Facebook Revenue Grows By A Third To £790m

Facebook's revenue has grown by almost a third over the last three months to £790m ($1.26bn), according to its latest results.

The 32% increase during its third quarter came as the company reignited advertising growth with the help of larger-than-expected gains in mobile.

The company's shares leapt 13% to £13.62 ($21.97) in after-hours trading on Tuesday after the rise was announced.

Facebook saw advertising revenue increase 36% year-on-year to £684m ($1.09bn), but revenue from its payments and other businesses increased just 13% to £110m ($176m).

Mobile revenue made up 14% of total advertising sales, which analysts said came in above their expectations.

Social media expert Caroline Baxter said: "With mobile usage growing exponentially, Facebook has to find a way to monetise more effectively without crowding the limited space there is.

Mark Zuckerberg highlighted the increase in revenue from mobile phones

"The fact that (Facebook chief executive) Mark Zuckerberg led with mobile in his statement shows how important it is.

"Despite signing up its one billionth user earlier this month, Facebook has experienced a phenomenal fall from grace since its IPO.

"But these stronger than expected numbers suggest that Facebook has maybe started to find its way. But it still faces a major challenge.

"One billion users is both Facebook's biggest asset and its biggest liability.

"A seventh of the world's population is a lot of people to get on the wrong side of as Facebook seeks to maximise the amount it makes through paid advertising to satisfy its increasingly vocal investors."

The world's most popular online social network company posted a net loss of £37m ($59m), in the three months up to September 30.

It reported a profit of £142m ($227m) a year earlier.

Facebook explained the loss as a provision for income tax.

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Unions 'Strike Out' At Reform Proposals

The TUC has rounded on proposals to reform trade union laws, claiming they would weaken union members' voices and potentially risk escalating disputes.

The changes recommended by business lobby group the CBI include allowing employers to offer pay settlements directly to workers to resolve long running rows.

It also called for statements from employers and unions, along with the full consequences of any industrial action, to be placed on ballot papers.

The CBI argues the laws, which have changed little since the 1980s, fail to reflect the modern workplace and too often empower union leaders at the expense of staff.

CBI deputy director general Neil Bentley said it was right that firms be allowed to offer pay settlements directly to their staff, claiming unions were too often "obstructing" a reasonable deal.

"These changes are simple, and would underpin positive improvements in the way that employers, unions and employees work together, leading to closer cooperation and engagement.

"Like the changes of behaviour the new employment relationship requires of employers, they will put the ordinary member in charge."

TUC General Secretary Brendan Barber said: "The TUC has always been in favour of better regulation to reduce red tape for unions and promote greater workplace democracy.

"One obvious way to do this is to enable electronic voting in ballots, but the CBI is curiously silent about this idea.

"Another is to review the laws that stand in the way of union members deciding democratically to take industrial action as a last resort, such as the unnecessary technical requirements that provoke unfair intervention from the courts.

"The CBI proposals would actually weaken employees' voice, and some would make employment relations at sensitive times much harder to handle."

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Argos Overhaul Could See 75 Stores Shut

Argos has said it will close 75 stores in the UK over the next five years as it unveils a transformation plan for the business.

The retailer's parent company, Home Retail Group, made the announcement as it reported a 37% fall in group pre-tax profit to £18m in the six months to the start of September.

Argos made only £3.3m during the period.

Home Retail said it had reviewed Argos' 739 stores on the basis of several factors, including profitability and attractiveness of location.

"As a result, it is likely that Argos will close or relocate at least 75 stores as their leases come to an end over the next five years," the company said in a statement.

A review of the business highlighted a "clear opportunity" to invest more in digital technologies, Home Retail Group's boss said.

It will also reduce the circulation of the traditional Argos catalogue, which was launched in 1973. 

"The transformation plan aims to deliver growth by repositioning Argos as a digitally-led business from a catalogue-led business, leading the market growth of digital commerce through online, mobile and tablet, and offering customers more products with the fastest, most convenient fulfilment options," chief executive Terry Duddy said.

"This plan provides the right approach for Argos to achieve a long-term sustainable performance and profit recovery." 

The company said it was aiming for £4.5bn of sales for Argos by 2018 and would invest £100m a year in the business over the next three years to achieve this.

Home Retail Group's shares rose more than 8% in morning trading following the announcement.

But Neil Saunders from retail analysts Conlumino said a big question mark remains over the sustainability of Argos' business model.

"On the surface, its review looks sensible and has credibility," he said.

"However, executing the strategy will not be easy and there are a number of challenges Argos will need to address."

He said the company will have to create a superior digital experience for consumers, make sure it remains high in shoppers' minds, and has a unique edge to its product mix.

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Samsung Unveils Smart PC With Windows 8

Samsung has unveiled its latest smart PC which is powered by the upcoming Windows 8 software.

The new models of the Ativ computer, which can be transformed from a laptop into a tablet at the touch of a button, run Microsoft's hotly-anticipated new operating system.

The device weighs 744g (1.6lbs), has a 29.5cm (11.6-in) touchscreen and is less than a 1cm (0.4in) thick.

The South Korean company says it has an estimated battery life of 14.5 hours.

The new device pictured on stage at the Samsung launch event

Windows 8 allows users to tap and swipe the screen to start programs, similar to Apple's iOS software.

A detachable keyboard can be removed by pressing a button.

Samsung's Nam Seong-Woo described it as "another step in PC evolution".

The firm expects 10% growth in PC sales this year as a result of the hybrid laptop-tablet PCs.

The device will be available from October 26 when Windows 8 is scheduled to be launched.

It is unclear how much it will cost in the UK.

Apple, Microsoft, Amazon and Google are among the other firms trying to take control of the tablet market.

On Tuesday evening, Apple unveiled a smaller version of its iPad tablet computer.

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Equal Pay: Women Win Landmark Ruling

Women who earned less than men on the same pay grade when they worked for a local authority have won a battle for equal pay compensation at the UK's highest court.

The Supreme Court said more than 170 former Birmingham City Council employees could launch compensation claims in the High Court.

Lawyers say the judgment could have "huge implications".

The Supreme Court's decision follows a Court of Appeal ruling in the women's favour.

The "historic" ruling was made at Britain's highest court

Judges heard that 170 women were among female workers denied bonuses similar to those handed out to employees in traditionally male-dominated jobs such as refuse collectors, street cleaners, road workers and grave-diggers.

The court was told that, in 2007 and 2008, tens of thousands of pounds were paid to female council employees to compensate them.

More payments have also been made to women who took cases to an employment tribunal.

But only workers still employed or who had recently left were eligible to make claims in a tribunal.

Those who had left earlier were caught by the six-month deadline for launching claims.

To get around the deadline, the women started actions for damages in the High Court, which has a six-year deadline for launching claims.

The city council attempted to have those claims struck out, arguing that under equal pay legislation such claims could only be entertained by an employment tribunal.

Former care assistant Pam Saunders said she was "over the moon" with the decision, adding: "It's thousands of pounds that we've lost. Whatever we get is a bonus."

Law firm Leigh Day & Co described the ruling as "historic".

In a statement it said the judgment "effectively extends the time limit for equal pay claims from six months to six years, the biggest change to equal pay legislation since it was introduced in 1970, with huge implications for thousands of workers".

It said it is bringing claims against Birmingham City Council on behalf of 174 claimants, with another 1,000 claims pending in Birmingham alone.

The firm said that "there are also thousands more claims in other areas around the UK being handled by Leigh Day & Co awaiting this decision".

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Struggle Ahead As Recession Nears End

As the UK prepares to exit the longest double-dip recession since the 1950s on Thursday, there is growing evidence of a fierce battle ahead to sustain economic growth.

While British manufacturing output reached its lowest level for three years this month, another survey indicated the eurozone was losing its struggle to keep its head above water - with Germany increasingly suffering the effects of the single currency crisis.

The pace of the decline in economic activity was even worse in France.

Markit's Composite Purchasing Managers' Index (PMI), which polls around 5,000 businesses across the 17-nation bloc and is viewed as a reliable growth indicator, fell to 45.8 this month.

That was the lowest reading since June 2009 for the index, which measures growth above 50.

The contraction in manufacturing output in the UK was identified by the business lobby group the CBI, which found that companies were increasingly concerned by political and economic problems abroad.

17% of manufacturers reported a fall in export orders while total orders also tumbled.

The proportion of firms blaming political and economic conditions abroad for a lack of orders rose from 25% in the three months to July to 34% in the most recent period.

Howard Archer, chief UK and European economist at IHS Global Insight, said the survey "reinforces suspicion that the UK still faces a major task in developing sustainable recovery" after an expected return to economic growth in the third quarter.

Economists have forecast the Office for National Statistics to confirm UK GDP growth of around 0.6% between July and October - largely thanks to a lack of Bank Holidays which harmed output in the two previous quarters.

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Bernanke's Hometown Struggles In Downturn

For most Americans, Dillon in South Carolina is just another small town you pass by on the road from New York to Miami.

But take the turning off Interstate 95 and you will find yourself in a slice of small-town America that is feeling the economic downturn more than most.

Unemployment is almost 14%, compared to a national average of 7.8%. Most of the traditional local industries - cotton and tobacco farming and small-scale manufacturing – have withered away.

And although the freeway and the railroad still run through town, you get the feeling that while people might have stopped by before, increasingly they just don't bother.

But before you get the impression that this is just another forlorn southern town, there is something different about Dillon.

It is the hometown of the very man whose job it is to do something about the economic crisis and the unemployment problem facing America - the Federal Reserve chairman Ben Bernanke.

Unemployment in Dillon stands at 14%

Mr Bernanke grew up in Dillon, studied at the high school, where he taught himself calculus, and eventually graduated to Harvard. His family owned a pharmacy on Main Street, although it has now been converted into a bar.

He is something of a celebrity here - none of the locals has a harsh word to say about him. Perhaps for them he is a reminder that it is possible to get to the top, no matter where you begin.

But despite their enthusiasm there are mixed feelings nationwide about his policies.

Mr Bernanke has come under fire for quantitative easing (QE), under which the Fed is buying up $40bn (£25bn) of troubled bonds every month.

Some in Washington complain that he has failed, so far, to get the economy going again.

Mitt Romney has said he would not reappoint Mr Bernanke for a second term in office if he were elected president.

Walking through his hometown, you do not have to go far to encounter reminders of what has gone wrong.

Parts of the high school are in disrepair. Mr Bernanke's own childhood home was sold in a foreclosure sale a few years back - though the family had sold up some years previous to that. Locals complain that they have to leave town to find a job.

Even South of the Border, the rather surreal Mexican-themed roadside amusement park where (honestly) Mr Bernanke found his first job, looks rather desolate - although its proprietor insists this is because it is low season rather than because it has fallen on hard times.

Ed Conway with Mr Bernanke's uncle Mort

The people of Dillon are an intensely charming, relentlessly optimistic bunch. Most of them really are on first-name terms.

Every Friday they get together to cheer the high school football team, the Wildcats who are one of the best in the state.

But, like the rest of America, they are still struggling to come to terms with a new and unforgiving economic climate.

The problem is that they have had to contend with two successive blows.

The first was the impact of globalisation, as millions of jobs were offshored to China and elsewhere.

The second was the financial crisis, which has made it extremely difficult for any small business owner or household to borrow the money they need to move on with their lives.

In fairness to Barack Obama, neither of these issues can be laid at his door, but he is nonetheless feeling the consequences.

Economics moves at a glacial pace - it will take many more years for the US to get back to full strength - just as it did in the 1930s.

But the public are already disappointed that not enough progress has been made.

So Mr Obama is not the most popular politician in town - even if his rival does want to get their hometown boy out of the Fed.

Tonight Mr Bernanke will decide whether to continue with QE. The likelihood is that he will - which will only further infuriate his critics.

But as far as his uncle Mort, the last Bernanke still living in Dillon, is concerned, when historians come to look at the crisis again, they will conclude that his nephew saved the economy.

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Sky Sources: Ford To Close Southampton Plant

Ford is planning to close its Southampton factory as part of its restructuring in Europe, according to Sky sources.

The announcement is expected on Thursday, when Ford's chief executive Alan Mulally is due to hold a business briefing call, and company management meet with union representatives in Essex. 

The company said this was speculation.

Ford's Swaythling factory, which has built its iconic Transit vans since 1972, employs around 500 people.

But the future of the site has been uncertain since workers began working single shifts in 2009.

It is a relatively small part of the company's UK operation, which employs 11,400 people at factories in Dagenham, Halewood, Bridgend and Southampton.

The news comes after the company confirmed it would close its "under-utilised" factory in Genk, Belgium, resulting in 4,300 job losses.

Workers gathered outside the Belgium plant following news of its closure

"Ford announced its plans to end production at a major production plant in Genk, Belgium, by the end of 2014," the company said in a statement, adding that the closure would entail a "reduction of approximately 4,300 positions".

Ford of Europe's chief executive Stephen Odell added: "The proposed restructuring of our European manufacturing operations is a fundamental part of our plan to strengthen Ford's business in Europe."

In another development for Europe's carmaking industry, the French government offered Peugeot Citroen a 7bn euro (£5.6bn) lifeline following another drop in sales.

The Paris-based company said it was also close to agreeing a 11.5bn euro (£9.3bn) refinancing deal with creditor banks, in addition to the state guarantees, for its lending arm Banque PSA Finance.

Following the announcement, Peugeot shares fell 6.5% - hitting their lowest levels since 1986.

Car sales in Europe have slumped as consumers in the region find their budgets hit by unemployment and government austerity.

Earlier this month, industry figures revealed that the market shrank at its fastest pace for 12 months in September. 

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Ministers Lure Spanish To Buy Admiralty Arch

By Mark Kleinman, City Editor

Admiralty Arch, one of Central London's most famous landmarks, is to be sold to a Spanish property developer in a deal expected to net more than £60m for taxpayers.

I understand that Rafael Serrano has seen off competition from rival bidders including state-backed funds from the Gulf states of Abu Dhabi and Qatar, as well as the billionaire Reuben brothers.

The deal, which is expected to be announced by the Cabinet Office this week, will involve Mr Serrano acquiring a 70-year lease on Admiralty Arch, which he will then spend tens of millions of pounds on converting it into a hotel.

Admiralty Arch, which links Trafalgar Square and the Mall, marked the centenary of its construction this year. It was commissioned by King Edward VII in memory of his mother, Queen Victoria.

Prime Investors Capital, Mr Serrano's vehicle, has been involved in other London real estate projects. It built the Bulgari hotel which opened recently.

The sale of Admiralty Arch forms part of a broader push by the Government to generate revenue from its vast property portfolio. It set up a specialist unit, called the Property Executive, to take a more commercial approach to managing publicly-owned real estate assets, although there have been relatively few disposals so far.

A Cabinet Office spokeswoman said: "Leasing Admiralty Arch will preserve the heritage of the building, provide options for increasing public access, and offer value for money for the taxpayer. This is part of a wider programme of reform that resulted in cash savings of £5.5bn last year. We will be making an announcement on the future of the Arch shortly."

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Dyson Launches 'Corporate Spy' Action

Dyson has launched High Court proceedings accusing a German rival of planting a mole within its high-security research and development department.

The British engineering firm, behind bag-less vacuum cleaners and the Airblade hand dryers, claims Bosch was handed secrets by an individual for up to two years.

The alleged rogue employee, who is reportedly Chinese, is said to have worked at Dyson's facility in Malmesbury, Wiltshire.

It is said the spy was one of 100 engineers working on Dyson digital motors, which are key to the firm's cordless technology and Airblades.

The company claims secrets were also passed to Bosch's Chinese motor manufacturer and that Bosch's vice president Dr Wolfgang Hirschburger was aware of the engineer's employment.

Bosch Group, which has its UK headquarters in Middlesex and develops automotive and industrial technology, consumer goods, and building technology, declined to comment.

Dyson believes Bosch paid the mole through an unincorporated "business" created specifically for this purpose.

Mark Taylor, Dyson research and development director, said: "We have spent over 15 years and £100m developing high-speed brushless motors, which power our vacuum cleaners and Airblade hand dryers.

"We are demanding the immediate return of our intellectual property."

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