Apple Says Sorry Over China Customer Service

Apple's chief executive has been forced to apologise for its after-sales service in China following weeks of criticism in the country's media.

Government-controlled media across the country had attacked the technology giant's "arrogance" and accused it of "throwing its weight around".

Tim Cook has spoken about the importance of the Chinese market in the past

Critics said faulty iPhones were only repaired under its one-year service policy - not replaced as in other countries - and its warranty was shorter than elsewhere.

China is Apple's second-largest market after the US.

Tim Cook said on the company's Chinese website: "We are aware that owing to insufficient external communication, some consider Apple's attitude to be arrogant, inattentive or indifferent to consumer feedback.

"We express our sincere apologies for causing consumers any misgivings or misunderstanding."

Apple would now offer full replacement of iPhone 4 and 4S devices in China, along with a new one-year warranty, Mr Cook said.

The iPhone 5 already has a similar warranty in place.

He added that he has "much to learn about operating and communicating in China."

Mr Cook has previously spoken about the importance of the Chinese market to the company.

In the first quarter of the year, revenue from Greater China - which includes Taiwan and Hong Kong - hit $7.3bn (£4.8bn) - up 60% from a year before.

The popularity of Apple products flies in the face of China's attempts to push its own brands and develop internationally competitive companies.

Apple's opened its flagship Asia store in Beijing in October

Following the anti-Apple campaign, thousands of Chinese people defended the company on the internet.

They accused the media of hypocrisy for keeping silent when Chinese companies were implicated in other scandals.

China's state broadcaster CCTV was also accused of paying celebrities to post online comments against Apple, in what appeared to be a grass-roots campaign.

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PRA Covers Cypriot Deposits In UK Accounts

Britain's new banking watchdog has said that local deposits in an ailing Cypriot bank will be transferred and given protection for up to £85,000.

The Bank of England's new Prudential Regulation Authority (PRA) said UK deposits in the Cyprus Popular Bank UK, operating under the name of Laiki Bank UK, will be moved to the Bank of Cyprus UK (BoC UK).

The transfer will allow the BoC UK to offer deposit protection under Britain's banking rules.

The switch in accounts follows a bailout for the government of southern Cyprus and restructuring of its banking sector, amid an unprecedented two-week closure of branches.

"The agreement does not affect access to bank accounts," the PRA said in a statement.

"And therefore all customers who had an account with Laiki Bank UK will be able to access funds as normal and do not need to do anything."

As a result customers, including those with current accounts in credit, will not be hit by any Cypriot levy on their accounts - potentially as high as 60% for large depositors - after the transfer and will be able to access their accounts as normal.

But customers who have allowed their Laiki savings or deposit accounts to enter overdraft status will not be transferred to BoC UK and will see their accounts frozen.

The PRA has been working on plans for a resolution to protect UK branch customers of Laiki after Cypriot authorities announced it would shut and merge with Bank of Cyprus.

Account holders in southern Cyprus were locked out of banks for two weeks

Deposits of more than 100,000 euros (£85,000) at the Bank of Cyprus will lose 37.5% under a bank levy being imposed across the country, but a second raid on these accounts could see depositors lose up to 22.5% more to prop up the bank's reserves.

UK Chancellor George Osborne said last week in a hearing with MPs on the Treasury Select Committee that he wanted a solution for customers of the UK arm of Laiki.

Laiki operated as a "branch" in the UK, which meant customers would have been subject to the levy, but the transfer will see them become part of Bank of Cyprus UK - a UK subsidiary fully regulated under British rules.

Cyprus has agreed to make local depositors contribute to a financial rescue in order to secure 10bn euros (£8.5bn) in loans from the eurozone and the International Monetary Fund.

The PRA said customers in overdraft will need to contact Laiki Bank UK, while those who had an overdraft but were in credit will need to contact Bank of Cyprus to apply for a new facility.

Mortgage borrowers and loan customers will instead be transferred to Bank of Cyprus in Cyprus and will be contacted in due course, but should continue making repayments as normal.

The move by the PRA means insured and uninsured deposits of £270m in some 15,000 accounts now come under the added protection of UK law.

:: On April 1 the PRA took responsibility from the Financial Services Authority for regulation and supervision of some 1,700 banks, building societies, credit unions, insurers and major investment firms.

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Bankrupt Stockton Is Biggest Failing US City

A federal judge has signed off on years of pain for the residents of Stockton by allowing the northern Californian city to enter bankruptcy.

The ruling will give the municipality special financial protection so it can continue providing basic services.

But it also triggers a nationwide debate over who should get paid first by America's cash-strapped cities - retirement funds or creditors.

Stockton, a city of nearly 300,000 people, has tried to restructure some debt by slashing employment, renegotiating labour contracts and cutting health benefits for workers.

Library and recreation funding has been halved, and the scaled-down police department only responds to emergencies in progress.

For sale signs are dotted across the city of high crime and unemployment

The city crime rate is among the highest in America.

The potential constitutional question in the Stockton case is whether US bankruptcy law trumps a California law that says money owed to the state pension fund must be paid first.

In making his ruling, US Bankruptcy Judge Christopher Klein disagreed with creditors who argued that Stockton failed to pursue all avenues for straightening out its financial affairs.

A statement released by creditors said the group "respectfully disagrees with the court's ruling".

The legal team for those creditors declined to say whether it would ask Judge Klein for permission to appeal his decision - a requirement of bankruptcy code.

Creditors want ex-city workers like Pat and Jesse Hernandez to take a hit

Since cities cannot liquidate assets, those that declare bankruptcy must come up with a plan for creditors to forgive some of the debt.

Holders of the biggest portion of Stockton's debt insured $165m in bonds that the city issued in 2007 to keep up with payments to the California Public Employees Retirement System, as property taxes plummeted during the recession.

Stockton now owes about $900m to cover pension promises - by far the city's largest financial obligation. 

Many struggling cities across California, notably San Bernardino, are in the same situation.

So far, Stockton has kept up with pension payments while reneging on other debts, maintaining it needs a strong pension plan to retain its pared-down workforce.

Attorneys for creditors say that is unfair and city employees, who shared the wealth during the good times, should now endure some of the pain.

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Whisky Galore! Scotch Exports Hit New High

Global Scotch whisky exports hit a record in 2012 and now account for around 80% of Scotland's total food and drink foreign trade.

The value of exports last year reached £4.27bn - amounting to more than £11m in foreign sales daily.

The foreign whisky trade has now grown for eight consecutive years - rising 87% in the last decade - and is now responsible for a quarter of UK total food and drink exports.

According to the Scotch Whisky Association (SWA), exports have been boosted by emerging markets and a return of confidence in countries with an established taste for the liquor.

Although overall sales only increased by 1% globally last year amid ongoing economic uncertainty, single malts and premium blends increased as standard bottle sales struggled.

Single malt now accounts for more than 18% of total whisky export sales and stand at £778m, up from £268m a decade ago.

SWA Chief Executive Gavin Hewitt said: "Scotch whisky continues to lead the way for UK food and drink exports.

"A combination of successful trade negotiations, excellent marketing by producers, growing demand from mature markets, particularly the USA, and the growing middle class in emerging economies helped exports hit a record £4.3bn last year.

"We are contributing massively to the government's wish for an export-led recovery."

France remains the biggest market by volume of standard 40% alcohol bottles, with 153.9 million 700ml bottles sold.

Meanwhile, the US remains the biggest market by value, with sales breaking through the £700m barrier for the first time to reach a total of £778m.

However, on a per capita basis, the US only ranks 10th on global consumption.

Distribution hub Singapore is ranked first per capita followed by France, Spain, Australia and Venezuela.

Other keen whisky drinkers included Germany, South Africa and South Korea, along with Thailand, Mexico and Brazil.

Although exports to mainland China increased by 8% in 2012 it remains a minor market, with 22.9 million 700ml bottles sold.

With a population of 1.35 billion, its whisky volume consumption is virtually identical to offshore Taiwan, which has a population of just 23 million.

Producers plan to ramp up further production as the number of whisky drinkers rises in Asia and the Americas.

"There is confidence in the future of the industry, illustrated by the £2bn capital investment that Scotch whisky producers have committed over the next three to four years," Mr Hewitt said.

"New distilleries have opened and older ones brought back to use to meet rising demand."

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Mortgage Approvals Fall Despite Credit Boost

The number of loan approvals for house purchase fell by 4.7% last month when compared to January, official data has shown.

The Bank of England said that 51,653 mortgages were approved in February - worth a total of £7.7bn.

The figure marked the second consecutive month of falls and was significantly below the 54,187 approved in January.

It comes despite an increase in the amount of credit available as a result of the Government's Funding for Lending scheme - which aims to help borrowers by giving lenders access to cheaper finance.

Chancellor George Osborne outlined the Help to Buy scheme in the Budget

The number of mortgages on the market has increased by around one third since the programme was launched in August.

Last week, building society Nationwide credited it with helping to reduce mortgage costs and increase credit availability.

Howard Archer, chief UK and European economist at IHS Global Insight, said the tough economic conditions were likely to weigh down house prices in the coming months.

"Despite the dip in mortgage approvals at the start of 2013, the majority of recent data and survey evidence suggest that housing market activity has firmed modestly overall in recent months, but remains far from racing ahead," he said.

"House prices may very well eke out a small gain over 2013 supported by modestly increased activity.

"However, it remains hard to see house prices making a decisive move upward in 2013 given the still difficult and uncertain economic environment."

He stressed that December's 11-month high of 55,000 was still significantly below the average of more than 85,000 a month seen for the last 20 years, demonstrating that the market still has some way to recover.

In the Budget, the Government announced new plans to bolster the UK's housing industry.

Chancellor George Osborne outlined a scheme to help more people buy a home with just a 5% deposit, known as Help to Buy.

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Cyprus: Finance Minister Quits Amid Bank Probe

Cyprus has appointed a new Finance Minister, just hours after the incumbent resigned amid the launch of an investigation into its dramatic banking sector bailout.

The Greek Cypriot government named Harris Georgiades as the new minister to replace Michael Sarris.

Mr Georgiades will be sworn in on Wednesday, a government statement said.

Mr Sarris resigned after the investigation was ordered into how the country's economy nearly collapsed last month.

President Nicos Anastasiades confirmed he had accepted the resignation of Mr Sarris.

Mr Sarris has faced strong criticism for his handling of Cyprus's negotiations with its international creditors.

He also headed the country's troubled Laiki bank last year in a bid to save it from collapse.

Mr Sarris told reporters he decided to step down to ease the investigation, which was ordered on Tuesday.

He was previously the Labour Minister and Deputy Finance Minister in Cyprus' embattled government, which assumed power barely a month ago.

Cyprus has been given a 10bn euro (£8.5bn) bailout by its European partners and the International Monetary Fund, after its bloated banking sector threatened to destroy the economy.

Large accounts have been hit with a hefty levy and the southern Cypriot banking system endured a forced bank holiday for two weeks amid fears of a run on banks.

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Benefits: Osborne Defends Welfare Shake-Up

George Osborne has robustly defended the Government's controversial benefits shake-up - insisting Britain can no longer afford to reward people who do the "wrong thing".

Speaking at a supermarket distribution centre in Kent, the Chancellor condemned the old system as "fundamentally broken" and warned Labour that they were out of step with public opinion on the issue.

Mr Osborne insisted that nine out of 10 working households will be better off as a result of the welfare and tax changes.

He said people in Britain understood that the welfare system needed to change.

"In 2010 alone, payments to working age families cost £90bn," he said.

"That means about one in every £6 of tax that working people like you pay was going on working age benefits. To put that into perspective - that's more than we spend on our schools."

He pledged to make sure people were better off in work than out, thereby making the system much "fairer". Changes, such as cutting housing benefit for social housing tenants deemed to have a spare bedroom, were simply asking people on welfare to take the same choices as working families, he said.

Mr Osborne: People will no longer be better off on the dole than in work

The Chancellor told the Morrisons workers: "For too long, we've had a system where people who did the right thing - who get up in the morning and work hard - felt penalised for it, while people who did the wrong thing got rewarded for it.

"That's wrong ... This month we will make work pay.

"What this Government is trying to do is to put things right. We're trying to make the system fair on people like you, who get up, go to work, and expect your taxes to be spent wisely.

"And we're trying to restore hope in those communities who have been let down by generations of politicians, by getting them back into work."

Wider welfare and tax changes coming into force this month will also see council tax benefit funding cut, and working-age benefits and tax credit rises pegged at 1% - well below inflation - for three years.

Disability Living Allowance is being replaced by the Personal Independence Payment (Pip), while trials are due to begin in four London boroughs of a £500-a-week cap on household benefits, and of the new universal credit system.

Critics of the Government's housing benefit reforms call it a 'bedroom tax'

Mr Osborne dismissed "depressingly predictable outrage" about the reforms, claiming they would help the most vulnerable and "give people a ladder out of poverty".

He said: "Because defending every line item of welfare spending isn't credible in the current economic environment.

"Because defending benefits that trap people in poverty and penalise work is defending the indefensible.

"The benefit system is broken. It penalises those who try to do the right thing and the British people badly want it fixed.

"We agree - and those who don't are on the wrong side of the British public."

But Shadow Chancellor Ed Balls told Sky News that "the truth" was that households were losing out because of the reforms.

Citing an independent study by the Institute for Fiscal Studies showing the average family would be £891 worse off this year as a result of all the coalition's changes since 2010, he added: "Working families are worse off and now the Government is cutting the top rate of income tax only for the richest people.

"A millionaires' tax cut paid for by millions of working people. That's not fair, that's not right."

Mr Duncan Smith has been urged to prove a claim he could live on £53 a week

Changes that mean the rate for top-rate taxpayers has been reduced from 50% to 45% also come into effect this month.

Sky News Deputy Political Editor Joey Jones said Mr Osborne's speech was "combative" and "aggressive".

"He has not apologised for the stance he is taking," he said.

It came a day after Work and Pensions Secretary Iain Duncan Smith, the architect of the reforms, was facing a a growing backlash after suggesting that he could get by on £53 a week, rather than his current after-tax income of £1,600 a week.

In the wake of the comment in a radio interview, tens of thousands of people have signed a petition on the change.org website, calling for the minister to try surviving on that money for a year.

During his speech on Tuesday Mr Osborne refused to be drawn on whether he could manage on £53 a week. In response to a question, he said: "I don't think it's sensible to reduce this debate to one individual's state of circumstances.

"We have a welfare system where there are lots of benefits available to people on very low incomes. 

"This debate is not about any individual, it's about creating a welfare system that rewards work."

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Triple-Dip Recession 'To Be Avoided': BCC

The UK's manufacturing and services sectors have strengthened in the first quarter of the year, according to the British Chambers of Commerce (BCC).

The group's survey of more than 7,000 businesses revealed that export orders and sales in services were particularly strong - close to their all-time high of 1994.

Investment levels and business confidence about the next 12 months also increased over the period, the BCC said.

It comes ahead of GDP figures for the first quarter of the year - which, if negative, would mean that Britain had slipped into its third recession in less than five years.

But the BCC's chief economist, David Kern, said its survey results showed the economy had continued to grow at the start of 2013.

"The survey reinforces our assessment that recent GDP figures published by the Office for National Statistics have exaggerated the weakness of the UK economy and the volatility in output," he said.

"If an announcement of negative growth in the first quarter is misleadingly described as a triple-dip recession, confidence will again be damaged unnecessarily."

The EEF said the poor state of the UK's roads were hitting businesses

The BCC warned that despite the economic improvements, most of the group's key indicators remain below their pre-recession levels, last seen in 2007.

But the survey's positive report on Britain's manufacturing contrasts with separate figures which showed a contraction in the sector for the second consecutive month in March.

The Markit/CIPS manufacturing purchasing managers' index came in weaker than forecast for the month, but was slightly higher than February's four-month low.

In response, the EEF manufacturers' organisation said there had been little to suggest the sector had staged a recovery in the first quarter of the year - despite the BCC's survey.

"The continued weakness in the PMI is disappointing overall, but of particular concern is another month of falling export demand," the EEF's chief economist Lee Hopley said.

"While manufacturers have made some good gains in non-EU markets over the past couple of years, the ongoing drag on orders from the eurozone is still significant and likely to impact on prospects over the coming months."

It comes as the group called on the Government to boost spending on roads - ahead of investment in high speed rail.

The EEF said that half of its members said their operating costs were significantly higher because of the poor state of the UK's roads.

It said an independent infrastructure commission should be set up to "take the politics out of" spending plans.

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Greece Jobless Figure: Youth Employment At 58%

Youth unemployment has nearly hit 60% in Greece, new figures on EU unemployment have revealed.

According to statistical agency Eurostat's latest available figures, the jobless rate for young Greeks hit 58.4% in December.

The figure is expected to worsen before the start of the traditional summer tourist season.

Meanwhile, Eurostat said February unemployment for the under-25s topped 55.7% in Spain, 38.2% in Portugal and 37.8% in Italy.

The EU described the latest level of unemployment across the eurozone, which stood at 12% for February, as "unacceptable".

With more than 19 million people on unemployment benefits, the EU said it was a "tragedy" for Europe.

The figures and a weak manufacturing sector report added to the gloom after data earlier this year had encouraged some hope the European economy might finally have touched bottom.

Analysts suggested the jobless figures are set to worsen, with jobless queues likely to grow as the debt crisis continues to sap the economy.

"Such unacceptably high levels of unemployment are a tragedy for Europe," a spokeswoman for EU Employment Commissioner Laszlo Andor said.

"The EU has to mobilise all available resources to create jobs ... young people in particular need help," she added.

Eurostat said unemployment in the 17-nation eurozone at 12% was unchanged from January when the figure was initially given as 11.9%.

In the full 27-member EU, unemployment in February rose to 10.9% from 10.8%, with a total of 26.34 million out of work.

Some 33,000 joined the jobless queues in the eurozone and 76,000 in the EU over the month of February, Eurostat added.

Compared to a year earlier, the increase in registered unemployment was 1.78 million in the eurozone and 1.81 million in the EU.

The highest general unemployment rates in February were found in Spain, with 26.3%, and Portugal at 17.5%.

Greece's was put at 26.4% but the figure is, like that for youth unemployment, for December.

The lowest rates for other states reporting February results were 4.8% in Austria and 5.4% in Germany, Europe's biggest economy.

Across the EU, youth unemployment remains a huge cause of concern, Eurostat said, as the jobless rate average for under-25s sits at 23.9% in the eurozone and 23.5% across the EU.

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Quorn Owner Acquires Taste For Whisky Deal

By Mark Kleinman, City Editor

The investment group which owns the meat-free food range Quorn is in talks to take control of one of Britain's biggest independent whisky distillers.

I understand that Exponent Private Equity is the mystery party which has been holding discussions about a takeover of the Loch Lomond Distillery Company.

A deal would value Loch Lomond at tens of millions of pounds, although the exact price tag is unclear.

Exponent is understood to be the front-runner to acquire Loch Lomond, although other prospective buyers are also in the frame, according to people familiar with the situation.

Sky News reported the potential takeover of Loch Lomond in February.

Exponent, which may acquire Loch Lomond as part of a wider consortium of investors, bought Quorn Foods in 2011, and has broad exposure to other consumer-facing companies.

The private equity group is also a shareholder in Ambassador Theatre Group, HSS, the tool-hire company, and Radley, the premium handbag manufacturer.

If a deal is agreed, it would end the independence of one of Scotland's oldest whisky producers. The family of Sandy Bulloch, Loch Lomond's current chairman, traces its interest in the industry back to 1842, when Gabriel Bulloch partnered JH Dewar in a Scotch wholesaling business in Glasgow, according to the company's website.

Loch Lomond branched out into retail outlets as well as becoming one of the largest independent bottlers of spirits in Scotland. It owns the Glen's vodka brand, which it says is the second-biggest seller in the UK, as well as a bottling plant called Glen Catrine Bonded Warehouse Company.

Media reports last year said that the company recorded a modest rise in turnover from £17.83m to £18.3m in the year to March 31, 2011.

Accounts filed at Companies House show that Loch Lomond made a pre-tax loss of nearly £200,000 during the following 12-month period, with which directors said they were "happy" despite "a demanding year".

Among the claims that Loch Lomond makes about itself is that it is the second-largest family-owned distillery in Scotland and that it is the only distillery in Scotland that produces both grain and malt whisky on the same site.

Its average annual production is 10 million litres of grain alcohol and 2.5 million litres of malt alcohol, the equivalent of 43 million standard bottles of whisky every year.

Loch Lomond is one of the few prominent whisky producers not to count itself among the members of the industry body, the Scotch Whisky Association.

Exponent declined to comment.

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