China's 'UK Is No Big Power' Snub To Cameron

UK 'Just An Old European Country'

Updated: 9:04am UK, Tuesday 03 December 2013

By Mark Stone, China Correspondent

The editorial in China's Global Times on Tuesday gives a clear hint about how David Cameron has been received in the country so far.

To a significant extent, editorials in the Chinese (state run) papers reflect the broad thinking of the communist leadership.

Under the headline "China won't fall for Cameron's 'sincerity'", the Global Times' article is less than complimentary.

It reminds Mr Cameron that "the UK is not a big power in the eyes of the Chinese. It is just an old European country ..."

It also points out that on the very day that Mr Cameron was praising the Chinese, his Navy Chief of Staff was meeting the Japanese military and apparently supporting Japan's stance in a bitter territorial dispute.

In short, the editorial paints a picture of a China that is less than impressed.

:: Full transcript of the Global Times editorial:

"The UK Prime Minister David Cameron arrived in China Monday, starting his three-day tour in the country.

"The once halted Sino-British relations, due to Cameron's meeting with the Dalai Lama last year, may see an ice-breaking.

"This year, China has been actively engaged in relations with Germany and France, which propels the urgency of the Cameron administration to end the chilliness of bilateral relations.

"Some analysts say that the UK, France and Germany have reached an unwritten understanding on the issue of the Dalai Lama to provoke China. When the leadership of one country meets with the Dalai Lama, the other two countries develop ties with China.

"Such an argument does echo the real situation of China's relations with Europe, especially when, yesterday, the British Royal Navy's Chief of Staff, Admiral George Zambellas met with Japanese Defense Minister Itsunori Onodera and supported Japan's stance toward China's recently declared Air Defense Identification Zone in the East China Sea.

"This has added doubts over Cameron's sincerity in improving ties with China.

"Perhaps there is no need to talk about 'sincerity' in terms of Sino-British relations.

"What Cameron does is out of his own political interest and the UK's national interest. His visit this time can hardly be the end of the conflict between China and the UK.

"Beijing needs to speed up the pace of turning its strength into diplomatic resources and make London pay the price for when it intrudes into the interests of China.

"China has gained some achievement in countering European leaders' moves of meeting with the Dalai Lama.

"China's strategic initiatives in its relations with Europe have been increasing.

"The UK, France and Germany dare not make joint provocations toward China over the Dalai Lama issue.

"The Chinese government will surely show courtesy to Cameron. But the public does not forget his stance on certain issues.

"We know that the British government has been making carping comments on Hong Kong implementing universal suffrage for the chief executive's election in 2017.

"It also gives ulterior support for those who advocate opposition between Hong Kong and the central government. This has added to the negative impression the Chinese public holds toward the UK.

"Chinese people believe that if London interferes in Hong Kong's transition process of implementing universal suffrage, Sino-British ties can be halted again.

"The Cameron administration should acknowledge that the UK is not a big power in the eyes of the Chinese. It is just an old European country apt for travel and study. This has gradually become the habitual thought of the Chinese people.

"China has believed in 'diplomacy is no small matter', while after years of ups and downs, we have acquired the strategic confidence that 'diplomacy is no big matter'. China will act accordingly given how it is treated.

"Finally, let us show courtesy to Cameron and wish him a pleasant trip."

00.26 | 0 komentar | Read More

RBS And NatWest Glitch: Problems Persist

RBS and NatWest customers are still reporting problems with their accounts after a third major glitch in 18 months hit the banking group's IT systems nationwide.

Thousands vented their anger on Twitter after all of the high street banks' systems went down for three hours on one of the busiest shopping days of the year, Cyber Monday, and the fury continued to be felt by the bank on Tuesday.

As well as bank cards, there were problems with RBS and NatWest's websites and smartphone apps.

The banking group said that while the technical issue had now been resolved, its 15.7 million customers should visit their local branch or contact one of its helplines if they were still experiencing problems with their accounts caused by the resulting backlog of transactions.

It promised anyone left out of pocket as a result of the failure would be compensated and there would be further investment in its technical systems to help prevent more disruption in future.

The group chief executive Ross McEwan described the latest glitch as "unacceptable" and added: "For decades, RBS failed to invest properly in its systems.

Complaints piled up on Twitter as customers could not access cash

"We need to put our customers' needs at the centre of all we do. It will take time, but we are investing heavily in building IT systems our customers can rely on.

"I'm sorry for the inconvenience we caused our customers. We know we have to do better.

"I will be outlining plans in the New Year for making RBS the bank that our customers and the UK need it to be.

"This will include an outline of where we intend to invest for the future."

Customer services director Susan Allen told Sky News: "We know it was a very busy time of people doing their shopping before Christmas.

"Clearly, we deeply apologise for the inconvenience we've caused."

RBS' apology, along with an earlier tweet about mobile banking problems

Ms Allen insisted the problems were "completely unrelated" to high transaction volumes on Cyber Monday but was unable to give an explanation for the failure, saying it was still under investigation.

It is understood that hacking has been ruled out, although some customers told Sky News they were being targeted by phishing emails in the wake of the meltdown, an issue RBS said it was looking into.

Others complained about accounts being closed, suddenly overdrawn or unavailable to access online.

The group said Ulster Bank, which is also owned by RBS, was "partly affected" by the outage.

Reports started to emerge of bank cards being refused at around 6.30pm on Monday.

One customer from Canterbury, Kent, tweeted: "NatWest down again. Looked like a melt in Londis when my card got declined for milk and tuna."

Josh Barlow, a Sheffield Hallam journalism student, wrote: "This is happening every month, if not more, and it's getting ridiculous."

RBS and NatWest came under fire in March after a "hardware fault" meant customers were unable to use their online accounts or withdraw cash for several hours.

A major computer issue in June last year saw payments go awry, wages appear to go missing and home purchases and holidays interrupted for several weeks, costing the group £175m in compensation.

The latest meltdown will heap more embarrassment on the banks because it came on so-called Cyber Monday, when retailers expect their busiest day of the year as pre-Christmas shoppers search the internet for bargains.

Trade union Unite, which represents RBS staff, called for the bank to halt its cost cutting programme, which has seen thousands of jobs axed and IT functions sent abroad, in the wake of the IT problems.

National officer Dominic Hook said: "It is unacceptable that the bank's customers are once again facing inconvenience. Unite has grave concerns that staffing challenges are exacerbating the problems facing the bank."

00.26 | 0 komentar | Read More

Households Raid Savings At Record Rate

By Ed Conway, Economics Editor

Households are pulling money out of their savings accounts at the fastest rate in modern record, according to Bank of England figures.

In the past year, families have withdrawn £23bn from their long-term savings accounts to convert into cash and put into current accounts - the equivalent of around £900 for every household in the country.

It is the most dramatic evidence yet that Britons are paying for the rising cost of living by raiding their savings accounts.

Analysis of the Bank's figures by Sky News shows that in the year to October, the amount of cash in time deposits and cash ISAs fell by 4.7%, while the amount families have in their instant access current accounts or in their pockets rose by 11.2% - some £71bn.

According to economists, the shift of cash is the biggest since comparable records began in the 1970s, and reverses much of the sharp increase in saving that happened at the height of the recession.

On Thursday, the Chancellor's Autumn Statement is expected to focus on measures to help households deal with the rising cost of living, including energy bills.

Since the recent recession began, millions of workers have suffered repeated effective pay cuts as inflation has outstripped pay rises.

As well as paying for household bills, economists also believe that people's use of savings may have contributed to recent economic growth.

The news comes amid growing evidence that consumers' appetite for spending is on the rise in the run-up to Christmas.

Consumer spending was one of the main contributors to the sharp rise in gross domestic product in the third quarter, and a further strong increase is implied by the Bank's money figures.

But while the figures suggest that the economy is strengthening, they will also be taken as further evidence that savers are being deterred from putting money aside by record low interest rates.

According to new figures from the Bank, the average interest rate on long-term savings accounts has now dropped to 2.4% - the lowest level since comparable records began in 1999.

Some also suspect that with households still facing a significant squeeze as a result of higher living costs, many are having to dig into their savings in order to afford day-to-day items.

Simon Ward, chief economist at Henderson Global Investors, pointed out that on top of the £900-per-household shift of cash out of long-term savings, families have also put £21bn - a further £800 per household - which might normally have gone into savings accounts into their spending money.

"Consumer strength usually reflects increased borrowing but this hasn't been the key factor recently," he said.

"Instead, households have been running down their savings accounts balances, probably in reaction to the pathetic interest rates now on offer.

"Increased spending is lifting growth and incomes, and money is flowing back to other households, in a virtuous circle."

00.26 | 0 komentar | Read More

Water Companies Submit Five-Year Price Plans

Britain's 19 water companies have submitted their price proposals for the period between 2015 and 2020.

With the exception of Thames Water - the nation's biggest water service provider - they are all pledging to either freeze or cut bills in real terms during that time.

The average UK household currently pays £388 a year for water and sewerage services.

The regulator Ofwat, had urged the firms to apply downward pressure on bills, despite them spending millions on investment programmes.

Thames Water wants a real terms price hike of 11% - to fund £8bn of investment projects.

On November 8, Ofwat said the proposed Thames Water price rise of £29 was not justified, despite the company saying the extra money was needed to fund the construction a "super sewer" under London.

The watchdog's chief regulation officer Sonia Brown said: "We said we would challenge Thames' application, in the interests of customers.

"We did just that and on the evidence provided we are not convinced that an extra bill increase is justified."

Documents given to Sky News show that most of the water companies holding their prices static were acting on the wishes of their customers.

In October the water companies were warned that they must offer value for money or risk a backlash of complaints from customers.

In its annual report, the Consumer Council for Water (CCWater) revealed that written complaints had reduced by 7.4% in England and Wales.

This was down for the fifth year in a row while complaints by telephone were also down.

00.26 | 0 komentar | Read More

Npower Customer Apology After Bill Errors

Energy firm npower has written to its 3.4 million customers to apologise after a sharp rise in complaints in the last year.

The German-owned gas and electricity supplier admitted that a glitch resulted in a number of bills and statements failing to go out on time, direct debit payments not being set up properly and some customer accounts having problems being started.

Regulator Ofgem said it had been concerned about a "serious deterioration" in customer service levels.

Chief executive Paul Massara pledged that anyone affected would not lose out financially as a result.

Npower will also donate £1m to a fund for vulnerable customers, with half of this channelled to Macmillan Cancer Support.

Ofgem welcomed the apology and payment, and said that after its intervention, npower had set out a recovery plan to ensure that service levels improve.

Research last month by Consumer Futures showed that npower had 202.5 complaints per 100,000 customers for the April to June period.

This compared to 38.3 for SSE, which had the lowest level of complaints among the main energy providers.

Mr Massara said the problems arose after customer details were transferred onto a new computer system.

These led to its helpline receiving extra calls, resulting in longer waiting times for those trying to get through.

In the letter, Mr Massara wrote: "We've let many of you down recently in the overall levels of customer service we've been providing. We apologise unreservedly."

Around 700,000 customers are thought to have been affected by the problems, though it is believed the vast majority are not financially worse off.

Mr Massara said the issue was being dealt with as a "top priority", adding that hundreds of staff were working to address it.

Many customers affected had already been contacted individually to address specific problems and others would be, he said.

Anyone affected by payment problems as a result of the glitch would have repayment periods extended, Mr Massara added.

Ofgem senior partner Sarah Harrison said: "The huge growth in complaints about npower is wholly unacceptable and is an issue that Ofgem takes very seriously. That is why we intervened in this case.

"Npower's commitment that its customers will not lose out financially as a direct result of the company's billing system problems is important and we will expect npower to do all it can to identify and rectify such cases."

Npower recently announced a 10% average bill increase, but said it would reduce bills as a result of a shake-up of Government green levies.

00.26 | 0 komentar | Read More

Stolen Mobile Phone Bills To Be Capped

Mobile phone owners will no longer have to face huge bills if their handsets are stolen under a deal between the Government and four of the main suppliers.

EE, Three, Vodafone and Virgin Media say they will put a cap on the amount they will charge customers.

The amount is expected to be in the region of £50, about the same price at which a stolen credit card is capped.

The companies have also agreed to halt unexpected mid-contract price rises and allow customers to break their contract if such charges are brought in.

Telecoms providers Sky, BT and Talk Talk have also signed up to the scheme.

Culture Secretary Maria Miller announced the measures as she accompanied Prime Minister David Cameron on his trade trip to China.

"We are ensuring hard-working families are not hit with shock bills through no fault of their own," she said.

"Families can be left struggling if carefully planned budgets are blown away by unexpected bills from a stolen mobile or a mid-contract price rise.

"This agreement with the telecoms companies will deliver real benefits to consumers and help ensure people are not hit with shock bills."

The deal comes on the heels of the Government's proposals to end roaming charges - the costs associated with using mobile phones abroad - within the EU.

00.26 | 0 komentar | Read More

Apple Buys Twitter Trends Tool Topsy Labs

Topsy Labs has been bought by Apple in a deal that will provide the iPhone maker with more insights about the chatter on Twitter.

The San Francisco-based startup's analytic tool pores through the stream of conversations on the social network to identify trends and people influencing public opinion.

It also runs a free search engine that boasts an index of every tweet posted since 2006, a resource not publicly available on Twitter's own online messaging service.

Apple spokeswoman Kristin Huguet confirmed the Topsy acquisition without elaborating on its plans for the service.

Ms Huguet did not disclose the acquisition price, adding: "Apple buys smaller technology companies from time to time, and we generally do not discuss our purpose or plans."

There was a flurry of speculation on Apple's intentions, although it was generally agreed that having a better grasp on the hottest topics on Twitter could help Apple sell more advertising on iPhones and iPads - a key target for the company. 

Topsy's Twitter tools could also be used simply to give the iPhone a unique search feature.

Unlike Topsy, Google, which makes the Android operating system that powers many of the iPhone's rival products, has been unable to obtain a licensing agreement that would give its search engine more immediate and deeper access to Twitter's content.

Apple spent a total of $496m acquiring other companies during its last fiscal year ending September 28.

In comparison, Google spent $1.4bn acquiring other companies during the same period, including the mapping app Waze.

00.26 | 0 komentar | Read More

Rival Lloyds Branch Bidder Urged To Sue Bank

By Mark Kleinman, City Editor

The bidder which lost out to the Co-operative Group in the auction of 632 Lloyds Banking Group branches is being urged to consider legal action to recover the £30m it spent on its bid.

Sky News has learnt that a number of shareholders in NBNK Investments, which is listed on the stock market, are encouraging the acquisition vehicle's directors to consider suing to recover tens of millions of pounds in costs.

The NBNK board, which is now chaired by the veteran US investor Wilbur Ross, has not yet made a decision to take such action and it is unclear whether a lawsuit would be targeted at Lloyds or the Government, insiders said.

Investors including Crystal Amber, which owns just over 3% of NBNK, are keen for its directors to consider the move amid the growing political controversy about the regulation of the Co-op's banking operations.

NBNK spent roughly £30m of the £50m it raised from City institutions to assemble a bid for the Lloyds branch network, which was given the codename Project Verde.

However, its offer was trumped on two separate occasions by the Co-op, which was subsequently forced to abandon the deal when it became clear that its finances were not in an adequate state to mount such a significant takeover.

None of NBNK's shareholders, including Crystal Amber, would comment on a prospective legal action against Lloyds or the Government.

However, they are understood to have been galvanised by intensifying allegations in recent weeks that the outcome of the branches auction was influenced by a desire from the Treasury to see a mutually-owned organisation emerge as a more powerful player in Britain's high street banking sector.

"This was not a level playing field. That has become clear," said one NBNK investor. "NBNK has paid £30m to compete in an auction it had no chance of winning."

The chances of a successful legal action are unclear, since NBNK would have to demonstrate a form of misrepresentation by Lloyds, its advisers or the Government.

"Whilst the legal test is a substantial one, it was always felt that the Verde process was heavily geared towards the Co-op's success," another investor said.

"The telling factor may come out of numerous Freedom of Information Act requests which have been submitted to various Government departments."

Sky News revealed last month that Lord King, the then Governor of the Bank of England, had told Lord Levene, who at the time was NBNK's chairman, that he believed the Co-op's bid had won political favour.

In a statement, a Lloyds spokesman said: "The bidding process for the Verde business was assessed on a fair and open basis.

"The Lloyds board made the decision to proceed with the Co-op based on value and certainty.

"They chose to proceed with a business that had an existing franchise, branch network and a banking licence.

"The Group also maintained a Plan B - an IPO (initial public offering) of Verde. The first phase of that completed in September with TSB on the UK high streets."

The TSB network is likely to float on the stock market in the middle of next year, with former RSA Insurance boss Andy Haste poised to be appointed as its chairman.

A Treasury Select Committee inquiry into the Verde sale process is hearing further evidence on Tuesday from advisers from KPMG, the accountancy firm, and JP Morgan, the investment bank.

In evidence provided to the Committee earlier this year, NBNK said it had warned Lloyds that it believed the Co-op was in a worse financial position than had been publicly acknowledged and that the mutual would be forced to withdraw.

In a letter to the Financial Times this week, John Aitken, an adviser to NBNK, said "the result for both the Co-op and NBNK (whose investors could reasonably have expected an unbiased process) has ensured we have gone backwards".

"This dire result has been achieved by a combination of ineptitude and political interference and, rather than congratulating themselves, those responsible should be deeply ashamed," he added.

Senior City sources believe that one of the motivations for favouring a Co-op deal  was that the well-capitalised Verde network would help to ease the mutual's difficulties over IT systems, management inexperience and doubts about the robustness of its capital position.

A series of probes now awaits the Co-op and some of its former directors, with the Financial Conduct Authority and Prudential Regulation Authority considering whether to launch formal enforcement investigations.

A separate probe commissioned by the Treasury and undertaken by an as-yet unidentified figure from the world of banking or law will also take place.

In a statement last month, it said its inquiry would "cover the actions of relevant authorities (regulators and government) and the institution itself, including prudential issues, governance (including the appointment of senior staff) and acquisitions".

The Treasury's inquiry will not begin until after any PRA and FCA enforcement action has been concluded.

Following the termination of its interest in the Lloyds branches, Lord Levene and other NBNK directors stepped down from the board, with Mr Ross investing in the cash shell last December.

NBNK has not yet pursued any alternative acquisitions.

00.26 | 0 komentar | Read More

140 Jobs At Risk As Stationer Osbornes Folds

By Mark Kleinman, City Editor

Another high street retailer was on the verge of collapse on Tuesday when a 180-year-old stationer called in administrators amid intense competition from supermarket chains.

Sky News understands that Osbornes Stationers is poised to announce that FRP Advisory, a professional services firm, has been appointed to oversee the administration, which could threaten 140 jobs.

Osbornes, which operates 20 shops across the Midlands, including in Birmingham, Bristol and Nottingham, is understood to have been loss-making for several years.

Like many high street businesses, it has been adversely affected by consumer shopping habits switching to the internet, as well as the buying muscle of supermarket giants.

Osbornes employees are understood to have been informed of the decision to call in administrators on Tuesday morning, with FRP said to be hopeful of identifying a buyer to save most, if not all, of the business.

The retailer was founded in 1832 by Edward Corn Osborne, who established a printing business on New Street in the centre of Birmingham.

It has undergone several changes of ownership since and was the subject of a buyout by several directors in 2008.

Osbornes is the latest retailer to succumb to the continuing challenges affecting many regionally-based businesses, even as the overall economic picture improves.

National chains which have fallen into administration in recent months include Blockbuster, the DVD rental business, while Tie Rack recently announced a plan to close the vast majority of its remaining UK stores.

An FRP spokesman declined to comment.

00.26 | 0 komentar | Read More

Housebuilding Grows At Best Pace For A Decade

Housebuilding grew at its fastest pace for a decade in November amid surging demand buoyed by Government initiatives.

Figures from the closely watched Markit/CIPS purchasing managers' index (PMI) for construction showed housing activity at its highest since November 2003 while job creation was at a six-year high.

It helped overall PMI for the sector accelerate to its best level since August 2007.

Markit chief economist Chris Williamson said the housing figures suggested the number of new home starts had risen to 40,000-45,000 per quarter in recent months, up from 28,000 at the end of last year.

It meant, he said, that the wider improvement in the UK economy was more likely to be sustainable with the boost in housing supply helping to meet buoyant demand.

Combined with improvements in manufacturing data, the figures also added to the likelihood that gross domestic product growth could accelerate to more than 1% for the fourth quarter, he said.

The construction upturn came as demand for property is spurred by the Government's Help to Buy scheme to help would-be homeowners struggling to find a deposit, as well as low interest rates.

Meanwhile, the Funding for Lending scheme to improve borrowing conditions has proved so successful in helping the mortgage market it has had to be cancelled and refocused on small businesses.

But the PMI figures also showed commercial construction growth accelerating while civil engineering continued to expand, albeit at slightly below the pace it managed the previous month.

Mr Williamson said: "The survey indicates that the construction upturn is not simply predicated on a housing market boom fuelled by Government initiatives and low borrowing rates."

Howard Archer, chief UK and European economist at IHS Global Insight, said: "What is particularly encouraging and bodes well for the sustainability of the construction upturn is that the improvement in activity is now widespread across sectors while incoming new business is elevated.

"If consumer spending gains appreciable momentum as Christmas gets ever nearer, fourth quarter growth prospects for the economy will be looking very bright."

However, the construction sector remains a long way off returning to its best levels, with latest official figures showing it was 13.3% off its pre-recession peak.

00.26 | 0 komentar | Read More