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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Tablet Boom Leaves Intel Out In The Cold

Intel, the world's largest computer chip-maker, has announced a plunge in profits and predicted weak sales ahead, partly as a result of its failure to break into the tablet market.

The company said a weak global economy also combined to curb corporate spending on computers in its third quarter, resulting in a 14% fall in profit to $2.97bn (£1.8bn) compared to the same period last year.

As Intel had previously warned revenues fell, by 5%, while revenue from PC chips fell 8% in line with reports from research firms IDC and Gartner that said worldwide PC sales had fallen more than 8%.

The shift away from PCs toward tablets is a threat to Intel because most tablets do not use Intel processors but cheaper chips similar to the ones found in smartphones.

Intel wants to get its chips into tablets. The launch of Windows 8, Microsoft's new operating system, on October 26 gives it a chance to do so since the software is designed both for PCs and tablets.

But Intel's expectations for the Windows 8 launch are muted - as are its hopes for the Christmas period.                 

Normally, PC makers ramp up production for the holiday season but Intel CEO Paul Otellini said he expected that increase to be halved this year, in part because manufacturers are cautious about how consumers will take to Windows 8.

The new software is a radical departure from previous Windows versions in terms of how people are expected to use it to control their PCs.

"I'm very excited about this new operating system," Otellini said, but "we haven't had a chance to really judge how consumers will embrace this in the PC space."

Intel's shares fell 3.5% in extended trading in New York after the release of the results.

IBM also disappointed investors by announcing a flat performance over the same period - seeing a similar fall in its share price in after hours trading.

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Energy Bills: Cameron Promises New Laws

Energy firms will be forced to give customers the cheapest available tariff under new laws, David Cameron has announced.

Amid mounting concern about the soaring cost of power, the Prime Minister vowed to legislate to tackle the often-confusing array of prices.

"I can announce that we will be legislating so that energy companies have to give the lowest tariff to their customers," he told MPs during Prime Minister's Questions.

His intervention follows a string of above-inflation price hikes by major energy companies in recent days.

Ministers have previously encouraged customers to shop around to make sure they have the best deal.

They have also announced moves to require energy companies to inform their customers if they could be on cheaper tariffs.

But the forthcoming Energy Bill will go further by introducing a requirement for companies to give people the best tariff for their circumstances.

The announcement came after consumer body Which? called for an urgent independent review into the rising cost of household energy bills.

In a letter to the Prime Minister, Which? executive director Richard Lloyd said the energy market was "broken".

A review was needed to look at rising prices and whether competition between suppliers could be made to work more effectively to help consumers, he insisted.

With the average bill up 13% since a Government energy summit a year ago, "it is no wonder consumers tell us that energy prices are one of their top financial concerns," he said.

He claimed there was little evidence that the Government was living up to its promise to make energy companies more competitive, with 75% of consumers on the most expensive tariff, and the numbers switching suppliers continuing to decline.

Mr Lloyd said people were questioning whether they were being fairly charged for gas and electricity, as companies blamed wholesale price rises and the cost of implementing environmental and social policies for bill increases.

He added: "The time for action is now. Warm words alone are not enough to keep consumers from the cold this winter."

A spokesman for the Department of Energy and Climate Change said: "Households facing rising energy bills this winter aren't going to be helped by more inquiries or investigations that could take years to complete and implement.

"We know what the problems are, we want to get on with tackling them now. We're focusing on action, not more words.

"The fact is reforms by Government and Ofgem, including electricity market reform through the forthcoming Energy Bill and Ofgem's ongoing Retail Market Review, offer the quickest way to boost consumer confidence in the energy market."

Shadow energy secretary Caroline Flint said: "Which? are right to say that Britain's energy market is not working in the public interest.

"For too long energy companies have been able to get away with blaming wholesale prices when bills go up, but failing to pass on savings when wholesale prices fall."

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BP Poised To Take 10% Of Russia's Rosneft

By Mark Kleinman, City Editor

BP is poised to acquire a stake of more than 10% in Rosneft, the Russian state-owned oil giant, as part of a restructuring of its interests in the country.

I understand that BP expects to receive a cash-and-shares offer from Rosneft ahead of a 9am deadline tomorrow that would be valued at roughly $28bn (£17.3bn), the same price attributed to the 50% stake in TNK-BP held by a group of Russia-based businessmen.

Igor Sechin, the Rosneft chief executive, is due to meet Bob Dudley, his BP counterpart, at the British company's central London headquarters on Wednesday night to negotiate a deal. A team of BP executives is also basing itself at the City offices of Linklaters, its legal adviser on the proposed deal.

BP executives will discuss offers for its shareholding in the joint venture with their financial advisers tomorrow, with BP's board expected to decide on a preferred bidder when it meets on Friday afternoon.

I revealed earlier today that AAR, the quartet of oligarchs' holding company for their TNK-BP stake, had agreed an outline deal with Rosneft for the state-owned energy company to buy their stake for $28bn. The agreement was struck in Moscow on Tuesday night.

The exact size of BP's stake in Rosneft is not yet clear and will depend on whether Rosneft splits the $28bn price-tag equally between cash and shares.

A $14bn (£8.6bn) cash windfall would be welcomed by BP, which is continuing to negotiate over the final financial toll of the Gulf of Mexico oil spill with US authorities.

Senior BP executives believe that a stake of between 10% and 15% in Rosneft will give them prized access to alliances with what would become the world's largest publicly-listed oil company by virtue of its takeover of TNK-BP.

The deal would differ from a share swap agreed between BP and Rosneft in January 2011 in that Rosneft will not acquire a shareholding in BP as part of any agreement.

That transaction was scuppered by a legal battle with AAR. The oligarchs are considered likely to drop any remaining legal claims against BP if they complete a deal to sell their shareholding to Rosneft.

Major BP shareholders broadly welcomed news of the proposed shake-up of BP's Russian interests, with one saying it represented "a great price for Bob Dudley".

BP and AAR declined to comment.

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Benefits: Changes 'To Hit Disabled People'

Up to half a million disabled people and their families could be worse off under the new system of Universal Credit once it is fully implemented, according to a report.

It suggested some people might even be forced out of their homes as a result of the changes.

An inquiry headed by former wheelchair athlete Baroness Tanni Grey-Thompson said several "key" groups would lose out under the Universal Credit, which will start to replace much of the benefits and tax credits system from next year.

The study used research showing that once the changes are fully in place, 100,000 disabled children stand to lose up to £28 a week, 230,000 severely disabled people who do not have another adult to help them could receive between £28 and £58 a week less, and up to 116,000 disabled people who work could be at risk of losing around £40 a week.

The report said the impact of the cuts in support for disabled children could be "extremely severe" for families currently receiving the mid-rate "care component" of the Disability Living Allowance (DLA), a payment made where a child can be severely disabled but does not need care overnight.

Of those families affected, one in 10 expressed fears that they could no longer afford their own home, while two thirds said they would have to cut back on food, and more than a half said it would lead them into debt.

The report was led by Paralympic legend Baroness Tanni Grey-Thompson

In some of the most severe cases, some families said the changes to support for disabled children could result in their children having to be placed in full-time residential care.

The report said 83% of those eligible for the severe disability premium (SDP), which will be abolished under the changes, reported that a reduction in benefit levels would mean they would have to cut back on food and 80% said they would have to cut the amount they spent on heating.

The changes start to come into force from October next year and current benefit claimants who move on to Universal Credit will not see an immediate reduction in their payments.

But they will have their level of benefit frozen, with no increases to take into account rising prices, campaigners said, and they may see their support cut immediately if their household circumstances change.

The report, Holes in the Safety Net: the impact of universal credit on disabled people and their families, had the backing of The Children's Society, Citizens Advice and Disability Rights UK and drew on research from these bodies.

Lady Grey-Thompson, who shares the title of Great Britain's most successful female Paralympian with cyclist Sarah Storey, said the findings of the report did not make "easy reading".

"The clear message is that many households with disabled people are already struggling to keep their heads above water," she said.

"Reducing support for families with disabled children, disabled people who are living alone, families with young carers and disabled people in work, risk driving many over the edge in future."

A spokeswoman for the Department for Work and Pensions (DWP) said savings from abolishing the adult disability premiums and changes in the child rate would be "recycled" into higher payments for more severely disabled people.

She said the report was "highly selective and could result in irresponsible scaremongering", adding that Universal Credit would provide greater incentives for people - including disabled people - to try out work, and would reduce the financial and administrative barriers to work that exist in the current system.

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