Glencore Takes $7bn Hit On Xstrata Assets

Glencore Xstrata has written down $7.7bn (£4.9bn) of assets inherited from Xstrata.

It comes as the company announced its half-year results, reporting a 9% drop in pre-tax profit to $6bn (£3.8bn).

It is the first full set of results since Glencore took over Xstrata in May, and reveals a smaller than expected fall in profit.

It is thought mining projects and operations in minerals such as nickel and copper took the brunt of pain, with Xstrata's $5bn (£3.2bn) Koniambo operation in New Caledonia hit hard.

Nickel prices are now less than a third of their 2007 highs and supply continues to outstrip demand.

The mining industry has been struck by billions of dollars in write-downs since the start of the year as prices have weakened.

Chief financial officer Steven Kalmin said: "We just had to value the business with a blank sheet of paper and say what have we acquired.

"There are clearly areas where we have taken a fairly conservative approach to value in the current environment, including the green field, early stage projects in which Xstrata had committed spending."

The merger of Glencore and Xstrata created a company that controls a chain of businesses from mining to refining, storage and shipping of basic commodities like coal, copper and corn.

The company said its net income, which slid 39% to $2.04bn (£1.3bn) in the six months to June, reflected "the broader negative mining industry environment".

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Versace To Build Luxury Macau Hotel Complex

Italian fashion house Versace is set to enter Asia's luxury hotel market.

The company has signed a deal to build its complex at a casino resort in the Asian gambling capital, Macau.

It is a joint venture with the Chinese territory's biggest casino operator SJM Holdings Ltd.

The five-star Palazzo Versace hotel will be part of a resort SJM is building in the former Portuguese colony's Las Vegas-style Cotai strip.

SJM, which is owned by the family of gambling tycoon Stanley Ho, was given initial approval in May to build its first resort in Cotai.

It has been facing competition from rivals including Las Vegas Sands Corp and Galaxy Entertainment Group Ltd.

The complex is expected to open by 2015 and will have 700 gaming tables and 2,000 hotel rooms.

Versace currently has one hotel in Australia and is set to open another in Dubai next year.

The fashion brand's hotel in Macau will be its first in Asia, a region known for its thriving luxury market.

Macau, which is an hour away from Hong Kong by ferry, is China's only legal casino hub.

Gambling revenues there totalled $3.7bn (£2.3bn) in July, up 20% on the previous year.

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Anti-Fracking Protesters Cleared By Police

Police have been forcibly clearing protesters from a road outside a potential site for fracking in Balcombe, West Sussex.

Activists are taking part in a six-day Reclaim The Power demonstration after Cuadrilla began carrying out exploratory drilling at the site.

Hundreds of people have staged noisy protests in the face of a police presence of more than 400 officers.

Campaigners have submitted a formal complaint about the "violent" arrest of one protester, claiming he was detained by an officer without any identifying number.

Police said that 29 people had been arrested at Balcombe for public order offences, including Green Party MP Caroline Lucas.

They were held after Sussex Police served a notice under section 14 of the Public Order Act, believing the crowd might cause public disorder, serious damage to property or serious disruption to the life of the community.

Caroline Lucas joined protesters at the site, and was among those arrested

Shouts of "shame on you" and "no violence" erupted from the crowd as police tried to move the protesters back to the main gate of the site.

Demonstrators chanted: "We are peaceful, what are you?"

The No Dash For Gas group said that the "excessive force" used on one man was caught on camera and is demanding the police officer be suspended.

A protester is removed from the Cuadrilla HQ in Lichfield

It claims: "He was violently arrested, wrestled to the floor, his head pushed into the ground by an officer's hands and knees, whilst the officer in question was not wearing epaulettes with an ID number."

Sussex Police said it was looking into the video and that the officer's epaulette may have fallen or been pulled off.

Vanessa Vine, founder of Frack Free Sussex and Britain and Ireland Frack Free, said the police presence was disproportionately heavy and added that Reclaim The Power were "not nasty, violent people" but "altruistic people who are challenging what the Government is doing".

Protesters glued their hands together through a plastic pipe

Earlier, Sussex Police said on Twitter: "We would like to reiterate that protesters aren't being kettled and are free to leave the site as they wish."

Cuadrilla condemned the "illegal direct actions" against its staff and operations.

Campaigners opposing the controversial process of extracting shale gas blockaded the firm's headquarters while others superglued themselves to the building occupied by a PR firm used by the energy company.

The action at Cuadrilla in Lichfield, Staffordshire, and at PR company Bell Pottinger in central London comes on the first of two days of "mass civil disobedience" which campaigners have pledged to carry out.

Protesters' tents outside the office in Lichfield

In a statement, Cuadrilla said: "Protesters broke into our Lichfield office, harassed our staff and chained themselves to filing cabinets.

"The police are on site dealing with this. We condemn all illegal direct actions against our people and operations."

The firm insisted that the morale of its staff at various sites is "fine", and they and the teams supporting the company are "doing a magnificent job".

"They know that what we are doing is legal, approved and safe, and that shale gas is essential to improve our energy security, heat our homes, and create jobs and growth," the firm said.

"Cuadrilla is rightly held accountable for complying with multiple planning and environmental permits and conditions, which we have met and will continue to meet.

"Clearly we are held to one set of legally enforceable standards while some protesters believe that they can set out and follow their own."

Campaign group No Dash For Gas said six protesters superglued themselves to the glass door of Bell Pottinger at 8am and deployed reinforced arm tubes to stop anyone else getting inside.

Meanwhile, it said 20 protesters shut down the Cuadrilla site in Lichfield by blockading it with their bodies. It said two people inside the building had also hung banners from it saying: "Reclaim the power" and "Power to the people".

A group of around 20 protesters also demonstrated outside the constituency office of Balcombe MP and Cabinet Office minister Francis Maude.

Activists also targeted the home of former Tory minister and George Osborne's father-in-law Lord Howell, who drew criticism recently when he said fracking should take place in England's "desolate" North.

The group erected an estate agent's sign outside the Peer's house reading 'For Shale - Desolate Properties Ltd'.

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Petrol Price Warning As Retailers Forecast Hikes

Fuel prices are set to rise by as much as 5p a litre, according to the Petrol Retailers' Association (PRA).

It comes amid civil unrest in Syria and Egypt as well as a reduction in Libya's oil exports, which are down by a third.

The PRA's forecast follows a rise in Brent crude oil, which pushed past the $110 a barrel mark last week, a 10% increase since the end of June.

Goldman Sachs Group has also predicted that oil prices could go up to $115 a barrel in the 'very near term'.

Brian Madderson chairman of the PRA said: "UK petrol prices have not yet seen the full impact of this crude oil increase due to the rapid and slightly unexpected revaluation of pound sterling from $1.48 to $1.56.

"Therefore it was concerning to read recent comments from the City that the 'pound is overblown' and will soon come hurtling down towards the $1.45 level."

He added: "We calculate at current wholesale prices that this will add a further 5p per litre at the pump before the end of September and hit businesses and households in the pocket at a time when pundits are forecasting a continued increase in retail sales to drive growth in the economy. 

"Should the Middle East tensions escalate further and crude oil prices react accordingly, the Bank of England's new inflation targets could be significantly challenged.

"The sooner the EU Competition investigation into allegations of oil price fixing is completed, the more certain we can be that our retail fuel prices are only being influenced by macro-economic and political factors and not anti-competitive actions of the oil companies."

The average price of petrol across the UK is currently £1.37 a litre, according to Experian Catalist.

The PRA explained that if its predictions are right and prices rise, it will be fast approaching the record high of £1.42 a litre, which the nation saw in April.

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Men Get Bigger Bonuses As Gender Pay Gap Widens

Average bonuses for male managers were twice as much as those of their female counterparts last year, according to new research.

The Chartered Management Institute (CMI) said the gender pay gap was widening as a result of bonuses.

Last year male managers received average bonuses of £6,442, compared to £3,029 for females.

The CMI said that was on top of basic salaries almost 25% higher for men.

The study of 43,000 managers showed the difference in bonuses would equate to over £141,000 more for males, than females doing the same job over the course of a working lifetime.

According to the report, the pay gap is particularly large at senior levels, with female directors paid an average bonus of £36,270, compared to £63,700 for males.

Ann Francke, chief executive of the CMI, said: "Despite genuine efforts to get more women on to boards, it's disappointing to find that not only has progress stalled, but women are also losing ground at senior levels.

"Women are the majority of the workforce at entry level but still lose out on top positions and top pay. The time has come to tackle this situation more systemically.

"If organisations don't tap in to and develop their female talent right through to the highest levels, they will miss out on growth, employee engagement, and more ethical management cultures. And that's not good for business."

Mark Crail of salary specialists XpertHR, which helped with the research, added: "There is no good reason for men to still be earning more in bonuses than women when they are in very similar jobs.

"But it's often the case that men and women have different career paths, with 'male' roles more likely to attract bonuses.

He added: "While women are generally getting lower bonuses than men, especially at senior levels, they may be entering occupations where there is less of a culture of bonus payments.

"The question for employers is why that's the case."

Minister for Women and Equalities Maria Miller said, "These figures are yet another damaging example highlighting that, in the world of work, women still lose out to their male counterparts and that the playing field is far from equal."

It comes as figures from the Office for National Statistics show that £36.9bn was paid out in bonuses in 2012/13.

That is up 1% on the previous year and equates to an average of around £1,400 per employee.

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Mortgage Lending Up By Nearly A Third

Mortgage lending was up by 29% in July compared to the same month last year, new figures show.

The Council for Mortgage Lenders (CML) said that total gross lending increased to £16.6bn in July, up from £14.8bn in June.

It is the highest monthly estimate since before the financial crisis hit, with lending pitched at £18.6bn in October 2008.

CML market and data analyst Caroline Purdey said: "An improvement in sentiment and activity continues to show in the UK housing and mortgage markets, with a more positive picture also starting to emerge in the economy.

"Our forward estimate of gross mortgage lending in July reinforces a growing evidence base of a strengthening in the housing and mortgage markets."

The lift follows Government initiatives to boost the housing market, which include the Funding for Lending and Help to Buy schemes.

Persimmon also announced strong results on the same day as the CML figures.

The housebuilder's pre-tax profit jumped by 40% to £135m in the first six months of 2013.

Bovis Homes previously reported its half year profits rose by 19% to £18.6m, with average prices up 15% to £188,500.

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Tax Office Warns Football Clubs Over Low Pay

By Enda Brady, Sky News Correspondent

Dozens of top-flight English football clubs are to receive a letter from tax inspectors warning them that they must pay staff the minimum wage or face a fine of up to £5,000 and potential prosecution.

HM Revenue and Customs (HMRC) says it will soon begin "targeted checks" amid claims that some club mascots are not paid at all for their match-day work.

National minimum wage laws make it illegal not to pay people classed as workers.

"Paying the National Minimum Wage (NMW) is not a choice, it's the law," said Michelle Wyer, assistant director of HMRC's minimum wage team.

"It can't be right that as some players are paid millions of pounds, other members of staff are paid below the legal limit.

"HMRC enforces the rules, protecting workers from rogue employers and ensuring they get at least the wage to which they are legally entitled.

"Where an employer ignores these rules, we will take steps to ensure arrears are paid out in full and the employer fined. In the most serious cases, criminal prosecution can follow."

The move is being described as "pre-emptive" ahead of a "series of targeted checks" within football after HMRC received complaints about non-payment from at least one current club mascot.

In April Swansea City and Reading advertised for unpaid interns, including one position which lasted for a year.

Many people will be surprised that this happens within football - where some players can earn as much as £250,000 per week - but given the high profile nature of the English game clubs will always have a ready supply of young people keen to break into what they see as a glamorous, attractive industry.

Last year HMRC enforcement action resulted in 708 employers receiving automatic penalty charges of up to £5,000 and 26,519 employees receiving back pay totalling over £4m, topping up wages that had previously been below the legal minimum rate.

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Gary Bolton Jailed Over Fake Bomb Detectors

A businessman has been sentenced to seven years in prison for making and selling fake bomb detectors.

Gary Bolton, 47, made millions of pounds selling the devices around the world, boasting they could detect explosives, drugs, ivory, tobacco and even money.

In actual fact they consisted of nothing more than empty boxes with handles and antennae which he made at home and at his Global Technology Ltd offices in Kent.

He denied two counts of fraud as a judge at the Old Bailey described the equipment as "useless" and "dross".

Bolton had background in research or security

Sky's crime correspondent Martin Brunt, at the court, said Bolton spent £1.82, plus the glue and antennae, on each product and then sold them for up to £15,000 each.

The court was told Bolton's company had a turnover of almost £3m, with up to 5,000 devices made.

Prosecutor Richard Whittam QC said tests proved the detectors, first called the Mole and later remarketed as the GT200, performed no better than random searches for explosives.

Bolton claimed they worked with a range of 700 metres at ground level and 2.5 miles (4km) in the air and said they were effective through lead-lined and metal walls, water, containers and earth.

But "double-blind" tests on a Mole device as far back as 2001 showed it had a successful detection rate of just 9%.

Sentencing the father-of-three, judge Richard Hone QC said Bolton had maintained the "little plastic box" was a piece of working equipment, and that he continued to "peddle" it to scores of international clients - including for use by armed forces - despite evidence proving it was "useless".

He added: "You were determined to bolster the illusion that the devices worked and you knew there was a spurious science to produce that end.

"They had a random detection rate. They were useless.

Bolton's company had a turnover of almost £3m

"Soldiers, police officers, customs officers and many others put their trust in a device which worked no better than random chance.

"The jury found you knew this but you carried on. Your profits were enormous."

Mr Whittam said Bolton admitted in interview to having no background in science, research, training or security, the court heard.

Around 1,200 devices were sold to Mexico, while orders were also shipped to parts of Asia and the Middle East.

The devices are still being used in Thailand.

Detective Inspector Roger Cook, from the City of London Police's Overseas Anti-Corruption Unit, said Bolton put "people's lives and livelihoods at serious risk, but his sole consideration was how much money he could make".

"Bringing Bolton to justice is the result of a long, complex and far reaching international investigation and his seven-year prison sentence should act as a warning to others who seek to act corruptly overseas with the belief that they will go undetected," he added.

In May James McCormick was jailed for 10 years for also selling fake bomb detectors. He made £50m selling his devices for up to £27,000 each to groups including the Iraqi military and police in Kenya.

Prosecutors in the case said British officers in Iraq believed the detectors may have cost dozens of lives.

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Schaeuble: Greece Needs Third Bailout

German finance minister Wolfgang Schaeuble has said Greece will have to be given another bailout.

Speaking at an election event in northern Germany, he said: "There will have to be another programme in Greece."

It would be the third time international lenders have stepped in with a rescue package for the country.

However, Mr Schaeuble reiterated the government's stance, saying that there will be no debt haircut for Athens.

In the past the finance minister has said that international lenders may have to consider a new aid programme for Greece after the current one expires at the end of 2014, but he has never described this as inevitable.

The comments come following the release of figures that confirmed Greece was still is recession in the second quarter.

Though the data showed it had eased slightly, the government needs to boost tax revenues in order to meet its current bailout targets.

The Greek economy has slumped 23% since 2008, leading to the country's need for financial assistance.

Greece received its first bailout from the European Union and International Monetary Fund in 2010 and another followed, taking the current aid programme to a total of €240bn.

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Bank Intern Dies After 'Pulling All-Nighters'

A 21-year-old Bank of America Merrill Lynch intern who died in London last week had reportedly been working more than 20 hours a day.

Moritz Erhardt, a University of Michigan student from Germany, was coming to the end of a seven-week internship when he collapsed in the shower last Thursday.

He was found unconscious at Claredale House, a student residence in Bethnal Green, and was pronounced dead by paramedics at the scene.

Mr Erhardt was interning at BAML

One anonymous poster on website the wallstreetoasis.com said: "He was found dead in the shower by his flatmate. Intern at BAML [Banking of America and Merill Lynch] who went home at 6am three days in a row."

A fellow intern told the Evening Standard Mr Erhardt was a "superstar" who worked "very hard and was very focused".

BAML would not comment on speculation that Mr Erhardt had recently worked very long hours.

However, in response to being asked if it is common for people to occasionally work through the night there, a spokesperson said: "We've all done it."

In a statement the company said: "We are deeply shocked and saddened by the news of Moritz Erhardt's death.

"He was popular amongst his peers and was a highly diligent intern at our company with a promising future. Our first thoughts are with his family and we send our condolences to them at this difficult time."

An email sent to students staying at Claredale House after the student's death said: "Some of you might be aware that the emergency services were called to Claredale.

"The reason for this is that we were made aware of an incident involving one of our residents. Sadly the resident concerned had passed away.

"To avoid any rumours or misinformation, we would like to inform you all that there were no suspicious circumstances surrounding the death."

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