10,000 border arrests due to screening system

 

10,000 criminals including rapists and murderers have been held at the UK border thanks to a screening system begun in 2005, a minister has said. Air and sea carriers using UK ports and airports submit passenger and crew details electronically to the e-Borders screening system, prior to travel. It results in about 52 weekly arrests, Immigration Minister Damian Green says. He praised the UK Border Agency and police for the scheme, which covers up to 55% of journeys to and from the UK. "By checking passenger and crew information before travel, law enforcement agencies can apprehend those trying to evade justice," Mr Green said. "From 2013 the new dedicated Border Policing Command, part of the National Crime Agency, will further strengthen security at the border, providing leadership and coordination based on a single national threat assessment and strategy." E-Borders has not avoided controversy. The government faces the threat of a lawsuit from Raytheon, the firm which managed the £750m system until Mr Green terminated its contract in July 2010 over delays to its full implementation. Raytheon says the problems were down to UK Border Agency mismanagement of the scheme. But John Donlon, of the Association of Chief Police Officers, said e-borders would continue to play a key role. Extending scheme "Police have been able to identify those wanted for offences before they leave or when they return to the UK, bringing offenders to justice and supporting counter-terrorist and serious crime investigations," he said. More than 125 million passengers' details were screened in the year to September, resulting in 2,700 arrests. Among those detained were 11 murderers, 22 rapists, 316 violent criminals and 126 drug offenders, government figures show. The government is extending the number of routes and carriers covered by the e-Borders system and will re-introduce exit checks by 2015. "Inevitably as more routes are covered the number of arrests will grow," Mr Donlon added. The border agency said recent successes included the arrest at Manchester Airport of a 44-year-old man who was later charged with sexually grooming a boy after an alert from Swiss authorities, and the detention of a man wanted for a rape 14 years ago. Other cases involved the jailing of a Spanish drugs courier trying to smuggle 1kg of cocaine from Brazil, the arrest of one man from Dubai who was wanted for a £5.7m theft and another who was suspected of a £50m fraud. Meanwhile, the agency said on Sunday it had blacklisted nearly 3,000 banks it believed could not be trusted to verify documents supporting student visa applications.

The Italian ship Montecristo, which was hijacked by Somali pirates before being stormed by British commandos

 Photo: REUTERS

9:45AM GMT 30 Oct 2011

A legal ban on weapon-toting protection staff will be relaxed so that firms can apply for a licence to have them on board in danger zones.

The Prime Minister said radical action was required because the increasing ability of sea-borne Somali criminals to hijack and ransom ships had become "a complete stain on our world".

He unveiled the measure after talks at a Commonwealth summit in Australia with leaders of countries in the Horn of Africa over the escalating problem faced in waters off their shores.

Under the plans, the Home Secretary will be given the power to license vessels to carry armed security, including automatic weapons, currently prohibited under firearms laws.

Officials said around 200 were expected to be in line to take up the offer, which would only apply for voyages through particular waters in the affected region. It is expected to be used by commercial firms rather than private sailors - such as hostage victims Paul and Rachel Chandler.

The Occupy London Stock Exchange protest encampment outside St Paul's Cathedral.

Photograph: Oli Scarff/Getty Images

Christian groups have drawn up plans to protect protesters by forming a ring of prayer around the camp outside St Paul's Cathedral, should an attempt be made to forcibly remove them.

As the storm of controversy over the handling of the Occupy LondonStock Exchange demonstration deepened on Saturday, Christian activists said it was their duty to stand up for peaceful protest in the absence of support from St Paul's. One Christian protester, Tanya Paton, said: "We represent peace, unity and love. A ring of prayer is a wonderful symbol."

With senior officials at St Paul's apparently intent on seeking an injunction to break up the protest, the director of the influential religious thinktank Ekklesia, Jonathan Bartley, said the cathedral's handling of the protest had been a "car crash" and predicted more high-profile resignations from the Church of England.

The canon chancellor of St Paul's, Dr Giles Fraser, and the Rev Fraser Dyer, who works as a chaplain at the cathedral, have already stepped down over the decision to pursue legal action to break up the camp.

Meanwhile, it has emerged that Shami Chakrabarti, director of the human rights group Liberty, is attempting to mediate in the dispute. She said she had contacted the corporation, cathedral and protesters to offer a "neutral space" to sort out the impasse. The corporation had not yet responded, she said, although St Paul's had acknowledged her offer. She said the protesters had been enthusiastic in their desire for dialogue and a peaceful resolution.

"It would have been easy to opt for a line of action that would have led to images of police dragging away protesters, but they want to talk."

 

It was claimed last night that a highly critical report into the moral standards of bankers has been suppressed by St Paul's amid fears it would inflame tensions over the protest. The report, based on a survey of 500 City workers who were asked if they thought they were worth their salaries and bonuses, was due to be published last Thursday.

But publication of the report, by the St Paul's Institute, has been delayed in apparent acknowledgement that it would give the impression the cathedral was on the side of protesters.

Christian groups that have publicly sided with the protesters include one of the oldest Christian charities, the Fellowship of Reconciliation, and the oldest national student organisation, the Student Christian Movement,Christianity Uncut, the Zacchaeus 2000 Trust and the Christian magazineThird Way. In addition, London Catholic Worker, the Society of Sacramental Socialists and Quaker groups have offered their support.

A statement by the groups said: "As Christians, we stand alongside people of all religions who are resisting economic injustice with active nonviolence. The global economic system perpetuates the wealth of the few at the expense of the many. It is based on idolatrous subservience to markets. We cannot worship both God and money."

Bartley said: "There are some very unhappy people within the Church of England. The protesters seem to articulate many of the issues that the church has paid lip-service to. Many people are disillusioned with the position St Paul's has adopted. To evict rather than offer sanctuary is contrary to what many people think the church is all about. The whole thing has been a car crash."

On Saturday afternoon, more than 20 religious figures gathered on the steps of St Paul's to support the occupation, which began two weeks ago.

The bishop of London, the Right Rev Richard Chartres, has promised to attend St Paul's in an attempt to persuade activists to leave. But protesters say they have no intention of packing up, many reiterating their intention to stay at the cathedral until Christmas and beyond.

A spokesman for Occupy London urged the City of London Corporation to open a dialogue with protesters to avoid a lengthy legal battle that could prove expensive for the taxpayer.

Brussels is stifling City of London, Cameron claims

 

David Cameron signalled new European battles ahead as he pledged to resist alleged attempts by Brussels to shackle the City of London in red tape. The Prime Minister echoed claims that the emergence of a two-tier Europe following the financial crisis could result in a wave of EU directives that would harm the Square Mile. The Government has said it is determined to prevent the 17 members of the eurozone acting as a bloc to thwart the interests of the 10 EU states, including Britain, that have retained their own currencies.

Qantas grounds all flights

 

Australia’s Qantas Airways grounded its entire fleet on Saturday over a bitter labour dispute in an unprecedented move that prompted the government to warn it feared for the airline’s future and would seek action to end the dispute. EDITOR’S CHOICE Strikes cost A$15m-a week in lost sales - Oct-28 US airlines earnings hit by fuel costs - Oct-27 Lufthansa scales back passenger forecasts - Oct-27 Virgin eyes tie-up with Etihad on BMI - Oct-14 Qantas overhauls lossmaking international operations - Aug-16 Qantas said it would lock out all employees from Monday night in a dispute affecting 70,000 passengers and 600 flights on one of the country’s biggest travel weekends. The grounding does not affect Qantas’ budget airline Jetstar or code-share flights on other airlines. Passengers will get a full refund for flights cancelled due to the industrial action, Qantas said on its website. Customers can also rebook their flights for a later date. The announcement took passengers and the government by surprise, embarrassing Prime Minister Julia Gillard who was hosting a Commonwealth leaders summit in Perth. Some of those leaders are booked to fly home on Sunday with Qantas. Unions, from pilots to caterers, have taken strike action since September over pay and opposing Qantas plans to cut its soaring costs, as it looks at setting up two new airlines in Asia and cutting back financially draining long-haul flights. “They are trashing our strategy and our brand. They are deliberately destabilising the company. Customers are now fleeing from us,” Qantas Chief Executive Alan Joyce said.

Fresh appeal launched to find man living abroad accused of murdering Nantwich man

 

NEW appeal has been launched to capture a man wanted in connection with the murder of a Stapeley market trader. Christopher Guest More, 33, of Lymm, near Warrington, is one of 10 individuals wanted in the latest campaign being run by Crimestoppers and the Serious Organised Crime Agency (SOCA). He is suspected to have been part of a gang involved in the torture and murder of market trader and cannabis farmer Brian Waters, who was killed in a barn in Tabley, near Knutsford, in June 2003. Three of his alleged accomplices, Otis Lee Matthews, James Stuart Raven and John Godfrey Wilson, received life sentences for their part in the brutal attack. More is also sought in connection with the attempted murder of Suleman Razak and for the alleged false imprisonment and assault of other victims present during the incident. It is believed he fled to Spain just 24 hours after the incident. The appeal is part of crime charity Crimestoppers’ ‘Operation Captura’ campaign, which is trying to locate wanted criminals abroad. Crimestoppers’ regional manager Gary Murray, said: “This extremely heinous crime saw an individual lose their life and the person responsible needs to be tried for their actions. “I’d urge anyone with information to contact Crimestoppers on our 0800 555 111 number or use our online form on our website – we guarantee your anonymity.” Detective Chief Inspector Andrew Smith said: “Eight years on, we still remain determined and committed to finding and arresting Christopher More for his alleged involvement in the brutal murder of Brian Waters. “Cheshire Police will not close this case until the family of Brian Waters sees justice done.”

Tens of thousands flee as floods sweep Bangkok

 

Tens of thousands of Thais are fleeing flood-threatened Bangkok after the city's Governor ordered official evacuations for the first time since the crisis began. Floodwaters bearing down on the city have killed 373 people nationwide since July, causing damage that will cost billions to repair and shutting down Bangkok's second largest airport. Satellite maps of Bangkok last night showed a city almost entirely surrounded by water.

Rupert Murdoch: News Corp's great dictator on the brink

 

Several major News Corp shareholders have rebelled against Rupert Murdoch's hold on his media empire by voting against his re-election as chairman. Photograph: Sipa Press/Rex Features Under normal circumstances, Rupert Murdoch doesn't have much patience for the annual shareholders' meetings that are required by law of American public companies. He regards them as a farce, because they cannot change the outcome in a company where a voting majority is secure, and as an exercise in liberal corporate law designed to put him personally on the spot. Still, his handlers, whose job is, in part, to protect him from himself, have long made him train for these meetings as though he's going into a presidential debate. Without rigorous practice, he is quite liable to not pay attention and appear quite bewildered, or pay too much attention and explode in fury, or worse, truthful exasperation. "He's going to keep asking me why there are no women on the board," Murdoch once told me as his PR aide, Gary Ginsberg, was trying to cajole him into a practice session. "He wants to make sure I don't say, 'because they talk too much.'" The fine line at News Corp has always been between Murdoch's almost deadset insistence that he be able to treat the company as his private preserve, and his handlers' (lawyers, CFOs, press people) more straightforward understanding that it is, in fact, a public company. On this basic issue, push could not have come more to shove than at Friday's meeting. The fundamental sham of a public company – one run first and foremost by and for the Murdoch family, and countenanced by one of the famous quiescent corporate boards in American business – was being challenged by long-oppressed but newly galvanised shareholders. It was a recognisable Murdoch in the midst of it all – as combative, determined, up against it and past his prime as the year's other fallen dictators. His hearing is shot and he won't admit it; thus he somehow seems to answer off-point (his handlers are not allowed to mention his hearing issues, but there is a lot of prepping so that he can anticipate the questions). His mind wanders and he has to forcibly refocus; hence his pauses. But he remains sharp as a tack when he feels impatient or personally under fire. Stephen Mayne, his long-time Australian gadfly antagonist, played his part, and Murdoch seemed almost relieved to play his. They've been doing this for years. Of course, there was Tom Watson, the British MP, whom Murdoch seemed to tolerate – if just barely – as an obvious publicity-seeker. And the various others whom he surely believed he had effectively dismissed, both by his own tartness and by closing down the meeting early. In some sense, it rather seemed that Murdoch just regarded this as shareholders – those dumb sons-of-bitches – doing what shareholders always do: complain into the wind. Just a little more so, with a little more security, with the company having to retreat to a fortified room behind the Fox gates (rather than the usual junky theater in mid-town Manhattan where they ordinarily conduct the meeting) – and with Murdoch himself having to offer a bit more self-justification than he might be used to.  

James Murdoch's future is hanging in the balance after News Corp's shareholders lodged a massive protest vote

. Photograph: David Cheskin/PA

James Murdoch's future at News Corporation looks increasingly precarious as shareholders delivered a damning verdict on his tenure amid widespread criticism of his handling of the hacking scandal.

Following a contentious meeting in Los Angeles last week News Corporation shareholders lodged a massive protest vote against James and his brother Lachlan Murdoch.

A majority of independent shareholders voted against the re-election of chairman Rupert Murdoch's sons James and Lachlan Murdoch. James Murdoch received the largest vote against his re-election at 35%.

James, 38, faces a second grilling in the Parliament next month over phone-hacking at The News of The World, one of News Corp's UKnewspapers. Some 34% of shareholders voted against Lachlan Murdoch 40.

After subtracting the shares controlled by Rupert Murdoch, 67% of the votes went against James Murdoch and 64% against Lachlan, said Julie Tanner, assistant director of News Corp investor Christian Brothers Investment Services (CBIS), who last week called for Rupert Murdoch to step down as chairman after the "extraordinary scandals" at the company. "Shareholders are saying loud and clear that this board has failed as a group," she said.

Rupert Murdoch, chairman and chief executive officer, proved far more popular with investors, receiving 86% of votes, although a sizeable number of shareholders, representing 12 million votes, abstained.

The votes are a particular embarrassment as Murdoch went into the meeting with at least 47% of voting shares on his side, thanks to the family's control of the company's voting shares and the support of their largest outside shareholder, Saudi Prince Alwaleed Bin Talal.

Thanks to the Murdoch's controlling share interest the company defeated attempts to throw the Murdochs and others off the board from major shareholders including the giant Californian pension funds CalPERS and CalSTRS, the Church of England and Hermes, the BT pension fund.

A combative Murdoch faced hostile shareholders at the company's meeting in Los Angeles on Friday and said News Corp was dealing with the situation. While he acknowledged the seriousness of the hacking scandal Murdoch described attacks on News Corp as "unfair" and said the company was the "stuff of legend."

Shareholder critics called for the Murdochs to step down at the meeting and criticised the pay deals of the company's top executives.

The firm delayed releasing the results of the ballot until late Monday. Father Seamus Finn of the Interfaith Center on Corporate Responsibility, who attended the meeting, said: "The vote clearly demonstrates a profound lack of confidence in this company's leadership."

Earlier Les Hinton, former chairman of News International, which runs the company's UK newspapers, had defended James Murdoch saying he saw no reason why he should resign his position.

Michael Wolff, Murdoch biographer and author of The Man Who Owns the News, said it was now inevitable that James Murdoch would leave.

"James will probably go by himself, that's what everybody will be waiting for. I wonder too if Lachlan will step off the board. But could this drag on for another year? Yes."

Wolff said the size of the vote against Murdoch's son had created "a very difficult family moment."

Chief operating officer Chase Carey received strong support from the company's shareholders, garnering 91% of the votes cast. Former New York city school Chancellor Joel Klein collected 96% of the votes cast.

Natalie Bancroft, scion of the family that sold Dow Jones to News Corp, also received a huge vote against, as shareholders called for greater independence on the News Corp board.

Tanner said the votes against the Murdoch sons and Bancroft showed shareholders were serious about wanting more independence at News Corp. "The overwhelming influence of the Murdoch family is not acceptable anymore," she said.

EU referendum vote reaction

 

Backbenchers have warned that David Cameron will face further rebellions unless he takes a tough line in EU treaty negotiations.: For the record, here is the Press Association's full list of MPs who voted for the motion calling for a referendum on Britain's relationship with the EU. Conservatives • 79 Conservatives voted for the motion. They were: Stuart Andrew (Pudsey), Steven Baker (Wycombe), John Baron (Basildon & Billericay), Andrew Bingham (High Peak), Brian Binley (Northampton South), Bob Blackman (Harrow East), Graham Brady (Altrincham & Sale West), Andrew Bridgen (Leicestershire North West), Steve Brine (Winchester), Fiona Bruce (Congleton), Dan Byles (Warwickshire North), Douglas Carswell (Clacton), Bill Cash (Stone), Christopher Chope (Christchurch), James Clappison (Hertsmere), Tracey Crouch (Chatham & Aylesford), David Davies (Monmouth), Philip Davies (Shipley), David Davis (Haltemprice & Howden), Nick de Bois (Enfield North), Caroline Dinenage (Gosport), Nadine Dorries (Bedfordshire Mid), Richard Drax (Dorset South), Mark Field (Cities of London & Westminster), Lorraine Fullbrook (South Ribble), Zac Goldsmith (Richmond Park), James Gray (Wiltshire North), Chris Heaton-Harris (Daventry), Gordon Henderson (Sittingbourne & Sheppey), George Hollingbery (Meon Valley), Adam Holloway (Gravesham), Stewart Jackson (Peterborough), Bernard Jenkin (Harwich & Essex North), Marcus Jones (Nuneaton), Chris Kelly (Dudley South), Andrea Leadsom (Northamptonshire South), Jeremy Lefroy (Stafford), Edward Leigh (Gainsborough), Julian Lewis (New Forest East), Karen Lumley (Redditch), Jason McCartney (Colne Valley), Karl McCartney (Lincoln), Stephen McPartland (Stevenage), Anne Main (St Albans), Patrick Mercer (Newark), Nigel Mills (Amber Valley), Anne-Marie Morris (Newton Abbot), James Morris (Halesowen & Rowley Regis), Stephen Mosley (Chester, City of), Sheryll Murray (Cornwall South East), Caroline Nokes (Romsey & Southampton North), David Nuttall (Bury North), Matthew Offord (Hendon), Neil Parish (Tiverton & Honiton), Priti Patel (Witham), Andrew Percy (Brigg & Goole), Mark Pritchard (Wrekin, The), Mark Reckless (Rochester & Strood), John Redwood (Wokingham), Jacob Rees-Mogg (Somerset North East), Simon Reevell (Dewsbury), Laurence Robertson (Tewkesbury), Andrew Rosindell (Romford), Richard Shepherd (Aldridge-Brownhills), Henry Smith (Crawley), John Stevenson (Carlisle), Bob Stewart (Beckenham), Iain Stewart (Milton Keynes South), Gary Streeter (Devon South West), Julian Sturdy (York Outer), Sir Peter Tapsell (Louth & Horncastle), Justin Tomlinson (Swindon North), Andrew Turner (Isle of Wight), Martin Vickers (Cleethorpes), Charles Walker (Broxbourne), Robin Walker (Worcester), Heather Wheeler (Derbyshire South), Craig Whittaker (Calder Valley), John Whittingdale (Maldon), Dr Sarah Wollaston (Totnes). • Two Tory MPs voted in both the Aye and Noe lobbies, the traditional way of registering an abstention. They were: Iain Stewart (Milton Keynes South) and Mike Weatherley (Hove). • A further two Tory MPs, Peter Bone (Wellingborough) and Philip Hollobone (Kettering) acted as tellers for the motion. Labour • 19 Labour MPs defied the party leadership to support the motion: Ronnie Campbell (Blyth Valley), Rosie Cooper (Lancashire West), Jeremy Corbyn (Islington North), Jon Cruddas (Dagenham & Rainham), John Cryer (Leyton & Wanstead), Ian Davidson (Glasgow South West), Natascha Engel (Derbyshire North East), Frank Field (Birkenhead), Roger Godsiff (Birmingham Hall Green), Kate Hoey (Vauxhall), Kelvin Hopkins (Luton North), Steve McCabe (Birmingham Selly Oak), John McDonnell (Hayes & Harlington), Austin Mitchell (Great Grimsby), Dennis Skinner (Bolsover), Andrew Smith (Oxford East), Graham Stringer (Blackley & Broughton), Gisela Stuart (Birmingham Edgbaston), Mike Wood (Batley & Spen). Lib Dems • One Liberal Democrat, Adrian Sanders (Torbay) voted for the motion. Others • Green leader Caroline Lucas (Brighton Pavilion) voted for the motion. • Eight Democratic Unionist Party MPs voted for the motion: Gregory Campbell (Londonderry East), Nigel Dodds (Belfast North), Jeffrey Donaldson (Lagan Valley), Rev William McCrea (Antrim South), Ian Paisley Junior (Antrim North), Jim Shannon (Strangford), David Simpson (Upper Bann), Sammy Wilson (Antrim East). • Independent MP Lady Sylvia Hermon (Down North) voted for the motion. 8.41am: Reverberations from last night's vote on the EU referendum will be bouncing around Westminster all day. David Cameron told his MPs yesterday afternoon: "I share the yearning for fundamental reform, and I am determined to deliver it." But when? Michael Gove, the education secretary, was on the Today programme a few minutes ago, doing his best to play down the significance of the rebellion against the prime minister – but even he struggled to explain when Cameron's long-promised renegotiation is going to take place. I'll post a full summary of his interview soon, as well as bringing you all the best reaction, comment and analysis relating to the referendum debate. Otherwise, it's a fairly routine day, although Kenneth Clarke, at the home affairs committee at lunchtime, could make good copy. Here's a full list of what's coming up. 9am: The cabinet meets. 10am: Sir Mervyn King, the governor of the Bank of England, gives evidence to the Commons Treasury committee about quantitative easing. 10am: Unions are launcing a legal challenge to the government's plans increase pensions in line with the CPI measure of inflation rather than the RPI measure of inflation. 10.30am: Keir Starmer, the director of public prosecutions, gives evidence to the Commons justice committee on joint enterprise prosecutions. 10.45am: The Advisory Council on the Misuse of Drugs publishes a report on legal highs. 12.45pm: Kenneth Clarke, the justice secretary, gives evidence to the Commons home affairs committee about the riots. 2.20pm: Maria Miller, the minister for the disabled, the health minister, Paul Burstow, and Grant Shapps, the housing minister, give evidence to the joint committee on human rights on the right of disabled people to independent living.

Stockton search for Hells Angels slaying suspect comes up empty

 

A man suspected of fatally shooting a member of the Hells Angels at a recent funeral in San Jose was not holed up in a Stockton home Saturday as police had believed. Steve Ruiz, 38, of San Jose is being sought for allegedly shooting and killing fellow Hells Angels member Steve Tausan, 52, after the two fought Oct. 15 at a funeral for a slain motorcycle club member, according to police. Police had received information that Ruiz had been hiding out at the three-bedroom home on the 3700 block of McDougald Boulevard in Stockton, said San Jose police Sgt Jason Dwyer. Investigators asked Stockton police and the San Joaquin County sheriff's office to serve a search warrant for the home, but both agencies were unavailable, Dwyer said. As a result, San Jose police drove tactical vehicles to the scene. Neighbors said they had seen San Jose police at the scene, calling out to someone in the home to surrender. But after storming the home and firing tear gas at about 8 p.m. Saturday, police came up empty-handed and left. The occupants of the home "are new to the area or they're new to the house" after moving in several months ago, said Noelia Trelles, whose sister-in-law lives next door. "I think we live in a pretty crazy world, but it's still crazy that it's happening in the neighborhood," Trelles said. Ruiz and Tausan were among thousands of Hells Angels members who attended a funeral for Jeffrey Pettigrew, president of the San Jose chapter of the motorcycle club, at the Oak Hill Funeral Home and Memorial Park on Curtner Avenue. After the shooting, Ruiz, 38, of San Jose disappeared and one or more people tampered with the crime scene, washing away bloodstains and removing evidence of the shooting, police said. Police found Ruiz's motorcycle at the funeral, Lt. Alan Cavallo said. Ruiz has not come to claim it. Authorities initially speculated that it was possible Ruiz had been killed and possibly buried along with Pettigrew. Investigators obtained a search warrant to dig up Pettigrew's grave, but Ruiz's remains were not found, Cavallo said. But now investigators say they have proof that Ruiz is alive and "actively evading law enforcement," Dwyer said. Ruiz is believed to have two black eyes "and other facial injuries consistent with being in a fight," Dwyer said. Police said Ruiz is in the company of Christel Renee Trujillo, 42, also known as Christel Renee Ferguson, and that her life "is now in danger." The two are possibly traveling in a gold or pewter Chevrolet Suburban. No year of the vehicle or license plate number was available. Ruiz has family and associates in Arizona and New York and may try to contact them, Dwyer said. Police said Pettigrew was shot and killed Sept. 23 by Ernesto Manuel Gonzalez, an alleged member of the rival Vagos motorcycle gang, at John Ascuaga's Nugget casino in Sparks, Nev. Gonzalez, 53, of San Jose was arrested by a UCSF police officer in San Francisco six days later. Tausan and the manager of the Pink Poodle, a strip club west of San Jose, were tried for murder in 1999 in the beating death of a club customer two years earlier. They were acquitted on grounds of self-defense.

The slain Libyan leader Moamer Kadhafi secretly spirited out of Libya and invested overseas more than $200 billion

 

The slain Libyan leader Moamer Kadhafi secretly spirited out of Libya and invested overseas more than $200 billion -- double the amount that Western governments previously had suspected, The Los Angeles Times reported late Friday. Citing unnamed senior Libyan officials, the newspaper said US administration officials were stunned last spring when they found $37 billion in Libyan regime accounts and investments in the United States. They quickly froze the assets before Kadhafi or his aides could move them, the report said. Governments in France, Italy, England and Germany seized control of another $30 billion or so. Earlier, investigators estimated that Kadhafi had stashed perhaps another $30 billion elsewhere in the world, for a total of about $100 billion, the paper noted. But subsequent investigations by US, European and Libyan authorities determined that Kadhafi secretly sent tens of billions more abroad over the years and made sometimes lucrative investments in nearly every major country, including much of the Middle East and Southeast Asia, The Times said. Most of the money was under the name of government institutions such as the Central Bank of Libya, the Libyan Investment Authority, the Libyan Foreign Bank, the Libyan National Oil Corporation and the Libya African Investment Portfolio, the paper pointed out. But investigators said Kadhafi and his family members could access any of the money if they chose to, the report said. The new $200 billion figure is about double the prewar annual economic output of Libya, The Times noted. Kadhafi, who lorded over the oil-rich North African nation for 42 years, met a violent end on Thursday after a NATO air attack hit a convoy, in which he was trying to escape from his hometown of Sirte. He survived the air strike but was apparently captured and killed after a shootout between his supporters and new regime fighters.

¡Ole! Spain drives legality into mobile services with Sybase 365

 

Spain was one of the first countries to start to lay down laws relating to old non-registered pay-as-you-go SIM cards for anti-terrorism reasons i.e. you MUST tell the authorities your name and address and get a new SIM if you had one of the old anonymous ones. Following on from this "mobile legality" theme, news this week bubbles of Sybase subsidiary company Sybase 365 working with Spanish mobile operator Yoigo. The two firms have joined forces to offer registered SMS, a new service allowing companies to send customers confirmation text messages with the same legal standing as registered mail. According to Sybase, "Officially certified by the Spanish Real Casa de la Moneda (The Royal Mint of Spain) the Sybase 365 and Yoigo service recognises an SMS confirmation as legal proof of delivery of important documents and information. These certificates can then be used as evidence in judicial proceedings in Spain for enterprises wishing to demonstrate correspondence with their customers. This will enable companies and their customers to resolve disputes in a timely manner, avoiding the cost of court proceedings." With registered SMS, financial institutions, utility companies and enterprises will be able to use SMS where previously they would have used registered mail. Developers working to build in legally approved services into mobile (or desktop for that matter) applications should perhaps take note of Sybase 365's suggestion that an SMS provides a number of advantages over registered mail including five times better response rate over traditional mail and is read 288 times faster than email. "No other communication medium has the ability to reach more people than SMS, said Howard Stevens, senior vice president, global telco and international operations, Sybase 365. "Consumer acceptance and enterprise adoption of the mobile channel is fuelling the growth in volume, availability and sophistication of mobile services and the registered SMS services we're launching confirms this trend."

FORMER policeman lived the high life in Marbella by running a £300million VAT fraud

 

 – the biggest ever uncovered in the UK. Nigel Cranswick, 47, tried to cheat the taxman by claiming back tax on £2billion worth of bogus sales made by his mobile phone firm I2G. The “phenomenal” turnover was generated in eight months, HMRC said. Advertisement >> Meanwhile Cranswick lived it up in his rented villa in Marbella. “Despite this phenomenal turnover... I2G operated from a small office in Sheffield,” HMRC said. The scam was smashed after a five-year police probe, Newcastle crown court was told. Cranswick, from Sheffield, admitted conspiracy to cheat HMRC, as did accomplices Brian Olive, 56, of Doncaster, and Darren Smyth, 42, from Rotherham. Claire Reid, 45, also from Rotherham, admitted false accounting. The four will be sentenced next month

BRITS ABROAD

T

Rich Brits plot escape to France

 

 wealthy Britons are planning to flee what they believe to be an over-taxed and crime-ridden UK, with France the most favoured destination, according to a survey published by British bank Lloyds TSB. The survey, published on Monday, found that 17 percent of those with more than £250,000 ($391,025) in savings and investments wanted to move abroad in the next two years, up from 14 percent six months earlier. The most popular destination for the rich exiles was France (21 percent), followed by Spain (15 percent) and the US (11 percent).  Three-quarters of those questioned (73 percent) thought that crime was a bigger problem in Britain than other developed countries. "Sadly, it seems August's riots, tax increases and a rising cost of living have cast a pall over life in the UK for some wealthy people," said Nicholas Boys-Smith, managing director of Lloyds TSB International Wealth in a statement. "It may reignite fears of a 'wealth drain' from our economy as rich people seek pastures new," he said. 42 percent of those questioned named tax as a reason for leaving, up from 35 percent six months ago. Cost of living was a factor for 52 percent, up from 31 percent. Research in January 2011 suggested that 4.6 percent of the UK population have over £250,000 in savings and investments, which equals around 2.8 million people.

A poorly designed, over-extended and ill-disciplined monetary union is in danger of falling apart

Illustration by Matt Kenyon

What if it falls apart? For all my adult life, I have been what in England is called a pro-European or Europhile. For most of that time, European history has been going our way. Now it may be on the turn. Soon, it could be heading the Eurosceptics' way. What then?

Over the last half-century, the institutional organisation of Europe has progressed from a common market of six west European states to a broader and deeper union of 500 million individual Europeans and 27 countries, from Portugal to Estonia and Finland to Greece; 17 of them share a single currency, the euro. There are no border controls between 25 European countries in the Schengen area. Enveloping it all is the fragile skin of the European convention on human rights (now under facile attack from some British Conservatives) which allows any individual resident of no less than 47 countries, including Russia, to contest a violation of their inalienable human rights all the way to a European court of human rights in Strasbourg.

Never has Europe been so united as this. Never have more of its people been more free. Never before have most European countries been democracies, joined as equal members in the same economic, political and security community. Our continent still has a grotesque amount of poverty, injustice, intolerance and outright persecution. (Try living as a Roma or Sinti in eastern Europe for a taste of all that.) I prettify nothing. But – to adapt a famous remark about democracy by that great pro-European British conservative, Winston Churchill – I do say that this is the worst possible Europe, apart from all the other Europes that have been tried from time to time.

Now all this is under threat. A poorly designed, over-extended and ill-disciplined monetary union is in danger of falling apart, bringing bitter recriminations and lasting divisions. More fundamentally, the past emotional motivators and political engines of European unification are no longer there. The peoples of Germany, the Netherlands and other core countries of the European Union are loth to take steps of further integration which many of the creators of monetary union thought would be necessary to sustain it.

I blame politicians like Angela Merkel for not showing more leadership in this respect, but such leadership would involve a heroic, uphill struggle to persuade reluctant publics in what are still (contrary to what Eurosceptics claim) largely sovereign national democracies. If these were not sovereign national democracies, the whole financial world – from Washington to Beijing – would not this week have been waiting with bated breath on the vote of one small party in the parliament of Slovakia.

I note in passing that many of the current difficulties of the eurozone were predicted back in the 1990s, and I was a sceptic about monetary union at that time. This is what I wrote in 1998: "The rationalist, functionalist, perfectionist attempt to 'make Europe' or 'complete Europe' through a hard core built around a rapid monetary union could well end up achieving the opposite of the desired effect. One can all too plausibly argue that what we are likely to witness in the next five to 10 years is the writing of another entry for [Arnold] Toynbee's index [to his A Study of History], under 'Europe, unification of, failure of attempts at'." But I am not now going to hide behind that testament to my own earlier scepticism about one element of a larger project.

As a pro-European, I stand by the whole project, warts and all. I recently contributed to an appeal – which you too can sign – arguing that the eurozone can only be saved by further fiscal integration and a strategy for growth. Remarkably, even the Eurosceptic prime minister David Cameron recently told the Financial Times that Germany and France need to fire a "big bazooka" to convince financial markets and hence preserve the eurozone. That is a bit like the Duke of Wellington wishing Napoleon success in consolidating his continental empire – but extraordinary times do produce such delicious moments.

Beyond this, however, I'm not going to add a single word to the 537 newspaper columns you have already read explaining how the eurozone must and can, or must not and can not, be saved. You decide which economic commentator you believe.

Instead, I want to ask what happens if the eurozone does fail, one way or another – and that failure begins a much larger process of gradual disintegration. Suppose that the EU in 2030 has become something like the Holy Roman Empire in, say, 1730: still extant on paper, but more origami than political reality. What then?

For us pro-Europeans, what happens then will be, first of all, a paradoxical kind of liberation. Rather like the supporters of a long-term incumbent government, for decades now we have felt some obligation to defend the existing state of affairs, with all its obvious flaws. Eurosceptics, by contrast, have enjoyed the glorious irresponsibility of opposition – and, heaven knows, the Brussels institutions furnish endless easy targets for the sceptic and the satirist.

Now the boot will be on the other foot. For a few years, like an incoming government, Eurosceptics will be able to blame current problems on the preceding regime (overhasty monetary union led to German-Greek loathing, etc), but that only lasts so long. Sooner or later it will become clear that it is their kind of Europe we are living in, not mine.

More German travelers have been using foreign airports since a flight tax was imposed early this year.

 

 

Consider two small airports in the middle or Europe. At Maastricht Aachen Airport, business is booming thanks to an influx of German passengers who are fleeing a national aviation tax introduced on January 1, 2011. Meanwhile, just 80 kilometers across the border, Germany's Weeze Airport has been steadily losing customers.

A few years ago, things were exactly the opposite. The Netherlands had its own, yearlong experiment with an aviation tax, but revoked it in July 2009 after it saw Dutch hubs like Maastricht Aachen Airport lose passengers to rivals in neighboring countries, including Germany.

The levy cost Dutch airports, airlines, and related businesses between 1.2 and 1.3 million euros in lost revenue, according to a study by Amsterdam Aviation Economics, a research institute affiliated with the University of Amsterdam.

Hans van Mierlo, a professor of public finance at the University of Maastricht, said the abundance of transportation options in Europe means travelers can and will seek out alternatives whenever one country unilaterally imposes an air passenger tax.

"The [Dutch] crowd went to Germany; now the German crowd comes to us," he told Deutsche Welle. "I am surprised that the German government didn't learn from the Dutch failure."

Maastricht-Aachen Airport may be small, but traffic is growing rapidlyHefty rates

The German aviation tax runs at a rate of eight euros per one-way flight within Europe, 25 euros for medium-haul services to the Middle East and Sub-Saharan Africa, and 45 euros for long-haul flights. The tariff only applies to flights originating in Germany. The German Finance Ministry reported the duty raised 434 million euros in revenues in the first half of 2011.

However, for travelers, the tax can double the total cost of a bargain ticket. That has driven Irish budget carrier Ryanair to cancel some of its services from Weeze Airport and add flights at Maastricht. Meanwhile, rival airline Germanwings has launched a service linking Maastricht to Berlin 12 times per week.

Those moves helped drive Maastricht Aachen Airport's whopping 70 percent increase in passengers so far this year. That is quite a comeback from the time of the Dutch aviation tax, when it lost 25 percent of its customers.

Maastricht's airport has new routes to Bucharest, Tenerife, and other spotsAmong the new clientele is Ne Pham from Jülich, Germany. She told Deutsche Welle that she used to fly out of Cologne or Dusseldorf to destinations like Italy, the United States and her native Vietnam.

"It's cheaper to fly from [Maastricht] than from Germany," she said. "It's easy to find, has lots of parking spaces, and a very fast check-in. It's small but nice."

Maastricht makeover

To accommodate new passengers, Maastricht Aachen Airport has renovated its main waiting area and sole restaurant. A new bus line runs from Cologne directly to the Dutch airport, where travelers are greeted by a row of flags from seven European countries. Airport staff members are required to speak German and English in addition to Dutch, and a number of them speak French as well.

Marion Schramm and her husband, from Geilenkirchen, Germany, echoed Pham's reasons for choosing Maastricht Aachen Airport. But they were not as impressed by the small airport's recent makeover.

"It's obviously dinky," Marion Schramm told Deutsche Welle, "You see everything right away. But it's a lot cheaper than Germany at the moment."

Customers have mixed reviews for the small Dutch airport's facilities

Weeze's woes

The German Airport Association, which represents German air hubs, has called for an immediate end to the national flight tax. It reported a tepid growth rate of 3.2 percent at airports throughout the country this July, compared with the same month last year.

Weeze Airport, near Dusseldorf, had 22.8 percent fewer customers in the same time period. Ludger van Bebber, the airport's managing director, said many of the hub's clients used to come from the Netherlands.

"The aviation tax destroys the level playing field for us," he told Deutsche Welle. "That is the main issue we have here at Weeze."

Meanwhile, Berlin's two hubs are seeing travelers hop across the border to nearby Polish airports. And people in Munich do not have to drive far to reach a number of alternative airports in Austria and the Czech Republic.

The chairman of the Maastricht airport's board is planning for growth to continueDutch chairman confident

While the German Finance Ministry has denied recent media reports that it might lower the aviation tax rates, the ministry is scheduled to evaluate the levy's effects on small and medium-sized airports in June 2012.

The chairman of Maastricht Aachen Airport, Jan Tindemans, said he is not worried about his business in the short term - even if Berlin ends up decreasing or revoking the tax.

He told Deutsche Welle that winning back market share in the wake of the Dutch tax experiment was very difficult. He does not expect things to be any easier for German hubs.

"No bakery wants its customers to go for one or two times to another bakery, because they always think [the customers] will stay there," he said. "There will be some people who will go back, but I don't think there will be much of an effect."

Tindemans said Maastricht Aachen Airport is seeking to add more airlines and destinations to its roster. He added that his airport could double annual traffic to almost one million passengers over the coming years if economic conditions remain stable.

FSA broke its own rules in Keydata probe, judge rules

 

High Court judge found that the Financial Services Authority (FSA) had wrongfully used privileged emails to bring its case against Keydata. A further "relief hearing" will now determine the impact of the ruling, which could de-rail the case altogether. It is the latest in a line of setbacks for the regulator, which has been investigating regulatory breaches at Keydata and millions of pounds of missing retail funds for two years. Keydata invested in "life settlement funds", which buy and sell US life insurance and generate high returns. In June 2009 the FSA applied for Keydata's closure "to protect investors", saying it was concerned about "potentially missing assets". The business was fast-tracked into administration and referred to the Serious Fraud Office (SFO). It emerged that £103m of life insurance policies managed by a Luxembourg business, SLS Capital, and sold to Keydata investors as low-risk bonds might have been "misappropriated".

US to pressure Iran over 'plot to kill Saudi envoy'

 

US Attorney General Eric Holder says the alleged conspiracy was "conceived, sponsored and directed from Iran" Continue reading the main story Related Stories Clinton hails break-up of 'plot' Middle East rivalries play out in US The US secretary of state has called for a "very strong message" to be sent to Iran, after allegations of a plot to kill the Saudi ambassador to the US. Hillary Clinton said Washington was preparing new penalties against Iran, which is already subject to a variety of international sanctions. Two Iranians were charged over the plot which US officials said implicated Iran's Revolutionary Guard Corps. Meanwhile the US issued a worldwide alert about possible anti-US actions. "The US government assesses that this Iranian-backed plan to assassinate the Saudi ambassador may indicate a more aggressive focus by the Iranian government on terrorist activity against diplomats from certain countries, to include possible attacks in the United States," the alert said. It urged Americans residing and travelling abroad to review the information available when making travel plans. Iran has dismissed the allegations as false and baseless. Continue reading the main story “ Start Quote The idea that they would attempt to go to a Mexican drug cartel to solicit murder-for-hire to kill the Saudi ambassador, nobody could make that up, right?” Hillary Clinton US secretary of state 'Well-grounded suspicions' Mrs Clinton praised those involved in the operation to uncover the plot. "It was a terrific achievement by our law enforcement and intelligence communities, and we will be consulting with our friends and partners around the world about how we can send a very strong message that this kind of action, which violates international norms, must be ended," she said at a news conference. "This case will, I think, reinforce the well-grounded suspicions of many countries about what they're up to." Mrs Clinton said the suspected plotters had been trying to involve hired killers from Mexican drug cartels. "The idea that they would attempt to go to a Mexican drug cartel to solicit murder-for-hire to kill the Saudi ambassador, nobody could make that up, right?" she said. US Attorney General Eric Holder said Iran's involvement in the plot was "a flagrant violation of US and international law". Continue reading the main story Analysis Mohammad Manzarpour BBC Persian There is a long history of animosity between Iran and Saudi Arabia which stretches back to before the Islamic Revolution of 1979. Religiously, the Wahhabi rulers of Saudi Arabia and the Shia clerics of Iran reject each other's interpretation of Islam. Geopolitically, the two are staunch rivals, engaged in a seemingly never-ending battle for greater regional influence. They have also been engaged in proxy wars for decades, taking different sides in the Iran-Iraq war, Afghanistan, Lebanon and the Palestinian territories. But it is the Saudis' military intervention in Bahrain which may have prompted the alleged plot. It was little criticised in the West but was seen in Iran as a blatant assault on the Shia majority in Bahrain. In a statement, UK Prime Minister David Cameron's office said: "Indications that this plot was directed by elements of the Iranian regime are shocking... We will support measures to hold Iran accountable for its actions." US officials have said military action was not being considered. The US Treasury Department placed five Iranians, including the two men charged, under sanctions on Tuesday for their alleged involvement in the plot. The two accused were named as Manssor Arbabsiar, a 56-year-old naturalised US citizen with dual Iranian and US passports, and Gholam Shakuri, based in Iran and said to be a member of Iran's Quds Force, a unit of the Revolutionary Guard Corps. The other three were described as high-ranking members of the Quds force. Mr Arbabsiar, who was arrested at New York's John F Kennedy airport on 29 September, has confessed to his involvement in the alleged plot, Mr Holder said. A lawyer for Mr Arbabsiar said he would plead not guilty when he was officially indicted. 'Shocking' Mr Shakuri was said to be in Iran. US officials said that on 24 May 2011, Mr Arbabsiar made contact with an informant for the US Drug Enforcement Agency, who was posing as a Mexican drug cartel member. Manssor Arbabsiar appeared at a court in New York City on Tuesday Over a series of meetings, it is said that details emerged of a conspiracy involving members of the Iranian government paying $1.5m (£960,000) for the assassination of Saudi ambassador Adel al-Jubeir on US soil. Justice department officials said the initial envisaged target was the Saudi embassy. But in conversations secretly recorded for the US authorities, Mr Arbabsiar also allegedly considered having the ambassador killed at a purported favourite restaurant, despite the possibility of mass casualties. The plot would have been carried out with explosives, Mr Holder said. But he added that no explosives were ever put in place and the public was not in danger. Mr Holder said Mr Arbabsiar, with approval from Mr Shakuri, wired $100,000 to a US bank account for the informant as a downpayment. Mr Arbabsiar and Mr Shakuri have been charged with conspiracy to murder a foreign official, weapons conspiracy, and conspiracy to commit international terrorism charges. Continue reading the main story “ Start Quote The choice of ambassadorial target is a direct expression of the acerbic tensions in the Middle East between Saudi Arabia, a key US ally, and Iran” Kim Ghattas BBC News, Washington Alleged plot reflects Middle East rivalries Unnamed US officials also told journalists that the Israeli embassy in Washington was also to have been attacked. Iran's official Islamic Republic News Agency called the charges a "propaganda campaign" by the US government against Tehran. The allegations were "a comedy show fabricated by America", Iranian foreign ministry spokesman Ramin Mehmanparast told the semi-official Iranian news agency, Fars. Mr Arbabsiar appeared briefly at a New York City court on Tuesday. He did not enter a plea and was held without bail. He could face a life prison sentence if convicted on all charges, the Department of Justice said.

US issues travel alert linked to Iran plot

 

The US State Department late on Tuesday issued a worldwide travel alert for US citizens, warning of the potential for anti-US action after the United States accused Iran of backing a plot to kill Saudi Arabia's ambassador to Washington.   Murder Plot Iranians charged over assassination plot / Reuters American authorities uncover plot to bomb Israeli, Saudi embassies in Washington, assassinate Saudi ambassador Full story "The US government assesses that this Iranian-backed plan to assassinate the Saudi ambassador may indicate a more aggressive focus by the Iranian government on terrorist activity against diplomats from certain countries, to include possible attacks in the United States," it said in a statement on its website.   The alert expires January 11, 2012, it said.

PM intervenes in Fox flatmate row

 

Beleaguered Defence Secretary Liam Fox is fighting for his political career after the row over his working relationship with a close friend deepened. Prime Minister David Cameron is poised to decide his fate on Monday after ordering the head of the civil service to urgently report back on an internal investigation into whether Dr Fox's links to Adam Werritty, a former flatmate, breached ministerial guidelines. A series of allegations have surfaced over the unusual involvement Mr Werritty had in brokering meetings for Dr Fox, as well as the access he enjoyed to Government despite having no formal parliamentary or Whitehall role. Dr Fox, who has been in Libya on what should have been a publicity coup as he met the country's interim government, was forced to issue an embarrassing statement clarifying comments he made earlier about how a meeting in Dubai in June with a businessman had been arranged. But he also insisted he has nothing to hide and indicated he is the victim of a smear campaign, telling The Sunday Telegraph: "I have absolutely no fear of complete transparency in these matters. I think there are underlying issues behind these claims and the motivation is deeply suspect." Further revelations emerged, however, that cast doubt on previous claims made by Dr Fox that Mr Werritty, best man at his wedding, had never attended formal meetings with overseas dignitaries. According to the Observer, footage has been uncovered that shows Mr Werritty meeting Sri Lankan president Mahinda Rajapaksa with Dr Fox in a London hotel last year. During his visit to Libya, Dr Fox was asked to answer allegations that Mr Werritty arranged the Dubai hotel meeting, away from officials, with him and Harvey Boulter, chief executive of private equity company Porton Group. The Secretary of State said defence industry representatives asked for the meeting "when they happened to be sitting at a nearby table in a restaurant", but emails emerged later that appeared to confirm that Mr Werritty had been involved in setting up the discussions for some time - and Mr Boulter told the Guardian he first met Mr Werritty to arrange a meeting with Dr Fox in April. In a statement issued after the emails emerged, a spokeswoman for the minister said: "Dr Fox was referring to Mr Werritty, and not himself, bumping into Mr Boulter at a restaurant prior to the meeting."

Spanish banks in €6bn merger talks

 

Banco Popular, Spain’s fifth-biggest listed bank by assets, has offered to buy its smaller listed rival Banco Pastor in a merger that marks a new stage in the restructuring of the country’s financial sector. In filings published on Friday by the Comisión Nacional del Mercado de Valores (CNMV), the market regulator, the banks said they were proposing a friendly all-share deal in which Popular would offer to buy 100 per cent of Pastor. More ON THIS STORY Dismay at Spanish bank restructuring Spain nationalises three more savings banks In depth European banks Santander predicts return to big profits Global Insight Italy and Spain The CNMV had earlier suspended trading in shares of Popular, with a total market value of €4.99bn, and of Pastor, valued at €827m, apparently after news of the discussions leaked before the planned announcement on Monday. At Friday’s share prices, the Popular offer represented a one-third premium for Pastor and valued the target bank at 0.75 times book value, according to the Pastor camp, although Popular’s share price could fall once the suspensions are lifted. CaixaBank, the banking arm of the Barcelona-based La Caixa savings bank, was valued at 0.8 times book value at its flotation earlier this year, but Bankia, comprising Caja Madrid and six others, managed only 0.4 times when it was listed. Three savings banks seized by the official bank rescue fund last month were valued at between zero and 0.12 times book. Until now, the Bank of Spain and the Spanish government have focused on forcing unlisted savings banks to recapitalise themselves and merge with each other to reduce costs and improve efficiency after the collapse of the Spanish housing and construction bubble. Listed banks have been seen as potential buyers rather than takeover targets. “This is only the start,” said one person aware of the talks as the boards of the two companies held separate meetings. “There is going to be a huge shake-out in the banking sector.” Popular is a national Spanish bank that has focused on retail banking and lending to small and medium-sized businesses, while Pastor’s activities are concentrated in the north-western region of Galicia. Pastor – along with four Spanish cajas or savings banks – was one of the nine European banks that failed Europe-wide stress tests in July.

Boris Berezovsky tells High Court 'I am not corrupt'

 

Boris Berezovsky, 65, is claiming, in a trial at the Commercial Court in London, that Russian businessman Mr Abramovich ''intimidated'' him into selling shares in Russian oil company Sibneft at a fraction of their value. He is alleging breach of trust and breach of contract and claiming more than £3 billion in damages from Mr Abramovich. Mr Abramovich denies the allegations, disputes that ''oral agreements'' were made and denies that Mr Berezovsky is entitled to damages. Mr Berezovsky today started giving evidence to judge Mrs Justice Gloster as the trial, expected to last more than two months, entered its fourth day. Mr Abramovich, 44, was in court.

Shock and awe from Bank of England

 

Shock and awe was the order of the day from the monetary policy committee on Thursday as it cranked up the electronic money printing presses and set them whirring faster than anyone expected. By promising to buy £75bn in gilts with money created by the central bank over four months, the Bank of England showed its willingness to look beyond Britain’s immediate inflation problem towards the underlying weakness of the economy. Adam Posen, the most dovish MPC member, had called for a purchase of £50bn at the previous meeting. More ON THIS STORY Bank of England increases QE by £75bn Lex Bank of England’s QE2 Pound falls after Bank launches more QE London stocks boosted by fresh Bank stimulus Bank of England statement The Bank’s statement was clear about the aims of QE2 and why it was justified. Current high inflation notwithstanding, weak global growth and the gathering eurozone sovereign debt and bank funding crisis “has made it more likely that inflation will undershoot the 2 per cent target in the medium term,” it said. Buying gilts was necessary to boost economic growth “in order to keep inflation on track to meet the target in the medium term”. Clarity of ambition does not guarantee success. Officials say QE works by encouraging people to switch out of gilts into other assets, raising the price of those and putting downward pressure on sterling; it has an automatic effect improving commercial banks’ funding; it lowers market interest rates by directly raising the price of gilts and it improves confidence. Judging by the market reaction immediately after the announcement, the Bank will be pleased by the initial reactions to its move. Equity prices rose, sterling fell sharply and the yield on gilts tumbled too. Economists are nonetheless unsure of the effects of QE on growth and inflation. The best rules of thumb come from a recent article published by the Bank itself, in which it estimated that the £200bn of assets purchased under the original QE programme had the same effect as a reduction in interest rates of between 1.5 and 3 percentage points. Applying the same conversion factor, the Bank thinks Thursday’s action is equivalent to a rate cut of 0.5 percentage points and 1.1 percentage point, an easing of monetary policy that would qualify as large in the MPC’s record. The same rules of thumb suggest that the Bank expects this round of QE to boost economic output by up to 0.75 per cent and to raise inflation by 0.3 to 0.6 percentage points in the medium term. One of the unsung effects of quantitative easing is the direct effect the policy will have on bank financing, MPC members think. With banks experiencing difficulty in obtaining funding, every pound of electronic money created will buy a gilt, and the recipient will deposit that money in a UK bank. Bank funding is therefore automatically boosted by the £75bn purchase – and possibly further enhanced if banks use the money to finance lending. Inside the Bank, officials are privately dismissive of the chancellor’s “credit easing” efforts at improving funding to small companies directly. They say that QE trumps credit easing because the holders of gilts will seek to buy other corporate assets such as corporate bonds, thereby encouraging greater bond and equity issuance and allowing companies to bypass the banks. They point out that four-fifths of business investment is financed by large companies so action here is most important for growth. Small companies are already griping. John Walker, chairman of the Federation of Small Businesses, said it was important that small companies “can directly benefit from this cash injection and that the banks use it to decrease the costs of credit and to increase the availability of lending”. Even with these rules of thumb regarding QE2, MPC members privately acknowledge that the most important effect of the policy is the least predictable. Will it improve general confidence? If it does, companies will invest and households will decide to spend now in the hope that the Bank has got a grip on Britain’s economic woes. On this, the Bank will not have an answer for some time. But in moving hard and early, the Bank has already created expectations of more QE action to come. Andrew Smith of KPMG, the accountants, said the move “is likely to prove just the first instalment of a larger injection”, while Richard Barwell of the Royal Bank of Scotland said “actions speak louder than words, so we forecast another £50bn in February”.

Spain Regions Race to Sell $1.3 Billion Property This Year

 

Catalonia and Andalusia, two of Spain’s largest and most indebted regions, are trying to sell $1.3 billion of real estate by the end of the year as the country tries to slash its budget deficit and keep borrowing costs from ballooning. “We put the cream of the crop in the portfolios to ensure the sales are completed,” Jacint Boixasa, director of assets for Catalonia, said in interview in Barcelona. “Our target is to sell 550 million euros ($742 million) of real estate by year- end, which is relatively little time.” Spanish regions, which control more than a third of public spending, will play a pivotal role in the nation’s effort to cut its deficit to 6 percent of gross domestic product this year from 9.2 percent in 2010 as the country tries to avoid following Greece, Ireland and Portugal in requiring a bailout. In August, Moody’s Investors Service put Spain’s credit rating on review for a downgrade, citing the worsening finances in the regions. Catalonia is trying to find buyers for 37 properties including the Barcelona stock market on Paseo de Gracia, Spain’s fourth-most expensive commercial street, as well as the Catalan Agriculture Ministry on Gran Via. Jones Lang LaSalle and Madrid- based real-estate consultant Aguirre Newman are advising the government on the sales. Andalusia hired BNP Paribas SA to help raise at least 400 million euros selling 76 properties including the cultural department in Granada and youth centers in Malaga, according to the region’s treasury department. The government will pay around 30 million euros a year to lease the buildings after the sale

Spain's first ever retirement home for gay and lesbian residents.

A landscaped, luxury home is envisaged

A short train ride from central Madrid is a scruffy plot of land covered in weeds and surrounded by wire fencing. In just a couple of months work is expected to start to transform the site into Spain's first ever retirement home for gay and lesbian residents.

Spain has been at the vanguard of Europe in terms of gay rights in recent years, but activists say reforming laws has been easier than changing attitudes.

"Gay old people have to go back in the closet when they enter retirement homes," explains Federico Armenteros, who runs the December 26th Foundation in Madrid.

It is named after the date in 1979 when the law used during Gen Franco's dictatorship to imprison homosexuals - or to send them for "cure" with electric shocks - was repealed.

"For many years, a lot of people believed that homosexuals were sick and sinners," Mr Armenteros says.

"That is more pronounced among older people, and hard to change,"

So the foundation has been working on a solution.

'Insulted and alone'

Continue reading the main story

“Start Quote

I have to make myself as invisible as possible - go back in the closet - so they don't notice me”

Jose Maria Herreras

It has formed a co-operative, recruited architects and designed a luxury, landscaped retirement complex - complete with 115 apartments, gym, spa and restaurant.

There is space for yoga, Tai Chi and dance classes - and plans to house archive material for the first research centre on the history of the gay rights movement in Spain.

Designed to be "gay-friendly", the Foundation says the home will be open to anyone regardless of their sexuality.

Jose Maria Herreras describes it as a dream come true.

He looks relaxed, sitting at street cafe in Chueca - the gay heart of Madrid. But Jose is 65 and lives in a retirement home. He says his life has been miserable ever since the other residents discovered he was gay.

"They started to steer clear of me and insult me," he explains.

"They called me 'queer' and it made me feel awful. My room has two beds but no-one wants to share with me. So I'm alone and it's bad.

"I have to make myself as invisible as possible - go back in the closet - so they don't notice me. And I spend as much time outside the home as possible."

For now the site of the home is just wasteland

Gay rights activists believe that experience is widespread.

Predominantly Catholic Spain was among the first countries to legalise gay marriage and adoption.

Gay pride celebrations in Madrid are among the best-known and most extravagant.

The formerly run-down neighbourhood of Chueca now has a thriving gay scene including clubs, saunas, bars and bookshops.

But four decades of Gen Franco's right-wing dictatorship meant that change came late to Spain and has spread slowly.

'Anti-camp law'

"We only started fighting for our rights in the 1980s," explains Mili Hernandez, who opened Madrid's first gay and lesbian bookstore, Berkana, in 1993.

"Until 1979 there was a law that [they] could take us to jail just for walking on the streets and being a bit camp."

Continue reading the main story

“Start Quote

I think we should go to the homes and ask for our rights”

Mili HernandezSpanish gay rights pioneer

The 1980s Aids epidemic was another setback for equal-rights campaigners.

"Now we have [some] of the best laws in the world for homosexuals, but we didn't have enough time to change mentalities," Ms Hernandez says, and points out that there are still very few high-profile, openly gay role models in the country.

"We're still in the closet," she says.

The bookstore owner sympathises with the problems of gay pensioners in care but she would prefer a different approach.

"I think we should go to the homes and ask for our rights. Ask for a double room, and tell them we are gay. We should try to insist."

But plans for the alternative home are already well advanced.

"It's too tough to make people who are suffering now wait until society changes and the discrimination ends - when people whisper about you and call you names, and won't enter your room," argues Federico Armenteros.

"These things are shrinking but unfortunately they exist."

He and his partner have already signed up for an apartment.

"I'll be living in a quality place, with people who respect, understand, love and care for me," Mr Armenteros says.

"Usually, when you end up in a home you're just another number. But this is something completely different."

'Social need'

A flat at the new complex should also work out considerably cheaper than the average retirement home.

How the home should look eventually

That is largely because a sympathetic local mayor has granted a low-cost 75-year lease on the land.

The co-operative system means members will cover 40% of the home's costs in advance while remaining funds will be sought from the banks.

For the architects who have drawn up the plans - for no charge, so far - the project makes sound sense.

"This is a project which will actually happen - that's important because we've done a lot of unnecessary building in Spain," says chief architect Julio Touza Sacristan, walking the plot with his sketches and artist's impressions.

But he also got involved because he saw a social need for the residence.

"I'm not sure everyone would like to be associated with such a project," he says.

"We're not as modern as we think we are in Spain but we think this is really necessary."

For Jose Maria Herreras, the place cannot be built quickly enough.

"This is somewhere where everyone will be equal," he says. "It's a totally different home where we won't have to hide who we are. We will be people. I will be free again."