Manchester United Sign £750m Adidas Deal

Manchester United have agreed a record-breaking £750m kit sponsorship deal wth Adidas after Nike walked away from contract extension talks.

The 10-year agreement, starting at the beginning of the 2015/16 season, dwarfs the £150m deal over five years recently reached between Arsenal and Puma, which was in itself a UK record.

It was made as United prepared to begin the new Premier League campaign without the prospect of lucrative Champions League football following a disastrous 2013/14 season under David Moyes - now replaced as manager by Louis van Gaal, who led the Netherlands to third-place at the World Cup. 

The eagerness of Adidas to make United's kit was seen as evidence of the durability of United's brand value despite its worst-ever Premier League campaign which resulted in a seventh-place finish in May.

The sums agreed by Adidas - described as a "minimum guarantee" by United - more than double the value of Nike's current contract, which has one more season to run.

Nike supplies United's kit for the looming season

The deal, worth £75m a year from 2015, was announced in a short statement after Nike ruled itself out on cost grounds, saying a trebling in the cost of its existing 13-year equipment supply contract was not good value.

Simon Leaf, a sports lawyer for Berwin Leighton Paisner, told Sky News: "This is yet another example of the power and global appeal of the English Premier League.

"At a time of apparent weakness, where Manchester United last season finished over 20 points behind the winners Manchester City, failing to qualify for Europe, Adidas has been prepared to break all previous records to secure the deal.

"Nevertheless, from a legal perspective, we would expect that the amounts quoted would only ever become payable if Manchester United return to winning ways and are able to add to the trophies won under Sir Alex Ferguson.

"This deal will be celebrated in many boardrooms of the top teams around Europe as a new benchmark".

Nike recently unveiled shirts for 2014/15 featuring a gold Chevrolet logo, marking the start of the American car-maker's £326m seven-year sponsorship deal with the team.

In a statement issued last week , Nike said: "Any partnership with a club or federation has to be mutually beneficial and the terms that were on offer for a renewed contract did not represent good value for Nike's shareholders".

Adidas last held the United contract between 1980 and 1992.

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Samsung Supplier Accused Of Using Child Labour

Samsung has suspended business with a Chinese supplier accused of using child workers.

Five underage staff were found in the Shinyang Electronic factory in Dongguan, according to a report by rights group China Labour Watch (CLW).

The report was published last week, and was followed the next day by a New York Times interview with three 14 and 15-year-old girls it said worked at the factory.

Samsung initially dismissed the report as impossible to confirm, but now says it has found evidence to support the accusation.

In a statement, the South Korean company said: "Samsung decided to temporarily suspend business with the factory in question as it found evidence of suspected child labour at the work site.

"If the investigations conclude that the supplier indeed hired children illegally, Samsung will permanently halt business with the supplier."

Samsung said it appeared that the workers had been hired on June 29, four days after a labour audit ended.

It is the first time Samsung has reported finding evidence of underage workers at its suppliers.

It has previously promised to eliminate such practices by the end of 2012, in response to earlier CLW allegations.

A spokesman for the firm said: "We deeply care about the health and safety of all our employees and employees at our suppliers, and strictly maintain a zero tolerance policy on child labour.

"We are urgently looking into the latest allegations and will take appropriate measures in accordance with our policies to prevent any cases of child labour in our suppliers."

Apple's latest annual audit, meanwhile, reported 23 instances of child labour.

It ordered the companies in question to compensate the children and pay for their education.

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£1.1bn Pledged To Fight 'Modern Threats'

Top Four Threats To Britain's National Security

Updated: 12:30pm UK, Monday 14 July 2014

Prime Minister David Cameron has said investment to bolster Britain's ability to combat the threat of global terrorism and cyber criminals is a "national necessity" for the Armed Forces to deal with new "unseen enemies".

He has pledged a £1.1bn package of investment in "vital" military programmes to meet new threats posed by global terrorism and cyber criminals.

According to British intelligence agencies MI5 and MI6, terrorism, espionage and the proliferation of weapons of mass destruction (WMD) pose the biggest ongoing threat to national security:

Terrorism

The biggest national security threat Britain faces - and the most significant threat to the UK and its interests overseas comes from groups such as al Qaeda.

The greatest threat comes from its leadership and affiliate groups:

:: North Africa (Sahel region): Al Qaeda in the Islamic Maghreb (AQM) which aims to overthrow the Algerian government and declare an Islamic state.

:: East Africa (Somalia): Al Shabaab was formed to fight for a strict interpretation of Sharia law in Somalia but in recent years has broadened its aims to include international jihad operations. Insurgents have claimed recent attacks in Kenya and Djibouti, and at home in Somalia.

:: Yemen: Al Qaeda in the Arabian Peninsula (AQAP), formed in 2009 following a merger between Yemeni and Saudi branches, has attempted to appeal to Yemen's various anti-government groups. The US regards AQAP as al Qaeda's most dangerous franchise.

:: Iraq: Hundreds of Britons could be fighting with the Islamic State in Iraq and Syria (ISIS), the extremist group which has taken over large parts of Iraq after splitting from al Qaeda earlier this year.

:: Syria: Members of al Qaeda's Syrian affiliate al Nusrah Front are now said to have recently sworn allegiance to ISIS.

A recent notable concern involves AQAP and al Nusra Front. It is believed bomb-makers from both al Qaeda affiliates are working together to create non-metallic bombs that could evade metal detectors. This has led to security being tightened at UK airports.

Espionage

Spies are no longer just targeting political and military intelligence, but in today's technology-driven world, defence, IT, communications, intelligence services scientific research, as well as other government-related organisations are all vulnerable to espionage.

Cyber attacks

While it does not name all the countries, at least 20 foreign intelligence services are said to be actively operating against UK interests, including Russia and China, according to MI5.

Foreign states, terrorists, criminals, individuals and 'hactivist' groups are equipped to steal, alter or destroy computer networks, information systems and infrastructures by using malicious software, posing a grave threat to the UK's economic stability and national security.

The proliferation of weapons of mass destruction (WMD)

Several countries are actively pursuing WMD - nuclear, chemical and biological - programmes and have sought to "illicitly obtain equipment and expertise from the UK, according to MI5.

The regimes perceived as a threat are those which have not signed up to the Non-Proliferation Treaty, those who pursue clandestine weapons programmes and those who act in contravention of United Nations Resolutions to limit the build up of nuclear weapons.

Iran, North Korea and Syria are among the countries of concern. 

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Iran Jails Facebook Users For 127 Years

Eight Facebook activists in Iran been jailed for a total of 127 years for making posts critical of the ruling regime.

Iran's IRNA news agency said they had been convicted for spreading propaganda, trying to undermine national security and insulting the country's leaders.

The eight people are reported to be administrators of pages on the social network, but the exact pages and the identity of those jailed has not been revealed.

The court handed down sentences between 11 and 21 years, reported IRNA, with the jail terms passed in April after several court appearances. They are understood to have appealed.

Twitter is banned - but Foreign Minister Javad Zarif (R) has an account

Facebook, YouTube and Twitter are banned in Iran despite top officials such as Foreign Minister Javad Zarif having accounts.

However, tech-savvy citizens often use proxy servers and other workarounds to get past the controls.

Authorities clamped down on social media in the wake of 2009 street protests against the re-election of former president Mahmoud Ahmadinejad. Sites like Twitter were accused of being instrumental in organising the unrest.

In May, an Iranian court also ordered Facebook founder Mark Zuckerberg to appear to answer complaints the Facebook-owned applications Instagram and WhatsApp violate individuals' privacy.

President Rouhani, who took power last year, had promised greater freedom on social and media issues but traditionalists in key institutions are thought to have blocked reform.

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Energy Complaints Soar To All-Time High

Ofgem's Energy Market Probe 'Will Restore Trust'

Updated: 1:22pm UK, Thursday 26 June 2014

Ofgem has announced an investigation in the energy market, to ensure there are no barriers to effective competition.

The regulator said it has referred the energy market to a probe by the Competition and Markets Authority (CMA).

It said the investigation is the best way to ensure that consumers are receiving the best quality, service and price availability.

The so-called big six energy providers have come under increasing scrutiny over profits, rising prices and how their wholesale and retail firms are structured.

The six big firms control around 95% of the UK retail market.

Ofgem said it would continue to protect consumers amid planned major changes to the energy market.

It said the CMA would begin its investigation immediately and a final report would likely be published before the end of next year.

Ofgem chief executive Dermot Nolan said: "Now is the right time to refer the energy market to the CMA for the benefit of consumers.

"There is near-unanimous support for a referral and the CMA investigation offers an important opportunity to clear the air.

This will help rebuild consumer trust and confidence in the energy market as well as provide the certainty investors have called for.

"The energy market is also going to change rapidly over the next few years with the roll-out of smart meters, the Government's electricity market reforms, and closer integration with European energy markets."

The energy watchdog said it has made an assessment, along with the Office for Fair Trading and the CMA, and found that competition is not working in consumers' best interests.

The regulator now expects the CMA  to consider action against the sector to improve competition and protect consumers.

Ofgem will also use its powers to address any "structural or behavioural issues" that may undermine competition.

After the announcement was made SSE chief executive Alistair Phillips-Davies said: "This reference will be an important opportunity to demonstrate the competitiveness of the energy market, address any issues of public concern and deliver good outcomes for consumers and a stable framework for investors.

"Throughout the reference SSE has an appetite for reform that is in the interests of customers and competition generally, as demonstrated by our price freeze until 2016."

Centrica CEO Sam Laidlaw, of the parent company of British Gas, said: "We want an energy market that is trusted by customers, and we believe that an in-depth and thorough review by an independent and respected authority can help to achieve this. So Centrica welcomes the investigation."

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Gadgets Blamed As Nickel Allergies Soar

Allergy-inducing nickel in the casing of one of Apple's iPad models caused an 11-year-old boy to break out in an itchy body rash.

It is the latest example of people suffering reactions to the personal electronic devices which they use everyday.

Recent reports in medical journals show a rise in the number of instances of nickel allergies - partly due to better diagnosis, and partly due to how much we rely on gadgets containing nickel.

The unnamed boy was treated in a San Diego hospital, according to a report in the journal Pediatrics by dermatologist Sharon Jacob - after developing a scaly rash on his body.

While not life-threatening, the rashes can require steroid and antibiotic treatment if the skin eruptions become infected.

Doctors traced the cause of the outbreak to his iPad, after detecting a chemical compound found in nickel in the Apple device's outer coating.

The device was bought in 2010, meaning it was the original iPad model.

Apple has declined to say which of its other devices contain the material.

Dr Jacob said national data show that 25% of children who get skin tests for allergies have nickel allergies, compared to 17% a decade ago.

Common products such as eyeglass frames, zips and jewellery can also contain nickel.

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Under-Fire Wonga Lures Ex-RSA Boss To Board

By Mark Kleinman, City Editor

Wonga, the under-fire payday lender which is facing a possible police investigation into its business practices, is turning to a member of the City establishment in a bid to transform its reputation.

The company announced on Monday that Andy Haste, a former boss of the insurer RSA, is to become its new chairman just days before the City watchdog unveils a formal cap on the level of interest that can be charged by providers of fast credit.

Speaking to Sky News, Mr Haste said his urgent priority was to rebuild customers' trust by making Wonga "more transparent".

He will conduct an immediate review of the company's customer base and its product offering "to ensure that the group is lending only to customers who can reasonably afford to repay their loans," the company said.

Mr Haste will be paid £500,000 a year during an initial phase while Wonga seeks a permanent chief executive, after which his annual salary will be reduced to £300,000.

"I want to ensure that the business operates responsibly while providing an effective and reliable service for our customers. I have a clear mandate from the shareholders in Wonga to lead that process, both in the UK and across our international operations," he said.

Mr Haste's appointment comes less than a month after Wonga was ordered to pay £2.6m by the Financial Conduct Authority to compensate customers who were sent letters from fake law firms demanding that they repay their loans.

The disclosure that Wonga had created fictitious law firms sparked outrage and prompted demands for a full-blown criminal inquiry.

The battered image of the sector was reinforced on Monday when the FCA said that Dollar, which trades in the UK as The Money Shop, had agreed to refund more than £700,000 of interest and default charges to 6,247 customers who had received loans which exceeded Dollar's own lending criteria.

Mr Haste said he had undertaken extensive due diligence on the company before deciding to accept the role, but said he could not rule out the emergence of further reputational scandals.

"I have asked all the questions I can think of asking, and I believe I've been made aware of everything," he said.

"Time will tell whether that's the case."

He said he had accepted the role because his 30-year career in finance had convince him that there was a "need and demand" for short-term credit providers.

"The sector and the company need real change if they are to have a sustainable future," he told Sky News.

Mr Haste stepped down as RSA's chairman in 2011, and now serves as deputy chairman of the Lloyd's of London insurance market and a director of ITV, the commercial broadcaster. He was also a candidate to chair TSB, the bank which was recently spun out of Lloyds Banking Group.

The FCA will announce plans for a cap on the cost of payday loans later this week, although sources said reports that the ceiling would be £30 for each £100 borrowed were not accurate.

Last week, it emerged that the Church of England's pension fund had disposed of an indirect holding in Wonga, the existence of which had caused embarrassment to Justin Welby, the Archbishop of Canterbury.

Mr Haste replaces Errol Damelin, Wonga's founder, who recently stepped down following disagreement with the company's shareholders about its future.

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Shire 'Welcomes £31.3bn Bid From AbbVie'

The board of London-listed pharmaceutical firm Shire has confirmed it has entered "detailed" discussions with US firm AbbVie after receiving an improved takeover offer of £31.3bn.

Shire said it was ready to recommend a deal which would value it at £53.20 per share - a rise of more than £2 per share on its last bid less than a week ago.

Under the terms of the cash and stock offer AbbVie, which wants to buy Shire to cut its tax bill and diversify its product line-up, would own 75% of the new entity - giving Shire investors a greater stake than the 24% previously proposed.

Dublin-based Shire, which makes drugs to treat rare diseases, had rejected four earlier offers and asked AbbVie to sweeten its bid in order to recommend an agreement to its shareholders.

Discussions are now taking place in an effort to finalise a deal ahead of a Friday deadline while Shire's share price hit a new record high on news of the apparently imminent deal.

AbbVie's pursuit of Shire comes just weeks after AstraZeneca fought off takeover interest worth £69bn from US drugs giant Pfizer.

It would give AbbVie an opportunity to reduce its tax bill by shifting its tax base from the US to the UK, where corporate tax rates are significantly lower.

The company is also under pressure to secure new products as it currently gets nearly 60% of its revenue from rheumatoid arthritis drug Humira, the world's top-selling medicine, which loses US patent protection in late 2016.

Professor John Lyon of Warwick Business School said of the likely deal: "Shire may be headquartered in Dublin but it is managed from Boston where most of its medicines are sold.

"It is well known for targeting rare diseases with its medicines where accelerated drug development pathways are sometimes available once an orphan drug status is agreed with the regulatory bodies.

"This is a similar situation to the Pfizer/AstraZeneca attempted transaction, but in this case, the price looks good and the  diversification makes sense where global reach is required in the pharma market.

"Maybe this will be the norm for the future - the key being to obtain a fair price and to develop a portfolio of products that fit well together".

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GSK Bribery Probe: UK Investigator Charged

By Mark Stone, China Correspondent in Beijing

Authorities in China have issued formal charges against a British man and his Chinese-American wife who are linked to the GlaxoSmithKline bribery scandal.

Peter Humphrey and his wife Yu Yingzeng have been charged with illegally obtaining and selling private information according to China's state news agency, Xinhua.

Mr Humphrey, who is 58, and his wife Ms Yu, 61, were working as consultants for GSK when they were arrested in August last year.

"Prosecutors have found that the couple illegally trafficked a huge amount of personal information on Chinese citizens to seek profits," the Xinhua news agency said.

"The personal information traded by the couple included household registration details, background of family members, real estate, vehicles, call log and exit-entry records. The couple also obtained the information by means such as secret photography, infiltration or tailing after someone."

Mr Humphrey also appeared on CCTV, China's state TV channel, wearing an orange prison waistcoat.

Speaking in English, he said: "I deeply regret, having offended any Chinese law, it certainly was not my intention to violate Chinese law, or to cause any harm. If we have broken Chinese law, then I feel very ashamed about that, and I'm very regretful about that, and I apologise".

An intimate video of GSK's Mark Reilly was sent to company execs

Mr Humphrey and his wife represent one element in an extraordinary case involving alleged bribery, blackmail, a sex tape and industrial espionage.

In March last year, the British-based CEO of GSK, Andrew Witty, and a number of the company's other top executives reportedly received an anonymous email with an attachment. The email contained allegations that GSK's China division had been bribing doctors and hospitals to buy GSK products.

The attachment was an intimate video-recording of the China boss of GSK, Mark Reilly, with his Chinese girlfriend.

Peter Humphrey and his wife, who run a well-established company called ChinaWhys, were reportedly employed by GSK to establish who had recorded and sent the tape.

ChinaWhys, which was established in 2004, describes itself as an "international business risk advisory firm with eyes in China".

According to its website, it "specialises in discreet risk mitigation solutions, consulting and investigation services to corporate clients in matters of high sensitivity".

Any investigation conducted by Mr Humphrey could have required him to access the private information of Chinese citizens, an act which is considered illegal in China.

According to Mr Humphrey's son, who is based in the UK, his father's health has deteriorated significantly since he was detained.

The trial of he and his wife is set for August 7 in Shanghai. It is expected to be closed with no access given to the media, diplomats or even the couple's family.

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Citigroup To Pay $7bn Sub-Prime Mortgage Fine

Citigroup has confirmed it will pay $7bn (£4.1bn) to settle a US Justice Department investigation into sub-prime mortgages.

The agreement was announced following weeks of talks between officials and the New York-based investment bank over the size of the penalty for selling mortgage-backed securities made up from sub-prime mortgages - loans blamed for triggering the financial crisis.

Attorney General Eric Holder said at a news conference on Monday morning: "Citibank's misconduct was egregious."

As part of the deal, Citigroup will make a $4bn civil monetary payment to the Justice Department and another $500m in compensatory payments to state attorney's general and the Federal Deposit Insurance Corporation (FPDIC).

The bank will also provide $2.5bn for consumer relief, which will include financing for construction and preservation of affordable housing, as well as principal reduction and forbearance for residential loans.

Bank chief executive Michael Corbat said: "The comprehensive settlement announced today with the US Department of Justice, state attorneys general, and the FDIC resolves all pending civil investigations related to our legacy RMBS (residential mortgage-backed securities) and CDO (collateralized debt obligations) underwriting, structuring and issuance activities.

"We also have now resolved substantially all of our legacy RMBS and CDO litigation," he said.

The settlement is the latest in a series of deals between banks and regulators to avert costly trials in the United States.

Citi and other banks were found to have downplayed the risks of sub-prime mortgages when selling them to mutual funds, investment trusts, pensions and others.

The securities, which contained so-called residential mortgage-backed securities and collateralised debt obligations, plunged in value when the housing market collapsed in 2006 and 2007.

The Citigroup settlement comes months after a similar - but much larger - $13bn deal between the Justice Department and JPMorgan Chase & Co.

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