Online Gambling Firms To Pay 15% Tax In UK

Online betting companies based in offshore havens to sidestep Britain's gambling taxes will be hit with a new levy that may raise £300m for the taxpayer.

The Government is to impose a 15% tax rate on operators in the £2bn remote gambling market.

The rules state that from December 2014 gambling must be taxed according to where customers are based rather than where the online operator is registered.

UK-based firms are already taxed

"It is unacceptable that gambling companies can avoid UK taxes by moving offshore, and the Government is taking decisive action to ensure this can no longer happen," Economic Secretary to the Treasury Sajid Javid said.

"These reforms will ensure that remote gambling operators who have UK customers make a fair contribution to the public finances."

The shift will affect some of the industry's largest players.

Ladbrokes, Bwin.party, William Hill and Betfair all have online operations based in Gibraltar, where taxes are levied at 1% and capped at £425,000.

The proposed 15% rate, which the Government said will be confirmed in its Budget statement next March, would mean that offshore operators are taxed at the same level as domestic internet betting companies.

Officials estimates that the new rules will bring in £300m a year in additional tax revenue.

Plans to bring offshore gaming companies under the UK tax system were outlined in the 2012 Budget, but the industry had been waiting for the detail - most crucially the rate at which they will be taxed.

William Hill, which has the largest share of the UK's remote gambling market, has previously suggested that it could challenge the changes on the grounds that they breach European Union competition law.

The Gambling Commission said that the estimated worldwide remote gross gambling yield (GGY) - excluding telephone betting - was £21.08bn during 2012, up 5% on the previous year.

It said the UK consumer GGY generated with operators regulated overseas, which includes telephone betting, is estimated to have grown approximately 1% between 2011 and 2012.

The commission said remote GGY for operators licensed in Great Britain accounts for approximately 4% of the global total.

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City Investors Bank On £55m RBS Branch Payout

By Mark Kleinman, City Editor

A consortium of City investors vying to buy 315 branches from Royal Bank of Scotland is in line to receive £55m in annual interest payments from the state-backed lender - even before they complete a deal.

Under the proposal W&G Investments, a vehicle set up by the former Tesco finance director Andy Higginson, would be paid a 5% "coupon" on a £1.1bn down-payment to acquire the branch network.

The payments would be made by RBS during the period between it agreeing to sell the branches to W&G and the completion of a deal, which analysts expect could take as long as two years.

If it takes longer, RBS could have to pay an even bigger sum to the consortium.

The details are disclosed in a document published on Friday by W&G, which will formally list on London's junior AIM stock market next week.

It marks the latest stage of RBS's protracted efforts to offload the business, codenamed Project Rainbow, under the orders of the European Commission in return for the banks's £45bn taxpayer bailout in 2008.

Santander pulled out of a deal to buy the RBS branches

RBS wants to revive the venerable banking brand-name Williams & Glyn to entice bidders and has granted W&G Investments a licence to use the name during the auction.

The admission documents include, however, dozens of risk factors that could inhibit a takeover of the branches by W&G, which is backed by leading investors such as Lansdowne Partners, Schroders, Talisman and Toscafund.

The potential barriers to a successful acquisition of Rainbow include the greater scrutiny of bank bosses by financial regulators and the drawn-out nature of a deal.

W&G said: "During the period between the Signing Date and the Completion Date, which is anticipated by RBSG to be approximately two years, it is expected that the Company [W&G] will have rights to monitor the performance of the Rainbow Assets.

"However... the Company may not have the ability or right to intervene and the value of the Rainbow Assets may be materially adversely impacted."

It also pointed to the ongoing review of Britain's small business banking market by the Office of Fair Trading, which it said could jeopardise investors' willingness to back a deal.

And it said adverse customer reaction to a takeover could put at risk the bank's desired funding model.

It said: "The currently anticipated funding model for Rainbow is dependent on deposits, rather than wholesale funding.

"There is a risk that there may be adverse public reaction to the Company post acquisition of Rainbow which could lead to depositors withdrawing their money.

"Certain customers and depositors may seek to change banks if they perceive the Separation or the acquisition of Rainbow by the Company might put their money at risk.

"This could result in a funding gap that would need to be addressed by accessing funding in the wholesale markets (provided that such funding were to be available) which is likely to be a more expensive form of funding for the Company than deposit-based funding."

W&G also warns in the documents that the recommendations of the Vickers Commission on banking reform could scupper a deal because of moves to force banks to make themselves safer by ring-fencing retail activities from investment banking operations.

Although the RBS network falls within the permissible limit of £25bn of deposits to avoid having to be treated as a ring-fenced bank, the W&G directors point to uncertainty over the legislation as another risk.

It said: "The draft secondary legislation to the Financial Services (Banking Reform) Bill provides that the requirement to ring-fence will not apply to UK banks holding less than £25,000,000,000 in 'core deposits'. At this stage it is unclear what the finalised threshold will be and therefore whether Rainbow would be a ring-fenced bank."

An earlier deal to sell the network, which comprises all RBS-branded branches in England and NatWest branches in Scotland, fell through last year when Santander UK pulled out citing concerns about IT systems.

Santander had initially agreed to pay £1.65bn for the branches, which include £19bn of assets, 250,000 small business customers and approximately 5,000 staff.

The rival bidders remaining in the RBS auction include a private equity bid from Corsair Capital and Centerbridge that is backed by the Church of England's pension fund, and one led by Blackstone, the US private equity group.

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Mortgages 'Most Affordable For 14 Years'

By Nick Martin, News Correspondent

Mortgages are more affordable now than at any time in the past 14 years, according to the latest figures.

Monthly payments now account for 27% of a new borrower's income in the second quarter of 2013, well below the average for the past 30 years.

Lower house prices and reduced mortgage interest rates have been the main drivers behind the significant improvement in affordability, according to the Halifax.

Halifax mortgage director Craig McKinlay said: "Substantial mortgage rate reductions and lower house prices have led to a significant improvement in mortgage affordability since the peak of the housing market six years' ago.

"The Funding for Lending Scheme has helped lenders to cut mortgage rates causing a further modest improvement in affordability over the past year despite the modest rise in house prices nationally."

It is good news for first-time buyers.

James Almond from Bramhall near Stockport has just got on to the properly ladder.

The 38-year-old bar manager said he felt the right deals were available to take the plunge.

He said: "I used a mortgage broker to look at the best deals and in the end it was quite affordable.

"Many of my friends aren't so lucky and are still living with their parents because the deposits required are so large."

But there remains a clear north-south divide when it comes to mortgage affordability, according to the Halifax.

Mortgage payments are at their lowest in Northern Ireland where they are just 17% of incomes compared to 36% in Greater London.

Independent mortgage consultant Richard Ignatowicz said the market can change quickly.

 "We can't just say mortgages are now more affordable than ever. It doesn't mean much in isolation.

"Borrowers need to be cautious about changes on the horizon. Will they still be able to afford a mortgage when the rate reverts to 5%? Tthat's the real question."

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Facebook Tests Tool To Make Mobile Payments

Facebook plans to test a new service aimed at making it easier for users to make purchases on their mobile devices.

The social networking site is exploring ways to allow people to make purchases with just their Facebook login on partnering e-commerce mobile apps.

The service would use payment information that shoppers store on Facebook to automatically complete checkout forms of certain apps.

The app would then handle the payment processing, not Facebook.

Facebook confirmed in a statement that it was working on a "very small test" designed to "make it easier and faster for people to make a purchase in a mobile app by simply pre-populating your payment information".

But the company said there was no timetable for making the service available to its customers.

If rolled out, the new payment system would pit Facebook in direct competition with PayPal, as well as e-commerce firms like Braintree.

News of the test hit PayPay's shares

Spokeswoman Tera Randall said in a statement that Facebook has a "great relationship with PayPal, and this product is simply to test how we can help our app partners provide a more simple commerce experience".

The test, she added, would not involve moving payment processing "away from an app's current payments provider, such as PayPal".

Nonetheless, shares of PayPal's owner, eBay Inc fell on news of the potential competition. The stock closed down $1.05, or 1.9%, at $53.18.

Facebook's stock closed down nine cents at $36.56.

Forrester Research analyst Denee Carrington believes Facebook will face an uphill challenge in offering mobile payments even though the company has been building up its database of users' credit cards.

"Consumers want safe, seamless and convenient mobile payments and there are a growing number of competitors that consumers trust more - such as PayPal, Visa (V.me) and others," he said.

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'Seven-Day Current Account Swaps' To Start

Virtually all banks and building societies have agreed to slash the time needed to transfer current accounts between providers from next month, it has been confirmed.

Customers will be able to move their accounts within seven days, drastically cutting the current 30-day period.

The Payments Council confirmed the launch date of September 16, in a scheme expected to increase competition for providers and better deals for customers.

Some 33 bank and building society brands accounting for almost all current accounts in the marketplace have signed up to the agreement.

The streamlined switching service also includes facilities for all outgoing and incoming payments to be moved over to a customer's new current account, with payments made accidentally to the old account automatically redirected for 13 months after the switch.

Consumers will be refunded interest and charges if anything goes wrong.

Adrian Kamellard, chief executive of the Payments Council, said: "As final preparations are made for launch we look forward to a new era of account switching which will lead to greater choice for customers and wider competition in the marketplace."

The Payments Council confirmed that the new switching guarantee does require that the old current account must be closed as part of the changeover.

Current account providers will display details of the new guarantee in branches and on their websites.

Rachel Springall, spokeswoman for financial information website Moneyfacts, said: "With only one month to go, we have already seen banks launch some incentives to entice new customers."

The extent to which the new rules will spur more people into action is not yet clear, but recent evidence has indicated that consumers have been getting more fed up with their current account providers.

The financial ombudsman recently reported that complaints about current accounts had rocketed by more than a third over the last year, following two years of falls.

Ms Springall said people considering making the jump to another provider should bear overall benefits in mind rather than initial perks.

She said: "Once an institution has you as a current account customer it is usually for the foreseeable future, so they are likely to offer you other products such as cards, loans and mortgages while you have a relationship with them.

"Assessing what you need from a current account on outset is vital."

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Fracking Firm Halts Work Amid Protest Fears

By James Banks, Sky News Reporter

Up to 1,000 extra protesters are expected to descend on the small West Sussex village of Balcombe this weekend, as the protests against a potential fracking site enters its fourth week.

The entrance to the Cuadrilla site has become the frontline of the eco war on the controversial procedure despite the firm insisting that it is simply conducting exploratory mining and it is unlikely that the site will go into full production.

The number of protesters camped by the roadside has been growing over the past three weeks.

Consisting of both local residents and more seasoned environmentalists, they all share the same aim - to prevent fracking.

"I want fracking to stop in the UK. I think it's an enormous mistake," said Sue Taylor, a Balcombe resident.

The protesters have been critical of the tactics employed by Sussex Police, accusing them of being too heavy handed.

Energy company Cuadrilla is carrying out exploratory shale gas drilling

But police have insisted they have helped maintain a peaceful protest and looked after the rights of all of those involved.

"We will continue to facilitate peaceful protest, but newcomers to the site should be aware that if they commit criminal offences then we will collect the evidence and they will be arrested," they said.

The expected arrival of hundreds more protesters from the No Dash For Gas campaign this weekend has led Cuadrilla to halt its exploratory oil drilling work on the advice of the police.

"After taking advice from Sussex Police, Cuadrilla is scaling back operations ahead of this weekend's No Dash For Gas event," said a spokesman for the company.

"During this time, our main concern is the safety of our staff, Balcombe's residents and the protesters following threats of direct action against the exploration site. We will resume full operations as soon as it is safe to do so."

Anti-fracking protests sprang up in the village three weeks ago

The No Dash For Gas activists were due to stage a protest outside the West Burton power station in Nottinghamshire, a site of previous demonstrations. But they have now diverted their members to West Sussex.

A spokesperson said: "From 16- 21 August, we will respond to the call for support from the community in Balcombe opposing fracking. We share their serious concerns about the environmental and social impacts of fossil fuel extraction in their area.

"Balcombe is a test case for the fracking industry and, if success fully pushed through, could lead to an estimated two thirds of the UK being covered by fracking rigs."

With any such protest there are inevitably always cries of NIMBYism (not in my back yard), but for many of those camped outside the entrance to the site it is a far bigger issue.

Many believe that what goes on in Balcombe could set a precedent for the future of fracking in Britain.

"It's about the whole the UK, it's the fracking issue that we're very, very worried about. It shouldn't be done anywhere because the water pollution risks involved are irreversible," said Balcombe resident Nikki Sanger.

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US Airways-American Airlines Merger Challenged

The US Justice Department and a number of state attorneys general have challenged the proposed $11bn (£7bn) merger between US Airways and American Airlines.

The Justice Department says the merger would result in the creation of the world's largest airline and reduce competition for commercial air travel in local markets.

A lawsuit filed in the federal court in Washington seeks to prevent the companies from making the deal in order to preserve head-to-head competition.

In a joint statement, the airlines said they would "mount a vigorous defence" of the planned merger, adding that blocking the deal would "deny customers access to a broader airline network that gives them more choices".

"We believe that the DOJ is wrong in its assessment of our merger," the statement read.

American Airlines filed for bankruptcy protection in 2011

"Integrating the complementary networks of American and US Airways to benefit passengers is the motivation for bringing these airlines together."

"We will mount a vigorous defence and pursue all legal options in order to achieve this merger and deliver the benefits of the new American to our customers and communities as soon as possible."

Shares of both companies plunged on Tuesday, and other airline shares fell sharply as well.

In February, the two airlines disclosed their plans to create a company with 6,700 daily flights and annual revenue of roughly $40bn (£26bn).

But Attorney General Eric Holder said the transaction between US Airways and American would result in "higher airfares, higher fees and fewer choices".

Were the deal to be approved, the four biggest US airlines - American, United, Delta and Southwest - would all be the products of mergers that began in 2008.

Last year, business and leisure airline travellers spent more than $70bn (£45bn) on airfare for travel throughout the United States.

American parent AMR Corp has cut costs and debt since it filed for bankruptcy protection in late 2011.

Pilots from both airlines have agreed on steps that should make it easier to combine their groups under a single labour contract, a big hurdle in many airline mergers.

The attorneys general were from Arizona, Florida, the District of Columbia, Pennsylvania, Tennessee, Texas and Virginia.

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Apple Stock Soars As Icahn Buys 'Large' Stake

Activist investor Carl Icahn has bought a large stake in Apple and says the world's most valuable company should be doing more to revive its stock price.

The often outspoken billionaire, renowned for pouncing on out-of-favour shares, signalled he had Apple in his sights in messages posted on his Twitter account.

The posts announced he had acquired a big but unspecified stake in Apple and that he had just had a "nice conversation" with Apple CEO Tim Cook about his belief that the maker of the iPhone and iPad should be using even more of its $147bn (£95.2bn) cash pile to buy back its own stock as soon as possible.

Just buying a 1% stake in Apple would cost more than $4bn, based on the current price of Apple's stock.

Apple spokesman Steve Dowling described Icahn's discussion with Cook as positive, but declined to elaborate.

Carl Icahn announced his interest in Apple on Twitter

"We appreciate the interest and investment of all our shareholders," Dowling said.

News of Icahn's investment helped Apple's market value rise by about $13bn (£8.4bn).

Apple had already been trying to lift its stock price under a programme it adopted earlier this year under pressure from another activist shareholder, hedge fund manager David Einhorn.

Apple boss Tim Cook began a share buy-back earlier this year

In April, Apple pledged to spend $60bn (£39bn) buying back its stock by the end of 2015 as a way to return some of its cash to shareholders.

About $18bn of that has already been completed.

Icahn thinks Apple should be pouring even more money into its stock because he believes the shares are worth more than most investors currently believe, according to his tweets.

Despite a recent upturn that has re-established Apple as the world's most valuable company, its stock remains 30% below its peak of $705.07 nearly 11 months ago.

The price slump is blamed on the slowdown in growth at Apple as earnings are squeezed by tougher competition in the smartphone and tablet computer markets.

Icahn, whose fortune is estimated by Forbes magazine at $20bn, has a string of high profile investments, including stakes collectively worth billions of dollars in Dell and Netflix, the internet video service.                 

He is currently embroiled in a row with Dell over its future by attempting to block founder Michael Dell's $25bn effort to take the computer firm private.

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BP Sues Over US Ban On Contracts After Explosion

BP is to take the US government to court over its ban on the company bidding for new federal contracts in the country, following the Deepwater Horizon disaster.

The lawsuit, filed in Texas, claims keeping the ban in place risks causing the company "irreparable harm" while at the same time hurting 21 subsidiaries which had nothing to do with the accident in the Gulf of Mexico in 2010.

The Environmental Protection Agency (EPA) initiated the ban on BP last November, citing the company's "lack of business integrity" in the wake of the rig explosion - which killed 11 workers - and the resulting oil spill.

The suspension only affects new contracts, not existing deals.

BP is currently one of the largest suppliers of fuel to the US government, including to the military, holding contracts worth more than $1.34bn (£867m), according to the suit.

The oil company's US spokesman said in a statement: "We believe that the EPA's action here is inappropriate and unjustified as a matter of law and policy, and we are pursuing our right to seek relief in federal court.

"At the same time, we remain open to a reasonable settlement with the EPA."

Bob Dudley, BP's chief executive, told investors in the second quarter that the company had plenty of work that was ongoing in the Gulf despite the ban but said the EPA order bars it from taking possession of new leases there.

The company is currently paying out millions of dollars to settle damage claims from Gulf residents in a contentious process that BP says is being mismanaged by the administrator.

Last week a judge ordered BP to pay $130m to the administrator's team despite objections from the oil company, which is also facing the second phase of a trial in federal court to determine fines for environmental harm caused by the spill.

BP has incurred about $42.4bn in charges related to the disaster.

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Britain's Most Wanted Fraudsters Revealed

By Martin Brunt, Crime Correspondent

These are the faces of 25 most wanted identity fraudsters who were caught in the act.

They allegedly stole other people's personal details and then tried to use their own photographs to get passports, driving licences and other official documents.

Some of their victims may have had information taken in burglaries or muggings, others may simply have been intimidated into revealing it.

The scam is often used by organised gangs to commit crimes such as money laundering, drug trafficking and illegal immigration, say investigators.

Nigel Kirby, of the Serious Organised Crime Agency (SOCA), said: "Be in no doubt, these fraudulently obtained documents are being used by criminals for criminal purposes.

"Passports and driving licences do not just allow you to travel and drive, they are important identity documents that can be used to support applications for mortgages, bank loans and benefits."

The Crimestoppers charity wants the public's help in tracking down the 25 alleged fraudsters.

Director of operations Roger Critchell said: "We need to protect ourselves from such criminals, particularly now with data-driven identity crimes making up the vast majority of all fraud in the UK."

Identity theft is the fastest growing type of fraud in Britain, and hit an all-time high last year with 150,000 identifiable victims, according to the UK's Fraud Prevention Service CIFAS.

:: Anyone who recognises any of the suspects can contact Crimestoppers on 0800 555 111 or online

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Rail Fare Protests As Charges Set To Increase

Thousands of people are protesting at 50 stations across the UK against the rise of rail fares compared to the average earnings.

Passengers will learn how much more they will be paying from next January when inflation figures are released later.

Analysts predict the latest RPI figure - which is used to calculate next year's rail fare rise - will be 3.3%.

This would see regulated rail fares increasing by 4.3% in January, well above average wage rises.

Campaigners claim train fares have risen three times faster than wages in the last six years.

The next price hike will be the sixth time in seven years that rail fares have outstripped wages, they say.

Between 2008 and next January rail fares will have jumped by 40%, compared with a 15% increase in average earnings, it is claimed.

The Trade Union Congress (TUC) warned some season tickets could rise by 9%, against forecasts of a 2.4% increase in average earnings next year.

It said rail privatisation was costing taxpayers £1.2bn a year despite "minimal" investment in trains and stations.

TUC general secretary Frances O'Grady said: "Every year hard-pressed rail commuters have to hand over an ever greater share of their earnings just to get to and from work.

"Wage-busting fare rises are not even going on much needed service improvements either. Instead, passenger and public subsidies are lining the pockets of the shareholders of private rail companies."

The TUC and the Action For Rail campaign group have planned a series of demonstrations at stations including Birmingham New Street, Bristol Temple Meads, Glasgow Central, Manchester Piccadilly, Newcastle Central and London's Paddington and Victoria.

Between 2008 and next January fares will have jumped by 40%, it is claimed

Stephen Joseph, chief executive of Campaign For Better Transport, said: "Getting to work is now the biggest single monthly outgoing for many commuters - more than food, more than housing.

"For the sake of the economy, we should end above-inflation fare increases now and start planning for fare reductions."

Transport Secretary Patrick McLoughlin said nobody liked paying more for fares but the Government was investing heavily in the railways.

Speaking from Nottingham station, where #130 million-worth of work is going on, Mr McLoughlin told the BBC that taxpayers contributed huge amounts to the running of the railways and passengers had to make contributions, both as rail travellers and as taxpayers.

"Nobody likes to see rail fares go up. I don't like to see it and passengers don't like to see it," he told the BBC.

"We are massively investing in the railways, with £130m being spent here at Nottingham, £800m at Reading and £600m at Birmingham.

"Running the railways is a very expensive business."

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Housing Market Recovery 'Round The Corner'

House price rises are now being seen across the country as activity grows following the financial crisis.

According to the latest housing market report by the Royal Institution of Chartered Surveyors (Rics) there are signs a recovery is "round the corner".

The West Midlands and the North East, areas which Rics said have "suffered more than most" since the market crash, experienced the biggest increases in buyer activity in July.

And growth in buyer numbers was seen across the UK as the upswing in activity, which has been particularly concentrated in London and the South East, spread outwards.

Around 53% more surveyors reported increases rather than falls in demand.

As buyer numbers strengthened, prices rose across the country for the fourth month in a row, growing at their fastest rate since the market peak of November 2006, Rics said.

Looking ahead, a balance of 35% more surveyors expect prices to continue their increase rather than fall, while 53% more surveyors expect sales to rise over the next three months.

Peter Bolton King, Rics global residential director, said: "It is clearly good news that those parts of the property market that were struggling are at last showing some signs of life."

Lenders, estate agents and property websites have been reporting big uplifts in activity this year following the launch of various Government schemes to unblock the housing market.

More first-time buyers have been seen entering the market and sellers also appear to be more confident about sticking close to their asking prices amid improved mortgage availability.

But fears have been raised that the initiatives must not lead to a property bubble.

A Government scheme called Help to Buy, which will underwrite £130bn of low-deposit mortgage lending with state guarantees from next year, is in particular focus.

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RBS Sell-Off Unlikely Until 2018 - Cable

Business Secretary Vince Cable has signalled that the Government is unlikely to sell its stake in Royal Bank of Scotland for another five years.

Mr Cable claimed it was "pretty unrealistic" to expect the bailed-out bank to be back in private ownership before the current parliament ends in 2015.

And the senior Lib Dem went on to suggest that the Government would probably retain its 82% stake for most of the next parliament.

"I don't think it would be sensible for the Government to set a rigid timetable, but given where we start from I think it is pretty unrealistic to think of RBS going back into private ownership this Parliament or probably within five years," he told The Sunday Telegraph.

His comments conflict with remarks by David Cameron, who earlier this year said the holding should be sold "as soon as possible".

'Pretty unrealistic': Vince Cable

RBS chairman Sir Philip Hammond has also suggested the sale process could start as early as next year.

It indicates the two coalition parties will go into the next general election with different visions about how and when RBS will return to the private sector.

The Government spent £45bn on keeping RBS afloat in 2008 in the wake of the financial crisis, buying shares at 502p each. After Friday trading, the price was 325.6p.

The prospect of a lengthy spell in private ownership will increase the pressure on the bank to be broken up.

Assets such as Ulster Bank and the RBS commercial property book, which is worth £63bn, could be hived off and recapitalised separately.

Investment bank Rothschild has been tasked with reviewing whether the 81% state-owned lender should be split into a "good" and "bad" bank.

Mr Cable said: "I think there is a very strong argument for saying that the bank got too big and indeed that was the source of its undoing.

"But we are having to balance the benefits of breaking up the bank (and) the potential benefits for competition (with) the significant costs, particularly in terms of disrupting IT systems.

"My colleagues in the Treasury are doing very detailed work on that cost-benefit calculation, because there is no simple yes or no answer."

Asked if RBS would be better as a UK-focused retail and corporate bank, he added: "The Chancellor and I have the same view about this. We are not nationalists and of course there is an argument for international banking.

"But we do need to have strong UK banks, particularly supporting our business community. At the moment that market does not function well."

If the Government does keep its stake in RBS for longer, it would be able to increase pressure on the bank to lend more.

Speculation about the company's future has intensified after it announced earlier this month that it had returned to profit.

The firm made a half-year pre-tax profit of £1.37bn, compared to a £1.68bn loss in the same period last year, and has now seen its first two quarters of consecutive growth since the crash.

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EU Banks Cut 20,000 Branches After 2008 Crash

Banks hit by the global financial crisis have cut 20,000 branches across the whole European Union, according to new research.

Figures for 2012 showed banks closed 5,500 branches across the EU or 2.5% of the total.

The EU now has 20,000 fewer outlets than it had when the financial industry was plunged into crisis in 2008.

Last year's cuts come after 7,200 branches were axed in 2011, according to European Central Bank (ECB) statistics analysed by Reuters.

Banks across Europe have been closing branches in a bid to trim operating costs and improve their battered earnings.

Consumer take-up of online and telephone banking services has accelerated the trend.

The data show EU banks cut 8% of branches in aggregate in the four years to the end of 2012, leaving 218,687 branches, or one for every 2,300 people.

Last year's sharpest cuts were largely contained to the embattled periphery.

Crisis-stricken Greece saw one of the biggest contractions in 2012, shedding 5.7% of its outlets, as mergers of local banks led to 219 branch closures.

The trend is expected to continue into 2013 as Piraeus shuts some of the 312 branches it snapped up from stricken Cypriot lenders in March.

Spain, where massive loan losses have put banks under fierce pressure to cut costs, lost 4.9%, or 1,963, of its branches in 2012.

Ireland's branch network contracted by 3.3% and is expected to shrink again in 2013, while Italy's network was 3.1% smaller by the end of the year.

Branch numbers were on the rise in some eastern European countries including Poland (up 4%), the Czech Republic (up 2.3%) and Lithuania (up 1.8%).

In Britain, the ECB data showed the number of branches remained little changed at 11,870.

:: The ECB gathers data on lenders' branch networks across the EU, and the data reviewed included the 27 EU member states at the end of 2012.

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Fracking Must Be Accepted By Britain, Says PM

David Cameron says the country should accept fracking, claiming the controversial method of extracting gas will create jobs and cheap energy.

The Prime Minister took to Twitter on Monday morning to say: "I believe the whole country should get behind fracking - providing cheap energy and jobs across the UK."

He said the process would not damage the countryside and cause only "very minor change to the landscape".

Writing in The Daily Telegraph, Mr Cameron also said: "I want all parts of our nation to share in the benefits: north or south, Conservative or Labour."

Mr Cameron has written in support of the controversial fracking method

He added: "If neighbourhoods can really see the benefits - and get proper reassurance about the environment - then I don't see why fracking shouldn't get real public support."

The intervention follows comments from former Government adviser Lord Howell of Guildford, the father-in-law of Chancellor George Osborne, who suggested that fracking should be confined to "desolate" areas of northern England.

Fracking - the process of extracting gas by the hydraulic fracturing of rock using high pressure liquid - has transformed the energy market in the US.

It has cut costs for households and businesses, and ministers hope for a similar effect in the UK.

The PM said it has "real potential to drive energy bills down" and insisted the Government was not "turning our back" on a low carbon generation but needed to secure a mix of energy sources.

Anti-fracking protester in Balcombe, West Sussex

In an effort to persuade communities of the benefits of fracking, firms will offer £100,000 of benefits for each exploratory well.

Mr Cameron added: "Companies have agreed to pay £100,000 to every community situated near an exploratory well ... If shale gas is then extracted, 1% - perhaps as much as £10m - will go straight back to residents."

He sought to play down fears about the environmental dangers posed by fracking, claiming there was "no evidence" that it would cause contamination of water supplies or other damage if properly regulated.

Last week Mr Cameron said Britain would be "making a big mistake" if it did not seriously consider fracking and the prospect of cheaper gas prices.

The village of Balcombe in West Sussex has become the focal point of anti-fracking protests as energy company Cuadrilla attempts to drill there.

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Apple Wins Samsung Patent Case In US

Apple has won the latest victory in a long and bitter global battle with Samsung over alleged patent infringement.

The US International Trade Commission (ITC) found Samsung was in violation of two patents and banned American imports of some of its devices.

However, the ban is currently on hold because US President Barack Obama has 60 days to review the decision and could veto it.

Just days ago, the Obama administration overturned an ITC ruling from June that would have banned the sales of some older iPhones and iPads in the US for violating Samsung patents.

Letting the ban on Samsung devices stand after having so recently intervened in the Apple case could spur allegations of favouritism towards the Californian company.

Samsung's Galaxy 4 (front) and Apple's iPhone 5

The South Korean firm was cleared of infringing four other patents involved in the dispute, which has deepened as competition between the two firms intensifies.

Apple claims Samsung's Android phones copy vital iPhone features but the rival has fought back with its own complaints.

It has recently cut into Apple's market share and is now the leading smartphone manufacturer, as well as having growing success with its Android tablet computers.

The legal cases typically involve older products that are no longer widely sold but a victory could affect future features and therefore slow down a rival's momentum.

Apple could also seek to ban imports of phones released since the case was filed in 2011.

The so-called 'Steve Jobs patent' was one of those upheld

Samsung spokesman Adam Yates said the company was disappointed but vowed it would continue to release new products.

He added that measures had been taken to ensure they would continue to be available in the US.

Apple said in a statement that the ITC "has joined courts around the world in Japan, Korea, Germany, Netherlands and California by standing up for innovation and rejecting Samsung's blatant copying of Apple's products."

It continued: "Protecting real innovation is what the patent system should be about."

The patents supported by the ITC ruling included the so-called "Steve Jobs patent" which relates to the use of touchscreens, and one covering the audio socket.

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High Street Housing Plans Come Under Fire

Store Vacancies Hit New High Level

Updated: 11:50am UK, Monday 20 May 2013

A surge in shopping centre vacancies means almost one in every eight British stores is now empty, according to a new survey.

Empty shops now account for 11.9% of retail space, after failures including Comet and Jessops knocked holes in the shopping hubs and out-of-town retail parks.

The percentage of UK shop vacancies in April worsened from 10.9% in January and was the highest rate since the British Retail Consortium (BRC) and Springboard survey began in 2011.

It said high streets have been "vastly outperforming" malls and retail parks, boosted by a 5% increase in evening drinkers, diners and clubbers.

The retail sector has been battered by a wave of failures this year, with entertainment retailer HMV and camera chain Jessops both entering administration in January.

Electricals retailer Comet slumped into administration in November.

BRC director general Helen Dickinson said: "It's a major concern that the vacancy rate has reached a record high, driven by increases in almost every part of the UK, with some regions like the South West seeing a significant leap in empty shop numbers."

But rising temperatures lifted April footfall 1% on a year earlier, a marked improvement on the 5.2% fall in March, as more shoppers ventured out compared with a rainy April 2012.

Ms Dickinson added: "The unsettled weather at the start of the month seems to have created pent-up demand, which brought many of us out to shop when more spring-like weather finally made an appearance."

High street footfall was up 3.4%, the strongest performance since December 2011, but shopping centre visitors fell 3%.

Greater London was the strongest-performing region with footfall rising 4.2% and just 7.4% of its shops vacant.

Footfall in Northern Ireland slumped 6.4% in April, while its shop vacancy rate hit 18.1%. In Wales, shoppers were down 2.1%, with a vacancy rate of 17.9%.

The South West saw footfall slide 1.3% and shop vacancies hit 14%.

The UK's surging vacancy rate follows recent downbeat sales figures from the BRC, which showed retail sales slumped at the fastest rate for a year in April as the timing of Easter and a freezing start to the month offset improvements in fashion and beauty.

Like-for-like sales fell 2.2% in April from a year earlier, with the early Easter hitting food sales in particular, it said.

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Wages: UK Workers In Europe's Bottom Four

Warning Over High Charity Wages

Updated: 10:36am UK, Tuesday 06 August 2013

Six figure salaries for staff at Britain's taxpayer-funded foreign aid charities risk bringing the industry into disrepute, the Charity Commission's chairman William Shawcross has warned.

Some 30 people working at the 14 leading UK charities that make up the 50-year old Disasters Emergency Committee (DEC) are paid more than £100,000 a year, according to new figures. 

A Daily Telegraph investigation into charity industry salaries showed British Red Cross CEO Sir Nick Young earns £184,000 a year. 

James Forsyth, chief executive of Save the Children, earns £163,000, while the charity's chief operating officer Anabel Hoult earns £168,653.

Mr Shawcross told the Daily Telegraph: "It is not for the commission to tell charities how much they should pay their executives. That is a matter for their trustees.

"However, in these difficult times, when many charities are experiencing shortfalls, trustees should consider whether very high salaries are really appropriate, and fair to both the donors and the taxpayers who fund charities.

"Disproportionate salaries risk bringing organisations and the wider charitable world into disrepute."

Three years ago, 19 staff members at the DEC charities, which are mandated to raise funds quickly for crisis-struck parts of the world, earned more than £100,000.

DEC says it has run 62 appeals and raised more than £1.1bn since launching in 1963.

The charities involved with DEC include Action Aid, Age International, British Red Cross, CAFOD, Care International, Christian Aid, Concern Worldwide, Islamic Relief, Merlin, Oxfam, Plan UK, Save the Children, Tearfund and World Vision.

Sir Stephen Bubb, chief executive of charity leaders organisation Acevo, said the intervention by Mr Shawcross was "deeply unhelpful".

The average salary for a charity chief executive was £58,000, he said and added: "The big national and international charities are very demanding jobs and we need to attract the best talent to those jobs and that's what we do."

Sir Stephen denied that the high salaries could put off donors.

He said: "This simply isn't an issue for donors. Donors are more concerned about the outcomes, the performance and the efficiency of these organisations.

"To keep talent, really strong people, at the top of these organisations they need to be paid properly. These are still not excessive salaries when you compare them to the public and private sectors."

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