Jamie “Iceman” Stevenson is back on the streets

Jamie “Iceman” Stevenson is back on the streets – less than halfway through his prison sentence for laundering £1million of drugs cash. Scotland’s most powerful mobster has been enjoying meals at expensive restaurants and socialising with pals after being allowed home for a week each month. Stevenson – who was also accused of shooting dead his best friend in an underworld hit – was put behind bars in September 2006 when he was arrested after a four-year surveillance operation by the Scottish Crime and Drug Enforcement Agency. He was later sentenced to 12 years and nine months for money laundering. But, we can reveal, he is now allowed out of Castle Huntly open prison near Dundee – just five years and 10 months later. A source said: “He seems determined to show his face all around town to deliver the message that he’s back and, as far as he’s concerned, nothing has changed. “A lot of people are surprised that he’s being allowed out so early. Some are not too pleased about it for a number of reasons.” Stevenson, 47, has been spotted at Bothwell Bar & Brasserie, which is run by his friend Stewart Gilmore. He and his cronies have also dined at upmarket Italian restaurant Il Pavone in Glasgow’s Princes Square shopping centre. And Stevenson has joined friends at various other restaurants and hotels, including Glasgow’s Hilton Garden Inn. A Sunday Mail investigation can today reveal that the Parole Board for Scotland could recommend Stevenson’s total freedom as early as February next year. However, the final decision on his release will rest with Justice Secretary Kenny MacAskill. Yesterday, Labour justice spokesman Lewis Macdonald said: “I’m surprised to hear this and that anyone in these circumstances should get out of jail before the halfway point of their sentence – far less so when the conviction is of someone involved in organised crime. “The only circumstances where that would be conceivable would be if someone completely changed their lifestyle. But even then that should not be before they’ve served half their sentence. “I’m sure the victims of these crimes – and with drugs there are direct and indirect victims – will also be surprised at this.” To prepare Stevenson for his release, prison bosses have allowed him to stay a full week each month at his modest flat in Burnside, near Glasgow. On Friday, we watched him leaving the property with his wife Caroline and driving off in a silver Audi. A prison service insider said: “The Parole Board expect the prison authorities to have allowed home visits to test suitability for release ahead of the first eligible parole date. In Stevenson’s case, that’s next February. “There are conditions attached which vary but usually include the obvious ones like not mixing with other criminals and staying only at the designated address. “For prisoners sentenced to more than 10 years, the Parole Board make their recommendations to the Justice Secretary, who then decides whether to release on licence. “Stevenson is trying to keep his nose clean to convince the Parole Board that he poses no threat to society. “But, given his high profile and significance, it’s inevitable that the authorities will be careful before making any final decision.” Stevenson headed a global smuggling gang with a multi-million-pound turnover when he was brought down by the SCDEA’s Operation Folklore, which seized £61million of drugs. He faced drug and money laundering charges along with eight other suspects, including his 53-year-old wife. But his lawyers struck a deal with the Crown Office to admit money laundering in exchange for his wife’s freedom and the drugs charges being dropped. Stevenson’s stepson Gerry Carbin Jr, 32, was also jailed – for five years and six months – but was freed in 2010. Stevenson was previously arrested for the murder of Tony McGovern, 35, who was gunned down in Glasgow’s Springburn in 2000. But prosecutors dropped the case through lack of evidence. A gangland source said: “He does not fear any kind of reprisal from Tony’s brothers, nor does he regard any other criminals in Scotland as a threat or even as rivals. He did not fear any other operation in Scotland before he was jailed. Why would he now?” Two years ago, the Sunday Mail exposed a backdoor deal when the Crown handed back Stevenson’s £300,000 watch collection, which had been seized under proceeds of crime of legislation. Last June, he was sent back to high-security Shotts jail in Lanarkshire from an open prison after a major SCDEA drugs probe, Operation Chilon. Detectives believed that the gang they investigated was controlled by Stevenson. Haulage firm boss Charles McAughey’s home was one of 11 targeted in raids. In 2009, we revealed that French police had found 684kg of pure cocaine worth £31million in a lorry owned by McAughey. Chilon resulted in the SCDEA seizing 242kg of cannabis worth £1.21million and the jailing of three men for a combined 15 years.

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Tulisa's Friend, 21, Shot Dead In Gangland Hit

Reece James, 21, a close friend of Tulisa Contostavlos has been shot dead in a reported gangland attack. The 21-year-old, who appeared with Tulisa in a video for rapper Nines, was shot in the head in a "pre-planned and targeted" hit, 100 miles from his home in London, reports the UK's Sun newspaper. Police found James' body in Boscombe, Bournemouth, at around 2.30am near where Somali drug gangs are said operate. A 22-year-old man was arrested. Reece was said to have been in the area with some friends for "a couple of months", though had filmed the video earlier this month with Tulisa and rapper Nines on the Church End Estate in Harlesden, North West London. The former N Dubz star caused controversy at the time, making a "C" symbol to the camera - the same sign that is used by Harlesden's notorious Church Road Soldiers gang. Tulisa claimed it was a reference to Camden, where she was born. Twitter tributes began flooding in last night, with one user writing, "RIP Reece James. Thoughts are with him and his family and friends". Local MP Tobias Ellwood described the killing as "a spill over from the drugs turf war in the capital", adding, "This was one London gang chasing down another, carrying out a professional hit and then going back".

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Gangs of highway robbers are targeting British tourists on holiday in Spain.

Hundreds of visitors in British-registered vehicles or hire cars have had their possessions, passports and money taken in ‘quick and slick’ distraction muggings.

The thieves typically trick their victims with loud noises, apparent accidents, supposed vehicle problems or pleas for help – before stealing bags and belongings from their vehicles. 

Thieves: Hundreds of visitors in British-registered vehicles or hire cars have had their possessions, passports and money taken in 'quick and slick' distraction muggings

As millions of families begin their summer breaks, the Foreign Office has warned British-registered cars are ‘an easy target’ for motorway thieves. 

The number of British tourists ambushed on Spanish roads has soared as the euro crisis has deepened, with the British Embassy in Madrid reporting a 10 per cent rise in the first quarter of this year.

 This is likely to increase further as the peak holiday season begins. 

A spokesman for the embassy said:  ‘Motorists may be driving along the motorway and not notice there’s a car close up behind. 

‘Someone in the other car throws a stone at their vehicle which creates a loud bang. The British drivers pull over to see what has happened and the gang is behind them. 

‘They cause a distraction to steal from them or simply mug them. It’s a growing problem.’

Warning: As millions of families begin their summer breaks, the Foreign Office has warned British-registered cars are ¿an easy target¿ for motorway thieves

A hotspot for the gangs is the AP7 motorway between the French border and the Alicante region in southern Spain. 

More than 140 cases of theft on this route were reported to British Consulates last year. 

However, a spokesman said there were likely to be ‘hundreds more’ attacks going unreported across Spain because victims usually contact a British consulate only if they have lost their passport. 

Dave Thomas, consular regional director for Spain, said: ‘Be on your guard against anyone who attempts to stop you or ask you for help.

‘They may well be part of a  gang operating a scam in which an unseen accomplice will rob you of your things.’ 

Stephen and Helen Robinson, from Desford, Leicestershire, had their bags stolen from their Audi Q5 as they stopped to walk their labrador retriever Polly at a service station between Barcelona and Valencia. 

The couple, who are in their 50s, were standing at the boot of their car when a man on a mobile phone asked them how to say something in English. 

While he distracted them, their belongings were taken from the front of the car, despite Polly being inside. 

Mrs Robinson said: ‘It was quick and slick. You may be more tired and therefore more vulnerable when you’ve been travelling, so separate your valuables into different places in the car, and when you stop be aware you may be being watched. You won’t see the accomplice of the person who is distracting you.’ 

In a separate incident, Joy and Alan Horton, from Bury St Edmunds in Suffolk, were driving a Ford Focus hatchback through Spain when they heard a loud bang and pulled over.

A car that had been travelling close behind them also stopped, and while the driver talked to them, his accomplice stole their possessions without them noticing.

Mr Horton said: ‘If you think your car may have been in a collision and you pull over, lock the car as soon as you get out and mount a guard on both sides of the vehicle. Keep all bags and valuables in a locked boot.’ 

Professor Stephen Glaister, of the RAC Foundation, said: ‘Drivers need to remember to stay alert and be ready for unwelcome surprises just as they would be at home.’

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The biggest fines in British maritime history were handed down to a group of Spanish fishermen on Thursday, for illegal fishing in UK waters.

 Photograph: Robert Ghement/EPA

Some of the biggest fines in British maritime history were handed down to a group of Spanish fishermen on Thursday, for illegal fishing in UK waters.

Two companies owned by the Vidal family were fined £1.62m in total in a Truro court, after a two-day hearing, in which details emerged of falsified log books, failing to register the transfer of fish between vessels, false readings given for weighing fish at sea, and fiddling of fishing quotas.

Judge Graham Cottle said the family were guilty of "wholesale falsification of official documentation" that amounted to a "systematic, repeated and cynical abuse of the EU fishing quota system over a period of 18 months".

He said: "[This was a] flagrant, repeated and long term abuse of regulations. The fish targeted [hake] was at that time a species of fish on the verge if collapse and adherence to quotas was seen as crucial to the survival of the species."

The Spanish fishing vessels had been sailing under UK flags and were landing fish based on quotas given to British fishermen under the EU's common fisheries policy. Two vessels were involved, but the companies own several other large vessels, capable of industrial-scale fishing.

The offending fishermen, who admitted their guilt earlier this year, were not in court to hear him, having been given leave to return to Spain last night. The offences, dating from 2009 and 2010, relate to two companies, Hijos De Vidal Bandin SA and Sealskill Limited, both owned by the Vidal family. They were fined £925,000 on a confiscation order, plus £195,000 in costs, and an additional fine of £250,000 levied on each of the two companies. Two skippers who were acting under the family's instructions were fined £5,000 each.

Ariana Densham, oceans campaigner at Greenpeace, who was present for the trial and judgement, said that the fines, while welcome, did not go far enough. "This group of people should never be allowed near UK fishing quota again," she said. "The Vidal's right to fish should be removed completely."

She said the offences showed the vulnerability of the EU's fishing quota system to fraud. "The system that allowed this to happen needs to be fixed," she said. "This case is not a one off. It's a symptom of Europe's farcical fishing rules. The Vidals were permitted to fish under UK flags, using UK quota, and receive huge EU subsidies, with none of the proceeds ever feeding back into the UK economy. The system is skewed in favour of rich, powerful, industrial-scale fishing companies, when really it should be supporting low-impact, sustainable fishermen."

There are currently moves under way in Brussels by the fisheries commissioner, Maria Damanaki, to reform the EU's common fisheries policy. The proposed reforms – which include the ending of the wasteful practice of discarding healthy and edible fish at sea – have met stiff opposition, particularly from the French and Spanish fishing industries. Spain has the biggest fishing fleet in Europe and receives the lion's share of the subsidies available for fishing within the EU. A historic agreement was reached among member states last month on the proposals, but they must now pass the European parliament, which is expected to consider the proposals later this year.

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Invasion of the pickpockets

Britain is in the grip of a pickpocketing epidemic as Eastern European gangs descend on London ahead of the Olympic Games.

A surge in sneak street thefts means more than 1,700 people fall victim every day – an increase of nearly a fifth in only two years, according to official crime  figures released yesterday.

At the same time, police warned that professional gangs from Romania, Lithuania and even South America who operate in capitals across Europe are heading to Britain, intent on cashing in on unwitting tourists at London 2012.

How they do it: A member of the pickpocket gang approaches a BBC reporter investigating the rise in thefts ahead of the Olympics

Keeping him occupied: The man speaks to the victim on the pretense of needing directions while another gang member approaches from behind

A BBC investigation exposed the tactics used by Romanian thieves, who were previously operating in Barcelona, to dupe their victims.

The criminals boasted of their ‘one-second’ theft techniques which leave targets unaware that anything has happened until  it is too late. They can make £4,000 a week taking wallets, smartphones and laptop bags. The goods are then shipped back to Romania and sold on the black market.

 Scotland Yard has made more than 80 arrests already and warned thieves the capital will be a ‘hostile environment’ in the coming weeks.

The Met has even drafted in a team of Romanian police officers to deal with the problem and patrol in the West End of London and Westminster during the Games. They will not have arrest powers.

Distracted: An accomplice (left) then plays drunk so he can get close enough to the target to strike

 

Sleight of hand: The 'drunk' man jostles around with the BBC reporter, making it harder for him to notice what is going on

 

 

Rich pickings: The sneering thief walks away with the wallet from the unsuspecting victim

Teamwork: The thief quickly hands the wallet to another member of the gang, who spirits it away

 

Mayor of London Boris Johnson said: ‘These Romanian officers will prove to be a huge asset in cracking down on certain criminal networks who are targeting tourists in central London.’

Official statistics released yesterday showed pickpocketing thefts rose 17 per cent in the past two years.

In 2011/12, a total of 625,000 people fell victim, the Crime Survey of England and Wales showed.

That is an increase of more than 102,000 since 2009/10.

The vast majority of the total are classified as ‘stealth thefts’, but in 83,000 cases the victims’ possessions were ‘snatched’.

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The best insights in my report didn’t emerge in my office, during conference calls, or at meetings. They somehow appeared in the bathroom.

Not too long ago, as I was putting the final touches on a client presentation, I stumbled across a surprising observation. The best insights in my report didn’t emerge in my office, during conference calls, or at meetings. They somehow appeared in the bathroom.

Research on the nature of creativity suggests my experience isn’t all that unique. Often, the most effective way of solving a difficult problem is simply walking away. The moment we allow ourselves to disengage from the individual pieces of a puzzle is the moment a solution appears. It’s why Albert Einstein regularly went sailing and why Charles Darwin planned his day around a countryside stroll. Thomas Edison simply napped.

In many ways, problem solvers are like artists. Taking a few steps back provides painters with a fresh perspective on their subject, lending them a new angle for approaching their work. Problem solving follows a similar recipe, but it’s not always the physical distance that we need. It’s psychological distance; mental space for new insights to bloom.

In a world where finding solutions makes up the crux of a typical workday, we are all artists. Cognitive artists. And to deliver our best work, we need revitalizing breaks. Distancing ourselves from our work grants us a broader view, activating a global perspective that precedes breakthrough.

So, why the bathroom?

If you’re like most office employees, access to sailboats, the countryside and a relaxing couch is in short supply. A walk to the bathroom is one of the few opportunities you have for disengaging, letting go of trivial details and refocusing on the bigger picture--even Steve Jobs recognized the bathroom's potential, insisting that Pixar only build two in its studios, to provide employees with maximum enforced mixing. Neurologically, it is during these moments away from your desk the right hemisphere of your brain comes to life, making you more appreciative of the forest and less sensitive to the trees.

While most of us give little thought to our workplace bathroom, there’s good reason to believe it can have an impact on the quality of the work we produce -- especially in organizations that rely on creativity and problem solving to stand out. Over the past decade, studies have shown that both our thoughts and behaviors are heavily influenced by our surroundings, in ways we often fail to recognize.

A few examples:

• The sound of classical music makes consumers spend more money
• The smell of cookies makes shoppers more likely to help a stranger
• The sight of red hurts intellectual performance but improves physical performance

Psychological findings like these are now commonplace, pointing to one irrefutable fact: Our environment shapes our thinking in powerful ways.

Which brings up some intriguing questions: How can we make the most of our time away from our desks? Is there a way of designing bathrooms to make them more inspiring? And what can organizations do to maximize the insights its employees get out of each bathroom visit?

Recent research on the science of creativity provides some helpful suggestions.

Rethink Muzak

One of the ways we become more creative is by exposing our minds to a broad variety of stimuli. The wider the selection of information you mentally digest--whether it be foreign movies, experimental novels or exotic travel--the more remote associations you’ll have in your arsenal. Or, in laymen’s terms, the more creative you’ll be.

Hearing unusual music primes us to think different--inspiring ideas, emotions and experiences that increase the associations active in our brain.

Surprise The Senses

 Another creativity nugget: We tend to find more insightful solutions to a problem when we're in a good mood. One method experimentally proven for improving people’s moods is enjoyable scents. Positive scents don’t just make us feel better--they lead us to set higher goals for ourselves and experience a greater sense of self-efficacy.

Now, if you’re like most people, the restroom isn’t the first place that comes to mind when you think of positive scents, and partly that’s because of how hard custodians work to mask negative smells, leaving most bathrooms feeling like an assault on the senses. But in our case, that’s a good thing. It means the bar for surprising people with positive scents is that much more accessible. A few opportunities for enhancing the scent of a workplace bathroom: unusual soaps, exotic candles, and the hallway outside a bathroom, boosting people’s mood before and after a visit.

Encourage Mental Stimulation

Part of what makes bathroom visits a boon to creativity is that they represent one of the few times during the workday when our physiological attention is directed inward, mimicking the psychological experience of insight. But it’s not just inward attention that’s needed--it’s inward attention in the context of fresh ideas.

Think about the last time you saw graffiti in the bathroom. Chances are, not only did you read it, you probably thought about the person who wrote it, perhaps wondering what (the hell) was going through their mind. We can’t help but think about the things we see, but we can choose what we look at. Providing a diet of mentally stimulating material in workplace bathrooms can be done in a number of ways: posting unusual artwork, leaving out thought provoking magazines or using digital picture frames to keep the imagery fresh. The key is for the material to be stimulating and indirectly related to work you do.

Once upon a time, going to the bathroom was a distraction. Something that kept us from work; an unfortunate bodily shortcoming that compromised efficiency. But that world doesn’t exist anymore. Today, our economy is powered by an engine of insight. Creativity in the workplace isn’t a “nice to have”—it’s what keeps companies in business. Which is why it’s ironic that most office bathrooms offer a bleak and unwelcoming environment. One that discourages insight and implicitly chides us to get back to our desks.

There’s just one problem. Creativity doesn’t work that way.

And if the science has taught us anything about the creative process it’s this: Finding unexpected solutions often requires an unexpected approach. Why not start in the bathroom? 

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Mobile operator O2 hit by nationwide network failure that left users unable to make calls or text

The O2 mobile phone network crashed tonight leaving thousands of customers across the country cut off. Users were left stranded, unable to make or receive calls or send texts, as the firm - which has 23 million customers in the UK - said it did not know when the problem would be fixed. Some customers also had no internet access. O2, Britain's second-largest mobile phone operator, admitted it was unclear exactly how many people had been affected. It said ‘thousands’ may be experiencing problems. The problems began this afternoon for some mobile users, the network said. O2 are urging customers to check their Twitter and Facebook feeds for updates - but the company’s webpage which displays live information about network coverage crashed. A spokeswoman said the problem was not 'location-specific'. ‘The problem is an issue within part of our core network that is preventing some mobile phones from successfully connecting,' she said. ‘The problem is not location-specific. All possible resources across our and our suppliers’ engineering teams are being deployed to restore service as soon as possible.’ Thousands of angry customers took to Twitter to complain. BBC television presenter Huw Edwards (@huwbbc), tweeted: ‘6 hours of non-service and counting, simply not good enough, O2.’ One Twitter user, Kelly Jones (@kelly-92), tweeted: ‘Having a phone that hardly works usually is annoying, but this whole no signal on o2 all afternoon is beyond irritating.’

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The richest woman in the world, according to a respected business magazine, is not Oprah Winfrey, Queen Elizabeth II or L'Oreal heiress Liliane Bettencourt.

It's a relatively unknown Australian mining magnate. So who exactly is Gina Rinehart?

Asked once to sum up her concept of beauty, Gina Rinehart did not point to the pearls that so often adorn her neck.

Nor did she rhapsodise about the ochre landscape of her beloved Pilbara, a beautiful, if unforgiving, expanse of land in the northwest corner of Australia.

Instead, she spoke of the unlovely commodity that has made her family rich, and the giant holes in the ground from where it came. "Beauty is an iron mine," she famously remarked.

When her father, Lang Hancock, discovered one of the world's biggest reserves in the early 1950s, the export of iron ore was banned in Australia because it was deemed such a scarce and finite resource.

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Gina Rinehart

• Georgina Hancock born in Perth in 1954, studied in Sydney
• Father Lang Hancock made huge iron ore discovery in Western Australia before her birth
• Married lawyer Frank Rinehart in 1983
• After father's death in 1992, Gina became executive of the company
• Widowed with four children

• Rinehart 'world's richest woman'

Tens of thousands of iron ore shipments later, royalty payments from that Pilbara mining field in Western Australia continue to swell her coffers.

The Hancocks were not the sole beneficiaries. The multi-billionaire fervently believes that her father's discovery also made Australia prosperous, which partly drives her recent quest for influence, gratitude and respect.

It is partly borne of a lifelong sense of grievance - that Australia's traditional east coast elites have not recognised her family's contribution to the country's development, nor the local media.

With an estimated net personal wealth of $A29 billion ($US29.3bn, £18.79bn), Rinehart has in recent years gone from being Australia's richest woman to Asia's richest woman to arguably the world's.

Australian business magazine BRW has named her the world's wealthiest woman, and Citigroup has also predicted that the 58-year-old businesswoman will soon top the global rich list, with more than $100bn (£64.8bn) of assets to her name.

Gina Rinehart is said to make nearly A$600 (£393) a second

The royalty stream from that initial discovery - the "rivers of the gold," as it has been called - still contributes to her wealth, but it pales alongside the value attached to her mining interests in Western Australia and Queensland.

Continue reading the main story

“Start Quote

Whatever I do, the house of Hancock comes first”

She hates being called a mining heiress because she considers herself a self-made businesswoman who turned her company around after her father's death in 1992.

From a worldwide perspective, her spiralling wealth illustrates the shift in economic activity from the west to the east. From an Australian one, she embodies the shift from the east to the west. Once it was media moguls like the late Kerry Packer who topped the Australian rich lists. Now it is minerals magnates who are profiting from the country's China-fuelled resources boom.

Rinehart has set out to become both a magnate and a mogul, which is why she is the subject of so much attention and controversy.

Along with her mining interests, she now owns a share of Channel Ten, one of the three major commercial television networks, and has also become the single biggest shareholder in Australia's second largest newspaper group, Fairfax Media, although she reduced the size of that stake last week.

The group publishes three of the country's most venerable mastheads - the Sydney Morning Herald, the Melbourne Age and the Australian Financial Review, and the suspicion among many Fairfax journalists is that she will attempt to turn them into mouthpieces for her right-wing views.

The dark joke is that the Sydney Morning Herald might become the Sydney Mining Herald. However, she has not been able to gain seats on the board because of a dispute about her refusal so far to accept the group's declaration of editorial independence.

Her father Lang Hancock was a huge influence on her

Her mining company, Hancock Prospecting, is essentially her life. She has few outside interests. She does not go in for the normal blandishments of wealth, like art, racehorses or a private plane.

She is renowned for her 24/7 work regime, and a tunnel-visioned determination. Her personal feuds are the stuff of legend and her long list of adversaries has included her father, his business partner, her first husband, her Filipino mother-in-law, Rose Porteous, and now three of her children.

Rinehart spoke at an anti-tax rally in Perth in 2010

Famously litigious, many of her battles have ended up in court. "Whatever I do, the house of Hancock comes first," she once told a reporter. "Nothing will stand in the way of that."

Like her rambunctious father Lang, who railed against the scourge of "Canberra-ism," and "eco-nuts" in the environmental movement, her political views are a blend of conservatism and libertarianism.

An early heroine was Britain's Iron Lady, Margaret Thatcher, whom she met over lunch in 1977. Afterwards, the young Gina took much more care to dress in a business-like fashion, got a new hairdresser and started to wear more make-up.

Another intellectual hero was the free-market economist Milton Friedman. One of the reasons she cited for raising her children in the US, aside from her marriage to the Harvard-educated Frank Rinehart, was the hope that they might be taught by Friedman.

She is also a climate change sceptic, and close to the British Viscount, Christopher Monckton. On a visit to Perth last July, during which he delivered the Lang Hancock Memorial Lecture, Monckton spoke of Australia's need for an equivalent of Fox News, which could be funded by the "super-rich".

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Other rich women

• Christy Walton - widow of John, son of the founder of Wal-Mart, Sam Walton
• Liliane Bettencourt - daughter of L'Oreal founder Eugene Scheueller
• Johanna Quandt - third wife of German executive who rescued BMW
• Oprah Winfrey - television host and media mogul, one of the world's richest self-made women
• Birgit Rausing - art historian from Sweden inherited packaging firm Tetra Laval after death of husband
• Rosalia Mera - after dropping out of school to make dresses before her teens, the Spaniard co-founded retail company Inditex, which owns Zara

Rinehart was not present at the private meeting, but few doubted the identity of the "super-rich" person whom Monckton had in mind. When a video of his remarks was posted online, it heightened speculation that she was pursuing some kind of Foxification strategy in Australia.

I have also been told by one of her associates that she met Rupert Murdoch earlier this year, partly to discuss Fox News.

Given that the newspapers published by Rupert Murdoch's Australian arm, News Ltd, boast a 70% share of Australian readership, and that Fairfax has the remaining 30%, the widespread fear is of a conservative duopoly, and an end to editorial pluralism.

Rinehart's $A165m (£107m) stake in Channel Ten has already lost more than half its value and Fairfax, which last week announced 1900 job cuts, is not seen as a particularly attractive investment. Like her father, who started two newspapers, the profit motive is not a major consideration. Her investment, it is thought, is about political influence.

Besides, the amount of money involved is for her comparatively small. As an associate recently explained to me, she is adopting the same approach that the super-rich use when purchasing luxury yachts or private planes, which is not to invest more than 10% of their wealth.

In her ongoing drive for influence, the debate two years ago over the Labor government's plans to hit the mining sector with a super profits tax was a major milestone.

Unusually for a woman who has preferred to exert a behind-the-scenes influence, Rinehart led the chant of "axe the tax" at a protest rally in 2010 aimed at the then Prime Minister Kevin Rudd.

Her billionaire activism lent itself to easy caricature. A reporter from the Fairfax-owned WA Today joked that it was possible to hear her gold bracelet jangling "a note-perfect version of 'Money, Money, Money' as she pumped her fist". Within weeks, however, Rudd had been ousted, and his successor, Julia Gillard, immediately announced a climbdown over the mining tax.

Rinehart met the Queen when the British monarch visited Perth

Just as Rinehart wants influence and gratitude, she is also determined to maintain rigid control of her company. Presently, she is locked in a highly-publicised legal battle with three of her four children over a family trust set up by Lang Hancock for his grandchildren.

The trust, which owns a share of her company, was due to settle its assets last September, when Lang's youngest grandchild, Ginia, turned 25. But Rinehart allegedly tried to push back the date that her children could become trustees until 2068.

Determined to retain sole control, she warned her children they faced ruin if they refused to bend to her will. "Sign up or be bankrupt tomorrow," she threatened in an email. "The clock is ticking. There is one hour to bankruptcy and financial ruin."

Her three eldest children described the manoeuvre as "deceptive, manipulative, hopelessly conflicted and disgraceful". It is not so much about greed. Rinehart offered her three estranged children big payments to go along with her plan. It is more about control.

Commentators expect the same aggressive approach with her media strategy. After all, Australia's richest ever person is used to getting her own way.

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Bankers face the prospect of jail as Serious Fraud Office launches criminal probe into interest-rate fixing at Barclays

Hearing: Former chief executive Bob Diamond left Barclays over the matter, before appearing before MPs this week

A criminal investigation has been launched into alleged rigging of the Libor rate within the banking industry, the Serious Fraud Office (SFO) confirmed today.

SFO director David Green QC formally accepted the Libor issue for investigation after Barclays was fined by the Financial Services Authority (FSA) last week for manipulating the key interbank lending rate which affects mortgages and loans.

The claims ultimately led to the resignation of Barclays boss Bob Diamond and have become the focal point of a fierce political debate over ethics in the banking sector.

The investigation could ultimately lead to criminal prosecutions and bankers facing charges in court.

The SFO's update came after it revealed earlier this week that it had been working closely with the FSA during its investigation and would consider the potential for criminal prosecutions.

The Government department, which is responsible for investigating and prosecuting serious and complex fraud, said on Monday the issues surrounding Libor were "complex" and that assessing the evidence would take time.

Under fire: Barclays former chairman Marcus Agius (right) with former CEO Bob Diamond (centre), and former chief executive John Varley (left)

As the SFO prepares its investigation, Labour leader Ed Miliband continued to push for an independent inquiry into the banking scandal despite MPs rejecting the demands.

The Labour leader said that while the party would cooperate with a parliamentary investigation, its remit was too "narrow" and a judge-led probe was still needed.

Mr Miliband also defended the conduct of Ed Balls after the shadow chancellor engaged in a bitter war of words with his opposite number George Osborne in the Commons.

 

 

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Barclays boss Bob Diamond resigns

Barclays chief executive Bob Diamond has resigned with immediate effect. The move comes less than a week after the bank was fined a record amount for trying to manipulate inter-bank lending rates. Mr Diamond said he was stepping down because the external pressure on the bank risked "damaging the franchise". Chairman Marcus Agius, who said on Monday he was stepping down, will take over the running of Barclays until a replacement is found. "I am deeply disappointed that the impression created by the events announced last week about what Barclays and its people stand for could not be further from the truth," Mr Diamond said in a statement. He will still appear before MPs on the Treasury Committee to answer questions about the Libor affair on Wednesday. "I look forward to fulfilling my obligation to contribute to the Treasury Committee's enquiries related to the settlements that Barclays announced last week without my leadership in question," Mr Diamond said. Last week, regulators in the US and UK fined Barclays £290m ($450m) for attempting to rig Libor and Euribor, the interest rates at which banks lend to each other, which underpin trillions of pounds worth of financial transactions. Staff did this over a number of years, trying to raise them for profit and then, during the financial crisis, lowering them to hide the level to which Barclays was under financial stress. Prime Minister David Cameron has described the rigging of Libor rates as "a scandal". The Serious Fraud Office is also considering whether to bring criminal charges.

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The number of Britons arrested overseas is on the rise, official figures have shown.

 The Foreign Office (FO) handled 6,015 arrest cases involving British nationals abroad between April 2011 and March 2012. This was 6% more than in the previous 12 months and included a 2% rise in drug arrests. The figures, which include holidaymakers and Britons resident overseas, showed the highest number of arrests and detentions was in Spain (1,909) followed by the USA (1,305). Spanish arrests rose 9% in 2011/12, while the United States was up 3%. The most arrests of Britons for drugs was in the US (147), followed by Spain (141). The highest percentage of arrests for drugs in 2011/12 was in Peru where there were only 17 arrests in total, although 15 were for drugs. The FO said anecdotal evidence from embassies and consulates overseas suggested many incidents were alcohol-fuelled, particularly in popular holiday destinations such as the Canary Islands, mainland Spain, the Balearics (which include Majorca and Ibiza), Malta and Cyprus. Consular Affairs Minister Jeremy Browne said: "It is important that people understand that taking risks abroad can land them on the wrong side of the law. "The punishments can be very severe, with tougher prison conditions than in the UK. While we will work hard to try and ensure the safety of British nationals abroad, we cannot interfere in another country's legal system. "We find that many people are shocked to discover that the Foreign and Commonwealth Office cannot get them out of jail. We always provide consular support to British nationals in difficulty overseas. However, having a British passport does not make you immune to foreign laws and will not get you special treatment in prison."

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A warrant has been issued for Dan Penteado's arrest

 Photo: BBC

The 40-year-old, who chases down bogus workmen with Matt Allwright on the television show, admitted eight offences of dishonestly or knowingly claiming the benefits while not declaring he earned thousands from the BBC.

Penteado, from Bournemouth, was warned at Bournemouth Magistrates' Court that he could face jail before he was granted bail while a pre-sentence report is prepared.

Kerry O'Neill, prosecuting, said the offences went back to 2007 when Penteado filled out his first claim form and failed to declare he had another bank account.

The court heard that Penteado repeated the fraud in subsequent years up to 2011.

In that time he failed to tell Bournemouth Borough Council he had been paid more than £56,000 for his work on Rogue Traders from 2008 to 2011.

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Investigation needed into Natwest and RBS's IT meltdown

Bank bosses should be subject to a "detailed investigation" over the IT meltdown which left thousands of customers without access to cash, Bank of England governor Sir Mervyn King said today. His comments came as Royal Bank of Scotland said it was finally getting on top of the crisis after it successfully updated all but 1% of NatWest and RBS account balances overnight. RBS Group has had less success sorting out the delays experienced by Ulster Bank customers, but it hopes to restore a full service for the start of next week. Sir Mervyn told MPs today there would need to be a "detailed investigation" into what went wrong and why it has taken so long to sort the issues out. RBS and NatWest have around 15 million accounts between them, but it is still unclear how many were affected by the disruption. A spokesman for RBS Group said it may "never know" the exact figure as it was not possible to tell when everyone is expecting money to be paid into their account and some people may not have noticed problems. Ulster Bank has estimated that about 100,000 of its customers have been caught up in the problems, which have meant that customers' balances have not been updating properly and their wages have not shown up in their accounts, although the money is "in the system". The Financial Ombudsman Service (FOS) warned today that it could be weeks before customers see all of the issues completely resolved. In a statement issued today, RBS Group said a "small number" of customers may continue to be hit by the "unacceptable" delays. The statement said: "RBS and NatWest confirm that the update of customer account balances has cleared overnight, with the exception of a few specific sets of transactions. "We know this disruption was unacceptable and that many customers will still have questions and concerns. "It is possible a small number of customers may experience delays as we return to a completely normal service. We will continue to extend our branch opening hours all week. "The full focus of our efforts will now be on delivering the same result for our Ulster Bank customers who continue to experience unacceptable delays to their accounts being updated. "We are confident that this will help us restore a full service for the start of next week for Ulster Bank and remain grateful for our customers' patience." The banking group has extended its opening hours this week as staff work "round the clock" to sort out the problems, which began after a software update last Tuesday. People have had their house moves and holidays disrupted and a defendant in a court case had to spend the weekend in prison because the RBS computer failure prevented his bail money being transferred. In a hearing with the Treasury Select Committee, Sir Mervyn said the Bank had been in close contact with management at RBS since the problem arose, and over the weekend. He said the issues were technical and not a reflection of funding issues at the bank, which is 80% state-owned. He added: "Once the current difficulties are over, we need the Financial Services Authority to carry out a detailed investigation to find out what went wrong - and importantly why it took so long to recover." Sir Mervyn said the problems seen at RBS provide a reminder of how systemically important banks are and confirmed the need to ring-fence retail operations from investment banking. A spokeswoman for the FOS said it would "take time" before customers see the issues put completely right and she urged people to keep a record if they have found themselves out of pocket. She said the sheer numbers of people affected were one reason for the process taking a while, adding: "They will have to look at each individual situation." People can complain to the FOS if they cannot work problems out with their bank. The FOS said it is not currently dealing with complaints on the issue as the bank must look at them in the first instance. The ombudsman, which receives several thousand calls a day generally, said that roughly around 10% of the calls currently being dealt with by its helpline relate to the RBS issue.

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Fury as NatWest bank glitch drags on

Customers deluged online forums with complaints yesterday, saying that they were unable to pay bills and were concerned about the impact it could have on their credit ratings. The crisis has hit customers at RBS and two of its subsidiaries, NatWest and Ulster, and the bank admitted that the chaos caused by a technical glitch is so severe that it does not even know how many accounts are affected. Yesterday, more than 1,200 NatWest branches were opened on a Sunday for the first time in its history, while a further 1,000 branches will be open until 7pm today in an attempt to ease the problem. RBS has pledged to compensate affected customers by refunding overdraft charges or penalty fees incurred because of the computer glitch, and help them deal with credit rating agencies. However, it was not clear how long it would take to make refunds.

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Assange seeks political asylum

On Tuesday night WikiLeaks founder Julian Assange applied for political asylum at the Ecuadorian Embassy in London after failing in his bid to avoid extradition to Sweden to face sex crime allegations. The 40-year-old Australian is currently inside the building in Knightsbridge, having gone there on Tuesday afternoon to request asylum under the United Nations Human Rights Declaration. The country's foreign minister Ricardo Patino told a press conference in the South American country that it was considering his request. In a short statement last night, Mr Assange said: "I can confirm that today I arrived at the Ecuadorian Embassy and sought diplomatic sanctuary and political asylum. This application has been passed to the Ministry of Foreign Affairs in the capital Quito. I am grateful to the Ecuadorian ambassador and the government of Ecuador for considering my application." The computer expert, who was on £200,000 bail after failing in several attempts to halt extradition, attracted several high-profile supporters including Ken Loach and socialite and charity fundraiser Jemima Khan, who each offered £20,000 as surety. Other supporters included Bianca Jagger and veteran left-winger Tony Benn. The Swedish authorities want him to answer accusations of raping a woman and sexually molesting and coercing another in Stockholm in August 2010 while on a visit to give a lecture. Assange, whose WikiLeaks website has published a mass of leaked diplomatic cables that embarrassed several governments and international businesses, says the sex was consensual and the allegations against him are politically motivated. The Supreme Court last month ruled in favour of a High Court ruling that his extradition was legal. Last week the Supreme Court refused an attempt by him to reopen his appeal against extradition, saying it was "without merit". He had until June 28 to ask European judges in Strasbourg to consider his case and postpone extradition on the basis that he has not had a fair hearing from the UK courts. A statement issued on behalf of the Ecuadorian Embassy said Mr Assange would remain at the embassy while his request was considered.

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Police study Murdoch's 'secret' iPhone account

Scotland Yard detectives investigating phone hacking at the News of the World are examining the call records of four newly discovered Apple iPhones issued to senior executives at News International. The smartphones, issued by O2 in a contract beginning in October 2009, included a handset given to James Murdoch, the former chairman and chief executive of News Corp Europe. Despite billing for the phones totalling nearly £12,000 between June last year and May this year, neither Operation Weeting nor the Leveson Inquiry was told of the existence of the smartphone accounts. Phone text messages and emails sent and received by News International executives and advisers have provided some of the most controversial evidence heard by Lord Justice Leveson's inquiry into press practices and ethics. It had been assumed that the email and text traffic from key News International executives was centred solely on their company BlackBerry account with Vodafone. In accounts seen by The Independent, issued through 02's corporate customer services at Arlington Business Park in Leeds, Mr Murdoch's iPhone account is listed as "active". Mr Murdoch is said to have told 02 that he specifically wanted a "white iPhone" when the smartphone was issued to him in the summer of 2009. Katie Vanneck-Smith, listed as News International's chief marketing officer, also has an active account. Two other NI executive numbers are described as disconnected. Between June last year – just before The Guardian revealed in July that the mobile phone of murdered schoolgirl Milly Dowler had been hacked into – and the beginning of the Leveson Inquiry in November, the NI iPhone accounts were billed for £9,650. Last night, Labour MP Tom Watson said people would be "shocked" to learn that the smartphones had been issued to key NI executives, while the company's disclosures focused only on the BlackBerry Vodafone accounts. Mr Watson said he hoped that News Corp's Management and Standards Committee, which is responsible for all matters relating to phone hacking, would enforce its own promise of full transparency and appropriate disclosure, by revealing all the data and logs held on the discovered phones to both the police and the Leveson Inquiry. Last night, a spokeswoman for News International, said: "Mr Murdoch fully co-operated with the Leveson Inquiry. It is ridiculous to suggest that James Murdoch keeps or kept a 'secret phone'." Meanwhile sources close to the Leveson Inquiry have denied that Lord Justice Leveson threatened to quit his judicial investigation following comments made in February by Michael Gove. The Education Secretary told a gathering of political journalists that the inquiry into press ethics and practices was creating a "chilling atmosphere" towards press freedom. During Prime Minister's Questions in the Commons the day after Mr Gove's lobby speech, David Cameron appeared to back his cabinet colleague's view. Concern that Mr Gove might be the Prime Minister's advance messenger prompted Lord Justice Leveson to call the Cabinet Secretary, Sir Jeremy Heywood. Whitehall sources say Lord Justice Leveson wanted to learn directly from Mr Cameron whether his inquiry was wasting public money on an ultimately futile exercise or whether his initial remit stood. Although the reassurances from No 10 took two days to arrive, sources claim there was no threat from the judge to resign from his own inquiry.

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Bank of England meets amid talk of £50bn stimulus

Bank of England policymakers meet today to decide whether to change interest rates or to pump in more money into the ailing economy, with leading economist saying they may opt to inject a further £50bn of stimulus.

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Europe is on the verge of financial chaos.

Global capital markets, now the most powerful force on earth, are rapidly losing confidence in the financial coherence of the 17-nation euro zone. A market implosion there, like that triggered by Lehman Brothers collapse in 2008, may not be far off. Not only would that dismantle the euro zone, but it could also usher in another global economic slump: in effect, a second leg of the Great Recession, analogous to that of 1937. This risk is evident in the structure of global interest rates. At one level, U.S. Treasury bonds are now carrying the lowest yields in history, as gigantic sums of money seek a safe haven from this crisis. At another level, the weaker euro-zone countries, such as Spain and Italy, are paying stratospheric rates because investors are increasingly questioning their solvency. And there’s Greece, whose even higher rates signify its bankrupt condition. In addition, larger businesses and wealthy individuals are moving all of their cash and securities out of banks in these weakening countries. This undermines their financial systems. 423 Comments Weigh InCorrections? Personal Post The reason markets are battering the euro zone is that its hesitant leaders have not developed the tools for countering such pressures. The U.S. response to the 2008 credit market collapse is instructive. The Federal Reserve and Treasury took a series of huge and swift steps to avert a systemic meltdown. The Fed provided an astonishing $13 trillion of support for the credit system, including special facilities for money market funds, consumer finance, commercial paper and other sectors. Treasury implemented the $700 billion Troubled Assets Relief Program, which infused equity into countless banks to stabilize them. The euro-zone leaders have discussed implementing comparable rescue capabilities. But, as yet, they have not fully designed or structured them. Why they haven’t done this is mystifying. They’d better go on with it right now. Europe has entered this danger zone because monetary union — covering 17 very different nations with a single currency — works only if fiscal union, banking union and economic policy union accompany it. Otherwise, differences among the member-states in competitiveness, budget deficits, national debt and banking soundness can cause severe financial imbalances. This was widely discussed when the monetary treaty was forged in 1992, but such further integration has not occurred. How can Europe pull back from this brink? It needs to immediately install a series of emergency financial tools to prevent an implosion; and put forward a detailed, public plan to achieve full integration within six to 12 months. The required crisis tools are three: ●First, a larger and instantly available sovereign rescue fund that could temporarily finance Spain, Italy or others if those nations lose access to financing markets. Right now, the proposed European Stability Mechanism is too small and not ready for deployment. ●Second, a central mechanism to insure all deposits in euro-zone banks. National governments should provide such insurance to their own depositors first. But backup insurance is necessary to prevent a disastrous bank run, which is a serious risk today. ●Third, a unit like TARP, capable of injecting equity into shaky banks and forcing them to recapitalize. These are the equivalent of bridge financing to buy time for reform. Permanent stability will come only from full union across the board. And markets will support the simple currency structure only if they see a true plan for promptly achieving this. The 17 member-states must jointly put one forward. Both the rescue tools and the full integration plan require Germany, Europe’s strongest country, to put its balance sheet squarely behind the euro zone. That is an unpopular idea in Germany today, which is why Chancellor Angela Merkel has been dragging her feet. But Germany will suffer a severe economic blow if this single-currency experiment fails. A restored German mark would soar in value, like the Swiss franc, and damage German exports and employment. The time for Germany and all euro-zone members to get the emergency measures in place and commit to full integration is now. Global capital markets may not give them another month. The world needs these leaders to step up.

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A Facebook crime every 40 minutes

A crime linked to Facebook  is reported to police every  40 minutes. Last year, officers logged 12,300 alleged offences involving the vastly popular social networking site. Facebook was referenced in investigations of murder, rape, child sex offences, assault, kidnap, death threats, witness intimidation and fraud.

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Prince Philip in hospital

The Duke of Edinburgh has been taken to hospital with a bladder infection and will miss the rest of the Diamond Jubilee celebrations. Buckingham Palace said Prince Philip, 90, had been taken to the King Edward VII Hospital in London from Windsor Castle as a "precautionary measure". The Queen is still expected to join 12,000 others at the Jubilee concert which is under way at the palace. The prince will remain in hospital under observation for a few days. The prince had appeared to be in good health when he accompanied the Queen on Sunday on the royal barge the Spirit of Chartwell, which formed part of the rain-drenched Jubilee river pageant. He and the Queen stood for most of the 80-minute journey, as they were accompanied by 1,000 boats travelling seven miles down the river to Tower Bridge.

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Luka Rocco Magnotta, the 'Canadian Psycho,' arrested in Berlin

Luka Rocco Magnotta was arrested in Berlin Monday after a four-day international manhunt that spanned three countries. The 29-year-old Canadian wanted over a horrific Montreal ice pick murder and decapitation of a Chinese student that he allegedly filmed and posted to the Internet, was arrested in or near an Internet cafe, Berlin police said. Montreal police confirmed they are aware of the reports that Magnotta was arrested, but said they are still in the process of contacting their Berlin counterparts. The arrest comes after French authorities said they were investigating a tip that Magnotta travelled from Paris to Berlin via bus on the weekend. “Somebody recognized him and (then) all the police recognized him,” Berlin police spokesperson Stefan Redlich told CP24 Monday. Handout (Click to enlarge) Magnotta's alleged victim is Lin Jun, a 33-year-old Concordia University student from Wuhan, Hubei, China. He was last seen on May 24, police said, and reported missing on May 29. Redlich said police were called in by a civilian who spotted Magnotta and he was arrested after police asked for his identification at about 2:00 p.m. local time in Berlin. Reuters is reporting it was an employee of the cafe, Kadir Anlayisli, that recognized Magnotta. The cafe is on Karl Marx Strasse, a busy shopping street filled with Turkish and Lebanese shops and cafes in the Neukoelln district of Berlin. German television quoted the owner of the cafe saying Magnotta was surfing the Internet for about an hour before his arrest. Redlich said Magnotta has been taken into custody without incident and will go in front of a judge Tuesday. Canadian officials are expected to start the extradition process for Magnotta in the near future.

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Rush for safe havens as euro fears rise

US benchmark borrowing costs plunged to levels last seen in 1946 and those for Germany and the UK hit all-time lows as investors took fright at what they see as a disjointed policy response to the debt crisis in Spain and Italy. In a striking sign of the flight to haven assets, German two-year bond yields fell to zero for the first time, below the equivalent rate for Japan, meaning investors are willing to lend to Berlin for no return. US 10-year yields fell as low as 1.62 per cent, a level last reached in March 1946, according to Global Financial Data. German benchmark yields reached 1.26 per cent while Denmark's came close to breaching the 1 per cent level, hitting 1.09 per cent. UK rates fell to 1.64 per cent, the lowest since records for benchmark borrowing costs began in 1703. "They are extreme levels because we are in an extremely perilous situation. People just want to put their money somewhere where they think they will get it back. People may soon be paying Germany or the US to look after their money," said Gary Jenkins, head of Swordfish Research, an independent credit analysis company. The flight to safety came as the situation in Italy and Spain, the eurozone's third- and fourth-largest economies, deteriorated further. Italy held a disappointing debt auction and saw its benchmark borrowing costs rise above 6 per cent for the first time since January. The euro fell 0.8 per cent against the dollar to under $1.24 for the first time in two years. Confusion over how the Spanish government's rescue of Bankia, the stricken lender, will be structured led the premium Madrid pays over Berlin to borrow to hit fresh highs for the euro era at 540 basis points. Analysts said the elevated level meant that clearing houses could soon raise the amount of margin, or collateral, that traders need to post against Spanish debt, a move that led to the escalation of crises in Portugal and Ireland. The European Central Bank has made clear to Spain that it cannot use the bank's liquidity operations as part of a recapitalision of Bankia. However, the central bank said on Wednesday it had not been officially consulted on the plans. Equity markets globally fell on the eurozone fears with bourses in Paris, Frankfurt and London all dropping 2 per cent. But Nick Gartside, international chief investment officer for JPMorgan Asset Management, noted that while US bond yields had halved since April last year the S&P 500 equity market was at the same level. "One of those two markets is mispriced. Core government bonds are an efficient market and they are ahead," he added. Investors said borrowing costs for the US, UK and Germany were likely to continue to fall amid a worsening economic backdrop and the threat of more central bank intervention. Wealth managers have been moving client assets into currency havens in recent weeks, with the Swiss franc and the US dollar among the biggest beneficiaries "Risk aversion, a rapidly slowing global economy and unusually low policy rates will pin these short and intermediate maturity bonds at unprecedented low levels for quite a while," said Mohamed El-Erian, chief executive of Pimco, one of the world's largest bond investors. Mr Gartside said he could easily see German rates going below 1 per cent, following a path that only Japan and Switzerland have taken among major economies, while the US and UK could dip under 1.5 per cent. Markets are increasingly resigned to more turmoil until policy makers take more radical action. The two most popular plans of action for investors are for the ECB to buy Spanish and Italian bonds in unlimited size or for eurozone countries to agree on a fiscal union involving the pooling of debt. "You have to throw everything at it. Spain is just too big for half measures. The next intervention has to be not just massive in size but it has to show a total commitment," said Mr Jenkins. He recommends that the ECB set targets either for the premium Spain and Italy pay to borrow over Germany or for their yields.

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Euro break-up 'could wipe 50pc off London house prices'

Property prices in the capital’s most sought-after postcodes have been driven up by investors moving funds out of assets held in euros to buy into what is seen as a “safe haven” alternative. Foreign money seeking a refuge from the wider economic turmoil accounted for 60pc of acquisitions of prime central London property between 2007 and 2011, according to a report by Fathom Consulting for Development Securities. If the shared currency broke up completely, London property would initially be boosted by the continued flight towards a safe haven, the report predicts. But, once the break-up had taken place, demand for these assets as an insurance against this event would start to ebb. “Although fears about a messy end to the euro debt crisis may account for much of the gain in prime central London (PCL) prices that has taken place over the past two years, we find that a break-up of the single currency area is also the single greatest threat to PCL,” said researchers.

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Leveson - The Hunt is on

Up until now, Lord Justice Leveson has only held the future of the British press in his hands. Today, despite all his protests to the contrary, his inquiry may determine the fate of the culture secretary, Jeremy Hunt. The judge insists that it is not his job to put any minister in the dock and that he certainly will not be giving his verdict on whether there have been any breaches of the ministerial code. Nevertheless, the prime minister has made it clear that he sees today's hearing as the moment when Mr Hunt must defend his much criticised handling of News Corp's £8bn bid for total control of BSkyB. The culture secretary has, I'm told, submitted more than 160 pages of internal memos, emails and text message transcripts to the Leveson Inquiry. I understand that he will insist that, despite having originally been a cheerleader not just for Rupert Murdoch but also for his bid, he acted in ways which frustrated it rather than accelerated it once he was made the minister in charge. He will claim that he referred it to the broadcasting regulator Ofcom when told by officials that it wasn't necessary to do so. He is likely to face questions about why he did not follow Ofcom's advice to refer the bid to the Competition Commission. He is likely to reply that he was given legal advice that he had first to consider News Corps offer to spin off Sky News so as to deal with so-called plurality issues. The culture secretary is likely to be asked how he can claim to have been unaware of the scale or nature of the contact between News Corp and his political adviser, Adam Smith - who resigned once his flood of emails and texts were revealed. I understand that Jeremy Hunt originally believed that his adviser had done nothing wrong and told friends he would resign himself rather than letting a junior official resign for him. The prime minister shows no sign yet of wanting to force him out - believing that however bad things may now look, Mr Hunt didn't actually do anything wrong or anything which helped the Murdochs and their bid. Labour argue that - even before today's hearing - it is evident the culture secretary should go as he is in breach of the ministerial code for failing to supervise his adviser, and for misleading the House of Commons when he wrongly asserted he had published all contacts between his department and News Corp - as well as claiming never to have intervened to affect the outcome of the bid.

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Coulson on Sheridan perjury charge

David Cameron's former communications chief Andy Coulson has been charged over allegations he committed perjury during the trial of former MSP Tommy Sheridan. The 44-year-old was detained for questioning at Govan police station in Glasgow by officers from Strathclyde Police. More than six hours later, the force confirmed he had been arrested and charged with perjury. A report will be sent to the procurator fiscal which will decide if Coulson is to face court proceedings. The former News of the World editor gave evidence at Sheridan's perjury trial at the High Court in Glasgow in December 2010, while he was employed by Downing Street as director of communications. At the trial, he claimed he had no knowledge of illegal activities by reporters during the time that he was editor of the now-defunct newspaper. He said: "I don't accept there was a culture of phone hacking at the News of the World." Sheridan was ultimately jailed for three years in January last year after being found guilty of perjury during his 2006 defamation action against the News of the World. He had been awarded £200,000 in damages after winning the civil case but a jury found him guilty of lying about the tabloid's claims that he was an adulterer who visited a swingers' club. The former Scottish Socialist Party (SSP) leader was convicted of five out of six allegations in a single charge of perjury relating to his evidence during the civil action at the Court of Session in Edinburgh. Sheridan was released from jail in January this year after serving one year of his sentence and vowed to continue the fight to clear his name. Coulson was arrested last year in relation to Scotland Yard's long-running investigation into phone hacking at the newspaper. He was held in July on suspicion of conspiring to intercept communications and corruption, and had his bail extended earlier this month. Coulson resigned as editor in 2007 after the paper's former royal editor Clive Goodman and private investigator Glenn Mulcaire were jailed for phone hacking. In May that year, he was unveiled as director of communications and planning with the Conservative Party. He quit his role as Downing Street communications chief in January last year after admitting the News of the World phone-hacking row was making his job impossible.

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Julian Assange's fight to evade extradition to Sweden appears doomed despite stay of execution

Julian Assange's fight to evade extradition to Sweden appeared doomed today though he was given a stay of execution by the highest court in the land. His celebrity-endorsed legal battle trundled on without him as the self-proclaimed champion of truth and transparency remained stuck in London's notorious traffic, undoubtedly disappointing his legion of fans. While vastly diminished in number from the early days of the furore surrounding the WikiLeaks founder, they were as vociferous as ever, penned in outside the Supreme Court yesterday, carrying megaphones, guitars and banners proclaiming “Free Assange” and “God Save Julian”. Mr Assange, 40, had argued that an European Extradition Warrant from Sweden to face allegations of rape and sexual molestation was invalid as the public prosecutor who issued it did not constitute a “judicial authority”. He denies the accusations, insisting they are “politically motivated”. His case was partially trumped by the French translation of the words judicial authority, which judges at the Supreme Court said carried a far wider meaning that simply a judge or court. By a majority of five to two they decided the practice by many European countries to have public prosecutors issue such warrants countered the interpretation in United Kingdom and his appeal failed. Nevertheless they granted his lawyers 14 days to apply to have the case re-opened after they insisted that they had not been given an opportunity to argue on the very legal points on which the judges had based their decision.

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FORMER Downing Street communications chief Andy Coulson has been arrested on suspicion of committing perjury during the Tommy Sheridan trial

Andy Coulson has been arrested on suspicion of perjury. Picture: Getty

FORMER Downing Street communications chief Andy Coulson has been arrested on suspicion of committing perjury during the Tommy Sheridan trial at the High Court in Glasgow, the Crown Office said today.

 

The 44-year-old was detained in London this morning by officers from Strathclyde Police.

 

Coulson gave evidence in Mr Sheridan’s perjury trial at the High Court in Glasgow in December 2010.

 

He was also arrested last year in relation to Scotland Yard’s long-running investigation into phone-hacking at the News of the World.

 

He was held in July on suspicion of conspiring to intercept communications and corruption and had his bail extended earlier this month.

 

A Strathclyde Police spokesman said: “Officers from Strathclyde Police Operation Rubicon detained a 44-year-old man in London this morning under section 14 of the Criminal Procedures Scotland Act on suspicion of committing perjury before the High Court in Glasgow.

 

“It would be inappropriate to comment any further at this time.”

 

It is understood Coulson is on his way to Glasgow.

 

Operation Rubicon detectives have been looking at whether certain witnesses lied to the court during Sheridan’s trial as part of a “full” investigation into phone hacking in Scotland.

 

Mr Coulson, then employed by Downing Street as director of communications, told the trial in December 2010 he had no knowledge of illegal activities by reporters while he was editor of the News of the World.

 

He also claimed: “I don’t accept there was a culture of phone hacking at the News of the World.”

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Former News of the World Editor arrested in dawn raid on his London home

 

PR man: Andy Coulson was held today by Strathclyde Police,David Cameron’s former No 10 spin doctor Andy Coulson was arrested today on suspicion of committing perjury.

Mr Coulson, 44, was detained at his home in Dulwich at 6.30am by seven officers from Strathclyde police and taken to Glasgow where he will be questioned.

The case centres on claims that he misled a court about his knowledge of phone-hacking during a criminal trial in Glasgow. The former News of the World editor, hired by the Prime Minister as his director of communications, told a court in 2010 that he had no knowledge of illegal voicemail interception when in charge of the tabloid.

During the perjury trial of former Scottish MP Tommy Sheridan, Mr Coulson said: “I don’t accept there was a culture of phone hacking at the News of the World.” He also denied knowing that the

 newspaper paid corrupt police officers for tip-offs. Mr Cameron has faced questions over his decision to bring Mr Coulson into the heart of government. Mr Coulson has already been arrested by the Met on suspicion of phone-hacking and bribing public officials.

The perjury charge, which carries a maximum prison sentence of seven years, is potentially the most serious facing the former Conservative Party spokesman.

One Downing Street source said the arrest came as a “complete surprise”.

Mr Coulson was a major witness in a trial involving Sheridan who was accused of lying in court during a libel victory against the NoW.

Coulson was editor when it published a story that labelled Sheridan an adulterer who visited swingers’ clubs. He was called as a witness and told the court that he had no knowledge of illegal activities by reporters.

Sheridan was jailed for three years last year after being found guilty of perjury during his 2006 defamation action against the NoW. He had successfully sued the newspaper over its claims.

Strathclyde police announced its probe into Mr Coulson last July but it was thought to be taking a back seat as five major Scotland Yard inquiries into the Murdoch media empire rumbled on.

However, the Standard can disclose that officers from Scotland recently visited London to interview several former NoW staff about their old boss.

Under Scottish law a suspect is detained on suspicion of an offence unlike in England and Wales where a suspect is arrested. Mr Coulson has not been charged.

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Student loan 'could land you in court' if you move overseas

More and more graduates are seeking job opportunities abroad but using a stint overseas as an excuse to avoid repaying debt could have serious financial repercussions. Moving overseas to escape student debt might seem like a sure-fire way to avoid repayments but borrowers could be landed with fines, or even court proceedings, if they don’t keep in touch with the Student Loans Company (SLC). There’s a common misconception among borrowers that quitting Britain will put an end to loan repayments but buried in the terms and conditions of the loan agreement are overseas repayment schedules. In some cases living abroad can even increase what you pay. In the UK, borrowers only make repayments if their income is above £21,000. The same theory applies overseas, although the thresholds vary from country to country. For example, in France the lower income threshold is £25,200, while in India it’s just £8,400. If borrowers fail to declare their income the SLC could allocate a default repayment, which in most cases is far higher than the salary percentage. In France the default is a staggering £241 a month. Kevin O'Connor, head of repayment at the SLC, said: “There are penalties for borrowers who don’t keep in touch with SLC or provide the required information, such as having a default schedule repayment value applied to your loan account or incurring a default penalty interest rate for the period you do not keep in contact. We will trace borrowers where necessary.” Worse still, it could result in legal action. “Where the borrower still does not contact the SLC, arrears will be calculated so that the legal process can begin. Experience shows that many students respond at this point but, where they don’t, court action will be taken," Mr O'Connor said. The warning to notify the SLC of your situation is even more pertinent given Britain's difficult economic climate, which is forcing many graduates to look for work abroad, and its high tuition fees. With courses now costing up to £9,000-a-year, loans can hit an eye-watering £30,000. Bournemouth University graduate, Bianca Walker, 27, has a student loan debt of around £15,000. She (SNP: ^SHEY - news) now lives in Cambodia and works as a communications assistant. She said: “I had absolutely no idea I had to repay from overseas, to the point where I thought if you went away for long enough, your loan was cleared. I live with six other post-grad expats who also had no idea. “I have seen no mention of this on my statements and nothing on the website. It’s not well-publicised enough. There must be thousands of graduates out there in my situation.” But the SLC says ignorance is not an excuse: “Our advice to borrowers moving overseas for more than three months is that you must provide us with your new address and information on how you intend to support yourself. We need this information to determine if you are liable to repay.”

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Journalists had 'personal vendetta" against Cherie

Tony Blair told the Leveson Inquiry that some journalists had waged a “personal vendetta” against his wife Cherie. He said some comment was "legitimate" but at times criticism was taken "too far". The former prime minister said Mrs Blair - a barrister - had taken or considered legal action about media reports more than 30 times in five years. "I think a certain amount of comment is perfectly legitimate," Mr Blair said. "I think some of the papers, particularly the Mail group, took it too far and it turned into a personal vendetta." He said checks with Mrs Blair's solicitors showed that legal action had been taken or considered more than 30 times between 2006 and 2011. "I thought and do think that the attacks on her and my children were unnecessary and wrong," Mr Blair said. "I just don't think it is part of the political debate." He added: "What I think is wrong is where sections of the media - and again I emphasise it is sections - where powerful people say, 'right we are going to go for that person'. "And then what happens is they go for you. And, as I say, it's full-on, full frontal. "That's not journalism. In my view it's an abuse of power. It's not necessary to do it. "I feel that some of the stuff crossed the line."

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Asian fans racially abused in Euro 2012 stadium

Sol Campbell has told the BBC's Panorama that Euro 2012 should not have been awarded to Poland and Ukraine, due to the racist and violent attitudes of some supporters. The former England captain advised fans to "stay home, watch it on TV... don't even risk it." UEFA, European football's governing body, have defended their decision, and said awarding the tournament to the two nations was an opportunity to improve their image and tackle social challenges. Chris Rogers attended one match in Ukraine where he saw Asian men being kicked and punched, despite supporting the home team.

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A satellite image showing the British Isles almost completely free of cloud at the weekend has been released by the University of Dundee.

 

Blue skies have been the norm in recent days, as the UK basks in glorious sunshine.

The image, from the university's Satellite Receiving Station, was taken on Saturday 26 May.

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EU cookie implementation deadline is today

A year after its implementation in May 2011, the European Commission's Privacy and Electronic Communications Directive will finally start to be enforced as of tonight, meaning visitors to websites are required to be informed of, and given choice over, the site's intentions to store their data in cookies. Though there has been fierce opposition to the directive, some companies, such as the BBC, Channel 4 and the Guardian, have now begun implementing measures that range from multiple user choices in the level of information shared with the site, to a single message informing the user that, by continuing to browse, they have automatically agreed to have their information stored. Further reading EU cookie law is a 'restraint to trade online', says online retailer Most UK organisations not compliant with EU cookie law New EU cookie law set to come into force But the majority of companies, it is widely reported, will miss tonight's deadline. While the Information Commissioner's Office (ICO) still disagrees that a "one size fits all" policy of standardisation is not the way forward when enforcing cookie legislation, some believe such a framework is the only way forward. Society for engineering and technology professionals, the Institution of Engineering & Technology said, "The implementation of this directive is likely to prove very variable until the introduction of a set of standards on the best way to provide a balance between easy browsing and personal privacy. "We had hoped that more progress would have been made on achieving this in the 12 month implementation delay that the Information Commissioner, Christopher Graham, gave British organisations."

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Google plans to warn more than half a million users of a computer infection that may knock their computers off the Internet this summer.

Unknown to most of them, their problem began when international hackers ran an online advertising scam to take control of infected computers around the world. In a highly unusual response, the FBI set up a safety net months ago using government computers to prevent Internet disruptions for those infected users. But that system will be shut down July 9 -- killing connections for those people.

The FBI has run an impressive campaign for months, encouraging people to visit a website that will inform them whether they're infected and explain how to fix the problem. After July 9, infected users won't be able to connect to the Internet.

LONG ARM OF SCOFFLAW

An online ad scam is having some unintended ramifications: The fix may prevent as many as 360,000 from getting online. Several sites will show if you're infected:

DNS Changer Working Group: can discern whether you’re infected and explain how to fix the problem.

DNSChanger Eye Chart: if the site goes red, you’re in harm’s way. Green means clean.

The FBI website: type in the IP address of your DNS server to find out if it is infected.

Read more on how to stay safe

On Tuesday, May 22, Google announced it would throw its weight into the awareness campaign, rolling out alerts to users via a special message that will appear at the top of the Google search results page for users with affected computers, CNET reported. 

“We believe directly messaging affected users on a trusted site and in their preferred language will produce the best possible results,” wrote Google security engineer Damian Menscher in a post on the company’s security blog.

“If more devices are cleaned and steps are taken to better secure the machines against further abuse, the notification effort will be well worth it,” he wrote.

The challenge, and the reason for the awareness campaigns: Most victims don't even know their computers have been infected, although the malicious software probably has slowed their web surfing and disabled their antivirus software, making their machines more vulnerable to other problems.

Last November, when the FBI and other authorities were preparing to take down a hacker ring that had been running an Internet ad scam on a massive network of infected computers, the agency realized this may become an issue.

"We started to realize that we might have a little bit of a problem on our hands because ... if we just pulled the plug on their criminal infrastructure and threw everybody in jail, the victims of this were going to be without Internet service," said Tom Grasso, an FBI supervisory special agent. "The average user would open up Internet Explorer and get `page not found' and think the Internet is broken."

On the night of the arrests, the agency brought in Paul Vixie, chairman and founder of Internet Systems Consortium, to install two Internet servers to take the place of the truckload of impounded rogue servers that infected computers were using. Federal officials planned to keep their servers online until March, giving everyone opportunity to clean their computers.

But it wasn't enough time.

A federal judge in New York extended the deadline until July.

Now, said Grasso, "the full court press is on to get people to address this problem." And it's up to computer users to check their PCs.

'We started to realize that we might have a little bit of a problem on our hands...'

- Tom Grasso, an FBI supervisory special agent

This is what happened:

Hackers infected a network of probably more than 570,000 computers worldwide. They took advantage of vulnerabilities in the Microsoft Windows operating system to install malicious software on the victim computers. This turned off antivirus updates and changed the way the computers reconcile website addresses behind the scenes on the Internet's domain name system.

The DNS system is a network of servers that translates a web address -- such as http://www.foxnews.com -- into the numerical addresses that computers use. Victim computers were reprogrammed to use rogue DNS servers owned by the attackers. This allowed the attackers to redirect computers to fraudulent versions of any website.

The hackers earned profits from advertisements that appeared on websites that victims were tricked into visiting. The scam netted the hackers at least $14 million, according to the FBI. It also made thousands of computers reliant on the rogue servers for their Internet browsing.

When the FBI and others arrested six Estonians last November, the agency replaced the rogue servers with Vixie's clean ones. Installing and running the two substitute servers for eight months is costing the federal government about $87,000.

The number of victims is hard to pinpoint, but the FBI believes that on the day of the arrests, at least 568,000 unique Internet addresses were using the rogue servers. Five months later, FBI estimates that the number is down to at least 360,000. The U.S. has the most, about 85,000, federal authorities said. Other countries with more than 20,000 each include Italy, India, England and Germany. Smaller numbers are online in Spain, France, Canada, China and Mexico.

Vixie said most of the victims are probably individual home users, rather than corporations that have technology staffs who routinely check the computers.

FBI officials said they organized an unusual system to avoid any appearance of government intrusion into the Internet or private computers. And while this is the first time the FBI used it, it won't be the last.

"This is the future of what we will be doing," said Eric Strom, a unit chief in the FBI's Cyber Division. "Until there is a change in legal system, both inside and outside the United States, to get up to speed with the cyber problem, we will have to go down these paths, trail-blazing if you will, on these types of investigations."

Now, he said, every time the agency gets near the end of a cyber case, "we get to the point where we say, how are we going to do this, how are we going to clean the system" without creating a bigger mess than before

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Under European Union law, Greece cannot leave the euro.

That is the theory. But in practice, any protection the law offers investors could be difficult to enforce, according to lawyers trying to protect their corporate clients against the upheaval sure to follow if Greece defaults on its debts and adopts a new currency. So their advice is blunt: Remove cash and other liquid assets from Greece and prepare to take a short-term hit on any other investments. “My personal view is that it is irrational for anyone, whether a corporation or an individual, to be leaving money in Greek financial institutions, so long as there is a credible prospect of a euro zone exit,” said Ian Clark, a partner in London for White & Case, a global law firm that has a team of 10 attorneys focusing on the issue. Several multinational corporations have already taken the same view. Vodafone, the mobile phone operator, and GlaxoSmithKline, the pharmaceuticals firm, say they are “sweeping” money out of Greece and into British banks each evening. This applies not just to Greece but to most other euro nations, although Glaxo says it still keeps money in Germany. Corporate attorneys say looking to E.U. law provides only approximate guidance on whether Greece could stop using the euro while remaining in the Union. Although the E.U. prides itself on basing decisions on strict interpretation of the legal texts in its governing treaty and other legislation, the rules on euro membership have proved flexible. For example, while all 27 E.U. nations are supposedly obliged to join the single currency, once they meet certain economic criteria, Britain and Denmark were able to negotiate the option of retaining their own currencies. Sweden is one of the nations technically obliged to join the euro, but since a national referendum opposed the idea in 2003, no one has pressed the country to do so. Similarly, while leaving the euro might, legally, mean quitting the union itself, most experts see this as a technicality that can be circumvented as well. “The treaty doesn’t cover the question of what would happen if a country were to leave the euro and return to its previous currency,” said Stephen Weatherill, Jacques Delors Professor of European Law at Oxford University. “In the absence of any provision, there is plenty of space for European governments to concoct a solution, adopt it and for it to be legally enforceable,” he added. “In general, you can do anything you like, so long as you do not breach pre-existing international obligations.” The mechanics of leaving the euro would surely lead Greece to impose so-called capital controls to stem the flight of money from a currency destined to be devalued. Again, such controls look impossible under E.U. law. But Mr. Weatherill thinks that a loophole allowing for the protection of public security could be invoked. Mr. Clark, of White & Case, a global law firm, points to a clause in Article 65 of the treaty that says that the pledge on free movement should not prevent countries from taking measures “which are justified on grounds of public policy or public security.” Mr. Clark and his team serve clients that include financial institutions like BNP Paribas and hedge funds. In February, Andrew Witty, the chief executive of GlaxoSmithKline, said: “We don’t leave any cash in most European countries” except Germany. Tens of millions of pounds flow into accounts in Britain every day, he said. But, apart from trying to ensure that debts are paid promptly and therefore in euros, legal options for companies are limited. Contracts covered by Greek law, particularly for services delivered in Greece, provide little protection against the currency’s being redenominated and devalued — a development regarded as unlikely until recently. “Greece would, through its laws, be able to amend contracts governed by Greek law or to be performed within the territory of Greece,” Mr. Clark said. “It is the governing law and the place of performance of the contract that is most important.” International contracts, which might be covered by English, German or Swiss law, would be more likely to be honored in the designated currency, though in some cases the wording of the legal document may be vague. And even if the law is on their side, companies would find that to extract payment from a Greek company, they would need a judge in Greece to enforce a ruling from a foreign court. “Enforcement of foreign judgments is harder or easier from country to country within the E.U.,” Mr. Clark said. “Greece has always had a reputation of being a difficult place in which to enforce judgments, from a practical perspective.” That means that international trading partners are likely to share in any losses that accompany a Greek exit from the euro. “International businesses that have long-term interests in Greece are going to have to be pragmatic and probably, in the short term, give some dispensation to their Greek counterparties, rather than trying to enforce the terms of contracts that cannot be performed,” Mr. Clark said.

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Former Lloyds worker Jessica Harper in £2.5m fraud charge

A former head of security at Lloyds Bank has been charged in connection with an alleged £2.5m fraud. Jessica Harper, 50, of Croydon, south London, is accused of submitting false invoices to claim payments, between September 2008 and December 2011. At the time she was working as head of fraud and security for digital banking and allegedly made false claims totalling £2,463,750. Ms Harper will appear at Westminster Magistrates' Court on 31 May. She has been charged with one count of fraud by abuse of position. The bank, which is now 39.7% state-owned after being bailed out by the government during the financial crisis, refused to comment on the charging of Ms Harper. A Metropolitan Police spokesman said she was arrested on 21 December 2011 by officers from its fraud squad. Andrew Penhale, from the Crown Prosecution Service's Central Fraud Group, said: "The charge relates to an allegation that between 1 September 2008 and 21 December 2011, Jessica Harper dishonestly and with the intention of making a gain for herself, abused her position as an employee of Lloyds Banking Group, in which she was expected to safeguard the financial interests of Lloyds Banking Group, by submitting false invoices to claim payments totalling £2,463,750.88, to which she was not entitled. "This decision to prosecute was taken in accordance with the Code for Crown Prosecutors. "We have determined that there is a realistic prospect of conviction and a prosecution is in the public interest."

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