Local bus operators face competition probe

The Office of Fair Trading (OFT) has referred providers of local bus services to the Competition Commission after uncovering evidence a distorted market is leading to higher prices and poorer service quality.
The government's consumer watchdog said on Thursday a study had found evidence that limited competition among bus operators, whether commercially operated or run by local authorities, tended to result in poor value for money for taxpayers.
"The study identified a number of features of local bus markets that could prevent, restrict or distort competition," the OFT said in a statement.
All local bus services in the UK, except those in London and Northern Ireland, will now be subjected to a more detailed public investigation by the Competition Commission which has greater powers than the OFT and can impose remedies.
"One of the concerns that we think the Competition Commission should take a look at is the tendency for local areas to become dominated by a single operator," said OFT Senior Director Heather Clayton.
The OFT said its study had found that the majority of local bus services were being operated by a small number of large companies who tended to steer clear of each others' territories.
There are often very few bidders when taxpayer-supported services are put out to tender and in a quarter of cases there is just one contender, the watchdog found. It also pointed to complaints alleging "predatory behaviour" by established operators designed to exclude new entrants.
At least 1.2 billion pounds in public money goes towards supporting local bus services each year.
Arriva, FirstGroup, Go-Ahead National Express and Stagecoach are among the country's biggest private bus and rail operators.

FTSE 100 firms on track for CO2 target

Companies in the FTSE 100 are on track to meet Britain's 2020 carbon emissions targets, despite lax commitments from the heaviest polluters, a report showed on Thursday.
On average, FTSE 100 companies have pledged to reduce their greenhouse gas emissions by 2.5 percent annually, in line with what is needed to reach the first milestone en route to deep cuts by 2050, the Carbon Disclosure Project (CDP) said.
The UK Climate Change Act, passed in 2008, sets an emissions cut target of 80 percent below 1990 levels by 2050, with an interim target of a 34-42 percent cut by 2020.
The CDP said annual cuts of 2-3 percent are needed from companies in order to meet this.
The 24 firms in the FTSE 100's energy, basic materials and utilities sectors, which collectively account for 87 percent of the index's total emissions, have pledged to cut by only 1.2 percent per year.
"The targets set by the most carbon intensive sectors, responsible for the majority of FTSE 100 emissions, are not sufficiently ambitious and will not deliver reductions required by the UK Climate Change Act," the CDP said.
The report showed that the basic materials sector, which accounts for 27 percent of FTSE 100 emissions and includes mining companies like Rio Tinto (RIO.L) and BHP Billiton (BLT.L), forecasted an annual rise of 1.5 percent, making it the only sector that said it will grow emissions.
Utilities including Scottish & Southern (SSE.L) pledged annual cuts of 2.4 percent, while energy (oil and gas) companies said they would cut by 2 percent per year.
Firms that fail to reduce their emissions significantly from 2013 may also be forced to buy additional carbon permits under the EU's emissions trading scheme, a move that could raise European carbon prices.

Ryanair told must respect Italian rules

Irish airline Ryanair Holdings Plc (RYA.I) must observe Italian rules on passenger documentation if it wants to operate in the country, Infrastructure Minister Altero Matteoli said in an interview published on Thursday.
The low-cost carrier said in December it would stop domestic flights at 10 Italian airports from January 23 in a row with civil aviation authority ENAC over security standards for check-in documents.
ENAC and Ryanair officials are meeting on Thursday to discuss safety rules.
"If it (Ryanair) wants to operate in Italy, it must respect rules on documents imposed by ENAC on everybody. On this no mediation is possible," Matteoli was quoted as saying by La Stampa newspaper.
Ryanair objects to a decision by ENAC to lower requirements on documents presented by passengers.
ENAC Chairman Vito Riggio told Reuters on December 30 that security standards at Italian airports were certified by international bodies.

FTSE seen opening flat to lower

The FTSE 100 .FTSE is seen opening unchanged to down 5 points on Thursday according to financial bookmakers, with investors seen staying on the sidelines ahead of the interest rate decision later in the session and always key U.S. non-farm payrolls numbers on Friday.
The blue chip index is seen opening as much as 0.1 percent lower, after hitting a fresh 16-month high on Wednesday when the index gained 7.54 points to close at 5,530.04.
Investors will be focussed on the Bank of England's announcement at 12 p.m. for any changes to interest rates, which are at a record low of 0.5 percent, and for amendments to the 200 billion pound quantitative easing (QE) programme. Analysts, however, expect no changes to interest rates or the QE amount.
On Friday investors will await the December figures for U.S. non-farm payrolls for a fresh indication of the health of the economy. Economists polled by Reuters expect 8,000 job losses in December after a surprisingly small 11,000 drop in November.
No significant economic data from the UK is scheduled for Thursday. U.S. data set for release later in the session include weekly jobless claims data at 1:30 a.m. British time and comparable chain store sales numbers for December.

Sainsbury's sales growth tops forecast

J Sainsbury, Britain's No. 3 grocer, beat third-quarter sales growth forecasts on Thursday, as rising customer numbers and strong sales of non-food ranges offset lower food price inflation.
However the 141-year-old firm, which runs over 500 supermarkets and about 300 convenience stores, joined other retailers in injecting a note of caution about prospects for 2010, saying the consumer environment remained "challenging."
Sales at shops open at least a year rose 4.2 percent, excluding petrol and VAT sales tax, in the 13 weeks to January 2.
That was down from 5.4 percent in the second quarter, due to lower food price inflation, but above analysts' average forecast of 3.7 percent in a Reuters poll of 12.
Sainsbury said it served on average 1 million more customers a week over the quarter, with many attracted by its "coupon at till" loyalty scheme, and sales of non-food ranges like toys and clothes grew at over four times the rate of food.
Market researchers Nielsen said earlier on Thursday that non-food sales drove a strong Christmas for all four of Britain's top grocers.
Trading updates from other retailers suggest they also enjoyed a good Christmas, with low interest rates helping to prop up consumer spending despite the recession.
Fashion chain New Look on Thursday reported a 5.9 percent rise in underlying Christmas sales.

Iceland says will "honour its obligations"

Iceland will "honour its obligations" over the more than $5 billion (3.1 billion pounds) owed to Britain and the Netherlands that was lost in failed savings banks, President Olafur Grimsson told British television.
The Icelandic parliament had approved a deeply unpopular bill to cover compensation already paid out by the British and Dutch governments to holders of "Icesave" accounts after Icelandic banks collapsed in 2008.
But Grimsson stunned international financial markets and the government on Tuesday by refusing to sign it and forcing a referendum on the issue.
"The view that we will not honour our obligations is completely wrong," Grimsson told the BBC Newsnight programme late on Wednesday. "The fundamental basis of the law which is already in existence and which I signed is that Iceland declares it honours its obligations."
The dispute over the Icesave payments has severely strained relations between Reykjavik and London, with Britain warning Iceland faces economic isolation if voters reject the bill.
Asked if people could trust Icelanders anymore, Grimsson replied: "We should involve ourselves in a constructive agreement with the British and Dutch governments in order to resolve this issue."
"The only thing that I have decided is to allow the Icelandic people to have the final say in a referendum which is in accordance with our fundamental democratic principles."
Iceland's government proposed on Wednesday a February 20 referendum on the issue that has divided the country. Grimsson did not say what would happen if the country voted against the bill.

Bank to stay on autopilot until February

The Bank of England is unlikely to tamper with its monetary policy settings on Thursday, but growing signs the country has pulled out of recession mean it is expected to halt its quantitative easing programme next month.
The Bank's Monetary Policy Committee voted unanimously in December to leave interest rates at 0.5 percent and to keep its target for asset purchases -- the bulk of which have been gilts -- at 200 billion pounds.
The Bank is on track to complete the last of these gilt purchases just before its February meeting, by which time it will also have fourth-quarter GDP data and new growth and inflation forecasts to hand.
"The Monetary Policy Committee is likely to wait for February's inflation report before reviewing its asset purchase programme," said Vicky Redwood at Capital Economics.
Since it exhausted its conventional monetary firepower in March by cutting rates to 0.5 percent and began buying gilts, the MPC has only ever tweaked policy in months that coincide with its quarterly projections.
Preliminary Q4 figures due later this month are expected to confirm the economy returned to growth at the end of 2009, but economists are split on the extent to which the economy will maintain traction over the course of the coming year.
Recent activity indicators have been encouraging. Manufacturing and services sectors are growing at their fastest pace in two years, and money supply growth and bank lending both picked up at the end of last year.
But consumer confidence fell in December and analysts warn that headwinds to recovery remain, not least a record government deficit which will require deep cuts to public spending in the coming years.

Job placements up fastest in 29 months

Permanent job placements in Britain grew at their fastest pace in nearly two-and-a-half years in December while salaries rose for the second month running, a survey showed on Wednesday.
The REC/KPMG index of permanent placements by recruitment agencies rose to 62.8 in December from 61.7 in November - the fifth consecutive month it has been above the 50 level that separates growth from contraction and the highest since July 2007.
The index of temporary staff placements increased to a 30-month high of 59.7 from 56.1 in November.
Average salaries for permanent staff rose for a second month running, the survey showed, with the index rising to 53.7 from 51.9 the previous month.
"As we head into 2010, the recovery of the UK jobs market is accelerating," said REC chief executive Kevin Green. "Employer confidence is increasing and vacancies are on the up."
But the labour market recovery could be stifled by cutbacks in public sector jobs expected after this year's election to tackle the government's ballooning budget deficit, said Bernard Brown, KPMG's head of business services.
"The jobs market has been cushioned in recent years by continued public sector expansion," he said. "If this is put into reverse post-election, it could have a significant effect on employment figures."

Consumer morale falls; job prospects up

Consumer confidence suffered its sharpest fall in over a year in December, a survey showed on Wednesday, even as separate figures showed both job placements and wages rose last month.
The Nationwide Building Society's consumer confidence index fell to 69 from an upwardly revised 74 in November, after respondents sharply scaled back their expectations for the coming year.
Nonetheless, the headline index is still significantly above the record low of 45 hit in January.
"An element of caution may have begun to creep back into the minds of consumers over the Christmas period," said Martin Gahbauer, Nationwide's chief economist.
"The looming VAT hike and other tax changes announced in the pre-Budget report may have impacted on confidence in December, forcing people to review their expectations for the future," Gahbauer added.
Separate figures showed permanent job placements in Britain grew at their fastest pace in nearly two and a half years in December while salaries rose for the second month running.
The REC/KPMG index of permanent placements by recruitment agencies rose to 62.8 in December from 61.7 in November - the fifth consecutive month it has been above the 50 level that separates growth from contraction and the highest since July 2007.
But Bernard Brown, KPMG's Head of Business Services, said the recovery in the job market could be stifled by cut backs in public spending after this year's election to tackle the government's ballooning budget deficit.

first time in nine months

The S&P 500 and the Nasdaqrose on Tuesday as better-than-expected factory orders and asurge in vehicle sales at Ford Motor Co (F.N: Quote, Profile, Research) provided moreevidence of an economic recovery.But a big decline in pending home sales, which fell in
November for the first time in nine months, increased concerns
about the housing market. That capped the broad market's gains
and pushed the Dow industrials into the red a day after all
three major U.S. stock indexes rose to their highest levels in
over a year. For the past month, stocks have advanced as investors bet
on a series of better-than-expected economic indicators. Much
of that optimism appeared to remain intact on Tuesday as S&P
indexes for the financial, materials and energy sectors ended
the day higher. Tuesday marked a new 15-month closing high for the S&P 500
and a 16-month closing high for the Nasdaq. "There is nothing in here to suggest that investors are
backing away at all from the sentiment expressed yesterday,
which is one of increased optimism about the global recovery,"
said Craig Peckham, equity trading strategist at Jefferies &
Company in New York.Peckham pointed to what he termed a "slow and measured
march higher" in expectations for a better reading in Friday's
non-farm payrolls report. The Dow Jones industrial average .DJI fell 11.94 points,
or 0.11 percent, to end at 10,572.02. The Standard & Poor's
500 Index .SPX rose 3.53 points, or 0.31 percent, to finish
at 1,136.52. The Nasdaq Composite Index .IXIC crept up just
0.29 of a point, or 0.01 percent, to close at 2,308.71. GET YOUR MOTOR RUNNING Ford Motor Co (F.N: Quote, Profile, Research) surged 6.6 percent to $10.96, hitting
a 4-1/2-year closing high following its report that its
December sales shot up 33 percent year-over-year, ending a
tumultuous 12 months when rivals GM and Chrysler collapsed
into bankruptcy. Earlier in the session, Ford's stock climbed
to an intraday high of $11.23. Earlier Tuesday, the government said U.S. factory orders
rose more than expected in November. The report, which
suggested the manufacturing sector will continue to support a
recovery, was released one day after the Institute for Supply
Management's index of manufacturing activity beat estimates. Financials, energy, materials and consumer discretionary
stocks gave the biggest boosts to the S&P 500 in a muted rerun
of Monday's rally. The S&P financial index led the wider market
higher, rising 1.7 percent, with Citigroup ending up 3.8
percent at $3.53 on the New York Stock Exchange. HOME SALES SWING BOTH WAYS Pending home sales from the National Association of
Realtors fell 16 percent in November compared with economists'
expectations for a 2 percent drop. But stocks of most home builders rose, sending the Dow
Jones home construction index up 1.8 percent. Some
analysts said the home sales numbers may have been skewed due
to confusion caused by the government's home tax credit, which
was set to expire in November, but it was eventually extended
to April. "I think people are more willing to shake off these
November pending home sales numbers and focus more on that
factory orders number," said Marc Pado, U.S. market strategist
at Cantor Fitzgerald & Co. in San Francisco. The U.S. dollar edged up 0.15 percent against a basket of
major currencies .DXY, curbing gains in the materials and
energy sectors. The S&P materials index advanced 0.5
percent, while an S&P energy index rose 0.8 percent. U.S. oil futures CLc1 rose 0.32 percent, or 26 cents, to
settle at $81.77 a barrel, the highest closing price since
Oct. 9, 2008. This marked the ninth day of gains for oil
futures prices. The Dow's top performer was Kraft Foods Inc (KFT.N: Quote, Profile, Research), which
gained 4.9 percent to $28.77 after Warren Buffett's Berkshire
Hathaway (BRKa.N: Quote, Profile, Research) voted "no" on the company's proposal to
issue 370 million shares to help finance its proposed purchase
of British chocolate candy maker Cadbury Plc (CBRY.L: Quote, Profile, Research).
[ID:nLDE6040C0] Volume was light on the New York Stock Exchange, with 1.19
billion shares changing hands, below last year's estimated
daily average of 2.18 billion. On the Nasdaq, about 2.39
billion shares traded. Advancing stocks outnumbered declining ones on the NYSE by
a ratio of 3 to 2. On the Nasdaq, the opposite trend
prevailed, with five stocks falling for every four that rose. (Reporting by Edward Krudy; Editing by Jan Paschal)

Gov’t, JBIC reach deal on yen bond guarantee

A Finance official, however, said it remained uncertain if the sale of the Samurai bonds would be made this month given the necessary paperwork.
National Treasurer Roberto B. Tan told Reuters the government was looking at an initial $500-million Samurai bond sale but did not give details.
Finance Secretary Margarito B. Teves last week said the issuance could be staged as early as this month.
"There is now a firm agreement," Mr. Tan said regarding the government’s talks with the JBIC on the guarantee terms.
"We are just waiting for the signing [of the deal]," he said.
This was confirmed by Rosalia V. de Leon, officer-in-charge of the Finance department’s international finance group.
"We already agreed on the fees but we cannot disclose it," she told BusinessWorld in a telephone interview.
Reuters said the signing of an agreement was expected to take place next week when JBIC President Hiroshi Watanabe visits the Philippines to attend a forum hosted by the Asian Development Bank on the global financial crisis.
"[We are] not sure [if the Samurai bond float will be done this month]. We have to complete some documents. It will depend on how long these would be completed," Ms. de Leon said.
Mr. Tan said the offering may take longer to execute than a dollar bond issue.
A source who requested anonymity said a Samurai bond issue this month was unlikely, noting that the government had sought the central bank’s approval for the sale of either dollar or euro-denominated papers.
The source confirmed that the BSP had given its approval but declined to elaborate. Previous reports said the government had sought approval for the sale of up to $1.5 billion.
The government sold dollar-denominated securities thrice last year to support its expenditure program and cover a budget shortfall that is expected to have reached as much as P298 billion.
The Samurai bond offer was proposed in the middle of the year, with JBIC saying in June it was ready to guarantee up to $1 billion.

Too many businesses large

Too many businesses large and small look at search engine optimization as a nuisance and an expense, since when is promoting your business online a nuisance and expense? Search engine optimization and marketing should be viewed as an investment. When you approach you’re online marketing from just a rankings stand point it can be quite difficult to see the value in search engine marketing.SEO is not just a technical approach to get you on the first page of Google for a certain keyword phrase. If your business approaches it from that angle you might never see the importance of search engine optimization. Proactively marketing yourself online creates little pieces of dust floating around online connecting directly to your brand or business. If you connect all those little pieces of dust they all funnel down to your website creating many little pathways to your website, the bigger the network of dust the more opportunity for really becoming visible online in front of your target audience. This network takes time to build but once it is built a website can see a nice steady stream of traffic, qualified traffic if done correctly. This approach should not be viewed as just something technical to manipulate search results but rather a long term marketing plan and goal with rankings occurring as a byproduct but not the only byproduct. SEO is an effort that takes time to really ramp up and work correctly. This is why it is important to realize that it is an investment.Building up a website online is no different than building up a brand or offline business. This process is where the investment is very important. The investment comes in many different shapes and sizes which also brings many different types of rewards. The rewards are not just search rankings which many think is the way to gauge if your online marketing campaign is really working. Rewards come in stories being written on your business from different bloggers or potential customers reaching out to you on the various social networks. Numbers don’t lie so it will be important to view your analytics information. Do you all of a sudden see a surge in websites sending you traffic? This did not happen by accident. This is a direct result of your online SEO efforts. Over time the traffic and rankings increase. This is why it is very important to realize that search engine optimization is a long term approach that truly requires patience and the ability to think outside the box.

Hewitt suffers internet loss with eSwap

TENNIS star Lleyton Hewitt's internet business eSwap has run up losses of more than $440,000, company accounts show.
The business, which runs the auction website eSwap.com.au, had income of just $2037.89 and spent almost $211,000 on advertising and promotion in 2008, the accounts show.
"You will notice that since officially launching in December 2007 there has been limited income to eSwap Limited," the company says in the report.
"This is because the website has been offering free basic listings and free store listings to entice regular users to the site.
"We envisage this practice to continue through 2008 until we have sufficient user base to encourage a basic fee structure."
The website was still offering free listings yesterday.
Depending on price and type of goods, its competitor eBay, which dominates the online auction market, charges between 30c and $49.95 to list an item for sale.
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"The biggest challenge in the future is the continuance of building eSwap.com.au as a viable brand name," the company says in the report.
Lleyton and Bec Hewitt will "where possible act as ambassadors to assist in encouraging Australian and international celebrities to provide items for donation to be auctioned on eSwap", the directors' report says.
Hewitt's manager, David Drysdale, said the accounts showed the company's set-up costs.
"The eSwap site will be relaunched early this year," he said.
The company's report covers the 12 months to June 2008 but was filed in August last year.
It is unsigned, but company records show eSwap's directors are Hewitt's father Glynn Hewitt, Denis Ryan and Samuel Ryan.
Wages for Samuel Ryan, the company's customer services manager, and technical and software designer Michael Benkovich totalled about $116,000.
Computer software and web-hosting services cost more than $50,000 and rent ate up an additional $23,000.
Hewitt, who is competing in the Hopman Cup in Perth, is fighting an unrelated court battle against his former sports and financial agency, US-based Octagon.
Financial advice from Octagon cost him $500,000 in lost income, the Supreme Court has been told.
Hewitt, seeking $1.35 million in damages, has also alleged Octagon wrongly deducted more than $350,000 in fees from Nike and for his appearances at tournaments around the world.