Li Ka-shing: Phone King Is Business 'Superman'

Li Ka-shing has a fortune currently estimated by financial information firm Forbes at about $35bn (£23bn).

His sprawling ports-to-retail global conglomerate operates in more than 50 countries. Here's a look at the life of Asia's richest man:

:: Humble Upbringing

Born in 1928 in Chiu Chow, a coastal city in the southeastern part of China. At the age of 12 he was forced to quit school and fled to Hong Kong with his family to avoid war.

Before he was 15, Li's father died and the teenager faced the prospect of providing for his family. He found a job in a plastics firm where he worked for 16 hours a day. But by the 1950s he had pursued a venture making and exporting plastic flowers to the US and started his own company, Cheung Kong Industries. 

:: Lifestyle

In spite of his wealth, Li has cultivated a reputation for leading a no-frills lifestyle, and is known to wear simple black dress shoes and an inexpensive Seiko wristwatch.

However, his house is in one of Hong Kong's most expensive precincts, Deep Water Bay in Hong Kong Island.

The 86-year-old is said to remain physically fit by rising before 6am every day and playing golf for an hour and a half. He also uses a treadmill for 15 minutes at noon.

:: Wealth

The 86-year-old self-made entrepreneur is Hong Kong's richest person, and has been so for more than 15 years. His sprawling ports-to-retail global conglomerate operates in more than 50 countries.

Because of his wealth, he is regarded as a celebrity and national hero, and even has a wax statue at Madame Tussauds Hong Kong (the only non-artist to have one in Hong Kong).

:: Business

Li is often referred to as "Superman" in Hong Kong because of his business prowess.

From manufacturing plastics in the 1950s, Mr Li led and developed his company into a leading real estate investment company in Hong Kong that was listed on the Hong Kong Stock Exchange in 1972.

It acquired Hutchison Whampoa and Hongkong Electric Holdings Limited in 1979 and 1985 respectively.

Mr Li is the Chairman of Cheung Kong (Holdings) Ltd, the flagship of the Cheung Kong Group which has business operations in over 50 countries around the world and employs over 280,000 staff.

:: Entrepreneur

He has donated more than $1.41bn to date to charity and other various philanthropic causes and has received an Honorary Doctorate from Cambridge University among other education establishments.

In 1980 Mr Li established the Li Ka-shing Foundation, with the aims of nurturing a new culture of giving, supporting education reform and advancing medical research and services. A year later he founded Shantou University, the only privately-funded public university in China.

:: Like Father...

Mr Li has two sons. The elder, Victor, is deputy chairman of Hutchison Whampoa Ltd and holds several other business roles, while the younger son Richard is chairman of PCCW, one of Asia's leading information and technology and telecommunications companies.

12.06 | 0 komentar | Read More

Three Dials O2 To Become Biggest Mobile Firm

A cash deal of more than £10bn could lead to the creation of the UK's largest mobile phone operator, with Three taking over O2.

Three's parent, Hutchison Whampoa - owned by the richest man in Asia, Li Ka-Shing - said it was in "exclusive negotiations" with Telefonica to buy the UK's second-largest mobile firm for £10.25bn.

Hutchison confirmed in its statement that it had offered £9.25bn, with a deferred further payment of up to £1bn after completion of the deal but it said any agreement would be subject to due diligence and regulatory approvals.

Any tie-up would be likely to interest industry authorities as it would reduce the number of players in the UK mobile phone market to three - hitting competition - despite the possibility of both brands remaining.

The telecoms watchdog, Ofcom, could demand that Three and O2 hand over some spectrum capacity to rivals.

A combined player would create a company with a current market share of around 40% - with 31 million customers between them.

Three, which is currently the smallest of the UK's mobile operators in terms of market share behind Vodafone, has been setting lower price tariffs in a bid to attract new customers and grow its stable.

EE - which is the current market leader with 32% - is on the verge of being snapped up by former O2-owner BT in a deal worth £12.5bn.

BT is bidding to become a so-called "quad play" provider by bundling home phone, mobile, TV and broadband services together in a single package.

Its proposed deal with EE sparked a frenzy of speculation about whether other players in those markets would look to follow suit through either acquisitions or partnerships.

Telefonica's willingness to part with O2 was seen as acceptance that it did not want to enter the quad play arena in what is a declining mobile phone market.

It is widely believed to be looking at emerging markets to achieve growth.

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The ECB's Biggest Bazooka - But There's A Catch

There was a tense wait in the last few moments before Mario Draghi arrived in the press room today. After all, the European Central Bank president is rarely late.

As the minutes ticked on, the journalists sitting there looked around nervously and muttered to themselves. Might this have something to do with the momentousness of what he was expected to announce today?

It has been no secret for some months that the ECB was on the brink of unveiling its quantitative easing policy.

But the bigger question was whether the president had managed to secure the buy-in of the Germans. Might there have been a big impasse at the governing council meeting?

Might the Germans have unexpectedly launched an attack on QE? After all the anticipation, might the programme have been smaller than expected?

Video: Was QE A Good Move From The ECB?

They needn't have worried. Now the ECB has brought out the biggest bazooka it has yet wielded.

It will spend well over a trillion of newly created euros buying (mostly) the government debt of its members. To be precise, €60bn (£45bn) a month.

Moreover, all countries bonds will be bought - including those with negative yields (eg. Germany) and those facing bail-out programmes (eg. Greece) - though the latter ones will have to behave (eg. the prospective new government of Greece).

All told, it is a bigger, more powerful programme than even some of the more optimistic investors had been expecting from the ECB. As ever, there is a catch.

For the majority of the bonds bought under QE - four-fifths - the risk of default will still be borne by the country issuing them. In other words, if the ECB buys Greek government debt and Greece defaults it can't rely on its neighbours taking the full hit.

Video: Eurozone Quantitative Easing Plan

The significance of this clause - the extent to which it undermines the rest of the programme - remains to be seen.

My hunch is that the sheer size of ECB QE (apologies for the acronyms, which are rather too common in central banking) will be enough to allay any concerns for the moment. Markets seem to agree: the euro dropped to the lowest level since 2003; stock markets around Europe leapt.

It doesn't take an expert to realise why.

The ECB has held off from money creation exercises of this sort for five years - five years in which the Bank of England, Federal Reserve and Bank of Japan have printed trillions of dollars worth of money.

During that period, the single currency area has faced stagnation and, now deflation. Investors hope that Mr Draghi may now have turned this around.

Video: Quantitative Easing Explained

However, there are still many questions about the wisdom of QE. Some worry that it simply boosts asset prices.

Others fear that it will, ultimately, lead to hyperinflation. And there are many hawks within the Eurozone who fear that it will simply encourage troublesome countries like Greece and Spain to borrow more and face another (partly shared) default in the future.

But those concerns are for another day. Today, one should try to take in the momentousness of what has happened.

Mario Draghi has pressed the button on what many thought would never happen: a Europe-wide money creation scheme.

Oh, and the reason he was late? Well, in his own words: "Don't read too much into this small delay. It was the elevators. They're not working."

12.07 | 0 komentar | Read More

ECB Triggers €1.1trn Quantitative Easing

The European Central Bank (ECB) has confirmed a €1.1trn stimulus scheme aimed at halting the eurozone's slide towards economic stagnation.

The monetary policy measure, announced at a news conference by ECB president Mario Draghi, was bolder than investors had expected - with European stock markets rising and the euro falling in value as the core details emerged.

Its current stimulus would be extended from March to include so-called quantitative easing, the Bank confirmed.

The ECB said it intended to spend a combined €60bn (£46bn) a month on sovereign and corporate bonds until September 2016, with individual central banks in the 19-member eurozone sharing some of the risks of the money-printing exercise.

The flood of money should bring borrowing costs down, boost bank lending and weaken the euro further to bolster its  competitiveness.

The aim of the QE programme is to prevent the euro area spiralling into deflation - an entrenched period of falling prices which puts consumers and businesses off spending.

Inflation is already running at -0.2% and Mr Draghi told reporters the outlook required a "forceful" policy response.

The ECB said countries under a bailout programme, such as Greece, would be included in the QE programme but with some additional criteria.

A political crisis in Greece risks plunging the euro area into further chaos, as a snap general election this Sunday could bring an anti-bailout party to power - a development which would potentially lead to the country's exit from the single currency.

Angela Merkel said governments still had to set policies to tackle debt

The QE programme was announced two-and-a-half years after Mr Draghi pledged to "do whatever it takes" to save the euro amid fierce opposition to QE from Germany over fears it will stop national governments fixing their finances.

German Chancellor Angela Merkel said any ECB decision could not replace government action on tackling debt.

Video: Economic ghost still haunts Germany

Speaking at the World Economic Forum in Davos she said: "It should not obscure the fact that the real growth impulses must come from conditions set by the politicians.

"What's important for me is that (politicians) move even more decisively to address the issues, rather than thinking that the buying of time through other measures means we can forget about structural reforms."

The ECB did not need German permission for QE.

It said bonds would be bought on the secondary market in proportion to the ECB's capital key, meaning the largest economies from Germany down will see more of their debt purchased by the ECB than smaller peers.

The bonds will mature over periods of between two and 30 years.

The prospect of dramatic ECB action had already prompted the Swiss central bank to abandon its cap on the franc while
Denmark, whose currency is pegged to the euro, was forced to cut interest rates in anticipation of the flood of money.

Video: Lighter Side Of Quantitative Easing

The euro dropped 1.4 cents against the dollar following the QE announcement while bond yields in Italy and Spain hit historic lows, reducing the cost of servicing their debts.

Video: Trichet: 'Common Sense To Prevail'

12.07 | 0 komentar | Read More

Ex-Centrica Chair Snubs Cameron Oil Pay Plea

By Mark Kleinman, City Editor, in Davos

One of Britain's most respected businessmen has rejected a call from David Cameron for companies to increase workers' wages on the back of the slump in oil prices.

Speaking to Sky News, Sir Roger Carr said the Prime Minister's request last week made little economic sense and was unlikely to be adopted.

Mr Cameron had called on companies to act to increase employees' pay in the wake of official figures showing that corporate profitability was at its highest since the late 1990s.

"Obviously I want to see that companies' success is passed through in terms of people seeing wage increases," he said.

"It has to be done in a way that is affordable, in a way that companies can continue to grow.

Video: Oil Price Drop: What Economic Cost?

"The falling oil price is going to benefit a lot of businesses and a lot of countries. We want to see those benefits passed on in all the ways that they can be."

But Sir Roger, who chairs BAE Systems, the defence contractor, and who until last year was chairman of Centrica, the owner of British Gas, poured cold water on Mr Cameron's aspiration.

"What happens when the price of oil goes up? You can't have pay linked to commodity fluctuations," Sir Roger said at the World Economic Forum in the Swiss ski resort of Davos.

"You have to have pay levels which are fairly structured which acknowledges the value that is created at all levels of a company."

Video: Brent Crude Could Go Below $40

Sir Roger's remarks were echoed anonymously by a string of other British business leaders, one of whom accused the Prime Minister of "pandering to the looming election with crazy economic ideas".

The halving of the oil price since last summer has created a huge headache for oil and other natural resources groups but has been described as "a net positive for the economy of the UK" by Mark Carney, the governor of the Bank of England.

The General Election campaign will in part be framed around a fierce debate about the cost of living.

Politicians from all sides have exerted enormous pressure on the major energy retailers to cut prices following the fall in the price of wholesale gas.

Video: The Problems Of Cheap Oil

Some have responded, but only with relatively modest price cuts for consumers.

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Premier League Dominates Football's Rich List

Real Madrid has topped the list of football's richest clubs by income for the tenth year running, but the Premier League is now dominating the chart.

England's top flight clubs have shown their dominance among the highest-earners, with all 20 teams making it into the rich list's top 40.

The Football Money League, published by business advisory firm Deloitte, shows clubs are looking to commercial and broadcast revenue to boost their finances.

The combined revenue for the top 20 clubs by revenue rose by 14% over the past year to £5.2bn.

Real Madrid saw revenue growth of £25.6m - a total of £459.5m over the past year - on the back of increases in broadcast and commercial revenue.

Dan Jones, partner in the Sport Business Group at Deloitte, said: "The club's continued success on the field is complemented by its financial strength.

"Their accomplishment emphasises their position as the most successful European club side of all time.

"However, their commercial supremacy is being challenged by Manchester United, among others."

Manchester United rose to second despite on-field troubles

Manchester United earned revenues of £433.2m over the past year, making the club the second highest-earning team in the world.

Austin Houlihan, a senior manager at Deloitte, said the strong result for Manchester United came despite poor on-pitch performance.

"Commercial revenue has grown 83% in the last three years. Thanks to the latest Premier League media deals, broadcast revenue also increased 34% to £135.8m."

Eight Premier League clubs have been ranked within the top 20, and every club made it into the top 40.

Mr Houlihan said: "The Premier League's new broadcast deals have translated into big revenue increases across the English top flight."

"In fact, every Premier League club reported record revenues in 2013/14.

"Between them, the eight English clubs in our top 20 achieved total broadcast revenues of €1.1bn (£0.9)."

12.07 | 0 komentar | Read More

Stamp Duty Changes 'Saving Buyers £1,300'

By Poppy Trowbridge, Consumer Affairs Correspondent

Stamp duty changes are saving home buyers an average of £1,300, according to figures from the Mortgage Advice Bureau.

The changes were announced by Chancellor George Osborne in his Autumn Statement last month.

Buyers in the South East and London are saving the most, about £3,870 and £4,600 respectively, according to the National Mortgage Index. 

In the North West the savings average £1,059, or 3% of a deposit.

But in Scotland, where the average house price is £248,000, buyers are saving just £12.19.

Video: Dec: Osborne's Boost For Buyers

"The changes mean the market can grow on a surer footing, and we now have a more sensible approach to stamp duty in place," said Brian Murphy, the MAB's head of lending.

"However, there are still regional pressures and we mustn't forget the vital support needed by less affluent buyers."

Deposits also reached a 14-month high in December, at £71,078. 

Tighter affordability criteria imposed by banks have fuelled higher down-payments, but the stamp duty savings may also have contributed.

The typical mortgage applicant's deposit in December made up 30.7% of the purchase price, according to the research.

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1. Gallery: Stamp Duty: How Much Will You Save?

   Homes bought for under £125,000, such as these terraced houses, are unchanged by the new rules and buyers still do not have to pay any Stamp Duty

Someone choosing a typical three-bedroom semi-detached costing £185,000 would pay £1,200 instead of £1,850 under the old rules - a £650 saving

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Energy Bills: Scottish Power Joins Price Cut

Scottish Power has become the latest of the so-called 'Big Six' energy firms to cut its standard gas price.

Like its rival British Gas, the company said it would be waiting a month before implementing the reduction.

The 4.8% cut will come into force on 20 February - benefiting 1.1 million of its customers.

E.ON has already implemented a 3.5% reduction following a 30% fall in wholesale costs over the past 12 months, though firms have argued it will take time for this to filter through because raw energy is purchased up to three years in advance.

However, consumer groups have accused them of always being quick to raise prices when wholesale costs go up and slow to react to falls.

Neil Clitheroe, ScottishPower's CEO of Retail and Generation, said: "We are pleased to be able to pass on this price reduction to our customers, which will see the average annual gas bill on our standard tariff reduce by £33.

"Today, we have also launched a new fixed-price tariff which is one of the most competitive in the marketplace, with an average dual fuel bill value of £930.

"All ScottishPower customers can take advantage of our best deals by contacting us or visiting our website.

"Customers already on fixed-priced tariffs can also move between our tariffs at any time, without paying any exit fees.

"Today's decision has been made to benefit our customers and keep our prices competitive.

"We will continue to keep our prices under review. Our pricing reflects all of the costs that contribute to a customer's bill.

"The wholesale price of energy accounts for half of a customer's gas bill, but non-energy costs such as transmission and distribution networks and environmental and social obligations remain unaffected by any wholesale energy price movements."

The reductions have fallen short of industry estimates, which suggested bills could fall by £136 a year if suppliers passed on the full reduction in wholesale prices.

An in-depth investigation by the Competition and Markets Authority is currently ongoing in the energy sector, which could force the larger firms to break up.

Energy Secretary Ed Davey said: "Competition is hotting up and customers will see the benefits. With the market getting more competitive there's even more pressure on other energy companies to drop their prices.

"If people aren't seeing price cuts, now is the perfect time to check their tariff and see what deals are on the market."

12.07 | 0 komentar | Read More

Police Criticised Over Shoplifting Response

By Martin Brunt, Crime Correspondent

Police forces are being accused of not doing enough to tackle a boom in shoplifting.

A survey shows a 36% rise in the money lost in shop thefts, the highest figure for a decade.

But most shoplifting goes unreported because shopkeepers do not believe the police will respond, according to the British Retail Consortium (BRC).

It said: "Despite the high level of theft, and evidence that some retailers are adopting more consistent "no exception" policies to reporting offences to the police, the majority of customer theft remains unreported.

"This is an indication that businesses continue to lack confidence in the police response to customer theft.

"The perception remains that some quarters of law enforcement view theft as a 'victimless' crime which is not taken seriously."

Video: Shopkeeper's Battle Against Crime

Toy shop owner Steve Mohabir, who runs The Toy Box in Godalming, Surrey, said he faced increasing thefts but found police were rarely willing to arrest suspects.

He said: "To be totally honest I'm really furious.

"I pay a high business rate, but I don't get the police service I need, no local bobby keeping an eye on retailers and our problems.

"If I report shoplifting I get told 'it's not very much' and nothing is done about it, but if it's an armed robbery at the bank they are much more interested."

Mr Mohabir said he has had to resort to investing in an expensive CCTV system and then shaming shoplifters by putting their images on his Facebook page.

The BRC's 2014 retail crime survey put the annual cost of all crime at £603m, an increase of 18%, with a total of three million crimes.

As well as the increase in shoplifting, fraud rose by 12% - more than half committed by organised gangs - and cyber crime also went up.

However, robbery, burglary and criminal damage fell.

The BRC's Director General, Helen Dickinson, said: "In my foreword to last year's report I said that a step change improvement in the law enforcement response to fraud was a desperately needed reform. A year on, this remains the case.

"Although there remains at times a lack of confidence among retailers about the service they receive from police and the criminal justice system, businesses are keen to work with partners to reduce retail crime."

Deputy Chief Constable Sue Fish, the National Policing Lead for Retail Crime, said: "Police have been working closely with businesses and retailers for several years, including British Retail Consortium, to help them prevent theft whether from stores or online. 

"Stores need to ensure that they have the right security and working practices in place and heed advice to prevent them from being targeted.

"Without retailers making these changes, police will not be able to work in partnership to reduce this type of crime.

"Retailers need to report crimes against them to us so that we can investigate and ensure we have a full picture of offending; our ability to help is undermined if we aren't receiving information about crimes committed."

12.07 | 0 komentar | Read More

IMF Cuts Growth Prospects Despite Oil Prices

The forecast has been slashed for global economic growth this year - with the UK's outlook also taking a hit.

The International Monetary Fund's World Economic Outlook update said that apart from in the US, the economic performance of all major economies had fallen short of expectations.

It also appeared to back further stimulus measures that look likely to be unveiled in the eurozone this week.

The IMF estimated that gross domestic product (GDP) in Britain grew by 2.6% in 2014 compared to a previous forecast of 3.2%.

It still expects the UK to grow by 2.7% this year while it has cut its forecast for 2016 by 0.1% to 2.4%.

Video: IMF: New Growth Fears For Eurozone

Global growth for the next two years is expected to be 0.3% - 3.5% for 2015 and 3.7% for 2016.

Chancellor George Osborne said: "Today's IMF forecast shows Britain is pulling ahead, while global growth is being downgraded.

"But there are risks out there in the global economy.

Video: Oil: Winners and Losers

"It's a timely reminder of that and we've got to go on working through our long-term economic plan if we want to stay ahead."

The IMF said the cut in estimates reflected prospects in China, Russia, the eurozone and Japan.

There had also been weaker activity in some major oil exporters - with oil prices having dropped by more than half since September.

Video: Why Is BP Cutting Jobs?

"The boost from lower oil prices is expected to be more than offset by an adjustment to lower medium-term growth in most major economies other than the United States," the IMF said.

Video: Brent Crude Could Go Below $40

12.07 | 0 komentar | Read More

Cameron Puts Jobs Vow At Heart Of Campaign

David Cameron has set out his plan for full employment, promising to make Britain the "jobs factory of Europe" as the economy returns to health.

The Prime Minister, speaking in Ipswich later, will say the country is "coming out the other side" after a "tough few years".

With just months before the general election, he will also promise to treble start-up loans for young business people and urge voters to stick with his recovery plan.

Labour however, have said the Tories are out of touch if they think the economy is "fixed" and that most workers are now worse off.

In his speech, Mr Cameron is expected to say: "Full employment may be an economic term, but this is what it means in human terms: it means more of our fellow men and women with the security of a regular wage; it means you, your family and your children having a job and getting on in life.

"We are the jobs factory of Europe; we're creating more jobs here than the rest of Europe put together.

The Tories say they will boost start-up loans for young entrepreneurs

"That's what our long-term plan means for you - and if you vote Conservative, we can stay on this road to recovery."

His plans to boost jobs include: three million more apprenticeships; controlling immigration and migrant benefits to get more Britons back to work; extra support for small business, such as cutting red tape and keeping taxes low; investment in infrastructure.

Video: Chancellor George Osborne MP

"The Conservatives are the party of small businesses," Mr Cameron will say.

"We're the party of the roofers and the retailers; the builders and the businesswomen.

"We're the ones who back people who strike out on their own, take the risks, and create wealth and jobs in our country."

Video: Reeves On Working Up Wages

The Prime Minister will say the boost in start-up loans - which are typically around £5,000 - will create at least 100,000 jobs by 2020.

Labour has hit out at the PM's boasts about a healed economy, saying it shows they are out of touch with normal working people.

Rachel Reeves MP, Labour's shadow work and pensions secretary, said the party had presided over "five years of talents wasted and opportunities denied".

Video: Cameron On Employment

"The average wage has fallen more than £1,600 per year, 3.5 million people want to work more hours, and the number of people paid less than a living wage has risen to nearly five million," said Ms Reeves.

She said a Labour government would also show strong support for small business and help low-paid workers.

"[We] will bring in a Compulsory Jobs Guarantee to get the long-term unemployed off benefits and into work," said Ms Reeves.

Video: Ed Miliband: Train Or Lose Benefits

"We will ban exploitative zero-hours contracts, boost apprenticeships, raise the minimum wage to £8 hour and get more workers paid a living wage."

The Prime Minister's jobs pledge comes as the gap between Britain's best and worst-performing cities has "dramatically widened", according to a new study.

The Centre for Cities research group says for every 12 jobs created since 2004 in cities in southern England, only one was created in cities in the rest of the country.

12.07 | 0 komentar | Read More

Eurotunnel Fire: Delays Continue For Third Day

Travel disruption sparked by Saturday's fire on the Channel Tunnel is dragging on into a third day.

Eurotunnel passengers travelling by car or coach from the UK are having to wait about 90 minutes, and "approximately three hours" on the French side.

In an early morning update, the company said there was still "some timetable disruption" as repair work went on to fix damaged sections of the tunnel.

Despite the delays, Eurotunnel said it was "optimistic" of "more regular departures".

Train operator Eurostar, a separate company, was also hopeful, tweeting: "Eurostar plans to run a full service on Mon 19 Jan. Passengers are advised to check-in as normal."

Saturday's cancelled service caused big queues at London St Pancras

Thousands of passengers using Eurotunnel and the Eurostar high-speed train were left stranded on Saturday after a lorry fire stopped services.

Spokesman John O'Keefe said a "smouldering load" was found in the trailer of the lorry.

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1. Gallery: Travel Chaos In London And Paris

   This was the scene at St Pancras International station in London as Eurostar services are cancelled in both directions on Saturday

The company said trains would not be running on that day

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