Three tech giants have approached media buyers about plan to target rival’s $2.5bn share of US market, say reports Yahoo, AOL and Microsoft are joining forces to try and loosen Google’s grip on internet advertising, according to reports. Executives from the three companies have privately told media buyers about the plan in the US, where Google has now outstripped Yahoo in display as well as search advertising. Citing unnamed sources, tech blog AllThingsD said the trio are planning to sell each other’s “class 2 display” advertising inventory – advertising space they have not managed to sell themselves and would normally hand over to media agencies to fill. The potential tie-up comes days after reports that AOL and Yahoo, fallen giants of the first age of the internet, were discussing a merger in the wake of the firing of Yahoo’s chief executive, Carol Bartz. AOL’s chief executive, Tim Armstrong, has approached Yahoo’s advisers to gauge its interest in combining the companies, Bloomberg reported. The advertising hook-up, in the meantime, could help slow the fast growth of Google and Facebook in the lucrative online display advertising market. Google has long dominated search advertising – or online classified advertising – but overtook Yahoo in display advertising in May this year in the US, according to research firm IDC. The search giant’s first quarter revenues of $396m – 13.3% of the market – compared with Yahoo’s $330m. Facebook had 8.8% of the market. Google got into the display end of the market in 2009 after acquiring DoubleClick. Since then the business has grown rapidly and is now estimated to be worth $2.5bn a year. Yahoo said it has “longstanding relationships” with AOL and Microsoft and will continue to work and compete with them in years to come. AOL said it is fortunate to have longstanding relationships with a large number of premium publishers, including Yahoo and Microsoft. “We’re excited to continue to explore opportunities to expand our relationships,” said AOL spokeswoman Caroline Campbell in a statement, adding that the company will share more information “when it’s available”. •
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Joris Luyendijk and Garry Blight: Almost everyone in the financial sector complains about how they are represented in the media. Here, those people get the chance to talk about how they see themselves – and it’s your chance to listen in Garry Blight Joris Luyendijk
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Last of the big six energy firms increases its electricity and gas prices, by 4.5% and 15.4% respectively EDF Energy has become the last of the big six energy firms to announce a price rise, unveiling an increase in electricity and gas prices of 4.5% and 15.4% respectively, removing one of the few remaining lifelines for the millions of households edging closer to fuel poverty. EDF said the increases, which it blamed mainly on rising wholesale energy prices, will be introduced on 10 November, taking the average dual fuel energy bill to almost £1,300 a year. Consumer Focus said the price rises – along with recent price hikes from Scottish Power, Scottish & Southern Energy (SSE), British Gas, E.ON, and npower – mean “millions of people will be cutting back on other essentials if they want to keep warm”. The EDF announcement comes just a month after npower became the fifth of the six biggest energy firms to disappoint consumers with a price rise, while previously announced increases from E.ON and SSE came into effect on 13 and 14 September . According to USwitch , the average bill size across all suppliers has now jumped 14.2% from £1,132 pre-price hikes, to £1,293. In early September 2011 , EDF was named as Britain’s most complained about power company, according to figures published by Consumer Focus. But upon announcing the price rises, EDF chief executive Vincent de Rivaz called for trust in the energy industry to be rebuilt, pointing out that his group’s electricity price rise was in line with inflation, and the gas increase was lower than all other major suppliers. He added: “We have absorbed rising wholesale energy, network and other costs as long as possible but must reluctantly now pass some of these through to consumers.” Mike O’Connor, chief executive of Consumer Focus , said the fact that EDF has made smaller and later hikes than other suppliers is welcome, “but it won’t soften the blow on those who are struggling on tight household budgets”. He warned that with the industry gearing up to invest £200bn in generation and network infrastructure, worse is to come with consumer expected to foot the bill. Mark Todd, director of the price comparison service Energyhelpline.com , said: “Consumers need to keep their eyes open because there are still lots of good deals being offered for those who are willing to switch. Fixed-rate deals of 1-4 years are available at lower costs than standard prices and there are internet rates offering savings of about £300 a year. “In fact, only yesterday, Scottish Power brought in a new online tariff at £990, showing money can be saving if people act promptly and switch. There is still competition in the energy industry but only if you are willing to switch.” Last winter, over three-quarters of people rationed their energy use because of cost, according to USwitch, while over 14 million households went without heating at some point to keep their energy costs down. “We are in danger of seeing energy becoming an unaffordable luxury for the few instead of a household basic for the many,” said the firm’s energy expert Tom Lyons. “As a result many households are being forced to make unpalatable and sometimes even dangerous choices. My concern is that the impact will really become apparent this coming winter.” Richard Lloyd, executive director of Which? , had advice for consumers looking to switch: “If you’re not already paying by direct debit or if you’ve been on the same tariff for more than a year then you could be paying too much. Most of us have never switched – so check if you can find a cheaper deal today. You could save yourself over £200. Energy bills Consumer affairs Household bills EDF Energy Mark King guardian.co.uk
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Riots data reveals a third of those in court had been in prison before, but also shows sentences are tougher than usual The sentences handed down to convicted rioters by the courts have been more draconian than previously thought but nearly three-quarters of those appearing in court had criminal records. However, the average jail terms handed down were two to three times longer than normal, according to the latest Ministry of Justice data . The official statistics, released on Thursday, back up claims by the justice secretary, Kenneth Clarke, that a “hardcore of the criminal classes” were involved in the riots, with 73% of those put before the courts having previous criminal convictions – and one third of them having served a prison sentence before. Those with criminal records have an average of 15 offences each. However, MoJ statisticians stressed that the latest sentencing data, up to Monday of this week, also shows that some people – particularly teenagers – were being drawn into the criminal justice system for the first time. The data shows that the 176 people so far jailed over the riots have been sentenced to an average of 11.1 months. The detailed figures show that those convicted of burglary during the riots – generally looting – have been jailed for 14.1 months, compared with the normal rate of 8.8 months, a sentence some 60% longer than normal. Those convicted of violent disorder are being jailed for 10.4 months compared with 5.3 months normally, and those convicted of theft are getting sentences three times as long: 7.1 months compared with a normal rate of 2.4 months. The figures also show a much more hardline approach to using prison sentences, with 43% of those sentenced so far by magistrates being sent to jail compared with a normal custody rate of 12%. Clarke said the figures confirmed that “existing criminals were on the rampage”. He added: “I am dismayed to see that a hardcore of repeat offenders back in the system. This reinforces my determination to introduce radical changes to ensure both effective punishment and reform to tackle reoffending.” UK riots Crime Sentencing Alan Travis James Ball guardian.co.uk
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Banking experts said the $2bn loss was a major blow to UBS’s reputation, and that of the wider financial sector A 31-year old man has been arrested by City of London Police on suspicion of fraud in connection with a rogue trading incident that has cost Swiss bank UBS around $2bn (£1.3bn). The Zurich-based bank uncovered the incident as recently as the last 24 hours and it suffered a near 10% fall in share price in early trading after it revealed the loss could push the bank into the red for the current financial quarter . The City of London Police arrested a 31-year old man at 3.30am in Central London on “suspicion of fraud by abuse of position”. He remains in police custody and the force has begun an investigation. The Financial Services Authority, the City regulator, is understood to have been informed. City sources believe the bank would be unlikely to reveal the full details of the trading position – thought to be in the equities division – until it had been closed down or reduced on the market. In a brief statement, UBS said it was still trying to get to the bottom of the matter, which was announced on the third anniversary of the collapse of Lehman Brothers. “UBS has discovered a loss due to unauthorised trading by a trader in its investment bank. The matter is still being investigated, but UBS’s current estimate of the loss on the trades is in the range of $2bn. It is possible that this could lead UBS to report a loss for the third quarter of 2011.” It added that “no client positions were affected”. The bank refused to elaborate but in an internal memo to staff, the executive committee of UBS revealed that they only uncovered the incident on Wednesday. “We regret to inform you that yesterday we uncovered a case of unauthorised trading by a trader in the investment bank. We have reported it to the markets in line with regulatory disclosure obligations. The matter is still being investigated,” the internal memo said. “We understand that you have already had to contend with unfavourable, volatile markets for some time now. While the news is distressing, it will not change the fundamental strength of our firm. We urge you to stay focused on your clients, who are counting on you to guide them through these uncertain times,” the management urged the bank’s staff who are facing redundancies under a programme of cuts announced only last month. UBS’s headquarters are in Zurich, but the bank operates in many financial centres. It employs around 6,000 people in the UK, largely in the City, although this rogue trading incident may put more pressure on the bank to reduce the size of the division. Major blow Banking experts said the loss was a major blow to UBS’s reputation, and that of the wider financial sector. Simon Ballard, senior credit strategist at RBC Capital Markets, said the trading loss would add to public concern over the banking sector . “At a time of greater regulation, it will raise questions about regulatory capital and whether ringfences are in place to stop this happening,” Ballard told Bloomberg TV. ZKB trading analyst Claude Zehnder told Reuters that UBS bankers “obviously have a problem with risk management”. “Even when the amount isn’t so high it is once more a loss of confidence that casts UBS in a poor light,” he said. Last month, UBS announced plans to cut 3,500 jobs as part of a £1.5bn cost reduction programme . It suffered huge losses during the financial crisis, but returned to profit in February 2010 . The cost of insuring UBS’s debt against default rose by around 7% on Thursday morning, according to Gavan Nolan of Markit, before dropping back as traders digested the implications of the loss. UBS Banking European banks Financial Services Authority (FSA) Financial sector Europe Europe Jill Treanor Graeme Wearden guardian.co.uk
Continue reading …Cameron and Sarkozy land in Libya to meet National Transitional Council
September 15, 2011 No Comment
Britain and France aim to deliver aid and discuss how to stabilise the country as the hunt continues to find Gaddafi David Cameron landed in liberated Tripoli this morning to undertake a high-risk visit to the Libyan capital along with the French president, Nicolas Sarkozy, the other main western champion of the five-month Nato bombing campaign that eventually ousted Colonel Gaddafi from power. William Hague, the foreign secretary, is also on the visit, along with the french intellectual Bernard-Henry Lévy, who persuaded Sarkozy that a victory for the Libyan rebels was essential if the momentum of the Arab Spring was to be retained. Cameron is bringing with him an aid package and will hold talks with the leaders of the National Transitional Council (NTC) on the progress they are making on stabilisation, driving out the remaining pockets of Gaddafi-supporting resistance in the south of the country and preparing for a democratic future. It will be the first visit to Libya by western leaders since the collapse of Gaddafi’s regime, and is likely to spark big scenes of celebration for the two men who championed the Libyan revolution, at some political and diplomatic risk. It is also expected that Cameron will fly to Benghazi, the cradle of the resistance and still the base for the NTC. The trip has been under discussion for over a fortnight, but the two leaders have been advised that the security situation is safe enough for them to travel to a city that only three weeks ago appeared to be under the iron grip of Gaddafi. It had been intended that the trip remain unannounced until the two leaders reached the Libyan capital this morning, but news leaked in Paris, and was picked up on international websites. Downing Street, on security advice, refused to confirm the planned visit until Cameron’s plane had landed in Tripoli. The NTC had also confirmed the trip. The visit is clearly designed to reap some domestic political kudos for what has in effect been the first war that Cameron himself waged rather than simply inherited from the Labour government. British government sources insisted there would be no triumphalism on the visit nor any echoes of George Bush’s premature claim of “mission accomplished” at the end of the fighting in Iraq. He is likely to meet civilians, and some of those injured in the fighting. Sarkozy is due to be travelling with a group of police, who are expected to help advise the Libyans on security. The leaders of the NTC are due to transfer their headquarters from Benghazi to Tripoli. Cameron and Sarkozy will meet the key figures on the council to discuss the future state of the economy and political developments. Gaddafi has yet to be captured and is thought to be in the south of Libya. Hague and the international development secretary, Andrew Mitchell, travelled to Benghazi during the Nato bombing campaign, but Cameron rejected a Sarkozy suggestion to travel to the country during the war itself, arguing it might affect the fragile Arab League support for the campaign. French papers noted that the visit coincided with a high-profile TV debate between the French socialist candidates. It is also expected the Turkish prime minister, Recep Tayyip Erdogan, will visit Libya as part of a wider north African tour. David Cameron Libya Middle East Africa Nicolas Sarkozy Arab and Middle East unrest Foreign policy France Patrick Wintour guardian.co.uk
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Lack of progress blamed on Whitehall infighting and lack of public backing from David Cameron, green groups say Damian Carrington The government has made moderate or no progress on more than three-quarters of its green promises because of obstruction by the Treasury and business departments and a lack of public backing from the prime minister, a stinging report from the UK’s major environmental groups has concluded . David Cameron pledged within days of taking office that he would lead the “greenest government ever” but the report found that good progress was being made on just seven out of 29 environmental pledges made in the coalition agreement . John Sauven, executive director of Greenpeace, blamed government infighting: “This report shows that our Treasury and Department of Business are not backing British companies in the clean technology race. Those responsible for our economy seem blind to the opportunities. If the government don’t wake up and grasp this generational chance, then UK PLC will lose out on jobs, on growth and much needed revenues.” “Without more public leadership from the prime minister, the government will miss opportunities to get economic and political benefit from its policies,” said Matthew Spencer, director of Green Alliance . A Downing St spokesman said: “The prime minister remains committed to making this the greenest government ever. Our record should be judged by actions not words. The government is enacting a number of pioneering reforms to promote a more diversified, more efficient and lower carbon mix of energy sources.” The analysis, which also involved WWF, Christian Aid and the RSPB, chimes with reports earlier in 2011 of battles between ministers over whether green measures can boost economic growth and criticism of Cameron for failing to “step up to the plate” on climate change. It analysed the performance of the government on its policy commitments to cut carbon emissions and boost the green economy, based on in-depth interviews with 40 ministers and officials across Whitehall. Of the six promises judged outright failures, half were the responsibility of the Treasury, including a promise to increase the proportion of green taxes in overall revenue, which was hampered by George Osborne’s cut in fuel duty . The Treasury has also failed to introduce green ISAs and to reform aviation taxes . A further 16 commitments were making only moderate progress, the report found, because of delays or badly designed policies. The report argues that the green investment bank (GIB), another coalition promise, is vital in providing the investment needed to wean the UK off fossil fuels, but adds: “Progress has been hampered by the Treasury which was instrumental in preventing the GIB from having any borrowing powers during the course of this parliament. This is a prime example of a major decision the government essentially got right, but its impact is limited because of a lack of cross-government support.” Poor-quality policy is damaging another flagship government scheme, the “green deal”, the report said. It is a scheme, described as “radical and game-changing” by ministers, to transform the nations’ homes by enabling insulation and other energy efficiency measures to be paid for from the subsequent savings on gas and electricity bills. “The government is not working to this end. The programme is not being designed to deliver on a scale consistent with meeting carbon budgets,” the report said. The report says the government is making good progress on seven commitments including cancelling the third runway at Heathrow , introducing an £860m scheme for renewable heating systems , and most importantly, accepting its official adviser’s recommendation that the UK should cut its greenhouse gas emissions by 50% by 2025 , a world-leading ambition. But it notes: “That decision [on the 2025 target] was a key moment [but] was undercut by the very public interdepartmental battle that preceded it which made the resistance of ministers in Treasury and business to stretching emissions reductions targets very clear. Ultimately the prime minister intervened but the perception of divisions within government over the importance of the low carbon transition remains.” The battles over this and the GIB “convey the perception that core departments have to be dragged over the low carbon line, and undermine investor confidence”. The Department of Energy and Climate Change (Decc) said: “The government stands by its record on green policies over the last year to deliver the low-carbon economy, with progress on a whole host of areas and a lot more on the way: we are determined to make the UK the destination of choice for global low-carbon investment. On top of this, Whitehall is leading by example: we have cut emissions in central government departments by 13.8% in just one year.” “The Treasury has made important progress on a range of green initiatives,” said a Treasury spokesman. “We are fulfilling our commitment to introduce a carbon price floor – a world first – [and have made] £3bn available for the green investment bank.” Mike Clarke, the chief executive of the RSPB, said: “There is a common thread running between the government’s underwhelming performance on climate change, and its current, flawed approach to planning reform. We are seeing a clear conflict at the heart of the coalition between green growth and economic growth at any cost.” “Decc is trying hard and doing good things,” said Spencer. “But the sum is less than the parts, as there is no strategy that joins them across Whitehall. Cameron appears to support this agenda but we want to get him out onto the stage.” Some commentators have suggested Cameron’s near silence on climate issues since the election and Osborne’s obstructions stem from not wanting to alienate the right wing of their party. “But that didn’t stop [Margaret] Thatcher from championing the environment,” said Spencer. Green economy Green investment bank Green politics Liberal-Conservative coalition David Cameron Green deal Climate change Carbon emissions Damian Carrington guardian.co.uk
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Swiss bank UBS has admitted that its investment banking arm has lost around $2bn (£1.27bn) through “unauthorised trading”. Shares in UBS fell by almost 10% in early trading after it reported the loss, which could push the bank into the red for the current financial quarter. In a brief statement, issued on the third anniversary of Lehman Brothers, UBS said that the issue was still being investigated. “UBS has discovered a loss due to unauthorized trading by a trader in its Investment Bank. The matter is still being investigated, but UBS’s current estimate of the loss on the trades is in the range of $2bn. It is possible that this could lead UBS to report a loss for the third quarter of 2011. UBS added that “no client positions were affected.” Simon Ballard, senior credit strategist at RBS capital markets, said the trading loss would add to public concern over the banking sector . “At a time of greater regulation, it will raise questions about regulatory capital and whether ringfences are in place to stop this happening,” Ballard told Bloomberg TV. More details soon UBS Banking European banks Switzerland Europe Graeme Wearden guardian.co.uk
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Committee to ask if BlackBerry Messenger was used to plan disorder – and also question Facebook and Twitter executives BlackBerry maker Research in Motion will come under the spotlight on Thursday when a Commons select committee investigates whether BlackBerry Messenger played a key role in the civil unrest across England last month. Several MPs on the home affairs select committee are understood to want to put BlackBerry Messenger (BBM) under intense scrutiny following claims that rioters used the private network to plan the disorder . Unlike Facebook and Twitter, BBM is encrypted and its messages hidden from public view. One committee member who declined to be named said: “There was suggestions from police that BBM in particular was used to facilitate organised crime during the riots. The question is, does [Research in Motion] have a responsibility to monitor its network or should the authorities have the power to do that? That is one of the issues to tackle without equating us with an authoritarian state.” Stephen Bates, RIM’s UK managing director, is expected to face questions from MPs on the company’s view of law enforcement being given additional powers to shut down social networks in times of unrest. MPs are understood to be keen to move away from “kneejerk” responses such as banning potential rioters from websites – as proposed by David Cameron in the immediate aftermath of the disorder – but will approach the “exceedingly controversial” topic, according to the same committee member. Executives from Facebook, Twitter and RIM will all appear before the committee on Thursday afternoon, following appearances from six senior officers from Greater Manchester police, West Midlands police and Nottinghamshire police. A second committee member suggested the social networks would be asked whether they would be willing to release data – including users’ messages and contact details – as they do when ordered for phone calls and text messages. “[The committee hearing] will be about disentagling the rhetoric in the immediate aftermath and how that differs from the realities of the meetings that they’ve had with [with government and law enforcement],” the MP said. The three social networks were summoned to a meeting with the home secretary, Theresa May, following the unrest. The government rowed back on a suggestion from the prime minister that it would look to restrict the sites during times of disorder. Twitter is understood to have flown in its California-based general counsel, Alexander Macgillivray, for the hearing. The Facebook head of policy, Richard Allen, will represent that social network. •
Continue reading …Taxi driver found dead at his mother’s house in Preston, Lancashire, along with baby son who later died in hospital A father is thought to have killed his six-month-old son before hanging himself. Paul McBride, 39, was found dead at his mother’s house in Preston, Lancashire, on Wednesday. His son, who has not been named, was found in a “very poorly” condition and taken to hospital where he was later pronounced dead. Officers and family had been looking for the taxi driver after concerns were raised about his welfare. His sister found his body after arriving at the house in the suburb of Ribbleton, shortly after 6pm. Their mother, Denise Betts, is thought to be on holiday in France. Lancashire Police have launched a murder investigation but are not looking for anybody else in connection with the incident. A post-mortem examination will take place on Thursday to establish how the child died. A police spokeswoman said detectives from the force’s Major Investigation Team were leading the inquiry. “Officers were called to an incident at an address in the Ribbleton area of Preston at around 6.15pm,” she said. “On arrival, a man was found dead and a six-month-old boy was in a very poorly condition. He was taken to the Royal Preston Hospital where he sadly died.” Detective Superintendent Neil Esseen, who is leading the investigation, said it was an “incredibly tragic” case. “It is being treated as a murder inquiry, although we are not looking for anybody else in connection with this incident, he said. “We are still in the very early stages of this investigation, but we are conducting a number of inquiries in order to establish the exact circumstances surrounding the deaths.” A neighbour said: “It’s shocking, a terrible thing. I knew Paul. He was a happy, jolly type. He was always jokey and loved football. “He had moved away, so we didn’t see much of him any more. His mother is on holiday so I don’t even know why he was at the house.” Crime guardian.co.uk
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