Nokia And Blackberry-Maker Agree Patent Truce

Nokia has settled all its patent disputes with Blackberry-maker Research In Motion (RIM) amid the costly legal rows still gripping the fiercely competitive smartphone industry.

While terms of the agreement were confidential, Nokia said, the deal on Wi-Fi technology licensing with RIM included a one-time payment and continuing fees.

The Finnish firm said the agreement settled all existing patent litigation between the two companies but it added that disputes with HTC Corp and ViewSonic still stood.

Its statement read: "Nokia has entered into a new patent licence agreement with RIM. The agreement will result in settlement of all existing patent litigation between the companies and withdrawal of pending actions in the US, UK and Canada related to a recent arbitration tribunal decision.

"The financial structure of the agreement includes a one-time payment and on-going payments, all from RIM to Nokia."

Paul Melin, chief intellectual property officer at Nokia added: "We are very pleased to have resolved our patent licensing issues with RIM and reached this new agreement, while maintaining Nokia's ability to protect our unique product differentiation.

"This agreement demonstrates Nokia's industry leading patent portfolio and enables us to focus on further licensing opportunities in the mobile communications market."

The development was announced just days after Samsung withdrew lawsuits which sought to ban the sale of Apple products in Europe.

While the firms' legal battles over patents were to continue, Samsung said it strongly believed companies should compete in the marketplace, not in court.

"Samsung remains committed to licensing our technologies on fair, reasonable and non-discriminatory terms," the South Korean company's statement said.

It was also confirmed on December 18 that Apple's efforts to ban the sale of several Samsung smartphone models in the US had been rejected by a judge.

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Banks Face Break-Up Over Risky Trading

By Poppy Trowbridge, Business and Economics Correspondent

British banks face break-up if they fail to follow new rules protecting high street operations from riskier trading.

The Parliamentary Commission on Banking Standards has published a report assessing Government-backed legislation that will require lenders to protect customers' banking deposits from potential losses.

While the report suggests ring-fencing will help address the damage done to culture and standards in banking, it may not be enough to stop banks taking advantage of the rules.

Commission chairman Andrew Tyrie MP said: "The legislation needs to set out a reserve power for separation - the regulator needs to know he can use it.

"Over time, the ring-fence will be tested and challenged by the banks. Politicians, too, could succumb to lobbying from banks and others, adding to pressure to put holes in the ring-fence."

MPs are looking at ways to exert pressure on lenders that fail to comply.

Shadow chancellor Ed Balls told Sky News: "I think people are really frustrated, families, businesses, that banking reform is taking so long.

"In the meantime, our economy has not been growing, small business lending is falling. We've got to get on with it and we've got to get it right.

"The commission says the proposals on the table so far from George Osborne don't go far enough, they've been watered down, and they also are going to look at the wider issues of standards and culture in the way our banks operate."

Next year, the commission will take further evidence on whether full separation of proprietary trading operations at banks is necessary.

The Government launched an inquiry into banking standards in the wake of revelations that the London Interbank Offered Rate (Libor) had been manipulated by traders.

Barclays and Swiss bank UBS have been fined by authorities for manipulating Libor.

The rate is a reference point for vast ranges of financial contracts around the world worth around £184trn.

Mr Tyrie said: "The latest revelations of collusion, corruption and market-rigging beggar belief.

"It is the clearest illustration yet that a great deal more needs to be done to restore standards in banking."

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UK Economic Growth Less Than Expected

Britain's growth figure for the third quarter has been revised to 0.9% by the Office for National Statistics.

That is down from their previous estimate of 1%.

Britain's dominant services sector posted meagre growth in October, adding to the challenge for the economy as a whole to expand in the last three months of 2012.

Third quarter GDP growth was the strongest since the third quarter of 2007, but much of that reflected a one-off boost from the London Olympics and a rebound from the second quarter when an extra public holiday dented output. 

Britain suffered its second recession since the financial crisis between late 2011 and mid-2012, and overall has recovered much more slowly since 2009 than most other big economies.

It also emerged that borrowing unexpectedly increased last month, putting more pressure on Chancellor George Osborne's plan to bring down the budget deficit.

Public sector net borrowing, excluding financial interventions such as bank bailouts, was £17.5bn in November, up £1.2bn on the same month last year.

Economists had predicted borrowing would fall slightly to around £16bn.

Public sector borrowing for the year to date is £92.7bn, excluding a one-off £28bn boost from the transfer of the Royal Mail pension fund into Treasury ownership, which is 9.9% higher than the same period last year.

The latest figures will put more pressure on Chancellor George Osborne

James Knightley, analyst at ING Bank, said the borrowing figures highlighted the weak state of the UK economy and the fact that austerity measures were failing to generate the improvement in Government finances that were hoped for.

He said: "All in all, the UK appears to be ending 2012 not in particularly great shape, and as such we suspect the Bank of England has more work to do with further policy stimulus likely in early 2013, especially if the worst fears over the US fiscal cliff materialise."

The ONS said the latest figures do not take into account the transfer of assets from the Bank of England's money printing programme into the Treasury, and the auction of bandwidth for 4G mobile broadband services, which is expected to boost the finances.

In the Chancellor's Autumn Statement earlier this month, the Office for Budget Responsibility (OBR) said it expected borrowing to be £108bn in 2012/13, compared to £119.9bn in the March estimate.

The news will put further pressure on Britain's gold-plated AAA status.

All of the three main ratings agencies have now put the UK on negative watch.

Vicky Redwood, chief UK economist at Capital Economics, said: "Although a number of temporary factors flattered the OBR's new forecast for borrowing this year, the underlying picture is that the weak economy is preventing the deficit from falling."

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BT Slapped With £95m Refund Bill

BT has been told it must repay almost £95m to corporate customers following a row over high speed data provision.

The regulator Ofcom ruled the company had overcharged for Ethernet services and must hand back £94.8m to communication providers BSkyB - the owner of Sky News - Talk Talk, Virgin Media, Verizon UK and Cable & Wireless.

Ethernet services are mainly used by businesses and provide dedicated broadband capacity between different locations.

Ofcom said it received the first complaint in 2010 that the charges levied by BT were "not cost orientated".

It had continued to receive related claims ahead of today's decision, the regulator stated.

BT, which said in November that its second quarter revenues had been hit by a triple whammy of recession, regulation and rain, has two months to decide if it will appeal the decision.

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Steve Jobs' £80m Super Yacht Impounded

A super yacht built for Apple's late co-founder Steve Jobs has been impounded in Amsterdam because of a dispute over an unpaid bill to designer Philippe Starck, a lawyer has said.

Mr Jobs, who died last year, never got to use the vessel, called Venus.

But he had commissioned the French designer to work on the yacht, which cost more than 100m euros (£81.3m).

A lawyer representing Mr Starck's company Ubik told reporters his client had received 6m euros out of a 9m euro commission for his work on the minimalist vessel and was now seeking to recover the rest of what he was owed.

Steve Jobs died in October 2011 after making his name and fortune at Apple

The yacht was impounded on Wednesday evening, the lawyer said, and will remain in Amsterdam port pending payment by lawyers representing Mr Jobs' estate.

"The project has been going since 2007 and there had been a lot of detailed talk between Jobs and Starck," said the lawyer, Roelant Klaassen.

"These guys trusted each other, so there wasn't a very detailed contract."

The lawyer representing Mr Jobs' estate could not immediately be reached for comment.

The yacht is named after the Roman goddess of love

The 256ft (78-metre) vessel, built by shipbuilders Feadship, took to the water at the firm's yard in Aalsmeer, just south of Amsterdam, in October, a year after Mr Jobs' death.

According to Mr Jobs' biographer Walter Isaacson, the vessel, which is made of exceptionally long aluminium panels, was just as Mr Jobs had imagined it.

The late Apple chief is believed to have given his input in a day-long discussion with Mr Starck.

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Fiscal Cliff: Republican Plan Ends In Failure

House Speaker John Boehner said on Friday that he was still open to talks with President Obama - a day after being forced to scrap a vote on his back-up plan to avoid the fiscal cliff crisis.

Mr Boehner had confidently predicted on Thursday that he would muster sufficient backing for his "Plan B" proposal which would have extended Bush-era tax cuts for all Americans except those earning less than $1m (£615k).

But conservatives in the House of Representatives, who saw the plan as a tax hike for the rich, revolted.

"We had a number of our members who didn't want to be perceived as raising taxes,' Mr Boehner told reporters.

The Speaker had been hoping to use the vote as leverage in his talks with Mr Obama, in a bid to avert the automatic year-end tax hikes and spending cuts set to kick in on January 1.

On Friday, he again tried to shift the pressure for a deal to the President.

"We only run the House. The Democrats continue to run Washington," he said.

Even if it had succeeded in the House, the bill would have struggled in the Democrat-controlled Senate and the President would have then exercised his veto.

The White House said "Plan B" still offered big tax breaks to very wealthy Americans who do not need them.

President Obama wants higher taxes for the wealthiest

Mr Obama - who originally insisted on letting the tax cuts expire on households earning more than $250k (£154k) - has since upped that threshold to $400k (£246k) in an attempt to reach a compromise.

White House spokesman Jay Carney said a "bipartisan solution" was still possible.

"The President's main priority is to ensure that taxes don't go up on 98 percent of Americans and 97 percent of small businesses in just a few short days," he said.

Mr Obama "will work with Congress to get this done and we are hopeful that we will be able to find a bipartisan solution quickly that protects the middle class and our economy," he added.

The White House insists the two sides are not that far apart.

Both the President and Speaker have shown a willingness to compromise, and risk angering supporters of their respective parties in the process. 

Mr Boehner has said he would be satisfied with a balanced $1trn in tax revenues and $1trn in spending cuts, much of it from entitlement programmes like Medicare health care for the elderly.

The President's plan offers $1.2trn in new tax revenues, with just under $1trn in spending cuts.

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BAE Systems Strikes £2.5bn Deal With Oman

By Alistair Bunkall, Defence Correspondent

A deal worth £2.5bn has been completed between British defence manufacturer BAE Systems and Oman.

It will see BAE provide the Gulf state with 12 Eurofighter Typhoon aircraft and eight Hawk training jets.

As well as supplying aircraft, BAE Systems will provide in-service support to the Royal Air Force of Oman's (RAFO) operational tasks.

Work to start building the aircraft will begin in 2014, with the first jets due for delivery in 2017.

But the markets did not seem too enthusiastic about the announcement, as the BAE share price was down 2% during the early hours of trading.

More importantly for the company's future financial health is the Salam deal for 72 Typhoon jets with Saudi Arabia, worth £4.5bn.

Earlier this week, BAE warned that its 2012 earnings would suffer if no agreement was reached on this deal by February 21.

Last month, Prime Minister David Cameron visited Jordan, Saudi Arabia and the United Arab Emirates on a trade mission to promote BAE and persuade the states to buy British-made defence equipment.

PM David Cameron visited Jordan, Saudi Arabia and the UAE last month

It is unusual for a British prime minister to promote defence companies so openly but the Government is seeking to build closer ties with friendly Middle Eastern states in the face of what it sees as a growing threat in the region from countries like Iran.

The move also demonstrates an attempt to forge links outside of the traditional Nato countries.

The deal is not only important for BAE Systems but also for the companies that form the supply chain, many of which are based in the UK.

The deal will support BAE's assertion that it still has a strong business with a positive future after the proposed merger with EADS collapsed in October.

Cuts to defence budgets globally have resulted in a tougher and more competitive market, and BAE had hoped a merger with a company that specialises in civil aviation would lessen any effect of budget cuts.

Guy Griffiths, group managing director for BAE Systems' International business, said: "Receiving this contract is an honour and is excellent news for both BAE Systems and the Eurofighter Typhoon consortium.

"We look forward to working in partnership with Oman's Ministry of Defence, and the Royal Air Force of Oman, to ensure this is a highly successful programme that maximises the potential of both Hawk and Typhoon."

Oman becomes the seventh country in the world, and the second in the Middle East, to operate the Typhoon, joining the air forces of the United Kingdom, Germany, Italy, Spain, Austria and Saudi Arabia.

Business Secretary Vince Cable said: "This is obviously a very good day for BAE Systems, its suppliers and the broader Eurofighter supply chain.

"We, and our partners in the Eurofighter consortium are pursuing a number of opportunities at present and I hope that the decision by Oman to join the Typhoon family is followed by more of its friends and neighbours."

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House Prices Predicted To Edge Down In 2013

House prices across the country fall by 1% during 2013 as the London market shows signs of cooling, property analysts have said.

Prices fell 0.1% month-on-month in December, marking the sixth month in a row that this has happened, and average prices ended the year 0.3% lower than a year ago, Hometrack said.

It predicts that a reluctance by struggling families to take on more debt will continue to act as a drag on the housing market next year and prices will be more volatile with continued low sales.

Hometrack's monthly figures for December show prices were flat in London and East Anglia, fell 0.1% in the Midlands, the South and Yorkshire and Humberside, dropped 0.2% in the North West and Wales and by 0.3% in the North East.

One in five postcodes in England and Wales recorded price increases over the past year but prices have fallen across two-thirds of the country.

London has had strong demand from wealthy overseas buyers and consistently outperforms other regions, seeing prices rise in seven out of 10 postcodes this year. Property prices are now 10% higher than at the peak of the market in 2007.

But price growth in London, vital to keeping average prices up in the rest of the country, is predicted to slow over next year, with a 2% annual increase pencilled in.

Central London price growth looks set to slow, following the introduction of a 7% stamp duty rate placed on homes worth over £2m in March.

The Office for National Statistics recently indicated that house price increases in London could be slowing. The rate of year-on-year price growth in the city dropped from 5.2% in September to 3.4% by October.

The study regularly asks estate agents across England and Wales about achievable selling prices.

But Hometrack's predictions jar with some other recent surveys, including one from Rightmove which said increased competition among mortgage lenders and a continued shortage of homes to choose from will help to push asking prices up by 2% across England and Wales next year.

The Council of Mortgage Lenders has said it expects the housing market to "feel more stable and positive" next year, with much of the boost coming from a multibillion-pound Government scheme which has already helped to increase mortgage availability.

But the council has also said demand for mortgages could be held back by the weakness of the economy and much will hinge on the continued resilience of UK employment.

Halifax has said house prices are likely to be flat next year, with any growth likely to be strongest in London and the South East.

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Belgian Chocolate: Is Its Reputation Melting?

By Robert Nisbet, Europe Correspondent

Belgium's reputation as the world's chocolate capital could be melting as emerging markets develop a sweet tooth and the recession continues to bite.

The region became the base for the industry shortly after the Spanish explorer Cortes returned from Mexico with cocoa pods from Mexico in the 17th century.

Three hundred chocolate companies are based in Belgium, which have a combined turnover of nearly £2bn every year.

While the commodities analyst Mintel suggests the global market for chocolate has held steady in 2012 at roughly £52bn, the market in Western Europe shrank by 5%.

More worryingly for many of the Belgian craftsman, who buy their chocolate already ground and cooked before adding their own ingredients, processing has shifted away from factories in neighbouring Germany and the Netherlands.

Statistics from the European Cocoa Association show that processing in Europe fell by 17% over the summer.

It is not just the recession, the economic model is changing: demand for luxury chocolate is growing in emerging economies, but slowly shrinking in richer countries.

World record-breaking chocolate train

So it makes more economic sense for the larger companies to shift production to new markets where labour costs are low and the beans do not have to be shipped to Europe to be processed.

Since the recession, Belgian artisans have been mostly shielded from a dip in local demand by growing demand in eastern Europe and the so-called BRIC countries.

But there could be problems ahead when they have to pay more to buy processed chocolate from further afield.

There certainly is not an air of impending crisis.

We saw a giant chocolate sculpture of a hippopotamus draw gasps in Grand Sablon, the "quality street" where most of the famous chocolate houses have a flagship shop.

There was also the unveiling of the world's longest ever structure built purely from chocolate in the Gare du Midi near the railway platform where Eurostar trains rumble in from London.

The 34 metre long sculpture of a vintage steam train was checked by inspectors from the Guinness Book of World Records to ensure it was solid chocolate and not bulked out using cheaper ingredients.

The tourism minister Christos Doulkeridis told Sky News that he believed Belgium will keep its chocolate crown.

"We don't want to be the first one just in chocolate. We want to be the first one in chocolate of quality," he said.

The test will be whether the country can continue to maintain its reputation as a marque of quality in the teeth of foreign competition.

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Christmas Day Online Sales Surge Predicted

Bargain season begins in force today as online retailers slash prices ahead of an expected onslaught of consumers hitting the high street for the traditional Boxing Day sales.

Amazon's UK website said it had seen sales on Christmas Day increase by 263% over the last five years.

It expects this to be its busiest Christmas Day to date, partly due to the growth in home broadband and the popularity of tablets and smartphones.

The retailer is launching its Boxing Day deals a day early, which include clearance offers and "lightning deals" for a limited time and quantity of stock.

Shopping frenzies are moving from the high street to the internet

Trends seen on past Christmas Days on Amazon include an 11am rush for last minute gift cards, the spending of gift cards at midday and sofa surfing at 8.15pm.

Amazon's vice president of EU retail, Xavier Garambois, said: "The digital revolution has certainly played a part in this growth and Christmas Day is our biggest day of the year for MP3 and Kindle book downloads, as many people are buying content from new devices that they have just received.

"It's not just digital items though, we are seeing purchases of everything from baby products to women's clothing rapidly growing on Christmas Day.

"Many customers are shopping on Christmas Day in a way that has previously only been seen in the retail industry on Boxing Day."

According to MoneySupermarket.com, shoppers in the UK are set to spend a total of £2.9bn in the Boxing Day sales.

Furniture Village said visits to its website on Christmas Day last year peaked at 25,000 at 4pm, with that figure increasing to 50,000 on Boxing Day, suggesting that the majority of customers researched products online before buying from high street stores.

Chris Webster, a spokesman for technology analyst Capgemini, said: "Online tills will be ringing all the way from Christmas Eve to Boxing Day, including a massive £300m spent on Christmas morning itself.

"Christmas Day will see a surge in online sales as new tablets and smartphones are put through their paces and vouchers are cashed in for virtual goods such as movies and music.

"This year we're as likely to be downloading Queen's Greatest Hits as watching the Queen's speech."

Meanwhile, high street spending was "acceptable but not exceptional" this festive period, according to the British Retail Consortium.

Head of media and campaigns Richard Dodd said poor accessibility on high streets, a lack of parking and weak consumer demand were to blame rather than an increase in online shopping.

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HMRC Missed Calls Cost Taxpayer £136m A Year

Delays in answering phone calls to HM Revenue and Customs hotlines cost the taxpayer £136m in the last year.

According to a National Audit Office (NAO) report, delays cost customers £33m in call charges while they waited for HMRC to answer the phone and the estimated value of customer time while they waited was £103m.

The NAO said 20 million calls to HMRC hotlines - many of which are 0845 numbers - were not picked up at all last year.

People who did get through were also waiting longer to speak to an adviser - an average of 282 seconds compared with 107 seconds in 2009/10.

In the first quarter of this year, some 6.5 million people were left holding on for longer than 10 minutes.

"Depending on the tariff they pay their phone company, customers are charged once their call is connected even if they are held in a queue," the report said.

"We estimate that if HMRC improved performance to answer 90% of calls and reduced waiting times, it could save customers around £52m a year.

"HMRC currently plans to spend £34m to achieve this level of performance."

The NAO found there had been some progress since thousands more staff were drafted in, with the 74% pick-up rate significantly higher than the 48% recorded in 2010/11.

However, the report warned that the figures probably underestimated the issue, as calls are counted as answered even if they do not reach an adviser.

Public Accounts Committee chairman Margaret Hodge said: "When people have no choice but to contact the Revenue to discuss their tax affairs, I find it totally unacceptable that HMRC uses costly 0845 numbers and charges people for the privilege of waiting for the department to pick up."

TaxPayers' Alliance chief executive Matthew Sinclair said: "This report exposes a shameful level of service at HMRC.

"Taxpayers will be outraged that HMRC could let 20 million phone calls go unanswered and yet still claim that it is outperforming some arbitrary target."

An HMRC spokesman said: "In 2010/11 we answered 48% of all call attempts, rising to 74% in 2011/12.

"By late 2012 we were answering over 90% of calls to our contact centres. We are well aware that in the past we have not delivered the standard of service to which we are committed.

"We are determined to build on this progress and we have invested £34m so we can deliver on our improvement targets earlier than planned."

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Facebook Flotation: Morgan Stanley Fined

Morgan Stanley, the lead underwriter for Facebook's initial public offering in May, has been fined $5m (£3.08m) by Massachusetts' securities regulators.

The officials accused the bank of having "improper influence" over the research analysts covering the social media website at the time of its $16bn (£9.87bn) stock market flotation.

The bank has come under criticism for revealing revised financial information to investment banks - but not individual investors – ahead of the company's initial public offering of stock

Wall Street research analysts were warned that less robust mobile revenues had hit earnings and revenue forecasts - information that was not included in new documents Facebook filed with US securities authorities around a week before the flotation.

Massachusetts officials said these lower figures caused analysts to revise their annual revenue estimates down around 3% below the $5bn (£3.08bn) Facebook had forecast for this year.

Regulator William Galvin said a top Morgan Stanley banker taught Facebook executives how to disclose this sensitive financial information and organised phone calls with key analysts.

Mark Zuckerberg founded Facebook while he was at Harvard University

"Main Street investors were put at a significant disadvantage to Wall Street," Mr Galvin added.

In relation to the fine, he said: "With it we will get their attention and begin to take steps in restoring some confidence for retail investors to invest."

A spokeswoman for Morgan Stanley, which has not admitted or denied doing anything wrong, said it is "pleased to have reached a settlement".

She added that the company is "committed to robust compliance with both the letter and the spirit of all applicable regulations and laws".

Mr Galvin said his investigation into the Facebook listing is not over and he is continuing to review other banks involved, including Goldman Sachs and JP Morgan.

He has already overseen a fine of $2m (£1.2m) for Citigroup over its analysts' "improper disclosures" of information during the deal.

The fee for all of the event's underwriters was reported to be $176m (£108.5m) at the time.

Facebook priced its initial public offering at $38 (£23.44) a share, but they finished the first day of trading at just $38.23 (£23.58).

Since then, shares have fallen by around 30% below the IPO price.

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Higher Food Costs Add To Inflation Woes

The main rate of inflation remained unchanged in November as falling petrol prices failed to offset rises in many basic foodstuffs and home energy costs.

The Office for National Statistics calculated that the CPI measure remained at an annual rate of 2.7% in November.

Many economists had expected the figure to fall back slightly ahead of further increases in the rate next month as many rises in household energy bills filter into the statistics.

The ONS said the first increase in bills to take effect, by supplier SSE, was included in November's figures.

But with hikes by the other five main energy providers set to come into force, analysts think CPI inflation will peak at 3.5% by mid-2013.

Upward pressure from gas and electricity prices pushed housing and household services inflation up by 0.6%, the ONS said, while increases in the price of fruit, bread and cereals also added pressure to the CPI rate.

But a fall in the cost of transport was the biggest factor which kept the rate steady as petrol prices fell by 3p to £1.35 per litre on average while diesel dropped 1.5p to £1.42.

The RPI measure of inflation, which includes housing costs, fell to 3% in November from 3.2% in October as transport costs and mortgage interest payments fell.

In its quarterly forecasts revealed last month, the Bank of England expected inflation to remain significantly higher over the next 18 months that it had previously expected.

It was that factor which is thought to have prevented the bank adding to its bond purchase programme, known as quantitative easing, to boost money supply in the UK economy despite evidence of continuing sluggish growth.

Commenting on the figures, the TUC general secretary Brendan Barber said: "The stubbornness of inflation, combined with poor wage growth, is putting real pressure on people's finances in the run up to Christmas.

"With the Office for Budget Responsibility not expecting real wage growth until 2014 and further cuts to in-work benefits due this April, 2013 looks like being another tough a year for working families.

"Today's figures are also another reminder of how painful the forthcoming benefits uprating cap will be for low-income families."

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Redundancy Move 'Makes It Easier To Sack Staff'

The Government is being accused of making it easier for firms to sack their staff through reforms to redundancy rules.

Unions reacted with fury after it was confirmed the 90-day period before large-scale redundancies could take place was to be cut by half to 45 days.

Employment Relations Minister Jo Swinson said the move was aimed at helping workers and businesses while other planned changes would exclude fixed-term contracts from collective redundancy agreements when they reached the end of their "natural life".

The minister said a consultation on the changes had produced a strong argument for shortening the 90-day period, adding: "The process is usually completed well within the existing 90-day minimum period, which can cause unnecessary delays for restructuring, and make it difficult for those affected to get new jobs quickly.

"Our reforms will strike an appropriate balance between making sure employees are engaged in decisions about their future and allowing employers greater certainty and flexibility to take necessary steps to restructure."

But the union organisation the TUC disagreed - its general secretary Brendan Barber said: "The last thing we need is for the Government to make it easier to sack people.

"These measures will not create a single extra job. The idea that an employer will change their mind about taking someone on because the statutory redundancy consultation period has been reduced from 90 to 45 days is close to absurd.

"Removing consultation rights from fixed-term contract staff will seriously increase job and financial insecurity for vulnerable groups of workers, and temporary staff will lose out on redeployment opportunities."

Though Tim Thomas, head of employment and skills at EEF, the manufacturers' organisation, said: "Today's announcement will send a strong signal to industry that the Government is committed to creating the flexible labour market that it needs.

"By reducing the consultation period from 90 to 45 days, the Government has taken a further step to creating a modern, consultation system based on the quality, not the length of, the process."

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Soaring Numbers Work Christmas Day

There has been a big jump in the number of people working on Christmas Day, according to a report by the union organisation the TUC.

It found that hospitals and hospitality were among the sectors asking more staff to forgo festive breaks.

The TUC said almost 172,000 workers were on duty on December 25 in 2010, a 78% increase compared with 2004.

There were equal numbers of men and women going to work on Christmas Day, with those in the NHS and social care making up the biggest group.

In total, 74,521 were on duty in that sector on December 25, 2010 - the last Christmas the figures were available for.

Its study found there was also a big jump in the number of people working in hotels, pubs and restaurants, hitting just over 14,000.

TUC policy officer Paul Sellers stressed that those working over Christmas should be well treated to keep morale high.

"The old 40-hour, five day week has got a bit fuzzy - people are increasingly working at weekends, they're working in the evenings and bank holidays," he told Sky News.

"We should be grateful that people are working on Christmas day, when, for example, we want to go to a restaurant, or we need healthcare.

"But what we need to do is make sure they're properly treated, either through pay or some other way."

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Toyota Hit With Record US Fine Over Recalls

Toyota has been hit with a record $17.4m (£10.7m) fine for failing once again to quickly report problems to US regulators and for delaying a safety recall.

The penalty from the National Highway Traffic Safety Administration - the agency that monitors vehicle safety - is the maximum allowed by law.

It is the fourth fine levied against Toyota in the past two years for similar infractions in the US, and the largest single fine ever assessed against a car company over safety defects.

But it may not be much of a deterrent as it represents a tiny fraction of Toyota's profits, which were $3.2bn (£1.98bn) in the third quarter alone.

About 154,000 of the 2010 Lexus Rx 350s and RX 450h models had to be recalled because the driver's-side floor mats can trap the gas pedal and cause the vehicles to speed up without warning.

The recall affected Toyota's luxury brand Lexus

The NHTSA said Toyota took a month to report the problems, instead of the five days stipulated by US law.

Toyota said it agreed to pay the penalty without admitting any violation of the law.

It also pledged to strengthen data collection and evaluation to make sure it takes action more quickly.

The problem was similar to troubles from 2010 that prompted a series of embarrassing safety recalls by the Japanese company and landed it with fines totalling $48.8m (£30m) for three violations.

Toyota has been forced to recall more than 14 million vehicles globally to fix sticky pedals and floor mats.

The recalls tarnished the company's strong reputation for reliability and cut sales. Recently its fortunes rebounded as it appeared to put safety problems behind it.

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Cardiff Airport Could Be 'Nationalised'

Cardiff Airport could be bought by the Welsh Government amid an effort to turn its fortunes around and make it a key part of the country's economic growth plans.

First Minister Carwyn Jones said his officials had entered an exclusive due diligence agreement with the airport's current owner, TBI, and may proceed towards a re-nationalisation subject to the satisfactory completion of financial, legal and "value for money" considerations.

Announcing the agreement, Mr Jones said: "Over the past 12 months, I have repeatedly emphasised the importance to Wales of a dynamic international gateway airport in Cardiff.

"During the course of the year we have developed a very constructive and positive relationship with TBI.

"Together we have been discussing how best to develop the airport to position it for the challenges ahead.

"I can today announce the Welsh Government has agreed with TBI to progress towards the purchase of Cardiff Airport.

"Such an arrangement would enable us to develop a more coherent approach to our national infrastructure planning, and integrate the airport into our wider economic development strategy."

Cardiff Airport is 12 miles to the west of the city

The airport has been struggling in recent years and is on course to record its weakest passenger numbers for 15 years in 2012.

There were 1.2 million people who used the airport in 2011 - far fewer than the airport's record total of just over two million in 2007.

A major setback was the loss of bmibaby from Cardiff as the airline had operated 11 routes.

The airport's decline was seized upon by Mr Jones earlier this year when he publicly criticised the airport's owners and urged them to properly invest in it or put it up for sale.

He said the plan would be for an independent operator to run it on a "commercial basis" on behalf of the government, adding that it would not receive subsidies and must "demonstrate a return to the taxpayer".

His immediate goal would be to return passenger growth but admitted the ultimate goal was to secure long-haul flights to Middle Eastern destinations such as Dubai, as well as a North Atlantic route.

"They would be very useful to Wales," he added, while refusing to be drawn on a price the Government would be willing to pay.

The announcement drew criticism from his political rivals.

Liberal Democrat Assembly Member Eluned Parrott expressed concerns about the practicality as well as the cost to the public of the change of ownership.

She said: "I feel the airport will simply become a money pit, sucking in public funds at a time of economic restraint which will deliver no obvious return."

Welsh Labour's biggest rival, the Conservatives, also voiced scepticism over the plan.

Tory AM Byron Davies said: "For years, Welsh Labour Ministers have idly watched a decline in passenger numbers at Cardiff Airport.

"The First Minister has taken every opportunity to run down Cardiff Airport's reputation and force it into a position of weakness and thereby making it vulnerable to Welsh Government takeover.

"It is the role of government to provide first-class public services and create the conditions for a prosperous and competitive economy - rather than pursuing an ideological dreamland where everything is owned and controlled by the state."

But leader of Welsh nationalist party Plaid Cymru Leanne Wood said she would welcome public ownership of the airport.

"Cardiff needs to see the development of our international airport so that it is run properly, that it offers a wide choice of destinations at affordable prices and is a good shop front for people visiting this country," she said.

"Cardiff Airport, in its current state, offers none of these things."

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Queen Quizzes Osborne About Sale Of UK Gold

It was meant to be a visit without any high politics but the Queen still managed to quiz the Chancellor about British gold as she visited Downing Street.

Walking along the line of ministers in the Terracotta Room inside Number 10 before sitting in on part of a Cabinet meeting, the monarch came to George Osborne.

Until that point, every minister had been introduced by Prime Minister David Cameron but he failed to announce his friend Mr Osborne.

The Queen queried "someone?", to gales of laughter from the assembled politicians, before going on to ask about "gold bars".

Some of her words are indistinct on video footage of the exchange but she can be heard saying "regrettably" in a reference to their sale.

Mr Osborne told the Queen: "Some of them were sold but we still have some left."

The Queen touring a gold vault at the Bank of England

Gordon Brown sold more than half of the UK's gold reserves when he was chancellor - a decision that has led to major criticism in recent years as the economy floundered.

Between 1999 and 2002, Mr Brown sold almost 400 tons of the precious metal for up to $296 (£183) an ounce - only to see prices soar to above $1,600 (£986).

Sky's deputy political editor Joey Jones said the comment suggests that the financial management of the UK in the last 15-20 years is on the monarch's mind.

It comes days after she told staff at the Bank of England that people "had got a bit lax" during the financial crisis sparked in 2008.

Four years ago, she famously asked: "Why did nobody notice it?" - expressing the astonishment shared by many that the crash was not foreseen.

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Samsung Drops Attempts To Ban Apple Products

Samsung has withdrawn lawsuits which seek to ban the sale of Apple products in Europe, although the companies' legal battle over copyright continues.

A statement by the South Korean company said it strongly believed companies should compete in the marketplace, not in court.

"Samsung remains committed to licencing our technologies on fair, reasonable and non-discriminatory terms," it said. 

"In this spirit, Samsung has decided to withdraw our injunction requests against Apple on the basis of our standard essential patents pending in European courts, in the interest of protecting consumer choice."

The announcement came shortly after a US judge rejected Apple's call to ban the sale of several Samsung smartphone models in the US.

Apple applied for the ban after a jury found in its favour in August, saying the Seoul-based firm had illegally used Apple technology.

District Judge Lucy Koh's decision is part of a series of rulings that she is releasing over several weeks to address the many legal issues that were raised in the case.

Apple was awarded $1.05bn (£648m) in damages after jurors found Samsung had copied critical features of the iPhone and iPad.

Samsung was found to have copied features of the iPad and iPhone

It had urged the judge to permanently ban the US sales of eight Samsung smartphone models, while also seeking to add millions more to the award.

"The phones at issue in this case contain a broad range of features, only a small fraction of which are covered by Apple's patents," Judge Koh wrote in her ruling.

"Though Apple does have some interest in retaining certain features as exclusive to Apple, it does not follow that entire products must be forever banned from the market because they incorporate, among their myriad features, a few narrow protected functions."

Earlier this month, she appeared ready to trim the $1.05bn in damages that had been awarded by the jury, but gave no indication as to how much.

Adding to the legal tangle, Apple filed a second lawsuit earlier this year, alleging that Samsung's newer products are unfairly using Apple's technology.

That trial is scheduled to go ahead in 2014. The two companies are also locked in legal battles in several other countries.

Earlier this year, Apple lawyer Harold McElhinny claimed Samsung "willfully" made a business decision to copy Apple's iPad and iPhone.

He called the jury's $1.05bn award a "slap on the wrist".

Samsung lawyer Charles Verhoeven argued Apple was trying to tie up Samsung in courts around the world rather than competing with it in the marketplace.

Samsung also claimed it had been deprived of a fair trial as the California courthouse is located just 12 miles from Apple's headquarters in Cupertino.

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Investigation Launched Into Comet Collapse

The Department for Business, Innovation and Skills has launched an investigation into the purchase and administration of troubled electrical chain Comet.

The Insolvency Service has been tasked with scrutinising the process following a number of complaints from MPs.

The business was bought for £2 by Hailey Acquisitions, an investment vehicle put together by Henry Jackson of OpCapita, in November 2011.

They were given a £50m dowry from previous owner Kesa Electricals, now known as Darty, to run the retailer, which collapsed just a year later.

Seven weeks after they were appointed administrators, Deloitte failed to find a buyer for the 235-store chain, and closed its remaining 49 outlets.

The collapse of the company, which was founded in Hull in 1933 and employed around 6,895 people, is one of the biggest high street failures since the demise of Woolworths in 2008.

Deloitte said on Monday that it remained in talks with a small number of parties over the sale of internet operations and the brand.

But the firm also confirmed the taxpayer will have to pick up a £49.4m bill for unpaid redundancy and tax payments.

Comet launched a sale following its collapse at the beginning of November

With insufficient funds raised from the winding down of the chain, the Government's Redundancy Payments Service will be required to meet the £23.2m of outstanding redundancy and accrued holiday pay and pay in lieu of notice.

The scale of the problems at Comet were also highlighted in the report, with the chain racking up losses of £95m in the year to April after also seeing revenues slump by £200m compared to a year earlier.

This was followed by a further £31m loss in the subsequent five months as credit insurers lost confidence and withdrew support for the business.

Hailey Acquisitions is expected to get payments of just under £50m as a secured creditor - a shortfall of £95m on the amount owed.

But it has been reported that unsecured creditors, including HM Revenue and Customs which is owed £26.2m, will receive nothing.

Comet was hit by weak high street trading conditions, competition from online rivals and being unable to secure the trade credit insurance needed to safeguard suppliers.

In particular, it was knocked by the lack of first-time home buyers who were key customers for Comet.

Holders of £4.7m of unclaimed Comet gift cards and vouchers are also on the list of unsecured creditors.

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Twitter Snaps Back In Instagram Photo War

Twitter has fired the latest salvo in its social media war with Instagram by offering its own smartphone photo-sharing features.

It was forced to act after the Facebook-owned firm made it impossible for internet users to integrate Instagram images into their tweets.

"Starting today, you'll be able to edit and refine photos, right from Twitter," Twitter said in a blog post.

"Every day, millions of people come to Twitter to connect with the things they care about and find out what's happening around the world.

"As one of the most compelling forms of self-expression, photos have long been an important part of these experiences."

Twitter said its partner Aviary was powering filters and other effects for images using the latest Twitter applications for Apple iPhones or smartphones running on Google-backed Android software.

Instagram is still tweeting about itself despite the ongoing row

The feud between Twitter and Instagram escalated over the weekend when the smartphone photo-sharing service stopped internet users viewing its images in tweeted messages.

Instagram, which has some 100 million users, is seeking to route photo viewers to its own website instead. It then has potential to make money from adverts or other mechanisms, instead of letting Twitter get the benefits.

Previously, Instagram pictures shared in messages tweeted from smartphones could be viewed unaltered on Twitter.

Twitter confirmed on Sunday that Instagram had disabled its photo integration with Twitter, and photos were no longer appearing in tweets or user photo galleries.

Instagram rose to stardom with the help of Twitter, but has distanced itself from the messaging service since being acquired by Facebook.

Last month, Instagram was revamped with the roll-out of online profiles that let people showcase themselves and photos they have taken with the smartphone application.

People can share their profiles with whomever they wish, as well as "follow" other Instagram users, commenting on or expressing "likes" for pictures.

A distinctive feature of Instagram is that it allows users sharing smartphone snaps to enhance them with image filters for artistic effects such as mimicking historic types of film.

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Starbucks Tax Row Boosts Costa Coffee Sales

The UK's largest hotel and restaurant group, Whitbread, has said sales at its Costa Coffee brand have increased by over 25%.

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

It comes amid an ongoing row about the way that some companies - including its rival Starbucks - pay tax in the UK.

In October, it was revealed that Starbucks had paid just £8.6m in corporation tax despite taking billions of pounds in revenue from more than 750 outlets since 1998.

Whitbread's chief executive Andy Harrison said he acknowledged that "Starbucks has issues", and added: "UK consumers are voting with their taste buds."

Starbucks UK's Kris Engskov told Sky News the chain would "take action"

While Starbucks UK last week promised to pay around £20m in corporation tax over the next two years, the ongoing row sparked customer boycotts and protests.

Guardian Stockbrokers' Atif Latif said there was no doubt the tax row had benefited Costa.  

"This uptick at Costa is as a result of clever promotions, a large increase in Costa outlets and greater pricing parity now that many new customers have switched to Pret a Manger and Costa from Starbucks given the news on tax," he said.

"If Costa can capture and retain these customers then we envisage that many will not move back to Starbucks as they are more concerned about the ethical nature of businesses, which remains a priority over taste or habits."

Whitbread, which also owns Premier Inn and the Beefeater and Brewers Fayre pub chains, said total sales across the group were up 14.4% as its brands continued to outperform the market.

Its Premier Inn advertising campaign - featuring comedian Lenny Henry - boosted like-for-like sales at the hotel chain by 2.5%.

But growth across the group slowed when compared to its first half, which was boosted by the UK's wet weather and Olympic Games.

"Whitbread continued its strong growth momentum with total sales up 14.4% together with good like for like sales growth of 3.3%. This once again demonstrates the strength of our brands," Mr Harrison said.

"The economic environment remains challenging with no change in our background consumer market. We are on track to deliver full year results in line with expectations."

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HSBC Bonuses Hit After £1.2bn Fine

By Mark Kleinman, City Editor

HSBC's top executives are to defer a portion of any bonuses they are awarded for the next five years following the bank's £1.2bn fine for breaching money laundering rules in the US.

I have learned that the Deferred Prosecution Agreement (DPA) between HSBC and the US Department of Justice (DoJ), which will be published later today, will disclose details of fresh pay restrictions the bank is imposing on key staff.

The bonus deferrals, which will affect dozens of managers including Stuart Gulliver, HSBC chief executive, will be in addition to the clawing back of millions of pounds in past bonuses awarded to executives involved in HSBC's US operations.

The terms of the new remuneration arrangements will involve Mr Gulliver and his colleagues deferring the element of their bonuses relating to adherence to compliance rules for the full five-year term of the DPA.

However, Sky News understands that the bank's remuneration committee has not yet decided whether Mr Gulliver and others should waive in full any bonuses they are awarded for 2012 following the US settlement.

Mr Gulliver took charge of HSBC at the beginning of last year, long after the breaches of US laws including the Trading With The Enemy Act, took place.

Last year, compliance-related functions accounted for approximately 15% of the overall bonus pots handed out to HSBC executives.

A number of senior staff, including HSBC's chief compliance officer, the former chief executive of its US business and the bank's anti-money laundering director, have had parts of bonuses clawed back already. Sandy Flockhart, a former board member who oversaw HSBC's Mexican operations, is also expected to have a substantial sum of money reclaimed by the bank.

It is questionable whether HSBC's shareholders will view these gestures as sufficient given that Barclays' top executives agreed to waive their bonuses in full following its settlement over Libor manipulation. Even that was not enough to save the jobs of Bob Diamond and Jerry del Missier, Barclays' chief executive and chief operating officer.

The agreement with US authorities, which was confirmed on Tuesday morning, represents a humiliating chapter in the history of HSBC, a bank that prided itself on remaining free from direct taxpayer support during the financial crisis of 2008.

The £1.2bn penalty represents about one-seventh of HSBC's annual profit in 2011.

A Senate hearing earlier this year disclosed a litany of failings within HSBC's Mexican operations, which effectively allowed the bank to be used as a haven for terrorist financiers and drug cartels.

Mr Gulliver said today: "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."

HSBC also said that it would finalise an undertaking with the Financial Services Authority (FSA), the bank's lead regulator, shortly.

I understand that this will include the appointment of an independent monitor to oversee HSBC's compliance function as the bank attempts to restore trust among its supervisors.

HSBC said that it had also spent nearly £200m on remedial measures to overhaul its compliance function.

The FSA, which declined to comment, is likely to announce its new supervisory measures alongside the statements from US regulators later today.

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Pension Reforms: CBI Slams Europe Reform Plan

Planned changes to pension rules by the European Commission could cost the UK an extra £350bn and 180,000 jobs, according to the Confederation of British Industry (CBI).

A study for the business lobby group suggests the proposals, which include forcing employers to divert billions into defined benefit schemes, would be a "disaster" for the UK economy.

The CBI said long-term growth would also be cut by a potential 2.5% if the plans to require pension schemes run by individual employers to operate like insurance firms go through.

CBI chief policy director Katja Hall said: "Imposing £350bn more costs on business would be a disaster for the economy and for pension saving.

"The long-term economic outlook is so fragile and uncertain that it is crazy to entertain proposals which would cost jobs and cut so deeply into our long-term growth and competitiveness.

"We have a tough regulatory system in this country, so these changes are completely unnecessary.

"It's alarming the Commission is still turning a deaf ear to calls from businesses, trade unions and pension funds to bin these proposals.

The pensions minister Steve Webb described the Commission's plans as "reckless" and aimed to tackle a problem that does not exist.

He told Sky News: "The problem with a pension fund is that it's a liability for decades so you wouldn't have to pay a lot of this money for 10, 20, 30 years.

"What these European rules would require firms to do is shovel cash in now for liabilities that won't happen for decades."

The Government said it remains in discussion with the Commission about its proposals.

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Labour To Oppose 1% Cap On Benefits Payments

Labour has vowed to oppose the 1% cap on benefits payments proposed by Chancellor George Osborne in his Autumn Statement.

Ed Balls confirmed the decision at Treasury Questions in the House of Commons, claiming the measure is unfair.

The Chancellor sprung a political trap by including the cap in his mini-Budget, attempting to dare Labour to choose between the "strivers" and the "skivers".

Under the move, benefits and tax thresholds will only rise by 1% for the next three years - a below-inflation increase set to save £3.7bn.

There has been anger that maternity pay and child benefit will be among the payments hit by the squeeze, although the basic state pension, carer and disability payments are exempt.

The cap will have to be introduced via new legislation. A Welfare Uprating Bill will be tabled shortly, which Labour will vote against.

Mr Balls said: "We will look at the legislation but, if they intend to go ahead with such an unfair hit on middle and lower income working families while giving a £3bn top rate tax cut, we will oppose it."

Mr Osborne wants to break the link between welfare payments and inflation, which earlier this year saw benefits uprated by 5.2%.

He has previously said workers resent leaving their homes early in the morning while benefits-claiming neighbours sleep on with their curtains drawn.

But Mr Balls, speaking in the Commons, claimed the Chancellor was making "striving, working families pay the price for his economic failure".

Mr Balls added: "Sixty per cent of families hit by the tax changes are in work.

"According to the Institute for Fiscal Studies, as a result of the Autumn Statement measures, a working family - the average one-earner couple - will be £534 a year worse off by 2015.

"These are the very people who pull up the blinds and go to work."

But Mr Osborne said: "Of course tax credits go to some people in work, but we are also helping those people with a personal allowance increase, and working households are £125 better off."

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Northern Rock To Refund £270m To Customers

Northern Rock Asset Management (NRAM) - the state-owned part of the defunct lender - is to refund a total of £270m to customers.

The bank will pay an average of £1,775 to each affected customer after failing to disclose information in documents and letters in 2008.

The Chancellor told Parliament that 152,000 customers who had loans below £25,000 were affected and blamed "an error originating in 2008 when Northern Rock was in public ownership".

"Some customers with certain types of mainly unsecured personal loans were not given all the mandatory information in their statements which they were entitled to by law," George Osborne added.

The chief executive of UK Asset Resolution - NRAM's holding company - Richard Banks said: "We are determined to do the right thing for customers and the taxpayer.

"We will be writing to all customers who are affected and advising them on next steps."

Northern Rock was split into two separate companies in 2010 – Northern Rock plc, which was sold to Virgin Monday earlier this year, and NRAM.

At the height of the financial crisis, the troubled bank was forced to rely on funding from the Bank of England to keep it from collapsing

Treasury Economic Secretary Sajid Javid said the refunds are "likely to increase public sector net borrowing for 2012/2013."

But he added that they are "not expected to delay materially" the timings of NRAM's repayment of £19.6bn Government funding.

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Shale Gas Drilling 'Huge Boost' To UK Economy

By Richard Suchet, Sky News Reporter

Drilling for shale gas could create "tens of thousands" of jobs in the UK and generate vast sums of money for the Treasury, according to a UK-based exploration company.

Cuadrilla chief executive Francis Egan has told the Commons Energy and Climate Change Committee that the controversial process will also reduce Britain's dependency on imported gas.

Opponents say the method of hydraulic fracturing - or 'fracking' - which involves pumping water into rock to push out natural gas, carries numerous environmental risks.

But Mr Egan insists there are huge benefits, and that everything is being done to negate the dangers.

"The UK is importing most of its gas. In 10, 20, 30 years it will be importing virtually all of its gas," he said.

" ... If [fracking] is successfully developed, it will generate significant tax revenues and employment."

Bulgaria and France have both banned shale gas exploration, and in Britain it has yet to receive full Government approval.

"The only way we can prove the safety of shale gas exploration is by doing it and demonstrating we can be good neighbours," Mr Egan told the committee of MPs.

He added: "I think that's the case for any industry that's starting up. You have to do it, show that you are doing it properly and then you win trust. We can't talk the gas out of the ground."

Cuadrilla Resources estimates that its Bowland Basin site in Lancashire contains as much as 200 trillion cubic feet of gas.

Engineers at work on the drilling platform of a shale fracking facility

If even a fraction of that is extracted, the company says it could make a significant contribution to Britain's energy supplies and be good news for the economy, with the potential to create "thousands to tens of thousands" of jobs.

"We have spoken of meeting 25% of the UK's gas demand. You can't do that without generating thousands of jobs.

"The oil and gas industry creates jobs across the full range of disciplines: Engineering jobs, accounting jobs, technician jobs, security guard jobs and out from that into the supply business," said Mr Egan.

Corin Taylor from the Institute of Directors added: "A lot of these jobs will be in parts of the UK that really need them so I think it's an important part of re-balancing the economy."

Also giving evidence to the committee was Graham Tiley, general manager of Shell, Ukraine.

He told the panel he sympathised with public concern and that the term "unconventional gas" had been misunderstood.

"The term 'unconventional' has a very specific meaning. It means 'unconventionally trapped hydrocarbons'.

"It's fine for a bunch of geologists to throw these words around but when that comes out in a public sphere, it leads to concern and unease.

"Hydraulic fracturing is a very descriptive and straightforward term. That's what you do. You use water to fracture the rock.

"Unfortunately the shorthand version of 'fracking' has become almost an accepted swear word these days.

"I think what the industry has recognised is that we have done a very poor job of communicating our activities to the public," he said.

Mr Egan also told MPs that the drilling company is still in consultation with the Treasury about tax arrangements.

He said: "We're potentially at the point of starting a whole new industry in the UK.

"If that industry is allowed to grow up into a tax-paying adult, it will pay a lot of tax. But it is in its infancy.

"There is a concern that the infant could be strangled at birth if the tax system isn't appropriate."

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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 Branson 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 U.K. 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 trans-Atlantic 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 offerefd 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.

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HSBC To Pay £1.2bn In Money Laundering Case

Record Fine: HSBC's Statement

Updated: 8:39am 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.

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 issues 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 programmes."

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. 

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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.

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British Airways Plans Hundreds Of Job Cuts

British Airways is entering talks with a union on plans to cut 400 jobs among cabin crew.

The airline, which is owned by International Airlines Group (IAG) and operates alongside Spanish carrier Iberia, said it was beginning a 90-day consultation with Unite on the possibility of making voluntary redundancy available.

BA stressed there would be no compulsory job losses.

Those being offered the redundancy package would be senior cabin crew employees, BA said, such as pursers and cabin service directors who work exclusively on long-haul and exclusively on short-haul services.

BA, which suffered a damaging cabin crew dispute over jobs, pay and working conditions that ended last year, now has around 14,000 cabin crew in total.

That strike was resolved after the creation of IAG, which is led by BA's former chief executive Willie Walsh.

His departure to IAG was seen as crucial to the resolution of the dispute amid a bitter war of words with union bosses.

IAG is currently locked in a row with Iberia staff over plans to shed workers at the Spanish loss-maker.

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Tax: Starbucks, Google And Amazon 'Immoral'

By Darren McCaffrey, Sky News Reporter

Starbucks, Google and Amazon have been accused of "immorally" avoiding paying their fair share of tax in the UK, as the Chancellor prepares a blitz on tax dodgers.

MPs on the Public Accounts Committee criticised the companies for the "unconvincing and, in some cases, evasive" evidence they gave on why their corporation tax payments are so low.

Starbucks told the committee it had made a loss for 14 of the 15 years it has operated in the UK, a claim the committee said it found "difficult to believe".

In a report, the MPs added that Amazon's representative left them frustrated because he was "evasive and unprepared to answer legitimate questions".

They also said Google "undermined its own argument" that profits should be taxed in the countries where they are made because it transfers its non-US profits, including from the UK, to Bermuda, which has a more advantageous tax system.

Starbucks says it is reviewing its tax arrangements

Margaret Hodge, who chairs the Public Accounts Committee, said: "Global companies with huge operations in the UK generating significant amounts of income are getting away with paying little or no corporation tax here.

"This is outrageous and an insult to British businesses and individuals who pay their fair share.

"Corporation tax revenues have fallen at a time when securing proper income from taxes is more vital than ever.

"There is little credible information about what is going on. The evidence we took from large corporations was unconvincing and, in some cases, evasive."

Starbucks has now declared that it is preparing to change its tax affairs so that it pays more into Britain's coffers and there is growing pressure on others to follow suit.

The report was published as George Osborne prepares to unveil a £154m crackdown on wealthy companies and rich individuals who dodge tax.

Officials will be ordered to use the cash to draft in an army of investigators to target high earners who aggressively avoid or evade paying tax.

The money will also fund extra staff to speed up work challenging multinationals' transfer pricing arrangements to stop global companies using legal loopholes to shift profits out of the UK.

However, Mr Osborne has warned against pricing Britain out of the world economy.

"If we make our taxes less competitive, that will just mean more companies stay out of Britain," he said.

But Katja Hall, from the Confederation of British Industry, told Sky News that tax avoidance is not a widespread problem.

"Companies pay £163bn in tax in the UK every year and the large majority of companies pay the right amount of tax," she said.

The Institute of Directors condemned the "hectoring from Westminster" and called for the tax system to be simplified.

Director General Simon Walker said: "If these firms are immoral to take advantage of tax loopholes, then politicians are surely immoral for creating the loopholes in the first place.

"Taxes should be simpler to cut down on avoidance and relieve the burden our complex tax code puts on companies who do try to do the right thing."

An HMRC spokesman said: "HMRC ensures that multinationals pay the tax due in accordance with UK tax law. We have been very successful in reducing tax avoidance by large businesses in recent years.

"We relentlessly challenge those that persist in avoiding tax and have recovered £29bn additional revenues from large businesses in the last six years, including £4.1bn in the last four years from transfer pricing enquiries alone. These figures speak for themselves."

The latest tax crackdown will be outlined in this week's Autumn Statement, which is also expected to contain bleak news for benefits claimants.

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Exclusive: Germans Set To Feast On KP Snacks

By Mark Kleinman, City Editor

One of Germany's biggest food companies is poised to snatch control of household name British food brands including Hula Hoops and KP Nuts after a £400m-plus raid on their owner.

I understand that Intersnack, which has been in talks with United Biscuits' owners for several months, is close to seeing off rivals in the auction of the British food producer's snacks division.

If successfully completed, a deal would make Intersnack one of the most prominent food companies in Britain.

UB's snacks arm owns the McCoy's, Mini Cheddars, Skips and Phileas Fogg brands, some of which have been staples in British consumers' kitchens for decades.

People close to the talks cautioned tonight that Intersnack and UB had yet to reach a formal deal and that the negotiations could still fall through.

The German group has been vying with a number of private equity firms to win control of KP Snacks.

Capvest, a specialist investor in the consumer goods sector, also tabled an offer for the UB division but is thought to have been outbid. Pamplona Capital, another private equity firm, and Calbee, a Japanese food company, are not thought to have submitted formal bids.

UB is owned by Blackstone and PAI Partners, two private equity firms. They will continue to own the group's biscuits division, which is home to brands including Penguin, McVitie's Jaffa Cakes and Go Ahead, with a sale of that unit possible next year.

Credit Suisse is advising Blackstone and PAI, while Goldman Sachs is advising Intersnack. The current owners tried to sell UB in its entirety two years ago but failed to secure a deal following talks with Bright Food, a Chinese company.

Bright Food subsequently acquired Weetabix, the breakfast cereal producer, a takeover that ranked among the most significant so far of a western brand by a Chinese counterpart.

Blackstone and PAI declined to comment.

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Christmas Shopping Leaves Retailers Nervous

There are signs that Christmas shoppers are adopting a "wait and see" approach in the hope of a price war among retailers in the run-up to December 25.

The latest sales figures from the British Retail Consortium (BRC) show a rise of 0.4% during November, a figure it said was flattered by weak comparisons with last year.

The organisation stated that shops were in a "state of nervousness" about the festive season as a result.

Its survey quoted several toy retailers as saying that Christmas shopping was starting later this year, while online sales also delivered their third worst performance of the year.

Retailers had been hoping for stronger November trading after a battering the previous month when retail sales volumes dropped 0.8% month-on-month, amid declining consumer confidence and rising inflation.

David McCorquodale, head of retail at BRC's survey partner KPMG, said November had been a cautious month: "It appears that consumers know they have to spend before Christmas but are holding off for as long as they can to see if there might be bargains available in the next few weeks.

"Pricing throughout the month and strategic promotions will be fundamental in a key month," he said.

But the BRC said tablet computers were a strong driver of growth in the electrical goods market in November, which also benefited as people bought cooking items ahead of Christmas.

Clothing sales were boosted by the fashion for all-in-one pyjamas, known as onesies.

Singers Rihanna and Robbie Williams are among the celebrities who have stepped out in their own versions of the adult romper suits.

The colder weather helped boost winter clothing ranges and boots.

Food sales faded throughout the month but the launch of festive Christmas adverts helped boost sales of Christmas crackers and confectionery.

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Thomson Owner Paid 'Little' UK Corporation Tax

Tui Travel paid just £1.1m corporation tax in the UK over the last year, despite a hike of almost 40% in statutory profit.

The boss of the British company, which owns Thomson and First Choice among others, told Sky News the low figure was a result of restructuring at the company. 

"Within the UK, because we have accumulated tax losses as a result of restructuring the business, there's little or no tax being paid in the UK," he said.

"But that's as a consequence of these carried forward losses that we have.

"Once those losses have been utilised, then we will pay tax in the normal way as we comply with all the laws of the lands that we operate in."

The losses were incurred as a result of 2010's ash cloud - which caused huge problems to the travel industry - and have been brought forward, offsetting the company's taxable profits in the UK.

"This is fully compliant with UK tax law, perfectly legitimate and normal practice," a Tui Travel spokesperson said. 

Tui owns around 3,500 travel agents and a fleet of 145 aircraft

The comments came as the company reported a rise in statutory profit before tax for the year to the end of September 30 to £201m, compared with £144m the previous year.

The underlying performance of the business - when one-off items are not included - also performed well, with pre-tax profit up 8% to £390m.

Bookings were up across Britain, Germany and Nordic countries, but fell 28% in France as the company reduced capacity in the country.

Mr Long described the year as "one of many successes".

"We have delivered record Group profits while the UK achieved outstanding results both in terms of profit and margin all against a backdrop of continued economic uncertainty," he said.

"Our proven strategy continues to evolve and drive strong trading momentum throughout the group."

He added that, with the exception of France, trading for both winter 2012/13 and summer 2013 was encouraging.

Last week, Tui Travel's rival Thomas Cook said its turnaround plan had taken its toll, causing deeper losses.

The 171-year-old company reported a statutory loss of £590m for the 12 months to the end of September - worse than the £518m loss recorded the previous year. 

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Household Spending Up But Families Get Less

The average UK household spent £483.60 a week in 2011 - the highest amount ever recorded by the Office for National Statistics (ONS).

Last year's level was £10 higher than in 2010, due in part to increases in transport and housing costs.

However, although the average family's weekly spend hit a record high in cash terms last year, it actually fell when adjusted for inflation.

British households spent £498.20 in 2010 when adjusted for inflation, which means spending fell in real terms by 2.9% the following year.

In cash terms, the highest spend in 2011 was on transport, which rose by 80p to £65.70 per week, driven by hikes in petrol and diesel prices.

Rents rose by 70p to cost families' £40.60 a week in 2011

A rise in spending on cinema tickets, leisure classes and sporting events meant that recreation took up the next highest chunk of families' spending, at almost £64 a week.

Housing, fuel and power represented the third largest amount of households' spending at £63.30 a week in 2011 - a weekly increase of £2.90.

Rents were up by 70p to reach £40.60 and average spending on electricity, gas and other fuels was £22.10 per week - another increase of 70p.

But some types of household expenditure fell in 2011.

Spending on household goods and services was down by £4.10 to £27.30 a week, mainly due to a significant drop in the number of people buying furniture and clothing.

There was a small fall in expenditure on audio-visual equipment - including computers - which edged down by 90p to £6.30 a week.

London had the highest average spend - at £574.90 - driven by high housing and fuel costs.

Spending on audio-visual equipment - including computers - fell last year

Weekly spending was lowest in the North East, where the total came to £384.20, Wales with £398.20 and Yorkshire and the Humber with £410.10.

The ONS said there were "notable differences" in the way people of different incomes chose to spend their money.

The 10% of households with the lowest incomes spent a significantly larger proportion of their weekly total on housing, fuel and power, and food and non-alcoholic drinks than the 10% with the highest incomes. 

Better-off households spent a greater proportion on transport and recreation and culture. 

Differences in income also had an impact on internet access - with just four out of 10 low income families having the internet at home, compared with 99% of the highest income households.

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Royal Mail Posties' In Boycott Threat

Postal workers are being urged to refuse to deliver letters from anyone other than Royal Mail in the New Year, in a move which threatens to cause disruption.

Around half of the letters delivered by Royal Mail are collected and sorted by private companies like UK Mail and TNT, who then pay Royal Mail a fee for delivery.

But the Communication Workers Union (CWU) has claimed this arrangement costs Royal Mail money and has led to job losses, price rises and fewer services.

The CWU argues that competition on deliveries is "undermining" the same-price-goes-anywhere universal service, with companies other than Royal Mail not having to meet service and pay standards.

A ballot on a boycott will be held after Christmas.

If passed, this would mean that any mail sent via one of Royal Mail's competitors would not be delivered, the union warned.

Billy Hayes, general secretary of the CWU, said: "Today we're launching a major initiative to protect postal services in the face of mounting threats to jobs and services."

His deputy, Dave Ward, added: "We are not prepared to stand by and watch the jobs of our members be ruined by unfair competition which could be avoided."

Mr Ward also told Sky News the union was opposed to privatisation of Royal Mail. He said: "No private owner is going to sustain the universal service that doesn't make money."

In response to the boycott threat a Royal Mail spokesman said: "All of the mail that we handle is important to us and needs to be delivered, as we always do, six days a week.

"It is vital to all of us at Royal Mail, to Royal Mail as a business and most importantly to our customers, that the post is delivered."

He added: "As we have previously said, we are concerned about the impact of unfettered direct delivery competition on Royal Mail.

"We will be responding to Ofcom's consultation on direct delivery in due course. Royal Mail supports competition on a level playing field and believes Ofcom should consider competition in the light of its primary duty of securing the six-day-a-week, one-price-goes-anywhere universal service."

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Autumn Statement: £5bn Investment Boost

Deeper cuts in some Whitehall budgets are to be used to fund an extra £5bn investment in schools and other capital projects.

Government departments will be expected to cut day-to-day spending by 1% (£950m) in 2013/14 and 2% (£2.5bn) in 2014/15.

But under plans to be confirmed in the Autumn Statement, health, schools, international aid, HM Revenue and Customs and nuclear decommissioning will all be protected.

The new investment will target transport, skills, science and education, with an extra £1bn for new academies and free schools.

The cuts only directly apply to England but there will be knock-on effects for Scotland, Wales and Northern Ireland under the complicated formula which determines UK funding.

Labour claimed the move was an effective admission that the coalition's spending cuts had been a "catastrophic mistake" that has weakened the economy.

But Tory sources insisted the coalition was spending billions more on capital projects than the Labour plans the Government inherited.

David Cameron said the money would "make our country work better" and Nick Clegg added that it would ensure useful cash is not tied up in Whitehall.

George Osborne has very little wriggle room

Local authorities will be exempt from cuts in the first year because they are already having to cut back to deliver a council tax freeze but they will have to meet the second target.

Meanwhile, the Ministry of Defence will have more flexibility to roll over its underspend to help ease pressure on their budget.

An overhaul of the heavily criticised Private Finance Initiative (PFI) and plans to approve new gas-powered electricity power stations are also expected in Wednesday's mini-budget.

Chancellor George Osborne will outline plans for a "faster and more transparent" system of private funding for public infrastructure projects.

It is understood that safeguards will be built into the new system, to be dubbed PF2, to make sure the costs and risks to the taxpayer are minimised.

These will include limits on the type of services, such as maintenance, that can be incorporated into contracts and more flexible terms allowing the state to opt out.

The taxpayer will also take a minority shareholding in the delivery companies to ensure a share in any profits and allow closer oversight.

Some previous projects have taken up to five years but a new, strict 18-month limit will be imposed on the procurement process and cash reallocated if the deadline is missed.

Efforts will also be made to make the scheme more attractive to long-term investors like pension funds in a bid to reduce the amount of debt involved in the financing.

The reforms will promise more transparency over future liabilities facing the taxpayer, placing a cap on the total charges controversially going "off balance sheet".

Mr Osborne will claim up to £2.5bn in savings has been identified from existing PFI contracts following his review of the "discredited" system.

Safeguards will be built into the new private finance scheme

Set up under John Major's government in 1992, PFI was expanded dramatically under Labour and has been continued under the present coalition administration.

It allows private firms to build, operate and maintain public facilities like hospitals, schools and courthouses under contracts lasting as long as 35 years.

But it has faced harsh criticism over escalating costs, inefficiency and "perverse incentives" to use it over more cost-effective funding methods.

The anticipated approval of up to 30 gas-fired power stations sparked accusations of a "reckless dash for gas" from environmental campaigners.

It is thought Mr Osborne will also try to encourage investment in gas with tax breaks and a new regulatory regime for "fracking" - the extraction of gas from shale.

This week's statement will contain further bleak news for welfare claimants as well as the wealthy in the form of a possible benefit freeze and big cuts to pension tax relief.

And economists expect the Chancellor to make an embarrassing climbdown over one of his key goals - to have debt falling as a share of national income by 2015/16.

He conceded at the weekend that it was "clearly taking longer to deal with Britain's debts, it's clearly taking longer to recover from the financial crisis than one would have hoped".

On the eve of the statement, the British Chambers of Commerce (BCC) became the latest respected body to slash growth forecasts.

It now expects the economy to grow 1.2% in 2013 and 1.8% in 2014, compared with previous estimates of 1.2% and 2.2% respectively.

The organisation demanded a "laser-like focus" from the Chancellor on growth-boosting measures such as delivering key infrastructure projects and creating a business bank.

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