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<title>Latest Business News from Times Online</title>
<description>The latest business news from The Times and Sunday Times</description>
<language>en-uk</language>
<pubDate>Tue, 30 Oct 2007 15:37:29 GMT</pubDate>
<copyright>Copyright 2007 Times Newspapers Ltd.</copyright>
<webMaster>support@timesonline.co.uk</webMaster>
<lastBuildDate>
Mon, 12 May 2008 04:50:04 BST
</lastBuildDate>
<category>Newspapers</category>
<image>
<title>Times Online Britain - The best of The Times and Sunday Times, in real time </title>
<width>144 </width>
<height>21 </height>	
<link>http://www.timesonline.co.uk </link>
<url>http://images.thetimes.co.uk/TGD/picture/0,,116979,00.gif </url>
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<item>
<title><![CDATA[HSBC write&#45;offs hit $50bn, claims investor&#36;]]></title>
<pubDate>
Mon, 12 May 2008 09:55:59 BST
</pubDate>
<link>
<![CDATA[http://www.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article3915584.ece#cid=OTC-RSS&attr=1185799]]>
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<![CDATA[http://www.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article3915584.ece]]>
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<description>	
<![CDATA[Knight Vinke, the shareholder activist, today accused HSBC of writing off $50 
billion (&#36;&#163;25.4 billion) on sub&#45;prime debt and related losses, double the 
amount the British bank has declared since 2006.]]>	
</description>
</item>
<item>
<title><![CDATA[Factory gate inflation worst for 22 years]]></title>
<pubDate>
Mon, 12 May 2008 10:06:16 BST
</pubDate>
<link>
<![CDATA[http://www.timesonline.co.uk/tol/business/economics/article3915655.ece#cid=OTC-RSS&attr=1185799]]>
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<![CDATA[http://www.timesonline.co.uk/tol/business/economics/article3915655.ece]]>
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<description>	
<![CDATA[The price of goods leaving British factories rose at a record rate in April as 
the cost of raw materials soared, official figures show today, and denting 
hopes of a rate cut next month.]]>	
</description>
</item>
<item>
<title><![CDATA[British Gas to raise prices as profits slump]]></title>
<pubDate>
Mon, 12 May 2008 08:26:25 BST
</pubDate>
<link>
<![CDATA[http://www.timesonline.co.uk/tol/business/industry_sectors/natural_resources/article3915042.ece#cid=OTC-RSS&attr=1185799]]>
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<![CDATA[http://www.timesonline.co.uk/tol/business/industry_sectors/natural_resources/article3915042.ece]]>
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<![CDATA[Millions of homeowners face a second rise in the gas and electricity bills 
this year as British Gas owner Centrica grapples with a slump in its 
profits.]]>	
</description>
</item>
<item>
<title><![CDATA[Currys owner poised to shed 400 jobs]]></title>
<pubDate>
Mon, 12 May 2008 16:34:41 BST
</pubDate>
<link>
<![CDATA[http://www.timesonline.co.uk/tol/business/industry_sectors/retailing/article3918541.ece#cid=OTC-RSS&attr=1185799]]>
</link>
<guid>
<![CDATA[http://www.timesonline.co.uk/tol/business/industry_sectors/retailing/article3918541.ece]]>
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<description>	
<![CDATA[The new chief executive of DSG International, the Currys to PC World 
electricals group, is expected to cut 400 head office jobs as part of a 
strategic shake&#45;up later this week.]]>	
</description>
</item>
<item>
<title><![CDATA[BlackBerry unveils Bold challenge to iPhone]]></title>
<pubDate>
Mon, 12 May 2008 12:09:31 BST
</pubDate>
<link>
<![CDATA[http://www.timesonline.co.uk/tol/business/industry_sectors/technology/article3916530.ece#cid=OTC-RSS&attr=1185799]]>
</link>
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<![CDATA[http://www.timesonline.co.uk/tol/business/industry_sectors/technology/article3916530.ece]]>
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<description>	
<![CDATA[Research in Motion, the creator of the BlackBerry, has today launched a 
slicker, faster and more powerful version of the businessman's favourite toy 
in an apparent attempt to compete with Apple's iPhone.]]>	
</description>
</item>
<item>
<title><![CDATA[FSA fines Land of Leather for PPI failures]]></title>
<pubDate>
Mon, 12 May 2008 14:35:28 BST
</pubDate>
<link>
<![CDATA[http://www.timesonline.co.uk/tol/business/article3917117.ece#cid=OTC-RSS&attr=1185799]]>
</link>
<guid>
<![CDATA[http://www.timesonline.co.uk/tol/business/article3917117.ece]]>
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<description>	
<![CDATA[Land of Leather and its chief executive, Paul Briant, today received heavy 
fines from the Financial Services Authority (FSA) after inadequately trained 
sales staff were allowed to sell payment protection insurance (PPI) on loans.]]>	
</description>
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<item>
<title><![CDATA[Government must stop middle class debt crisis]]></title>
<pubDate>
Mon, 12 May 2008 16:22:38 BST
</pubDate>
<link>
<![CDATA[http://www.timesonline.co.uk/tol/business/money/borrowing/article3918441.ece#cid=OTC-RSS&attr=1185799]]>
</link>
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<![CDATA[http://www.timesonline.co.uk/tol/business/money/borrowing/article3918441.ece]]>
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<description>	
<![CDATA[The middle class are sleep walking into a debt crisis and the Government is 
failing to act, a leading City investment bank warned today.]]>	
</description>
</item>
<item>
<title><![CDATA[Northern Rock hit by mortgage defaults]]></title>
<pubDate>
Mon, 12 May 2008 11:42:19 BST
</pubDate>
<link>
<![CDATA[http://www.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article3916424.ece#cid=OTC-RSS&attr=1185799]]>
</link>
<guid>
<![CDATA[http://www.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article3916424.ece]]>
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<description>	
<![CDATA[The number of mortgage borrowers with Northern Rock falling behind on 
repayments has risen by two thirds in the past four months, the nationalised 
bank revealed today.]]>	
</description>
</item>
<item>
<title><![CDATA[Farepak liquidators to sue former directors]]></title>
<pubDate>
Mon, 12 May 2008 11:47:18 BST
</pubDate>
<link>
<![CDATA[http://www.timesonline.co.uk/tol/business/industry_sectors/consumer_goods/article3915912.ece#cid=OTC-RSS&attr=1185799]]>
</link>
<guid>
<![CDATA[http://www.timesonline.co.uk/tol/business/industry_sectors/consumer_goods/article3915912.ece]]>
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<description>	
<![CDATA[The liquidators of Farepak are suing the company&#8217;s former directors over the 
high&#45;profile collapse of the Christmas savings club two years ago.]]>	
</description>
</item>
<item>
<title><![CDATA[Tempus: Trouble in store]]></title>
<pubDate>
Mon, 12 May 2008 12:25:01 BST
</pubDate>
<link>
<![CDATA[http://www.timesonline.co.uk/tol/business/economics/article3916769.ece#cid=OTC-RSS&attr=1185799]]>
</link>
<guid>
<![CDATA[http://www.timesonline.co.uk/tol/business/economics/article3916769.ece]]>
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<description>	
<![CDATA[The credit crunch has so far done few favours to consumers. But it looks as 
though the fall&#45;out from the economic turmoil is likely to shield shoppers 
from price increases &#45; at least in the short term.]]>	
</description>
</item>
<item>
<title><![CDATA[Tempus: The heat is on]]></title>
<pubDate>
Mon, 12 May 2008 12:00:55 BST
</pubDate>
<link>
<![CDATA[http://www.timesonline.co.uk/tol/business/industry_sectors/utilities/article3916539.ece#cid=OTC-RSS&attr=1185799]]>
</link>
<guid>
<![CDATA[http://www.timesonline.co.uk/tol/business/industry_sectors/utilities/article3916539.ece]]>
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<description>	
<![CDATA[Centrica, the owner of British Gas, sits between a rock and a hard place. 
Every time it raises prices for its millions of domestic gas and electricity 
customers it risks a consumer backlash.]]>	
</description>
</item>
<item>
<title><![CDATA[Tempus: Recession cry]]></title>
<pubDate>
Mon, 12 May 2008 13:13:40 BST
</pubDate>
<link>
<![CDATA[http://www.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article3917102.ece#cid=OTC-RSS&attr=1185799]]>
</link>
<guid>
<![CDATA[http://www.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article3917102.ece]]>
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<description>	
<![CDATA[The worrying disclosure in HSBC's first quarter trading update is not the 
multi&#45;billion dollar writedowns, which came to $2.6 billion in the 
investment banking business and $3.2 billion in HSBC Finance, the US 
operations. These are expected and came in lower than some estimates. It is 
the bank's downbeat view of the US economy that is of concern.&#36;]]>	
</description>
</item>
<item>
<title><![CDATA[Royal Dutch Shell pulls out of $10bn Iran project&#36;]]></title>
<pubDate>
Mon, 12 May 2008 08:30:36 BST
</pubDate>
<link>
<![CDATA[http://www.timesonline.co.uk/tol/business/industry_sectors/natural_resources/article3915052.ece#cid=OTC-RSS&attr=1185799]]>
</link>
<guid>
<![CDATA[http://www.timesonline.co.uk/tol/business/industry_sectors/natural_resources/article3915052.ece]]>
</guid>
<description>	
<![CDATA[Royal Dutch Shell has apparently caved into political pressure from the US in 
backing out of a $10 billion gas project in Iran.&#36;]]>	
</description>
</item>
<item>
<title><![CDATA[China lifts reserve requirement for banks]]></title>
<pubDate>
Mon, 12 May 2008 07:48:44 BST
</pubDate>
<link>
<![CDATA[http://www.timesonline.co.uk/tol/business/economics/article3914911.ece#cid=OTC-RSS&attr=1185799]]>
</link>
<guid>
<![CDATA[http://www.timesonline.co.uk/tol/business/economics/article3914911.ece]]>
</guid>
<description>	
<![CDATA[China's central bank has ordered banks to set aside larger reserves for the 
fourth time this year after the country's inflation accelerated close to its 
highest level since 1996.]]>	
</description>
</item>
<item>
<title><![CDATA[Westpac and St George Bank mull &#163;31bn merger]]></title>
<pubDate>
Mon, 12 May 2008 11:07:07 BST
</pubDate>
<link>
<![CDATA[http://www.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article3915585.ece#cid=OTC-RSS&attr=1185799]]>
</link>
<guid>
<![CDATA[http://www.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article3915585.ece]]>
</guid>
<description>	
<![CDATA[Westpac Banking Corporation, Australia&#8217;s oldest company, is in talks with a 
smaller rival to create a A$64 billion (&#36;&#163;31 billion) institution with a 
customer base equivalent to about half the size of the country&#8217;s population.]]>	
</description>
</item>
<item>
<title><![CDATA[International Power buys US plant to cash in on shortages]]></title>
<pubDate>
Mon, 12 May 2008 13:13:06 BST
</pubDate>
<link>
<![CDATA[http://www.timesonline.co.uk/tol/business/industry_sectors/utilities/article3915511.ece#cid=OTC-RSS&attr=1185799]]>
</link>
<guid>
<![CDATA[http://www.timesonline.co.uk/tol/business/industry_sectors/utilities/article3915511.ece]]>
</guid>
<description>	
<![CDATA[International Power, the British&#45;based power generator, has bought a range of 
power stations in the US are designed to profit from the increasing 
shortages of energy in America.]]>	
</description>
</item>
<item>
<title><![CDATA[Mervyn King to grimace and bear bad news]]></title>
<pubDate>
Mon, 12 May 2008 00:00:49 BST
</pubDate>
<link>
<![CDATA[http://www.timesonline.co.uk/tol/business/economics/article3913173.ece#cid=OTC-RSS&attr=1185799]]>
</link>
<guid>
<![CDATA[http://www.timesonline.co.uk/tol/business/economics/article3913173.ece]]>
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<description>	
<![CDATA[When the Bank of England&#8217;s Governor unveils its latest prognosis for the 
economy this week, he is likely to adopt his sternest demeanour. The message 
from Mervyn King may not be quite as bleak as Churchill&#8217;s famous admonition 
that he had &#8220;nothing to offer but blood, toil, tears and sweat&#8221;, but it may 
not be far off.
The Bank&#8217;s hardline decision last week to keep interest rates on hold despite 
the latest spate of dreadful news over worsening economic conditions gave a 
foretaste of the granite&#45;hard fa&#231;ade that it is set to present to the 
country in its latest quarterly Inflation Report on Wednesday.
The &#8220;no change&#8221; verdict on interest rates from Threadneedle Street can only 
have appeared to much of the country at large like an exercise in monetary 
sado&#45;masochism. Yet the harsh reality that confronts the Bank&#8217;s Monetary 
Policy Committee (MPC) is that it remains trapped between an economic rock 
and a hard place.
Far from easing as the economic outlook has grown darker, the conflicting 
pressures confronting the MPC &#8211; from faltering growth and activity on the 
one hand and simmering inflationary pressures on the other &#8211; have 
intensified.
The deluge of ever more dismal economic indicators now leaves little doubt 
that the economy is facing its most testing two&#45;year stretch since the early 
Nineties. Yet as the going gets much tougher, the persistence of the 
inflation threat condemns the Bank to talk, and act, tough, too.
The MPC&#8217;s mission to ensure that inflation hits its 2 per cent target over the 
medium term leaves it scant room for manoeuvre. It is forced to act only 
cautiously, even as the demands for more aggressive and urgent action 
escalate.
The Bank&#8217;s dilemma seems set only to be become more acute through the summer, 
as the Inflation Report is likely to spell out. If anything, the 
MPC&#8217;s latest assessment is likely to understate the full scale of dangers to 
growth prospects that have emerged.
At the heart of the heightened risks is the increasingly dire straits of the 
housing market, which appears to be locked into a vicious downward spiral 
triggered by the mortgage lending drought.
The severe squeeze on the availability of home loans is combining with falling 
house prices to cause demand in the property market to dry up, with cautious 
buyers holding out for the much lower prices they expect in future. As 
demand and market activity drop, and the supply of unsold houses grows, 
prices fall farther and faster. In turn, that farther deters would&#45;be buyers 
and makes lenders become even more cautious, fuelling an ever steeper 
downward slide.
The scale of these trends is underlined by the Council of Mortgage Lenders&#8217; 
data, highlighted by Michael Saunders, of Citigroup, which shows the drastic 
tightening of lending conditions since the start of the year. The number of 
new home loans agreed plunged by more than 30 per cent in the first quarter, 
compared with the same period a year earlier. In March, approvals of new 
mortgages fell to the lowest since 1992.
Although the Bank of England&#8217;s &#163;50 billion lifeline, designed to ease the 
funding pressures on lenders, may limit the squeeze, Mr King has been 
bluntly candid that it is far from intended as a cureall for the mortgage 
market.
The clear peril for the economy is that the toll on sentiment and household 
wealth from an increasingly severe housing correction now sees the credit 
crunch mutate into a brutal consumer crunch as households pull back their 
spending.
The Bank tends to play down the repercussions of falling house prices for 
consumer demand. Yet signs are already accumulating that the consumer may 
embark on a full&#45;scale retreat from the high street. Consumer confidence has 
slumped to 15&#45;year lows, while polls show that concern over the state of the 
economy is at its highest levels since 1993.
As other signs of economic weakness pile up, it is becoming painfully clear 
that Britain, far from being better placed than its rivals to weather global 
economic squalls, as the Chancellor and Prime Minister claim, is markedly 
worse off.
As Mr Saunders argues, the UK is left badly exposed by the highest household 
debt burden in the Group of Seven leading industrial economies, alongside 
severely inflated house prices and low household savings.
The price of a protracted period of living beyond our means may now have to be 
paid. Long years of high spending, as well as heavy borrowing excess. are 
making the fallout from the credit crunch more painful and the boost from 
the Bank&#8217;s limited easing of interest rates less potent.
Yet, worse still, the same past excesses, in the form of a swollen current 
account deficit, are adding to the acute pressure on a sharply weakening 
pound, already hit by Britain&#8217;s worsening growth outlook. Sterling&#8217;s steep 
slide &#8211; by about 12 per cent in the past year &#45; is aggravating the Bank&#8217;s 
inflation headache by raising the nation&#8217;s import bills and further curbing 
its scope to cut base rates to underpin faltering growth.
With the pound set to tumble still farther, oil prices having surged to record 
levels of above $120 a barrel and the cost of food in global markets 
soaring, the City expects that the Bank will raise its forecasts for 
inflation this week. It is likely to give warning that headline consumer 
price inflation will rise above 3 per cent over the summer, forcing Mr King 
to pen what will be only his second explanatory letter to the Chancellor.
Against this background, the Governor can be expected to make it brutally 
plain on Wednesday that further easing of interest rates will be only 
limited and gradual.
Ultimately, the extent of the slowdown now taking hold in the economy will 
quell the inflationary threat that the Bank is, for now, compelled to 
prioritise over risks the growth.&#36;]]>	
</description>
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<title><![CDATA[Charles Dunstone keys into the laptop phenomenon]]></title>
<pubDate>
Sun, 11 May 2008 00:00:00 BST
</pubDate>
<link>
<![CDATA[http://www.timesonline.co.uk/tol/business/columnists/article3908050.ece#cid=OTC-RSS&attr=1185799]]>
</link>
<guid>
<![CDATA[http://www.timesonline.co.uk/tol/business/columnists/article3908050.ece]]>
</guid>
<description>	
<![CDATA[SHAREHOLDERS take a lot on trust with Charles Dunstone, chief executive of 
Carphone Warehouse. He is an entrepreneur who has created a FTSE&#45;100 company 
based on reading changes in the fast&#45;moving communications and technology 
market. And for investors who have backed him, their loyalty has paid off. 
The company has morphed from a mobile&#45;phone retail specialist to selling 
broadband and is now intending to ride the laptop boom. It&#8217;s easy to get 
left behind in this game and lose your relevance to the marketplace, but so 
far, bar a few hiccups in terms of delivery, Dunstone has kept up with the 
trends.]]>	
</description>
</item>
<item>
<title><![CDATA[Why high oil prices are not squeezing us more]]></title>
<pubDate>
Sun, 11 May 2008 00:00:00 BST
</pubDate>
<link>
<![CDATA[http://www.timesonline.co.uk/tol/business/columnists/article3908053.ece#cid=OTC-RSS&attr=1185799]]>
</link>
<guid>
<![CDATA[http://www.timesonline.co.uk/tol/business/columnists/article3908053.ece]]>
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<description>	
<![CDATA[IT is hard to keep up with the price of oil. No sooner have we got used to 
$100 a barrel than it is in the $120s. Will the price rise to $150, $200 or 
even $300 a barrel? How far can it rise without doing severe damage to the 
world economy?&#36;]]>	
</description>
</item>
<item>
<title><![CDATA[Renault&#45;Nissan team up with Bajaj Auto in rival to Nano car]]></title>
<pubDate>
Mon, 12 May 2008 16:51:19 BST
</pubDate>
<link>
<![CDATA[http://www.timesonline.co.uk/tol/business/industry_sectors/engineering/article3918590.ece#cid=OTC-RSS&attr=1185799]]>
</link>
<guid>
<![CDATA[http://www.timesonline.co.uk/tol/business/industry_sectors/engineering/article3918590.ece]]>
</guid>
<description>	
<![CDATA[Renault&#45;Nissan has tied&#45;up with Bajaj Auto, the Indian motorbike manufacturer, 
to create an &#34;ultra low cost&#34; car that will compete head&#45;on with 
Tata's &#163;1,250 Nano.]]>	
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