RBS to cut 3,500 jobs in investment bank shake-up

 

The Royal Bank of Scotland (RBS) has said it is planning to cut 3,500 jobs, with most of them to happen this year. The cuts are part of a reorganisation and shrinkage of its investment bank. The losses, which will be split between its UK and international offices, come on top of 2,000 cuts announced earlier. Its "wholesale banking" business, which provides services to large clients including investment banking services, will be split into separate "markets" and "international banking" divisions. The markets division - which comprises RBS' main trading activities - will focus on the bank's traditional strengths of debt, currency and money markets, the bank said in its statement. The wholesale banking division will provide services for the bank's biggest clients. These will include corporate advisory services transferred from its investment bank - such as helping major companies borrow money by issuing bonds - as well as cash management and payments services. The bank has already shed some 30,000 employees over the last two years, 22,000 of them in the UK. "It is a disgrace that while on a daily basis, stories are emerging about the massive bonuses at the top of the bank, increasing numbers of jobs are being cut from amongst the hard working staff," said David Fleming of the Unite union. Continue reading the main story “ Start Quote For a bank that has shed 30,000 jobs over the past couple of years, a further 3,500 departures may not seem massive” Robert Peston Business editor, BBC News Read Robert's blog Markets took the statement well, although many of the details had been flagged up in advance. RBS's share price rose 6.8% in morning trading, outperforming other banks and other large companies on the FTSE 100 index. Cutting back The bank said that it planned to close or sell off other business lines, such as those dealing with shares and stock markets, as well as its business advising companies on mergers and acquisitions. It is also looking to dispose of its corporate brokerage, Hoare Govett. These business lines were ones that had been added or expanded only in recent years under the leadership of former chief executive Sir Fred Goodwin. Continue reading the main story Royal Bank of Scotland Group RBS also said in its statement that the size of the balance sheet - the total loans and investments - of its former investment banking division would be reduced by more than a quarter, from £420bn to £300bn, over three years. This will enable it to cut its borrowing from wholesale money markets - which evaporated during the 2008 financial crisis, threatening the bank's collapse - by £75bn. "The overall aim is to improve profits and reduce risks," says the BBC's business editor, Robert Peston. "Which matters to most of us, since taxpayers are sitting on losses of £26bn on the £45.5bn they invested in RBS to rescue it." However, he also notes that the business lines being disposed of were not the ones responsible for causing RBS its huge losses during and after the 2008 financial crisis. UK clients RBS said the restructuring was also designed to prepare the bank for new UK regulatory requirements for banks to ring-fence their core UK operations from their riskier investment banking activities. Continue reading the main story Crisis jargon buster Use the dropdown for easy-to-understand explanations of key financial terms: Investment bank Investment bank Investment banks provide financial services for governments, companies or extremely rich individuals. They differ from commercial banks where you have your savings or your mortgage. Traditionally investment banks provided underwriting, and financial advice on mergers and acquisitions, and how to raise money in the financial markets. The term is also commonly used to describe the more risky activities typically undertaken by such firms, including trading directly in financial markets for their own account. Glossary in full The bank's dealings with British small and medium-sized companies will accordingly be transferred away from the new international banking division, and handled via its UK banks. There was no mention of any specific downscaling of its international operations. However, there has been speculation that its operations in the Irish Republic - including Ulster Bank, which RBS bought in 2000 - and in Australia may be affected Chancellor George Osborne announced the change in strategy at the bank in December 2011. "Investment banking will continue to support RBS's corporate lending business but RBS will make further significant reductions in the investment bank, scaling back riskier activities that are heavy users of capital or funding," Mr Osborne told Parliament in December. Mr Osborne's announcement came in the wake of a report into the bank by the Financial Services Authority in December 2011 which pointed to "errors of judgement and execution" by RBS management which led to its failure in 2008. The bank is now 82%-owned by the UK government after taxpayers injected £45.5bn of new capital into RBS.

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Cargo ship runs aground off Sweden, crew suspected drunk

 

The captain and helmsman are both suspected of being under the influence of alcohol and we have launched an inquiry," coast guard spokeswoman Lotta Brandstroem told AFP. It was not immediately known why the Anke Angela, an 82-metre (270-foot) ship loaded with timber, ran aground around 0100 GMT in the Kalmarsund strait between the Swedish mainland and the island of Oeland. "The captain is a German national and the helmsman is Russian, and the other four crew members are from Ukraine and Cape Verde," Brandstroem said, adding that the vessel was en route from Moensteraas to Ireland with a cargo of wood. The ship was listing slightly on Wednesday and the coast guard was assessing the damage.

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Breast implant scandal: taxpayers face £100 million bill

 

Harley Medical Group (HMG), responsible for one in three operations using the French-made implants, said it would go out of business if made to meet the full cost of removal. HMG's position makes it more likely the other two main players, Transform Cosmetic Surgery and The Hospital Group, will also ignore pleas for private clinics to pay for surgery. Should they follow HMG's lead, the bill to taxpayers could feasibly top £100 million as the NHS will be forced to perform the corrective surgery.The big three firms are likely to have performed around two thirds of enlargement operations using faulty implants in Britain. There are around 40,000 women in the UK who have been fitted with the controversial implants and operations to remove them cost around £3,000. Mel Braham, chairman of HMG, claimed the Government had the "moral responsibility" to pay for removal operations, as the regulator meant to ensure the safety of medical devices had failed in its duty.

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Iran car explosion kills nuclear scientist in Tehran

 

BBC's Mohsen Asgari: "It seems a motor cyclist pasted a bomb to his car which he was in with two other passengers Continue reading the main story Iran nuclear crisis Undeclared pursuit? Q&A: Nuclear issue Key nuclear sites Sanctions' impact Watch A university lecturer and nuclear scientist has been killed in a car explosion in north Tehran. Mostafa Ahmadi-Roshan, an academic who also worked at the Natanz uranium enrichment facility, and the driver of the car were killed in the attack. The blast happened after a motorcyclist stuck an apparent bomb to the car. Several Iranian nuclear scientists have been assassinated in recent years, with Iran blaming Israel and the US. Both countries deny the accusations. Continue reading the main story Analysis Frank Gardner BBC security correspondent The assassination on Wednesday of another Iranian nuclear scientist may now prompt Iran to try to respond in kind. The murder in Tehran of Mostafa Ahmadi-Roshan comes on top of a sophisticated cyber sabotage programme and two mysterious explosions at Iranian military bases, one of which in November killed the general known as 'the godfather' of Iran's ballistic missile programme. No-one is claiming responsibility for these attacks but Iran blames its longstanding enemy, Israel, and occasionally the US. Whoever is behind them, Iran is clearly being subjected to an undeclared campaign to slow down its nuclear programme. Frank Gardner's analysis in full Iran's Vice-President Mohammad Reza Rahimi told state television that the attack against Mr Ahmadi-Roshan would not stop "progress" in the country's nuclear programme. He called the killing "evidence of [foreign] government-sponsored terrorism". Local sources said Wednesday's blast took place at a faculty of Iran's Allameh Tabatai university. Two others were reportedly also injured in the blast, which took place near Gol Nabi Street, in the north of the capital

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5 UK men on trial for allegedly distributing leaflets calling for gay people to be killed

 

Five men are on trial in Britain for allegedly distributing leaflets calling for gay people to be killed, charged under a new law that makes such actions a hate crime. The men allegedly gave out flyers titled “The Death Penalty” that showed a noose and said gay people would be punished. Two other leaflets were used to publicize a protest against a gay pride march in the central English city of Derby in 2010. 0 Comments Weigh InCorrections? inShare The Crown Prosecution Service said Wednesday this was the first prosecution for stirring up hatred on the grounds of sexual orientation, under the law that took effect in March 2010. It has long been illegal to incite hatred over disability, race or religion. The maximum penalty for the crime is seven years in jail. Prosecutors said Ihjaz Ali, 42, Mehboob Hussain, 45, Umar Javed, 38, Razwan Javed, 27, and Kabir Ahmed, 28, handed out leaflets near a mosque in Derby and also stuffed them into mailboxes. Prosecutor Bobbie Cheema called the leaflets “frightening and nasty.” “These five defendants were part of a small group of men who distributed horrible, threatening literature, with quotations from religious sources and with pictures on them, which were designed to stir up hatred and hostility against homosexual people,” she said.

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Europe Banks Hoarding Cash Resist Draghi Bid to Avoid Crunch

 

Banks are hoarding the European Central Bank's record 489 billion-euro ($625 billion) injection into the banking system, thwarting attempts by policy makers to avert a credit crunch in the region. Almost all of the money loaned to 523 euro-area lenders last month wound up back on deposit at the Frankfurt-based central bank instead of pouring into the financial system, ECB data show. Banks will use most of the three-year loans to meet their refinancing needs for this year and next, analysts at Morgan Stanley and Royal Bank of Scotland Group Plc estimate. “It's illusory to think that the measure will translate into credit generation,” Philippe Waechter, chief economist at Natixis Asset Management in Paris, said in an interview. “It will assuage some of the anxiety banks have regarding their liquidity needs. But they've engaged into a massive overhaul of their strategy and shrinkage of their balance sheets, which is, coupled with the deteriorating economy, not compatible with increasing credit.” Governments are urging European banks to keep lending to companies and individuals while requiring them to raise an additional 114.7 billion euros of core capital by June to weather a deepening sovereign-debt crisis. Instead of raising equity, most lenders across Europe have vowed to meet capital rules by trimming at least 950 billion euros from their balance sheets over the next two years, either by selling assets or not renewing credit lines, according to data compiled by Bloomberg. ECB Deposits That has stirred concern among policy makers that banks will cut lending and throttle growth in the euro region. Banks have been parking almost all extra liquidity from the ECB loans back at the central bank. Barclays Capital estimates firms used 296 billion euros of the Dec. 21 three-year loans to replace maturing shorter-term ECB borrowings. That left only 193 billion euros of additional money for the financial system. Overnight deposits with the ECB have jumped by about 223 billion euros since the loans to a record 486 billion euros, suggesting the central bank funds haven't so far reached customers. Banks account for about 80 percent of lending to the euro area, making them “crucial to the supply of credit,” according to recently installed ECB President Mario Draghi. By contrast, U.S. companies rely more on capital markets for financing, selling bonds to investors. Refinancing Needs The ECB lending, and a follow-up loan offering on Feb. 28, won't ease the pressure on banks to shrink, say analysts including Huw van Steenis at Morgan Stanley in London. “The ECB loans will largely be used to pre-fund 2012 and some of 2013's bank refinancing needs, but it will not stimulate lending,” Van Steenis said. They will “just stop it falling off precipitously.” Euro-area banks have more than 600 billion euros of debt maturing this year, the Bank of England said in its financial stability report last month. The first ECB loan offering should help cover about two-thirds of that amount, Goldman Sachs Group Inc. analysts say. Morgan Stanley's Van Steenis estimates banks may reduce assets by as much as 2.5 trillion euros in two years, a process known as deleveraging. The volume of loans to households and companies in the 17- nation euro area shrank in November for the second consecutive month, the ECB said on Dec. 29. Loans were still up 1.7 percent over the year-earlier period, slowing from a 2.7 percent increase in the 12 months through October. Merkel, Sarkozy When granted, loans are getting costlier for borrowers. Since July, interest margins have increased, with investment- grade borrowers in Europe paying an average of 91.6 basis points more than benchmark rates, up from 84.4 basis points during the first half of 2011, according to data compiled by Bloomberg. A basis point is one-hundredth of a percentage point. “We must avoid a credit crunch for our economies,” European Union President Herman Van Rompuy said on Jan. 9. “The recent measures by the European Central Bank on a long-term lending facility for the banks are welcome in this context.” The European Banking Authority, which oversees the region's regulators, asked banks on Dec. 8 to retain earnings, curb bonuses and raise equity to boost core capital before resorting to cuts in lending. The EBA followed both French President Nicolas Sarkozy and German Chancellor Angela Merkel in urging banks to keep lending. Sarkozy said on Oct. 27 that he had asked firms to shift “almost all” of their dividends into strengthening balance sheets and to make bonus practices “normal.” Merkel said on Oct. 9 she was “determined to do whatever necessary to recapitalize the banks to ensure credit to the economy.” ‘No Credit Crunch' Bankers have said they haven't restricted lending and that demand for credit is slowing as growth slows. “All banks I talk to keep lending to small- and medium- size enterprises and households,” Christian Clausen, president of the European Banking Federation, an industry association, said on Dec. 9. “That part of the bank will keep rolling.” There is “no credit crunch,” Frederic Oudea, chief executive officer of Societe Generale SA, France's second- biggest lender, and chairman of the French Banking Federation, said last month. “The reality is that credit is available,” he said in an interview on BFM radio on Dec. 16. Even so, companies across Europe say credit is tightening. ‘Double Punch' In France, where credit to the private sector increased by 3.7 percent in November compared with a year earlier, the majority of the country's company treasurers said they encountered “very strong tensions” in negotiating bank loans, with more than 50 percent of respondents saying the process led to more expensive terms, according to a December survey by the French Association of Corporate Treasurers. The majority of those polled said obtaining bank financing was “as difficult as at the end of 2008,” after Lehman Brothers Holdings Inc. collapsed. U.K. banks expect to toughen their criteria on loans to companies and households in the first quarter because of strains in the wholesale funding market, the Bank of England said Jan. 5in its fourth-quarter Credit Conditions Survey. Belgian credit growth slowed to 3.1 percent in the 12 months to the end of October, from 3.6 percent at the end of September, the country's central bank said on Dec. 12. In Italy, some companies with annual sales of 30 million euros to 40 million euros are charged as much as 10 percent interest on loans, Emma Marcegaglia, chief of the country's Confindustria lobby group, said in an interview on Dec. 20. Lending to businesses and consumers grew at the weakest pace in a year, the Bank of Italy said today. Draghi's Priority With the ECB's injection, “deleveraging may happen in a more orderly way, but it doesn't mean it will be painless,” said Alberto Gallo, head of European credit strategy at RBS. Banks are faced with high long-term financing costs, a deteriorating economy and difficulties raising capital, he said. “It's what I call the double punch: A combination of negative growth and banks' deleveraging will affect lending activity.” Even the ECB's Draghi, who has made it one of his priorities is to keep credit flowing into the economy, said the central bank's loan offerings may fail to achieve that goal. “Monetary policy cannot do everything, but we're trying to do our best to avoid a credit crunch that might come from a lack of funding,” Draghi said Dec. 19 at the European Parliament in Brussels. “We have to be extremely careful here, because there may be other reasons that create a credit crunch.” Draghi may be wary of the U.S. experience with multiple rounds of bond purchases. That so-called quantitative easing hasn't stimulated lending, Natixis's Waechter said. ‘Kick the Can' “Lending really picked up when the economy got better,” he said. The ECB cut its forecast for euro-area economic growth in 2012 to 0.3 percent on Dec. 8 from a September prediction of 1.3 percent. The central bank expects the economy to expand 1.3 percent next year. In the U.S., almost all categories of bank lending fell in 2009 and 2010 and didn't start improving until last year, when the Federal Reserve stopped its second wave of quantitative easing, according to data by the U.S. institution. Banks increased their holdings of Treasury and agency securities in 2009 and 2010, showing they were using the Fed's cheap money to own safe government paper. Because quantitative easing tends to improve capital markets first, the healing will be even slower in Europe given its reliance on banks for borrowing, according to Gallo.

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British man dies, strangled in a ponche

 

A 32 year old Briton died on Mallorca around 1730 on Wednesday afternoon in a domestic accident in a property in Cami de Son Choix de Lloret, Lloret de Vistalegre. He was strangled when a poncho he was wearing got caught in a generator which he had just started up. 061 emergency services arrived at the scene and found the man seriously injured, but there was nothing they could do to save his life.

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British paedophile arrested in Almería

 

National Police have today arrested a 66 year old British man who is wanted on four charges of rape and on twelve counts of sexually abusing his step-daughter when she was nine to 13 years old, and then later the granddaughter when aged six. The arrest took place in Los Gallardos, Almería, and the man has been named as L. Morris. The search for him started in July 2010 when the granddaughter finally told her both that she had suffered abuse on two occasions, and an arrest order was then issued with the suspect fleeing to Spain. Meanwhile a man wanted in Sweden has been arrested in his home in Málaga province. J.F. Ask, aged 56, is wanted on tax evasion charges and is accused of not paying tax between 2001 and 2005.

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Hundreds of metres under one of Iceland's largest glaciers there are signs of an imminent volcanic eruption that could be one of the most powerful the country has seen in almost a century.

 

Mighty Katla, with its 10km (6.2 mile) crater, has the potential to cause catastrophic flooding as it melts the frozen surface of its caldera and sends billions of gallons of water surging through Iceland's east coast and into the Atlantic Ocean.

"There has been a great deal of seismic activity," says Ford Cochran, the National Geographic's expert on Iceland.

"There have been more than 500 tremors in and around the caldera of Katla just in the last month, which suggests the motion of magma. And that certainly suggests an eruption may be imminent."

Scientists in Iceland have been closely monitoring the area since 9 July, when there appears to have been some sort of disturbance that may have been a small eruption.

Eruption 'long overdue'

Even that caused significant flooding, washing away a bridge across the country's main highway and blocking the only link to other parts of the island for several days.

"The July 9 event seems to mark the beginning of a new period of unrest for Katla, the fourth we know in the last half century," says Professor Pall Einarsson, who has been studying volcanoes for 40 years and works at the Iceland University Institute of Earth Sciences.

Continue reading the main story

“Start Quote

It means you actually see the crust of the earth ripping apart”

Ford CochranIceland expert, National Geographic

"The possibility that it may include a larger eruption cannot be excluded," he continues. "Katla is a very active and versatile volcano. It has a long history of large eruptions, some of which have caused considerable damage."

The last major eruption occurred in 1918 and caused such a large glacier meltdown that icebergs were swept by the resulting floods into the ocean.

The volume of water produced in a 1755 eruption equalled that of the world's largest rivers combined.

Thanks to the great works of historic literature known as the Sagas, Iceland's volcanic eruptions have been well documented for the last 1,000 years.

But comprehensive scientific measurements were not available in 1918, so volcanologists have no record of the type of seismic activity that led to that eruption.

All they know is that Katla usually erupts every 40 to 80 years, which means the next significant event is long overdue.

Eyjafjallajokull's relatively small eruption in 2010 halted air traffic across Europe

Katla is part of a volcanic system that includes the Laki craters. In 1783 the chain erupted continuously for eight months generating so much ash, hydrogen fluoride and sulphur dioxide that it killed one in five Icelanders and half of the country's livestock.

"And it actually changed the Earth's climate," says Mr Cochran.

"Folks talk about a nuclear winter - this eruption generated enough sulphuric acid droplets that it made the atmosphere reflective, cooled the planet for an entire year or more and caused widespread famine in many places around the globe.

"One certainly hopes that Katla's eruption will not be anything like that!"

The trouble is scientists do not know what to expect. As Prof Einarsson explains, volcanoes have different personalities and are prone to changing their behaviour unexpectedly.

"When you study a volcano you get an idea about its behaviour in the same way you judge a person once you get to know them well.

"You might be on edge for some reason because the signs are strange or unusual, but it's not always very certain what you are looking at. We have had alarms about Katla several times."

Changing climate

He says the fallout also depends on the type of eruption and any number of external factors.

Iceland is the only place where the mid-Atlantic rift is visible above the surface of the ocean

"This difficulty is very apparent when you compare the last two eruptions in Iceland - Eyjafjallajokull in 2010 and Grimsvotn in 2011.

"Eyjafjallajokull, which brought air traffic to a halt across Europe, was a relatively small eruption, but the unusual chemistry of the magma, the long duration and the weather pattern during the eruption made it very disruptive.

"The Grimsvotn eruption of 2011 was much larger in terms of volume of erupted material.

"It only lasted a week and the ash in the atmosphere fell out relatively quickly.

"So it hardly had any noticeable effect except for the farmers in south-east Iceland who are still fighting the consequences."

Of course, volcanoes are erupting around the world continuously. Scientists are particularly excited about an underwater volcano near El Hierro in the Canary Islands, which is creating new land.

But Iceland is unique because it straddles two tectonic plates and is the only place in the world where the mid-Atlantic rift is visible above the surface of the ocean.

"It means you actually see the crust of the earth ripping apart," says Mr Cochran. "You have an immense amount of volcanic activity and seismic activity. It's also at a relatively high altitude so Iceland is host to among other things, the world's third largest icecap."

But the biggest threat to Iceland's icecaps is seen as climate change, not the volcanoes that sometimes melt the icecaps.

They have begun to thin and retreat dramatically over the last few decades, contributing to the rise in sea levels that no eruption of Katla, however big, is likely to match.

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SCOTLAND'S failure to tackle the scandal of sex trafficking is exposed in a damning report today.

Baroness Helena Kennedy believes sex-trafficking victims are being let down by Scots law

 

The report demands a crackdown on the organised crime gangs behind the vile trade and lifts the lid on how the victims of trafficking and exploitation have been let down.

Leading human rights lawyer Baroness Helena Kennedy, who wrote the report for the Equality and Human Rights Commission, is critical of the Scottish government, the police and other law enforcement agencies.

The report looks into all aspects of human trafficking but focuses explicitly on "commercial sexual exploitation".

A source close to the inquiry said last night: "This is Scotland's dirty little secret."

The report criticises the shortfall in public or professional awareness in Scotland of human trafficking and says police have a "significant" intelligence gap on the problem.

It reveals those who are trafficked are being exploited by organised criminals, often held captive in private flats used as brothels and systematically abused.

Other victims are forced into criminal acts such as benefits fraud or cannabis cultivation, exploited on fruit-picking farms or in the hospitality industry or forced into conditions akin to slavery as domestic servants.

The report's 10 recommendations include the establishment of a task force to take on the gangs behind the misery.

And it also calls for laws to be beefed up to punish the criminals heavily when they are caught.

The source said: "The Scottish government and police have not taken the proper steps to combat human trafficking. The problem exists all over Scotland and is not confined to the sex industry.

"People are being shipped in from all over the world to be used as cheap labour and serious gangsters are behind it.

"We've had prostitutes coming from as far away as Brazil, Nigeria and Bolivia to work in Scottish cities and police don't do anything.

"The recommendations made in the report need to be followed up urgently."

The inquiry's findings and mmendations are based recommendations on written evidence and face-to-face interviews and include statements from victims of trafficking.

Glasgow-born Baroness Kennedy described the nature and extent of human trafficking in Scotland as "a human rights abuse of terrible consequences".

She said: "Human trafficking is one of those pressing contemporary issues which speaks to the societies nature of our societies. It tests the value we attach to the humanity of others.

"That is why it is so important to develop effective strategies to combat trafficking. It speaks to who we are as a people. Confronting it involves collaboration."

She added: "I am hoping Scotland will pioneer a zerotolerance approach, leading the way with new strategies, legislation, and the kinds of multi-agency cooperation that enables the punishment of the traffickers and the identification and recovery of the victims."

Last month, in the first case of its kind in Scotland, Stephen Craig, 34, from Clydebank, was jailed for three years and four months for controlling prostitutes.

His co-accused, Sarah Beukan, 22, from Leith in Edinburgh, was jailed for 18 months.

They were the first people to be convicted in Scotland under new laws covering trafficking within the UK.

The pair admitted moving 14 people to addresses in Glasgow, Edinburgh, Belfast, Cardiff and Newcastle to work as prostitutes.

Equality and Human Rights Scotland Commissioner Kaliani Lyle said: "Trafficking is one of the most severe human rights abuses in the modern world.

"It operates below the radar and is kept there through fear and deception. Our challenge is to rid Scotland of this modern slavery."

Ann Fehilly, of the Glasgow Community and Safety Services TARA Project, said: "If we are able to ensure that protections are in place, then more prosecutions will follow, ensuring that Scotland sends a message to those who traffic and exploit vulnerable women that such abuses will not be tolerated."

Justice secretary Kenny MacAskill said: "The Scottish government welcome this inquiry and the extensive work Baroness Kennedy has undertaken to expose the unacceptable and atrocious practices which allow human trafficking to persist."

He added: "Trafficking is a particularly horrific and brutal violation of human rights. It has no place in modern Scotland and the consequences it brings for victims and communities are incredibly damaging."

Case Study: Evil deeds exposed in Record

THE Daily Record has shone a light on Scotland's seedy underbelly, with senior reporter Annie Brown interviewing victims and those working to beat trafficking.

Last month, Annie met former vice girl Susan, 36, who worked out of flats run by Scotland's only convicted sex traffickers Stephen Craig and Sarah Beukan.

The mum-of-three told how one woman worked for Craig when she was six months pregnant and another was traumatised after having sex with 12 men in a row.

And sadistic Craig threatened to pour boiling water down one woman's throat if she moved on.

Annie also met Ann Hamilton, who established the Trafficking Awareness Raising Alliance (TARA) in 2005 to help identify and support women in Glasgow who had been sex trafficked.

Ann said: "We saw there were a lot of foreign women in prostitution in Glasgow and the Met Police in London were warning us about trafficking.

"We had never heard the term but very soon we realised we had an issue and we had to establish a service for the women and I think it has worked very well."

Key Points

1 Scotland needs a comprehensive strategy against trafficking.Recommendation: Scottish government should develop strategic plan.

2 There is little public or professional awareness of human trafficking or its indicators. Recommendation: Holyrood should run an anti-trafficking campaign.

3 Human Scotland and in the UK has developed in a piecemeal fashion.Recommendation: Holyrood should consider introducing comprehensive Human Trafficking Bill.

4 Police service has a significant intelligence gap on human trafficking.Recommendation: Set up multi-agency task force.

5 There have been few prosecutions against suspected traffickers.Recommendation: Review legislation to consider tougher sentences where human trafficking is background to crimes.

6 Law enforcement bodies have disrupted organised crime through asset recovery but there have been few operations against traffickers.Recommendation: Develop strategy for using asset recovery powers against trafficking groups.

7 Recommendation: Scottish and UK governments to help various agencies, such as employers, bring awareness of human trafficking into their operations.

8 Recommendation: Holyrood involve private sector in strategic approach in dealing with awareness and monitoring of trafficking.

9 Recommendation: Home Office should lead review of system for identifying trafficking victims.

10 Scotland does not yet have comprehensive, end-to-end services for victims of human trafficking. Recommendation: Holyrood should develop a trafficking care standard.

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Marvel character, Erik Lensherr a.k.a. Magneto, has apparently infringed the copyright of the King of Spain

Marvel character, Erik Lensherr a.k.a. Magneto, has apparently infringed the copyright of the King of Spain in Ultimate Marvel vs Capcom 3, with the Zarzuela Palace claiming the X-Men villain's alternate costume is identical to the military uniform worn by King Juan Carlos.

Representitives for the Zazuela Palace have contacted the Spanish distributor of the game in the region, Koch Media, to warn them of possible copyright infringement.

This isn't the first time the Spanish Royal's has stamped their feet over the strong resemblences, as Marvel faced a similar dispute when Magneto first donned the uniform in The Pulse: House of M Special X-Men special.

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New ecstasy fears after two dead and one seriously ill following club weekend

 

The clubbers, aged 20 and 21, died within hours of each other at the same hospital after attending separate dance music events at Alexandra Palace in north London over the weekend. Another 20-year-old man, also thought to have attended an event at the venue, is also being treated at the same hospital where he is said to be in a serious but stable condition. Last night Scotland Yard issued a special appeal to any young people who may have taken drugs at or before either of the events to seek immediate medical attention amid fears dealers may have been peddling an ultra-strong batch. It comes just a week after the charity Drugscope, which monitors trends in underground the drug trade, warned of an alarming rise in the popularity of ecstasy which dominated the 1990s rave scene but fell out of fashion. A surge in use follows an influx of a more-potent Chinese variants of the drug which is based on the chemical MDMA, or methylenedioxymethamphetamine.

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Ecstasy alert after club deaths

 

wo young clubbers suspected of taking ecstasy died after separate dance music events at London's Alexandra Palace, police said. The men, aged 20 and 21, were admitted to a north London hospital on Sunday and were pronounced dead within seven hours of each other. The 21-year-old is thought to have attended an all-night party called Bass Culture, which started on Friday and continued into Saturday. The 20-year-old is believed to have attended a night called Epic, starting on Saturday night and running into Sunday. A second 20-year-old man who was also believed to have attended the event on Saturday night was admitted to hospital as well and remains in a serious but stable condition. The Metropolitan Police said the cause of the deaths and injury was yet to be established but confirmed that one line of inquiry was that the men may have taken illegal substances, possibly MDMA - the chemical name for ecstasy. They issued an urgent appeal for other clubbers to seek medical attention following the unexplained deaths. Detective Inspector Rita Tierney said: "Although it is too early to say what caused these men's health to deteriorate, we are investigating the possibility that illegal drugs may have been involved. "If you have taken what you believed to be MDMA, or any other substance, during this weekend's events at Alexandra Palace, and are now feeling unwell, I would strongly urge you to attend your nearest hospital as soon as possible."

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Police were in dark over foreign axe killer living in UK

 

COPS did not know an East European axe murderer was living in the UK until he caused a killer car crash, a court heard yesterday. Intars Pless, 34, hacked through a friend's throat in his native Latvia, then moved to Britain after he got out of jail. But Lincoln Crown Court heard police can only check a foreign national's record if they break the law here. So Pless's horrific crime came to light only after he drove into moped rider Valentina Planciunene, 37, while over twice the limit. Stuart Lody, prosecuting, told the court: "On the night of Valentine's Day he decided it would be a perfectly good idea to drink a very large quantity of whisky. Surprised "He and a friend spent a considerable period of time drinking whisky and driving around. "During the driving he was possibly drinking whisky as well. An empty whisky bottle was found in the boot of the car. "At the time of the collision he was heavily under the influence of alcohol. His ability to drive would have been severely impaired." Pless was convicted of causing death by dangerous driving after the jury heard he left her dead in the road in Wyberton Fen, Lincs. He was told he faces a long jail term. The judge also called for his deportation.

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U.K. tax falls on overseas property investors

 

Overseas property owners based in the UK are about to be targeted by a new HM Revenue & Customs "affluent unit", which has been set up by the British government to address what it sees as tax avoidance by the rich.Photo 20minutos.es What next I wonder?? A new team of 200 taxation investigators and specialists has been established by HMRC to identify wealthy individuals who, amongst other things, own land and property abroad … such as a holiday home. OPP understands that the tax attack unit will concentrate on overseas property assets first, and then switch its attention to UK-based commodity traders (who have been accused of helping to drive up food prices,) before looking into the number of UK residents who hold offshore investment accounts. HMRC says that it will be using sophisticated "data mining" techniques to try and track down people who own overseas properties, but do not pay the right amount of tax. This might include someone who owns a villa in Spain which they are renting out, or an individual who owns a piece of land in France that is being used as business premises, said an HMRC spokesman. The experts will be looking for people who do not seem to be declaring the correct income and gains. The new unit, which has been announced by the UK’s Chief Secretary to the Treasury, Danny Alexander, will focus solely on people paying the 50% top tax rate. David Gauke, the exchequer secretary to the Treasury, said there would be "no hiding place" for tax cheats, adding that the UK government “is committed to tackling tax evasion and avoidance across all areas of the economy. That is why we allocated HMRC £917m to reduce the tax gap over the next four years. This new team is part of that investment." Ronnie Ludwig, tax partner at accountancy group Saffery Champness told OPP that “those who have been letting out their foreign property and declaring the rents received have nothing to fear, but those who own foreign property which has never been let out should be prepared to prove to HMRC that they have received no income from the property.” “This will involve producing UK and foreign bank statements and being able to demonstrate that they could afford to purchase and maintain the property out of normal declared sources."

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British woman falls off hotel balcony when having sex

 

There has been another case of balconing in Spain, this time in Adeje, Tenerife, and with the twist that the victim was having sex with her husband at the time she fell. The British tourist who fell several metres then got her ankle caught between the bars of an internal staircase was left hanging there, head down and totally naked until the emergency crews arrived. 49 year old A.M.A.M. had been having sex with her husband against the railings on one of the public areas of the hotel and in the frenzy, the railings gave way. The husband called the emergency services and the local and national police arrived with a fire crew. After their initial surprise, the managed to release the woman’s trapped right leg, and she was taken for observation to the Hospitén Sur.

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Saif al-Islam Gaddafi is pictured sitting in a plane in Zintan after his capture in Libya's rugged desert.

Photograph: Ismail Zitouni/Reuters

The man who led the fighters that captured Saif al-Islam has said that the late dictator's son tried to escape arrest by pretending to be a camel herder.

"When we caught him, he said, 'My name is Abdul Salem, a camel keeper,'" said commander Ahmed Amur on Sunday. "It was crazy."

His unit, from Zintan's Abu Bakar al-Sadiq brigade, had been patrolling the vast southern desert of Libya for more than a month when it was given a tip-off late last week that Saif al-Islam was close to the town of Obari.

"We knew it was a VIP target, we did not know who," said Amur, who worked as a professor of marine biology in Tripoli before the war.

He said rebel units with pickup trucks mounted with anti-aircraft guns deployed in ambush positions in the desert near Obari, a small town that lies astride roads leading to both Algeria and Niger.

As the informant had predicted, two Jeeps came into view at lunchtime on Friday, surging through the desert near the main highway that leads to Niger.

"When we saw the first car we fired shots ahead of it, not to hit, as a warning. It stopped. Then the second car belonging to Saif came," he said, speaking in English. "We shot warning shots, he (Saif's car) stopped in the sand. Saif and his aide came out of the car."

He said rebel fighters approached on foot, Saif threw himself face down and began rubbing dirt on his face. "He wanted to disguise himself," he said.

Amur raced up to him and ordered him to stand up, finding himself face to face with Saif al -Islam.

But the most notorious son of the late dictator claimed he was not one of the world's most wanted war crimes suspects, but a simple camel herder – Abdul Salem being the equivalent of a British "John Smith".

"His face was covered (with dirt), I knew who he was," said Amur. "Then he said to us, 'Shoot.' When the rebels refused to shoot, and identified themselves, Saif told them: 'OK, shoot me, or take me to Zintan.'

"We don't kill or harm a captured man, we are Islam," said Amur, still clad in the green combat jacket he wore when making the arrest. "We have taken him here to Zintan. After that, our government is responsible."

Zintan was on Sunday hemmed-in by checkpoints set up by its fighters, whose units fought some of the toughest battles of the war, ending in their attack on Tripoli in August.

Omran Eturki, leader of Zintan council, says Saif must face trial in Zintan's own courthouse. "We can try him, it will not take too long, we don't need any new laws," he said, referring to questions over Libya's current legal limbo. "They are Zintanis who captured him so they will have to have him here."

Eturki said it was better to try him in Libya than send him to the international criminal court, which has indicted Saif for war crimes and crimes against humanity.

"The judicial authorities can appoint the judges and the lawyers, but the trial must be here. As long as there is justice, that is it."

He said Saif would get a fair trial. "There is no point to make a revolution for justice, and then you become the same killers. All the people of Zintan want to see him have a proper trial. We don't like to harm him. If we wanted to kill him we could kill him. We captured him so I think we have the right to try him."

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UK press in dock over phone-hacking, lawyer says

 

Britain's entire press stands in the dock at an inquiry into media standards, said a lawyer representing victims of press intrusion and phone-hacking by Rupert Murdoch's News of the World. David Sherborne, who is representing 51 "core participants" at an inquiry set up as the hacking scandal engulfed News Corp's British arm, said Wednesday that "tawdry" tabloids were guilty of blackmail, bribery and vilification. He said his clients had endured lies, harassment and other "despicable" actions from the press and that phone-hacking might only be the tip of the iceberg. "It is the whole of the press, and in particular the tabloid section of it, which we say stands in the dock," he said. "It is time we had change and by that I mean real change." The Leveson inquiry, due to last a year, will make recommendations which could have a huge impact on the industry and lead to tighter regulation and, at the least, an overhaul of the current system of self-regulation. Lawyers for Britain's major newspaper groups have already pleaded for the essence of that system to remain and said that if anything, the press needed more freedoms. But in a scathing and detailed attack on newspapers, particularly the notoriously aggressive tabloid press, Sherborne said: "We are here not just because of the shameful revelations which have come out of the hacking scandal, but also because there has been a serious breakdown of trust in the important relationship between the press and the public." "The press is a powerful body. They have a common interest and a self-serving agenda," he told the inquiry. Sherborne said revelations that a private detective, jailed for phone-hacking in 2007 along with the News of the World's former royal reporter, had carried out more than 2,000 tasks for the paper suggested that there were about 10 stories in the tabloid every week from the illegal practice. He listed details of some of those who had been targeted, starting with the parents of Milly Dowler, a missing schoolgirl who was later found murdered. It was the revelation that her phone had been hacked while she was missing that changed attitudes to the issue. Within days, News Corp withdrew its bid to buy the 61 percent of broadcaster BSkyB it did not already own and its British newspaper arm News International closed down the 168-year-old News of the World. It also prompted Prime Minister David Cameron to order the inquiry.

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UK economy forecast: Eurozone crisis dampens Bank’s growth estimate

 

THE Bank of England warned today that the eurozone debt crisis is the “single biggest risk” to the UK recovery as it forecast a dramatically increased threat of a double-dip recession next year. Its quarterly inflation report revealed a greater chance of the economy contracting in the first three quarters of 2012, compared with its August forecasts, as eurozone and banking concerns and squeezed household budgets continue to weigh on growth. The Bank slashed its central - or most likely - growth estimate to no more than 1 per cent in both 2011 and 2012 from previous forecasts of around 1.5 per cent and 2.2 per cent respectively. The worsened prospects for the UK economy mean inflation is likely to fall far quicker than previously estimated, hitting the Government’s 2 per cent target in the second half of next year before falling to as low as around 1.3 per cent in 2013. Bank governor Sir Mervyn King warned the “journey to a more balanced world economy will be long and arduous”. He said UK economic activity will be broadly flat until the middle of next year and added that the country faces a “difficult economic environment”. Today’s report backs the City’s view that the Bank will keep interest rates on hold for the foreseeable future and add another £75 billion to its quantitative easing programme by February. Vicky Redwood, chief UK economist at Capital Economics, said: “Even the Bank’s downgraded growth forecasts still look optimistic to us - we expect zero growth next year.”

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private jets waved through customs and immigration checks

Home Secretary Theresa May (Pic:PA)

THERESA May was fighting for her job last night after damning new documents fuelled the scandal of lax security at our borders.

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Leaked emails showed that thousands of private jet passengers were allowed into the UK without going through immigration or customs.

They also revealed the Home Secretary relaxed checks at airports on at least 2,500 occasions this summer.

And the Mirror can reveal passport applications are being secretly subjected to a controversial new “postcode lottery” trial scheme.

The High Risk Applications scheme is based on fraud statistics. Staff were given a list of postcodes to check against every new passport application or renewal. Applicants in areas deemed to be higher risk face several weeks additional delay in getting their passports.

In London, the only areas which get virtually no checks are postcodes that begin with WC and EC – the most central and prosperous areas. Meanwhile applications from women aged 50 and over are often waved through.

A source said: “It’s a classic Tory policy, and it discriminates against those they deem to be living in ‘poor’ areas.

“The whole thing smacks of elitism and snobbery. A lot of people are very unhappy with the process.”

These revelations come on the day ousted Border Agency official Brodie Clark gives evidence to MPs on how he was pushed out by Mrs May.

Borders boss Brodie Clark

Labour yesterday released the leaked emails showing UK Border Agency staff were told NOT to check passengers arriving in the UK by private jets – at the instruction of the Home Office.

From March 2, 2011, anyone on a private charter did not have to show their passports and could avoid customs. Figures show there are between 80,000 to 90,000 private flights each year, carrying two to three passengers.

The emails show an unnamed official at Durham Tees Valley Airport warned the UK Border Agency that the policy was putting the UK’s security at risk.

He said that staff “continue to feel uneasy about an instruction that is at odds with national policy and is creating an unnecessary gap in border security which, if exploited by the unscrupulous, could bring the Agency into disrepute”.

He also warned there was no way of checking if the number of people arriving in the country was the same as they had been advised.

His manager at the UK Border Agency’s Border Force said the “no checks policy” was part of a “new national strategy”.

In a further blow to Mrs May, other leaked documents showed how Britain’s borders were abandoned on hundreds of occasions over summer.

The Home Secretary ordered a pilot scheme, which ran from July to October this year, under which Border Agency staff could relax checks on passengers. It meant people arriving from the European Economic Area did not have the biometric chip in their passport checked, while children under 18 could be waved through.

These “level 2 checks” were used on at least 2,600 occasions. The relaxed regime was used to speed up queues at immigration control.

According to an email from a Border Agency Border Force official, the checks were relaxed 100 times in the first week of the trial and more than 260 times in the sixth week.

We revealed last week that officials warned Mrs May the easing of border checks could lead to a rise in child trafficking.

Mrs May admits to bringing in the pilot scheme without informing MPs. But she claims that Mr Clark went further by extending it to include passengers from outside Europe.

Mr Clark, who resigned last week, denies he acted without ministerial authority. His testimony to the Commons select committee could prove very damaging to Mrs May.

Shadow Home Secretary Yvette Cooper said last night: “This is startling new information about the scale of the borders fiasco.

“Ten days on there are even more questions than answers about what on earth was going on at our borders.

“Last week the Home Secretary told us no one had been waived through without checks. But these documents show passengers on private flights weren’t even seen.

"Last week the Home Office wouldn’t admit to having figures about how often checks were downgraded. Now we know those figures exist and that checks were downgraded 260 times in one week alone.

“The Home Secretary needs to show she is capable of sorting this fiasco out rather than making it worse.”

Last night, the Home Office refused to comment on the trial.

The UKBA said: “It is not true that we don’t carry out ­passport and warnings checks on private flight passengers and will deploy officers to airfields where we have concerns.”

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