Selasa, 26 Juni 2012

Brand Becker: Life after tennis for Wimbledon legend

25 June 2012 Last updated at 23:00 GMT Boris Becker lifting his first Wimbledon trophy in 1985 Boris Becker won three of the seven Wimbledon finals he reached When Boris Becker won his first Wimbledon title in 1985 he picked up a cheque for £130,000 ($200,000).

By the time he retired in 1999 - having won six Grand Slams, an Olympic Gold, and 49 titles, he had amassed winnings of £25m - and possibly an equal figure in sponsorship deals.

So why didn't he simply retire into a life of luxury, rather than spending his time and energy building up Brand Becker?

"For a couple of years, I wasn't doing anything. I had a difficult moment in my private life, I had a divorce, so I really had to settle down and start afresh," he recalls.

"But obviously, after just doing nothing, apart from playing golf and taking too many holidays, you get bored quickly and I felt that at 35 years of age there was a lot more I could ask from life on a professional level and there were so many things I wanted to do," he says.

He then began thinking about what talents he had and which people he wanted around him.

"One things leads to another and the next thing is that you have got an office, maybe two, and you are busy with all different things."

Building success

He points out how his father told him that he would not be a tennis player forever and that he had to invest his money wisely.

"He taught me that tennis could always be over tomorrow - you can break your leg, you can break your arm, you may lose motivation, but you still have a family, you still have to support everybody," he says.

"My father was originally an architect so my first love was real estate," he notes.

"Being on building sites from an early age I had a bit of an eye about what could be a potential nice apartment, a nice house, or especially a nice location - I think that's the key," he says.

In his mid-20s he started buying real estate: "I wouldn't say I turned my hobby into a profession," he laughs, "but if I like something I get it."

Driving ambition

Mr Becker also opened up three Mercedes car dealerships and is now an ambassador for the brand.

But after a certain number of years the markets lose interest in an athlete and Mr Becker explains how he had to reinvent himself.

"I took my time, I think it is important to get rid of the idea that at 38 you can still play tennis," he says.

Boris Becker Boris Becker: I knew I was more fortunate than most from an early age

"Of course you can still play but you are not going to be competitive so you have to find something else.

"I wanted to try myself in different areas. I wanted to put my feet into the water and just try different things," he explains.

The name game

He points out that not everything has worked and that: "A business or two has failed."

It has been widely reported that he received a two-year suspended sentence in Germany over tax-related issues, and that his property in Majorca was at the heart of a legal row over non-payment of bills, but the most notable failure in his real estate ventures was the Becker Tower in Dubai - something he particularly regrets.

"I gave them my name which is everything I have, but I was not responsible for the financing of the building.

"When the bubble called Dubai burst, the business of the tower went down as well. I wouldn't say that I was responsible but the business didn't work and it was not good," he muses.

"With the tower I only gave my name and let the builders do the work, but I have tested most of the tennis racquets which bear my name," he says.

More importantly, he is involved with the marketing of the racquets.

"I have an understanding of what sports marketing and branding is all about, so I feel that I can bring a few things to the table that a normal investor wouldn't know about," he asserts.

Relentless drive

The failure of the Becker Tower has left him more cautious and for that reason, he does not invest in the stock market.

"I don't understand it enough and I don't want some 25-year-old explaining something to me that he's not sure about himself the next day," he says.

"The last thing I want is to invest my money again in a risky business," he notes, "I prefer real estate, with long-term slow growth but, in 10 or 15 years, I can smile about it."

Boris Becker with Ion Tiriac Becker had sound advice from former manager Ion Tiriac, who himself later became a billionaire

With most of his projects bearing fruit, he says: "I'm 45 years old now and I'm comfortable in my second career."

When asked when he might consider retiring, he scoffs at the idea.

"Retire into what? I love what I do. I don't get up in the morning and say I hate my job, I don't want to go to the office," he says.

"I really love what I do. I had moments when I was really bored and that's not a good feeling," he reflects.

"I'm happy. I'm in a good place now and I can't imagine not working ever," he adds.


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Shire hit as rival drug approved

25 June 2012 Last updated at 09:53 GMT Continue reading the main story Shares in pharmaceutical company Shire fell almost 13% after US regulators approved a rival's cut-price version of its drug Adderall XR.

The US Food and Drug Administration had approved Actavis Group's generic version of Shire's hyperactivity disorder drug on Saturday.

Despite the news, Shire said it would deliver good full-year earnings growth.

Shire's shares fell 12.7% in early trading, making it the biggest faller on the FTSE 100.

Adderall XR is Shire's second-biggest selling drug. Until now, Shire has been the sole producer of the two forms of Adderall XR, and analysts said the arrival of a new competitor would increase pricing pressure.

Deutsche Bank cut its 2012-2013 earnings forecast by 5-6% to reflect the new competition, but said it still expected double-digit growth from the drugmaker.

Shire said that it would remain competitive in the Adderall XR marketplace, and "continues to believe that it will deliver good, full year 2012 earnings growth".


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William Hill granted US licence

22 June 2012 Last updated at 09:06 GMT William Hill shop William Hill has about 2,370 betting shops in the UK William Hill has been given the green light to launch its first US operations after being granted a licence by the Nevada Gaming Commission.

Last year, the British bookmaker announced it was to buy three US companies, but the acquisitions were dependent on the awarding of a licence.

The deals are now expected to complete by the end of the month.

William Hill said it was the first British bookmaker to be licensed for sports wagering in the US.

Sports betting is legal under federal law in only four US states - Nevada, Delaware, Montana and Oregon.

"A Nevada gaming licence is recognised around the world as a significant regulatory seal of approval and we are proud to have earned it," said chief executive Ralph Topping.

"We are now able to bring together these three businesses to create a leading position in the US sports betting market, combining our brand and product range with AWI, Brandywine and Cal Neva's extensive footprint, strong local relationships and trusted service.

"We look forward to working with our new colleagues to grow a leadership position in the US gaming industry."


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Gas prices down 6% this month

gas prices

Click on map to check gas prices in your state.

NEW YORK (CNNMoney) -- Amid the global economic gloom, there's a ray of sunshine for summertime motorists in the U.S.: The price of gas has dropped 6% over the last month.

The national average price of unleaded gasoline fell to $3.45 per gallon, its tenth consecutive daily decrease, reported motorist club AAA on Friday. That's compared to a national average of $3.67 on May 22.

Prices haven't been this low since Feb. 1. To put things in perspective, the national average price of unleaded in the U.S. is down 66 cents, or 16%, from its record high of $4.11 on July 17, 2008.

"There's an enormous amount of production out there," said oil Dan Dicker, author of "Oil's Endless Bid: Taming the Unreliable Price of Oil to Secure Our Economy." "[But] the demand picture looks weak."

He said the weak demand -- due to Americans driving fewer miles in cars with better gas mileage - is coupled with sour reports on the economy from around the world. This includes the ongoing contraction of Chinese manufacturing, a 16.6% drop in the Philadelphia Federal Reserve's regional manufacturing index, and pessimistic comments from Federal Reserve Chairman Ben Bernanke.

The decline in gas prices has mirrored a similar descent in oil prices. Oil was trading at $78.72 per barrel on Friday, up 0.6% for the day but down 20% year to date. The last time oil was trading this low was on Oct. 4, 2011, when it closed at $75.67 per barrel. To top of page

First Published: June 22, 2012: 10:22 AM ET

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The No. 1 Killer of Meetings -- And What You Can Do About It


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What Can Obama Do to Ease Business Concerns About Economy?


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Obama loses cabinet member with business ties

John Bryson has resigned his Commerce post.

John Bryson has resigned from his Commerce post.

NEW YORK (CNNMoney) -- John Bryson resigned his post as Commerce Secretary on Thursday, less than two weeks after an episode involving a seizure and a series of traffic accidents.

Bryson, a former energy industry CEO, had served in the position since October, and his departure leaves the Obama administration with one fewer private-sector luminary.

Bryson brought significant business experience to the Commerce Department, having served as CEO and chairman of the parent company of Southern California Edison (EIX, Fortune 500) for almost 20 years.

Bryson retired from Edison in 2008, and was working as a senior adviser at private equity firm Kohlberg Kravis Roberts & Co (KKR) at the time of his nomination.

Bryson's selection was widely viewed as an example of the Obama administration's efforts to improve its occasionally rocky relationship with the business community.

But the former CEO's nomination was held up for months by Republican lawmakers who wanted to prioritize free trade agreements with Colombia, South Korea and Panama.

Bryson was eventually confirmed by the Senate in October.

It was not immediately clear who will succeed Bryson, but Obama voiced support in a written statement for acting director Rebecca Blank, an academic with ties to the Clinton administration.

With only a few months before Election Day, the Obama administration may not make any immediate moves to replace Bryson.

Shepherding a nominee through the confirmation process at this late date would almost certainly be turned into a political exercise -- a fact that makes the cabinet position much less attractive for potential nominees.

And top-shelf candidates may also be deterred by the position's potentially short shelf life. Should Mitt Romney defeat Obama in November, Bryson's replacement would almost certainly be out of a job.

Bryson's departure is just the latest example of upheaval at Commerce, which has endured much turnover in its top ranks.

Obama's first choice to lead the department, former New Mexico Gov. Bill Richardson, withdrew his nomination, citing a federal investigation into his ties to a company that had done business with his state.

Former Republican Sen. Judd Gregg, Obama's second choice, withdrew his nomination after clashing with the administration over its stimulus bill and the 2010 census.

Former Washington Gov. Gary Locke was finally confirmed to the position in March, 2009. Bryson succeeded the departing Locke, who left to become the American ambassador to China.

Bryson was part of a wave of business-oriented appointments made by the White House.

In January of 2011, Obama brought banker and lawyer William Daley on board as his chief of staff after suffering a self-described "shellacking" in the midterm elections.

And General Electric (GE, Fortune 500) boss Jeffrey Immelt signed on to lead the president's new Council on Jobs and Competitiveness.

The White House is once again a little thin at that position following the departures of Bryson and Daley, who announced in January he was leaving the administration.

Bryson, 68, had been on a medical leave of absence since his involvement in two auto accidents in California that his office indicated were linked to the seizure.

Police said Bryson was found unconscious at the wheel of his car after the accidents, and was issued a citation at an area hospital where he received treatment.

Authorities must still decide whether to formally file charges. To top of page


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NY AG Wins $410M Settlement in Madoff Ponzi Scheme


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Google CEO Larry Page Loses Voice, to Miss Weeks of Events


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MSG CEO on the Arena’s $980M Makeover


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Madoff Victims See No End in Sight to Legal Struggles


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VIDEO: Economic impact of Saudi succession

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Take the bore out of your board meeting


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John Deere CEO: We’re Projecting a Record-Breaking Year


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Microsoft buys Yammer for $1.2bn

25 June 2012 Last updated at 20:31 Microsoft logo Microsoft hopes that its purchase of Yammer will entice more customers Microsoft has confirmed it has bought the office social network site Yammer for $1.2bn.

The business, which is four years old and has five million users, operates like Facebook for communication within companies.

There had been reports the two were talking about a deal but Microsoft only confirmed the plan on Monday.

Yammer is used by firms including the motor giant Ford and the business services firm Deloitte.

Microsoft hopes the acquisition will make its range of software products more appealing.

Last year it bought the communications business Skype and is integrating it into its products, including its Office software which contributed 60% of its profits last year.

Yammer plans to continue to offer its service in the way it does currently.

Yammer's chief executive David Sacks said: "When we started Yammer four years ago, we set out to do something big.

"We had a vision for how social networking could change the way we work. Joining Microsoft will accelerate that vision and give us access to the technologies, expertise and resources we'll need to scale and innovate."


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Spain banks downgraded by Moody's

25 June 2012 Last updated at 22:54 GMT Euro coin and Spanish flag Spain's banks need billions of euros in support The ratings agency Moody's has cut the credit rating on 28 of Spain's banks, one week after the country asked for money to support them.

The move follows a cut to the Spanish government's own credit rating to just above junk status earlier this month.

Moody's said in a statement, that Spain's reduced creditworthiness "implies a weaker credit profile for Spanish banks."

Among the downgrades was a cut to Banco Santander.

Its long-term rating was cut to Baa2 from A3 and that rating is itself under review for a possible further downgrade.

But Moody's kept Santander one notch above the sovereign rating of Baa3, the Moody's release noted, because of the bank's geographic diversity and what it sees as its manageable exposure to Spanish sovereign debt.

Santander's UK arm is a standalone business and depositors' money is protected by the Financial Services Compensation Scheme in the UK.

Banco Bilbao Vizcaya Agentaria was also among those whose ratings were cut.

A cut in an organisation's credit rating theoretically makes it more expensive for it to borrow money.

Earlier on Monday Spain formally asked for money to help support its banks after an independent audit of Spain's banks last week found that they will need up to 62bn euros (£50bn) in extra funding.

European authorities had already agreed to provide up to 100bn euros ahead of assessments of the banks' needs.


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Government wants more people on food stamps

The federal government is running radio ads to boost enrollment in food stamps.

The federal government is running radio ads to boost enrollment in food stamps.

NEW YORK (CNNMoney) -- More than one in seven Americans are on food stamps, but the federal government wants even more people to sign up for the safety net program.

The U.S. Department of Agriculture has been running radio ads for the past four months encouraging those eligible to enroll. The campaign is targeted at the elderly, working poor, the unemployed and Hispanics.

The department is spending between $2.5 million and $3 million on paid spots, and free public service announcements are also airing. The campaign can be heard in California, Texas, North Carolina, South Carolina, Ohio, and the New York metro area.

"Research has shown that many people -- particularly underserved seniors, working poor, and legal immigrants -- do not understand the requirements of the program," said Kevin Concannon, a USDA under secretary.

The radio ads, which run through June 30, come amid a bitter partisan fight over the safety net program. Republican lawmakers want to reduce funding for the benefit or turn it into a block grant program, which would also minimize the cost. Democrats, however, are not willing to make major cuts.

The issue has become so heated that Newt Gingrich called President Obama the "food stamp president" to show how he's increased government spending.

Food stamp enrollment certainly shot up during the Great Recession, though it had been rising for more than a decade.

President Bush launched a recruitment campaign, which pushed average participation up by 63% during his eight years in office. The USDA began airing paid radio spots in 2004.

President Obama's stimulus act made it easier for childless, jobless adults to qualify for the program and increased the monthly benefit by about 15% through 2013.

Some 46.4 million people are in the food stamps program, also known as Supplemental Nutrition Assistance Program, or SNAP. That's just a touch below the record high hit in January.

Still, more than one in four Americans eligible for food stamps do not participate, according to USDA records.

And the rate is much lower among the the elderly and people just above the poverty line. Nearly two-thirds of folks in these categories aren't enrolled.

In one ad, an elderly woman is surprised to learn that her friend is on food stamps. The friend explains that now that she's retired and on a fixed income, the program "helps me eat right when money's tight."

"Millions of low-income seniors struggle to afford life's necessities like food and medicine," said Stacy Dean, vice president for food assistance policy at the left-leaning Center on Budget and Policy Priorities. "Enrolling in SNAP can help ease that struggle."

Deficit hawks, however, don't want to see the government spend more money on food stamps at a time when lawmakers are trying to reduce the size of the federal government. The deficit for fiscal 2012 is projected to top $1 trillion for the fourth year in a row.

In fiscal 2011, the federal government spent more than $75 billion on food stamps, up from $34.6 billion at the end of fiscal 2008, according to the USDA.

"We ought to be looking for ways to save money in the program, not to encourage more people to use it," said Chris Edwards, an economist with the Cato Institute, a libertarian organization. To top of page


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Red Robin Brings Style Back to Burgers


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Business Leaders: Dr Pepper Snapple’s Larry Young


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Greek finance minister resigns for health reasons

Vassilis Rapanos

Greek finance minister Vassilis Rapanos resigned Monday for health reasons.

NEW YORK (CNNMoney) -- Greek finance minister Vassilis Rapanos has resigned for health reasons, the Greek government said Monday.

Prime Minister Antonis Samaras accepted Rapanos' resignation, according to a statement from the prime minister's office.

Rapanos was hospitalized Friday after suffering from acute nausea and dizziness.

The development is a potential set-back for the new government in Athens, which has been in power for less than one week.

The coalition has promised to honor Greece's financial commitments, but it is also expected to renegotiate the terms of the nation's bailout package.

Rapanos' resignation comes ahead of a key meeting of European Union leaders on Thursday and Friday.

Samaras, who was hospitalized last week for eye surgery, is not expected to attend the summit in Brussels.  To top of page

First Published: June 25, 2012: 1:17 PM ET

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Tepco ex-execs get golden parachute

24 June 2012 Last updated at 16:45 GMT Mariko Oi By Mariko Oi BBC News, Tokyo Shinto Temple and shrine, Nikko, Japan The Shinto religion has given Japan a term for ex-public sector people who land private sector jobs The former president of Tokyo Electric Power, Masataka Shimizu, is due to start a new role with Fuji Oil Company - but why has his move provoked criticism and controversy?

It is called a "descent from heaven". The term originates in Shinto religion, but it is more widely used when government officials or civil servants retire into related private-sector jobs.

The system has a long history in Japan, but in recent years it has become a topic of debate.

"It is a revolving door of bureaucrats who retire and get well-paid jobs in companies that they used to supervise," says Prof Jeff Kingston of Temple University, Japan.

"This system creates a conflict of interest, because it nurtures overly cosy relationships between the government and private companies.

"Many suspect that enforcement of regulations is lax because bureaucrats don't want to jeopardise their chances of getting a post-retirement deal."

The ruling Democratic Party of Japan made it an election promise to reduce the number of government employees getting preferential treatment, but it is difficult to confirm whether it has been successful.

"It is hard to track down the exact number, because people are not interested in announcing the arrangements," Prof Kingston adds. "Others also wait for a few years after retiring before taking up the job.

"The exact numbers are obscured and are probably higher than official records indicate, which are in the hundreds."

Lucky retirees

A similar practice also takes place within the private sector, where former executives of big firms get a "golden parachute", in effect being given the opportunity to receive retirement benefits more than once.

In a country where many have been forced to retire early with little or no pensions because of their firms' misfortunes the issue has become very controversial.

Masataka Shimizu Tepco's ex-president gave evidence to a parliamentary panel on 8 June

But never before could the public put a face to these lucky retirees - until now.

On Monday, Mr Shimizu starts his new role as an external board member at Fuji Oil Company.

Mr Shimizu became a public figure when Tepco's Fukushima nuclear power plant was damaged by an earthquake and tsunami in March last year.

What made him even more memorable than others was the time he spent in hospital during the height of the crisis.

He resigned in May last year and has since served as an adviser to Tepco.

On 8 June, he appeared in front of a parliamentary panel to testify about the handling of the Fukushima nuclear disaster. But apart from that, he has kept out of the public eye.

'Completely ridiculous'

So, how did he score his new job?

Tepco and Fuji Oil Company's parent, AOC Holdings (AOCHD), have a close relationship. Tepco is AOCHD's biggest shareholder, with an 8.7% stake.

Part of the ruined Fukushima plant There is public anger that Mr Shimizu has a new job so soon after the Fukushima disaster

Mr Shimizu's new employer says the firm is keen "to use his profound experience in the energy sector", but did not comment further on his role or his salary.

No matter how much he is paid, the public is outraged that Mr Shimizu has been offered a job so soon after the accident.

"It is completely ridiculous," says Hisa Anan of Shodanren, the National Liaison Committee of Consumers' Organisation.

"He hasn't even assumed liability for the accident."

Last year, there were calls for Mr Shimizu and other Tepco executives to be charged with a criminal offence.

"It really shows that Tepco has been ruling the energy sector - this oil company is its henchman," Ms Anan adds.

Deep mistrust

There are 16 other board members and auditors who will leave Tepco at its shareholder meeting on 27 June.

According to the Ministry of Economy, Trade and Industry, eight of them have already secured jobs.

Two others, Masaru Takei and Takao Arai, will join AOCHD's affiliated companies, while former chairman Tsunehisa Katsumata will join the Japan Atomic Power Company as an external board member.

Tokyo Electric is the largest shareholder in the Japan Atomic Power Company, with a 28% stake.

"I wonder how much assets Tepco still has in share certificates," asks one commentator, zamamiyagarei, on his blog.

"Tepco seems to have no plans for selling its stakes in other companies and using the money for compensation," he adds.

The company faces billions of dollars in compensation claims from evacuees and businesses formerly based near its Fukushima power plant.

As its costs rise, Tepco is currently trying to explain to the public why it has proposed to raise household electricity prices by approximately 10%.

So far, it has been met with stiff opposition from consumers - and the golden parachutes of these executives seem to have added to their mistrust towards the utility giant.


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The eurozone's reform wishlist

24 June 2012 Last updated at 16:46 GMT By Laurence Knight Business reporter, BBC News Polish porcelain decorations for the Euro football championships, file pic Different styles, common goal - to save the euro Italian Prime Minister Mario Monti claimed Europe had "one week to save the euro" ahead of yet another crunch EU summit on Thursday and Friday.

France's president has called for a "growth pact", Tony Blair has urged a "grand bargain", the markets demand a "big bazooka", while in Germany there are rumblings about federalism.

Yet the economic and financial solutions to the eurozone crisis are actually surprisingly straightforward.

How so?

Easy. Just ask how the exact same problems have been solved by the members of that other large (and much better functioning) single currency area - the United States of America.

Europe's real problem is that almost all of the solutions are far from politically palatable.

The eurozone's root problem is that the southern European economies have become fundamentally uncompetitive - their wages rose too quickly during the boom years, which led them to import a lot more than they exported, and borrow the difference.

The southern economies' excessive debts, persistent uncompetitiveness and resulting need to continue borrowing - along with Germany's reluctance to give them the money - is what has driven the financial panic that has made it much harder for southern European governments and banks to borrow from markets.

What's more, the seizing up of European financial markets - not to mention the collective determination of Europe's governments to cut spending, and the European Central Bank's focus on price stability - is threatening to push the entire continent into a long and deep recession, something that would merely compound the debt problems.

So, here's what the eurozone may need to do, if it is to climb out of the hole it's in.

All the bad loans made by eurozone banks may need to be cleaned up by injecting loss-absorbing capital into the banks, with the potential losses borne by the eurozone as a whole (because many national governments probably cannot afford it). In the case of Spain's banks, the current bailout deal leaves Spain's government sitting on all the losses.

Deposits at all eurozone banks may need to be guaranteed in euros by the eurozone as a whole, in order to stop panicky investors from moving their money from banks in southern European countries at risk of exiting the euro, to Germany (and increasingly to Switzerland and Denmark).

All of Europe's banks may need to be placed under a common regime of regulation and supervision, with troubled banks given equal access to rescue loans, and being wound up by a central authority when they go bust.

The biggest sticking point is eurobonds. A large chunk of eurozone government debt may need to be amalgamated - with governments standing behind each other's finances - in order to reinforce the commitment of governments to staying in the euro.

One full-blown version proposed by euro-think tank Bruegel would pool debts equal to perhaps 60% of eurozone GDP, which would (counter-intuitively) create strong market-based incentives for governments to be prudent in future.

Another, lighter version proposed in Germany would only pool debts in excess of the 60% level as a strictly temporary measure to make it easier for southern governments to borrow.

A US-style federal budget may be needed to cover the cost of recessions, so that individual governments don't risk going bust when their national economies get into trouble. For example, the cost of a minimum level of social security - especially unemployment benefits - could be permanently shared across the eurozone, paid for by a common income tax.

The European Central Bank may need to have its mandate changed so that it has an explicit dual target to support employment as well as price stability, just like the US Federal Reserve does, as proposed by the new French President Francois Hollande.

The eurozone may need to pay for large-scale investment in infrastructure, particularly in southern Europe, much in the way that West Germany invested in East German infrastructure after reunification in 1990. Proposals on the table include increasing the European Investment Bank's ability to lend, and creating common "project bonds" to finance major construction.

All Europeans (and especially southerners) are having to implement structural reforms that will increase their long-term growth and strengthen government finances, including removing restrictions on market competition, raising the retirement age, laying off (over many years) a lot of state employees, and making it much easier to hire and fire employees.

The ECB and German government may need to stimulate high wage inflation in Germany for several years in order to eliminate the country's current massive competitive trade advantage over southern Europe - something that is already beginning to happen.

In the same way that Washington has helped out struggling US states, the southern European governments may need to be given money (given, not lent) by the rest of the eurozone via direct fiscal transfers, so that they can afford to prop up their economies until they have regained competitiveness. These transfers could end up taking the form of bailout loans that are never repaid.

Structural reforms - particularly labour market reforms - also play a key role in rebalancing, by ensuring that wages in southern Europe do not rise too quickly, as they did in the past decade.

To make a full banking, fiscal and monetary union work, the eurozone governments would need to hand power to a central authority (the European Commission) that can pay for and supervise all of the above, while national governments accept that in future they have to keep their own spending strictly within their limited means.

As most of the above reforms involve Germany sharing its wealth with the rest of Europe (and all European nations handing power to Brussels), Berlin is insisting on the principle of no taxation without representation - in other words a move towards full federalism, with spending and regulation controlled by a directly elected presidency of the European Commission.


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Dimon to Gasparino: Not Softening on 'Too Big to Fail'


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Manufacturing (ISM)

ford-manufacturing.gi.top.jpg

An ISM report released on Friday showed that manufacturing growth slowed in May.

NEW YORK (CNNMoney) -- The rate of manufacturing growth slowed in May, according to a purchasing manager's report out on the same day that the government released disappointing jobs numbers.

The Institute of Supply Management reported its monthly index fell to 53.5 in May, from a 54.8 reading in April. Any reading above 50 indicates growth in the sector.

Although manufacturing growth slowed, May marked the 34th month in a row that activity expanded.

The index came in just below the expectations of economists surveyed by Briefing.com, who forecast the index would fall to 54.

The overall decline was driven by a dip in production, which fell by 5.4 points in May. The employment reading also came in lower, slipping by 0.4 point.

"It was a little bit of a disappointment to see a slowdown in growth, but it's growth nonetheless," said Sarah Watt, an economic analyst at Wells Fargo."There's a lot of uncertainty in the air with the debt crisis in Europe and policy here in the U.S. that's making companies reticent to invest."

Slow growth in manufacturing was reflected in another report, the government's May jobs data. The Labor Department reported that 12,000 manufacturing jobs were added in May, which was up from 9,000 in April, but below the 42,000 jobs added in the sector in April.

Some respondents to ISM's survey said that while growth has pulled back, their businesses are still on track for gains.

"While not quite as busy as last month, production is steady and year over year still much better," a representative of a transportation equipment factory said.

"Business has been trending moderately higher since the beginning of the year," a manufacturer of chemical products reported. "[We] anticipate 5% to 7% growth for the year."

The 1.9 point increase in new orders, what Watt calls "one of the more forward-looking indicators," gives manufacturers and analysts reason to believe growth will pick up.

"It shows there is still some demand out there for products," Watt said. "Next month, we're hoping that production will increase or at least hold on." To top of page

First Published: June 1, 2012: 10:24 AM ET

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RBS boss blames software upgrade

25 June 2012 Last updated at 16:34 GMT Stephen Hester, RBS: "There was a software change that didn't go right"

The boss of RBS has confirmed that a software change was responsible for the widespread computer problems affecting millions of customers' bank accounts.

"It shouldn't have happened and we are very sorry," Stephen Hester said.

The software upgrade failed last week, and although it was put right it caused the huge backlog of transactions that are still being sorted out.

He told the BBC the bank's systems were working normally but it would take a few days for the backlog to be cleared.

The failed software upgrade meant that hundreds of thousands of customers failed to have money transferred either into or out of their accounts.

Mr Hester said: "There was a software change which didn't go right and although that itself was put right quickly, there then was a big backlog of things that had to be reprocessed in sequence, which is why on Thursday and Friday customers experienced difficulty which we are well on the way to fixing."

He declined to speculate about how much the fiasco might cost the bank.

Those customers affected:

Should be returned, as quickly as possible, to the position they would have been in if the fault had not occurredCan apply for emergency cash at their branch if the failure has created serious financial difficultiesWill see overdraft fees waived or refunded if levied because balances have not been updatedIf they have a current account with an RBS, NatWest or Mint credit card, can also withdraw up to an additional £100 over their limit on their cardBranches stay open, longer

Earlier RBS, which owns NatWest and Ulster Bank, said it was extending opening hours for 1,200 main branches all week to help clear a backlog of work.

Ulster Bank says its customers' problems may not be fixed until Friday.

And some customers are still telling the BBC that their banking problems are continuing.

Ken Taylor in Watford runs a payroll business and has 1,000 contractors still waiting to be paid.

"The reputational damage to my business will be immense," he said.

Dean Sneddon in Bolton says he cannot pay for goods or his staff.

"Our business has not only not received payments, but money that was in the account has disappeared," he said.

Martin Reynolds from Birmingham is a disabled user of Ulster Bank.

He says he has been unable to do the online food shopping he relies upon.

"I am disabled, and rely on shopping online. To date, Asda have had to cancel my essential food order twice," Mr Reynolds said.

'Charges waived' Continue reading the main story

"I have been left unable to buy food or fuel. I work for a very low wage and live hand-to-hand every week.

"I had my three young children staying this weekend and spent my last £15 cash on meals for them.

"I was utterly embarrassed when I was just 90p short at the till with a huge queue behind me. How fortunate that the shop owner was kind enough to understand and let me take all the shopping.

"This morning I am still unable to gain access to my account.

"NatWest staff have been brilliant and offered me £300, but I have no idea how much should be in my account and I cannot afford to repay any overdraft that may occur.

Mark Bowker, Manchester

From Tuesday to Friday, some 1,200 main NatWest and RBS town and city branches will extend opening hours to between 08:00BST and 18:00 BST to assist customers.

Susan Allen, director of customer services at RBS, said she was "cautiously optimistic that RBS and NatWest customer account balances will be largely back to normal from Monday".

The bank now faces reimbursing potentially millions of customers who have incurred extra costs because of the computer problem.

It stressed that no-one would be left out-of-pocket.

"We will automatically waive any overdraft fees or charges on current accounts," Susan Allen said.

"This will be processed over the next few days," she added.

How to complain

The bank says its own customers who have suffered financial losses should take their case to a local branch where managers will arrange to pay them back.

Claims are being judged case by case.

Continue reading the main story Customer walks past Natwest Anyone out of pocket owing to a technical or systems failure has certain rightsBanks should put customers back into the position they were in had the problem not occurredThat does not mean extra compensation is a rightAnyone affected should let the bank know about their situation as soon as possibleCustomers should check to see if any payments due from an account have bouncedThey should also keep a record of how the problem has affected them - just in case a formal complaint is required later

Source: Financial Ombudsman Service

Examples of the costs the bank is expecting to bear are customers' extra telephone calls and penalties for late payment of credit card bills.

Customers are advised to keep copies of any documentary evidence to back up their stories.

But a spokeswoman said "when we say no one will be out of pocket, we mean it."

RBS has also promised to ensure credit agencies do not put a black mark on customers' credit scores if, for instance, the bank failed to make a credit card payment on time.

The Payments Council, the banking body which includes representatives from all the major banks and building societies, has agreed to help non-RBS customers who have suffered knock-on effects.

It is understood that RBS has agreed to pick up the cost of restoring these customers to the position they would have been in had the computer failure not happened.

However there is no policy yet on whether or not anyone will be offered extra payments as compensation for inconvenience rather than quantifiable financial loss.

The bank has doubled the number of call centre staff to deal with problems and complaints and will reimburse customers for the cost of calling its 0845 helpline number.


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Yammer VC: "Most meaningful success in my career"

FORTUNE -- Microsoft (MSFT) today made official what we've all known for weeks: It has agreed to acquire Yammer, the San Franicsco-based enterprise social networking company, for $1.2 billion in cash.

After the deal was formerly announced, the following tweet popped up from George Zachary, who led the original investment in Yammer for Charles River Ventures:


That's a big claim, considering that Zachary has been a venture capitalist since the 1990s, with a track record that includes such companies as Millennial Media (MM) and Shutterfly (SFLY). So I briefly spoke with Zachary, who is vacationing in the Caribbean. What follows is a transcript of our conversation:

FORTUNE: Most meaningful success in your career. Why?

Zachary: Because [Yammer founder and CEO] David Sacks and I were very close friends before we got into business together, and it's great to be able to back a friend from the beginning and watch him and his company succeed.

So when CRV first invested in Yammer, was it mostly about David or the idea?

Well, Yammer came out of Geni, which we had funded and is now profitable. David and I were talking about Twitter, and we talked about how useful something like that would be inside of a company. People were all working in their cubicles, stuck with just their inboxes for communication. I remember the moment when we first talked about changing that, creating something like Twitter for business environments, and the spark and sense of excitement we felt.

So is this the largest return you've ever generated as a VC? 

It's slightly over a $200 million gain to CRV [on around $12m-$15m of total investment], but I had a $330 million gain in the 1990s. So it's not the biggest, although from a quantitative perspective it puts me at over $1 billion of gains in my career.

Yammer raised its final round of venture funding early this year at a valuation reported to be just half of what Microsoft is paying. Are you surprised at the sale price?

No, I'm not surprised at all. We were beginning to see exponential user increases, and were hearing directly from CIOs that they could see decreasing their use of Outlook and increasing their use of Yammer.

Any worries about what will happen to Yammer inside of Microsoft?

You never know what will happen inside of a large company, but Steve Ballmer met with David and they both are incredibly excited. They both know that Outlook has to change and I think, over time, that there will be a combination of Yammer and Outlook. Before that, Yammer will be integrated into SharePoint.

Sign up for Dan's daily email newsletter on deals and deal-makers: GetTermSheet.com


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Inflation (CPI)

Gas prices fell 6.8% in May, driving overall inflation lower during the month, the government reported Thursday.

Gas prices fell 6.8% in May, driving overall inflation lower during the month, the government reported Thursday.

NEW YORK (CNNMoney) -- Consumers felt some relief at the gas pump in May, as falling prices slowed overall inflation during the month.

The government's key measure of inflation, the Consumer Price Index, showed consumer prices fell 0.3% in May, the deepest monthly drop since December 2008.

Declining gas prices were the biggest factor, plunging 6.8%. Gasoline started the month off at a national average of $3.81 a gallon and fell to $3.62 by the end of May, according to separate data from the Oil Price Information Service.

Lower gas prices are a welcome sign for consumers and can often act as a small economic stimulus, because consumers have more money to spend on other goods. But swings in gas prices typically take a few months to trickle through to prices on other goods and affect consumer behavior.

Food prices, for example, were unchanged in May.

Meanwhile, a separate report released Wednesday showed retail sales declined in May, mostly because consumers spent nearly $1 billion less at gas stations. Excluding gas, food and autos, retail sales were still down for the second month in a row.

While the decline in retail sales has been disappointing, some economists expect it to be merely temporary. Lower gas prices could boost spending later in the summer, said Ian Shepherdson, chief U.S. economist for High Frequency Economics, in a note to clients.

"Gas prices have plunged over the last two months and are still falling fast, so allowing for the lag, we hope to see much stronger spending in July and August, and beyond," Shepherdson said.

Stripping out gas and food, so-called core inflation rose 0.2% from month to month.

Over the last year, Americans have seen a 1.7% inflation rate. Core inflation is up 2.3% year-over-year, slightly above the Federal Reserve's target for a 2% rate.

The Consumer Price Index measures price changes on a broad basket of consumer goods, including food, energy, housing, cars, apparel and medical expenses. To top of page

First Published: June 14, 2012: 8:45 AM ET

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Europe crisis 'cuts aid to poor'

24 June 2012 Last updated at 23:44 GMT Mark Doyle By Mark Doyle BBC International Development Correspondent Aid workers in Niger Data says funding for aid work has been cut by European countries The European debt crisis has led to cuts in government development aid to poor countries, says a new report by the aid watchdog Data.

It is the first significant reduction in Europe-wide aid budgets for a decade.

The biggest percentage cuts in the year 2010/11 were made by two of the states worst affected by the debt crisis - Spain and Greece.

But overall European development aid was also down by 1.5%.

The report says the new figures "reveal that those bearing the brunt of Europe's economic crisis include some of the world's poorest people".

"As austerity bites across Europe, we can now see the impact it is having on life-saving aid programmes," it adds.

In the year 2010-11, Spain cut its aid budget - the sixth largest in Europe - by nearly a third.

Greece cut its much smaller programme by 40%, according to the Data study, which was published in association with the campaign group ONE.

Anti-poverty target

The report is published as part of a lobbying campaign by aid agencies as EU leaders begin negotiating the next seven year European budget.

Over the last decade the trend has been for aid cash to rise.

European countries account for just over half of all global official development assistance.

Many of them have been slowly nudging towards a United Nations anti-poverty target of 0.7% of national income spent on aid.

The Netherlands and some Scandinavian countries have exceeded this proportion.

By far the biggest three donors are Germany ($14bn - 0.39% of national income), UK ($13.5 bn - 0.55%) and France ($12 bn - 0.42%)

One of the authors of the Data report, Adrian Lovett, said the countries that would be worst affected by any prolonged aid cuts were poor African states.

He said: "The countries we're worried about are mostly in Africa - for example Mozambique, Tanzania and Malawi.

"At the moment they need aid and its saving lives on a daily basis."

Aid work in Niger While aid money does save lives, critics say it is often wastefully distributed

There's a broad official consensus among aid agencies - and the western governments that often finance them - that development aid works.

But aid is not without its critics.

Some say it is wastefully distributed and can discourage poorly performing developing country governments from accepting their responsibilities.

The argument goes that if Medecins Sans Frontieres run the best hospitals in Haiti, for example, or Oxfam successfully digs the best water wells in Chad, why should the governments there bother?

Smart leadership

Such critics would also argue that countries such as China and India - and the many African states which currently have strong economic growth rates - are not getting richer because of aid.

In many of these cases, the aid critics say, infrastructure investment, commodities exports or liberalisation have been far more significant than aid.

Adrian Lovett counters these arguments with the example of Ghana.

"Ghana has in the past had a substantial amount of aid. That assistance has been well used through smart leadership at the national level and better coordination by the various donors.

"So Ghana is now on the brink of ending its dependence on development cash. That's exactly the route we see many African countries potentially taking."

But Mr Lovett drew a distinction between emergency aid - for famine victims, for example - and longer term development assistance.

He said aid advocates such as himself wanted, ultimately, to do themselves out of a job.

"There's always going to be international action around humanitarian crises. That is a natural human impulse.

"But we do want to see a day when we will help some countries and they will also help us in return in a relationship of equals.

"We want that rather than the donor client relationship we have seen in the past."


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How Sick is Google's Larry Page?


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Top euro area leaders urge focus on growth

euro

Spanish Prime Minister Mariano Rajoy, French President Francois Hollande, German Chancellor Angela Merkel and Italian Prime Minister Mario Monti hold a joint press conference following their meeting in Rome

NEW YORK (CNNMoney) -- The leaders of the four biggest eurozone economies agreed Friday on a plan to boost economic growth in the troubled currency union.

At a meeting in Rome, the leaders of Germany, France, Italy and Spain discussed their priorities for a key summit of European Union leaders next week.

Without going into detail, the leaders said they agreed on a set of growth-enhancing policies equal to about €125 billion, or 1% of eurozone gross domestic product.

"We are preparing a plan for economic integration on a long-term basis in Europe," said Italian Prime Minister Mario Monti at a press conference following the meeting.

Monti was flanked by German Chancellor Angela Merkel, French president Francois Hollande and Spanish prime minister Mariano Rajoy.

The meeting came ahead of the next European Council, which brings together the leaders of all 27 members of the European Union, on June 28-29.

On Friday, the leaders said they plan to outline their long-term vision for the euro currency and take steps to strengthen the monetary union with deeper economic and financial integration.

In particular, the leaders are expected to announce the formation of a banking union, which could include shared oversight and deposit insurance.

They are also considering an increase in the resources of the European Investment Bank. The goal is to boost growth and create jobs by investing in public works.

At the press conference, the leaders did not say anything specific about a controversial plan to use bailout funds to buy euro area government bonds.

Merkel has resisted the proposal, which is backed by Monti, Hollande and Rajoy.

Germany is generally opposed to the idea of using eurozone funds to subsidize government debt, since doing so could make it easier for policymakers to delay unpopular economic reforms.

However, borrowing costs for large euro area economies, including Italy and Spain, have been rising as investors fear those nations may need to be bailed out.

The leaders did express support for a tax on financial transactions, a move championed by Hollande.

Hollande reiterated that Eurobonds, which would combine the debts of euro area governments, are one of many "useful instruments" under consideration.

Rajoy seemed to support using funds from the European Financial Stability Facility to recapitalize Spanish banks.

Spain will officially request loans from the euro area bailout fund to shore up insolvent banks on Monday. Final terms and conditions of the loans still need be finalized.

By March, Rajoy said the leaders will have in place "all the mechanisms to reach financial stability in Europe."  To top of page

First Published: June 22, 2012: 12:03 PM ET

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VIDEO: Drug shortages hit Greece's sick children

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Labour urges fuel duty rise delay

26 June 2012 Last updated at 01:07 GMT Person filling up car Motorists' organisations say fuel duty levels are already too high Labour has said it will attempt to force the government to delay the 3p-a-litre rise in fuel duty due to come into effect in August.

When MPs debate the Budget next week, the party will put down an amendment seeking to put off the increase until at least January next year.

Writing in Tuesday's Sun newspaper, shadow chancellor Ed Balls accused the coalition of "clobbering" families.

A Treasury source said the rise was actually the last from Labour's Budget.

The source, speaking to the BBC, accused Labour of "hypocrisy", adding that Mr Balls had voted for the rise at the time.

The source said that the government had taken action to ensure that fuel was 10p cheaper than it would have been under a Labour government.

In his March Budget, Chancellor George Osborne said the plan to raise fuel duty by 3.02 pence in August would go ahead.

In the Sun, Mr Balls said: "With Britain now in a double-dip recession, the last thing our economy needs right now is another tax rise adding to the squeeze. The government should be giving our economy a boost - not clobbering families, businesses and pensioners just at the wrong time."

Labour says putting off the rise until next year would cost between £500m and £600m.

'Difficult decisions'

It suggests paying for it with the £500m underspend in the Olympics budget or by closing tax loopholes and reversing changes to tax allowances for pension contributions for those earning more than £150,000.

Mr Balls said: "Difficult decisions are needed to get the deficit down. That's why Labour put up fuel duty in the past. But we often delayed or cancelled planned duty rises based on the circumstances at the time - including at the height of the global financial crisis."

Last week the prime minister said the rise would be "looked at", but held out little hope for a delay, saying: "I think people sitting at home know that the government doesn't have a bottomless pit of money."

One Liberal Democrat MP and several Conservatives have already indicated their support for calls for the rise to be scrapped.

FairFuelUK, which campaigns for lower fuel prices, said hiking fuel duty by 3p per litre on 1 August "makes no sense either politically or economically" and would be a "toxic issue" for voters.

Its spokesman, Quentin Willson, said: "MPs of all parties need to have the courage of their convictions, put party issues aside and come together to vote against the rise."

Last month, Transport Secretary Justine Greening said she would consider legislating if the fuel retailers did not pass on falls in oil prices to their customers.


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C. Wonder CEO on Global Expansion


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VIDEO: 'We couldn't pay suppliers'

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Are British strawberries under threat?

25 June 2012 Last updated at 01:49 GMT By Anna-Louise Taylor and Deborah Reddihough Reporters, BBC Food Strawberries Wimbledon More than 100,000 punnets of strawberries are expected to be sold at Wimbledon About 28,000kg of English strawberries are expected to be eaten at Wimbledon, despite poor weather affecting crops. What lies ahead for the British strawberry season, which now runs for six months of the year?

Eating a punnet of strawberries with cream at Wimbledon is a British tradition, and the fruit has been sold this way for hundreds of years.

In the 16th Century cone-shaped straw baskets were the preferred method of sale, making them one of the earliest packaged foods.

Their sweetness and "quintessential Britishness" is widely loved by many chefs, including Valentine Warner.

"I don't think I've ever met anyone in my life who doesn't like them. It's an iconic British thing to enjoy summer sports and eat strawberries with cream sliding down the side," he says.

In terms of cooking, Valentine Warner says you cannot beat a really cold fresh strawberry milkshake, sorbet or scones with strawberry jam, but his favourite is something else.

"A really good sponge with whipped cream and strawberries on top would have to be my favourite cake in the world," he says.

But could this be the year that strawberries are missing from Wimbledon and that sponge?

British strawberry growers in some parts of the country are having their worst season in years. The British season begins in late-April and runs until October. Recent wet weather has cost some farmers hundreds of thousands of pounds, BBC Radio 4's Farming Today reports.

Strawberry grower Sandy Booth, from Hampshire's New Forest says his crop usually produces more than 2000 tonnes. But he says he's probably lost between 50-100 grammes of berries per plant due to the weather in recent months.

"I think it's one of the most difficult seasons I have ever had in 20 years of doing this... as the weather is not one thing or another at the moment," he says.

"If we've got lots of strawberries - we need it to be nice and sunny outside to drive sales, if it's cold and wet, then people are thinking more about soups and stews than they are thinking about strawberries and cream," he says.

Continue reading the main story Strawberry Strawberries were grown by the Romans as early as 200 BCThey were thought of as an aphrodisiac in medieval timesA soup of strawberries, borage and soured cream was given to newly-weds at their wedding breakfast.17th Century English writer Dr William Butler said: "Doubtless God could have made a better berry, but doubtless God never did"Listen to Farming Today: Crop troublesBritish strawberries account for 100% of the fresh strawberries sold in the UK during peak season, but the chairman of British Summer Fruits Laurence Olins agrees the season has been "challenging".

He says the season is running two to two-and-a-half weeks late compared to 2011, and "we are at least 25% behind in volume than on last year".

But despite this supermarkets are fully stocked with British strawberries.

"What has happened is that due to the cool weather, the crop has been well spread," Mr Olins says.

"We have crops grown from the south coast right up to Scotland. If it is warm in Scotland then everything can come in a rush, but... demand and supply this year is very even."

Despite a 45% increase in production in the UK with 4,969 hectares of strawberries grown in 2011, Britain still relies on imports from Spain, Israel, Morocco, Egypt to meet growing consumer demand for fresh berries for the rest of the year.

Twenty years ago British strawberry season lasted for six weeks, but now it runs for six months, says Laurence Olins.

Now 90% of British crops are now grown in polytunnels, safeguarding what was previously seen as an unreliable crop due to its poor tolerance of disease and bad weather.

Continue reading the main story Keens seedling and Downton

Eating a warm strawberry straight from the patch is arguably the most pleasurable aspect of a British summer.

It's not just nostalgia that makes us wonder if they just don't taste like they used to.

Are modern varieties a patch on what was grown in the past? Read on at BBC Food

Until a few years ago imported berries dominated shelves. Elsanta was the most popular variety because of its resistance to disease, long shelf life and reliability, but the orange-red berry came in for criticism for being "tasteless".

According to British Summer Fruits 60% of fresh strawberries sold are still elsanta, although polytunnels have enabled farmers to experiment with different varieties.

"The dominance of elsanta is slowly being eroded... it is still is the most widely grown variety in northern Europe as a whole, but there's certainly more choice available on supermarket shelves than there was five years ago," says Dr David Simpson, head strawberry breeder at East Malling Research centre.

But polytunnels are not loved by all. Countryside activists concerned at seeing acres of prime agricultural land covered in plastic have been lobbying authorities to prevent more being erected.

As UK production has grown, reliance on imports has dropped and the UK now brings in around 50% less than it did in 2007, which pro-polytunnel campaigners say means locally-grown strawberries have a lower "carbon footprint".

Continue reading the main story Strawberries Roughly 112,000 punnets of strawberries are eaten during Wimbledon, together with 7,000 litres of cream They are usually Grade I Kent strawberries Strawberries are picked the day before serving and arrive at Wimbledon at 5:30 BST where they are inspected before being hulledThe price of one portion of strawberries and cream at the tennis event is £2.50 this yearHowever shop-bought strawberry jam, yogurt, ice cream, compote, and frozen desserts are generally not made with British strawberries.

A large proportion of strawberries are frozen imports mainly from China, The Netherlands and Poland.

China's market has grown more than 1,000% over the past decade, with it now the second largest producer of strawberries in the world, behind the market leader, the US.

China's production has been boosted by cheap land, cheap labour, tax breaks and government policies aimed at encouraging agriculture, and its low production costs means it can undercut other countries.

Poland, Britain's former main supplier, has seen its frozen exports plummet since 2005 after years of bad weather, and cheap Chinese imports flooded Europe.

In 2006, as a result of complaints led by Polish growers, a 34.2% tariff was implemented by the EU on frozen Chinese strawberries.

But in April the EU Commission announced that it would revoke the anti-dumping measures, leaving the market open to a flood of cheap strawberries from China.

Even with the tariff in place, Food and Drink Federation figures show frozen strawberry imports from China increased by 63% between 2010 and 2011, and the nation is putting significant energy into producing even more.

Man with child looking at strawberries Strawberries are very popular among China's rising middle class

"There's obviously quite a lot of investment going into strawberry production in China... so they obviously see it as a big growth area... lots and lots of good research is being done in China," says Dr David Simpson, who attended a 2012 international strawberry conference in Beijing.

What does this mean for the UK market?

"At the moment Chinese consumers are keen on strawberries and there's an increasing middle class in China, so demand is outstripping supply for fresh strawberries, but in the foreseeable future there will be more increases in strawberry production in China," Dr Simpson says.

"Looking further ahead, they may want to compete by exporting that fruit to different parts of the world but at the moment their infrastructure doesn't make that feasible," he says.

With fresh Chinese strawberry imports some way off, it is climate and labour costs that remain the biggest current threats to British strawberries, according to Laurence Olins.

But the market is growing 10-15% a year, and fresh berries are now consumers' most popular fresh fruit. And the good news for strawberry lovers is that prices are not expected to go up.


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Pandora CEO on Future of Internet Radio


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VIDEO: What are the ECB and Bank of England?

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AIG Demotes ILFC Head for Improper Relationship


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VIDEO: Supreme Court to rule on Obama-care

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Dimon: More Regulation Would Not Have Prevented Losses


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Cyprus requests eurozone bailout

cyprus

President of Cyprus Demetris Cristofias at a meeting with European Commission President Jose Manuel Barroso in February.

NEW YORK (CNNMoney) -- Cyprus announced plans Monday to officially request emergency loans from the eurozone bailout funds.

The Republic of Cyprus said in a statement that it had informed European authorities that the government would request "external financial assistance" from the European Financial Stability Facility or European Stability Mechanism.

"The purpose of the required assistance is to contain the risks to the Cypriot economy, notably those arising from the negative spill over effects through its financial sector, due to its large exposure in the Greek economy," the government said in a statement.

The move makes Cyprus, an island nation in the Mediterranean, the fifth euro area country to seek financial rescue. It will join Greece, Ireland and Portugal, which have all received bailout funds from the EFSF.

Spain, which recently asked for help recapitalizing banks, is also in the process of negotiating up to €100 billion worth of loans.

Cyprus, which has just over 1 million people, is by far the smallest euro area nation to seek a bailout. But the request could add to concerns about the resources Europe has to fight financial contagion.

The Cypriot government did not specify how much money the country would request, but analysts say Cyprus needs about €4 billion.

In contrast, Greece has received two bailouts that were each worth more than €100 billion.

Earlier Monday, Fitch downgraded Cyrus's credit rating to 'BB+' from 'BBB-.' Fitch said the downgrade reflects a "material increase" in the amount of capital Cypriot banks will need to cope with exposures to Greek households and businesses.

The top three Cypriot banks could need up to €4 billion in additional capital, which is equal to about 25% of the nation's overall economy, according to Fitch.

"Cypriot banks will require substantial injections of capital in order to secure confidence in their financial viability," Fitch said in a report.

Meanwhile, the Cypriot government has been struggling to borrow money at affordable rates in the bond market.

Fitch said the "fiscal cost" of bailing out Cypriot banks could reach €6 billion. That would drive the government's debt level to 100% of gross domestic product, compared with Fitch's previously forecasted 88%. To top of page


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Nestle CEO: Bottled Water Will Lead Soft Drinks


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Glitch at RBS kept man in prison

26 June 2012 Last updated at 02:04 GMT RBS bank logo Stephen Hester has declined to speculate about how much the problems may have cost the bank A defendant granted bail on Friday ended up spending the weekend in prison because of the computer problems suffered by RBS, it has emerged.

The man was granted bail at Canterbury Crown Court, Kent, but was not freed until Monday because it was unclear whether his bail payment had been made.

In a second case in London, a defendant was freed when the court made allowances for the problem.

RBS says a software change was to blame for disrupting millions of accounts.

The glitch resulted in money neither being transferred into or out of accounts. Last week's problem has been fixed but a huge backlog of transactions remains.

RBS boss Stephen Hester told the BBC on Monday that the bank's systems were now working normally but it would take a few days for the backlog to be cleared.

Continue reading the main story Customer walks past NatWest Anyone out of pocket owing to a technical or systems failure has certain rightsBanks should put customers back into the position they were in had the problem not occurredThat does not mean extra compensation is a rightAnyone affected should let the bank know about their situation as soon as possibleCustomers should check to see if any payments due from an account have bouncedThey should also keep a record of how the problem has affected them - just in case a formal complaint is required later

Source: Financial Ombudsman Service

Mr Hester said: "It shouldn't have happened and we are very sorry.

"There was a software change which didn't go right and although that itself was put right quickly, there then was a big backlog of things that had to be reprocessed in sequence, which is why on Thursday and Friday customers experienced difficulty which we are well on the way to fixing."

HM Courts and Tribunals Service said: "Defendants are released on bail once confirmation of the receipt of bail is received. We are aware of only two cases where there was a banking issue.

"We were advised of one case by barristers [on Monday]. It related to a case last Friday and court staff used their discretion to ensure that the defendant was released as soon as possible.

"In the second case the judge made a judicial decision last Friday to release the defendant given the circumstances."

RBS, which owns NatWest and Ulster Bank, has said it is extending opening hours for 1,200 main branches all week to help clear their backlog of work.

Ulster Bank says its customers' problems may not be fixed until Friday. And some customers are still telling the BBC that their banking problems are continuing.

From Tuesday to Friday, 1,200 main NatWest and RBS town and city branches will extend opening hours to between 08:00 BST and 18:00 BST to assist customers.

The bank now faces reimbursing potentially millions of customers who have incurred extra costs because of the computer problem.

Stephen Hester: "There was a software change that didn't go right."

It stressed that no-one would be left out-of-pocket.

"We will automatically waive any overdraft fees or charges on current accounts," said Susan Allen, director of customer services at RBS.

"This will be processed over the next few days," she added.

The bank says its own customers who have suffered financial losses should take their case to a local branch where managers will arrange to pay them back. Claims are being judged case by case.

Examples of the costs the bank is expecting to bear are customers' extra telephone calls and penalties for late payment of credit card bills.

Customers are advised to keep copies of any documentary evidence to back up their stories.

RBS has also promised to ensure credit agencies do not put a black mark on customers' credit scores if, for instance, the bank failed to make a credit card payment on time.


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CNNMoney economy blog

The Federal Reserve announced Wednesday that it plans to extend "Operation Twist," a bond-swapping strategy designed to keep interest rates low in the future, thereby providing a measure of stimulus to the struggling economy.

Originally scheduled to end later this month, the program -- which swaps short-term bonds for ones with longer duration -- will now run through the end of the year.

Fed Chairman Ben Bernanke is expected to provide more details about the committee's deliberations during a press conference scheduled to begin at 2:15 p.m. ET. Watch here for developments (shortly after) they happen.

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3:00 p.m. ET: It's over. Our 45 minutes with the Fed chief are up. Bernanke has left the building. Until next time ...

2:58 p.m. ET: CNNMoney's own Jennifer Liberto gets a question. She asks about Operation Twist's impact on consumer lending and bank earnings.

"I have heard the argument by lowering interest rates, you make it unattractive to lend. I don't think that is right," Bernanke says, arguing that lower Fed lending rates encourage banks to look elsewhere for higher returns.

2:56 p.m. ET: Some lighter fare:

Eh, probably.

2:54 p.m. ET: Between talk of Europe and the fiscal cliff, this news conference underscores just how little control the Fed has over the current economic situation.

The latest on Europe?

"We hope it doesn't get worse," Bernanke says. "It is already one of the factors that has been a drag on U.S. recovery, but not the only factor."

2:48 p.m. ET: Bernanke is asked about JPMorgan and the Volcker Rule, and says the trade may have been prevented as banks will have to explain hedges before they are made.

"One aspect of the rule that might have been relevant, and again we are still looking at that situation as are DOCC and others, it would have been the control of the governance aspects of it," Bernanke said. "That might have potentially changed the outcome."

Safe to say that number is not 8.2%.

2:40 p.m. ET: Bernanke offers a list of factors prohibiting economic growth, including comments on the housing market:

"Housing does seem to be doing somewhat better, there are some good signs there," he said. "But nevertheless we're not getting the size of the boost, the amount of help in the recovery we would normally get from a housing recovery."

2:36 p.m. ET: The discussion turns to the so-called fiscal cliff. Bernanke says the committee is already hearing anecdotal reports about the impact fiscal uncertainty is having on government contractors.

CNNMoney tackled this issue recently. Our story is here.

2:33 p.m. ET: Bernanke is asked directly about Europe. "At this point we are mostly just in consultation mode," he says, noting frequent consultations with European central bankers.

2:30 p.m. ET:

Bernanke says policymakers need more data. "We are prepared to do more. We need further information about the state of the economy, where things are going, about what is happening in Europe."

2:28 p.m. ET: Hopes that Bernanke's presser would be a presidential politics-free zone were just dashed as Bernanke is asked about Mitt Romney's criticisms of the Federal Reserve.

Bernanke doesn't bite: "I reiterate the Federal Reserve is nonpartisan and makes decisions based on purely economic grounds without political consideration. And we will continue to do that," he says.

2:25 p.m. ET: Bernanke: "We welcome help and support from any other part of the government." Translation: The Fed would really like Congress to help provide some measure of support.

2:23 p.m. ET: First mention of Europe, but Bernanke doesn't elaborate on how big of a threat the continent's debt crisis poses to the United States.

2:20 p.m. ET: On to questions. CNBC asks whether the Fed has acted decisively enough during recent years.

Bernanke says the Fed's actions today are a "substantive step" and that the central bank is "prepared to do what is necessary to provide support for the economy."

2:15 p.m. ET: Here we go. Bernanke opens with a recap of the committee's statement and lower economic projections.

2:00 p.m. ET: The Fed just released forecasts that predict the economy will grow at a slower rate than previously thought. Gross Domestic Product growth for this year is now forecast to be 1.9% to 2.4%. In April, rates of 2.4 % to 2.9% were expected.

The Fed showed similar pessimism on the unemployment rate, which is now forecast to be between 8.0% and 8.2% this year. In April, a rate of 7.8% to 8.0% was projected.

1:10 p.m. ET: What will Bernanke be asked at the news conference? Let's check the Twitter feeds of a few economists and reporters who cover the Federal Reserve for hints.

Here's economist Justin Wolfers:

The most recent jobs report, for the month of May, was particularly poor. Expect Bernanke to be asked about that, especially given the Fed's mandate to support employment.

It's also likely that Bernanke will be asked to provide some friendly advice for fiscal policymakers. In the past, the Fed chief has not been shy about calling out Congress over its inaction, a theme that could resurface today.

And here is an interesting note from CNNMoney's Annalyn Censky, who points out that the Fed is running out of short-term bonds to swap.


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PwC U.S. Chief Talks Business and Financial Literacy


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Gatwick boosted by passenger rise

25 June 2012 Last updated at 13:19 GMT Gatwick managed to narrow its losses for 2012 Gatwick was sold by BAA in 2009 for £1.5bn Gatwick Airport narrowed its losses in the year to March, helped by a rise in passenger numbers and new routes to the Far East including Hong Kong and China.

Gatwick reduced its pre-tax loss to £48.6m from £62.5m as the number of passengers rose 6.9% to 33.8 million.

The airport said its performance was flattered by comparison to 2011 when the eruption of a volcano in Iceland cause air traffic chaos.

Excluding this, Gatwick said underlying passenger numbers were up 3%.

The UK's second-largest airport, owned by private equity firm Global Infrastructure Partners, said it planned to invest £435m over the next two years to upgrade passenger facilities.

"We have been competing with Heathrow, Stansted and Luton and other European airports, and this has seen us achieve passenger growth every single month over the course of the year," said Gatwick chief executive Stewart Wingate.

Gatwick said it had no plans to seek permission for a second runway.

The UK government said in 2010 that it would not allow new runways at Gatwick, Heathrow or Stansted airports, but has faced pressure from businesses which have warned London could lose its status as an international transport hub.

Global Infrastructure Partners bought Gatwick for £1.5bn (1.8bn euros) from Ferrovial-owned BAA in 2009, after the Competition Commission forced BAA to offload the airport.


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Vizio Moving from TV to PC


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How elderly care could be crowdworked

25 June 2012 Last updated at 23:06 GMT Dave Lee By Dave Lee Technology reporter, BBC News The PR2 robot used by Willow Garage Willow Garage's Heaphy Project allowed remote users to control this robot and carry out tasks using just a web browser Many of us have strong views on outsourcing.

Whether it's the uncomfortable image of a low-paid army of workers shuffling onto almost impossibly long production lines in Asia, or the offshore call centre worker struggling through a conversation offering technical support, the feeling of farming off work that could be done by local workers is one which fills some with unease.

Yet as connectivity and technology mean the barriers to outsourcing are beginning to almost disappear entirely, outsourcing is graduating into another trend that is changing how we treat repetitive human work.

Crowdworking is growing, fast. Ville Miettinen, chief executive of "human powered document processing" service Microtask, says business at his crowdworking company is increasing at around 400% year-on-year - and his experience is typical of the wider industry.

It beckons a new way of approaching huge, often dull, tasks. Where once a company would hire a bunch of temporary workers, or eager teens happy with minimum wage, it can now call on workers from all over the world to collaborate on huge tasks while simply sitting at their computer.

Heaphy Project

To date, outsourcing has largely been an exercise in getting some of our less glamorous industries out of sight and mind. However, the practice could now be about to come full circle.

Willow Garage is a robotics company based in California. It pioneers the use of human-in-the-loop systems - that is, actions which robots can't quite manage on their own, but with a simple piece of human intervention can finish the job.

Heaphy project demo In a proof of concept demo, a remote worker controls a robot in order to pick up an elderly patient's water bottle

By using Mechanical Turk, Amazon's crowdworking platform which allows workers all over the world to remotely carry out small tasks for small cash rewards, they have made the first steps in what they eventually believe could be a way to outsource even the most delicate of tasks, such as caring for the elderly.

Its Heaphy Project is a system which allows a person to control a robot remotely using just a web browser.

Users, who watch what's happening via a video feed, can move the robot around and control its arms to such a precise degree it can pick up objects.

Willow Garage believe this method could be used to allow remote workers carry out tasks such as production line work, or even, for example, aiding an elderly or disabled person reach an object which they have dropped.

Dirty dishes

Initially, to test the scheme, interested users on Mechanical Turk had to learn how to pick up dirty dishes from the desks of Willow Garage employees before carrying them to a kitchen sink.

"People would sign-up through Mechanical Turk, and then they would be taken to a training room, if you will, and they had to complete a series of tasks," explains Bob Bauer, Willow Garage's director of commercialisation.

"The first set of tasks were done all in simulation before they were allowed on the robot - like a pilot in a simulator.

"Then in a very constrained environment they did the task with a real robot, with real cups on real tables, learning how to pick them up. Those that showed a certain amount of capability were then allow to do the next step of do the task in the real world."

They trained hundreds of people using this method, in thousands of training sessions.

Mr Bauer believes that as the demand for elderly care increases in years to come, such human-in-the-loop robotic care will become common place.

"We're in conversation with everything from elderly care facilities to people who are doing security applications in order to understand what's the right mix of being automated and human intelligence being brought to the problem."

The robots can also be used for other less-than-desirable tasks, as demonstrated by one research programme at Willow entitled Perception Of Offensive Products and Sensorized Control Of Object Pickup - or POOP SCOOP, for short.

Military records

Despite huge leaps in technology, remote control robot carers are still some way off.

Today, crowdworking is a little more low-key, but no less disruptive to long-established work practices.

Microtask's Mr Miettinen offers a massive workforce available at a company's beck and call without the hassle - to put it insensitively - of hiring and firing employees to meet business needs.

Ville Miettinen, chief executive of Microtask Ville Miettinen, chief executive of Microtask, says over 120,000 have worked through his site

Microtask takes a set of documents - say, membership forms - and splits them into small pieces to be processed by workers.

"The individual tasks are really small," Mr Miettinen explains. "It can be just a single word out of a document. They're not seeing the entire page, they don't know what the rest of the page contains, and they also don't know who else is working on it."

It means several people, in several continents, can all collaborate to process one individual form.

"We can outsource to pretty much anywhere on the planet," he says.

"We're doing a lot of distributed outsourcing to places like Pakistan, rural India, the Philippines, China and other countries."

In the US, such methods have been used to process military and even medical records - but the export of such data is covered by strict privacy laws.

Microtask pays works at the typical local rate, although in the US it will, in some cases, fall below the minimum wage for hourly work.

Nevertheless, it hasn't stopped over 120,000 people signing up to work on the platform since its inception in 2009.

As the industry goes, more and more companies will start to shun local workers in favour of their cheaper crowdworked alternatives. It is, as Mr Miettinen describes, the "human equivalent of cloud computing".


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Terry Duffy on the Impact of MF Global


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Home prices

Home prices hit new lows.

Home prices hit new post-crisis lows in March.

NEW YORK (CNNMoney) -- Home prices hit new post-bubble lows in March, according to a report out Tuesday.

Average home prices were down 2.6% from 12 months earlier, according to the S&P/Case-Shiller home price index of 20 major markets. Home prices have not been this low since mid-2002.

"While there has been improvement in some regions, housing prices have not turned," said David Blitzer, spokesman for S&P.

Although five cities -- Atlanta, Chicago, Las Vegas, New York and Portland -- saw average home prices hit new lows, that's an improvement from last month's report, in which nine cities notched new lows, Blitzer noted.

In 13 of the 20 cities, average home prices fell in March from the year before. Atlanta fared the worst, with home prices down 17.7% year over year. Home prices in Atlanta, Cleveland, Detroit and Las Vegas are all below their January 2000 levels.

Alternatively, Phoenix posted the largest gain, with prices up 6.1% from last year. Other cities showing an uptick included Dallas, Denver and Miami.

Overall, the 20-city composite is down about 35% from its peak in 2006.

Experts say affordable mortgages, combined with much lower home prices, should help to bolster the housing market.

"It's probably the best time to buy a home in decades," said Pat Newport, an analyst for IHS Global Insight.

"But the problem is that unless you have good credit, you are probably going to have trouble qualifying for a loan," he added, referring to overly tight lending conditions.

Last week, a report by the National Association of Realtors showed that home sales jumped in April. Sales of new homes were also higher in April, according to a separate government report.

"This might be a strong season, but there's a good chance we'll continue down for years still," said Robert Shiller, professor of economics at Yale University. "There's too much uncertainty."

Correction: An earlier version of this story misquoted Robert Shiller as saying that home prices would continue down for a year, instead of years. That quote has been fixed.  To top of page


First Published: May 29, 2012: 9:05 AM ET

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