Delays As Eurostar Resumes After Fire

US Economic Growth Slows To 2.6% Annual Rate

Written By Unknown on Sabtu, 31 Januari 2015 | 18.56

US economic growth slowed in the final quarter of 2014, but its performance was enviable when compared to new woes for the eurozone and Russia.

It was confirmed on Friday that the fastest pace of US consumer spending since 2006 was offset by lower business spending and a wider trade deficit in the three months to December.

The annualised measure for the period came in at 2.6% - meaning gross domestic product (GDP) rose 2.4% for 2014 as a whole - only behind that of Britain in the major industrialised economies.

Consumer spending, which accounts for more than two-thirds of US economic activity, advanced at a 4.3% pace in the fourth quarter - they key holiday season for retail.

Improved jobs and wage figures, coupled with a 43% fall in petrol prices since June, have meant that Americans have more to spend.

The strong pace of consumer spending was overshadowed by a drop in capital expenditure.

Business spending on equipment fell at a 1.9% rate - the largest contraction since the second quarter of 2009 - possibly reflecting cutbacks in the oil industry given the plunging prices.

Economists did not see a connection to world economic weaknesses denting confidence.

The growth figures were released as other economic developments highlighted pressures facing much of the rest of the world.

It emerged that negative inflation deepened in the struggling eurozone last month.

Price growth was measured at an annual rate of -0.6% amid the crash in oil values, which is actually expected to support economic activity ahead of the European Central Bank's €1.1tn quantitative easing programme starting in March.

The central bank action is aimed at halting a slide towards deflation - an entrenched period of falling prices, which tends to put consumers and businesses off making purchases in case they can secure goods and services cheaper, later.

Russia's reliance on its oil revenues - coupled with the impact of Western sanctions over Ukraine - is set to tip the country's economy into recession.

Its central bank confirmed on Friday that such was its concern about its economic outlook, it would cut its core interest rate from 17% to 15%.

It was moved to the higher rate just late last year to try and shore up the rouble, which has dived in value against the dollar, and prevent inflation soaring out of control.

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Shake Shack Shares Sizzle On Market Debut

By Sky News US Team

Shake Shack, a former New York City food cart which is now a gourmet burger chain challenger to McDonald's, rocketed upon its stock market debut on Friday.

Shares spiked nearly 120% to close at $45.90 on Friday, valuing the chain at $1.6bn (£1bn).

Shake Shack has hit on a winning formula with millennials by serving up hormone and antibiotic-free beef, crinkle-cut fries, shakes and beer.

Fifty-six-year-old founder Danny Meyer's 21% stake was worth about $390m based on the trendy company's opening day high.

It served burgers free of charge on Friday to the public out of food trucks on the street outside the New York Stock Exchange, where it was trading under the ticker symbol "SHAK".

The company has 63 locations in nine countries, but most of them are along the US East Coast. Others are in Las Vegas, Chicago, London and Istanbul.

It plans to use some of the cash raised from its initial public offering to open restaurants in new markets and to renovate existing stores.

The company said it expects eventually to have 450 locations.

Shake Shack started out in 2001 as a hot dog cart in Manhattan's Madison Square Park, before establishing itself as a kiosk three years later.

Its flotation comes two days after McDonald's dumped its chief executive amid its worst US sales slump in more than a decade.

Shake Shack is still a fraction the size of McDonald's, which has more than 36,000 locations around the world, including more than 14,000 in the US.

But it is one of the so-called "fast-casual" upstarts, including Five Guys and burrito-maker Chipotle, which is taking a bite out of the fast-food behemoth's market share.

Americans ordered nine billion burgers at US restaurants last year, up 3% on the year before, according to market research group NPD.

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Greece Wants 'Rethink' Of Whole Bailout

Greece's newly elected anti-austerity government has said it will not co-operate with its international "troika" of creditors - the European Union, the European Central Bank and the International Monetary Fund.

Greece's finance minister Yanis Varoufakis said that despite warnings his country would shortly run out of money, his government preferred to do without fresh funds and instead renegotiate its entire €240bn (£180bn) bailout package.

Athens has been promised another €7.2bn (£5.4bn) in funds from the troika if it completes reforms required by its lenders by 28 February, when the bailout programme runs out.

"This government was elected on the basis of analytically questioning the very logic of the programme now being applied," Mr Varoufakis said, referring to the reforms and budget cuts demanded by the troika.

"We don't want the €7bn ... We want to sit down and rethink the whole programme."

But the stance has already drawn criticism from top EU officials, and Germany's Angela Merkel.

"There has already been voluntary debt forgiveness by private creditors, banks have already slashed billions from Greece's debt," Mrs Merkel said.

"I do not envisage fresh debt cancellation."

Her comments follow remarks made at a strained news conference between Mr Varoufakis and Eurogroup chief Jeroen Dijsselbloem.

Mr Varoufakis said Athens was willing to negotiate with its lenders but not with the troika, which he described as a "committee built on rotten foundations".

Mr Dijsselbloem said Greece and the Eurogroup had a "mutual interest in the further recovery of the Greek economy inside the eurozone" and warned against Athens acting on its own.

"Taking unilateral steps and ignoring previous arrangements is not the way forward," Mr Dijsselbloem said.

"The problems of the Greek economy have not disappeared or changed overnight with the elections."

Further concern comes from the potential of the anti-austerity political movement spreading to other nations, with a large "march for change" expected today in the Spanish capital Madrid to support new far left party Podemos.

The troika was formed in 2010 to rescue debt-riddled Greece with the bailout on the condition Athens imposed huge spending cuts and fiscal reforms.

Prime Minister Alexis Tsipras was elected last Sunday on a platform of ending austerity and erasing most of the country's national debt.

Sources said Mr Varoufakis will meet French counterpart Michel Sapin later today in Paris.

Mr Tsipras will meet Italian Prime Minister Matteo Renzi on Tuesday and French President Francois Hollande on Wednesday, but has no plans to visit Germany - Europe's biggest economy and its effective paymaster.

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PPI Scandal: New Compensation Rules Possible

Written By Unknown on Jumat, 30 Januari 2015 | 18.56

The City regulator is to review whether current arrangements for compensating people mis-sold payment protection insurance (PPI) are working.

The Financial Conduct Authority (FCA) said today it was to collect evidence for a report due in the summer to consider whether new rules were required to improve the process.

Banks and other lenders have set aside more than £24bn to cover the costs of the mis-selling - the costliest scandal in the history of Britain's financial services industry.

PPI was meant to protect borrowers in the event of sickness or unemployment but was often sold to those who would have been ineligible to claim.

More than £17bn has already been paid out to consumers who were wrongly sold the policies and the flood of cash has been credited with propping up spending in the country's economic recovery.

Regulators have previously intervened to better protect consumers.

The FCA said this review would make sure the process was working for all sides.

The watchdog said: "The FCA will then consider whether further interventions may be appropriate, which could include a consumer communication campaign; a possible time limit on complaints; or other rule changes or guidance, or whether the continuation of the PPI scheme in its current form best meets its objectives.

"While this work continues, the FCA expects firms to continue to deal with PPI complaints in accordance with our requirements."

The FCA said that since January 2011, banks have handled over 14 million PPI complaints and paid compensation on more than 70% of those claims.

The Financial Ombudsman said on Tuesday that the number of complaints about loan insurance fell in the fourth quarter of 2014, but were still running at around 4,000 a week.

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Pay Crash Hit Those In Twenties Hardest

A report examining the damage to wage levels following the financial crisis has found that people aged between 22 and 29 have been hit hardest.

The research by the Institute for Fiscal Studies (IFS) said that wage levels remained below their peak in 2008, with those in their twenties suffering a 9% fall.

Average hourly wages in 2014 were 4.7% lower in real terms than they were pre-crisis, the IFS said, with rates for men still 7.3% down.

Women were taking home 2.5% less, the think-tank reported.

It said one of the reasons for the discrepancy was that women were "significantly" more likely than men to work in the public sector, where pay has fallen by less than in the private sector.

Britain is currently enjoying record employment levels and wages are now rising faster than inflation, but it will take years to make up lost ground on salaries which endured six years of pain.

Jobs were slashed and pay levels were static or cut following the banking crisis of 2008 when lending dried up and the coalition Government later moved to cut the deficit and limit national debt growth by trimming spending.

Jonathan Cribb, an author of the report and a Research Economist at the IFS, said, "Almost all groups have seen real wages fall since the recession.

"The pay of young adults remains well below its pre-crisis level after particularly large falls between 2008 and 2011, while the average pay of those aged 60 and over has already recovered.

"Women have seen much smaller falls than men. Falls for the low-paid have been somewhat smaller than for those on higher pay, driven by trends since 2011."

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Beer Sales Up For First Time In A Decade

Sales of beer increased in the UK for the first time in a decade during 2014, thanks to tax cuts and a surge in supermarket sales, according to an industry report.

The British Beer and Pub Association (BBPA) said supermarket and off-licence sales overtook pubs for the first time last year with growth of 1.3% in overall sales achieved despite a 0.8% decline in pubs.

The annual Beer Barometer said nine previous years of falls had seen beer sales slide by 24%, with 6.7 million fewer pints sold per day.

And the BBPA said the turnaround followed two cuts in beer duty announced in the last two Budgets, with tax on a typical pint having reached 65p before the decision to scrap the controversial duty escalator in 2012.

The lobby group argued for a further reduction in the final Budget before the General Election to give a further boost to the industry.

More than 10,000 pubs have closed since UK smoking bans were introduced, with the squeeze on household budgets since the financial crisis also among industry reasons for weaker trade.

The shift towards store bought beer has long frustrated many pub companies, which say urgent tax reform is needed to create a level playing field on price.

The boss of JD Wetherspoon, Tim Martin, has been the most vocal in his demands for parity, on VAT in particular.

He has suggested supermarkets are able to "subsidise" their alcohol prices because they do not pay the 20% rate on food while pubs and cafes do.

BBPA chief executive Brigid Simmonds said: "British beer is back in growth - and we want to keep it that way.

"But with 70% of pub drink sales being beer, the picture for our much loved pubs is still fragile.

"That is why another duty cut from the Chancellor is vital. It will build on the success of two very popular tax cuts in the past two years, and boost jobs in an industry that employs 900,000 people, almost half of whom are 16-24 year olds."

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Tesco Drink Recalled Over 'Disgusting Smell'

Written By Unknown on Kamis, 29 Januari 2015 | 18.56

Tesco has recalled one of its own-brand squash drinks after customers complained of a "disgusting smell" and some children were reportedly left vomiting.

Some parents have raised the possibility that it could have caused their children's upset stomachs.

The supermarket said it had withdrawn the Tesco No Added Sugar Double Concentrate Apple and Blackcurrant 750ml and 1.5-litre products.

A flavour additive was added in error to the squash, but Tesco said it posed no food safety risk.

A post on the PlayPennies website which had alerted users to the recall led to a flurry of replies from those who said they had opened the squash and noticed an unusual odour.

Others reported their children had been physically sick after drinking it.

One poster wrote: "I bought 2 bottles of this squash over a week to a fortnight ago.

"We opened one and it smelt absolutely disgusting ... the only way to describe the smell was that it had been mixed with used toilet water..."

Clairedavies85 said: "Had this other day. The smell was horrendous but drank it anyway as I thought they just changed it.

"Since then both my daughter and partner have had bad bellies."

MrsD32 posted: "We finished a bottle of this yesterday and opened a new one last night.

"My eldest 2 children are off school today, one with diarrhoea and the other was sick all night. I hope this is a coincidence Tesco but it's not looking very likely!"

Swilly26 wrote: "I gave this to my son on Sunday then Sunday night he was sick. He's had some more today and been sick again..."

A message on the Tesco website said: "Sorry, this product is currently not available."

A Tesco spokeswoman said: "We have investigated with our supplier complaints about Tesco No Added Sugar Double Concentrate Apple and Blackcurrant 750ml and 1.5l.

"A flavour additive, which is not part of the ingredients for this product, has been added in error. The additive is called Dimethyl Disulphide and is a common ingredient in food products.

"It is an approved additive and poses no food safety risk. However, it does have a strong odour, similar to garlic, which customers are likely to find unpleasant.

"Only products bought since the New Year may be affected, they will have a best-before date of October 2015.

"Any customers can return this product, open or unopened, to any Tesco store."

It is the latest in a string of problems for the company, including falling sales and a £263m profits overstatement.

Tesco announced last month it would close 43 stores as it moved to save costs, and has now revealed the locations, placing 2,000 jobs at risk.

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Tesco To Axe Thousands Of Head Office Jobs

By Mark Kleinman, City Editor

Tesco has begun a cull of head office staff that is expected to involve thousands of job losses as its new chief executive slashes costs and strives to reinvigorate the UK's biggest retailer.

Sky News has learned that the company has in recent days begun informing senior staff of changes to the structure of its head office functions, which currently employ around 8,000 people.

Insiders said around 120 business unit leaders had commenced individual discussions with hundreds of directors across the Cheshunt and Welwyn Garden City offices on Wednesday, with talks set to continue on Thursday and Friday.

Those affected include senior employees at commercial and category director levels.

Dave Lewis, Tesco's new chief executive, said earlier this month that as much as 30% of its head office cost-base could be removed as part of his transformation plan.

While part of these savings will relate to areas other than headcount, senior sources predict that "at least" 2,000 jobs at Tesco's headquarters will disappear over time.

No final number has been determined yet, with further decisions about role reductions further down the head office structure to be made in the coming weeks, one insider said.

The scaling back of some of its international operations meant there was unnecessary duplication of some functions, they added.

As part of his efforts to revive Tesco following a £263m commercial payments scandal and a slump in sales and profits, Mr Lewis has decided to vacate the Cheshunt site which has been its home for decades.

He is also planning to sell non-core businesses and has drafted in Matt Davies, the boss of Halfords, to run its UK operations.

News of the head office cuts comes just a day after Tesco outlined details of dozens of store closures, which will result in as many as 2,000 more jobs being axed.

Among the 43 shops being shut will be a number of its larger-format superstores and half a dozen of its non-grocery Homeplus outlets.

The changes demonstrate the pace at which Mr Lewis, who also sits on the board of Sky, the parent of Sky News, is tackling the malaise which had engulfed Tesco in recent times.

Under his predecessor, Philip Clarke, who was ousted last summer, Tesco saw sales decline even as the company's head office cost-base grew by 30% between 2011 and 2014.

Analysts accused Mr Clarke of failing to anticipate the growth of discounters Aldi and Lidl and of not acting sufficiently quickly to unravel expensive mistakes made by Sir Terry Leahy, who he replaced in 2011.

The Serious Fraud Office is now investigating how Tesco came to overstate profits by £263m, with supplier payments at the centre of its inquiry.

Nine executives were suspended, with four having since left the company and one being reinstated.

Last week, Sky News revealed Tesco had narrowed the search for a successor to Sir Richard Broadbent to Sir Ian Cheshire, the recently departed chief executive of Kingfisher, and John Allan, the chairman of housebuilder Barratt Developments.

Tesco declined to comment.

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Protesters To Rally Against Fracking Proposals

Written By Unknown on Rabu, 28 Januari 2015 | 18.56

By Mike McCarthy, North of England Correspondent

Demonstrators from around the UK are expected to gather in Lancashire today, ahead of a controversial decision on the future of fracking in the county.

It is the first time that Cuadrilla, an exploration company, has applied to develop new fracking sites since being blamed for creating earth tremors in Blackpool three years ago.

The firm suspended test drilling and abandoned its site near the seaside resort following the quakes in 2011.

The Preese Hall site remains the only place in the UK where modern fracking techniques have been used so far.

And the new areas sit on the same massive reserve of shale gas which experts say could help revolutionise Britain's energy market.

But groups opposed to fracking say it would industrialise the countryside and pollute the environment.

Cuadrilla has applied to Lancashire County Council for permission to frack two sites in a rural area between Preston and Blackpool.

Officers at the authority have recommended that councillors vote against the proposals because of concerns over noise and road safety.

If the councillors accept the recommendations, it will be seen as a major blow to the efforts to kick-start Britain's shale gas industry.

Anti-fracking campaigner Tina Rothery said: "Like many people in the anti-fracking movement, we have completely put our own lives on hold for four years just to get this done - because how do you walk away from this?

"Every door I would look to walk out of would have my granddaughter's face on it. I can't walk away and go 'It's okay - they'll take care of it' because it's too big."

Fracking, or hydraulic fracturing, is the process of drilling a mile or more into the earth before water, chemicals and sand are injected under high pressure into rock, releasing the shale gas trapped inside.

In recent years, it has become one of the most divisive issues in the UK, leading to violent scenes between police and protesters at proposed sites in Manchester, Lancashire and Sussex.

Supporters such as Blackpool businessman Tony Raynor claim his interest in fracking was prompted by the local earth tremors several years ago.

"Like most people, I was ambivalent to shale gas, but the tremors made me want to find out more. Now I'm in favour," he said.

"There are fewer jobs here now than there were in 2004 and we all worry about the brain drain (from the area) and our children finding opportunities in this region. We need economic activity happening in Blackpool."

The anti-fracking movement has built up considerably over recent years. Its supporters say pollution in the US has shown the process is environmentally unsustainable.

However, supporters argue that it has considerably reduced America's dependence on imported energy supplies and helped to bolster the economy.

Cuadrilla has asked that the local authority allows more time to consider its proposals for minimising the environmental impact at fracking sites. If Lancashire councillors do reject Cuadrilla's plans, the company is expected to appeal.

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Apple $18bn Profit Is World Corporate Record

Apple has reported quarterly profits of $18bn (£11.8bn) for the final three months of 2014 - the largest ever made by a public company.

The technology giant's financial performance was driven by a new range of larger iPhones, with 74.5 million handsets sold between October and December.

Its net profit far exceeds the previous record-holder, ExxonMobil, who reported earnings of $15.9bn (£10.5bn) during the second quarter of 2012.

Experts had predicted that Apple's total revenues would be $53.6bn (£35bn) for the quarter - but Apple's CEO Tim Cook says this was closer to $74.6bn (£49bn).

According to technology analysts, it took Apple a long time to get to grips with the fact that the public wanted larger screens - causing their market share to plummet.

Gartner's Van Baker said: "They finally closed the gap on a feature they were missing, which their competition had capitalised on."

Some investors are concerned about how Apple will perform financially in the coming year, with iPad sales down 22% in the last quarter, and warnings that growth in the smartphone sector is beginning to slow.

The iPhone accounts for two-thirds of Apple's revenue and China sales rose 70% on the year, thanks to the larger screens of the iPhone 6 and iPhone 6 Plus.

Analysts now estimate the company is leading the smartphone market in China, despite its products costing double those of domestic rivals.

Although the California-based firm is planning to launch a smartwatch in March, it remains unclear whether the device will be a big hit with customers.

Other companies have been disappointed with demand for similar offerings, amid concerns that the battery life is insufficient for a whole day's use.

Apple is currently the world's most valuable company, with a market capitalisation of $651bn (£428bn).

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Five Reasons For Apple's World Record Profit

Apple has reported the largest quarterly profits ever made by a public company - $18bn (£11.8bn). Here's why Apple fortunes are so rosy...

Apple Is Following The Crowd

Apple unashamedly followed the crowd by launching its big-screen iPhone 6 and 6 Plus devices.

For years Android users had big-screen options, but Apple users had to wait until 2014 for the large display experience.

It has paid off - technology reviewers loved it and so do the customers: Apple sold 34,000 iPhones in every hour of every day in final quarter of 2014.

It Has Finally Cracked The Chinese Market

A deal struck more than a year ago appears to have been key to Apple's record-breaking quarter.

In December 2013 it began to offer iPhones through China Mobile, the world's largest mobile network.

The deal followed months of meetings between executives at the two companies.

The move meant that the network's 700 million customers suddenly had the easy option of switching to Apple's flagship phone.

As a result, sales rose by 70%.

Apple Is Bringing New Customers On Board

Market trends show that when people pick a side - Apple, Android, Windows Phone, or BlackBerry - it's incredibly difficult to get them to change.

But the iPhone 6 and 6 Plus has seen the highest number of first-time Apple buyers since the original iPhone was released in 2007.

It may be because some reviewers believe it is the most complete iPhone to date - one called it the "perfect smartphone".

It No Longer Thinks It Knows Best

For years Apple executives balked at giving customers too much control over their devices; the app store's walled garden is a perfect example.

But that is starting to change - customers were given a choice of two different sizes of iPhones, the keyboards are finally customisable, and widgets can finally be added to the home screen.

There's more to come; the new Apple Watch will come in a variety of design combinations.

Customers appear to like having the extra control over their devices.

It's Putting People In The Picture

Commentators have started to suggest that while the phone itself is a great piece of design with slick software, the biggest plus of the iPhone is its camera.

Lens and camera specialists DxO Labs named the iPhone 6 as having the best camera of any smartphone.

Some rival phones have higher numbers of pixels, or better focusing technology, but as an overall package the consensus is that the iPhone camera is best.

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Greece Lightning: Could Syriza Success Spread?

Written By Unknown on Senin, 26 Januari 2015 | 18.57

By Robert Nisbet, Europe Correspondent

As car horns blared in the capital's streets, few doubted this had been a seismic night in European politics.

Five years of swingeing cuts have shrunk Greece's economic output by a third and delivered a primary budget surplus, but the price has been too high for many of the electorate.

A third of people in Greece live below the poverty line, a quarter are out of work and pensioners have seen their income dwindle.

That generalised anger finally found its expression at the ballot box.

While previously Syriza's core supporters had been students and a loose coalition of Marxists, Maoists, Trotskyites and environmental campaigners, it acted as a lightning rod across society.

Many of the squeezed middle class wanted to punish the political parties they felt had sold Greece's future prosperity to protect the banking system.

Alexis Tsipras now has something of a dilemma though: he wants to keep Greece in the single currency but the European Union, the European Central Bank and the IMF won't want the country to renege on its promises.

There were strings attached to the €240bn which have kept the country afloat and the likes of Germany are unlikely to agree to allow Greece to restructure more of its debt.

But if Mr Tsipras softens on his vow to "finish the troika" in order to prevent a default and a so-called Grexit, he may anger his core support base.

The wider repercussions could be felt outside the country's borders.

There are a host of other anti-austerity parties in Europe waiting to challenge the consensus, most prominently Podemos in Spain where an election must be held this year.

If this election grows into a pan-European movement, the plumbing of the global economy could face some determined opposition.

Syriza's progress might well embolden those willing to take on established political parties, which could have far reaching consequences.

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Energy Bills: SSE Latest Firm To Cut Gas Cost

Another of the so-called 'big six' energy firms, SSE, has confirmed it is to trim its household gas costs and said it will extend its promise not to raise bills.

The company said it would reduce household gas prices by 4.1% but not until 30 April - with the cut saving a typical household customer £28 annually.

It added that its commitment not to raise gas and electricity costs would run for an extra seven months until July 2016.

Alistair Phillips-Davies, SSE's chief executive, said: "Customers are at the heart of SSE's business, and our work to secure their energy supplies in wholesale markets last spring enabled us to guarantee that prices would not increase until at least January 2016, showing we are committed to treating all of our customers fairly and to giving them stable prices over the long term.

"We're being true to that commitment with a 4.1% reduction in the typical gas bill and an extended guarantee meaning gas and electricity prices won't go up before July 2016 at the earliest.

"The challenging business environment we identified at the start of this financial year is likely to continue into the new financial year and we believe that addressing the resulting issues directly is the right thing to do for customers and the best way of safeguarding the interests of investors.

"That is why, at the same time as reducing tariffs for customers, we're continuing to make sure our own house is in order for the future, with a clear focus on our value programme to make sure SSE is well-positioned for the long term."

The company announced the price changes in a trading update for the first nine months of its financial year in which it said profits for the full year would be broadly in line with those for the previous 12 months.

SSE said the prolonged period of mild weather to 31 December 2014 meant that average consumption of electricity was estimated to have fallen by 5.6% while average consumption of gas dropped by almost 16%.

It also confirmed a fall in the number of households taking its gas and electricity - with 8.71 million customers registered on 31 December, down from 9.10 million on 31 March 2014.

While wholesale gas costs have tumbled 30% in the past 12 months, household suppliers have argued that it will not be reflected in bills for some time because they have to buy the raw product up to three years in advance.

They also point out that other costs within a typical bill, including network costs and so-called 'green levies', have risen.

The market is currently subject to a probe by the Competition and Markets Authority.

There is only one of the big six yet to announce a cut in its standard gas tariff - EDF Energy.

Npower said last week its average tariff would come down by 5.1% from 16 February, making it the largest percentage price cut in the recent wave of announcements from the sector.

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Greece's Syriza Forms Anti-Bailout Coalition

Greece's left-wing Syriza party has formed an anti-austerity coalition government, just hours after sweeping to victory in Sunday's national election.

Party leader Alexis Tsipras struck a coalition deal with the right-wing Nationalist Independent Greeks party which, like Syriza, opposes Greece's tough international bailout deal.

"From this moment there is a government in the country," Nationalist Independent Greeks leader Panos Kammenos said after talks with Mr Tsipras at Syriza's headquarters in Athens.

"The Independent Greeks give a vote of confidence in Prime Minister Alexis Tsipras. There is an agreement in principle."

Syriza won 149 seats in the 300-seat parliament, just two seats short of an overall majority.

It had a 8.5-point lead over the ruling conservative New Democracy party of outgoing Prime Minister Antonis Samaras.

Mr Tsipras will be sworn in later this afternoon.

The unusual pairing of parties from opposite ends of the political spectrum, but with a shared drive to reverse painful austerity measures, raises the prospect of a stand-off with European creditors and economic powerhouse, Germany.

In his victory speech Mr Tsipras vowed Greece would abandon the "catastrophic austerity" measures imposed under the EU-IMF deal.

He has also promised to renegotiate the repayment terms of Greece's €240bn (£176bn) international bailout.

"Greece leaves behinds catastrophic austerity, it leaves behind fear and authoritarianism, it leaves behind five years of humiliation and anguish," Mr Tsipras told thousands of supporters in Athens.

But a spokesman for the German Chancellor said Angela Merkel still expects Greece to stand by its commitments to international creditors, while Chancellor George Osborne said Syriza's promises were going to "be very difficult to deliver".

The head of the Eurogroup, made up of eurozone's 19 finance ministers, Jereon Dijsselbloem, also fired a warning shot at the new government, saying Greece's eurozone membership depended on it complying with its agreements.

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Gallery: Tsipras' Surprising First Post-Election Tweet

Syriza party leader Alexis Tsipras' first tweet after sweeping to victory in Greece's general election was somewhat unexpected

His first victory tweet was to British actor and comedian Hugh Laurie for this message of congratulations

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Three Dials O2 To Become Biggest Mobile Firm

Written By Unknown on Minggu, 25 Januari 2015 | 18.56

A cash deal of more than £10bn could lead to the creation of the UK's largest mobile phone operator, with Three taking over O2.

Three's parent, Hutchison Whampoa - owned by the richest man in Asia, Li Ka-Shing - said it was in "exclusive negotiations" with Telefonica to buy the UK's second-largest mobile firm for £10.25bn.

Hutchison confirmed in its statement that it had offered £9.25bn, with a deferred further payment of up to £1bn after completion of the deal but it said any agreement would be subject to due diligence and regulatory approvals.

Any tie-up would be likely to interest industry authorities as it would reduce the number of players in the UK mobile phone market to three - hitting competition - despite the possibility of both brands remaining.

The telecoms watchdog, Ofcom, could demand that Three and O2 hand over some spectrum capacity to rivals.

A combined player would create a company with a current market share of around 40% - with 31 million customers between them.

Three, which is currently the smallest of the UK's mobile operators in terms of market share behind Vodafone, has been setting lower price tariffs in a bid to attract new customers and grow its stable.

EE - which is the current market leader with 32% - is on the verge of being snapped up by former O2-owner BT in a deal worth £12.5bn.

BT is bidding to become a so-called "quad play" provider by bundling home phone, mobile, TV and broadband services together in a single package.

Its proposed deal with EE sparked a frenzy of speculation about whether other players in those markets would look to follow suit through either acquisitions or partnerships.

Telefonica's willingness to part with O2 was seen as acceptance that it did not want to enter the quad play arena in what is a declining mobile phone market.

It is widely believed to be looking at emerging markets to achieve growth.

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Li Ka-shing: Phone King Is Business 'Superman'

Li Ka-shing has a fortune currently estimated by financial information firm Forbes at about $35bn (£23bn).

His sprawling ports-to-retail global conglomerate operates in more than 50 countries. Here's a look at the life of Asia's richest man:

:: Humble Upbringing

Born in 1928 in Chiu Chow, a coastal city in the southeastern part of China. At the age of 12 he was forced to quit school and fled to Hong Kong with his family to avoid war.

Before he was 15, Li's father died and the teenager faced the prospect of providing for his family. He found a job in a plastics firm where he worked for 16 hours a day. But by the 1950s he had pursued a venture making and exporting plastic flowers to the US and started his own company, Cheung Kong Industries.

:: Lifestyle

In spite of his wealth, Li has cultivated a reputation for leading a no-frills lifestyle, and is known to wear simple black dress shoes and an inexpensive Seiko wristwatch.

However, his house is in one of Hong Kong's most expensive precincts, Deep Water Bay in Hong Kong Island.

The 86-year-old is said to remain physically fit by rising before 6am every day and playing golf for an hour and a half. He also uses a treadmill for 15 minutes at noon.

:: Wealth

The 86-year-old self-made entrepreneur is Hong Kong's richest person, and has been so for more than 15 years. His sprawling ports-to-retail global conglomerate operates in more than 50 countries.

Because of his wealth, he is regarded as a celebrity and national hero, and even has a wax statue at Madame Tussauds Hong Kong (the only non-artist to have one in Hong Kong).

:: Business

Li is often referred to as "Superman" in Hong Kong because of his business prowess.

From manufacturing plastics in the 1950s, Mr Li led and developed his company into a leading real estate investment company in Hong Kong that was listed on the Hong Kong Stock Exchange in 1972.

It acquired Hutchison Whampoa and Hongkong Electric Holdings Limited in 1979 and 1985 respectively.

Mr Li is the Chairman of Cheung Kong (Holdings) Ltd, the flagship of the Cheung Kong Group which has business operations in over 50 countries around the world and employs over 280,000 staff.

:: Entrepreneur

He has donated more than $1.41bn to date to charity and other various philanthropic causes and has received an Honorary Doctorate from Cambridge University among other education establishments.

In 1980 Mr Li established the Li Ka-shing Foundation, with the aims of nurturing a new culture of giving, supporting education reform and advancing medical research and services. A year later he founded Shantou University, the only privately-funded public university in China.

:: Like Father...

Mr Li has two sons. The elder, Victor, is deputy chairman of Hutchison Whampoa Ltd and holds several other business roles, while the younger son Richard is chairman of PCCW, one of Asia's leading information and technology and telecommunications companies.

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BA Owner IAG Tables Fresh Bid For Aer Lingus

By Mark Kleinman, City Editor, in Davos

The parent company of British Airways (BA) has approached Aer Lingus about a fresh takeover bid for the Irish carrier.

Sky News can exclusively reveal that International Consolidated Airlines Group (IAG) submitted a revised proposal to the board of Aer Lingus within the last couple of days.

Sources said that the board of IAG had authorised an improved all-cash offer earlier this week worth at least €2.50 a share, which would value the Dublin-based airline at more than €1.3bn (£971m).

Directors of Aer Lingus discussed the proposal on Friday with their investment banking advisers from Goldman Sachs, according to insiders.

The disclosure of the approach by Sky News is likely to trigger stock exchange statements by both companies on Monday.

The fresh overture could be sufficient to persuade Aer Lingus to enter into formal takeover discussions with IAG, although it was unclear this weekend whether there were significant conditions attached to the proposal.

It was also unclear whether IAG might be prepared to raise its offer for a third time if the current proposal is rejected.

IAG's chief executive, Willie Walsh, is a former Aer Lingus pilot who went on to run the airline before taking the helm at BA in 2005.

He has made two previous approaches for the Dublin-based carrier, pitched at €2.30 and €2.40 a share, in the past six weeks.

Both were rebuffed by Aer Lingus on the basis that there were undisclosed conditions attached and that they "fundamentally undervalue[d] Aer Lingus and its attractive prospects".

Mr Walsh's attempt to acquire Aer Lingus is designed to cement its grip on take-off and landing rights at London's Heathrow Airport, while enabling him to improve the Irish carrier's profitability by combining some operations with those of IAG.

Already the largest carrier at Heathrow, a merger of the two companies would create a group with close to half of the available slots there.

A Government commission on aviation capacity led by Sir Howard Davies is due to recommend after the General Election whether Heathrow or Gatwick should be allowed to construct a new runway.

Even if Aer Lingus's board is minded to open talks with IAG, Mr Walsh will need to persuade the Irish Government and Ryanair chief executive Michael O'Leary of the bid's merits.

Ryanair owns a 29.8% stake in Aer Lingus and has fought a long-running battle with regulators over both that shareholding and a string of its own bids for its rival dating back to 2006.

Ryanair has been reported to be willing to consider an offer of between €2.50 and €2.70 a share, although the airline insisted on Saturday that this was inaccurate.

The Irish Government holds a 25.1% stake in the airline, and reports have suggested that it could insist that IAG retains Aer Lingus's Heathrow slots solely for flights to and from Ireland as a condition for approving a deal.

Analysts have argued that such a pre-condition would make Aer Lingus less attractive to Mr Walsh, who in addition to his IAG role is also chairman of Dublin's state debt management agency.

IAG was created in 2009 from the merger of BA and Iberia, which has been radically restructured by Mr Walsh against initially intense opposition from Spanish labour groups.

Since then, it has also acquired Vueling, another Spanish carrier, struck an alliance with American Airlines and considered several other big takeovers.

IAG shares closed on Friday up 2.1% at 536p, valuing it at almost £11bn, while Aer Lingus shares closed up 0.4% at €2.35, giving it a market capitalisation of €1.25bn.

Aer Lingus is preparing for a transition in its leadership regardless of Mr Walsh's efforts to acquire it.

The airline's chief executive, Christoph Mueller, is leaving in May to run Malaysia Airlines, which is being nationalised following the disasters last year involving flights MH370 and MH17.

IAG, which is being advised by Deutsche Bank, and Aer Lingus both declined to comment.

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Shop Price Declines Sharpest Since 2002

Written By Unknown on Jumat, 23 Januari 2015 | 18.56

The sharpest annual decline in shop prices since 2002 helped retail sales rise at their strongest level in a decade last month.

The Office for National Statistics (ONS) said shoppers flocked to supermarkets amid their price war and petrol stations to take advantage of plunging pump prices last month.

Prices in stores fell 2.2% in December compared to a year earlier, the biggest drop since June 2002, with the biggest contribution from fuel forecourt costs.

Consumers were able to also take advantage of discounting at many chains, both in store and online.

The data was skewed by the fact that Black Friday sales were included in November's figures for 2014 but were recorded within December's numbers the year before.

Nevertheless, the ONS said overall sales jumped 5% in the three months to December on the same period last year - the biggest increase since 2004.

The performance was far better than economists had expected.

Many had forecast weaker sales on the previous year because of the impact of the Black Friday frenzy in November, which sparked a 1.6% surge in overall sales on the month.

Supermarket prices fell 0.9% in December, reflecting the price war but also falling commodity costs.

Department stores suffered the most from the impact of Black Friday as their online sales fell year on year for the first time since records began at the start of 2008.

Month-on-month volumes for these stores fell by 4.5%, the worst decline since January 1996.

Ian Geddes, UK head of retail at advisory group Deloitte, said: "This was a good Christmas with some strong performances, but it seems the real winner was the consumer.

"Intense competition and deep discounting both before and after Christmas drove sales but will have hit profits hard.

"When Black Friday comes next year many retailers will think very carefully about how to maximise the unquestionable customer demand while taking into account how it impacted profitability and trading through the Christmas period."