Amazon's Jeff Bezos Buys Washington Post

The founder of Amazon has personally bought The Washington Post and other newspapers for $250m (£163m).

Longtime publisher, The Washington Post Co, announced the deal with Jeff Bezos on Monday.

Mr Bezos is buying the paper as an individual, and Amazon.com Inc is not involved in the sale.

Donald Graham, Washington Post chairman and CEO, called Mr Bezos a "uniquely good new owner".

He said the decision to sell was made after years of newspaper industry challenges.

The company, which owns the Kaplan education business and several TV stations, will change its name.

Mr Bezos said in a statement that he understands the Post's "critical role" in Washington and said its values will not change.

"The paper's duty will remain to its readers and not to the private interests of its owners," he said.

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Weather Helps Economic Recovery 'Build Steam'

There is further evidence the UK's economic recovery is gathering pace following the release of a closely-watched survey for the dominant service sector.

It grew at its fastest pace in more than six years in July, according to the Markit/CIPS Purchasing Manager's Index (PMI), boosted by new orders and better weather.

The PMI has now shown growth for seven consecutive months and the latest service sector rise follows strong gains in equivalent manufacturing and construction surveys.

Taken together, the data gives the highest composite PMI since the series started in 1998, suggesting economic output from July to September is well-placed to beat the 0.6% GDP growth recorded for the previous three months.

Paul Smith, senior economist at Markit, said: "Although an early call on one month's data, the forward-looking elements from the survey point to a further strengthening of GDP in Q3 as the UK heads towards 'escape velocity' and self-sustaining economic expansion."

Construction and manufacturing are also seeing signs of better growth

Both new orders and business confidence in the services sector rose in July, with the new orders coming in at their fastest pace since November 2006.

While firms said that some of July's strength was due to unusually warm weather, overall the figures point to a very rapid turnaround for Britain's economy, which just a few months ago looked vulnerable to facing a third recession in five years.

Although Britain's economy is still 3% smaller than before the financial crisis, signs of expansion also pose a challenge for the Bank of England.

On Wednesday, new governor Mark Carney is due to say whether the bank will go ahead with a policy of 'forward guidance' aimed at keeping down bond yields while the economy remains fragile.

Some policymakers may be reluctant to make a lengthy commitment to low rates at a time when the economy may be on the cusp of a more rapid recovery.

Separate reports on Monday from the CBI business lobby group, manufacturers' organisation EEF and recruitment group Reed pointed to improvements in the economy, although "significant risks" remained.

The CBI said new orders among small to medium-sized manufacturers continued to fall in the three months to July, "disappointing" expectations for growth.

Its head of economic analysis, Anna Leach, said: "Despite another disappointing quarter for small and medium-sized manufacturers, with output continuing to fall, optimism about the general business situation has risen for the first time since spring last year.

"Firms expect demand to improve both at home and abroad and production to stabilise over the next three months but manufacturers remain concerned about the impact of political and economic conditions overseas on external demand, reflecting on-going uncertainty about the global economic outlook."

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Little Chef Bought By Kuwaiti Group 'For £15m'

The Little Chef chain of roadside restaurants has been sold to a Kuwaiti restaurant group.

The company went up for sale in April, six years after it was rescued from administration.

During that time there were several attempts to revive its position in the market as one of the main providers of snack foods for people on the move around Britain.

Celebrity chef Heston Blumenthal was among those recruited to inject new life into its traditional menu of mainly fried breakfasts and burgers.

But the chain had been struggling for some time to compete with the other fast food chains and supermarkets that were increasingly occupying motorway service stations.

Now Kuwait restaurant owner Kout Food Group Restaurants UK Limited (KFGR-UK) has bought the company for what is believed to be £15m.

It was rumoured to be on the market for 'tens of millions of pounds'.

KFGR-UK takes over a group, famous for its 'Fat Charlie' logo, that has been slimmed down from more than 400 at its peak to 83 sites beside A-roads all over Britain, all of which are believed to be profitable.

Heston Blumenthal was brought in to revive the fortunes of Little Chef

The seller, venture capital group RCapital, said it was confident that KFGR-UK  would continue to rejuvenate Little Chef's fortunes.

RCapital CEO Jamie Constable said: "Since we put Little Chef up for sale people have asked us, why sell the business?

"The answer is very simple. We are specialists in reversing the fortunes of businesses with significant financial and operational problems.

"We turn businesses around, we rebuild and fix them, that's our business.

"When we bought the chain, it needed huge changes to revive the business and bring it back to profitability.

"Having owned Little Chef for a long time it feels like we are selling part of ourselves.

"But we take comfort from the fact that the new owners will take the brand to the next stage."

KFGR-UK said it had ambitious plans for the company.

Chairperson Fadwa al Homaizi, said: "KFGR-UK has exciting plans to revitalise the Little Chef brand.

"Little Chef will benefit from a process of brand renewal in keeping with current trends, supported by traditional British values."

Kout Food Group runs several branches of Burger King, Pizza Hut and Taco Bell in its home country. 

It also operates a portfolio of Middle Eastern brands such as Ayyame, Kabab-ji, Burj Al Hamam and the ice cream parlour Scoop A Cone.

Little Chef employs 1,100 staff and has sites across Britain's A-roads.

After trialling Blumenthal's meals in 2009, his new menus were rolled out to several branches. It is not known if his menus will continue to be served.

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Zero-Hours Contracts 'For One Million Britons'

By Liz Lane, Sky News Reporter

Research suggests many more people may be on zero-hours contracts than was previously thought.

The agreements mean that employees are expected to be on call, but are not guaranteed any work from one week to the next.

The Chartered Institute of Personnel and Development (CIPD) estimates there could be one million UK workers on such contracts.

This contrasts with Office for National Statistics figures which suggest only 250,000 were on such contracts at the end of last year.

CIPD surveyed 1,000 employers and found one in five use zero-hours contracts for at least one member of staff.

Business Secretary Vince Cable has ordered a review into the practice

Firms in the voluntary and public sectors, as well as the hotel, leisure and catering industries, are more likely to use them.

CIPD chief executive Peter Cheese said: "Zero-hours contracts are a hot topic and our research suggests they are being used more commonly than the ONS figures would imply.

"However, the assumption that all zero-hours contracts are bad and the suggestion from some quarters that they should be banned should be questioned."

The Unite union says the government must stop the growth of the zero-hours culture, as these contracts are "the latest attack on workers' rights and dignity".

Business Secretary Vince Cable has announced his staff are going to investigate how they are being used.

"Whilst it's important our workforce remains flexible, it is equally important that it is treated fairly," Mr Cable said.

"This is why I have asked my officials to undertake some work over the summer to better understand how this type of contract is working in practice today."

Separate research among zero-hours contract workers revealed only 14% said their employer failed to give them enough hours to have a basic standard of living.

Sarah Wicks, from Liverpool, used to work as a security guard on a zero hours contract, but sometimes worked 72 hours a week.

But she said that the large number of hours did not equate to job security.

"There wasn't much expectation that your job was ever going to get any better, or that you had any recourse to the employer for anything," Ms Wicks said.

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Ireland Digs Deep For Economic Recovery

By David Blevins, Ireland Correspondent, in County Mayo

Seismic surveys are to be carried out to ascertain if Ireland has enough oil and gas reserves to export fuel.

Shell is already building the longest gas tunnel in Europe (4.9km) to transport fuel from one field, 85km off the west coast.

If Russia ever turns off the supply, Ireland may soon be able to offer an alternative.

Michael Crothers, managing director of Shell Ireland, explained: "Because Ireland is beside a major market, and the UK is looking at decommissioning nuclear facilities, having to shut down coal-fired power plants because of greenhouse gas emissions, there's an enormous opportunity for Ireland, if gas can be found, to export into that ready market."

At the peak of its 20-year life, gas from the Corrib field will meet two thirds of Ireland's need. 

The ambitious project has created 1,400 construction jobs in County Mayo, a remote region previously blighted by unemployment and emigration.

Bernadette McManamon, a civil engineer, said: "Sixty percent of my class, if not more, have emigrated and most of them are in Malaysia or Australia and some in America so I definitely wouldn't be working in Ireland … if it wasn't for the Corrib gas project."

The exploration has not been without its opponents. In 2005, five local protesters - the so-called 'Rossport Five' - went to prison.

Civil engineers will carry out the seismic surveys

Lessons have been learned about the need for greater engagement with communities along the coastline before any prospecting takes place.

Gerry Coyle, a Fine Gael councillor, said: "You cannot come in and go telling them what to do. You have to explain in great detail.

"Sometimes, it's very difficult on communities. This community were cast into the middle of this. They didn't go looking for gas. Gas came to them."

Mr Crothers agreed: "I really think it depends upon how they are approached. Any project is a balance between the social, the environmental and the economic and getting that balance right is key."

The gas has brought an estimated 6bn euros (£5bn) for Ireland's GDP.

Tommy Talbot, who opened a local hotel during the recession, said: "You drive from here to Dublin and there's a lot of towns on the way out - Roscommon, Leitrim, there's nothing in them. They really are struggling.

"Down here, we really have been cushioned by the development."

To date, they have found one trillion cubic feet of gas in the Corrib field, boosting the country's energy security.

If the seismic surveys turn up enough fuel for export, Ireland could have found the solution to its economic problems.

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Swansea Bay Tidal Lagoon May Open In 2017

By Rhiannon Mills, Sky News Correspondent

Exploratory work is underway off the coast of south Wales where scientists hope to build the world's first tidal lagoon power station.

As Britain continues to search for more sustainable forms of energy, plans are in place for a 9.5km-long, U-shaped sea wall in Swansea Bay that would harness the strength of the tides.

The £650m project's 26 hydro turbines would be permanently under water, generating energy on both the incoming and outgoing tides.

It is hoped the power station could produce enough electricity to power every home in Swansea, saving over 200,000 tonnes of CO2 and offering predictable zero-carbon electricity for 120 years.

The project is yet to receive planning permission but teams are already drilling to assess the make-up of the seabed.

Alex Herbert, head of planning for Tidal Lagoon Swansea Bay, told Sky News: "We hope this will be the first in a network of lagoons around the British coast which could produce up to 10% of our energy requirements.

The power station's 26 turbines would be permanently underwater

"With the first one happening in Wales, we're on the map and we're producing jobs locally, as well as expertise we can take elsewhere."

Promotional videos describe the power station's potential to help regenerate the area and attract tourists.

The sea wall would be used for walking, running and cycling, while the lagoon itself would be used for watersports.

However some groups have concerns about the environmental and visual impact of the project.

"It's concerning a number of people," Swansea councillor Tony Colburn said. "It's basically going to cut the bay in half and we'll be looking at a very large wall as opposed to the magnificent view we've got."

Sarah Kessell, of the Wildlife Trust, added: "There could be a loss of breeding ground or of spawning areas for fish that birds feed on.

The 9.5km-long sea wall would be used by walkers and cyclists

"We don't know what the long-term impact will be ... but there are certainly opportunities for mitigation along the way."

A planning application will be submitted later this year with a decision expected in early 2015.

If the development is approved it could be open by 2017, with similar schemes possible in Colwyn Bay, north Wales, and in locations near Liverpool.

Canada, France and South Korea already have tidal power plants but the one planned for Swansea would be the first to utilise both the incoming and outgoing tides.

The bay is considered an ideal location for the project because of its shallow water and 10-metre tidal range - the second highest in the world.

"It's a fantastic proposal because it diversifies how we produce energy," Barry Stewart, a local wildlife enthusiast, said.

"Obviously a project of this scale is always going to have an adverse effect on some ecological features. The wildlife can be accommodated but time will tell."

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Facebook Shares Close At Opening Day Value

Facebook shares have closed at their highest level since their debut trading day 14 months ago.

Shares in the social media company rose 1.5% to $38.05 (£24.86) on Friday, a closing price not seen since the firm's initial public offering (IPO) on May 18 last year.

Facebook's IPO was one of the worst in a decade, and the stock fell to a low of $17.55 (£11.48) in September.

But its mobile advertising business is what appears to have helped the company to turn the corner.

At a technology conference in September 2012, CEO Mark Zuckerberg said: "Now we are a mobile company.

"We know that we're going to do well on that. There's a huge opportunity. Now the question is getting there."

Shareholders and advertisers appear to have been won over with its mobile strategy, which is predicted to generate more than $16bn (£10.47bn) in sales by 2017.

The rise increases the wealth Mr Zuckerberg, 29, who founded the company in 2004.

According to recent data he is now worth $18.4bn (£12.04bn).

It is understood that Mr Zuckerberg's next step is to sell TV-style commercials that marketers can broadcast into a user's news feed.

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Ireland Digs Deep For Economic Recovery

By David Blevins, Ireland Correspondent, in County Mayo

Seismic surveys are to be carried out to ascertain if Ireland has enough oil and gas reserves to export fuel.

Shell is already building the longest gas tunnel in Europe (4.9km) to transport fuel from one field, 85km off the west coast.

If Russia ever turns off the supply, Ireland may soon be able to offer an alternative.

Michael Crothers, managing director of Shell Ireland, explained: "Because Ireland is beside a major market, and the UK is looking at decommissioning nuclear facilities, having to shut down coal-fired power plants because of greenhouse gas emissions, there's an enormous opportunity for Ireland, if gas can be found, to export into that ready market."

At the peak of its 20-year life, gas from the Corrib field will meet two thirds of Ireland's need. 

The ambitious project has created 1,400 construction jobs in County Mayo, a remote region previously blighted by unemployment and emigration.

Bernadette McManamon, a civil engineer, said: "Sixty percent of my class, if not more, have emigrated and most of them are in Malaysia or Australia and some in America so I definitely wouldn't be working in Ireland … if it wasn't for the Corrib gas project."

The exploration has not been without its opponents. In 2005, five local protesters - the so-called 'Rossport Five' - went to prison.

Civil engineers will carry out the seismic surveys

Lessons have been learned about the need for greater engagement with communities along the coastline before any prospecting takes place.

Gerry Coyle, a Fine Gael councillor, said: "You cannot come in and go telling them what to do. You have to explain in great detail.

"Sometimes, it's very difficult on communities. This community were cast into the middle of this. They didn't go looking for gas. Gas came to them."

Mr Crothers agreed: "I really think it depends upon how they are approached. Any project is a balance between the social, the environmental and the economic and getting that balance right is key."

The gas has brought an estimated 6bn euros (£5bn) for Ireland's GDP.

Tommy Talbot, who opened a local hotel during the recession, said: "You drive from here to Dublin and there's a lot of towns on the way out - Roscommon, Leitrim, there's nothing in them. They really are struggling.

"Down here, we really have been cushioned by the development."

To date, they have found one trillion cubic feet of gas in the Corrib field, boosting the country's energy security.

If the seismic surveys turn up enough fuel for export, Ireland could have found the solution to its economic problems.

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RBS Thrashes Out Pay Deal For New Boss McEwan

By Mark Kleinman, City Editor

Royal Bank of Scotland (RBS) is on the verge of agreeing a pay deal for its new chief executive that will be sharply lower than that of Stephen Hester, his predecessor.

Sky News understands that UK Financial Investments (UKFI), the agency which manages taxpayers' 82% shareholding in RBS, is poised to sign off on a remuneration package for Ross McEwan, who will be appointed later today to one of the toughest jobs in banking.

Mr McEwan is understood to be in line for a base salary of approximately £1m, less than Mr Hester's £1.2m annual pay, as well as bonus and long-term incentive plan (LTIP) entitlements that are also understood to be lower than those of the outgoing chief executive.

The RBS board has agreed to Mr McEwan's appointment and is awaiting the approval of the Prudential Regulation Authority (PRA), but is expected to say tomorrow alongside half-year results that he is to replace Mr Hester.

It is likely that the new boss's pay deal will be disclosed alongside the news of his elevation to the top job.

Under the terms of his contract, Mr Hester was eligible for a bonus of twice his basic pay and an LTIP award of four times his salary, theoretically putting him on an annual £8m-plus package.

However, he rarely collected anything like that sum after waiving several annual bonuses under intense political pressure and failing to meet performance targets that would have triggered the release of long-term share awards.

Because he is not currently on the RBS board, Mr McEwan's remuneration is not disclosed in an identifiable way, although RBS did pay him roughly £3m in shares to buy him out of his contract with his previous employer in Australia.

People close to the situation said that no decision had been made on Thursday afternoon whether Mr McEwan's pay deal would replicate that of his Lloyds Banking Group counterpart, Antonio Horta-Osorio, whose annual bonus is partly dependent upon the price at which the Government sells a chunk of its 39% stake in the bank.

RBS's majority state ownership means that George Osborne, the Chancellor, will also need to approve Mr McEwan's pay package before it is announced.

Sky News revealed last week that Mr McEwan, a New Zealander who currently runs RBS's UK retail banking operation, was the frontrunner to take over from the departing chief executive.

RBS and UKFI declined to comment.

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Half Of UK Nation 'Living On The Edge'

Around nine million more adults are struggling with money compared to seven years ago, a report into the health of the nation's finances has found.

More than half (52%) of those surveyed are living on the edge, equating to 26 million people across the UK, Government-backed body the Money Advice Service (MAS) said.

This is a sharp increase from 35% of people who were having difficulty keeping up with bills the last time similar research was carried out in 2006.

The service found that many people are suffering from poor financial skills and the squeeze on families following the economic downturn has encouraged a "live for now" culture which is dragging down people's ability to save enough for their future.

Income per hour has dropped by 6% in real terms since the previous research was carried out, making it harder for people to make ends meet.

More than 5,000 people took part in the latest financial capability survey and more than 70 families were followed over the course of a year for the Financial Capability Of The UK report, which found "a general feeling that people worry about their ability to make it to the next pay day".

It continued: "And because of this, people are focusing more on the here and now than on planning for the future, including for unforeseen emergencies."

One in five people surveyed said they would rather have £200 now than £400 in four months' time. Two-fifths also said they would have to think about how they could cover an unexpected £300 bill and one quarter said they prefer to live for today rather than plan for tomorrow.

Caroline Rookes, chief executive of the service, said: "In theory, money management is easy - spend less than you earn and consider your future - but the difficulty comes when applying this to the real world."

A Treasury spokesman said: "We recognise that times are still tough for families, but Britain is holding its nerve, we are sticking to our plan, and the British economy is on the mend.

"The Government has taken continued action to help households with the cost of living, including cutting tax for 25 million people by raising the personal allowance and freezing fuel duty."

MAS, an independent body set up by Government, has a statutory objective to raise public understanding and awareness about financial matters. It is due to publish a strategy on how people can be helped to improve their finances next year.

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