http://www.bnn.ca/news/14092.html

According to a BNN story, David Dodge (the former governor of the Bank of Canada) suspects that the bank rate could remain at its ridiculously low rate until 2015. We can only hope that he’s eased into his retirement like so many other blubbering, out of touch geriatrics who have ideas about all of the world’s problems, and none of them coherent. 2015???

We’re approaching a dangerous bubble as it is, with impulsive spenders over-extending themselves on cheap credit like the newly re-skinny Kirstie Alley at a buffet line, seemingly unaware that the very thing they’re stuffing their faces with is what got us into the mess we were in last year.

Clearly, the free market must be allowed to dictate rates in order to work the magic that is capitalism. When supply is high (0.25% bank rate), people will take advantage of the cheap prices. Unfortunately, unlike most commodities, when prices eventually rise we cannot simply put the credit card away. We are stuck with the commitments that we made at the cheap levels, except now the price tag is much higher.

2015??? Seriously?

As I’m sure you can see, I’m blown away that anyone might suggest a five year policy on extravagantly cheap money unless its preceeded by: “That recession was fantastic, let’s have aonther one! What’s the quickest way to make sure it happens?”

Dear current BoC Governor Mark Carney,

I know that you spend most of your time scanning students’ blogs for advice about how to run our country’s national bank, so here goes: Tell Dodge to take a nap. He’s a sweet old man, but the world already has a Grandpa Simpson, and we’re pretty tired of him anyways. It may sound odd, but please charge me more for my money. I’d rather higher rates for everyone than a second recession where we have already used up all of the weapons in our arsenal and are forced to ride out the storm until the inevitable hyper-inflation kicks in.

Thanks so much,

Stoked

Damn, E, who knew they made a beer just for you? One and done...but we know you would then drink three

This is a beer for our hero, Homer Simpson, or for the rest of the Too Old crew.  But, we probaly wouldn’t drink it, because you will see the pricetag below….

A controversial Scottish brewery has launched what it described as the world’s strongest beer – with a 32% alcohol content.

Tactical Nuclear Penguin has been unveiled by BrewDog of Fraserburgh.

That is some strong beer. No need for the Boilermakers anymore!

BrewDog was previously branded irresponsible for an 18.2% beer called Tokyo, which it then followed with a low alcohol beer called Nanny State.

Managing director James Watt said a limited supply of Tactical Nuclear Penguin would be sold for £30 each.

This is an extremely strong beer; it should be enjoyed in small servings and with an air of aristocratic nonchalance Tactical Nuclear Penguin label warning

He said: “This beer is about pushing the boundaries, it is about taking innovation in beer to a whole new level.”

Mr Watt added that a beer such as Tactical Nuclear Penguin should be drunk in “spirit sized measures”.

A warning on the label states: “This is an extremely strong beer; it should be enjoyed in small servings and with an air of aristocratic nonchalance. In exactly the same manner that you would enjoy a fine whisky, a Frank Zappa album or a visit from a friendly yet anxious ghost.”

The issue is, who would really follow the directions?  They can have all the commercials that they want to, but people are not going to drink responsibly BECAUSE of the commercial, they will do it because they know it is the right thing to do.  This is just to protect their neck and pass responsibility to the drinker, which is where it should be.

sometimes, it's the cause AND the solution in the same bottle

However Jack Law, of Alcohol Focus Scotland, described it was a “cynical marketing ploy” and said: “We want to know why a brewer would produce a beer almost as strong as whisky.”

Uhmm…because people like to get faded for cheap?  because they can become a cheap date?  pick your reason.  Plus, some people like beer and hate whiskey.  Why should I have to drink a six pack to get my buzz on if one will do the trick?

The beer has been launched on the day alcohol was at the top of the political agenda with the unveiling of the Scottish government’s Alcohol Bill including proposals for minimum pricing on drink.

Meanwhile, BrewDog’s plans for a new headquarters to produce millions of bottles of beer a year have been approved by Aberdeenshire Council.

The decision was taken at a full council meeting despite having been recommended for refusal by officers because the site at Potterton, near Aberdeen, is in the green belt.

And in the end, beer wins again!  It’s the best way to get through Black Friday!

Saving your business money and helping the environment

The Department for the Environment, Food and Rural Affairs (DEFRA) released a report that states that businesses in the UK could save over £6 billion by putting some easy money saving steps in place.

By managing resources efficiently small businesses could reportedly save themselves over £100,000 per year as well as help to bring down the levels of greenhouse gas emissions.

It’s also worth remembering that during a time of recession small businesses could use £100,000 in a much more useful way such as investing in sales, marketing and product development than throwing it away on utility bills.

Let’s take a brief look at how putting just a few simple steps in place can help optimise your company’s efficiency and save you money:

1. When not being used all office equipment should be switched-off. This includes overnight, weekends, bank holidays. Switching-off just one computer and monitor could save you up to £35.00 per year.

2. Switching off lights in empty rooms and using energy efficient light bulbs could save your company up to 15%.

3. Constantly dripping taps could cost your business a further £400.00 a year. So ensuring you turn taps off fully or spending a little to get a tap fixed could save you a lot of money.

4. Partnering with other businesses to recycle waste or selling it to be used as raw materials could save you 4% of your annual turnover with waste management techniques such as this.

5. Your company could save 8% on your company’s heating bill by simply turning down the thermostat by a single degree!

6. Save up to a month’s worth of fuel over a year with smarter driving techniques such as reducing load and good vehicle maintenance.

7. Invest in efficient equipment to help cut your energy, transport and water costs. It is also worth bearing in mind that the government are running an interest-free energy efficient loans through the Carbon Trust.

8. Refill inkjet cartridges instead of buying new ones. Refilling old cartridges in printers, fax machines and photocopiers is a fraction of the cost of buying them brand new. In addition to this use email where possible and if you do need to print out documents try setting your computer to print double-sided to reduce the amount of paper used.

9. Publicise your company’s commitment to reducing your environmental impact as more than a third of customers will usually favour recyclable products or those with minimal packaging.

10. Some suppliers offer “take-back” schemes for unused products. You may be able to get some money back for them.

Useful links:

Making your small business more energy efficient

Zero percent interest loans for energy efficient equipment

Carbon Trust

DEFRA

Photo by Danilo Rizzuti

Independence would encourage business growth

A more competitive and efficient tax regime is one of the many benefits independence can bring for Scottish businesses, John Swinney said today.

The Finance Secretary was speaking following the publication of Taking Forward our National Conversation: Supporting Business and Enterprise which finds that only the full powers of fiscal autonomy can end the decades of economic underperformance that have held Scotland back.

Key points from the paper include:

• Independence would allow the Scottish Government to introduce a more competitive tax regime which would be more transparent and less costly to administer
• Full financial powers would allow the Scottish Government to borrow to invest in vital, long term infrastructure projects – particularly in terms of Scotland’s transport network

Mr Swinney said:

“For far too long Scotland’s economy has underperformed, held back by constitutional arrangements that have restricted growth, rather than encouraged it.

“The current recession only serves to bring into sharp relief how poorly served Scotland is by the current devolution settlement.

“This paper highlights how independence could help us deliver greater growth in the long term and act more comprehensively to combat the downturn in the short term.

“Independence would ensure that it was within the Scottish Government’s powers both to cut taxes like corporation tax and to introduce a more efficient, transparent system that is less costly to administer.

“For example the UK spent nearly twice as much as Norway, and almost two thirds more than Finland, on tax administration as a proportion of GDP in 2007.

Its conclusion is that only independence allows Scotland the freedom to use the full levers of government to create a more successful country, with opportunities for all of Scotland to flourish, through increasing sustainable economic growth. The document makes clear that business and enterprise benefits would emerge from outcome-focused reform of, for example: fiscal and tax policy and collection arrangements; competition and consumer policy; financial services regulation; promotion of international trade; skills and immigration; and transport infrastructure. An independent Scotland would enable government to be more responsive to local economic needs. There would be an opportunity for more effective and streamlined decision making processes, allowing government to work closely with the business community to create the conditions for successful businesses and for talented people to live, learn, visit, work and remain in a more prosperous nation underpinned by higher levels of sustainable economic growth.

http://www.scotland.gov.uk/News/Releases/2009/11/26152655

IMHO

Scotlands prosperity under Independance is pretty much an assured thing and has been know as a SURE thing for a long long time. Endless Tory , Labour and Liberal LIARS have betrayed and LIED to the people of Scotland.

View from the LEFT

“LABOUR ministers were warned in a secret Whitehall dossier 30 years ago of the powerful case for Scotland becoming independent with booming oil revenues, but the information was kept confidential by Harold Wilson’s government to keep nationalism at bay.

The dossier, most of which was written by a leading government economist in 1974 and 1975, sets out how Scotland would have had one of the strongest currencies in Europe, attracting international capital into its banks in the same way as Switzerland.

It argued Scotland could quickly become one of Europe’s strongest economies with “embarrassingly” large tax surpluses.”

View from the RIGHT

“Adam Smith Institute, Friday, April 27, 2007

The Scottish economy could enjoy record growth if Scotland became independent, leaving the average Scot many thousands of pounds better off each year. This is the finding of a research Briefing Paper published today by the Adam Smith Institute, the free market economic think tank.”

It is a well know FACT that unionism causes UNEMPLOYMENT and a BAD BUSINESS CLIMATE in Scotland

The Governor of the Bank of England, Eddie George has provoked outrage with his comment that job losses in the north were an acceptable price to pay for curbing inflation in the south.

Mr George was quick to add that while rising unemployment in the north-east is undesirable, “monetary policy can only target the economy as a whole, not particular regions or sectors, however uncomfortable that reality might be.”

Job cuts have been rife in the north of the UK with manufacturers Fujitsu, Siemens, Vickers, SR Gent, Grove Cranes together slashing 3,500 jobs.

But many economists believe that we need a certain level of unemployment to control inflation.

Is it fair that those in the North should suffer for the prosperity of the South? Is it time the Bank of England made a significant cut in interest rates?

http://news.bbc.co.uk/2/hi/talking_point/198830.stm

It also caused a POPULATION EXODUS!!

5,116,900 (2006 est)

5,094,800 (2005 est)

5,078,400 (2004 est)

5,057,400 (2003 est)

5,054,800 (2002 est)

5,062,011 (2001 est)

5,083,000 (1991 est)

5,180,200 (1981 est)

5,234,000 (1971 est)

5,201,000 (1961 est)

http://en.wikipedia.org/wiki/Population_of_Scotland

Would the LAST Scot to leave the Union please switch the lights out….Notice the increase in population since the arrival of devolution.

It is time for Scotland to take it RIGHTFUL place as an Independant European Nation and stand on its own two feet and make its own choices. Not just get dragged along on some London financed fiasco and then stand there and say the political equivilant of “Big boy did it ,and ran away…” 

In this time of global credit crunch ,giving the purse strings of the household to the very people that bankrupted the whole nation is an insane policy , SCOTLAND WILL BE SACRIFICED TO SAVE THE CITY if it is deemed nessesary. Scotland has a lot of potential in the modern world , at the front of alternative energy and at the technological and medical cutting edge. Argoculture and tourism and traditional crafts also are strong. I wonder what Englands economy will run on? With NO manufacturing industry and all the economic eggs in one financial sector basket that is hanging on a BORROWED thread ,its not looking a rosey future for the UK or the English economies. Selling Scottish Oil for American dollars will also NOT be an option anymore.

It is time for an Indepandant Scotland with a National Bank of Scotland that prints its own governments, pound notes. NO Scottish version of the Fereral Reserve OR the Bank of England and NO Euro please! I would also support a referendum on EU membership for the Indepandant Republic of Scotland as I am not happy with the way the EU is going.

For more on the subject of Scottish Independance please check these blogs

http://cuthulan.wordpress.com/2009/09/07/ten-good-reasons-for-scottish-independence/

http://cuthulan.wordpress.com/2009/11/01/more-good-reasons-for-scottish-independance/

SOAR ALBA

Hundreds of jobs have been created at a shares firm.

Equiniti, one of the UK’s leading providers of share registration services, is creating 500 temporary jobs at its head office in Holmoak Business Park, Worthing, following what it described as a “significant business win”.

The company is keeping details of the contract under wraps but said staff assigned to the project would undertake a variety of tasks until it is completed in mid-December.

Peter Bottomley, the MP for Worthing West, said: “This is not only great news for Equiniti but great news for Worthing too. The creation of 500 jobs will make a big difference to the community at this time of year and is a testament to the continued success of locally based businesses in this challenging economic climate.”

Related Pages

Banks win in overdraft charges case

With the recent ruling on excessive bank charges on overdraft fees by the Supreme Court in favour of the banks there has been increased speculation that the law has been wilfully misinterpreted so that further financial issues for the banks can be avoided. It has been widely acknowledged that should the Office of Fair Trading (OFT) have won the case against the banks this would have resulted in a loss of £2.6 billion annual income to the banks. It seems to me that both the Supreme Court and the banks in the UK forget we, the taxpaying public, now part own the banks.

I suppose in the current economic crisis that is still gripping the UK, the ruling probably should not come as that much of a surprise to us. Unfortunately it is relatively easy to understand why they ruled in favour of the banks. However, this does not mean that they were right.

Consumers and small businesses alike have every right to be appalled by the outcome of this case, made worse by the pompous arrogance displayed in the British Bankers’ Association (I can think of a better name for them!) comments that the charges were an important part of current account services and the amounts were “not assessable for fairness”. They went on to say:

“We recognise this issue has been of real concern to a large number of our customers and we are pleased that this decision now brings clarity for all parties.”

However, considering the banks make a third of their retail revenues from unarranged overdraft fees that are not only difficult to understand, are not transparent in any way and are not subject to consumer control how much clarity this case has actually brought is debatable really! All it’s really done is highlighted that these were all issues to begin with.

It is also worth considering that the cost to the bank of unauthorised overdraft fees is as little as £2.50 and yet they feel the need to charge a flat rate of anything up to £35.00 a time! In reaction to the outcome of this case the Liberal Democrat Leader, Nick Clegg, stated:

“Regardless of the legal position, it simply isn’t right that someone on a low income should pay £25 or more to their bank just because they’re overdrawn by a pound or two.”

Unfortunately, as well as consumers, it is also apparent that many Small businesses are likely to continue to be affected by the unfair, excessive charges made by the banks when an account goes over the agreed overdraft limit.

The question has to remain – if the UK’s small businesses are seen as the “backbone” of our economy and require more money pumped into them why are banks consistently throwing up restrictions such as unfair overdraft charges, limited access to funding as well as the exorbitant annual percentage rates (APR) on commercial loans?!

The good news is that there are other legal avenues for the OFT to go down should they wish to pursue a case against the banks. We will just have to wait and see if they choose to or not. In the meantime the Government have stated that they will continue to work with the banks to work out charges that are fair to everyone. As a warning shot, Sarah McCarthy Fry, the Exchequer Secretary to the Treasury, stated they would take further action against the banks if necessary.

Video coverage:

Related links:

Shock overdraft charges ruling in favour of banks

Image by Chris Sharp

Technorati verification: 2S3N5TU7DF5A

Am 5. Dezember ist es soweit. Das Musikhaus Korn expandiert nach Dresden in die schöne Neustadt und eröffnet dort eine neue Filiale. Gelegen in der Rothenburger Str. 7 wollen wir uns direkt an den Puls der Szene setzen und in Zukunft hochwertige Musikinstrumente, angesagtes Deejayequipment und kraftvolle Anlagen präsentieren.

Wir freuen uns sehr auf die Eröffnung am Samstag, den 5.12.. Ab 10 Uhr kann man den Laden erleben und sich auf Gespräche an Machern, Musikern und Freunden einstellen. Die eine oder andere Überraschung ist geplant, damit der Musikshop in Dresden einen gebührenden Einstand erlebt. In der darauffolgenden Woche steht das Geschäft dann allen Kunden und Interessierten täglich von 11 bis 20 Uhr, Samstags 10 bis 16 Uhr, offen und läd zum Stöbern ein.

Da wären zum einen die Musikhaus-Abteilung mit mehreren Showrooms. Das Angebot reicht über Gibson & Epiphone-Gitarren, weitere E-Gitarren und einen Showroom für Konzert- und Westerngitarren bis hin zu Digital- und Stagepianos und entsprechendes Zubehör. Doch das war nicht alles! Desweiteren präsentiert die Deejayladen-Abteilung selbstverständlich DJ-Produkte, aber auch Studioequipment, PA & Lichttechnik und die Möglichkeit des Verleihs für Veranstaltungen. Im Laden können Sie beraten werden, natürlich alle Produkte erstehen und sich an einem Webcounter - einem eigens dafür eingerichteten öffentlichen PC – über unser Gesamtangebot informieren. Auch Serviceleistungen und Reparaturannahmen werden in naher Zukunft im Musikshop Dresden angeboten.

Sichern Sie uns einen gelungenen Start und sich einen entspannten und spannenden Samstagnachmittag und besuchen Sie uns in der Dresdner Neustadt, Rothenburger Str. 7 ab 10 Uhr im neuen Musikshop Dresden! Mehr Informationen wie Blogs, Workshops und Leistungen rund um die Korn-Welt und den Deejayladen finden Sie im Musikhaus Korn.

Am 5. Dezember ist es soweit. Das Musikhaus Korn expandiert nach Dresden in die schöne Neustadt und eröffnet dort eine neue Filiale. Gelegen in der Rothenburger Str. 7 wollen wir uns direkt an den Puls der Szene setzen und in Zukunft hochwertige Musikinstrumente, angesagtes Deejayequipment und kraftvolle Anlagen präsentieren.

Wir freuen uns sehr auf die Eröffnung am Samstag, den 5.12.. Ab 10 Uhr kann man den Laden erleben und sich auf Gespräche an Machern, Musikern und Freunden einstellen. Die eine oder andere Überraschung ist geplant, damit der Musikshop in Dresden einen gebührenden Einstand erlebt. In der darauffolgenden Woche steht das Geschäft dann allen Kunden und Interessierten täglich von 11 bis 20 Uhr, Samstags 10 bis 16 Uhr, offen und läd zum Stöbern ein.

Da wären zum einen die Musikhaus-Abteilung mit mehreren Showrooms. Das Angebot reicht über Gibson & Epiphone-Gitarren, weitere E-Gitarren und einen Showroom für Konzert- und Westerngitarren bis hin zu Digital- und Stagepianos und entsprechendes Zubehör. Doch das war nicht alles! Desweiteren präsentiert die Deejayladen-Abteilung selbstverständlich DJ-Produkte, aber auch Studioequipment, PA & Lichttechnik und die Möglichkeit des Verleihs für Veranstaltungen. Im Laden können Sie beraten werden, natürlich alle Produkte erstehen und sich an einem Webcounter - einem eigens dafür eingerichteten öffentlichen PC – über unser Gesamtangebot informieren. Auch Serviceleistungen und Reparaturannahmen werden in naher Zukunft im Musikshop Dresden angeboten.

Sichern Sie uns einen gelungenen Start und sich einen entspannten und spannenden Samstagnachmittag und besuchen Sie uns in der Dresdner Neustadt, Rothenburger Str. 7 ab 10 Uhr im neuen Musikshop Dresden! Mehr Informationen wie Blogs, Workshops und Leistungen rund um die Korn-Welt und den Deejayladen finden Sie im Musikhaus Korn.

Am 5. Dezember ist es soweit. Das Musikhaus Korn expandiert nach Dresden in die schöne Neustadt und eröffnet dort eine neue Filiale. Gelegen in der Rothenburger Str. 7 wollen wir uns direkt an den Puls der Szene setzen und in Zukunft hochwertige Musikinstrumente, angesagtes Deejayequipment und kraftvolle Anlagen präsentieren.

Wir freuen uns sehr auf die Eröffnung am Samstag, den 5.12.. Ab 10 Uhr kann man den Laden erleben und sich auf Gespräche an Machern, Musikern und Freunden einstellen. Die eine oder andere Überraschung ist geplant, damit der Musikshop in Dresden einen gebührenden Einstand erlebt. In der darauffolgenden Woche steht das Geschäft dann allen Kunden und Interessierten täglich von 11 bis 20 Uhr, Samstags 10 bis 16 Uhr, offen und läd zum Stöbern ein.

Da wären zum einen die Musikhaus-Abteilung mit mehreren Showrooms. Das Angebot reicht über Gibson & Epiphone-Gitarren, weitere E-Gitarren und einen Showroom für Konzert- und Westerngitarren bis hin zu Digital- und Stagepianos und entsprechendes Zubehör. Doch das war nicht alles! Desweiteren präsentiert die Deejayladen-Abteilung selbstverständlich DJ-Produkte, aber auch Studioequipment, PA & Lichttechnik und die Möglichkeit des Verleihs für Veranstaltungen. Im Laden können Sie beraten werden, natürlich alle Produkte erstehen und sich an einem Webcounter - einem eigens dafür eingerichteten öffentlichen PC – über unser Gesamtangebot informieren. Auch Serviceleistungen und Reparaturannahmen werden in naher Zukunft im Musikshop Dresden angeboten.

Sichern Sie uns einen gelungenen Start und sich einen entspannten und spannenden Samstagnachmittag und besuchen Sie uns in der Dresdner Neustadt, Rothenburger Str. 7 ab 10 Uhr im neuen Musikshop Dresden! Mehr Informationen wie Blogs, Workshops und Leistungen rund um die Korn-Welt und den Deejayladen finden Sie im Musikhaus Korn.

In revised data the Office for National Statistics (ONS) said gross domestic product fell by 0.3pc over July to September, modestly better than its initial estimate of a 0.4pc drop.

The improvement was driven by an upward revision of output growth in the dominant services industry, to minus 0.1pc from a first estimate of minus 0.2pc published last month. That outweighed a downward revision of industrial production to minus 0.8pc from minus 0.7pc. Construction output was unchanged at a fall of 1.1pc.

Economists had predicted the small adjustment to third quarter GDP estimates. This was in marked contrast to last month when their original forecasts proved wide of the mark when they unanimously predicted an end to the recession.

However, it is widely believed that the recession will be over by the end of the year, with a return to weak growth in the fourth quarter. “The second estimate of third-quarter GDP did little to improve the near-term outlook for the UK economy. The recession has probably come to an end in the fourth quarter, but the recovery will be distinctly lacklustre,” said Jonathan Loynes, chief European economist at Capital Economics.

Ross Walker, economist at the Royal Bank of Scotland, predicted the economy will grow by 0.2pc in the final quarter but said the recovery would be “lethargic against the backdrop of major household, financial and public sector balance sheet strains”.

Household consumption remained unchanged in the third quarter compared with the second, despite the stimulus provided by the Government’s car scrappage scheme. Colin Ellis, economist at Daiwa Securities, said this suggested that without the scheme, household spending would have fallen.

The GDP data suggested the pound’s relative weakness has yet to provide a hoped for move towards positive net trade, as imports outpaced exports in the third quarter. John Hawksworth, head of macroeconomics at PricewaterhouseCoopers, said this should balance out over the next year. On Wednesday the pound closed up 0.7 cents against the dollar, at $1.6651, but was down 0.3 cents against the euro at €1.1061.

source: telegraph.co.uk

Water watchdog Ofwat is expected to push through with demands for lower household bills in its final decision on prices for the next five years.

The regulator shocked the industry in July when it called for a 4% cut in average bills – pressing water firms in England and Wales to reduce prices by an average £14 to £330 before inflation by 2015.

The demand contrasted with final business plans submitted to Ofwat in April, which instead pushed for average price increases of £31 before inflation.

The regulator has challenged the water companies’ plans “vigorously” to demand greater efficiencies and also wants them to spend £21 billion on maintaining and improving the network. The companies have since had a chance to plead their own cases with the regulator but few industry or City commentators expect Ofwat to relax its stance significantly.

Richard Laikin, a director in financial services firm Ernst & Young’s power and utilities team, said: “Our baseline assessment is that there will be only a limited improvement in the overall position in the final determination at the industry level.”

While Ofwat is focusing on protecting consumers, some companies could appeal to the Competition Commission if they judge the settlement too harsh. The companies have argued that they should be allowed to make a fair return to encourage the outside funds they need to spend on the network.

If the usually safe industry is forced to cut dividend returns – or even raise cash through rights issues – investors could be scared away.

But unions have meanwhile lashed out at the “very substantial” job losses looming among water firms as they face up to a tougher pricing line from Ofwat.

GMB national officer Mick Rix said: “Even before Ofwat’s final determinations, some water companies had announced their intention to cut jobs and outsource activities in order to protect their profits, and we now expect other water companies to try and follow suit.”

source: http://www.google.com/hostednews/ukpress/article/ALeqM5i5oMLFXw6ojUcDwDPwU6jfEFBhrw

TOKYO – Toyota is slashing bonus pay for managers as the Japanese automaker tackles a massive recall in the U.S. and deep losses for the second straight fiscal year.

Toyota Motor Corp. said Thursday winter bonus payments for 8,700 managers in Japan will be cut by 20 percent.

Japanese workers at major companies such as Toyota get twice-a-year bonus pay in addition to their monthly salaries which reflects the company’s performance.

Toyota announced in the U.S. on Wednesday a massive recall affecting 4 million vehicles to replace the gas pedals that can get stuck in the floor mats and cause sudden acceleration.

The recall, Toyota’s largest ever in the U.S., comes at a time when the maker of the Prius hybrid and Lexus luxury car is trying to reverse losses caused by a global slump and strengthening yen.

Earlier this month, Toyota lowered its loss forecast for the fiscal year through March 2010 to 200 billion yen ($2.2 billion) from its initial projection for a 450 billion yen ($5 billion) loss.

The world’s biggest automaker had just managed to crawl back into the black for the July-September quarter following three straight quarters of red ink as government stimulus measures helped boost global sales of green vehicles.

Toyota’s top executives and board have already given up their bonus pay.

The cuts for managers follow a 60 percent year-on-year decline for their summer bonus this year, and a 10 percent cut for their winter bonus in 2008.

The bonuses for union workers have also been cut. Their winter bonus will average 930,000 yen ($10,700) this year, down 18 percent from the previous year, according to Toyota.

The cost of the U.S. recall is expected to be significant because of the sheer number of vehicles.

The Nikkei, Japan’s biggest business newspaper, said the recall cost, although reaching tens of billions of yen (hundreds of millions of dollars) won’t change Toyota’s annual earnings forecast because the company earmarks money for such measures.

Toyota declined comment on the costs or the forecasts.

TOKYO – The dollar tumbled to 14-year low against the Japanese yen Thursday after indications U.S. interest rates will remain low and that the Federal Reserve isn’t overly concerned about the dollar’s slide.

The dollar sank to 86.51 yen in Tokyo trading, the lowest since July 1995.

Analysts said some investors were selling the dollar to buy gold, which surged to another record Thursday.

Finance Minister Hirohisa Fujii said Japan “will take appropriate steps if foreign exchange rates move abnormally.”

A strong yen is generally seen as bad for Japan’s economy because it erodes overseas income for the country’s big auto and electronics exporters.

Panasonic Corp. President Fumio Ohtsubo described the yen’s appreciation as “very severe” to reporters, saying it was an added blow given the already weak state of the economy.

The dollar has also been falling against the 16-nation euro, which rose to a 15-month high Wednesday. It eased to $1.5114 on Thursday from $1.5132 late Wednesday.

The renewed slump in the dollar was driven largely by the publication Tuesday of the minutes to the Fed’s last rate-setting meeting on Nov. 3-4.

The Fed said at the time that it plans to keep interest rates at “exceptionally low levels” for an “extended period” — currently the Fed funds rate stands at a range between zero and 0.25 percent — and that the fall in the dollar had been “orderly.”

Currency traders seized on the reference to the dollar as the Fed is usually wary of talking about changes in currency values.

Interest rate differences are likely to dirve further dollar losses, analysts say. The U.S. interest rate is among the lowest in the world.

SINGAPORE – Oil prices fell to near $77 a barrel Thursday in Asia amid mixed indications about the strength of global crude demand.

Benchmark crude for January delivery was down 66 cents to $77.30 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract rose $1.94 to settle at $77.96 on Wednesday.

Trading is closed Thursday in the U.S. for the Thanksgiving holiday.

After zooming to $147 a barrel in July 2008 and crashing to $32 in December, oil prices have meandered in the high $70s for more than a month as investors weigh a slow U.S. recovery against surging Asian demand.

A weakening dollar has helped support crude prices as investors look to commodities as a hedge against inflation. On days the dollar weakens, oil usually rises though the relationship doesn’t always hold.

On Thursday, dollar dived to a 14-year low of 86.27 yen from 87.35 the day before. The euro, which hit a 15-month high against the dollar Wednesday, slipped to $1.5104 from $1.5132.

The Energy Information Administration said Wednesday that crude supplies rose 1.0 million barrels while analysts had expected a rise of 1.4 million barrels, according to a survey by Platts, the energy information arm of McGraw-Hill Cos. Crude inventories are up 17 million barrels from a year ago.

Demand from China, however, has grown in the last two months at its fastest pace in five years as analysts forecast 10 percent economic growth in the fourth quarter.

“The recent data mark a significant acceleration in Chinese demand,” Barclays Capital said in a report. It predicts oil will average $85 a barrel next year and $137 in 2015.

In other Nymex trading, heating oil fell 2.01 cents to $1.97 a gallon. Gasoline for December delivery dropped 1.76 cents to $1.98 a gallon. Natural gas for January delivery was steady at $5.16 per 1,000 cubic feet.

In London, Brent crude for January delivery fell 48 cents to $77.96 on the ICE Futures exchange

BEIJING – China’s stimulus spending has fueled massive overexpansion in steel and other industries that could force companies to boost exports, igniting a protectionist backlash abroad, a European business group warned Thursday.

Industries are “still blindly expanding” even though supply exceeds weak demand, the European Union Chamber of Commerce in China said in a report.

Spending on factories, steel mills and other assets in the first half jumped 40 percent from a year earlier, “so probably there is going to be big overcapacity around the corner,” the group’s president, Joerg Wuttke, said at a news conference.

Chinese leaders have issued similar warnings about chaotic overinvestment and are trying to curb growth in steel, cement and other industries. But Wuttke said facilities that already are built will force companies to slash export prices, possibly fueling demands for foreign leaders to protect jobs at a time of high unemployment.

“This constant export pressure coming out of China leads to possibly more protectionism in the future,” Wuttke said.

The group said China’s government should do more to curb investment and to boost spending by its own consumers. It said authorities should divert investment away from manufacturing and into job-creating service industries.

In steel, China’s annual production capacity is 660 million tons and mills are adding another 58 million tons, even though they sold less than 500 million tons last year, according to Charles-Edouard Bouee, Asia president for Roland Berger Strategy Consultants, which conducted the study.

China faces similar problems with excess capacity in aluminum, cement, plastics, refining and production of wind power equipment, the group said.

In an unprecedented open letter to Vodafone’s chief executive and board of directors, Robin Bienenstock, a analyst at Bernstein Research, said Vodafone had the potential to become the “most compelling transformational story” in the telecoms industry, but warned that a litany of failings meant it may “fumble” the opportunity.

She said the Vodafone is a “weak organisation with poor, and arguably continuing, weak execution and a lack of commercial savvy”.

Ms Bienenstock said Vodafone’s weak corporate structure may cause it to “miss the next big commercial thing” and “fail to capitalise on its structural tailwinds”.

She highlighted Vodafone’s failure to secure exclusive rights to the iPhone in key European markets and the company’s decision to pull its products out of Carphone Warehouse as examples of it recent failures.

She also accused Vodafone of a reluctancy to fire weak managers.

“From the outside, it appears that Vodafone’s underperformers do not get fired, but put out to expensive pasture in senior central jobs without power,” she said.

“Many of Vodafone’s managers have been there since the glory days and throughout the decline of their business.

“A turnaround cannot be led by the same managers that led the business into trouble in the first place.”

Ms Bienenstock said Vodafone’s failure to remove dead wood is a “colossal waste of money” and sends a message to staff that “failure is acceptable and that there is no point in striving to be a top performer”.

However, Ms Bienenstock praised Vittorio Colao, Vodafone’s chief executive, and said he “created what is without a doubt the best business in Vodafone” in Italy before he was promoted to chief executive of the whole group last year.

Earlier this month Vodafone doubled its cost-saving drive to £2bn in an attempt to offset weaker customer spending in the face of the recession.

Vodafone declined to comment.

source: telegraph.co.uk

The move is the latest cost-cutting measure among carriers, which have been hit by falling demand and increased fuel costs.

BMI – currently the second-largest operator at Heathrow, the world’s busiest airport –

The airline is also cancelling summer services it runs from Heathrow to Palma and Venice.

Like rival BA, BMI has suffered from falling passenger numbers, in particular from high-margin business-class passengers.

“The move takes place against a background where the airline industry is facing the challenges of a downturn in demand and the worst recession in the UK since records began,” it said yesterday.

A spokesman said the plans would not see the airline’s flights between London and Scotland reduced but it had not ruled out changes to its domestic schedule in the future.

The changes put the jobs of about 600 of BMI’s 4,500 strong workforce at risk, with losses expected across the business.

In a statement, the airline, which is now owned by Lufthansa of Germany, said more cuts might be necessary.

It said: “Further job cuts cannot be ruled out as corporate overheads will also be cut to reflect the reduced flying programme.

“Management has today commenced consultations with unions and staff representatives with a view to minimising the number of compulsory job losses wherever possible.”

Trade union Unite attacked the move which comes just months after Sir Michael Bishop sold his remaining stake in the business. Brian Boyd, Unite’s national officer for civil aviation, said that, while there was need for changes in the airline industry, the announcement was “kneejerk” and the airline was “insensitive” to make cuts so close to Christmas.

“The fact that another 600 jobs are being lost confirms our belief that far too many employers are treating people’s livelihoods with disregard,” he added.

The union said it met BMI officials, urging them to minimise compulsory redundancies.

BMI said it needed to improve its efficiency.

The airline, which recently put a number of its prized Heathrow landing slots up for sale, said it was giving up leases on a number of its larger planes, reducing its fleet to about 30.

BMI is trying to maximise the synergies offered by Lufthansa, as well as being part of the Star Alliance network. Its service between London and Brussels, which struggles to compete against the Eurostar service, is being taken over by Brussels Airlines.

Lufthansa took over BMI in July, concluding soon after that there was a need for a significant restructure. BMI said the German airline had given its full support for the changes.

source: business.scotsman.com

Mr Peltz, the activist investor with an estimated $1.1bn (£658m) fortune, has cut the stake held by his Trian Fund Management business from 3.03pc to 2.68pc.

Trian said the sale was the result of “adjustments made to its portfolio”.

Mr Peltz is a central character in the ongoing battle for Cadbury as Trian also owns a nominal stake in Kraft, the US food group which tabled a formal £9.9bn bid for the UK company a fortnight ago.

Trian sold the shares at prices of between 805p and 812.5p, close to this week’s 814p-a-share record.

News of the sale came as leaders of the Unite union met with Kraft to discuss workers’ futures if Cadbury were to be taken over by the eponymous cheese slice maker.

The meeting, at the union’s request, was said by a senior Unite official to have been “productive”.

Kraft’s bid currently values Cadbury at 722p-a-share, well below last night’s close of 811p.

Meanwhile, the charitable trust that controls about 80pc of Hershey – which is thought to be working on a possible £10.5bn bid for Cadbury – attempted to clear some of the regulatory hurdles it might face.

source: telegraph.co.uk

The new average increase of 2.7pc will be eligible on some of the UK’s bestselling cars, including the Fiesta and Focus, from November 30 and follows previous rises in 2009 of 4.7pc, 3.75pc and 4pc. A car which cost £10,000 at the start of the year would now cost £11,600.

The car maker imports its vehicles into the UK and said the downward slide of the pound – which has lost about a third of its value against the euro compared to pre-2008 levels – was a “fundamental business concern” for companies with costs in euros. Ford has also been forced to reduce its UK workforce to 13,000 as a consequence, with 800 voluntary redundancies.

source: telegraph.co.uk

Britain is set to introduce the toughest pay regulations in the world with the Government set to implement a radical corporate governance plan drawn up by Sir David Walker.

The Walker Review, which is published today, goes beyond the strict recommendations in its July draft and includes the proposal for a new law that will force banks to publish the pay of their top earners in bands.

Sir David has also specifically defined the pay bands that should be disclosed to include number of high earners whose pay and bonus totals more than £1m.

The report, and the Government’s swift endorsement, will alarm the City where there has already been a barrage of complaints that Sir David’s original proposals on pay were too strict and would prompt an exodus of talent from investment banks to smaller firms.

In his draft report, the City veteran defined “high-earners” as those whose “total pay exceeds the executive board median” remuneration. However, in today’s report Sir David has gone further and recommended banks disclose pay in bands of those earning between £1m and £2.5m; £2.5m and £5m; and over £5m. He had added that this requirement “should be based on new statutory provision”.

Chancellor Alistair Darling said in a statement: “Sir David’s proposals are the blueprint for how banks must be run in the future… The Government strongly supports his recommendations and will take steps to implement them as soon as possible.”

Sir David’s review was commissioned by the Government in February to explore failures of corporate governance and management of banks and other financial firms. The draft version in July proposed 39 recommendations, most of which have been retained in the final draft. However, as well as the changes to the pay proposals, Sir David’s final review has sprung a surprise on boards with the suggestion that they put all the directors up for annual election, as well as the chairman.

In addition, Sir David has remained firm on his proposals to impose tougher demands on bank shareholders designed to make them more accountable owners.

The review includes a recommendation that investors sign up to an independently monitored Stewardship Code that will be overseen by the Financial Reporting Council. However, Sir David has dropped his previous recommendation that institutions organise a way of collective engagement with companies. The proposal was criticised as being too prescriptive and something that institutions ought to work out themselves.

Similarly, the recommendation that the regulator should quiz investors who sell big stakes in the banks has also been ditched. It was criticised as being beyond the remit of the Financial Services Authority. Other proposals include the appointment of a powerful Chief Risk Officer to the board of all banks.

source: telegraph.co.uk

NEW DELHI:Anil Ambani’s Reliance Natural Resources (RNRL) on Wednesday told the Supreme Court that the dispute between the Ambani brothers over supply of gas from the Krishna-Godavari basin could have been resolved by mother Kokilaben Ambani.

“Go back to mother if you like to resolve the dispute,” said RNRL counsel Ram Jethmalani to a bench comprising Chief Justice KG Balakrishnan, Justice B Sudershan Reddy and Justice P Sathasivam.

The thrust of Mr Jethmalani’s arguments was that the memorandum of understanding (MoU) signed between the members of the Ambani family formed the basis of the demerger of Reliance and the creation of the Anil Dhirubhai Ambani Group (ADAG).

The gas supply agreement in the MoU was an integral part of the demerger Mr Jethmalani said. If the gas supply contract could not be enforced the court might as well rescind the demerger of RIL and restore ADAG chairman Anil Ambani to his earlier position, Mr Jethmalani suggested.