Bigger iPhone Brings Record Profits For Apple

A new range of larger iPhones helped Apple to achieve record profits of $18bn (£11.8bn) in the final three months of 2014, the technology giant has announced.

The company sold 74.5 million smartphones between October and December, buoyed by the launch of the iPhone 6 Plus, which is equipped with a 5.5-inch screen.

Experts had expected total revenues of $53.6bn (£35bn) for the quarter - but according to Apple's CEO, Tim Cook, this was closer to $74.6bn (£49bn).

According to technology analysts, it took Apple a long time to come to grips with the fact that the public wanted larger screens - causing their market share to plummet.

Gartner's Van Baker said: "They finally closed the gap on a feature they were missing, which their competition had capitalised on."

Video: First iPhone 6 Owner Drops It

Some investors are concerned about how Apple will perform financially in the coming year, with iPad sales down 22% in the last quarter, and warnings that growth in the smartphone sector is beginning to slow.

The iPhone accounts for two-thirds of Apple's revenue.

Although the California-based firm is planning to launch a smartwatch in March, it remains unclear whether the device will be a big hit with customers.

Video: Sept: Complaints Of Bendy iPhone 6

Other companies have been disappointed with demand for similar offerings, amid concerns that the battery life is insufficient for a whole day's use.

Apple is currently the world's most valuable company, with a market capitalisation of $651bn (£428bn).

11.46 | 0 komentar | Read More

Protesters To Rally Against Fracking Proposals

By Mike McCarthy, North of England Correspondent

Demonstrators from around the UK are expected to gather in Lancashire today, ahead of a controversial decision on the future of fracking in the county.

It is the first time that Cuadrilla, an exploration company, has applied to develop new fracking sites since being blamed for creating earth tremors in Blackpool three years ago.

The firm suspended test drilling and abandoned its site near the seaside resort following the quakes in 2011.

The Preese Hall site remains the only place in the UK where modern fracking techniques have been used so far.

Tina Rothery says she has put her life on hold to campaign against fracking

The new areas sit on the same massive reserve of shale gas which experts say could help revolutionise Britain's energy market.

But groups opposed to fracking say it would industrialise the countryside and pollute the environment.

Video: The Process Of Fracking Explained

Cuadrilla has applied to Lancashire County Council for permission to frack two sites in a rural area between Preston and Blackpool.

Officers at the authority have recommended that councillors vote against the proposals because of concerns over noise and road safety.

If the councillors accept the recommendations, it will be seen as a major blow to the efforts to kick-start Britain's shale gas industry.

Anti-fracking campaigner Tina Rothery said: "Like many people in the anti-fracking movement, we have completely put our own lives on hold for four years just to get this done – because how do you walk away from this?

Video: MPs Reject Fracking Moratorium

"Every door I would look to walk out of would have my granddaughter's face on it. I can't walk away and go 'It's OK – they'll take care of it' because it's too big."

Fracking, or hydraulic fracturing, is the process of drilling a mile or more into the earth before water, chemicals and sand are injected under high pressure into rock, releasing the shale gas trapped inside.

In recent years, it has become one of the most divisive issues in the UK, leading to violent scenes between police and protesters at proposed sites in Manchester, Lancashire and Sussex.

Supporters such as Blackpool businessman Tony Raynor claim his interest in fracking was prompted by the local earth tremors several years ago.

Video: Bianca Jagger Debates Fracking

"Like most people, I was ambivalent to shale gas, but the tremors made me want to find out more. Now I'm in favour," he said.

"There are fewer jobs here now than there were in 2004 and we all worry about the brain drain (from the area) and our children finding opportunities in this region. We need economic activity happening in Blackpool."

The anti-fracking movement has built up considerably over recent years. Its supporters say pollution in the US has shown the process is environmentally unsustainable.

However, supporters argue that it has considerably reduced America's dependence on imported energy supplies and helped to bolster the economy.

Video: Aug 28: Is Fracking Worthwhile?

Cuadrilla has asked that the local authority allows more time to consider its proposals for minimising the environmental impact at fracking sites. If Lancashire councillors do reject Cuadrilla's plans, the company is expected to appeal.

11.46 | 0 komentar | Read More

BA Owner IAG Tables Fresh Bid For Aer Lingus

By Mark Kleinman, City Editor, in Davos

The parent company of British Airways (BA) has approached Aer Lingus about a fresh takeover bid for the Irish carrier.

Sky News can exclusively reveal that International Consolidated Airlines Group (IAG) submitted a revised proposal to the board of Aer Lingus within the last couple of days.

Sources said that the board of IAG had authorised an improved all-cash offer earlier this week worth at least €2.50 a share, which would value the Dublin-based airline at more than €1.3bn (£971m).

Directors of Aer Lingus discussed the proposal on Friday with their investment banking advisers from Goldman Sachs, according to insiders.

The disclosure of the approach by Sky News is likely to trigger stock exchange statements by both companies on Monday.

The fresh overture could be sufficient to persuade Aer Lingus to enter into formal takeover discussions with IAG, although it was unclear this weekend whether there were significant conditions attached to the proposal.

It was also unclear whether IAG might be prepared to raise its offer for a third time if the current proposal is rejected.

IAG's chief executive, Willie Walsh, is a former Aer Lingus pilot who went on to run the airline before taking the helm at BA in 2005.

He has made two previous approaches for the Dublin-based carrier, pitched at €2.30 and €2.40 a share, in the past six weeks.

Both were rebuffed by Aer Lingus on the basis that there were undisclosed conditions attached and that they "fundamentally undervalue[d] Aer Lingus and its attractive prospects".

Mr Walsh's attempt to acquire Aer Lingus is designed to cement its grip on take-off and landing rights at London's Heathrow Airport, while enabling him to improve the Irish carrier's profitability by combining some operations with those of IAG.

Already the largest carrier at Heathrow, a merger of the two companies would create a group with close to half of the available slots there.

A Government commission on aviation capacity led by Sir Howard Davies is due to recommend after the General Election whether Heathrow or Gatwick should be allowed to construct a new runway.

Even if Aer Lingus's board is minded to open talks with IAG, Mr Walsh will need to persuade the Irish Government and Ryanair chief executive Michael O'Leary of the bid's merits.

Ryanair owns a 29.8% stake in Aer Lingus and has fought a long-running battle with regulators over both that shareholding and a string of its own bids for its rival dating back to 2006.

Ryanair has been reported to be willing to consider an offer of between €2.50 and €2.70 a share, although the airline insisted on Saturday that this was inaccurate.

The Irish Government holds a 25.1% stake in the airline, and reports have suggested that it could insist that IAG retains Aer Lingus's Heathrow slots solely for flights to and from Ireland as a condition for approving a deal.

Analysts have argued that such a pre-condition would make Aer Lingus less attractive to Mr Walsh, who in addition to his IAG role is also chairman of Dublin's state debt management agency.

IAG was created in 2009 from the merger of BA and Iberia, which has been radically restructured by Mr Walsh against initially intense opposition from Spanish labour groups.

Since then, it has also acquired Vueling, another Spanish carrier, struck an alliance with American Airlines and considered several other big takeovers.

IAG shares closed on Friday up 2.1% at 536p, valuing it at almost £11bn, while Aer Lingus shares closed up 0.4% at €2.35, giving it a market capitalisation of €1.25bn.

Aer Lingus is preparing for a transition in its leadership regardless of Mr Walsh's efforts to acquire it.

The airline's chief executive, Christoph Mueller, is leaving in May to run Malaysia Airlines, which is being nationalised following the disasters last year involving flights MH370 and MH17.

IAG, which is being advised by Deutsche Bank, and Aer Lingus both declined to comment.

11.46 | 0 komentar | Read More

Post Office To Expand 'Challenger' Money Arm

By Mark Kleinman, City Editor

The Post Office will this week publicly target becoming one of Britain's leading financial services providers by the end of the decade, amid ministerial support for its vast network to play a greater role in banking provision.

Sky News has learnt that the state-owned entity will announce on Monday that it is to amalgamate its range of financial products under a new umbrella brand, Post Office Money.

The move is designed to promote the Post Office as a leading 'challenger' brand in financial services at a time when the big five high street banks are reducing the number of branches they operate.

On Tuesday, Vince Cable, the Business Secretary, will meet major lenders to thrash out details of additional efforts to allow bank customers to make more use of the Post Office's 11,500 outlets.

The Post Office currently offers products including insurance, mortgages, savings accounts and foreign exchange, some of which are provided through a partnership with Bank of Ireland.

Further products, including a new range of current accounts, are expected to follow.

Speaking to Sky News, Nick Kennett, director of financial services at Post Office Money, said:

"Consumers want a choice about how they manage their money; at Post Office Money our customers have access to an unrivalled network as well as online and phone, combined with multi-award winning products.

"We have been listening to our customers and know that people are facing some big financial decisions, and through the new Post Office Money we want to become their first choice when thinking about a mortgage, credit card or a safe haven for their savings."

The Post Office network has around three million customers within its banking and insurance business and nine million people use its foreign currency exchange services, while 2,500 of its branches open on Sundays.

Mr Kennett acknowledged that the target of doubling the size of the Post Office Money business by 2020 was ambitious but said its principles of fairness and accessibility were major advantages at a time of widespread consumer mistrust of major banks.

The details of Government-led efforts to strengthen the Post Office's role in the provision of banking services are expected to become clear after Tuesday's meeting.

Mr Cable has been angered by the decision of lenders including Barclays, Lloyds Banking Group and Royal Bank of Scotland (RBS) not to renew a commitment not to close branches when they are the last one remaining in a local community.

The banks argue that rapid technological changes, with customers now performing billions of transactions remotely each year, have rendered such a pledge obsolete.

Mr Cable told Sky News earlier this month: "There are a lot of people who are not connected who also need to do basic banking functions, and we mustn't be in a position where large numbers of villages and other small communities are effectively being cut off from banking.

"If the banks cannot perform that service we need an adequate substitute, and they've got a responsibility to help provide it."

He added that the banks should "think about… how to address any additional financial and operational burdens on the Post Office", implying that they could face a substantial bill for any new programme.

11.46 | 0 komentar | Read More