Business News

A summary of some of the most interesting Business stories around the web just now.

STAY IN THE EU, NORWAY WARNS UK

Norway's foreign minister has urged the UK to stay in the European Union, rather than leave. Norway is not an EU member but has access to the single market. UK Eurosceptics use it as a model for how the UK could relate to the EU from outside.

But Foreign Minister Espen Eide, who is pro-EU said Oslo had "limited scope for influence".

"We are not at the table when decisions are made," he told Radio 4's The World This Weekend. Norway has twice rejected the chance to join the EU in referendums in 1972 and 1994.

http://www.bbc.co.uk/news/uk-20830201

RESEARCH IN MOTION PROFITS DOWN

Blackberry-maker Research in Motion (RIM) has seen its profits plunge, and reported the first fall in quarterly subscription numbers in the company's history. The Canadian firm made a net profit of $9m (£5.5m) in the three months to 1 December, down from $265m a year ago.

During the quarter, its global subscriber base fell to 79 million from 80 million. RIM hopes to revive its fortunes with a new operating system. The Blackberry 10 system will be introduced from 30 January on a new range of handsets.

http://www.bbc.co.uk/news/business-20806486

JAPAN RECEIVE ECONOMIC BOOST

The Bank of Japan (BOJ) has boosted its key stimulus measure in an attempt to revive growth in the world's third-largest economy. It has extended its asset purchase programme, aimed at keeping borrowing costs down, by 10 trillion yen ($119bn; £73bn).

The central bank also left interest rates unchanged between zero and 0.1%. The BOJ has been facing increasing pressure to take steps to help revive the Japanese economy. Japan has been battling years of sluggish growth.

http://www.bbc.co.uk/news/business-20794186

Source: BBC Business News

Business News

Some Business news from the last few days.

ENGLISH CHAMPIONS CITY HALVE LOSSES

Premier League champions Manchester City have announced its financial losses for 2011-12 have halved from 2010-11. City recorded a pre-tax loss of £93.4m, down from £189.6m from last year.

Sales and revenues went up 51% to £231.1m, £22m of that from City’s first appearance in the Champions League. Other incomes came from their deal with Etihad Airways which doubled to a whopping £97m.

UEFA, under the guidance of Michel Platini are bringing in Financial Fair Play rules which means that over a period of 3 years a club must break even. This comes into effect starting 2013-14.

EU LINKS GO DEEPER

BRUSSELS: Phased integration of the EU has been agreed in principle today, which goes much further than the adoption of the Euro or supervision by a European Central Bank. EU President Herman Van Rompuy believes a deal will be agreed next year with particular emphasis on solving the problem of failed banking institutions.

In addition to banking reforms unemployment and poor economic growth are also high on the agenda. The deal to make the European Central Bank the main regulator for EU finances may help aid poor performing banks in the eurozone and possibly help fund the bailout of the banks which need it most. Spain, among others, is desperate for a bailout to keep its economy moving.

The UK will not be part of the new banking union, and along with Denmark still retains her opt out of the Euro. Prime Minister David Cameron has been criticised that this may lead to a two tier EU, which he has denied, saying that the UK is still “at the heart of decision making” in Europe.

UK BIGGEST INTERNET SHOPPERS

UK internet shoppers spend an average of £1,083 according to Ofcom. This is the most amount of any developed nation. Apparently most of our internet shopping is done via mobile phones, laptops and tablet PCs.

The survey also shows that the UK also downloads more data from the net to mobile devices than any other major developed nation.

BARCODE INVENTOR DIES AT GRAND OLD AGE OF 91

American inventor Norman Joseph Woodland, has died at his New Jersey home at the age of 91. Mr Woodland is the inventor of the barcode. He and his university colleague, Bernard Silver developed and created the familiar “thick-and-thin-line” barcode system in the 1940s.

The Barcode system was granted a patented in America as far back as 1952. The patent was later sold for a measly $15,000 (£9,300). However, the impact on modern life is not to be sniffed at. It is estimated that the barcode is scanned more than five billion times every day.

Sources: BBC Business News, Fortune

Would you pay $55 for bottled water?

This sounds crazy but it is apparently true!

Read more here:

http://money.howstuffworks.com/bling-water.htm

Water is one of the most abundant natural resources we have, and yet we are all paying money to drink it. In certain areas tap water is actually more healthy than bottled spring water.

Water has been in the headlines earlier today with the EU advice that drinking water is not a way to prevent dehydration. Though I am pretty sure there has to be a mix up in the presentation of the findings.

Read here for the Daily Express

http://www.express.co.uk/posts/view/284426/EU-says-water-is-not-healthy

or perhaps a more balanced view from The Guardian?

http://www.guardian.co.uk/science/the-lay-scientist/2011/nov/18/1

You can make your mind up.

Greece in Turmoil

Greece is one of the PIGS (Portugal, Italy, Greece and Spain) the Souther European nations that traditionally have not always been economically strong.

Greece has found itself in major trouble... with massive national debt. The figure quoted recently was 12.7%, which is FOUR times more than the Euro nations allow! Greek spending has been wild, whereas tax coming into the Greek coffers has been dwindling.

Greece as a member of the Euro currency and the Single Monetary Policy are looking to nations such as France and Germany to bail them out. But they do not seem so keen.

Other commentators are wondering whether this crisis could see the eventual collapse or devaluing of the Euro itself.

The Greek Government is under intense pressure from the rest of the EU and naturally those EU members who are in the Euro.

They have come up with some ideas to help stem the rising debt:

1. Cut budget deficit below EU ceiling of 3% of GDP by 2012, from 12.7% in 2009
2. Freeze public sector salaries and cut bonuses
3. Replace only one in five of people leaving civil service
4. Raise average retirement age by two years to 63, by 2015
5. Raise taxes on fuel, tobacco, alcohol and property (Source: BBC Business News)

Perhaps even more draconian measures will be needed to save the Greek economy and indeed the Euro.