a trial of Radium-223, which is administered by injection, this year were "very positive".

There are also trials using the drug for breast cancer that has spread to the bone, the charity added.

In 2009, more than 40,000 UK males were diagnosed with prostate cancer, the most common cancer found in men.

The charity movement Movember has raised awareness of prostate cancer and men's health through the growing of moustaches in November, with fundraising that supports charities.

This year's so-called Mo-Bros included Stoke City footballer, Michael Owen and England rugby's Toby Flood.

14.47 | 0 komentar | Read More

UBS Faces $1bn Fine Over Libor Manipulation

UBS is expected to be hit with a fine of around $1bn to settle Libor manipulation charges.

The total amount - worth around £620m - will be a combined penalty from US and UK regulators, and is expected to be confirmed early next week.

UBS declined to comment on the news.

It comes two days after the Serious Fraud Office made three arrests as part of its investigation into the fixing of the interbank lending rate.

Sky sources suggested that one of the people detained previously worked as a trader at UBS, which has a big presence in the City of London.

Last month, the Financial Services Authority fined the Swiss bank £29.7m for internal failings that allowed a London-based rogue trader to cause the biggest fraud in British history.

Unauthorised trading by Kweku Adoboli resulted in £1.4bn worth of losses for UBS.

To date, Barclays is the only UK bank to have been fined in connection with the rigging of Libor.  

It was fined £290m in June, and its chief executive, Bob Diamond, resigned the following month. 

Libor - or the London Interbank Offered Rate - is the rate used to fix the cost of borrowing on mortgages, loans and derivatives.

14.47 | 0 komentar | Read More

S&P Puts AAA Rating On Negative Outlook

Britain's gold-plated triple AAA status came under pressure today after an influential credit ratings agency put it on negative watch.

Standard & Poor's (S&P) said there was a one in three chance it could lower Britain's rating within the next two years, if economic conditions weaken in the UK.

It said it expected government debt as a percentage of gross domestic product (GDP) to continue to rise in 2015, before declining again, with future employment or growth shocks putting further pressure on government finances.

The agency said: "In our opinion, many of the factors that have restrained growth in recent years will likely continue to do so in the near term."

A Treasury spokesman said the move brought S&P in line with rival agencies Fitch and Moody's, which both revised the UK to a negative outlook earlier this year.

A downgrade by one of the big three credit ratings agencies would drive up the UK's borrowing costs, potentially jeopardising the Government's deficit reduction plans.

The S&P report comes after Chancellor George Osborne said he will not be able to start bringing down national debt as a percentage of gross domestic product (GDP) in 2015/16, in his Autumn Statement.

He said he must extend his fiscal consolidation period by a year to 2017/18 after the independent tax and spending watchdog, the Office for Budget Responsibility (OBR), said it expected GDP to fall this year by 0.1%, compared to previous estimates of 0.8% growth.

Sky's economics editor Ed Conway said: "It brings Standard and Poor's into line with the other ratings agencies, they all now say that although the UK is officially a AAA rated sovereign debt issuer, they've put a negative outlook on it.

"Essentially that means that it's an official warning there's a chance that it could get downgraded within the next 18 months to two years.

"It'll be a concern for the Chancellor given that it has come just after the Autumn Statement.

"Standard and Poor's citing mainly the fact the UK's debt is continuing to rise to a level that it would see as being inconsistent with a AAA rated country.

"It does seem that within the Treasury there's a growing cognisance that it may be difficult to hang onto that AAA rating in the end."

14.47 | 0 komentar | Read More

Queen Asks Bank Bosses About Financial Crisis

The Queen has finally had her question answered on why nobody saw the financial crisis coming during a visit to the Bank of England.

Four years ago, during the height of the global crisis, the Queen famously asked: "Why did nobody notice it?"

While on a tour of the Bank with the Duke of Edinburgh, she was given a thorough explanation of the 2008 downturn by Sujit Kapadia, who is on the bank's Financial Services Committee.

During the discussion, the Queen made her thoughts on the crisis clear, saying that the City regulator, the Financial Services Authority (FSA), "didn't have any teeth" and that there was complacency in the City.

She said to the workers: "People got a bit lax ... perhaps it is difficult to foresee (a financial crisis)."

The Queen also asked what authorities were doing now to prevent another global downturn.

When told by an employee that the men and women in the room were there to prevent another one, the Duke jokingly said: "Is there another one coming?"

Sujit Kapadia explained the crisis to the Queen

In the briefing, Mr Kapadia gave the Queen three reasons behind the crash of 2008 that brought banks around the world to their knees.

He told her that financial crises were like earthquakes and flu pandemics and, because they are rare events, they are difficult to predict.

He also said there was a new paradigm where people thought that markets were efficient and risks could be managed better than before.

"People thought markets were efficient, people thought regulation wasn't necessary," he told the Queen.

"Because the economy was stable there was this growing complacency.

"(Thirdly) people didn't realise just how interconnected the system had become."

Mr Kapadia said the Queen was very interested in what the Bank was trying to do to prevent another crisis.

"(She asked) what initiatives are in place, is the system less interconnected than it was before.

"The strongest thing I got (from the Queen) is what are we trying to do so it doesn't happen again.

It was the Queen's eighth visit to the Bank of England

"She actually agreed that it was very difficult to predict and she did latch on the idea that it is probably a bit like the flu pandemic."

Mr Kapadia said he then explained various reforms that had been put in place to keep economies stable.

The FSA has responded to the Queen's comments.

"We've widely acknowledged that the regulatory approach before the financial crisis in 2008 was flawed and has since been completely changed," a statement said.

"Parliament is now awaiting Royal Assent for the Financial Services Bill, which will determine the powers for the new regulators that will be created next year."

During the visit to the Bank, the Queen and the Duke also toured vaults full of thousands of slabs of gold worth billions of pounds and briefly inspected some of the gold.

The royal couple then signed a million pound note each for the bank's guest book.

The Queen was intrigued when she was shown the very first banknote she had signed for the guest book on November 29, 1937, as an 11-year-old.

The signature was a simple "Elizabeth" written in a neat young girl's script on a thousand pound note in the book.

On signing the note, the Queen said of her signature: "It hasn't improved much you know."

It was the Monarch's eighth visit to the Bank of England. As she walked out of the building towards a large crowd of people waiting outside, she said of her visit: "Very interesting, isn't it?"

14.47 | 0 komentar | Read More

Brussels: Deal On ECB Banking Supervision

European finance ministers have taken a major step towards full banking union by agreeing to create a single supervisor for Eurozone banks.

The deal reached just before dawn in Brussels follows months of negotiations and will be put before European Union leaders later on Thursday.

The political agreement will give the European Central bank oversight for banks in the 17 EU countries that use the Euro and any other country in the union that wants to opt in.

It will give the ECB sweeping powers and pave the way for Europe's bailout fund to give direct aid to ailing banks - a measure seen as vital to helping the Eurozone break free of its debt crisis.

"Piece by piece, brick by brick, the banking union will be built on this first fundamental step today," said EU Commissioner Michel Barnier.

The EU had promised markets to have an outline deal by New Year, and the finance ministers delivered - after yet another all-night emergency session.

Herman van Rompuy's plans aim to prevent another Eurozone debt crisis

"We stick to what we promised," said German Finance Minister Wolfgang Schaeuble.  "Painstakingly, we advance the cause of Europe."

But markets seemed to largely shrug off the deal, perhaps because the broad strokes have been known for some time.

Under the deal, banks with more than €30bn (£23bn) in assets or those that represent 20% of gross domestic product of their national economies will be placed under the direct oversight of the European Central Bank.

The ECB can also decide to supervise any other bank it wants when it gains supervisory powers - which could be in place by 2014.

The deal marks a compromise for France and Germany, who had been at loggerheads on the structure of banking union.

EU leaders believe this first step towards banking union can be put in place without having to change current treaties - but the UK's House of Lords EU Committee has said it does not believe effective banking union can happen without new agreements.

David Cameron has vowed to fight hard for British interests

Other issues are on the agenda at the summit of EU leaders, including how to enforce fiscal discipline in the Euro area and a push for implementation of the so-called "two-pack", which would involve Eurozone governments showing their budgets to EU officials before submitting them to their own parliaments.

So-called "out" countries which have retained their currencies, including the UK, are concerned that any move towards tightening the inner core could distort the single market.

David Cameron and the Swedish PM Fredrik Reinfeldt, want to ensure they retain their voice at the top table on financial matters and that the London-based European Banking Authority is not usurped by the new proposals.

A senior EU official has also indicated that Britain wants to ensure there is not a rush to amend the EU treaties, which is a long and often divisive process.

Any significant power-shift from London to Brussels could automatically trigger a referendum. The UK government knows a vote on Britain's involvement with the EU is perhaps unavoidable, but would rather wait until the next parliament.

The issue of the UK's budget spat with the European Union will not be discussed - that is waiting for another summit in the New Year.

14.47 | 0 komentar | Read More

HMV Warns Of Banking Agreement Breach

HMV has warned that uncertainties facing the business mean it is likely to breach its banking covenant in January.

The high street stalwart - which sells CDs, DVDs, games, music players - said it was in "constructive discussions" with banks about its performance.

Total sales at HMV fell 13.5%, while like-for-like sales were down 10.2% in the six months to October 27.

It reported a loss before tax of £37.3m - an improvement on the £48.1m loss over the same period the year before.

But the the 91 year-old company said its net debt increased to £176.1m from £163.7m.

Its chief executive Trevor Moore admitted that HMV had experienced a difficult first half of the year. 

"However, the business has started to deliver a number of new initiatives which will help to maximise the seasonal sales opportunity and provide a platform for growth in 2013," he said.

"Additionally, as we trade through this period we will continue to develop further initiatives with our suppliers and I will provide updates at the appropriate time." 

More follows...

14.47 | 0 komentar | Read More

McAfee Back In US After Release From Jail

Anti-virus software pioneer John McAfee has arrived in the US after being deported from Guatemala.

The 67-year-old, who is wanted for questioning in Belize over the murder of his neighbour, had spent a week in a cell after arriving in Guatemala illegally.

A short time after the commercial jet carrying Mr McAfee landed in Miami, a posting on his website announced he was at a hotel in the city's upscale South Beach area.

"I have no phone, no money, no contact information," the post says. Earlier, as he prepared to board the plane in Guatemala he told reporters he felt "10 years older".

British-born Mr McAfee, who travelled home in economy class, frequently blogged and spoke to reporters as he spent nearly a month in hiding.

John McAfee taking a taxi to his Miami hotel

Reached by telephone at his hotel, Mr McAfee told an Associated Press reporter that he was unable to talk because he was waiting for a call from his 20-year-old Belizean girlfriend, who did not travel with him.

The former tycoon has been described as a "person of interest" by the Belizean authorities following the killing of Gregory Faull.

Mr McAfee and Mr Faull are understood to have had several arguments over the behaviour of Mr McAfee's dogs.

Mr McAfee acknowledges his pets were unruly, but denies any involvement in the fatal shooting of Mr Faull.

He has previously told Sky News he went on the run for his own "safety" because the authorities wanted to silence him.

After three weeks in hiding, he crossed into Guatemala with his girlfriend Samantha Vanegas to evade the Belizean authorities. He was arrested on December 5 for illegal entry.

Samantha Vanegas remained in Guatemala

Mr McAfee sold his stake in the anti-virus software company that is named after him and moved to Ambergris Caye in Belize three years ago.

He told The New York Times in 2009 he had lost all but $4m (£2.5m) of his $100m (£62.4m) fortune in the US financial crisis.

However, a story on the Gizmodo website quoted him as describing that claim as "not very accurate at all".

US officials have said there is no active arrest warrant for him in America.

14.47 | 0 komentar | Read More

Libor Scandal: UK Police Make Three Arrests

The Serious Fraud Office (SFO) has made three arrests as part of its investigation into the manipulation of the interbank lending rate, Libor.

The major banks declined to comment on the development but Sky sources have suggested that one of the people detained used to work as a trader at the Swiss bank UBS, which has a big presence in the City.

The SFO, with the assistance of the City of London Police, executed search warrants at three residential premises - one in Surrey and two in Essex.

It said in a statement: "Three men, aged 33, 41 and 47, have been arrested and taken to a London police station for interview in connection with the investigation into the manipulation of Libor."

It added: "The men are all British nationals currently living in the United Kingdom."

The SFO's criminal inquiry began in July when it decided existing legislation gave it the scope to bring potential prosecutions.

While the identities of those arrested and their employers are not known at this stage, it is known that the SFO's inquiry has been wide-ranging and not limited to Barclays - the only UK bank so far to have been fined in connection with the scandal.

Bob Diamond quit Barclays after its £290m fine came to light

The £290m penalty inflicted on Barclays preceded the departure of its chief executive Bob Diamond and forced the British Bankers' Association to signal it would abandon its responsibility for oversight of Libor amid a clamour among politicians for reform.

Libor, which stands for London interbank offered rate, affects more than £350trn in global transactions and the rates created through the submissions bear a heavy influence in the calculation of a host of financial products including mortgages.

The City regulator, the Financial Services Authority (FSA), has been working closely with the SFO in its investigation.

A review of Libor by the FSA's boss Martin Wheatley has suggested a new body be created to oversee it with the rates set being based more on actual trades rather than just banks' own estimates.

Around 16 financial institutions have been investigated worldwide over alleged Libor rigging - including a total of three based in Britain.

Taxpayer-backed Royal Bank of Scotland has previously said it hopes to settle any claims over Libor manipulation soon and warned that potential penalties could be significant.

14.47 | 0 komentar | Read More

Virgin Atlantic Takes On BA With Delta Deal

Singapore Airlines has sold its 49% stake in Virgin Atlantic to rival Delta, in a move that will bolster Virgin's reach in the United States and intensify its rivalry with British Airways.

The deal was announced just 24 hours after a verbal spat between the chief executive of BA's parent firm and Virgin founder Sir Richard Branson over Virgin's future.

In their statement, Delta and Virgin said their joint venture would enhance competition between the UK and North America, offering greater benefits for customers travelling on those routes.

As part of the agreement Delta, which is the largest carrier in North America, will invest $360m (£224m) in Virgin Atlantic.

Virgin Group and Sir Richard will retain a majority 51% stake and Virgin Atlantic Airways will retain its brand and operating certificate.

Between them, they will jointly operate up to 31 round-trip flights between the US and UK each day.

Delta is taking a 49% stake in Virgin Atlantic

Steve Ridgway, Virgin Atlantic Chief Executive, said: "Consumers will reap the rewards of this partnership between two great airline brands on services from the UK to the USA, Canada and Mexico through a shared ethos in the highest standards of customer service.

"This unique joint venture will deliver much more effective competition at Heathrow.

"Both airlines are confident that the Department of Transportation will be as convinced as we are of the extensive consumer benefits arising from this joint venture, with expedited approval being granted by the end of 2013.

"The transatlantic market is Virgin Atlantic's heartland - it's where we started. By aligning with Delta we can continue to grow our North American network and offer greatly enhanced connectivity across the USA."

Sir Richard Branson and Willie Walsh are at each other's throats

Sir Richard, who is Virgin Atlantic's President, commented: "This is an exciting day in Virgin Atlantic history. It signals the start of a new era of expansion, financial growth and many opportunities for our customers and our business.

"I truly look forward to the possibilities our partnership with Delta will offer. We have always been known for our innovation and service and have punched above our weight for 28 years. That is why our customers love us so much.

"We will retain that independent spirit but move forward in a strengthened partnership with Delta."

News of the deal followed the latest spat between BA and Virgin. Sir Richard offered to pay staff at BA £1m if the Virgin brand disappeared within five years as the boss of BA's parent firm, Willie Walsh, had suggested would be the case if Delta sided with Virgin.

Mr Walsh is reported to have responded that he did not have £1m as he was not a billionaire banker (referring to Virgin Money) but would settle for a 'knee in the groin' instead.

14.47 | 0 komentar | Read More

Vince Cable Unveils SME Lending Boost

By Mark Kleinman, City Editor

A peer-to-peer lender backed by Lord Rothschild will be unveiled as one of the major beneficiaries of a Government scheme to stimulate small business lending.

Zopa, a company which promotes direct lending over the internet, will be awarded £10m in public funding to provide loans to small companies.

The award will form part of a £110m funding package unveiled by Vince Cable, the Business Secretary, as he attempts to revive a crucial component of Britain's stuttering economy.

The small business tranche of the Business Finance Partnership (BFP) scheme is designed to provide greater access to credit at a time when many SMEs are struggling to do so.

Ministers had hoped that George Osborne, the Chancellor, would unveil the details of the BFP in last week's Autumn Statement, but they were delayed by demands from Whitehall officials for additional legal due diligence.

Wednesday's announcement by Vince Cable's Department of Business, Innovation and Skills will name three other private sector companies that will be granted public money to stimulate small business lending.

Under the programme, the Government will provide £55m, with match-funding from the private sector expected to deliver at least the same sum, making at least £110m available to lend to small businesses.

Insiders said that the other successful bidders being named are: Funding Circle, a peer-to-peer lender which will receive £20m; Boost, a new market entrant, which will also receive £20m to set up a fund that will make loans of between £1m and £8m; and Credit Asset Management Limited, a subsidiary of City of London Group PLC, which will receive £5m to provide asset finance and professions loans.

Mr Cable is expected to say that the new awards, while modest in scale, will help to diversify choice for SMEs.

However, the £110m project is tiny in the context of Britain's SME financing requirements.

A new British Business Bank, which is being seeded with £1bn of Government funding, has yet to get off the ground.

14.47 | 0 komentar | Read More

E.ON Is Last Of 'Big Six' To Raise Energy Bills

The last of the major energy firms to confirm its winter price rises, E.ON, has said its bills will be going up from January 18.

The company is writing to customers to inform them of their plans, which will see the average dual fuel bill rise by 8.7%.

It blamed the increase on rising wholesale prices for energy and other factors such as rising network costs.

The announcement was seized upon by price comparison experts who claimed the increase would take the average UK dual fuel bill to a new record high.

E.ON said the move would mean the average electricity-only price rising by 7.7% with average gas-only prices going up by 9.4%.

uSwitch says UK average energy bills have reached a new record high

But around one in six of its 4.8 million customers would endure no increase at all, the company said, because they were on either capped or fixed products.

Chief executive Tony Cocker said: "We have held back from increasing our prices for as long as we possibly could and at the same time have worked hard to reduce our own costs as a business so that our customers can get the best price possible.

"However, some 16 months after our last price increase, and almost a year since we actually cut our electricity prices, we have had to make the difficult decision to increase our prices."

He explained: "In the next few days every customer affected by this price change will receive a letter from us explaining the detail behind this announcement.

"Wherever we can, we will include the likely impact on the customer's own bill. However, as well as the individual impact, the broader question is not what we are doing but why we are doing it.

"We have worked hard to reduce our own running costs which include tasks such as reading and changing meters, answering queries and managing our customers' accounts."

Mr Cocker also moved to defend E.ON from any suggestion that it was ripping off customers through price rises.

He said: "We also believe our profit levels are fair and will continue to be so.

"Last year our domestic profit margin was less than 2% and we will make public the amount we make this year when we publish our 2012 results. 

The company had pledged not to raise its prices during 2012 and was accused today by the founder of MoneySavingExpert.com, Martin Lewis, of being "disingenuous".

Price comparison website uSwitch said the move would take E.ON's average dual fuel bill from £1,260 a year to £1,370 and would make the company the most expensive supplier for standard cash and cheque customers.

The decision also meant, uSwitch said, that the average household energy bill had reached a new all-time high of £1,352 a year – a 23% increase since January 2011.

14.47 | 0 komentar | Read More

HSBC To Pay $1.9bn In Money Laundering Case

Record Fine: HSBC's Statement

Updated: 7:28am UK, Tuesday 11 December 2012

HSBC released the following statement after confirming it will pay $1.9bn (£1.2bn) to the US Department of Justice over money-laundering.

11 December 2012

HSBC has reached agreement with United States authorities in relation to investigations regarding inadequate compliance with anti-money laundering and sanctions laws.

This includes a Deferred Prosecution Agreement (DPA) with the US Department of Justice. HSBC has also reached agreement to achieve a global resolution with all other US government agencies that have investigated HSBC's past conduct related to these issues1 and anticipates finalising an undertaking with the United Kingdom Financial Services Authority shortly.

Under these agreements, HSBC will make payments totaling $1.921bn, continue to cooperate fully with regulatory and law enforcement authorities, and take further action to strengthen its compliance policies and procedures.

Stuart Gulliver, Group Chief Executive, said: "We accept responsibility for our past mistakes. We have said we are profoundly sorry for them, and we do so again. The HSBC of today is a fundamentally different organisation from the one that made those mistakes. Over the last two years, under new senior leadership, we have been taking concrete steps to put right what went wrong and to participate actively with government authorities in bringing to light and addressing these matters.

"While we welcome the clarity that these agreements bring, ensuring the highest standards wherever we do business is an ongoing process. We are committed to protecting the integrity of the global financial system. To this end we will continue to work closely with governments and regulators around the world."

In the past several years, the Board of HSBC Holdings plc has taken decisive action to direct management to fix past shortcomings as they have come to light. Since 2011, with new senior leadership teams in place at both HSBC Group and HSBC North America, HSBC has taken extensive and concerted steps to put in place the highest standards for the future.

The Department of Justice has recognised these efforts in the DPA: "Management has made significant strides in improving 'tone from the top' and ensuring that a culture of compliance permeates the institution. The efforts of management have dramatically improved HSBC Bank USA's and HSBC Group's Bank Secrecy Act / Anti-Money Laundering and Office of Foreign Assets Control compliance programs."

As noted in the DPA, HSBC Bank USA already has, over the past several years, undertaken the following voluntary remedial measures:

• increased its spending on anti-money laundering (AML) approximately nine-fold between 2009 and 2011;
• increased its AML staffing nearly ten-fold between 2010 and 2012;
• revamped its Know Your Customer programme, including treating non-US HSBC Group Affiliates as third parties subject to the same due diligence as all other customers;
• exited 109 correspondent relationships for risk reasons;
• clawed back bonuses for a number of senior officers, and
• spent over $290m on remedial measures.

HSBC Group has also undertaken a comprehensive overhaul of its structure, controls, and procedures. A number of these improvements is included in the DPA. Among other measures, HSBC Group has:

• simplified its control structure, allowing the Group to manage risks worldwide more effectively;
• elevated the role of Group Compliance and given it direct oversight over every compliance officer globally, so that both accountability and escalation now flow directly to and from HSBC Group Compliance;
• created the new role of Head of Group Financial Crime Compliance and Group Money Laundering Reporting Officer, who will help to establish a Global Financial Intelligence Unit;
• made other new senior hires with extensive experience handling relevant international legal and regulatory issues, including a new Chief Legal Officer and a new Global General Counsel for Litigation and Regulatory Affairs;
• adopted a set of guidelines limiting business in those countries that pose a high financial crime risk;
• issued a new global sanctions policy using a more extensive and consistent set of lists to screen all cross-border payments;
• commenced a review of all Know Your Customer files across the entire Group - the first phase of this remediation will cost an estimated $700m over five years, and
• undertaken to implement single global standards shaped by the highest or most effective anti-money laundering standards available in any location where the HSBC Group operates.

Over the five-year term of the agreement with the Department of Justice, an independent monitor will evaluate HSBC's progress in fully implementing these and other measures it recommends, and will produce regular assessments of the effectiveness of HSBC's compliance function.

The agreement notes that HSBC Bank USA and HSBC Group have "provided valuable assistance to law enforcement." HSBC conducted multiple extensive internal investigations, voluntarily made employees available for interviews, and collected, analysed and organised voluminous evidence and information.

HSBC is firmly committed to putting in place robust standards that will help promote the integrity of the global financial system. 

14.47 | 0 komentar | Read More

Starbuck Effect? Costa Coffee Sales Shoot Up

Sales at Costa Coffee have shot up by over 25%, the chain's owner Whitbread has reported.

Like-for-like sales at its coffee shops increased by 7.1%, while total sales were up by 25.5% in the three months to November 29.

The UK's largest hotel and restaurant group, which also owns the Premier Inn hotels brand, said total sales across the group were up 14.4%.

More follows...

14.47 | 0 komentar | Read More

Tax Row 'Helping John Lewis Online Sales'

Tax Row: Convenience Still Priority

Updated: 7:27pm UK, Sunday 09 December 2012

By Tadhg Enright, Business reporter

Recession? What recession?

So has been the mantra at John Lewis throughout the financial crisis during which sales growth consistently outperformed its high street rivals.

The recession is over but consumers are still expected to buy less, not more, this Christmas.

So could it be a bit of a stretch to suggest that stellar growth in John Lewis sales this past week has anything to do with Amazon's recent exposure as an avoider of UK corporation tax?

Speaking to Sky News, the retailer's boss Andy Street acknowledged "I can't prove it" and that it could all just be a coincidence.

While sales rose 15% over the past week compared to the same time last year, he pointed in particular to even higher (but undisclosed) growth in online sales.

But with internet shopping becoming more normal with each passing year, most online retailers are enjoying double digit growth.

And John Lewis has not been left wanting with its approach to so called "clicks and mortar" retailing.  It has been a trend leader rather than a follower so will naturally enjoy better growth than others.

Also bear in mind that John Lewis and Amazon are very different retailers and the overlap between their customer bases is thin.

Ask any business journalist and they'll tell you that John Lewis will take any chance to get a bit of free, positive publicity. Amazon has been more of a shrinking violet during the controversy over its taxes.

Business reporters who have been canvassing shoppers outside branches of Starbucks will also know that a majority of the people they speak to are oblivious to the scandal over its tax affairs.

Of those who know all about it, only a fraction are likely to avoid the tax-avoiders.

But Starbucks' u-turn shows just how serious some are taking the tax debate.

It has decided to pay £20m in corporation tax over the next two years, which, it maintains, it does not have to pay.

That wasn't enough though to prevent protesters occupying some of its cafes this weekend.

But it will be enough to convince the more nonchalant among us that it's ok to get your latte at Starbucks again.

In fact, consumer experts will also tell you that when a company puts right what once was wrong it can often enjoy a boost rather than a simple bounce-back in sales.

With 15 days to Christmas, the rush is on and many consumers simply don't have the time, energy or patience to change their habits.

Amid the chaos, shoppers are more likely than ever to put convenience before conscience.

14.47 | 0 komentar | Read More

HMS Audacious: New Super Submarine For Navy

By Alistair Bunkall, Defence Correspondent

A £1.2bn contract has been agreed to build a new submarine for the Royal Navy.

The deal, awarded by the Ministry of Defence to BAE Systems, will safeguard 3,000 jobs at the company's Barrow shipyard in Cumbria.

The submarine, to be called HMS Audacious, will be the fourth of seven Astute Class boats being built for the Navy. It will join Astute, Ambush and Artful in the growing fleet.

The first two submarines, Astute and Ambush, are currently undergoing sea trials to test their systems ahead of full service. These trials assess their ability to dive to deep depths and fire missiles.

A further £1.5bn has also been committed to three submarines yet to be built, which will complete the fleet. It will allow vital preliminary work to start.

Commenting on the announcement, Rear Admiral Simon Lister, the MoD's director of submarines, said: "The Astute Class will become the jewel in the crown of the Royal Navy's Submarine Service and boasts much greater firepower and more advanced sonar and communications than ever before.

Audacious is the fourth of seven Astute submarines being built for the Navy

"These submarines represent a huge leap forward in technology and will operate all over the world with the Royal Navy.

"These boats provide the optimum capability a submarine can offer in land strike, strategic intelligence gathering, anti-submarine and surface ship warfare, and protection of the strategic deterrent."

The Astute class submarines are powered by nuclear energy which means they never need to refuel. In theory they can stay underwater forever, only re-surfacing to take on supplies for the crew.

They are fitted with the most advanced sonar systems available and are quieter than older submarines. The sonar system has the processing power of 2,000 laptops and can spot and track ships 3,000 miles away.

At around 320ft (97 metres) from bow to stern they are about 50% bigger than the Royal Navy's current Trafalgar Class submarines. They carry on board a mix of Spearfish torpedoes and Tomahawk land-attack missiles.

The submarines will also make their own oxygen from seawater. 

The money is coming from a pre-allocated budget. In the Autumn Statement the Chancellor said the MoD could have more time to spend about £1bn that it has yet to use from this year's budget.

It was thought that the Treasury might request the money be returned, but George Osborne has allowed the department a period of flexibility.

14.47 | 0 komentar | Read More

Twitter Fined Over UK Business Accounts Delay

By Pete Norman, Sky News Online

Social media giant Twitter has been fined after failing to file its UK corporate accounts, Sky News has learned.

The company was due to lodge its annual accounts no later than September but has still not done so, according to Companies House.

As a result Twitter UK Ltd and its secondary company, TweetDeck Ltd, have been hit with automatic penalty charges by the Cardiff-based authority.

The penalties are set to climb if the companies continue to delay filing the accounts.

The returns are used as a basis for tax filings with HM Revenue and Customs (HMRC). There is no suggestion the companies have avoided any tax liability.

A spokesman for Companies House told Sky News: "They are both currently in default on the submission of accounts to us on their respective due dates.

The website for Companies House, based in Cardiff

"Companies House records show Twitter's accounts should have been delivered by September 30 but there is no indication this has been done.

"There is no indication at this stage when the accounts will be available but as a matter of routine we will already be in correspondence with the companies to request that they file as soon as possible."

Twitter UK and TweetDeck are wholly-owned subsidiaries of California-based Twitter Inc.

Twitter has yet to reply to Sky News with an explanation for why it has failed to lodge the accounts.

TweetDeck was started by Sheffield-educated computer programmer Iain Dodsworth in 2008 and sold to Twitter last year for an estimated £25m.

Twitter UK has three American directors, Ali Rowghani, Richard Costolo and Alexander Macgillivray, who list their address as a San Francisco office.

Mr Macgillivray is company secretary for both Twitter UK and TweetDeck. He is also general counsel for the parent firm and head of its public policy and trust department.

According to the Institute of Directors, one of the formal duties of a company secretary is to take responsibility for filing annual returns to the registrar in Cardiff.

Iain Macgillivray (r), the US-based company secretary of Twitter UK Ltd

The spokesman for Companies House added: "At this time they will have already attracted a late filing penalty in accordance with the tariff published on our website.

"Failure to provide accounts for the public record can, ultimately result in company strike off, however, we are some way from that at this stage.

"Our objective remains, as always, to get the companies concerned to file their account so that these can be made available for public access, which we hope will be a positive conclusion to our continuing correspondence."

Mr Macgillivray, who also holds Canadian citizenship, became TweetDeck's company secretary after services of the British incumbent - Complete Secretarial Solutions Ltd - were terminated in May, 2011.

TweetDeck's founder, Mr Dodsworth, had his role as a director terminated in July, 2011.

The social media giant's British operation was originally named Twitter Information Network Ltd. It was incorporated on June 1, last year but given a name change to Twitter UK four months later.

The revelation about Twitter's filing status with Companies House comes amid increasing public furore over the tax arrangements of other US multinationals with HMRC.

MPs investigating corporate tax structures of multinational firms recently slammed Starbucks, Amazon and Google.

Last week Starbucks said it would give some £20m over two years to HMRC, even though it was not required to by law.

Google, Amazon and Starbucks have all come under fire

The move was slammed as a "gift" by critics and HMRC said: "Corporation tax is not a voluntary tax and Parliament sets out the rules and rates for businesses to follow.

"The public expects businesses to pay their fair share and HMRC will challenge, through the courts if necessary, any structures or tax payments that do not comply with the UK tax law."

Starbucks' decision followed a public outcry over its accounting procedures, whereby it paid just £8.6m in UK corporation tax despite receiving billions in revenue from more than 750 stores.

In an interview with Sky's Jeff Randall, Starbucks CEO Kris Engskov said the US coffee giant had not been profitable in the UK since it brought its brand to Britain 14 years ago.

But he admitted their 2011 US report and accounts may be wrong when they referred to the fact that the UK was making a "significant portion of the net revenue and earnings of our international operations".

It was revealed Google paid £6m in UK tax in 2011 on sales of £395m, while Amazon paid no corporation tax in the same period, despite sales of £3.3bn.

14.47 | 0 komentar | Read More

FSA Warns Banks On Bonus Culture

The City regulator has warned Britain's biggest banks that they need to demonstrate "a change in culture" when they unveil their bonus pots for 2012 in the new year, paving the way for one of the steepest reductions in payouts on record.

I have learnt that Andrew Bailey, head of the Financial Services Authority's (FSA) supervisory arm, has told the chairs of the major UK banks' remuneration committees that they should take into account the industry's reputation when they decide on bonuses.

He made the demand at a recent meeting with the chairs of the UK banks' remuneration committees at which they were told that overall levels of pay should show a sharp decrease for 2012.

They were also informed that the bonus cuts should go beyond the required evidence of banks clawing back pay awarded to executives and staff involved in mis-selling.

Among the attendees at the meeting, which took place several weeks ago, were Penny Hughes, chair of the remuneration committee at Royal Bank of Scotland; John Thornton, her equivalent at HSBC; Sir John Sunderland at Barclays; and Tony Watson from Lloyds Banking Group.

Major lenders have already begun consulting with shareholders on the shape of their pay pots for 2012, with Barclays' new management in particular signalling that the proportion of revenues paid to its investment bankers will fall sharply.

The warning from Mr Bailey about clawbacks will ultimately result in hundreds of millions of pounds in previously-awarded bonus payments being reclaimed from relevant staff, according to people close to the regulator.

The two taxpayer-backed lenders, Lloyds Banking Group and RBS, have imposed a ceiling on cash payouts of £2,000 for each of the last three bonus rounds, a restriction that is almost certain to be repeated in 2013.

In October, Mr Bailey wrote to the chief executives of major banks with operations in London to inform them that bonuses for 2012 must reflect the mis-selling and market manipulation scandals that have rocked the sector this year.

The FSA's intervention will be welcomed by the major investors in banks, who have argued since the financial crisis that the decline in pay levels has failed to keep pace with the diminishing returns distributed to shareholders.

HSBC is the only one of the major lenders with which City institutions have declared themselves satisfied with the relative distributions between investors and employees. Banks are also under pressure from regulator to retain more capital to strengthen their balance sheets.

The meeting has become a traditional fixture on the FSA's calendar ahead of the annual banking industry pay round.

The FSA declined to comment on specific meetings with banks but said it held discussions with them on a range of issues.

14.47 | 0 komentar | Read More

Bank Staff 'Under Pressure To Sell', Which? Says

Staff at Britain's largest banks remain under pressure to sell products to customers, often regardless of whether they are appropriate, an investigation claims.

Two thirds of bank staff with a sales role said there is now "more pressure than ever" to meet their targets, according to a Which? survey of front line bank employees.

Almost half of the 500 people interviewed said they knew colleagues who had mis-sold products to meet their targets, and 40% reported that they are encouraged to sell even when it is not appropriate.

Which? interviewed branch and call-centre staff from HSBC, Royal Bank of Scotland, Lloyds Banking Group, Barclays and Santander, and found that even when incentives are removed, the practice prevails.

Although over 40% said incentives for sales have decreased, more than 80% said the pressure to meet sales targets has stayed the same or increased.

The research comes despite a string of mis-selling scandals over recent years, knocking customers' trust in UK banks.

The PPI mis-selling scandal has cost the big banks £10bn to date

The most high-profile - the mis-selling of payment protection insurance - has already cost the big banks more than £10bn in compensation claims, with that bill expected to rise.

Of the staff surveyed, over a third said they are not comfortable with the pressure they are under to sell products, and two thirds added that they are sometimes or always ordered to sell more.

Which? chief executive Peter Vicary-Smith called for "big change" across the banking industry, with customers - not sales - put first.

"Our survey reveals the stark realities of the sales culture that still exists at the heart of the banking industry," he said.

"Senior bankers say the culture is changing but this shows it just isn't filtering through to staff on the front line who remain under real pressure to put sales before service, even after incentives are taken away.

"We're calling on the banks to be much more transparent about their sales targets and incentives.

"We also want to see bankers meet professional standards and comply with a fully independent code of conduct."

A spokesman for the British Bankers' Association (BBA) said that any incentives for front line staff are now based on clear criteria related to customer service.

"Selling people products they do not need is not putting the customer's interests first and therefore is ultimately bad for the bank," he said.

"The banks will be looking at the findings of this small survey - along with their own internal research - to understand why any staff might feel otherwise."

Which? said it will provide a collection of evidence on the banking industry to the Parliamentary Commission on Banking Standards, the Government and opposition MPs, and the Financial Standards Authority (FSA).

Barclays and the Co-operative bank have already announced plans to refocus their incentives schemes on customer service.

A spokeswoman for Barclays said: "From this week all Barclays UK front line staff are rewarded solely on customer service.

"This follows our announcement in October which was welcomed by Which?"

An HSBC statement said the bank encourages its employees to act "with integrity in the best interest of our customers".

"No one in the UK retail bank, not just customer facing staff, can earn a bonus without meeting the bank's values and behaviours criteria," it said.

And a spokeswoman for RBS said that its staff are rewarded on the basis of customer service and the performance of their branch overall.

"This is part of our move to make sure that customer service is the top priority for all of our staff," she added.

14.47 | 0 komentar | Read More

Starbucks Tax Row: Protestors Occupy Stores

Anti tax avoidance activists have staged protests at more than 50 Starbucks stores to complain about the coffee chain's tax arrangements.

UK Uncut said it was the most widespread day of action it had ever held, showing the depth of anger at the scale of tax avoidance by some large companies.

Pictures uploaded to its Facebook page showed campaigners holding banners and posters while others staged sit-in protests.

The demonstrations went ahead in cities including London, Glasgow, Belfast, Liverpool, Sheffield and Portsmouth even though the US giant announced changes to its tax payments.

Starbucks said it expects to pay around £10m in UK corporation tax for each of the next two years, following the revelation that it paid just £8.6m in 14 years of trading in Britain and nothing in the last three years.

Starbucks' Kris Engskov wrote an open letter to customers on Thursday

UK Uncut said it had "transformed" Starbucks stores into refuges, creches and homeless shelters to highlight the tax issues as well as the effect of Government cuts on women.

There was a police presence at many of the protests, with some of the demonstrators told to report to a police station within seven days. There were two arrests in London.

A UK Uncut spokesman said: "It has been an overwhelming success, sending a clear message to the Government as well as to huge corporations."

One store in Vigo Street, central London, was occupied by protesters at noon and then temporarily closed.

Dozens of activists chanted and waved placards and banners outside, shutting off the street to traffic under the gaze of the police.

The store was transformed into a domestic violence refuge as the protest sought to highlight the "disproportionate" effect that the coalition's cuts to the public sector are having on women.

Lisa Stewart, a 30-year-old UK Uncut activist, said: "Women are bearing the brunt of these cuts, and if they (the Government) made tax-dodgers like Starbucks pay that would bring in £25bn a year.

"Think of all the spending cuts that we could cover with that."

Ms Stewart said the reaction from customers inside the store had been positive, adding: "There is lots of anger out there and people realise they are being lied to."

In an open letter to customers on Thursday, Kris Engskov, managing director of Starbucks UK, said the company had begun "a process of enhancing trust with customers and the communities that we have been honoured to serve for the past 14 years".

He said the company injects nearly £300m annually into the UK economy, and will train more than 1,000 apprentices over the next two years.

14.47 | 0 komentar | Read More