Tuesday, 20 May 2014

JPMorgan, HSBC and Credit Agricole accused of euro rate-fixes


JPMorgan, HSBC and Credit Agricole accused of euro rate-fixes

Competition commissioner Joaquin AlmuniaShould the banks be fined, they will not receive any reduction in penalties, competition commissioner Joaquin Almunia said
The European Commission has accused JPMorgan, HSBC and Credit Agricole of colluding to fix a key euro benchmark borrowing rate - Euribor.
JP Morgan and HSBC will fight the charges. Credit Agricole will study the European Commission's findings.
Penalties for the guilty are up to 10% of annual revenue.
Euribor is a cousin to Libor, which is used to set trillions of dollars of financial contracts from complex financial transactions to car loans.
In December, the Commission imposed fines totalling 1.04bn on Barclays, Deutsche Bank, RBS and Societe Generale as part of the same investigation.
Barclays escaped a fine as it had notified the Commission of the existence of the cartel, and the others were granted a 10% reduction in their fine for agreeing to a settlement.
The EU's competition body said: "The Commission has concerns that the three banks may have taken part in a collusive scheme which aimed at distorting the normal course of pricing components for euro interest rate derivatives."
JP Morgan said it had "co-operated fully with the European Commission throughout its investigation." The bank said it believed that the competition concerns were "without merit", and added it intended to "defend itself fully".
HSBC said: "We intend to defend ourselves vigorously."
Cartel?
The Commission's investigation has centred around concerns that the banks may have manipulated the pricing of interest rate derivatives - financial products which are used by banks to manage risks associated with interest rate fluctuations.
The products derive their value from "Euribor", a benchmark interest rate which is the eurozone equivalent of Libor.
In March 2013, the Commission opened proceedings regarding Credit Agricole, HSBC and JPMorgan, and the investigation as whether they were part of a Euribor rate-rigging cartel is continuing.
Should the banks be fined, they will not receive any reduction in penalties, competition commissioner Joaquin Almunia said.

Netflix to expand to Germany, France and Switzerland


Netflix to expand to Germany, France and Switzerland

Reed HastingsReed Hastings has already brought Netflix to UK, Ireland. Denmark, Finland and Norway
Netflix has announced plans to expand to a further six European countries before the end of the year.
The TV and movie streaming service intends to launch in Germany, France, Austria, Switzerland, Belgium and Luxembourg.
The US-based firm has 48 million subscribers in over 40 countries.
One analyst said the success of the latest rollout might depend on how much content was dubbed into local languages.
"Germany potentially could be quite a difficult market as it has low pay-TV penetration and seemingly low willingness to pay," said Ian Maude from the media consultancy Enders Analysis.
"One thing I'm curious to see in Germany is whether or not it has dubbed a lot of the show for the market because - while French TV has a lot of subtitling - in Germany foreign language movies and TV shows are generally voiced over, and that can be quite an expensive process."
Germany's large number of broadband users - the fourth biggest such population in the world - makes it a potentially lucrative market.
However, Netflix will have to compete against video-on-demand incumbents including Sky Deutschland's Snap, Vivendi's Watchever, ProSiebenSat.1's MaxDome and Amazon Instant Video.
House of CardsCanalPlay has exclusive rights to House of Cards' most recent episodes in France
In France, it faces the prospect of competing against a rival that owns the rights to a series branded a "Netflix exclusive" in other territories: Vivendi's CanalPlay owns the domestic rights to the second season of the drama House of Cards in the country.
Netflix also must contend with the fact that French audiovisual laws require local broadcasters to invest significant sums in domestic content. However, Les Echos newspaper has suggested Netflix might get around this by basing the service in Luxembourg.
For now, the firm has only said it would provide "further details, including pricing, programming and supported devices at a later date".
'Figure out stuff'
California-based Netflix reported profits of $53m (£32m) in its most recent quarter.

Start Quote

We're going to learn as we go”
Reed HastingsNetflix chief executive
Despite previous international launches - including the Netherlands last year and the UK in 2012 - the firm's revenue is mostly generated by US subscribers.
Netflix's most recent figures stated that it had 11.8 million members paying for streaming content outside the US at the end of March but about three times that figure within the country.
The firm has previously said that it became profitable in Canada within two years of launch, but has not released similar information about its other foreign ventures.
However, chief executive Reed Hastings recently said the company recognised that it must tailor the content it provided to each audience.
"We've seen tremendous success in the Netherlands, where we launched six months ago, and that, I think, encourages us about being able to figure out the right programming formula in each nation," he told bank analysts in April.
"We're going to learn as we go. If we're very fortunate, we'll have programmed it completely correctly from day one.
"More likely, we'll figure out some stuff's working, some stuff's not; we'll adjust the formula."

Oil and gas fields in UK could become CO2 dumps, say MPs


Oil and gas fields in UK could become CO2 dumps, say MPs

A North Sea oil rig in 1965The UK is looking to create another, post-oil and gas, North Sea income stream
The UK's exhausted oil and gas fields in the North Sea could be transformed into a lucrative dump for Europe's CO2 emissions, MPs say.
The Energy and Climate Change Committee says nearby nations could capture the emissions from their power stations, then transport the CO2 offshore in pipes.
North Sea rocks that have been sucked dry of oil and gas could be pumped full of the unwanted CO2.
Critics say the idea is fanciful.
But Tim Yeo, the committee's chair, told the BBC that "the key to carbon capture and storage is economics".
"The UK's geology under the North Sea is a potential asset to exploit and if we can find ways of getting another income stream by accepting someone else's unwanted CO2 it might move forward the date when CCS (carbon capture and storage) in the UK is commercially viable," he added.
Mr Yeo also hopes that by forcing CO2 into the crevices containing residual trapped hydrocarbons, the UK will be able to squeeze more gas and oil from depleted reserves.
Overall, his committee is highly critical of the UK government's commitment to CCS.
It believes a new industry could be created to transport and store unwanted CO2.
"Any decline in North Sea (extraction) activity could be compensated for in carbon transport and storage activity," it says.
The idea is being promoted by the Crown Estate, which governs the UK's sea bed.
'Impact'
But Nick Molho from WWF told the BBC: "We were very surprised to see this idea - and surprised to see it is thought that the North Sea has enough capacity for all the CO2 we need to dispose of.
"It seems to be running ahead of itself - let's get the first steps in carbon capture and storage sorted out first."
Tim Yeo MPTim Yeo says capturing and storing carbon is vital
In 2007 ministers launched a competition to kick-start CCS.
To date, it has delivered only initial funding to two projects - a gas plant at Peterhead in north-east Scotland and a coal plant, Drax, in North Yorkshire. The expected start date of CCS has been pushed back from 2014 to 2020.
The MPs say the delay has called into question the credibility of government policy.
Mr Yeo said: "Fitting power stations with technology to capture and store carbon is absolutely vital if we are to avoid dangerously destabilizing the climate.
"These two demonstration projects will not be enough to kick-start the CCS industry or have a significant impact on our carbon budgets,"
The world's first full-scale power plant with full CCS is due to open soon in the US - the CO2 will be used to enhance oil recovery.
The technology has been progressing slowly worldwide, with Norway - previously a world leader, reducing support.
WWF said the government should not plan new fossil fuel power plants under the assumption that CCS would become economically viable.
'Getting it right'
But Energy Minister Michael Fallon said: the UK was ahead of the rest of Europe with the Drax and Peterhead CCS projects, which were "actively undertaking detailed engineering studies ahead of full construction".
He said that as the £1bn being invested in CCS, there would "also be additional support through low-carbon Contracts for Difference for a number of years to come, so it's important we take the time to get our decisions right and follow a robust process",
Mr Fallon added: "Our vision for CCS in the UK does not stop at these first projects.
"We want to see a strong and successful CCS industry able to compete on cost with other low carbon technologies in the 2020s."

Water goes 'missing' with snow loss


Water goes 'missing' with snow loss

Mt Shasta, California, in December 2006. Snow-fed water resources are critically important to the western USANatural '"water towers" - places that hold and release water for society


A new study finds that if temperatures rise and more precipitation falls as rain rather than snow, it will reduce the total amount of water in rivers.
It is a surprising observation. One might expect the timing of water flow to change but not the overall volume.
But this is precisely what scientists discovered when they examined the histories of 420 catchment basins in the US spanning the period 1948-2001.
The researchers report their work in the journal Nature Climate Change.
The study compares places of similar climate and precipitation, but with differing fractions of that precipitation falling as snow and as rain.
And it seems there is a significant difference in total streamflow if the fraction shifts from snow to rain.
"At first we thought there could be all kinds of explanations for this, so we better dig a bit deeper and make sure that this difference between places wasn't being caused by something else," explained Dr Ross Woods from Bristol University, UK.
"We also checked out what happened at the same place between different years, and we found that the years with more snow also produced more streamflow than the years with less snow," he told BBC News.
Frozen ground
The team is now working through a number of possible explanations.
One idea is that the ground is also changing in response to temperature.
Colder conditions will lead to frozen ground, meaning when the snows do melt the water can run direct into streams and rivers.
In contrast, with warmer conditions, more water can be held in the ground for longer, to be later evaporated or transpired by plants. Less of the overall volume of water would then make it to streams and rivers.
"This issue is important because quite a lot of the snow at the moment is in the places we call the 'water towers' - the places that provide water to the great bulk of society," said Dr Woods.
"If the amount of water in the river on average goes down then those people find themselves under more pressure. Irrigation systems or hydropower systems or municipal water supply systems - the total amount of water available to those systems would be less.
"Those communities or systems would need then to adapt to that - to find a way to get by with less water, or else find alternative water sources."
Of course, under a generally warming climate, the overall patterns of precipitation are likely to change as well, with some locations receiving perhaps significantly more or less precipitation, irrespective of the fraction that is falling as snow or as rain.
The effect observed in this study may not therefore have too much relevance in some locations if their total water balance is rising. But in other, currently snowy places where overall precipitation is declining as well, the effect could compound problems.
The team hopes in future work to tease out the mechanisms involved.
Lead author Wouter Berghuijs said: "Hydrologists can take a large number of measurements at an individual site where they can determine for example what part of the flow in the river is due to a recent precipitation event and what part is due to ground water, by taking isotopic measurements of the stream.
"So, by going into great detail at individual places, it would be possible to understand the small-scale processes that underlie the behaviour that we observe," the researcher from Delft University of Technology, The Netherlands, told BBC News.
Headwaters of Tsitika River watershed on Northern Vancouver Island, British Columbia, December 2005. Temperature increases will affect the hydrological system in particular in rain/snow transition zones. It is possible that ground conditions are playing an important role

Study: UK cities becoming mosquito-friendly habitats


Study: UK cities becoming mosquito-friendly habitats

Close -up image of a male mosquito (Image: Science Photo Library)A greater abundance of mosquitoes that act as vectors of human diseases are living in close proximity to people's homes


Changes to UK urban areas provide habitats for mosquitoes, including species known to spread malaria and West Nile virus, a study suggests.
Warmer ambient temperatures and more water containers in gardens are bringing mosquitoes into closer contact with people, say scientists.
UK mosquitoes are human disease-free but the team says more of the insects breeding in urban areas increases the chances of a potential outbreak.
Co-author Amanda Callaghan, an associate professor at the University of Reading's School of Biological Sciences, explained that the study aimed to collect data to see if there was a difference in abundance and diversity of mosquitoes in rural and urban locations.
"We knew that there was an urban heat island effect, and changes in temperature have been known to cause changes in mosquito behaviour and - in some regions, such as southern Europe - diseases have crept into these countries because mosquitoes have changed their behaviour," she said.
Habitat boom
Writing in their paper, Dr Callaghan and colleague Susannah Townroe observed: "Within the UK, [water butts - a container for rainwater] are becoming increasingly common in residential gardens.
"A severe drought and subsequent hosepipe ban in the spring of 2012 across southern and eastern England led to reports of hugely inflated sales of water butt containers," they added.
Water butt (Image: AP)The number of water containers continues to grow as households look to save money and water
"Water butts collect rain from roof guttering along with vegetation, animal detritus... providing both a habitat and food resource for mosquito larvae."
They explained that while individual containers were relatively small, when all the water butts in the area were combined, it represented a "large area of habitat" for breeding mosquitoes.
The authors added: "This, in combination with the [urban heat island] effect... may favour mosquito larval production in urban habitats."
In order to test this idea, the researchers placed water containers in a number of urban and rural residential gardens.
"We found fewer species of mosquitoes in urban environments compared with rural environments, but the species that were there were much more abundant," Dr Callaghan told BBC News.
"The one that was most abundant is calledCulex pipiens, and in other countries C. pipienscarry diseases such as West Nile Virus."
The other species of mosquito that the researchers found in the study's water containers was Anopheles plumbeus, which has been shown to be a "reasonably good vector of malaria".
Dr Callaghan said: "The main finding is that these mosquitoes are right next to people's houses and the Anopheles mosquito we found is a human-biting species and it can transmit malaria.
"Therefore, if someone comes back from their holiday with malaria and they get bitten, it could be transmitted to another person - and that is how you get outbreaks.
"The chances of there being a malaria epidemic in this country at present are relatively low because there has not been secondary malaria here since the 1950s."
Secondary malaria refers to someone catching malaria from another person who has also been bitten by a mosquito.
"I am not saying we are all going to get diseases because we have vectors here, but it is worth keeping an eye on."
Changing behaviour
More than 30 different mosquito species have been recorded in the UK, most of which are resident all year round.
"In rural areas you get more types of mosquito - there are lots of different types of habitats and different species of mosquito like different types of habitat - some of them will favour ditches, others will favour ponds or tree holes etc," Dr Callaghan explained.
"Whereas if you go into an urban environment, you do not have a lot of those habitats so you get a different picture of what species can survive in this environment.
"The Culex pipiens is a well-known urban mosquito, but the Anopheles plumbeus is normally considered to be a tree-dwelling species. But it is changing its habitats from breeding in tree-holes to breeding in man-made water containers.
"This is concerning considering that it is a vector of malaria."
Dr Callaghan said there were thousands of cases of malaria in the UK each year, mostly as a result of people returning from areas of the world where malaria was present, but people were usually quickly treated.
"If malaria is not in your blood for any length of time, the chances of you being bitten and transmitting it are quite low," she said.
"But if more people come back with malaria and there are more mosquitoes that can transmit malaria living by you then that chance increases."

Trip Advisor 'fake reviews' investigated in Italy


Bed in a hotelTrip Advisor reviews hold much sway over consumers' booking choices


Travel-rating service Trip Advisor is being investigated in Italy over concerns the site is not doing enough to prevent fake reviews.
The Italian competition authority said it had had complaints from consumers and businesses about the website.
It has launched a separate investigation to see if agreements booking sites Expedia and Booking.com hold with hotels are preventing consumers from getting better deals.
The companies have yet to comment.
Trip Advisor is a highly influential site, where a volume of positive or negative reviews can strongly affect tourism businesses.
The Italian competition authority will try to establish whether Trip Advisor has sufficient measures in place to detect reviews made by people who had not visited the place in question.
The watchdog also said it was looking at whether Trip Advisor did enough to distinguish between content submitted by travellers and posts paid for by hotels and other travel businesses.
'Limit competition'
In a separate investigation, booking websites Expedia and Booking.com are to be investigated over clauses they put in place for hotels that are listed on the sites.
"The analysis centres on clauses applied by Booking and Expedia that prevent hotels from offering better prices and conditions through other online services and, generally, any other booking system (including hotels' own websites)," the watchdog said.
"The authority believes the use of such clauses by the main two platforms on the market may significantly limit competition."
The announcement comes in the same week that Italy launched an investigation into Google, Apple, Amazon, and games publisher Gameloft over "free-to-play" games.
The watchdog said it had concerns that the games did not make it clear how much it may cost to progress in the game.
"Consumers could wrongly believe that the game is entirely free and, in any case, that they would know in advance the full costs of the game," the watchdog said.
"Moreover, insufficient information seems to be provided to consumers about the settings needed to stop or limit the purchases within the app."

Computer and Video Games online magazine facing closure


Computer and Video Games online magazine facing closure

First issue of Computer and Video GamesThe magazine's first issue cost 75p


Computer and Video Games (CVG), which in 1981 was the world's first magazine dedicated to gaming, is facing closure.
The title, which has been online-only since 2004, may stop publishing at the end of a 45-day consultation period that began on 14 May, sources said.
However, its publishers Future are also believed to be looking into selling off the brand.
The magazine is behind the gaming industry's Golden Joystick Awards, a yearly event held since 1983.
In a statement, Future said: "We are currently exploring various options around how to evolve the CVG brand in particular and the market leading Future Games portfolio in general, in order to keep successfully meeting the needs of our consumers."
'Everything changed'
The first issue, published in November 1981, billed itself as the "first fun computer magazine" and cost 75p.
Its cover story was about Space Invaders, while a competition gave readers the chance to win a Vic computer, an 8-bit home computermade by Commodore.
The monthly magazine stopped publishing in 2004, with the focus turning to its website which had been up-and-running since 1999.
In 2008, Future re-launched the printed magazine as a bi-monthly title, but it stopped publishing in 2009.
As well as CVG, Future also owns other prominent gaming brands, including GamesRadar and PC Gamer.
Future recently launched a separate games website, Kotaku UK - a localised version of the already established Kotaku gaming news site owned by US firm Gawker Media.
CVG issue 1The first issue, in November 1981, promised a magazine that did not talk about hardware, but entertainment instead
1/5
Veteran games journalist Rik Henderson, from Pocket-Lint, said if CVG is closed it will be missed by many.
"Everything in video gaming changed when CVG first hit the shelves," the former GamesMaster presenter said.
"Everything else around that time was either a dedicated machine-specific magazine, or there were small games sections in general computing magazines.
"There was nothing really saying 'look at this world of gaming'."
'Big legacy'
Early issues of the magazine were seen as being instrumental in helping small-time games developers to get their titles out there, said Mr Henderson - a trend that he thought was beginning to re-emerge as apps and mobile gaming have taken off.
But he argued that in a global, online publishing market, the brand's strength did not extend far enough.
"Something had to give," he said.
"Future have quite a portfolio of games websites, but everyone's fighting for a very small pot of advertising.
"CVG does really well - but it just didn't fit in that portfolio."

Microsoft launches larger Surface Pro 3 to rival laptops


Microsoft launches larger Surface Pro 3 to rival laptops

Michelle Fleury tries out Microsoft's new tablet, the Surface Pro 3


Microsoft has unveiled the Surface Pro 3 - a bigger-screened, faster Windows 8 tablet than its predecessor.
The new model features a 12in (30.5cm) touchscreen, 38% larger than before.
The firm boasted that at 9.1mm (0.36in) thick - without an optional clip-on keyboard - it becomes the "thinnest PC" to be powered by one of Intel's higher-end Core processors.
One analyst said he believed there was pent-up demand for such a device in the corporate world.
However, the platform has previously been outsold by rivals.
Surface Pro 3Microsoft says the Surface Pro 3 is designed to replace a laptop
"The question that needs to be asked and answered is, 'Why hardware?'" said chief executive Satya Nadella at the launch event in New York.
"We clearly are not interested in building refrigerators or toasters. We are not building hardware for hardware's sake.
"We are not interested in competing with our OEMs [original equipment manufacturers].
"In fact, our goal is to create new categories and spark new demand for our entire ecosystem. That's what inspires us and motivates us with what we are doing in our devices and hardware."
According to research firm IDC, Apple, Samsung, Asus, Lenovo and Amazon have each outsold Microsoft with their tablets.
IDC says that the Surface platform as a whole accounted for just 1.5% of global tablet shipments - representing about 640,000 units - over thefirst three months of the year, down from a 1.8% share for the same period in 2013.
However, Microsoft is marketing the machine as being a "laptop replacement" - comparing it on stage to one of Apple's lightweight laptops rather than the iPad - and IDC research director John Delaney suggested it should be judged on those terms.
Satya NadellaMicrosoft's chief executive Satya Nadella introduced the New York event
"To talk about it having a small percentage of the tablet market partly misses the point, because it's designed to appeal to PC buyers," he told the BBC.
"I think there's pent-up demand for something that does the job of a PC, that's light and thin, and that's cheaper than something like the MacBook Air. If the Surface Pro 3 also delivers good battery life, then that's a package that could resonate with a lot of buyers
"We're also seeing enterprises looking to replace at least some of their PCs with a portable touchscreen product that's compatible with their existing Microsoft applications and infrastructure software. That's another market to which the Surface Pro 3 could appeal."
The basic Surface Pro 3 will cost $799 (£475), compared with the low-end MacBook Air that costs $899.
Microsoft says the battery life is "up to nine hours", 10% more than the Surface Pro 2.
RT no-show
Rumours that Microsoft would unveil a Surface Mini - powered by its Windows RT operating system - proved unfounded.
Microsoft keyboardMicrosoft said it had responded to criticism by designing a bigger trackpad for its click-in keyboards
The RT side of the Surface business has previously struggled, with Microsoft having at one point to write-down the value of unsold stock by $900 (£534m) after it introduced an unplanned price cut.
Windows RT tablets run on ARM-based chips - giving them longer battery life but a smaller library of compatible software than machines using Intel or other x86 processors.
Adobe's image editing software Photoshop - which was shown off at the launch running on the Surface Pro - is one of RT's notable missing applications.
One industry watcher said he would not be surprised if Microsoft now decided to focus its Windows hardware efforts exclusively on its newly acquired Nokia handset business and the Surface Pro line-up.
"I think the RT experiment has now passed," said Ranjit Atwal, research director at Gartner, a tech consultancy.
"Bringing ARM and RT together really hasn't worked, so I wouldn't be surprised if it was phased out."

Rachmaninov manuscript sells for £1.2m


Rachmaninov manuscript sells for £1.2m

Rachmaninov’s Second Symphony in E Minor, Op.27The Second Symphony is considered to be one of Rachmaninov's greatest compositions


A manuscript handwritten by Russian composer Sergei Rachmaninov of his Second Symphony in E Minor, Op 27, has sold at auction for £1.2m.
The 320-page score was presumed lost after its premiere in St Petersburg in 1908, until it was discovered in a private collection in 2004.
It is thought to be the only surviving handwritten manuscript of the symphony in existence.
The Second is considered to be Rachmaninov's greatest symphony.
Sotheby's said the manuscript was bought by a private collector.
Composed in Dresden, where the composer lived from 1906 - 1909, it was created for a series of concerts run by Rachmaninov's cousin.
After the first performances in St Petersburg and Moscow, it is believed the orchestration was revised, making the manuscript the last remaining evidence of Rachmaninov's original vision.
The full orchestral score features many differences from later scores, and it is notated in black ink with numerous deletions, corrections and annotations throughout, including a few bars of new music.
The manuscript was previously due to go up for sale at Sotheby's in 2004, but was withdrawn after members of Rachmaninov's family claimed to be the true owners, saying there was no evidence of the composer ever having sold it during his lifetime.
A settlement was later agreed in 2005 and the score has since been on display at the British Library.