22-year-old girl bought Estate of $88 million

Former Citigroup chairman Sandy Weill listed his 6,744-sq-ft apartment at 15 Central Park West for an astonishing $88 million in November, promising to donate the proceeds of the sale to charity.

Now comes news that Ekaterina Rybolovleva, the 22-year-old daughter of Russian billionaire Dmitriy Rybolovlev, is buying the condominium. Rybolovleva is currently studying at an undisclosed U.S. university and plans to stay in the apartment when visiting New York. According to a source familiar with the sale, she paid the full asking price of $88 million, setting a record for highest individual transaction in New York City history.

Here is the official statement from her representatives:

A company associated with Ekaterina Rybolovleva, daughter of a well-known businessman Dmitriy Rybolovlev, has signed a contract to purchase an apartment at 15 Central Park West, New York. The apartment is a condominium currently owned by the Sanford Weill Family.

Ms. Rybolovleva is currently studying at a US university. She plans to stay in the apartment when visiting New York. Ms. Rybolovleva was born in Russia, is a resident of Monaco and has resided in Monaco and Switzerland for the past 15 years.”

The apartment, in one of the toniest post-war buildings in Manhattan, has 10 rooms including 4 bedrooms, a wraparound terrace of more than 2,000 sq. feet, 4 bedrooms and 2 wood burning fireplaces.

[See also: Homes With Kitchens Worthy of Professional Chefs]

“This sale is an outlier. It works out to be about $13,000 per sq. foot, the highest on record, for anything, that has ever occurred,” says Jonathan Miller, chief executive of real estate appraiser Miller Samuel, “What is ironic is that when Sandy Weill bought it for less than half this amount, he paid the highest price per sq foot to date in that building, around, $6,400 per sq. foot. He is again setting a record.”

The previous New York City record had been set back before the market crash when investor Christopher Flowers paid $53 million for a townhouse at 4 east 75th Street. He resold the property on August 15 for just over $36 million.

There were two other very notable sales in the city this year. Russian composer Igor Krutoy paid a record $48 million for a condo at the Plaza in March, and a townhouse at 16 East 69th Street sold for $48 million in July.

Rybolovleva is the second daughter of a billionaire to make huge real estate news this year. Back in July, heiress Petra Ecclestone, daughter of UK Formula One billionaire Bernie Ecclestone, apparently paid $85 million for Spelling Manor, the 56,500-square foot mansion that was previously owned by Candy Spelling, widow of famed TV producer Aaron Spelling, whose works include the “Beverly Hills 90210,” “Charlie’s Angels,” and “Dynasty” series.

Rybolovleva’s father Dmitriy sold the majority of his stake in Uralkali, the fertilizer business that made him rich, for $6.5 billion in 2010.  He is already known in U.S. real estate circles for his May 2008 purchase of Donald Trump’s Palm Beach mansion, Maison de L’Amitie. He paid $95 million in cash for that residence, $25 million less than what Trump had originally asked. It was apparently the largest single residence price concession of all time.  He may not own that house much longer though. His wife Elena, who filed for divorce in Pam Beach court in 2009, is seeking transfer of ownership of the former Trump mansion.  He himself spends much of his time at his home in Monaco and is likely to buy the struggling French football club, AS Monaco.

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Spain looks safer than Italy as borrowing costs fall

A fan waves a Spain flag

Spain saw solid demand for its bonds on Thursday, paying more than 2 percentage points less to borrow over 5-years than Italy a day earlier as budget cuts helped ease concerns it could be among the next to fall in the euro zone's debt crisis.

But while the Treasury also paid much less to sell two 10-year bonds than a similar issue just a month ago, yields were still near euro-era highs amid doubts over leaders' ability to find a lasting solution to the bloc's debt crisis.

"A good auction ... they managed to sell quite a chunk. It won't help to calm these fears everyone in the market is having about funding in 2012, but Spain is considered a far more attractive credit than Italy," strategist at West LB, Michael Leister said.

Spain has been in the line of fire in the euro crisis since Greece was bailed out more than a year ago. But measures which have almost halved the budget deficit along with a massive banking restructuring program have taken some of the heat off.

Attention has turned instead to the euro zone's third largest economy, Italy, which has seen refinancing costs soar to unsustainable levels and its Prime Minister Silvio Berlusconi replaced by technocrat caretaker Mario Monti.

"The contrast with Italy is striking. Spain, despite its severe economic problems, is judged to be a safer credit," said Nicholas Spiro, economist at Spiro Sovereign Strategy.

"Italy is walking on very thin ice at the moment given the scale of its funding needs next year. Spain is better placed on this front and has more policy-making credibility in the eyes of investors."

The premium investors demand to hold Italian over Spanish debt rose to a new record of around 162 basis points on Thursday while Spain's spreads against German debt dropped more than 24 basis points following the auction.

SOCIALISTS TROUNCED

The centre-right People's Party (PP) trounced the Socialists in November 20 election as voters punished Prime Minister Jose Luis Rodriguez Zapatero for his handling of the economic crisis though his measures have kept Spain needing a Greek-style bailout.

Incoming Prime Minister Mariano Rajoy has said he will continue with the previous government's austerity measures and cut the budget shortfall from an expected 6.5 percent of GDP this year to 4.4 percent of GDP next year.

Pollsters say Spaniards are largely resigned to the idea of more cuts, but that sentiment could fade within a year if the economy does not bounce back from a prolonged slump.

Spain's economy stagnated in the third quarter and is widely expected to sink into its second recession in three years at the start of 2012 as domestic demand shows no sign of returning and exports are hit by the global slowdown.

Meanwhile, the burst property bubble has left the country's banks sitting on 176 billion euros ($227.94 billion) of potentially troubled real estate assets at end-June and struggling to raise capital to shore up balance sheets in a paralyzed market.

Rajoy has said his priorities when he takes office next week are to balance the public accounts, reform the labor market -- Spanish unemployment is more than double the European Union average -- and intensify bank restructuring efforts.

RISING COSTS

As market nerves rise over the future of the euro zone, Spain's government has found it increasingly expensive to issue bonds but with a debt-to-GDP ratio of around 68 percent, around 20 percentage points below the euro zone average, it has some margin.

Spain also faces a less pressing redemption calendar than Italy, with medium and long-term debt redemptions of nearly 50 billion euros in 2012 with none due until April.

Rome meanwhile faces redemption and coupon payments of around 100 billion euros between January and April, Reuters data shows.

The Spanish Treasury raised 6 billion euros from the auction on Thursday of three bonds in the primary market, far surpassing a target of 3.5 billion euros and meaning the Treasury has completed its end-of-year bond issuance goal.

The auction came as markets braced for a possible ratings downgrade after a disappointing summit of European Union leaders on Friday.

Spain sold 2.5 billion euros of a bond maturing January 31, 2016 at a yield of 4.023 percent, compared to 5.276 percent when it was last auctioned December 1. The bond was 2 times subscribed after 2.8 two weeks ago.

The bond maturing April 30, 2020, sold 2.2 billion euros at an average yield of 5.201 percent while a bond maturing April 30, 2021 sold 1.4 billion euros for 5.545 percent.

The last time Spain ran a primary auction a 10-year bill November 17, it paid an average yield of 6.975 percent, considered by most economists as unsustainable over the long term.

However, while the benchmark 10-year yield was down from recent highs during volatile trade, it was still far above prices paid from the average yields seen before June.

"These are still high levels of rates but they are a lot better than Italy's ones," strategist at Monument Securities Marc Ostwald said.

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Wall Street edges up on economy

Signs of strength in the labor market and manufacturing sector, as well as higher quarterly profit from FedEx, pushed U.S. stocks slightly higher on Thursday, but the mood was fragile as investors kept their eyes on Europe's festering debt crisis.

The data signaled a continuation of the now familiar tug of war between optimism about the U.S. economy and fears that Europe's debt crisis could spark a global recession.

Reflecting that struggle, indexes were off their highs of the morning and the Nasdaq bobbed around the breakeven mark, suggesting investors were hesitating before buying into the better-than-expected U.S. data.

The world economic outlook is "quite gloomy" and will require action by all countries to head off an escalating crisis that carries risks of a global depression, Christine Lagarde, the head of the International Monetary Fund, said on Thursday.

Tim Ghriskey, chief investment officer of Solaris Asset Management in Bedford Hills, New York said the question for investors is whether the U.S. economy can continue to grow in the event of a serious recession in Europe.

"Can the U.S. go it totally alone? No. But the rest of the world, with the exception of Europe, we are pretty positive about. We don't think it's going to fall apart," he said.

FedEx Corp (FDX.N) shares were up 5.3 percent at $81.36 after the package delivery company, seen as a bellwether of economic activity, reported higher-than-expected quarterly profit.

The news from FedEx was welcome after a number of high-profile companies warned about revenues and profits in recent days. On Thursday Honeywell (HON.N) said Europe's slowing economy would take a toll on orders. But the shares rose 1.2 percent after it forecast profit in line with expectations.

The Dow Jones industrial average .DJI rose 45.60 points, or 0.39 percent, at 11,869.08. The Standard & Poor's 500 .SPX added 4.07 points, or 0.34 percent, at 1,215.89. The Nasdaq Composite .IXIC fell 2.45 points, or 0.10 percent, at 2,536.86.

New applications for unemployment insurance fell to a 3-1/2 year low, suggesting a job market recovery was gaining speed, while a gauge of New York state manufacturing activity rose to its highest level since May.

"It all speaks to further stabilization and a very positive trend in the U.S. economy," said Peter Kenny, managing director at Knight Capital in Jersey City, New Jersey.

Wall Street fell for a third day on Wednesday to its lowest level in two weeks with the market highly sensitive to developments in Europe.

Spain saw bond yields fall in a well-received auction, raising roughly twice what the government had targeted. Equity markets have lately tracked European bond prices, using them as a gauge of risk appetite.
Novellus Systems Inc (NVLS.O) jumped 21.2 percent to $42.04 a day after it agreed to be bought by larger rival Lam Research Corp (LRCX.O) for $3.3 billion in stock.

Rite Aid Corp (RAD.N) reported a smaller-than-expected quarterly loss as a growing loyalty program and more flu shots helped sales, and the drugstore chain raised its outlook for the year. The shares rose 4.4 percent to $1.19.

Michael Kors Holdings Ltd (KORS.N) shares rose more than 20 percent on their New York Stock Exchange debut after the luxury goods company priced at $20 per share on Wednesday, above the expected range.

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Industrial output sees first drop since April

Industrial output declined in November for the first time in seven months as manufacturing activity slumped, countering recent signs of improvement in the economy.

Production in the industrial sector eased 0.2 percent last month, the first drop since April, following a 0.7 percent gain in October. Analysts in a Reuters poll had been looking for a 0.2 percent rise.

A measure of how fully firms are using available resources, capacity utilization, eased to 77.8 from 78.0.

The pullback in factory activity was led by a 3.4 percent decrease in motor vehicles and parts. But even excluding that drag, manufacturing output was still down 0.2 percent.

Mining production rose 0.1 percent, and there was a 0.2 percent rise for utilities.

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JPMorgan Chase cleans up checking account fee list

JPMorgan Chase & Co (JPM.N), the biggest U.S. bank, and two large credit unions have taken the lead in cleaning up the banking industry's fee-laden fine print for checking accounts, an advocacy group said on Thursday.

JPMorgan Chase, the Pentagon Federal Credit Union and the North Carolina State Employees' Credit Union have started presenting account fee schedules in simple, boxed tables of three pages or less, according to the Pew Health Group, the health and consumer-product safety arm of the Pew Charitable Trusts.

Fee disclosure documents for large banks typically run 111 pages and hide important fees from customers in technical fine print, according to an April report by Pew's Safe Checking in the Electronic Age Project. Bank fees became a focus of federal lawmakers in the aftermath of the credit crisis.

Many people have been surprised by fees they were charged, Pew researchers found in interviews with consumers. Fee disclosures are too dense for consumers to know better, said Susan Weinstock, director of the Pew project.

"It is basically impossible to comparison shop for a checking account," Weinstock said in an interview. She hopes the new tables will change that.

JPMorgan Chase is posting its first table online on Thursday for its most-used "Total Checking" account. The bank plans to roll out similar presentations for other types of accounts in the new year, Ryan McInerney, CEO of the company's consumer bank, told Reuters.

Another large bank and some regional banks and other credit unions are working to bring out simplified tables of their own soon, Weinstock said . She is calling on the government's new Consumer Financial Protection Bureau to require all banks to do the same.

Banks' fee revenue could come under pressure if it is easier for consumers to compare charges.

As JPMorgan Chase began to boil down the fees into a table, executives decided some were bad for business and had to go. For example, the bank dropped charges of $25 for closing an account within 90 days of opening it and $15 to receive a rush copy of an item.

"We think this will create more loyal customers and grow our business," McInerney said.

McInerney said the moves will pay off with higher revenues over time by winning over more customers.

JPMorgan Chase began work on the new disclosure shortly after Pew released its critical report in April. The bank tested the table with customers in focus groups and interviews, and then refined it , McInerney said.

Long legal disclosures of terms and conditions will continue to exist. For those who want to check the details, McInerney said the bank intends to embed Internet links to the fine print in online copies of its tables.

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U.S. leaps ahead, Europe debt woes touch Asia

U.S. jobless claims on Thursday fell to a 3-1/2-year low and a survey showed New York factories picked up speed this month, bucking gloomy economic trends set by Europe and Asia.

Stock index futures added to gains after the Labor Department revealed initial claims for state unemployment benefits dropped by 19,000 to 366,000 last week, the lowest level since May 2008.

And a business survey of New York factories provided more evidence that the U.S. economy is weathering the festering sovereign debt crisis in Europe, which is starting to crimp growth in emerging trade partners like China.

While the pace of decline in the euro zone's business economy unexpectedly slowed in December, surveys earlier on Thursday confirmed the region is almost certainly stuck in recession.

That leaves the United States as perhaps the only major Western power currently making a significant contribution to global economic growth.

"The data is all very in line with a modestly improving overall economy here in the United States," said Peter Kenny, managing director at Knight Capital in New Jersey.

"Stability in the U.S. economy is going to be a vital part of stabilizing global GDP. This comes at a very good time."

The New York Federal Reserve's "Empire State" general business conditions index rose to 9.53 from 0.61 the previous month. Economists polled by Reuters had expected a reading of 3.00.

The Philadelphia Federal Reserve's business activity indicator, another early gauge of private sector activity, is due at 1500 GMT and economists also expect it to rise sharply.

In the euro zone, Markit's flash composite purchasing managers' index (PMI), which corresponds closely with economic growth, rose unexpectedly in December to 47.9 from 47.0 last month.

But it has now lingered below the 50 line that divides growth from contraction for four months.

"(It) reinforces the notion that the euro zone economy is slipping into a mild recession rather than falling off a cliff," said Martin van Vliet, senior economist at ING.

The survey compilers warned against viewing its latest gauge of euro zone business as a turning point, especially since there is still a strong risk the euro zone sovereign debt crisis could spiral out of control.

RESOLUTION NEEDED

EU leaders last week took a historic step towards fiscal union last week, but pressure is building on reluctant euro zone paymaster Germany to take immediate, radical steps to solve the crisis.

A resolution to the crisis is all the more important as its repercussions spread through global economy. China saw its first year-on-year drop in foreign direct investment in 28 months in November.

The HSBC flash manufacturing purchasing managers' index, the earliest indicator of China's industrial activity, rose modestly to 49.0 in December from 47.7 but pointing to a monthly contraction in activity nonetheless.

Most economists gave a cautious welcome to the euro zone PMI data, which measures changes in the activities of thousands of businesses across the euro zone.

"All in all, despite the further pick-up in December, the PMI data still suggest that euro zone real GDP saw a marked contraction in the fourth quarter," said ING's van Vliet.

The Markit Eurozone Composite PMI, which looks at both the manufacturing and services sectors,

Furthermore, only France and Germany were responsible for the upturn in the index, while the euro zone's peripheral economies continued to struggle.

Markit said its data pointed to a quarterly economic decline of 0.6 percent in the euro zone in the final quarter of this year.

That would be twice as deep as the contraction expected by economists in a Reuters poll on Wednesday, which also forecast a 0.2 percent fall in the first three months of the new year. <ECILT/EU>

An escalation of the debt crisis could cause a far steeper contraction next year -- a scenario the Swiss National Bank warned on Thursday could not be ruled out, after holding its exchange rate cap on the franc against the euro for now.

There was one bright note on Thursday. The risk premium on benchmark Spanish bonds fell following a well-received bond auction that raised more than the government had targeted. <MKTS/GLOB>

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Olympus ex-CEO attacks Japan investors as comeback bid struggles

Japan's Olympus Corp ex-CEO Michael Woodford

The whistleblower in Japan's Olympus Corp scandal, ex-CEO Michael Woodford, blasted Japanese shareholders on Thursday for failing to stand up for him, amid signs that domestic and foreign investors are split over his campaign to be reinstated.

Woodford, an Englishman who was a rare foreign CEO in Japan, went public with his concerns over crooked accounting at Olympus after his dismissal in October, leading to the uncovering of a $1.7 billion fraud that has left the company badly weakened.

He is now lobbying shareholders of the maker of cameras and medical equipment to support his reinstatement and replace the disgraced board with a new team that he is assembling.

"We saw a shameful state of the company's finances yesterday, but not one Japanese shareholder stood up and said publicly 'Mr Woodford is right, thank you Mr Woodford', anything, a total, an utter silence," Woodford said, a day after Olympus released its restated accounts on Wednesday.

His comeback campaign has highlighted the contrasting opinions of foreign and Japanese shareholders on the future leadership of Olympus, which has been found to have carried on a $1.7 billion fraud to hide investment losses for 13 years.

At least three big foreign shareholders have backed Woodford's bid to return to the company where he spent three decades working his way up from salesman to CEO. But not one Japanese shareholder or lender has openly supported him since he blew the whistle, leaving him clearly frustrated.

Woodford also launched an emotional attack on the firm's current Japanese boss.

"Should that man be the president and custodian of one of Japan's iconic companies?" he said of Olympus President Shuichi Takayama, one of the directors who had voted unanimously to sack him after he had queried the firm's dubious book-keeping.

"How dare he!" Woodford added, calling Takayama's handling of the whole affair "Machiavellian."

Woodford also said he had discussed refinancing options for Olympus with private equity firms and investment banks, and also voiced concerns that Takayama was planning to raise money by placing new shares with a third party.

That would dilute the stakes of existing owners and weaken their hand in a proxy battle between Woodford and whoever the existing board chooses as its next CEO candidate.

"It would dilute the existing shareholders, so then I could not win a proxy fight," he said.

The existing board, led by Takayama, has said he and fellow directors will resign soon, to make way for a new board to be elected by shareholders at a meeting in March or April, and that the board wants to choose its successors before it quits.

It has set up an external panel to advise on board candidates and other management issues.

Takayama even suggested on Thursday the board would consider Woodford as a candidate for his old job, but few analysts gave the gesture any credence given the hostility between the pair.

Takayama, currently the most senior executive after several resignations since Woodford's departure, said he had no plans to meet Woodford, who some major Japanese shareholders and lenders privately oppose, according to a banking source.

"As of now, I have no plans to meet," he said.

Woodford says the board is discredited and has no right to choose its successors, and on Thursday expressed anger at signs that not all of the incumbent board would resign.

He is assembling his own team of candidates for a new board with himself at the helm.

NEED FOR FRESH CAPITAL OR TIE-UPS

Woodford also went public with a plea to meet the head of Sumitomo Mitsui Banking Corp (SMBC), the main lender to Olympus, a possible sign that he was having trouble getting access.

"My representatives have asked for a formal meeting with SMBC. I hope they at least give me the courtesy of listening to me," he said. The bank, which is the core banking unit of Sumitomo Mitsui Financial Group, said it had not received the request and declined comment.

The next CEO and board of Olympus face major challenges, starting with a need to repair the once-proud firm's balance sheet, which was revealed on Wednesday to be $1.1 billion weaker than had been previously disclosed in its fraudulent accounts.

Olympus shares slumped 20 percent on Thursday, with investors now concerned it might need to merge, sell assets or raise fresh capital.

Takayama said on Thursday the company was considering capital and operational tie-ups, among other options, to relieve the pressure on its balance sheet, which was shown to have a very thin layer of equity remaining after the restatements.

Olympus forecast its troubled camera business will make a loss in the current financial year, but said unit sales had risen 15 percent in the six months to September 30 from the same period a year earlier.

The firm, whose main income earner is its very profitable endoscope business, avoided automatic delisting from the Tokyo Stock Exchange by meeting Wednesday's deadline for producing its overdue second-quarter accounts, giving some initial relief to investors.

However, the 92-year-old firm can still be delisted if the exchange believes the accounting deceit was sufficiently grave.

Woodford said he favored private equity or a rights issue over a strategic alliance, which would rob Olympus of its independence. But rights issues, where existing shareholders can buy more shares on a pro-rata basis, are rare in Japan.

Olympus has lost more than half its market value since it sacked Woodford and the scandal erupted. Two top Olympus executives have been found to have masterminded the scheme to cook the books, and both have since resigned.

Olympus has been dogged by rumors of bid interest from rivals, such as fellow endoscope makers Fujifilm and Hoya, or from private equity since the scandal broke.

The Tokyo exchange said after the announcements that it was keeping Olympus on its watchlist for possible delisting.

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Small businesses hiring more online workers

When Casey McConnell started text messaging marketing company Qittle he took the traditional route of hiring onsite employees. But he soon realized it was more advantageous to hire workers online.

“We found it was easy to find these specialists or people that we could hire for a certain amount,” said McConnell, the CEO of Qittle. “We didn’t have the extra overhead and we just got the project done. It’s really easy for us to ramp up our needs or pull back using contractors. If we had an internal staff it’s pretty hard to fluctuate like that.”

Qittle’s preference to hire workers in the cloud is reflected in Elance’s recent survey that shows 83 percent of small businesses plan to hire half their workers online within the next 12 months. Only 10 percent of those surveyed plan to hire predominantly onsite workers (90 percent).

Elance, a marketplace for online workers, has posted more than 600,000 jobs ranging from programers to virtual assistants. Small businesses prefer to hire online because of flexibility, speed and economy of the process cost, according to Fabio Rosati, the CEO of Elance.

“So if you’re a small business owner, you can think of a hybrid model of hiring (online and onsite workers),” said Rosati. “You can think about what skills and what talent you need onsite. You can also decide what skill set you need to be in the cloud which is much more cost-effective and much more flexible.”

Elance’s Online Employment Report shows the number of businesses hiring online has increased 107 percent since last year. Elancers earned 51 percent more last year and earned a record $38 million in Q3 2011.

Rosati said more and more companies will decide to hire in the cloud. “I predict that at some point 99 percent of businesses will have between 5-10 percent of their hiring done online because it makes so much sense.”

But for McConnell, hiring online is the only way to go. Qittle plans to only hire workers from the cloud. “As a business we’d rather stay small and nimble and we’d rather contract out through individuals or businesses.”

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Sony eyes Vita push, feels Fitch heat

Sony Corp, set to report a $1 billion loss this year, is banking on a big slate of new software to drive sales of its new PlayStation Vita handheld games device, even as Fitch downgraded the Japanese electronics giant to a notch above junk.

Welshman Andrew House, who took the top job at Sony Computer Entertainment in September, must plot a much-needed success story for the Vita, negotiating a minefield of consumer gloom and competition from smartphones and tablet PCs such as Apple Inc's iPhone and iPad.

Sony, which has forecast a fourth straight annual loss this year, launches the Vita in Japan this weekend.

It hopes a package of 24 software titles at launch will help the gadget avoid the fate of rival Nintendo's 3DS, which flopped shortly after launch, forcing a hefty price cut.

"It's unprecedented for us to achieve that degree of publisher and development support ... we adopted a different approach to the lead-up to the platform in terms of our relationships with publishers and developers," House told reporters at Sony's Tokyo head office on Thursday.

He said he hoped the Vita would outsell its predecessor, the PlayStation Portable (PSP), which has shipped 73 million units since launching in late-2004.

The videogames unit made a first profit in 5 years in the year to March, as it squeezed production costs for the Playstation 3, boosting profits for the whole company. The unit's sales accounted for more than a tenth of Sony's 7 trillion yen in total revenue.

But costs involved in driving Vita sales may push the unit back into the red this year, adding to Sony's struggle with huge losses in televisions.

Sony needs the Vita to be a hit to ease the pain from its TV business, which is set for an annual loss of $2.2 billion, an eighth straight year of losses. Sony is looking to halve that loss next year, but has given few details on how it plans to get the business back into profit.

FITCH MOVE

The Fitch ratings agency turned up the heat by downgrading Sony to BBB- - a notch above non-investment, or junk, grade - from BBB, citing the group's weakened financial performance and the challenges it faces in recapturing its former strong position in key markets.

"A likely overall FY12 EBIT loss, excluding financial services, and an increase in debt driven by acquisitions will significantly weaken Sony's credit profile," said Nitin Soni, Associate Director in Fitch's Asia-Pacific Telecommunications, Media and Technology team.

Sony said in October it was taking over its mobile phone joint venture with Ericsson for $1.5 billion, and is also leading a group to buy EMI's music publishing operations in a deal valued at $2.2 billion.

"Of course, if the rating is downgraded it makes it more expensive for them to raise money, so it's not good," said Keita Wakabayashi, an analyst at Mito Securities.

"(Sony has) slashed its profit outlook for the current year and even if the North American market has improved slightly, European and Japanese markets and emerging markets are in a severe state. So downgrades are something we'll have to keep in mind."

VITA

The Vita, featuring a 5-inch OLED display and 3G connectivity, sold out in advance bookings in Japan, where buyers have rushed to upgrade from the PSP. Sony has not provided a unit sales target for the Vita.

The United States and Europe may pose a tougher challenge as a February 22 launch date for the Vita comes well after the crucial year-end holiday sales season.

"We've been told the PS Vita sold out on pre-bookings. How it sells next year depends on the software. If they can come up with something like Monster Hunter they will be able to sell a lot, but if they don't, prospects don't look so bright," said Mito's Wakabayashi, referring to a game title that drove sales of the PSP in Japan.

The challenge from smartphones and tablets comes on top of competition from long-standing domestic rival Nintendo, which aims to sell 16 million of its cheaper 3DS handheld games devices by March. Sony on Thursday said it was keeping to its target of selling 15 million PS3 game machines in the year through March.

Another rival, Microsoft, doesn't offer a portable device.

After a slump in sales, Nintendo slashed the price of its handheld gadget in August by about 40 percent to $170, compared with $249 for the PS Vita, or $299 for the 3G version.

The games industry has shrugged off the broader economic gloom and is forecast to top $81 billion by 2016, according to research firm DFC Intelligence, up 23 percent from this year and more than three times the size of the recorded music industry.

Much of that growth is likely to be in online, social and casual games, rather than the traditional hardware model that has been Sony's staple.

Japan's software houses are pouring resources into mobile social gaming, and industry executives have expressed some concern over the future for dedicated handheld gaming devices.

Sony was criticized in June, when it announced the pricing of the Vita, for making the gadget too expensive, and has teamed up with U.S. telecoms firm AT&T as Vita's exclusive carrier. Many U.S. iPhone users have complained that AT&T provided poor connectivity.

Sony shares closed down 1.5 percent on Thursday, their lowest in two weeks.

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Daewoo signs deal to develop Israel's Tamar gas field

Daewoo International

 South Korea's Daewoo Shipbuilding & Marine Engineering Co Ltd said on Tuesday that it has agreed to develop Israel's Tamar natural gas field with Noble Energy Inc, Delek Group Ltd and Isramco Inc, and was eyeing vessel orders for the project.

Under the deal, Daewoo will soon conduct an LNG-FPSO feasibility study, aiming to sign a final agreement by the end of next year, a statement from the shipbuilder said, without specifying the size of its stake in the development deal or the value.

The statement said it aimed to produce liquefied natural gas (LNG) from the field, which has estimated reserves of 240 billion cubic meters of natural gas, from the end of 2016 if all the processes for the final deal remained on track.

The volume was equivalent to five times South Korea's annual consumption, Daewoo added.

"(Daewoo) hopes to win multiple orders for LNG floating production and storage and offloading (FPSO) vessels," the Daewoo statement said, adding that the field's owners were considering gas production in the largest offshore find of 2009 through FPSO vessels, not onshore plants, for geopolitical reasons.

The Tamar field is located in a sea area about 80 kilometres west of the port of Haifa, according to the Daewoo statement.

Isramco said last week that it had made a preliminary deal with Daewoo to build and operate a floating LNG facility for exports to South Korea and elsewhere, adding that the companies would hold talks to secure a contract for 15-20 years at a price likely to be between $7 and $9 per MMBTU.

South Korea, the world's second-largest LNG importer after Japan, imported nearly 30 million tonnes of LNG in the first ten months of this year.

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European shares gain strenght

European shares rose on Tuesday, bouncing from a steep sell-off in the previous session and after Wall Street finished off its lows, though gains were set to be capped by worries over high euro zone and U.S. debt levels.

At 0936 GMT, the FTSEurofirst 300 index of top European shares was up 0.4 percent at 923.33 points, after falling 3.3 percent in the previous session to its lowest close in nearly seven weeks, on worries about high debt levels on both sides of the Atlantic and with Moody's warning on France.

Stocks rose almost across the board, with those that suffered most in the previous session bouncing more. The STOXX Europe 600 Banking Index rose 0.6 percent. France's BNP Paribas rose 1.2 percent.

But the banking sector has lost more than 38 percent in 2011, with many banks having to take severe writedowns on exposure to euro zone sovereign debt.

"This (the overall market) does not look like any weakness that one could buy into with a high degree of confidence," Jeremy Batstone-Carr, strategist at Charles Stanley, said.

"Uncertainty over the positioning of the rating agencies is almost certainly going to mean that any bounce in the market is likely to be limited."

Borrowing costs in the euro zone periphery remained major focus in the market. Spanish six-month bill average yields rose to 5.227 percent in an auction, compared with 3.302 percent at the previous sale.

HIGH PROFILE

U.S. lawmakers abandoned their high-profile effort to rein in the country's ballooning debt on Monday in a sign that Washington likely will not be able to resolve a dispute over taxes and spending until 2013.

The debt issues will continue to drive market sentiment, said strategists, and equities were unlikely to see much of a rally in the short term.

"You always get some kind of bounce after a fall-off, but the debt, the uncertainty hasn't really changed," said Andy Lynch, fund manager at Schroders, which manages 197 billion pounds ($311 billion).

"Absent some deus ex machina, time is the biggest healer. We need to see debt being paid down, so banks have capacity to fund economic growth. But that's a six-month story, rather than a six-day story.

"We favour companies with decent balance sheets and good cash flow."

Goldman Sachs cut its three-month target for the STOXX Europe 600 to 195 points, 13 percent below Monday's close of 224.76, citing worries about the failure of euro zone policymakers to come up with comprehensive measures to avoid contagion in the sovereign debt crisis.

"The lack of initiative means weak fundamentals are likely to be a key driver," Goldman strategists said in a note.

Batstone-Carr said there was support for equities from valuation measures such dividend yield.

Equity valuations on Thomson Reuters Datastream showed the STOXX Europe 600 carrying a one-year forward price-to-earnings of 9.4 against a 10-year average of more than 13.

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Obama college loan plan aims at an old voting bloc

Seeking to shore up support among cash-strapped college graduates and students struggling with rising tuition costs, President Barack Obama is outlining a plan to allow millions of student loan recipients to lower their payments and consolidate their loans.

Outside of mortgages, student loans are the No. 1 source of household debt. Young voters were an important bloc in Obama's 2008 campaign, and student loan debt is a common concern among Occupy Wall Street protesters.

Obama's announcement, to take place Wednesday in Denver, comes the same day a new report is being released by the College Board. It shows average in-state tuition and fees at four-year public colleges rose $631 this fall, or 8.3 percent, compared with a year ago. Nationally, the cost of a full credit load has passed $8,000, an all-time high.

The White House said Obama will use his executive authority to provide student loan relief in two ways.

First, he will accelerate a measure passed by Congress that reduces the maximum repayment on student loans from 15 percent of discretionary income annually to 10 percent. The White House wants it to go into effect in 2012, instead of 2014. In addition, the White House says the remaining debt would be forgiven after 20 years, instead of 25. About 1.6 million borrowers could be affected.

Second, he will allow borrowers who have a loan from the Federal Family Education Loan Program and a direct loan from the government to consolidate them into one loan. The consolidated loan would carry an interest rate of up to a half percentage point less than before. This could affect 5.8 million more borrowers.

Education Secretary Arne Duncan told reporters on a conference call that the changes could save some borrowers hundreds of dollars a month.

"These are real savings that will help these graduates get started in their careers and help them make ends meet," Duncan said.

The White House said the changes will carry no additional costs to taxpayers.

Last year, Congress passed a law that lowered the repayment cap and moved all student loans to direct lending by eliminating banks as the middlemen. Before that, borrowers could get loans directly from the government or from the Federal Family Education Loan Program; the latter were issued by private lenders but basically insured by the government. The law was passed along with the health care overhaul with the anticipation that it could save about $60 billion over a decade.

Today, there are 23 million borrowers with $490 billion in loans under the Federal Family Education Loan Program. Last year, the Education Department made $102.2 billion in direct loans to 11.5 million recipients.

Meanwhile, the Education Department and the Consumer Financial Protection Bureau announced a project Tuesday to simplify the financial aid award letters that colleges mail to students each spring. A common complaint is that colleges obscure the inclusion of student loans in financial aid packages to make their school appear more affordable, and the agencies hope families will more easily be able to compare the costs of colleges.

Separately, James Runcie, the Education Department's federal student aid chief operating officer, told a congressional panel Tuesday that the personal financial details of as many 5,000 college students were temporarily viewable on the department's direct loan website earlier this month.

Runcie said site was shut down while the matter was resolved, and the affected students have been notified and offered credit monitoring.

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Attain Quick Finance by Using Debit Card

Do you have debit card in your name? If yes then you can use it under emergency circumstances which usually comes in the mid or near end of the month in your life without giving any prior notification. These loans allow you to obtain quick financial relief at urgent times against your debit card. This may help you to look after many unwanted cash commitments within due time.

A debit card showcases that you regularly do financial transactions. In this way you can conveniently get out of unexpected monetary tantrums in an efficient manner. For availing debit card cash loans you need to be at least 18 years of age or above and you need to hold an active valid bank account along with a debit card in your name. Moreover, you also need to have stable job with good income flow.

The assistance of debit card cash loans helps you to raise sufficient funds that may come in between 100 to 1500. For the repayment of loan you will be offered a short period of 2 to 4 weeks. The loan amount charges will be relatively high, as these are offered for a short time only without any security deposit. But if you smartly research the comprehensive online financial market, then you will be able to derive the effective loan deal at feasible rates.

The amount received with these loans is enough to tackle your many unexpected financial dues such as pay for unpaid grocery bill, credit card debts, unpredicted medical bill, car repairing, small travel expense, organizing small birthday party, buying a mobile phone and more.

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Uk Loans - Ensure Instant Money For a Stress Less Life

Tenants or non home owners often find it difficult to obtain a loan. A valuable property to secure as collateral is demanded by every lender to offer hassle free financial deal. If you are having financial problems and looking for the finest loan approach that suit your terms, here are loans UK for you. These loans are unsecured form of loan that is pertinent and appropriate financial option for tenants. The assistance of these loans let you grab instant money with no collateral assessment procedure.

For the better and affordable financial aid, check out loans UK right away. These loans can be availed with the ease of online application method. You do not have to leave the comfort of your home or office. Make a careful online research and search the most affordable lender of all. To get applied, fill the application form with few required details and the money can be accessed directly from your checking account in quick span of time. There will be no fuss and delay in the application or approval.

To get approved with UK tenant loans, one needs to meet some of the simple eligibility criteria. To get this loan aid, the applicant should be a permanent citizen of UK and complete the age of eighteen years or more. Also, he should be in capable enough to repay back the loan money on time. Plus, he should hold a valid and active bank account that should not be more than three months old.

The situation may come when you cannot able to fulfill your financial expenses within your monthly income. Loans UK are one of the ideal sources of financial deal for people to overcome their financial troubles with ease. You need not have to arrange any valuable asset to pledge as a security against the loan amount. You are allowed to borrow the loan money that can be ranges from 1000 to 25000 with swift repayment tenure of 1 to 10 years. Spend the funds for meeting any of the desired or pending financial expenses such as renovating your home, paying off previous debts, pay off huge monthly rent, go for small vacations and so on.

No worries if your credit scores are bad or imperfect, you can still get the approval of loans UK. These loans are powerful financial tool for tenants that can be availed without undergoing any credit checks and collateral demand.
Mathew Kenny is offering loan and financial advice for quite a long time. He is working as the senior financial consultant with Loans. To find loans UK, personal loans for tenants, UK tenant loans, unsecured tenant loans, bad credit tenant loans, tenant loans visit http://www.uktenantloans.co.uk

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Are Settlement Loans And Lawsuit Loans Legal?

Since I’m in the industry, obviously I have a lot of interest in articles being published about theis particular facet of litigation funding. I find it particularly interesting to read the numerous articles that are misleading. One can only surmise that many of these articles are published by those who would want to preclude having individuals obtain adequate lawsuit loans and settlement loans to assist them with the litigation process. A common reason that this would occur would be because the individuals do want do not want the injured plaintiff to have his/her “day-in-court.”

As we begin this article, let me say that some jurisdictions make it extremely difficult, if not impossible, to obtain lawsuit funding (e.g., North Carolina). However, most states do permit such transactions to occur. It is understood that, as a public-policy, this form of funding can be very helpful to those who do not have the financial resources to fend for themselves if tthey sustain injuries as a result of another’s negligence.

Please take note of the fact that attorneys are barred, at least in most jurisdictions, from assisting their clients financially, irrespective of the financial hardship the client may face. Additionally, most jurisdictions make it illegal for anyone other than a disinterested third party to provide either lawsuit loans were settlement loans to plaintiffs. Attorneys who violate this stricture often place their professional lives in jeopardy.

The American Bar Association has made it very clear that its position is that attorneys are not to advance financing to their clients to enable them to proceed with litigation. Furthermore, virtually all jurisdictions bar attorneys from engaging in this activity. Many attorneys general offices have actually issued legal opinions with respect to this issue.

An individual may certainly incredibly asked why he such funding would be necessary to pursue litigation if one is injured as a result of another’s negligence. Unfortunately, many people find themselves confronting substantial delays in settlements. These delays can create crashing hardships on those individuals who have sustained the injuries. In fact, insurance carriers often focus on the strategy of “delay, delay, delay.” These delays often result in coercing the plaintiffs to settle their claims at a substantially-reduced amount.

There are some instances in which attorneys object to their clients obtaining either lawsuit loans are settlement loans. Although this is relatively rare, this is seen most commonly in attorneys who work with so-called Personally Injury Mills. The attorneys do not wish to have the client possess the means by which he/she is able to continue the litigation because the attorney wants to quickly churn-out a particular number of cases each month to meet the firm’s quota. Individuals would be wise to avoid utilizing such attorneys’ services.

It is the non-recourse nature of litigation funding that often confuses individuals. However, this simply means that if the individual does not win the underlying lawsuit, they do not have to repay the money advanced. Actually, it’s inappropriate to refer to these arrangements as “loans.” If they were loans, it would be necessary for them to be repaid, irrespective of the outcome of the case. Therefore, it is more appropriate to refer to this form of funding as, just that, funding.

In spite of all of the fear-mongering, lawsuit loans and settlement loans are perfectly legal, if not performed in a usurious manner. If a funding entity were to engage in such activities, the transaction could be barred as a matter of law. Therefore, individuals would be wise to work closely with lawsuit funding brokers to assist them in finding the most ethical and economical avenues to obtain the funding they seek.

Do you think a lawsuit settlement loan is right for you? Would you like to learn more about lawsuit funding? Please visit us today and you may apply online for lawsuit funding and learn more about the benefits of lawsuit funding.

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Many Britons Find Driving Abroad Trying

Many Britons find driving abroad difficult to master and find themselves travelling on the wrong side of the road or going the wrong way up a one-way street and through no fault of their own find they are victims of car theft and vandalism.

Driving AbroadSainsbury’s car insurance has found that over 2 million Britons abroad admit to driving on the wrong side of the road, causing havoc for themselves and other drivers.

Over 500,000 claim to have been stopped for speeding whilst driving abroad and over 400,000have been involved in a motoring accident while overseas.

Ben Tyte, Head of Car Insurance at Sainsbury’s Finance said: “Drivers taking their cars abroad need to prepare, not just because they’ll be driving on the other side of the road, but because laws differ from country to country.

It is perhaps easy to get your car abroad but as Ben adds: “Motorists need to ensure they have a suitable insurance policy to cover them while overseas and that they understand the legal requirements for driving in the country they are going to.

“Failing to do so could ruin your holiday and leave your severely out of pocket.”

Many of those taking cars overseas unfortunately also find themselves victims of vehicle crime. Over 500,000 Britons have had their car vandalised while abroad and 310,000 their vehicle broken into in the last 5 years.

And there’s another 400,000 drivers who have lost their car keys.

If you’re taking your car abroad, with help from Sainsbury’s car insurance, here’s a checklist of things to do to help ensure it goes smoothly:

   1. Check your car insurance before travelling – policies will include different levels of cover whilst abroad and will stipulate how long you are covered for. Call your car insurance provider and advise them you are planning to drive abroad; doing this could mean a much smoother process should you need to make a claim.
   2. Check your car insurance policy for European breakdown assistance, some policies offer this as standard, others do not. For example Sainsbury’s Premier Cover offers up to 90 days.
   3. Have a clear plan for your route. Invest in a map or use a European route planner on the internet, to ensure you know where you are going and anticipate any risks in advance. If you don’t like the stress of driving in a city for example try and plan a route that keeps you away from them.
   4. Set a realistic timescale for your journey to avoid feeling pressured to drive fast or not take enough breaks.
   5. Motoring laws differ across countries so make sure you know what they are for the countries you are visiting. The government website www.fco.gov.uk/knowbeforeyougo can help with this.
   6. Make sure your car is fit to do the miles – check tyre pressures, oil, brake fluid and water levels to help avoid breakdowns.

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Significant scale change pleases Ageas chief

Barry Smith, chief executive of Ageas UK, has claimed the insurer is on track to break the 100% combined operating ratio (COR) barrier but warned again that he saw no real signs of commercial market hardening.

Speaking after the company delivered £882m in income for the first half of 2011 and profit before tax of £35.4m, he told Insurance Age: "I'm really pleased. What is encouraging is we see a significant change both in terms of the scale of the business and the profitability. That is probably a comment on all aspects of what we do."

Ageas Insurance reported a COR of 100.5% (H1 2010: 106.5%) but Mr Smith indicated he was confident of achieving a double digit figure soon.

"If you take the quarter two combined ratio it was 97.2%," he said. "The first half was influenced in part by the escape of water deterioration from 2010. Quarter two is very encouraging."

The private car ratio left him similarly upbeat. "Private car is important to us, the motor combined ratio was 96.9% to the half year. Those combined ratios say to us that significant progress has been made."

Bodily injury
He assigned the improvement to knowledge of the change in the profile of claims going back to bodily injury in 2009, remedial action with more sophisticated risk rating and the increase in market rates.

With motor now showing a relatively healthy COR he accepted that the first quarter had seen more rate increase than the second and anticipated the levelling out of rate increase would continue.

"Logically the evidence is there that shows that more rate across the market is needed ... there is probably still a need for rate increases but more akin to claims inflation," he said.

Mr Smith said that the 32.5% growth in commercial lines to £106.3m (H1 2010: £80.2m) was good but the insurer had a significant appetite to do more.

"Part of that is linked to increasing the brokers' awareness of what we already do and part is helping them see that we can help support their businesses and deliver to their customers," he argued.

More staff
He claimed the insurer had more broker facing staff than a year ago and that it looked to mix expertise with technological solutions for brokers.

He said: "At Ageas we should continue to invest to give the option to the broker whether that is a single solution where they are able to access a variety of markets and insurers or whether it is a bespoke electronic solution for them.

"It is not just electronic trading. It is how we stay in touch with the brokers and make decisions to help them and give them access to decision makers so they have confidence to place the risk that has been presented to ourselves."

However he added that it was very difficult to see any signs that brokers would be witnessing a hardening market in the near term.

"I think there may be some pockets in aspects like commercial vehicle, maybe in fleet but, from where we sit, it is difficult to see any real rate strengthening."

Tesco Bank
On the issue of the Tesco Bank Partnership he also stated an appetite to do more and add to the £311.2m of GWP achieved in the first six months

"We think we have the capability, capacity and skills to do a lot more," he said. "It is a lot more across the piece, whether it is linked to Tesco or the broker market it is important that we deliver on what we say we will do."

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Willis Europe Acquires Polish Insurance Broker BCU AMA

Willis Sets Sights on Growing Polish Employee Benefits and Construction Sectors with Acquisition of BCU AMA

London, UK August 25, 2011 - Willis Europe B.V., a division of Willis Group Holdings plc (NYSE: WSH), the global insurance broker, has acquired 100 percent of the shares of Polish insurance broker, Brokerskie Centrum Ubezpieczeniowe (AMA) Sp. Zoo. The deal, effective immediately, will further strengthen Willis' presence in the country, in particular in the burgeoning Employee Benefits and Construction sectors. Terms of the transaction are not disclosed.

Major civil engineering projects are set to increase the growth of the Polish construction market by around 11 percent this year, while the IMF says that a rebound in employment growth is being driven by increased activity in the services sector.

Established in Warsaw in 1998, BCU AMA focused on specialty insurance lines, developing a significant book of business providing insurance brokerage services to the rapidly expanding Employee Benefits and Construction industries.

Willis Polska, a wholly-owned subsidiary of Willis Europe, has been trading in Poland since 1991, and has 47 employees and three offices in Warsaw, Katowice and Gda??sk. Its latest acquisition will see 12 BCU AMA staff transfer to the Willis' office in Warsaw.

Commenting on the rationale behind the deal, Jacek Cichy, CEO of Willis Polska, said, "As the Polish economy continues to grow at a rate of around 3.8 percent, the expansion of the Employee Benefits and Construction markets, along with other industries, will need to be accompanied by robust risk management. By joining with BCU AMA, we now have leading expertise in these lines of business and can help our clients put in place holistic insurance programmes to mitigate their increased exposure to risk.

"In addition, BCU AMA's clients will also benefit from access to a much broader range of services, backed by the vast global resources of Willis Group, in areas like Energy, Marine, Aviation and Financial and Executive risks."

Willis Group Holdings plc is a leading global insurance broker, developing and delivering professional insurance, reinsurance, risk management, financial and human resource consulting and actuarial services to corporations, public entities and institutions around the world. Willis has more than 400 offices in nearly 120 countries, with a global team of approximately 17,000 Associates.

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Phoenix Says First-Half Cashflow Climbed After Fund Mergers

Phoenix Group Holdings (PGH), the U.K.’s biggest manager of closed life insurance funds, said first-half cashflow climbed after it merged groups of policies and reduced costs to squeeze more money from its funds.

Phoenix generated 496 million pounds ($813 million) of cash from its funds in the six months to June 30, up from 335 million pounds a year earlier, the London-based firm said in a statement today. That beat the 487 million-pound average estimate of four analysts surveyed by the company.

The increased cashflow was due to a “series of management actions such as fund mergers, tax hedging and tax shelters,” Chief Executive Officer Clive Bannister said in a telephone interview. “There are clearly relatively arcane and technical processes behind what we do, but it is our job to simplify and explain in words of one syllable such as cash.”

Phoenix, which buys life insurance policies and profits by releasing capital from them as they mature, is aiming to pay down its 2.7 billion-pound debt pile, almost half of which is due in 2014. The stock is the second-worst performer in the FTSE 350 Insurance Index over the last three months as investors speculated the European debt crisis may make rolling over the debt more difficult.

“We don’t think there’s going to be an issue about what will be a re-terming rather than a refinancing of our financial debt package,” Bannister said, referring to the market volatility of the past month.
Stock Climbs

The stock climbed 13.5 pence, or 2.6 percent, to 535 pence as of 8:45 a.m. in London trading, for a market value of about 923 million pounds.

Phoenix accrued the debt when it purchased Resolution Plc for 5 billion pounds in 2007, when the firm was run by Hugh Osmond, founder of U.K. restaurant chain Pizza Express. Osmond is now the firm’s third-biggest shareholder with a 5.6 percent stake, according to data compiled by Bloomberg.

The firm said it expects to meet its target of producing between 750 million pounds and 850 million pounds of cash this year. Net income fell to 90 million pounds from 179 million pounds in the same period a year earlier, Phoenix said.

The lower profit “reflects the impact of one-off positive experience variances that were recognized in the Phoenix Life operating profit in the first half of 2010 and further investment” in its asset management arm, Phoenix said in the statement.

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Aviva has launched its new online car insurance brand

Announced as part of its H1 2011 results, the new distribution channel forms part of Aviva's strategy to continue to grow its UK general insurance business.

The new service will be available shortly on Gocompare.com and is already online at www.quotemehappy.com - with further price comparison sites planned for later this year.

The new service offers fully comprehensive insurance only and is aimed at lower risk motorists who are aged between 21 and 75; have had no more than one at-fault claim in the past four years and own a car that is no more than 13 years old and is worth less than £40,000.

Happy to serve themselves
Steve Treloar, Aviva's retail director, said: "Quote me happy is an online-only insurance brand, specifically designed for internet shoppers - offering fully-comprehensive insurance for lower risk drivers.

"Customers will be able to get quotes, buy insurance, print documents and manage their policies online.

"This new service builds on the success of our existing motor insurance business. It is deliberately distinct from the Aviva brand - which already gives customers the choice of dealing with us directly online, by phone or through an intermediary or other corporate partner. Quote me happy is designed for people who want a good quality product, but are happy to serve themselves."

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Admiral's share price falls despite posting record profits

MOTOR insurance group Admiral has seen its share price tumble, despite posting record half year results which saw revenues coming in at more than £1bn.

The Cardiff-headquartered FTSE 100 business, which employs 4,330 across South Wales and is actively recruiting, saw turnover rise 53% to £1.1bn on the first half of 2010.

Its board also announced a record interim dividend payment of 39.1p per share.

Boosted by a rise in premiums across the sector – although they are now flattening – it also posted record half year pre-tax profits of £160.6m, up 27% on the first six months of 2010

However, a worsening in its combined ratio – a key indicator in the car insurance sector of profitability – impacted on its share price, which closed down on the day 11.83% at 1353p, marking the worst performance on the FTSE 100

On the half year performance, chief executive Henry Engelhardt said: “Over £1bn turnover in six months! It wasn’t so long ago that we were pleased to report over £1bn turnover for a full year. This is an incredible achievement and is credit to the hard work of everyone at Admiral.

“In the UK the momentum of vehicle growth and price rises from 2010 and Q1 2011 carried us through the first half of 2011, although injury claims and their related costs continue to rise in the UK market, something to which we are not immune. As one of the lowest cost providers we are well placed for a future which is shaping up to be the survival of the fittest.”

Outside of the UK, where it has operations in the US, France, Italy and Spain, he said Admiral was continuing the tough job of building sustainable, profitable and growing businesses from scratch, including in France, where it only launched last year.

Having recently added Illinois to Maryland and Virginia, Admiral is currently looking to add another state in US in which to sell car insurance.

Mr Engelhardt said: “On a daily basis the new customers we get from outside the UK are now over 15% of the UK’s new business. Meanwhile consumer preference for price comparison shopping in our European markets is growing”.

Its overseas operations reported losses of £3.1m, which was down on the first half of 2010 when they came in at £4.1m. The combined ratio of its overseas operations was 157%, compared to 183% a year earlier. Anything below 100 denotes profitability – and above, losses.

For the UK, Admiral’s combined ratio was higher than in 2010 (82.99%) at 90.4%.

As a proportion of premiums, claims jumped from 67.8% to 77.5%.

Its diminished combined ratio position was impacted by an increase in insurance claims from previous years, which reduced its ability to release reserves – which only totalled £4m, compared to £17.5m a year earlier.

Despite the less favourable ratio level its UK car insurance, profits rose 28% from £135.5m to £168.2m.

Mr Engeldhart said: “All in all we’re pleased with the numbers for the first half of 2011. As a result, every member of staff will receive £1,500 of free shares in the group, worth over £8m in total.”

He said that the company’s philosophy was not to sit on cash and to return profits to shareholders.

He added: “We feel that if you keep money in a company then management teams tend to waste it. We would rather our shareholders ‘wasted it’ than us.”

Mr Engelhardt said that staff had “done a great job “in sustaining strong growth. He added: “They have again stepped up. It sounds easy, but it is a challenge all the time.”

He said that premium increases were felt in the first quarter but the market was now flattening out.”

Admiral’s price comparison subsidiary, Confused.com, saw profits down marginally on 2010 from £8.8m to £8.2m. However, its revenue of £40m was the highest in any half-year period.

On the impact of its new advertising campaign he said: “It is good but not great. It has steadied the ship and has gained some share back over the last six months. However, it is a rough industry. All the big four, Moneysupermarket, Confused, Compare the Market and Go Compare, make pretty good money, but less than a year ago.”

The big four will face competition from a new entrant into the market next year.

French financial giant Covéa’s, whose UK group of companies includes Swinton, MMA Insurance and recently acquired Provident, is assigning a £30m marketing budget for its new price comparison business – which has yet to be given a name. Based in Llantrisant, it is being headed by the former head of Confused, Debra Williams.

Mr Engelhardt said: “It is an interesting new dynamic in the market. It will be very interesting to see if they make a go of it, waste £30m, or change the economics of one company rival.”

Brokers Numis Securities upgraded Admiral’s shares to buy, while Nomura reiterated its buy recommendation.

Kevin Ryan, an analyst in Investec, said the UK insurance underwriting result was worse than forecast and the rising claims were evidence that Admiral’s ability to significantly outperform the market was diminishing.

Nick Johnson at Numis added it was the first time Admiral had highlighted claims-cost inflation as an issue.

He added: “Given that future profit commission earnings are linked to recent underwriting margins, the comments are bound to reduce earnings’ confidence.”

Admiral’s chairman Alastair Lyons said: “This August marks the 20 year anniversary of our chief executive and chief operating officer (David Stevens) working together.

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UK bank insurance mis-selling complaints jump in H1

LONDON, Aug 24 (Reuters) - Complaints against controversial loan insurance by customers at two
of Britain's top banks rose by 25-30 percent in the first half of this year from the previous six months and may rise further in the current period.

Barclays on Wednesday said there had been a 25 percent rise in complaints about payment protection insurance (PPI) policies. Lloyds Banking Group, the biggest PPI provider, has said complaints rose 30 percent.

Banks face a bill of over 6 billion pounds ($9.8 billion) to compensate customers who were wrongly sold the controversial loan insurance, after the industry lost a legal fight in April.

Analysts are now watching the pace of complaints to assess the final scale of compensation. There are about 12 million outstanding PPI policies. Often the policies were sold to people who would never be able to claim on them.

Lloyds has made a shock 3.2 billion pound provision for compensation, Barclays and Royal Bank of Scotland each took near 1 billion pound provisions and HSBC set aside $509 million.

Overseas banks Santander took a 538 million pound ($887 million) hit and Bank of America has taken a $592 million reserve.

Barclays said it received 73,692 complaints in the first six months of this year about insurance and protection -- mostly about PPI -- up from 59,003 in the previous six months and up 93 percent from the first half of 2010.

It said it expected PPI complaints to rise in the second half of this year.

Lloyds said earlier this month it received 202,384 complaints about general insurance and protection in the first half, up from 156,014 in the previous half-year and more than double the year earlier level.

Banks have to issue complaints data by the end of August.

Barclays said its overall complaints fell by 9 percent in the first half from the previous six months to 251,563. Lloyds said its complaints were down 6 percent to 349,984.

($1 = 0.610 British Pounds)

($1 = 0.695 Euros)

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Prudential Financial approved for China Life Insurance

(Reuters) - U.S. financial group Prudential Financial (PRU.N) has received regulatory approval to set up a life insurance venture in China with a unit of Chinese conglomerate Fosun Group, accessing the country's 1 trillion yuan ($156 billion) life insurance market.

Prudential Financial and Shanghai Fosun Industrial Technology Development Co would set up the venture within the next 12 months, with Prudential's stake capped at 50 percent, in line with regulations, the China Insurance Regulatory Commission (CSRC) said in a statement on its website.

So far, 28 foreign companies, including HSBC Holdings Plc (HSBA.L)(0005.HK), Axa SA (AXAF.PA) and Allianz (ALVG.DE) have entered China's fast-growing, but competitive life insurance market, which is currently dominated by domestic giants China Life (2628.HK)(601628.SS) and Ping An (2318.HK)(601318.SS).

The venture marks the second cooperation between Prudential Financial and Fosun within less than a year, and is the latest move by Fosun to expand into the financial industry.

Prudential Financial announced in January that it would invest $500 million in a private equity fund to be managed by Fosun, representing the biggest third-party investment by the U.S. insurer in its 135-year history.

Fosun, whose businesses range from pharmaceutical to retail and media, has also formed a private equity venture with U.S. buyout firm the Carlyle Group, as it steps up expansion into the financial industry.

($1 = 6.397 Chinese Yuan)

(Reporting by Samuel Shen and Jacqueline Wong)

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HACKERS BREAK IN CITIGROUP INC.

HONG KONG (AP) — Hackers stole account  details of much more than 360,000 of Citigroup Inc.’s U.S. credit card customers in a current data breach, the bank mentioned Wednesday, virtually double the number at first believed.

…..item 1)…..Yahoo! News beta….Citigroup says 360,000 affected by hackers

By KELVIN CHAN – AP Organization Writer | AP – 1 hr 45 mins ago……Thursday June 16, 2011

beta.news.yahoo.com/citigroup-says-360-000-impacted-hacke…

HONG KONG (AP) — Hackers stole account info of more than 360,000 of Citigroup Inc.’s U.S. credit card buyers in a current data breach, the bank mentioned Wednesday, virtually double the range at first believed.

Citi stated final week that about 1 % of its credit card buyers had account data hacked online but did not say exactly how many. The actual quantity of customers impacted was believed to be about 200,000, based on Citi’s 2010 annual report, which mentioned the company had roughly 21 million North American credit card consumers.

But the true quantity was in fact 360,083, the bank said in a statement posted on its web site late Wednesday.

The bank stated it found on Might ten that hackers utilised its Account Online method to access the information for North America Citi-branded credit cards issued in the U.S.

The bank said final week that hackers accessed client names, account numbers and speak to information, such as e-mail addresses.

But they weren’t capable to get their hands on social security numbers, dates of birth, card expiration dates or card security codes, details that can be useful in identity theft.

Internal fraud alerts and enhanced monitoring were positioned on all accounts deemed at threat as soon as the breach was found, Citi mentioned.

Letters have been sent commencing June three to men and women impacted, and 217,657 customers have also been sent new cards, Citi stated. Replacement cards had been not sent to the other individuals because the accounts were closed or they had currently been sent new cards for other good reasons.

Citi mentioned it has notified police and government officials.

&quotFor the security of our buyers, and due to the fact of the ongoing law enforcement investigation, we can not disclose further details relating to how the data breach occurred,&quot it said.

Citi reassured consumers that they weren’t liable for any unauthorized use of their cards and urged them to evaluation account statements to report any suspicious transactions.

It’s the most current in a series of substantial-profile data attacks against big organizations and institutions. The International Monetary Fund stated Sunday that it was investigating an attack on its laptop or computer technique.
Google Inc. said earlier this month that Gmail accounts of numerous hundred individuals had been breached. In April, Sony Corp.’s Playstation Network was the victim of a enormous safety breach that impacted more than 100 million on the web accounts.

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No guesswork, get the facts on retirement planning

IF YOU are over 30, you may recall a time when a regular loaf of bread cost less than $3; when thousands of dollars could buy property; and 'billion' was an abstract monetary concept for most people.

To say then that money in 2011 isn't what it used to be, is to state the obvious. The economists among us will quickly point to the factors at play, beginning with inflation and its degenerative effect on the cash you have in hand, or in the bank. Simply defined, inflation is a rise in the general level of prices of goods and services over a period of time. Housewives understand its power to increase the food bill and, by extension, shrink their purchasing power. Nowadays, financial planners develop formulae to estimate the impact inflation will have on your money in 15 or 30 years' time, a most useful tool for effective retirement planning.

The ability to calculate how much it will cost to maintain a certain lifestyle in the future, is also an essential part of planning for retirement, says Sydney McLennon, assistant vice-president for private clients and portfolio management at Capital & Credit Merchant Bank.

"Every effective retirement plan begins with an estimation of how much you will need to cover your expenses once you stop collecting that monthly pay cheque. From what you tell us, we can determine what you want your lifestyle to be and how much it will cost."

The banking executive said the process involves a formula that takes into account what your interests and needs are likely to be once you turn 65, making allocations for an increase in areas such as health care, where the need is often greater after retirement. "We factor in inflation, your change in needs and lifestyle and create a dollar figure, say $80,000 monthly. We now bring back that money to today's reality and work out what it will cost you on a monthly basis to attain that $80,000 per month in the future," McLennon explains.

The calculation may sound complicated, but the success of your retirement plan and the size of your nest egg depend on some basic things, not least of which are the tools you use to grow your retirement fund, and how well the money is managed.

For many employees, there are pension schemes to which they can contribute, often through salary deduction. But according to McLennon, that pension fund, by itself, is unlikely to provide enough once you leave the world of work.

"Although it's efficient and good, that's just one part of the puzzle. You need to be creating a portfolio where your pension fund is a part of that portfolio," asserts McLennon, pointing to the wisdom of having a diverse mix of products, including real estate, stocks, bonds and even commodities.

For those persons who are not already a part of a registered pension scheme, McLennon recommends an Individual Retirement Account (IRA), considered one of the best instruments to save for retirement.

"The Capital & Credit IRA is extremely flexible. You can start at $1,000 and decide when you want your pension contributions made, whether monthly, quarterly or annually, making it in line with your ability to earn so it won't be so burdensome."

IRA holders may set aside no more than 20 per cent of their taxable income, as stipulated by current pensions regulations. Funds kept in an IRA are tax free, which makes it especially attractive. McLennon explains, though, that only those persons who are not already part of a pension scheme can open an IRA.

"Regardless of whether you're already part of a superannuation fund or self employed, we are ready to start that conversation with you."

Don't wait another moment. Get the facts and the advice you need today and begin to plan carefully for your retirement.

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Spain Approves Pension Bill in Bid to Woo Investors

The Spanish government agreed to raise the retirement age in a renewed bid to restore investor confidence after a 20 billion-euro ($27 billion) plan to shore up savings banks failed to tame the nation’s borrowing costs.

Four months after Spanish workers disrupted transport and broadcasts in a general strike aimed partly at the pension plan, the Cabinet approved a bill to increase the retirement age to 67 from 65, Deputy Prime Minister Alfredo Perez Rubalcaba told reporters in Madrid today. The government, unions and employers reached an agreement earlier today after late-night talks on the bill and changes to wage-bargaining.

Spain’s worst economic crisis in six decades and a jobless rate of 20 percent have quickened the pace at which the social- security system is eating into its surplus. Europe’s debt crisis has also added urgency to the overhaul that comes as lenders including La Caixa, the nation’s second-biggest savings bank, reorganize in response to new capital requirements.

“It’s a pass,” Antonio Garcia Pascual, an economist at Barclays Capital in London, said of the pension bill. “It’s not outstanding but it has the three key ingredients.”

Spanish Labor Minister Valeriano Gomez told reporters today that the pension bill doesn’t aim to cut retirement benefits and its objective is to “stabilize” spending. The government will revise the parameters of the pension system every five years after 2027 to reflect changes in life expectancy, according to a statement from his ministry.
Bond Yields

Ten-year Spanish bonds yielded 230 basis points more than comparable German securities today, up from 229 yesterday and 209 on Jan. 24 when Finance Minister Elena Salgado unveiled the savings-bank plan. The plan features a minimum core-capital requirement of 8 percent that rises to as much as 10 percent for lenders without private investors.

Responding to the new rules, La Caixa said late yesterday it will hand its banking business over to its listed investment unit Criteria CaixaCorp SA, and turn that company into a commercial bank. The shares rose 21 percent at 1 p.m. in Madrid.

The government, fighting to slash the euro region’s third- largest budget deficit to 6 percent of gross domestic product this year from around 9 percent in 2010, had pledged to approve the pension bill today. Salgado said talks with unions can continue as the legislation goes through parliament, where the minority government needs support from smaller parties.
Lawmaker Approval

“It’s a law so it has to go through parliament and in that process it will be possible of course to make small changes,” Salgado said in an interview on TVE on Jan. 26.

The bill allows workers who have paid into the social- security system for 38 1/2 years to retire at 65 years with a full pension rather than the new limit of 67 years, Gomez said. Gomez said the government will also increase the number of working years used to calculate pension benefits to 25 years from 15 years, doing so gradually from 2013 to 2023.

“They didn’t change much to get the unions on board, but the starting point could have been more ambitious,” economist Garcia Pascual said. “The transition is a bit too generous, but pension costs will spike years from now” and for the moment they are “below those of Germany and France.”

Spain spent 95.7 billion euros on contributions-based pensions in 2010, almost 10 percent of GDP. Forty percent of this year’s spending will go to social security as the nation grapples with Europe’s highest jobless rate, according to the budget law. The unemployment rate rose to 20.3 percent in the fourth-quarter, the National Statistics Institute said today.
Pension Benefits

Last year, the difference between employed workers’ social- security contributions and contribution-based pension benefits turned negative, according to data from the Labor Ministry, even as the system posted a surplus of 0.2 percent of GDP, helped by interest earned on a 60 billion-euro reserve fund.

That shortfall emerged five years earlier than expected due to job losses and demographic factors, said Javier Diaz-Gimenez, a professor at IESE Business School who has written on pensions. Without changes, the debt needed to fund the pension deficit would amount to 190 percent of GDP by 2050, he estimates.

“Small, gradual changes in the Spanish system do not solve the problem,” he said by phone. “It’ll be disappointing because they won’t announce a fundamental reform.”

Prime Minister Jose Luis Rodriguez Zapatero, who once pledged to keep raising pensions, has made a policy U-turn since the Greek debt crisis prompted a surge in borrowing costs. Voters and traditional union allies have been alienated by cuts to public wages and social benefits, changes to labor rules and measures to support banks. The agreement reached with unions was the first since the Sept. 29 general strike.

The Socialists, facing regional and local elections in May, would win 18 percent of the vote if general elections were held now, with the opposition People’s Party on 49 percent, according to a poll in El Mundo on Jan. 2. Zapatero will announce this fall that he won’t seek re-election in March 2012, La Vanguardia newspaper reported yesterday.

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