Chinese Insurer Swoops On Canary Wharf Tower

By Mark Kleinman, City Editor

A state-owned Chinese insurance group is in talks to acquire the headquarters of Clifford Chance, the law firm, providing further evidence of the strength of London's commercial property market.

Sky News has learnt that funds controlled by China Life, the country's biggest life insurer by market value, are in advanced discussions about a deal to buy 10 Upper Bank Street, a 30-storey building in Canary Wharf.

The talks are not yet finalised and could still fall apart, but a source said that the building's current owner, Canary Wharf Group (CWG), was confident that a sale would take place in the coming weeks.

Insiders said that a deal could value the site at around £780m, consistent with the most recent external valuation conducted earlier this year.

A price-tag in that region would make the deal one of the biggest in London's commercial property sector this year, underlining the continuing appetite among international investors for prime UK real estate.

That trend is evident despite the fact that unlike in previous property booms, the demand is not being driven by a rapid expansion of the banking industry.

Last year, Ping An, another Chinese insurer, acquired the Lloyd's of London building, a major City landmark, in a £260m deal.

It emerged last month that the insurance market is considering leaving the site because of frustrations about its design.

More generally, however, Asian and Middle Eastern sovereign wealth funds have been among the most prolific investors in London commercial property, reflecting the City's status as a global financial centre.

HSBC's headquarters in Canary Wharf is also up for sale with property experts anticipating that a sale will fetch more than the £1.1bn commanded by the building when it changed hands in 2007.

Clifford Chance has in recent months been in talks about sub-letting several floors to Transport for London, a deal which was recently reported to have fallen through.

Other tenants in the building include MasterCard, Infosys, the Indian software group, the French oil giant Total and the FTSE Group.

CWG is redeveloping the Shell Centre on the South Bank in conjunction with a Qatari property investor, and is developing Newfoundland, another major site in Canary Wharf.

It also owns 20 Fenchurch Street, better known as the Walkie Talkie, as part of a joint venture with Land Securities, the FTSE-100 property group.

A CWG spokesman declined to comment on Wednesday.

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David Beckham: Miami Rejects New Stadium Plan

David Beckham has suffered a major setback in his plans to set up a football team in Miami after a second proposed stadium site was rejected.

The former Manchester United idol and England captain wanted to build an arena over an old boat dock in the city centre.

But Miami's mayor Tomas Regalado and other senior figures in the city said after a meeting that they felt that the spot, called the FEC slip, was not the right site.

A statement from the consortium Beckham has put together said: "Miami Beckham United and City of Miami Mayor Tomas Regalado met today to discuss a path forward for bringing a Major League Soccer club to Miami.

The site of the proposed stadium in downtown Miami, called the FEC slip

"Mayor Regalado and the City Manager expressed their belief that the FEC slip is an inappropriate location for a soccer stadium."

It is the second site that Beckham has had turned down.

He originally wanted to build a $250m open-air stadium with 25,000 seats at PortMiami, but opposition from shipping interests and local authorities scuppered that plan.

The alternative site was a waterfront pier in congested downtown Miami, between a museum park and the American Airlines Arena where the Miami Heat basketball team plays.

An artists impression of what the site would look like from the air

The consortium also proposed landscaping the surrounding area into parkland with a new waterfront.

According to the statement, Beckham presented a financial offer that included a privately funded stadium, fair payments for the use of the land and no use of public funds.

CBS Miami reported that local people were unhappy with the dock being filled in and video footage showed a number of signs in windows nearby opposing the plan.

Beckham and Major League Soccer (MLS) - the US and Canada's top flight football league - announced plans for the new franchise in Miami in February.

A plan of the proposed stadium next to the American Airlines Arena

If his stadium plans had been successful, it was expected that his team would have begun playing in 2017.

MLS is a closed league, with 19 teams, set to rise to 21 in 2015, divided into Eastern and Western conferences.

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Black Cab Demo Causes Central London 'Gridlock'

Parts of central London have been left gridlocked after thousands of black cab drivers took industrial action at Trafalgar Square.

Up to 12,000 black cabs headed to the centre of the capital with the intent of causing traffic chaos.

Helicopter footage showed long queues of cabs across Westminster Bridge and along Whitehall to Trafalgar Square.

The traditional cabbies were protesting at Transport for London's (TfL) regulation of rival cab service Uber.

A line of black cabs pictured in Westminster

The Google-backed app allows users to order a car at the touch of a button, and the fare is calculated using GPS tracking.

But traditional cabbies say this is effectively a taxi meter, which only black cabs are legally entitled to use in the capital.

Sky's Ashish Joshi said that Trafalgar Square was "gridlocked" just before the protest officially started at 2pm.

He said: "This is technology against tradition. It's the new Battle of Trafalgar."

The protest is aimed at Transport for London and Uber

One driver with 15 years of experience told Sky News: "It's got to be a level playing field. England are playing Italy on Saturday, what if Italy turn up with 15 men against England?

"We love competition, we thrive on competition in this city, but it's got to be a fair competition."

But Uber general manager Jo Bertram has defended the company's business model, and says the number of app downloads has soared.

She said: "Londoners are voting with their fingers, tapping the app in support of new and innovative services as we see our biggest day of sign-ups in London today since launch two years ago.

Drivers in Spain took part in a similar protest

"In fact, today we're seeing an 850% increase in sign-ups compared to last Wednesday.

"Unsurprisingly, the Licensed Taxi Drivers Association, which is stuck in the dark ages, is intent on holding London to ransom and causing significant economic impact to Londoners today, estimated to be £125m."

Earlier the app goaded black cab drivers by urging them to sign up to their pre-booking app, saying it gave greater "choice for consumers".

But the cabbies dismissed it as a PR stunt.

Similar demonstrations have also taken place today in Paris, Madrid and Barcelona.

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Apple Among Firms In EU Tax Deal Probe

Tax deals involving Apple, Starbucks and Fiat are facing an EU probe over allegations they amounted to state aid worth billions of pounds.

The development follows a move by the EU's competition authorities last year to gather information on corporate tax arrangements from several member states.

The European Commission said it had opened three in-depth investigations into tax decisions affecting Apple in Ireland, Starbucks in the Netherlands and Fiat Finance and Trade in Luxembourg.

The EU said its investigation followed reports some companies have received significant tax reductions through tax rulings by national tax authorities.

Apple's boss Tim Cook has insisted the firm does not break tax rules

The focus was firmly on national laws and corporate tax rules rather than the firms themselves.

Apple's annual report showed how its Irish structures helped it achieve an effective tax rate of just 3.7% on its non-US income last year.

A US Senate subcommittee investigation revealed that the iPhone and iPad maker had cut billions from its tax bill by declaring that companies registered in the Irish city of Cork were not tax residents of any country.

Senator Carl Levin, chairman of the sub-committee, said the Apple structure represented "the Holy Grail of tax avoidance".

Starbucks insists it operates within tax laws

Dublin reacted on Wednesday to news of the EU's investigation by insisting it did not believe it broke any laws.

A Department of Finance spokesman said: "Ireland is confident that there is no state aid rule breach in this case and we will defend all aspects vigorously."

A statement issued by Apple said: "We have received no selective treatment from Irish officials.

"Apple is subject to the same tax laws as scores of other international companies doing business in Ireland.  

"Apple pays every euro of every tax that we owe".

The wider tax avoidance debate, which has included the likes of Starbucks, Amazon and Google, has focused on amending national laws to ensure fair payment worldwide.

Starbucks, whose tax arrangements in the Netherlands form part of the probe, has been among high profile firms facing criticism for its UK tax bill.

In October and December 2012, key executives were grilled by MPs about its multinational corporate (MNC) arrangements.

Revelations about royalty, licensing and transfer pricing structures used by MNCs to minimise UK tax burden became a focus for the Public Accounts Committee.

The coffee chain confirmed in April it was to move its European headquarters to London from Amsterdam.

Starbucks said of the tax probe. "We comply with all relevant tax rules, laws, and OECD guidelines and we're studying the Commission's announcement."

Fiat was not immediately available for comment.

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Star Wars Film 'Shows Force Is Strong With UK'

By Jon Craig, Chief Political Correspondent

George Osborne has hailed the decision to film another Star Wars movie in the UK starting next year, thanks to his tax breaks for the movie industry.

The Chancellor has visited Pinewood Studios, where the new standalone Star Wars film directed by Gareth Edwards and written by Gary Whitta will be made.

Mr Osborne was joined by new Culture Secretary Sajid Javid on the Star Wars: Episode VII film set, where they met Lucasfilm president Kathleen Kennedy and the film's director, JJ Abrams.

Mr Osborne on set with Mr Abrams, Ms Kennedy and R2D2. Pic: Twitter

Under tax breaks introduced by Mr Osborne, by choosing the UK films can benefit from 25% tax relief on the first £20m of qualifying expenditure and 20% thereafter.

According to the Treasury, investment in UK-based film production in 2013 was over £1bn - an increase of 14% on the previous year.

Film tax relief also helped to attract international film-makers to the UK, with inward investment reaching over £868m for 2013.

"Lucasfilm and Disney's decision to shoot the Star Wars standalone movie in the UK is testament to the incredible talent in Britain," said Mr Osborne.

"This will mean more jobs and more investment. It is great news for people working at Pinewood Studios, from the set designers to the carpenters.

"As Chancellor I have been determined that we back our brilliant creative industries which is why we have invested in skills and training as well as providing tax relief for films, high-end TV, animation, video games and regional theatre.

JJ Abrams is directing Star Wars: Episode VII

"The further changes the Government made to the film tax relief at Budget 2014 will support our highly skilled, innovative creative sectors so that they continue to thrive and encourage more films to be made in the UK."

Ms Kennedy said: "The UK crew that we're working with on Star Wars: Episode VII is incredible. They're among the most gifted and passionate when it comes to film and storytelling. Star Wars couldn't be in better hands."

And Mr Javid quipped: "This is great news for the UK and is further proof of the world-leading position of the UK film industry.

The cast of Episode VII pictured at Pinewood Studios

"We have studios, tax incentives and talent, both in front of and behind the camera, which are amongst the very best in the world.

"Given Lucasfilm's decision to film another Star Wars movie in the UK, it is clear that the Force is strong here."

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Payday Loans: Borrowers 'Paying Too Much'

A lack of price competition means payday loan customers may be paying too much to borrow, according to an investigation.

In preliminary findings, the Competition and Markets Authority (CMA) calculated that consumers were forking out up to £10 over the odds for a typical loan - with the bill seen as a cause of concern given that borrowers take out an average six loans annually.

The CMA said it would now be investigating potential ways to increase price competition in the sector, including setting up a price comparison website and creating clearer upfront disclosure of borrowing costs if a loan is not paid back in full and on time.

It suggested the market-wide impact of greater competition would result in total savings for UK customers of more than £45m a year, relative to total revenue earned by payday lenders of around £1.1bn.

Payday lenders have already been subjected to tougher rules this year

Simon Polito, Chairman of the Payday Lending investigation group and CMA Deputy Panel Chair, said: "If you need to take out a payday loan because money is tight, you certainly shouldn't have to pay more than is necessary.

"While the average income of payday lending customers is similar to that of the overall population, their access to other credit options is often limited when they are taking out a payday loan and in some cases those borrowers paying the extra costs are the ones who can afford it the least.

"This can particularly apply to late payment fees, which can be difficult to predict and which many customers don't anticipate.

"'It's not surprising that payday lending customers tend to focus more on availability and speed rather than the cost of loans but even for those who do shop around, it can be very difficult to compare prices, given the difference between products, the lack of transparency on additional fees and charges and the shortage of effective comparison tools.

The Financial Conduct Authority may cap payday loan costs

There is a substantial gap between the cheapest and most expensive loans, so borrowers could benefit if we can help them compare prices more effectively, which in turn would stimulate greater price competition and lower costs."

The CMA said its probe was complementing separate action by the Financial Conduct Authority ( FCA) on protecting customers who get into trouble repaying loans.

The FCA is set to launch a consultation this summer which will consider the level at which the overall cost of a payday loan should be capped.

The body, which took over regulation of the payday sector in April, has already required firms to provide financial "health warnings" on emails, online and in texts and to signpost people to free debt help.

From July 1, payday firms will also have to include risk warnings on other forms of advertising, such as print and television.

They will also be banned from rolling over a loan more than twice and they will only be able to make two unsuccessful attempts to claw money back out of a borrower's account by using a type of recurring payment called a continuous payment authority.

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Start-Up Firm Mining Gold From Unwanted PCs

A start-up company is offering to turn old unwanted electronics into solid gold.

Discarded computers and other electronic devices contain amounts of precious metals like gold and silver.

One tonne of circuit boards, for example, has 40 to 800 times the amount of gold in it than one tonne of mined gold ore.

BlueOak is creating a small-scale smelter in Arkansas, US, and partnering with collectors who gather used electronics from corporations.

The collectors will send BlueOak the parts of computers containing high-value elements, such as circuit boards.

The collectors will pay an upfront fee, the precious metals will be extracted and sold, and the majority of the profits will be returned to the collectors.

According to the UN, 50 million tonnes of electronic waste was produced worldwide in 2012.

The figure is predicted to rise to 65 million tonnes by 2017.

Priv Bradoo, BlueOak's co-founder and chief executive, said the current practice of dumping e-waste in landfill "just doesn't make sense".

Large-scale smelters already exist, but Ms Bradoo says there is a gap in the market because they only deal in mass quantities of material.

Before launching BlueOak, she was vice president of business development for LanzaTech, a start-up that turns toxic waste gases from factories into high-value fuel.

The first refinery is set to be completed by next year.

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Unemployment Falls But Wage Growth Shrinks

A sharper than expected fall in the unemployment rate has been marred by figures showing that wages are not rising in line with the improving economy.

In figures released by the Office for National Statistics (ONS), the jobless total fell 161,000 to 2.16 million in the three months to April  - giving the UK a jobless rate of 6.6%.

Employment growth of 345,000 in the period amounted to another new record while the number of people claiming Jobseeker's Allowance last month fell by 27,400 to 1.09 million.

But the wider figures also charted a decline in wage growth - with the annual figure including bonuses measured just 0.7% above the level seen in April 2013.

It marked, the ONS said, a 1% fall in April alone and was blamed on last year's figure being boosted by delayed bonus payments.

With annual pay growth running at just 0.7%, it means consumers are still far from escaping the squeeze from rising prices as CPI inflation runs at 1.8%.

The decline could be excused as an anomaly but it has also been suggested that firms are continuing to keep wage rises in check as a consequence of hiring more staff to recover growth lost during the financial crisis.

Samuel Tombs, of consultancy Capital Economics, said: "The latest UK labour market figures show that, while the unemployment rate is continuing to fall, there is still enough slack in the jobs market to prevent wage growth from picking up."

Employment minister Esther McVey said: "As we build a stronger economy, businesses up and down the country are feeling increasingly confident about creating jobs, meaning many thousands more people are in work every day - ensuring a better future for them, their families, and for the country as a whole."

But the figures showed it was self-employment driving the recovery in the jobs market.

The ONS said there were 337,000 people starting out on their own in the three months to April - leaving a self-employment total of 4.54 million.

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Amazon Hit By Living Wage Protest On Website

Amazon has taken down a page on its own website created by campaigners demanding a living wage for the company's UK staff.

The online retailer, which has faced protests and even strikes among its fulfilment centre workers globally in the past, acted within hours of the rogue post appearing on its UK marketplace.

The stunt took the form of a fake book titled 'A Living Wage For All Amazon Workers' which was priced at £7.65 - the hourly rate seen by the protestors as a living wage outside London.

The product description read: "Over 62,000 people have called on Amazon to end poverty pay in 2014 - but Amazon has yet to take our demand seriously so we've brought it direct to Amazon.co.uk."

It added it was time for the organisation "to pay the human cost of its operations".

Amazon's fulfilment centre operation has grown substantially

A group calling itself Amazon Anonymous was responsible for the stunt.

Its petition page slams the company on not only pay but also working conditions and includes claims that Amazon sack staff who take three sickness breaks in a three-month period and that overtime is compulsory.

The change.org petition states: "With UK sales in 2012 of £4.2bn, you'd think Amazon could afford to pay its workers enough to be able to feed and clothe themselves and their families."

The company was yet to respond to a request for a statement from Sky News.

In April, Amazon raised eyebrows when it offered to pay US fulfilment staff - those who find, pack and ship customer orders from huge warehouses - up to $5,000 to quit their jobs if they were unhappy.

The 'pay to quit' policy was seen as an attempt to drive out people seen as damaging morale but Amazon's chief executive Jeff Bezos insisted it made staff stop and think about their careers and where they wanted to be.

In the UK, Amazon has previously faced union-led protests over pay and working conditions and insisted it offered competitive packages to workers.

It has also faced pressure on its tax arrangements, paying £10m in corporation tax in its last financial year on revenues of £4.3bn.

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Lustman In Talks To Join Fashion Chain Hobbs

By Mark Kleinman, City Editor

A clothing chief at John Lewis is in talks to take the helm at Hobbs, the private equity-backed fashion chain.

Sky News understands that Meg Lustman, who is due to leave the department store chain when her interim contract expires next month, is the frontrunner to become Hobbs' chief executive.

The chain has been searching for a new boss since Nicky Dulieu stepped down in February after eight years in charge.

Owned by 3i, the investment firm, since 2004, Hobbs endured tough Christmas trading after participating in heavy discounting seen across the high street, leading 3i to write down the value of its investment by £40m.

An insider said that Ms Lustman was one of several candidates for the chief executive's post but added that she was the favoured candidate.

Ms Lustman has been working as John Lewis's fashion buying director since last autumn, having previously run Warehouse, another high street fashion chain.

The company is chaired by Phil Wrigley, the former chairman and chief executive of New Look, who helped steer its rise to become the UK's third-biggest clothing retailer.

Hobbs opened its first store in Hampstead, north London,  in 1981 and now has more than 140 branches throughout the UK and Ireland as well as franchise stores in the UAE and Sweden.

Earlier this year, it announced its entry into the US through a presence at a handful of Bloomingdale's department stores.

3i, which recently re-entered the FTSE-100 index after a two-and-a-half year absence, has held onto its investment in Hobbs for much longer than the typical ownership tenure of a private equity group.

Previous efforts to sell the business were aborted, and the firm is keen to complete an experienced management team which could potentially lead it through an eventual change in ownership.

3i declined to comment.

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