Friday 30 May 2014

US 'seeks to fine BNP Paribas more than $10bn'

A woman walks past a BNP bank sign in Paris

The US is seeking more than $10bn from French bank BNP Paribas to settle charges it violated US sanctions on Iran, Sudan and Cuba, according to reports.
BNP is locked in talks with the Justice Department, but the lender wants to pay less than $8bn, the Wall Street Journal claimed.
Both numbers are far higher than earlier reports of less than $4bn, and would smash the $1.9bn fine HSBC was hit with in 2012 for routinely handling money transfers for countries under sanctions and for Mexican drug traffickers.
WSJ said a final resolution of the BNP case, which related to the bank's activity in 2002-2009, is "likely weeks away".
It said the two sides are still arguing over whether the bank, as part of its punishment, will be temporarily denied the right to transfer money in and out of the US, an important part of any foreign bank's business in the country.

Has the U.K. become a tax haven?

london thames river

U.S. companies are increasingly viewing the U.K. as a place to relocate to pare their tax bills.

Why? Relatively low tax rates and a business-friendly environment.
Pfizer (PFEFortune 500) was the latest high-profile example; it tried to take over the British pharmaceutical firm AstraZeneca (AZN).
American and French media giants Omnicom (OMC,Fortune 500) and Publicis (PGPEF) also planned a mega-merger that would have seen the new firm domiciled in the U.K., though the deal was scuppered.
Meanwhile, the British-based InterContinental Hotels (IHG) was reportedly approached by a U.S. suitor who may have been looking to take advantage of a more favorable U.K. tax system.
British corporate tax rates are near 20%. In the U.S., rates are closer to 40% -- among the highest in the developed world.
The U.S. also levies high taxes on income that's earned abroad and brought back -- or repatriated -- to the States.
The U.K. rules are not as strict, allowing money to flow home without so many tax hassles, said Gary Hufbauer, a senior fellow at the Peterson Institute for International Economics.
"The basic point is that the U.S. corporate tax system is the most onerous amongst the advanced countries," Hufbauer said. About $1.6 trillion in foreign earnings have been left overseas to avoid U.S. taxes, he added.

Google Agrees To Erase Disputed Search Results

Google

Google has bowed to a European court ruling which upheld the "right to be forgotten" online.
The search engine giant has introduced a mechanism for people to request the censorship of links to other internet sites which they believe contains outdated or damaging information.
Each request will see Google weigh the privacy rights of an individual against the public's right to know.
The online request form asks for copies of the URL complained of, reasons the search results should be removed, and photo ID to prove an individual's identity.
It is unclear how long the requests will take to process.
Larry Page, the co-founder of Google and the company's chief executive
Larry Page has warned the rules could help repressive governments
Chief executive Larry Page has warned the new privacy rules will make it hard for internet start-ups, and be exploited by repressive governments.
He told the Financial Times: "We're a big company and we can respond to these kind of concerns and spend money on them and deal with them, it's not a problem for us.
"But as a whole, as we regulate the internet, I think we're not going to see the kind of innovation we've seen."
He added: "It will be used by other governments that aren't as forward and progressive as Europe to do bad things.
"Other people are going to pile on, probably … for reasons most Europeans would find negative."

Ballmer Signs $2bn Deal To Buy LA Clippers

Steve Ballmer

Former Microsoft Corp CEO Steve Ballmer has won the bidding war for the NBA's Los Angeles Clippers franchise with a $2bn (£1.2bn) offer.
If approved by the NBA, it would be a record deal for a basketball deal.
The agreement between Mr Ballmer and the Sterling Family Trust was reached on Thursday night.
Mr Ballmer outbid two groups, according to Reuters.
One, led by media mogul David Geffen, offered $1.6bn (£955m) and included TV talk show star Oprah Winfrey and Oracle Corp CEO Larry Ellison, the news agency reported.
NBA Los Angeles Clippers owner Donald Sterling
Donald Sterling has been banned from the NBA for life
The other bid was put forth by a group of Los Angeles investors who offered $1.2bn (£717m).
The Clippers came up for sale after the National Basketball Association banned owner Donald Sterling for life because of racist remarks he made in a recorded conversation that was leaked last month to entertainment news website TMZ.com.
Mr Sterling, who has vowed to fight the NBA's punishment, authorised his wife Shelly, a co-owner of the team, to review the bids.
The former Microsoft executive made more than an hour-long personal visit to Shelly Sterling's Malibu home on Sunday and laid out his plan.
Mr Ballmer's winning bid was raised from an initial $1.8bn (£1bn) offer made earlier in the day.
If approved by Sterling and the NBA, the deal would be second only to the $2.1bn (£1.2bn) paid in 2012 for baseball's Los Angeles Dodgers.

UK economy in good health, business lobby groups say

Brompton bicycle factory, London

The UK economy is in good health according to two major business lobby groups, the CBI and the British Chambers of Commerce (BCC).
The CBI says growth reached a record high in May, marking the best reading since it began gathering data in 2003.
Meanwhile, the BCC upgraded its growth forecast for 2014 from 2.8% to 3.1%, which, if achieved, would be the highest rate since pre-crisis 2007.
That figure is well above the 2.7% forecast by the OBR.
The OBR, or Office for Budget Responsibility, is the government's independent fiscal watchdog.

Japan inflation rate hits 23-year high

   
Consumer prices in Japan rose at their fastest pace in 23 years in April, following an increases in sales tax.
Prices rose 3.2% compared with the same period last year, beating analysts' forecasts of a 3.1% jump.
The government raised its sales tax rate from 5% to 8% on 1 April.
Japan has been battling deflation, or falling prices, for best part of the past two decades, and policymakers have said that ending that cycle is key to reviving the country's economy.
Falling consumer prices hurt domestic demand as consumers and businesses tend to put off purchases in the hope of getting a cheaper deal later on.

Turkish court orders YouTube access to be restored

Turkish YouTube viewer

Access to video-sharing site YouTube looks set to be restored in Turkey after a ruling by the nation's highest court.
A block was imposed in late March, soon after recordings alleging official corruption were aired on the site.
Now Turkey's constitutional court has said the block violated laws governing freedom of expression.
The court is now informing telecom authorities of its decision and is telling them to lift the block.
The decision is widely seen as a snub to the government of Prime Minister Recep Tayyip Erdogan, which has been a sharp critic of social media sites such as Twitter and YouTube.
Both sites were blocked earlier this year after recordings of official meetings were leaked and widely circulated. One recording involved senior army officers discussing intervention in Syria and others supposedly revealed corruption among people close to Mr Erdogan.

Thursday 29 May 2014

Drugs and prostitution add £10bn a year to UK economy

Drugs and prostitution add £10bn a year to UK

Prostitution and illegal drugs are contributing around £10bn a year to the British economy, according to official data.
More than half of that - £5.3bn - is attributable to prostitution, the Office for National Statistics (the ONS) said on Thursday.
The total figure for 2009 - the most recent year for which data are available - is more than double the £4bn that construction bought to the economy in the same year, and double the amount raked in by the financial intermediation services industry.
Britain has to estimate by how much these black or shadow economy activities are boosting the economy to comply to new EU rules.
The Office for National Statistics has released its first estimate, which covers the years between 1997 and 2009. It said the impact ranges from £7bn to £11bn. More recent data will be published in September

BlackBerry chief John Chen to release first phone

A woman using a Blackberry phone to send and receive emails and text messages over the internet

Ailing smartphone maker BlackBerry will on Tuesday make a new bid to turn its fortunes around with the launch of a cut-price handset in Indonesia, one of its last bastions.
The Z3, which is expected to be introduced in other emerging markets in the future, is the first new BlackBerry phone since chief executive John Chen took the helm of the crisis-hit company last year.
The handset is also the first to be produced from the Canadian firm's partnership with Taiwanese tech giant Foxconn, which makes gadgets for Apple, and is a key test of whether the new strategy will work.
BlackBerry has suffered huge losses and slashed thousands of jobs in recent years in the face of intense competition from rivals, particularly titans Apple and Samsung.
Even in Indonesia, where its phones maintain a loyal following, the company's market share has fallen in the past year, analysts say.

Apple denies iCloud has been hacked

Close-up detail of man holding new iPhone 5 smart phone showing screen with many apps

Apple has denied that its iCloud service has been hacked, after iPhone and iPad users around the world reported that their devices had been frozen by a hacker demanding money to unlock them.
The majority of the attacks took place in Australia although there were also reports of Britons being affected. It appeared that the hacker, who went by the name Oleg Pliss, managed to exploit the Find My iPhone feature which can track and remotely lock stolen devices.
Users were told to send ransoms of between $50 and $100 dollars (up to £55) to a PayPal account in order to have their devices unlocked.
But the company denied that a security vulnerability in iCloud had been to blame: “Apple takes security very seriously and iCloud was not compromised during this incident.
"Impacted users should change their Apple ID password as soon as possible and avoid using the same user name and password for multiple services. Any users who need additional help can contact AppleCare or visit their local Apple Retail Store."

Hi-Tech Nasa Sandals Blasted Into Space

       Nasa

A pair of hi-tech sandals has been blasted into space to help monitor the effects of low gravity on astronauts’ bodies.
A crew of Russian, German and US astronauts docked with the International Space Station on Thursday, bringing with them some Nasa-designed footwear called ForceShoe.
The brown strap-on shoes sit atop small monitoring devices which will send data back to control centres on Earth.
They will be used when astronauts use the space station’s exercise device – known as Ared - to help better understand the forces placed on space explorers’ bodies.
Nasa said in a statement: "Crew members will be asked to set the Ared to provide specific loads in the same way they would set loads on a weightlifting machine at the gym.
"They will then lift the exercise bar and stand still on Ared while the shoes collect data.
"Dynamic exercise will include squats, deadlifts and bicep curls."
The spacecraft docked successfully with the ISS in the early hours of Thursday.
Russian cosmonaut Maxim Surayev, his Nasa colleague Reid Wiseman, and German Alexander Gerst from the European Space Agency opened the hatch into the ISS just over two hours later.
They hugged the crew of three already on board the international space laboratory, US astronaut Steve Swanson and Russians Alexander Skvortsov and Oleg Artemyev.
The Soyuz craft had blasted off from Russia's Baikonur cosmodrome in Kazakhstan on schedule shortly before midnight Moscow time.
The new ISS crewmembers are due to carry out a mission lasting 167 days and return to Earth in November.

France in 14bn-euro tax black hole

French President Francois Hollande answers journalists' questions

The French government faces a 14bn-euro black hole in its public finances after overestimating tax income for the last financial year.
French President Francois Hollande has raised income tax, VAT and corporation tax since he was elected two years ago.
The Court of Auditors said receipts from all three taxes amounted to an extra 16bn euros in 2013.
That was a little more than half the government's forecast of 30bn euros of extra tax income.
The Court of Auditors, which oversees the government's accounts, said the Elysee Palace's forecasts of tax revenue in 2013 were so wildly inaccurate that they cast doubt on its forecasts for this year.
It added the forecasts were overly optimistic and based on inaccurate projections.
The figures come a week after French Prime Minister Manuel Valls, who was appointed in March following the poor showing of Mr Hollande's Socialists in municipal elections, appeared to criticise the president's tax policy by saying that "too much tax kills tax".

India's Tablet Market Struggling to Attract Buyers

                             



Indian tablet market continued with the struggle to attract new buyers. According to IDC, the India tablet market shipments for Q1 2014 stood at 0.78 million units, representing a year on year drop of 32.8% over Q1 2013. The drop was primarily due to lack of new buyers in the market.
"Bureau of Indian Standards (BIS) compliance is certainly hurting the white-box market. International device vendors like Apple and Samsung grew in comparison against Q4 2013, posting significant double-digit growth rates in Q1. However at an overall level, the branded vendors were unable to capitalize on the space left vacant by the erosion from white-box and smaller vendors," says Karan Thakkar, Senior Market Analyst of Tablets, Enterprise Client Devices and PC Monitors at IDC India.
Top 3 Vendor Highlights:
SAMSUNG: Samsung clearly led the tablet market in India. The strong performance of the brand in Q1 was supported by the good presence it held in the 7-8 inch screen size category. Presence in this particular screen size works as a double-edged sword, while the price conscious consumers would not mind paying the premium for an international brand like Samsung; consumers with deep pockets considering tablet as a third device would not mind shelling out more for a branded product in their maiden purchase.
APPLE: iPad mini continued to perform well in the market. Initial response for iPad Air also helped Apple post a strong quarter.
MICROMAX: Micromax took the third spot and accounted for 8.8% of the market share. However, in terms of volume growth, Q1 2014 proved to be a bit slower period for Micromax. Almost two-thirds of their volume was fueled by a new model, which the company had rolled out earlier in Q1.
IDC India Forecasts:
IDC anticipates the overall tablet market to hover around the same mark as reported in Q1 2014. There are few inhibitors to the growth:
-Emerge of Phablets (screen size 5.5 to 6.99 inch), continues to haunt the consumer decision making process
-BIS certification embossing issue: Another looming issue is the revised labeling guidelines for BIS certification of IT products. Most of the tablet vendors import shipments. Any alteration to the hardware design of the product has to be done at the source location, which in turn will pose a threat to the supply chain and there will be a direct impact on the launch of a product in a different market and its availability in India

Why Google’s driverless cars change everything?



Look around the streets of any village or city and there they are: sat in traffic, sat unused by the side of the road, the streets and layouts they require defining how we all live. They are the scourge of bicyclists, polluters of air, yet every society in the developed world has been suckered in to the convenience of car ownership – just jump in, go from where you are to where you want to be. Never mind that 96 per cent of the time your car is unused. They are quite the most inefficient major asset to own; we use even our houses more.
Google’s plan is to start small: their cute little cars will have a top speed of 25mph, whizzing around the streets of southern California, more likely to be hit by a driver in a real car than they are to hit each other, you or an inanimate object. But make no mistake: the scale of Google’s globe-changing ambition is revealed in this project.
Because this isn’t about changing car ownership: it’s about eradicating it. No wonder Google has built its own vehicles – why would Ford or any other motor maker want to sign up to a project that will see fewer cars in any country, because they’re always in use. These aren’t driverless cars; they’re driverless taxis, perpetually in motion and powered by Google’s detailed knowledge of traffic flow, its carefully analysed sense of demand and the knowledge that even on a quiet residential street, people need to get places. Tap a button on your smartphone and you’ll find that the car you need is not minutes away, but yards. It’s worth noting that Google has already invested heavily in Uber, a cab firm that does away with a central office, albeit not yet the driver. It's the ultimate just-in-time delivery system.
In the UK, Milton Keynes is already pledged to start a driverless cars trial by 2017, little pods taking people from the station to the town centre, like a monorail without the rail. With carefully mapped roads and an array of sensors, these will be far safer than the risks posed by fallible human beings behind the wheels of rickety old bangers. Will driverless cars kill people? Inevitably – but that scandal will be precious little compared to the daily scandal of the deaths on roads today. Ditto the risks of hacking in to the system. Legislators and corporations must go slowly, but good news travels fast.
Google’s co-founder, Sergey Brin, emphasised the benefits to the old and the poor: “There are many people underserved by transportation today (the elderly, a lack of cabs and buses in some places). Look at people too young, old or disabled who can’t get around. It’s an issue and a real challenge for them.” He’s right to do so, but like the web the driverless car will be a great leveller. It will benefit us all, and it will do so in our lifetime. A new generation will grow up thinking the steering wheel is what drives a racing car, used by hobbyists because it’s fun, rather than a tedious necessity in urban traffic.
My expectation is that we’ll see fleets of driverless cars, different levels of comfort at different prices, paid for as an annual subscription, with advertising subsidising some fares. Google, after all is an advertising company. It’s got the maps, and if you’re happy to let it know those ads will suggest you’re passing a great place for dinner. Pay a bit more, maybe they won’t be there at all.
Will this be for everyone? No. It’s a long time before driven cars are banned from our streets: but driverless lanes should come as no surprise. In such circumstances these cars will be closer together, more efficient, cutting commuting time and congestion. Like Google ‘reading’ your emails in Gmail, the utility will outweigh any perceived disadvantages. It’s a brand people trust, even though some have legitimate privacy concerns.
It changes, too, even the biggest infrastructure projects: HS2 may go very fast, but so can cars and these ones will pick you up from where you are and take you where you need to be, slashing total travelling time.
The driverless car - and the driverless lorry for freight – offer us a chance to reclaim both the streets and the steering wheel. Driving should be fun – but we all have better things to do than sit in traffic.

Skype To Launch Real-Time Language Translator

Microsoft bought Skype in May 2011

Real-time voice translation will be added to Skype by the end of the year, Microsoft has revealed.
The firm says it has taken years of research to be in a position to launch the feature, and that it is still "early days" for the technology.
Skype vice president Gurdeep Pall said: "It is early days for this technology, but the Star Trek vision for a Universal Translator isn’t a galaxy away, and its potential is every bit as exciting as those Star Trek examples.
"We've invested in speech recognition, automatic translation and machine learning technologies for more than a decade, and now they’re emerging as important components in this more personal computing era."
A test version of the service will be released for Windows 8 later this year.
It is unclear whether the feature will be offered for free or whether a fee will be required.
Skype has more than 300 million monthly users, and more than two billion minutes of voice and video conversations take place every day using the service.
At launch, the service will only work with a very small number of languages.
It is hoped the software can learn the subtleties of various accents and voice type as a result of the massive amount of voice data processed by Skype.
The company was bought by Microsoft in May 2011 but has faced competition from Apple's Facetime, Blackberry’s BBM, and several other chat services and apps.

Dr Dre Joins Apple In $3bn Beats Acquisition

Dr Dre

Dr Dre and recording impresario Jimmy Iovine have joined Apple after the completed $3bn acquistion of Beats Electronics.
The announcement comes nearly three weeks after deal negotiations were leaked to the media.
At $3bn (£1.8bn), the deal for the headphone and streaming music company is the most expensive acquisition in Apple's 38-year history.
It includes $2.6bn in cash and $400m in Apple stock that will vest over an unspecified time period.
Apple CEO Tim Cook during the keynote address during the 2013 Apple Apple Worldwide Developers Conference
Apple boss Tim Cook was most interested in Beats' streaming service
Apple broke into the music streaming business last year with the launch of iTunes Radio, but with $1.1bn in revenue last year, Beats should boost the tech giant's earnings once the new fiscal year begins in October.
"Music is such an important part of all of our lives and holds a special place within our hearts at Apple," Apple CEO Tim Cook said in a media release.

Samsung reveals Simband and Sami health platform

                       Samsung Simband
Samsung has unveiled a prototype wristband that can be fitted with third-party sensors to gather a range of health data about the wearer's body.
It also discussed plans to store and share the information to offer insights to both the user and researchers.
The Simband device and Sami (Samsung Architecture Multimedia Interactions) platform were announced at a press event held in San Francisco.
One expert said their fate might depend on the quality of data gathered.
Samsung discussed being able to take precise readings for heart rate, blood flow, respiration, galvanic skin response, hydration, and gas and glucose concentrations in the blood among other body readings, as well as data about substances carried in the surrounding air - all on a device no bigger than existing smartwatches.
Dr Aiden Doherty, a senior health researcher at the University of Oxford, noted that experts currently required more bulky, costly equipment to do this reliably.
Samsung dataSamsung suggested Sami be used to present simple insights into the wearer's health
"There's a tension because medical devices have to undergo rigorous checks while consumer devices don't," he told the BBC.
"For any company or university or health researcher the number one thing is that a device provides accurate output, otherwise inaccurate data would mean our insights would be inaccurate too."

Japan retail sales fall after tax increase

Consumers at a shop in Japan

etail sales in Japan fell 4.4% in April, compared with the same period last year, as the effect of an increase in the country's sales tax began to be felt.
Japan raised the tax from 5% to 8% on 1 April - the first hike in 17 years.
The country faces rising social welfare costs due to an ageing population and is trying to rein in public debt.
Analysts said sales had dropped in part due to consumers rushing to make purchases ahead of the tax rise.
That trend was evident in March, when sales surged 11% - the fastest pace of growth since March 1997.
'Gradual recovery'
The rise in sales tax is also expected to help Japan achieve its 2% target for inflation.
Unlike many other leading economies, Japan has been battling deflation, or falling prices, for the best part of the past two decades.
This has hurt domestic consumption, as consumers and businesses tend to put off purchases in the hope of getting a cheaper deal later on.
Policymakers have said ending that cycle is key to reviving growth in Japan's economy, and have taken various steps to achieve that.
The measures have had some positive impact and consumer prices have been rising in Japan.
The hope is that once prices start to rise, it may force consumers and business to spend more money and not hold back on purchases as they may have to pay more later on.
But there have been some concerns that the tax hike may cause people to hold back on purchases and thus hurt domestic demand.
However, analysts said the drop in sales was likely to be temporary and that domestic consumption was expected to pick up in the coming months.

Tesco and China Resources Enterprise reach retail deal

Shoppers at a Tesco store in China

Tesco has finalised a deal with the state-run China Resources Enterprise (CRE) to create the largest food retailer in China.
The joint venture will combine Tesco's 131 outlets in the country with CRE's almost 3,000 stores, called Vanguard.
CRE will own 80% of the new chain and Tesco will have a 20% stake.
"The partnership creates a strong platform in one of the world's largest markets," Tesco chief executive Philip Clarke said in a statement.
"We can now combine our strengths to build a profitable multichannel business, offering our customers in China the best of modern retail."

Wednesday 28 May 2014

Massive Explosion In Earth's Nearest Galaxy

NASA image shows the ring-like swirls of dust filling the Andromeda galaxy standing out colorfully

A massive explosion in our nearest galaxy may have been caused by two stars colliding.
A sudden burst of gamma-rays in the Andromeda Galaxy was detected by a Nasa satellite on Wednesday morning.
There are various different types of gamma-ray emissions, and it is unclear whether it was specifically a gamma ray burst (GRB).
If it was, it may have been caused by the collision of two neutron stars.
It would be significant given that Andromeda is 2.5 million light years away – the previous nearest GRB took place 2.6 billion light years away.
By observing how the light fades over the next 24-48 hours, astronomers should be able to tell what type of gamma-ray emission it was.
Nasa's Swift Burst Alert telescope watches the skies for gamma-ray bursts and sends their locations back to stations on the ground.
It observes around 90 gamma ray events every year, but usually from much further away.

Taxman Investigations Rake In Record £24bn (UK)

Tax investigations

A record £23.9bn has been collected through investigations by taxmen over the last year, official figures have revealed.
The total was an increase of £3.2bn on the previous 12-month period and £9bn on three years ago.
HM Revenue and Customs said it was nearly £1 billion above the target set by Chancellor George Osborne in his 2013 autumn statement.
More than £8bn has been raked in from large business, £1bn from criminals and £2.7bn through tackling avoidance schemes in the courts.
Exchequer Secretary to the Treasury David Gauke said: "The Government supports the hard-working, honest majority of taxpayers that play by the rules, and is determined to tackle the minority that seek to avoid paying the taxes they owe.
"We set HMRC ambitious targets to increase its yield and the figures published today demonstrate that HMRC is successfully meeting these challenges.
"It also sends a clear signal - HMRC will pursue those seeking to avoid their responsibilities and will collect the taxes that are due."
HMRC investigated the tax affairs of 237,215 people in 2012/13, compared with around 119,000 in 2011/12.
In 2013, 690 tax fraudsters and benefit cheats were convicted following probes by HMRC officials.
The number was an increase on the 477 convictions in the previous 12 months - and led to sentences totalling 355 years in prison.