GSK Probed By SFO In UK Over Bribe Claims

Britain's Serious Fraud Office (SFO) is investigating drugs giant GlaxoSmithKline (GSK) over alleged bribery, it has been confirmed.

The west London-based pharmaceutical firm, the world's sixth largest, said the SFO has opened a "formal criminal investigation".

It comes after Chinese authorities claimed GSK staff had bribed government and health officials in the country.

A company spokesperson said: "GSK is committed to operating its business to the highest ethical standards and will continue to co-operate fully with the SFO."

Shares in GSK were down more than 1.5% in mid-morning London trades.

The firm has been bruised by successive allegations about its business practices in a number of territories.

Although the most damaging investigation into its behaviour has been in China, its conduct in Iraq and Poland has also been probed by local law enforcement officials.

Chinese investigators claimed the former head of GSK's China unit, Mark Reilly, ordered his salespeople to bribe doctors and hospital officials to use the drug company's products.

Officials said it netted the firm more than £100m in "illegal revenue".

Less than two weeks ago Chinese officials said they had charged the former British boss of GSK's China business and other colleagues with corruption.

If allegations are proven, the company risks being fined under the UK Bribery Act or the US Foreign Corrupt Practices Act (FCPA).

From 2008 onwards, fines under the FCPA have been ratcheted up in value, some to nine digits.

The FCPA is designed to prevent corrupt payments to government officials, while UK anti-bribery legislation can be used in cases involving both government and non-government recipients.

The SFO investigation was launched after an inside informant made allegations against GSK.

The unit has also encouraged more people to come forward with claims of bribery against GSK, or any other firm.

A spokeswoman said: "Whistleblowers are valuable sources of information to the SFO in its cases.

"We welcome approaches from anyone with inside information on all our cases including this one - we can be contacted through our secure and confidential reporting channel, which can be accessed via the SFO website."

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Ex-JP Morgan Banker Hannam Loses FCA Appeal

By Mark Kleinman, City Editor

One of the City's top investment bankers has lost an appeal against a ruling that he committed market abuse, leaving him exposed to the prospect of a larger fine than the £450,000 sanction initially imposed on him.

In a judgement published on Wednesday afternoon, the Tax and Chancery Chamber's Upper Tribunal rejected Ian Hannam's argument that his disclosure of information relating to Heritage Oil, a London-listed company, had been entirely proper.

Sky News revealed earlier that the ruling was imminent.

The decision will be greeted with relief by executives at the Financial Conduct Authority (FCA), whose own approach to the disclosure of confidential information has come under scrutiny in recent weeks.

Last month, George Osborne, the Chancellor, ordered an inquiry into the FCA's handling of an announcement of a probe it was launching into certain areas of the life insurance industry.

In their written judgement on Mr Hannam's appeal, the presiding judges opened the door to a rethink of the way the City watchdog supervises the disclosure of inside information, saying:

"The Authority might give consideration to making mandatory the keeping of a record of when and how a person has been made subject to confidentiality obligations and of precisely what he has been told.

"This is particularly so in the case of inside information in the context of a potential bidder in a corporate transaction. With such a record, the task of 40 investigating potential dealing based on inside information would be more straightforward than without one."

In a statement, Mr Hannam said: "I am obviously disappointed that the Tribunal has rejected the explanation as to why the two emails sent in the course of advising and assisting my client did not contravene the rules, but I do appreciate the full consideration that has been given to the issues.

"I am gratified that the Tribunal has accepted that I was indeed acting only in the interests of my client and without any dishonest or ulterior motive. Launching an appeal is not a decision to be taken lightly and will require careful thought."

The tribunal said it was seeking further submissions from Mr Hannam and the FCA about the appropriate penalty, two years after he was hit by a £450,000 fine.

Sources said the penalty could be increased or reduced at a later date.

A former SAS soldier, Mr Hannam was nicknamed "the king of mining M&A" after he orchestrated a string of deals that led to some of the world's biggest natural resources companies, including Xstrata and Bumi, being listed on the London Stock Exchange.

Since leaving JP Morgan, he has rebuilt his career, taking control of a number of businesses in the mining and resources industries, and offering financial backing to Heathrow Hub, one of the shortlisted candidates for expanding runway capacity in south-east England.

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Google To Build Its Own Self-Driving Cars

Google is building its first prototype self-driving car - with no steering wheel, acceleration pedal, or brake.

Until now, Google has focused on adapting existing car models with its self-driving technology, and has driven hundreds of thousands of miles on public roads using Lexus SUVs and Toyota Prius models fitted with special equipment.

But Google co-founder Sergey Brin told reporters that the firm is to make 100 prototype cars that drive themselves.

They will be operated using two simple buttons - go and stop - and navigate using GPS, sensors and camera data.

An artist's impression of the finished Google car prototype

Google is unlikely to move into large-scale car manufacturing, and the firm says it plans to work with other companies to "bring this technology into the world safely" if the prototypes are successful.

Mr Brin said: "The main reason we wanted to develop this prototype vehicle is that we can do a better job than we can do with an existing vehicle.

"The experience feels different. You're just sitting there, no steering wheel, no pedals - for me it was very relaxing. In about 10 seconds after getting in, I forgot I was there. It reminded me of catching a chairlift by yourself, a bit of solitude I found really enjoyable."

In a blog post, Google said that by building its own car it could star with a "blank sheet of paper".

"We started with the most important thing: safety.

"(The prototypes) have sensors that remove blind spots, and they can detect objects out to a distance of more than two football fields in all directions.

"This is especially helpful on busy streets with lots of intersections."

The post added: "Ever since we started the Google self-driving car project, we've been working toward the goal of vehicles that can shoulder the entire burden of driving.

"Just imagine: You can take a trip downtown at lunchtime without a 20-minute buffer to find parking. Seniors can keep their freedom even if they can't keep their car keys.

"And drunk and distracted driving? History."

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Lloyds Banking Group Confirms Float Of TSB

Lloyds Banking Group has confirmed a decision to sell around 25% of retail lender TSB, enticing investors with the offer of free shares.

The flotation is expected next month on the London Stock Exchange, following publication of a prospectus mid-month.

On Monday, Sky News City Editor Mark Kleinman revealed details of a plan to lure investors with an offer of free shares as part of the £1.5bn initial public offering (IPO).

Shareholdings of up to £2,000 must be held for 12 months after the float to be eligible for the 5% additional free shares.

The long-awaited sale is part of a mandated divestment programme following its taxpayer-backed bailout of more than £20bn following the global financial crisis.

Lloyds CEO Antonio Horta-Osorio said TSB would offer more competition

TSB, which was relaunched as a standalone brand last autumn and operates 631 branches, has a growth strategy focusing on consumers and small business customers.

It currently employs 8,000 and is responsible for £22bn invested on behalf of 4.5 million customers.

It is marketing itself on a history dating back more than 200 years and intends to lure customers away from bigger rivals that operate risky - but profitable - investment banking arms.

TSB will be taken fully public by the end of 2015 as part of the European Commission mandate on state-aid to companies.

Lloyds still owns the Halifax and Bank of Scotland and the banking group remains 25% owned by the British taxpayer.

Lloyds chief executive Antonio Horta-Osorio said: "The decision to proceed with an initial public offering of TSB is an important further step for the group as we act to meet our commitments to the European Commission.

"TSB has a national network of branches, a strong balance sheet and significant economic protection against legacy issues.

"It is already operating on the UK high street and is proving to be a strong and effective challenger, further enhancing competition in the UK banking sector."

It was originally planned to sell more than 630 TSB branches to the Co-operative Bank, until a £1.5bn capital black hole was discovered in the mutual's books.

IMF boss Christine Lagarde said the global banking sector needs to do more

The floating bank's chief executive Paul Pester said: "Today is a significant milestone on our journey to create a major new competitive force in UK banking."

TSB - originally standing for Trustees Savings Bank - dates back to 1810 when Reverend Henry Duncan created a community-based local bank.

Meanwhile, International Monetary Fund managing director Christine Lagarde, speaking at a conference in London, said the global banking system is slowly adapting to modern realities, amid sector "push back".

She said: "We're moving forward with stronger capital lending and liquidity requirements. It should certainly make the system safer, sounder and hopefully more service-oriented.

"The bad new is that progress is still much too slow and the finish line is still too far off.

"Some of this arises for the complexity of the task at hand, yet we must acknowledge that it also stems from fierce industry 'push back' and from the fatigue that is bound to set in at this point in the race."

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Detroit: Eliminating Blight 'Would Cost $850m'

Wiping out the abandoned and decrepit buildings that are the hallmark of bankrupt Detroit could cost nearly $850m (£506m), a report has said.

The study, prepared by a special task force appointed by President Barack Obama, said nearly one in three structures need some form of intervention, including demolition or rehabilitation.

It said about 40,000 needed to be demolished and cleaned up immediately because of their condition.

The $850m is needed just to address neighbourhood blight "in the next few years".

Commercial sites, with their potential for environmental problems, will add $500m (almost £300m) to $1bn (almost £600m) to the total cost.

About 40,000 buildings need to be demolished or cleaned up immediately

Mayor Mike Duggan said blight has gone on for years without a "real strategy" and has gotten worse as a result.

"This is a fabulous plan - but it doesn't come with a check," he said, but he added: "Six months ago, there was no strategy and no funding.

"Now, we've got the strategy and we're getting started on the funding."

The study is part of efforts announced last year by the Obama administration to help Detroit, which cited $18bn (£10bn) in long-term debt when it filed for the largest municipal bankruptcy in US history.

The report was drawn up to help determine which houses and buildings can be saved and which will be torn down.

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Nationwide Pre-Tax Profit Up 303% To £677m

The Nationwide building society has reported an annual pre-tax statutory profit of £677m, up more than 300% on the figure last year.

It said that total income for the year ended April 4 was up 16%, at £2.9bn.

The mutual added that gross mortgage lending in the period was up 31% to £28.1bn, giving it a market share of almost 15%.

The number of mortgagees in three-month arrears is 0.63% compared to an industry-wide figure of 1.59%, due to what it called a "prudent approach to lending".

The high street lender has seen a wave of new accounts opened up as disillusioned customers flee its bigger rivals.

It said that during the reporting period 430,000 new current accounts were opened up, an increase of 18% on the previous year.

Nationwide now has 5.5 million current accounts taking its total share to 6.2%, up from 5.7% last year.

The lender said it offers a "compelling alternative to the established banks" and is now a "modern mutual".

Group retail executive director Chris Rhodes told Sky News: "The reality is we are ranked by customers on customer service and out members tend to stay with us.

"And 11% of all current account switching was to Nationwide - we are growing against everyone except Santander."

He added: "A traditional mutual focuses on traditional customers and governance, but Nationwide as a modern mutual holds the values of a traditional business while able to cover all of today's consumers."

Sky News City Editor Mark Kleinman first revealed the boost in account holders it received amid distrust with mainstream rivals.

Nationwide said its credit card business growth rate had reduced amid competitive alternatives offered by rivals.

It opened 272,000 new credit card accounts compared to 350,000 a year beforehand.

But outstanding card balances increased by 12.9% to £1.7bn.

Its tax charge for the year was £128m, giving it an effective rate of 18.9% - more than 4% below the statutory rate.

Just under a third of all Nationwide mortgages are in Greater London, with 35% in central and northern England.

Home movers accounted for 32% of new loans, first time buyers 31%, re-mortgaging 22% and buy to let 14%.

CEO Graham Beale said there could be early signs of a natural correction to house price rises in London, but warned that measures to cool capital prices might have a negative impact elsewhere.

Mr Rhodes told Sky News: "London is up 20% on pre-crash prices while elsewhere it is 2% below pre-crash values.

"The activity we see and feedback from estate agents indicates the London market is slowing a little. We don't see a bubble so we don't see it bursting. The disparity between areas may ease as a result of the correction."

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Skype To Launch Real-Time Language Translator

Real-time voice translation will be added to Skype by the end of the year, Microsoft has revealed.

The firm says it has taken years of research to be in a position to launch the feature, and that it is still "early days" for the technology.

Skype vice president Gurdeep Pall said: "It is early days for this technology, but the Star Trek vision for a Universal Translator isn't a galaxy away, and its potential is every bit as exciting as those Star Trek examples.

"We've invested in speech recognition, automatic translation and machine learning technologies for more than a decade, and now they're emerging as important components in this more personal computing era."

A test version of the service will be released for Windows 8 later this year.

It is unclear whether the feature will be offered for free or whether a fee will be required.

Skype has more than 300 million monthly users, and more than two billion minutes of voice and video conversations take place every day using the service.

At launch, the service will only work with a very small number of languages.

It is hoped the software can learn the subtleties of various accents and voice type as a result of the massive amount of voice data processed by Skype.

The company was bought by Microsoft in May 2011 but has faced competition from Apple's Facetime, Blackberry's BBM, and several other chat services and apps.

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Serco Wins 15-Year Caledonian Sleeper Deal

Embattled outsource firm Serco has won a 15-year contract to operate the Caledonian sleeper train service between London and Scotland.

The company, which was forced to repay the Government £68.5m in December for overcharging for the tagging of criminals, will take the franchise from FirstGroup next April.

Duties for the new franchisee include marketing, sales, passenger services, maintenance and platform facilities.

The company said it plans to invest more than £100m in new rolling stock, due to be active by the summer of 2018, and the investment includes a £60m capital grant from Scottish ministers.

Serco said the new carriages would be fabricated by CAF and offer 'pod' beds, a brasserie-style saloon and ensuite cabins.

Serco charged for tagging prisoners, including some who were actually dead

The overnight service runs from London Euston, northwest England and more than 40 destinations in Scotland, including Edinburgh, Glasgow, Fort William and Aberdeen.

Serco Group chief executive Rupert Soames said: "Serco has a strong track record of providing high quality and efficient rail services around the world, as well as experience in managing large-scale tourism-focused transport services.

"I am delighted that we can use this unique blend of expertise to transform the iconic Caledonian Sleeper into a modern, high quality hospitality service to make Scotland proud."

"Serco has a very constructive relationship with many parts of Scottish Government and already operates essential public transport and many other services."

The company is expected to see revenues over the 15-year period reach £800m, which includes some £180m as franchise operating payments.

The overnight sleeper runs from London's Euston station

FirstGroup currently runs the sleeper as part of its ScotRail franchise, which it has operated since 2004.

FirstGroup chief executive Tim O'Toole said: "I would like to thank all of our employees who have worked hard to deliver the best possible service for Caledonian Sleeper customers over the past 10 years.

"We submitted a strong bid which would have offered further high quality services for passengers and a good return for taxpayers."

Last week FirstGroup discovered it had lost out on the new Thameslink, Southern and Great Northern (TSGN) franchise into London, which was won by Go-Ahead-owned Govia.

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Political Battle Over Who Can Make Scots Richer

Scots Independence: Rest Of UK Firms Want Union

Updated: 4:40am UK, Wednesday 07 May 2014

By Niall Paterson, Sky News Correspondent

An overwhelming majority of businesses in England, Wales and Northern Ireland say that Scotland should remain part of the UK, according to a survey for the British Chambers of Commerce.

The BCC, which itself remains impartial in the debate, surveyed close to 2,500 of its members, and whilst 11% said Scotland should vote yes, some 85% preferred the union to remain.

Two thirds said no new opportunities would arise in the event of a 'Yes' vote, and just over a third, 35%, said a formal currency union, a key ambition of the SNP-led campaign, would be in the best interests of the UK as a whole.

The BCC's director general John Longworth said: "Business opinion across the United Kingdom on the Scottish independence debate is far from unanimous. That's only logical, as businesses have different interests, and different views on our complex history of economic and political union.

"In the event of a 'Yes' vote, cross-border trading and currency arrangements loom large in businesses' thinking. If Scotland votes 'no', constitutional questions remain around the devolution of power and the distribution of public funding between nations."

The poll has been seized upon by those campaigning for a 'No' vote, as with a recent report from credit ratings agency Moody's which said an independent Scotland would find itself downgraded.

Edinburgh South Labour MP and Shadow Business Minister Ian Murray said: "This survey confirms what some of Scotland's largest employers like Standard Life, RBS and Shell have made clear. Breaking up the UK would create huge risks and cost jobs in Scotland.

"The majority of businesses in the rest of the UK do not support a currency union. It would be bad for Scotland and bad for the rest of the UK. That's why it is off the table.

"What people in Scotland need from the nationalists is some honesty about what would replace the pound if we leave the UK. Would we rush to adopt the euro or would we set up a separate Scottish currency? The idea that Scots can go to the polls blind on this fundamental issue isn't credible."

Yet there is hardly unanimity north of the border either - nor an overwhelming sense of fear that cross-border trade would come to a juddering halt.

Many here expect business to continue if not entirely as normal then with significant benefits in the longer term.

Tony Banks, chairman of Business for Scotland, a pro-independence campaign group with close to two thousand members said: "This is a survey that of course doesn't include Scottish businesses who have a rather different perception.

"Scottish independence offers real advantages to everyone, not only in Scotland but across our shared markets in Europe - that independence doesn't equal isolation and businesses here are well aware of the opportunities they can gain.

"Even the Scottish Chambers of Commerce survey issued last week conceded that 53% of its members see the opportunities that independence could bring."

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British Gas Chiefs Poised To Quit In Shake-Up

By Mark Kleinman, City Editor

The bosses of British Gas and its parent company are close to stepping down as part of a management shake-up at Britain's biggest energy supplier.

Sky News can reveal that Chris Weston, who runs Centrica's international downstream division, which includes British Gas, is in detailed talks about taking the top job at Aggreko, the temporary power group.

His exit from Centrica has not yet been finalised, and sources close to the situation insisted that he had not yet formally landed the Aggreko job.

If Mr Weston does secure the role, however, his departure is likely to be announced at roughly the same time as that of Sam Laidlaw, Centrica's long-serving chief executive, sources indicated.

Mr Laidlaw's future has been the subject of intense speculation in recent months, and Sky News understands that the company is in advanced negotiations to appoint Iain Conn, a senior BP executive, as his successor.

Centrica said at its annual meeting earlier this month that it was beginning the process of exploring options for management succession, with a replacement also due to be found for Nick Luff, its finance director.

British Gas chief Chris Weston Pic: Daniel Lynch

The intense row about energy prices is said to have been a factor in recent deliberations of both Mr Laidlaw and Mr Weston, who has only held the British Gas role for 15 months, over their futures.

Mr Laidlaw agreed to donate his latest annual bonus to charity, while Mr Weston and other Centrica executives have been the subject of tabloid newspaper attention about their domestic energy consumption and lifestyles.

Announcements about one or more of these moves could be made as soon as this week, although the complexity of ongoing negotiations means that they could yet be delayed or even fall apart, the source added.

"There are a lot of moving parts around all of these appointments," one source said.

One of the factors relating to Mr Conn's potential appointment as Centrica's new boss is understood to be his multimillion pound BP shareholding.

BP's latest annual report shows that Mr Conn owns approximately £3m-worth of BP shares and has about £16m-worth of additional awards which are subject to performance criteria.

Mr Laidlaw's future has been the subject of speculation in recent months

It was unclear on Wednesday whether Centrica would agree to compensate him for part or all of this sum, with a further political row likely to be ignited if it does so.

Mr Conn is one of Britain's most respected industrialists, having run BP's downstream business since 2007 and also serving as a director of Rolls-Royce Holdings, the engine manufacturer.

He is also understood to have been sounded out about becoming chief executive of BG Group, the FTSE-100 gas producer.

The energy sector is expected to be the subject of a full investigation by the Competition and Markets Authority, while Ofgem, the regulator, has mounted an aggressive assault on the conduct of the 'Big Six' gas and electricity suppliers amid criticism of its own performance.

Aggreko, BP and Centrica declined to comment, while Mr Weston and Mr Conn could not be reached for comment.

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