House Price Concern As Wider Inflation Eases

There has been more good news for household budgets with confirmation that price growth eased further in March though property costs accelerated.

The Office for National Statistics (ONS) charted a fall in the Consumer Prices Index (CPI) measure of inflation to an annual rate of 1.6% - down from 1.7% in the previous month - which marked a new four-year low.

This was driven, the ONS said, by falling pressures from fuel costs.

Petrol prices were unchanged between February and March

Furniture and clothing also made downward contributions - with discounting in women's fashion leading the way.

Upward contributions to inflation came from factors including higher bills for overnight hotel stays and more expensive alcoholic spirits.

The figures raised hopes that a milestone in the UK's economic recovery could be reached as early as Wednesday, when the ONS releases the latest unemployment and wage statistics.

Many economists believe they will show pay packets rising at a faster level than inflation.

George Osborne has welcomed easing inflation figures

Earnings have not increased at a higher rate than inflation since a brief spike in March and April 2010 and have not consistently been improving since 2008.

However, separate ONS figures on Tuesday pointed to a steep rise in annual house price inflation of 9.1% over the 12 months to February.

It represented the biggest increase since June 2010 and was up sharply on the 6.8% rise measured in January as London's rapid price growth started to be mirrored outside the capital.

The performance renewed fears the UK housing market is at risk of overheating though policymakers have repeatedly pledged to remain vigilant.

The housing charity Shelter said: "Today's figures are yet more evidence that house prices are spiralling out of control.

"Apart from the lucky few who can rely on the bank of mum and dad, our runaway housing market is forcing a generation to watch a home of their own become an increasingly distant dream, no matter how hard they work or save."

European economist at Schroders, Azad Zangana, told Sky News he expected the Bank of England to intervene on house price inflation in the summer.

The TUC leader Frances O'Grady says a cost of living crisis remains

The wider inflation numbers - which strip out housing costs - were welcomed by the Chancellor.

George Osborne said: "Lower inflation and rising job numbers show our long term plan is working, and bringing greater economic security."

The general secretary of the union organisation the TUC, Frances O'Grady, said workers remained £40-a-week worse off than before the financial crisis.

UK economist at Scotiabank, Alan Clarke, said the latest CPI reading was likely to mark the low point in UK inflation as a rebound is likely to come from the impact of Easter holidays on airfares.

However, he saw real-terms wage growth accelerating to counter that effect.

He said: "At the moment, consumer spending growth is being boosted by falling savings and rising borrowing.

"If real incomes continue to improve over the coming quarters (as we expect), then spending growth will be increasingly underpinned by solid fundamentals rather than the feel-good factor associated with a booming housing market."

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Imperial Tobacco To Close Nottingham Factory

Up to 900 jobs are to be lost under plans by Imperial Tobacco to close factories in Nottingham and Nantes in France.

The company said it wanted to shut both its production plant and distribution centre in Nottingham, which together employ around 540 people - almost a third of its UK workforce.

The move would represent an end to cigarette production in the UK.

Its statement blamed "declining industry volumes in Europe, impacted by tough economic conditions, increasing regulation and excise and growth in illicit trade".

Imperial, whose brands include Golden Virginia and Lambert & Butler, said the Nottingham factory has capacity to make 36 billion cigarettes a year but will only produce 17 billion in 2014.

It said production would be moved to other European factories and distribution outsourced.

The Nantes plant, which employs 320 staff, would suffer the same fate while its research facility at Bergerac was also under threat.

The company said it was working on the proposals with unions.

Chief executive Alison Cooper said: "These projects are an essential part of securing the sustainable future of the business.

"The prospect of job losses is always regrettable and we will be doing all we can to support employees and ensure that they are treated in a fair and responsible manner."

The company, which has 46 manufacturing sites worldwide, closed a cigar factory in Bristol in 2010.

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Katherine Jackson To Pay AEG's Court Costs

Katherine Jackson has agreed to pay over $800,000 (£479,000) in costs to the promoters behind her son Michael's comeback tour after a lawsuit she brought against them failed.

Lawyers for AEG Live had sought more than $1.2m (£718,000) for expenses after winning the five-month trial but the lesser amount was negotiated with Jackson's legal team.

The deal has still to be approved by Los Angeles Superior Court Judge Yvette Palazuelos, who oversaw the civil trial last year.

The Jackson matriarch sued AEG in 2010 claiming they negligently hired and supervised Conrad Murray, the doctor subsequently convicted of involuntary manslaughter over the Thriller singer's death on June 25, 2009.

Jackson died from an overdose of the anaesthetic propofol, given by Murray at the star's rented mansion in Los Angeles, where he was rehearsing for the This Is It shows at London's O2 Arena.

In the civil trial, his mother alleged the promoters had missed a series of red flags about the star's failing health in the run-up to his death.

The Jacksons wanted AEG Live to pay $85m (£51m) to each of the star's three children for emotional loss, and an unspecified amount for economic losses, estimated at up to $1.6bn (£958m).

But AEG's lawyers called the figures ridiculous, and last October a jury found Murray was not unfit or incompetent for the job he was hired to do, a key requirement for the Jackson lawsuit to have succeeded.

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Google Buys Drone Maker Titan Aerospace

By Joe Tidy, Sky News Reporter

Google has purchased high-altitude solar-powered drone builder Titan Aerospace as part of the search engine giant's efforts to bring internet access to remote areas of the world.

Google snapped up the New Mexico company for an undisclosed fee, reportedly fending off rival Facebook which was also said to be interested in the company.

Titan Aerospace's website was blocked overnight and now carries a holding page with the Google logo and a short message.

"We're thrilled to announce that Titan Aerospace is joining Google. At Titan Aerospace, we're passionate believers in the potential for technology (and in particular, atmospheric satellites) to improve people's lives," it said.

Google hopes to expand online access (pic: promo video, Titan Aerospace)

"It's still early days for the technology we're developing, and there are a lot of ways that we think we could help people, whether it's providing internet connections in remote areas or helping monitor environmental damage like oil spills and deforestation.

"That's why we couldn't be more excited to learn from and work with our new colleagues as we continue our research, testing and design work as part of the Google family."

Google is yet to comment on the acquisition but it feeds in well with Project Loon - the technology giant's plan to spread the internet around the world using balloons some 12 miles (20km) in the stratosphere above Earth.

Facebook had been eyeing the firm (pic: promo video, Titan Aerospace)

Both Facebook and Google have plans to expand the reach of the internet with high-tech web systems.

In February, Facebook founder Mark Zuckerberg launched an ambitious plan to bring internet infrastructure to five billion people.

It is the second big buy-out in months by Google who purchased military robot-maker Boston Dynamics in December.

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Councils Accused Of Cashing In On CCTV Fines

Councils have been accused of using CCTV cameras to collect millions of pounds in parking and traffic fines.

Big Brother Watch disputes claims by many local authorities who say the cameras are used to ensure the safety of the public and not to raise funds.

According to figures obtained by the group under the Freedom Of Information Act, local authorities issued £312m worth of fixed penalty notices for traffic contraventions.

Emma Carr, deputy director of Big Brother Watch, said: "The use of CCTV and spy cars for parking enforcement should be banned.

"The fact that no councils publish proper statistics about how these cameras are used highlights that many know that their CCTV operation is about raising money, not about public safety."

London boroughs accounted for around 90%, or £285m, of the cash raised.

The top five highest revenue-raising councils were Camden, Ealing, Lambeth, Westminster and Harrow.

Brandon Lewis, Minister for Local Government, said: "It is clear that CCTV is being used to raise money in industrial volumes for town halls, breaking the constitutional principle that fines should not be used as a source of revenue.

"The public want to see CCTV being used to catch criminals not to persecute shoppers and hard-working people."

Councillor Peter Box, chair of the Local Government Association's Economy and Transport Board, said: "It is frustratingly familiar to hear Big Brother Watch again peddling the myth that councils are enforcing parking regulations just to raise money.

"Road safety campaigners, schools, disability and pedestrian charities and councils have all come together to warn the Government that banning CCTV parking enforcement will put school children and disabled pedestrians at risk and worsen road safety."

The figures provided in the report cover the period March 1, 2008, to March 1, 2013.

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Economy Fragile As High Street Spending Falls

By Gerard Tubb, North of England Correspondent

A fall in high street spending for the second month in a row has underlined the fragile nature of the long-awaited economic recovery.

Figures from the British Retail Consortium show like-for-like sales dropped by 1.7% in March compared with the same period in 2013, with the later timing of Easter this year blamed for the fall.

Online sales rose 12.8% last month, helped by the lack of Easter holidays, which tend to drive consumers out of the house and to the shops.

Meanwhile, for the three-month period to March, food sales were down 2.7% on the year before.

The figures come a few days after economic forecasters EY ITEM Club predicted consumer spending will lead the recovery in 2014.

They expect wages to rise in real terms for the first time in six years, with pay up by 1.7% and inflation falling to 1.6%.

Consumer spending is predicted to drive the economic recovery

The conflicting reports are echoed at Browns department store in York where managing director Nick Brown says he is selling more big ticket items like furniture.

But customers are increasingly taking the option of interest free credit which reduces profit margins.

Many shoppers in the store said they did not feel any better off than they did this time last year.

Economist Nida Broughton from the Social Market Foundation warned consumers are still suffering after losing a decade of growth.

"Real wages have taken a cut of 7% since 2008 so we're nowhere near where we were.

"We're still poorer than we were. In fact real wages are at the level they were at in 2004, so we've got a lost decade to make up for."

The mixed picture for retailers was evident in results from JD Sports Fashion and Debenhams on Tuesday.

Britain's second largest department store made pre- tax profits of £85.2m in the six months to March - down 24.5% - largely because of heavy discounting at Christmas.

JD Sports said full year group profits were up 5% - helped by an exceptional performance in Sport and a reduction in the losses in its Outdoor division.

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Beckham Miami Stadium Plan Gets A Kicking

David Beckham's plans to open a waterfront stadium for his new Major League Soccer (MLS) side in Miami have come under fire.

A consortium of firms have taken out newspaper adverts opposing the plan for the open-air 25,000-seater arena in the city's port.

The alliance of shipping interests and a billionaire car dealer are worried the proposed development will damage their aspiration of Miami becoming a more attractive choice for global shippers to trade via the Panama Canal.

To date, only the London-listed cruise operator Royal Caribbean had publicly spoken out against the stadium.

The consortium - calling itself the Miami Seaport Alliance - argued in the advert: "We cannot jeopardise well-paying jobs, like crane operators, longshore workers, and mechanics, for low-paying stadium jobs, such as concession sales."

The group, whose leaders include former Royal Caribbean director John Fox and ex-owner of the Philadelphia Eagles - the car dealer Norman Braman - point to $3bn (£1.8bn) of planned infrastructure investment in the port area to increase its appeal.

Beckham said last month the development of the 36-acre space beside the water would cost about $200m (£120m) and include shops, hotels and offices connected to the mainland by a pedestrian bridge.

The port's master plan sees convention, hotel and office space on the same site being considered for the stadium.

A lawyer and adviser to the Beckham camp, Neisan Kasdin, has insisted the planned stadium would not interfere with port operations while Miami-Dade mayor, Carlos Gimenez, has insisted the site is one of four under consideration.

When announcing the stadium plans last month, Beckham said he wanted to work with people who opposed the port stadium development.

He said: "Our stadium, our site is all about the skyline, it's all about the water - it opens up to that. And that's what we want people to see all around the world.

"There's always going to be snags along the way. There is going to be people who don't agree having the stadium in certain places."

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Abu Dhabi Fund And CVC In £1.5bn Spire Race

By Mark Kleinman, City Editor

Abu Dhabi's vast sovereign wealth fund has joined forces with the largest shareholder in Formula One motor racing in the race to buy Spire Healthcare, one of Britain's biggest private hospital groups.

Sky News has learnt the Abu Dhabi Investment Authority (ADIA) is backing a takeover bid for Spire that is being assembled by CVC Capital Partners, the London-based private equity firm.

The pair are competing against other financial investors such as KKR and Onex, with rival hospital operators including HCA and Ramsay, an Australian company, also monitoring the situation.

Spire, which employs nearly 8,000 people, has been owned by Cinven, another buyout firm, since it was formed from the purchase of Bupa's hospitals business in 2007.

Sources close to the process said ADIA's interest in investing in Spire had been sparked by the arrival at the Abu Dhabi fund in February of Pascal Heberling, a former Cinven partner.

ADIA is estimated to manage assets of more than $625bn (£373bn), derived principally from the Gulf state's enormous oil wealth.

It is playing a supporting role in CVC's bid, rather than leading it, according to City sources.

The auction of Spire, which operates 37 hospitals across the UK and is expected to be worth in the region of £1.5bn, comes as competition authorities complete a probe into the private healthcare market.

Earlier this month, the Competition and Markets Authority diluted a recommendation that would have forced Spire's larger rival, BMI Healthcare, to sell seven facilities.

HCA, however, is faced with a battle to prevent the enforced disposal of one or more of the London Bridge, Princess Grace and Wellington hospitals.

ADIA and CVC, who are being advised by investment bankers at UBS, declined to comment.

The Spire auction is being overseen by Bank of America Merrill Lynch and Morgan Stanley.

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Albemarle & Bond Rescued From Administration

More than 600 jobs have been saved after the majority of the Albemarle & Bond pawnbroking business was bought out of administration.

Promethean Investments - led by former Bank of Scotland boss Sir Peter Burt - is to take 128 of the 187 branches available in a move that secures 628 jobs but leaves a further 181 hanging in the balance in the hands of administrators.

Mike Jervis, lead administrator at PwC, said: "The deal announced today was the best offer received, preserving the most jobs and keeping the most stores open.

"All 120,000 pledged items remain safe and available for the customers to redeem."

No price was disclosed.

The chain - which had a peak value of £220m in 2011 - collapsed following a deterioration in world gold prices, which hit the value of goods under its control.

That coincided with stiff competition from other pawnbrokers and payday lenders which forced it to diversify towards cash transfer services and payday lending.

It entered administration when creditors rejected a restructuring plan.

Albemarle & Bond even resorted to melting down its own gold stocks to raise cash but was forced to admit defeat last month.

Restructuring specialist Stephen Plowman will be chief executive of the business, which is to "refocus back to its core business lines of pawnbroking and jewellery retailing."

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US Airways Apologises Over Pornographic Tweet

US Airways has been forced to issue an apology after accidentially tweeting an obscene image in response to a customer complaint.

The picture, which showed a woman posing with a model airplane, was posted as part of an apology to a customer who had complained about a delayed flight.

It remained on the airline's Twitter feed for around an hour before it was removed, allowing enough time for the image to go viral.

In a statement the airline said an investigation had found the photo was initially posted on its Twitter feed by another user.

It said it had captured the tweet to flag it as inappropriate, but then accidently included it in a response to a customer. 

The airline said: "We deeply regret the mistake and we are currently reviewing our processes to prevent such errors in the future."

In a separate statement on Twitter US Airways said: "We apologise for an inappropriate image recently shared as a link in one of our responses. We've removed the tweet and are investigating."

The post was retweeted almost 13,000 times

Gleeful followers have since bombarded the airline with joke responses. 

One person tweeted: "US airways just fired their social media interns. All of them. Forever."

Another referred the recent discovery of the "Heartbleed" bug, which allows hackers to access private information through a flaw in a web encryption programme, saying: "Dear @USAirways, just blame it on Heartbleed. Everyone will believe you."

US Airways was not the only airline to find itself in the midst of a Twitter scandal.

A Dutch teenager was arrested on Monday after sending a tweet to American Airlines, which has recently merged with US Airways, in which she posed as a member of al Qaeda. 

The tweet posted by the 14-year-old girl said: "hello, my name's Ibrahim and I'm from Afghanistan. I'm part of Al Qaida and on June 1st I'm gonna do something really big bye".

American Airlines replied, saying it took such threats "very seriously" and that it had forwarded her IP address and details to the FBI.

The tweet reportedly earned the girl thousands of new followers.

Since then, other Twitter users have posted copycat threats to the airline.

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