Smartphones Push UK Online Ad Revenue Past £5bn

Advertising revenue from UK smartphones grew at 10 times the rate of other online platforms in 2012, according to a new report.

Although still relatively new, the sub-sector now accounts for just under a tenth of the total advertising spend, which has broken the £5bn barrier for the first time.

The Internet Advertising Bureau (IAB) said a study conducted by PwC showed spending on online advertising reached £5.42bn in 2012.

Overall advertising spending on the internet jumped 12.5% last year, defying a flagging economy as companies battled to reach consumers spending more time on smartphones and tablet computers.

The study, which used data from companies that had provided information the previous year, said internet advertising spending rose £607m on 2011, with some £323m due to an increase in mobile advertising.

Britain has led the way in moving advertising from traditional areas like newspapers and radio to the internet.

A high take-up of broadband and the rise of smartphones and tablet computers which allow users to access the internet on the go have helped the shift.

"Advertisers are increasingly buying integrated campaigns across online and mobile rather than regarding mobile as an afterthought," director of research and strategy at the IAB Tim Elkington said.

With around two-thirds of adult Britons owning a smartphone as of December 2012, mobile advertising now accounts for almost 10% of all digital ad spending compared with about 1% in 2009.

Video advertising grew 46% to £160m, accounting for 12% of online and mobile display in 2012.

Demand for mobile adverts is likely to increase after auctions for next-generation 4G airwaves earlier this year, which are set to deliver speeds more than five times faster than 3G services.

These services will make downloading high-resolution video easier and enable better multi-tasking on the latest smartphones and tablets.

EE, Britain's biggest mobile operator, said it was now on track to sign up one million customers for its 4G service by the end of the year.

The consumer goods sector overtook the finance sector as the biggest spender on digital display advertising - accounting for almost 16% of display ad spend in 2012.

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Unicef: Austerity Risks Children's Prospects

British children's prospects trail behind many of their European neighbours and current Government policies are making it worse, a UN organisation has warned.

Unicef's report on child well-being placed the UK 16th out of 29 developed countries, but it ranked much lower on key indicators including involvement in further education (29th), teenage pregnancy (27th) and youth unemployment (24th).

The children's rights organisation warned that a generation of British teenagers is being "sidelined" by the Government's austerity agenda and called for more state investment in young people.

Anita Tiessen, deputy executive director of Unicef UK, said: "There is no doubt that the situation for children and young people has deteriorated in the last three years, with the Government making policy choices that risk setting children back in their most crucial stages of development.

"With the UK ranking at the bottom, or near the bottom, of the league table on teenage pregnancy and young people not in education, employment or training, we know that many are facing a bleaker future.

"While children and young people will be the first to bear the brunt if we fail to safeguard their well-being, over time society as a whole will pay the price."

The UK has actually crept up the child well-being tables since Unicef's last report in 2007, which branded Britain the worst place in the developed world to be a child.

But the organisation warned that the improvement seen under the previous Labour administration risks being reversed by the Coalition cuts programme.

It cited research by the Family and Parenting Institute and Institute for Fiscal Studies predicting that 400,000 more children will be in poverty by 2015/16 due to austerity measures.

The new report draws on statistics from 2010 and shows a general improvement in children's experiences over the first decade of this century, compared with the previous scorecard, which looked at data from 2001/2.

But the brighter picture for younger children is not matched among teenagers, who remain more likely than their peers in other developed countries to drop out of education and get involved in underage drinking and teenage pregnancy.

The table was topped by the Netherlands, then Finland, Iceland, Norway and Sweden. Romania was ranked last.

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Horse Drug Found In Asda Corned Beef Products

Asda has recalled batches of its "Smart Price" corned beef after tests found low levels of veterinary medicine Bute in some of the products.

All batch codes of product affected - 340g tins of 'Smart Price' Corned Beef - have been recalled.

Customers who have bought the 340g tins, with any date code, have been urged not to eat the corned beef but to return it to the supermarket.

It comes just over a month after Asda withdrew the same product after tests found more than 1% equine DNA.

Further sampling and testing has revealed the presence of low levels of phenylbutazone - used in veterinary medicine as a pain-killer or anti-inflammatory.

Asda has recalled Smart Price Corned Beef

A statement from Asda said: "In March 2013 we withdrew tinned Smart Price Corned Beef (340g) after receiving a positive test for horse DNA above the 1% trace level set by the Food Standards Agency (FSA).

"Today, 9th April 2013, tests on further batches have shown a positive result for very low levels of horse medication called phenylbutazone, also known as bute, at four parts per billion.

"The FSA has reassured us that the quantities we've found pose a low risk to human health."

It added it was recalling tins of Chosen By You corned beef as a precaution because it was made in the same factory. The product had not tested positive for phenylbutazone.

The FSA said no other Asda products are thought to be affected and that customers who had bough the corned beef should contact the supermarket for a refund.

It added that while animals treated with bute should not enter the food chain, the risk of damage to the health of anyone who ate the meat was "very low".

Chief medical officer Professor Dame Sally Davies previously said the levels of bute found in horse carcasses meant a person would have to eat up to 600 burgers, containing 100% horsemeat, every day to come close to consuming a human's daily dose of the drug.

A Defra spokesperson said: "Consumers have a right to expect that food is exactly what it says on the label.

"While bute presents very low risk to human health, the Food Standards Agency is investigating this specific horsemeat contamination case and will take action as necessary." 

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Fracking Earthquake Fears Dismissed By Study

Fracking: The Pros And Cons

Updated: 2:51pm UK, Thursday 13 December 2012

Opinion about fracking is bitterly divided amid fears of its environmental impact. Here are the key arguments.

What is fracking?

Hydraulic fracturing - or fracking - involves drilling into the ground. Drills go down and then sideways into areas of gas-bearing shale. Small charges are used to blow holes in the walls of the well before water and chemicals are pumped in at high-pressure to shatter the rock. This releases natural gas, formed from deposits of mud, silt and other matter that is stuck in pores within the rock layers, which is then pumped up to the surface.

The Pros

Energy security: Using Britain's own natural gas could provide a major proportion of Britain's energy needs and reduce the country's reliance on imports. Well operator Cuadrilla Resources estimates the Bowland Basin prospect site in Lancashire contains as much as 200 trillion cubic feet of gas. If even a fraction of that is extracted, Cuadrilla says it could make a significant contribution to Britain's energy supplies.

Availability: Britain has high resources of shale gas in areas including the Pennines. It could be an alternative to other fossil fuels and be worth billions of pounds.

Lower prices: There have been claims that the use of shale gas could result in lower energy costs, although the Government's own advisers have now cast doubt on the prospect.

Economic boost: Cuadrilla, the only company currently with a fracking licence, says it could create tens of thousands of jobs and generate significant tax revenue.

The Cons

Safety fears: Cuadrilla's testing in Lancashire caused small tremors in Blackpool in 2011 although there was no structural damage. Strict measures will now aim to minimise any risks.

Contamination: Environmentalists believe the process risks polluting water suppliers with chemicals. In the US, there have been reports of dangerous methane leaks, toxins from extraction plants escaping, sick animals and tap water turning grey. Cuadrilla denies the British water supply could be spoiled and insists fracturing fluid cannot escape from the rock.

Visual impact: There are concerns about drilling and hydraulic rigs, and general industrial development, in areas of natural beauty - although this also applies to many renewable projects.

Shift of focus: Proponents say shale gas could be a transitional fuel that helps to bridge the energy gap but campaigners insist attention should be on developing renewable energy. Environmental groups also claim fracking will affect efforts to slash carbon emissions.

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KPMG 'May Be Investigated' Over HBOS Role

The independent audit regulator has announced it might launch an investigation of KPMG over its accounting role at HBOS in the run-up to the bank's failure.

The Financial Reporting Council (FRC) said it will consider the probe in the wake of a damning report on the bank's collapse and taxpayer bailout.

A spokeswoman for the body said: "The FRC will consider the Parliamentary Commission and FSA reports to identify whether there is a case for an investigation under our powers."

KPMG believes its auditing of HBOS was sufficient and told Sky News: "We stand by the quality of our audit work at HBOS."

The news of a possible investigation of KPMG comes after the FBI launched an investigation into alleged insider trading involving one of its partners in the US. The two inquiries are not connected.

Meanwhile, pressure continues to mount on two members of the 'HBOS Three', after former chief executive Sir James Crosby decided to give up his knighthood and a portion of his £580,000 pension.

Ex-chairman Lord Stevenson and Andy Hornby were also urged to offer sacrifices by members of a Parliamentary commission in the wake of the critical report on the bank collapse and £20.5bn bailout.

According to the Financial Times, Downing Street has said it was now a "matter for their consciences and judgment".

Mr Hornby, who was in charge at the time of the taxpayer-bailout remains CEO of gambling firm Gala Coral, which is owned by three private equity firms.

The 'HBOS Three' - Lord Stevenson, Sir James Crosby and Andy Hornby (l-r)

The three former bosses who ran HBOS in the run-up to its dramatic collapse were found to be ultimately to blame for "catastrophic failures of management", according to the commission's report.

The men's "toxic" misjudgments were blamed for the bank's downfall at the height of the financial crisis.

Lord Stevenson has come under heavy fire, having infuriated the commission by claiming reckless lending at HBOS was not his fault because he was "only there part time".

The commission said it was wrong that Peter Cummings was the only former HBOS director to have been penalised by the FSA, after being fined £500,000 and banned for life from working in the City last September.

It called on the new City regulator to consider barring Sir James, Mr Hornby and Lord Stevenson from taking up any role in the financial sector.

Sir James said the report made for "very chastening reading", and wanted to give up £174,000 - a total of 30% - of his pension.

Sky News City Editor Mark Kleinman revealed on Wednesday night that Sir James had stepped down as non-executive director of catering firm Compass Group.

The former bank boss still holds his knighthood as he cannot himself renounce the title, which was given to him after leaving HBOS in 2006.

Sir James, who stepped down from his role with private equity firm Bridgepoint last Friday, said he was "deeply sorry" for what happened at HBOS and the "ensuing consequences" for the bailed-out bank's staff, shareholders and taxpayers.

For his knighthood to be withdrawn, the Honours Forfeiture Committee has to make a recommendation to the Prime Minister, who then passes it on to the Queen for a decision.

He said he was also standing down from his voluntary position as a trustee of Cancer Research UK with "great personal sadness", but is expected to remain chairman of car credit company Money Barn.

Sir James was chief executive of HBOS from 2001 to 2006 and former deputy chairman of the now-defunct City watchdog, the Financial Services Authority.

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Banks Face Battle Over Account Switch Regime

By Mark Kleinman, City Editor

Members of a Government-commissioned probe of Britain's banking sector are pushing for the introduction of a radical new system that would enable customers to keep the same account details when they change banks.

I understand that the drive for full account portability is being led by Mark Garnier, an MP who sits on the Parliamentary Commission on Banking Standards (PCBS), and is being debated by the panel ahead of its final report next month.

The proposal would go far beyond the advent of a seven-day account-switching regime, which is due to come into effect later this year. That will guarantee customers that their account with a new bank will be operational within a week, a move that ministers believe will foment greater competition in the banking sector.

People close to the PCBS say "serious consideration" is being given to a recommendation for full account portability, despite banks' warnings that the cost would be punitive.

Mr Garnier is understood to have told banks during private discussions in recent weeks that he believes the more extreme measure, akin to the way consumers can keep their mobile phone numbers when they switch to another network provider, is necessary to make the industry work more effectively.

Insiders said on Wednesday that Britain's major banks had been lobbying against the principle of full account portability on the basis that it could cost somewhere between £10bn and £20bn.

The industry argues that the complexity of introducing entirely new IT and payment systems could be a recipe for disaster, with senior bankers pointing to the IT problems which have blighted recent deals such as the proposed sale by Royal Bank of Scotland to Santander UK, a transaction which collapsed last autumn.

The PCBS is thought to be unmoved by this argument, however, with some of its members arguing privately that full account portability would improve transparency within the monetary system, and make it easier to resolve failing banks by enabling customers to transfer to another lender on an overnight basis.

If the PCBS does recommend full portability, it will put enormous pressure on George Osborne, the Chancellor, to support it.

Andy Haldane, the Bank of England director for financial stability, told the Commission last year that a shared technology platform for all banks would improve competition. The Government is now consulting on measures to open up the payments system.

The Parliamentary Commission has already scored two significant victories, effectively forcing the former HBOS chief executive Sir James Crosby to relinquish his knighthood and hand back 30% of his vast pension pot.

The PCBS also recommended in its first report that the ring-fence between the retail and investment banking arms of Britain's major lenders should be "electrified" by giving regulators a reserve power to forcibly break them up if they abuse the new regime.

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France's Richest Man Arnault Ends Belgian Bid

France's richest man Bernard Arnault has withdrawn his application for Belgian citizenship.

The decision by the head of luxury group LVMH was revealed months after news of his application caused a huge outcry within France, being widely condemned by both left and right.

Mr Arnault's application followed the French government's decision to impose a 75% tax on incomes above 1m euros (£849,000) but  he had always denied doing it for tax reasons.

"I explained several times that I would remain a resident in France and that I would continue to pay my taxes there. In vain - the message did not get through," he told Le Monde newspaper.

"Today, I have decided to clear any ambiguity. I am withdrawing my demand for Belgian citizenship."

Mr Arnault and his wife at the wedding of Monaco's Prince Albert

The move comes as debate about tax havens rages in France, which is reeling from a major tax fraud scandal after former budget minister Jerome Cahuzac admitted having an undeclared bank account abroad.

Mr Arnault, the world's 10th-richest person - with a fortune estimated at almost £19bn, according to Forbes - is just one of several personalities to have recently caused controversy over plans to take up other nationalities.

Actor Gerard Depardieu is another, having announced late last year that he was giving up his French passport and moving abroad because of the rising tax rate.

Since then, the tax plan has been struck down as unconstitutional but the government has insisted it will present a new proposal that will see the rate charged to employers instead of individuals.

In his recent interview, Mr Arnault said France should be more understanding of entrepreneurs and business people: "In France, no matter if the government is left- or right-wing, they (entrepreneurs) are not thought highly of. We are like footballers, not CEOs," he said.

"Mr Tata (founder of Tata Group) is a star in India, like Warren Buffett in the United States. In Germany, the UK or in the US, they condemn poverty to better fight it, while in France we condemn wealth."

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France Targets Tax Havens As Luxembourg Bows

French President Francois Hollande has vowed to "eradicate" tax havens "in Europe and the world", as the EU financial hub of Luxembourg succumbs to calls for greater transparency.

As part of the effort, Mr Hollande said that French banks would be required to declare all of their subsidiaries around the world.

The announcement from France's leader comes as Luxembourg revealed it will exchange information with the rest of Europe to help fight tax evasion.

The widening impetus to improve bank transparency has been pushed forward by some leading countries including Britain, Germany and Australia.

Jersey has come under pressure for its favourable tax status

The initiative, which is to start in 2015, follows international pressure on Luxembourg to end its policy of banking secrecy that critics say has helped people hide money from tax authorities.

The tiny EU nation, the world's only Grand Duchy, has become a financial European hub for a number of multinational corporations.

Although it is smaller than Dorset it has one of the highest per capita GDPs globally.

According to the US's Central Intelligence Agency, 40% of Luxembourg's GDP comes from cross-border financial flows.

The country's capital only has a population of 90,000 but boasts a huge financial industry with more than 3trn euros (£2.7trn) in assets.

Many multinational firms now have Luxembourg financial hubs

Its government said it will set up an automatic exchange of information about interest payments made to EU citizens with bank accounts in Luxembourg "so as to ensure taxation according to the laws" of the customer's home country.

The move is likely to increase pressure on Austria, the EU's other holdout on providing tax information.

On Tuesday Austria said it would join Luxembourg for talks with the EU on how to crack down on cross-border tax cheats, signalling an easing of Vienna's hardline stance on its coveted bank secrecy.

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EE 4G Mobile Network To Double In Speed

Mobile network EE has said it plans to double the speed and capacity of its 4G service.

Average speeds will climb to 20Mbps when it launches this summer in 10 UK cities.

The existing 4G service, launched in October 2012, already offers speeds around five times faster than 3G, meaning quicker downloads and internet browsing.

EE claims some users could get up to 80Mbps under ideal conditions.

The first cities to receive the upgraded service first are: Birmingham, Bristol, Cardiff, Edinburgh, Glasgow, Leeds, Liverpool, London, Manchester and Sheffield.

EE is currently the only operator offering 4G but others are set to follow after new licences were auctioned off in February.

Rumours of weak demand for 4G have persisted, with analysts saying the relative high price is putting off many consumers.

The company's cheapest price plans allows just 500Mb of data, an amount quickly gobbled up if using 4G to watch video for example.

However, upgraded 4G will not cost any more than existing plans.

EE claims the faster service will make the "truly mobile office ... a reality", allowing fast multi-tasking and "zero delay" when downloading/uploading high definition video and photos.

4G-enabled phones, such as the iPhone 5, are slowly coming onto the market

It is aiming for one million 4G customers by the end of 2013 and says it expects mobile data demand to grow by up to 750% in the next three years.

Ernest Doku, telecoms expert at comparison site uSwitch.com, says double-speed 4G could help "cushion the blow" of any extra costs for the service.

"Speeds now more than seven times faster than 3G could convince more mobile users to make the leap to EE - particularly if 4G can price itself to look like a viable alternative to those unable to receive fibre-optic broadband in their areas."

But he said the new speeds could be a "double-edged sword" for mobile users worried that their data bills could soar with faster browsing at their fingertips.

The network 3 is set to be the next operator to enter the 4G arena in autumn this year.

Unlike EE, it has said it will offer 4G at the same price as its existing service - a move which is likely to drive prices down and attract more mainstream consumers.

Telefonica O2, Vodafone and a division of BT called Niche Spectrum are the other players who emerged from the government's 4G auction - but they have not yet announced any pricing details.

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Horsemeat Scare: 50,000 Tons Of 'Beef' Recall

Dutch authorities have recalled 50,000 tons of meat which has been sold as beef across Europe because it may contain horsemeat.

Around 370 different companies in Europe and a further 130 in the Netherlands are affected by the recall because they bought meat from two Dutch trading wholesalers.

Firms have been told to "take it off the market as a precautionary measure" and "verify all products".

The Netherlands Food and Consumer Product Safety Authority (NVWA) has taken the decision to recall the meat because its exact source cannot be established.

As a result, "its safety cannot be guaranteed", it said, ordering the immediate withdrawal of the beef from sale on Wednesday.

The statement said there was no immediate suggestion of any danger to human health.

The horsemeat scandal has spread across Europe

"The buyers have probably already processed the meat and sold it on," it said.

"They, in turn, are obliged to inform their own customers."

The Authority does not know where the meat has ended up, but it may have been used in frozen products.

The Dutch wholesalers involved are Wiljo Import en Export B.V. and Vleesgroothandel Willy Selten B.V.

Officials began a large-scale investigation into the country's meat industry in February following revelations across Europe that horsemeat was being sold as beef.

Inspectors examining Willy Selten's records found that the origin of the meat it supplied was unclear.

This makes it impossible for them to confirm whether slaughterhouses have been acting according to procedure.

"It might contain traces of horsemeat, but we don't know for certain at the moment if this is the case," a spokeswoman for the NVWA said.

The Authority has warned its foreign counterparts about the recall via a European rapid alert system.

Tests have been carried on products for contamination

Sky's Europe Correspondent Robert Nisbet said: "One of these factories that processes meat was raided on February 15.

"Prosecutors at the time said they believed that the management inside was shredding up horsemeat then adding it to beef and selling it on as 100% beef.

"What they (authorities) are saying is that they don't believe that there is horsemeat in all of this 50,000 tons - but they cannot be sure - therefore they want to take it off the shelves and subject it to more tests.

"If you remember the previous horsemeat scandal that was detected from Findus products that was made from Comigel in Luxembourg that was traced back to horsemeat from two Romanian abattoirs. That horsemeat was then sent to another processor in the Netherlands.

"So this would suggest that the Netherlands is an area that people are looking at very closely now in terms of oversight in this massively sprawling industry that runs across Europe.

"Could it be there that many of the problems have originated since this horsemeat scandal blew-up back in January?"

A preliminary investigation by the Romanian government suggested paperwork from the two accused abattoirs was in order and that the livestock entering the facilities were accurately documented.

It also suggested that the meat which emerged from the slaughterhouses was properly labelled, and so therefore the substitution happened elsewhere in the food production chain.

The Europe-wide horsemeat scandal has seen many products pulled from supermarket shelves - damaging confidence in the continent's vast and complex food industry.

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