Fracking Must Be Accepted By Britain, Says PM

David Cameron says the country should accept fracking, claiming the controversial method of extracting gas will create jobs and cheap energy.

The Prime Minister took to Twitter on Monday morning to say: "I believe the whole country should get behind fracking - providing cheap energy and jobs across the UK."

He said the process would not damage the countryside and cause only "very minor change to the landscape".

Writing in The Daily Telegraph, Mr Cameron also said: "I want all parts of our nation to share in the benefits: north or south, Conservative or Labour."

Mr Cameron has written in support of the controversial fracking method

He added: "If neighbourhoods can really see the benefits - and get proper reassurance about the environment - then I don't see why fracking shouldn't get real public support."

Asked if Mr Cameron would support fracking in his Witney constituency in Oxfordshire, a No 10 spokesman said that he saw "huge potential benefits" from shale gas extraction although it was important that local people were properly consulted.

"Ultimately, that view is as relevant in his constituency as anywhere else in the country," the spokesman said.

Mr Cameron's comments come after former Government adviser Lord Howell of Guildford, the father-in-law of Chancellor George Osborne, suggested fracking should be confined to "desolate" areas of northern England.

Fracking - the process of extracting gas by the hydraulic fracturing of rock using high pressure liquid - has transformed the energy market in the US.

It has cut costs for households and businesses, and ministers hope for a similar effect in the UK.

The PM said it has "real potential to drive energy bills down" and insisted the Government was not "turning our back" on a low carbon generation but needed to secure a mix of energy sources.

Anti-fracking protester in Balcombe, West Sussex

In an effort to persuade communities of the benefits of fracking, firms will offer £100,000 of benefits for each exploratory well.

Mr Cameron added: "Companies have agreed to pay £100,000 to every community situated near an exploratory well ... If shale gas is then extracted, 1% - perhaps as much as £10m - will go straight back to residents."

He sought to play down fears about the environmental dangers posed by fracking, claiming there was "no evidence" that it would cause contamination of water supplies or other damage if properly regulated.

Last week Mr Cameron said Britain would be "making a big mistake" if it did not seriously consider fracking and the prospect of cheaper gas prices.

The village of Balcombe in West Sussex has become the focal point of anti-fracking protests as energy company Cuadrilla attempts to drill there.

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Banks Cut 20,000 Branches After 2008 Crash

Banks hit by the global financial crisis have cut 20,000 branches across the whole European Union, according to new research.

New figures showed banks closed 5,500 branches, or 2.5% of the total, in 2012.

The EU now has 20,000 fewer outlets than it had when the financial industry was plunged into crisis in 2008.

Last year's cuts come after 7,200 branches were axed in 2011, according to European Central Bank (ECB) statistics analysed by Reuters.

Banks across Europe have been closing branches in a bid to trim operating costs and improve their battered earnings.

Branches account for around 60% of retail banking costs, including property and refurbishment spending as well as staff pay, Deutsche Bank researchers have estimated.

Consumer take-up of online and telephone banking services has accelerated the trend to shut down banks in the community.

The data show EU banks cut 8% of branches in aggregate in the four years to the end of 2012, leaving 218,687 branches, or one for every 2,300 people.

Last year's sharpest cuts were largely in states hardest hit by financial problems in recent years.

Crisis-stricken Greece saw one of the biggest contractions in 2012, shedding 5.7% of its outlets, as mergers of local banks led to 219 branch closures.

The trend is expected to continue into 2013 as Piraeus shuts some of the 312 branches it snapped up from stricken Cypriot lenders in March.

Spain, where massive loan losses have put banks under fierce pressure to cut costs, lost 4.9%, or 1,963, of its branches in 2012.

Ireland's branch network contracted by 3.3% and is expected to shrink again in 2013, while Italy's network was 3.1% smaller by the end of the year.

Branch numbers were on the rise in some eastern European countries including Poland (up 4%), the Czech Republic (up 2.3%) and Lithuania (up 1.8%).

In Britain, the ECB data showed the number of branches remained little changed at 11,870.

:: The ECB gathers data on lenders' branch networks across the EU, and the data reviewed included the 27 EU member states at the end of 2012.

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Bryant Attacks Tesco Over 'Unfair' Migrant Use

Changes To Chris Bryant's Speech

Updated: 1:49pm UK, Monday 12 August 2013

By Jon Craig, Chief Political Correspondent

The before and after sections on Tesco and Next in Chris Bryant's immigration speech are barely recognisable.

The speech delivered by the Shadow Immigration Minister was very different from extracts released in advance at the weekend.

In the Q&A after his speech, he denied he had been nobbled or spoken personally to the two companies.

But, after the angry denials by Tesco and Next at the weekend, by Monday morning the passages had been substantially rewritten and the tone had been dramatically transformed from hostile to complimentary.

:: ON TESCO:

Before:

"Take the case of Tesco, who recently decided to move their distribution centre in Kent.

"The new centre is larger and employs more people, but the staff at original site, most of them British, were told that they could only move to the new centre if they took a cut in pay. The result? A large percentage of the staff at the new centre are from Eastern bloc.

"Then there are the recruitment agencies that specialise in recruiting staff from elsewhere in the EU."

After:

"Take Tesco. A good employer and an important source of jobs in Britain. They take on young people, operate apprenticeships and training schemes and often recruit unemployed or disabled staff through job centres.

"Yet when a distribution centre was moved to a new location existing staff said they would have lost out by transferring and the result was a higher proportion of staff from A8 countries taking up the jobs.

"Tesco are clear they have tried to recruit locally. And I hope they can provide more reassurance for their existing staff. But the fact that staff are raising concern shows how sensitive the issue has become."

Comparison:

After Tesco said they had no distribution centre in Kent, that reference has gone. So too has the allegation about the cut in pay. Instead, Tesco is "a good employer" that is clear it has "tried to recruit locally".

ON NEXT:

Before:

"Look at Next PLC, who last year brought 500 Polish workers to work in their South Elmsall warehouse for their summer sale and another 300 this summer. They were recruited in Poland and charged £50 to find them accommodation.

"The advantage to Next? They get to avoid Agency Workers Regulations which apply after a candidate has been employed for over 12 weeks, so Polish temps end up considerably cheaper than the local workforce which includes many former Next employees.

"The recruitment agency Next used, Flame, has its website http://www.flamejobs.pl entirely in Polish. It's not illegal. But is it fair? Does it inspire long-term commitment to the business?

"In mentioning this I'm not looking for special favours for anyone. I'm just looking for fairness."

After:

"Next PLC recruited extra temporary staff for their South Elmsall warehouse for the summer sale - last year and this year.

"South Elmsall is in a region with 9% unemployment and 23.8% youth unemployment.

"Yet several hundred people were recruited directly from Poland. The recruitment agency Next used, Flame, has its website http://www.flamejobs.pl entirely in Polish.

"Now of course short term contracts and work are sometimes necessary in order to satisfy seasonal spikes in demand.

"But when agencies bring such a large number of workers of a specific nationality at a time when there are one million young unemployed in Britain it is right to ask why that is happening.

"It's not illegal for agencies to target foreign workers. But is it fair for them to be so exclusive? Is it fair on migrant workers who can find themselves tied into agency accommodation deals? And is it good practice for the long term health of the economy when so many local young people need experience and training?

"Next also say they have tried to recruit locally."

Comparison:

The allegation that Next "get to avoid Agency Workers Regulations" has gone. So too has the claim that "Polish temps end up considerably cheaper than the local workforce".

Mr Bryant did, however, make new allegations in his speech against the tourism industry:

"Tourism is one of our largest industries and yet I have heard horror tales of hotel management deliberately cutting hours of young British workers and adding hours to migrant workers who do not complain about deductions from earnings that almost certainly take people below the minimum wage," he said.

But he didn't name names.

More anecdotal accusations, I suspect.

Mr Bryant obviously wanted to avoid another bruising clash with big business.

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Facebook Boss Sheryl Sandberg's £59m Share Sale

Facebook executive Sheryl Sandberg has sold £59m ($91m) of her shares in the company, according to filings in the US.

US securities filings show the social networking giant's chief operating officer sold 2.37m shares at an average price of £25 ($38) a share.

The shares were sold at the level of Facebook's May 2012 initial public offering (IPO) using a pre-arranged trading plan.

Facebook shares initially plunged after the IPO went ahead in a blaze of publicity, dropping to £11.48 ($17.55) in September 2012.

The price recovered and surpassed its initial value at the end of July, following the announcement of impressive £217m ($336m) profits for the second quarter of 2013.

Facebook co-founder Mark Zuckerberg recruited Ms Sandberg from Google

The performance of Facebook's mobile advertising business was credited with driving the boost in profits and subsequent market optimism.

Ms Sandberg, 43, has sold Facebook shares several times since the company went public, cashing in some £32m ($50m) in 2012 alone.

She still holds more than 25 million shares - worth around £646m ($1bn) - according to the latest filing.

Facebook boss Mark Zuckerburg poached Ms Sandberg from her job as Google's vice president of global online sales and operations in 2008.

The Harvard Business School graduate's book of advice for women in the workplace - Lean In - has spent 21 weeks on the New York Times Best Sellers List.

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First-Time Home Buying At Post-2007 Peak

Lending to first-time buyers has hit its highest quarterly total since 2007, according to newly released figures.

The Council of Mortgage Lenders (CML) said 68,200 purchases were made by new homeowners in the second quarter of 2013.

This increase, along with growth in lending to home movers, has resulted in a jump in total house purchase lending.

The CML said that remortgage lending dipped back in June compared to May, although continues to trend above levels earlier this year.

"Our data shows that 25,300 loans were advanced to first-time buyers in June, a 30% increase on the 19,400 loans advanced in June last year," it said.

"Following the strength in first-time buyer activity in May and June, quarterly lending to first-time buyers was at its highest since 2007."

First-time buyers continued to increase the amount they borrowed - with an average loan size of £117,000 in June, up from £112,500 in May.

As a result there has been a stronger growth in the value of loans advanced to first-time buyers which totaled £3.5bn - an increase of  9% in value compared to May and 40% on June last year.

The CML said: "This is likely to be associated with the growth in house prices in recent months - in June 34% bought a home less than £125k, down from 37% in May.

"While first-time buyers borrowed more in June, an increase in income, along with falling interest rates mean that there has been no deterioration in the affordability of these loans.

According to the CML, for the last two months typical first-time buyers mortgage payments consumed 19.3% of first-time buyers' income

First-time buyers accounted for 46% of all house purchase loans in June, which was up from 44% in May.

The average rate since 2007 of first-time buyers in the property market previously sat at 38%.

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Boris Bike Strike: Serco Workers Walk Out

Workers on London's bicycle hire scheme are "solidly supporting" a 48-hour strike over pay and conditions.

Members of the Rail Maritime and Transport (RMT) union employed by Serco on the so-called Boris Bikes have mounted picket lines.

The strike action finishes on Tuesday night although an overtime ban will remain in force.

It comes as the Government announced it will invest more than £100m in making England's roads more cycle friendly.

RMT general secretary Bob Crow said: "With David Cameron announcing investment in cycling, he could start by telling his old school chum Boris Johnson to end the exploitation of his bike scheme workforce.

"This group of workers are rock-solid this morning in their fight for workplace justice and it's about time Boris Johnson got involved in resolving this dispute, rather than treating his bikes as a vanity project."

The union claimed the bike hire scheme was being disrupted by the strike.

But Serco said the service was running as normal.

Serco's contract director for Barclays Cycle Hire, Andrew Hill, said: "Around 70 on-street staff keep the Barclays Cycle Hire scheme moving each day and I am pleased to confirm that despite the strike action, we have been running a full service for customers today. "

Mr Hill also said he was disappointed by the strike action.

"I am still deeply disappointed the RMT have instigated this wholly unnecessary strike given that we have already reached an agreement on the issues the RMT have raised around pay and working pattern changes," he said.

"These were achieved through a comprehensive, thorough and fair consultation with staff that resulted in a pay rise of 2%, which is above the national average and included other improvements to their terms and conditions."

The hire bicycles were dubbed Boris Bikes after being launched by London Mayor Boris Johnson in 2010.

The Barclays cycle routes run from outer London to the centre and are designed to provide "safer, faster and more direct journeys into the city", according to TfL.

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Bitcoin Issues Warning Over Android Flaw

Cyber currency Bitcoin has warned that a security flaw is leaving users of its Android "wallets" vulnerable to theft.

Bitcoin Foundation said the operating system problem affected wallets where users generate the private security keys on their devices.

It said Bitcoin Wallet, blockchain.infor, BitcoinSpinner and Mycelium Wallet were some of the account types at risk.

Bitcoin said: "We recently learned that a component of Android responsible for generating secure random numbers contains critical weaknesses, that render all Android wallets generated to date vulnerable to theft.

"Because the problem lies with Android itself, this problem will affect you if you have a wallet generated by any Android app."

Software developers are working on a release which must be used to update users' apps.

The security alert came as banking regulators in the US told companies it was investigating the operating principles of Bitcoin.

Unlike traditional currencies, Bitcoin is not based in any sovereign territory.

New York's Department of Financial Services has informed more than 20 companies connected to Bitcoin that it wants information on consumer protection and money laundering defences.

The state's officials are worried that popular virtual currencies are able to operate outside of conventional fund-transfer regulations.

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BlackBerry: Possible Sale To Secure Future

Struggling smartphone maker BlackBerry has confirmed it will consider entering joint ventures, partnerships or even a full sale of the company.

The Canadian firm said its board has formed a special committee to explore "strategic alternatives" in hopes of boosting sales of its BlackBerry 10 smartphone.

BlackBerry has been hammered by increased competition from Apple and its Android-based rivals.

In January, BlackBerry unveiled new phones running a revamped operating system called BlackBerry 10 designed to better compete, but its market share continues to lag.

The company's shares rose 4.5% on the Nasdaq in early Monday trading.

BlackBerry also announced that board member Prem Watsa, the company's largest investor, resigned from the board "due to potential conflicts that may arise during the process".

Mr Watsa has said he is a "big supporter" of current CEO Thorsten Heins, and he would be an obvious bidder for BlackBerry.

He has said he believes BlackBerry can turn itself around, but that it might take three to five years.

The BlackBerry, pioneered in 1999, had been the dominant smartphone for business people and other consumers before the iPhone debuted in 2007.

The company faced numerous delays modernising its operating system with the BlackBerry 10.

During that time, it had to cut more than 5,000 jobs, and shareholder wealth declined by more than $70bn (£43bn).

BlackBerry said there is no guarantee of a transaction and declined to comment further.

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Prudential Sees Profit Spike On Baby Boomers

The Prudential has seen a 22% rise in its first-half operating profit, boosted by baby boomers in the United States and newcomers to the insurance market in Asia.

The insurance giant said operating profit came in at £1.415bn for the six months to June 30.

Buoyant investment returns and the longer-term trends of an ageing population needing more retirement income have supported the businesses.

Many investors have also favoured Prudential because of its diversification beyond European shores.

In the US, the Prudential said it continued to gain from the ageing baby-boomer generation.

Prudential chief executive Tidjane Thiam said: "We are well positioned to benefit from the transition into retirement of the 'baby-boomer' generation."

Its profit rose by almost a third after a rise in interest rates in the second quarter boosted its variable annuity business.

Meanwhile in Asia, where Prudential focuses on selling products to a growing middle class in South East Asia, operating profit jumped 18%.

Prudential said it saw record sales in seven of its local business units, with China up 42% and Philippines and Korea up 38%.

Funds under management at its M&G arm rose to £234.3bn, up from £203.7bn a year earlier.

Mr Thiam added: "These results provide further evidence of our ability to deliver both earnings growth and cash.

"We are on track to achieve the remaining objectives of doubling Asia's 2009 new business profit by 2013 and delivering over £350m of net remittances from the UK by the end of the year."

In the UK, growth was more subdued, with operating profit up 1% at £341m.

Shares in Prudential, which have gained 47% over the past 12 months, were up 3.5% in late Monday trading.

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Thames Water Asks For Price Hike To Bills

The UK's biggest water company has asked the industry regulator to increase its charges by almost £30 for each household.

Thames Water submitted the application to Ofwat for an interim adjustment to prices over the current five-year price period.

The company said: "If approved by Ofwat, the net impact would result in a single, one-off additional cost of about £29 per household in 2014/15, equivalent to nearly £6 per year over the five year period."

The firm, which is owned by a global consortium led by Australia's Macquarie group, said it has spent £273m on acquiring land needed for the construction of the Thames Tideway Tunnel.

It also said bad debt as a result of the economic slowdown has prompted the application.

Thames Water said other factors were higher Environment Agency charges and the costs of operating and maintaining an additional 24,000 miles of sewers that were transferred to it by the Government in October 2011.

It said: "But the company is keen to avoid such a spike in bills for its customers and is recommending to Ofwat that the additional cost is spread over more than one year."

The company said its average bill this year is £354 but added that including the hike it would still keep the cost to customers among the lowest in the country.

Thames Water Chief Financial Officer Stuart Siddall for said: "Ofwat resets price limits for each water company every five years, most recently in 2009, based on the best information available at the time.

"Then, during the five-year period, almost all changes to costs and revenues, whether upwards or downwards, are up to us to manage.

"However, at the beginning of a five-year period there are always a small number of potentially significant costs and revenues that can be clearly identified but not quantified.

"These are set out at the time of the price review and either the company or Ofwat can seek an adjustment, upwards or downwards, once the actual costs and revenues are known. That is what we are doing now."

Mr Siddall added: "These significant costs could not be quantified at the beginning of the current pricing period, and their scale is unique to Thames Water's operations, project commitments and catchment area.

"Increasing prices is never good news, which is why the company and its shareholders are encouraging Ofwat to adapt its regulatory mechanism to allow the impact of the price increase to be spread over more than one year to avoid a spike in bills for our customers."

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