FTSE Slips To One-Year Low On Growth Fears

The FTSE has closed at its lowest level in nearly a year with a crisis of confidence over the global recovery.

It came as there were warnings about a triple-dip recession in the Eurozone at the IMF's annual conference in Washington.

Data from Europe's biggest economy, Germany, points towards a serious slowdown, with exports falling 5.8% in August - the biggest monthly fall in five years.

The FTSE 100 Index ended the week 91.9 points lower at 6340.

It leaves London's top 100 listed companies worth £140bn less than they were just over a month ago, and at their lowest ebb since last October.

Video: The Week's Big Business Stories

Worries about the global economy, particularly in Europe and Asia, have been accompanied by a wave of selling in energy and commodity stocks due to a sharp fall in the price of oil.

The Ukraine crisis and spread of the deadly ebola virus have also added to fears.

Wall Street saw its worst week since May 2012, with the Dow Jones industrial average down to 16,544.

Germany's Dax was down 2%, extending its losses for the week to 4%, and France's Cac 40 fell by more than 1% on Friday.

On Wednesday, the IMF downgraded global growth for this year and next, and lowered its assessments of Germany, France and Italy.

However, it kept its UK growth estimate for this year static at 2.7%.

That prompted Chancellor George Osborne to warn: "I'd be the first to say we're at a critical moment because the Eurozone risks slipping back into recession and crisis and that is already having an impact on the UK."

Around 50% of UK exports go to the EU.

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Universal To Build $3.3bn Beijing Theme Park

Universal Studios has confirmed a $3.3bn (£2bn) deal to build its first theme park in China.

The announcement was made at a news conference in Beijing following 13 years of negotiations with Chinese authorities.

Universal gave no opening date for the 300-acre park in the east of China's capital but state-run media suggested 2019 had been agreed.

The park will be jointly owned by a consortium of state-owned companies known as Beijing Shouhuan and Universal Parks and Resorts.

Steven Spielberg will assist the park's designers

While no details were given on specific rides or attractions, reporters were told they would include a significant celebration of Chinese culture.

The park was expected to cash in on the popularity in China of franchises including Harry Potter and Transformers.

Harry Potter proved so popular in the country that the release of the final film was delayed by authorities for fear it would overshadow the ruling Communist Party's 90th anniversary.

The fourth Transformers movie, Age Of Extinction, was the highest-grossing film in the country. 

Chairman and chief executive of Universal Parks and Resorts, Tom Williams, told reporters: "We will work together to create experiences based on China's best-loved stories and centuries-long rich cultural heritage.

The Harry Potter movies have been among the most popular in China

"It's pretty clear, at least to me, that the prospects for success are extremely good and it will be amongst the largest (parks) that we have ever done, as it surely needs to be, in order to accommodate very substantial attendance."

State media reported that the park had been given an option to expand to 1,000 acres in later years - a move that would easily make it the biggest of the existing Universal parks in Los Angeles, Orlando, Japan and Singapore.

It was confirmed that director Steven Spielberg would be involved in the park's design as part of his role as a Universal consultant.

China is currently experiencing a boom in theme park construction - with almost 60 set to be completed by 2020 according to a recent industry report.

Disney and DreamWorks are due to open parks in Shanghai as studios rush to cash in on the growing Chinese entertainment market.

Research has suggested that China will have the capacity by 2020 to receive as many theme park visitors to its own shores as that currently enjoyed by the United States.

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FTSE 100 Directors' Earnings Up 21% In A Year

A steep rise in long-term incentives meant directors at FTSE 100 companies earned 21% more in the last financial year, a report has found.

The study by employment research specialists Incomes Data Services (IDS) suggests average annual earnings for directors was £2.43m, with chief executives picking up £3.34m.

IDS said earnings pegged to long-term incentive plans, which include share options, rose by 44% and bonuses were up 14% in 2013/14.

Basic salaries gained only 2.5% over the period.

The figures highlight attempts, in the wake of the financial crisis, to end the potential for rewarding failure as share options are linked to long-term performance targets.

But they still contrast sharply with levels of pay across the UK's workforce, with official statistics showing a fall of 1.6% over the same 12 month period - with annual pay growth, including bonuses, most recently being measured at just 0.6%.

The report was released as hundreds of thousands of health workers went on strike in protest at the Government's decision not to give them a 1% pay rise.

Research by Sky News found the total pay package of the best paid CEO in the FTSE 100 index last year, Sir Martin Sorrell of WPP, equals the combined salaries of 1,403 newly qualified NHS midwives.

Editor of the IDS pay report, Steve Tatton, said: "FTSE 100 directors have seen their total earnings jump sharply in the last year, fuelled by a rise in the value of share-based awards.

"Bonus payments have also recovered strongly following a downturn last year.

"The pattern of pay growth highlights the complex make up of directors' remuneration.

"Salary rises may be modest but this can be more than made up for by the receipt of incentive payments.

"When such incentives pay out, they can pay out substantial sums, giving a significant boost to directors' earnings."

Chief executives at media, marketing and telecoms companies earned most in 2013/14, IDS said, with an average £6.98m.

CEOs at retail and distribution companies were found to be the lowest in the rankings with a median of £1.31m.

The report also showed the gap between chief executive pay and the rest of the workforce had widened significantly.  

Heads of FTSE 100 companies earned 120 times more than full-time employees on average, against a 47% difference in 2000. 

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Fears UK Will Be Hit By New Euro Recession

The euro crisis is back. But this time it's different.

That's the general gist of the discussions at the International Monetary Fund meetings in Washington this week.

For this time around the meetings - a key opportunity for policymakers to catch up on the state of the global economy - have coincided with a fresh bout of fear over the euro area.

This isn't the same kind of crisis the single currency faced a couple of years ago, when there were genuine worries that it might break up.

Instead, the concern is that it simply hasn't recovered fully from the recessions of recent years. Worse: it may soon slump back into another recession.

Leaders are looking to the European Central Bank to take action

Why? In large part because of long-term problems in the continent: weak growth, poor demographics and unreformed regulatory systems.

The problem is that this time around there is even less clarity about what to do about it.

Video: IMF's Delicate Dancing Act

The French are determined to borrow and spend more to try to boost growth.

So are the Italians. The problem is that doing so will mean they will break the supposedly iron-clad fiscal rules laid down by eurocrats in the teeth of the crisis.

The Germans are determined to keep control of their public finances, but are being urged by most of their neighbours to spend a bit more and boost demand. Though no-one is courageous enough to tell them to their face.

That's the real reason why the IMF has spent most of the past week telling European countries to spend more on infrastructure.

You only have to watch our interview with IMF deputy managing director David Lipton to see how delicate a dancing act the Fund is having to perform here.

Meanwhile everyone, including George Osborne, has been looking towards the European Central Bank, indicating that they might be wise to consider going all in and doing full-scale quantitative easing.

Except that the ECB and central banking insiders insist they have already done enough - and that it's up to the politicians to do more.

Video: Economic Issues Linked To Conflict

In other words, it's all a bit of a mess. Europe is sliding towards a possible triple-dip recession and no-one seems to be able to decide what to do about it.

Now, to be fair, this episode doesn't have the same level of fear as the 2008 financial crisis or the subsequent euro malaise.

There are no rioters on the streets in Greece and Madrid.

But in another sense this is a far deeper problem: another recession in Europe could be contagious, knocking a serious chunk off Britain's growth prospects.

There is no fix - and no easy answer.

This comes as the world faces a whole barrage of other issues: ebola, which World Bank president Jim Yong Kim has focused on this week; the rise of IS, Islamic State, which IMF Middle East head Masood Ahmed warns has economic as well as social root causes.

All of which helps explain why markets are so jittery at the moment.

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Osborne Puts Stake In Eurostar Up For Sale

Chancellor George Osborne has said the Government is seeking bidders for its 40% stake in the Eurostar rail service to help reduce Britain's public sector debt.

Potential buyers have until the end of the month to make an expression of interest.

The Government said it expected to reach "definitive agreements" in the first quarter of 2015.

The sale forms part of the Government's plan to sell £20bn of corporate and financial assets by 2020.

Mr Osborne said: "I am determined that we go on making the decisions to reform the British economy and tackle our debts, so we will proceed with the potential sale of the UK's shareholding in Eurostar today.

Video: Eurostar: The Opposition Responds

"Ensuring that we can deliver the best quality infrastructure for Britain and the best value for money for the taxpayer are key parts of our long-term economic plan.

"As part of our aim to achieve £20bn from asset sales by 2020, the sale proceeds would make an important contribution to the task of reducing the public sector debt."

Labour has warned it could follow the Royal Mail privatisation as a "rushed and undervalued" sell-off.

Mary Creagh, shadow transport secretary, said: "Eurostar is a national strategic asset that is set to grow and to return increased profits to the UK taxpayer with new routes to Geneva, Lyon, Marseille and Amsterdam.

"After the staggering incompetence of the Royal Mail sale fiasco, which lost taxpayers £1bn, people will worry that this is yet another rushed and undervalued sell-off.

"City adviser UBS made millions from Royal Mail and is advising on the Eurostar sale. Lord Myners is still conducting his review into government privatisations after Royal Mail, and ministers should await his report before any sale begins.

Video: Treasury Sec: Why Sell Eurostar?

"The National Audit Office should urgently conduct a value-for-money inquiry before this sale proceeds. We must ensure that taxpayers are not ripped off again by bungling ministers and poor financial advice from the City."

Rail, Maritime and Transport union general secretary Mick Cash said: "This is a gross act of betrayal of the British people by a right-wing government hell bent on selling off the family silver regardless of the real cost."

Since services began in 1994, Eurostar has carried over 145 million passengers, with over 10 million in 2013 alone, while sustaining traffic growth every year for the last decade.

The Government put the stake up for sale last December as part of its plan to privatise state assets.

French state train company SNCF owns 55% of Eurostar and Belgium's SNCB holds 5%.

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Shark Proof Google Cable To Link US And Brazil

Google has given the go ahead for a 6,560 mile (10,557km) undersea cable to link the US and Brazil.

The fibre-optic cable will have the capacity to move an incredible 64 terabits of data every second, equivalent to 85,000 feature films and a measure of bandwidth unthinkable before the 21st Century.

Brazil has the fifth highest number of internet users in the world and has become one of the fastest growing regions for internet penetration.

It is hoped the new pipe will help bridge the vast socio-economic digital divide in the country

Google: 'As more people access the internet, more capacity is needed'

The Brazilian government has been fighting this divide with digital-inclusion programmes for regions that have suffered from a lack of access to the internet and to devices.

And access to the internet by students is particularly poor at 60%.

In 2005 it invested $400m (£248m) in social-inclusion programmes, equipment and infrastructure to give poorer populations better access to technology.

It is hoped Google's cable will provide Brazil with the bandwidth to manage the increase in users.

The fragile glass fibres will be housed in a protective casing protected in a polyurethane jacket and a protective Kevlar-type vest to stop hungry sharks biting it in two.

Undersea cables carry high-voltage power to the signal repeaters and it is thought the emission of electricity and magnetic waves attract sharks who mistake the currents for distressed prey.

"As more people get access to the Internet, more capacity to the infrastructure that keeps the Internet running is needed, so that everyone can have a fast, safe and useful online experience," said Google's Latin America chief Cristian Ramos.

The consortium running the project includes Uruguay government-owned telco Antel, African operator Angola Cables and Brazil's Algar Telecom and the cable is expected to carry its first data packet in 2016.

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F1 Owner CVC Eyes Bid For Blatter Sports Firm

By Mark Kleinman, City Editor

The largest shareholder in Formula One motor racing is among a pack of suitors circling a sports rights firm headed by the nephew of Sepp Blatter, the controversial head of football's world governing body.

Sky News has learned that CVC Capital Partners is among a group of potential buyers of Swiss-based Infront Sports & Media, whose clients include FIFA and dozens of other owners of lucrative sports franchises around the world.

Infront is headed by Philippe Blatter, and has been majority-owned by Bridgepoint, a London-based private equity firm, since 2011.

Sources said that Lazard, the investment bank, had asked bidders to submit initial offers during the course of last week, with CVC and CAA, the talent management company which also has a presence in the sports arena, among those interested.

A number of other buyout firms including Blackstone and Bain Capital are understood to have decided not to bid.

It was unclear on Monday whether IMG, which is backed by US-based investment firm SilverLake Partners, made an offer.

CVC, which owns more than 30% of F1's parent company, was one of the bidders for IMG last year.

Among Infront's most important contracts is the right to sell World Cup television rights in a number of Asian countries for the 2018 and 2022 tournaments, the latter of which has been riddled with controversy because of FIFA's decision to award the tournament to the Gulf state of Qatar.

Among Infront's strategic initiatives since Bridgepoint's takeover was a joint venture to launch in Qatar struck towards the end of last year.

Infront is also the media adviser to Serie A, Italian football's top division, the French team entry to the America's Cup and the majority of the Winter Olympics sports federations.

In a letter to clients quoted by Reuters last month, Mr Blatter said:

"Bridgepoint and the Infront Management... commenced a process to review different options for the company to find the appropriate support for its next phase of growth."

"Encouragingly, a substantial number of organisations have already actively expressed their interest in supporting the company, which makes us consider the overall current market situation as favourable for this review."

Sources said that Bridgepoint and its advisers were looking for offers of around £850m, or roughly double what it paid to acquire Infront three years ago.

Since then, the value of many sports media rights has continued to rise significantly, although the Infront chief executive and his uncle, who has run FIFA since 1998, have faced criticism over Infront's work on FIFA properties.

Bridgepoint and CVC declined to comment.

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Road Hauliers In Christmas Deliveries Warning

By Lisa Dowd, Midlands Correspondent

Hauliers are warning that a national shortage of lorry drivers could hit deliveries to shops and stores in the run-up to Christmas.

They say the cost of obtaining a licence and strict EU rules are putting off many would-be drivers.

"What we're concerned about is that as things start to ramp up around Christmas... there just simply won't be enough drivers available to make all the deliveries that are needed," said Natalie Chapman of the Freight Transport Association.

According to the organisation, 40% of lorry drivers are 50 or over, while just 1% are under the age of 25.

Chris Stevenson, 24, from Bloxwich, told Sky News he is desperate to become a lorry driver.

Chris Stevenson has spent a small fortune trying to get an HGV licence

"It's the freedom of the job really. Seeing a bit of the country, maybe seeing a bit of the world. Doing continental driving, you can get around a bit - (it) beats being stuck in one place all the while."

However, three unsuccessful attempts to get his HGV licence have cost him £2,500 so far.

John Heighway, transport manager at Devaneys Haulage, says such costs and the image of the profession have resulted in too few young people wanting to join it.

"It's quite desperate really. We could have enough work for an extra 10 vehicles.

Hauliers fear the shops might not be so full this Christmas

"But we just don't have the drivers to cover it, so we just have to turn work down which is something we don't like doing."

That is great news for agency staff like Martins Svarcs from Latvia, who is working for the West Bromwich-based company.

"I'm working every day, five days a week, nine hours driving a day, so I'm happy."

But even temporary workers cannot fill all the vacant posts.

Martins Svarcs from Latvia has all the work he can handle

Hauliers say the problem is being made worse by EU rules which require experienced drivers to undertake further costly training - or face a large fine.

Roy Reynolds, 68, from Wolverhampton had been driving for 41 years and like many others decided to quit.

"Now regulations are coming in where you've got to go back to the classroom.

"I don't feel that I need to do that with the experience that I've gained over a number of years. It just seems pointless, so I decided to retire."

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Vintage Apple-1 Computer To Be Auctioned

The world's first Apple computer, widely acknowledged as heralding the personal computer revolution, is to be sold at auction by Bonhams, New York.

The Apple-1 was one of 50 machines hand-built for the ByteShop by Apple pioneer Steve Wozniak in the summer of 1976 in the garage of Apple co-founder Steve Jobs.

The model for sale was secured from the family of John Anderson, an Apple Mac enthusiast who acquired it in 1980 and kept it in perfect condition in a glass cabinet from 1989.

Iconic: the Apple-1 has just 4kb memory which is tiny by today's standards

Less than five Apple-1 operating units have come up for public sale in the past four years and all have had damage, repairs or modifications from their original shipping condition.

John Anderson's machine was tested in August by Apple-1 expert Corey Cohen, who said, "This is one of the best examples of a working early Apple-1 board that I have seen.

"The condition is unlike the other Apple-1 computers that have come up for sale before. This one has had no modifications ever performed or removed; even the screws on the power regulators aren't heat cycled."

Christina Geiger, director of fine books and manuscripts at Bonhams said: "It is a great privilege to be selling this Apple-1 at auction. It has exceptional provenance and condition.

The machine was built in 1976 by Apple co-founder Steve Wozniak

"Moreover, it will be the first Apple-1 to be publicly exhibited for auction in the San Francisco Bay Area. It is very gratifying to think of this computer returning to within 40 miles of its birthplace."

In addition to the beautifully intact motherboard, the Apple-1 comes with an original keyboard, power supply and Sanyo monitor. The machine has just 4kb of memory, which is tiny by today's standard.

The lot, which will be offered as part of Bonham's History of Science auction on 22 October, also includes a video recording of Steve Wozniak's keynote speech at the 1980 'Applevention'.

The computer is expected to fetch between $300,000 to $500,000.

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Amazon To Create 1,000 UK Warehouse Jobs

Amazon has announced plans to hire a further 1,000 staff for its UK warehouse operations.

The online retailer, which just a month ago said it was expanding its UK office operations, said the separate announcement would boost staffing levels across its eight existing distribution sites.

It said the new roles would be full-time and successful applicants would start on an average £7.39 per hour and earn up to £8.90 per hour after two years.

The company, which has battled industrial unrest in a number of countries over pay and conditions of service at its so-called fulfilment centres, said it had "continued to implement new programmes and ways of working for the benefit of its entire workforce".

Amazon said staff now worked four 10-hour shifts per week "meaning they benefit from three days off every week".

The retailer pointed out that the change meant "associates" would save both time and money through fewer visits to work.

John Tagawa, director of UK operations at Amazon, said: "Over the past two years, we have added well in excess of 2,000 new employees to our workforce and we are delighted to be able to add a further 1,000 to that number over the coming months.

"We have continued to focus day in, day out on providing the very best shopping experience for our customers and as we see greater demand, we are able to rapidly grow our talented team across the UK."

The US-based firm said the jobs would be created across its service centres at Doncaster, Dunfermline, Gourock, Hemel Hempstead, Milton Keynes, Peterborough, Rugeley and Swansea Bay.

Amazon became the latest multinational last week to be investigated by the European Commission over its tax affairs.

It will examine a 2003 agreement between Luxembourg and the retailer because it said most of Amazon's European profits are recorded in Luxembourg but are not taxed in the state.

Amazon said it had received "no special tax treatment from Luxembourg - we are subject to the same tax laws as other companies operating here", it added.

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