British Airways Plane 'Crash' In Johannesburg

A British Airways plane has crashed into a building at Johannesburg Airport in South Africa.

The aircraft, carrying 182 passengers, sliced its wing through the building while taxiing on the runway, BA confirmed.

Posting on Twitter, the airline said: "One of our aircraft was damaged whilst taxiing at JNB airport. All 182 passengers disembarked safely with no injuries onboard."

There has so far been no comment made on whether anyone was injured in the building or on the ground.

The plane involved is believed to be a Boeing 747.

British Airways says nobody in the plane was injured. Pic: John Hart

Harriet Tolputt, Oxfam's head of Media, who was on the flight, posted pictures of the incident on Twitter.

She wrote: "BA plane crashes into building at J Burg airport. No one injured only the pilot's pride ... Not impressed that first class passengers get off before premium economy during an emergency."

Johannesburg Airport said it would be able to provide more information on the incident later in the morning.

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Weather Damages 'Biggest Xmas Shopping Day'

A predicted high street spending spree dubbed 'Manic Monday' has largely failed to materialise, with strong winds and heavy rain combining to force late-Christmas shoppers indoors.

Analysts had expected 15 million people to take to stores, spending £2.6m a minute on gifts, food, drink and decorations.

But the spending spree appears set to fall short of retailers' expectations after the bad weather disrupted travel and left shoppers seeking shelter.

Despite huge red signs announcing sales of up to 70%, many shops on London's Oxford Street were experiencing customer numbers they would see on a normal day rather than those you would expect just two days before Christmas.

One M&S shopper said: "With the weather, well, it's really quiet.

"A few years ago you wouldn't have been able to get in here."

Major indoor centres, however, were expected to have benefited from the storm.

The Waitrose department store-supermarket in London's Canary Wharf had long lines waiting at tills while car parks at Manchester's Trafford Centre were reported to be full.

Retailers had expected their biggest day of the year, with shoppers parting with about £3.6bn by the end of the day.

Visa expected to process 31 million transactions on UK cards with a peak between 1pm and 2pm as workers rushed out to the shops on their lunch break.

Visa predicted an average £15,000 per second would be spent on its cards.

Many retailers have been furiously discounting prices over the past few days in a bid to attract shoppers amid signs of a slow start to the big festive spend.

While the prospect of bargains bodes well for consumers who left their shopping late, there are fears the price cuts will leave the retail sector with a profits hangover after a bruising battle for business during 2013.

Large promotions have included a 30% discount across clothing lines at Marks & Spencer, as well as price cuts at Debenhams, Gap, Argos and BHS.

John Lewis confirmed on Sunday it had enjoyed record weekly sales with takings hitting £164m - up 4.2% on the same period last year - though its customers tend to be less affected by the squeeze on incomes than the average consumer.

Many supermarket chains planned to keep their biggest stores open 24 hours daily until late on Christmas Eve.

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Tobacco Boss Quits Helm Of Silk Cut-Maker

By Mark Kleinman, City Editor

The executive who orchestrated Japan's biggest-ever takeover of a British company has quit his role at the helm of the manufacturer of Benson & Hedges and Silk Cut.

Sky News has learnt that Pierre de Labouchere, the president and chief executive of Japan Tobacco International (JTI), resigned with immediate effect.

The departure of Mr de Labouchere, who led Japan Tobacco's £7.5bn acquisition of Gallaher International in 2007, surprised analysts, who said they expected that the exit of such a senior executive would have been the subject of a public announcement.

JTI accounts for over half of its parent's global earnings and through its ownership of Gallaher's brands, which also included Mayfair, it now jostles with Imperial Tobacco for leadership of the UK cigarette market. British American Tobacco has a vast international presence but a comparatively small share of the UK market.

Mr de Labouchere has been replaced by Tom McCoy, previously the chief operating officer.

In a statement issued on Friday, a JTI spokesman said: "I confirm that Mr. Pierre de Labouchere has decided to resign from his position as President and Chief Executive Officer of JTI as of December 18th.

"Mr Thomas A McCoy has been appointed President and Chief Executive Officer of JTI. He brings in-depth knowledge of the business and a wealth of experience to this new responsibility. His 14 years with JTI have generated a proven track record of success in leading the international tobacco business at JTI."

JTI declined to comment on the reasons behind Mr de Labouchere's sudden departure but insiders said that another senior executive responsible for the company's mergers and acquisitions activity had also quit in recent days, suggesting some kind of strategic disagreement.

Mr de Labouchere, one of the most senior Frenchmen in a major Japanese company, led the takeover of Gallaher having previously been president of JR Reynolds' international operations, which were acquired by JTI in 1999.

JTI's UK operation is run directly by Jorge da Motta, who took over earlier this year.

He warned on his appointment that "the most challenging dynamic for the UK business is the high tax regime and the corresponding high level of non-UK duty paid cigarettes at a time when the Government is consulting on plain packaging".

"This makes the threat to legitimate businesses both small and large significant and dangerous," he added.

Headquartered in Geneva, JTI recorded sales of $11.8bn (£7.2bn) in 2012. The company has operations in more than 120 countries and about 25,000 employees.

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Christmas Debts 'Won't Be Cleared Until June'

The average family is going to take on debts this Christmas that will take until June to pay off, it has been claimed.

The Trades Union Congress has carried out research that shows that the typical family will add £685 to its borrowing by the time the festive season is over.

That will take a family on an average income 24 weeks to pay off, the labour organisation claims.

Last Christmas, one in six families borrowed money to pay for food, drinks and presents, with households borrowing an average of £654 per adult (Men £1,000, women £547).

Using average weekly earnings and savings data the TUC estimated that it took average-income earners 20 weeks to pay off this debt.

This year, consumer debt has increased by 4.9 per cent. The TUC's calculations estimate that it will take four more weeks for an average-income earner to pay back the extra debt burden they will take on.

If a minimum wage worker were to borrow the same sum it would take them an entire year working full-time to pay it off.

The TUC says the findings underline how ordinary people are not benefiting from the recovery and are instead facing a bigger struggle to pay off their debts.

The study has emerged on the day when the Bank of England has warned of the scale of the debt burden weighing on British families.

According to the TUC, British workers are currently suffering the longest real-wage squeeze since the 1870s, with inflation rising faster than wages for the last 42 months.

It says the government needs to make fairer pay rewards a priority.

Nicola Smith, head of economic and social affairs at the TUC, told Sky News: "It's to do with the fact that is an expensive time of the year for everybody, and with wages hardly having kept up with prices for the last four years, with family incomes under historic pressure, just meeting the basic costs of Christmas is going to mean a lot more people having to rely on credit."

She said the problem was that most growth in the economy was being provided by consumption and because pay was not keeping up with prices, the extra money people had to spend on buying goods was coming from borrowing.

"People are having to borrow to make up the extra spending that is driving growth in the economy," she said. "It's really worrying that that does not provide us with a sustainable basis for a recovery going forward."

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Christmas Shoppers To Spend £12bn In Four Days

By Emma Birchley, Sky News Reporter

Shoppers are expected to spend £12bn in just four days as they make the most of slashed prices and promotions, according to retail forecasters.

The deals are being offered as a fierce battle for sales rages both on the high street and online.

Alan Dadswell relies on Christmas to keep his shop Toys 'N' Tuck in Southend-on-Sea going and he says discounts are crucial.

He said: "To get people to spend the money they have got to feel they are getting a bargain and we have got to give them a bargain. We have to hunt with our suppliers to do good deals to get people in to the store."

A sluggish autumn has put added pressure on retailers.

But with 74% of shops offering deals, 13 million people are expected to shop on the high street on the last Saturday before Christmas.

It will help that many people finished work for Christmas on Friday.

Offering discounts at Toys 'N' Tuck in Southend-on-Sea is crucial

But Diane Wehrle, from the shop footfall monitors Springboard, says shoppers are getting increasingly canny.

She said: "Tactics definitely come into it. Shoppers are becoming much more savvy than they used to be. They understand that retailers are slashing prices. They understand they are doing one-off specials and they wait for them.

"So they perhaps go window shopping before the Christmas trading period starts, look out for what they want to buy and then buy them when they are on offer."

Lizzy Clarke, armed with bags of gifts in Southend, has made the most of the offers.

"They've got some great deals ... 75% off in some stores and I've just bought some jumpers that cost me £30 last week and this week have cost me £7," she said.

But Rob Antoniazz, who is unconvinced, said: "The decent items in good shops are never up for sale because the demand is there to buy them."

Tesco's distribution centre in Erith, Kent, has gone into overdrive

Half of the money being spent in the four days to the end of Monday will be on food, with £900m going towards online groceries.

Tesco has sold twice as many turkeys over the internet than last year. At its distribution centre in Erith, Kent, staff are working around the clock preparing orders.

Simon Belsham, the managing director of Online Grocery for the chain, said: "This is a really busy time of year for us. It really reflects that customers are looking for more and more convenient ways to shop for their Christmas presents and Christmas food."

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M&S Extends Clothing Sale Amid Poor Trading

By Mark Kleinman, City Editor

Marks & Spencer (M&S) is to extend heavy discounting on clothing into a second day on Sunday as it attempts to drive sales during the most crucial period of its trading year.

Sky News has learnt that the high street giant will run another sale offering 30% off all clothing lines just three days before Christmas amid growing expectations of one of the toughest festive periods for retailers in years.

While food sales are said to have been satisfactory, M&S is understood to have been disappointed by the response to Saturday's clothing sale, prompting executives to decide during an evening conference call to repeat the event on Sunday.

The company is far from alone on offering heavy discounts on clothing, with 50% off usual prices at Banana Republic, French Connection and Reisss, and up to 60% savings on some lines at Gap.

M&S is, though, the most closely-watched of any retailer on UK high streets because of its scale.

It has tended to shun such significant pre-Christmas discounts under the leadership of Marc Bolland, its chief executive, although it occasionally ran them under Sir Stuart Rose, his predecessor.

Mr Bolland has been attempting to improve M&S's clothing sales by introducing new management and a focus on greater quality, but faces an anxious wait to see whether that translates into adequate trading.

Standard Life Investments, one of the retailer's biggest shareholders, said in January that disappointing Christmas trading last year meant that Mr Bolland was on borrowed time, although many investors are keen to give his strategy more time to take effect.

Some analysts are forecasting a fall in sales during the important third-quarter period, although the like-for-like measurement that will be provided by retailers in January does not indicate the profitability of their sales.

M&S declined to comment on Saturday.

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Cable Attacks PM Over 'Immigration Panic'

By Darren McCaffrey, Political Reporter

Business Secretary Vince Cable has accused the Prime Minister of panicking on the issue of immigration and comparing that panic to the notorious 'Rivers of Blood' speech made by Enoch Powell.

Referring to previous periods of heightened tensions, Mr Cable said politicians had a responsibility to give the facts and not resort to populist tactics.

David Cameron arriving at the EU summit last week

In a series of attacks on the Conservative's stance on immigration made on BBC1's Andrew Marr Show, Mr Cable said: "The responsibility of politicians in this situation when people are getting anxious is to try to reassure them and give the facts, not panic and resort to populist measures that do harm.

"The 75,000 cap is illegal and impossible to implement in any event. I think what's happening here, the Conservatives are in a bit of a panic because of Ukip (UK Independence Party) reacting in the way they are.

"All the evidence suggests that they put far more into the economy in terms of tax than they take out in benefits."

Bulgarian President Rosen Plevneliev

Meanwhile the Bulgarian President has warned David Cameron he risks being judged by history as a Prime Minister who has isolated the UK and damaged its reputation.

Rosen Plevneliev said his countrymen were watching Britain's immigration debate unfold and raising questions about the "democratic, tolerant and humane British society".

Transitional controls on Romanian and Bulgarian migrants will be lifted in two weeks.

Some think-tanks have warned that 50,000 people could arrive from the two countries each year.

Mr Cameron has reacted to concerns about the move with a string of interventions including to limit access to benefits for those travelling to the UK.

At the European Council meeting in Brussels this week he threatened to veto the EU-accession of new countries such as Albania and Serbia without strict immigration rules.

One idea put forward by the PM is to set a GDP limit below which countries will not be given free movement of labour if they join the EU.

Mr Plevneliev said he feared for the safety of Bulgarians in Britain. He said "iron curtains" should not remain in the 20th century, arguing this was a time to bring down walls, not to build them.

"Mr Cameron should never forget that a politician is remembered in history not with the everyday business," he said.

Transitional controls on Romanians and Bulgarians to be lifted in two weeks

Reacting to Mr Cable's comments, a Number 10 spokesperson said: "Vince is a member of the government and supports government policy. The words he chooses to do that are up to him."

Meanwhile, Labour has accused the Government of being spilt on the issue. Shadow immigration minister David Hanson MP, said: "Government measures could have been taken much earlier and a sense of panic and hyperbole could have been avoided.

"Instead we have the chaos of the Prime Minister and Home Secretary (Theresa May) pretending to pull up the draw bridge and the Lib Dems doing nothing to reform the labour market - both approaches deeply damaging to Britain and local workers."

Mark Field, a Conservative backbencher, has also entered the debate saying the tough talk on immigration could turn off non-white voters.

He has warned Mr Cameron not to repeat the mistakes made by Mitt Romney - the US Republican candidate - in 2012.

He said failure to reach out to the Hispanic community had meant it had failed to understand his stance on immigration.

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Apple Strikes iPhone Deal With China Mobile

Apple has finally secured a deal to bring the iPhone to China Mobile, the world's biggest network, opening the door to a massive sales boost.

The state-owned network has more than 750 million subscribers.

The latest iPhone 5S and 5C will go on sale in the country from January 17 with analysts forecasting a sales surge of anywhere between 10 and 25 million over the next year.

China's granting of 4G licences earlier this month is thought to have helped the deal as the faster network is compatible with the iPhone.

In a statement promoting the deal, Apple and China Mobile said they were "excited" to finally be working together.

Apple CEO Tim Cook said: "Apple has enormous respect for China Mobile and we are excited to begin working together. China is an extremely important market for Apple and our partnership with China Mobile presents us the opportunity to bring iPhone to the customers of the world's largest network."

While popular around the world, the iPhone has faced tough competition in China from cheaper Android smartphones made by the likes of Samsung. Collectively, Android phones far outsell iPhone models.

Apple's cheaper 5C model, released earlier this year, was widely seen as an attempt to crack the Chinese market.

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SFO Investigates Rolls-Royce Bribery Claims

The Serious Fraud Office (SFO) has started a formal investigation into bribery and corruption allegations at Rolls-Royce.

The claims first came to light a year ago when the SFO ordered the world's second-largest maker of aircraft engines to conduct an inquiry and hand over details of possible wrongdoing in China, Indonesia and other markets.

"We have been informed by the Serious Fraud Office that it has now commenced a formal investigation into these matters," Rolls-Royce said on Monday.

Last December, the company said it was co-operating with regulators relating to allegations of malpractice involving intermediaries in Indonesia and China.

The aerospace and defence group said then it had "identified matters of concern in these, and in other overseas markets."

Shares in the company, which operates in more than 50 countries across the world, were 0.2% down in the minutes following the announcement.

The group, which has major sites at Derby and Bristol and employs around 45,000 people, appointed veteran lawyer Lord Gold last year to review the company's compliance procedures in the wake of the claims.

In March, the company appointed BP director Ian Davis, a former managing director of management consultancy McKinsey & Co, as chairman.

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M&S Says Sorry Over Alcohol Refusal

Marks & Spencer has apologised after a Muslim member of staff refused to sell a customer alcohol.

The retailer said that where employees have religious beliefs that restrict what foods or drinks they can handle, it tries to place them in a "suitable role".

An M&S spokeswoman said: "We regret that in the case highlighted we were not following our own internal policy."

The issue arose after an unnamed customer at a London store told the Telegraph they were "taken aback" when an "extremely apologetic" Muslim checkout worker asked for them to wait for another till to become available.

The customer told the newspaper: "I had one bottle of champagne, and the lady, who was wearing a headscarf, was very apologetic but said she could not serve me. She told me to wait until another member of staff was available.

"I was taken aback. I was a bit surprised. I've never come across that before."

Drinking alcohol is forbidden in Islam, and some Muslims refuse to handle it.

M&S said its policy applied to staff of other religions, not just Islam.

The spokeswoman said: "Where we have an employee whose religious beliefs restrict food or drink they can handle, we work closely with our members of staff to place them in suitable role, such as in our clothing department or bakery in foods...

"As a secular business we have an inclusive policy that welcomes all religious beliefs whether across our customer or employee base.

"This policy has been in place for many years, and when followed correctly, we do not believe that it should compromise our ability to offer the highest level of customer service.

"We apologise that this policy was not followed in the case reported."

The case highlighted differences among retailers on whether religious staff should have to carry out certain jobs, the Telegraph said.

Sainsbury's guidelines say that there is no reason why staff who don't drink alcohol or eat pork on religious grounds could not handle them, the paper said, while Tesco said it made "no sense" for staff who refuse to touch items for religious reasons to work on a till.

Muslims working at Asda would not have to work on tills if they objected to handling alcohol, and Morrisons would "respect and work around anyone's wishes not to handle specific products for religious or cultural reasons", the paper added.

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Challenger Bank Aldermore Targets 2014 Float

By Mark Kleinman, City Editor

The challenger bank Aldermore is targeting a stock market listing within a year as it finalises a multimillion-pound fundraising to accelerate its expansion.

Sky News has learnt that two blue-chip funds, Lansdowne Partners and Toscafund, are to inject about £40m into Aldermore in a deal that will value the lender at more than £450m.

The transaction comes on the day that Aldermore joins the Government's Help to Buy scheme, which is aimed at stimulating the  housing market but which has already stoked a debate about whether it will foment a bubble in property prices.

Lansdowne is understood to be investing £10m in Aldermore, while Toscafund is injecting £30m as part of the fundraising.

A third fund, Och-Ziff Capital Management, is understood to have withdrawn from the talks at a late stage.

Aldermore is led by Philip Monks, a former Barclays executive, and its majority shareholder is AnaCap, a private equity firm.

"I can confirm that Aldermore is exploring options to raise additional capital to continue the bank's rapid growth," a spokesman said when Sky News revealed the talks with potential investors earlier this month.

"The bank returned a profit of £9.2m in the first half of this year and is on course to deliver even greater returns by the end of 2013.

"We have very supportive shareholders who are willing to invest in the bank and fund our growth plans to ensure we continue to champion SMEs and consumers across the UK."

An insider confirmed that Aldermore had agreed with its new investors that it would begin exploring an initial public offering of shares next year.

There is an unprecedented pipeline of British banks waiting to list their shares publicly, including branch networks being sold under European state aid rules by both Royal Bank of Scotland (RBS) and Lloyds Banking Group under the TSB name.

Metro Bank, which is raising £385m to fund its expansion, has said it is likely to target a flotation in 2016.

Virgin Money, which on Monday begins trialling current accounts with its 3,000 employees, and Santander UK are also likely to pursue listings within two years.

An Aldermore spokeswoman declined to comment on the details of its fundraising.

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RSA Slumps Further Amid Downgrade Rumours

Shares in insurance giant RSA have fallen by a further 2.5% during early trading on Monday, amid rumours of a possible credit rating downgrade.

The slump comes after its chief executive Simon Lee quit in wake of the company's Irish crisis, as well as the company's third profit warning in less than six weeks.

On Friday, the FTSE 100 company, which owns More Than and has more than 20 million customers worldwide, announced it will need to strengthen reserves by some £130m, on top of the £70m "black hole" uncovered during a routine internal audit last month.

The announcement comes amid an ongoing review of RSA's Irish business amid fears of inadequate bookkeeping systems.

RSA chairman Martin Scicluna is upbeat about the company's 2014 prospects

Auditor PwC is expected to file its report next month.

RSA chairman Martin Scicluna previously said the company remained a "leading insurance brand" and insisted the outlook was more positive for 2014.

However, the business has warned it expects to pay out up to £25m after a surge in claims for damage caused by severe weather that battered the UK and Scandinavia earlier this month.

The losses, coupled with the issues identified in RSA's Irish division, prompted Standard and Poor's to cut its credit rating to A and place the company on so-called "CreditWatch".

Moody's, whose A2 rating has stood since December 2008, says the outlook for the company is "stable" but warned: "The reduced level of profitability (from recent announcements) are credit negative for RSA."

Mr Scicluna said: "We have enviable market positions across the globe and attractive businesses with healthy underlying profitability.

"We have deep expertise and capability across our management team.

"The board and I are confident that RSA will re-emerge as a stronger group in 2014."

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Miliband Threat To Councils On House Building

Communities who refuse to allow thousands of homes to be built on their doorsteps will have their views over-ridden under plans by Labour for more housing.

Developers who hoard land would also be told to use it or lose it.

Announcing a commission into housing, Ed Miliband set out how Labour would tackle the "worst housing shortage for a generation".

He said that under a Labour government "stick-in-the-mud" local councils who refused to allow neighbouring authorities to expand would be forced to unlock land for development, under "right to grow" schemes.

Although Mr Miliband insisted: "Of course it is right that local communities have a say about where housing goes. But councils cannot be allowed to frustrate continually the efforts of others councils to get homes built."

He also said that developers who had bought land and had planning permission but did not develop it would be ordered to sell it to local councils or charged fees for leaving it empty.

Mr Miliband said during a visit to a housing development in Stevenage that his plans would double the number of new homes being built to 200,000 a year by 2020.

Ed Miliband is announcing a commission on housing

Estate agent Rightmove has warned that house prices will rise by 8% in 2014 unless more homes are built.

There are fears that the Government's Help to Buy scheme is overheating the market in the south.

Mr Miliband said: "Profits for our four biggest housing developers are going through the roof.

"They have soared 557% since this Government took office - even though homes have been built at their slowest rate witnessed in peacetime for almost a century.

"But there are large amounts of land - enough to build more than a million homes - earmarked for houses which have not been built. Developers need a bank of land with which to work. But sometimes they, and other landowners, are hoarding it.

"The next Labour government will give councils powers to charge fees or, if necessary, purchase such land, so that developers have an incentive to do what they went into business to do.

"We will back home builders. But we will tell land hoarders with sites that have planning permission that they must use it or lose it."

Deputy Prime Minister Nick Clegg said Mr Miliband's initiative on housing was one of a series of "populist, gimmicky" announcements by Labour designed to draw attention from the party's failure to put forward a plan on the economy.

he said: "They are avoiding making any pronouncements on the major economic judgments they would need to make if they were to find themselves in government, instead favour a series of populist, gimmicky policy pronouncements."

Communities Secretary Eric Pickles rejected Labour's proposals, arguing that councils should be able to decide where new developments were located through local plans while safeguarding important environmental protections.

He said: "Under Labour, housebuilding fell to its lowest peacetime rate since the 1920s. Their top-down regional strategies and eco-towns failed hard-working families who aspired to own their own home, building nothing but resentment."

The commission set up by Labour under ex-BBC Trust chairman Sir Michael Lyons, will begin work looking at the "right to grow" scheme and the "use it or lose it" powers.

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Inga Beale Becomes Lloyd's First Female CEO

Lloyd's of London, the world's biggest insurance market, has appointed a female boss for the first time in its 325-year history.

Inga Beale, who has more than 30 years' experience in the industry, will take up the role in January, replacing the outgoing Richard Ward.

It follows an "extensive global search" by Lloyd's for someone with the right credentials for the job.

Ms Beale replaces former CEO Richard Ward

Chairman John Nelson said he was "absolutely delighted" with the appointment.

"Inga's CEO experience, underwriting background, international experience and operational skills, together with her knowledge of the Lloyd's market, make her the ideal chief executive," he said.

A prominent gender divide remains in the City, where four in every five workers are male, according to recruitment company Astbury Marsden.

Fewer than half of staff consider their employer has a clear policy on diversity, while just one in five believe their firm actively recruits with diversity in mind.

Ms Beale, whose appointment follows that of Charlotte Hogg to chief operating officer of the Bank of England, said: "I'm looking forward to working with the Lloyd's team ... to deliver a strategy for profitable and sustainable growth."

The 50-year-old's most recent role was as group chief executive of Canopius, prior to which she worked at Zurich Insurance as its global chief underwriting officer.

She started her career at Prudential, working as an underwriter at its London offices.

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Carrefour Plans £1.7bn Shopping Malls Deal

Carrefour has announced plans to buy 127 shopping centres across Europe in a €2bn (£1.69bn) deal.

France's largest retailer, which already owns nearly 10,000 hypermarkets, supermarkets and convenience shops across the continent, has joined forces with eight investors to buy the centres in France, Spain and Italy.

Many of the Klepierre sites, which are located in France, Spain and Italy and generate an annual rental income of €135m (£114m), are close to its existing stores.

They will sit alongside its existing 45 malls in a new company, 42% of which will be held by Carrefour with the rest held by investors.

Carrefour has been struggling for years, even before the European debt crisis hit its biggest markets.

Georges Plassat took over as chief executive last year, pledging to cut costs and improve the fortunes of the company's 1,300 hypermarkets.

Carrefour's share price climbed more than 1.5% in the hours following the announcement.

The deal, which Carrefour said would make it one of Europe's leading shopping mall companies, is subject to regulatory approval.

The company is expected to close the deal in March or April next year.

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Virgin Money To Launch Current Account Trial

By Mark Kleinman, City Editor

The banking arm of Sir Richard Branson's business empire will on Monday become the latest high street lender to begin an assault on Britain's lucrative current account market with the launch of a pilot among its 3000 employees.

Sky News understands that Virgin Money, one of the country's fastest-growing banking groups, will unveil the trial ahead of a full launch scheduled for next year.

It will mark a potentially-significant phase in efforts to bolster competition in the current account market, with well over 80% of accounts currently supplied by the five biggest lenders: the state-backed Lloyds Banking Group, owner of HBOS, and Royal Bank of Scotland, which owns NatWest; Barclays, HSBC and Santander UK.

Once the staff trial has been completed, Virgin Money will target consumers who are underserved by the major lenders, offering a basic account with no fees or charges and free access to the UK ATM network of cash machines.

Sir Richard Branson celebrates his acquistion of Northern Rock in Newcastle

Doing so is expected to be loss-making for Virgin Money, according to analysts, meaning that the availability of the product is likely to be restricted to those consumers without an existing current account.

A wider launch will get underway in Scotland and Northern Ireland in the first quarter of next year, with nationwide coverage and a digital banking service likely to be available by the end of 2014, according to people with knowledge of Virgin Money's plans.

Virgin Money executives are understood to be confident of making a serious impression on the current account market by utilising the network of Northern Rock branches and infrastructure that it acquired in 2011, and through a marketing campaign emphasizing the parent brand's credentials of service and value.

"There won't be hidden charges or gimmicks. It will be about delivering for consumers," an insider said on Sunday.

Sir Richard has said previously that he wanted to offer a choice between 'free' current accounts and those which incur a small up-front fee. It is unclear whether that will be the case as Virgin Money ultimately grows its presence in the sector in the coming years.

The issue of current account charges is becoming more intensively-debated as banks face up to the increased regulatory costs that will be triggered by the ring-fencing structure being introduced as part of the Government's banking reforms.

Under the new rules, so-called universal banks such as Barclays and RBS will have to establish separate subsidiaries for their high street and investment banking arms, which the Independent Commission on Banking said in 2011 was likely to cost the industry several billion pounds annually.

Virgin Money is likely to be an indirect beneficiary of the new rules because its sole focus on retail banking will mean that it does not have to process many of the complex structural changes required by its competitors.

Taking over Northern Rock was a crucial moment in Virgin Money's expansion

It is also likely to be aided by the new seven-day switching system for current account providers which came into effect during the autumn. Barclays and the Co-operative Bank are among those which have seen net losses of customers, the latter as a result of the adverse publicity over its £1.5bn capital hole and allegations about the behaviour of its former chairman, Paul Flowers.

During the last year, Virgin Money sold more than 1.5 million new products to customers, having established a significant market share in loans, insurance and savings.

Its takeover of Northern Rock was a crucial moment in its expansion, but the length of time between that deal and the current account launch reflects both Virgin Money's determination to develop the right products and the pitfalls of associating its brand with the poor service that has blighted British banking.

Senior executives at the major banks admit that they have only been able to avoid charging for current accounts because they have been subsidised by the sale of products such as payment protection insurance (PPI).

The mis-selling of PPI and a range of other products have cost the major banks billions of pounds in compensation and further tarnished the industry's reputation.

Last week, Tesco said it was poised to create hundreds of jobs by entering the current account market at a time when the supermarket group is wrestling with challenges in its core retailing business.

Other new current account providers include Metro Bank, which is raising nearly £400m from investors in an attempt to accelerate its growth.

Jayne-Anne Gadhia, Virgin Money chief executive, declined to comment on the details of its plans but told Sky News: "Our entry into the current account market is a significant step on our quest to make banking better."

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Music Industry Worth £3.5bn To British Economy

The music industry is worth an annual £3.5bn to the British economy - much more than previously thought, a new report has revealed.

Figures from UK Music, the trade body for the recorded and live music industry, show how much profit the sector makes and how much its 100,000 full-time workers are paid - a combined amount known as gross value added (GVA).

They also reveal music businesses generate £1.4bn every year from exports, while British chart-toppers including Emeli Sande, Adele and Ed Sheeran, whose albums dominated the 2012 sales chart, boost the UK's international brand and reputation by an estimated £72m.

Until now, it has been difficult to measure exactly how much the music industry is worth.

Adele, who has had two number one albums, is another British success story

Figures from the vast majority (86%) of record labels and music publishing companies are stored using inaccurate codes, while smaller companies and freelance workers earning less than the £79,000 VAT threshold do not feature in statistics at all.

UK Music, which described existing estimates as "flawed", pored through pages of data from thousands of businesses to calculate the GVA figure.

It found musicians, composers, songwriters and lyricists contribute the most (£1.6bn) to the economy and also employ seven out of every 10 people who work in the sector.

Live music contributes £662m, followed by recorded music (£634m), music publishing (£402m), music representatives (£151m) and music producers and recording studios (£80m).

The success of artists like Ed Sheeran has boosted Britain's reputation

Jo Dipple, chief executive of UK Music, said the results prove the industry is a "substantial contributor to the economy".

"Our music might be fun, but it's also a formidable asset to the UK," she said.

"The Government has said it wants to support the creative industries but until now it's not had the precise data to hand. It does now.

"A realistic picture of the how the industry is made up will lead to a better understanding of what investment and regulatory environment is needed to help our industry thrive.

"It's a great UK success story, but now it can be even better understood and developed."

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Young Entrepreneurs Set Up Shop In Britain

A new wave of young entrepreneurs behind innovative start-up businesses, including one which makes green energy from waste coffee, have arrived in the UK.

Under the Government's Sirius scheme, graduates from across the world are given a 12-month support package, including financial aid of up to £48,000, to set up in Britain.

The first 19 young entrepreneurs to be accepted onto the programme come from 13 countries including India, China and Germany, as well as African countries like Kenya and Nigeria.

They include Tim Brown, an ex-footballer who played for New Zealand at the 2010 World Cup, who founded ToBe, a company making running shoes which do not need socks.

"Our invention will totally revolutionise the way athletes train," he said.

"Being based in the UK will enable us to start up and develop alongside like-minded entrepreneurs and gain access to world class strategic advice and support."

Other entrepreneurs include Kenyan Edwin Openda and Italian trio Carlo de Micheli, Stefano Caso and Andrea Gurnari, whose Savesquared portable chargers allow smartphone users to charge their handset's battery for £1.

British pair Benjamin Harriman and Arthur Kay launched Bio-Bean to convert waste coffee grounds into biofuel, while Vietnam's Duy Nguyen, India's Amit Pate and David McGee, from the UK, founded Veri-tag.com, which helps consumers prove any branded products they buy are genuine.

Lord Livingston, the trade and investment minister, said: "The UK is one of the best places in the world to become a successful entrepreneur and we're committed to helping talented entrepreneurs from around the globe to build their businesses here.

"Looking at the high calibre of entries we've received for this programme, it's clear that Britain is fast becoming the country of choice for talented graduates to start and grow their businesses, which will ultimately help our economy to grow, boost productivity and create jobs, and succeed in the global race."

The Sirius programme, which offers young entrepreneurs business mentors and help gaining clients, is accepting entries until January 15, 2014.

:: Watch Sky News live on television, on Sky channel 501, Virgin Media channel 602, Freeview channel 82 and Freesat channel 202.

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Small Business: More Jobs As Confidence Soars

More than half of Britain's small businesses say they plan to expand in 2014 amid surging confidence in the economy.

Some 56% of firms hope to grow moderately or rapidly in the next 12 months, according to the Federation of Small Businesses (FSB).

Its Q4 2013 survey found confidence among business owners was up 21 points, with those in the East Midlands most upbeat about their prospects.

Confidence was especially high among small firms offering financial services, as well as those in computing, business services, manufacturing and real estate.

Meanwhile, the number of small businesses applying for credit in the past three months fell to 16% - its lowest level for two years.

About a third (32%) of companies are running at full capacity, while one in 10 have more work than they can handle.

Although only 1% of firms increased staffing levels in Q4, 3% plan to increase their head count in Q1 2014.

Rob Harbron, a senior economist at Cebr, said the survey pointed towards an "optimistic trend" that lays "solid foundations" for economic growth next year.

"Turnover growth is increasingly buoyant and profitability has increased for the first time since the data series began," he said.

"Particularly promising trends are being seen in business intentions for the coming quarter and year.

"Small firms plan to increase headcounts for the third consecutive quarter.

"This follows three-and-a-half years of reported reductions and should help to bring UK unemployment down towards the 7% level that has not been touched since early 2009."

However, John Allen, national chairman of the FSB, warned the UK economy still has "long-term structural problems", including skills shortages and ill-functioning markets in banking and energy.

"Tackling skills and work-readiness should be an absolute priority for the Government as recent headlines show the UK risks lagging behind competitors in emerging markets, and there remains the outstanding issue of fundamentally reforming business rates," he said.

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France: Fears Of New Recession As Output Falls

Manufacturers in France say output has fallen to its lowest level for seven months, renewing fears of another recession in a country described as the "new sick man of Europe".

The latest purchasing managers' index (PMI) figures reveal the rate of decline has accelerated, falling to 45.3 - down from 48.0 the previous month.

It is the fifth month in a row that production has contracted, with lower orders from cautious new customers blamed for the decline.

Meanwhile, services activity decreased at the fastest rate since June and staffing levels continued to decline, meaning employment in the private sector has fallen in 21 of the previous 22 months.

The decline would need to be reflected in gross domestic product (GDP) figures for France to officially return to recession.

The country only climbed out of its previous slump in September, when growth in Q2 was put at 0.5% by the National Institute of Statistics and Economic Studies (Insee).

Chris Williamson, chief economist at Markit, which compiled the data, said: "France looks increasingly like the new 'sick man of Europe', as a second successive monthly contraction may translate into another quarterly decline in GDP, pushing the country back into a technical recession."

Senior economist Andrew Harker added: "The last flash PMI readings for 2013 paint a worrying picture on the health of the French economy.

"The return to contraction in November has been followed up with a sharper reduction in December, with falling new business at the heart of this as clients were reportedly reluctant to commit to new contracts.

"Firms will hope that such reticence ends in the new year as they seek to avoid another protracted downturn."

Output in France was in stark contrast to that of Germany, where expansion returned to a rate not seen for more than two years.

The eurozone as a whole saw output rise for the fifth month in a row and at the steepest rate since April 2011.

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Payday Loans To Be Capped By Government

The cost of payday loans will be capped under new laws by early 2015, the Government has announced.

The industry has been criticised over the affordability of the loans and the way they are marketed, with critics claiming the firms take advantage of vulnerable people.

The Competition Commission is currently investigating the industry and an Office for Fair Trading (OFT) report in September said there were "deep-rooted" problems in the way the loan companies operate.

New financial regulator the Financial Conduct Authority (FCA) will now be forced by the Government to cap the loans.

The Government will amend the Banking Reform Bill currently going through Parliament to formally establish the cap.

The Labour leader has also heavily criticised the industry

The move comes after the Labour leader Ed Miliband spoke out over what he called the "Wonga economy".

Earlier this month he said payday loan companies were "running riot through our communities".

"They are responsible for a quiet crisis of thousands of families trapped in unpayable debt," said Mr Miliband.

Mr Miliband has also called for a ban on payday advertisements during children's television shows, accusing the companies of using "cartoon characters, trendy puppets or cute plasticine figures" to attract children.

George Osborne denied that the move marked a turnaround for the Government, which had initially resisted calls for a cap and denied that Labour had taken the lead on the issue.

The payday loan industry is worth £2bn

He said: "I don't accept it's a departury from any philosophy. The philosophy is we want markets that work for people, and people who believe in the free market, like myself, want that free market to be properly regulated."

He told the BBC Radio 4 Today programme: "The idea that we are following Labour - the Labour Party were in office for 13 years, Ed Balls and Ed Miliband. This issue came up, they were in the Treasury all those years, they did absolutely nothing.

"I am happy to pay tribute to some individual MPs like Stella Creasy, like Robin Walker the Conservative, who have campaigned on this issue.

"But the idea that the Labour leadership, who were running this country for 13 years and did nothing in this space, took a lead is, frankly, fanciful."

However, Ms Creasy said: "Just two months ago this Government criticised Ed Miliband for wanting to reform broken markets, and now today we see them following Labour's lead on the need to act against legal loan-sharking.

Critics claim affordability checks are not being properly carried out

"Whether in Parliament or out on Britain's streets in the Sharkstoppers campaign, we have been making the case that capping is a tried and tested method used in many other countries to tackle the problems caused by payday lenders. For too long David Cameron has ignored our pleas to act and it is cash strapped consumers caught in the spiral of debt these companies generate who have paid a heavy price as a result."

Business Minister Jo Swinson warned in September that interest rate caps to tackle payday lenders could mean people who could pay back loans found they could not get credit and turned to "unsavoury alternatives".

The Competition Commission investigation into the £2bn industry is due to reveal its findings next year.

It will be looking at claims that firms are emphasising the speed of the loan over cost and are "skimping" on affordability checks.

There have also been complaints of payday firms unexpectedly draining people's bank accounts through a type of recurring payment called a continuous payment authority.

Payday loan bosses defended their business in front of MPs

The Financial Conduct Authority, which will take over regulation of consumer credit from the Office of Fair Trading (OFT) in April 2014, was already considering new controls before today's announcement.

Among its proposals are unlimited fines, limiting to two the number of times a payday loan can be rolled-over and compulsory affordability checks for all applicants.

Bosses of three payday loan companies, Wonga, QuickQuid and Mr Lender, defended their industry when they appeared in front of MPs earlier in November.

Citizens Advice chief executive Gillian Guy said: "This is a cap on the exploitation of people struggling with the rising cost of living. Payday lenders have failed to stick to their own promises to treat customers fairly. The Government's plan to cap the cost of loans only goes to show how out of control the industry is."

Richard Lloyd, executive director of consumer group Which?, said: "We're pleased the Government is committed to taking tougher action on payday loans by capping the sky-high fees and charges that drag people down in a spiral of debt.

"This will need to be part of a wider clean-up of the credit market. The Government and the Financial Conduct Authority must clamp down on irresponsible lending and excessive fees across the board, whoever the lender."

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Clegg: Too Many Mums 'Shoved Aside' At Work

The problem of mothers feeling "shoved aside" in the workplace is "far too common" and also bad for the economy, Deputy Prime Minister Nick Clegg has said.

The Liberal Democrats leader said there was a need to dramatically change working practices to adapt to the realities of modern family life.

Mr Clegg's comments came as a survey showed three quarters of women who returned to work after having a child thought it made it harder to progress in their career.

The survey of 1,029 users of parenting site Mumsnet also found 60% of women felt less employable since having a child.

During pregnancy 17% of respondents felt that their employer or manager was not supportive, a figure which rose to 25% when asked about support on their return to work.

Mumsnet has recognised the efforts of five firms that consistently met family-friendly criteria for employees, customers and for their internal policies.

The winners of Mumsnet's gold Family Friendly Awards were: Metro Bank, Matalan, Butlin's, Pizza Express and Starcom MediaVest Group.

Mr Clegg said: "There are many employers out there who do understand the need to retain the best staff and who want to help families better balance work and home. The companies being recognised today set a shining example.

"Modern families come in every thinkable shape and size. In many cases mothers want to work and fathers want to spend more time at home.

"We need to dramatically update our working practices to accommodate these realities, helping families juggle their lives as they see fit.

"That is why from April 2015, the coalition Government is introducing shared parental leave to ensure career options remain open to women after pregnancy."

Mumsnet chief executive Justine Roberts said: "While we have legislation designed to protect women against discrimination in the workplace it's clear that in many cases companies are simply not following the rules.

"Our survey reveals how important the culture created at work is ... but with over half of mums saying they felt less employable and three-quarters saying it was harder to progress in their career since having children, it's clear there's still lots of work to be done to ensure family-friendly practices are commonplace."

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Former Co-op Chairman Released On Police Bail

Chancellor George Osborne has announced plans for an independent inquiry into the Co-operative Bank's near collapse, as its former chairman was released by police.

The review uses new powers under the Financial Services Act and follows calls from Prime Minister David Cameron for an inquiry into the bank's ailing finances and the decision to appoint Paul Flowers as chairman.

It will add to an investigation being considered by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA), following the regulators' talks with Bank of England governor Mark Carney on Friday.

Mr Osborne announced the review

The Co-op faces a rescue which will see 50 branches close and investors including US hedge funds take control of 70% of the business.

The Treasury-led inquiry will look into mistakes made in the run-up to the Co-op Bank's woes and the £1.5bn black hole in its finances, dating back to at least 2008.

The Treasury said it will investigate actions of the regulators and government in relation to the issues at the bank.

It will also cover the Co-op's takeover of Britannia Building Society at the height of the banking crisis, as well as appointment procedures in light of the scandal surrounding Mr Flowers.

Since Mr Flowers stepped down in June, questions have been asked about his competence in the role.

The 63-year-old Methodist minister was arrested by West Yorkshire Police on Thursday night in Merseyside.

He has been held in connection with an "an ongoing drug supply investigation", police said.

Mr Flowers has been questioned all day by police, and was released on Friday evening.

Asked how Mr Flowers was feeling, his solicitor Andy Hollas said: "I think a rather ponderous frame of mind - I think anyone in his situation would be."

Mr Hollas added: "He's not necessarily guilty of anything, he's not been charged with anything."

Mr Flowers resigned as Co-op chairman in June

Mr Flowers was suspended by both the church and the Labour Party following newspaper allegations that he bought and used illegal drugs.

The Treasury's inquiry will not start until the outcome of criminal investigations into Mr Flowers, or it is clear proceedings will not be prejudiced.

As with the recent review into Royal Bank of Scotland, the probe will be independently chaired, which is seen as vital by the Treasury Select Committee because the role of the regulators will also come under scrutiny.

The FCA said it "fully agrees" the investigation should be led by an independent person.

The Co-op is already at the centre of a barrage of investigations, with the group being grilled by MPs on the Treasury Select Committee into the bank's failed Project Verde bid for 632 Lloyds Banking Group branches.

Sky News has learned that the former Bank of England governor, Lord King, warned of a "political desire" for the Co-op to buy the branches.

It also emerged earlier that the Co-op is seeking to recover £31,000 paid to Mr Flowers since he quit his £132,000-a-year post in June.

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Dreamliner Warning After Plane Engines Ice Up

Boeing has warned airlines to avoid flying some Dreamliner planes near high-level thunderstorms due to a risk of engine icing problems.

The warning applies to 15 carriers who have 747-8 and 787 Dreamliners with engines made by General Electric (GE).

It is the latest alert for an aircraft which has suffered a number of technical glitches since its launch, including overheating lithium-ion battery systems that caused the planes to be grounded worldwide for three months earlier this year.

The engine warning follows six incidents between April and November involving five 747-8s and one 787, all of which suffered temporary loss of thrust while flying at high altitude.

The problem was caused by a build-up of ice crystals, initially just behind the front fan, which ran through the engine, a GE spokesman said.

All of the aircraft landed at their planned destinations safely, he added.

Boeing has prohibited the affected aircraft from flying at high attitude within 50 nautical miles of thunderstorms that may contain ice crystals.

In response, Japan Airlines (JAL) pulled 787 Dreamliners from two international routes.

Other affected airlines include Lufthansa, United Airlines, an arm of United Continental Holdings and Cathay Pacific Airlines.

A Boeing spokesman said: "Boeing and JAL share a commitment to the safety of passengers and crews on board our airplanes. We respect JAL's decision to suspend some 787 service on specific routes."

JAL said it will replace Dreamliners on its Tokyo-Delhi and Tokyo-Singapore flights with other types of aircraft.

It also dropped plans to introduce 787s to its Tokyo-Sydney route from December.

The company will continue to fly the aircraft on other international and domestic routes, which are unlikely to be affected by cumulonimbus clouds for the time being.

A spokesman for GE, which is working with Boeing on software modifications to the engine control system in a bid to eliminate the problems, said: "The aviation industry is experiencing a growing number of ice-crystal icing encounters in recent years as the population of large commercial airliners has grown, particularly in tropical regions of the world."

All 747-8s are powered by GE's GEnx engines, while 787s are powered either by GE units or the rival Trent 1000 made by Rolls-Royce.

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Bereavement: Workers 'Should Get Paid Leave'

Campaigners are urging the Government to give workers the legal right to paid leave if they have been affected by a family bereavement amid growing public support for the move.

Two thirds of people said it was unfair that bereavement leave was unpaid, a survey of more than 1,500 adults showed.

The poll, commissioned by the Change Bereavement Leave campaign, also showed that seven out of 10 people said they would back a national guaranteed minimum of paid leave.

The findings were welcomed by Lucy Herd who discovered that her partner could only take three days unpaid leave from work when their 23-month-old son Jack drowned in their garden pond in Cumbria three years ago.

"David Cameron acknowledged he was able to take two weeks off after the death of his own son, but sadly not all parents have sympathetic or understanding employers or can afford unpaid time off," she said.

"We would like to see four weeks of paid bereavement leave for parents."

TUC general secretary Frances O'Grady said: "Thinking about how they might cope following the death of a close family member is clearly not something many of us want to spend much time contemplating.

"Most people will be surprised to learn that unless they have an understanding employer, they may not be able to take much time off work following a death in the family, and if they are, any compassionate leave will almost certainly be unpaid.

"Coping with the sudden loss of a loved one is traumatic enough without having to worry about work too. The Government should do the right thing and give people a legal right to paid time away from their jobs after someone close to them has died.

"Employers can also help ease the upset of their bereaved employees a little by being more generous depending on someone's individual circumstances - for example a parent coping with the sudden loss of a child is likely to need much more time off work."

Labour MP Tom Harris has raised the issue in the Commons, saying that many bereaved parents go back to work too early after the death of a child because they have no right to employment leave.

"Most people are unaware that there is currently no right to bereavement leave for parents. This is an injustice that Parliament needs to address," he said.

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Student Loan Sale Nets Government £160m

The Government has sold off student loans totalling almost £900m to a private debt collection agency for £160m amid warnings of an impact on every taxpayer.

The sale, revealed over the weekend by Sky's City Editor Mark Kleinman, covers loans taken out by 250,000 students who began courses between 1990 and 1998 amid intensifying efforts in Government to raise money for the public purse from the student loan book.

The National Union of Students (NUS) was quick to criticise the sale, telling Sky News it amounted to "the public subsidising a private company making a profit from public debt."

The Department for Business Innovation & Skills (BIS) said Erudio Student Loans was selected as the successful bidder through a "competitive process".

It said its offer was judged to represent the best value for money for the taxpayer and the price paid exceeded the estimated value to the Government of retaining the loans, which have a poor return rate.

Of the 250,000 loans sold, around 46% are earning below the repayment threshold, 14% of borrowers are still repaying and 40% are not repaying their loans in accordance with their terms.

BIS argued the private sector was thought best placed to collect the outstanding debt as it allowed the Student Loans Company (SLC) to concentrate on administering newer loans.

Universities Minister David Willetts said: "The sale of the remaining mortgage style student loan book represents good value for money, helping to reduce public sector net debt by £160m.

"The private sector is well placed to maximise returns from the book which has a deteriorating value.

"The sale will allow the Student Loans Company to focus on supplying loans to current students and collecting repayments on newer loans.

"Borrowers will remain protected and there will be no change to their terms and conditions, including the calculation of interest rates for loans."

The mortgage-style loans at the centre of the sale were the last of their kind on the Government's books.

Under the terms, borrowers are required to repay in fixed monthly instalments over a set period of five or seven years with interest charged at a rate equivalent to the Retail Prices Index (RPI).

But repayments can be deferred for a year at a time if a borrower's income is below a threshold of 85% of national average earnings - currently £28,775.

The coalition is drawing up plans to sell the entire outstanding student loan-book, which has a face value of roughly £40bn.

But such a move was criticised by the National Union of Students in the wake of today's sell-off.

Its president, Toni Pearce, said: "This announcement is extremely concerning and is one that will see the public subsidising a private company making a profit from public debt, which is incredibly problematic.

"The impact of this sale won't only affect borrowers, but will affect everybody.

"The simple fact is that having these loans on the public books would be better off for the Government in the long run. Selling off the loan book at a discount to secure a cash lump sum now doesn't make economic sense.

"The current student loans system is completely unsustainable. Forcing debt onto students as a way of funding universities is an experiment that has proven not to work and there needs to be some serious thought about moving the system away from this ridiculous model."

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RBS To Probe Claims It Drove Firms To Collapse

The Royal Bank of Scotland has hired a law firm to investigate allegations the bank deliberately drove small businesses to collapse for its own gain.

The claims are contained in a dossier, compiled by government adviser Lawrence Tomlinson, which has now been passed to City regulators by Business Secretary Vince Cable, as Sky News revealed at the weekend.

The report suggests RBS - the largest lender in the UK to small firms - drove businesses to collapse so it could buy back their assets at rock-bottom prices.

Chancellor George Osborne has described the allegations as "shocking", but small business campaigners say anecdotal evidence suggests the practice was widespread.

A spokeswoman for RBS - 80% owned by the taxpayer - confirmed that it had now hired law firm Clifford Chance to look into the claims.

Mr Cable referred the claims to City watchdogs

Mr Tomlinson, who has been compiling the report independently for the past six months, focuses allegations on the turnaround division at RBS - its Global Restructuring Group (GRG).

The division handles loans classed as being risky and is understood to have the power to scrap loan deals, impose inflated interest rates and charge hefty penalties.

But the report alleges that firms not necessarily in immediate financial distress are "engineered" into GRG, sometimes through small technical breaches of loan terms, such as late filing of minor financial information.

They are then hit with exorbitant rates and fees, which in some cases cause them to collapse, allowing RBS to buy their property and assets on the cheap for the benefit of its West Register property arm, according to Mr Tomlinson.

His report claims that fees charged by GRG can run into hundreds of thousands of pounds.

One business that submitted evidence to Mr Tomlinson said that it forked out £256,000 in fees alone while in GRG.

Another said that RBS made them pay an immediate sum of £40,000 to continue borrowing terms with the group.

Mr Tomlinson said he was calling for "immediate action to stop this unscrupulous treatment of businesses".

He told Sky News: The main conclusion you could come to out of this is RBS was doing this for their own gain ... they just ended up with properties quite cheap and they'd made a lot of fees and extra interest while the business was on its way down."

In response, RBS said it was "already committed" to an inquiry on how it treats small firms, following recommendations by Sir Andrew Large whose separate report released on Monday highlighted a potential conflict of interest in the bank's business lending activities.

Sir Andrew, the former deputy governor of the Bank of England, also found that RBS failed to understand even the basic needs of its small business customers.

An RBS spokesman responded to the Tomlinson report by saying that GRG's role was key to helping the bank face up to its commercial property "mistakes" made in the run-up to the financial crisis.

RBS is the largest lender in the UK to small firms

He said: "In the boom years leading up to the financial crisis, the over-heated property development market became a major threat to the UK economy.

"RBS did more than its fair share to fuel this and commercial property lending was one of the key drivers of our near collapse as valuations rapidly plummeted.

"GRG successfully turns around most of the businesses it works with, but in all cases is working with customers at a time of significant stress in their lives.

"Not all businesses that encounter serious financial trouble can be saved."

The report found a "disproportionately high" number of complaints against RBS, but also hinted at similar practices at other banks.

Fellow part-nationalised Lloyds Banking Group was also accused of concentrating on short-term gain at the expense of its business customers but the bank was angered by its inclusion in the dossier - suggesting there was no basis for such a claim.

Its statement said: "The specific practices discussed in the report are attributed to another bank and are not a reflection of Lloyds Banking Group's approach."

The report said Santander UK was among a few banks that were praised by small business customers for their treatment."

However, the campaign group Bully-Banks - which lobbies on behalf of small and medium-sized firms - claimed the behaviour of the wider banking sector was damaging the UK's economic recovery.

Its director, Jeremy Roe, told Sky News: "All of the major high street banks have major issues with the way they have conducted themselves.

"It is the bank's attitude to this sector that is a major cause of concern."

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Oil Prices Fall On Iran Nuclear Agreement

Oil prices fell and world shares were lifted after Iran's historic deal to curb its nuclear programme in return for an easing of sanctions.

The agreement - struck in Geneva over the weekend - helped Brent crude shed over $2 a barrel, its biggest drop for more than three weeks, to trade at around $108.70.

It was seen as positive in terms of not only easing immediate tensions between western powers and Iran but also eventually leading to more oil coming to market - helping to bring down the cost of petrol and other oil-based products.

However, the terms of the agreement mean Iran will not be allowed to increase oil sales for six months.

Despite fierce opposition to the deal from Israel, European shares extended last week's solid gains which took some back to multi-year highs - with Germany's DAX hitting a fresh record.

However, the rises were tempered by uncertainty over the region's economic outlook.

Analysts also said that trading volumes were likely to suffer further this week due to the US Thanksgiving holiday on Thursday, with the end of the month nearing.

In London, the FTSE 100 was trading positively - boosted by airline stocks.

But David Battersby, an investment manager at the stockbroking firm Redmayne Bentley, told Sky News he did not expect the fall in oil costs to be extended.

He said of the rise in airline shares: "Many of the contracts for the purchasing of oil will have been hedged one to two years out so it's more an expectation that things will get better on the geopolitical front that we have a better outlook for the companies rather than a short term lift in revenues for them."

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Government To Publish 50,000-Page HS2 Bill

The Government is to make its case for the £50bn high speed rail line amid claims it is not giving campaign groups long enough to make their objections to the plans.

The Hybrid Bill with its environmental statement – effectively the Government's planning application for the first phase of HS2 from London to Birmingham – will be published later today.

Those opposing the bill claim that at 49,910 pages, the eight-week consultation limit is not long enough for them to respond sufficiently.

Campaigners say they will have to read 891 pages a day simply to get through the documents and then respond to the points raised. It is the largest bill the UK has ever seen.

Woodland Trust: 21 ancient woodlands destroyed or badly damaged

Woodland Trust policy director Hilary Allison said: "We have recruited a new full time conservation expert whose sole priority over the coming weeks will be the dissection of these documents.

"The enormity of the task being asked of all who have something to contribute to this consultation is undeniable; given its immense length, we feel the timescale given to read and respond is unfair."

The trust has calculated that 21 ancient woodlands will be destroyed or significantly damaged by the first phase of the project.

As part of the bill, opponents will be given the chance to petition Parliament and have their case heard by a committee of MPs.

The first phase will run from London to Birmingham

The Government is expecting up to 25,000 objections, according to the Financial Times.

The publication of legislation for phase one marks a significant milestone in the project. The Government hopes it will be passed by 2015.

Once Royal Assent has been achieved, the Government will be able to start forcibly purchasing land needed to build the line.

It is expected that construction of the line from London to Birmingham will begin in 2016/2017 allowing it to open in 2026.

Transport Secretary Patrick McLoughlin said: "HS2 is the most ambitious and important infrastructure project in the UK since we built the M25 30 years ago, and in 30 more it will be just as integral a part of the nation's prosperity.

"The Bill will give us the powers we need to get the railway built and start delivering the extra room on our railways that this country so desperately needs. It will also start the process of rebalancing the economy and bringing our great cities closer together."

Phase two will run from Birmingham to Manchester and Leeds

A Department for Transport spokesman said the eight-week consultation period compared "very favourably to the 21 days and 28 days that are the minimum requirements for planning applications".

There have been significant objections that the rail line will have a devastating environmental impact on vast swathes of England's countryside.

In addition Labour has raised concerns over the increasing costs of the project.

The TSSA transport union has warned that high speed rail must not become a "rich man's toy" and that fares must be affordable.

The British Chambers of Commerce said HS2 had to be built "to avoid crippling delays, stifling carriage conditions and weekend chaos that conventional upgrades will bring" while the city councils of Manchester, Derby and Leeds are among the local authorities fully backing the project.

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Big Six Energy Firms Face New Profits Storm

The big six energy companies made £23 more in average profit from each UK household on aggregate last year - a rise of 75% on 2011 - and profits are still rising, according to the industry's regulator.

Ofgem said the latest average profit for all suppliers from the average dual fuel customer hit £53 in 2012 but was measured at double that on November 21 this year at £105.

The regulator announced the figure after releasing its analysis of the companies' accounts for 2012, which found average profit margins of 20% for energy generation.

The revelation prompted the watchdog to suggest it may insist on greater clarity in future to ensure that the profits are a fair reflection of investment in future power generation.

It found that the average profit margin for supply to household customers was 4.3% - in line with the claims made by the industry - as energy use rose and bills went up.

EDF is involved in the planned new Hinkley Point nuclear power station

But it calculated the profit margin made in generating energy in 2012 at 20% - slightly lower on the previous two years - but still high in the context of rising household bills.

The study sought to explain the disparity between supply margin and that for generation by pointing out that the generation part of a business needed significant sums of money over the long term to invest in building new power stations.

Ofgem said it was now considering whether companies needed to provide additional profit measures in generation which took account of capital investment to help ensure greater transparency.

The big six - SSE, E.ON, EDF Energy, Scottish Power, npower and Centrica's residential arm British Gas - have faced a backlash from politicians and consumer groups since the latest round of bill increases - up to 11% in some cases - was announced.

npower's Pembroke power station replaced old gas capacity

Of the firms, only E.ON is yet to confirm its increase ahead of the coming winter.

Ofgem's report follows analysis of statements the companies have had to submit annually since 2009 as part of efforts to subject the firms to greater financial scrutiny.

The statements showed that across all six suppliers, overall profits for energy supply and generation fell from £3.9bn in 2011 to £3.7bn in 2012.

However, profits in supply to households and businesses increased from £1.25bn in 2011 to £1.6bn.

Energy companies have insisted their profits are fair, reflect wholesale costs and the country's need to invest in future supply.

Amid the criticism of the industry over the latest rises to bills, the firms highlighted the growing cost to households from so-called green levies.

The environmental and social charges could be placed under general taxation by the Government in the coming Autumn Statement.

The firms have pledged to cut the rises to bills to match any reduction to the charges confirmed by the Chancellor on December 5.

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Aberdeen Shares Soar On Scottish Widows Deal

Aberdeen Asset Management shares have surged by nearly a sixth after it agreed a deal to buy its rival Scottish Widows Investment Partnership (SWIP) from the taxpayer-backed Lloyds Banking Group.

In midday trades Aberdeen shares were up 15% at 491p.

The deal, valued at up to £660m, would increase the value of assets managed by Aberdeen to around £350bn - transforming it into the largest listed fund manager in Europe.

Aberdeen's deal is mainly share-based, which gives Lloyds a stake of around 10%, valued at £560m.

It will also pay up to £100m as "deferred consideration payable in cash" in five years.

Sky News City Editor Mark Kleinman first reported the impending sale last month.

The announcement comes as Aberdeen released its full-year results to September 30.

It revealed an underlying pre-tax profit of £482m, up 39% on the previous year.

The deal means Lloyds will enter into a long-term management relationship with Aberdeen.

The sale of SWIP does not include the core asset of Scottish Widows plc, which includes the group's life, pension and investment business.

Lloyds is 33% owned by taxpayers and has a refocused strategic goal of building UK business and retail banking while selling off non-core assets.

Aberdeen's chief executive Martin Gilbert called the transaction was "significant".

He said: "It strengthens our investment capabilities and adds new distribution deals."

Lloyds boss Antonio Horta-Osorio added: "I'm very pleased today to be announcing this strategic partnership with Aberdeen Asset Management.

"This is a good deal for them, and a good deal for Lloyds Banking Group."

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Tycoon To Bankroll UKIP Election Campaign

One of Britain's wealthiest men has vowed to do "whatever it takes" to bring UKIP European election victory next year in a blow to the Conservative Party.

Paul Sykes, a Eurosceptic tycoon who has been estimated to be worth £650m, was formerly a Tory backer but is promising to bankroll Nigel Farage's UKIP campaign.

Mr Sykes, a veteran of the keep the pound campaign 15 years ago, reportedly donated £1.5m to UKIP's 2004 European election campaign.

His intervention will increase fears among the Conservatives that the rise of UKIP will prevent them from wining a majority at the next General Election.

Mr Skyes' backing in 2004 helped UKIP quadruple its number of seats from three to 12.

UKIP leader Nigel Farage has welcomed Mr Sykes' support

In a statement Mr Skyes said: "I believe we have one last chance to stop the gradual erosion of our national independence. And that chance comes with the European elections.

"If, as I hope and believe, Ukip score a stunning national victory, then the leaders of the other main parties will have no choice but to abandon their slavish support for the EU.

"Nigel Farage and Ukip are the last best hope for Britain. I am prepared to do whatever it takes to propel them to victory next year."

Mr Farage said: "Paul Sykes has a long record of defending British democracy.

"His involvement in this campaign is a significant boost for UKIP and will help us to cause our intended earthquake in British politics in the European Elections next May."

Mr Sykes was a strong supporter and backer of the Conservatives under Margaret Thatcher in the 1980s but broke with the party in 1991 over John Major's stance on Europe.

UKIP returned a strong performance in 2004

He went on to selectively fund individual eurosceptic candidates in the 1997 General Election.

Mr Skyes said that he hoped UKIP election success would force the other parties to listen to calls for an early referendum on Britain's membership of the EU.

He said: "So far they have stubbornly refused to listen. Maybe a comprehensive thrashing at the polls will bring them to their senses. Far better would be to accelerate the whole process and have that in/out referendum on the day of the general election in 2015."

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PlayStation 4 Sells A Million On Launch Day

The PlayStation 4 console sold more than a million units on its first day, according to Sony.

The new machine went on sale in the US and Canada on Friday, and is being  released in Europe and Latin America on November 29.

Andrew House, head of Sony Computer Entertainment, called the response "phenomenal" and said sales were still going strong.

"We are extremely grateful for the passion of PlayStation fans and thank them for their continued support," he said.

Sony has said it expects to shift five million PS4 consoles by April.

Sky News' review of the console found it delivers on the hardware front and praised its sleek design but, like a number of other testers, thought the games available at launch were "fairly limp".

There were also a few teething troubles on launch day, with the PlayStation Network online portal crashing under the strain of people logging in.

Microsoft is gearing up for the debut of its own next-generation console on Friday and will be hoping to hold on to existing fans as well as tempt any "floating gamers".

The Xbox One is £80 more than the PS4 at £429, but comes bundled with the new version of the Kinect movement sensor.

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Emirates Airlines In Boeing And Airbus Spree

Emirates Airlines has gone on a 200-plane spending spree, as its home base of Dubai reiterates plans to become the world's biggest aircraft hub.

The airline has agreed to buy 150 Boeing 777 mini jumbos and confirmed purchase of 50 Airbus A380 superjumbos.

The order from Boeing is valued at $55.6bn (£34.5bn), excluding engines, while the purchase from its European rival Airbus amounts to $20bn (£12.4bn) at list price.

Emirates' appetite for plane purchases will not cease, the airline's president Tim Clark said.

"I don't think Emirates is going to stop with this order," Mr Clark, speaking at the Dubai air show, said.

"The intention of the government of Dubai is to fill the new airfield here on this site," at Al-Maktoum International Airport which opened for passenger operations last month.

In total Gulf airlines, led by Dubai's Emirates and Abu Dhabi's Etihad, struck plane deals worth almost $150bn (£93bn) on Sunday.

The buying spree underscored a shift in power in the aviation industry, as oil-rich, fast-growing economies of the Gulf take advantage of their strategic position between East and West to draw more travellers from hubs in Europe and Asia.

An Emirates Airbus A380 lands on the runway at Manchester Airport

But it comes at a price - both Airbus and Boeing signed deals to buy some $5bn of parts and materials from Abu Dhabi, in a sign Gulf states are seeking a reciprocal boost to their economies from the huge orders they have placed with the plane firms.

Dubai has in the past announced ambitions to turn Al-Maktoum into the world's largest aviation hub once completed, with five runways and a capacity to handle 160 million passengers.

"They're hoping to get that in the state of readiness for 2020-2022 and the scale of that will allow us to grow our fleet further," Mr Clark said.

"When we have more firm lines on that, we will be revisiting our fleet plans and routes structures."

Mr Clark said the commitment to buy 150 Boeing aircraft would be finalised before the end of 2013.

Emirates was in discussions for four to five years with Boeing over the new airliner that is scheduled to enter service around 2020.

"In the last months we've got it where we wanted it to be," said Mr Clark. "Basically the terms are agreed with Boeing."

The biennial Dubai air show got off to a bright start Sunday, with orders from the big three Gulf carriers - Emirates, Etihad Airways and Qatar Airways - for Boeing and Airbus planes hitting $141.5bn (£87.5bn), excluding the price of engines.

Emirates flew its first routes out of Dubai with just two aircraft in October 1985, using a leased Boeing 737 and an Airbus 300 B4.

It now has more than 200 aircraft, excluding the newly announced purchases, and flies to 70 countries.

The airline accounts for around 40% of all flights at Dubai International Airport.

:: The air show was hit by a Gulf sandstorm on Sunday, cutting visibility dramatically.

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Bidders Eye Lloyds-Owned Housebuilder Avant

By Mark Kleinman, City Editor

A group of private equity firms are circling a major housebuilding firm owned by Lloyds Banking Group, as investors seek to exploit the benefits of the Government's Help to Buy scheme and the wider availability of mortgage finance.

Sky News has learnt that Avant Homes appointed investment bankers from Rothschild in recent days to oversee an auction of the company that will begin during the course of next year.

Lloyds, which owns a 100% economic interest in Avant, is supportive of the decision to launch a sale of the company, which is likely to generate a return for it of more than £100m. Last year, the bank refinanced £455m of its borrowing facilities, giving the company until next year to repay its loans.

Private equity groups including Electra Partners are already understood to be drawing up plans to bid for Avant, whose flagship developments include Quartermile luxury residential properties in Edinburgh, insiders said on Monday.

Avant was previously known as Gladedale, and has a significant presence in both the residential and commercial property sectors.

Like many other housebuilders, it is understood to have seen a sharp upturn in business because of the broader availability of mortgage finance and the advent of the Government's Help To Buy initiative, which has sparked concerns in some quarters about a potential housing market bubble.

Based in Dunfermline, Avant expanded rapidly under its founder Remo Dipre to become one of the UK's 10 largest housebuilders in 2006. Mr Dipre quit the company in 2009 amid a debt-for-equity swap which involved Lloyds writing off approximately £500m of outstanding loans.

Through its rescue of HBOS - a deal that led to it becoming 43%-owned by UK taxpayers - Lloyds ended up as the owner of a string of housebuilders which over-expanded before the financial crisis.

Many have since been restructured or sold, including Countryside Properties, McCarthy & Stone and Cala Homes.

Cala, also headquartered in Scotland, was bought by a joint venture between Legal & General, the insurer, and Patron Capital, the private equity group, in a £210m deal.

Countryside sold a large stake to Oaktree Capital, another investment firm, in February, while Crest Nicholson, a larger rival, floated on the London stock exchange earlier this year.

The flurry of sales involving housebuilding groups backed by Lloyds underlines the extent to which HBOS became embroiled in excessive lending to the sector during the boom which preceded the financial crisis, a trend criticised in a report this year by the Parliamentary Commission on Banking Standards.

Assuming Lloyds successfully sells its stake in Gladedale, it would be the last remaining equity stake in a major housebuilder to be removed from the bank's books.

Avant declined to comment.

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Burton's Biscuits Bought By Canadian Fund

The Ontario Teachers' Pension Plan has agreed to buy the British maker of Wagon Wheels and Jammie Dodgers.

Burton's Biscuits is the UK's second-largest biscuits manufacturer, employing 2,000 people around the UK with annual sales of £340m.

The deal was first reported by Sky News City Editor Mark Kleinman on Saturday.

The pension fund has not revealed the value of the deal to buy the biscuit maker.

Burton's is also the name behind Cadbury Fingers and Maryland Cookies.

Based in Hertfordshire, Burton's traces its roots back to the mid-1800s when it was founded by George Burton.

It employs more than 2,200 people around the UK in manufacturing facilities in Llantarnam, Edinburgh and Blackpool, a chocolate refinery in Moreton and a central distribution hub in Liverpool.

Ontario Teachers has become a voracious acquirer of British companies in recent years, taking over National Lottery operator Camelot and nursery chain Busy Bees.

Burton's is one of a sizeable number of mid-sized British companies which has been through several phases of private equity ownership.

In 2009, Apollo and the Canadian bank CIBC seized control of the company after Duke Street Capital, its previous owner, was forced to surrender control to the biscuit-maker's lenders.

Another private equity group, HM Capital, had bought the company in 2000 from Associated British Foods, owner of the Primark retail chain.

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